annual report

Transcription

annual report - Amanah Raya Berhad

Public TRustee
annual report
2006
rationale
True to its tradition, the Songket commands value
and stature in Malaysian society. It is the symbol of
beauty, decorum and formality. The process involved
in the weaving of Songket demands perseverance,
discipline and commitment. Much like the business of
the AmanahRaya Group of Companies which requires
an intricate weave of interpersonal relationships and
professional stewardship of capital and assets. True
to the spirit of the Songket which combines a
foundation and network of value, AmanahRaya also
aspires to create lasting products of lasting value for
our customers and shareholders.
Each piece of Songket is exclusively designed with
intricate geometric patterns. This is synonymous with
the AmanahRaya approach to designing products
for its valuable customers, as it believes that each
individual’s needs are exclusive and highly personal.
Thus, it is only fitting that the Songket was chosen to
grace the cover for the AmanahRaya Annual Report
2006.
kain songket
content
2
vision & mission statement
4
notice of the twelfth annual general meeting
6–7
8 – 11
milestones
board of directors
12 – 15
chairman’s statement
16 – 22
managing director’s review
23
corporate structure
24
group financial highlights
25
AmanahRaya Group - three year highlights
26 – 27
management team
28 – 30
audit committee report
31 – 36
statement of corporate governance
37 – 91
financial statements
92 – 93
AmanahRaya’s branch network
vision & mission statement
vision
To be an institution of excellence in providing professional services in trust
administration and legacy management, whilst meeting customers’
satisfaction with a sense of social responsibility.
mission statement
To ensure efficiency in providing trustee and legacy services.
To ensure the highest quality of services to our customers.
To provide a cordial working environment for efficient, knowledgeable,
motivated and competent employees to discharge their responsibilities
professionally.
To develop new products and services to cater to the needs of our
customers.
To strive towards strengthening AmanahRaya’s capabilities and enhancing
its image so as to maintain its position as the market leader in the trust
administration and legacy management services.
p.2
Amanah Raya Berhad 2006 annual report
corporate information
board of directors
Y.Bhg. Dato' Haji Dusuki Ahmad
Chairman
Independent
Non-Executive Chairman
Y.Bhg. Dato’ Ahmad Rodzi Pawanteh
Managing Director
Tuan Haji Ab Gani Haron
Non-Independent
Non-Executive Director
Y.Bhg. Datin Aminah Pit Abd Raman
Independent
Y.Bhg. Datuk Mohd Hashim Hassan
Independent
Encik Shamsuddin Haji Tahir
Independent
Puan Azailiza Mohd Ahad
(Appointed w.e.f 30.6.2006)
Puan Sharifah Adlina Syed Abdullah
Y.Bhg. Dato’ Abdullah Sani Ab Hamid
Non-Independent
Non-Independent
Non-Independent
REGISTERED OFFICE
Amanah Raya Berhad
Tingkat 15, Wisma AmanahRaya
No. 2, Jalan Ampang
50450 Kuala Lumpur, Malaysia
Telephone No : 603-2055 7388
Fax No : 603-2078 8187
Website : www.arb.com.my
PRINCIPAL BANKER
Malayan Banking Berhad
Ground Floor, Wisma PKNS
Jalan Raja Laut
50350 Kuala Lumpur
p.3
notice of the twelfth (12th) annual general meeting
notice of the twelfth (12th) annual general meeting
NOTICE IS HEREBY GIVEN that the Twelfth Annual General Meeting of
AMANAH RAYA BERHAD will be held at the Boardroom, 15th Floor,
Wisma AmanahRaya, No 2, Jalan Ampang, 50450 Kuala Lumpur on
Friday, 29 June 2007 at 10.00 a.m or any adjournment thereof to
transact the following business :
To receive and adopt the Statutory Financial Statements of the
Company and the Group for the financial year ended 31 December
2006 together with the Reports of the Directors and Auditors
thereon.
(Resolution 1)
To approve the declaration of a final tax exempt dividend of 20% for
the financial year ended 31 December 2006.
(Resolution 2)
To approve the payment of Directors' fees and remuneration for the
financial year ended 31 December 2006.
(Resolution 3)
To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the
Company until the conclusion of the next Annual General Meeting
and to authorise the Board of Directors to fix their remuneration.
(Resolution 4)
To transact any other ordinary business of which due notice shall
have been given in accordance with the Companies Act, 1965.
BY ORDER OF THE BOARD
ZAINUL ABIDIN HAJI AHMAD
LS8854
Company Secretary
Date: 8 June 2007
Note:
1. A member of the Company entitled to attend and vote at this Meeting is entitled to appoint a
proxy to attend and vote in his stead.
2. A proxy may but need not be a member of the Company, an advocate, an approved Company
auditor or a person approved by the Registrar of Company.
3. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her
attorney duly authorised in writing or, if the appointer is a corporation, either under its common
seal or under the hand of an officer or attorney duly authorised.
4. The instrument appointing a proxy must be deposited at the registered office of the Company
not less than 48 hours before the time appointed for holding the Meeting.
p.4
about songket
Songket is a handwoven textile using a traditional
loom called 'keh'. The use of gold threads to make
up beautiful motifs and patterns involves the
process of 'menyungkit', a Malay word in which the
warp threads are lifted to insert the gold colored
thread to make up the motifs. The weaving is
painstaking for it involves an intricate and
complicated process of simultaneously interlacing
vertically stretched parallel gold threads at right
angles with horizontally stretched parallel silk
threads.
milestones
amanah raya berhad - MILESTONES FOR 2006
21 February
March December
p.6
Maiden visit by YB Dato' Seri Mohamed Nazri Abdul Aziz, Minister in the Prime
Minister's Department to AmanahRaya Headquarters.
Launching of a nationwide promotion of Amanah Raya Wills Writing.
31 March
Signing of Memorandum of Understanding between Amanah Raya Berhad and 3
local universities; Universiti Teknologi Mara (UiTM), Universiti Malaya (UM) &
Universiti Utara Malaysia (UUM) held at Amanah Raya Berhad's headquarters and
witnessed by YB Datuk Mustapa Mohamed, Higher Education Minister.
1 - 4 April
Participated in Kemubu Agricultural Development Authority (KADA) Agrotek
Carnival in conjunction with RTM's 60th Anniversary held in Kota Bharu, Kelantan.
23 April
Launching of Amanah Raya 85th Anniversary Logo and Advertisement on STAR Light
Rail Transit System's coaches at Bukit Jalil Stadium by YB Dato' Seri Mohamed Nazri
Abdul Aziz.
24 April
Launching of Amanah Raya Integrity Plan (ARIP) held at the Institute of Integrity
Malaysia.
17 May
Signing of a Sale and Leaseback Agreement between Amanah Raya Berhad and
Silver Bird Group Berhad for Silver Bird Complex in Shah Alam.
30 May
Launching of 10,000 Amanah Raya Wills Campaign by Wassiyyah-Shoppe, a
corporate agent of Amanah Raya Berhad.
8 June
"Signing of Sale and Leaseback Agreement between Amanah Raya Berhad and
Tamadam Berhad on Tamadam Bonded Warehouse.
15 June
Launching of Amanah Raya Corporate Batik and "Tepak Sireh" Icon by YB Datuk Seri
Utama Dr Rais Yatim at Amanah Raya Berhad's Headquarters.
19 June
Signing ceremony for Strategic Alliance Agreement between Bank Muamalat
Malaysia Berhad (BMMB) and Amanah Raya Berhad on the appointment of Bank
Muamalat Malaysia Berhad as the corporate agent for Amanah Raya's will-writing
services.
28 June
Signing of Memorandum of Understanding between AmanahRaya Development Sdn
Bhd with Johawaki Development Sdn Bhd to jointly develop over 30 acres of land
in Kepong into mixed housing project.
milestones
amanah raya berhad - MILESTONES FOR 2006
3 August
Signing ceremony on the partnership between Hong Leong Islamic Bank Berhad
(HLIB) and Amanah Raya Berhad on the inclusion of ARB's Islamic will-writing
business services in HLIB's wealth management solutions.
5 August
Signing of Sale and Leaseback Agreement for Selayang Mall Complex, Selangor
between Amanah Raya Berhad and Seal Incorporated Bhd.
8 August
Launching of Hong Leong Bank Berhad (HLBB) Investsafe, an investment product
jointly developed by Amanah Raya Berhad and Hong Leong Bank.
18 August
Launching of Wisma AmanahRaya and the "Perwarisan AmanahRaya" Book by
His Majesty Yang Dipertuan Agong Tuanku Syed Sirajuddin Tuanku Syed Putra
Jamalullail held at KL Hilton.
5, 12 & 26
August
Kick start of Amanah Raya "Hari Bersama Pelanggan" Promotion.
8 September
Signing of Service Level Agreement between Automobile Association of Malaysia
(AAM) and Amanah Raya Berhad.
21 September
Launching of AmanahRaya Unit Trust Management Sdn Bhd (ARUTM)'s unit trust
funds, AmanahRaya Unit Trust Fund (ARUTF) and AmanahRaya Syariah Trust Fund
(ARSTF) by YB Dato' Seri Mohamed Nazri Abdul Aziz, Minister in the Prime Minister's
Department.
29 September
Collaboration Agreement with Pos Malaysia Berhad to provide a new marketing and
distribution channel for Amanah Raya Unit Trust Fund (ARUTF) and AmanahRaya
Syariah Unit Trust Fund (ARSTF) via Pos Malaysia's network of post offices.
12 October
Announcement on the rating by Standard & Poor's Rating Services of BBB- for
AmanahRaya Real Estate Investment Trust (AmanahRaya REIT).
15 December
Signing of the Underwriting Agreement for AmanahRaya REITs between retail
underwriters and Amanah Raya - JMF Asset Management.
15 December
Signing of Memorandum of Understanding between Amanah Raya Berhad with
Macquarie Group and Faisal Private Bank (Switzerland) to forge greater
cooperation and partnership in the area of corporate advisory and offshore Islamic
Banking.
p.7
board of directors
board of directors
Pn. Azailiza Mohd Ahad
Tuan Haji Ab Gani bin Haron
Dato’ Haji Dusuki bin Ahmad
Dato’ Ahmad Rodzi Pawanteh
p.8
board of directors
Dato’ Abdullah
Sani bin Ab Hamid
Datuk Mohd Hashim bin Hassan
Datin Aminah binti Pit Abd Raman
Encik Shamsuddin bin Haji Tahir
Pn. Sharifah Adlina Syed Abdullah
p.9
board of directors
board of directors
Dato’ Haji Dusuki bin Ahmad was appointed as Chairman on 29 December 2003 and is a Member of the
Syariah Advisory Council. He is also Chairman of the Syariah Advisory Council of AmanahRaya Unit Trust
Management Sdn Bhd (formerly known as Amanah Raya Asset Management Sdn Bhd) (“ARUT”). He holds
a Masters of Arts in Syariah from Al-Azhar University of Cairo, Egypt. He was the Director of Yayasan
Dakwah Islamiah Malaysia (YADIM) from June 1975 to May 1982 and Member of the Advisory Council for
Religious Education Affairs to the Minister of Education from October 1974 to 1978. He was also the
Parliamentary Secretary of the Regional and Land Development Ministry from July 1984 to August 1986
and Parliamentary Secretary of the Ministry of Information from August 1986 to November 1990. From
June 2000 to October 2003, he was the Political Secretary to the Prime Minister.
Dato’ Ahmad Rodzi Pawanteh was appointed as Managing Director and Chief Executive Officer
effective from 1 July 2004. He is the Chairman of the Quotation and Executive Committees and
Member of the Investment, Tender and Law Review Committees. He sits on the Board of all Subsidiaries
of Amanah Raya Berhad. He holds an MBA (General Management) from Southern Cross University,
Australia, and MBA (Banking & Finance) from University of Hull, United Kingdom. He graduated from
the University of Malaya with a Bachelor of Economics (Honours)-Accounting and also from the
University of Wolverhampton, United Kingdom with a Bachelor of Laws (Honours). He is a member of
the Chartered Institute of Marketing, United Kingdom and a Registered Financial Planner.
Tuan Haji Ab Gani Haron was appointed as a Non-Independent Non-Executive Director with effect from
17 January 2002, representing ARB’s main shareholder i.e. The Minister of Finance (Incorporated). He
sits on the Board of Amanah Raya (Labuan) Limited (ARL), AmanahRaya Investment Bank Limited,
Amanah Raya Capital Sdn Bhd (ARC) and also the Chairman of Audit Committee and Tender Committee.
He graduated from University of Malaya with a Degree in Economics with Honours. His first
appointment in the Government service was as an Accountant at the Unclaimed Moneys Department in
1977. He has worked in various government departments such as Accountant General, Sabah State
Treasury and he is currently the Deputy Accountant General (Operation), Malaysia.
Datin Aminah Pit Abd Raman was appointed to the Board as an Independent Non-Executive Director on
1 August 2002. She is the Chairperson of the Investment Committee and a Member of the Personnel &
Integrity Committee, Audit Committee and Syariah Advisory Council. She is also the Chairperson for
ARL. She has amassed diverse experience in entrepreneurship as well as in corporate and government
sectors, making her a valuable resource for ARB. Prior to that, she was attached to Hong Leong Bank
Berhad from 1995 to March 2002 as General Manager, Economics and Islamic Banking Division. Apart
from advising senior management on regional and global issues, she worked extensively in corporate
banking and finance. She began her career as Administrative and Diplomatic Officer in 1972 and served
the government for 23 years. In the government sector, she served as Director of the Planning and
Development Division for the Ministry of Domestic Trade and Consumer Affairs in 1991, where she was
directly involved in corporate planning at the ministerial level. She also served as the Deputy Director
of Administration at the University Hospital Kuala Lumpur in 1986. Prior to 1986, she also served the
Ministry of Finance, Ministry of Trade and Industry and the Economic Planning Unit, Prime Minister’s
Department. She graduated with a Bachelor of Economics with Honours from Monash University,
Melbourne, Australia in 1971, and completed her Post-graduate Diploma in Business Studies from the
London School of Economics, London, United Kingdom in 1985.
Encik Shamsuddin bin Haji Tahir was appointed as an Independent Non-Executive Director since 13
July 2004. He sits as Board Member in AmanahRaya Development Sdn Bhd (formerly known as ARB
Hartanah Sdn Bhd) and ARC. He is also a Member of Investment and Personnel & Integrity Committees.
He is an ardent politician and has held various duties in UMNO including as the UMNO Youth Deputy
Head for the district of Pendang from 1993 until 1995. He is the Chairman of various organisations
including Majlis Belia Daerah Pendang. Presently, he serves as Pendang’s UMNO Deputy Chief and
Director of Bina Darulaman Quarry Sdn Bhd.
p.10
board of directors
board of directors
Datuk Mohd Hashim bin Hassan was appointed to the Board as an Independent Non-Executive
Director since 28 April 2005 and has held various key positions throughout a career spanning almost
33 years in the government, semi-government and private sectors. Currently, he is the Chairman for
AmanahRaya Development Sdn Bhd (formerly known as ARB Hartanah Sdn Bhd) and also a Board
Member of AmanahRaya Asset Management (Labuan) Ltd. He was the Chief Executive Officer of
Kedah State Development Corporation from 1993 until 1996, Managing Director of Kulim Technology
Park Corporation from 1994 until 1996, Executive Chairman of Bina Darulaman Berhad from 1994
until 1997 and Director/Chief Executive Officer of Putrajaya Holdings Sdn Bhd from 1996 until 2002,
Chairman of Putrajaya Holdings Sdn Bhd from 2003 to 2005, Chaiman of Padi Beras Nasional Berhad
from 2004 to 2006 and Deputy Chairman of KUB Malaysia Berhad. He obtained his MBA from Ohio
University United States of America, as well as an M. SC (Food Science) from Michigan State
University, United States of America and a B. Agri. Sci. from University Malaya. He is presently the
Director of Bank Kerjasama Rakyat (M) Berhad, Lebar Daun Berhad and member of the KWSP
Investment Panel.
