a new beginning - takaful malaysia...syarikat takaful malaysia berhad (131646-k) laporan tahunan...

Laporan Tahunan 2012 Annual Report

A New Beginning Menara Takaful Malaysia

Visi & MisiVision & Mission

Nilai-nilai KorporatCorporate Values

Notis Mesyuarat Agung Tahunan ke-28Notice of 28th Annual General Meeting

Penyata Mengiringi Notis Mesyuarat Agung Tahunan ke-28Statement Accompanying Notice of 28th Annual General Meeting

Struktur KorporatCorporate Structure

Ringkasan Kewangan Lima TahunFive Years Financial Highlights

Maklumat KorporatCorporate Information

Profil Lembaga PengarahBoard of Directors’ Profile

Profil Badan Penasihat SyariahShariah Advisory Body’s Profile

ISI KANDuNGAN ConTenTs

Jawatankuasa PengurusanManagement Committee

Laporan Jawatankuasa AuditAudit Committee Report

Penyata urus Tadbir KorporatCorporate Governance Statement

Maklumat Pematuhan TambahanAdditional Compliance Information

Penyata Pengurusan Risiko dan Kawalan DalamanStatement on Risk Management and Internal Control

Penyata PengerusiChairman’s Statement

Penyata KewanganFinancial Statements

Maklumat HartanahParticulars of Properties

Statistik Pegangan Saham Shareholdings Statistics

Rangkaian CawanganBranch Network

Syarikat SubsidiariSubsidiary Companies

Borang ProksiProxy Form

002

031003

040

052

004

008054

061

073

328

336

340

342

009

010

012

014

022

027

Visi“Kami ingin menjadi pilihan utama insurans”

Vision“We want to be the preferred choice for insurance”

MisiMatlamat kami adalah untuk melangkaui jangkaan pelanggan melalui:

• Kecemerlangan Operasi

• Kebolehan Dalam Daya Saing Teknologi

• Inovasi Produk

• Budaya Kerja Berorientasikan Prestasi

Dalam usaha meningkatkan nilai pemegang-pemegang saham

MissionWe aim to exceed customers’ expectations through:

• Operational Excellence

• Technology Driven Capabilities

• Product Innovation

• Performance Oriented Culture

Whilst delivering superior shareholders’ value

Nilai-nilai KorporatTunggak khusus jenama Takaful Malaysia

adalah melalui nilai-nilai korporat yang terus diperjuangkan melalui usaha-usaha kami.

Corporate ValuesThe defining pillars of the Takaful Malaysia brand are the values that we continuously strive to manifest through our work.

Kemanusiaan

HumanitarianMemberi Inspirasi

Inspiring

Profesional

Integriti

Kerja

Ber

pasu

kan Professional

Integrity

Team

wor

k

1 2 345

1 2 3 4 5Kerja BerpasukanDedikasi terhadap kerja berpasukan adalah bukti perpaduan dan kepercayaan antara satu sama lain.

TeamworkOur dedication to teamwork is a testament of our unity and trust towards each other.

ProfesionalPengorbanan kami adalah melalui pencapaian piawaian dan janji yang kami tunaikan kepada pelanggan kami.

ProfessionalOur sacrifice to achieve the standards and promises that we deliver to our customers.

IntegritiKomitmen kami terhadap nilai-nilai integriti peribadi dan untuk membina kepercayaan.

IntegrityOur commitment in values of personal integrity and to build trust.

Memberi InspirasiKetabahan untuk terus membangunkan industri kami ke tahap yang berikutnya.

InspiringOur perseverance to our continued development of our industry, bringing it to the next level.

KemanusiaanJanji kami kepada masyarakat adalah melalui ikrar keprihatinan dan sikap ambil berat.

HumanitarianOur promise to the community is the pledge of our compassion and care.

04 SyarIKaT TaKaful MalaySIa BErhaD (131646-K) LaPoran TaHunan 2012 annuaL rePorT

Notice of 28th Annual General Meeting

DENGAN INI DIMAKLUMKAN bahawa MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD YANG KEDUA PULUH LAPAN (28) akan diadakan di Ballroom 1, Tingkat 1, Pusat Konvensyen Sime Darby, 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur pada hari Isnin, 29 April 2013, jam 10:00 pagi bagi tujuan-tujuan berikut:

seBaGaI urusan BIasa

1. untuk menerima Penyata-penyata Kewangan Beraudit bagi tahun kewangan berakhir 31 Disember 2012, berserta laporan Pengarah dan Juruaudit berkaitan dengannya. (Resolusi 1)

2. untuk melantik semula Pengarah-pengarah berikut yang bersara menurut Tataurusan Pertubuhan Syarikat:

Artikel 62

2.1 Encik Mahadzir azizan (resolusi 2)

2.2 Y. Bhg. Dato’ Sulaiman Mohd Yusof (Resolusi 3)

2.3 Encik Zakaria Ismail (resolusi 4)

Artikel 66A

2.4 y. Bhg. Dato’ Othman abdullah (resolusi 5)

3. untuk meluluskan bayaran yuran Pengarah-pengarah sebanyak RM783,000 bagi tahun kewangan berakhir 31 Disember 2012. (RM579,000 bagi tahun kewangan berakhir 31 Disember 2011). (Resolusi 6)

4. untuk meluluskan bayaran yuran Ahli-ahli Badan Penasihat Syariah sebanyak RM193,000 bagi tahun kewangan berakhir 31 Disember 2012. (RM167,000 bagi tahun kewangan berakhir 31 Disember 2011). (Resolusi 7)

5. untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran Juruaudit. (Resolusi 8)

Notis Mesyuarat Agung Tahunan ke-28

NOTICE IS HEREBY GIVEN that the TWENTY EIGHT (28TH) ANNUAL GENERAL MEETING of SYARIKAT TAKAFUL MALAYSIA BERHAD will be held at Ballroom 1, Level 1, Sime Darby Convention Centre, 1A Jalan Bukit Kiara 1, 60000 Kuala Lumpur on Monday, 29 April 2013, at 10:00 a.m. for the following purposes:

as orDInarY BusIness

1. To receive the Audited Financial Statements for the financial year ended 31 December 2012, together with the reports of the Directors and Auditors thereon. (Resolution 1)

2. To re-elect the following Directors, each of whom retires pursuant to the Company’s Articles of Association:

Article 62

2.1 Encik Mahadzir azizan (resolution 2)

2.2 Y. Bhg. Dato’ Sulaiman Mohd Yusof (Resolution 3)

2.3 Encik Zakaria Ismail (resolution 4)

Article 66A

2.4 y. Bhg. Dato’ Othman abdullah (resolution 5)

3. To approve the payment of the Directors’ fees of RM783,000 for the financial year ended 31 December 2012. (RM579,000 for the financial year ended 31 December 2011). (Resolution 6)

4. To approve the payment of Shariah Advisory Body Members’ fees of RM193,000 for the financial year ended 31 December 2012. (RM167,000 for the financial year ended 31 December 2011). (Resolution 7)

5. To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directors to fix their remuneration. (Resolution 8)

05SyarIKaT TaKaful MalaySIa BErhaD (131646-K) LaPoran TaHunan 2012 annuaL rePorT



seBaGaI urusan KHas

6. Resolusi Biasa – Cadangan Mandat Pemegang-pemegang Saham bagi urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan dengan BIMB Holdings Berhad dan subsidiari-subsidiarinya (“Kumpulan BHB”).

“BAHAWA, tertakluk kepada pematuhan dengan Keperluan Penyenaraian Bursa Malaysia Securities Berhad, Akta Syarikat 1965, Memorandum dan Tataurusan Pertubuhan Syarikat dan semua undang-undang, peraturan dan garis panduan yang berkaitan, kelulusan dengan ini diberikan kepada Syarikat dan subsidiari-subsidiarinya (“Kumpulan Takaful Malaysia”) untuk memeterai urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan dengan Kumpulan BHB yang perlu bagi operasi harian Kumpulan Takaful Malaysia seperti yang dinyatakan dalam Seksyen 2.3 Pekeliling kepada Para Pemegang Saham bertarikh 5 April 2013 (“Pekeliling”), dengan syarat bahawa:

(a) urusniaga tersebut adalah dalam urusan biasa perniagaan dan mengikut terma yang tidak lebih memihak kepada pihak berkaitan berbanding yang secara umumnya tersedia kepada orang ramai dan mengikut terma yang tidak menjejaskan para pemegang saham minoriti Syarikat;

(b) urusniaga dilaksanakan secara tulus dan mengikut terma komersial biasa; dan

(c) penzahiran akan dibuat dalam laporan tahunan dengan pecahan nilai agregat urus niaga yang dijalankan menurut mandat pada tahun kewangan.

DAN BAHAWA kelulusan tersebut akan bermula serta-merta setelah resolusi ini diluluskan dan akan terus berkuatkuasa sehingga:

(a) tamat mesyuarat agung tahunan Syarikat yang akan datang, di mana mandat tersebut akan luput, melainkan kuasa tersebut diperbaharui melalui satu resolusi yang diluluskan dalam mesyuarat tersebut;

(b) tamat tempoh di mana mesyuarat agung tahunan berikutnya selepas tarikh ia dikehendaki untuk diadakan menurut Seksyen 143(1) Akta Syarikat, 1965 (“AS”) (tetapi tidak melebihi penangguhan seperti yang dibenarkan menurut Seksyen 143(2) AS); atau

as sPeCIaL BusIness

6. Ordinary resolution – Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature with BIMB Holdings Berhad and its Subsidiaries (“BHB Group”).

“THAT, subject to compliance with the Listing Requirements of Bursa Malaysia Securities Berhad, Companies Act 1965, Memorandum and Articles of Association of the Company and all other applicable laws, rules, regulations and guidelines, approval be and is hereby given to the Company and its subsidiaries (“Takaful Malaysia Group”) to enter into the Recurrent Related Party Transactions of a revenue or trading nature with the BHB Group which are necessary for the day to day operations of the Takaful Malaysia Group as set out in Section 2.3 of the Circular to Shareholders dated 5 April 2013 (“Circular”), provided that:

(a) the transactions are in the ordinary course of business and are on terms which are not more favourable to the related parties than those generally available to the public and on terms not to the detriment of the minority shareholders of the Company;

(b) the transactions are made at arm’s length and on normal commercial terms; and

(c) the disclosure will be made in the annual report with the breakdown of the aggregate value of the transactions conducted pursuant to the mandate during the financial year.

AND THAT such authority shall commence immediately upon the passing of this resolution and shall continue to be in force until:

(a) the conclusion of the next annual general meeting of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is renewed;

(b) the expiration of the period within which the next annual general meeting after the date that it is required to be held pursuant to Section 143(1) of the Companies Act, 1965 (“CA”) (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of CA); or




(c) dibatalkan atau dipinda melalui resolusi yang diluluskan oleh pemegang saham dalam mesyuarat agung,

yang mana lebih awal”. (Resolusi 9)

7. untuk melaksanakan sebarang urusan yang mana notis sewajarnya telah diberi.

NOTIS SETERUSNYA DENGAN INI DIBERI BAHAWA untuk tujuan menentukan ahli yang akan layak untuk menghadiri AGM yang ke-28, Syarikat akan membuat permohonan kepada Bursa Malaysia Depository Sdn Bhd, selaras dengan Artikel 41(f )(ii) Tataurusan Pertubuhan Syarikat dan Seksyen 34(1) Akta Perindustrian Sekuriti (Depositori Pusat) 1991, untuk menerbitkan Rekod Pendeposit Mesyuarat Agung pada 22 April 2013. Hanya pendeposit yang namanya tersenarai di dalam Rekod Pendeposit pada 22 April 2013 sahaja berhak untuk menghadiri mesyuarat atau melantik proksi untuk menghadiri dan/atau mengundi bagi pihaknya.

Atas Arahan Lembaga Pengarah

MOHAMAD ASRI HAJI YUSOFF (MIA 14171)Setiausaha SyarikatKuala Lumpur5 April 2013

(c) revoked or varied by resolution passed by the shareholders in a general meeting,

whichever is the earlier”. (Resolution 9)

7. To transact any other business for which due notice has been given.

FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a member who shall be entitled to attend this 28th AGM, the Company shall be requesting Bursa Malaysia Depository Sdn Bhd, in accordance with Article 41(f )(ii) of the Company’s Articles of Association and Section 34(1) of the Securities Industry (Central Depositories) Act 1991, to issue a General Meeting Record of Depositors as at 22 april 2013. Only a depositor whose name appears on the Record of Depositors as at 22 April 2013 shall be entitled to attend the said meeting or appoint proxies to attend and/or vote on his/her behalf.

By Order of the Board

MOHAMAD ASRI HAJI YUSOFF (MIA 14171)Company SecretaryKuala Lumpur5 April 2013




Nota-Nota:1. Pelantikan Proksi

(i) Seorang ahli yang berhak hadir untuk mengundi dalam mesyuarat itu layak untuk melantik tidak lebih daripada dua (2) orang proksi untuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagian sahamnya yang diwakili oleh setiap proksi dan proksi itu tidak semestinya seorang ahli Syarikat.

(ii) Suratcara pelantikan proksi bagi individu hendaklah ditandatangani oleh pelantik atau peguamnya dan dalam hal perbadanan, ia mestilah dimeterai atau ditandatangani oleh seorang pegawai atau peguamnya yang telah diberi kuasa sewajarnya.

(iii) Suratcara pelantikan seorang proksi mestilah dihantar ke Pejabat Berdaftar Syarikat di Tingkat 26, Blok Annex, Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur, tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya.

(iv) Hanya ahli yang tersenarai di dalam Rekod Pendeposit pada 22 April 2013 yang layak untuk hadir, bersuara dan mengundi pada AGM atau melantik seorang proksi (proksi-proksi) untuk hadir, bersuara dan/atau mengundi bagi pihak mereka.

2. Nota Penerangan Kepada Urusniaga Khas

(i) Cadangan Mandat Pemegang-pemegang Saham bagi urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan

Cadangan Resolusi No. 9, jika diluluskan, akan memberi kuasa kepada Syarikat untuk melaksanakan urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan yang perlu bagi operasi harian Kumpulan Takaful Malaysia dan akan menghapuskan keperluan untuk menjalankan mesyuarat agung yang berasingan dari masa ke semasa untuk mendapatkan kelulusan para pemegang saham. Butiran Cadangan Mandat Pemegang-pemegang Saham bagi urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan ada dinyatakan di dalam Pekeliling kepada Pemegang Saham bertarikh 5 April 2013.

Notes:1. Appointment of Proxy

(i) A member entitled to attend and vote at the meeting is entitled to appoint not more than two (2) proxies to attend and to vote instead of him and shall specify the proportions of his holdings to be represented by each proxy and a proxy need not be a member of the Company.

(ii) The instrument appointing a proxy in the case of an individual shall be signed by the appointer or his attorney and in the case of a corporation, must be under seal or under the hand of an officer or attorney duly authorised.

(iii) The instrument appointing a proxy must be deposited at the registered Office of the Company at Tingkat 26, Blok annex, Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur not less than forty eight (48) hours before the time for holding the meeting or any adjournment thereof.

(iv) Only members whose names appear in the record of Depositors on 22 April 2013 shall be eligible to attend, speak and vote at the AGM or appoint proxy(ies) to attend, speak and/or vote on their behalf.

2. Explanatory Note on Special Business

(i) Proposed Shareholders’ Mandate for Recurrent Related Party Transaction of a Revenue or Trading Nature

The proposed Resolution No. 9, if passed, will empower the Company to conduct recurrent related party transactions of a revenue or trading in nature which are necessary for Takaful Malaysia Group’s day to day operations and will eliminate the need to convene separate general meetings from time to time to seek shareholders’ approval. The details on the Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature are set out in the Circular to Shareholders dated 5 April 2013.


Penyata Mengiringi notis Mesyuarat agung Tahunan Kedua Puluh Lapan mengikut Perenggan 8.27 (2) Keperluan Penyenaraian Pasaran utama Bursa Malaysia securities BerhadTiada individu yang dilantik sebagai Pengarah (selain daripada pengarah yang bersedia untuk dilantik semula iaitu Encik Mahadzir azizan, y. Bhg. Dato’ Sulaiman Mohd yusof, Encik Zakaria Ismail dan y. Bhg. Dato’ Othman abdullah) dalam Mesyuarat agung Tahunan Syarikat Takaful Malaysia Berhad yang Kedua Puluh Lapan akan datang.

statement accompanying notice of Twenty eight annual General Meeting pursuant to Paragraph 8.27 (2) of the Main Market Listing requirements of Bursa Malaysia securities BerhadThere is no individual standing for election as Director (other than directors standing for re-election i.e. Encik Mahadzir azizan, y. Bhg. Dato’ Sulaiman Mohd yusof, Encik Zakaria Ismail and y. Bhg. Dato’ Othman abdullah) at this forthcoming Twenty Eight Annual General Meeting of Syarikat Takaful Malaysia Berhad.


63.09%56.00%

syarikat-syarikat subsidiari / subsidiary Companies

Corporate Structure Struktur Korporat

* in members’ voluntary liquidation

47.08%

42.73%57.24%52.67%

*

P.T. SYARIKAT


5 Years Financial HighlightsRingkasan Kewangan Lima Tahun

JuMLaH Kasar suMBanGan TaKafuL (rM’000) / ToTaL Gross TaKafuL ConTrIBuTIons (rM’000)

Kumpulan / Group Syarikat / Company

Takaful Keluarga / family Takaful

2012

2011

2010*

2009

2008

973,005

699,344

839,909

524,867

655,890

2012

2011

2010*

2009

2008 538,546

848,711

567,736

679,831

433,007


Jumlah aset (rM’000) / Total assets (rM’000)

2012

2011

2010*

2009

2008

6,371,644

5,845,979

5,366,657

4,614,840

4,047,299

2012

2011

2010*

2009

2008 3,796,260

5,963,150

5,440,049

4,966,219

4,306,063


Takaful am / General Takaful

2012

2011

2010*

2009

2008

401,437

441,889

606,354

352,851

269,104

2012

2011

2010*

2009

2008 208,041

349,547

383,316

499,491

276,294


5 Years Financial Highlights

Ringkasan Kewangan Lima Tahun


Keuntungan sebelum Cukai selepas Zakat (rM’000) / Profit Before Taxation after Zakat (rM’000)

2012

2011

2010*

2009

2008

124,458

100,685

97,370

48,853

33,860

2012

2011

2010*

2009

2008 42,660

127,031

93,485

92,664

45,325

Kumpulan / Group Kumpulan / Group

aset Bersih sesaham (rM) / net assets Per share (rM) Pendapatan sesaham (rM) / earnings Per share (rM)

2012

2011

2010*

2009

2008

3.07

2.77

2.42

2.15

1.88

2012

2011

2010*

2009

2008 18.70

62.18

47.20

34.60

24.20


Pulangan atas ekuiti (%) / return on equity (%)Dividen yang Dibayar/Dicadangkan (Ditolak Cukai) (rM’000)/

Dividend Paid/Proposed (net of Taxation) (rM’000)

2012

2011

2010*

2009

2008

21.3

18.4

10.2

12.0

10.3

2012

2011

2010*

2009

2008 8,437

40,704

25,644

17,096

8,853

* 18 months financial period


Corporate InformationMaklumat Korporat

ahli-ahli / Members

Y. Bhg. Dato’ Mohamed Hassan Md. KamilPengarah urusan Kumpulan / Group Managing Director

Puan rozaida omarPengarah Bukan Eksekutif Bukan Bebas /Non-Independent Non-Executive Director

encik Mahadzir azizanPengarah Bukan Eksekutif Bebas Kanan /Senior Independent Non-Executive Director

Y. Bhg. Dato’ sulaiman Mohd YusofPengarah Bukan Eksekutif Bebas /Independent Non-Executive Director

LeMBaGa PenGaraH / BoarD of DIreCTors

Pengerusi / ChairmanY. Bhg. Dato’ Paduka Ismee IsmailPengarah Bukan Eksekutif Bukan Bebas /Non-Independent Non-Executive Director

encik Johan abdullahPengarah Bukan Eksekutif Bukan Bebas /Non-Independent Non-Executive Director

encik Zakaria IsmailPengarah Bukan Eksekutif Bebas /Independent Non-Executive Director

Y. Bhg. Dato’ othman abdullahPengarah Bukan Eksekutif Bebas / Independent Non-Executive Director (Dilantik pada 1 Disember 2012 / Appointed on 1 December 2012)

setiausaha / secretary

encik Mohamad asri Haji Yusoff

(MIa 14171)

BaDan PenasIHaT sYarIaH / sHarIaH aDVIsorY BoDYPengerusi / ChairmanY. Bhg. Dr. ahmad shahbari @ sobri salamon

ahli-ahli / MembersY. Bhg. ustaz Mohd. Bakir Hj. MansorY. Bhg. Dr. aida othmanY. Bhg. Prof. Madya Dr. Muhamad rahimi osmanY. Bhg. Dato’ Wan Mohamad Dato’ sheikh abdul aziz

setiausaha / secretaryencik Mohamad asri Haji Yusoff

JaWaTanKuasa auDIT / auDIT CoMMITTeeencik Mahadzir azizanPengerusi / Chairman

Puan rozaida omar(Meletak jawatan pada 1 Disember 2012/ Resigned on 1 December 2012)

Y. Bhg. Dato’ sulaiman Mohd Yusof encik Zakaria Ismail Y. Bhg. Dato’ othman abdullah(Dilantik pada 1 Disember 2012/Appointed on 1 December 2012)

JaWaTanKuasa PeMILIHan /noMInaTIon CoMMITTee

encik Mahadzir azizanPengerusi / Chairman(Pengerusi mulai 23 Mei 2012/ Chairman from 23 May 2012)

encik Zakaria Ismail(Pengerusi sehingga 22 Mei 2012/Chairman until 22 May 2012)

Puan rozaida omarY. Bhg. Dato’ sulaiman Mohd Yusofencik Johan abdullah

JaWaTanKuasa GanJaran /reMuneraTIon CoMMITTeeencik Zakaria IsmailPengerusi / Chairman(Pengerusi mulai 23 Mei 2012/ Chairman from 23 May 2012)

encik Mahadzir azizan(Pengerusi sehingga 22 Mei 2012/ Chairman until 22 May 2012)

encik Johan abdullah

JaWaTanKuasa rIsIKo LeMBaGa PenGaraH / BoarD rIsK CoMMITTeeencik Zakaria IsmailPengerusi / Chairman

encik Mahadzir azizanencik Johan abdullahY. Bhg. Dato’ sulaiman Mohd Yusof


Maklumat Korporat

Corporate Information

PenGurusan / ManaGeMenTY. Bhg. Dato’ Mohamed Hassan Md. KamilPengarah urusan Kumpulan / Group Managing Director

encik Lee Hin szeKetua Pegawai Kewangan / Chief financial Officer

Puan azian KassimKetua Pegawai Pelaburan / Chief Investment Officer

encik nazrul Hisham abdul HamidPengurus Besar, Operasi / General Manager, Operations

encik Leem Why ChongPengurus Besar, Aktuari & Aktuari Dilantik /General Manager, Actuarial & Appointed Actuary

Puan norazlin Mohd DahariPengurus Besar, Jualan Korporat / General Manager, Corporate Sales

encik Mohd suhaimi ahmadPengurus Besar, Agensi Runcit / General Manager, Retail Agency

Puan shuhaibahtulaslamiah HurmuzanPengurus Besar, Sumber Manusia /General Manager, Human Resource

encik Patrick Wong Chang YangKetua Pegawai Informasi / Chief Information Officer

encik Mark anthony nathanPengurus Besar, Bankatakaful / General Manager, Bancatakaful

Cik Leong Chee WanPenolong Pengurus Besar, Operasi – Takaful Keluarga / Bankatakaful / Logistik assistant General Manager, Operations – Family Takaful / Bancatakaful / Logistic

Puan Haniza filzah Hayani abu HaniffaPenolong Pengurus Besar, Audit Dalaman / Assistant General Manager, Internal Audit

encik Wahizan abdul WahidPenolong Pengurus Besar, Pematuhan & Pengurusan Risiko / Assistant General Manager, Compliance & Risk Management

Puan Mala PatmarajahKetua, Komunikasi Korporat / Head of Corporate Communications

JuruauDIT / auDITorsKPMG Desa Megat & Co. (af0759) Chartered AccountantsLevel 10, KPMG Tower8, First AvenueBandar utama47800 Petaling JayaSelangor Darul EhsanTel : +603-7721 3388Fax : +603-7721 3399

PeJaBaT BerDafTar / reGIsTereD offICeTingkat 26, Blok AnnexMenara Takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 Kuala LumpurTel : +603-2268 1984Fax : +603-2274 2864Email : [email protected] : takaful-malaysia.com.my

PenDafTar / reGIsTrarsymphony share registrars sdn Bhd (378993-D)Level 6, Symphony HousePusat Dagangan Dana 1Jalan PJu 1A/4647301 Petaling JayaSelangorTel : +603-7841 8000Fax : +603-7841 8151/52Helpdesk Line : +603-7849 0777 Website : www.symphony.com.my

TeMPaT DITuBuHKan Dan DoMIsIL /PLaCe of InCorPoraTIon anD DoMICILeMalaysia

PenYenaraIan Bursa / Bursa LIsTInGPasaran utama / Main MarketBursa Malaysia securities Berhad


Beliau adalah ahli fellow Chartered Institute of Management Accountants (CIMA) dan ahli Institut Akauntan Malaysia (MIA).

Beliau kini merupakan Pengarah urusan Kumpulan dan Ketua Pegawai Eksekutif lembaga Tabung haji. Sebelum itu, beliau merupakan Ketua Pegawai Eksekutif ECM libra Securities Sdn Bhd dan Pengarah ECM Libra Capital Sdn Bhd. Beliau juga pernah berkhidmat dengan beberapa organisasi dalam pelbagai kapasiti antaranya selaku Pengurus Besar Kanan Kewangan, Lembaga Tabung Haji; Ketua Akauntan di Pengurusan Danaharta Nasional Berhad; Pengurus Besar Pembangunan Perniagaan di Arab Malaysian Development Berhad dan beberapa jawatan berkaitan kewangan di Shell Malaysia Trading Sdn Bhd. Beliau juga adalah Pengarah BIMB Holdings Berhad, Bank Islam Malaysia Berhad, TH Plantations Berhad, Felda Global Ventures Holdings Berhad dan beberapa syarikat lain.

Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri kesemua lapan (8) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2012.

He is a fellow member of Chartered Institute of Management Accountants (CIMA) and a member of the Malaysian Institute of Accountants (MIA).

he is currently the Group Managing Director and Chief Executive Officer of lembaga Tabung haji. Prior to that, he was the Chief Executive Officer of ECM libra Securities Sdn Bhd and a Director of ECM libra Capital Sdn Bhd. He has also served several organisations in various capacities including that of Senior General Manager of Finance, Lembaga Tabung Haji; Chief Accountant at Pengurusan Danaharta Nasional Berhad; General Manager of Business Development at Arab Malaysian Development Berhad and has held several finance-related positions at Shell Malaysia Trading Sdn Bhd. He is also a Director of BIMB Holdings Berhad, Bank Islam Malaysia Berhad, TH Plantations Berhad, Felda Global Ventures Holdings Berhad and several other companies.

He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended all eight (8) Board of Directors’ meetings held during the financial year ended 31 December 2012.

Profil Lembaga Pengarah

Board of Directors’ Profile

Y. BHG. DaTo’ PaDuKa IsMee IsMaIL

Y. Bhg. Dato’ Paduka Ismee Ismail, berusia 48 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengerusi Bukan Eksekutif Bukan Bebas Takaful Malaysia pada 16 Disember 2009.

Y. Bhg. Dato’ Paduka Ismee Ismail, aged 48, is a Malaysian citizen and was appointed to the Board on 16 December 2009 as a Non-Independent Non-Executive Chairman of Takaful Malaysia.

Pengerusi /Chairman


Beliau merupakan graduan Sarjana Muda Sains dalam bidang Sains Aktuari dan Sarjana Pentadbiran Perniagaan dari university of Iowa, uSA. Beliau juga adalah Fellow of the Society of Actuaries, uSA, ahli American Academy of Actuaries dan Chartered Life underwriter.

Beliau telah bekerja di Amerika Syarikat sebagai Aktuari dari tahun 1987 hingga 1994 sebelum pulang ke Malaysia sebagai Timbalan Pengurus Besar di Malaysia National Insurance. Pada tahun 1996, beliau menyertai ING Insurance Berhad (sebelum ini dikenali sebagai Aetna universal Insurance) sebagai Naib Presiden Kanan dan Ketua Aktuari. Pada tahun 2004, beliau menjadi Timbalan Pengurus Besar bagi P.T. AIA Indonesia.




Y. BHG. DaTo’ MoHaMeD Hassan MD. KaMIL

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil, berusia 50 tahun, adalah warganegara Malaysia dan dilantik ke Lembaga Pengarah Takaful Malaysia pada 1 September 2006 sebagai Pengarah Bukan Eksekutif Bukan Bebas. Beliau kini adalah Pengarah urusan Kumpulan bagi Takaful Malaysia sejak 1 April 2007. Beliau juga merupakan Pengerusi Lembaga Komisaris P.T. Syarikat Takaful Indonesia dan P.T. Asuransi Takaful keluarga.

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil, aged 50, is a Malaysian citizen and was appointed to the Board of Takaful Malaysia on 1 September 2006 as a Non-Independent Non-Executive Director. he is currently the Group Managing Director of Takaful Malaysia since 1 April 2007. He is also the Chairman of the Board of Commissioners of P.T. Syarikat Takaful Indonesia and P.T. Asuransi Takaful Keluarga.

Pengarah urusan Kumpulan /Group Managing Director

He graduated with a Bachelor of Science degree in Actuarial Science and Master in Business Administration from the university of Iowa, uSA. He is a Fellow of the Society of Actuaries, uSA, a member of the American Academy of Actuaries and a Chartered Life underwriter.

He worked in the united States as an Actuary from 1987 to 1994 prior to returning to Malaysia as Deputy General Manager at Malaysia National Insurance. In 1996, he joined ING Insurance Berhad (previously known as Aetna universal Insurance) as Senior Vice President and Chief Actuary. In 2004, he became the Deputy General Manager for P.T. AIA Indonesia.



Beliau adalah Akauntan Bertauliah (M) dan merupakan ahli Association of Chartered Certified Accountants (ACCA) united Kingdom sejak tahun 1986.

Beliau memulakan kerjayanya sebagai akauntan Kewangan di fElDa pada tahun 1986. Pada tahun 1990, beliau menjadi Pengurus Kredit di Citibank Berhad sehingga tahun 1991. Beliau kemudiannya menyertai Guthrie Trading Sdn Bhd pada tahun 1992 sebagai Pengurus Kewangan sehingga tahun 1993. Selepas itu, beliau menjadi Pengarah Kewangan di Glaxo SmithKline Consumer Healthcare Sdn Bhd dari tahun 1994 sehingga tahun 2003. Kini beliau adalah Ketua Pegawai Kewangan Kumpulan di Lembaga Tabung Haji sejak tahun 2004. Beliau juga merupakan Pengarah Pelikan International Corporation Berhad dan BIMB Holdings Berhad.

Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri tujuh (7) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2012.

She is a Chartered Accountant (M) and a member of the Association of Chartered Certified Accountants (ACCA) united Kingdom since 1986. She started her career as a financial accountant at fElDa in 1986.

In 1990, she became a Credit Manager at Citibank Berhad until 1991. She then joined Guthrie Trading Sdn Bhd in 1992 as a Finance Manager until 1993. After that, she became a Finance Director of Glaxo SmithKline Consumer Healthcare Sdn Bhd from 1994 until 2003. She is currently the Group Chief financial Officer of lembaga Tabung haji since 2004. She is also a Director of Pelikan International Corporation Berhad and BIMB Holdings Berhad.

She has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. She has no conviction for offences within the past ten (10) years and has attended seven (7) Board of Directors’ meetings held during the financial year ended 31 December 2012.



Puan roZaIDa oMar

Puan Rozaida Omar, berusia 50 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengarah Bukan Eksekutif Bukan Bebas Takaful Malaysia pada 15 Mei 2007. Beliau juga merupakan ahli Jawatankuasa Pemilihan.

Puan Rozaida Omar, aged 50, is a Malaysian citizen and is a Non-Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2007. She is also a member of the Nomination Committee.

Pengarah Bukan eksekutif Bukan Bebas /non-Independent non-executive Director


Beliau juga merupakan Pengerusi Jawatankuasa Audit dan Jawatankuasa Pemilihan dan ahli Jawatankuasa Risiko Lembaga Pengarah dan Jawatankuasa Ganjaran. Beliau juga merupakan ahli Lembaga Komisaris P. T. Asuransi Takaful Keluarga.

Beliau memperolehi kelulusan Barrister-At-Law dari Lincoln’s Inn, London, united Kingdom dan diterima masuk ke English Bar pada tahun 1978.

Beliau telah memegang pelbagai jawatan penting di dalam sektor awam dan swasta. Selepas tamat pengajian, beliau telah menyertai perkhidmatan Perundangan dan Kehakiman Kerajaan Malaysia sebagai Timbalan Pendakwaraya dan Penasihat undang-undang. Beliau kemudiannya menyertai sektor swasta dan berkhidmat di Malaysian International Shipping Corporation (“MISC”) dan Island & Peninsular Berhad, syarikat hartanah Permodalan Nasional Berhad (“PNB”) selama 24 tahun. Semasa di sektor swasta, beliau juga telah berkhidmat sebagai Ahli Majlis MARA dan juga sebagai Pengarah di pelbagai syarikat berkaitan Kerajaan. Kini, beliau juga merupakan Pengarah ECM libra Financial Group Berhad, Libra Invest Berhad dan beberapa syarikat lain.


He is the also Chairman of the Audit Committee and Nomination Committee and a member of Board Risk Committee and Remuneration Committee. He is also a member of the Board of Commissioners of P.T. Asuransi Takaful Keluarga.

He is a Barrister-At-Law from Lincoln’s Inn, London, united Kingdom and was called to the English Bar in 1978.

He has held key positions both in private and public sector. After graduation, he joined the Judicial and Legal Service of the Malaysian Government as a Deputy Public Prosecutor and Federal Counsel and subsequently ventured into the private sector and served Malaysian International Shipping Corporation (“MISC”) and Island & Peninsular Berhad, the property arm of Permodalan Nasional Berhad (“PNB”) for 24 years. Whilst in the private sector, he also served as Ahli Majlis MARA as well as various other directorships in government linked companies. Currently, he is also a Director of ECM libra financial Group Berhad, Libra Invest Berhad and several other companies.




enCIK MaHaDZIr aZIZan

Pengarah Bukan eksekutif Bebas Kanan /senior Independent non-executive Director

Encik Mahadzir Azizan, berusia 64 tahun, adalah warganegara Malaysia yang telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Takaful Malaysia pada 1 September 2007. Beliau telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Kanan pada 2 Jun 2011.

Encik Mahadzir Azizan, aged 64, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia who was appointed to the Board on 1 September 2007. He was appointed as Senior Independent Non-Executive Director on 2 June 2011.


Beliau memperolehi Ijazah Sarjana Muda undang-undang (llB) dari university of Buckingham, united Kingdom pada tahun 1984 dan diterima masuk ke Malaysian Bar pada tahun 1986.

Beliau memulakan kerjayanya sebagai Pelatih Wartawan Kadet dengan Agensi Berita Bernama pada tahun 1969. Seterusnya pada tahun yang sama, beliau menyertai Polis Di Raja Malaysia. Beliau menjawat pelbagai jawatan dalam Polis Di Raja Malaysia seperti Timbalan Superitendan Personel, Setiausaha yang bertanggungjawab kepada Ketua Polis Negara, Tun haniff Omar, Pegawai Polis Daerah Sentul, alor Setar dan Sungai Petani dan Penolong Pesuruhjaya Penyelidikan dan Perancangan di Bukit Aman. Pada tahun 2002, beliau menjadi Timbalan Pengarah Pengurusan (Disiplin), Timbalan Pengarah Jabatan Narkotik pada tahun 2003, Ketua Polis Negeri Sembilan pada tahun 2004, Timbalan Pengarah, Jabatan Siasatan Jenayah Komersial pada tahun 2005 dan sebagai Ketua Polis Kuala Lumpur pada tahun 2006 sehingga persaraan beliau. Pada bulan April 2007, beliau membuka syarikat guamannya sendiri, sekarang ini dikenali sebagai Sulaiman, Jamellah & Clement. Beliau juga merupakan Pengarah AWC Berhad dan beberapa syarikat sendirian berhad yang lain.


He graduated with a Bachelor of Law (LLB) degree from the university of Buckingham, united Kingdom in 1984 and was called to the Malaysian Bar in 1986.

He started his career as a Cadet Reporter Trainee with Bernama News Agency in 1969. Later in the same year, he joined Royal Malaysia Police. He assumed various positions at the Royal Malaysia Police such as Deputy Superintendent of Personnel, Secretary responsible for the IGP, Tun Haniff Omar, Police Officer for District of Sentul, alor Setar and Sungai Petani and Assistant Commissioner of Research and Planning at Bukit Aman. In 2002, he became the Deputy Director, Management (Discipline), in 2003 as Deputy Director, Narcotics Department, in 2004 as the Chief Police Officer of Negeri Sembilan, in 2005 as Deputy Director, Commercial Crime Investigation Department and in 2006 as the Chief Police Officer of Kuala Lumpur until his retirement. In April 2007, he started his own legal firm, currently known as Sulaiman, Jamellah & Clement. He is also a Director of AWC Berhad and other private limited companies.



Y. BHG. DaTo’ suLaIMan MoHD Yusof

Y. Bhg. Dato’ Sulaiman Mohd Yusof, berusia 62 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Takaful Malaysia pada 1 Januari 2008. Beliau juga merupakan ahli Jawatankuasa Audit, Jawatankuasa Pemilihan dan Jawatankuasa Risiko Lembaga Pengarah. Beliau juga merupakan Pengerusi Asean Retakaful International (L) Ltd. (dalam pembubaran secara sukarela oleh ahli).

Y. Bhg. Dato’ Sulaiman Mohd Yusof, aged 62, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 1 January 2008. He is also a member of the Audit Committee, Nomination Committee and Board Risk Committee. He is also the Chairman of Asean Retakaful International (L) Ltd. (in members’ voluntary liquidation).

Pengarah Bukan eksekutif Bebas /Independent non-executive Director



Beliau memperolehi Diploma Perbankan dari universiti Teknologi MARA, Shah alam pada tahun 1983, Ijazah Sarjana Muda Pentadbiran Perniagaan (Kewangan) dari Eastern Michigan university, uSa pada tahun 1985 dan Ijazah Sarjana Pentadbiran Perniagaan (Kewangan) dari Morehead State university, uSA pada tahun 1986.

Beliau memulakan kerjaya profesionalnya pada tahun 1987 di Kuala lumpur Stock Exchange (sekarang ini dikenali sebagai Bursa Malaysia Securities Berhad) sebagai Pegawai Penyenaraian. Pada tahun 1989, beliau menyertai bahagian Kewangan Korporat di Bumiputra Merchant Bankers Berhad dan meletak jawatan pada awal tahun 1995 sebagai Pengurus Kanan. Beliau kemudiannya menyertai Damansara Realty Berhad sebagai Pengurus Besar, Perancangan Korporat. Seterusnya pada tahun 1999, beliau menyertai semula Bursa Malaysia Securities Berhad dan telah memegang pelbagai jawatan kanan termasuk Deputy Chief Regulatory Officer, Group regulation. Pada bulan Mei 2008, beliau menyertai BIMB Holdings Berhad (“BHB”) sebagai Pengarah urusan Kumpulan/Ketua Pegawai Eksekutif. Beliau juga merupakan Pengarah Bank Islam Malaysia Berhad dan anak-anak syarikat di dalam kumpulan BHB.


He obtained a Diploma in Banking from university Technology MARA, Shah alam in 1983, a Bachelor of Business administration (finance) from Eastern Michigan university, uSA in 1985 and a Master in Business Administration (Finance) from Morehead State university, uSA in 1986.

He started his professional career in 1987 with Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Berhad) as listing Officer. In 1989, he joined Corporate finance division of Bumiputra Merchant Bankers Berhad and left the bank in early 1995 as Senior Manager. Later he joined Damansara Realty Berhad as General Manager, Corporate Planning. Subsequently in the year 1999, he re-joined Bursa Malaysia Securities Berhad and took up various senior positions including that of Deputy Chief regulatory Officer, Group regulation. In May 2008, he joined BIMB Holdings Berhad (“BHB”) as the Group Managing Director/Chief Executive Officer. he is also a director of Bank Islam Malaysia Berhad and other subsidiaries within BHB Group.



enCIK JoHan aBDuLLaH

Pengarah Bukan eksekutif Bukan Bebas /non-Independent non-executive Director

Encik Johan Abdullah, berusia 56 tahun, adalah warganegara Malaysia dan merupakan Pengarah Bukan Eksekutif Bukan Bebas Takaful Malaysia dan telah dilantik pada 15 Ogos 2008. Beliau juga merupakan ahli Jawatankuasa Pemilihan, Jawatankuasa Risiko Lembaga Pengarah dan Jawatankuasa Ganjaran.

Encik Johan Abdullah, aged 56, is a Malaysian citizen and is a Non-Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 August 2008. He is also a member of the Nomination Committee, Board Risk Committee and Remuneration Committee.



Beliau memperolehi Ijazah Sarjana Muda Ekonomi (Kepujian) dari universiti Malaya pada tahun 1974 dan Sarjana Pentadbiran Perniagaan dan Sarjana Sastera dalam Ekonomi dari universiti Boston, amerika Syarikat, masing-masing pada tahun 1981 dan 1983. Beliau juga merupakan ahli bersekutu The Institute of Bankers, London.

Beliau memulakan kerjayanya di Bank Negara Malaysia (BNM) pada tahun 1974 dan memegang pelbagai jawatan seperti Eksekutif Kanan, Penyeliaan Perbankan; Setiausaha Sulit, Pejabat Gabenor, Eksekutif Kanan, Ekonomi; Penolong kepada Pengarah Eksekutif, South East asia Group IMf; di Washington, D.C amerika Syarikat; Pengurus, Ekonomi; Pengurus, Penyeliaan Perbankan; Timbalan Pengarah, Pelaburan; Timbalan Pengarah, Penyeliaan Perbankan; Pengarah, Penyeliaan Perbankan; Pengarah, Penyeliaan Insurans dan Pengarah, Pengawalan Insurans. Beliau telah dipinjamkan sebagai Pengarah urusan di Entrepreneurs rehabilitation fund (Erf) pada tahun 2002 sehingga 2004 dan seterusnya dipinjamkan sebagai Pengarah latihan dan Pentadbiran di The South East asian Central Banks research and Training Centre (SEaCEN) pada tahun 2004 sehingga persaraan beliau pada tahun 2007. Beliau juga merupakan ahli Lembaga Pengarah di Malaysian Insurance Institute (MII) dan ahli EXCO MII dari tahun 2000 sehingga 2002. Kini, beliau juga merupakan ahli Lembaga Pengarah Export-Import Bank of Malaysia Berhad.

Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri enam (6) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2012.

he obtained his Bachelor of Economics (honours) from the university of Malaya in 1974, and Master in Business Administration and Master of Arts in Economics from Boston university, uSa in 1981 and 1983 respectively. He is also an associate of The Institute of Bankers, London.

He started his career with Bank Negara Malaysia (BNM) in 1974 and assumed various positions such as Senior Executive, Banking Supervision; Private Secretary, Office of the Governor; Senior Executive, Economics; assistant to the Executive Director, South East asia Group IMf; in Washington, D.C. uSa; Manager, Economics; Manager, Banking Supervision; Deputy Director, Investment; Deputy Director, Banking Supervision; Director, Banking Supervision; Director, Insurance Supervision and Director, Insurance Regulation. He was seconded to the Entrepreneurs rehabilitation fund (Erf) as its Managing Director in 2002 until 2004 and then was seconded to The South East asian Central Banks research and Training Centre (SEaCEN) as its Director of Training and Administration from 2004 until his retirement in 2007. He was also a Board member of the Malaysian Insurance Institute (MII) and member of the EXCO of MII from 2000 until 2002. Currently, he is also a Board member of Export-Import Bank of Malaysia Berhad.

He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended six (6) Board of Directors’ meetings held during the financial year ended 31 December 2012.


enCIK ZaKarIa IsMaIL

Encik Zakaria Ismail, berusia 61 tahun, adalah warganegara Malaysia dan merupakan Pengarah Bukan Eksekutif Bebas Takaful Malaysia dan telah dilantik pada 15 Mei 2010. Beliau juga merupakan Pengerusi Jawatankuasa Ganjaran dan Jawatankuasa Risiko Lembaga Pengarah dan ahli Jawatankuasa Audit dan Jawatankuasa Pemilihan.

Encik Zakaria Ismail, aged 61, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2010. He is also the Chairman of the Remuneration Committee and Board Risk Committee and a member of Audit Committee and Nomination Committee.




Beliau memperolehi Sarjana Muda Ekonomi dalam Perakaunan dari universiti Malaya pada tahun 1976 dan merupakan ahli Institut Akauntan Malaysia (MIA).

Beliau memulakan kerjayanya pada tahun 1977 sebagai Akauntan Perbendaharaan di Jabatan Akauntan Negara (AG). Beliau telah memegang pelbagai jawatan di Jabatan AG antaranya sebagai Akauntan Kanan Perbendaharaan pada tahun 1982 dan Akauntan pada tahun 1984. Beliau telah dipinjamkan kepada Lembaga Letrik Sabah sebagai Timbalan Pengurus Besar (Kewangan) pada tahun 1987. Pada tahun 1993, beliau telah dilantik sebagai Timbalan Pengarah, Bahagian Perkhidmatan Operasi Pusat dan agensi (BPOPa) dan kemudiannya menjadi Pengarah BPOPa pada tahun 1995. Seterusnya, pada tahun 1999 beliau telah dilantik sebagai Pengarah, Bahagian Pengurusan Perakaunan Cawangan; pada tahun 2000 sebagai Timbalan Akauntan Negara Malaysia dan pada tahun 2003 sebagai Akauntan Negara Malaysia sehingga beliau bersara pada bulan Mac 2005.

Kini, beliau juga adalah Pengarah ECM libra financial Group Berhad, Syarikat Perumahan Negara Berhad dan Indah Water Konsortium Sdn Bhd.

Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu. Beliau tidak menghadiri mesyuarat Lembaga Pengarah sepanjang tahun kewangan berakhir 31 Disember 2012 kerana beliau dilantik menjadi ahli Lembaga Pengarah pada 1 Disember 2012 dan tiada mesyuarat Lembaga Pengarah diadakan dalam bulan Disember 2012.

he obtained his Bachelor of Economics in accounting from the university of Malaya in 1976 and is a member of the Malaysian Institute of Accountants (MIA).

He started his career in 1977 as Treasury Accountant at the Accountant General’s (AG) Department. He held various positions in the AG Department among others as the Senior Treasury Accountant in 1982 and Accountant in 1984. he was seconded to the Sabah Electricity Board as the Deputy General Manager (Finance) in 1987. In 1993, he was appointed as the Deputy Director of Central Operation and agency Services Division (BPOPa) and later he became the Director of BPOPa in 1995. In 1999, he then served as the Director of Branch Account Management Division, in 2000 as the Deputy Accountant General of Malaysia and in 2003 as the Accountant General of Malaysia until his retirement in March 2005.