Puan Sharifah Adlina Syed Abdullah was appointed to the Board as a Non Independent
Non-Executive Director on 1 August 2006. She graduated with a Bachelor in Business Administration
(Banking) with second class upper Honours from the Northern University of Malaysia in 1997 and a
Master of Science in International Economics, Banking and Finance from University of Wales, Cardiff,
United Kingdom in 2005. She began her career with the United Overseas Bank (Malaysia) Bhd in 1997
as a Credit and Marketing Officer, managing a portfolio of middle market corporate loans before
leaving the bank as Account Relationship Manager in March 2000. Since April 2000, she joined the
government service as an Administrative and Diplomatic Officer posted to the Ministry of Finance
and has served in various capacities within the Ministry. She currently serves as the Principal
Assistant Secretary in Investment, MOF (Inc.) and Privatisation Division. She is also a member of the
Investment and Audit Committee of the Company.
Puan Azailiza Mohd Ahad was appointed to the Board as a Non Independent Non-Executive Director
on 30 June 2006. She graduated from the University of Malaya, Kuala Lumpur and has 21 years of
judicial, legal and advisory experience in Government sector. She began her career in the Legal and
Judicial Service as a Magistrate at the Magistrate Court in 1985. Her working experience includes
serving as the Senior Federal Counsel at the Economic Planning Unit of the Prime Minister’s
Department, Kuala Lumpur before moving to the Advisory and International Law Division of the
Attorney General’s Chambers, Putrajaya in 2001. She is currently the Head of International Affairs
Division, Attorney General’s Chambers, Putrajaya.
Dato’ Abdullah Sani bin Ab Hamid holds a Master of Public Administration from The America
University, United States of America as well as a B. Sc. (Pol.Sc.) from University Sains Malaysia, Pulau
Pinang. He started his career as an Assistant District Officer, Port Dickson in year 1975. In 1980 until
1984 he held a position as Assistant Secretary of ‘Kerajaan Negeri Sembilan’, in 1984 to 1985 as a
Senior Assistant Director of ‘Pejabat Ketua Pengarah Tanah dan Galian Persekutuan’, and in 1987 to
1992 as a Principal Assistant Secretary of Negeri Sembilan (Protocol). He was a Deputy Chairman of
‘Majlis Perbandaran Seremban’ in 1992 until 1996 and then became a Director of Yayasan Negeri
Sembilan from 1997 to 2002. He was attached to ’Pejabat Setiausaha Kerajaan Negeri Sembilan’ as
the State Financial Officer, Negeri Sembilan in year 2002 to April 2005 and then held a position as
the State Secretary, Negeri Sembilan in April 2005 to 27 December 2006. He is presently the Director
General of the Legal Affairs Division in the Prime Minister’s Department.
p.11
p.12
Y. Bhg. Dato’ Haji Dusuki bin Ahmad
Chairman
Dear Shareholders,
On behalf of the Board of Di r e c t o r s a n d o u r d e d i c a t e d m a n a g e m e n t t e a m ,
it is my pleasure to prese n t t h e A n n u a l R e po r t a n d t h e A u di t e d Fi n a n c i a l
St at ements of Amanah Ra y a B e r h a d a n d i t s s u bs i d i a r i e s ( “ A m a n a h R a y a
Group”) for the financial y e a r e n d e d 3 1 s t D e c e m be r 2 0 0 6 .
p.13
EXCELLENT PERFORMANCE
I am delighted to report that AmanahRaya Group has generated another excellent performance
for the second consecutive year. The Group reported a 77% increase in total revenue to
RM109.87 million, from RM62.17 million in 2005. The strong revenue growth was translated to a
116% rise in its profit before tax to RM41.18 million, compared to RM 19.02 million in 2005.
DIVERSIFYING BUSINESS OPERATION
The Group’s business diversification strategy in 2006 has witnessed its operation spreading
beyond its traditional activities of estate administration, trust operation and wills services, to
include asset management, personal financing, offshore operations and property management.
Notwithstanding, the activities of trust operation, estate administration and wills services at
ARB continued to garner stronger footing. The trust business at ARB has grown exceptionally
well with the size of its trust fund, the Common Fund, expanding 54% to reach RM 5.28 billion as
at the end of 2006. ARB has made further inroads in corporate trusteeship with the Net Asset
Value (NAV) of all the trust funds under its trusteeship growing to RM 77.56 billion as compared
to RM 65.59 billion in 2005. In addition, the trust operation and estate administration was
further boosted with the opening of ARB Service Centre to enhance customer services and to
provide a one-stop centre for all ARB products and services. ARB has also positioned itself as
front-runner in the provision of wills services with the strategy of collaborating with strategic
partners to raise awareness and increase the number of wills registered at ARB.
The Group’s financial services activities have progressed strongly during the year. As the fund
manager of the Common Fund, Amanah Raya-JMF Asset Management Sdn Bhd has aggressively
acquired investment opportunities and managed to launch AmanahRaya-Real Estate Investment
Trust (ARREITs) during the year. Amanah Raya Capital Sdn Bhd has also enlarged its range of
financial products to include two Islamic credit option schemes, namely, Bay Al Inah and Bay Ad
Dayn. The Group has successfully launched its first two unit trust funds, AmanahRaya Unit Trust
Fund and AmanahRaya Syariah Trust Fund through AmanahRaya Unit Trust Management Sdn Bhd.
The Group’s offshore operation was boosted by the strong performance of our trustee subsidiary,
Amanah Raya Labuan Ltd., and the granting of licenses to operate AmanahRaya Investment Bank
Ltd and AmanahRaya Asset Management Ltd in Labuan. The Group’s involvement in the property
sector via ARB Hartanah Sdn Bhd has also expanded with the acquisition of mandates for project
management and property development.
DIVIDEND
The Board is recommending a final dividend of 20% for the financial year ended 31 December
2006, subject to the members’ approval at the forthcoming Annual General Meeting.
PROSPECTS
AmanahRaya Group is confident of a better year in 2007 for the Malaysian economy and the
financial services sector in general. In view of the anticipated improved outlook, the Group has
devised business strategies to acquire opportunities to sustain its performance growth. An
internal restructuring of its business operation was recently undertaken to ensure its activities
p.14
are more focused and ready to endure future competitive environment. The restructuring
entailed the clustering of subsidiaries concentrating on the provision of legacy services,
trusteeship services, property development and capital market products and services.
AmanahRaya Legacy Services Sdn Bhd will commence operation in 2007 with the objective of
providing comprehensive legacy management services comprising wills writing, custodianship
and execution. As the trustee for major trust funds in the country, ARB’s presence in the
corporate trusteeship sector has long been renowned and this position is to be enhanced with
the setting-up of a dedicated trustee arm, AmanahRaya Trustees Bhd in 2007.
The granting of licenses to operate an investment bank and asset management company out of
Labuan is opening further opportunities for the Group to expand its range of financial services and
entrench ARB’s involvement in the capital market.
AmanahRaya Group recognizes the importance of continuously improving its customer services.
Further to the establishment of ARB Service Centre, a Care Unit was established to cater for
estate and trust beneficiaries with special needs. The Group has also incorporated an Integrity
Unit in line with the National Integrity Plan (NIP) launched by the Government and the
comprehensive plans as stipulated in the Amanah Raya Integrity Plan (ARIP).
I am also proud to inform that ARB has successfully received the renewal of its ISO 9001:2000
certification for its business processes. Our asset management company, AmanahRaya – JMF
Asset Management Sdn Bhd (“AR-JMF”) was also accredited with ISO 9001:2000 and the United
Kingdom Accreditation Service (“UKAS”) certification in July 2006.
OUR GRATITUDE
I would like to record my gratitude and appreciation to the Board of Directors, the management
and staff of the AmanahRaya Group who have contributed to the strong performance of the
Group. I take pride in their display of high commitment and professionalism to achieve our
mission and vision. My fellow members of the Board have always been supportive and
continuously providing invaluable insights to steer our Group towards achieving its objectives.
I would like to record my appreciation to the out-going members of the Board, Datuk Mohamed
Bazain Hj Idris, Dato’ Mahadi bin Hj Ibrahim and Hj Ahmad Kamal Abdullah Al-Yafii, and welcome
Dato Abdullah Sani bin Ab Hamid, Puan Azailiza Mohd Ahad and Puan Sharifah Adlina Syed
Abdullah as the new members of the Board of Directors of ARB. I would also like to take this
opportunity to extend my appreciation to the members of the Board of Directors of all the
subsidiaries of Amanah Raya Berhad.
I would also like to extend my gratitude to the Prime Minister’s Department, being our
Ministry-in-charge, our shareholders, Minister of Finance (Incorporated) and Federal Lands
Commissioner, our customers, business partners, financial institutions and regulatory bodies for
their unwavering support and we look forward to their continuous support in the coming years.
Dato’ Haji Dusuki bin Ahmad
Chairman
p.15
Y. Bhg. Dato’ Ahmad Rodzi Pawanteh
Managing Director
Dear Shareholders,
I am proud to deliberate on
the exceptional performance of
AmanahRaya Group in 2006, which
has posted a hefty 116% rise in
pre-tax profits to RM41.18 million
compared to RM19.02 million in
t h e p r e v i o u s y e a r.
p.16
Amanah Raya Berhad 2006 annual report annual report
managing director’s statement
performance highlights in 2006
PERFORMANCE REVIEW
During operations of the year, AmanahRaya Group has managed to display strong overall
performance in estate and trust administration, legacy services, asset management,
consumer financing, financial services and property management. The Group’s business
diversification and expansion strategy has contributed positively to the outstanding
performance.
Our asset management arm, AmanahRaya-JMF Asset Management Sdn Bhd has contributed
significantly to the Group’s earnings with pre-tax profits of RM4.76 million in 2006.
AmanahRaya-JMF is continuously seeking new investment avenues and generating
innovative products and services to cater to the demanding market. Towards this
objective, it has undertaken various efforts including the conception of the AmanahRaya
Real Estate Investment Trust (ARREITs), Islamic Financial Option and various collective
investment schemes.
The Group has seen favorable returns from its involvement in the offshore capital market
with its subsidiary, AmanahRaya Labuan Ltd securing a number of trusteeship mandates
and reported pre-tax profits of RM4.70 million. We are also pleased with the performance
of our consumer financing subsidiary, AmanahRaya Capital Sdn Bhd, which registered its
first full-year profits of RM3.82 million. In a move towards becoming a more established
financing house, AmanahRaya Capital has undertaken efforts to enhance its operational
efficiencies to ensure superior processing and delivery standards.
AmanahRaya’s foray in the property sector has also displayed encouraging results with its
subsidiary, AmanahRaya Development Sdn Bhd (formerly known as ARB Hartanah Sdn Bhd),
reporting stronger profits of RM3.68 million arising from building management fees and
the securing of new mandates for property development ventures.
The strong performance of the AmanahRaya Group has generated a respectable set of key
performance indicators with huge improvements on its earnings per share (EPS), net
tangible assets (NTA), and Return on Shareholders’ Fund.
(RM million)
2004
2005
2006
Total Revenue
37.96
62.17
109.87
Pre-tax Profits
3.09
19.02
41.18
6%
29%
39%
Earnings per Share (RM)
0.23
2.17
7.00
Net Tangible Asset per share (RM)
8.46
10.11
16.86
Return On Shareholders’ Funds
p.17
BUSINESS OPERATIONS REVIEW
During the year, the Groups’ corporate strategy has been one of incorporating both operational
performance enhancement measures as well as initiatives that create new business prospects.
The Group is continuously seeking opportunities that enhance shareholder value and towards
becoming a stronger and more resilient financial services group.
TRUST AND ESTATE ADMINISTRATION
ARB took pride in establishing the ARB Service Centre, a one-stop centre to enhance customer
service excellence philosophy. Our goal is to provide easy access for our customers to reach our
specialized services. The centre is located right in the heart of the city at No 2, Jalan Ampang,
well within walking distance from the city’s light rail system. The centre is fully equipped with
capable staff and a powerful Information System that translates to faster service, access to
critical customer information and efficient implementation. A dedicated Private Trust Unit was
also created during the year to provide personalized services on Trust and Estate Administration
matters for high-nett worth clients and also for clients that require integrated services for trust
and legacy services.
As at 31st December, 2006, there were 51,734 active trust accounts valued at RM5.25 billion
under the administration of ARB. In addition, there were 21,773 active estate administration
cases as at the end of 2006. The Trust and Estate Administration operation received a further
boost of confidence when ARB received a renewal of it Quality Management System (ISO
9001:2000) accreditation in May 2006.
In a move to enhance delivery in the provision of legacy services, a Probate Management
Department was established to undertake the functions of wills writing, registration,
custodianship and execution. The year 2006 alone saw ARB aggressively marketing its wills
services via house promotions and marketing alliances with strategic partners, which brought a
huge rise in the number of wills registered at ARB. As at the end of 2006, ARB has managed to
register a cumulative total wills of 15,015 cases compared to only 5,136 wills at the beginning of
the year.
CORPORATE TRUSTEESHIP
During the year, the Group managed to expand further its corporate trusteeship business with
the number of trust funds under ARB’s trusteeship increasing to 96 funds compared to 76 funds
in 2005. The net asset value (NAV) of total funds under ARB’s trusteeship amounted to more than
RM72 billion, representing 67% market share of total trust funds in the country. The Group has
aggressively participated in the bond market and managed to secure trusteeship for 30 bonds
valued at more than RM27 billion, compared to 16 bonds (valued at RM21.52 billion) in 2005.
CAPITAL MARKETS AND FINANCIAL SERVICES
The year 2006 marked a landmark year for the Group in terms of progressing in the capital
markets and financial services sector. As at 31st December 2006, the Common Fund (Kumpulan
Wang Bersama) of ARB grew substantially from RM3.43 billion in 2005 to RM5.28 billion in 2006.
This fund, which is managed by AmanahRaya – JMF, is the main trust fund of ARB. The intrinsic
value of the Common Fund was further enhanced after the capital appreciation of its property
investments in the AmanahRaya REITs in February 2006.
p.18
The capital market division contributed strongly to the Group’s earnings during the year.
AmanahRaya-JMF had its full-year of operation under the AmanahRaya umbrella and contributed
substantially to the Group’s profitability. During the year, AmanahRaya-JMF teamed up with third
party financial advisors to launch AmanahRaya REITs, the first real estate investment trust
launched by a Government-owned company. There is a need for ARB as a new entrant to propel
itself towards becoming a significant capital market player by continuously introducing
competitive and innovative products and services. As such, AmanahRaya-JMF and Hong Leong
Bank Bhd is also collaborating on the first Islamic Financial Portfolio Obligations (IFPO), due for
launch in 2007.
Another feather in the cap for the Group’s involvement in the financial services industry was the
incorporation of the AmanahRaya Unit Trust Management Sdn Bhd. The company launched its
first two unit trust funds with a total approved fund size of RM1.0 billion in September 2006. In
the financial market place, these unit trusts have the competitive edge of having the majority
of its investments in financial instruments with guaranteed capital and consistent returns.
AmanahRaya Capital, which commenced its full operation during the year by offering Islamic
consumer financing, saw its total asset portfolio grow substantially to RM 66.38 million at the
end of 2006. The subsidiary registered pre-tax profits of RM3.82 million in 2006 and is extending
its financial products to ARB’s existing trust clients and estate beneficiaries.
Our property subsidiary, AmanahRaya Development Sdn Bhd, reported favorable results with
pre-tax profits of RM3.68 million. The company continued making inroads in project
management and managed to secure contracts for joint-venture development projects with
established property companies.
Amanah Raya Labuan Ltd reported a turnaround performance in 2006 with pre-tax profit of
RM4.70 million. The company generated its revenue from trustee fees of the Common Fund’s
foreign investment and a growing number of private companies with offshore investment.
Amanah Raya Nominees Sdn Bhd managed to increase its pre-tax profits from RM0.87 million to
RM1.29 million in 2006 despite competition from foreign bank-backed trustee companies.
Towards the end of 2006, AmanahRaya’s foray in the capital market was further boosted when it
received the approval from LOFSA to undertake investment banking and asset management
operations in Labuan. The offshore operation is being undertaken by new subsidiaries, namely,
AmanahRaya Investment Bank Ltd and AmanahRaya Asset Management Ltd. Its maiden activities
have received an encouraging start when the Group secured initial mandates on offshore
investment from Morgan Stanley and Faisal Private Bank of Switzerland.
BUSINESS DEVELOPMENT ACTIVITIES
Market development activities during the year focused on sustaining an awareness program of
ARB’s products and services. This program included focused promotional activities on wills
services and wider media coverage of the Group’s capital market activities. The Year 2006
signified ARB’s commitment to increase mass awareness on the importance of will writing.
Aggressive programs and promotional activities were organized in key market sectors, with
competitive pricing strategies and also strategic alliances with established service providers
such as Hong Leong Islamic Bank Bhd, Bank Muamalat Malaysia Bhd and Wasiyyah – Shoppe Sdn
p.19
Bhd. As a measure of our commitment toward the development of the wills and estate
administration sector, we initiated and took the lead towards the formation of the Malaysian
Legacy Management Association, PERWARIS which was established in March 2006 to serve as a
reference body for all practitioners in Malaysia.
Throughout 2006, the AmanahRaya Group celebrated it’s 85th anniversary as the Public Trustee
of Malaysia with various events and programs. The Group launched AmanahRaya’s Corporate
Batik and Tepak Sireh icon in June. The Corporate Batik was adopted as the corporate attire for
the AmanahRaya Group to clearly define and signify our corporate identity as a true blue
Malaysian entity with a strong sense of our heritage. The Tepak Sireh was chosen as an icon for
AmanahRaya to symbolize the continuity of a proud tradition which has evolved into a legacy.
To commemorate the evolution and inception of Amanah Raya Berhad from it’s role as the Public
Trustee, a special corporate logo of an abstract hibiscus, the national flower of Malaysia was
created. The Group marked the Anniversary Celebration with a grand dinner and the publication
of the AmanahRaya Souvenir Book in August 2006. The event was graced and officiated by His
Majesty Seri Paduka Baginda Yang DiPertuan Agong, Tuanku Syed Sirajuddin ibni Al-Marhum
Tuanku Syed Putra Jamalullai. The occasion also commemorated the official relocation of ARB’s
headquarters from Jalan Damansara, Kuala Lumpur to Wisma AmanahRaya, Jalan Ampang.
ORGANIZATIONAL DEVELOPMENT
As a Government-owned company, it is one of ARB’s objectives to elevate its corporate social
responsibility to a higher level. During the year, the Group has allocated more than RM1.0
million for various charity programs which included distribution of school bags to
underprivileged children, donations to flood victims and contributions to social and charity
events. As a caring corporate entity, the Group has also established a dedicated Care Unit in
September 2006 to ensure the welfare and social development of its minor beneficiaries and
physically-challenged clients are well-taken care.
Quality Management is another aspect of the Group’s focus for the coming years. Sharing the
holding company’s vision, Amanah Raya-JMF was also awarded quality certification from both
SIRIM and UKAS during the year. It is anticipated that all the subsidiaries of the Group will be
accredited with ISO certification to ensure its work processes are of superior standards.
In line with the Government’s call for corporations to adopt the National Integrity Plan (NIP),
AmanahRaya Group has initiated a positive move to instill the NIP into the work place by being
the first private entity to introduce a comprehensive integrity plan namely AmanahRaya
Integrity Plan (“ARIP”), which was officially launched in April 2006. An Integrity Unit was
specifically set up to create awareness and outline appropriate code of business ethics and
practices to be observed by the Group.
HUMAN CAPITAL
As the AmanahRaya Group is widening its current business operations and expanding into new
business territories, there is the need for the Group to continuously build its human capital to
ensure the resources are more resilient and competitive. During the year, the Group
implemented a new and competitive remuneration scheme to all ARB employees. The Group has
seen its staff strength grow by 29% to 546 staff from only 423 staff in 2005. The Group has also
p.20
raised expenditure on staff training, which encompasses in-house and external seminars, courses
and conferences, executive education and attachments with established industry players.
In support of the Government’s initiatives to reduce unemployment, the Group has taken its
corporate social responsibility to a higher level by providing job training and attachments to
local graduates. To reinforce AmanahRaya’s commitment into building knowledgeable future
leaders, the Group has also signed a Memorandum of Understanding with 3 local universities to
offer Internship Programs for their graduates.
The welfare of the staff has always been one of the priorities of the AmanahRaya Group. During
the year, the staff enjoyed their Family Day in Pulau Langkawi, whilst the Sports Club also
organized various activities among the staff and sports competition with participation from
other companies and Government Departments. Towards the end of 2006, Koperasi Amanah Raya
Berhad was incorporated to provide opportunities for staff members to participate in potentially
good business ventures.
PROSPECTS
On behalf of the management team and the staff of ARB, we wish to inform our shareholders
that the prospects for the Group are very promising in the near to medium term. The
commitment shown thus far will be further intensified and focused towards strengthening our
existing businesses and monitoring new activities to ensure continuous good returns. We will still
continue to exercise prudence and care in our stewardship of the capital and assets entrusted to us.
In order to sustain the momentum of growth and to transform ARB into a resilient financial
services group, the company has taken the initial steps of restructuring its business operations.
ARB, the company will be the holding company engaged in the core activities of Trust and Estate
Administration whilst providing strategic support services to all the subsidiaries within their
areas of expertise. The subsidiaries of ARB are strategic business units, which are grouped under
four major divisions as described below.
Capital Markets And Financial Services
– provision of products and services related to capital market such as asset management,
investment banking, unit trust operation, retail financing
Trustee Services
– provision of corporate trusteeship services, custodial, nominee services for local
and offshore market
Legacy Services
– provision of comprehensive legacy services including wills writing, registration,
custodial and execution
Property Services
– focusing on property management, project management and property development
The Capital Markets And Financial Services is expected to be at the forefront of all activities in
2007 with the listing of AmanahRaya REITs in February 2007. The Division is spearheading the
AmanahRaya Group into building the foundation to enhance its position as a capital market
player by introducing innovative investment instruments and collective investment schemes. The
Group is also expected to launch new products and services for offshore markets in relation to
p.21
treasury, corporate finance and advisory, investment banking and asset management when our
investment bank commences its operations in 2007.
The business of corporate trusteeship is expected to expand further in positioning ARB as a
full-fledged investment services provider. The year 2007 will see the concentration of all the
activities of corporate trusteeship and nominee services for local and offshore markets under a
dedicated subsidiary, AmanahRaya Trustees Bhd. The focus of the new subsidiary is to ensure
smoother delivery and efficient data management. The company is also expected to work
closely with established global market players to gain from the transfer of technology and
expertise in the global environment.
In sustaining ARB’s position as the premier trustee company, the year 2007 will carry the ‘Trust
Year’ theme whereby the company will launch new trust products namely Amanah Premier Trust
Deposits and Amanah Savings Trust. These products are additional trust accounts with different
features than the existing ARB Trust Account to cater to the different needs of the market.
ARB’s commitment towards the organized development of wills is to be further boosted when
the Malaysian Wills Registry (‘DaftarWasiat Malaysia’) is to be launched in June 2007, in a move
to register all wills in the country.
The Group’s commitment to the objectives of its Quality Management System (ISO 9001: 2000) is
expected to see subsequent enhancements on its operational and financial processes. The move
would also incorporate process technology enhancements for its operations with the expected
commissioning of ARB’s Trust and Estate Information Management System (TIMS) in 2007. The
Group is also upgrading and expanding its process technology for an integrated accounting,
trustee services and legacy management. In line with the corporate objective of inculcating the
culture of customers service excellence, the year will also see the Group embarking on
extensive customer service initiatives and improvement programs.
The Group’s drive for knowledge enhancement of its human capital will see a substantial budget
allocated for training and development programs. The investment in human capital
enhancement program will include intensive training and skill-enhancement exposures via
courses, seminars and attachment programs, continuing education programs and the formulation
of an expertise program in Trust and Estate Administration with a local educational institution.
We are looking forward to an enriching and successful year in 2007 for the AmanahRaya Group
and I am confident that the Group is well-positioned to achieve its objectives. I take this
opportunity to thank the Government of Malaysia and the Malaysian public, including the private
sector, for their continuous support to the AmanahRaya Group.
Lastly, on behalf of the management and staff, I would like to thank the Board of Directors for
the guidance and advice that they have provided thus far.
Managing Director
p.22
corporate structure
CAPITAL MARKETS
TRUST MANAGEMENT
AMANAHRAYA CAPITAL GROUP
SDN BHD
AMANAHRAYA TRUSTEES BERHAD
AMANAHRAYA-JMF ASSET
MANAGEMENT SDN BHD
AMANAHRAYA UNIT TRUST
MANAGEMENT SDN BHD
AMANAH RAYA CAPITAL SDN BHD
AMANAH RAYA NOMINEES (TEMPATAN)
SDN BHD
AMANAH RAYA NOMINEES (ASING)
SDN BHD
AMANAH RAYA (LABUAN) LIMITED
AMANAHRAYA PRIVATE EQUITIES
SDN BHD
AMANAHRAYA INVESTMENT BANK LTD
AMANAHRAYA ASSET MANAGEMENT
(LABUAN) LTD
AMANAHRAYA CORPORATE ADVISORY
SDN BHD
AMANAHRAYA INVESTMENT ADVISORY
SDN BHD
PROPERTY MANAGEMENT
AMANAHRAYA HARTANAH SDN BHD
AMANAHRAYA PROPERTIES SDN BHD
LEGACY MANAGEMENT
AMANAHRAYA PROJECT MANAGEMENT
SDN BHD
AMANAHRAYA DEVELOPMENT SDN BHD
AMANAHRAYA LEGACY SERVICES
SDN BHD
p.23
20
06
20
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20
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Earnings per Share (EPS)
Revenue and Profit Before Tax
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Net Tangible Assets
p.24
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Trust Fund Under Administration
AmanahRaya Group - 3 year highlights
.9
109
7
68.
20
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2
41.
2
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62.
20
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Expenses
2
43.
PBT
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p.25
senior management team
1. Datuk Mohamed Azahari Kamil
Managing Director,
AmanahRaya-JMF Asset Management Sdn Bhd
2. Abu Kassim Mohamed
Chief Integrity Officer
Amanah Raya Berhad
3. Rafie Omar
Director/CEO,
AmanahRaya Legacy Services Sdn. Bhd.
4. Hjh. Habsah Bakar
Director/CEO,
AmanahRaya Trustees Berhad
5. Alina Hashim
Chief Operating Officer
Amanah Raya Berhad
1
2
4
p.26
3
5
1. Abdul Malik Abbas
Chief Operating Officer,
AmanahRaya Hartanah Sdn. Bhd.
2. Sharizad Jumaat
Executive Director,
3. Tai Siong Choi
Executive Director,
4. Roslan Harun
Managing Director/CEO,
AmanahRaya Unit Trust Management Sdn. Bhd.
5. Ir. Ahmad Fohad bin Hussein
1
Chief Operating Officer,
AmanahRaya Development Sdn Bhd.
2
3
4
5
p.27
audit comittee report
MEMBERS
Datin Aminah Pit Abd Raman
Puan Sharifah Adlina Syed Abdullah (Appointed w.e.f. 1.8.2006)
Dato’ Mahadi Mohd Ibrahim (Resigned on 27.12.2006)
Haji Ahmad Kamal Abdullah AI-Yafii (Resigned on 1.8.2006)
TERMS OF REFERENCE OF AUDIT AND REVIEW COMMITTEE
Composition
The Audit and Review Committee comprises five (5) members. Two (2)
Independent Non-Executive Directors and three (3) Non-Independent
Non-Executive Directors of the Board.
Objectives
The Audit and Review Committee is established in accordance with the Treasury
Circular Letter No. 9 Year 1993 - Guidelines on the Setting up of Audit and Review
Committees for Government Companies for the purpose of:-
Maintaining the interest of the Government as the shareholder through
control and monitoring of the Management of the Company.
To assist the Board of Directors to monitor the principles and accounting
systems, internal controls, financial reporting and business ethics.
To determine the financial sources of the Company are administered and
managed efficiently and effectively in accordance with corporate and social
objectives.
To undertake the role as the review and balance mechanism (checks and
balances) of the management of the Company.
To ensure compliance with the statutory requirements as required under the
Companies Act 1965.
To oversee all functions of the Internal Audit Department.
p.28
Meeting
The quorum for the Committee shall comprise two (2) members.
The Committee shall meet at least once within a period of three (3) months or a
period determined by the Committee Chairman.
Functions
The Audit and Review Committee is primarily responsible to the Board of Directors.
Their terms of reference are as follow:To endorse the appointment and promotion of the Audit Manager and Internal
Auditors for the approval of the Board of Directors.
To provide support in ensuring the independence of internal audit activities so
that they run smoothly.
To carry out audit inspections or special reviews of achievements when needed.
To review the previous year's activities and achievements of the internal audit and
to formulate plans for next year.
To study and monitor corporate planning for review and internal control especially
in the area of management.
To review and supervise an effective accounting system by exercising controls in
related areas so that early warning systems about the Company's weaknesses can
be put in place.
To identify flaws in the management system which require improvement.
To ensure that breach of policies and system management procedures are
identified quickly and dealt with immediately.
To review direct expenditures such as annual operation expenditures as well as
direct expenses in order to ascertain that those costs are justifiable and related
to the functions of the organisations.
To determine the proper measures for identifying and protecting assets.
To study and discuss the plan for the annual external audit before it is carried out
each year.
p.29
audit comittee report
To observe the opinion of external auditors and ensure that matters arising
are given due attention and that proper action is taken by the management
of the Company.
To review the performance of the external auditor and to propose to the
Board of Directors on the re-appointment and annual fee of the firm.
To review and examine the Parent Company's audited as well as unaudited
annual financial statements, including that of the Subsidiaries and Associate
Companies, before their submission to the Board of Directors for approval.
MEETINGS
The Audit Committee had a total of two (2) Meetings during the financial year
ended 31 December 2006 and the attendance of the Committee Members were as
follows:Members
Attendance
2/2
2/2
Tuan Haji Ahmad Kamal Abdullah AI-Yafii
2/2
Dato’ Mahadi Mohd Ibrahim
2/2
(Appointed w.e.f. 1.8.2006)
N/A
ACTIVITIES
The Audit Committee had carried out the following main activities during the
financial year ended 31 December 2006:Discussed and reviewed the audit plan for the financial year ended 31
December 2006.
Discussed and reviewed the year end financial statements prior to the
presentation to the Board of Directors for approval.
Discussed and reviewed the Final Internal Control for the financial year ended
31 December 2006.
p.30
The Board of Directors is committed to ensuring that the highest standards of corporate
governance are practiced throughout the Group as a fundamental part of discharging its
responsibilities to protect and enhance shareholders’ value and the financial performance of
the Group and the Company.
Based on the Principles of the Malaysian Code on Corporate Governance (“the Code”) and with
the practice of openness and corporate accountability, the Board is pleased to present its
report on the extent of compliance with the Best Practices as recommended under Part 2 of the
Code in this statement.