Currently, he is also a Director of ECM libra financial Group Berhad, Syarikat Perumahan Negara Berhad and Indah Water Konsortium Sdn Bhd.

He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years. He did not attend Board of Directors’ meeting during the financial year ended 31 December 2012 as he was appointed to the Board on 1 December 2012 and no Board meeting was held in December 2012.


Y. BHG. DaTo’ oTHMan aBDuLLaH


Y. Bhg. Dato’ Othman Abdullah, berusia 64 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Takaful Malaysia pada 1 Disember 2012. Beliau juga merupakan ahli Jawatankuasa Audit.

Y. Bhg. Dato’ Othman Abdullah, aged 64, is a Malaysian citizen and was appointed on 1 December 2012 as an Independent Non-Executive Director of Takaful Malaysia. he is also a member of audit Committee.



Beliau memperolehi Ijazah Sarjana Muda Sastera dalam Syariah dari universiti al–azhar, Mesir pada tahun 1970, Sarjana Sastera dalam Pengajian Antarabangsa dari universiti Fairleigh Dickenson, Amerika Syarikat pada tahun 1973, Sarjana falsafah dalam Sains Politik dan Ijazah Doktor Falsafah dalam Sejarah dari universiti New York, Amerika Syarikat masing-masing pada tahun 1975 dan 1979.

Beliau memulakan kerjayanya pada tahun 1978 sebagai Pensyarah di Jabatan Syariah, Fakulti Pengajian Islam, universiti Kebangsaan Malaysia (uKM) sebelum dipinjamkan ke universiti Islam Antarabangsa (uIAM) dari tahun 1983 hingga 1984. Semasa di uKM, beliau telah dilantik sebagai Penyelaras bagi Pendidikan umum dari tahun 1981 hingga 1982. Pada tahun 1982, beliau berkhidmat sebagai Pemangku Ketua Jabatan Syariah. Beliau juga merupakan Penyelaras Program Diploma dan Sijil Pengajian Islam uKM sehingga tahun 1983. Beliau kembali ke uKM pada tahun 1984 sebagai Pensyarah di Jabatan Syariah sehingga tahun 1985. Kemudian beliau menjadi Pengarah Eksekutif Pusat rawatan Islam (MaIS) dari tahun 1996 hingga 1999. Kini, beliau merupakan Pengerusi Pusrawi Corporation Sdn Bhd dan ahli Majlis Perundingan Islam di Jabatan Perdana Menteri (JPM).

Beliau telah menghasilkan tulisan dalam bidang pendidikan, ekonomi, perbankan Islam dan perundangan Islam sebanyak 12 buah buku, 7 jilid terjemahan, 300 skrip tv dan 40 kertas kerja. Beliau juga dianugerahkan sebagai ‘Tokoh ulamak Bestari Negeri Selangor’ pada tahun 2000, ‘Tokoh Ma’al Hijrah Negeri Selangor’ pada tahun 2001 dan Ahli Majlis Agama Islam Negeri Selangor selama 21 tahun.

He graduated with a Bachelor of Arts degree in Shariah from the university of al-azhar, Egypt in 1970, a Master of arts in International Studies from Fairleigh Dickenson university, uSA in 1973, a Master of Philosophy in Political Sciences and a Doctor of Philosophy in History from New York university, uSA in 1975 and 1979 respectively.

He started his career in 1978 as a Lecturer at the Shariah Department, Faculty of Islamic Studies, universiti Kebangsaan Malaysia (uKM) prior to his secondment to the International Islamic university Malaysia (IIuM) from 1983 to 1984. Whilst with uKM, he was appointed as the Coordinator for the General Teachings from 1981 to 1982. In 1982, he served as the Acting Head of the Shariah Department. He was also the Programme Coordinator for Diploma and Certificate in Islamic Studies of uKM until 1983. He returned to uKM in 1984 as a Lecturer in the Shariah Department until 1985. he then became an Executive Director of Pusat rawatan Islam (MaIS) from 1996 to 1999. Currently, he is the Chairman of Pusrawi Corporation Sdn Bhd and a member of the Islamic Consultative Council in the Prime Minister’s Department.

He has produced writings in educational, economy, Islamic banking and Islamic law, a total of 12 books, 7 translation bindery, 300 tv scripts and 40 paper works. He was also awarded ‘Tokoh ulamak Bestari Negeri Selangor’ in 2000, ‘Tokoh Ma’al Hijrah Negeri Selangor’ in 2001 and a member of Religious Council of Selangor State for 21 years.

Profil Badan Penasihat Syariah

Shariah Advisory Body’s Profile

Y. BHG. Dr. aHMaD sHaHBarI @ soBrI saLaMon

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon, berusia 70 tahun, adalah warganegara Malaysia dan merupakan Pengerusi Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 1 Julai 1985.

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon, aged 70, is a Malaysian citizen and is the Chairman of the Shariah advisory Body (SaB) of Takaful Malaysia who was appointed on 1 July 1985.

Pengerusi /Chairman


Beliau telah memulakan kerjayanya sebagai guru sementara di Madrasah Mashhoor Islamiyah, Pulau Pinang dari tahun 1967 hingga 1970. Beliau kemudiannya berkhidmat sebagai Pegawai Penerangan sementara di Majlis Kebangsaan hal Ehwal agama Islam Malaysia mulai tahun 1971 hingga 1973; sebagai Pegawai hal Ehwal Islam di Bahagian hal Ehwal Islam, Jabatan Perdana Menteri dari tahun 1973 hingga 1977; sebagai Pegawai Perancangan Pendidikan ugama di Jabatan Kemajuan Masyarakat, Kementerian Pertanian dari tahun 1978 hingga 1980; sebagai Penolong Pengarah Dokumentasi di Bahagian hal Ehwal Islam, Jabatan Perdana Menteri mulai tahun 1980 hingga 1981 dan sebagai seorang Ketua Penolong Pengarah Pusat Penyelidikan Islam dari tahun 1981 hingga 1984. Beliau kemudiannya berkhidmat dengan Bank Islam Malaysia Berhad sebagai Koordinator Syariah merangkap Setiausaha Majlis Pengawasan Syariah Bank dari tahun 1984 hingga 2001. Beliau pernah berkhidmat sebagai Internal Research Fellow for the Centre of Fiqh Muamalat di Institut Perbankan dan Kewangan Islam Malaysia (IBFIM) dari 2 Januari 2001 hingga 30 Jun 2009.

Beliau kini merupakan Penasihat Syariah Ternama di Pusat Fiqh Muamalat berkuatkuasa dari 1 Julai 2009. Beliau juga adalah ahli Majlis Pengawasan Syariah Bank Islam Malaysia Berhad, ahli Jawatankuasa Panel Syariah Amanah Ikhtiar Malaysia, Pengerusi Jawatankuasa Penasihat Syariah BIMB Securities Sdn Bhd, Pengerusi Jawatankuasa Penasihat Syariah Persatuan Institusi-Institusi Perbankan Islam Malaysia dan Pengerusi Jawatankuasa Penasihat Syariah Kumpulan Wang Simpanan Pekerja. Sebelum dilantik sebagai ahli BPS Takaful Malaysia pada 1 Julai 2002, beliau adalah Setiausaha BPS Takaful Malaysia sejak ia ditubuhkan pada tahun 1985 hingga Disember 2001.

He started his career as a temporary teacher at Madrasah Mashhoor Islamiyah, Pulau Pinang from 1967 to 1970. He then served as a temporary Information Officer at the National Council for Islamic religious affairs Malaysia from 1971 to 1973; as an Islamic affairs Officer at the Islamic Affairs Division, the Prime Minister’s Department from 1973 to 1977; as the religious Education Planning Officer at the Community Development Department, Ministry of Agriculture from 1978 to 1980; as an Assistant Documentation Director at the Islamic Affairs Division, the Prime Minister’s Department from 1980 to 1981 and as a Chief Assistant Director of Islamic Research Centre from 1981 to 1984. He then served at Bank Islam Malaysia Berhad as Shariah Coordinator cum Secretary to the Bank’s Shariah Supervisory Council from 1984 to 2001. He was previously an Internal Research Fellow for the Centre of Fiqh Muamalat at Islamic Banking and Finance Institute Malaysia (IBFIM) from 2 January 2001 until 30 June 2009.

He is currently a Distinguished Shariah Advisor for the Centre of Fiqh Muamalat effective from 1 July 2009. He is also a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad, a member of the Shariah Panel of Amanah Ikhtiar Malaysia, the Chairman of the Shariah Advisory Committee of BIMB Securities Sdn Bhd, the Chairman of the Shariah Advisory Committee of the Association of Islamic Banking Institutions Malaysia and the Chairman of the Shariah Advisory Committee of the Employees Provident fund. Before being appointed as a member of the SAB of Takaful Malaysia on 1 July 2002, he was the Secretary of the SAB of Takaful Malaysia since its inception in 1985 to December 2001.



Y. BHG. usTaZ MoHD BaKIr HJ. Mansor

Y. Bhg. Ustaz Mohd Bakir Hj. Mansor, berusia 76 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia, dilantik pada 1 Julai 2002. Beliau memperolehi Shahadah ulya (Sijil Tertinggi) dari Kolej Islam Malaya pada tahun 1967.

Y. Bhg. Ustaz Mohd Bakir Hj. Mansor, aged 76, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysia, appointed on 1 July 2002. He obtained the Shahadah ulya (Highest Certificate) from Kolej Islam Malaya in 1967.

ahli /Member


Beliau memperolehi Ijazah Sarjana Muda undang-undang (ll.B) dari universiti Islam antarabangsa pada tahun 1992 dan Ijazah Sarjana Muda undang-undang (LL.B Syariah) pada tahun 1993. Pada tahun 1995, beliau memperolehi Sarjana undang-undang (LL.M) dari universiti Cambridge, England dan pada tahun 2005 beliau memperolehi Doktor falsafah dari universiti Harvard, Amerika Syarikat. Beliau juga memperolehi PostDoctorate Fellowship dari universiti Harvard pada tahun 2006.

Beliau memulakan kerjayanya dengan Tetuan Zain & Co. pada tahun 1993 sebagai Penolong Pegawai undang undang. Pada tahun 1995, beliau menyertai universiti Islam Antarabangsa sebagai Pensyarah. Kemudian beliau menjadi Penyelidik di united Nations dari tahun 1998 hingga 1999. Pada tahun 2002, beliau berkhidmat di universiti Harvard sebagai Teaching Fellow sehingga tahun 2003 dan PostDoctorate Fellow dan Teaching Assistant dari tahun 2005 hingga 2006.

Beliau kini merupakan rakan kongsi di firma guaman Zaid Ibrahim & Co. dan juga sebagai Pengarah di ZI Shariah advisory Sdn Bhd.

She graduated from the International Islamic university Malaysia with a Bachelor of Law (LL.B) degree in 1992 and a Bachelor of Law (LL.B Shariah) degree in 1993. In 1995, she obtained a Master in Law (LL.M) from the Cambridge university, England and in 2005, she obtained a Doctor of Philosophy from the Harvard university, uSA. She also obtained a PostDoctorate Fellowship from the Harvard university in 2006.

She started her career with Messrs. Zain & Co. in 1993 as assistant legal Officer. In 1995, she joined International Islamic university Malaysia as a Lecturer. After that, she became a Researcher at united Nations from 1998 until 1999. In 2002, she joined the Harvard university as a Teaching Fellow until 2003 and a PostDoctorate Fellow and Teaching Assistant from 2005 until 2006.

Currently she is a Partner at the law firm, Zaid Ibrahim & Co. as well as a Director at ZI Shariah advisory Sdn Bhd.



Y. BHG. Dr. aIDa oTHMan

Y. Bhg. Dr. Aida Othman, berusia 43 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 6 Mac 2008.

Y. Bhg. Dr. Aida Othman, aged 43, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysia who was appointed on 6 March 2008.

ahli /Member


Berkelulusan Ijazah Sarjana Muda Syariah (hons) dari universiti Malaya pada tahun 1987, Ijazah Sarjana dalam Ekonomi Islam dari universiti yarmouk, Jordan dan Doktor Falsafah (PhD) dalam Perbankan Islam dari universiti Islam Antarabangsa Malaysia masing-masing pada tahun 1996 dan 2007. Sekarang ini, beliau memegang jawatan Pengarah, Pusat Pemikiran dan Kefahaman Islam (CITu), universiti Teknologi MARA (uiTM), Shah Alam.

Beliau memulakan kerjayanya sebagai pensyarah di Pusat Pendidikan Islam, universiti Teknologi MARA (uiTM), Shah Alam pada tahun 1988. Beliau telah dilantik memegang beberapa jawatan pentadbiran seperti Koordinator Sains Sosial Islam, Ketua unit Zakat, Timbalan Pengarah, Pusat Pemikiran dan Kefahaman Islam (CITu) dan Pengarah, Institut Kajian Zakat Malaysia (IKaZ), universiti Teknologi Mara.

Beliau juga adalah ahli Jawatankuasa Penasihat Syariah Hong Leong Islamic Bank Malaysia, ahli jawatankuasa Penyelaras Kurikulum Program Muamalat, Takaful, Kewangan dan Perbankan Islam, Kementerian Pengajian Tinggi Malaysia, Ahli Senat universiti dan ahli Majlis Dekan Pengajian Islam, Institusi Pengajian Tinggi Awam Malaysia dan beberapa jawatankuasa lain di dalam dan luar universiti.

Beliau juga telah menulis dan membentangkan kertas kerja di peringkat nasional dan antarabangsa dan terlibat menjalankan penyelidikan dalam bidang ekonomi, perbankan dan kewangan Islam. Artikel beliau juga telah diterbitkan dalam jurnal tempatan dan antarabangsa.

He graduated from the university of Malaya in 1987, holding a Bachelor of Shariah (hons). he obtained his Master in Islamic Economics from the university of Yarmouk, Jordan and a Doctor of Philosophy (PhD) in Islamic Banking from the International Islamic university Malaysia in 1996 and 2007 respectively. Currently he is a Director of the Centre for Islamic Thought and understanding (CITu), universiti Teknologi MARA (uiTM), Shah Alam.

He joined universiti Teknologi MARA (uiTM), Shah Alam in 1988 as an academic staff at the Centre for Islamic Education. he was appointed to several administration posts such as Coordinator of Islamic Social Science, head of Zakat unit, Deputy Director, Centre for Islamic Thought and understanding (CITu) and Director of the Zakat research Institute of Malaysia (IKaZ), universiti Teknologi Mara.

He also serves as a member of Shariah Committee of Hong Leong Islamic Bank Malaysia, member of the Curriculum Review Committee for Muamalat, Takaful, Islamic Banking and Finance of the Ministry of Higher Education Malaysia, member of the Senate university, and member of the Dean Council of Islamic Studies, Higher Learning Institutions of Malaysia and several other committees inside and outside of the university.

He has written and presented papers at national and international seminars related to Islamic economics, Islamic banking and finance. His articles have also been published in local and international journals.



Y. BHG. Prof. MaDYa Dr. MuHaMaD raHIMI osMan

Y. Bhg. Prof. Madya Dr. Muhamad Rahimi Osman, berusia 52 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 12 Januari 2010.

Y. Bhg. Associate Prof. Dr. Muhamad Rahimi Osman, aged 52, is a Malaysian citizen and is a member of the Shariah advisory Body (SAB) of Takaful Malaysia who was appointed on 12 January 2010.

ahli /Member


Beliau memperolehi Diploma Pendidikan pada tahun 1977 dan Sarjana Muda dalam Pengajian Islam (Kepujian) pada tahun 1978 dari universiti Kebangsaan Malaysia. Beliau juga memperolehi Diploma Sains Pengurusan dari Institut Tadbiran Awam Negara (INTAN) pada tahun 1989. Beliau merupakan ahli British Institute of Management (MBIM) sejak tahun 1985.

Beliau memulakan kerjayanya pada tahun 1978 sebagai Penolong Pengarah dan kemudiannya menjadi Penolong Pengarah Kanan di Institut Dakwah dan latihan Islam (INDah) Bahagian hal Ehwal Islam (BahEIS), Jabatan Perdana Menteri. Beliau kemudian menjadi Atase ugama di Pejabat Pesuruhjaya Tinggi Malaysia di London selama tiga tahun sejak tahun 1982. Selepas pulang ke Malaysia pada tahun 1986, beliau dinaikkan pangkat sebagai Ketua Penolong Pengarah di BahEIS dan kemudiannya sebagai Ketua Bahagian Amar Ma’ruf dan Ketua Pendaftar Nikah, Cerai dan Rujuk di Jabatan Agama Islam Wilayah Persekutuan (JAWI). Pada tahun 1993, beliau bertugas sebagai Ketua Penolong Pengarah Ekonomi, Pentadbiran Sosial, Pusat Penyelidikan Islam. Pada tahun 1994, beliau merupakan Pengetua Darul Quran Jabatan Kemajuan Islam Malaysia (JAKIM) dan kemudiannya memegang pelbagai jawatan seperti Pengarah Bahagian Keluarga, Sosial dan Pengurusan Masjid (KESuMa), Pengarah Bahagian Penyelidikan, Timbalan Ketua Pengarah (Operasi) dan Ketua Pengarah masing-masing pada tahun 2000, 2003, 2004 dan 2007 sebelum beliau bersara pada 22 April 2011. Sepanjang tempoh menjadi Ketua Pengarah JAKIM, beliau juga bertindak sebagai Setiausaha Jawatankuasa Fatwa Kebangsaan.

Beliau juga pernah berkhidmat sebagai ahli Majlis Penasihat Syariah di Bank Negara Malaysia pada tahun 2008 sehingga tahun 2010. Kini, beliau merupakan ahli Lembaga Pengarah Institut Kefahaman Islam Malaysia (IKIM).

He graduated from universiti Kebangsaan Malaysia with a Diploma in Education in 1977 and a Bachelor of Islamic Studies (honours) in 1978. he also obtained a Diploma in Management Science from the National Institute of Public Administration (Institut Tadbiran Awam Negara (INTAN)) in 1989. He is a member of British Institute of Management (MBIM) since 1985.

He started his career in 1978 as an Assistant Director and later as Senior Assistant Director at the Institut Dakwah dan Latihan Islam (INDAH) of Islamic affairs Division (Bahagian hal Ehwal Islam (BahEIS)), Prime Minister’s Department. He then served as Atase ugama at the Malaysian High Commission’s office in London for three years from 1982. upon returning to Malaysia in 1986, he was promoted to Chief assistant Director in BahEIS and thereafter as the Chief of Amar Ma’ruf Division and Chief Registrar of Marriage, Divorce and Ruju’ at the Federal Territory Islamic Religious Department (Jabatan Agama Islam Wilayah Persekutuan (JAWI)). In 1993, he served as Chief assistant Director of Social, administration and Economy at the Islamic Research Center. In 1994, he served as Principal at the Darul Quran of the Malaysian Islamic Development Department (Jabatan Kemajuan Islam Malaysia (JAKIM)) and later assumed various positions such as Director of family, Social and Mosque Management Division (KESuMa), Director of research Division, Deputy Director General (Operation) and Director General of JAKIM in 2000, 2003, 2004 and 2007 respectively before his retirement on 22 April 2011. He also served as Secretary to the National Fatwa Committee while serving as Director General of JAKIM.

He was also previously a member of the Shariah Advisory Council of Bank Negara Malaysia from 2008 until 2010. He is currently a Board member of the Institute of Islamic understanding Malaysia (Institut Kefahaman Islam Malaysia (IKIM)).



Y. BHG. DaTo’ Wan MoHaMaD DaTo’ sHeIKH aBDuL aZIZ

Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz, berusia 60 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 1 Jun 2011.

Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz, aged 60, is a Malaysian citizen and is a member of the Shariah advisory Body (SAB) of Takaful Malaysia who was appointed on 1 June 2011.

ahli /Member


Y. BHG. DaTo’ Wan MoHaMaD DaTo’ sHeIKH aBDuL aZIZ

Management CommitteeJawatankuasa Pengurusan

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3

2

4

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil

Pengarah urusan Kumpulan / Group Managing Director

encik Lee Hin sze Ketua Pegawai Kewangan / Chief financial Officer

Puan azian Kassim Ketua Pegawai Pelaburan / Chief Investment Officer

encik Mohamad asri Hj. Yusoff Setiausaha Syarikat/Pengurus Besar, hal Ehwal Korporat / Company Secretary/General Manager, Corporate Affairs

1

2

3

4


Jawatankuasa Pengurusan

encik nazrul Hisham abdul Hamid Pengurus Besar, Operasi / General Manager, Operations

encik Leem Why Chong Pengurus Besar, Aktuari & Aktuari Dilantik / General Manager, Actuarial & Appointed

Actuary

Puan norazlin Mohd Dahari Pengurus Besar, Jualan Korporat / General Manager, Corporate Sales

encik Mohd suhaimi ahmad Pengurus Besar, Agensi Runcit / General Manager, Retail Agency

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6

7

8

5

7

6

8

Management Committee




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11

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12

Puan shuhaibahtulaslamiah Hurmuzan Pengurus Besar, Sumber Manusia / General Manager, Human Resource

encik Patrick Wong Chang Yang Ketua Pegawai Informasi / Chief Information Officer

encik Mark anthony nathan Pengurus Besar, Bankatakaful / General Manager, Bancatakaful

Cik Leong Chee Wan Penolong Pengurus Besar, Operasi –

Takaful Keluarga/ Bankatakaful/ Logistik / assistant General Manager, Operations –

Family Takaful/ Bancatakaful/ Logistic

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12




Puan Haniza filzah Hayani abu Haniffa Penolong Pengurus Besar, Audit Dalaman / Assistant General Manager, Internal Audit

encik Wahizan abdul Wahid Penolong Pengurus Besar, Pematuhan &

Pengurusan Risiko / Assistant General Manager, Compliance &

Risk Management

Puan Mala Patmarajah Ketua, Komunikasi Korporat / Head of Corporate Communications

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Audit Committee ReportLaporan Jawatankuasa Audit

The Board of Directors of Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) is pleased to present the Audit Committee Report for the financial year under review. The Audit Committee (“Committee”) was established on 6 March 1990 to appraise Takaful Malaysia’s financial structure, internal control system, strategic planning, implementation of audit function and to propose applicable decisions in ensuring a high standard of corporate responsibility, integrity and accountability to shareholders in line with the corporate governance and disclosure standards expected from that of a public listed company in Malaysia.

MeMBersHIP anD MeeTInGs

The Committee currently comprises four (4) members, all of whom are Independent Non-Executive Directors. The details of members and meetings held during the financial year ended 31 December 2012 are as follows:

Name of Audit Committee Members

No. of Meetings

Held Attended

Encik Mahadzir azizan (Chairman) (Senior Independent Non-Executive Director)

9 9

Puan rozaida Omar (Non-Independent Non-Executive Director) (Member up to 30 November 2012)

8 8

Y. Bhg. Dato’ Sulaiman Mohd Yusof (Independent Non-Executive Director)

9 9

Encik Zakaria Ismail (Independent Non-Executive Director)

9 9

y. Bhg. Dato’ Othman abdullah (Independent Non-Executive Director) (Appointed on 1 December 2012)

1 1

Lembaga Pengarah Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) dengan berbesar hati membentangkan Laporan Jawatankuasa Audit bagi tahun kewangan yang dikaji. Jawatankuasa Audit (“Jawatankuasa”) telah ditubuhkan pada 6 Mac 1990 untuk menilai struktur kewangan, sistem kawalan dalaman, perancangan strategik, pelaksanaan fungsi audit Takaful Malaysia dan untuk mencadangkan keputusan yang boleh dilaksanakan bagi memastikan piawaian tanggungjawab korporat, kewibawaan dan kebertanggungjawaban kepada para pemegang saham yang tinggi, selaras dengan piawaian urus tadbir dan pendedahan yang dikehendaki daripada sebuah syarikat senarai awam di Malaysia.

KeaHLIan Dan MesYuaraT

Jawatankuasa kini terdiri daripada empat (4) orang ahli, di mana kesemuanya adalah Pengarah Bukan Eksekutif Bebas. Maklumat terperinci mengenai ahli dan mesyuarat yang diadakan sepanjang tahun kewangan berakhir 31 Disember 2012 adalah seperti berikut:

Nama Ahli Jawatankuasa Audit

Bil. Mesyuarat

Diadakan Dihadiri

Encik Mahadzir azizan (Pengerusi) (Pengarah Bukan Eksekutif Bebas Kanan)

9 9

Puan rozaida Omar (Pengarah Bukan Eksekutif Bukan Bebas) (Ahli sehingga 30 November 2012)

8 8

Y. Bhg. Dato’ Sulaiman Mohd Yusof(Pengarah Bukan Eksekutif Bebas)

9 9

Encik Zakaria Ismail(Pengarah Bukan Eksekutif Bebas)

9 9

y. Bhg. Dato’ Othman abdullah(Pengarah Bukan Eksekutif Bebas)(Dilantik pada 1 Disember 2012)

1 1


Puan rozaida Omar dan y. Bhg. Dato‘ Othman abdullah adalah ahli-ahli Institut akauntan Malaysia (“MIa”). Oleh itu, Takaful Malaysia telah mematuhi Perenggan 15.09(1)(c)(i) Keperluan Penyenaraian Pasaran utama (“Keperluan Penyenaraian”) Bursa Malaysia Securities Berhad (“Bursa Malaysia”) yang menggariskan bahawa sekurang-kurangnya seorang (1) ahli Jawatankuasa mestilah merupakan ahli MIA.

Jawatankuasa telah bermesyuarat sebanyak sembilan (9) kali pada tahun kewangan ini. Mesyuarat tersebut telah disusun dan dijalankan dengan sewajarnya melalui penggunaan agenda yang diedarkan kepada ahli terlebih dahulu dengan notis yang mencukupi. Pengarah urusan Kumpulan, Ketua Pegawai Kewangan dan Ketua Audit Dalaman selalunya menghadiri mesyuarat tersebut. Dalam tahun kewangan berakhir 31 Disember 2012, Pengarah urusan Kumpulan dan Ketua Audit Dalaman/ Penolong Pengurus Besar, Audit Dalaman menghadiri kesemua mesyuarat yang diadakan, manakala Ketua Pegawai Kewangan menghadiri 7 daripada 9 mesyuarat yang diadakan.

TerMa ruJuKanKomposisi

Ahli Jawatankuasa hendaklah dilantik oleh Lembaga Pengarah daripada kalangan mereka dan hendaklah terdiri daripada sekurang-kurangnya tiga (3) orang ahli, di mana kesemuanya hendaklah terdiri dari Pengarah Bukan Eksekutif dengan majoritinya adalah Pengarah Bebas. Seorang Pengarah Bukan Eksekutif Bebas hendaklah merupakan ahli yang memenuhi keperluan seperti yang diperuntukkan dalam Keperluan Penyenaraian Bursa Malaysia dan garis panduan Bank Negara Malaysia (“BNM”).

Sekurang-kurangnya seorang (1) ahli Jawatankuasa:1) mestilah merupakan ahli MIA; atau2) jika beliau bukan ahli MIA, beliau mestilah mempunyai

pengalaman bekerja sekurang-kurangnya selama tiga (3) tahun dan:-(a) beliau mestilah lulus peperiksaan yang dinyatakan dalam

Bahagian I Jadual Pertama Akta Akauntan 1967; atau(b) beliau mestilah merupakan ahli salah sebuah persatuan

akauntan yang dinyatakan dalam Bahagian II Jadual Pertama Akta Akauntan 1967; atau

3) memenuhi keperluan-keperluan lain yang digariskan atau diluluskan oleh Bursa Malaysia.

Ahli Jawatankuasa hendaklah melantik Pengerusi daripada kalangan mereka yang merupakan seorang Pengarah Bukan Eksekutif Bebas. Sekiranya seorang ahli Jawatankuasa meletak jawatan, meninggal dunia atau atas sebarang sebab tidak lagi menjadi ahli sehingga menyebabkan bilangan ahli kurang daripada tiga (3) orang, maka Lembaga Pengarah hendaklah melantik ahli baru dalam bilangan yang diperlukan untuk mencukupkan bilangan minimum ahli kepada tiga (3) orang dalam tempoh tiga (3) bulan dari peristiwa tersebut. Pengarah gantian tidak boleh dilantik sebagai ahli Jawatankuasa.

Puan rozaida Omar and y. Bhg. Dato’ Othman abdullah are members of the Malaysian Institute of Accountants (“MIA”). Thus, Takaful Malaysia complies with Paragraph 15.09(1)(c)(i) of the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) which stipulate that at least one (1) member of the Committee must be a member of the MIA.

The Committee met nine (9) times during the financial year. The meetings were appropriately structured and conducted through the use of agenda which were distributed to members with sufficient notification. The Group Managing Director, the Chief financial Officer and the Chief Internal Auditor normally attend the meetings. During the financial year ended 31 December 2012, the Group Managing Director and the Chief Internal Auditor/Assistant General Manager, Internal Audit attended all the meetings held, while the Chief Financial Officer attended 7 out of 9 meetings held.

TerM of referenCeComposition

The members of the Committee shall be appointed by the Board from amongst their numbers and shall comprise at least three (3) members, all of whom must be Non-Executive Directors with majority of them shall be Independent Directors. an Independent Non-Executive Director shall be the one who fulfils the requirements as provided in the Bursa Malaysia Listing Requirements and the guidelines of Bank Negara Malaysia (“BNM”).

At least one (1) member of the Committee:1) must be a member of the MIA; or2) if he is not a member of the MIA, he must have at least three (3)

years’ working experience and:-(a) he must have passed the examinations specified in Part I of the

First Schedule of the Accountants Act 1967; or(b) he must be a member of one of the associations of accountants

specified in Part II of the First Schedule of the Accountants Act 1967; or

3) fulfils such other requirements as prescribed or approved by Bursa Malaysia.

The members of the Committee shall elect a Chairman from amongst their numbers who shall be an Independent Non-Executive Director. If a member of the Committee resigns, dies or for any reason ceases to be a member with the result that the number of members are reduced below three (3), the Board shall within three (3) months of that event, appoint such number of new members as may be required to make up the minimum number of three (3) members. No alternate Director can be appointed as a member of the Committee.

Audit Committee Report

Laporan Jawatankuasa Audit




Lembaga Pengarah hendaklah mengkaji semula tempoh perkhidmatan dan prestasi Jawatankuasa Audit dan setiap ahlinya sekurang-kurangnya setiap tiga (3) tahun sekali bagi memastikan Jawatankuasa dan ahlinya telah menjalankan tugas-tugas mereka berdasarkan terma rujukan.

Korum dan Prosedur Jawatankuasa

Mesyuarat hendaklah diadakan sekurang-kurangnya empat (4) kali setahun atau dengan lebih kerap, mengikut keperluan.

Bagi membentuk korum mesyuarat, majoriti ahli yang hadir mestilah merupakan Pengarah Bukan Eksekutif Bebas. Sekiranya Pengerusi tidak hadir, ahli-ahli yang hadir hendaklah melantik seorang Pengerusi bagi mesyuarat tersebut daripada kalangan ahli-ahli yang hadir.

Setiausaha Syarikat hendaklah bertindak sebagai Setiausaha Jawatankuasa. Atas persetujuan Pengerusi, Setiausaha hendaklah merangka agenda yang akan diedarkan kepada ahli Jawatankuasa bersama-sama dengan kertas sokongan yang berkaitan dalam tempoh yang berpatutan sebelum setiap mesyuarat. Setiausaha hendaklah mengedarkan minit mesyuarat kepada semua ahli Jawatankuasa.

Jawatankuasa boleh, apabila dianggap perlu, menjemput ahli Lembaga Pengarah lain dan/atau ahli Pengurusan Kanan untuk menghadiri mesyuarat Jawatankuasa.

Jawatankuasa ini hendaklah bermesyuarat dengan juruaudit luar sekurang-kurangnya dua (2) kali setahun, untuk membincangkan sebarang perkara dengan Jawatankuasa tanpa kehadiran mana-mana ahli eksekutif Lembaga Pengarah dan Pengurusan Kanan. Pengerusi Jawatankuasa akan mengadakan mesyuarat untuk mempertimbangkan sebarang perkara yang pihak juruaudit luar percaya perlu di bawa kepada perhatian para Pengarah atau pemegang saham.

Jawatankuasa hendaklah mengatur prosiding mesyuaratnya, dengan mengambil kira konvensyen biasa berhubung perkara tersebut.

Kuasa

Jawatankuasa diberi kuasa oleh Lembaga Pengarah untuk menyiasat sebarang perkara dalam terma rujukannya. Jawatankuasa juga diberi kuasa untuk mendapatkan sebarang maklumat yang diperlukan daripada mana-mana kakitangan dan semua kakitangan dikehendaki memberi kerjasama terhadap sebarang permintaan yang dibuat oleh Jawatankuasa.

Jawatankuasa hendaklah mempunyai akses penuh dan tanpa had kepada sebarang maklumat berkaitan Kumpulan dan hendaklah mempunyai sumber yang diperlukan untuk melaksanakan tugasnya. Jawatankuasa boleh mendapatkan nasihat perundangan atau profesional bebas luar lain yang dianggap perlu, dengan perbelanjaan ditanggung oleh Takaful Malaysia.

The Board shall review the term of office and performance of the Committee and each of its members at least once every three (3) years to ensure the Committee and members have carried out their duties in accordance with their terms of reference.

Quorum and Committee’s Procedures

Meetings shall be conducted at least four (4) times annually or more frequently as circumstances dictate.

In order to form a quorum for the meeting, the majority of members present must be Independent Non-Executive Directors. In the absence of the Chairman, the members present shall elect a Chairman for the meeting from amongst the members present.

The Company Secretary shall be the Secretary of the Committee. The Secretary, in concurrence with the Chairman, shall draw up an agenda, which shall be circulated together with relevant support papers within reasonable time prior to each meeting to the members of the Committee. The Secretary shall circulate the minutes of meetings to all members of the Committee.

The Committee may, as and when deemed necessary, invite other Board members and/or Senior Management members to attend the Committee meetings.

The Committee shall, at least twice (2) a year, meet with the external auditors to discuss any matter with the Committee without the presence of any executive members of the Board and Senior Management. The Chairman of the Committee shall convene a meeting of the Committee to consider any matter which the external auditors believe should be brought to the attention of the Directors or shareholders.

The Committee shall regulate the manner of proceedings of its meetings, having regard to normal conventions on such matter.

authority

The Committee is authorised by the Board to investigate any matter within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are required to cooperate with any request made by the Committee.

The Committee shall have full and unrestricted access to any information pertaining to the Group. The Committee shall have the resources that are required to perform its duties. The Committee can obtain, at the expense of Takaful Malaysia, external legal or other independent professional advice it considers necessary.



Jawatankuasa hendaklah mempunyai saluran komunikasi secara langsung dengan juruaudit dalaman dan juruaudit luar, kakitangan pengurusan risiko dan dengan Pengurusan Kanan Kumpulan dan boleh mengadakan mesyuarat dengan juruaudit luar, juruaudit dalaman atau kedua-duanya sekali, tanpa dihadiri oleh para pengarah dan kakitangan Syarikat, bila-bila dianggap perlu.

Sekiranya Jawatankuasa berpendapat bahawa sebarang perkara yang dilaporkan olehnya kepada Lembaga Pengarah masih belum diselesaikan dengan memuaskan sehingga menyebabkan pelanggaran Keperluan Penyenaraian Bursa Malaysia, Jawatankuasa hendaklah melaporkan dengan segera perkara tersebut kepada Bursa Malaysia.

Tugas dan Tanggungjawab

Objektif utama Jawatankuasa adalah untuk menyediakan pengawasan bebas laporan kewangan Takaful Malaysia dan sistem kawalan dalaman serta memastikan semakan dan keseimbangan di dalam Takaful Malaysia.

Oleh yang demikian, tugas dan tanggungjawab Jawatankuasa adalah termasuk perkara-perkara berikut:

• mengkaji dengan juruaudit luar dan melaporkan kepada Lembaga Pengarah, skop dan pelan audit, termasuk sebarang perubahan kepada skop yang dirancang bagi pelan audit luar dan penilaian bagi sistem kawalan dalaman.

• mengkaji kecukupan skop dan pelan audit dalaman, fungsi-fungsi, daya saing dan sumber fungsi audit dalaman dan sama ada ianya mempunyai kuasa diperlukan untuk menjalankan tugas.

• mengkaji laporan audit dalaman dan luar bagi memastikan supaya tindakan segera dan sewajarnya diambil oleh pihak Pengurusan terhadap kekurangan utama dalam kawalan atau prosedur yang telah dikenal pasti dan dilaporkan kepada Lembaga Pengarah.

• mengkaji penemuan audit utama dan tindakan Pengurusan sepanjang tahun dengan pihak Pengurusan, juruaudit luar dan juruaudit dalaman termasuk status syor-syor audit yang terdahulu.

• mengkaji kebebasan dan objektif juruaudit luar dan perkhidmatan mereka, termasuk perkhidmatan bukan audit dan yuran profesional, untuk memastikan keseimbangan yang betul antara objektif dan nilai untuk wang.

The Committee shall have direct communication channels with the internal and external auditors, the risk management personnel and with Senior Management of the Group and shall be able to convene meetings with the external auditors, the internal auditors or both, excluding the attendance of other directors and employees of the Company, whenever deemed necessary.

Where the Committee is of the view that a matter reported by it to the Board has not been satisfactorily resolved resulting in a breach of Bursa Malaysia Listing Requirements, the Committee shall promptly report such matter to the Bursa Malaysia.

Duties and responsibilities

The primary objective of the Committee is to provide an independent oversight of Takaful Malaysia’s financial reporting and internal control system and ensuring checks and balances within Takaful Malaysia.

Therefore, the duties and responsibilities of the Committee include the followings:

• to review with the external auditor and report to the Board, the audit scope and plan, including any changes to the planned scope of the external audit plan and evaluation of the system of internal control.

• to review the adequacy of the internal audit scope and plan, functions, competency and resources of the internal audit functions and that it has the necessary authority to carry out its work.

• to review the external and internal audit reports to ensure that appropriate and prompt remedial action is taken by Management on major deficiencies in controls or procedures that are identified and reported to the Board.

• to review the major audit findings and Management’s response during the year with Management, external auditors and internal auditors, including the status of previous audit recommendations.

• to review the independence and objectivity of the external auditors and their services, including non-audit services and the professional fees, so as to ensure a proper balance between objectivity and value for money.

• to review the appointment, performance, audit fees and any question regarding the resignation or dismissal of external auditors before making recommendations to the Board.




• mengkaji pelantikan, prestasi, yuran audit dan sebarang persoalan berhubung peletakan jawatan atau pemecatan juruaudit luar sebelum memberi cadangan kepada Lembaga Pengarah.

• mengkaji keputusan suku tahunan dan penyata kewangan akhir tahun, sebelum kelulusan Lembaga Pengarah dengan menumpu terutamanya kepada:

- perubahan atau pelaksanaan dasar dan praktis perakaunan utama;

- pelarasan ketara dan peristiwa penting dan luar biasa timbul dari audit;

- andaian perniagaan berterusan; dan- pematuhan kepada standard kewangan, Bursa Malaysia dan

keperluan undang-undang.

• mengkaji penyata Pengerusi dan pemberitahuan urus tadbir korporat yang dibuat dalam Laporan Pengarah.

• membincangkan masalah dan persoalan yang wujud dari audit interim dan akhir dan sebarang perkara yang ingin dibincangkan oleh juruaudit (tanpa kehadiran pihak Pengurusan jika perlu).

• mengkaji Piagam Audit Dalaman, belanjawan dan komposisi kakitangan Bahagian Audit Dalaman.

• mengkaji kawalan dalaman, termasuk skop urus tadbir, prosedur, penemuan audit dalaman, dan mencadangkan tindakan yang perlu diambil oleh Pengurusan. Laporan audit dalaman tidak tertakluk kepada kebenaran daripada Ketua Pegawai Eksekutif/Pengarah urusan Kumpulan atau Pengarah Eksekutif.

• mengarah dan sekiranya wajar, menyelia sebarang projek atau siasatan khas jika perlu, dan mengkaji laporan siasatan berkenaan sebarang penyalahgunaan, penipuan dan kecurian yang besar.

• memastikan akaun disediakan tepat pada masanya dan dengan cara yang tepat bagi tujuan pengawalseliaan, pengurusan dan laporan umum, dengan ulasan yang selalu dijalankan terhadap kecukupan peruntukan yang telah dibuat.

• mengkaji sebarang urusniaga pihak berkaitan dan situasi konflik kepentingan yang mungkin timbul dalam Syarikat atau Kumpulan, termasuk sebarang urusniaga, prosedur atau tatacara yang menimbulkan persoalan terhadap kewibawaan pihak Pengurusan.

• memastikan bahawa isu-isu penyeliaan yang dibangkitkan oleh Bank Negara Malaysia diselesaikan tepat pada masanya.

• melaksanakan sebarang fungsi lain yang mungkin dipersetujui oleh Lembaga Pengarah.

• to review the quarterly and year end financial statements, before the approval by the Board, focusing particularly on:

- changes in or implementation of major accounting policy and practice;

- significant adjustments and unusual event arising from the audit;

- the going concern assumption; and - compliance with accounting standards, Bursa Malaysia and

other legal requirements.

• to review the Chairman’s statement and corporate governance disclosures made in the Directors’ Report.

• to discuss problems and reservations arising from the interim and final audits, and any matter the auditor may wish to discuss (in the absence of Management where necessary).

• to review the Internal Audit Charter, budget and staffing of the Internal Audit Division.

• to review internal controls, including the scope of the internal audit governance, procedures, findings, and recommend action to be taken by Management. The internal audit reports should not be subject to the clearance of the Chief Executive Officer/Group Managing Director or Executive Directors.

• to direct and where appropriate supervise any special projects or investigation considered necessary, and review investigation report on any major defalcation, frauds and thefts.

• to ensure that the accounts are prepared in a timely and accurate manner for regulatory, management and general reporting purposes, with regular reviews carried out on the adequacy of provisions made.

• to review any related party transaction and conflict of interest situation that may arise within the Company or the Group, including any transaction, procedure or course of conduct that raises questions of management integrity.

• to ensure that supervisory issues raised by Bank Negara Malaysia are resolved in a timely manner.

• to perform any other functions as may be agreed by the Board.




rInGKasan aKTIVITI-aKTIVITI JaWaTanKuasa

Aktiviti-aktiviti yang telah dijalankan oleh Jawatankuasa sepanjang tahun kewangan yang dikaji termasuk:

• Mengkaji dan memantau dengan juruaudit luar, keputusan dan perkembangan audit bagi tahun kewangan berakhir 31 Disember 2011, laporan audit dan surat Pengurusan, termasuk tindakan Pengurusan berkaitannya.

• Berbincang mengenai pelantikan semula juruaudit luar bagi tahun kewangan berakhir 31 Disember 2012 dan menilai kesesuaian dan kebebasan mereka untuk pelantikan semula.

• Mengkaji skop kerja dan rancangan audit juruaudit luar bagi tahun kewangan berakhir 31 Disember 2012. Sebelum audit dijalankan, wakil-wakil juruaudit luar telah membentangkan strategi dan rancangan audit.

• Berbincang mengenai yuran audit yang perlu dibayar kepada juruaudit luar.

• Berbincang dengan juruaudit luar berhubung sebarang perkara yang memerlukan perhatian Lembaga Pengarah dan Pemegang Saham tanpa kehadiran ahli lembaga Pengarah Eksekutif dan pihak Pengurusan.

• Mengkaji Pelan Strategik Audit Dalaman bagi tahun kewangan 2013 dan 2014 (termasuk perancangan tenaga kerja, cadangan jadual latihan dan bidang-bidang utama/penting yang akan diaudit dalam tempoh dua tahun akan datang).

• Mengkaji laporan audit dalaman dan audit khas (seperti laporan-laporan audit Kewangan, Operasi dan Teknologi Maklumat) yang menekankan isu-isu audit cadangan dan maklum balas pihak Pengurusan yang berkaitan. Berbincang dengan Pengurusan mengenai tindakan yang telah dan akan diambil untuk mempertingkatkan sistem kawalan dalaman berdasarkan peluang-peluang penambahbaikan yang telah dikenal pasti dalam laporan audit dalaman.

• Mengkaji laporan susulan oleh juruaudit dalaman mengenai status tindakan yang diambil oleh pihak Pengurusan terhadap cadangan yang diberikan dalam laporan audit.

• Mengkaji laporan susulan oleh juruaudit dalaman berhubung isu-isu yang dibangkitkan berdasarkan penemuan daripada pemeriksaan oleh BNM dan status tindakan yang diambil oleh pihak Pengurusan mengenai isu yang dibangkitkan oleh BNM.

suMMarY of aCTIVITIes of THe CoMMITTee

The activities undertaken by the Committee during the financial year under review include the following:

• Reviewed and monitored with the external auditors, the results and progress of the audit for the financial year ended 31 December 2011, the audit report and the Management letter, including Management’s response thereto.

• Discussed the re-appointment of external auditors for the financial year ended 31 December 2012 and assessed their suitainability and independence for re-appointment.

• Reviewed the external auditors’ scope of work and audit plans for the financial year ended 31 December 2012. Prior to the audit, representatives from the external auditors presented their audit strategy and plan.

• Discussed the audit fees payable to the external auditors.

• Discussed with external auditors any matters that warrant the Board and Shareholders’ attention without the presence of the member of the Executive Directors and Management.

• Reviewed the Internal Audit Strategic Plan for financial years 2013 and 2014 (including manpower planning, proposed training schedule and key areas to be reviewed within the next two years).

• Reviewed the internal audit reports and special audit reports (i.e. finance, Operational and IT audit reports) which highlighted the audit issues, recommendations and Management’s response thereto. Discussed with Management on actions taken or to be taken to improve the system of internal control based on improvement opportunities identified in the internal audit reports.

• Reviewed follow-up reports by the internal auditors on the status of actions taken by the Management on recommendations suggested in the audit reports.

• Reviewed follow-up reports by the internal auditors on BNM’s examination findings and status of actions taken by the Management on issues raised by BNM.




• Mengkaji laporan susulan oleh juruaudit dalaman berhubung isu yang dibangkitkan dalam surat Pengurusan oleh juruaudit luar dan status tindakan yang diambil oleh pihak Pengurusan mengenai isu tersebut.

• Mengkaji penyata kewangan Syarikat yang telah diaudit sebelum diserahkan kepada Lembaga Pengarah bagi pertimbangan dan kelulusan mereka. Kajian ini adalah untuk memastikan supaya penyata kewangan yang telah diaudit disediakan mengikut peruntukan Akta Syarikat 1965 dan piawaian perakaunan berkaitan yang diluluskan.

• Mengkaji laporan Pematuhan mengenai tahap pematuhan dengan keperluan Pihak Penguatkuasa, undang-undang dan Akta, termasuk Pelan Kerja Pematuhan bagi tahun 2012.

• Mengkaji pengumuman keputusan kewangan suku tahunan yang belum diaudit sebelum disyorkan kepada Lembaga Pengarah untuk kelulusan.