THE BOARD OF DIRECTORS
The Board currently consists of eight (8) members, comprising seven (7) Non-Executive
Directors (including the Chairman) and one (1) Executive Director. The Directors bring a wide
range of legal, business and financial experience relevant to the direction of an expanding trust
company. Biographical for each of the Directors are set out on pages 10 to 11 of this Report.
The Board meets at least once every two (2) months with the additional Meetings convened as
and when necessary. All Board members have access to comprehensive information on the
Company's operations, marketing strategies, performance and financial status at the Board
Meetings and on a regular or ad-hoc basis.
During the financial year ended 31 December 2006, five (5) Board Meetings were held and the
attendance of the Board Members were as follows:-
Members
Dato' Haji Dusuki Ahmad
Appointed
Non
Independent
Independent
Attendance
29/12/2003
-
Yes
5/5
1/7/2004
Yes
-
5/5
17/1/2002
Yes
-
5/5
1/8/2002
-
Yes
5/5
Encik Shamsuddin bin Haji Tahir
13/7/2004
-
Yes
5/5
Datuk Mohd Hashim Hassan
28/4/2005
-
Yes
5/5
Puan Azailiza Mohd Ahad
30/6/2006
Yes
-
-
1/8/2006
Yes
-
3/3
p.31
Members
Appointed
Non
Independent
Independent
Attendance
Datuk Mohamed Bazain
Haji Idris
(Resigned on 30 June 2006)
24/1/1996
Yes
-
2/2
Haji Ahmad Kamal Abdullah
AI-Yafii
(Resigned on 1 August 2006)
1/8/2002
-
Yes
2/2
Dato’ Mahadi Mohd Ibrahim
(Resigned on 27 December 2006)
18/7/2005
Yes
-
5/5
There is a clear division of responsibilities and powers between the Chairman and the
Managing Director to ensure that the necessary checks and balances are in place as well as to
provide a degree of certainty in the exercise of their respective authorities.
The Chairman holds a Non-Executive position and is primarily responsible for the orderly
conduct and working of the Board while the Managing Director is responsible for the
day-to-day running of the business and implementation of Board policies and decisions with
the support of the management team.
The presence of Independent Non-Executive Directors provides an effective Board with a mix
of industry specific knowledge and broad business and commercial experience. Directors are
equally accountable and responsible and the role of these Independent Non-Executive
Directors is particularly important in ensuring that the strategies proposed by the
management are fully discussed and examined, compliant with the Companies Act 1965 and
Public Trust Corporation Act 1995 and/or any other regulations and also to take account of
the long term interests, not only of the shareholders, but also of employees, customers, and
public at large in which the Company conducts business. The Board may seek advice from
independent experts whenever necessary at the Company’s expense.
Pursuant to the Company’s Article of Association, unless otherwise agreed by the general
meeting, the number of Directors of the Company shall be not less than two (2) or more than
nine (9).
To assist the Board in discharging their duties in reviewing the operations and performance of
the Company efficiently, the Board has delegated some of its responsibilities to the following
Committees:-
p.32
Audit Committee
The Audit Committee reviews the effectiveness of the
internal control system of the Company. The Chairman of
the Committee is Haji Ab Gani Haron. The Composition
and Terms and Reference are stated on pages 28 to 30.
Two (2) Meetings were held during the financial year
ended 31 December 2006.
Personnel & Integrity
Committee
The Personnel & Integrity Committee comprises of one
(1) Independent Non-Executive Directors and two (2)
Non-Independent Non-Executive Directors of the Board.
The Chairman of the Committee is Dato’ Mahadi Mohd
Ibrahim. Three (3) Meetings were held during the
Investment Committee
The Investment Committee is responsible for reviewing
and monitoring the progress report for Corporate and
Kumpulan Wang Bersama investments and also new
investment proposals. The Committee comprises two (2)
Independent Non-Executive Directors, two (2) NonIndependent Directors of the Board and two (2)
Independent persons.
The Chairperson of the Committee is Datin Aminah Pit
Abd Raman. Eleven (11) Meetings were held during the
Tender Committee
The Tender Committee is responsible for the
procurement for works/service/supply amounting to
RM400,000/- and above. The Committee comprises one
(1) Non-Independent Non-Executive Directors and one (1)
Executive Director of the Board and two (2) Members of
the Management.
The Chairman of the Committee is Haji Ab Gani Haron.
The Committee did not meet during the financial year
ended 31 December 2006.
p.33
Law Review Committee
The Law Review Committee is set up to study the
existing law that relates to the Company, which the
Management may find if necessary to amend for the
benefits of Company. The Committee comprises one (1)
Executive Director of the Board and three (3) Members of
the Management.
Syariah Advisory Council
The Syariah Advisory Council comprises of two (2)
Independent Non-Executive Director of the Board and
three (3) Independent persons.
The Chairman of the Council is Dato’ Seri Haji Harussani
Haji Zakaria. Two (2) Meetings were held during the
Executive Committee
The Executive Committee is set up to facilitate and
co-ordinate activities between the ARB and its
subsidiaries. The Committee comprises one (1) Executive
Director of the Board and three (3) Members of the
Management.
The Chairman of the Committee is Dato’ Ahmad Rodzi
Pawanteh. The Committee did not meet during the
Quotation Committee
The Quotation Committee’s term of references amongst
others are responsible for procurement for works/
service/supply costing between RM50,000/- to below
RM200,000/- but for amounts below RM50,000/- they
have to follow the latest Treasury Circular. Sale by
tender of assets under administration of ARB pursuant to
order of court/land office notwithstanding the amount of
sale is also under its jurisdiction.
The Committee comprises one (1) Executive Director of
the Board and four (4) Members of the Management. The
Chairman of the Committee is Dato’ Ahmad Rodzi
Pawanteh. There was no Meeting held during the
p.34
SUPPLY OF INFORMATION
Prior to each Board Meeting, all Directors receive an agenda and a full set of Board Papers for
each agenda item to be discussed. These are issued well in advance to enable the Directors
to obtain further explanations, where necessary, in order to be briefed properly before the
Meeting. The Board is kept updated on the Company's financial performance and activities.
All Directors have access to the advice and services of the Company Secretary who are
responsible in advising the Board on the procedures for the Meeting and the implementation
of governance procedures.
APPOINTMENTS TO THE BOARD
The Minister of Finance (Inc) nominated all appointments to the Board.
RE-ELECTION
No Directors are subject to retirement and re-election by rotation in the Annual General
Meeting.
DIRECTORS' REMUNERATION
The details of the remuneration of Directors for the financial year ended 31 December 2006
are as follows:Directors’remuneration 2006 (RM)
Fees
333,250
Other emoluments
693,670
Total
1,026,920
FINANCIAL REPORTING
The Directors ensured that the financial year end statement is prepared in accordance with
the applicable approved standards as well as Companies Act 1965.
p.35
INTERNAL CONTROL
The Directors acknowledge their responsibilities for the Company’s system of internal control
and the need to review them regularly.
RELATIONSHIP WITH THE AUDITORS
The Directors have established formal and transparent relationship with its Auditors for
maintaining an appropriate relationship with the Company’s Auditors. The Audit Committee
meets with the external auditors without the presence of management at least once a year
to discuss the year end financial statements prior to the presentation to the Board of
Directors for approval.
p.36
38 - 41
directors’ report
42
statement by directors
42
statement declaration
43 - 44
report of the auditors
45
income statements
46 - 47
balance sheets
48 - 49
statement of changes in equity
50 - 51
cash flow statements
52 - 91
notes to the financial statements
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is
h i s t o r i c a l l y u s e d d u r i n g f o r m a l c e r emonies and worn
a r o u n d t h e w a i s t b y S u l t a n s a n d h i s minist ers as part of
t h e i r fo r m a l a t t i r e s .
directors’ report
The Directors have pleasure in submitting their report together with the audited financial
statements of the Group and of the Company for the financial year ended 31 December 2006.
PRINCIPAL ACTIVITIES
The principal activities of the Company consist of administrating estates of deceased persons,
acting as trustee for minors, public and unit trust schemes, and the management of trust funds.
The principal activities of the subsidiaries are set out in Note 13 to the financial statements.
There have been no significant changes in the nature of these activities during the financial year.
FINANCIAL RESULT
Net profit after tax
- Equity holders of the Company
- Minority interest
Group
RM
Company
RM
41,983,534
983,195
36,181,717
-
42,966,729
36,181,717
DIVIDENDS
The amount of dividends paid or declared by the Company since 1 January 2006 were as follows:
In respect of the financial year ended 31 December 2005
as shown in the Directors’ report for that year:
Final gross tax exempt dividend of 10.00 sen per share
on ordinary shares, paid on 28 December 2006
RM
600,000
The Directors recommend a final tax exempt dividend of 20 sen per share amounting to
RM1,200,000 in respect of the financial year ended 31 December 2006, subject to the approval of
members at the forthcoming Annual General Meeting of the Company.
p.38
directors’ report (continued)
RESERVES AND PROVISIONS
All material transfers to or from reserves and provisions during the financial year are shown in
the financial statements.
DIRECTORS
The Directors who have held office since the date of the last report are:
Dato’ Haji Dusuki bin Haji Ahmad
Dato’ Ahmad Rodzi bin Pawanteh
Shamsuddin bin Haji Tahir
Haji Ab. Gani bin Haron
Datin Aminah binti Pit Abd Raman
Datuk Mohd Hashim bin Hassan
Puan Azailiza binti Mohd Ahad
Puan Sharifah Adlina binti Syed Abdullah
Dato’ Abdullah Sani bin Ab Hamid
Datuk Mohamed Bazain bin Haji Idris
Haji Ahmad Kamal bin Abdullah Al-Yafii
Dato’ Mahadi bin Mohd Ibrahim
(appointed on 30.6.2006)
(resigned on 30.6.2006)
DIRECTORS' BENEFITS
During and at the end of the financial year ended 31 December 2006, no arrangements
subsisted to which the Company is a party, with the object or objects of enabling Directors of
the Company to acquire benefits by means of acquisition of shares in, or debentures of the
Company or any other body corporate.
Since the end of previous financial year, no Director has received or become entitled to receive
a benefit (other than benefits disclosed as Directors' emoluments in Note 7 to the financial
statements) by reason of a contract made by the Company or a related corporation with the
Director or with a firm of which he is a member, or with a company in which he has a
substantial financial interest.
DIRECTORS' INTERESTS IN SHARES
According to the register of Directors' shareholdings, none of the Directors have direct or
indirect interest in the Company and its related corporations at the end of the financial year.
HOLDING CORPORATION
The Directors regard the Minister of Finance (Incorporated) as the holding corporation.
p.39
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS
Before the income statements and balance sheets were made out, the Directors took reasonable
steps:
(a) to ascertain that proper action had been taken in relation to the writing off of bad debts and
the making of allowance for doubtful debts and satisfied themselves that all known bad debts had
been written off and that adequate allowance had been made for doubtful debts; and
(b) to ensure that any current assets, other than debts, which were unlikely to realise in the
ordinary course of business their values as shown in the accounting records of the Group and
Company have been written down to an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
(a) which would render the amounts written off for bad debts or the amount of the allowance for
doubtful debts in the financial statements of the Group and Company inadequate to any
substantial extent; or
(b) which would render the values attributed to current assets in the financial statements of the
Group and Company misleading; or
(c) which have arisen which render adherence to the existing method of valuation of assets or
liabilities of the Group and Company misleading or inappropriate.
No contingent or other liability has become enforceable or is likely to become enforceable within
the period of twelve months after the end of the financial year which, in the opinion of the
Directors, will or may substantially affect the ability of the Group and Company to meet its
obligations when they fall due.
At the date of this report, there does not exist:
(a) any charge on the assets of the Group and Company which has arisen since the end of the
financial year which secures the liability of any other person; or
(b) any contingent liability of the Group and Company which has arisen since the end of the
financial year.
p.40
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt
with in this report or the financial statements which would render any amount stated in the
financial statements misleading.
In the opinion of the Directors:
(a) the results of the operations of the Group and Company during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature; and
(b) there has not arisen in the interval between the end of the financial year and the date of this
report any item, transaction or event of a material and unusual nature likely to affect
substantially the results of the operations of the Group and Company for the financial year in
which this report is made.
AUDITORS
The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.
Signed on behalf of the Board of Directors in accordance with their resolution dated 28 March
2007.
DATO’ HAJI DUSUKI BIN HAJI AHMAD
CHAIRMAN
HAJI AB. GANI BIN HARON
DIRECTOR
p.41
statement by directors
PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
We, Dato’ Haji Dusuki bin Haji Ahmad and Haji Ab. Gani bin Haron, two of the Directors of
Amanah Raya Berhad, state that, in the opinion of the Directors, the financial statements set
out on pages 45 to 91, are drawn up so as to give a true and fair view of the state of affairs of
the Group and Company as at 31 December 2006 and of the results and cash flows of the Group
and Company for the financial year ended on that date in accordance with MASB Approved
Accounting Standards in Malaysia for Entities Other Than Private Entities and provisions of the
Companies Act 1965.
Signed on behalf of the Board of Directors in accordance with their resolution dated 28 March 2007.
DATO’ HAJI DUSUKI BIN HAJI AHMAD
CHAIRMAN
HAJI AB. GANI BIN HARON
DIRECTOR
Kuala Lumpur
statement declaration
PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
I, Dato’ Ahmad Rodzi bin Pawanteh, the Director primarily responsible for the financial
management of Amanah Raya Berhad, do solemnly and sincerely declare that the financial
statements set out on pages 45 to 91 are, in my opinion, correct and I make this solemn
declaration conscientiously believing the same to be true, and by virtue of the provisions of the
Statutory Declarations Act 1960.
DATO’ AHMAD RODZI BIN PAWANTEH
Subscribed and solemnly declared by the abovenamed Dato’ Ahmad Rodzi bin Pawanteh, at Kuala
Lumpur in Malaysia on 28 March 2007, before me.
COMMISSIONER FOR OATHS
p.42
TO THE MEMBERS OF AMANAH RAYA BERHAD
We have audited the financial statements set out on pages 45 to 91. These financial statements
are the responsibility of the Company's Directors. It is our responsibility to form an independent
opinion, based on our audit, on these financial statements and to report our opinion to you, as a
body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We
do not assume responsibility to any other person for the content of this report.
We conducted our audit in accordance with approved auditing standards in Malaysia. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosure in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by Directors, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a) the financial statements have been prepared in accordance with the provisions of the
Companies Act, 1965, and the MASB Approved Accounting Standards in Malaysia for Entities Other
Than Private Entities so as to give a true and fair view of:
(i) the matters required by Section 169 of the Companies Act, 1965 to be
dealt with in the financial statements; and
(ii) the state of affairs of the Group and Company as at 31 December 2006
and of the results and cash flows of the Group and Company for the financial
year ended on that date;
and
(b) the accounting and other records and the registers required by the Act to be kept by the
Company and by the subsidiaries of which we have acted as auditors have been properly kept in
accordance with the provisions of the Act.
The names of the subsidiaries of which we have not acted as auditors are indicated in Note 13 to
the financial statements. We have considered the financial statements of these subsidiaries and
the auditors’ reports thereon.
We are satisfied that the financial statements of the subsidiaries that have been consolidated
with the Company's financial statements are in form and content appropriate and proper for the
purposes of the preparation of the consolidated financial statements and we have received
satisfactory information and explanations required by us for those purposes.
p.43
TO THE MEMBERS OF AMANAH RAYA BERHAD (Company No. 344986 V) (continued)
The auditors’ reports on the financial statements of the subsidiaries were not subject to any
qualification and did not include any adverse comment made under subsection (3) of Section 174
of the Act.