• Mengkaji urusniaga pihak yang berkaitan dalam Kumpulan.

• Menyediakan bimbingan ke atas penyediaan penyata pendedahan dalam Laporan Tahunan seperti Penyata urus Tadbir Korporat, Penyata Pengurusan Risiko dan Kawalan Dalaman dan Laporan Jawatankuasa Audit dalam mematuhi Keperluan Penyenaraian Bursa Malaysia dan Suruhanjaya Sekuriti.

• Mengkaji Laporan Tahunan Takaful myAl-Afdhal dan Laporan Tahunan Dana Berkaitan Pelaburan.

funGsI Dan aKTIVITI-aKTIVITI auDIT DaLaMan

Bahagian Audit Dalaman adalah bebas daripada aktiviti atau operasi unit-unit operasi lain dan melapor terus kepada Jawatankuasa Audit. Peranan utama bahagian ini adalah untuk menjalankan kajian sistem kawalan dalaman secara bebas, kerap dan sistematik supaya dapat memberi jaminan yang sewajarnya bahawa sistem tersebut mampu terus beroperasi secara berkesan dan memuaskan. Audit dalaman mengamalkan pendekatan berasaskan risiko dalam rancangan audit dan pemeriksaannya.

Adalah menjadi tanggungjawab Bahagian Audit Dalaman untuk menyediakan laporan bebas dan objektif kepada Jawatankuasa tentang status kawalan dalaman di pelbagai unit operasi dalam Kumpulan serta tahap pematuhan unit-unit tersebut terhadap dasar dan prosedur Kumpulan serta terhadap keperluan berkanun yang berkaitan.

• Reviewed follow-up reports by the internal auditors on external auditors’ findings as set out in the Management letter and status of actions taken by the Management on issues raised by the external auditors.

• Reviewed the audited financial statements of the Company prior to submission to the Board for their consideration and approval. The review was to ensure that the audited financial statements were drawn up in accordance with the provisions of the Companies Act 1965 and the applicable approved accounting standards.

• Reviewed the Compliance reports on the level of compliance with Regulators’ requirements, laws and Acts, including Compliance Work Plan for 2012.

• Reviewed the quarterly unaudited financial results announcements before recommending them for the Board’s approval.

• Reviewed related party transactions within the Group.

• Reviewed the disclosure statements in the Annual Report such as Corporate Governance Statement, Statement on Risk Management and Internal Control and Audit Committee Report in compliance with Bursa Malaysia Listing Requirements and Securities Commission.

• Reviewed the Takaful myAl-Afdhal Annual Report and Investment-Linked Funds Annual Report.

InTernaL auDIT funCTIon anD aCTIVITIes

The Internal Audit Division is independent of the activities or operations of other operating units and reports directly to the Audit Committee. The principal role of the division is to undertake independent regular and systematic reviews of the systems of internal controls so as to provide reasonable assurance that such systems continue to operate satisfactorily and effectively. The internal audit practices a risk-based approach in its audit plan and examination.

It is the responsibility of the Internal Audit Division to provide the Committee with independent and objective reports on the state of internal control of the various operating units within the Group and the extent of compliance of the units with the Group’s established policies and procedures as well as relevant statutory requirements.




Aktiviti-aktiviti berikut telah dijalankan oleh Bahagian Audit Dalaman dalam tahun kewangan yang dikaji:

• Melaksanakan peranan jaminan bebas dengan membuat ulasan kajian berjadual ke atas keberkesanan, kecekapan dan mekanisma kawalan ekonomi untuk mengutarakan risiko dan keutamaan dalam bidang operasi, kewangan, teknologi maklumat, pembangunan produk, pelaburan dan fungsi-fungsi strategik yang menggunapakai pendekatan audit berasaskan risiko seperti yang dinyatakan dalam Pelan Audit Rasmi dua tahun (Tahun Kewangan Berakhir 2011 dan 2012).

• Menyediakan jaminan yang munasabah ke atas tahap pematuhan polisi dan prosedur yang telah disediakan di samping keperluan statutori BNM dan badan-badan perundangan lain.

• Memberi khidmat nasihat kepada Pengurusan dan subsidiari Syarikat.

• Mencadangkan peningkatan ke atas proses perniagaan dan penambahbaikan bagi sistem kawalan dalaman yang sedia ada.

• Menjalankan audit susulan berhubung status tindakan yang diambil oleh Pengurusan berdasarkan cadangan yang dibuat dalam penemuan audit juruaudit dalaman, juruaudit luar, pegawai pemeriksa BNM dan lain-lain.

• Menjalankan semakan khas dan penyiasatan seperti yang diminta oleh Pengurusan Kanan dan pengesahan daripada Pengerusi Jawatankuasa Audit.

• Mengkaji semula kecukupan dan kesesuaian kawalan dalaman dan pendedahan risiko di dalam pakej produk baru berdasarkan semakan semula Rangka Kerja Pembangunan Produk.

• Menyediakan bimbingan dan nasihat kepada Jawatankuasa Pemandu Projek sebelum pelancaran produk baru dan lama.

• Menjalankan semakan ke atas penyediaan sistem teknologi maklumat, ujian dan penggunaan sebelum ianya dilaksanakan.

• Menjalankan audit ke atas perkakasan komputer, sistem operasi dan aplikasi serta rangkaian teknologi komunikasi maklumat (ICT) Takaful Malaysia.

• Menjadi pemerhati dalam tender dan proses pemilihannya dan dalam Jawatankuasa-jawatankuasa yang lain.

• Menyemak dan menyediakan bimbingan terhadap latihan Pengurusan Kesinambungan Perniagaan yang dijalankan.

The following activities were undertaken by the Internal Audit Division during the financial year under review:

• Executed independent assurance role by performing scheduled reviews on the effectiveness, efficiency and economical of control mechanism to address risks and concerns in the areas of operations, financial, information technology, product development, investment and strategic functions on a risk based audit approach as set out in the formalised Two-year audit Plan (fyE 2011 and 2012).

• Provided reasonable assurance on the extent of compliance with established policies and procedures as well as BNM statutory requirements and other regulatory bodies.

• Rendered advisory services to the Management of the Company and its subsidiaries.

• Recommended improvements to the business processes and enhancement to the existing system of internal controls.

• Conducted follow-up audit on status of actions taken by the Management on recommendations suggested in audit reports of internal auditors, external auditors, BNM examiners, etc.

• Carried out special reviews and investigations as requested by Senior Management and endorsement from the Audit Committee Chairman.

• Reviewed the adequacy and appropriateness of the internal controls and risk exposures in the new product packages based on the revised Product Development Framework (PDF).

• Provided guidance and advices to the Project Steering Committee for new and revised products before launching.

• Conducted reviews on IT system set-ups, tests and deployments before embarking into production.

• Conducted audit computer hardware, operating and application systems as well as the information communication technology (ICT) network of Takaful Malaysia.

• Participated in tender and selection process and other Committees in the capacity of an observer.

• Reviewed and provided guidance on the Business Continuity Management exercise conducted.




• Menyemak dan mengumpul data-data terkini Supervisory Concern sebelum diserahkan kepada Bank Negara Malaysia.

• Mengkaji semula aktiviti khidmat luar terhadap Syarikat.

• Membimbing Pengurusan dalam menyediakan Laporan Jawatankuasa Audit dan Penyata Kawalan Dalaman untuk dizahirkan dalam laporan Tahunan.

• Mengkaji Laporan Tahunan Takaful myAl-Afdhal dan Laporan Tahunan Dana Berkaitan Pelaburan.

Laporan daripada tugasan audit dikemukakan kepada pihak Pengurusan untuk perhatian dan tindakan pembetulan yang perlu seperti yang dicadangkan. Pihak Pengurusan bertanggungjawab memastikan tindakan pembetulan terhadap kelemahan yang dilapor dilaksanakan dalam jangka masa yang ditetapkan. Jumlah kos yang terbabit bagi mengekalkan fungsi Audit Dalaman yang dilakukan secara dalaman bagi tahun kewangan yang dikaji adalah lebih kurang RM2.0 juta di mana ia merangkumi sebahagian besarnya adalah gaji, elaun perjalanan dan penginapan dan elaun sara hidup bagi menjalankan tugasan audit.

• Reviewed and compiled the updates on the Supervisory Concerns prior to submission to Bank Negara Malaysia.

• Reviewed the outsourcing activities for the Company.

• Assisted Management in preparing the Audit Committee Report and Statement on Risk Management and Internal Control for disclosure in the Annual Report.

• Reviewed the Takaful myAl-Afdhal Annual Report and Investment-Linked Funds Annual Report.

Reports from the audit assignments are forwarded to the Management for attention and necessary corrective actions as recommended. The Management is responsible for ensuring that corrective actions on reported weaknesses are taken within the required time frame. The costs incurred in maintaining the Internal Audit function which is performed inhouse for the financial year under review was approximately RM2.0 million comprising mainly salaries, travelling and accommodation expenses and subsistence allowance for audit assignments.



The Board of Directors (“the Board”) of Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) continues to subscribe and fully support the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”) and is committed to ensure that the Principles and Recommendations are observed and practised throughout the Group so that the affairs of the Group are conducted with professionalism, accountability and integrity with the objective of safeguarding and enhancing shareholders’ value and financial performance of the Group.

The Board is pleased to report on the application of the Principles of the MCCG 2012 and the extent of compliance with the Recommendations of the MCCG 2012 as required under the MCCG 2012 and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia Listing Requirements”) during the financial year under review.

DIreCTors

The Board The Board is responsible for the overall corporate governance of the Group and is also entrusted with the responsibility of exercising reasonable care of the Company as well as Group’s resources in the best interests of its shareholders and in ensuring the proper conduct of business.

Board Meetings Board meetings are scheduled in advance at the beginning of a calendar year with additional meetings convened when necessary. Eight (8) Board meetings were held during the financial year under review with details of meetings’ attendance of each Director as follows:

Lembaga Pengarah Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) terus mematuhi dan menyokong sepenuhnya Kod urus Tadbir Korporat Malaysia 2012 (“MCCG 2012)”) dan sentiasa komited dalam memastikan supaya Prinsip-prinsip dan Cadangan-cadangan dipatuhi dan diamalkan oleh keseluruhan Kumpulan bagi membolehkan urus selia hal-ehwal Kumpulan dikendalikan secara profesional, bertanggungjawab dan berwibawa dengan objektif untuk melindungi dan mempertingkatkan nilai pelaburan pemegang saham dan prestasi kewangan Kumpulan.

Lembaga Pengarah dengan ini berbesar hati melaporkan pelaksanaan penggunaan Prinsip-prinsip MCCG 2012 dan sejauh mana Kumpulan telah mematuhi Cadangan-cadangan oleh MCCG 2012 sebagaimana yang ditetapkan menurut MCCG 2012 dan Keperluan Penyenaraian Pasaran utama Bursa Malaysia Securities Berhad (“Keperluan Penyenaraian Bursa Malaysia”) sepanjang tahun kewangan yang dikaji.

PenGaraH

Lembaga Pengarah Lembaga Pengarah bertanggungjawab terhadap keseluruhan aspek urus tadbir korporat Kumpulan dan juga diamanahkan dengan tanggungjawab dalam melaksanakan penjagaan yang sewajarnya ke atas Syarikat serta sumber-sumber Kumpulan bagi memelihara kepentingan para pemegang saham dan memastikan pengurusan perniagaan yang sewajarnya.

Mesyuarat Lembaga Pengarah Mesyuarat Lembaga Pengarah dijadualkan terlebih dahulu pada permulaan tahun kalendar dengan mesyuarat tambahan diadakan bila perlu. Lapan (8) mesyuarat Lembaga Pengarah telah diadakan pada tahun kewangan yang dikaji dengan butiran kehadiran setiap Pengarah seperti berikut:

Corporate Governance StatementPenyata Urus Tadbir Korporat


Corporate Governance Statement

Penyata Urus Tadbir Korporat

Nama / Kehadiran / Peratus (%) /Name Attendance Percentage (%)

Y. Bhg. Dato’ Paduka Ismee Ismail(Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director) 8/8 100

Y. Bhg. Dato’ Mohamed Hassan Md Kamil (Pengarah Eksekutif Bukan Bebas / Non-Independent Executive Director) 8/8 100

Puan rozaida omar (Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director) 7/8 88

encik Mahadzir azizan(Pengarah Bukan Eksekutif Bebas Kanan / Senior Independent Non-Executive Director) 8/8 100

Y. Bhg. Dato’ sulaiman Mohd Yusof (Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director) 8/8 100

encik Johan abdullah (Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director) 8/8 100

encik Zakaria Ismail(Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director) 6/8 75

Y. Bhg. Dato’ othman abdullah (Dilantik pada 1 Disember 2012 / Appointed on 1 December 2012) t/b t/b(Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director) n/a n/a

t/b – tidak berkenaan kerana mesyuarat tidak diadakan selepas tarikh pelantikan pada 1 Disember 2012 sehingga 31 Disember 2012.n/a – not applicable as the meeting was not held after the appointment date on 1 December 2012 until 31 December 2012.

The Board is satisfied with the level of time commitment given by the Directors towards fulfilling their roles and responsibilities as Directors of Takaful Malaysia as evidenced by the attendance record of the Directors at Board meetings, as set out in the above table.

All Directors have the backing of extensive work experience in various fields and therefore able to exercise independent judgement in order to discharge their duties.

Board CharterThe Board is guided by its Terms of Reference (“Charter”) which set out the roles and responsibilities of the Board. The Board will regularly review the Charter to keep it up to date with changes in regulations and best practices and ensure its effectiveness and relevance to the Board’s objectives.

Directors’ Code of ethicsThe Directors observe the code of ethics in accordance with the Company Directors’ Code of Ethics established by the Companies Commission of Malaysia.

Lembaga Pengarah berpuas hati dengan tahap komitmen masa yang diberikan oleh para Pengarah ke arah memenuhi peranan dan tanggungjawab mereka sebagai Pengarah Takaful Malaysia seperti yang tertera di dalam rekod kehadiran para Pengarah di dalam mesyuarat Lembaga Pengarah, sebagaimana yang dinyatakan dalam jadual di atas.

Semua Pengarah memiliki latar belakang pengalaman kerja yang luas dalam pelbagai bidang, dan dengan ini membolehkan mereka membuat pertimbangan yang sewajarnya dalam melaksanakan tugas mereka.

Piagam Lembaga PengarahLembaga Pengarah berpandu kepada Terma Rujukan (“Piagam”) yang menggariskan peranan dan tanggungjawab Lembaga Pengarah. Lembaga Pengarah akan mengkaji Piagam dari semasa ke semasa bagi memastikan ianya selari dengan perubahan dalam peraturan-peraturan dan amalan terbaik dan memastikan ianya berkesan dan relevan dengan objektif Lembaga Pengarah.

Kod etika Lembaga PengarahPara Pengarah mematuhi kod etika selaras dengan Kod Etika Pengarah Syarikat yang dibentuk oleh Suruhanjaya Syarikat Malaysia.


Board Balance and Independence of DirectorsDuring the financial year under review, the Board comprises the following:

Keseimbangan Lembaga Pengarah dan Kebebasan PengarahSepanjang tahun kewangan yang dikaji, Lembaga Pengarah terdiri daripada:

The above composition is in compliance with Bursa Malaysia Listing Requirements which require that one third (1/3) of Directors of Takaful Malaysia to be Independent Directors. One of the recommendations of the MCCG 2012 states that the Board must comprise a majority of Independent Directors where the Chairman of the Board is not an Independent Director. The Board deliberated on this matter and agreed for the number of Independent Directors to be maintained at 50% of the Board members as the Board feel that there is a need for a balanced Board members to ensure that the interest of the institutional investor i.e. Lembaga Tabung Haji, which is the ultimate major shareholder of Takaful Malaysia is protected.

The Board has adopted a nine-year policy for Independent Non-Executive Directors in august 2011 i.e. before the issuance of MCCG 2012. The tenure of all the four Independent Non-Executive Directors do not exceed a cumulative term of nine (9) years as recommended by the MCCG 2012. They continue to fulfill the definition of independence as set out in the Bursa Malaysia Listing Requirements. Therefore, since all the four Independent Non-Executive Directors are seeking re-appointment under Article 62 and 66A of the Company’s Articles of Association at forthcoming 28th AGM, the Board recommends and supports their proposed re-appointment.

The Corporate Governance Blueprint 2011 stated that the goal is for women participation on Boards to reach 30% by 2016 and the progress towards this goal will be monitored and assessed in 2013. Takaful Malaysia’s Board currently has one women member out of eight members (i.e. 12.5%) since May 2007 while the Shariah Advisory Body also has one women member out of five members (i.e. 20%) since March 2008.

Komposisi di atas mematuhi Keperluan Penyenaraian Bursa Malaysia yang mewajibkan satu pertiga (1/3) daripada para Pengarah Takaful Malaysia terdiri daripada Pengarah Bebas. Salah satu cadangan MCCG 2012 menyatakan bahawa Lembaga Pengarah mesti terdiri daripada majoriti Pengarah Bebas jika Pengerusi Lembaga Pengarah bukan merupakan seorang Pengarah Bebas. Lembaga Pengarah membincangkan mengenai perkara ini dan bersetuju bahawa bilangan Pengarah Bebas akan dikekalkan pada 50% daripada ahli-ahli Lembaga Pengarah kerana Lembaga Pengarah merasakan adanya keperluan keseimbangan ahli Lembaga Pengarah bagi memastikan kepentingan pelabur institusi iaitu Lembaga Tabung Haji, yang merupakan pemegang saham utama ’ultimate’ Takaful Malaysia dilindungi.

Lembaga Pengarah telah menerima pakai polisi sembilan tahun bagi Pengarah Bukan Eksekutif Bebas dalam bulan Ogos 2011 sebelum penerbitan MCCG 2012. Tempoh untuk semua empat orang Pengarah Bukan Eksekutif Bebas tidak melebihi tempoh kumulatif sembilan (9) tahun seperti yang disyorkan oleh MCCG 2012. Mereka terus memenuhi definisi bebas seperti yang dinyatakan di dalam Keperluan Penyenaraian Bursa Malaysia. Oleh itu, memandangkan semua empat Pengarah Bukan Eksekutif Bebas menawar pelantikan semula di bawah Artikel 62 dan 66A Tataurusan Pertubuhan Syarikat pada AGM yang ke-28 akan datang, Lembaga Pengarah mencadangkan dan menyokong cadangan pelantikan semula mereka.

Rangka Tindakan urus Tadbir Korporat 2011 menyatakan matlamat untuk mencapai 30% penyertaan wanita di dalam Lembaga Pengarah menjelang tahun 2016 dan kemajuan ke arah matlamat ini akan dipantau dan dinilai pada tahun 2013. Lembaga Pengarah Takaful Malaysia kini mempunyai seorang ahli wanita dari lapan ahli (iaitu 12.5%) sejak Mei 2007 manakala Badan Penasihat Syariah juga mempunyai seorang ahli wanita daripada lima orang ahli (iaitu 20%) sejak Mac 2008.



Nama / Komposisi / Peratus(%) /Name Composition Percentage (%)

Pengarah Eksekutif Bukan Bebas / Non-Independent Executive Director 1/8 12.5

Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Directors 3/8 37.5

Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Directors 4/8 50.0

* Komposisi di atas adalah selepas pelantikan Y. Bhg. Dato’ Othman Abdullah pada 1 Disember 2012.* The above composition is after the appointment of Y. Bhg. Dato’ Othman Abdullah on 1 December 2012.




The Board with their different backgrounds and specialisations, collectively bring with them a wide range of experience and expertise in areas such as finance, insurance, actuary, accounting, company secretarial, legal, management and banking. The profiles of the Directors are provided on pages 14 to 21 of the Annual Report. There is a clear division of responsibilities between the Chairman and the Group Managing Director to ensure that there is a balance of power and authority.

The roles of the Chairman and Group Managing Director are clearly defined with the Chairman being responsible for running the Board and lead the discussion at the Board level whilst the Group Managing Director is responsible for managing the Company and the Group as well as the implementation of the Board’s policies and decisions.

The Board has identified and appointed Encik Mahadzir azizan as a Senior Independent Non-Executive Director to whom concerns may be conveyed by shareholders and other stakeholders.

The Board promotes good corporate governance in the application of sustainability practices particularly through the corporate social responsibility initiatives/programs undertaken by the Company throughout the year.

Board Committees To enable the Board to discharge its duties effectively whilst enhancing business and operational efficacy, the Board delegates certain responsibilities to four (4) Board Committees, namely:

• audit Committee• Nomination Committee• remuneration Committee; and• Board risk Committee

All Committees have clear written terms of reference and the Board receives reports of their proceedings and deliberations. The Chairman of the various Committees will report to the Board the outcome of their meetings and such reports are incorporated in the minutes of the Board meeting.

The Committees’ membership are based on Directors’ skills and experience as well as their ability to add value to the Committees.

Lembaga Pengarah yang mempunyai pelbagai latar belakang dan kepakaran khusus, secara kolektifnya membawa bersama mereka pengalaman dan kepakaran yang luas dalam bidang-bidang seperti kewangan, insurans, aktuari, perakaunan, kesetiausahaan syarikat, perundangan, pengurusan dan perbankan. Profil ahli Lembaga Pengarah ada dibentangkan di muka surat 14 hingga 21 dalam Laporan Tahunan ini. Terdapat pembahagian yang jelas antara tanggungjawab Pengerusi dan Pengarah urusan Kumpulan bagi memastikan keseimbangan kuasa dan autoriti.

Peranan Pengerusi dan Pengarah urusan Kumpulan ditakrif dengan jelas di mana Pengerusi bertanggungjawab terhadap pengendalian Lembaga Pengarah dan menerajui perbincangan di peringkat Lembaga Pengarah sementara Pengarah urusan Kumpulan bertanggungjawab terhadap pengurusan Syarikat dan Kumpulan serta pelaksanaan dasar dan keputusan yang telah diputuskan oleh Lembaga Pengarah.

lembaga Pengarah telah mengenalpasti dan melantik Encik Mahadzir azizan sebagai Pengarah Bukan Eksekutif Bebas Kanan di mana sebarang kemusykilan boleh dirujuk oleh pemegang saham dan pihak berkepentingan lain.

Lembaga Pengarah menggalakkan urus tadbir korporat yang baik dalam penglibatan amalan kemampanan khususnya melalui inisiatif-inisiatif tanggungjawab sosial korporat / program yang dijalankan oleh Syarikat sepanjang tahun.

Jawatankuasa Lembaga Pengarah Dalam memastikan Lembaga Pengarah melaksanakan tugas mereka dengan lebih berkesan di samping meningkatkan perniagaan dan kecekapan operasi, Lembaga Pengarah mengagihkan tanggungjawab tertentu kepada empat (4) Jawatankuasa Lembaga Pengarah, iaitu:

• Jawatankuasa audit• Jawatankuasa Pemilihan• Jawatankuasa Ganjaran; dan• Jawatankuasa risiko lembaga Pengarah

Setiap Jawatankuasa mempunyai terma rujukan bertulis yang jelas dan Lembaga Pengarah menerima laporan bagi setiap persidangan dan pertimbangan Jawatankuasa tersebut. Pengerusi bagi setiap Jawatankuasa akan melaporkan kepada Lembaga Pengarah setiap keputusan dari mesyuarat yang dijalankan dan laporan tersebut akan dimasukkan ke dalam minit Mesyuarat Lembaga Pengarah.

Keahlian Jawatankuasa adalah bergantung kepada kemahiran dan pengalaman seseorang Pengarah serta kebolehan mereka memberi nilai tambah kepada Jawatankuasa.


shariah advisory Body The Shariah Advisory Body is entrusted by the Board to ensure that the Group’s operations and products offered are in accordance with the Shariah. All matters which require the Shariah Advisory Body’s opinion and decision are deliberated at Shariah Advisory Body meetings with the attendance of the Management and representatives from the Shariah Division. Thereon, the said matters are brought to the attention of the Board for an informed decision making.

The Shariah Advisory Body consists of five (5) members, all of whom have the necessary experiences and expertise in their respective fields. The current Chairman of the Shariah Advisory Body is Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon. The Shariah advisory Body meets six (6) times during the financial year under review with details of meetings’ attendance of each member as follows:

Badan Penasihat syariah Badan Penasihat Syariah telah diberi kepercayaan oleh Lembaga Pengarah bagi memastikan operasi dan produk yang ditawarkan oleh Kumpulan adalah berlandaskan Syariah. Kesemua perkara yang memerlukan pandangan dan keputusan Badan Penasihat Syariah akan dibentangkan di dalam mesyuarat Badan Penasihat Syariah di mana ianya juga dihadiri oleh pihak Pengurusan dan wakil dari Bahagian Syariah. Kemudian, perkara tersebut akan dibawa kepada Lembaga Pengarah untuk memaklumkan keputusan yang telah dibuat.

Badan Penasihat Syariah terdiri daripada lima (5) orang ahli di mana kesemuanya mempunyai pengalaman dan kepakaran yang diperlukan di dalam bidang masing-masing. y. Bhg. Dr. ahmad Shahbari @ Sobri Salamon merupakan Pengerusi Badan Penasihat Syariah sekarang. Enam (6) mesyuarat Badan Penasihat Syariah telah diadakan sepanjang tahun kewangan yang dikaji dengan butiran kehadiran setiap ahli seperti berikut:

Whistle Blowing Policy and fraud & Integrity Policy The Company has established the Whistle Blowing Policy in response to the Whistleblower Protection Act, 2010 with the following objectives:-

1) To enable the employees to raise any concerns of integrity and misconduct as well as to enable the Board to be informed at an early stage of any misconduct or improprieties;

2) To protect the employees from punishment or unfair treatment for disclosing concerns in good faith in accordance with the Policy; and

3) To develop a culture of openness, accountability and integrity within the Company.




Y. Bhg. Dr. ahmad shahbari @ sobri salamon 5/6 83

Y. Bhg. ustaz Mohd Bakir Hj. Mansor 6/6 100

Y. Bhg. Dr. aida othman 6/6 100

Y. Bhg. Prof. Madya Dr. Muhamad rahimi osman 6/6 100

Y. Bhg. Dato’ Wan Mohamad Dato’ sheikh abdul aziz 5/6 83

Polisi Pemberitahuan Maklumat dan Polisi Penipuan & Integriti Syarikat telah mewujudkan Polisi Pemberitahuan Maklumat lanjutan daripada Akta Perlindungan Pemberi Maklumat, 2010 dengan objektif seperti berikut:-

1) untuk membolehkan pekerja-pekerja menyuarakan apa-apa kemusykilan mengenai integriti dan salah laku disamping membolehkan Lembaga Pengarah diberitahu pada peringkat awal mana-mana salah laku atau perbuatan yang tidak sopan;

2) untuk melindungi pekerja-pekerja daripada hukuman atau perlakuan yang tidak adil akibat menyuarakan kemusykilan dengan cara yang betul selaras dengan Polisi; dan

3) untuk membentuk budaya keterbukaan, akauntabiliti dan integriti dalam Syarikat.


Di samping itu, Syarikat juga telah mewujudkan Polisi Penipuan & Integriti untuk memudahkan perkembangan kawalan yang akan membantu dalam pengesanan dan pencegahan penipuan terhadap Syarikat secara dalaman dan luaran. Objektif Polisi Penipuan & Integriti adalah seperti berikut:-

1) Bagi memastikan tindakan segera dan konsisten serta memastikan keberkesanan dan keberkaitan kawalan dalaman dalam mengurangkan risiko penipuan;

2) untuk melindungi Syarikat dari kerugian kewangan, kerosakan reputasi serta menanam keyakinan peserta-peserta dan pihak berkepentingan lain; dan

3) untuk membolehkan Pengurusan memberi tumpuan kepada pencapaian strategi perniagaan dan sasaran.

Kedua-dua Polisi di atas boleh diperolehi di portal Syarikat.

sumber Maklumat kepada Lembaga Pengarah Lembaga Pengarah mempunyai akses penuh dan secukupnya kepada maklumat berkenaan kertas Lembaga Pengarah yang diedarkan sebelum mesyuarat agar Pengarah boleh mendapatkan penjelasan lanjut, apabila diperlukan bagi mendapatkan penerangan yang sewajarnya sebelum mesyuarat. Kertas Lembaga Pengarah merangkumi minit mesyuarat Lembaga Pengarah yang lalu, minit mesyuarat semua Jawatankuasa Lembaga Pengarah dan laporan yang berkaitan isu-isu mesyuarat yang meliputi kewangan, pelaburan, teknologi maklumat, operasi, sumber manusia dan perkara berkaitan dengan pematuhan peraturan. Pengarah urusan Kumpulan akan memaklumkan kepada Lembaga Pengarah tepat pada masanya, berhubung semua isu penting yang boleh mempengaruhi prestasi Kumpulan dan pembangunan utama yang berlaku dalam Kumpulan.

Pengurusan Kanan dijemput untuk menghadiri mesyuarat Lembaga Pengarah apabila diperlukan bagi membentangkan dan menerangkan perkara-perkara/laporan berkaitan dengan bidang tanggungjawab mereka kepada Lembaga Pengarah.

Semua ahli Lembaga Pengarah mempunyai akses yang tidak terhad kepada maklumat yang tepat dan pada masa yang ditetapkan serta khidmat nasihat Setiausaha Syarikat yang bertanggungjawab untuk memastikan supaya prosedur mesyuarat Lembaga Pengarah dituruti dan semua syarat serta peraturan yang diterima pakai dipatuhi. Para Pengarah juga boleh mendapatkan nasihat badan profesional bebas dalam menjalankan tugas mereka, di bawah tanggungan Takaful Malaysia.



In addition, the Company has also established the Fraud & Integrity Policy to facilitate the development of controls that will aid in the detection and prevention of fraud against the Company internally and externally. The objectives of the Fraud & Integrity Policy are as follows:-

1) To ensure prompt and consistent action as well as to ensure the effectiveness and relevance of internal control in mitigating fraud risk;

2) To safeguard the Company from financial losses, reputation damage as well as to instill confidence of participants and stakeholders; and

3) To enable Management to focus on achieving business strategies and target.

Both of the above Policies are available on the Company’s portal.

supply of Information to the Board The Board has full and timely access to information with Board papers distributed in advance of meetings to enable the Directors to obtain further explanation, where necessary, in order to be properly briefed before the meetings. The Board papers include the minutes of previous Board meeting, minutes of meetings of all Committees of the Board and reports relevant to the issues of the meetings covering areas such as financial, investment, information technology, operational, human resource and regulatory compliance matters. The Group Managing Director keeps the Board informed, on timely basis, of all material matters affecting the Group’s performance and major developments within the Group.

The Senior Management are invited to attend the Board meetings to present and brief the Board on matters/reports relating to their areas of responsibility as and when required.

All the Board members have unrestricted access to timely and accurate information and access to the advice and services of the Company Secretary, who is responsible for ensuring that Board meeting’s procedures are followed and that all applicable rules and regulations are complied with. The Directors can also seek independent professional advice in furtherance of their duties, at Takaful Malaysia’s expense.


appointment to the Board The appointment of new Board members is considered and evaluated by the Nomination Committee and the Committee would recommend the appointment to the Board for approval. In line with Takaful Act, 1984 and the requirement of Bank Negara Malaysia (“BNM”), the appointment of Directors is subject to the approval from BNM. The Company Secretary will ensure that all the appointments are properly made, all necessary information are obtained, as well as all legal and regulatory requirements are met.

nomination CommitteeThe Nomination Committee consists of five (5) Non-Executive Directors, three (3) of whom are Independent Directors. The current Chairman of the Committee is Encik Mahadzir azizan, a Senior Independent Non-Executive Director, in line with the recommendation of the MCCG 2012. The Nomination Committee met four (4) times during the financial year under review with details of meetings’ attendance of each member as follows:

Pelantikan sebagai ahli Lembaga Pengarah Pelantikan ahli Lembaga Pengarah yang baru dipertimbang dan dinilai oleh Jawatankuasa Pemilihan dan Jawatankuasa tersebut akan mengesyorkan pelantikan tersebut kepada Lembaga Pengarah untuk diluluskan. Selaras dengan Akta Takaful, 1984 dan keperluan Bank Negara Malaysia (“BNM”), pelantikan Pengarah adalah tertakluk kepada kelulusan BNM. Setiausaha Syarikat akan memastikan supaya semua pelantikan dilakukan dengan cara yang betul di mana semua maklumat yang diperlukan diperolehi serta semua syarat perundangan dan peraturan dipenuhi.

Jawatankuasa PemilihanJawatankuasa Pemilihan terdiri daripada lima (5) Pengarah Bukan Eksekutif di mana tiga (3) daripada mereka adalah Pengarah Bebas. Pengerusi Jawatankuasa kini ialah Encik Mahadzir azizan, seorang Pengarah Bukan Eksekutif Bebas Kanan selaras dengan cadangan MCCG 2012. Jawatankuasa Pemilihan telah bermesyuarat sebanyak empat (4) kali sepanjang tahun kewangan yang dikaji dengan butiran kehadiran setiap ahli seperti berikut:

The Nomination Committee is empowered by the Board and its terms of reference are to bring to the Board recommendations as to the appointment of new Directors, Group Managing Director/Chief Executive Officer and General Managers, and keeps under review the terms of appointment of Directors, Group Managing Director/Chief Executive Officer and General Managers. The Nomination Committee is also empowered to assess the effectiveness of the Board, its Committees and the contribution of each individual Director. The Nomination Committee also discussed the succession plan of the Senior Management of Takaful Malaysia. An assessment of the effectiveness of the Board as a whole and its Committees i.e. Nomination Committee, Remuneration Committee, Audit Committee and Board Risk Committee as well as the contribution of each individual director was carried out during the year.

Jawatankuasa Pemilihan telah diberikan mandat oleh Lembaga Pengarah dan terma rujukannya untuk membentang kepada Pengarah cadangan pemilihan ahli Lembaga Pengarah, Pengarah urusan Kumpulan/Ketua Pegawai Eksekutif dan Pengurus Besar, dan sentiasa mengkaji syarat-syarat pelantikan Pengarah, Pengarah urusan Kumpulan/Ketua Pegawai Eksekutif dan Pengurus Besar. Jawatankuasa Pemilihan juga diberi mandat untuk menilai keberkesanan Lembaga Pengarah, Jawatankuasanya dan sumbangan setiap Pengarah. Jawatankuasa Pemilihan juga merangka pelan peralihan jawatan bagi Pengurusan Kanan Takaful Malaysia. Penilaian keberkesanan Lembaga Pengarah dan Jawatankuasanya iaitu Jawatankuasa Pemilihan, Jawatankuasa Ganjaran, Jawatankuasa Audit dan Jawatankuasa Risiko Lembaga Pengarah di samping sumbangan setiap Pengarah telah dijalankan pada tahun ini.




encik Mahadzir azizan (Pengerusi mulai 23 Mei 2012 / Chairman from 23 May 2012) 4/4 100

encik Johan abdullah 4/4 100

Puan rozaida omar 3/4 75

Y. Bhg. Dato’ sulaiman Mohd Yusof 3/4 75

encik Zakaria Ismail (Pengerusi sehingga 22 Mei 2012 / Chairman until 22 May 2012) 4/4 100




Directors’ Training All Directors have attended the Mandatory Accreditation Programme (“MAP”). The Directors will continue to attend other relevant training programmes, courses and seminars to enhance their skills and knowledge in discharging their duties as Directors.

During the year, the Directors attended relevant training courses including MINDA’s Building High Performance Directors Programme (BhPD) 2012, KPMG’s Briefing on Optimising IfrS Convergence, Bursa Malaysia’s Half Day Governance Programme – “Governance, Risk Management and Compliance: What Directors Should Know”, MINDA’s Directors Forum 2012 - “Board Rising to the Challenges of Corporate Entrepreneurship”, fIDE Elective Programme - half-Day Media Skills Program “Handling Press Conferences, Media Interviews & Tricky Media Questions”, Luncheon Talk - Building a Winning Team: How Cruyff Changed the Game and fIDE forum: roundtable Discussion for Members Focusing on the Insurance Industry – Where Should a Company Make its Money? underwriting or Portfolio Management?. Takaful Malaysia also continued to provide BNM’s Circulars, updated Bursa Malaysia Listing Requirements and new regulations to assist the Directors in keeping abreast with the latest development.

re-election The Articles of Association provide for all Directors including the Group Managing Director/Chief Executive Officer to submit themselves for re-election at least every three (3) years in compliance with Bursa Malaysia Listing Requirements.

To assist shareholders in their decision, sufficient information, such as personal profile, meetings attendance and shareholding in the Company of each director standing for re-election are furnished in the Annual Report.

DIreCTors’ reMuneraTIon

Level and Make-up of remuneration The Remuneration Committee is responsible in recommending the remuneration framework for the Directors as well as the remuneration package of Executive Director and General Managers to the Board so as to ensure that Takaful Malaysia attracts, motivates and retains the Directors and Senior Management needed to run it successfully. The remuneration of Directors is in line with the Group’s overall practice on compensation and benefits. The Executive Director does not participate in any way in determining his individual remuneration. The Board as a whole determines the remuneration of Non- Executive Directors.

Latihan Pengarah Semua ahli Lembaga Pengarah telah menghadiri Program Latihan Akreditasi Mandatori (“MAP”). Mereka akan terus menghadiri lain-lain program latihan, kursus dan seminar yang relevan untuk mempertingkatkan kemahiran dan pengetahuan mereka dalam menjalankan tugas mereka sebagai Pengarah.

Sepanjang tahun ini, para Pengarah telah menghadiri pelbagai kursus latihan yang berkaitan termasuk MINDA Building High Performance Directors Programme (BhPD) 2012, KPMG’s Briefing on Optimising IFRS Convergence, Bursa Malaysia’s Half Day Governance Programme – “Governance, Risk Management and Compliance: What Directors Should Know”, MINDA’s Directors Forum 2012 - “Board Rising to the Challenges of Corporate Entrepreneurship”, fIDE Elective Programme - Half-Day Media Skills Program “Handling Press Conferences, Media Interviews & Tricky Media Questions”, Luncheon Talk - Building a Winning Team: how Cruyff Changed the Game and fIDE forum: Roundtable Discussion for Members Focusing on the Insurance Industry – Where Should a Company Make its Money? underwriting or Portfolio Management?. Takaful Malaysia juga terus menyediakan Pekeliling BNM, Keperluan Penyenaraian Bursa Malaysia yang dikemaskini dan peraturan-peraturan baru lain untuk membantu para Pengarah dalam mendapatkan maklumat mengenai perkembangan terkini.

Pemilihan semula Tataurusan Pertubuhan Syarikat memperuntukkan agar semua Pengarah termasuk Pengarah urusan Kumpulan/Ketua Pegawai Eksekutif untuk menawarkan diri mereka bagi pemilihan semula sekurang-kurangnya setiap tiga (3) tahun sekali selaras dengan Keperluan Penyenaraian Bursa Malaysia.

Bagi membantu para pemegang saham membuat keputusan, maklumat yang mencukupi seperti profil peribadi, kehadiran mesyuarat dan pegangan saham dalam Syarikat bagi setiap Pengarah yang bersedia untuk pemilihan semula disediakan dalam Laporan Tahunan.

GanJaran PenGaraH

Peringkat dan Kandungan Ganjaran Jawatankuasa Ganjaran bertanggungjawab mengesyorkan rangka kerja ganjaran bagi para Pengarah termasuk pakej ganjaran bagi Pengarah Eksekutif dan Pengurus Besar kepada lembaga Pengarah bagi memastikan Takaful Malaysia mampu menarik minat, memberi motivasi dan mengekalkan ahli Lembaga Pengarah dan Pengurusan Kanan yang diperlukan untuk mentadbir dengan jayanya. Ganjaran para Pengarah adalah sejajar dengan amalan keseluruhan Kumpulan mengenai ganjaran dan imbuhan. Pengarah Eksekutif tidak terlibat dalam apa juga cara dalam menentukan ganjarannya sendiri. Lembaga Pengarah secara keseluruhannya menentukan ganjaran bagi Pengarah Bukan Eksekutif.


Directors’ fees are approved by the shareholders at the Annual General Meeting.

remuneration Committee The remuneration Committee consists of three (3) Non-Executive Directors, two (2) of whom are Independent Directors. The current Chairman of the Committee is Encik Zakaria Ismail, an Independent Non-Executive Director. The remuneration Committee met seven (7) times during the financial year under review with details of meetings’ attendance of each member as follows:



Yuran para Pengarah diluluskan oleh para pemegang saham di Mesyuarat Agung Tahunan.

Jawatankuasa GanjaranJawatankuasa Ganjaran terdiri daripada tiga (3) orang Pengarah Bukan Eksekutif, di mana dua (2) daripada mereka adalah Pengarah Bebas. Pengerusi Jawatankuasa kini ialah Encik Zakaria Ismail, seorang Pengarah Bukan Eksekutif Bebas. Jawatankuasa Ganjaran telah bermesyuarat sebanyak tujuh (7) kali sepanjang tahun kewangan yang dikaji dengan butiran kehadiran setiap ahli seperti berikut:


encik Zakaria Ismail (Pengerusi mulai 23 Mei 2012 / Chairman from 23 May 2012) 7/7 100

encik Johan abdullah 7/7 100

encik Mahadzir azizan (Pengerusi sehingga 22 Mei 2012 / Chairman until 22 May 2012) 7/7 100

Disclosure The details of the remuneration for the Directors for the financial year ended 31 December 2012 are as follows:

Pendedahan Ringkasan maklumat mengenai ganjaran para Pengarah bagi tahun kewangan berakhir 31 Disember 2012 adalah seperti berikut:

Pengarah Bukan Eksekutif / Pengarah Eksekutif / Non Executive Jumlah / Executive Director Directors Total (RM’000) (RM’000) (RM’000)

Yuran / Fees 0 783 783

Gaji dan lain-lain emolumen / Salaries and other emoluments 3,458 92 3,550

Manfaat seumpamanya / Benefits-in-kind 7 0 7

Jumlah / Total 3,465 875 4,340


Ganjaran Pengarah / Jumlah Pengarah /Directors’ Remuneration Number of Directors Pengarah eksekutif / Pengarah Bukan eksekutif / Executive Director Non Executive Directors

Dibawah /Below than RM50,000 - 1

RM50,001 – RM100,000 - -

RM100,001 – RM150,000 - 4

RM150,001 – RM200,000 - 2

Melebihi /More than RM200,001 1 -

Jumlah / Total 1 7



PeMeGanG saHaM

Dialog antara syarikat dan para Pelabur Takaful Malaysia sedar akan kepentingan untuk sentiasa memaklumkan kepada para pemegang saham berkenaan semua perkembangan utama Takaful Malaysia dari semasa ke semasa. Pengerusi dan Pengarah urusan Kumpulan mengadakan perbincangan dengan pemegang saham sekurang-kurangnya sekali (1) setahun semasa Mesyuarat Agung Tahunan. Selain itu, pelbagai pendedahan dan pengumuman dibuat kepada Bursa Malaysia termasuk keputusan suku tahunan, laporan setengah tahunan dan keputusan tahunan bagi memudahkan penyebaran maklumat kepada pemegang saham. Tambahan lagi, semua pengumuman-pengumuman ini dan maklumat-maklumat lain mengenai Syarikat boleh diperolehi di laman web Takaful Malaysia, iaitu www.takaful-malaysia.com.my.

Syarikat berpandu kepada Keperluan Penyenaraian Bursa Malaysia mengenai Dasar Pendedahan Korporat.

Mesyuarat agung Tahunan Mesyuarat Agung Tahunan adalah forum utama bagi dialog dengan pemegang saham. Selain dari agenda biasa untuk Mesyuarat Agung Tahunan, Lembaga Pengarah akan membentangkan laporan prestasi dan pencapaian perniagaan seperti yang dinyatakan dalam Laporan Tahunan dan memberi peluang kepada pemegang saham untuk mengemukakan soalan mengenai aktiviti perniagaan Kumpulan. Pengarah urusan Kumpulan juga berkongsi dengan para pemegang saham Syarikat mengenai jawapan kepada soalan-soalan yang dikemukakan terlebih dahulu sebelum AGM oleh Badan Pengawas Pemegang Saham Minoriti Berhad.

sHareHoLDers

Dialogue between the Company and Investors Takaful Malaysia recognizes the importance to keep the shareholders well-informed of all major developments of Takaful Malaysia on a timely basis. The Chairman and Group Managing Director hold discussions with shareholders at least once (1) a year during the Annual General Meeting. Additionally, various disclosures and announcements made to Bursa Malaysia including quarterly, semi-annual returns and annual results facilitate the dissemination of information to the shareholders. In addition, all these announcements and other information about the Company is available on Takaful Malaysia’s website, www.takaful-malaysia.com.my.

The Company is guided by the Bursa Malaysia Listing Requiremens regarding the Corporate Disclosure Policy.

The annual General Meeting The Annual General Meeting is the principal forum for dialogues with shareholders. Besides the normal agenda for the Annual General Meeting, the Group Managing Director presents the progress and performance of the business as contained in the Annual Report and provides opportunities for shareholders to raise questions pertaining to the business activities of the Group. The Group Managing Director also shared with the shareholders the Company’s responses to questions submitted in advance of the AGM by the Minority Shareholder Watchdog Group.




Notis Mesyuarat Agung Tahunan telah dihantar kepada para pemegang saham lebih awal sedikit daripada keperluan 21 hari di bawah Akta Syarikat, 1965 dan Keperluan Penyenaraian Bursa Malaysia. Bagi pemilihan semula para Pengarah, Lembaga Pengarah akan memastikan maklumat sepenuhnya dimaklumkan menerusi notis mesyuarat berhubung para Pengarah yang akan bersara dan mana-mana Pengarah yang menawarkan diri untuk berkhidmat sekiranya dilantik semula.

Setiap perkara urusan khas yang terkandung dalam notis mesyuarat akan disertakan dengan penyata penerangan bagi resolusi yang dicadangkan untuk memudahkan pemahaman sepenuhnya dan penilaian terhadap isu berkaitan.

Pada Mesyuarat Agung Tahunan Syarikat ke-27 yang diadakan pada 3 Mei 2012, tiada resolusi substantif yang telah dikemukakan untuk kelulusan pemegang saham, selain daripada resolusi-resolusi yang berkaitan untuk menerima pakai penyata kewangan yang telah diaudit bagi tahun berakhir 31 Disember 2011, pembayaran dividen akhir, pelantikan semula / pemilihan semula Pengarah Bukan Eksekutif yang bersara, pembayaran yuran Pengarah-pengarah dan ahli-ahli Badan Penasihat Syariah, pelantikan semula juruaudit luar, Mandat Pemegang-pemegang Saham bagi urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan dan pindaan kepada Tataurusan Pertubuhan Syarikat. Oleh itu, resolusi yang dikemukakan untuk kelulusan pemegang saham pada AGM yang ke-27 telah diundi dengan cara mengangkat tangan.

aKaunTaBILITI Dan auDIT

Laporan KewanganLembaga Pengarah perlu memastikan yang penyata kewangan tahunan dan pengumuman suku tahunan kepada pemegang saham disediakan selaras dengan piawaian perakaunan yang diluluskan dan membentangkan penilaian yang seimbang dan boleh difahami mengenai kedudukan dan prospek Kumpulan. Jawatankuasa Audit membantu Lembaga Pengarah memastikan ketepatan dan kelengkapan maklumat dengan mengkaji dan mencadangkan mengguna pakai maklumat bagi tujuan pendedahan.