PRICEWATERHOUSECOOPERS
(No. AF: 1146)
Chartered Accountants
Kuala Lumpur
28 March 2007
p.44
MOHAMMAD FAIZ BIN MOHAMMAD AZMI
(No. 2025/03/08 (J))
Partner of the firm
income statements
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006
Group
Note
Revenue
2006
RM
Company
2005
RM
2006
RM
2005
RM
94,282,837
54,356,137
79,193,540
52,936,384
15,589,860
7,817,320
15,927,712
9,046,120
(20,643,528)
(15,002,726)
(34,354,996)
(23,076,629)
(29,312,598)
(21,195,300)
(21,675,220)
(18,736,242)
Administrative expenses
(5,196,135)
(1,726,399)
(2,030,551)
(1,040,017)
Other operating expenses
(6,810,098)
(5,227,666)
(1,808,362)
(4,183,031)
Financial expenses
(6,727,973)
-
(3,356,468)
-
4
Other operating income
Operating Expenses
Personnel Costs
5
Profit from ordinary activities
before tax
6
41,182,365
19,021,366
31,895,655
14,946,585
Taxation
8
1,784,364
(5,239,682)
4,286,062
(4,548,970)
42,966,729
13,781,684
36,181,717
10,397,615
Net profit after tax
–
Attributable to:
Equity holders of the Company
Minority interest
Earnings per share attributable to
equity holders of the Company
9
41,983,534
983,195
13,004,414
777,270
36,181,717
-
10,397,615
-
42,966,729
13,781,684
36,181,717
10,397,615
699.7
216.7
The accompanying notes on pages 52 to 91 form an integral part of the financial statements.
p.45
balance sheets
AS AT 31 DECEMBER 2006
Group
Company
Note
2006
RM
2005
RM
2006
RM
2005
RM
10
11
12
13
14
15
16
17
19
13,843,034
674,827
25,686,957
69,346,950
2,713,537
444,250
216,374
7,433,660
184,591
126,000
7,631,190
2,713,537
1,425,405
-
9,186,641
32,349,891
126,000
250,796
-
6,653,200
8,649,880
126,000
1,261,293
-
112,925,929
19,514,383
41,913,328
16,690,373
72,507,161
48,961,566
17,331,460
157,698,576
18,677,657
31,171,421
7,182
37,611,974
60,559,381
74,976,137
16,795,821
65,368,656
16,926,132
38,702,135
3,565,464
296,498,763
87,468,234
217,699,995
59,193,731
51,786,037
181,434
102,589
1,510,425
35,579,289
4,854,567
96,994
983,798
13,117,107
181,434
-
9,648,928
4,854,567
647,544
53,580,485
41,514,648
13,298,541
15,151,039
242,918,278
45,953,586
204,401,454
44,042,692
NON CURRENT ASSETS
Property, plant and equipment
Intangible assets
Land held for property development
Investment in subsidiaries
Long-term investments
Financing receivables
Goodwill on consolidation
Deferred tax assets
Receivables
CURRENT ASSETS
Investments
Receivables
Tax recoverable
Deposits, cash and bank balances
18
19
20
LESS: CURRENT LIABILITIES
Other payables and accruals
Post-employment benefit obligations
Hire purchase creditors
Provision for taxation
NET CURRENT ASSETS
p.46
21
22
23
balance sheets (continued)
AS AT 31 DECEMBER 2006 (continued)
Group
Note
NET CURRENT ASSETS
2006
RM
Company
2005
RM
2006
RM
45,953,586
204,401,454
44,042,692
250,000,000
179,986
76,856
282,575
20,869
150,000,000
-
-
250,256,842
303,444
150,000,000
-
105,587,365
65,164,525
96,314,782
60,733,065
6,000,002
98,533,732
6,000,002
57,150,198
6,000,002
90,314,780
6,000,002
54,733,063
104,533,734
63,150,200
96,314,782
60,733,065
1,053,631
2,014,325
-
-
105,587,365
65,164,525
96,314,782
60,733,065
16.86
10.07
242,918,278
2005
RM
LESS: NON CURRENT LIABILITIES
Borrowing
Deferred tax liabilities
CAPITAL AND RESERVE
Share capital
Retained earnings
Minority interest
Total shareholders’ fund
NET TANGIBLE ASSETS
PER SHARE (RM)
24
23
17
25
26
p.47
consolidated statement of changes in equity
Attributable to equity holders
of the company
Share
Capital
RM
At 1 January 2005
Retained
Earnings
RM
Minority
Interest
RM
Total
RM
Total
RM
6,000,002
44,745,784
50,745,786
-
50,745,786
Acquisition of subsidiary
company
-
-
-
1,237,055
1,237,055
Net profit for the financial
year
-
13,004,414
13,004,414
777,270
13,781,684
Dividends paid during the
financial year
-
(600,000)
(600,000)
-
(600,000)
At 31 December 2005
6,000,002
57,150,198
63,150,200
2,014,325
65,164,525
At 1 January 2006
6,000,002
57,150,198
63,150,200
2,014,325
65,164,525
Net profit for the financial
year
-
41,983,534
41,983,534
983,195
42,966,729
Transactions with minority
interest
-
-
-
(1,943,889)
(1,943,889)
Dividends paid during the
financial year
-
(600,000)
(600,000)
-
(600,000)
6,000,002
98,533,732
104,533,734
1,053,631
105,587,365
At 31 December 2006
The accompanying notes on pages 52 to 91 form an integral part of the financial statements
p.48
company statement of changes in equity
Issued and fully paid ordinary
shares of RM1 each
Share Capital
RM
Retained Earnings
RM
Total
RM
Company
At 1 January 2005
6,000,002
44,935,448
50,935,450
Net profit for the financial year
-
10,397,615
10,397,615
Dividends paid during the financial year
-
(600,000)
(600,000)
At 31 December 2005
6,000,002
54,733,063
60,733,065
At 1 January 2006
6,000,002
54,733,063
60,733,065
Net profit for the financial year
-
36,181,717
36,181,717
Dividends paid during the financial year
-
(600,000)
(600,000)
6,000,002
90,314,780
96,314,782
At 31 December 2006
p.49
cash flow statements
Group
2006
RM
2005
RM
2006
RM
2005
RM
41,182,365
19,021,366
31,895,655
14,946,585
-
1,674,685
-
1,674,685
2,331,347
2,878,892
1,972,115
2,651,651
-
1,226,955
-
1,240,921
(Gain)/loss on disposal of property,
plant and equipment
(6,773)
29,375
(6,773)
-
Amortisation of intangible assets
90,175
-
-
-
-
(770,651)
-
-
(1,373,985)
(37,155)
(1,373,985)
(37,155)
3,194,418
-
3,194,418
-
(3,437,263)
(1,971,539)
(2,558,248)
(1,262,540)
-
-
(300,012)
-
(188,103)
(530,570)
(5,132,103)
(2,552,725)
11,388
624,726
11,388
624,726
Gain from disposal of investments
(228,964)
(62,450)
(134,195)
(62,450)
Interest expense on long term borrowings
6,727,973
-
3,356,468
-
17,366
5,223
-
-
Operating profit before working
capital changes
48,319,944
22,088,857
30,924,728
17,223,698
Increase in receivable
(1,080,619)
(15,853,469)
(38,044,154)
(22,970,054)
8,242,162
3,763,061
684,488
5,326,768
Cash generated from operations
55,481,487
9,998,449
(6,434,938)
(419,588)
Retirement benefits paid
(4,673,133)
(406,717)
(4,673,133)
(406,717)
(17,366)
(5,223)
-
-
(14,375,451)
(5,617,219)
(8,909,988)
(4,384,059)
36,415,537
3,969,290
(20,018,059)
(5,210,364)
CASH FLOWS FROM
OPERATING ACTIVITIES
before tax
Adjustments for:
Depreciation on property,
plant and equipment
Property, plant and equipment written off
Gain on disposal of land held
for property development
Net accretion of discount
Write off of investments
Interest income
Write back of impairment of subsidiaries
Dividend income
Allowance for diminution in
alue of investments
Hire purchase interest expense
Increase in payables
Hire purchase interest paid
Tax paid
Net cash inflow/(outflow) from
operating activities
p.50
Company
cash flow statements (continued)
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006 (continued)
Group
Note
CASH FLOWS FROM
OPERATING ACTIVITIES
Acquisition of subsidiary
27
Additional investment in subsidiary
Net purchases of investments
Proceeds from disposal/(purchase) of
land held for property development
2006
RM
2005
RM
-
2006
RM
2005
RM
(3,861,346) -
(5,600,000)
-
-
(23,400,000)
(700,000)
(80,993,318)
(4,305,953)
(45,330,875)
(4,111,453)
-
Purchase of property, plant and
equipment
Company
1,090,302 -
-
(8,198,538)
(2,858,037)
(4,652,437)
(2,644,341)
(765,002)
-
-
-
147,644
39,744
147,644
-
(83,382,900)
(10,000,000)
-
-
Repayment of Syariah financing
3,627,385
509,763
-
-
Interest received
4,292,137
1,682,341
2,520,521
891,937
347,927
405,622
5,578,557
226,753
(164,924,665)
(17,297,564)
(96,994)
(23,366)
-
-
250,000,000
-
150,000,000
-
Interest paid
(5,945,258)
-
(2,442,159)
-
Dividends paid
(2,543,888)
(600,000)
(600,000)
(600,000)
Net cash outflow from financing activities
241,413,860
(623,366)
146,957,841
(600,000)
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS
112,904,732
(13,951,640)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE FINANCIAL YEAR
10,808,636
24,760,276
3,565,464
21,312,932
123,713,368
10,808,636
65,368,656
3,565,464
Purchase of intangible assets
Proceeds from disposal of property,
plant and equipment
Disbursement of Syariah financing
Dividends received
Net cash outflow from investing
activities
(65,136,590) (11,937,104)
CASH FLOWS FROM
FINANCING ACTIVITIES
Repayment of hire purchase creditors
Net drawdown of term loan
CASH AND CASH EQUIVALENTS AT
END OF THE FINANCIAL YEAR
20
61,803,192 (17,747,468)
p.51
notes to the financial statements
31 DECEMBER 2006
1. GENERAL INFORMATION
The principal activities of the Company consist of administrating estates of deceased persons,
acting as trustee for minors, public and unit trust schemes, and the management of trust funds.
The principal activities of the subsidiaries are set out in Note 13 to the financial statements.
The number of employees at year end were 546 (2005: 423) employees in the Group and 446
(2005: 377) employees in the Company respectively.
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and
not listed on Bursa Malaysia Berhad.
The address of the registered office of the Company is Tingkat 15, Wisma AmanahRaya, No. 2,
Jalan Ampang, 50450 Kuala Lumpur.
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s activities expose it to a variety of financial risks, including interest rate risk, market
risk, liquidity and cash flow risk. The Group’s overall financial risk management objective is to
ensure that the Group creates value for its shareholders. The Group focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on financial
performance of the Group. Financial risk management is carried out through risk reviews,
internal control systems and adherence to Group’s financial risk management policies. The Board
regularly reviews these risks and approves the treasury policies, which covers the management of
these risks.
Interest rate risk
Interest rate risk refers to risk that the value of a financial instrument will fluctuate due to
changes in market interest rates. The Group is not exposed to any significant interest rate risk as
the majority of the financial assets and liabilities of the Group are non-interest sensitive, except
for the fixed income investments and deposits which are placed with licensed banks at market
interest rates.
Market risk
Market risk is defined as risk that the value of a financial instrument will fluctuate as a result of
changes in market prices, whether those changes are caused by factors specific to the individual
security of its issuer or factors affecting all securities traded in the market. Market risk exposure
arises from investments in quoted shares as the value of the investments will fluctuate as a result
of changes in equity market prices.
p.52
notes to the financial statements (continued)
31 DECEMBER 2006
2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Credit risk
Credit and counterparty risk is defined as the possibility of losses due to an unexpected default or
due to a deterioration of the counterparty’s credit-worthiness. The Group manages its credit
risks by placing its deposits with major financial institutions in Malaysia with good financial
standing and by requiring guarantors for staff loans.
Liquidity and cash flow risk
Liquidity and cash flow risk relates to risk that an enterprise will encounter difficulty in raising
funds to meet commitments associated with financial instruments. Prudent liquidity risk
management implies maintaining marketable securities and sufficient cash for operation and
ability to close our market positions. The Group aims at mitigating liquidity risk by adopting a
prudent policy in accepting funds and maintaining flexibility in funding by keeping the cash in the
short term money market and marketable securities.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been used consistently in dealing with items that are
considered material in relation to the financial statements. These policies have been
consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
The financial statements of the Group and the Company have been prepared in accordance with
the Financial Reporting Standards, the MASB Approved Accounting Standards in Malaysia for
Entities Other Than Private Entities and the provisions of the Companies Act, 1965. The financial
statements have been prepared under the historical cost convention except as disclosed in the
summary of significant accounting policies.
The preparation of financial statements in conformity with MASB Approved Accounting Standards
in Malaysia for Entities Other Than Private Entities requires the use of certain critical accounting
estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reported period. It also requires Directors
to exercise their judgment in the process of applying the Company’s accounting policies. Although
these estimates and judgment are based on Directors’ best knowledge of current events and
actions, actual results may differ.
Trust assets held in the name of the Company and its predecessor organisation are not included in
these financial statements. The activities and assets of the various unit trusts and other funds in
which the Company is the trustee are not included in these financial statements as they are
separate entities.
p.53
31 DECEMBER 2006
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Basis of preparation (continued)
(i) Standards, amendments to published standards and interpretations that are effective
The new accounting standards, amendments to published standards and IC Interpretations to
existing standards effective for the Group’s and the Company’s financial period beginning on
or after 1 January 2006 are as follows:
•
•
•
•
•
•
•
•
•
•
•
•
FRS
FRS
FRS
FRS
FRS
FRS
FRS
FRS
FRS
FRS
FRS
FRS
3
101
108
110
116
121
127
131
132
136
138
140
Business Combinations
Presentation of Financial Statements
Accounting Policies, Changes in Accounting Estimates and Errors
Events After the Balance Sheet Date
Property, Plant and Equipment
The Effect of Changes in Foreign Exchange Rates
Consolidated and Separate Financial Statements
Interests in Joint Ventures
Financial Instruments: Disclosure and Presentation
Impairment of Assets
Intangible Assets
Investment Property
With the exception of FRS 136 where the Company had classified software as intangible
assets, the adoption of the above new accounting standards, amendments to published
standards and interpretations to existing standards do not have any significant financial
impact on the results of the Group and the Company.
(ii) Standards, amendments to published standards and interpretations to existing standards
that are not yet effective.
The new standards, amendments to published standards and interpretations that are mandatory
for the Group and the Company’s financial periods beginning on or after 1 January 2007 or later
periods, but which the Group and the Company has not early adopted, are as follows:
• FRS 117 Leases (effective for accounting periods beginning on or after 1 October 2006).
This standard requires the classification of leasehold land as prepaid lease payments. The
Group and the Company will apply this standard from financial periods beginning on or
after 1 January 2007.
• FRS 124 Related Party Disclosures (effective for accounting periods beginning on or after 1
October 2006). This standard will affect the identification of related parties and some
other related party disclosures. The Group and the Company will apply this standard from
financial periods beginning on or after 1 January 2007.
p.54
31 DECEMBER 2006
(a) Basis of preparation (continued)
(ii) Standards, amendments to published standards and interpretations to existing standards
that are not yet effective (continued)
• FRS 139 Financial Instruments: Recognition and Measurement (effective date yet to be
determined by Malaysian Accounting Standards Board). This new standard establishes
principles for recognising and measuring financial assets, financial liabilities and some
contracts to buy and sell non-financial items. Hedge accounting is permitted only under
strict circumstances. The Group and the Company will apply this standard when effective.
(b) Subsidiaries
Subsidiaries are those corporations, partnerships or other entities (including special purpose
entities) in which the Group has the power to exercise control over the financial and operating
policies so as to obtain benefits from their activities, generally accompanying a shareholding of
more than half of the voting rights. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when assessing whether the Group controls
another entity.
Investment in subsidiaries are stated at cost less accumulated impairment losses. Where there is
an indication of impairment, the carrying amount of the investment is assessed. A write down is
made if the carrying amount exceeds its recoverable amount.
The consolidated financial statements include the financial statements of the Company and all its
subsidiaries made up to the end of the financial year.
Subsidiaries are consolidated using the purchase method of accounting.
Under the purchase method of accounting, the results of subsidiaries acquired or disposed of
during the year are included from the date of acquisition up to the date of disposal. The cost of
an acquisition is measured as the fair value of the assets given, equity instruments issued and
liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at the acquisition date,
irrespective of the extent of any minority interest. The excess of the cost of acquisition over the
fair value of the Group’s share of the identifiable net assets acquired at the date of acquisition is
reflected as goodwill. If the cost of acquisition is less than the fair value of the net assets of the
subsidiary acquired, the difference is recognised directly in the income statement.
p.55
31 DECEMBER 2006
(b) Subsidiaries (continued)
Minority interest represents that portion of the profit or loss and net assets of a subsidiary
attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by
the parent. It is measured at the minorities’ share of the fair value of the subsidiaries’
identifiable assets and liabilities at the acquisition date and the minorities’ share of changes in
the subsidiaries’ equity since that date.
All material transactions, balances and unrealised gains between group companies are eliminated
and the consolidated financial statements reflect external transactions only. Where necessary,
accounting policies of subsidiaries have been changed to ensure consistency with the policies
adopted by the Group.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and
the Group’s share of its net assets as of the date of disposal including the cumulative amount of
any exchange differences that relate to the subsidiary is recognised in the consolidated income
statement.
(c) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of
the items. Subsequent costs are included in the asset’s carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Group and Company and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged to the income statement during the financial period in which they are
incurred.
Building
Computer equipment
Motor vehicles
Office equipment, furniture and fittings
Renovations
50 years
3 years
5 years
5 to 10 years
3 years or over the lease period
whichever is shorter
Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each
balance date.
Depreciation on assets under construction commences when the assets are ready for their
intended use.
p.56
31 DECEMBER 2006
(c) Property, plant and equipment (continued)
The carrying amounts of property, plant and equipment are reviewed at each balance sheet date
to determine whether there is any indication of impairment. An impairment loss is recognised in
the income statements whenever the carrying amount of an item of property, plant and
equipment exceeds its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and
are included in profit/(loss) from operations.
Repairs and maintenance are charged to the income statement during the period in which they
are incurred. The cost of major renovations is included in the carrying amount of the asset when
it is probable that future economic benefits in excess of the originally assessed standard of
performance of the existing asset will flow to the Group.
(d) Other investment
Investment in golf club membership is shown at cost and an allowance for diminution in value is
made where, in the opinion of the Directors, there is a decline other than temporary in the value
of such investment. Where there has been a decline other than temporary in the value of an
investment, such a decline is recognised as an expense in the financial period in which the
decline is identified.
(e) Investments
The investments are carried at lower of cost and market value. Market value is calculated by
reference to quoted selling prices at the close of business on the balance sheet date.
Increase/decrease in the carrying amounts of investments are credited/charged to the income
statement.
The carrying value of fixed income securities are valued at cost adjusted for amortisation of
premium or accretion of discount over their par values at the time of acquisition on an effective
yield method. The premium or discount is amortised or accreted over the remaining term of the
securities from the date of acquisition.
(f) Receivables
Receivables are carried at anticipated realisable values. Known bad debts are written off in the
period in which they are identified and specific allowance is made for any considered to be
doubtful of collection. An estimate is made for doubtful debts based on a review of all
outstanding amounts at the financial year end.
p.57
31 DECEMBER 2006
(g) Income taxes
Current tax expense is determined according to the tax laws of each jurisdiction in which the
Group operates and includes all taxes based upon the taxable profits.
Deferred tax is recognised in full, using the liability method, on temporary differences arising
between the amounts attributed to assets and liabilities for tax purposes and their carrying
amounts in the financial statements. However, deferred income tax is not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or
loss.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences or unused tax losses can be utilised.
Deferred income tax is recognised on temporary differences arising on investment in subsidiaries
except where the timing of the reversal of the temporary difference can be controlled by the
Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax is determined using tax rates (and tax laws) that have been enacted or
substantially enacted by the balance sheet date and are expected to apply when the related
deferred tax asset is realised or the deferred tax liability is settled.
(h) Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand
and bank balances, demand deposits, bank overdraft and short term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
(i) Hire purchase payables
Assets purchased under hire purchase agreements are capitalised as property, plant and
equipment and depreciated in accordance with the policy set out in Note 3(c) above. The
corresponding obligations due under the hire purchase agreements after deducting finance
charges are included as hire purchase payables while finance charges are charged to the income
statement on a straight line basis over the term of the respective hire purchase agreements.
p.58
31 DECEMBER 2006
(j) Impairment of assets
Property, plant and equipment and other non-current assets (except for amounts due from
subsidiaries, associates and deferred tax assets) are reviewed for impairment losses whenever
events or changes in circumstances (for depreciable non-current assets) indicate that the carrying
amount may not be recoverable. Impairment loss is recognised for the amount by which the
carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s net selling price and value in use.
For the purposes of assessing impairment, the recoverable amount is determined on an identified
asset basis or on the cash generating unit (“CGU”) to which the asset belongs to. An assets
recoverable amount is the higher of an asset’s or CGU’s fair value less cost to sell or its value in
use. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax weighted average cost of capital. Where the carrying amount of an asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
The impairment loss is charged to the income statement unless it reverses a previous revaluation
in which case it is charged to the revaluation surplus. Any subsequent increase in recoverable
amount is recognised in the income statement unless it reverses an impairment loss on a revalued
asset in which case it is taken to revaluation surplus.
Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an
asset other than goodwill is reversed if, and only if, there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised.
The carrying amount of an asset other than goodwill is increased to its revised recoverable
amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of amortisation or depreciation) had no impairment loss been recognised for the
asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognised
in profit or loss, unless the asset is carried at revalued amount, in which case, such reversal is
treated as a revaluation increase.
(k) Intangible assets
(i) Goodwill
Goodwill arises on business combinations when the cost of acquisition exceeds the fair value
of the Company’s share of the identifiable assets, liabilities and contingent liabilities
acquired. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of
an entity include the carrying amount of goodwill relating to the entity sold.
p.59
31 DECEMBER 2006
(k) Intangible assets (continued)
(i) Goodwill (continued)
Goodwill is allocated to cash-generating units (‘CGU’) for the purpose of impairment testing.
Goodwill is tested annually for impairment and carried at cost less accumulated impairment
losses. Impairment testing is performed annually and it is done by comparing the present
value of the CGU’s projected cash flows against the carrying amount of its net assets which
include the allocated goodwill. The allocation is made to those cash-generating units or
groups of cash-generating units that are expected to benefit from the synergies of the
business combination in which the goodwill arose. The Group and the Company allocates
goodwill to each business units (Note 16).
(ii) Other intangible assets
Acquired computer software licences are capitalised on the basis of the costs incurred to
acquire and bring to use the specific software.
Intangible assets that have an indefinite useful life, or are not yet ready for use, are tested
for impairment annually. This impairment test may be performed at any time during the year,
provided it is performed at the same time every year. An intangible asset recognised during
the current period is tested before the end of the current year.
(l) Financial instruments
(i) Description
A financial instrument is any contract that gives rise to both a financial asset of one
enterprise and a financial liability or equity instrument of another enterprise.
A financial asset is any asset that is cash, a contractual right to receive cash or another
financial asset from another enterprise, a contractual right to exchange financial instruments
with another enterprise under conditions that are potentially favourable, or an equity
instrument of another enterprise.
A financial liability is any liability that is a contractual obligation to deliver cash or another
financial asset to another enterprise, or the exchange of financial instruments with another
enterprise under conditions that are potentially unfavourable.
(ii) Financial instruments recognised on the balance sheet
The particular recognition adopted for financial instruments recognised on the balance sheet
is disclosed in the individual policy statements associated with each item.
p.60
31 DECEMBER 2006
(l) Financial instruments (continued)
(iii) Fair value estimation for disclosure purposes
The fair values, less any estimated credit adjustments for financial assets and liabilities with
a maturity of more than one year are estimated using a variety of methods and assumptions
that are based on market conditions existing at each balance sheet date. Other techniques,
such as estimated discounted value of future cash flows, are used where possible, to
determine the fair value for the remaining financial instruments. In particular, the fair value
of financial liabilities is estimated by discounting the future cash flows at the current market
interest rate available to the Group for similar financial instruments.
The face values of financial assets (less any estimated credit adjustments) and financial
liabilities with a maturity period of less than one year are assumed to approximate their fair
values.
(m) Employee benefits
(i) Short term employee benefits
Wages, salaries, paid annual leave and sick leave, bonuses, and non-monetary benefits are
accrued in the financial year in which the associated services are rendered by employees of
the Group.
(ii) Defined contribution plans
The Group’s contributions to defined contribution plans are charged to the income statement
in the period to which they relate. Once the contributions have been paid, the Group has no
further payment obligations.
(iii) Defined benefit plans
The liability in respect of a defined benefit plan is the present value of the defined benefit
obligation at the balance sheet date minus the fair value of plan assets, together with
adjustments for actuarial gains/losses and past service cost. The Group determines the
present value of the defined benefit obligation and the fair value of any plan assets with
sufficient regularity such that the amounts recognised in the financial statements do not
differ materially from the amounts that would be determined at the balance sheet date.
The defined benefit obligation, calculated using the projected unit credit method, is
determined by independent actuaries, considering the estimated future cash outflows using
market yields at balance sheet date of government securities which have currency and terms
to maturity approximating the terms of the related liability.
p.61
31 DECEMBER 2006
(n) Revenue recognition
Revenue is recognised upon performance of services and net of service taxes, and after
eliminating sales within the Group.
Interest income from fixed income securities are recognised on an accrual basis.
Dividends from quoted investments are recognised on the ex-dividend date.
Realised gain and loss on sale of quoted investments is arrived at after accounting for cost of
investments, determined on the weighted average cost method.
Realised gain and loss on sale of fixed income securities is measured by the difference between
the net disposal proceeds and the carrying amounts of the investments.
(o) Dividends
Dividends on ordinary shares are recognised as liabilities when proposed or declared before the
balance sheet date. A dividend proposed or declared after the balance sheet date, but before
the financial statements are authorised for issue, is not recognised as a liability at the balance
sheet date.
4. REVENUE
Group
2006
RM
2005
RM
2006
RM
2005
RM
Revenue from:
- trust operation
- unit trust operation
- estate and administration operation
- legal operation
25,615,547
10,339,751
10,257,133
1,038,490
18,584,326
8,229,496
10,062,562
392,939
25,615,547
10,322,259
10,257,133
1,038,490
18,584,326
8,229,496
10,062,562
392,939
Management fee
33,517,210
16,212,831
31,960,111
15,667,061
-
770,651
-
-
Financing income
6,159,673
-
-
-
Custodian fee
1,846,103
57,019
-
-
Building management fee
5,508,930
46,313
-
-
94,282,837
54,356,137
79,193,540
52,936,384
Gain on disposal of land held for
property development
p.62
Company
31 DECEMBER 2006
5. PERSONNEL COSTS
Group
Salaries, wages and bonuses
Pension costs - defined contribution plan
Pension costs - defined benefit plans
Other staff related costs
Company
2006
RM
2005
RM
2006
RM
2005
RM
19,792,180
3,051,821
6,468,597
14,810,066
2,024,106
1,674,685
2,686,443
13,309,385
2,176,361
6,189,474
12,834,734
1,761,768
1,674,685
2,465,055
29,312,598
21,195,300
21,675,220
18,736,242
Details of the defined benefit plan of the Group and Company are set out in Note 22.
6. PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX
Group
2006
RM
Company
2005
RM
2006
RM
2005
RM
Directors’ remuneration (Note 7)
Auditors' remuneration:
- statutory audit
- limited review
1,026,920
1,028,041
901,970
985,941
80,000
35,000
60,500
30,000
80,000
35,000
55,000
30,000
Depreciation
2,331,347
2,878,892
1,972,115
2,651,651
90,175
-
-
-
-
1,226,955
-
1,240,921
(6,733)
29,735
(6,773)
-
116,233
-
-
-
(Gain)/loss from sale of investments
(228,964)
(62,450)
(134,195)
(62,450)
Write-off of investments
3,194,418
-
3,194,418
-
11,388
624,726
11,388
624,726
Dividend income
- subsidiaries
- investments
(188,103)
(530,570)
(4,944,000)
(188,103)
(2,519,292)
(504,304)
Rental on premises
5,464,592
4,244,008
5,137,850
3,962,124
-
-
(300,012)
-
Interest income
(3,437,263)
(1,971,539)
(2,558,248)
(1,262,540)
Accretion of discount net amortisation
of premium
(1,373,985)
(37,155)
(1,373,985)
(37,155)
(716,763)
(198,000)
-
-
Amortisation on intangible asset
Property, plant and equipment written off
(Gain)/Loss on disposal of property,
plant and equipment
Loss on foreign exchange
Allowance for diminution in value
of investments
Reversal of impairment loss on subsidiaries
Rental income
p.63
31 DECEMBER 2006
7. DIRECTORS’ REMUNERATION
The aggregate amount of emoluments receivable by Directors of the Company during the year are
as follows:
Group
Directors remuneration:
- fees
- other emoluments
Company
2006
RM
2005
RM
2006
RM
2005
RM
333,250
693,670
207,100
820,941
225,300
676,670
165,000
820,941
1,026,920
1,028,041
901,970
985,941
5,461,649
(8,283,155)
5,592,432
461,254
3,090,959
(8,387,518)
4,810,739
461,254
1,037,142
(352,750)
1,010,497
(261,769)
-
(461,254)
-
(461,254)
(1,784,364)
5,239,682
(4,286,062)
4,548,970
8. TAX
Malaysian income tax:
- current year
- (over) / under accruals in prior years
Deferred tax (Note 17)
- current year
- under recognition of deferred tax
assets in prior year
The explanation of the relationship between tax expense and profit from ordinary activities
before tax is as follows:
p.64
Profit from ordinary activities before tax
41,182,365
19,021,366
31,895,655
14,946,589
Tax calculated at the Malaysian
statutory tax rate of 28% (2005: 28%)
11,531,062
5,325,982
8,930,783
4,185,045
(1,287,974)
3,389,157
(8,063,380)
856,746
(832,146)
3,233,678
(8,060,481)
910,832
(546,907)
(7,823)
-
(2,524)
-
Tax effects of:
- effect on differences in tax rate
- expenses not deductible for tax purposes
- income not subject to tax
- effect on change in tax rate applicable
to deferred tax
- utilisation of previously unrecognised
tax losses
- current year’s tax loss and unutilised
capital allowance not recognised
- net over accrual in prior years
-
(110,900)
-
-
937,749
(8,283,155)
-
(8,387,518)
-
Tax expense
(1,784,364)
5,239,682
(4,286,062)
4,548,970
31 DECEMBER 2006
8. TAX (continued)
During the financial year, the Company obtained approval from the Ministry of Finance for
management fees earned from Kumpulan Wang Bersama to be tax exempted for a period of 16
years from 1 January 1996 to 31 December 2010. As a result, tax submissions for prior years will
be revised, giving rise to a recovery of overpayment of tax in prior years amounting to
approximately RM7.98 million.