Penyata Tanggungjawab Para Pengarah Berkenaan Penyata Kewangan Menurut Akta Syarikat, 1965, Lembaga Pengarah perlu menyediakan penyata kewangan bagi setiap tahun kewangan yang memberi gambaran yang benar dan saksama mengenai keadaan urusan hal-ehwal Syarikat dan Kumpulan sehingga akhir tahun kewangan serta penyata hasil dan aliran tunai Syarikat dan Kumpulan untuk tahun kewangan.

The Notice of AGM was dispatched to shareholders slightly earlier than the 21 days requirement under the Companies Act 1965 and Bursa Malaysia Listing Requirements. For re-election of Directors, the Board will ensure that full information is disclosed through the notice of meeting regarding directors who are retiring and who are willing to serve if re-elected.

Each item of special business included in the notice of the meeting will be accompanied by an explanatory statement for the proposed resolution to facilitate full understanding and evaluation of issues involved.

At the 27th AGM of the Company held on 3 May 2012, no substantive resolutions were put forth for shareholders’ approval, other than resolutions pertaining to the adoption of audited financial statements for the year ended 31 December 2011, payment of final dividend, re-appointment/re-election of retiring Non-Executive Directors, payment of Directors’ and Shariah Advisory Body members’ fees, re-appointment of external auditors, Shareholders’ Mandate for Recurrent Related Party Transactions and amendments to the Articles of Association. As such, the resolutions put forth for shareholders’ approval at the 27th AGM were voted on by a show of hands.

aCCounTaBILITY anD auDIT

financial reporting The Board ensures that the annual financial statements and quarterly announcements to shareholders are prepared in accordance with approved accounting standards and present a balance and understandable assessment of the Group’s position and prospects. The Audit Committee assists the Board in ensuring accuracy and adequacy of information by reviewing and recommending for adoption information for disclosure.

statement of Directors’ responsibilities in relation to financial statements The Directors are required under the Companies Act, 1965, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and the Group as at the end of the financial year and of the income statement and cash flows for the Company and the Group for the financial year.




The Directors consider that, in preparing the financial statements for the year ended 31 December 2012, the Group has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates. The Directors have also considered that all applicable accounting standards have been followed and confirm that the financial statements have been prepared on the going concern basis.

The Directors are responsible for ensuring that the Company maintains adequate accounting records which disclose with reasonable accuracy the financial position of the Company to enable them to ensure that the financial statements comply with the requirements of the Companies Act, 1965.

The Directors generally have the duty to take such steps as are reasonably available to them to safeguard the assets of the Company and the Group, and to prevent and detect fraud and other irregularities.

Internal Control and risk ManagementThe Board acknowledges its responsibility and is committed in maintaining a sound system of internal control and risk management practice. However, such system can only provide reasonable but not absolute assurance against material misstatements or losses.

The Statement on Risk Management and Internal Control furnished on pages 54 to 60 in the Annual Report provides an overview of the state of risk management and internal control within the Group.

relationships with the auditors The role of the Audit Committee is as stated on pages 31 to 39. Through the Audit Committee of the Board, the Company has established transparent and appropriate relationship with the Company’s auditors, both internal and external. If required, the external auditors are invited to attend meetings of the Committee.

This statement is made in accordance with the resolution of the Board of Directors dated 15 March 2013.

Para Pengarah memberi pertimbangan bahawa, dalam menyediakan penyata kewangan bagi tahun berakhir 31 Disember 2012, Kumpulan telah menggunakan dasar perakaunan yang sesuai, digunakan secara konsisten dan disokong oleh pertimbangan dan anggaran yang wajar dan berhemat. Para Pengarah juga telah mempertimbangkan bahawa kesemua piawaian perakaunan yang berkaitan dipatuhi dan mengesahkan bahawa penyata kewangan disediakan mengikut dasar perniagaan berterusan.

Para Pengarah bertanggungjawab memastikan supaya Syarikat menyediakan rekod perakaunan yang secukupnya yang menunjukkan ketepatan yang munasabah mengenai kedudukan kewangan Syarikat bagi membolehkan mereka memastikan agar penyata kewangan tersebut mematuhi keperluan Akta Syarikat, 1965.

Para Pengarah mempunyai tanggungjawab secara am untuk mengambil langkah yang munasabah dalam memastikan perlindungan aset Syarikat dan Kumpulan terpelihara dan mengelakkan serta mengesan sebarang bentuk penipuan dan kesalahan undang-undang.

Kawalan Dalaman dan Pengurusan risiko Lembaga Pengarah mengiktiraf tanggungjawabnya dan komited untuk mengekalkan pelaksanaan sistem kawalan dalaman dan amalan pengurusan risiko yang berwibawa. Walau bagaimanapun, sistem tersebut hanya dapat memberikan jaminan berpatutan dan bukannya mutlak daripada sebarang salah nyata atau kerugian ketara.

Penyata Pengurusan Risiko dan Kawalan Dalaman yang dibentangkan di muka surat 54 hingga 60 dalam Laporan Tahunan ini memberikan tinjauan menyeluruh mengenai pengurusan risiko dan kawalan dalaman Kumpulan.

Hubungan dengan Juruaudit Peranan Jawatankuasa Audit dinyatakan di muka surat 31 hingga 39. Melalui Jawatankuasa Audit Lembaga Pengarah, Syarikat telah mewujudkan hubungan yang telus dan sesuai dengan juruaudit Syarikat, sama ada dalaman mahupun luaran. Jika perlu, juruaudit luar akan dijemput untuk menghadiri mesyuarat Jawatankuasa.

Penyata ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 15 Mac 2013.


Additional Compliance InformationMaklumat Pematuhan Tambahan

1. PenGGunaan Dana Tiada dana yang diterbitkan/digunakan oleh Takaful Malaysia

daripada cadangan korporat sepanjang tahun kewangan.

2. PeMBeLIan BaLIK saHaM Tiada sebarang pembelian balik saham dilakukan oleh Takaful

Malaysia sepanjang tahun kewangan.

3. oPsYen, Waran aTau seKurITI BoLeH TuKar Tiada sebarang opsyen, waran atau sekuriti boleh tukar yang

diterbitkan oleh Takaful Malaysia sepanjang tahun kewangan.

4. ProGraM aMerICan DePosITorY reCeIPT (aDr) aTau GLoBaL DePosITorY reCeIPT (GDr)

Takaful Malaysia tidak menaja sebarang program ADR atau GDR sepanjang tahun kewangan.

5. PenGenaan seKaTan/PenaLTI Tiada sekatan dan/atau penalti yang dikenakan ke atas Takaful

Malaysia dan subsidiari, para Pengarah atau Pengurusannya oleh pihak berkuasa berkaitan sepanjang tahun kewangan.

6. Yuran BuKan auDIT Yuran bukan audit yang dibayar kepada juruaudit luar pada tahun

kewangan berjumlah RM60,000.

7. VarIasI KePuTusan Tiada variasi ketara (berbeza sebanyak 10% atau lebih) antara

keputusan untuk tahun kewangan dan keputusan tidak diaudit yang diumumkan sebelumnya. Takaful Malaysia tidak mengeluarkan sebarang anggaran, ramalan atau unjuran keuntungan bagi tahun kewangan.

8. JaMInan KeunTunGan Tiada jaminan keuntungan diberi oleh Takaful Malaysia sepanjang

tahun kewangan.

9. KonTraK PenTInG MeLIBaTKan PenGaraH Dan PeMeGanG saHaM uTaMa

Tiada kontrak penting yang dimeterai oleh Takaful Malaysia dan syarikat-syarikat subsidiarinya yang membabitkan kepentingan para Pengarah dan Pemegang Saham utama, sama ada yang masih wujud pada akhir tahun kewangan atau yang dimeterai sejak akhir tahun kewangan sebelumnya kecuali untuk urus niaga pihak berkaitan yang dinyatakan dalam Nota 40 kepada penyata kewangan.

1. uTILIsaTIon of ProCeeDs There were no proceeds raised/utilised by Takaful Malaysia from

corporate proposals during the financial year.

2. sHare BuYBaCKs There were no share buybacks by Takaful Malaysia during the

financial year.

3. oPTIons, WarranTs or ConVerTIBLe seCurITIes No options, warrants or convertible securities were issued by

Takaful Malaysia during the financial year.

4. aMerICan DePosITorY reCeIPT (aDr) or GLoBaL DePosITorY reCeIPT (GDr) ProGraMMe

Takaful Malaysia did not sponsor any ADR or GDR programme during the financial year.

5. IMPosITIons of sanCTIons/PenaLTIes There were no sanctions and/or penalties imposed on Takaful

Malaysia and its subsidiaries, Directors or Management by relevant regulatory bodies during the financial year.

6. non-auDIT fees There were RM60,000 non-audit fees paid to external auditors

during the financial year.

7. VarIaTIon In resuLTs There was no significant variation (differing by 10% or more)

between the results for the financial year and the unaudited results previously announced. Takaful Malaysia did not release any profit estimate, forecast or projections for the financial year.

8. ProfIT GuaranTee There was no profit guarantee given by Takaful Malaysia during the

financial year.

9. MaTerIaL ConTraCTs InVoLVInG DIreCTors anD MaJor sHareHoLDers

There were no material contracts entered into by Takaful Malaysia and its subsidiary companies involving Directors and major Shareholders’ interest, either still subsisting at the end of the financial year or entered into since the end of the previous financial year except for related parties transactions disclosed in Note 40 to the financial statements.


Additional Compliance Information

Maklumat Pematuhan Tambahan

10. urusnIaGa PIHaK BerKaITan YanG BeruLanG / reCurrenT reLaTeD ParTY TransaCTIons

Bentuk urusniaga

Pihak Berkaitan yang Berurusniaga

Pihak Berkaitan, kepentingan mereka dan bentuk hubungan dengan Kumpulan Takaful Malaysia

nilai urusniaga sebenar dari 1 Januari 2012 hingga 31 Disember 2012 (rM’000)

Sewa bangunanpejabat yangdibayar kepadaTakaful Malaysiaoleh Bank IslamMalaysia Berhad(BIMB)

BIMB BIMB adalah subsidiari 51% milik BHB. BHB adalah pemegang saham utama Takaful Malaysia yang memegang kepentingan ekuiti sebanyak 61.14% dalam Syarikat pada 31 Disember 2012.

Dato’ Paduka Ismee Ismail dan Encik Johan abdullah adalah Pengarah BHB dan BIMB dan juga Pengarah Takaful Malaysia, yang dilantik oleh BhB. Dato’ Paduka Ismee Ismail dan Encik Johan Abdullah tidak mempunyai sebarang kepentingan langsung atau tidak langsung dalam BHB, BIMB dan Takaful Malaysia.

Puan rozaida Omar adalah Pengarah BhB dan juga Pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato’ Mohamed Hassan Md. Kamil adalah Pengarah Takaful Malaysia, yang dilantik oleh BhB. Puan rozaida Omar dan Dato’ Mohamed Hassan Md. Kamil tidak mempunyai sebarang kepentingan langsung atau tidak langsung dalam BHB dan Takaful Malaysia.

2,640

nature of Transactions

related Parties Transacted with

related Parties, their interests and nature of relationships with the Takaful Malaysia Group

actual Transaction Value from 1 January 2012 to 31 December 2012 (rM’000)

Rental of officepremises payableto TakafulMalaysia by BankIslam MalaysiaBerhad (BIMB)

BIMB BIMB is a 51% owned subsidiary of BHB. BHB is a major shareholder of Takaful Malaysia holding an equity interest of 61.14% in the Company as at 31 December 2012.

Dato’ Paduka Ismee Ismail and Encik Johan abdullah are Directors in BHB and BIMB and are also Directors in Takaful Malaysia, nominated by BhB. Dato’ Paduka Ismee Ismail and Encik Johan Abdullah do not have any direct or indirect interest in BHB, BIMB and Takaful Malaysia.

Puan rozaida Omar is a director in BhB and is also a director in Takaful Malaysia, nominated by BHB. Dato’ Mohamed Hassan Md. Kamil is a director in Takaful Malaysia, nominated by BHB. Puan rozaida Omar and Dato’ Mohamed hassan Md. Kamil do not have any direct or indirect interest in BHB and Takaful Malaysia.

2,640


Statement on Risk Management and Internal Control

PenYaTa PenGurusan rIsIKo Dan KaWaLan DaLaMan

Penyata ini disediakan menurut Keperluan Penyenaraian Pasaran utama Bursa Malaysia Securities Berhad berkaitan dengan Pematuhan Kumpulan terhadap Prinsip dan peruntukan-peruntukan Cadangan yang berkaitan dengan kawalan dalaman seperti yang digariskan di dalam Kod urus Tadbir Korporat Malaysia (“Kod”).

TanGGunGJaWaB LeMBaGa PenGaraH

Lembaga Pengarah mengiktiraf bahawa mereka bertanggungjawab sepenuhnya terhadap persekitaran kawalan dalaman dan keberkesannya dalam menjaga kepentingan-kepentingan pemegang-pemegang saham dan aset-aset Kumpulan.

Sistem kawalan dalaman turut memenuhi keperluan untuk operasi-operasi perniagaan yang berkesan dan cekap, laporan kewangan yang baik dan prosedur-prosedur kawalan, serta pematuhan terhadap undang-undang dan peraturan-peraturan yang berkaitan. Lembaga Pengarah turut mengakui bahawa penyemakan terhadap system kawalan dalaman Kumpulan adalah usaha yang jitu dan berterusan, yang dirangka untuk mengurus dan mengurangkan risiko kegagalan untuk mencapai objektif-objektif perniagaan. Sewajarnya, sistem kawalan dalaman Kumpulan turut memberikan jaminan yang munasabah ke atas salah nyata atau kerugian yang ketara. Pihak Pengurusan telah memberi jaminan kepada Lembaga Pengarah berkaitan kecukupan dan keberkesanan pengurusan risiko dan sistem kawalan dalaman Kumpulan.

Proses-Proses KaWaLan DaLaMan uTaMa

Proses-proses kawalan dalaman utama yang telah ditubuhkan oleh Lembaga Pengarah dalam menyemak kecukupan serta integriti sistem kawalan dalaman termasuk pematuhan kepada undang-undang, peraturan-peraturan, syarat-syarat, arahan-arahan dan garis panduan-garis panduan adalah seperti berikut :

ranGKa KerJa PenGurusan rIsIKo

Lembaga Pengarah mengakui bahawa mengenal pasti dan mengurus risiko utama memainkan peranan penting dan merupakan asas dalam mencapai objektif-objektif perniagaan Kumpulan serta dalam menguruskan operasi hariannya.

sTaTeMenT on rIsK ManaGeMenT anD InTernaL ConTroL

This statement is made pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad with regard to the Group’s compliance with the Principles and Recommendations provisions relating to internal controls as stipulated in the Malaysian Code on Corporate Governance (“the Code”).

BoarD resPonsIBILITY

The Board acknowledges its overall responsibility for the internal control environment and its effectiveness in safeguarding shareholders’ interests and Group’s assets.

The system of internal control addresses the need for an effective and efficient business operations, sound financial reporting and control procedures, and compliance with relevant laws and regulations. The Board also recognises that reviewing the Group’s system of internal control is a concerted and continuing process, designed to manage and appropriately mitigate the risk of failure in achieving business objectives. Accordingly, the Group’s system of internal control provides reasonable assurance against material misstatement or loss. The Management has given the assurance to the Board on the adequacy and effectiveness of the Group’s risk management and internal control system.

KeY InTernaL ConTroL ProCesses

The key internal control processes that the Board has established in reviewing the adequacy and integrity of the system of internal control, including compliance with applicable laws, regulations, rules, directives and guidelines, are as follows:

rIsK ManaGeMenT fraMeWorK

The Board acknowledges the identification and the management of risks involved play an important and integral part in achieving the Group’s business objectives and the management of its daily operations.

Penyata Pengurusan Risiko dan Kawalan Dalam


In pursuing these objectives, the Board has put in place an Enterprise Wide risk Management (“ErM”) framework within the Group to ensure there is an on-going process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations. The Group has established a structured risk management process whereby the roles and responsibility of Board Risk Committee (BRC) is to provide effective oversight on company-wide risks through quarterly Board Risk Committee meetings. Senior Management involvement are assured through quarterly Management Risk Committee meetings.

The overall net Corporate Risk Rating of the Company which comprises financial, business and operational risks has improved throughout year 2012. To ensure the risk controls are robust and maintained, the company has undertaken an exercise of reviewing the Risk Management framework where enhancements were made to escalate risk management practices to a higher maturity level and permeate into wider aspects of the organisation for tighter control.

As a risk mitigation towards disasters and major disruptions; the Company had established a Business Continuity Management Framework. Business Continuity Plans are developed and tested for functionality and IT Disaster Recovery (ITDR) plans are tested twice a year on the production main server. During the financial year, one full scale crisis simulation exercises on business continuity was carried out that involved the mobilisation of operation from Menara Takaful Malaysia (head Office) and selected branches to the respective designated recovery sites.

Modified Solvency Margin Ratio (MSMR) and Stress Testing have been carried out on a quarterly basis in line with the requirements under Risk & Capital Management Framework and Asset Liability Management Framework.

Bagi mencapai objektif-objektif tersebut, Lembaga Pengarah telah menyediakan Rangka Kerja Pengurusan Risiko Seluruh Perniagaan (“ErM”) dalam Kumpulan bagi memastikan supaya wujud proses yang berterusan bagi mengenalpasti, menilai, memantau dan mengurus pendedahan risiko utama yang sememangnya lazim dalam operasi perniagaannya. Kumpulan telah menubuhkan proses pengurusan risiko berstruktur yang mana peranan serta tanggungjawab Lembaga Pengarah Jawatankuasa Risiko (“BRC”) adalah menyediakan pemantauan yang berkesan terhadap keseluruhan risiko syarikat melalui mesyuarat suku tahunan Lembaga Pengarah Jawatankuasa Risiko. Penglibatan Pengurusan Kanan dipastikan melalui mesyuarat suku tahunan Pengurusan Jawatankuasa Risiko.

Penilaian Risiko Korporat untuk syarikat secara keseluruhannya yang terdiri dari risiko kewangan, perniagaan dan operasi telah meningkat sepanjang tahun 2012. untuk memastikan kawalan risiko teguh dan stabil, syarikat telah mengambil langkah untuk menilai Rangka Kerja Pengurusan Risiko di mana penambahbaikan telah dibuat untuk meninggikan taraf amalan pengurusan risiko ke tahap kematangan yang lebih tinggi dan menyerap ke dalam aspek-aspek organisasi yang lebih luas untuk kawalan yang lebih ketat.

Dalam usaha mengurangkan risiko terhadap bencana dan malapetaka, Syarikat telah menubuhkan Rangka Kerja Pengurusan Kesinambungan Perniagaan. Pelan Kesinambungan Perniagaan telah dibangunkan dan telah diuji untuk keberkesanan fungsi; dan Pelan Pemulihan Bencana IT (ITDR) telah juga diuji sebanyak dua kali dalam setahun ke atas kerangka utama sistem teknologi maklumat. Sepanjang tahun kewangan, satu skala penuh latihan simulasi krisis kesinambungan perniagaan telah dijalankan yang melibatkan mobilisasi operasi dari Menara Takaful Malaysia (Ibu Pejabat) dan beberapa cawangan terpilih kepada tapak pemulihan yang telah ditetapkan.

Pengubahsuaian Nisbah Margin Kesolvenan (MSMR) dan ujian Tekanan telah dijalankan pada setiap suku tahun sejajar dengan kehendak di bawah Rangka Kerja Pengurusan Risiko dan Modal dan juga Rangka Kerja Pengurusan Aset dan Liabiliti.




InTernaL auDIT funCTIon

The Internal Audit Division (“IAD”) assists the Board and Audit Committee in the discharge of their responsibilities. The internal audit function provides assurance on the efficiency and effectiveness of the internal control systems implemented by management. An annual audit plan is developed based on an assessment of risk priorities, exposures, and business strategies of the Group. IAD also investigates incidents of fraud, malpractices and makes necessary recommendation to the Audit Committee to impede recurrence. The implementation of management action plans to address the control lapses noted during the financial period are monitored through follow-up reviews.

The Committee reviews and approves the Annual Audit Plan, reports and findings including the follow-ups of the Internal Auditors.

They also review the actions taken on internal control issues identified in reports prepared by External auditors and regulatory Bodies during their meetings and consider the impact on the effectiveness and adequacy of the Group’s internal control system.

KeY eLeMenTs of InTernaL ConTroL

The key elements of internal control that the Board has established which provide effective internal controls including compliance with applicable laws, regulations and guidelines are as follows:

• Organisational Structure

The Group has established a defined organisational structure with lines of responsibility and accountability with a defined delegation of authority of Committees of the Board and Management.

• Limit of Authorities

A defined limit of authorities has been revised and approved by the Board on 20th November 2012 and implemented in the areas of underwriting, Claims approval, Investments and other business process.

funGsI auDIT DaLaMan

Bahagian Audit Dalaman (“IAD”) membantu Lembaga Pengarah dan Jawatankuasa Audit dalam menjalankan tanggungjawab mereka. Audit Dalaman berfungsi untuk memberikan jaminan ke atas keberkesanan dan kelancaran sistem kawalan dalaman yang dilaksana oleh pihak pengurusan. Pelan Audit Tahunan dibangunkan dari penilaian terhadap kepentingan risiko, pendedahan, dan strategi Kumpulan. IAD juga menyiasat kejadian penipuan, pemalsuan serta memberikan cadangan-cadangan kepada Jawatankuasa Audit untuk menghalang pengulangan semula. Perlaksanaan pelan tindakan pengurusan yang dirangka untuk menghalang kelemahan kawalan yang telah diperakui sepanjang tempoh kewangan yang dipantau melalui kajian susulan.

Jawatankuasa juga mengkaji dan meluluskan Pelan Audit Tahunan, laporan-laporan serta penemuan termasuk susulan oleh Audit Dalaman.

Mereka juga mengkaji tindakan yang diambil ke atas penemuan kawalan dalaman yang dikenalpasti di dalam laporan-laporan yang disediakan oleh juruaudit luar dan badan-badan penguatkuasaan semasa mesyuarat-mesyuarat mereka serta menilai kesan ke atas keberkesanan dan kecukupan sistem kawalan dalaman Kumpulan.

eLeMen PenTInG KaWaLan DaLaMan

Elemen-elemen utama kawalan dalaman yang diwujudkan oleh Lembaga Pengarah bagi menyediakan kawalan dalaman yang berkesan termasuk pematuhan terhadap undang-undang, peraturan-peraturan dan garis panduan-garis panduan adalah seperti berikut:

• Struktur Organisasi

Kumpulan telah membentuk sebuah struktur organisasi yang tersusun dengan had-had tanggungjawab dan akauntabiliti yang jelas serta pengagihan kuasa yang bertakrif kepada Jawatankuasa-jawatankuasa Lembaga Pengarah dan Pengurusan.

• Had Kuasa

Had kuasa yang ditakrif telah disemak dan diluluskan oleh Lembaga Pengarah pada 20 November 2012 dan telah dilaksanakan dalam bidang Pengunderaitan, Kelulusan Tuntutan, Pelaburan dan proses perniagaan yang lain.


Penyata Pengrusan Risiko dan Kawalan Dalam


• Standard Operating Procedures

The Standard Operating Procedures that govern the key business processes such as finance, actuarial, human resources, claims, investments and etc, are in place within the organisation.

• Product Development Framework

In March 2012, STMB was granted the approval by BNM to adopt “launch-and-file” system for new products. In view of the “launch-and-file” system granted to STMB, we have reviewed the policies and procedures within the Product Development Framework, taking into consideration BNM’s supervisory expectations under the Introduction of New Product Guidelines.

• Compliance Function

The Company has established Compliance Charter and Framework setting out the compliance governance and methodology. All compliances requirements, matrixes, SOPs and guidelines are posted in the Corporate Portal – Compliance Division.

• Whistle Blowing Policy and Fraud and Integrity Policy

The Board has also approved the Whistle Blowing Policy in response to the Whistleblower Protection Act, 2010 as well as Fraud and Integrity Policy in August 2011 which is essential in promoting ethical conduct within the Group.

• Shariah Governance Framework

The Shariah Governance framework was approved by the Shariah Advisory Body (SAB) on 27 July 2011. The framework is designed to meet the following objectives:

i. To set out Takaful Malaysia’s Shariah governance structures, processes and arrangements to ensure that all its operations and business activities are in accordance with Shariah.

ii. To provide a comprehensive guidance to the Board, SAB and Management in discharging its duties in matters relating to Shariah.

• Prosedur Operasi Piawai

Prosedur Operasi Piawai yang mengawal proses-proses perniagaan utama seperti kewangan, sumber manusia, tuntutan, pelaburan dan lain-lain telah diadakan di dalam organisasi.

• Rangka Kerja Pembangunan Produk

Pada bulan Mac 2012, STMB telah mendapat kelulusan daripada BNM untuk mengamalkan sistem “pelancaran dan fail” untuk produk-produk baru. Memandangkan sistem “pelancaran dan fail” telah diberikan kepada STMB, kami telah mengkaji semula polisi dan prosedur yang merangkumi Rangka Kerja Pembangunan Produk, sambil mengambilkira jangkaan penyeliaan daripada BNM di bawah Pengenalan Garis Panduan Produk Baru.

• Fungsi Pematuhan

Syarikat mempunyai Piagam dan Rangka Kerja Pematuhan yang telah ditubuhkan yang menggariskan pematuhan tadbir urus dan metodologi. Semua kehendak pematuhan, matrik, prosedur operasi piawai dan garis panduan telah di muatkan dalam Portal Korporat – Bahagian Pematuhan.

• Polisi Pemberitahuan Maklumat dan Polisi Penipuan & Integriti

Lembaga Pengarah juga telah meluluskan Polisi Pemberitahuan Maklumat sebagai respons kepada Akta Perlindungan Pemberi Maklumat, 2010 serta Polisi Penipuan & Integriti pada Ogos 2011 yang penting dalam menggalakkan kelakuan beretika dalam Kumpulan.

• Rangka Kerja Tadbir Urus Syariah

Rangka Kerja Tadbir urus Syariah telah diluluskan oleh Badan Penasihat Syariah (BPS) pada 27 Julai 2011. Rangka kerja ini bertujuan untuk memenuhi objektif berikut:

i. untuk menetapkan struktur tadbir urus pentadbiran Syariah bagi Takaful Malaysia, proses-proses dan aturan untuk memastikan bahawa semua operasi dan aktiviti perniagaan adalah selaras dengan Syariah.

ii. untuk menyediakan satu panduan yang komprehensif kepada Lembaga, BPS dan Pengurusan dalam menjalankan tugasnya dalam perkara-perkara yang berkaitan dengan Syariah.




iii. To outline the functions relating to Shariah review, Shariah audit, internal Shariah research and Shariah risk management processes.

iv. To establish robust Shariah principle and understanding among stakeholder of Takaful Malaysia, include but not limited to employees and customers of Takaful Malaysia.

• Assets Liabilities Management Framework

The framework was approved by the Board in November 2011 to provide the basic structure of the Assets and Liabilities Management and to further enhance the existing control mechanism underlying the business activities.

• Takaful Operational Framework

The Company has established a framework to govern and document the operational models adopted, fund segregation policy of takaful funds, policy on investment strategy and method used for the calculation of investment profit for participant investment fund, policy on recognition of surplus/deficit and its allocation/distribution, policy on deficit rectification mechanism including repayment of qardh, management of income from takaful business, and allowable expenses charges to takaful funds.

• Surplus Management and Distribution Policy

In managing the takaful funds, takaful operators are expected to manage the interest of various stakeholders without compromising prudence. This policy serves as a guide to the Company in managing the surplus position and surplus distribution to participants and shareholders by providing key principles, considerations and practices to ensure good maintenance of fund solvency and financial resilience, and to safeguard the interests of participants and equitable treatment of participants.

The annual distribution of surplus shall be endorsed by the Shariah Advisory Body and Board of Directors.

iii. untuk menggariskan fungsi yang berkaitan dengan kajian, audit, penyelidikan dalaman dan proses-proses pengurusan risiko berkaitan Syariah.

iv. untuk mewujudkan prinsip Syariah yang mantap dan melahirkan persefahaman di kalangan pihak berkepentingan di Takaful Malaysia, termasuk tetapi tidak terhad kepada pekerja-pekerja dan pelanggan-pelanggan Takaful Malaysia.

• Rangka Kerja Pengurusan Aset dan Liabiliti

Rangka kerja ini telah diluluskan oleh Lembaga Pengarah pada bulan November 2011 untuk menyediakan struktur asas Pengurusan Aset dan Liabiliti dan seterusnya mempertingkatkan lagi mekanisma kawalan yang sedia ada yang mendasari aktiviti perniagaan.

• Rangka Kerja Operasi Takaful

Syarikat telah mewujudkan satu rangka kerja untuk mentadbir dan mendokumentasi model operasi yang diguna-pakai, polisi pengasingan dana-dana takaful, polisi mengenai strategi pelaburan dan kaedah yang digunakan untuk pengiraan keuntungan pelaburan bagi dana pelaburan peserta, polisi pengiktirafan lebihan/defisit dan peruntukan/pengedaran,polisi mengenai mekanisma pembetulan defisit termasuk pembayaran balik qardh, pengurusan pendapatan daripada perniagaan takaful dan perbelanjaan dan caj-caj ke atas dana takaful yang dibenarkan.

• Pengurusan Lebihan dan Dasar Pengagihan

Dalam menguruskan dana-dana takaful, pengendali-pengendali takaful dijangka akan menguruskan kepentingan pelbagai pihak berkepentingan tanpa menjejaskan sikap berhemah. Polisi ini berfungsi sebagai panduan kepada Syarikat dalam menguruskan kedudukan lebihan dan pembahagian lebihan kepada peserta dan pemegang saham dengan menyediakan prinsip, pertimbangan dan amalan yang utama untuk memastikan penyelenggaraan kesolvenan dana yang baik dan daya tahan kewangan dan untuk melindungi kepentingan peserta dan memberikan layanan yang saksama kepada semua peserta-peserta.

Pengagihan lebihan tahunan hendaklah disahkan oleh Badan Penasihat Syariah dan Lembaga Pengarah.




• Pelan Perniagaan/Pemasaran dan Proses Belanjawan

Pelan perniagaan/pemasaran serta belanjawan tahunan Kumpulan dibentangkan kepada Lembaga Pengarah untuk kelulusan.

• Laporan Kewangan

Laporan akaun/pengurusan dibentangkan kepada Lembaga Pengarah untuk dikaji dan dibincangkan. Penyebaran laporan suku tahunan kepada orang awam dilakukan selepas ia dikaji oleh Jawatankuasa Audit dan diluluskan oleh Lembaga Pengarah. usaha berterusan turut dijalankan untuk menangani isu-isu kawalan kewangan atau risiko-risiko termasuk pengukuhan terhadap proses penutupan kewangan dan pelarasan.

• Sistem Teknologi Maklumat

Jawatankuasa Peneraju IT

Jawatankuasa Peneraju IT telah ditubuhkan untuk mengawasi pembangunan IT yang meyediakan pihak pengurusan pengawalan ke atas fungsi IT di dalam Syarikat. Jawatankuasa Peneraju IT dipengerusikan oleh Pengarah urusan Kumpulan. Jawatankuasa ini bertanggungjawab untuk meluluskan perbelanjaan berkaitan IT yang besar mengikut had yang telah ditetapkan dan memantau projek yang telah diluluskan, merumuskan polisi dan pelan strategik IT.

Rangka Kerja Pengurusan Data

Seperti yang ditentukan oleh Garis Panduan BNM, Rangka Kerja Pengurusan Data telah ditubuhkan pada November 2009. Rangka Kerja ini merangkumi proses-proses serta kawalan-kawalan yang berkaitan dengan sekuriti dan integriti data.

Jawatankuasa Peneraju Projek IT

Jawatankuasa Peneraju Projek IT dipengerusikan oleh Pengarah urusan Kumpulan. Jawatankuasa yang terdiri dari wakil-wakil daripada IT dan pengguna perniagaan, mengawasi prestasi dan pembangunan projek IT yang berkaitan dengan perniagaan sepanjang tempoh kewangan.

• Business/Marketing Plan and Budget Process

The Group’s annual business/marketing plan and budget are submitted to the Board for approval.

• Financial Reporting

Management accounts/reports are tabled to the Board for review and discussion. The public release of quarterly reports is made after reviewed by the Audit Committee and approved by the Board. On-going efforts are in place to address financial control issues or risks, which include strengthening the financial closing and reconciliation process.

• Information Technology System

IT Steering Committee

An IT Steering Committee has been established to oversee the development of Information Technology (IT) that provides management an oversight of the IT function within the Company. IT Steering committee is chaired by the Group Managing Director. The committee is responsible for authorising major IT expenditures within the approved limits, monitoring approved IT projects, formulating IT policies and IT strategic plans.

Data Governance Framework

As prescribed by BNM guidelines, the data governance framework was established in November 2009. The framework covers processes and related controls over data security and integrity.

IT Project Steering Committee

IT Project Steering Committee is chaired by the Group Managing Director. The Committee consists of representatives from IT and business users, oversees the progress and development of business related IT project during the financial period.




KesIMPuLan

Walaupun terdapat kelemahan kawalan yang dikenal pasti dalam proses-proses perniagaan tertentu dalam Kumpulan, namun tiada sebarang kegagalan kawalan atau kelemahan ketara yang menyebabkan kerugian besar yang memerlukan pendedahan dalam laporan tahunan Kumpulan bagi tempoh kewangan yang dikaji.

Penyata ini disediakan selaras dengan resolusi Lembaga Pengarah bertarikh 15 Mac 2013.

KaJIan PenYaTa oLeH JuruauDIT Luar

Menurut kehendak perenggan 15.23 Syarat-syarat Penyenaraian Pasaran utama Bursa Malaysia Securities Berhad, juruaudit luar telah menyemak Penyata Kawalan Dalaman ini. Semakan ini telah dilakukan selaras dengan Recommended Practice Guide (“RPG”) 5 yang telah dikeluarkan oleh Institut Akuantan Malaysia. Berdasarkan semakan mereka, juruaudit luar telah melaporkan kepada Lembaga Pengarah bahawa tiada sebarang perkara yang sampai ke perhatian mereka yang boleh menyebabkan mereka menganggap bahawa penyata ini tidak konsisten dengan kefahaman mereka mengenai proses yang diguna-pakai oleh Lembaga Pengarah dalam mengkaji semula kecukupan dan integriti kawalan dalaman Kumpulan. RPG 5 tidak memerlukan pertimbangan juruaudit luar serta mereka juga tidak perlu menilai samada Penyata ini merangkumi segala risiko-risiko dan kawalan-kawalan, atau memberikan pendapat tentang keberkesanan prosedur-prosedur risiko dan kawalan Kumpulan.

ConCLusIon

Although control lapses were identified for certain business processes within the Group, there were no significant control failures or weaknesses that has resulted in material loss that requires disclosure in the Group’s annual report for the financial period under review.

This statement is made in accordance with the Board of Directors resolution dated 15 March 2013.

reVIeW of THe sTaTeMenT BY exTernaL auDITors

As required by para 15.23 of Bursa Malaysia Securities Berhad Main Market listing requirements, the External auditors have reviewed this Internal Control Statement. The review was performed in accordance with Recommended Practice Guide (“RPG”) 5 issued by the Malaysian Institute of accountants. Based on their review, the External auditors have reported to the Board that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process the Board has adopted in the review of the adequacy and integrity of internal control of the Group. rPG 5 does not require the External auditors to and they did not consider whether this Statement covers all risks and controls, or to form an opinion on the effectiveness of the Group’s risk and control procedures.




Chairman’s StatementPenyata Pengerusi

Y. Bhg. Dato’ Paduka Ismee Ismail

In the name of allah, the Most Compassionate, the Most Merciful.assalamualaikum Warahmatullahi Wabarakatuh.I hereby present the Annual Report and Audited Financial Statements for the financial year ended 31 December 2012.

Dengan nama allah, yang Maha Pengasih, lagi Maha Penyayang. assalamualaikum Warahmatullahi Wabarakatuh.Saya dengan sukacitanya membentangkan Laporan Tahunan dan Penyata Kewangan yang telah diaudit bagi tahun kewangan yang berakhir pada 31 Disember 2012.


Chairman’s Statement

Penyata Pengerusi

Dear shareholders,

The world economy recovered slightly in 2012 after the turbulence of the previous year, driven by credit easing by European union member countries and an improving uS labour market. However, growth remained weak, hampered by the continuing Eurozone crisis as well as tighter monetary policies adopted by India and China during the year. Taking all relevant factors into consideration, the International Monetary Fund predicted the global economic output to expand by a marginal 3.3%. Nonetheless, Malaysia managed to record better than expected growth with the economy expanding by 5.6% in 2012 supported by continued strength in domestic demand and increased government spending on infrastructure. The Islamic finance sector fared much better. The Ernst & young World Takaful Report 2012 noted that the Takaful industry continued to show double-digit growth in 2012 albeit at a relatively slower rate than in previous years. Indonesia, Brunei and Malaysia accounted for uS$2 billion in gross Takaful contributions, with Malaysia on its own achieving a growth rate of over 20%.

Against this backdrop, I am happy to report that Takaful Malaysia has registered another year of record-breaking top-line and bottom-line performance underpinned by robust growth in the Bancatakaful and group Takaful businesses as well as continued outstanding performance of the investment activities. With our sterling performance in 2012, Takaful Malaysia has set a five-year track record for consecutive business growth since the start of our Transformation programme in 2007. To date, total Group assets stand at RM6.4 billion with annual growth exceeding 9% and year-on-year Group profit growth exceeding 30%.

Takaful Malaysia also established itself as the leader in the group family Takaful business, capturing 40% of this market sector, and 21% of the combined Family and General Takaful business, as at 3rd quarter 2012.

Para Pemegang saham yang dihormati,

Ekonomi dunia pulih sedikit pada tahun 2012 selepas mengalami gelora pada tahun sebelumnya, dipacu oleh kelonggaran kredit oleh negara anggota Kesatuan Eropah dan pasaran buruh aS yang bertambah baik. Walau bagaimanapun, pertumbuhan kekal lemah justeru halangan oleh krisis Eurozone yang berterusan selain dasar monetari lebih ketat yang diamalkan oleh India dan China pada tahun 2012. Mengambil kira semua faktor yang relevan, Tabung Monetari Antarabangsa meramalkan hasil ekonomi global akan berkembang sedikit pada kadar 3.3%. Meskipun begitu, Malaysia berjaya mencatat pertumbuhan yang lebih baik daripada jangkaan apabila ekonomi berkembang sebanyak 5.6% pada tahun 2012 disokong oleh pengukuhan permintaan dalam negeri yang berterusan dan peningkatan perbelanjaan infrastruktur oleh kerajaan. Pertumbuhan sektor kewangan Islam adalah lebih baik. Laporan Takaful Dunia Ernst & young 2012 menyatakan bahawa industri Takaful terus menunjukkan pertumbuhan dua angka pada tahun 2012 meskipun pada kadar yang lebih perlahan secara relatif berbanding dengan tahun sebelumnya. Indonesia, Brunei dan Malaysia mencakupi uS$2 bilion dalam sumbangan Takaful kasar, sementara Malaysia sahaja mencapai kadar pertumbuhan melebihi 20%.

Dengan latar belakang ini, saya berbesar hati melaporkan bahawa Takaful Malaysia telah mencatat prestasi perolehan kasar dan perolehan bersih yang tertinggi disokong oleh pertumbuhan mantap dalam Bankatakaful dan perniagaan Takaful kumpulan selain prestasi cemerlang yang berterusan bagi aktiviti pelaburan. Dengan prestasi gemilang pada tahun 2012, Takaful Malaysia telah mencatat rekod pertumbuhan perniagaan lima tahun berturut-turut sejak program Transformasi kami bermula pada tahun 2007. Sehingga kini, jumlah aset Kumpulan mencecah RM6.4 bilion dengan pertumbuhan tahunan melebihi 9% dan pertumbuhan keuntungan Kumpulan tahun demi tahun melebihi 30%.

Takaful Malaysia turut memperkukuhkan syarikat sebagai peneraju dalam perniagaan Takaful keluarga kelompok apabila meraih 40% daripada sektor pasaran ini dan 21% daripada gabungan perniagaan Takaful Keluarga dan Am, sehingga suku ke-3 tahun 2012.



Penyata Pengerusi

The Group’s improved financial and operational performance can be attributed to: increased underwriting and investment activity, growing acceptance of the Takaful Malaysia brand, better market accessibility via enhanced distribution capabilities, and the development of strategic partnerships with Islamic banks. These have been complemented by new initiatives such as our investor relations programme, the Takaful awareness campaign and enhanced portals for the agency, corporate agents and bancatakaful. The Group’s success was also underpinned by strong support from our group and corporate clients, bank partners and customers.

THe Year In reVIeW – HIGHLIGHTs & aCHIeVeMenTs

Building the Takaful Brand We continued to carry out aggressive branding and marketing campaigns, and in the second quarter of 2012 launched the second wave of the highly successful ‘We Should Talk’ campaign. This once again leveraged on our unique 15% No Claim Rebate offered on all Takaful Malaysia general products. At present, Takaful Malaysia is the only operator to offer such a benefit. We have been consistently providing refunds on contributions paid if no claims were incurred during the coverage period.

The campaign conveyed the message that Takaful or Islamic insurance in general is suitable for all, Muslims and non-Muslims alike, and should be viewed as a first or primary choice for protection, not merely as an alternative to conventional insurance. It was well received, and led to positive growth in our customer base.

Peningkatan prestasi kewangan dan kendalian Kumpulan disebabkan oleh: peningkatan aktiviti pengunderaitan dan pelaburan, penerimaan jenama Takaful Malaysia yang semakin meluas, kebolehaksesan pasaran yang lebih baik melalui keupayaan pengagihan yang dipertingkatkan dan perkembangan perkongsian strategik dengan bank-bank Islam. Ini telah ditambah baik oleh inisiatif baharu seperti program hubungan pelabur, kempen kesedaran Takaful dan penambahbaikan portal untuk agensi, ejen korporat dan bankatakaful. Kejayaan kumpulan juga didukung oleh sokongan padu daripada pelanggan korporat dan kumpulan kami, rakan kongsi bank dan pelanggan.

TaHun DI DaLaM TInJauan – soroTan & PenCaPaIan

Membina Jenama Takaful Kami terus agresif di dalam menjalankan kempen penjenamaan dan pemasaran dan pada suku ke-2 tahun 2012, kami telah melancarkan peringkat kedua kempen ‘We Should Talk’ yang sangat berjaya. usaha ini sekali lagi memanfaatkan penawaran Rebat Tanpa Tuntutan 15% yang unik bagi semua produk am Takaful Malaysia. Pada masa ini, Takaful Malaysia merupakan satu-satunya pengendali yang menawarkan manfaat sedemikian. Kami telah memperuntukkan bayaran balik secara konsisten bagi sumbangan yang dibayar jika tiada tuntutan dibuat semasa tempoh perlindungan.

Kempen ini memberikan mesej bahawa Takaful atau insurans Islam secara amnya adalah sesuai untuk semua orang, orang Islam mahupun bukan Islam dan haruslah dianggap sebagai pilihan pertama atau utama untuk perlindungan, bukan semata-mata sebagai alternatif kepada insurans konvensional. Ia telah berjaya diterima dengan baik dan menghasilkan pertumbuhan positif dalam bilangan pelanggan kami.


Takaful Malaysia also embarked on a series of strategic briefings with fund managers, analysts and research houses, resulting in greater interest and confidence among the investor community and better coverage as well as valuation of the Company.

underwriting & Investment Takaful Malaysia continued to register strong performance in underwriting activities, which achieved record profits. Family Takaful contributed to about 60% of the total, largely from expansion in the group Family business.

During the financial year, the Group continued to be cautious in accepting only profitable underwriting contracts while avoiding those prone to greater risks. As a result, the Group was able to derive healthier underwriting profits and reduce the loss ratio of both Family Takaful and General Takaful businesses.

Despite volatile and increasingly complex investment environment during the year, investment registered a record breaking income at the Group level of RM363.3 million since the start of the Transformation programme in 2007, supported by effectiveness of our strategic asset allocation which is skewed towards achieving the long term return while minimising the volatility of the managed portfolios. This is done in a dynamic yet prudent manner, in strict adherence to our guidelines and policies.

By capitalising the active management strategy, equities and Sukuk portfolios continued to anchor the investment activities sustainably delivering exceptional investment yields from year to year since 2007. On equity side, the Company had been actively trading in the market adopting a strategy of selling into strength on any market run-up to lock in profits for our portfolios and buying back on any market weakness or correction in order to meet our targeted portfolio yield.

The Company picked counters that had commendable track records, capable management teams, quality growth with strong earnings visibility and solid balance sheets as well as healthy, free cash flow to sustain high dividend yield and high liquidity. As a result, equity generated double digit rOI of 11.98%.

Takaful Malaysia juga telah memulakan beberapa taklimat strategik dengan pengurus dana, penganalisis dan badan penyelidikan yang menghasilkan peningkatan minat dan keyakinan dalam kalangan komuniti pelabur selain liputan dan penilaian yang lebih baik bagi Syarikat.

Pengunderaitan & Pelaburan Takaful Malaysia terus mencatat prestasi kukuh dalam aktiviti pengunderaitan yang meraih keuntungan terbanyak. Takaful Keluarga menyumbang kira-kira 60% daripada jumlah tersebut, sebahagian besarnya daripada pengembangan dalam perniagaan Keluarga kumpulan.

Pada tahun kewangan 2012, Kumpulan terus mengambil sikap berhati-hati dengan menerima hanya kontrak pengunderaitan yang menguntungkan dan mengelak daripada kontrak yang cenderung kepada risiko yang lebih besar. Hasilnya, Kumpulan berupaya meraih keuntungan pengunderaitan yang lebih besar dan mengurangkan nisbah kerugian bagi kedua-dua perniagaan Takaful Keluarga dan Takaful Am.

Meskipun perkitaran pelaburan semakin kompleks dan tidak menentu, pelaburan mencatat perolehan tertinggi di peringkat Kumpulan sebanyak RM363.3 juta sejak program Transformasi dilancarkan pada tahun 2007 disokong oleh keberkesanan peruntukan aset strategik yang dipencong ke arah pulangan jangka panjang selain meminimumkan turun naik portfolio terurus. usaha ini dilakukan dengan cara yang dinamik namun berhemat dengan mematuhi garis panduan dan dasar kita.

Dengan memanfaatkan strategi pengurusan aktif, portfolio ekuiti dan Sukuk terus mengukuhkan aktiviti pelaburan dan memperolehi kadar hasil pelaburan yang memberangsangkan secara mampan dari tahun ke tahun sejak 2007. Dari segi ekuiti, syarikat telah berdagang secara aktif dalam pasaran dengan mengamalkan strategi penjualan pada kedudukan kukuh pada mana-mana pasaran yang meningkat untuk meraih keuntungan bagi portfolio kami dan membeli balik apabila pasaran mengalami kelemahan atau membuat pembetulan untuk memenuhi kadar hasil portfolio yang kami sasarkan.

Syarikat memilih kaunter yang mempunyai rekod yang baik, pasukan pengurusan yang cekap, pertumbuhan berkualiti dengan perolehan kukuh dan kunci kira-kira yang mantap selain aliran tunai bebas yang memberangsangkan untuk mengekalkan kadar hasil dividen dan pengaliran tunai yang tinggi. hasilnya, ekuiti telah menjana rOI dua angka sebanyak 11.98%.


Penyata Pengerusi


As for the Company’s Sukuk portfolio, it recorded an outstanding return of 7.15% despite current low interest rates. Supported by bigger new issuances during the year, our active management strategy enabled us to take advantage of the lower yield curve to realise profit from our existing holdings. We also benefited from numerous corporate exercises of issuers to capitalise on the low-interest risk environment resulting in redemption and/or refinancing of existing Sukuk.

fInanCIaL oVerVIeW

Group Performance For the year under review, the Group’s operating revenue grew by 19% to rM1.61 billion, while profit before taxation and zakat (PBTZ) was measured at RM125.5 million compared to RM101.4 million, increased by 24% from the previous financial year.

Profit after tax and zakat (PaTZ) grew by 31% to rM100.1 million from RM76.4 million in the previous financial year. The improved revenue and profit were largely attributable to higher sales generated by the family takaful business, better underwriting and investment results and higher net wakalah fee income arising from strong business growth.

Takaful Malaysia’s total asset size increased by 9% to rM6.4 billion. Total profit from investment, comprising realised gains and fair value change, increased by 18% to RM363.3 million in 2012 as compared to RM307.4 million in the previous financial year.

Portfolio Sukuk syarikat pula mencatat pulangan hebat sebanyak 7.15% meskipun kadar faedah rendah pada masa ini. Disokong oleh terbitan baharu yang lebih besar pada tahun 2012, strategi pengurusan aktif membolehkan kami meraih kelebihan daripada lengkuk kadar hasil yang lebih rendah untuk merealisasikan keuntungan daripada pemegangan kami yang sedia ada. Kami juga meraih manfaat daripada pelbagai usaha korporat penerbit untuk memanfaatkan persekitaran risiko faedah rendah untuk menebus dan/atau membiayai semula Sukuk sedia ada.

TInJauan KeWanGan

Prestasi Kumpulan untuk tahun dalam tinjauan, pendapatan kendalian Kumpulan meningkat sebanyak 19% kepada RM1.61 bilion sementara keuntungan sebelum cukai dan zakat (PBTZ) berjumlah rM125.5 juta berbanding RM101.4 juta pada tahun kewangan sebelumnya, iaitu peningkatan sebanyak 24%.

Keuntungan selepas cukai dan zakat (PaTZ) meningkat sebanyak 31% kepada RM100.1 juta berbanding dengan RM76.4 juta pada tahun kewangan sebelumnya. Pendapatan dan keuntungan yang bertambah baik disebabkan terutamanya oleh peningkatan jualan yang dijana oleh perniagaan takaful keluarga, hasil penaja jaminan dan pelaburan yang lebih baik di samping pendapatan yuran wakalah bersih yang lebihi tinggi susulan pertumbuhan perniagaan yang kukuh.

Jumlah saiz aset Takaful Malaysia meningkat 9% kepada rM6.4 bilion. Jumlah keuntungan daripada pelaburan, merangkumi laba terealisasi dan perubahan meningkat sebanyak 18% kepada RM363.3 juta pada tahun 2012 berbanding RM307.4 juta pada tahun kewangan sebelumnya.


Penyata Pengerusi


Company PerformanceThe Company achieved 36% growth in PBTZ amounting to rM127.8 million as compared to RM94.0 million in the previous financial year. Operating revenue increased by 23% to rM1.41 billion from rM1.14 billion in 2011. Total Gross contribution was recorded at RM1.2 billion, a 26% increased from the RM1.0 billion in 2011.

Family Takaful grew by 49% from RM567.7 million to RM848.7 million. The tremendous growth in Family Takaful business has far outpace the decrease in General Takaful contribution of 9% to RM349.5 million from RM383.3 million in the previous financial year.

The higher PBZT was largely due to better underwriting, investment results and higher net wakalah fee income arising from strong growth in Family Takaful Business.

DividendTakaful Malaysia continues to maintain a healthy dividend payout. In line with our stronger financial performance, the Board of Directors has declared an improved interim dividend payout of 25% amounting to RM40.7 million for the financial year ended 31 December 2012. The total interim dividends payout translate into a yield of more than 4% and slightly more than 40% of the current financial year profit after taxation and zakat.

reVIeW of suBsIDIarIes

PT syarikat Takaful Indonesia (sTI)Our Indonesian subsidiaries, PT asuransi Takaful umum (aTu), PT Asuransi Takaful Keluarga (ATK) and Syarikat Takaful Indonesia (STI) continue to face stiff competition from conventional domestic players who are still permitted to sell Islamic products. Consequently, contribution from our Indonesian operations to the Group’s bottom line is less than 5% of the total, with gross contribution standing at less than 15% of the Group’s total gross contribution.

Prestasi syarikatSyarikat mencapai pertumbuhan 36% dalam PBTZ berjumlah RM127.8 juta berbanding dengan RM94.0 juta pada tahun kewangan sebelumnya. Pendapatan kendalian meningkat 23% kepada RM1.41 bilion daripada RM1.14 bilion pada tahun 2011. Jumlah Sumbangan Kasar dicatat pada RM1.2 bilion, iaitu peningkatan sebanyak 26% daripada RM1.0 bilion pada tahun 2011.

Takaful Keluarga meningkat sebanyak 49% daripada RM567.7 juta kepada RM848.7 juta. Pertumbuhan hebat perniagaan Takaful Keluarga telah mengatasi dengan ketara penurunan sumbangan Takaful Am sebanyak 9% kepada RM349.5 juta daripada RM383.3 juta pada tahun kewangan sebelumnya.

PBZT yang lebih tinggi disebabkan terutamanya oleh pengunderaitan yang lebih baik, hasil pelaburan dan pendapatan yuran wakalah bersih yang lebih tinggi susulan pertumbuhan kukuh dalam Perniagaan Takaful Keluarga.

DividenTakaful Malaysia terus mengekalkan pembayaran dividen yang memberangsangkan. Sejajar dengan prestasi kewangan yang lebih kukuh, Lembaga Pengarah telah mengumumkan peningkatan pembayaran dividen interim 25% berjumlah RM40.7 juta bagi tahun kewangan berakhir 31 Disember 2012. Jumlah bayaran dividen interim mencerminkan kadar hasil lebih daripada 4% dan lebih tinggi daripada 40% bagi keuntungan selepas cukai dan zakat pada tahun kewangan semasa.

TInJauan suBsIDIarI

PT syarikat Takaful Indonesia (sTI)Subsidiari kami di Indonesia, PT Asuransi Takaful umum (ATu), PT Asuransi Takaful Keluarga (ATK) dan Syarikat Takaful Indonesia (STI) terus berdepan persaingan sengit daripada peserta konvensional domestik yang masih dibenarkan menjual produk Islam. Akibatnya, sumbangan daripada operasi Indonesia kami kepada perolehan Kumpulan berjumlah kurang 5% daripada jumlah perolehan, dengan sumbangan kasar mencakupi kurang 15% daripada jumlah sumbangan kasar Kumpulan.


Penyata Pengerusi


However, we remain positive of our prospects in the country given the Group’s 17-year presence in Indonesia and expected regulatory changes to disallow the operating of Islamic windows by conventional insurers. Our confidence is further bolstered by the country’s fast growing population, a large proportion of whom is Muslim. With rising incomes in tandem with rapid development, demand for protection and investment products in Islamic and conventional insurance is likely to increase in the near future.

For 2013, our aim remains to grow our Indonesia business via the bank and retail agency force.

asean retakaful International (L) Ltd (arIL)Having completed its commutation process, ARIL is voluntarily winding up and the process is expected to be completed in 2013.

oPeraTIons reVIeW

During the year under review, Takaful Malaysia successfully implemented its document management system for both Family and General operations. This has decreased both the turnaround time and paper utilisation, by 50% and 80% respectively.

Retail agency customers can enquire on their certificate information online and even interact with our Customer Service personnel. We have also integrated core certificate servicing activities with SMS integration. Customers and agents will now be notified via SMS regarding status movement, allowing for faster dissemination of information on demand. With this, all information required is at the finger tip of the respective agents.

Walau bagaimanapun, kami kekal positif dengan prospek kami di negara tersebut berikutan kehadiran Kumpulan selama 17 tahun di Indonesia dan jangkaan perubahan pengawalseliaan untuk tidak membenarkan operasi produk Islam oleh penanggung insurans konvensional. Keyakinan kami turut diperkukuh oleh populasi negara tersebut yang meningkat dengan pantas, sebahagian besarnya ialah penganut agama Islam. Dengan peningkatan pendapatan yang seiring dengan pembangunan pesat, permintaan bagi perlindungan dan produk pelaburan dalam insurans Islam dan konvensional berkemungkinan meningkat dalam masa terdekat.

Bagi tahun 2013, matlamat kami adalah untuk mengembangkan perniagaan kami di Indonesia melalui bank dan agensi runcit.

asean retakaful International (L) Ltd (arIL)Susulan proses tukar tertibnya, ARIL dibubarkan secara sukarela dan proses tersebut dijangka akan selesai pada tahun 2013.

TInJauan oPerasI

Pada tahun dalam tinjauan, Takaful Malaysia telah berjaya melaksanakan sistem pengurusan dokumen untuk operasi Keluarga dan Am. usaha ini telah mengurangkan masa pusing balik dan penggunaan kertas masing-masing sebanyak 50% dan 80%.

Pelanggan agensi runcit kini boleh mengemukakan pertanyaan dalam talian mengenai maklumat sijil mereka malah boleh berinteraksi dengan kakitangan Khidmat Pelanggan kami. Kami juga telah menyepadukan aktiviti penservisan sijil teras dengan integrasi SMS. Kini pelanggan dan ejen akan dimaklumkan melalui SMS mengenai peralihan status untuk membolehkan penyebaran maklumat mengikut permintaan dengan lebih pantas. Maka, semua maklumat yang diperlukan kini boleh diakses dengan mudah dan cepat oleh ejen-ejen yang berkenaan.


Penyata Pengerusi


Another major milestone project was the creation of multiple internet links for our various portals (customer portals, partner portals, agency portals and corporate website). With high-availability access from different Internet Service Providers, we are able to better serve our customers and reduce potential downtime on our portals.

These portals empower our sales force to better serve customers. For example, our bank partners now have direct access to certification information via the Banca Portal, effectively reducing turnaround time from two weeks to a single day. There are also tremendous cost savings in several IT project implementations. Our partnership with Canon on enterprise-wide printing solutions has reduced our printing costs by 51%.

Growing our Peopleas always, Takaful Malaysia continues to prioritise its prized asset, our people. The Group’s human capital is and will remain our number one strength and the key to our continued progress and sustainability.

During the year, the Group continued to recruit, reward and develop its employees to meet its operational requirements. From comprehensive organisation-wide programmes to customised courses, a wide range of initiatives were implemented to develop the required skillsets and mindsets.

Satu lagi projek pencapaian yang besar ialah pewujudan pautan Internet berbilang untuk pelbagai portal kami (portal pelanggan, portal rakan kongsi, portal agensi dan laman sesawang korporat). Akses yang lebih tersedia daripada pelbagai Penyedia Perkhidmatan Internet membolehkan kami memberikan perkhidmatan yang lebih baik kepada pelanggan dan mengurangkan kemungkinan masa rosak di portal kami.

Portal ini memperkasa warga jualan kami untuk memberikan khidmat pelanggan yang lebih baik. Misalnya, rakan kongsi bank kami kini mempunyai akses terus kepada maklumat pensijilan melalui Portal Banka yang mengurangkan masa pusing balik secara berkesan dari dua minggu kepada sehari. Terdapat juga penjimatan kos yang besar dalam beberapa pelaksanaan projek IT. Perkongsian kami dengan Canon dalam penyelesaian pencetakan telah mengurangkan kos pencetakan kami sebanyak 51%.

Membangunkan Warga Kerja KamiSeperti yang lazim, Takaful Malaysia terus memberikan keutamaan kepada asetnya yang paling berharga, warga kerja kami. Modal insan Kumpulan adalah dan akan terus kekal menjadi kekuatan paling penting dan kunci kemajuan dan kemampanan kami yang berterusan.

Pada tahun 2012, Kumpulan terus merekrut, mengganjari dan membangunkan warga kerjanya untuk memenuhi keperluan operasi. Pelbagai inisiatif, daripada program komprehensif seluruh organisasi hingga kursus khusus, telah dilaksanakan untuk membangunkan kemahiran dan set minda yang diperlukan.


Penyata Pengerusi


Continuous efforts were also made to improve the workplace environment towards creating a conducive atmosphere for employees. Through these and other people-oriented policies, the ultimate goal is to position Takaful Malaysia as the preferred employer within the insurance industry.

Going forward, the Company will ensure the right working atmosphere, remuneration packages, performance measurements and culture are in place to attract and retain the right talent as well as to create an atmosphere that enables staff to be aligned to the Company’s vision and mission.

CorPoraTe soCIaL resPonsIBILITY

Takaful Malaysia continued to fulfil its Corporate Social Responsibility (CSR) aspirations by contributing over RM1,000,000 to various charitable organisations, causes and schools during the year. The amount disbursed was significantly higher than in previous years. Over thousands of needy families, communities, schoolchildren and victims of natural disasters have benefitted from this contribution. We also hastened claim approvals in special cases and made zakat contributions to all 14 state religious departments.

ProsPeCTs anD ouTLooK

While the global economy is expected to remain sluggish, signs of a gradual recovery are evident. The IMF forecasts that for 2013, global GDP is likely to be slightly higher than in 2012, at 3.6%. Europe is likely to remain mired in the Eurozone crisis but in the uS, recovery is being fuelled by stabilisation of housing markets.

In Asia, China’s economy is showing signs of bottoming-out after seven consecutive quarters of slowdown. The improvement is supported by increasing exports, manufacturing production, fixed asset investment and retail sales.

Notably, South East asian countries have maintained their positive growth trajectory. On the domestic front, official forecast for the Malaysian GDP is between 4.5 to 5.5%. This is based on sustainable domestic consumption and resurgence of private sector investment. Meanwhile, public sector consumption and investment stemming from Entry Point Projects (EPPs) under the Economic Transformation Programme (ETP) are likely to further uplift the economy in 2013.

usaha berterusan juga telah dilaksanakan untuk menambah baik persekitaran tempat kerja untuk mewujudkan suasana kerja yang kondusif. Melalui usaha-usaha ini serta dasar berorientasikan insan yang lain, matlamat akhir adalah untuk menempatkan Takaful Malaysia sebagai majikan pilihan dalam industri insurans.

Melangkah ke hadapan, syarikat akan memastikan persekitaran kerja yang sesuai, pakej ganjaran, pengukuran prestasi dan budaya dilaksanakan untuk menarik dan mengekalkan bakat terbaik selain mewujudkan persekitaran yang membolehkan kakitangan bergerak selari dengan visi dan misi Syarikat.

TanGGunGJaWaB sosIaL KorPoraT

Takaful Malaysia terus memenuhi aspirasi Tanggungjawab Sosial Korporat (CSR) dengan sumbangan lebih RM1,000,000 kepada pelbagai pertubuhan amal, kebajikan dan sekolah pada tahun 2012. Amaun yang disumbangkan adalah lebih tinggi berbanding tahun-tahun sebelumnya. Lebih beribu keluarga yang memerlukan, komuniti, kanak-kanak sekolah dan mangsa bencana alam telah meraih manfaat daripada sumbangan ini. Kami juga telah mempercepat kelulusan tuntutan dalam kes tertentu dan memberikan sumbangan zakat kepada kesemua 14 jabatan agama negeri.

HaraPan Dan ProsPeK

Meskipun ekonomi global dijangka kekal perlahan, terdapat tanda-tanda pemulihan beransur-ansur yang jelas. IMF meramalkan KDNK global pada tahun 2013 berkemungkinan akan tinggi sedikit berbanding tahun 2012, iaitu pada kadar 3.6%. Eropah akan terus dibelenggu krisis Eurozone tetapi pemulihan di aS akan dijana oleh penstabilan pasaran perumahan.

Di Asia, ekonomi China menunjukkan tanda-tanda pemulihan setelah tujuh suku tahun berturut-turut mengalami kelembapan. Penambahbaikan ini disokong oleh peningkatan eksport, pengeluaran perkilangan, pelaburan aset tetap dan jualan runcit.

Paling ketara, negara-negara Asia Tenggara telah mengekalkan trajektori pertumbuhan yang positif. Di dalam negara, ramalan rasmi bagai KDNK Malaysia adalah antara 4.5 hingga 5.5%. Angka ini berdasarkan penggunaan dalam negeri yang mampan dan kebangkitan semula pelaburan sektor swasta. Sementara itu, penggunaan sektor awam dan pelaburan daripada Projek Permulaan (EPP) di bawah Program Transformasi Ekonomi (ETP) berkemungkinan melonjakkan ekonomi selanjutnya pada tahun 2013.


Penyata Pengerusi


In these times of both challenges and opportunity, the Company views the Takaful market positively. With low penetration rates, coupled with a growing population and rising disposal incomes, the growth prospects are good. Combined efforts of the public and private sectors to promote Takaful and a strengthening of the regulatory framework have also contributed to growing acceptance among consumers and investors. However, we are fully aware of the competitive nature of our industry, and Takaful Malaysia is gearing to compete with both Takaful and conventional insurance providers to grow its share of the pie.

We will look to regular contribution products, specifically the family Takaful business, including investment-linked products to drive growth. Takaful Malaysia is a clear leader in this segment with a 40% market share and we will we leverage on our pole position to further expand our share. We will also further penetrate the employee benefits business and broaden our non-motor general business.

Islamic financing products, which require appropriate risk management, present an opportunity for further growth of the Takaful industry, as Takaful would be the ideal risk transfer mechanism for Shariah-compliant financings.

In terms of strategy, Takaful Malaysia, will look to provide customer-centric value propositions via multi distribution channels and to further grow our brand in the hearts and minds of the market. In this regard, we will continue to focus on delivering quality service and value to customers by offering an excellent customer experience via Takaful myCare Centres.

We will constantly review our brand mix to ensure that our offerings are competitively priced and supported by excellent customer service, operational efficiency and strong capital position to capture the untapped market. This would be supported by further improvement in our sales strategies and innovation in products and services.

In further reaching out to the public, Takaful Malaysia aims to increase its agency force to 2,500 via the ‘Be myAgent’ recruitment drive, to extend the Group’s reach and accessibility. At the same time, we are working on new products for 2013, and are exploring customer relationship management (CRM) applications to enhance and improve our customer service.

Dalam masa yang mencabar mahupun dipenuhi peluang, syarikat melihat pasaran Takaful secara positif. Kadar penembusan yang rendah di samping populasi yang meningkat serta kenaikan pendapatan boleh guna, prospek pertumbuhan adalah menggalakkan. Gabungan usaha sektor awam dan swasta untuk mempromosi Takaful dan pengukuhan rangka kerja pengawalseliaan juga telah menyumbang kepada peningkatan penerimaan dalam kalangan pengguna dan pelabur. Walau bagaimanapun, kami menyedari sifat persaingan dalam industri ini, justeru Takaful Malaysia bersedia untuk bersaing dengan penyedia Takaful dan insurans konvensional untuk meningkatkan perkongsian pasaran dalam industri.

Kami menjangkakan produk sumbangan biasa, khususnya perniagaan Takaful Keluarga termasuk produk berkait pelaburan akan menjana pertumbuhan. Takaful Malaysia merupakan peneraju dalam segmen ini dengan bahagian pasaran 40% dan kami akan memanfaatkan kedudukan teratas kami untuk terus meningkatkan perkongsian pasaran kami. Kami akan turut menembusi seterusnya perniagaan manfaat pekerja dan meluaskan perniagaan am bukan motor.

Produk pembiayaan Islam yang memerlukan pengurusan risiko sewajarnya merupakan peluang untuk pertumbuhan selanjutnya bagi industri Takaful disebabkan Takaful merupakan mekanisme pemindahan risiko yang ideal bagi pembiayaan berlandaskan Syariah.

Dari segi strategi, Takaful Malaysia akan meneroka usul nilai berorientasikan pelanggan melalui saluran agihan pelbagai di samping terus mengembangkan jenama kami di hati dan minda pasaran. Sehubungan ini, kami akan terus memfokuskan penyampaian perkhidmatan dan nilai berkualiti kepada pelanggan dengan menawarkan pengalaman pelanggan yang terbaik menerusi Pusat Takaful myCare.

Kami akan sentiasa menilai gabungan jenama kami untuk memastikan penawaran kami mempunyai harga yang kompetitif dan disokong oleh khidmat pelanggan yang hebat, kecekapan operasi dan kedudukan modal yang kukuh untuk menguasai pasaran yang belum diterokai. usaha ini akan disokong oleh penambahbaikan selanjutnya dalam strategi jualan kami dan inovasi produk dan perkhidmatan.

untuk meningkatkan akses kepada orang ramai, Takaful Malaysia berhasrat menambah bilangan agensi kepada 2,500 melalui kempen perekrutan ‘Be myAgent’. usaha ini dijangka akan menambah jangkauan dan kebolehaksesan Kumpulan. Pada masa yang sama, kami sedang mengusahakan produk-produk baharu bagi tahun 2013 dan meneroka aplikasi pengurusan hubungan pelanggan (CRM) untuk menambah baik dan mempertingkat perkhidmatan pelanggan.


Penyata Pengerusi


We will also continue building on existing initiatives that have proven to be successful. The ‘We Should Talk’ campaign is one such example and plans are in place to up the momentum in 2013. We will also focus on our Takaful myGenLife plan that gives customers protection, savings, retirement and investment needs all in one.

In essence, Takaful Malaysia in 2013 will continue to emphasise the four core areas of customer reach, operational agility, cost competitiveness and stakeholder confidence. Our ultimate goal is to outpace the market and firmly establish ourselves as the preferred choice for protection products and by doing so, delivering sustainable top line and bottom line growth.

aCKnoWLeDGeMenTs

I am pleased to announce the appointment of y. Bhg. Dato’ Othman abdullah as a new Independent Non-Executive Director effective 1 December 2012. y.Bhg. Dato’ Othman brings a wealth of experience with him and will be an asset in assisting the Board to discharge its duties going forward into FY2013.

On behalf of the Board, I wish to express our sincere appreciation to the staff of Takaful Malaysia for their tireless dedication and commitment and their consummate professionalism during the year under review. Without a doubt, their contributions have been a key component of our growth during the year under review.

Kami akan terus mengembangkan inisiatif sedia ada yang telah terbukti berjaya. Kempen ‘We Should Talk’ merupakan salah satu contoh dan rancangan telah diatur untuk meningkatkan momentumnya pada tahun 2013. Kami akan turut memfokuskan pelan Takaful myGenLife kami yang menyediakan keperluan perlindungan, simpanan, persaraan dan pelaburan kepada para pelanggan.

Ringkasnya, pada tahun 2013 Takaful Malaysia akan terus memfokuskan pada empat bidang teras iaitu jangkauan pelanggan, ketangkasan operasi, daya saing kos dan keyakinan pemegang kepentingan. Matlamat unggul kami adalah untuk mengatasi pasaran dan mengukuhkan Kumpulan sebagai pilihan bagi produk perlindungan, sekali gus mengekalkan pertumbuhan perolehan kasar dan perolehan bersih yang mampan.

PenGHarGaan

Saya berbesar hati mengumumkan pelantikan y.Bhg. Dato’ Othman abdullah sebagai Pengarah Bukan Eksekutif yang baharu berkuat kuasa 1 Disember 2012. y.Bhg. Dato’ Othman memiliki pengalaman luas dan akan menjadi aset dalam membantu Lembaga melaksanakan tanggungjawabnya melangkah ke hadapan pada tahun kewangan 2013.

Bagi pihak Lembaga, saya ingin mengucapkan setinggi-tinggi penghargaan kepada kakitangan Takaful Malaysia atas dedikasi dan komitmen mereka yang bersungguh-sungguh serta profesionalisme pada tahun dalam tinjauan. Yang pasti, sumbangan mereka merupakan komponen penting bagi pertumbuhan kita pada tahun 2012.


Penyata Pengerusi


Lembaga juga ingin mengucapkan terima kasih kepada Pasukan Pengurusan kerana menerajui Takaful Malaysia menuju setahun lagi pertumbuhan yang cemerlang; rakan kongsi perniagaan dan pelanggan atas sokongan mereka; dan pemegang saham atas keyakinan mereka yang tidak berbelah-bagi terhadap syarikat sepanjang tahun 2012.

Akhir sekali, saya ingin menyampaikan penghargaan kepada ahli-ahli Lembaga Pengarah, Jawatankuasa Pengarah dan Badan Penasihat Syariah atas nasihat mereka sepanjang tahun pertumbuhan dan kemajuan positif bagi Takaful Malaysia.

Y. Bhg. Dato’ Paduka Ismee IsmailPengerusi

The Board also wishes to extend its thanks to Management Team for helming Takaful Malaysia to another year of sterling growth; its business partners and customers for their support; and our shareholders for their unwavering confidence in the Company throughout the year under review.

Last but not least, I wish to express my gratitude to my fellow Members of the Board, Board Committees and the Shariah Advisory Body for their guidance in what has been a positive year of growth and progress for Takaful Malaysia.

Y. Bhg. Dato’ Paduka Ismee IsmailChairman


Penyata Pengerusi

FINANCIAL STATEMENTS

Directors’ Report

Statement by Directors

Statutory Declaration

Independent Auditors’ Report

Report of the Shariah Advisory Body

Statements of Financial Position

Statements of Profit or Loss and Other Comprehensive Income

Statements of Changes In Equity

Statements of Cash Flows

Notes to the Financial Statements

074

079

080

081

083

085

089

093

097

099

074 SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT 075SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT074 SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT 075SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT

Directors’ Reportfor the year ended 31 December 2012

the Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 31 December 2012.

Principal activities

the Company is principally engaged in managing of family and general takaful businesses, whilst the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. there has been no significant change in the nature of these activities during the financial year.

Results

Group Company RM’000 RM’000Profit for the year attributable to: Owners of the Company 101,245 102,657 Non-controlling interests (1,101) -

100,144 102,657

Reserves and provisions

there were no material transfers to or from reserves and provisions during the financial year under review, except as disclosed in the financial statements.

Dividends

Since the end of the previous financial year, the Company:

i) Paid a final single tier dividend of 10 sen per ordinary share totalling RM16,281,700 in respect of the financial year ended 31 December 2011 on 28 May 2012;

ii) Declared a first interim single tier dividend of 15 sen per ordinary share totalling RM24,422,550 in respect of the financial year ended 31 December 2012 on 7 August 2012 and paid on 21 September 2012; and

iii) Declared a second interim single tier dividend of 10 sen per ordinary share totalling RM16,281,700 in respect of the financial year ended 31 December 2012 on 14 December 2012 and paid on 11 January 2013.

No final dividend recommended to be paid for the year under review by the Directors.



Directors of the Company

Directors who served since the date of the last report are:

y. Bhg. Dato’ Paduka Ismee Ismaily. Bhg. Dato’ Mohamed hassan Md. kamily. Bhg. Dato’ Sulaiman Mohd yusof Puan Rozaida OmarEncik Mahadzir AzizanEncik Johan AbdullahEncik Zakaria Ismaily. Bhg. Dato’ Othman Abdullah (appointed w.e.f 1.12.2012)

In accordance with Article 62 of the Company’s Articles of Association, Encik Mahadzir Azizan, y. Bhg. Dato’ Sulaiman Mohd yusof and Encik Zakaria Ismail will retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.

In accordance with Article 66A of the Company’s Articles of Association, y. Bhg. Dato’ Othman Abdullah will retire at the forthcoming Annual General Meeting and, being eligible, offers himself for re-election.

Directors’ interests in shares

None of the Directors holding office at 31 December 2012 had any interest in the shares and options over shares of the Company and of its related corporations during the financial year.

Issue of shares and debentures

there were no changes in the authorised, issued and paid-up capital of the Company during the financial year.

there were no debentures issued during the financial year.

Options granted over unissued shares

No options were granted to any person to take up unissued shares of the Company during the financial year.

Directors’ benefits

Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements or the fixed salary of a full time employee of the Company or of related corporations) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest.


Statement on corporate governance and internal controls

(a) Board responsibilities

the Board of Directors (the Board) is ultimately responsible for the proper stewardship of the Group’s and Company’s resources, the achievement of corporate objectives and good corporate citizenship and discharges this responsibility through compliance with the takaful (Amendment) Act, 1984 and Bank Negara Malaysia’s (BNM) Guidelines on Directorship for takaful Operators (BNM/Rh/GL 004-1) and other directives, in addition to adopting other best practices on corporate governance.

the Board comprises seven non-executive directors and one executive director to enable a balanced and objective consideration of issues, hence facilitating optimal decision making. the executive director adds value to the decision making process by providing a management and operational perspective to issues placed before the Board.

(b) Management accountability

the Group and the Company have an organisational structure showing all reporting lines as well as clearly documented job descriptions for all management and executive employees.

Authority limits, as approved by the Board, are clearly established and made available to all employees.

(c) Corporate independence

the Group and the Company have complied with BNM’s Guidelines on Related Party transactions for takaful Operators (BNM/Rh/GL 004-7). Necessary disclosures have been made to the Board and when required, prior Board’s approval has been obtained. All material related party transactions have been disclosed in Note 40 to the financial statements.

(d) Internal controls and operational risk management

the Board has overall oversight responsibility to ensure the Group and the Company maintain an adequate system of internal controls, effective and efficient operations, and risk management, as well as procedures to ensure compliance with laws, regulations, internal guidelines and requirements to safeguard the assets of the Group and the Company and stakeholders’ interests.

the Group and the Company established the Operational Risk Management Framework to ensure an ongoing process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations.

All new takaful products are governed by the Group’s and the Company’s Product Development Framework. the Management Committee and Appointed Actuary are required to approve before any product can be launched. A product risk assessment also forms part of the process for new product approvals.

Whistle Blowing Policy & Fraud and Integrity Policy, Shariah Governance Framework and Assets and Liabilities Management Framework are also in place to provide basic structure and further strengthen the existing control mechanism underlying the business activities.

Business Continuity Management is consistently practiced and tested annually to safeguard the lives of the employees and others in the office premises and ensure the business is up and running at all times.

the Board, Group Managing Director and Management Committee are consciously committed to the risk culture and ensure Board Risk Committee and Management Risk Committee perform as required.



Statement on corporate governance and internal controls (continued)

(e) Public accountability

As custodian of public funds, the Group’s and the Company’s dealings with the public are always conducted fairly, honestly and professionally.

(f) Financial reporting

the Group and the Company have maintained proper accounting records and the Group’s and the Company’s financial statements are prepared in accordance with Malaysian Financial Reporting Standards (MFRS) issued by the Malaysian Accounting Standards Board (MASB), International Financial Reporting Standards (IFRS), the provisions of the Companies Act, 1965, the takaful (Amendment) Act, 1984 and takaful Guidelines/Circular issued by BNM and Principles of Shariah.

Other statutory information

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

i) all known impaired debts have been written off and adequate impairment allowance made for impaired debts,

ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might be expected so to realise, and

iii) there was adequate provision for incurred claims, including Incurred But Not Reported (IBNR) claims.

At the date of this report, the Directors are not aware of any circumstances:

i) that would render the amount written off for impaired debts or the amount of the provision for impaired debts and provision for incurred claims including IBNR claims in the Group and in the Company inadequate to any substantial extent, or

ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or

iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or

iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading.

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

i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or

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

No contingent liability or other liability of any company in the Group 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 of the Company to meet their obligations as and when they fall due.



Statement on corporate governance and internal controls (continued)

Other statutory information (continued)

For the purpose of this paragraph, contingent and other liabilities do not include liabilities arising from contracts of takaful underwritten in the ordinary course of business of the Group and of the Company.

In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year ended 31 December 2012 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of the financial year and the date of this report.

Auditors

the auditors, Messrs kPMG Desa Megat & Co., have indicated their willingness to accept re-appointment.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

__________________________________Dato’ Paduka Ismee Ismail

__________________________________Dato’ Mohamed Hassan Md. Kamil

kuala Lumpur

Date: 15 March 2013



In the opinion of the Directors, the financial statements set out on pages 85 to 326 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the Companies Act, 1965 in Malaysia and comply with the Principles of Shariah so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2012 and of their financial performance and cash flows for the financial year then ended.

In the opinion of the Directors, the information set out in Note 42 on page 327 to the financial statements have been compiled in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

__________________________________Dato’ Paduka Ismee Ismail

__________________________________Dato’ Mohamed Hassan Md. Kamil

kuala Lumpur

Date: 15 March 2013

Statement by Directorspursuant to Section 169(15) of the Companies Act, 1965


Statutory Declarationpursuant to Section 169(16) of the Companies Act, 1965

I, Lee hin Sze, the officer primarily responsible for the financial management of Syarikat takaful Malaysia Berhad, do solemnly and sincerely declare that the financial statements set out on pages 85 to 327 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the above named in kuala Lumpur in the Federal territory on 15 March 2013.

__________________________________ Lee Hin Sze

Before me:


Report on the Financial Statements

We have audited the financial statements of Syarikat takaful Malaysia Berhad, which comprise the statements of financial position as at 31 December 2012 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, changes in equity and, cash flows of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 85 to 326.

Directors’ Responsibility for the Financial Statements

the Directors of the Company are responsible for the preparation of these financial statements so as to give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia. the Directors are also responsible for such internal controls as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. the procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the Company as of 31 December 2012 and of their financial performance and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

b) We have considered the accounts and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 5 to the financial statements.

Independent Auditors’ Reportto the members of Syarikat Takaful Malaysia Berhad

(Company No. 131646-K)(Incorporated in Malaysia)


Report on Other Legal and Regulatory Requirements (continued)

c) We are satisfied that the accounts 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 financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes.

d) the audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act.

Other Reporting Responsibilities

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. the information set out in Note 42 on page 327 to the financial statements has been compiled by the Company as required by the Bursa Malaysia Securities Berhad Listing Requirements and is not required by the Malaysian Financial Reporting Standards or International Financial Reporting Standards. We have extended our audit procedures to report on the process of compilation of such information. In our opinion, the information has been properly compiled, in all material respects, in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.

Other Matters

this report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Desa Megat & Co Mok Wan KongFirm Number: AF 0759 Approval Number: 2877/12/14 (J)Chartered Accountants Chartered Accountant

Petaling Jaya, Selangor

Date: 15 March 2013

Independent Auditors’ Reportto the members of Syarikat Takaful Malaysia Berhad (Company No. 131646-K)(Incorporated in Malaysia)


We have reviewed the principles and the contracts relating to the products and transactions introduced by Syarikat takaful Malaysia Berhad (takaful Malaysia) during the financial year ended 31 December 2012. We have also conducted our reviews as to whether the business, operations and activities of takaful Malaysia are in compliance with the Shariah and the Shariah rulings as issued by the Shariah Advisory Council of Bank Negara Malaysia.

the Management of takaful Malaysia is responsible in ensuring that takaful Malaysia conducts its business, operations and activities in accordance with the Shariah. It is our responsibility to form an independent opinion, based on our reviews of the operations of takaful Malaysia.

We have assessed all work presented by examining them on a test case basis, evaluating each type of transaction, its relevant documentation and procedures as adopted by takaful Malaysia.

Our assessments were planned in a way to ensure all the information and explanations considered necessary for Shariah compliance were obtained so that there were no violation.

In carrying out our roles and responsibilities, we hereby submit the following report for the financial year ended 31 December 2012:

1. the Shariah Advisory Body (SAB) held six (6) meetings to review various products, transactions and processes in line with the Shariah;

2. In the said meetings, we discussed and approved two (2) new products as well as deliberations on other issues in relation to takaful products;

3. We also approved the revised product documents arising as a result of the change in the takaful model from Mudharabah to Wakalah; and

4. Furthermore, we also approved the Mudharabah (profit) and surplus distribution rate declarations for Family and General takaful products.

In our opinion:

1. the contracts, transactions and dealings entered into by takaful Malaysia during the financial year ended 31 December 2012 were in compliance with the Shariah;

2. All investments were Shariah compliant;

3. the allocation of profits and losses charged in relation to investment accounts conformed to the Shariah principles;

4. All earnings from all sources or by means prohibited by the Shariah were considered for disposal to charitable causes; and

5. the calculation of zakat was in compliance with the Shariah.



We, the members of the Shariah Advisory Body of takaful Malaysia, do hereby confirm that the operations of takaful Malaysia for the financial year ended 31 December 2012 were conducted in conformity with the Shariah.

We bear witness only to what we know, and we could not well guard against the unseen! (surah Yusuf, verse: 81)

Chairman of the SAB : __________________________________Dr. Ahmad Shahbari @ Sobri Salamon

Member of the SAB : __________________________________Ustaz Mohd. Bakir Hj. Mansor

kuala Lumpur

Date: 15 March 2013



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.


Statements of Profit or Loss and Other Comprehensive Incomefor the year ended 31 December 2012

Group31.12.2012 31.12.2011

Note

Takaful Operator

RM’000

Family TakafulRM’000

General TakafulRM’000

GroupRM’000

Takaful Operator

RM’000



GroupRM’000

Operating revenue 21 19,456 1,159,386 432,468 1,607,534 14,382 865,104 470,421 1,345,473

Takaful operator income 476,548 - - - 327,798 - - -

Gross earned contributions 22(i) - 987,661 457,129 1,444,313 - 694,719 401,747 1,096,076

Contributions ceded to retakaful 22(ii) - (46,869) (121,955) (168,824) - (28,671) (114,401) (143,072)

Net earned contributions 22(iii) - 940,792 335,174 1,275,489 - 666,048 287,346 953,004

Administrative income - 187 23,158 23,345 - - 24,708 24,708

Investment income 23 19,456 186,381 31,031 233,569 14,382 165,760 28,532 204,630

Realised gains and (losses) 24 9,699 98,082 13,508 121,289 9,299 71,641 16,389 97,329

Fair value gains and (losses) 25 845 10,634 (306) 8,591 1,460 12,009 643 5,436

Other operating income 26 10,852 6,587 5,675 16,543 10,238 37,116 45,711 86,979

Other income 40,852 301,871 73,066 403,337 35,379 286,526 115,983 419,082

Gross benefits and claims paid 27 - (484,087) (173,590) (654,024) - (432,862) (189,669) (618,544)

Claims ceded to retakaful 27 - 29,475 26,523 55,998 - 22,113 38,902 61,015

Gross change to contract liabilities 27 - (46,333) (55,655) (101,988) - (49,603) (66,550) (116,153)

Change to contract liabilities ceded to retakaful 27 - 10,758 30,169 40,927 - 5,630 16,141 21,771

Net benefits and claims 27 - (490,187) (172,553) (659,087) - (454,722) (201,176) (651,911)

Wakalah fee expense - (186,041) (94,226) - - (121,096) (23,337) -

Commission expense/Administrative fees (103,297) (9,642) (9,532) (122,247) (61,636) (6,383) (32,809) (100,737)

Expense reserves 18 (70,110) - - (70,110) (7,317) - - (7,317)

Management expenses 28 (208,039) - - (205,721) (189,714) - - (187,068)

Other operating expenses 30 (8,838) (12,722) (5,319) (23,689) (3,092) (9,544) (5,458) (18,097)

Other expenses (390,284) (208,405) (109,077) (421,767) (261,759) (137,023) (61,604) (313,219)

Total profit for the year 127,116 544,071 126,610 597,972 101,418 360,829 140,549 406,956

Profit attributable to the takaful Operator/participants - (544,718) (131,231) (472,514) - (360,829) (140,549) (305,538)

Profit before taxation and zakat 127,116 (647) (4,621) 125,458 101,418 - - 101,418

Zakat (1,000) - - (1,000) (733) - - (733)

tax expense 31 (24,526) - - (24,314) (24,306) - - (24,306)

Profit for the year 101,590 (647) (4,621) 100,144 76,379 - - 76,379


Company 31.12.2012 31.12.2011

Note

Takaful Operator

RM’000



CompanyRM’000

Takaful Operator

RM’000



CompanyRM’000

Operating revenue 21 17,000 1,013,929 379,711 1,407,489 11,652 721,794 411,239 1,140,915

Takaful operator income 415,046 - - - 262,067 - - -

Gross earned contributions 22(i) - 862,722 397,259 1,259,504 - 563,342 334,768 897,720

Contributions ceded to retakaful 22(ii) - (33,244) (112,989) (146,233) - (12,609) (89,892) (102,501)

Net earned contributions 22(iii) - 829,478 284,270 1,113,271 - 550,733 244,876 795,219

Administrative income - 187 22,401 22,588 - - 24,708 24,708

Investment income 23 17,000 165,218 30,164 209,708 11,652 154,058 27,923 190,253

Realised gains and (losses) 24 9,047 92,909 13,358 115,314 8,555 69,681 16,311 94,547

Fair value gains and (losses) 25 840 10,256 (306) 8,796 1,450 9,393 643 2,821

Other operating income 26 7,141 5,514 4,953 11,037 6,907 36,017 41,157 77,995

Other income 34,028 274,084 70,570 367,443 28,564 269,149 110,742 390,324

Gross benefits and claims paid 27 - (415,977) (153,229) (565,553) - (366,998) (154,862) (517,873)

Claims ceded to retakaful 27 - 19,349 23,382 42,731 - 14,795 26,638 41,433

Gross change to contract liabilities 27 - (46,980) (68,108) (115,088) - (49,222) (96,318) (145,540)

Change to contract liabilities ceded to retakaful 27 - 10,530 37,678 48,208 - 5,510 47,304 52,814

Net benefits and claims 27 - (433,078) (160,277) (589,702) - (395,915) (177,238) (569,166)

Wakalah fee expense - (155,362) (70,501) - - (84,490) - -

Commission expense/Administrative fees (74,865) (9,642) (9,330) (93,613) (30,268) (6,383) (31,145) (67,705)

Expense reserves 18 (69,215) - - (69,215) (5,958) - - (5,958)

Management expenses 28 (171,234) - - (168,813) (151,552) - - (148,874)

Other operating expenses 30 (5,091) (11,596) (3,732) (20,599) (8,894) (9,544) (5,458) (23,888)

Other expenses (320,405) (176,600) (83,563) (352,240) (196,672) (100,417) (36,603) (246,425)

Total profit for the year 128,669 493,884 111,000 538,772 93,959 323,550 141,777 369,952

Profit attributable to the takaful Operator/participants - (493,884) (111,000) (410,952) - (323,550) (141,777) (275,993)

Profit before taxation and zakat 128,669 - - 127,820 93,959 - - 93,959

Zakat (789) - - (789) (474) - - (474)

tax expense 31 (24,586) - - (24,374) (21,776) - - (21,776)

Profit for the year 103,294 - - 102,657 71,709 - - 71,709




Group31.12.2012 31.12.2011

Note

Takaful Operator

RM’000



GroupRM’000

Takaful Operator

RM’000



GroupRM’000

Profit for the year 101,590 (647) (4,621) 100,144 76,379 - - 76,379

Other comprehensive income/(expense)(net of tax)

Fair value change of available-for-sale financial assets 2,905 (13,384) 1,084 2,905 (2,653) 5,370 (9,285) (2,653)

Foreign currency translation differences for foreign operations (6,321) 17 1,476 (6,036) 961 3,332 (892) 961

Revaluation of property and equipment 6,424 - - 13,510 (60) - - 12,415

Other comprehensive income attributable to takaful Operator/change in participants’ liabilities - 13,641 (2,259) (6,222) - (8,702) 10,177 (12,475)

total other comprehensive income/(expense) for the year 3,008 274 301 4,157 (1,752) - - (1,752)

Total comprehensive income for the year 104,598 (373) (4,320) 104,301 74,627 - - 74,627

Profit/(Loss) for the year attributable to:

Owners of the Company 102,476 (647) (4,621) 101,245 76,785 - - 76,785

Non-controlling interests (886) - - (1,101) (406) - - (406)

101,590 (647) (4,621) 100,144 76,379 - - 76,379

Total comprehensive income/(expense) for the year attributable to:

Owners of the Company 105,739 (373) (4,320) 105,657 74,497 - - 74,497

Non-controlling interests (1,141) - - (1,356) 130 - - 130

104,598 (373) (4,320) 104,301 74,627 - - 74,627

Basic earnings per ordinary share (sen) 32 62.2 47.2


Company31.12.2012 31.12.2011

Takaful Operator

RM’000



CompanyRM’000

Takaful Operator

RM’000



CompanyRM’000

Profit for the year 103,294 - - 102,657 71,709 - - 71,709

Other comprehensive income/(expense) (net of tax)

Fair value change of available-for-sale financial assets 2,815 (12,938) 1,021 2,815 (2,584) 8,118 (9,218) (2,584)

Revaluation of property and equipment 56 - - 5,654 (60) - - 11,697 Other comprehensive income attributable

to takaful Operator/change in participants’ liabilities - 12,938 (1,021) (4,961) - (8,118) 9,218 (11,757)

total other comprehensive income for the year 2,871 - - 3,508 (2,644) - - (2,644)

Total comprehensive income for the year 106,165 - - 106,165 69,065 - - 69,065

Profit/(Loss) for the year attributable to:Owners of the Company 103,294 - - 102,657 71,709 - - 71,709

103,294 - - 102,657 71,709 - - 71,709

Total comprehensive income/(expense) for the year attributable to:Owners of the Company 106,165 - - 106,165 69,065 - - 69,065

106,165 - - 106,165 69,065 - - 69,065

the notes on pages 99 to 326 are an integral part of these financial statements.