9. EARNINGS PER SHARE
The earnings per share for the Group has been calculated based on the net profit attributable to
the equity holders of the Company of RM41,983,534 (2005: RM13,004,414) by the weighted
average number of ordinary shares in issue during the financial year of 6,000,002 (2005:
6,000,002).
p.65
31 DECEMBER 2006
10. PROPERTY, PLANT AND EQUIPMENT
Group
Net book value
At 1 January
2006
Additions
Write-offs and
disposals
Reclassification
Depreciation
charge
Computer
Equipment
Motor
Vehicles
RM
RM
RM
RM
Renovations
Assets under
Constructions
Total
RM
RM
RM
1,281,038
3,258,828
-
1,150,050
1,612,837
(4,111)
772,243
489,643
(137,607)
2,254,533
1,164,753
(5,926)
-
-
-
-
(36,863)
(921,128)
(304,008)
(459,766)
(609,582)
4,503,003
1,837,648
820,271
2,953,594
2,765,497
963,021
13,843,034
At 31 December
2006
Cost
Accumulated
depreciation
4,595,688
10,304,442
1,511,778
5,069,475
6,220,926
963,021
28,665,330
Net book value
4,503,003
1,837,648
820,271
2,953,594
2,765,497
963,021
13,843,034
At 31 December
2005
Cost
Accumulated
depreciation
1,336,860
8,676,226
1,381,912
3,931,553
3,759,362
1,101,120
20,187,033
Net book value
1,281,038
At 31 December
2006
p.66
Land and
Building
Office
Equipment,
furniture
& Fittings
(92,685) (8,466,794)
(55,822) (7,526,176)
1,150,050
874,676
741,658
-
1,101,120
1,620,646
-
7,433,660
8,888,365
(147,644)
1,758,745 (1,758,745)
-
(691,507) (2,115,881) (3,455,429)
(609,669) (1,677,020) (2,884,686)
772,243
2,254,533
874,676
- (2,331,347)
- (14,822,296)
- (12,753,373)
1,101,120
7,433,660
31 DECEMBER 2006
10. PROPERTY, PLANT AND EQUIPMENT (continued)
Company
Net book value
At 1 January
2006
Additions
Write-offs and
disposals
Reclassification
Depreciation
charge
Land and
Building
Computer
Equipment
Motor
Vehicles
Office
Equipment,
furniture
& Fittings
RM
RM
RM
RM
Renovations
Assets under
Constructions
Total
RM
RM
RM
1,281,038
-
961,519
865,859
235,117
327,960
2,199,730
1,098,098
-
(4,111)
-
(137,607)
-
(5,926)
-
(26,737)
(792,640)
(110,095)
(433,086)
(609,557)
1,254,301
1,030,627
315,375
2,858,816
2,764,501
963,021
9,186,641
At 31 December
2006
Cost
Accumulated
depreciation
1,336,860
9,073,309
451,893
4,862,176
6,219,906
963,021
22,907,165
Net book value
1,254,301
1,030,627
At 31 December
2005
Cost
Accumulated
depreciation
1,336,860
8,212,172
Net book value
1,281,038
At 31 December
2006
(82,559) (8,042,682)
(55,822) (7,250,653)
961,519
874,676
740,637
1,101,120
1,620,646
6,653,200
4,653,200
1,758,745 (1,758,745)
(147,644)
-
(136,518) (2,003,360) (3,455,405)
315,375
483,711
2,858,816
3,770,811
2,764,501
3,759,362
(248,594) (1,571,081) (2,884,686)
235,117
2,199,730
874,676
- (1,972,115)
- (13,720,524)
963,021
9,186,641
1,101,120
18,664,036
- (12,010,836)
1,101,120
6,653,200
p.67
31 DECEMBER 2006
11. INTANGIBLE ASSETS
Group
2006
RM
2005
RM
Computer software
Net book value
As at 1 January
Additions during the financial year
Disposals during the financial year
Amortisation for the financial year
765,002
(90,175)
-
As at 31 December
674,827
-
Cost
Accumulated amortisation
765,002
(90,175)
-
Net book value
674,827
-
-
184,591
At 31 December
12. LAND HELD FOR PROPERTY DEVELOPMENT
As cost:
Freehold land
13. INVESTMENT IN SUBSIDIARIES
Company
2006
RM
Unquoted shares, at cost
Accumulated impairment losses
p.68
2005
RM
32,349,891
-
8,949,892
(300,012)
32,349,891
8,649,880
31 DECEMBER 2006
13. INVESTMENT IN SUBSIDIARIES (continued)
(a) During the financial year, the Company incorporated two new subsidiaries, Amanah Raya Investment
Bank Ltd and Amanah Raya Asset Management (Labuan) Ltd, with paid up capital of RM10,000,000 and
RM500,000 respectively on 5 December 2006 and 26 December 2006.
(b) On 26 July 2006 and 28 December 2006 respectively, the Company subscribed for 7,900,000 and
5,000,000 ordinary shares in Amanah Raya Unit Trust Management Sdn. Bhd. (formerly known as
Amanah Raya Asset Management Sdn. Bhd.) for RM12,900,000.
Details of the subsidiaries, all of which are incorporated in Malaysia, are as follows:
Group’s
effective interest
Principal activities
2006
%
2005
%
Amanah Raya Nominees
(Tempatan) Sdn Bhd #
100
100
Nominees, agents or trustees
for beneficial owners of stocks,
shares, bank debentures, loan
stocks and other securities
AmanahRaya Development Sdn
Bhd (formerly known as ARB
Hartanah Sdn Bhd) #
100
100
Property development and
investment holding
Amanah Raya Unit Trust
Management Sdn Bhd (formerly
known as Amanah Raya Asset
Management Sdn Bhd) #
100
100
Establishment and management
of unit trust funds.
Amanah Raya Capital Sdn Bhd #
100
100
Finance and consumer credit
Amanah Raya (Labuan) Ltd #
100
100
Custodian and trust services
(Offshore Company)
AmanahRaya – JMF Asset
Management Sdn Bhd #
70
70
Fund management and related
services
AmanahRaya Investment Bank Ltd *
100
-
Amanah Raya Nominees
(Asing) Sdn Bhd #
100
100
Dormant
AmanahRaya Asset Management
(Labuan) Ltd *
100
-
Dormant
Subsidiaries held directly
by the Company
Investment banking
p.69
31 DECEMBER 2006
13. INVESTMENT IN SUBSIDIARIES (continued)
Group’s
effective interest
Principal activities
2006
%
2005
%
AmanahRaya – JMF Nominees
Tempatan Sdn. Bhd. #
100
100
Provision of nominees services
to local custodian clients
AmanahRaya – JMF Capital
Sdn. Bhd. #
100
100
Provision of management
consultancy, advisory and
corporate financial services
AmanahRaya – JMF Margin
Sdn. Bhd. #
100
100
Dormant
Subsidiaries held indirectly
by the Company
* Audited by PricewaterhouseCoopers, Malaysia.
# Audited by firms other than PricewaterhouseCoopers, Malaysia and its affiliates.
14. LONG TERM INVESTMENTS
Group
2006
RM
Investment in project development
Golf club membership, at cost
Company
2005
RM
2006
RM
2005
RM
25,560,957
126,000
126,000
126,000
126,000
25,686,957
126,000
126,000
126,000
15. FINANCING RECEIVABLES
Group
The balances can be analysed as follows:
Gross amount receivables
Less: Unearned income
Amount repayable within 12 months (Note 19)
Amount repayable after 12 months
p.70
2006
RM
2005
RM
118,212,908
(28,967,156)
11,806,666
(2,316,429)
89,245,752
9,490,237
19,898,802
69,346,950
1,859,047
7,631,190
89,245,752
9,490,237
31 DECEMBER 2006
16. GOODWILL ON CONSOLIDATION
Group
2006
RM
At 1 January
2,713,537
-
-
2,713,537
2,713,537
2,713,537
Acquisition of AmanahRaya - JMF Asset Management
Sdn. Bhd. (‘ARJMF’)
At 31 December
2005
RM
Impairment test for goodwill
During 2006, impairment testing was performed on goodwill arising from the acquisition of ARJMF. The
recoverable amount of ARJMF (for goodwill arising from business combination prior to 2006) is
determined based on value-in-use calculations. These calculations use pre-tax cash flow projections
based on the 2007 financial budgets approved by management, projected for 5 years based on 10.0%
growth rate. The cash flow projection after the fifth year are extrapolated in perpetuity using a
nominal long-term growth rate of 5.7% per annum which takes into consideration the current GDP and
inflation. The discount rate used is 5.7% which reflects the specific risks relating to the ARJMF.
Impairment will only arise if the discount rate increases to 94.1%.
17. DEFERRED TAX
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority.
The following amounts, determined after appropriate offsetting, are shown in the balance sheet:
Group
2006
RM
Deferred tax assets
Deferred tax liabilities
Company
2005
RM
2006
RM
2005
RM
444,250
(76,856)
1,425,405
(20,869)
250,796
-
1,261,293
-
367,394
1,404,536
250,796
1,261,293
p.71
31 DECEMBER 2006
17. DEFERRED TAX (continued)
Group
2006
RM
Company
2005
RM
2006
RM
2005
RM
Movement in deferred tax:
As at 1 January
(Charged)/credited to income statement:
- property, plant and equipment
- post employment benefit
- allowance for diminution in value on
investments
- net accretion of discounts
- trade and other payables
- others
1,404,536
590,532
1,261,293
538,270
211,879
(1,310,292)
57,188
355,031
311,682
(1,310,292)
69,273
355,031
(91,953)
(111,870)
248,589
16,505
258,563
(71,844)
215,066
(91,953)
(111,870)
195,936
(4,000)
258,563
(71,844)
112,000
(1,037,142)
814,004
(1,010,497)
723,023
367,394
1,404,536
250,796
1,261,293
48,987
1,359,279
48,987
1,359,279
300,739
610,714
206,548
392,692
183,790
295,395
300,739
379,725
108,000
392,692
183,790
112,000
1,166,988
(722,738)
2,231,156
(805,751)
837,451
(586,655)
2,047,761
(786,468)
444,250
1,425,405
250,796
1,261,293
- net accretion of discounts
- others
(609,682)
(111,869)
(78,043)
(826,620)
-
(474,786)
(111,869)
-
(786,468)
-
Before offsetting
Offsetting
(799,594)
722,738
(826,620)
805,751
(586,655)
586,655
(786,468)
786,468
(76,856)
(20,869)
-
-
As at 31 December
Components of deferred tax assets:
- post employment benefits
- allowance for diminution in value on
investments
- trade and other payables
- others
Before offsetting
Offsetting
After offsetting
Components of deferred tax liabilities
After offsetting
p.72
31 DECEMBER 2006
17. DEFERRED TAX (continued)
The amount of deductible temporary differences and unused tax losses (both of which have no expiry date)
in respect of subsidiaries for which no deferred tax is recognised in the balance sheet are as follows:
Group
2006
RM
Unabsorbed tax losses
Unutilised capital allowances
Deductible temporary differences
2005
RM
3,419,355
67,620
9,869
13,335
-
3,496,844
13,355
18. INVESTMENTS
Group
2006
RM
Investments
Investments
Investments
Investments
in
in
in
in
quoted shares
fixed income securities
institutional trust
unit trust
Net accretion of discount/
(amortisation of premium)
Company
2005
RM
2006
RM
2005
RM
487,015
57,243,187
11,947,780
2,433,099
410,473
8,705,050
9,580,386
-
487,015
57,243,187
2,433,099
410,473
8,705,050
7,828,861
-
72,111,081
18,695,909
60,163,301
16,944,384
396,080
(18,252)
396,080
(18,252)
72,507,161
18,677,657
60,559,381
16,926,132
23,339,739
(400,000)
20,769,808
(400,000)
19,147,390
(400,000)
19,398,010
(400,000)
22,939,739
19,898,802
565,450
718,202
524,807
4,314,566
20,369,808
1,859,047
2,663,129
840,394
438,098
5,000,945
18,747,390
51,081,975
400,296
585,446
475,825
3,685,205
18,998,010
12,093,092
2,562,328
559,849
438,098
4,050,758
48,961,566
31,171,421
74,976,137
38,702,135
216,374
-
-
-
19. RECEIVABLES
Current
Trade receivables
Less: Allowance for trade receivables
Amounts receivable from subsidiaries
Financing receivables(Note 15)
Deposits
Staff loans and advances
Interest receivable
Other receivables
Non-current
Deposit with Securities Commission
All receivables are denominated in Ringgit Malaysia
p.73
31 DECEMBER 2006
19. RECEIVABLES (continued)
Staff loans and advances are analysed as follows:
Group
2006
RM
Company
2005
RM
2006
RM
2005
RM
At 1 January
Loans disbursed
Repayments
840,394
577,206
(699,398)
967,510
400,202
(527,318)
559,849
551,613
(526,016)
714,510
204,002
(358,663)
At 31 December
718,202
840,394
585,446
559,849
135,659,040
8,837,839
13,201,697
31,377,701
4,160,593
2,073,680
57,067,500
7,847,007
454,149
3,502,331
63,133
157,698,576
37,611,974
65,368,656
3,565,464
Amount held in trust
(33,985,208)
(26,803,338)
-
-
Cash and cash equivalents
123,713,368
10,808,636
65,368,656
3,565,464
20. CASH AND CASH EQUIVALENTS
Deposits with:
- Licensed banks
- Other financial institutions
Cash and bank balances
The currency exposure profile of cash and cash equivalents is as follows:
- RM
- USD
113,213,368
10,500,000
37,611,974
-
65,368,656
-
3,565,464
-
123,713,368
37,611,974
65,368,656
3,565,464
103,503
5,474,942
6,458,453
39,749,139
12,246
2,879,513
2,755,759
29,931,771
103,503
5,164,842
3,554,887
4,293,875
1,826,524
12,246
2,838,191
2,037,334
2,934,633
51,786,037
35,579,289
13,117,107
9,648,928
21. OTHER PAYABLES AND ACCRUALS
Amount due to subsidiaries
Service tax payables
Payroll liabilities
Accrued expenses
Other payables
p.74
31 DECEMBER 2006
21. OTHER PAYABLES AND ACCRUALS (continued)
Included in the Group’s other payables are amounts owing to certain unit trusts amounting to
RM33,985,208 (2005: RM26,803,338) in respect of dividend income received on behalf of these unit
trusts.
22. POST-EMPLOYMENT BENEFIT OBLIGATIONS
Group and Company
The balances can be analysed as follows:
Lump-sum retirement benefit plan
Current
2006
RM
181,434
2005
RM
4,854,567
(a) Defined contribution plan
Group companies incorporated in Malaysia contribute to the Employees Provident Fund, the national
defined contribution plan. Once the contributions have been paid, the Group has no further payment
obligations.
(b) Defined benefit plan
The Group operated an unapproved and unfunded final salary defined benefit plan for its employees.
This plan was valued by an independent actuary every three years using the projected unit credit
method. The last actuarial valuation was carried out as at 30 September 2004. An unrecognised
transitional liability was identified in the 30 September 2002 actuarial valuation. This was being
amortised over five years as allowed under FRS 119.
The movements during the period in which the amount recognised in the balance sheet in respect of the
Group and the Company’s lump sum retirement benefit plan are as follows:
Group and Company
2006
RM
At start of the financial year
Charged to income statement
Contributions paid
At end of the financial year
2005
RM
4,854,567
(4,673,133)
3,586,599
1,674,685
(406,717)
181,434
4,854,567
During the financial year 2005, the Company had terminated the defined benefit retirement plan. As at
31 December 2006, the retirement benefit accrued represents actual amount payable by the Company.
p.75
31 DECEMBER 2006
23. HIRE PURCHASE CREDITORS
Group
2006
RM
Amount payable within 12 months
Amount repayable after 12 months
Hire purchase payable
Interest in suspense
2005
RM
102,589
179,986
96,994
282,575
282,575
379,569
303,010
(20,435)
417,370
(37,801)
282,575
379,569
24. BORROWING
Group
2006
RM
Company
2005
RM
2006
RM
2005
RM
Unsecured
Term loan
250,000,000
-
150,000,000
-
The borrowings by the Group and the Company amounting to RM250,000,000 and RM150,000,000 respectively
(2005: NIL) bear monthly interest at 5.5% per annum. Principal amount is repayable at the end of the loan
tenure of up to a maximum of 10 years from the date of the first drawdown.