Attributable to owners of the CompanyNon-distributable Distributable

Note

Share capital

RM’000

Share premium

RM’000

Translation reserveRM’000

Revaluation reserveRM’000

Fair value reserveRM’000

Retained profits

RM’000Total

RM’000

Non-controlling

interests RM’000

Total equity

RM’000

Group

At 1 January 2011 162,817 4,098 (6,289) 614 7,584 225,166 393,990 27,339 421,329

Foreign currency translation differences for foreign operations - - 395 - - - 395 566 961

Revaluation of property and equipment - - - (60) - - (60) - (60)

Fair value of available-for-sale financial assets- Gains arising during the

year - - - - 4,452 - 4,452 34 4,486 - Reclassification adjustments

for gains included in profit or loss - - - - (7,075) - (7,075) (64) (7,139)

Other comprehensive income/(expense) for the year - - 395 (60) (2,623) - (2,288) 536 (1,752)

Profit/(Loss) for the year - - - - - 76,785 76,785 (406) 76,379

Total comprehensive income/(expense) for the year - - 395 (60) (2,623) 76,785 74,497 130 74,627

Contributions by and distributions to owners of the company- Dividends to owners of the

Company 33 - - - - - (17,910) (17,910) - (17,910)

Total transactions with owners of the Company - - - - - (17,910) (17,910) - (17,910)

At 31 December 2011 162,817 4,098 (5,894) 554 4,961 284,041 450,577 27,469 478,046

Note 15 Note 15 Note 15 Note 15

Statements of Changes in Equityfor the year ended 31 December 2012


Attributable to owners of the Company

Non-distributable Distributable

Note

Share capital

RM’000

Share premium

RM’000

Translation reserveRM’000



Retained profits

RM’000Total

RM’000

Non-controlling

interests RM’000

Total equity

RM’000

Group

At 1 January 2012 162,817 4,098 (5,894) 554 4,961 284,041 450,577 27,469 478,046

Foreign currency translation differences for foreign operations - - (2,940) - - - (2,940) (3,096) (6,036)

Revaluation of property and equipment - - - 4,486 - - 4,486 2,802 7,288

Fair value of available-for-sale financial assets

- Gains arising during the year - - - - 12,332 - 12,332 279 12,611

- Reclassification adjustments for gains included in profit or loss - - - - (9,466) - (9,466) (240) (9,706)

Other comprehensive (expense)/income for the year - - (2,940) 4,486 2,866 - 4,412 (255) 4,157

Profit/(Loss) for the year - - - - - 101,245 101,245 (1,101) 100,144

Total comprehensive (expense)/income for the year - - (2,940) 4,486 2,866 101,245 105,657 (1,356) 104,301

Contributions by and distributions to owners of the company

- Dividends to owners of the Company 33 - - - - - (56,986) (56,986) - (56,986)

Total transactions with owners of the Company - - - - - (56,986) (56,986) - (56,986)

At 31 December 2012 162,817 4,098 (8,834) 5,040 7,827 328,300 499,248 26,113 525,361






Note

Share capital

RM’000

Share premium

RM’000



Retained profits

RM’000

Total equity

RM’000

Company

At 1 January 2011 162,817 4,098 614 7,473 228,768 403,770

Revaluation of property and equipment - - (60) - - (60)Fair value of available-for-sale financial assets

- Gains arising during the year - - - 3,811 - 3,811 - Reclassification adjustments for gains

included in profit or loss - - - (6,395) - (6,395)

Other comprehensive expense for the year - - (60) (2,584) - (2,644)Profit for the year - - - - 71,709 71,709

Total comprehensive (expense)/ income for the year - - (60) (2,584) 71,709 69,065

Contributions by and distributions to owners of the company- Dividends to owners of the Company 33 - - - - (17,910) (17,910)

Total transactions with owners of the Company - - - - (17,910) (17,910)

At 31 December 2011 162,817 4,098 554 4,889 282,567 454,925





Note

Share capital

RM’000

Share premium

RM’000



Retained profits

RM’000

Total equity

RM’000

Company

At 1 January 2012 162,817 4,098 554 4,889 282,567 454,925

Revaluation of property and equipment - - 693 - - 693

Fair value of available-for-sale financial assets

- Gains arising during the year - - - 9,505 - 9,505

- Reclassification adjustments for gains included in profit or loss - - - (6,690) - (6,690)

Other comprehensive income for the year - - 693 2,815 - 3,508

Profit for the year - - - - 102,657 102,657

Total comprehensive income/(expense) for the year - - 693 2,815 102,657 106,165

Contributions by and distributions to owners of the company- Dividends to owners of the Company 33 - - - - (56,986) (56,986)

Total transactions with owners of the Company - - - - (56,986) (56,986)

At 31 December 2012 162,817 4,098 1,247 7,704 328,238 504,104





Statements of Cash Flowsfor the year ended 31 December 2012

Group Company2012

RM’0002011

RM’0002012

RM’0002011

RM’000

Cash flows from operating activities

Profit before zakat and taxation 125,458 101,418 127,820 93,959

Adjustments for:

Depreciation 15,161 14,260 13,059 12,382

Fair value change of investment properties (2,257) 2,734 (2,315) 2,733

Fair value change of fair value through profit or loss financial assets (6,334) (8,170) (6,481) (5,554)

Profit from financing receivables (651) (843) (651) (843)

Profit from Islamic debt securities, investment accounts and Islamic accepted bills (171,578) (145,814) (147,563) (131,471)

Dividend income from Shariah approved shares (34,522) (24,057) (34,522) (24,057)

Gains on disposal of available-for-sale financial assets (121,202) (97,597) (115,260) (94,815)

Gains on disposal of property and equipment (159) (29) (126) (29)

Losses on disposal of investment properties - 297 - 297

Losses on disposal of assets held for sale 72 - 72 -

Write off of property and equipment 46 36 46 36

Amortisation of premiums, net of accretion of discounts 7,047 (1,741) 6,864 (1,741)

Impairment loss of available-for-sale financial assets 8,304 8,250 8,304 8,250

Impairment loss of investment in a subsidiary - - - 7,018

Impairment loss of investment properties 26 - 26 -

Impairment loss of property and equipment 848 140 479 129

Profit from Malaysian Government Islamic papers (29,350) (27,345) (29,350) (27,345)

Operating loss before changes in working capital (209,091) (178,461) (179,598) (161,051)

Profit from Islamic debt securities, investment accounts, Islamic accepted bills and profit from Malaysian Government Islamic papers 200,928 173,159 176,913 158,816

Dividend income from Shariah approved shares 34,522 14,590 34,522 14,590

Increase in retakaful assets (25,035) (88,155) (31,033) (126,194)

Decrease/(Increase) in receivables 282,365 (137,647) 250,249 (117,877)

Increase in takaful contract liabilities 431,557 414,183 388,028 420,293

Increase in payables 65,378 14,975 72,544 7,308

780,624 212,644 711,625 195,885

Zakat paid (446) (1,288) (224) (405)

Income taxes paid (41,119) (42,905) (41,176) (43,012)

Net cash generated from operating activities 739,059 168,451 670,225 152,468


Statements of Cash Flowsfor the year ended 31 December 2012

Group Company

2012RM’000

2011RM’000

2012RM’000

2011RM’000

Cash flows from investing activities

Purchase of investments (2,594,661) (2,060,964) (2,443,851) (1,815,869)

Proceeds from sale of investments 1,927,213 1,742,787 1,834,267 1,653,632

Maturity of other investments 52,151 175,174 40,000 44,774

Purchase of property and equipment (7,474) (13,155) (6,887) (11,992)

Proceeds from sale of property and equipment 202 138 135 45

Purchase of investment properties - (5,535) - (5,535)

Proceeds from sale of investment properties - 7,403 - 7,403

Proceeds from sale of assets held for sale 596 - 596 -

Net cash used in investing activities (621,973) (154,152) (575,740) (127,542)

Cash flows from financing activity

Dividends paid to owners of the Company (40,704) (17,910) (40,704) (17,910)

Net cash used in financing activity (40,704) (17,910) (40,704) (17,910)

Net increase/(decrease) in cash and cash equivalents 76,382 (3,611) 53,781 7,016

Effect of exchange rate fluctuations on cash held (10,657) 1,263 - -

Cash and cash equivalents at 1 January 386,527 388,875 248,999 241,983

Cash and cash equivalents at 31 December 452,252 386,527 302,780 248,999

Cash and cash equivalents

Cash and cash equivalents included in the statements of cash flows comprise the following statements of financial position amounts:

Group Company

2012RM’000

2011RM’000

2012RM’000

2011RM’000

Cash and bank balances and fixed and call deposits with licensed financial institution with maturity less than three months

- takaful Operator (Note 13) 102,972 61,265 49,017 27,811

- Family takaful Fund (Note 13) 288,172 277,492 211,248 188,447

- General takaful Fund (Note 13) 61,108 47,770 42,515 32,741

452,252 386,527 302,780 248,999




Syarikat takaful Malaysia Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of the Bursa Malaysia Securities Berhad. the address of the principal place of business and registered office of the Company is as follows:

26th Floor, Annex BlockMenara takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 kuala Lumpur

the consolidated financial statements of the Company as at and for the financial year ended 31 December 2012 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associates. the financial statements of the Company as at and for the financial year ended 31 December 2012 do not include other entities.

the Company is principally engaged in managing family and general takaful businesses, whilst the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. there has been no significant change in the nature of these activities during the financial year.

the immediate holding company during the financial year is BIMB holdings Berhad, a company incorporated in Malaysia and listed on the Main Market of the Bursa Malaysia Securities Berhad. the ultimate holding corporation of the Company during the financial year is Lembaga tabung haji, a statutory body established under the tabung haji Act 1995 (Act 535).

the financial statements were authorised for issue by the Board of Directors on 15 March 2013.

1. Basis of preparation

(a) Statement of compliance

the financial statements of the Group and the Company have been prepared in accordance with Malaysian Financial Reporting Standards (MFRS), International Financial Reporting Standards and the Companies Act, 1965, the takaful Act, 1984, takaful Guidelines/Circulars issued by Bank Negara Malaysia (BNM) and Shariah rulings and precepts. these are the Group’s and the Company’s first financial statements prepared in accordance with MFRS and MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards has been applied.

In the previous years, the financial statements of the Group and the Company were prepared in accordance with Financial Reporting Standards (FRS). Separate financial statements for the respective funds were prepared in accordance with BNM guidelines on financial reporting, where a takaful Operator was required to report on the assets and liabilities of the takaful funds separately from the assets and liabilities of its own.

Following the adoption of MFRS, a takaful Operator is required to present consolidated financial statements for itself and the takaful funds it manages and controls in accordance with the requirements of MFRS 127, Consolidated and Separate Financial Statements. the statements of financial position and the statements of profit or loss and other comprehensive income of the takaful Operator, Family takaful Fund and General takaful Fund are supplementary financial information presented in accordance with the requirements of BNM and takaful Act, 1984 in Malaysia to segregate assets, liabilities, income and expenses of takaful funds from its own. the statements of financial position and profit or loss and other comprehensive income of the takaful Operator include only assets, liabilities, income and expenses of the takaful Operator, excluding the takaful funds managed by it. the statements of financial position and profit or loss and other comprehensive income of the Family and General takaful Fund include only the assets, liabilities, income and expenses of the family solidarity fund and General takaful Fund that is set up, managed and controlled by the takaful Operator.

100 SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT 101SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT



1. Basis of preparation (continued)

(a) Statement of compliance (continued)

the financial impacts on transition to MFRS are disclosed in Note 41 to the financial statements.

the Group and the Company have early adopted the amendments to MFRS 101, Presentation of Financial Statements which are effective for annual periods beginning on or after 1 July 2012. the early adoption of the amendments to MFRS 101 has no impact on the financial statements other than the presentation format of the statement of profit or loss and other comprehensive income.

the following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board (MASB) but have not been adopted by the Group and the Company:

MFRSs, Interpretations and Amendments effective for annual periods beginning on or after 1 January 2013• MFRS10,Consolidated Financial Statements• MFRS11,Joint Arrangements• MFRS12,Disclosure of Interests in Other Entities• MFRS13,Fair Value Measurement• MFRS119,Employee Benefits (2011)• MFRS127,Consolidated and Separate Financial Statements (2011)• MFRS128,Investments in Associates and Joint Ventures (2011)• ICInterpretation20, Stripping Costs in the Production Phase of a Surface Mine• AmendmentstoMFRS7, Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities• AmendmentstoMFRS1,First-time Adoption of Malaysian Financial Reporting Standards – Government Loans• AmendmentstoMFRS1,First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements 2009-2011 Cycle)• AmendmentstoMFRS101,Presentation of Financial Statements (Annual Improvements 2009-2011 Cycle)• AmendmentstoMFRS116,Property, Plant and Equipment (Annual Improvements 2009-2011 Cycle)• AmendmentstoMFRS132,Financial Instruments: Presentation (Annual Improvements 2009-2011 Cycle)• AmendmentstoMFRS134,Interim Financial Reporting (Annual Improvements 2009-2011 Cycle)• AmendmentstoMFRS10,Consolidated Financial Statements: Transition Guidance• AmendmentstoMFRS11,Joint Arrangements: Transition Guidance• AmendmentstoMFRS12,Disclosure of Interests in Other Entities: Transition Guidance

MFRSs, Interpretations and Amendments effective for annual periods beginning on or after 1 January 2014• Amendments to MFRS 10, Consolidated Financial Statements: Investment Entities• Amendments to MFRS 12, Disclosure of Interests in Other Entities: Investment Entities• Amendments to MFRS 127, Separate Financial Statements (2011): Investment Entities• Amendments to MFRS 132, Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities

MFRSs, Interpretations and Amendments effective for annual periods beginning on or after 1 January 2015• MFRS9, Financial Instruments (2009)• MFRS9,Financial Instruments (2010)• AmendmentstoMFRS7,Financial Instruments: Disclosures – Mandatory Date of MFRS 9 and Transition Disclosures

the Group and the Company plan to apply the abovementioned standards, amendments and interpretations:• fromtheannualperiodbeginningon1January2013forthosestandards,amendmentsorinterpretationsthatareeffectiveforannual

periods beginning on or after 1 January 2013, except for MFRS 11, IC Interpretation 20, Amendments to MFRS 1 and Amendments to MFRS 11 which are not applicable to the Group and the Company.




(a) Statement of compliance (continued)

the Group and the Company plan to apply the abovementioned standards, amendments and interpretations (continued):

• fromtheannualperiodbeginningon1 January2014 for those standards,amendmentsor interpretations thatareeffective forannual periods beginning on or after 1 January 2014.

• fromtheannualperiodbeginningon1 January2015 for those standards,amendmentsor interpretations thatareeffective forannual periods beginning on or after 1 January 2015.

Material impacts of initial application of a standard, an amendment or an interpretation, which will be applied retrospectively are discussed below:

MFRS 9, Financial instruments

MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and measurement of financial assets and financial liabilities.

the adoption of MFRS 9 may result in a change in accounting policy for financial assets. the Group is currently assessing the financial impact that may arise from the adoption of MFRS 9.

MFRS 10, Consolidated Financial Statements

MFRS 10, Consolidated Financial Statements introduces a new single control model to determine which investees should be consolidated. MFRS 10 supersedes MFRS 127, Consolidated and Separate Financial Statements and IC Interpretation 112, Consolidation – Special Purpose Entities. there are three elements to the definition of control in MFRS 10: (i) power by investor over an investee, (ii) exposure, or rights, to variable returns from investor’s involvement with the investee, and (iii) investor’s ability to affect those returns through its power over the investee.

(b) Basis of measurement

the financial statements have been prepared on the historical cost basis other than as disclosed in the Note 2.

(c) Functional and presentation currency

these financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated.

(d) Use of estimates and judgements

the preparation of financial statements in conformity with MFRS which requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual result may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.





(d) Use of estimates and judgements (continued)

there are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes:

• Note2(f )andNote4–Investmentproperties• Note2(c)andNote37–Financialinstruments• Note2(n),(o)andNote18-Computationofexpensereserves• Note2(m), (n)Note8andNote17 –Provisionforoutstandingclaims including IBNRclaims,FamilyTakafulFundsandactuarial

reserves

2. Summary of significant accounting policies

the accounting policies set out below have been applied consistently to the periods presented in these financial statements and in preparing the opening MFRS statements of financial position of the Group and of the Company at 1 January 2011 (the transition date to MFRS framework), unless otherwise stated.

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities, including unincorporated entities, controlled by the Company. the financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Control exists when the Company has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account.

Investments in subsidiaries are measured in the Company’s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. the cost of investments includes transaction costs.

(ii) Business combinations

Business combinations are accounted for using the acquisition method from the acquisition date, which is the date on which control is transferred to the Group.



2. Summary of significant accounting policies (continued)

(a) Basis of consolidation (continued)

(ii) Business combinations (continued)

the Group measures the cost of goodwill at the acquisition date as:

• thefairvalueoftheconsiderationtransferred;plus• therecognisedamountofanynon-controllinginterestsintheacquiree;plus• ifthebusinesscombinationisachievedinstages,thefairvalueoftheexistingequityinterestintheacquiree;less• thenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed.

When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.

For each business combination, the Group elects whether it measures the non-controlling interests in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net asset at the acquisition date.

transaction costs, other than those associated with the issue of Islamic debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.

(iii) Acquisition of non-controlling interests

the Group treats all changes in its ownership interest in a subsidiary that do not result in a loss of control as equity transactions between the Group and its non-controlling interest holders. Any difference between the Group’s share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves.

(iv) Loss of control

upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity accounted investee or as an available-for-sale financial asset depending on the level of influence retained.

(v) Associates

Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies.





(a) Basis of consolidation (continued)

(v) Associates (continued)

Investments in associates are accounted for in the consolidated financial statements using the equity method less any impairment losses, unless it is classified as held for sale or distribution. the cost of the investment includes transaction costs. the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the associate, after adjustments if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.

When the Group’s share of losses exceeds its interest in an associate, the carrying amount of that interest including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the associate.

When the Group ceases to have significant influence over an associate, it is accounted for as a disposal of the entire interest in that associate, with a resulting gain or loss being recognised in profit or loss. Any retained interest in the former associate at the date when significant influence is lost is re-measured at fair value and this amount is regarded as the initial carrying amount of a financial asset.

When the Group’s interest in an associate decreases but does not result in a loss of significant influence, any retained interest is not re-measured. Any gain or loss arising from the decrease in interest is recognised in profit or loss. Any gains or losses previously recognised in other comprehensive income are also reclassified proportionately to the profit or loss.

Investments in associates are measured in the Company’s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. the cost of investments includes transaction costs.

(vi) Non-controlling interest

Non-controlling interests at the end of the reporting period, being the equity in a subsidiary not attributable directly or indirectly to the equity holders of the Company, are presented in the consolidated statement of financial position and statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Non-controlling interests in the results of the Group is presented in the consolidated statement of profit or loss and other comprehensive income as an allocation of the profit or loss and the comprehensive income for the year between non-controlling interests and the owners of the Company.

Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

(vii) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

unrealised gains arising from transactions with associates are eliminated against the investment to the extent of the Group’s interest in the associates. unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.




(b) Foreign currency

(i) Foreign currency transactions

transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rate at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date.

Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the reporting date, except for those that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments, which are recognised in other comprehensive income.

(ii) Operations denominated in functional currencies other than Ringgit Malaysia

the assets and liabilities of operations denominated in functional currencies other than RM and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the end of the reporting period. the income and expenses of foreign operations, are translated to RM at exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income and accumulated in the foreign currency translation reserve (FCtR) in equity. however, if the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the FCtR related to that foreign operation is reclassified to profit or loss as part of the profit or loss on disposal.

When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(c) Financial instruments

(i) Initial recognition and measurement

A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Group or the Company becomes a party to the contractual provisions of the instrument.

A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.





(c) Financial instruments (continued)

(i) Initial recognition and measurement (continued)

An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and only if, it is not closely related to the economic characteristics and risks of the host contract and the host contract is not categorised at fair value through profit or loss. the host contract, in the event an embedded derivative is recognised separately, is accounted for in accordance with policy applicable to the nature of the host contract.

(ii) Financial instrument categories and subsequent measurement

the Group and the Company categorise financial instruments as follows:

Financial assets

(a) Financial assets at fair value through profit or loss

Fair value through profit or loss category comprises financial assets that are held for trading, including derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial assets that are specifically designated into this category upon initial recognition.

Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured are measured at cost.

Other financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss.

(b) Held-to-maturity investments

held-to-maturity investments category comprises Islamic debt instruments that are quoted in an active market and the Group or the Company has the positive intention and ability to hold them to maturity.

Financial assets categorised as held-to-maturity investments are subsequently measured at amortised cost using the effective interest method.

(c) Loans and receivables

Loans and receivables category comprises Islamic debt instruments that are not quoted in an active market (including fixed deposits with financial institutions with maturities more than 3 months).

Financial assets categorised as loans and receivables are subsequently measured at amortised cost using the effective interest method.





(ii) Financial instrument categories and subsequent measurement

(d) Available-for-sale financial assets

Available-for-sale category comprises investment in equity and Islamic debt securities instruments that are not held for trading nor held to maturity.

Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost. Other financial assets categorised as available-for-sale are subsequently measured at their fair values with the gain or loss recognised in other comprehensive income, except for impairment losses, foreign exchange gains and losses arising from monetary items and gains and losses of hedged items attributable to hedge risks of fair value hedges which are recognised in profit or loss. On derecognition, the cumulative gain or loss recognised in other comprehensive income is reclassified from equity into profit or loss. Profit income calculated for an Islamic debt instrument using the effective interest method is recognised in profit or loss.

(e) Takaful receivables

takaful receivables are recognised when due and measured on initial recognition at the fair value of the consideration received or receivable. Subsequent to initial recognition, takaful receivables are measured at amortised cost, using the effective interest method.

If there is objective evidence that the takaful receivable is impaired, the Group and the Company reduce the carrying amount of the takaful receivable accordingly and recognises that impairment loss in profit or loss. the Group and the Company gather the objective evidence that a takaful receivable is impaired using the same process adopted for financial assets carried at amortised cost. the impairment loss is calculated under the same method used for those financial assets. these processes are described in Note 2(i).

takaful receivables are derecognised when the derecognition criteria for financial assets, as described in Note 2(c)(iv), have been met.

All financial assets, except for those measured at fair value through profit or loss, are subject to review for impairment (see Note 2(i)(i) and (ii)).

Financial liabilities

All financial liabilities are initially measured at fair value and subsequently measured at amortised cost other than those categorised as fair value through profit or loss.

Fair value through profit or loss category comprises financial liabilities that are derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial liabilities that are specifically designated into this category upon initial recognition.

Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured at cost.

Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss.






(iii) Regular way purchase or sale of financial assets

A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using trade date accounting. trade date accounting refers to:

(a) the recognition of an asset to be received and the liability to pay for it on the trade date, and

(b) derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition of a receivable from the buyer for payment on the trade date.

(iv) Derecognition

A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in the profit or loss.

A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(d) Property and equipment

(i) Recognition and measurement

the land and buildings are stated at cost/valuation less any accumulated depreciation and any accumulated impairment losses. Items of equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses.

the Group and the Company revalue their land and buildings annually and of shorter intervals whenever the fair value of the revalued assets is expected to differ materially from their carrying value. Addition subsequent to their revalution are stated in the financial statements at cost until the next revalution exercise.

An external independent valuation company, having the appropriate recognised professional qualifications, values the Group’s land and buildings on annual basis. the revalued amount are based on market value, being the estimated amount for which a property could be exchanged between a willing buyer and a willing seller in an arm’s length transaction.

Surpluses arising from revaluation are dealt with in the revaluation reserve account. Any deficit arising is offset against the revaluation reserve to the extent of a previous increase for the same property. In all other cases, a decrease in carrying amount is charged to the profit or loss.




(d) Property and equipment (continued)

(i) Recognition and measurement (continued)

Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When significant parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.

the gain or loss on disposal of an item of property and equipment is determined by comparing the proceeds from disposal with the carrying amount of property and equipment and is recognised net within “realised gains and losses” in profit or loss.

(ii) Subsequent costs

the cost of replacing a component of an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group or the Company, and its cost can be measured reliably. the carrying amount of the replaced component is derecognised to profit or loss. the costs of the day-to-day servicing of property and equipment are recognised in profit or loss as incurred.

(iii) Depreciation

Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated separately.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property and equipment under construction are not depreciated until the assets are ready for their intended use. the annual depreciation rates for the current and comparative periods are as follows:

Buildings 2.0%Renovation 16.7%Furniture, fixtures and fittings 16.7% - 20.0%Motor vehicles 20.0%Computer and equipment 20.0% - 33.3%

the depreciable amount is determined after deducting the residual value.

Depreciation methods, useful lives and residual values are reviewed at end of the reporting period, and adjusted as appropriate.





(e) Leased assets

(i) Finance lease

Leases in terms of which the Group or the Company assume substantially all the risks and rewards of ownership are classified as finance leases. upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. the finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of profit on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.

Leasehold land which in substance is a finance lease is classified as property and equipment.

(ii) Operating lease

Leases, where the Group or the Company does not assume substantially all the risks and rewards of ownership are classified as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the Group’s or the Company’s statement of financial position. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property and measured using fair value model.

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they are incurred.

Leasehold land which in substance is an operating lease is classified as prepaid lease payments.

(f) Investment property

(i) Investment property carried at fair value

Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of services or for administrative purposes.

Investment properties are measured initially at cost and subsequently at fair value with any change therein recognised in profit or loss for the period in which they arise.

Cost includes expenditure that is directly attributable to the acquisition of the investment property.

An investment property is derecognised on its disposal, or when it is permanently withdraw from use and no future economic benefit are expected from its disposal. the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss in the period in which the item is derecognised.




(f) Investment property (continued)

(ii) Reclassifications to/from investment property carried at fair value

When an item of property and equipment is transferred to investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair value is recognised directly in equity as a revaluation of property and equipment. however, if a fair value gain reverses a previous impairment loss, the gain is recognised in profit or loss. upon disposal of an investment property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through profit or loss.

When the use of a property changes such that it is reclassified as property and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting.

(iii) Determination of fair value

An external, independent valuation firm, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group’s and the Company’s investment property portfolio annually.

the fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably.

(g) Non-current assets held for sale

Non-current assets, or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale.

Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Group’s accounting policies. thereafter, generally the assets, or disposal group are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on pro-rata basis, except that no loss is allocated to financial assets, deferred tax assets and investment property, which continue to be measured in accordance with the Group’s accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss.

Intangible assets and property and equipment once classified as held for sale are not amortised or depreciated. In addition, equity accounting of equity accounted investees ceases once classified as held for sale.

(h) Cash and cash equivalents and placements with financial institutions

Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in fair value with original maturities of three months or less, and are used by the Group and the Company in the management of their short term commitments. For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts and pledged deposits.





(i) Impairment

(i) Financial assets, excluding takaful receivables

All financial assets (except for financial assets categorised as fair value through profit or loss, investments in subsidiaries and investment in associates) are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. For an investment in an equity instrument, a significant or prolonged decline in the fair value below its cost is an objective evidence of impairment. If any such objective evidence exists, then the financial asset’s recoverable amount is estimated.

An impairment loss in respect of loans and receivables (including takaful receivables where the policy is set out in Note 2(c)(ii)(e) above) and held-to-maturity investments is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective profit rate. the carrying amount of the asset is reduced through the use of an allowance account.

An impairment loss in respect of available-for-sale financial assets is recognised in profit or loss and is measured as the difference between the asset’s acquisition cost (net of any principal repayment and amortisation) and the asset’s current fair value, less any impairment loss previously recognised. Where a decline in the fair value of an available-for-sale financial asset has been recognised in other comprehensive income, the cumulative loss in other comprehensive income is reclassified from equity to profit or loss.

An impairment loss in respect of unquoted equity instrument that is carried at cost is recognised in profit or loss and is measured as the difference between the financial asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.

Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available-for-sale is not reversed through the profit or loss.

If, in a subsequent period, the fair value of an Islamic debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not exceed what the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. the amount of the reversal is recognised in profit or loss.

(ii) Takaful receivables

takaful receivables are recognised when due and measured on initial recognition at the fair value of the consideration received or receivable. Subsequent to initial recognition, takaful receivables are measured at amortised cost, using the effective interest method.

If there is objective evidence that the takaful receivable is impaired, the Group and the Company reduce the carrying amount of the takaful receivable accordingly and recognises that impairment loss in profit or loss. the Group and the Company gather the objective evidence that a takaful receivable is impaired using the same process adopted for financial assets carried at amortised cost. the impairment loss is calculated under the same method used for those financial assets. these processes are described in Note 2(i)(i).

takaful receivables are derecognised when the derecognition criteria for financial assets, as described in Note 2(c)(iv), have been met.




(i) Impairment (continued)

(iii) Other assets

the carrying amounts of other assets (except for deferred tax asset and investment property measured at fair value and non-current assets classified as held for sale) are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units. Subjects to an operating segment ceiling test, for the purpose of goodwill impairment testing, cash-generating units to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. the goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to group of cash-generating units that are expected to benefit from the synergies of the combination.

the recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its estimated recoverable amount.

Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the other assets in the cash-generating unit (groups of cash-generating units) on a pro-rata basis.

Impairment losses recognised in prior periods are assessed at the end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognised.





(j) equity intruments

Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently.

(i) Ordinary Shares

Ordinary shares are classified as equity.

(k) employee benefits

(i) Short-term employee benefits

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group and the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(ii) State plans

the Group’s and the Company’s contribution to the statutory pension fund is charged to profit or loss in the financial year to which they relate. Once the contributions have been paid, the Group and the Company have no further payment obligations.

(l) Provisions

A provision is recognised if, as a result of a past event, the Group and the Company have a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. the unwinding of the discount is recognised as finance cost.

(m) General Takaful Fund

the General takaful Fund is maintained in accordance with the takaful (Amendment) Act, 1984. Included in General takaful Fund is fund arising from:

• GeneralTakaful;and• Generalretakafulfunds.

the General takaful underwriting results are determined for each class of takaful business after taking into account retakaful, unearned contributions, claims incurred and administrative fees.

Contribution income

Contributions are recognised in a financial period in respect of risks assumed during that particular financial period based on the inception date. Inward treaty retakaful contributions are recognised on the basis of periodic advices received from ceding takaful operators.




(m) General Takaful Fund (continued)

Unearned contribution reserves

the unearned Contribution Reserves (uCR) represent the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial year.

In determining the uCR at the end of the reporting period, the method that most accurately reflects the actual unearned contributions is used, as follows:

a) 1/365th method for all General takaful business.b) 1/8th method for all classes of General treaty Inward Retakaful business.

Provision for outstanding claims

A liability for outstanding claims is recognised in respect of direct takaful business. the amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries, if any, to settle the present obligation at the end of the reporting period. Any difference between the current estimated cost and subsequent settlement is dealt with in the takaful statement of comprehensive income of the Group and of the Company in the year in which the settlement takes place.

Provision is also made for the cost of claims (together with related expenses) and Incurred But Not Reported Claims (IBNR) at the end of the reporting period, using a mathematical method of estimation by a qualified external actuary where historical claims experience are used to project future claims. the provision includes a risk margin for adverse deviation. As with all projections, there are elements of uncertainty and the projected claims may be different from actual. these uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.

the application of the guidelines on valuation basis for liabilities of General takaful Business do not have material financial impact to the current and prior periods financial statements of the Group and of the Company and has been accounted for prospectively.

(n) Family Takaful Fund

Included in Family takaful Fund is fund arising from:

• FamilyTakaful;• GroupFamilyTakaful;and• Familyretakafulfunds.





(n) Family Takaful Fund (continued)

the Family takaful Fund is maintained in accordance with the requirements of the takaful (Amendment) Act, 1984 and includes the amounts attributable to participants which represents the participants’ share of the underwriting surplus and return on the investments, where applicable and are distributable in accordance with the terms and conditions prescribed by the Group and the Company.

the surplus transfer from the Family takaful Fund to the profit or loss is based on the predetermined profit sharing ratio of the underwriting surplus and return on investments.

Contribution income

Contribution is recognised as soon as the amount of the contribution can be reliably measured. Initial contribution is recognised from inception date and subsequent contribution is recognised when it is due. For individual family takaful contribution, recognition is up to the extent of one due amount.

At the end of each financial period, all due contributions are accounted for to the extent that they can be reliably measured.

Investment-linked business

Investments of the investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue accounts.

Actuarial reserves

Arising from the adoption of guidelines on valuation basis for liabilities of Family takaful Business (issued by Bank Negara Malaysia), with effect from 1 January 2012, actuarial reserves comprise the Prospective Actuarial Valuation, Cash Flow Projection Valuation and unearned Contribution Valuation as explained below:

(i) Prospective Actuarial Valuation

For credit-related products, the liabilities of Family takaful Fund shall be valued based on the sum of present value of future benefits and any expected future expenses payable from the takaful funds, less the present value of future gross tabarru’ arising from the certificate, discounted at the appropriate risk discount rate as defined in the valuation guidelines.

For a credit-related takaful certificate whose sustainability of tabarru’ deductions is depended on the performance of Participants Investment Fund (PIF), the calculation is subject to adjusting the future gross tabarru’ cash flow such that it is limited to the period where the PIF can sustain the tabarru’ and assuming that the takaful coverage is in force for the full duration of the takaful contract.





(ii) Cash Flow Projection Valuation

For products with PIF other than credit-related products, the liabilities shall be valued by projecting future cash flows to ensure that all future obligations can be met without recourse to additional finance or capital support at any future time during the duration of the certificate. the cash flow projection shall use a basis that is consistent with the requirements of the valuation guidelines.

(iii) Unearned Contribution Valuation

For yearly renewable products or extensions shall be valued according to the following:

(a) For a certificate covering death or survival, the liabilities shall be valued on an unexpired risk basis using a prospective estimate of expected future payments arising from future events covered as at the valuation date. these future payments shall include allowance for direct claims related expenses, direct investment-related expenses, cost of retakaful and expected future contribution refunds expected during the unexpired period.

(b) For a certificate covering contingencies other than death or survival, the net liability is the maximum of unexpired risk reserve or unearned contribution reserve.

Before 1 January 2012, actuarial reserves comprise the unearned contribution reserves and the reserve computed under the net contribution valuation as explained below:

(i) Unearned contribution reserve

the unearned Contribution Reserve (uCR) of group family fund (except for Mortgage Reducing term takaful (MRtt) as detailed below) and family retakaful fund represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial year.

In determining the uCR at the end of the reporting period, the method that most accurately reflects the actual unearned contributions is used, as follows:a) 1/365th method for all group family takaful business.b) A pro-rata basis based on a time apportionment method for family retakaful business.

(ii) Net contribution valuation

the actuarial liabilities for MRtt products managed under group family fund and Ordinary Participants’ Special Account (PSA) are calculated using the net contribution method of valuation (NCV). the liability is ascertained by deducting the present value of future net contribution from the present value of the future amount-at-risk. As with all projections, there are elements of uncertainty and the projected liability may be different from actual.

these uncertainties arise from changes in underlying risks, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.






Provision for outstanding claims

Claims and provisions for claims arising on family and group family takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose, the benefits payable under a family takaful certificate are recognised as follows:

a) Maturity or other policy benefit payments due on specified dates are accounted for as claims payable on the due dates.

b) Death, surrender and other benefits without due dates are treated as claims payable on the date of receipts of intimation of death of the participant or occurrence of contingency covered.

c) For individual family, group health and medical business, provision is made for the cost of claims (together with related expenses) and IBNR at the end of the reporting period, using a mathematical method of estimation by a qualified internal actuary where historical claims experience are used to project future claims. the provision includes a risk margin for adverse deviation. As with all projections, there are elements of uncertainty and the projected claims may be different from actual. these uncertainties arise from changes in underlying risk, changes in spread of risks, claim settlement pattern as well as uncertainties in the projection model and underlying assumptions.

the application of the guidelines on valuation basis for liabilities of Family takaful Business do not have material financial impact to the current and prior periods financial statements of the Group and of the Company and has been accounted for prospetively.

(o) expenses reserves

the expense reserves is reported as a liability in takaful Operator’s Fund.

(i) General Takaful Fund

Arising from the adoption of guidelines on valuation basis for liabilities of General takaful Business (issued by Bank Negara Malaysia), with effect from 1 January 2012, the expense reserve for mudharabah certificates is calculated based on best estimate of the provision for unexpired expense risk (uER) and the PRAD. the expense reserve for wakalah certificates refers to the higher of aggregate of the unearned Wakalah Fee (uWF) for all lines of business or best estimate of the provision for uER and the PRAD at total fund level.

(ii) Family Takaful Fund

Arising from the adoption of guidelines on valuation basis for liabilities of Family takaful Business (issued by Bank Negara Malaysia), with effect from 1 January 2012, expense reserves consists the followings:

(a) expense liabilities

the method used to value expense liabilities shall be consistent with the method used to value takaful liabilities of the corresponding family takaful certificate (for example, for a long-term ordinary takaful certificate, the valuation method for expense liabilities should also be long-term in nature).




(o) expenses reserves (continued)

(b) Deficiency Reserve for Skim Anuiti Takaful KWSP

In addition to the expense liabilities above, an additional requirement is also complied as stipulated below:

If PIF is expected to be insufficient to meet future annuity certain benefit and/or future life annuity tabarru’, another provision shall be set aside that is in line with requirement of the valuation guideline. upon PIF insufficiency, the Operator’s Fund shall honour the annuity certain benefit payment to participants as well as the tabarru’ to PRF.

Before 1 January 2012, expense reserves consists the followings:

(a) Investment-linked products

Provision is made to recognise future expected losses to the takaful Operator’s Fund, if any, arising from servicing of individual certificate contracts with participants.

Provision is estimated based on the methodology stated in the Guidelines on Investment Linked Insurance/takaful Business (BNM/Rh/GL 010-15) issued by Bank Negara Malaysia where best estimated cash flows are discounted to ensure that there are no negative net cash flows arising in the future in the takaful Operator’s Fund. the best estimate assumptions used are consistent with that used in the valuation of the Investment Linked Risk Fund.

(b) Single Contribution Wakalah Plans (Mortgage and Group Credit Wakalah)

Provision is estimated based on actuarial present value of future maintenance expense. the assumptions used in calculating the provision are best estimate assumptions.

the application of the guidelines on valuation basis for liabilities of General and Family takaful Business do not have material financial impact to the current and prior periods financial statements of the Group and of the Company and has been accounted for prospectively.

(p) Product classification

the Family takaful Fund and General takaful Fund consist of certificate contracts that transfer takaful risk.

takaful contracts are those contracts that transfer significant takaful risk. A takaful contract is a contract under which the fund has accepted significant takaful risk from another party (the certificate holders) by agreeing to compensate the participants if a specified uncertain future event (the takaful event) adversely affects the participants. As a general guideline, to determine whether a contract has significant takaful risk, benefits paid are compared with benefits payable if the takaful event did not occur.

Investment contracts are those contracts that do not transfer significant insurance risk. there are no contracts that are classified as investment contracts in the Family and General takaful Funds.

Once a contract has been classified as a takaful contract, it remains a takaful contract for the remainder of its life-time, even if the takaful risk reduces significantly during this period, unless all rights and obligations are extinguished or expired.





(p) Product classification (continued)

takaful contracts in the current portfolio are classified as being without discretionary participation features (DPF) as it does not satisfy the criteria for DPF. DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional benefits that are:• likelytobeasignificantportionofthetotalcontractualbenefits;• whoseamountortimingiscontractuallyatthediscretionoftheissuer;and• thatarecontractuallybasedonthe:

- performance of a specified pool of contracts or a specified type of contract;- realised and/or unrealised investment returns on a specified pool of assets held by the issuer; - the profit or loss of the company, fund or other entity that issues the contract.

(q) Retakaful

the fund cedes takaful risk in the normal course of business. Retakaful assets represent balances receivable and recoverable from retakaful operators. Amounts recoverable from retakaful operators are estimated in a manner consistent with the outstanding claims provision or settled claims associated with the retakaful’s certificates and are in accordance with the related retakaful contracts.

Ceded retakaful arrangements do not relieve the fund from its obligations to participants. Contributions and claims are presented on a gross basis for both ceded and assumed retakaful.

Retakaful assets are reviewed for impairment at each reporting date or more frequently when an indication of impairment arises during the reporting period. Impairment occurs when there is objective evidence as a result of an event that occurred after initial recognition of the retakaful asset that the Family and General takaful Fund may not receive all outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that the Family and General takaful Fund will receive from the retakaful operator. the impairment loss is recorded in profit or loss.

Gains or losses on buying retakaful, if any, are recognised in profit or loss immediately at the date of purchase and are not amortised.

the fund also assumes retakaful risk in the normal course of business for Family takaful and General takaful contracts when applicable.

Contributions and claims on assumed retakaful are recognised as revenue or expenses in the same manner as they would be if the retakaful were considered direct business, taking into account the product classification of the retakaful business. Retakaful liabilities represent balances due to retakaful operators. Amounts payable are estimated in a manner consistent with the related retakaful contract.

Retakaful assets or liabilities are derecognised when the contractual rights are extinguished or expired or when the contract is transferred to another party.

Retakaful contracts that do not transfer significant takaful risk are accounted for directly through the statement of financial position. these are deposit assets or financial liabilities that are recognised based on the consideration paid or received less any explicit identified contributions or fees to be retained by the retakaful operators. Investment income on these contracts is accounted for using the effective yield method when accrued.




(r) Other revenue recognition

(i) Financing income

Income from financing are recognised on an accrual basis, except where financing is considered impaired, i.e. where repayments are in arrears for more than 90 days, in which case recognition of such income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid.

Income is recognised on a time proportion basis that takes into account the effective yield of the asset.

(ii) Wakalah fees

Wakalah fees are recognised as income or expenses by the respective funds based on a predetermined percentage of gross contributions upon inception of certificates. Wakalah surplus/(deficit) is arrived at after deducting commission and management expenses against the Wakalah fees charged.

(iii) Rental income

Rental is recognised on an accrual basis except where default in payment of rent has already occurred and rent dues remain outstanding for over 90 days, in which case recognition of rental income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid.

(iv) Dividend income

Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

(s) Zakat

this represents tithes payable by the Group and the Company to comply with the Principles of Shariah and as approved by the Shariah Advisory Body.

(t) Income tax expense

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred tax is not recognised for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.





(t) Income tax expense (continued)

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(u) Operating lease payments

the Group recognises its Ijarah financing obligations as operating leases. Lease payments under the operating lease are recognised as an expense in the profit or loss on a straight-line basis over the lease term.

(v) earnings per share

the Group presents basic earnings per share (EPS) data for its ordinary shares.

Basic EPS is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held.

No diluted EPS is disclosed in these financial statements as there are no dilutive potential ordinary shares.

(w) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by the chief operating decision maker, which in this case is the Chief Executive Officer of the Group, to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.



3. Property and equipment

Group Takaful OperatorOffice

equipment,Renovation furniture,

Freehold Leasehold and building Motor fixtures andLand Buildings Land Buildings in progress vehicles fittings Total

Cost/Valuation Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2011 2,598 2,840 3,634 4,946 222 1,645 94,675 110,560

Additions - - - 208 - 136 12,811 13,155

Disposals - - - - - (323) (95) (418)

Write offs - - - - - - (1,468) (1,468)

Transfer to investment properties

- offset of accumulated depreciation - (720) (301) (121) - - - (1,142)

- transfer of carrying amount 4 (1,660) (1,781) (855) (339) - - - (4,635)

Transfers - - - - (222) - 222 -

Revaluation (44) (33) - - - - - (77)

Effect of movement in exchange rates - - 21 39 - 11 128 199

At 31 December 2011/ 1 January 2012 894 306 2,499 4,733 - 1,469 106,273 116,174

Additions - - - - - 775 6,699 7,474

Disposals - - - - - (258) (218) (476)

Write offs - - - - - - (2,183) (2,183)

Revaluation 41 9 4,151 433 - - - 4,634

Effect of movement in exchange rates - - (796) (475) - (76) (940) (2,287)

At 31 December 2012 935 315 5,854 4,691 - 1,910 109,631 123,336




3. Property and equipment (continued)

Group Takaful OperatorOffice


Freehold Leasehold and building Motor fixtures andAccumulated depreciation Land Buildings Land Buildings in progress vehicles fittings Total

and impairment loss Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2011 - 720 1,082 981 - 1,062 76,204 80,049 Charge for the year 28 - 17 119 140 - 106 10,219 10,601 Disposals - - - - - (221) (88) (309)Write offs - - - - - - (1,432) (1,432)Offset of accumulated

depreciation on property transferred to investment properties - (720) (301) (121) - - - (1,142)

Adjustment for revaluation - (17) - - - - - (17)Effect of movement in

exchange rates - - 6 7 - 8 108 129

At 31 December 2011/ 1 January 2012 - - 906 1,007 - 955 85,011 87,879

Charge for the year 28 - 6 301 402 - 169 10,430 11,308 Impairment loss 30 - - - 197 - - - 197 Disposals - - - - - (227) (206) (433)Write offs - - - - - - (2,137) (2,137)Adjustment for revaluation - (6) (1,207) (1,027) - - - (2,240)Effect of movement in

exchange rates - - - (107) - (45) (838) (990)

At 31 December 2012Accumulated depreciation - - - 275 - 852 92,260 93,387 Accumulated impairment loss - - - 197 - - - 197

- - - 472 - 852 92,260 93,584 Carrying amounts

At 1 January 2011 2,598 2,120 2,552 3,965 222 583 18,471 30,511

At 31 December 2011/ 1 January 2012 894 306 1,593 3,726 - 514 21,262 28,295

At 31 December 2012 935 315 5,854 4,219 - 1,058 17,371 29,752




GroupOffice




At 1 January 2011 48,580 126,991 3,634 35,492 222 1,645 94,675 311,239 Additions - - - 208 - 136 12,811 13,155 Disposals - - - - - (323) (95) (418)Write offs - - - - - - (1,468) (1,468)Transfer to investment

properties- offset of accumulated

depreciation - (720) (301) (121) - - - (1,142)- transfer of carrying

amount 4 (1,660) (1,781) (855) (339) - - - (4,635)Transfers - - - - (222) - 222 - Revaluation 2,069 5,747 - 923 - - - 8,739 Effect of movement in

exchange rates 1 1 21 107 - 11 128 269

At 31 December 2011/ 1 January 2012 48,990 130,238 2,499 36,270 - 1,469 106,273 325,739

Additions - - - - - 775 6,699 7,474 Disposals - - - - - (258) (218) (476)Write offs - - - - - - (2,183) (2,183)Revaluation 296 895 4,151 2,525 - - - 7,867 Effect of movement in

exchange rates (14) (12) (796) (1,144) - (76) (940) (2,982)

At 31 December 2012 49,272 131,121 5,854 37,651 - 1,910 109,631 335,439





GroupOffice




At 1 January 2011 - 720 1,082 981 - 1,062 76,204 80,049 Charge for the year 28 - 2,500 119 1,316 - 106 10,219 14,260 Impairment loss 30 26 17 - 97 - - - 140 Disposals - - - - - (221) (88) (309)Write offs - - - - - - (1,432) (1,432)Offset of accumulated


Adjustment for revaluation - (2,500) - (1,176) - - - (3,676)Effect of movement in

exchange rates - - 6 7 - 8 108 129

At 31 December 2011/ 1 January 2012

Accumulated depreciation - - 906 1,007 - 955 85,011 87,879Accumulated impairment loss 26 17 - 97 - - - 140

26 17 906 1,104 - 955 85,011 88,019Charge for the year 28 - 2,604 301 1,657 - 169 10,430 15,161 Impairment loss 30 35 22 - 791 - - - 848 Disposals - - - - - (227) (206) (433)Write offs - - - - - - (2,137) (2,137)Adjustment for revaluation - (2,604) (1,207) (2,282) - - - (6,093)Effect of movement in

exchange rates - - - (107) - (45) (838) (990)At 31 December 2012Accumulated depreciation - - - 275 - 852 92,260 93,387 Accumulated impairment loss 61 39 - 888 - - - 988

61 39 - 1,163 - 852 92,260 94,375

Carrying amounts

At 1 January 2011 48,580 126,271 2,552 34,511 222 583 18,471 231,190

At 31 December 2011/ 1 January 2012 48,964 130,221 1,593 35,166 - 514 21,262 237,720

At 31 December 2012 49,211 131,082 5,854 36,488 - 1,058 17,371 241,064




Company Takaful OperatorOffice




At 1 January 2011 2,598 2,840 1,156 460 222 617 83,474 91,367 Additions - - - - - - 11,992 11,992 Disposals - - - - - (95) (86) (181)Write offs - - - - - - (1,468) (1,468)Transfer to investment



amount 4 (1,660) (1,781) (855) (339) - - - (4,635)Transfers - - - - (222) - 222 - Revaluation (44) (33) - - - - - (77)

At 1 January 2012 894 306 - - - 522 94,134 95,856 Additions - - - - - 567 6,320 6,887 Disposals - - - - - (192) (214) (406)Write offs - - - - - - (2,183) (2,183)Revaluation 41 9 - - - - - 50

At 31 December 2012 935 315 - - - 897 98,057 100,204





Company Takaful OperatorOffice



Accumulated depreciation Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2011 - 720 300 120 - 389 66,582 68,111 Charge for the year 28 - 17 1 1 - 80 9,320 9,419 Disposals - - - - - (81) (84) (165)Write offs - - - - - - (1,432) (1,432)Offset of accumulated


Adjustment for revaluation - (17) - - - - - (17)

At 1 January 2012 - - - - - 388 74,386 74,774 Charge for the year 28 - 6 - - - 123 9,805 9,934 Disposals - - - - - (192) (205) (397)Write offs - - - - - - (2,137) (2,137)Adjustment for revaluation - (6) - - - - - (6)

At 31 December 2012 - - - - - 319 81,849 82,168

Carrying amounts

At 1 January 2011 2,598 2,120 856 340 222 228 16,892 23,256

At 31 December 2011/ 1 January 2012 894 306 - - - 134 19,748 21,082

At 31 December 2012 935 315 - - - 578 16,208 18,036




CompanyOffice




At 1 January 2011 48,442 126,836 9,794 14,692 222 617 83,474 284,077 Additions - - - - - - 11,992 11,992 Disposals - - - - - (95) (86) (181)Write offs - - - - - - (1,468) (1,468)Transfer to investment



amount 4 (1,660) (1,781) (855) (339) - - - (4,635)Transfers - - - - (222) - 222 - Revaluation 2,045 5,750 556 366 - - - 8,717

At 1 January 2012 48,827 130,085 9,194 14,598 - 522 94,134 297,360 Additions - - - - - 567 6,320 6,887 Disposals - - - - - (192) (214) (406)Write offs - - - - - - (2,183) (2,183)Revaluation 288 898 861 476 - - - 2,523

At 31 December 2012 49,115 130,983 10,055 15,074 - 897 98,057 304,181





Company Office




At 1 January 2011 - 720 300 120 - 389 66,582 68,111 Charge for the year 28 - 2,497 153 332 - 80 9,320 12,382 Impairment loss 30 26 6 43 54 - - - 129 Disposals - - - - - (81) (84) (165)Write offs - - - - - - (1,432) (1,432)Offset of accumulated


Adjustment for revaluation - (2,497) (152) (331) - - - (2,980)

At 31 December 2011/ 1 January 2012

Accumulated depreciation - - - - - 388 74,386 74,774 Accumulated impairment loss 26 6 43 54 - - - 129

26 6 43 54 - 388 74,386 74,903

Charge for the year 28 - 2,601 166 364 - 123 9,805 13,059 Impairment loss 30 34 22 71 352 - - - 479 Disposals - - - - - (192) (205) (397)Write offs - - - - - - (2,137) (2,137)Adjustment for revaluation - (2,601) (166) (364) - - - (3,131)

At 31 December 2012Accumulated depreciation - - - - - 319 81,849 82,168 Accumulated impairment loss 60 28 114 406 - - - 608

60 28 114 406 - 319 81,849 82,776

Carrying amounts

At 1 January 2011 48,442 126,116 9,494 14,572 222 228 16,892 215,966

At 31 December 2011/ 1 January 2012 48,801 130,079 9,151 14,544 - 134 19,748 222,457

At 31 December 2012 49,055 130,955 9,941 14,668 - 578 16,208 221,405




3.1 Revaluation of properties

All the Group’s and Company’s land and buildings were revalued in December 2012 by independent professional qualified valuers using the comparison method.

had the land and buildings of the Group and of the Company been carried at historical cost less accumulated depreciation, their carrying amounts would have been as follows:

Group Takaful Operator Group

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Freehold land 487 487 2,147 43,877 43,892 45,551

Freehold buildings 142 159 1,957 96,898 99,235 103,346

Leasehold land and buildings 4,574 5,319 6,517 26,430 27,940 29,702

5,203 5,965 10,621 167,205 171,067 178,599

Company Takaful Operator Company

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Freehold land 487 487 2,147 43,705 43,705 45,365

Freehold buildings 142 159 1,957 96,820 99,148 103,257

Leasehold land and buildings - - 1,196 19,893 20,243 21,789

629 646 5,300 160,418 163,096 170,411





3.2 Leasehold land and buildings

Included in the carrying amounts of the leasehold land and buildings are:


31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Leasehold land and buildings with unexpired lease period of

- more than 50 years - - 1,196 17,279 15,795 17,466

- less than 50 years 10,073 5,319 5,321 25,063 20,964 19,597

10,073 5,319 6,517 42,342 36,759 37,063


31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Leasehold land and buildings with unexpired lease period of

- more than 50 years - - 1,196 17,279 15,795 17,466

- less than 50 years - - - 7,330 7,900 6,600

- - 1,196 24,609 23,695 24,066



4. Investment properties

Takaful Operator Family Takaful General Takaful Group

Group Note2012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’000

At 1 January 18,758 11,958 210,619 206,980 26,620 29,234 46,572 47,493

- Additions - - - 5,092 - 443 - 5,535

- Disposals - - - (4,000) - (3,700) - (7,700)

- Reclassified to assets held for sale 14 (1,340) - (1,360) (668) (540) - (3,240) (668)

- Reclassified from property and equipment 3 - 4,635 - - - - - 4,635

- transfers 17 707 (17) (707) - - - -

- Fair value gains/(losses) for the year - net 25 845 1,460 4,300 3,839 (306) 643 2,257 (2,734)

- Impairment loss 30 - - (26) - - - (26) -

- Effect of movement in exchange rates (86) (2) (703) 83 - - (93) 11

At 31 December 18,194 18,758 212,813 210,619 25,774 26,620 45,470 46,572

Comprising of:

Freehold land and buildings 8,973 9,637 173,105 176,944 14,464 14,430 17,499 19,159

Leasehold land and buildings more than 50 years 8,560 8,510 29,639 25,815 5,300 5,490 26,220 24,020

Leasehold land and buildings less than 50 years 661 611 10,069 7,860 6,010 6,700 1,751 3,393

18,194 18,758 212,813 210,619 25,774 26,620 45,470 46,572

the following are amounts arising from investment properties that have been recognised in profit or loss during the financial year.

Takaful Operator Family Takaful General Takaful Group

Note2012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’000

Rental Income 23 742 844 8,821 10,067 1,032 1,144 4,901 6,140




4. Investment properties (continued)

Takaful Operator Family Takaful General Takaful Company

Company Note2012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’000

At 1 January 17,750 11,665 202,435 198,172 26,620 29,234 45,430 46,361

- Additions - - - 5,092 - 443 - 5,535

- Disposals - - - (4,000) - (3,700) - (7,700)

- Reclassified to assets held for sale 14 (1,340) - (1,360) (668) (540) - (3,240) (668)

- Reclassified from property and equipment 3 - 4,635 - - - - - 4,635

- Fair value gains/(losses) for the year-net 25 840 1,450 3,775 3,839 (306) 643 2,315 (2,733)

- Impairment loss 30 - - (26) - - - (26) -

At 31 December 17,250 17,750 204,824 202,435 25,774 26,620 44,479 45,430

Comprising of:

Freehold land and buildings 8,690 9,240 173,105 172,200 14,464 14,430 17,499 18,190

Leasehold land and buildings more than 50 years 8,560 8,510 29,639 25,815 5,300 5,490 26,220 24,020

Leasehold land and buildings less than 50 years - - 2,080 4,420 6,010 6,700 760 3,220

17,250 17,750 204,824 202,435 25,774 26,620 44,479 45,430

the following are amounts arising from investment properties that have been recognised in profit or loss during the financial year.

Takaful Operator Family Takaful General Takaful Company

Note2012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’000

Rental Income 23 737 815 8,172 9,398 1,032 1,144 4,872 6,106

Investment properties comprise a number of commercial properties that are leased to third parties. In prior year, three properties have been transferred from property and equipment (see Note 3) to investment properties, since the buildings were no longer used by the Group and the Company and are now leased to third parties.

the Group’s and the Company’s investment properties were valued by independent professional valuer firms, using the comparison, cost and investment methods of valuations, where applicable.

In the comparison method approach, the sales and listings of comparable properties of within nearby locations are compiled. From the compiled data, adjustments are made by the valuers between the subject property and those similar properties.



4. Investment properties (continued)

the adjustments made are in relation to location, size and shape of the lot, physical features, legal and legislative constraints, building design and condition, time element, planning provision, improvements and renovation works made, if any, surrounding developments, facilities and amenities available and other factors that may affect the value of the subject property. these adjustments are therefore subject to uncertainties such as property market outlook, potential increases in rental rates and general economic conditions.

In the cost method approach, the indication of values consists of the sum of the present worth of the improvement value.

For the valuation of the improvements, the valuers have considered the following:

i) Cost of replacement of the building in accordance with current trend of market prices for materials, labour, contractor’s overhead, profit and fees;

ii) Accrued depreciation as evidenced by the observed condition and present and prospective serviceability in comparison with new units of like kind; and

iii) Extent, character and utility of the property.

the investment method is the capitalisation of net rent from a property. Net rent is the residue of gross annual rent less annual expenses (outgoings) required to sustain the rent with allowance for void and management fees.

During the year, the external valuers have considered the results of all these three methods in their valuation and applied professional judgement in the selection of the fair value of these investment properties. In prior year, the external valuers performed an update valuation of market value of these investment properties in arriving at the fair value, after considering the properties’ existing condition.




5. Investment in subsidiaries

Takaful Operator/Company

Company31.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’000

At cost

unquoted shares 80,759 80,759 80,759

Less: Accumulated impairment losses (17,030) (17,030) (10,012)

63,729 63,729 70,747

Details of the subsidiaries are as follows:

Country of effective ownership interest

Name of subsidiaries Principal activities incorporation 31.12.2012 31.12.2011 1.1.2011

Asean Retakaful International (L) Ltd. (“ARIL”)**

Family and General retakaful business Malaysia 63.09% 63.09% 63.09%

P.t. Syarikat takaful Indonesia and its subsidiaries* Investment holding Indonesia 56.00% 56.00% 56.00%

P.t. Asuransi takaful umum* General takaful business Indonesia 64.70% 64.70% 64.70%

P.t. Asuransi takaful keluarga* Family takaful business Indonesia 74.80% 74.80% 74.80%

* Not audited by kPMG Desa Megat & Co** Members’ Voluntary Winding-up commenced on 21 May 2012. the subsidiary has been consolidated based on management accounts.

6. Investment in associate

Investment in associate company amounting to RM2,473,000 (31.12.2011 and 1.1.2011: RM2,473,000) was fully impaired during the financial year ended 30 June 2007.



7. Other investments

the other investments comprise the following:

31.12.2012 Note

TakafulOperator

RM’000

FamilyTakafulRM’000

GeneralTakafulRM’000

GroupRM’000

Available-for-sale (a) 391,994 3,012,079 565,764 3,928,857

Fair value through profit or loss (b) 634 219,665 - 220,299

held-to-maturity (c) 1,585 253,271 35,575 290,431

394,213 3,485,015 601,339 4,439,587

31.12.2011


Fair value through profit or loss (b) - 174,392 - 174,392


268,445 2,999,751 508,119 3,738,093

1.1.2011




172,418 2,885,489 474,215 3,495,262




7. Other investments (continued)

the other investments comprise the following (continued):

31.12.2012 Note

TakafulOperator

RM’000



CompanyRM’000



held-to-maturity (c) - 241,908 32,722 274,630

384,209 3,278,123 596,164 4,217,516

31.12.2011




255,631 2,826,738 505,375 3,549,522

1.1.2011




163,377 2,736,625 471,496 3,334,638




(a) Available-for-sale (AFS) financial assets

At fair value31.12.2012

TakafulOperator

RM’000



GroupRM’000

Equity securities:

- Quoted in Malaysia 37,004 394,295 85,161 516,460

- Quoted outside Malaysia - 52 - 52

- unquoted in Malaysia 380 - - 380

- unquoted outside Malaysia 43 - - 43

37,427 394,347 85,161 516,935

unit trusts:


- Quoted outside Malaysia 6,730 79,889 2,322 88,941

- unquoted in Malaysia 61,270 187,332 36,379 284,981

92,844 299,176 49,636 441,656

Malaysian Government Islamic papers 20,155 550,388 93,916 664,459

Islamic debt securities:

- unquoted in Malaysia 199,576 1,758,563 337,051 2,295,190

- unquoted outside Malaysia 1,012 9,605 - 10,617

200,588 1,768,168 337,051 2,305,807

Investment in linked funds 40,980 - - -

total AFS financial assets 391,994 3,012,079 565,764 3,928,857





(a) Available-for-sale (AFS) financial assets (continued)


TakafulOperator

RM’000



GroupRM’000

Equity securities:


- Quoted outside Malaysia 535 415 - 950

- unquoted in Malaysia 380 - - 380


37,534 317,066 57,410 412,010

unit trusts:




66,874 242,205 39,772 348,851




- unquoted outside Malaysia 2,866 29,266 - 32,132

111,372 1,502,842 287,341 1,901,555








TakafulOperator

RM’000



GroupRM’000

Equity securities:


- Quoted outside Malaysia - 104 - 104

- unquoted in Malaysia 380 135 89 604


39,443 292,540 59,232 391,215

unit trusts:




49,892 189,916 34,886 274,694

Malaysian Government Islamic papers - 465,994 88,456 554,450



- unquoted outside Malaysia - 41,800 - 41,800

43,307 1,493,802 257,117 1,794,226









TakafulOperator

RM’000



CompanyRM’000

Equity securities:- Quoted in Malaysia 37,004 394,295 85,161 516,460 - unquoted in Malaysia 380 - - 380

37,384 394,295 85,161 516,840

unit trusts:- Quoted in Malaysia 24,844 31,955 10,935 67,734 - unquoted in Malaysia 61,270 187,332 36,379 284,981

86,114 219,287 47,314 352,715


Islamic debt securities:- unquoted in Malaysia 199,576 1,758,563 337,051 2,295,190








TakafulOperator

RM’000



CompanyRM’000

Equity securities:- Quoted in Malaysia 36,572 316,651 57,410 410,633 - unquoted in Malaysia 380 - - 380

36,952 316,651 57,410 411,013

unit trusts:- Quoted in Malaysia 12,934 18,730 5,047 36,711 - unquoted in Malaysia 48,726 174,649 33,711 257,086

61,660 193,379 38,758 293,797











TakafulOperator

RM’000



CompanyRM’000

Equity securities:- Quoted in Malaysia 39,017 292,301 59,143 390,461 - Quoted in Malaysia 380 135 89 604

39,397 292,436 59,232 391,065 unit trusts:

- Quoted in Malaysia 11,649 18,524 5,616 35,789 - unquoted in Malaysia 32,164 145,594 28,266 206,024

43,813 164,118 33,882 241,813








(b) Fair value through profit or loss (FVTPL) financial assets


TakafulOperator

RM’000



GroupRM’000

Equity securities:- Quoted in Malaysia - 39,753 - 39,753 - Quoted outside Malaysia - 32,330 - 32,330

- 72,083 - 72,083

Investment units in commodity, equity and fixed income closed end fund:- unquoted in Malaysia - 59,662 - 59,662

unit trusts:- Quoted outside Malaysia - 29,580 - 29,580

Islamic debt securities:- unquoted in Malaysia - 14,267 - 14,267

- unquoted outside Malaysia 634 44,073 - 44,707

634 58,340 - 58,974

total FVtPL financial assets 634 219,665 - 220,299





(b) Fair value through profit or loss (FVTPL) financial assets (continued)


TakafulOperator

RM’000



GroupRM’000

Equity securities:- Quoted in Malaysia - 29,747 - 29,747 - Quoted outside Malaysia - 31,251 - 31,251

- 60,998 - 60,998





- 23,517 - 23,517

total FVtPL financial assets - 174,392 - 174,392






TakafulOperator

RM’000



GroupRM’000

Equity securities:- Quoted in Malaysia - 26,483 - 26,483





- 21,571 - 21,571



TakafulOperator

RM’000



CompanyRM’000




- unquoted in Malaysia - 14,267 - 14,267








TakafulOperator

RM’000



CompanyRM’000







TakafulOperator

RM’000



CompanyRM’000









(c) Held-to-maturity (HTM) financial assets

31.12.2012

TakafulOperator

RM’000



GroupRM’000

At amortised costIslamic debt securities:

- unquoted in Malaysia - 129,127 - 129,127 - unquoted outside Malaysia 1,585 11,363 2,853 15,801


total htM financial assets 1,585 253,271 35,575 290,431

At fair valueIslamic debt securities:




31.12.2011

TakafulOperator

RM’000



GroupRM’000













(c) Held-to-maturity (HTM) financial assets (continued)

1.1.2011

TakafulOperator

RM’000



GroupRM’000









31.12.2012

TakafulOperator

RM’000



CompanyRM’000


- unquoted in Malaysia - 129,127 - 129,127 Malaysian Government Islamic papers - 112,781 32,722 145,503

total htM financial assets - 241,908 32,722 274,630







(c) Held-to-maturity (HTM) financial assets (continued)

31.12.2011

TakafulOperator

RM’000



CompanyRM’000







1.1.2011

TakafulOperator

RM’000



CompanyRM’000











(d) Carrying values of financial instruments

NoteAFS

RM’000FVTPL

RM’000HTM

RM’000Group

RM’000

At 1 January 2011 3,014,585 184,571 296,106 3,495,262 Purchases 1,894,490 22,663 143,811 2,060,964 Maturities (44,769) - (130,405) (175,174)Disposals (1,603,619) (41,571) - (1,645,190)Dividend income capitalised 9,467 - - 9,467 Fair value gains/(losses) recorded in:

Profit or loss 25 - 8,170 - 8,170 Other comprehensive income 37.2 (3,580) - - (3,580)Participants' fund (5,277) - - (5,277)

Allowance for impairment in financial assets 30 (8,250) - - (8,250)

Amortisation of premiums, net of accretion of discounts 1,780 - (39) 1,741

Effect of movement in exchange rates (705) 559 106 (40)

At 31 December 2011/1 January 2012 3,254,122 174,392 309,579 3,738,093 Purchases 2,490,821 94,162 9,678 2,594,661 Maturities (40,799) (1,500) (9,852) (52,151)Disposals (1,743,679) (45,925) (16,407) (1,806,011)Fair value gains/(losses) recorded in:

Profit or loss 25 - 6,334 - 6,334 Other comprehensive income 37.2 3,844 - - 3,844 Participants' fund (12,300) - - (12,300)


Amortisation of premiums, net of accretion of discounts (6,824) - (223) (7,047)

Effect of movement in exchange rates (8,024) (7,164) (2,344) (17,532)

At 31 December 2012 3,928,857 220,299 290,431 4,439,587




(d) Carrying values of financial instruments (continued)

NoteAFS

RM’000FVTPL

RM’000HTM

RM’000Company

RM’000

At 1 January 2011 2,939,754 120,170 274,714 3,334,638 Purchases 1,793,725 22,144 - 1,815,869 Maturities (44,769) - (5) (44,774)Disposals (1,519,862) (38,955) - (1,558,817)Dividend income capitalised 9,467 - - 9,467 Fair value gains/(losses) recorded in:

Profit or loss 25 - 5,554 - 5,554 Other comprehensive income 37.2 (3,444) - - (3,444)Participants' fund (2,462) - - (2,462)


Amortisation of premiums, net of accretion of discounts 1,780 - (39) 1,741

At 31 December 2011/1 January 2012 3,165,939 108,913 274,670 3,549,522 Purchases 2,422,920 20,931 - 2,443,851 Maturities (38,500) (1,500) - (40,000)Disposals (1,697,864) (21,143) - (1,719,007)Fair value gains/(losses) recorded in:

Profit or loss 25 - 6,481 - 6,481 Other comprehensive income 37.2 3,754 - - 3,754 Participants' fund (11,917) - - (11,917)


Amortisation of premiums, net of accretion of discounts (6,824) - (40) (6,864)

At 31 December 2012 3,829,204 113,682 274,630 4,217,516





(e) Fair values of financial instruments

Quoted market prices category are financial instruments that are measured in whole or in part by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange and published market price from print medias.

Market observable financial instruments are measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions and are instruments for which pricing is obtained from Bond Pricing Agency Malaysia and regulatory agency. the fair value of investments in structured products are obtained via investments bankers and/ or fund managers.

Non-market observable inputs means that fair values are determined in whole or in part using a valuation technique based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. the main asset class in this category are unquoted equity securities.

the fair values of the unquoted equity securities were determined to approximate the carrying amount as these are immaterial in the context of the financial statements.

(f) Maturity of other investments

the following investments mature after 12 months:

TakafulOperator

RM’000



GroupRM’000

31.12.2012AFS financial assets 210,727 2,238,536 388,298 2,837,561 FVtPL financial assets 634 42,317 - 42,951 htM financial assets 1,585 248,519 35,575 285,679

31.12.2011AFS financial assets 115,276 1,952,123 367,443 2,434,842 FVtPL financial assets - 77,657 - 77,657 htM financial assets 4,152 254,357 33,458 291,967

1.1.2011AFS financial assets 43,307 1,861,783 332,719 2,237,809 FVtPL financial assets - 13,069 - 13,069

htM financial assets 2,744 265,236 34,524 302,504




(f) Maturity of other investments (continued)

TakafulOperator

RM’000



CompanyRM’000


htM financial assets - 241,908 32,722 274,630








8. Retakaful assets

Note

FamilytakafulRM’000

GeneraltakafulRM’000

GroupRM’000



CompanyRM’000

31.12.2012Claims liabilities 17(a) 18,671 282,479 301,150 17,575 265,454 283,029 Contribution liabilities 17(b) - 72,297 72,297 - 69,745 69,745 Actuarial liabilities 17(c) 63,856 - 63,856 58,161 - 58,161

82,527 354,776 437,303 75,736 335,199 410,935


72,810 342,614 415,424 66,800 313,102 379,902


43,009 285,124 328,133 37,177 216,531 253,708



9. Deferred tax (assets)/liabilities

Deferred tax (assets) and liabilities are attributable to the following:

Assets Liabilities Net31.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’00031.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’00031.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’000

Group Takaful OperatorProperty and equipment - (25) (32) 404 - - 404 (25) (32)Investment properties - - (121) 1,992 1,651 - 1,992 1,651 (121)Other investments - - - 321 1,837 2,816 321 1,837 2,816 Loans and receivables, excluding

takaful receivables (630) (976) (1,345) - - - (630) (976) (1,345)takaful receivables (863) (1,222) (1,933) - - - (863) (1,222) (1,933)Other payables (11,435) (10,280) (3,931) - - - (11,435) (10,280) (3,931)Expense reserves (21,918) (4,614) (3,124) - - - (21,918) (4,614) (3,124)unabsorbed tax losses (2,253) (2,182) (2,752) - - - (2,253) (2,182) (2,752)

tax (assets)/liabilities (37,099) (19,299) (13,238) 2,717 3,488 2,816 (34,382) (15,811) (10,422)Set off of tax 2,717 3,488 2,816 (2,717) (3,488) (2,816) - - -

Net tax assets (34,382) (15,811) (10,422) - - - (34,382) (15,811) (10,422)

GroupProperty and equipment - (25) (32) 616 - - 616 (25) (32)Investment properties - - (121) 1,780 1,651 - 1,780 1,651 (121)Other investments - - - 321 1,837 2,816 321 1,837 2,816 Loans and receivables, excluding

takaful receivables (630) (976) (1,345) - - - (630) (976) (1,345)takaful receivables (863) (1,222) (1,933) - - - (863) (1,222) (1,933)Other payables (11,435) (10,280) (3,931) - - - (11,435) (10,280) (3,931)Expense reserves (21,918) (4,614) (3,124) - - - (21,918) (4,614) (3,124)

unabsorbed tax losses (2,253) (2,182) (2,752) - - - (2,253) (2,182) (2,752)


Net tax assets (34,382) (15,811) (10,422) - - - (34,382) (15,811) (10,422)




9. Deferred tax (assets)/liabilities (continued)

Assets Liabilities Net31.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’00031.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’00031.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’000

Company Takaful OperatorInvestment properties - - (121) 1,992 1,651 - 1,992 1,651 (121)Investment in subsidiaries (2,130) (2,130) (375) - - - (2,130) (2,130) (375)Other investments - - - 321 1,837 4,078 321 1,837 4,078 Loans and receivables, excluding



Net tax assets (30,623) (11,301) (3,495) - - - (30,623) (11,301) (3,495)

CompanyProperty and equipment - - - 212 - - 212 - - Investment properties - - (121) 1,780 1,651 - 1,780 1,651 (121)Investment in subsidiaries (2,130) (2,130) (375) - - - (2,130) (2,130) (375)Other investments - - - 321 1,837 4,078 321 1,837 4,078 Loans and receivables, excluding



Net tax assets (30,623) (11,301) (3,495) - - - (30,623) (11,301) (3,495)




As at1.1.2011

Recognised in profit

or loss (Note 31)

Recognised in other

compre-hensive income

(Note 31)

Effects of movement

in exchange rate

As at 31.12.2011


or loss (Note 31)

Recognised in other

compre-hensive income

(Note 31)

Effects of movement

in exchange rate

As at 31.12.2012

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group Takaful OperatorProperty and equipment (32) 7 - - (25) 4 450 (25) 404 Investment properties (121) 1,772 - - 1,651 341 - - 1,992 Other investments 2,816 (39) (927) (13) 1,837 (2,455) 939 - 321 Loans and receivables, excluding

takaful receivables (1,345) 373 - (4) (976) 322 - 24 (630)takaful receivables (1,933) 711 - - (1,222) 359 - - (863)Other payables (3,931) (6,348) - (1) (10,280) (1,325) - 170 (11,435)Expense reserves (3,124) (1,490) - - (4,614) (17,304) - - (21,918)unabsorbed tax losses (2,752) 598 - (28) (2,182) (263) - 192 (2,253)

tax (assets)/liabilities (10,422) (4,416) (927) (46) (15,811) (20,321) 1,389 361 (34,382)

GroupProperty and equipment (32) 7 - - (25) 4 662 (25) 616 Investment properties (121) 1,772 - - 1,651 129 - - 1,780 Other investments 2,816 (39) (927) (13) 1,837 (2,455) 939 - 321 Loans and receivables, excluding

takaful receivables (1,345) 373 - (4) (976) 322 - 24 (630)takaful receivables (1,933) 711 - - (1,222) 359 - - (863)Other payables (3,931) (6,348) - (1) (10,280) (1,325) - 170 (11,435)Expense reserves (3,124) (1,490) - - (4,614) (17,304) - - (21,918)unabsorbed tax losses (2,752) 598 - (28) (2,182) (263) - 192 (2,253)

tax (assets)/liabilities (10,422) (4,416) (927) (46) (15,811) (20,533) 1,601 361 (34,382)





As at1.1.2011


or loss (Note 31)

Recognised in other com-

prehensive income

(Note 31)As at

31.12.2011


or loss (Note 31)

Recognised in other com-

prehensive income

(Note 31)As at

31.12.2012RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Company Takaful OperatorInvestment properties (121) 1,772 - 1,651 341 - 1,992 Investment in subsidiaries (375) (1,755) - (2,130) - - (2,130)Other investments 4,078 (1,381) (860) 1,837 (2,455) 939 321 Loans and receivables, excluding

takaful receivables (1,345) 665 - (680) 297 - (383)takaful receivables (1,577) 355 - (1,222) 359 - (863)Other payables (1,706) (5,112) - (6,818) (1,499) - (8,317)Expense reserves (2,449) (1,490) - (3,939) (17,304) - (21,243)tax (assets)/liabilities (3,495) (6,946) (860) (11,301) (20,261) 939 (30,623)

CompanyProperty and equipment - - - - - 212 212 Investment properties (121) 1,772 - 1,651 129 - 1,780 Investment in subsidiaries (375) (1,755) - (2,130) - - (2,130)Other investments 4,078 (1,381) (860) 1,837 (2,455) 939 321 Loans and receivables, excluding

takaful receivables (1,345) 665 - (680) 297 - (383)takaful receivables (1,577) 355 - (1,222) 359 - (863)Other payables (1,706) (5,112) - (6,818) (1,499) - (8,317)Expense reserves (2,449) (1,490) - (3,939) (17,304) - (21,243)tax (assets)/liabilities (3,495) (6,946) (860) (11,301) (20,473) 1,151 (30,623)



10. Loans and receivables, excluding takaful receivables

31.12.2012 Note

TakafulOperator

RM’000



GroupRM’000

Financing receivables:Secured financing 284 70,625 5,561 76,470 unsecured financing 538 - - 538 Staff financing 7,250 - - 7,250 Allowance for impairment 37.4 (1,253) (301) (381) (1,935)

6,819 70,324 5,180 82,323

Fixed and call deposits with licensed financial institutions with maturity more than three months:

Licensed banks in Malaysia 49,378 293,738 80,172 423,288 Banks outside Malaysia 5,252 9,879 2,381 17,512

54,630 303,617 82,553 440,800

Other receivables:Investment receivable 10,994 64,768 8,764 84,526 Sundry deposits 347 1,263 1,062 2,672 Due from takaful Operator 20 - - 5,263 - Due from Family takaful Fund 20 34,390 - 12,631 - Due from General takaful Fund 20 14,161 - - - Prepayment 5,210 - - 5,210Sundry receivables 6,830 1,149 823 8,802

71,932 67,180 28,543 101,210

133,381 441,121 116,276 624,333




10. Loans and receivables, excluding takaful receivables (continued)

31.12.2011 Note

TakafulOperator

RM’000



GroupRM’000

Financing receivables:Secured financing 1,371 72,556 6,964 80,891 Staff financing 12,024 - - 12,024 Allowance for impairment 37.4 (2,102) (944) (1,024) (4,070)

11,293 71,612 5,940 88,845


Licensed banks in Malaysia 127,258 447,809 153,463 728,530 Banks outside Malaysia 5,854 12,811 2,807 21,472

133,112 460,620 156,270 750,002

Other receivables:Investment receivable 2,801 28,736 6,447 37,984 Sundry deposits 563 - - 563 Due from Family takaful Fund 20 17,176 - 4,811 - Due from General takaful Fund 20 3,425 - - - Prepayment 6,649 - - 6,649Sundry receivables 6,576 2,701 2,030 11,307

37,190 31,437 13,288 56,503

181,595 563,669 175,498 895,350




1.1.2011 Note

TakafulOperator

RM’000



GroupRM’000

Financing receivables:Secured financing 2,653 75,362 4,386 82,401 unsecured financing - - 5,000 5,000 Staff financing 14,708 - - 14,708 Allowance for impairment 37.4 (2,923) (2,986) (3,066) (8,975)

14,438 72,376 6,320 93,134


Licensed banks in Malaysia 119,467 333,928 117,685 571,080 Banks outside Malaysia 8,116 11,336 - 19,452

127,583 345,264 117,685 590,532

Other receivables:Investment receivable 1,748 47,464 7,529 56,741 Sundry deposits 495 179 - 674 Due from takaful Operator 20 - - 463 - Due from Family takaful Fund 20 24,341 - 6,692 - Due from General takaful Fund 20 12,329 - - - Prepayment 4,991 - - 4,991Sundry receivables 6,394 3,099 2,495 11,988

50,298 50,742 17,179 74,394

192,319 468,382 141,184 758,060





31.12.2012 Note

TakafulOperator

RM’000



CompanyRM’000

Financing receivables:Secured financing 216 70,625 5,561 76,402 unsecured financing 538 - - 538 Staff financing 5,509 - - 5,509 Allowance for impairment 37.4 (1,253) (301) (381) (1,935)

5,010 70,324 5,180 80,514


Licensed banks in Malaysia 49,378 288,188 77,807 415,373

Other receivables:Investment receivable 10,994 64,768 8,764 84,526 Sundry deposits 347 1,263 1,062 2,672 Due from Family takaful Fund 20 27,761 - 12,631 - Due from General takaful Fund 20 13,970 - - - Prepayment 3,602 - - 3,602Sundry receivables 727 531 - 1,258

57,401 66,562 22,457 92,058

111,789 425,074 105,444 587,945




31.12.2011 Note

TakafulOperator

RM’000



CompanyRM’000

Financing receivables:Secured financing 1,257 72,556 6,964 80,777 Staff financing 8,728 - - 8,728 Allowance for impairment 37.4 (1,823) (944) (1,024) (3,791)

8,162 71,612 5,940 85,714



Other receivables:Investment receivable 2,801 28,736 6,447 37,984 Sundry deposits 474 - - 474 Due from Family takaful Fund 20 9,568 - 4,811 - Due from General takaful Fund 20 5,043 - - - Prepayments 3,645 - - 3,645Sundry receivables 774 1,780 834 3,388

22,305 30,516 12,092 45,491

139,019 548,517 164,076 832,190





1.1.2011 Note

TakafulOperator

RM’000



CompanyRM’000

Financing receivables:Secured financing 2,310 75,362 4,386 82,058 unsecured financing - - 5,000 5,000 Staff financing 10,617 - - 10,617 Allowance for impairment 37.4 (2,644) (2,986) (3,066) (8,696)

10,283 72,376 6,320 88,979



Other receivables:Investment receivable 1,748 47,464 7,529 56,741 Sundry deposits 495 179 - 674 Due from Family takaful Fund 20 17,927 - 6,692 - Due from General takaful Fund 20 12,329 - - - Prepayments 2,925 - - 2,925Sundry receivables 737 2,983 2,495 6,215

36,161 50,626 16,716 66,555

160,911 456,930 140,721 721,614




the following loans and receivables, excluding takaful receivables mature after 12 months:

TakafulOperator

RM’000



GroupRM’000

31.12.2012Financing receivables 5,091 70,000 5,000 80,091 Fixed and call deposits with licensed financial institutions - 12,778 4,314 17,092 Other receivables 347 1,263 1,062 2,672

5,438 84,041 10,376 99,855

31.12.2011Financing receivables 3,560 70,648 5,360 79,568 Fixed and call deposits with licensed financial institutions - 18,065 6,645 24,710 Other receivables - 1,122 - 1,122

3,560 89,835 12,005 105,400

1.1.2011Financing receivables 11,293 71,612 5,940 88,845 Fixed and call deposits with licensed financial institutions - 10,710 3,475 14,185 Other receivables 495 179 - 674

11,788 82,501 9,415 103,704





the following loans and receivables, excluding takaful receivables mature after 12 months (continued):

TakafulOperator

RM’000



CompanyRM’000

31.12.2012Financing receivables 3,284 70,000 5,000 78,284 Fixed and call deposits with licensed financial institutions - 2,899 1,933 4,832 Other receivables 347 1,263 1,062 2,672

3,631 74,162 7,995 85,788

31.12.2011Financing receivables 432 70,648 5,360 76,440 Fixed and call deposits with licensed financial institutions - 18,065 6,645 24,710 Other receivables - 1,122 - 1,122

432 89,835 12,005 102,272

1.1.2011Financing receivables 8,162 71,612 5,940 85,714 Fixed and call deposits with licensed financial institutions - 10,710 3,475 14,185 Other receivables 495 179 - 674

8,657 82,501 9,415 100,573

estimation of fair values

the fair value of the financing receivables were determined to approximate the carrying amounts as these are immaterial in the context of the financial statements. the carrying amounts of fixed and call deposits and other receivables approximate their fair values.



11. Takaful receivables

Note



GroupRM’000



CompanyRM’000

31.12.2012Due contributions 59,998 22,380 82,378 58,099 17,575 75,674 Due from retakaful/ co-takaful 12,375 10,143 22,518 8,644 6,931 15,575

72,373 32,523 104,896 66,743 24,506 91,249 Less: Allowance for

impaired debts 37.4 (3,901) (6,982) (10,883) (3,850) (6,901) (10,751)

68,472 25,541 94,013 62,893 17,605 80,498



impaired debts 37.4 (5,567) (9,522) (15,089) (5,441) (9,444) (14,885)

62,352 47,462 109,814 54,355 31,496 85,851



impaired debts 37.4 (9,434) (26,719) (36,153) (7,976) (23,047) (31,023)

43,657 63,565 107,222 35,292 42,415 77,707




12. qardh receivables

Takaful Operator Group

Note2012

RM’0002011

RM’0002012

RM’0002011

RM’000

At 1 January 277 1,357 - - Increase during the year 3,274 66 - -

3,551 1,425 - - Qardh written off 30 (3,542) (1,145) - - Effect of movement in exchange rates (9) (1) - -

At 31 December - 277 - -

13. Cash and cash equivalents

TakafulOperator

RM’000



GroupRM’000

31.12.2012Cash and bank balances 6,507 29,983 11,731 48,221 Fixed and call deposits with licensed financial institutions with

maturity less than three monthsLicensed banks in Malaysia 71,483 191,102 37,799 300,384 Banks outside Malaysia 24,982 67,087 11,578 103,647

102,972 288,172 61,108 452,252



61,265 277,492 47,770 386,527



13. Cash and cash equivalents (continued)

TakafulOperator

RM’000



GroupRM’000



75,002 244,678 69,195 388,875

TakafulOperator

RM’000



CompanyRM’000


maturity less than three monthsLicensed banks in Malaysia 44,242 186,479 32,171 262,892

49,017 211,248 42,515 302,780



27,811 188,447 32,741 248,999




13. Cash and cash equivalents (continued)

TakafulOperator

RM’000



CompanyRM’000



27,702 164,266 50,015 241,983

the carrying amounts approximate their fair values due to the relatively short-term nature of these financial instruments.

14. Assets held for sale

As at 31 December 2012, the assets held for sale are as follows:

Note

TakafulOperator

RM’000



Group/Company

RM’000

At 1 January 2011 - - - - transferred from investment properties 4 - 668 - 668

At 31 December 2011/1 January 2012 - 668 - 668 Settlement for asset held for sale - (668) - (668)transferred from investment properties 4 1,340 1,360 540 3,240

At 31 December 2012 1,340 1,360 540 3,240

15. Capital and reserves

Takaful operator / Group / Company31.12.2012/31.12.2011/1.1.2011

AmountRM’000

Number of shares

’000

AuthorisedOrdinary shares of RM1.00 each 500,000 500,000

Issued and fully paidOrdinary shares of RM1.00 each 162,817 162,817



15. Capital and reserves (continued)

the holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Translation reserve

the translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

Fair value reserve

the fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets recognised in other comprehensive income until the investments are derecognised or impaired.

Revaluation reserve

the revaluation reserve relates to the revaluation of property.

Section 108 tax credit

the Finance Act, 2007 introduced a single tier company income tax system with effect from 1 January 2008. As such, the remaining Section 108 tax credit will be available to the Company until such time the credit is fully utilised or upon expiry of the six-year transitional period on 31 December 2013, whichever is earlier. the Company had fully utilised its available Section 108 tax credit balances in prior year. therefore, the Company is currently distributing single tier exempt dividend to its shareholders out of its entire retained earnings.

16. qardh payables

Family Fund General Fund Group2012

RM’0002011

RM’0002012

RM’0002011

RM’0002012

RM’0002011

RM’000

At 1 January 11,398 12,173 20,798 19,074 - - (Decrease)/Increase during the year (592) (1,078) 3,866 1,144 - - Effect of movement in exchange rates (408) 303 (776) 580 - -

At 31 December 10,398 11,398 23,888 20,798 - -




17. Takaful contract liabilities

the takaful contract liabilities comprise the following:

Family Takaful General Takaful Group

Group Note

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Provision for outstanding claims 17(a) 148,565 102,681 52,904 584,509 531,501 463,556 733,074 634,182 516,460

Provision for unearned contributions 17(b) - - - 295,439 352,154 312,042 295,439 352,154 312,042

Participants’ fund 17(c) 4,254,771 3,935,483 3,667,311 220,795 184,039 185,448 4,434,586 4,081,300 3,815,899

4,403,336 4,038,164 3,720,215 1,100,743 1,067,694 961,046 5,463,099 5,067,636 4,644,401

Family Takaful General Takaful Company

Company Note31.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’00031.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’00031.12.2012

RM’00031.12.2011

RM’0001.1.2011

RM’000

Provision for outstanding claims 17(a) 140,673 93,693 44,471 545,389 477,281 380,963 686,062 570,974 425,434

Provision for unearned contributions 17(b) - - - 279,351 327,063 278,515 279,351 327,063 278,515

Participants’ fund 17(c) 3,958,110 3,660,092 3,425,385 217,693 199,469 197,314 4,134,823 3,821,339 3,585,839

4,098,783 3,753,785 3,469,856 1,042,433 1,003,813 856,792 5,100,236 4,719,376 4,289,788



17. Takaful contract liabilities (continued)

(a) Provision for outstanding claims

the provision for outstanding claims and its movements are further analysed as follows:


Group Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

31.12.2012

Provision for claims reported by participants 28,387 (3,707) 24,680 389,557 (221,036) 168,521 417,944 (224,743) 193,201

Provision for IBNR 120,178 (14,964) 105,214 194,952 (61,443) 133,509 315,130 (76,407) 238,723

Provision for outstanding claims 148,565 (18,671) 129,894 584,509 (282,479) 302,030 733,074 (301,150) 431,924

31.12.2011

Provision for claimsreported by participants 30,237 (1,279) 28,958 387,642 (215,374) 172,268 417,879 (216,653) 201,226



1.1.2011

Provision for claimsreported by participants 26,762 (1,080) 25,682 356,285 (211,009) 145,276 383,047 (212,089) 170,958







(a) Provision for outstanding claims (continued)


Company

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

31.12.2012

Provision for claims reported by participants 25,386 (2,854) 22,532 356,014 (204,619) 151,395 381,400 (207,473) 173,927



31.12.2011

Provision for claimsreported by participants 26,150 (696) 25,454 340,045 (190,079) 149,966 366,195 (190,775) 175,420



1.1.2011

Provision for claimsreported by participants 24,085 (266) 23,819 279,433 (154,882) 124,551 303,518 (155,148) 148,370






(a) Provision for outstanding claims (continued) Movement of provision for outstanding claims:


Group Note Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

At 1 January 2011 27 52,904 (2,392) 50,512 463,556 (236,911) 226,645 516,460 (239,303) 277,157

Claims incurred during the year 436,516 (22,685) 413,831 230,274 (69,437) 160,837 662,803 (92,122) 570,681

Adjustment to claims incurred in prior accident years - - - (8,241) 25,765 17,524 (8,241) 25,765 17,524

Claims paid during the year 27 (432,862) 22,113 (410,749) (189,669) 38,902 (150,767) (618,544) 61,015 (557,529)

Increase in IBNR 46,302 (5,411) 40,891 36,588 (12,741) 23,847 82,890 (18,152) 64,738

Effect of movement in exchange rates (179) 373 194 (1,007) 405 (602) (1,186) 778 (408)

At 31 December 2011/ 1 January 2012 27 102,681 (8,002) 94,679 531,501 (254,017) 277,484 634,182 (262,019) 372,163


Adjustment to claims incurred in prior accident years - - - (18,639) 15,631 (3,008) (18,639) 15,631 (3,008)


Increase in IBNR 47,734 (8,241) 39,493 51,093 (22,800) 28,293 98,827 (31,041) 67,786

Effect of movement in exchange rates (449) 89 (360) (2,647) 1,707 (940) (3,096) 1,796 (1,300)

At 31 December 2012 27 148,565 (18,671) 129,894 584,509 (282,479) 302,030 733,074 (301,150) 431,924





(a) Provision for outstanding claims (continued)


Company Note Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

At 1 January 2011 27 44,471 (1,535) 42,936 380,963 (180,472) 200,491 425,434 (182,007) 243,427


Adjustment to claims incurred in prior accident years - - - 16,320 (8,517) 7,803 16,320 (8,517) 7,803


Increase in IBNR 47,157 (5,080) 42,077 35,706 (12,107) 23,599 82,863 (17,187) 65,676

At 31 December 2011/ 1 January 2012 27 93,693 (7,045) 86,648 477,281 (227,776) 249,505 570,974 (234,821) 336,153


Adjustment to claims incurred in prior accident years - - - (18,639) 15,631 (3,007) (18,639) 15,631 (3,007)


Increase in IBNR 47,744 (8,372) 39,372 52,139 (23,138) 29,001 99,883 (31,510) 68,373

At 31 December 2012 27 140,673 (17,575) 123,098 545,389 (265,454) 279,935 686,062 (283,029) 403,033



17. Takaful contract liabilities (continued) (b) Provision for unearned contributions

the provision for unearned contributions and its movements are further analysed as follows:

General Takaful Group Group

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

31.12.2012

Provision for unearned contributions 295,439 (72,297) 223,142 295,439 (72,297) 223,142

31.12.2011


1.1.2011


General Takaful Company Company

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

31.12.2012


31.12.2011


1.1.2011





17. Takaful contract liabilities (continued) (b) Provision for unearned contributions (continued)

Movement of provision for unearned contributions:

General Takaful Group Group

Note

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

At 1 January 2011 312,042 (48,213) 263,829 312,042 (48,213) 263,829

Contributions written during the year 22 441,889 (154,871) 287,018 441,499 (154,871) 286,628

Contributions earned during the year 22 (401,747) 114,401 (287,346) (401,357) 114,401 (286,956)

Effect of movement in exchange rates (30) 86 56 (30) 86 56

At 31 December 2011/1 January 2012 352,154 (88,597) 263,557 352,154 (88,597) 263,557



Effect of movement in exchange rates (1,023) 33 (990) (1,023) 33 (990)

At 31 December 2012 295,439 (72,297) 223,142 295,439 (72,297) 223,142

General Takaful Company

Company

Note Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

At 1 January 2011 278,515 (36,059) 242,456 278,515 (36,059) 242,456



At 31 December 2011/1 January 2012 327,063 (85,326) 241,737 327,063 (85,326) 241,737



At 31 December 2012 279,351 (69,745) 209,606 279,351 (69,745) 209,606




(c) Participants’ fund

Participants’ fund balance at end of reporting period comprise the following:


Group Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

31.12.2012

Actuarial liabilities 3,274,935 (63,856) 3,211,079 - - - 3,274,935 (63,856) 3,211,079

unallocated surplus/ accumulated surplus 681,054 - 681,054 209,283 - 209,283 890,337 - 890,337

AFS reserve 97,326 - 97,326 10,464 - 10,464 107,790 - 107,790

translation reserve 359 - 359 1,048 - 1,048 1,407 - 1,407

Net assets value attributable to unitholders 201,097 - 201,097 - - - 160,117 - 160,117

4,254,771 (63,856) 4,190,915 220,795 - 220,795 4,434,586 (63,856) 4,370,730

31.12.2011



AFS reserve 110,710 - 110,710 9,380 - 9,380 120,090 - 120,090

translation reserve 903 - 903 775 - 775 1,678 - 1,678


3,935,483 (64,808) 3,870,675 184,039 - 184,039 4,081,300 (64,808) 4,016,492





(c) Participants’ fund (continued)


Group Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

1.1.2011



AFS reserve 105,340 - 105,340 18,665 - 18,665 124,005 - 124,005

translation reserve 840 - 840 750 - 750 1,590 - 1,590


3,667,311 (40,617) 3,626,694 185,448 - 185,448 3,815,899 (40,617) 3,775,282


Company Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

31.12.2012



AFS reserve 98,215 - 98,215 10,373 - 10,373 108,588 - 108,588


3,958,110 (58,161) 3,899,949 217,693 - 217,693 4,134,823 (58,161) 4,076,662






Company Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000 Gross

RM’000Retakaful

RM’000Net

RM’000

31.12.2011



AFS reserve 111,153 - 111,153 9,352 - 9,352 120,505 - 120,505


3,660,092 (59,755) 3,600,337 199,469 - 199,469 3,821,339 (59,755) 3,761,584

1.1.2011



AFS reserve 103,035 - 103,035 18,570 - 18,570 121,605 - 121,605


3,425,385 (35,642) 3,389,743 197,314 - 197,314 3,585,839 (35,642) 3,550,197





(c) Participants’ fund (continued) the participants’ fund movements are analysed as follows:


Group

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

At 1 January 2011 3,667,311 (40,617) 3,626,694 185,448 - 185,448 3,815,899 (40,617) 3,775,282

Net earned contributions 694,719 (28,671) 666,048 287,346 - 287,346 981,675 (28,671) 953,004

Investment income 165,760 - 165,760 28,532 - 28,532 194,292 - 194,292

Realised gains and (losses) 71,641 - 71,641 16,389 - 16,389 88,030 - 88,030

Fair value gains and (losses) 12,009 - 12,009 643 - 643 12,652 - 12,652

Other operating income 37,116 - 37,116 45,711 - 45,711 82,827 - 82,827

Net benefits and claims (482,465) 27,743 (454,722) (201,176) - (201,176) (679,654) 27,743 (651,911)

Fees deducted (127,479) - (127,479) (31,438) - (31,438) (158,917) - (158,917)

Other operating expenses (9,544) - (9,544) (5,458) - (5,458) (15,002) - (15,002)

Release of special reserves - - - (23,061) - (23,061) (23,061) - (23,061)

Profit paid to participants (2,420) - (2,420) (23,173) - (23,173) (25,593) - (25,593)

Increase in actuarial liabilities (863) (24,191) (25,054) - - - (863) (24,191) (25,054)

Profit attributable to the takaful Operator (98,746) 928 (97,818) (85,547) - (85,547) (189,252) 928 (188,324)

Change in AFS reserve 5,370 - 5,370 (9,285) - (9,285) (3,915) - (3,915)

Effect of movement in exchange rates 3,074 - 3,074 (892) - (892) 2,182 - 2,182

At 31 December 2011 3,935,483 (64,808) 3,870,675 184,039 - 184,039 4,081,300 (64,808) 4,016,492






Group

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

At 1 January 2012 3,935,483 (64,808) 3,870,675 184,039 - 184,039 4,081,300 (64,808) 4,016,492

Net earned contributions 987,661 (46,869) 940,792 335,174 - 335,174 1,322,835 (46,869) 1,275,966



Fair value gains and (losses) 10,634 - 10,634 (306) - (306) 10,328 - 10,328



Fees deducted (net) (195,496) - (195,496) (80,600) - (80,600) (276,096) - (276,096)



Increase in actuarial liabilities (14,309) 489 (13,820) - - - (14,309) 489 (13,820)

Profit attributable to the takaful Operator (135,816) 6,636 (129,180) (61,833) - (61,833) (200,407) 6,636 (193,771)

Change in AFS reserve (13,384) - (13,384) 1,084 - 1,084 (12,300) - (12,300)

Withholding tax (41,036) - (41,036) (1,773) - (1,773) (42,809) - (42,809)

Effect of movement in exchange rates (24,544) 463 (24,081) 226 - 226 (24,318) 463 (23,855)

At 31 December 2012 4,254,771 (63,856) 4,190,915 220,795 - 220,795 4,434,586 (63,856) 4,370,730







Company

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

At 1 January 2011 3,425,385 (35,642) 3,389,743 197,314 - 197,314 3,585,839 (35,642) 3,550,197

Net earned contributions 563,342 (12,609) 550,733 244,876 - 244,876 808,218 (12,609) 795,609



Fair value gains and (losses) 9,393 - 9,393 643 - 643 10,036 - 10,036





Release of special reserves - - - (23,061) - (23,061) (23,061) - (23,061)


Increase in actuarial liabilities (2,171) (24,113) (26,284) - - - (2,171) (24,113) (26,284)

Profit attributable to the takaful Operator (85,065) (7,696) (92,761) (84,816) - (84,816) (171,243) (7,696) (178,939)

Change in AFS reserve 8,118 - 8,118 (9,218) - (9,218) (1,100) - (1,100)

At 31 December 2011 3,660,092 (59,755) 3,600,337 199,469 - 199,469 3,821,339 (59,755) 3,761,584






Company

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

Gross RM’000

RetakafulRM’000

NetRM’000

At 1 January 2012 3,660,092 (59,755) 3,600,337 199,469 - 199,469 3,821,339 (59,755) 3,761,584

Net earned contributions 862,722 (33,244) 829,478 284,270 - 284,270 1,146,992 (33,244) 1,113,748



Fair value gains and (losses) 10,256 - 10,256 (306) - (306) 9,950 - 9,950




Other operating expense (11,596) - (11,596) (3,732) - (3,732) (15,328) - (15,328)


Increase in actuarial liabilities (15,603) 1,594 (14,009) - - - (15,603) 1,594 (14,009)

Profit attributable to the takaful Operator (128,082) 3,365 (124,717) (64,466) - (64,466) (195,306) 3,365 (191,941)

Withholding tax (41,036) - (41,036) (1,773) - (1,773) (42,809) - (42,809)

Change in AFS reserves (12,938) - (12,938) 1,021 - 1,021 (11,917) - (11,917)

At 31 December 2012 3,958,110 (58,161) 3,899,949 217,693 - 217,693 4,134,823 (58,161) 4,076,662




18. expense reserves

Takaful Operator/ Group

Takaful Operator/ Company

2012RM’000

2011RM’000

2012RM’000

2011RM’000

At 1 January 19,739 12,502 15,758 9,800

Provision for the year, net 70,110 7,317 69,215 5,958

Effect of movement in exchange rates (363) (80) - -

At 31 December 89,486 19,739 84,973 15,758

19. Takaful payables



GroupRM’000



CompanyRM’000

31.12.2012

Due to retakaful companies 11,674 20,069 31,743 6,491 17,949 24,440

Due to intermediaries/participants 8,827 2,556 11,383 8,827 2,556 11,383

20,501 22,625 43,126 15,318 20,505 35,823

31.12.2011



19,496 26,041 45,537 15,930 23,522 39,452

1.1.2011



15,217 35,237 50,454 12,233 31,096 43,329

the carrying amounts disclosed above approximate their fair values at the end of the reporting period.