25. SHARE CAPITAL
Group and Company
31.12.2006
Authorised:
31.12.2005
Number
of Shares
RM
Number
of Shares
RM
10,000,000
10,000,000
10,000,000
10,000,000
6,000,002
6,000,002
6,000,002
6,000,002
Ordinary shares of RM1 each:
At start and end of year
Issued and fully paid:
Ordinary shares of RM1 each
At start and end of year
p.76
31 DECEMBER 2006
26. RETAINED EARNINGS
The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 and tax exempt
income under Section 12 of the Income Tax (Amendment) Act 1999, to frank the payment of dividends
out of all its retained profits as at 31 December 2006.
27. ACQUISITION OF SUBSIDIARY IN PRIOR YEAR
(a) Acquisition of AmanahRaya-JMF Asset Management Sdn. Bhd. (“ARJMF”) (formerly known as JMF
Asset Management Sdn. Bhd.)
The Company completed the acquisition of 70% equity interest in ARJMF representing 1,400,000 ordinary
shares in ARJMF on 30 September 2005.
The effect of the acquisition on the financial results of the Group at financial year ended 31 December
2005 were as follows:
Year ended 2005
RM
Revenue
Other operating income
Operating expenses
Personnel costs
Other operating expenses
4,796,947
115,024
(99,927)
(733,807)
(742,360)
3,335,877
Tax
(744,607)
Profit after taxation
2,591,270
The effect on the acquisition on the financial position at financial year ended 31 December 2005
were as follows:
2005
RM
Receivables
Tax recoverable
Payables
Deferred tax liability
731,070
3,766,415
3,193,085
7,182
(3,546,019)
(282,575)
(16,369)
3,852,789
p.77
31 DECEMBER 2006
27. ACQUISITION OF SUBSIDIARY IN PRIOR YEAR (continued)
(a) Acquisition of AmanahRaya-JMF Asset Management Sdn. Bhd. (“ARJMF”) (formerly known as JMF Asset
Management Sdn. Bhd.) (Continued)
Details of net assets acquired and cash flows arising from the acquisition are as follows:
At date of
acquisition
RM
Deferred tax asset
Receivables
Investments
Deposits with licensed banks
Payables
790,248
58,238
816,278
1,557,025
63,742
1,674,912
(433,989)
(402,935)
4,123,519
Minority interest
(1,237,056)
2,886,463
Goodwill
2,713,537
5,600,000
Less: Cash and cash equivalent of subsidiary acquired
Net cash outflow on acquisition
p.78
(1,738,654)
3,861,346
31 DECEMBER 2006
28. SIGNIFICANT RELATED PARTY TRANSACTIONS
The Directors are of the opinion that all the related party transactions had been entered into in the
normal course of business and had been established on terms and conditions that were not materially
different from that obtainable in transaction with unrelated parties.
Company
Significant related party transactions
2006
RM
Amanah Raya Unit Trust Unit Trust Management Sdn Bhd
(formerly known as Amanah Raya Asset Management Sdn Bhd)
- Management fees paid and payable
2005
RM
-
3,097,443
Amanah Raya (Labuan) Ltd
- Interest received and receivable
(476,330)
-
Amanah Raya Nominees (Tempatan) Sdn Bhd
- Nominee fees paid and payable
- Custodian and back room fees paid and payable
480,000
1,276,316
480,000
524,187
Amanah Raya-JMF Management Sdn Bhd
- Management and arrangement fee paid and payable
- Commission paid and payable
9,378,617
625,825
4,614,310
-
Amanah Raya Capital Sdn Bhd
- Commission paid and payable
- Interest received and receivable on loan disbursed
2,744,914
(236,835)
-
AmanahRaya Development Sdn Bhd
(formerly known as ARB Hartanah Sdn Bhd)
- Renovation works carried out
- Cleaning services payable
- Archiving services payable
- Interest receivable on loan disbursed
30,680
14,475
20,634
(240,455)
731,407
34,000
23,881
(30,774)
Related party balances
The related party balances are shown in Note 19 and 21 to the financial statements.
p.79
31 DECEMBER 2006
29. CAPITAL COMMITMENTS
Group and Company
Capital expenditure not provided for in the
financial statements are as follows:
2006
RM
2005
RM
Authorised by the Directors but not contracted for
588,505
2,441,786
Analysed as follows:
- intangible assets
588,505
-
472,563
1,969,223
588,505
2,441,786
30. NON-CANCELLABLE OPERATING LEASE COMMITMENTS
Group
Future minimum lease payment
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
p.80
2006
RM
2005
RM
4,247,096
13,353,735
370
4,536,276
15,194,371
1,839,795
17,601,201
21,570,442
31 DECEMBER 2006
31. INTEREST RATE RISK
The following tables provide information about financial assets and liabilities showing the weighted
average effective interest rate and the earlier of the contractual repricing or maturity date for each
class of interest-sensitive instrument in the balance sheet.
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
Group
2006
Financial assets:
Investments in quoted shares
Investments in fixed income securities 52,616,098
Investments in institutional trust
Investments in unit trust
Receivables
20,177,099
144,496,880
5,023,169
336,153
-
8,322
-
487,015
487,015
- 57,639,267
11,947,780 11,947,780
2,433,099
2,433,099
28,439,992 48,961,566
13,201,696 157,698,576
217,290,077
5,359,322
8,322
56,509,582 279,167,303
Other assets
130,257,389
Total assets per balance sheet
409,424,692
p.81
31 DECEMBER 2006
31. INTEREST RATE RISK (continued)
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
Group
2006
Financial liabilities:
Payables
Long term liabilities
Other liabilities
Total liabilities per balance sheet
p.82
102,589
-
179,986
- 250,000,000
51,786,037 51,786,037
282,575
181,434
181,434
- 250,000,000
102,589
179,986 250,000,000
51,967,471 302,250,046
1,587,281
303,837,327
31 DECEMBER 2006
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
Group
2005
Financial assets:
Investments in fixed income securities
Receivables
Other assets
3,656,000
345,810
35,538,294
5,030,798
493,873
-
711
-
410,473
9,580,386
28,438,881
2,073,680
410,473
8,686,798
9,580,386
29,279,275
37,611,974
39,540,104
5,524,671
711
40,503,420
85,568,906
21,413,711
106,982,617
p.83
31 DECEMBER 2006
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
Group
2005
Payables
Other liabilities
p.84
96,994
-
282,575
-
-
35,579,289
4,854,567
35,579,289
379,569
4,854,567
96,994
282,575
-
40,433,856
40,813,425
1,004,667
41,818,092
31 DECEMBER 2006
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
487,015
57,639,267
2,433,099
74,976,137
65,368,656
Company
2006
Financial assets:
Investments in unit trust
Receivables
Other assets
52,616,098
148,184
64,914,507
5,023,169
336,153
-
8,322
-
487,015
2,433,099
74,483,478
454,149
117,678,789
5,359,322
8,322
77,857,741 200,904,174
58,709,149
259,613,323
p.85
31 DECEMBER 2006
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
Company
2006
Payables
Long term liabilities
Other liabilities
p.86
-
- 150,000,000
13,117,107 13,117,107
181,434
181,434
- 150,000,000
-
- 150,000,000
13,298,546 163,298,541
163,298,541
31 DECEMBER 2006
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
3,656,000
855,255
3,502,331
5,030,798
10,348,883
-
711
-
410,473
7,828,861
27,464,187
63,133
410,473
8,686,798
7,828,861
38,669,036
3,565,464
8,013,586
15,379,681
711
35,766,654
59,160,632
Company
2005
Financial assets:
Receivables
Other assets
16,723,472
75,884,104
p.87
31 DECEMBER 2006
Less than
1 year
1–5
years
Over 5
years
Non-interest
bearing
Total
RM
RM
RM
RM
RM
Company
2005
Payables
Other liabilities
p.88
-
-
-
9,648,928
4,854,567
9,648,928
4,854,567
-
-
-
14,503,495
14,503,495
647,544
15,151,039
31 DECEMBER 2006
The effective interest rate of the Group and of the Company’s financial assets and financial liabilities as at
the balance sheet dates are as follows:
Group
2006
%
Company
2005
%
2006
%
2005
%
Financial assets
Fixed income securities
Deposits with licensed banks
Amount due from subsidiaries
7.8
6.7
3.8
4.0
6.3
6.6
2.6
4.0
6.7
3.7
5.5
4.0
6.6
2.3
5.0
4.0
Financial liabilities
Long term borrowings
5.5
5.4
5.4
5.5
-
-
32. CREDIT RISK
The following tables set out the credit risk concentrations and counter parties of the Group and Company.
Group
Finance and
business
services
Property,
infrastructure
and utilities
companies
Purchase of
transport
and vehicles
Others
RM
RM
RM
RM
2006
Institutional trust
Unit trust
Trade receivables
Interest receivables
Other receivables
52,616,098
-
5,023,169
-
-
477,870
46,937
3,561,270
157,698,576
-
406,522
-
11,947,780
2,433,099
22,939,739
311,680
1,318,746
-
214,353,814
5,070,106
406,522
38,951,044
p.89
31 DECEMBER 2006
32. CREDIT RISK (continued)
2005
Institutional trust
Trade receivables
Interest receivables
Other receivables
Finance and
business
services
Property,
infrastructure
and utilities
companies
Purchase of
transport
and vehicles
Others
RM
RM
RM
RM
290,867
3,287,540
37,611,974
8,686,798
147,231
-
433,302
-
9,580,386
20,369,808
407,092
1,680,306
-
41,190,381
8,834,029
433,302
32,037,592
52,616,098
428,888
2,931,908
65,368,656
5,023,169
46,937
-
406,522
-
2,433,099
18,747,390
178,924
1,123,570
-
121,345,550
5,070,106
406,522
22,482,983
290,867
3,287,540
3,565,464
8,686,798
147,231
-
433,302
-
7,828,681
18,998,010
126,547
730,119
-
7,143,871
8,834,029
433,302
27,683,357
Company
2006
Unit trust
Trade receivables
Interest receivable
Other receivables
2005
Institutional trust
Trade receivables
Interest receivable
Other receivables
p.90
31 DECEMBER 2006
33. FAIR VALUES
The carrying amounts of financial assets and liabilities of the Group and Company at the balance sheet date
approximated their fair values except as set out below:
2006
Group
Carrying
Amount
RM
2005
Fair
Value
RM
Carrying
Amount
RM
Fair
Value
RM
Financial assets
89,245,752
487,015
57,243,187
718,202
65,536,012
539,060
57,522,018
712,858
9,490,237
410,473
8,686,798
840,394
7,674,865
486,216
9,029,824
819,191
487,015
57,243,187
585,446
539,060
57,522,018
581,298
410,473
8,686,798
559,849
486,216
9,029,824
532,736
Company
Financial assets
34. APPROVAL OF FINANCIAL STATEMENTS
The financial statements have been approved for issue in accordance with a resolution of the Board of
Directors on 28 March 2007.
p.91
amanahraya’s branch network
HEADQUARTERS
Tingkat 15
Wisma AmanahRaya
No. 2, Jalan Ampang
50450 Kuala Lumpur
Malaysia.
Tel : 603-2055 7388
Fax : 603-2031 4545
CARELine : 603-2072 9999
AmanahRaya Service Center
Ground & 2nd Floor
Wisma AmanahRaya Annex
No. 2, Jalan Ampang
50450 Kuala Lumpur
Tel : 603-2055 7388
Fax : 603-2078 3421
Johor Bahru
Suite M-01, Mezanine Floor
Menara MAA
No.15, Jalan Dato’ Abdullah Tahir
80300 Johor Bahru
Johor
Tel : 607-333 5918
Fax : 607-332 8428
Pahang
No. 14 & 16, Ground Floor
Bangunan Majlis Ugama Islam
Jalan Bukit Ubi
25200 Kuantan
Pahang
Tel : 609-513 5318
Fax : 609-514 6785
Negeri Sembilan
No. 90 & 92, Ground Floor
Jalan Yam Tuan
70000 Seremban
Negeri Sembilan
Tel : 606-763 8387
Fax : 606-763 9234
p.92
Pulau Pinang
Ground Floor, Bangunan
Tabung Haji
Lot 50, Jalan Greenhall
10508 Pulau Pinang
Tel : 604-261 1144
Fax : 604-263 4022
Perak
Ground & 1st Floor
A-G-3 dan A-1-3
Pusat Perniagaan Greentown
Jalan Dato Seri Ahmad Said
30450 Ipoh
Perak
Tel : 605-2548714/605-2437546
Fax : 605-2549454
Kelantan
PT 303, Ground & 1st Floor
Wisma JAZA
Batu 2 Jalan Kuala Krai
15050 Kota Bharu
Kelantan
Tel : 609-748 2112
Fax : 609-747 8353
Kedah
No. 237, Jalan Shahab 2
Shahab Perdana
05350 Alor Setar
Kedah
Tel : 604-732 2080
Fax : 604-730 4406
amanahraya’s branch network
Perlis
No. 56, Lot 434, Grd Flr
Bangunan Bernama Medan
Raja Syed Alwi
01000 Kangar
Perlis
Tel : 604-976 1485
Fax : 604-976 8520
Melaka
No. 42A, Jalan PMS 3
Plaza Melaka Sentral
Peringgit
75300 Melaka
Tel : 606-282 2848
Fax : 606-282 1443
Kuala Krai
No. PT 4025, Jalan Panggung
Bandar Kuala Krai
18000 Kuala Krai
Kelantan
Tel : 609-960 5787
Fax : 609-960 7955
Terengganu
No. 4, Ground & 1st Floor
Jalan Air Jernih
20300 Kuala Terengganu
Terengganu
Tel : 609-622 1201
Fax : 609-622 8449
Selangor
Lot 1, Level 1, 2 & 3
Pusat Dagangan UMNO
Shah Alam
Persiaran Damai, Seksyen 11
40100 Shah Alam
Selangor
Tel : 603-5511 5733
Fax : 603-5511 5732
Temerloh
No. 23, Jalan Dato’
Bahaman 3
Pusat Komersil Temerloh
28000 Temerloh
Pahang
Tel : 609-296 4562/4381/5094
Fax : 609-296 4734
Sarawak
No. 31, Ground & 1st Floor
Kueh Hock Kui Commercial Centre
Jalan Tun Ahmad Zaidie Adruce
P.O. Box 1364
93150 Kuching
Sarawak
Tel : 6082-254 171/170
Fax : 6082-422 928
Muar
No. 208 Jalan Meriam
84000 Muar
Johor
Tel : 606-952 3218
Fax : 606-951 4597
Sungai Petani
No. 3A, Jalan Permatang
Gedong
Taman Sejati Indah
08000 Sungai Petani
Kedah
Tel : 604-431 0270/421
Fax : 604-431 0081
Bangi
Lot 802G, Complex Diamond
Bangi Business Park
Jalan Medan Bangi,
Off Persiaran Bangi
Bandar Baru Bangi
43650 Bangi
Selangor
Tel : 603-8210 1346
Fax : 603-8210 1345
Sabah
Level 2,
Bangunan Bank Negara
Jalan Tun Razak
P.O. Box 10127
88801 Kota Kinabalu
Sabah
Tel : 6088-211 970
Fax : 6088-246 178
p.93
your partner in trust
AMANAH RAYA BERHAD
(344986-V)
Tingkat 15, Wisma AmanahRaya
No. 2, Jalan Ampang
50450 Kuala Lumpur
Malaysia
Telephone No : 603-2055 7388
Fax No : 603-2078 8187

annual report - Amanah Raya Berhad

Transcription

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