20. Other payables

Note

TakafulOperator

RM’000



GroupRM’000

31.12.2012

Advanced takaful contribution - 9,215 5,099 14,314

Deposit payable 294 1,828 313 2,435

Profit payable to participants - 1,028 2,583 3,611

unclaimed monies - 14,544 - 14,544

Outstanding purchases of investment securities 1,552 7,605 1,569 10,726

Due to takaful Operator 10 - 34,390 14,161 -

Due to General takaful Fund 10 5,263 12,631 - -

Zakat payable 1,211 - - 1,211

Other payables and accruals 76,211 75,193 37,767 189,172

84,531 156,434 61,492 236,013

31.12.2011


Deposit payable 296 3,285 - 3,581

Profit payable to participants - - 3,997 3,997

unclaimed monies - - 1,703 1,703

Outstanding purchases of investment securities 638 6,788 983 8,409


Due to General takaful Fund 10 - 4,811 - -

Zakat payable 676 - - 676 Other payables and accruals 64,387 91,703 34,426 192,545

65,997 129,119 52,624 224,357

1.1.2011





Outstanding purchases of investment securities - - 3,298 3,298


Due to General takaful Fund 10 463 6,692 - -

Zakat payable 1,231 - - 1,231


35,309 155,406 66,234 213,124




20. Other payables (continued)

Note

TakafulOperator

RM’000



CompanyRM’000

31.12.2012


Deposit payable 294 1,828 313 2,435

Profit payable to participants - 31 2,315 2,346

unclaimed monies - 14,544 - 14,544

Outstanding purchases of investment securities 1,552 7,605 1,569 10,726



Zakat payable 789 - - 789


72,680 145,157 60,303 223,778

31.12.2011





Outstanding purchases of investment securities 638 6,788 983 8,409





55,268 118,245 46,075 200,166

1.1.2011





Outstanding purchases of investment securities - - 3,298 3,298





22,921 146,373 62,524 194,870

the carrying amounts disclosed above approximate their fair values at the end of the reporting period.



21. Operating revenue

Note

TakafulOperator

RM’000



GroupRM’000

1.1.2012 to 31.12.2012

Gross contributions 22 - 973,005 401,437 1,373,965

Investment income 23 19,456 186,381 31,031 233,569

19,456 1,159,386 432,468 1,607,534

1.1.2011 to 31.12.2011



14,382 865,104 470,421 1,345,473

1.1.2012 to 31.12.2012 Note

TakafulOperator

RM’000



CompanyRM’000



17,000 1,013,929 379,711 1,407,489

1.1.2011 to 31.12.2011

Gross contributions 22 - 567,736 383,316 950,662


11,652 721,794 411,239 1,140,915




22. Net earned contributions


Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

(i) Gross contributions 17(b),21 973,005 699,344 401,437 441,889 1,373,965 1,140,843

Change in actuarial reserves/unearned contributions reserves 14,656 (4,625) 55,692 (40,142) 70,348 (44,767)

Gross earned contributions 17(b) 987,661 694,719 457,129 401,747 1,444,313 1,096,076

(ii) Retakaful 17(b) (45,798) (27,608) (105,688) (154,871) (151,486) (182,479)

Change in actuarial reserves/unearned contributions reserves (1,071) (1,063) (16,267) 40,470 (17,338) 39,407

Contributions ceded to retakaful 17(b) (46,869) (28,671) (121,955) (114,401) (168,824) (143,072)

(iii) Net earned contributions 17(b) 940,792 666,048 335,174 287,346 1,275,489 953,004


Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

(i) Gross contributions 17(b),21 848,711 567,736 349,547 383,316 1,197,781 950,662

Change in actuarial reserves/unearned contributions reserves 14,011 (4,394) 47,712 (48,548) 61,723 (52,942)

Gross earned contributions 862,722 563,342 397,259 334,768 1,259,504 897,720

(ii) Retakaful 17(b) (33,244) (12,609) (97,408) (139,159) (130,652) (151,768)

Change in actuarial reserves/unearned contributions reserves - - (15,581) 49,267 (15,581) 49,267

Contributions ceded to retakaful (33,244) (12,609) (112,989) (89,892) (146,233) (102,501)

(iii) Net earned contributions 17(b) 829,478 550,733 284,270 244,876 1,113,271 795,219



23. Investment income

1.1.2012 to 31.12.2012 Note

TakafulOperator

RM’000



GroupRM’000

Rental income from investment properties 4 742 8,821 1,032 4,901

FVtPL financial assets

Dividend income

- Equity securities quoted in Malaysia - 1,470 - 1,470

Profit earned on Islamic debts securities - 13,042 - 13,042

AFS financial assets

Dividend income

- Equity securities quoted in Malaysia 1,603 12,802 3,022 17,427

- unit trusts 3,534 10,146 1,945 15,625

Profit income

- Islamic debts securities 8,085 95,064 17,330 120,479

- Malaysian Government Islamic papers 404 19,644 3,653 23,701

Amortisation of premiums, net of accretion of discounts (513) (4,453) (1,858) (6,824)

htM financial assets

Profit income

- Islamic debts securities 466 6,647 181 7,294

- Malaysian Government Islamic papers - 4,369 1,280 5,649

Amortisation of premiums, net of accretion of discounts - (178) (45) (223)

LAR profit income 4,290 17,041 4,416 25,747

Cash and cash equivalents profit income 1,425 3,623 619 5,667

Investment expenses (580) (1,657) (544) (386)

total investment income 21 19,456 186,381 31,031 233,569




23. Investment income (continued)

1.1.2011 to 31.12.2011 Note

TakafulOperator

RM’000



GroupRM’000


FVtPL financial assets -

Dividend income -

- Equity securities quoted in Malaysia - 917 - 917

Profit earned on Islamic debts securities - 662 - 662

AFS financial assets -

Dividend income -


- unit trusts 1,909 8,519 1,784 12,212

Profit income -



Amortisation of premiums, net of accretion of discounts (332) 2,708 (596) 1,780

htM financial assets -

Profit income -


- Malaysian Government Islamic papers - 2,922 857 3,779



Cash and cash equivalents profit income 11 54 49 114

Investment expenses (432) (2,288) (461) (1,310)





1.1.2012 to 31.12.2012 Note

TakafulOperator

RM’000



CompanyRM’000



Dividend income

- Equity securities quoted in Malaysia - 1,470 - 1,470



Dividend income


- unit trusts 3,534 10,146 1,945 15,625

Profit income



Amortisation of premiums, net of accretion of discounts (513) (4,453) (1,858) (6,824)


Profit income

- Islamic debts securities - 6,464 - 6,464

- Malaysian Government Islamic papers - 4,369 1,280 5,649

Amortisation of premiums, net of accretion of discounts - 5 (45) (40)



Investment expenses (580) (1,657) (544) (386)






1.1.2011 to 31.12.2011 Note

TakafulOperator

RM’000



CompanyRM’000



Dividend income

- Equity securities quoted in Malaysia - 917 - 917



Dividend income


- unit trusts 1,909 8,519 1,784 12,212

Profit income



Amortisation of premiums, net of accretion of discounts (332) 2,708 (596) 1,780


Profit income


- Malaysian Government Islamic papers - 2,922 857 3,779




Investment expenses (432) (2,288) (461) (1,310)




24. Realised gains and (losses)

TakafulOperator

RM’000



GroupRM’000

1.1.2012 to 31.12.2012

Realised gains/(losses):

Property and equipment 159 - - 159

Investment properties - (72) - (72)


Equity securities

- quoted in Malaysia 5,882 37,632 8,036 51,550

- quoted outside Malaysia 133 79 - 212

unit trusts

- quoted in Malaysia 1,492 3,522 391 5,405

- quoted outside Malaysia 412 4,308 150 4,870

Islamic debt securities


- unquoted outside Malaysia 74 786 - 860

Malaysian Government Islamic papers 137 1,125 198 1,460

total realised gains for AFS financial assets 9,540 98,154 13,508 121,202

9,699 98,082 13,508 121,289

1.1.2011 to 31.12.2011



Investment properties - 706 (1,003) (297)


Equity securities


- quoted outside Malaysia 113 (888) 78 (697)

unit trusts

- quoted in Malaysia 970 607 520 2,097

- unquoted in Malaysia 153 17 - 170

- quoted outside Malaysia 383 887 - 1,270


- unquoted in Malaysia 714 26,801 5,976 33,491

- unquoted outside Malaysia 248 1,961 - 2,209

Malaysian Government Islamic papers - 1,931 219 2,150


9,299 71,641 16,389 97,329




24. Realised gains and (losses) (continued)

TakafulOperator

RM’000



CompanyRM’000

1.1.2012 to 31.12.2012



Investment properties - (72) - (72)


Equity securities


unit trusts

- quoted in Malaysia 1,492 3,522 391 5,405



Malaysian Government Islamic papers 137 1,125 198 1,460


9,047 92,909 13,358 115,314

1.1.2011 to 31.12.2011



Investment properties - 706 (1,003) (297)


Equity securities


unit trusts

- quoted in Malaysia 970 607 520 2,097

- unquoted in Malaysia 153 17 - 170


- unquoted in Malaysia 714 26,801 5,976 33,491

Malaysian Government Islamic papers - 1,931 219 2,150


8,555 69,681 16,311 94,547



25. Fair value gains and (losses)

Note

TakafulOperator

RM’000



GroupRM’000

1.1.2012 to 31.12.2012

Fair value gains/(losses) arising from:

Investment properties 4 845 4,300 (306) 2,257


Equity securities

- quoted in Malaysia - 3,922 - 3,922


- unquoted in Malaysia - (46) - (46)

- unquoted outside Malaysia - (147) - (147)

Commodity, equity and fixed income closed end fund - 2,605 - 2,605

total fair value gains for FVtPL financial assets 7(d) - 6,334 - 6,334

845 10,634 (306) 8,591

1.1.2011 to 31.12.2011


Investment properties 4 1,460 3,839 643 (2,734)


Equity securities


- quoted outside Malaysia - 2,616 - 2,616





1,460 12,009 643 5,436




25. Fair value gains and (losses) (continued)

Note

TakafulOperator

RM’000



CompanyRM’000

1.1.2012 to 31.12.2012


Investment properties 4 840 3,775 (306) 2,315


Equity securities






840 10,256 (306) 8,796

1.1.2011 to 31.12.2011


Investment properties 4 1,450 3,839 643 (2,733)


Equity securities






1,450 9,393 643 2,821



26. Other operating income

Note

TakafulOperator

RM’000



GroupRM’000

1.1.2012 to 31.12.2012

Income from ILB, service charge and management fees 8,072 - - 1,501

Miscellaneous income 1,931 3,760 2,485 8,176

Recovery of bad debts written off - 518 7 525

Writeback of allowance for impaired debts 37.4 - 1,666 2,540 4,206

Writeback of allowance for impaired financing 37.4 849 643 643 2,135

10,852 6,587 5,675 16,543

1.1.2011 to 31.12.2011

Income from ILB, service charge and management fees 7,495 - - 1,409

Miscellaneous income 1,922 402 960 3,284

Recovery of bad debts written off - 132 2,451 2,583


Writeback of allowance for impaired financing 37.4 821 2,042 2,042 4,905

Writeback of special reserve - 30,673 23,061 53,734

10,238 37,116 45,711 86,979

Note

TakafulOperator

RM’000



CompanyRM’000

1.1.2012 to 31.12.2012

Income from ILB, service charge and management fees 6,571 - - -

Miscellaneous income - 2,762 1,760 4,522

Recovery of bad debts written off - 518 7 525


Writeback of allowance for impaired financing 37.4 570 643 643 1,856

7,141 5,514 4,953 11,037

1.1.2011 to 31.12.2011

Income from ILB, service charge and management fees 6,086 - - -

Miscellaneous income - 635 - 635

Recovery of bad debts written off - 132 2,451 2,583


Writeback of allowance for impaired financing 37.4 821 2,042 2,042 4,905

Writeback of special reserve - 30,673 23,061 53,734

6,907 36,017 41,157 77,995




27. Net benefits and claims


Group Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Gross benefits/claims paid 17(a) (484,087) (432,862) (173,590) (189,669) (654,024) (618,544)

Retakaful recoveries 17(a) 29,475 22,113 26,523 38,902 55,998 61,015

Net benefits/claims paid (454,612) (410,749) (147,067) (150,767) (598,026) (557,529)

Gross change in contract liabilities:

At 31 December 17(a) (148,565) (102,681) (584,509) (531,501) (733,074) (634,182)

Less:At 1 January 17(a) (102,681) (52,904) (531,501) (463,556) (634,182) (516,460)

Effect of movement in exchange rates (449) 174 (2,647) 1,395 (3,096) 1,569

(46,333) (49,603) (55,655) (66,550) (101,988) (116,153)

Change in contract liabilities ceded to retakaful companies:

At 31 December 17(a) 18,671 8,002 282,479 254,017 301,150 262,019

Less:At 1 January 17(a) 8,002 2,392 254,017 236,911 262,019 239,303

Effect of movement in exchange rates 89 20 1,707 (965) 1,796 (945)

10,758 5,630 30,169 16,141 40,927 21,771

(490,187) (454,722) (172,553) (201,176) (659,087) (651,911)



27. Net benefits and claims (continued)


Company Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Gross benefits/claims paid 17(a) (415,977) (366,998) (153,229) (154,862) (565,553) (517,873)

Retakaful recoveries 17(a) 19,349 14,795 23,382 26,638 42,731 41,433

Net benefits/claims paid (396,628) (352,203) (129,847) (128,224) (522,822) (476,440)

Gross change in contract liabilities:

At 31 December 17(a) (140,673) (93,693) (545,389) (477,281) (686,062) (570,974)

Less:At 1 January 17(a) (93,693) (44,471) (477,281) (380,963) (570,974) (425,434)

(46,980) (49,222) (68,108) (96,318) (115,088) (145,540)

Change in contract liabilities ceded to retakaful companies:

At 31 December 17(a) 17,575 7,045 265,454 227,776 283,029 234,821

Less:At 1 January 17(a) 7,045 1,535 227,776 180,472 234,821 182,007

10,530 5,510 37,678 47,304 48,208 52,814

(433,078) (395,915) (160,277) (177,238) (589,702) (569,166)




28. Management expenses

Takaful Operator Group

Group Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Personnel expenses (including key management personnel)

Directors’ remuneration

- Salaries and other emoluments 3,907 1,852 3,907 1,852

- Fees 806 860 806 860

Shariah Committee remuneration

- Emoluments 133 113 133 113

- Fees 205 167 205 167

Wages, salaries and others 102,811 90,063 102,334 89,673

Contributions to Employees' Provident Fund 12,553 9,106 12,553 9,106

120,415 102,161 119,938 101,771

Depreciation of property and equipment 3 11,308 10,601 15,161 14,260

Auditors' remuneration

Company auditors

- Statutory audit 547 424 547 424

Other services 60 - 60 -

Other auditors


License fees 191 193 191 193

Legal fees 251 150 251 150

Professional fees 13,612 11,521 13,612 11,521

Rental of properties 8,057 8,353 2,363 2,438

Rental of equipments 1,403 2,284 1,403 2,284

Repair and maintenance

- property and equipment 9,221 7,831 9,221 7,831

travelling expenses 3,968 4,423 3,968 4,423

utilities 2,030 2,426 2,030 2,426

Communication costs 6,437 6,552 6,437 6,552

Advertising 4,347 5,418 4,347 5,418

Other expenses 26,096 27,298 26,096 27,298

87,624 87,553 85,783 85,297

total management expenses 208,039 189,714 205,721 187,068

All management expenses are borne by the takaful Operator.



28. Management expenses (continued)

Takaful Operator Company

Company Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Personnel expenses (including key management personnel)

Directors’ remuneration

- Salaries and other emoluments 3,550 1,763 3,550 1,763

- Fees 783 579 783 579

Shariah Committee remuneration

- Emoluments 4 - 4 -

- Fees 193 167 193 167

Wages, salaries and others 83,506 76,355 83,029 75,965

Contributions to Employees'

Provident Fund 12,315 9,106 12,315 9,106

100,351 87,970 99,874 87,580

Depreciation of property and equipment 3 9,934 9,419 13,059 12,382

Auditors' remuneration

Company auditors


- Other services 60 - 60 -

License fees 191 127 191 127

Legal fees 181 87 181 87

Professional fees 12,600 10,702 12,600 10,702

Rental of properties 5,611 6,035 542 784

Rental of equipments 1,396 2,275 1,396 2,275

Repair and maintenance

- property and equipment 7,647 6,840 7,647 6,840

travelling expenses 3,557 3,759 3,557 3,759

utilities 998 1,094 998 1,094

Communication costs 4,672 4,446 4,672 4,446

Advertising 2,677 3,573 2,677 3,573

Other expenses 20,812 14,825 20,812 14,825

70,883 63,582 68,939 61,294

total management expenses 171,234 151,552 168,813 148,874

All management expenses are borne by the takaful Operator.




29. Key management personnel compensation the key management personnel compensation are as follows:

Takaful Operator/Group

Takaful Operator/Company

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Directors of the Company

Executive:

Salaries and other emoluments 3,541 1,812 3,458 1,723

Fees 3 - - - Benefits-in-kind 15 7 7 7

3,559 1,819 3,465 1,730

Non-executive:

Other emoluments 366 40 92 40

Fees 803 860 783 579

Benefits-in-kind 12 9 - 5

1,181 909 875 624

Other key management personnel:

Short-term employment benefits 6,625 4,426 5,729 3,718

Benefits-in-kind 226 159 - -

6,851 4,585 5,729 3,718

total 11,591 7,313 10,069 6,072

the estimated monetary value of benefits-in-kind received by the Directors, are RM27,000 (2011: RM16,000) and RM7,000 (2011: RM12,000) at Group and Company level respectively.



30. Other operating expenses

Group Note

TakafulOperator

RM’000



GroupRM’000

1.1.2012 to 31.12.2012

Impairment of:

- AFS financial assets 7(d) 1,081 5,523 1,700 8,304

- Investment properties 4 - 26 - 26

- Property and equipment 3 197 - - 848

Write off of property and equipment 46 - - 46

Qardh written off 12 3,542 - - -

Agency related expenses 3,646 - - 3,646

Miscellaneous expenses 326 7,173 3,619 10,819

8,838 12,722 5,319 23,689

1.1.2011 to 31.12.2011

Impairment of:


- Property and equipment 3 - - - 140


Qardh written off 12 1,145 - - 1,145


3,092 9,544 5,458 18,097




Company Note

TakafulOperator

RM’000



CompanyRM’000

1.1.2012 to 31.12.2012

Impairment of:


- Investment properties 4 - 26 - 26

- Property and equipment 3 - - - 479


Agency related expenses 3,646 - - 3,646


5,091 11,596 3,732 20,599

1.1.2011 to 31.12.2011

Impairment of:


- Investment in subsidiaries 3 7,018 - - 7,018

- Property and equipment - - - 129



8,894 9,544 5,458 23,888

30. Other operating expenses (continued)



31. Tax expense


Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Recognised in profit or loss

Current tax expense

Malaysian - current 44,847 24,434 44,847 24,434

under provision in prior years - 4,288 - 4,288

total current tax recognised in profit or loss 44,847 28,722 44,847 28,722

Deferred tax benefits

Deferred tax recognised in profit or loss 9 (20,321) (4,416) (20,533) (4,416)

total tax expense 24,526 24,306 24,314 24,306

Reconciliation of tax expense

Profit for the year 101,590 76,379 100,144 76,379

Zakat 1,000 733 1,000 733

total income tax expense 24,526 24,306 24,314 24,306


Income tax using Malaysian tax rate of 25% 31,779 25,355 31,365 25,355

Effect of tax rates in foreign jurisdictions (826) - (826) -

Items not subject to tax (11,955) (11,654) (11,733) (11,654)

Non deductible expenses 5,528 6,317 5,528 6,317

24,526 20,018 24,314 20,018


tax expense 24,526 24,306 24,314 24,306

Recognised directly in equity

Deferred tax

AFS financial assets 9 939 927 939 927

Property and equipment - Revalution reserve 9 450 - 662 -

9 1,389 927 1,601 927




31. Tax expense (continued)


Note

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Recognised in profit or loss

Current tax expense

Malaysian - current 44,847 24,434 44,847 24,434


total current tax recognised in profit or loss 44,847 28,722 44,847 28,722

Deferred tax benefits

Deferred tax recognised in profit or loss 9 (20,261) (6,946) (20,473) (6,946)

total tax expense 24,586 21,776 24,374 21,776

Reconciliation of tax expense

Profit for the year 103,984 71,709 102,657 71,709

Zakat 789 474 789 474

total income tax expense 24,586 21,776 24,374 21,776


Income tax using Malaysian tax rate of 25% 32,167 23,490 31,955 23,490

Items not subject to tax (12,839) (10,190) (12,839) (10,190)

Non deductible expenses 5,258 4,188 5,258 4,188

24,586 17,488 24,374 17,488


tax expense 24,586 21,776 24,374 21,776

Recognised directly in equity

Deferred tax

AFS financial assets 9 939 860 939 860

Property and equipment - Revalution reserve 9 - - 212 -

9 939 860 1,151 860



32. earnings per share - Group

Basic earnings per ordinary share

the calculation of basic earnings per ordinary share at 31 December 2012 was based on the profit attributable to ordinary shareholders of RM101,245,000 (2011: RM76,785,000) and a weighted average number of ordinary shares issued during the year of 162,817,000 (2011: 162,817,000).

Basic earnings per ordinary share is not diluted as there is no potential ordinary share in issue at the end of the reporting period.

33. Dividends Dividends recognised by the Company:

Sen pershare

(single tier)

TotalamountRM’000

Date ofpayment

1.1.2012 to 31.12.2012

Ordinary dividend paid, final for financial year 2011 10.00 16,282 28.5.2012

Ordinary dividend paid, first interim for financial year 2012 15.00 24,422 21.9.2012

Ordinary dividend paid, second interim for financial year 2012 10.00 16,282 11.1.2013

total amount 56,986

1.1.2011 to 31.12.2011

Ordinary dividend paid, final for financial period 2010 5.25 8,548 27.5.2011

Ordinary dividend paid, interim for financial year 2011 5.75 9,362 2.12.2011

total amount 17,910




34. Operating segments

Segment information is presented in respect of the Group’s geographical segments. this is based on the Group’s management and internal reporting structure. Inter-segment pricing, if any, is determined based on negotiated terms. the Group does not present information by business segment as it is principally engaged as an operator of Family and General takaful/retakaful business. the financial position and performance of the Family and General takaful businesses managed by the Group and Company have been disclosed separately within these financial statements.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable

basis. unallocated items comprise expenses, which are all incurred by takaful Operator for the management of takaful funds.

Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year.

Geographical segments In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers.

Segment assets are also based on the geographical location of assets.

Geographical segmentsMalaysia

RM’000Indonesia

RM’000Consolidated

RM’000

1 January 2012 to 31 December 2012

total external revenue 1,408,284 199,250 1,607,534

Inter-segment revenue - - -

total segment revenue 1,408,284 199,250 1,607,534

Segment result/Profit before zakat and taxation 123,780 1,678 125,458

Zakat (1,000)

tax expense (24,314)

Profit for the year 100,144

Segment assets by location of assets 5,946,218 425,426 6,371,644

Segment liabilities by location of liabilities 5,478,471 367,812 5,846,283

Capital expenditure by location of assets 6,891 583 7,474

Depreciation and amortisation 13,095 2,066 15,161

Non cash expenses other than depreciation and amortisation 8,376 - 8,376



34. Operating segments (continued)

Geographical segmentsMalaysia

RM’000Indonesia

RM’000Consolidated

RM’000

1 January 2011 to 31 December 2011

total external revenue 1,153,171 196,736 1,349,907

Inter-segment revenue - - -

total segment revenue 1,153,171 196,736 1,349,907

Segment result/Profit before zakat and taxation 98,543 2,875 101,418

Zakat (733)

tax expense (24,306)

Profit for the year 76,379

Segment assets by location of assets 5,483,394 400,530 5,883,924

Segment liabilities by location of liabilities 1,240,612 66,779 1,307,391

Capital expenditure by location of assets 12,028 1,127 13,155

Depreciation and amortisation 12,191 2,069 14,260

Non cash expenses other than depreciation and amortisation 9,431 - 9,431




35. Risk management framework

the Board with the assistance of the management team is responsible for the Risk Management Framework within the Group. the Board delegates the responsibility of oversight and monitoring of management’s initiatives in managing key risk areas and ensure the functioning of the risk management processes to the Board Risk Committee (“BRC”). the BRC is supported by the Management Risk Committee (“MRC”) who is represented by the respective heads of divisions and headed by the Group Managing Director.

the Group established the Operational Risk Management (“ORM”) Framework to ensure an ongoing process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations.

By executing the risk management process through robust controls, monitoring and responding to potential risks, the Group is able to mitigate risks to within the risk appetite of the Board. Operational Loss Incidences reporting based on the Basel II are reported to BRC and the Board to act as a gauge on the effectiveness of the ORM in place.

Whistle Blowing Policy & Fraud and Integrity Policy, Shariah Governance Framework and Assets and Liabilities Management Framework are also in place to provide basic structure and further strengthen the existing control mechanism underlying the business activities.

Business Continuity Management is consistently practiced in accordance with Bank Negara Malaysia guidelines. the Group tested the Business Continuity Plan annually to safeguard the lives of the employees and others in the office premises and tested the Disaster Recovery Plan twice a year to ensure the critical It systems are up and running at all times.

In Financial Risk, the Group has a Risk and Capital Management Framework to maintain financial resilience and stability, whilst having the flexibility of pursuing strategic business opportunities to optimize shareholder value.

Stress testing is conducted twice a year by the Actuarial Division together with Investment Department and Risk Management Department to ensure the Group’s financial standing is secure under several risk scenarios.

Asset and Liability Management Framework is also in place to enhance Financial Risk Management and facilitate in the Group’s and the Group’s investment strategy.

36. Takaful risk management

(a) Family Takaful Fund

the Family takaful contracts consist of:

(i) Family Takaful non-investment-linked contracts

the Family takaful non-investment-linked contracts are mainly credit related takaful products, group takaful schemes, yearly renewable individual ordinary medical plan, regular contribution individual ordinary plans and annuity plans. the main products type are Mortgage Reducing term takaful (MRtt), Group Credit takaful, Group term takaful and Group Medical takaful.

(ii) Family Takaful investment-linked contracts

the Family takaful investment-linked contracts are mainly made up of regular contribution Investment-linked products and single contribution structured investment-linked plan. the main products are takaful myInvest and takaful myGenLife.



36. Takaful risk management (continued)

(a) Family Takaful Fund (continued) (ii) Family Takaful investment-linked contracts (continued)

The key coverage for the Family Takaful contracts

the key coverage for the Family takaful contracts are death, total and permanent disability, hospital and surgical benefits, personal accident benefits, daily hospitalisation cash allowance benefit, dread disease benefit, waiver of contribution benefits and survival benefits (for annuity).

Concentration of Family Takaful risk the following gives details of the Group’s and the Company’s concentration of risks based on outstanding actuarial reserves by main product

categories:

Group NoteGross

RM’000Retakaful

RM’000Net

RM’000

31 December 2012

term 568,419 (19,433) 548,986

Endowment 1,367,038 - 1,367,038

Mortgage 1,020,053 (44,423) 975,630

Annuity 319,425 - 319,425

Total Family actuarial liabilities 17(c) 3,274,935 (63,856) 3,211,079

31 December 2011

term 301,896 (1,361) 300,535

Endowment 1,431,443 (594) 1,430,849

Mortgage 1,082,552 (62,853) 1,019,699

Annuity 309,072 - 309,072


1 January 2011

term 232,986 (2,402) 230,584

Endowment 1,400,820 (459) 1,400,361

Mortgage 971,472 (37,756) 933,716

Annuity 304,386 - 304,386






(a) Family Takaful Fund (continued)

Company NoteGross

RM’000Retakaful

RM’000Net

RM’000

31 December 2012

term 515,922 (19,433) 496,489

Endowment 1,196,245 - 1,196,245

Mortgage 1,030,053 (38,728) 991,325

Annuity 319,425 - 319,425


31 December 2011

term 296,513 - 296,513

Endowment 1,272,259 - 1,272,259

Mortgage 1,049,391 (59,755) 989,636

Annuity 309,072 - 309,072


1 January 2011

term 228,166 - 228,166

Endowment 1,264,731 - 1,264,731

Mortgage 947,721 (35,642) 912,079

Annuity 304,386 - 304,386


Key assumptions

Arising from the adoption of guidelines on valuation basis for liabilities of Family takaful Business (issued by Bank Negara Malaysia), with effect from 1 January 2012, reserves for all plans were valued on a basis that the Appointed Actuary would consider adequate and appropriate, and in line with the valuation basis set out by BNM in respect of the Guidelines on Valuation Basis for Liabilities of Family takaful Business (BNM/Rh/GL 004-20).

In prior year, reserves for all plans were valued on a basis that the Appointed Actuary would consider adequate and appropriate, and in line with the valuation basis set out by BNM in a letter issued by BNM in respect of the Valuation of Liabilities for Mortgage Reducing term takaful (JPIt/1/2007/tO) and Guidelines on Investment Linked Insurance/takaful Business (BNM/Rh/GL 010-15). For certain products where there is no specific guideline issued by BNM for takaful operators, the reserves were calculated in accordance with actuarial principles, taking into account the reserving methodology and basis stated in the Insurance Regulation, 1996 which was applicable to conventional insurance companies prior to implementation of Risk-Based Capital (RBC).





Key assumptions (continued)

the key assumptions to which the estimation of actuarial liabilities is particularly sensitive are as follows:

- Mortality and morbidity rates

this is significant for contract with significant coverage for death, total permanent disability and critical illness and the increase in the mortality or morbidity would have direct impact on the liability.

- Discount rate

As the liabilities are the present value of future cash flows, both income and outgo, a decrease in discount rate would have an increasing impact on the liabilities and vice-versa.

- Surrender rate

this is only applicable to long term products, where when the rate is reduced (products with PIF) or increased (products without PIF), will impact to an increase of the liability. No impact is observed for liabilities prior to 2012.

Sensitivities

A summary of key assumptions used for sensitivity analysis is as below:

Group and Company31 December 2012

Mortality andmorbidity

ratesDiscount

ratesSurrender

rate

Endowment +10%(i) -1% -20%

Mortgage +10%(i) -1% -20%

Investment-linked +10%(i) -1% -20%

Group and Company

31 December 2011 1 January 2011


ratesDiscount

rate


ratesDiscount

rate

Endowment +10%(ii) -1% +10%(ii) -1%

Mortgage +10%(iii) -1% +10%(iii) -1%

Investment-linked +10%(ii) -1% +10%(ii) -1%

(i) 10% Industry mortality and morbidity experience tables M8388 and M9903 (ii) 10% Industry mortality and morbidity experience tables DGI96 (iii) 10% Industry mortality and morbidity experience tables M8388






Sensitivities (continued)

the analysis below is performed for reasonably possible movements in each of the key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities, and unallocated surplus. the correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear. Sensitivity information will also vary according to the current economic assumptions.

Family takaful contractsChange in

assumptions

Impact on gross

liabilities RM’000

Impact on net

liabilities RM’000

Impact on unallocated

surplus RM’000

Group

31 December 2012

Mortality/morbidity +10% 134,205 106,949 (106,949)

Discount rate -1% 130,517 120,713 (120,713)

Surrender rate -20% 14,377 11,270 (11,270)

31 December 2011


Discount rate -1% 116,131 106,152 (106,152)

1 January 2011


Discount rate -1% 95,806 85,874 (85,874)

Company

31 December 2012


Discount rate -1% 80,342 76,390 (76,390)

Surrender rate -20% 14,377 11,270 (11,270)

31 December 2011


Discount rate -1% 73,339 67,284 (67,284)

1 January 2011


Discount rate -1% 63,813 56,691 (56,691)




(b) General Takaful Fund

the General takaful contracts consist of fire, motor, personal accident, workmen’s compensation and employers’ liability, liabilities and engineering and others.

Concentration of General Takaful risk

the table below sets out the concentration of General takaful gross contribution by type of business.

GrossRM’000

RetakafulRM’000

NetRM’000

Group

1.1.2012 to 31.12.2012

Fire 120,820 (65,550) 55,270

Motor 188,568 (4,543) 184,025

Marine 12,675 (4,292) 8,383

Miscellaneous 79,374 (31,303) 48,071

Gross contributions 401,437 (105,688) 295,749

1.1.2011 to 31.12.2011

Fire 117,618 (65,949) 51,669

Motor 177,991 (5,463) 172,528

Marine 21,445 (13,426) 8,019

Miscellaneous 124,835 (70,033) 54,802


Company

1.1.2012 to 31.12.2012

Fire 103,270 (62,511) 40,759

Motor 167,616 (3,305) 164,311

Marine 10,637 (3,515) 7,122

Miscellaneous 68,024 (28,077) 39,947


1.1.2011 to 31.12.2011

Fire 99,186 (58,531) 40,655

Motor 155,794 (4,157) 151,637

Marine 17,468 (12,226) 5,242

Miscellaneous 110,868 (64,245) 46,623






(b) General Takaful Fund (continued)

Key assumptions

the key assumptions underlying the estimation of liabilities is that the Group’s and the Company’s future claims development will follow a similar pattern to past claims development experience, including average claim cost, average claim frequency, business mix for each accident year.

Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example, isolated occurrence, changes in market factors such as public attitude to claiming, economic conditions, as well as internal factors, such as, portfolio mix, underwriting policy, policy conditions and claims handling procedures.

Other key circumstances affecting the reliability of assumptions include delays in settlement and changes in foreign currency rates.

Sensitivities

the General takaful claim liabilities are sensitive to the above key assumptions and change in these assumptions may impact the liabilities and operating surplus of the General takaful Fund significantly. It has not been possible to quantify the sensitivity of certain assumptions, such as, legislative changes or uncertainty in the estimation process.

the analysis below is performed for reasonably possible movements in key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities and operating surplus. the correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear.

the key assumptions to which the estimation of actuarial liabilities is particularly sensitive are as follows: - Fire loss ratio for latest accident year

this is significant as Fire portfolio is one of the largest under general business, a change in loss ratio estimate will impact the liabilities significantly.

- Motor Act loss ratio for latest accident year

Motor Act business is long tailed in nature and need years before the claim experience matures. A significant impact may result if the ultimate experience differs from current estimation.

- Average claim cost

Reserves are based on assumption that historical average claim cost is reflective of the future experience. Increase in average cost will increase future liabilities.






- Average claim frequency

Reserves are based on assumption that historical average claim number in each accident year reflects the future experience. A change in average number of claims will impact the future liabilities.

- Average claim settlement period

Reserves are based on assumption that claim settlement period will be stable over years. A change in claim handling practice will affect the claim cost and the future liabilities.

Below shows the summary of changes in key assumptions and the impact to the gross and net claim liabilities, and the operating surplus.

Group Change in

assumptions

Impact on gross liabilities

RM’000

Impact on net liabilities

RM’000

Impact on operating

surplus RM’000

31 December 2012

Fire loss ratio for Ay 2012 +10% 15,261 5,244 (5,244)

Motor Act loss ratio for Ay 2012 +10% 2,828 2,810 (2,810)

Average claim cost +10% 56,393 29,231 (29,231)

Average claim frequency +10% 28,896 21,291 (21,291)

Average claim settlement period Increase by 6 months 11,270 7,934 (7,934)

31 December 2011






1 January 2011












CompanyChange in

assumptions

Impact on gross liabilities

RM’000

Impact on net liabilities

RM’000

Impact on operating

surplus RM’000

31 December 2012






31 December 2011






1 January 2011






Claims development table

the following tables show the estimate of cumulative incurred claims, including both claims notified and IBNR for each successive accident year at the end of reporting period, together with cumulative payments to-date.

In setting provisions for claims, the Group and the Company give consideration to the probability and magnitude of future experience being more adverse than assumed and exercise the degree of caution in setting reserves when there is considerable uncertainty. In general, the uncertainty associated with the ultimate claims experience in an accident year is greatest when the accident year is at an early stage of development and the margin necessary to provide the necessary confidence in adequacy of provision is relatively at its highest. As claims develop and the ultimate cost of claims becomes more certain, the relative level of margin maintained should decrease.





Gross General Takaful contract liabilities for 2012 (Group):

Accident year

Before2005

RM’0002006

RM’0002007

RM’0002008

RM’0002009

RM’0002010

RM’0002011

RM’0002012

RM’000Total

RM’000

At end of accident year 325,773 253,619 363,421 211,719 151,643 256,026 252,127 235,113

One year later 292,975 325,921 308,462 163,964 159,147 325,009 256,803 -

two years later 287,486 295,261 269,303 170,990 202,227 314,734 - -

three years later 285,288 303,714 261,723 194,484 186,882 - - -

Four years later 280,576 281,700 258,296 182,666 - - - -

Five years later 286,542 302,434 257,029 - - - - -

Six years later 289,289 297,670 - - - - - -

Seven years later 286,581 - - - - - - -

Current estimate of cumulative claims incurred 286,581 297,670 257,029 182,666 186,882 314,734 256,803 235,113 2,017,478

At end of accident year (279,625) (82,819) (63,455) (50,291) (71,393) (101,724) (58,326) (51,497)

One year later (220,280) (190,943) (179,619) (109,315) (132,370) (174,690) (132,258) -

two years later (244,332) (217,611) (204,297) (142,410) (146,646) (205,770) - -

three years later (254,197) (229,294) (219,658) (152,230) (153,005) - - -

Four years later (262,051) (278,594) (227,646) (156,264) - - - -

Five years later (275,634) (289,121) (233,071) - - - - -

Six years later (278,078) (290,324) - - - - - -

Seven years later (278,596) - - - - - - -

Cumulative payments to-date (278,596) (290,324) (233,071) (156,264) (153,005) (205,770) (132,258) (51,497) (1,500,785)

Gross General Takaful contract liabilities 7,985 7,346 23,958 26,402 33,877 108,964 124,545 183,616 516,693

Additional risk margin 70,463

Effect of movement in exchange rates (2,647)

Gross General Takaful contract liabilities per financial position (Note 17(a)) 584,509






Net General Takaful contract liabilities for 2012 (Group):

Accident year

Before2005

RM’0002006

RM’0002007

RM’0002008

RM’0002009

RM’0002010

RM’0002011

RM’0002012

RM’000Total

RM’000


One year later 218,365 87,371 118,800 86,706 109,700 214,389 183,927 -

two years later 221,825 85,739 117,551 92,132 115,733 203,874 - -


Four years later 217,650 87,519 115,828 96,590 - - - -

Five years later 220,968 88,504 121,362 - - - - -

Six years later 221,554 88,480 - - - - - -




One year later (173,099) (57,372) (85,148) (60,702) (79,458) (143,180) (119,794) -

two years later (189,652) (65,805) (94,843) (74,740) (92,171) (158,560) - -


Four years later (203,838) (77,566) (107,236) (87,523) - - - -

Five years later (212,309) (80,318) (114,486) - - - - -

Six years later (214,368) (81,929) - - - - - -


Cumulative payments to-date (214,809) (81,929) (114,486) (87,523) (97,214) (158,560) (119,794) (47,769) (922,084)

Net General Takaful contract liabilities 4,237 6,551 6,876 9,067 10,235 45,314 126,100 121,459 267,872


Effect of movement in exchange rates (940)

Net General Takaful contract liabilities per financial position (Note 17(a)) 302,030





Gross General Takaful contract liabilities for 2012 (Company):

Accident year

Before2005

RM’0002006

RM’0002007

RM’0002008

RM’0002009

RM’0002010

RM’0002011

RM’0002012

RM’000Total

RM’000


One year later 283,912 309,434 292,058 148,112 113,473 287,375 232,454 -

two years later 273,334 278,073 250,498 152,046 154,775 277,643 - -


Four years later 262,189 260,068 236,734 162,567 - - - -

Five years later 266,810 278,157 235,469 - - - - -

Six years later 268,790 273,431 - - - - - -




One year later (212,475) (175,243) (164,274) (94,478) (90,453) (148,043) (113,694) -

two years later (232,363) (199,717) (187,483) (127,247) (102,785) (178,214) - -


Four years later (247,804) (259,972) (209,324) (139,549) - - - -

Five years later (260,905) (269,285) (214,730) - - - - -

Six years later (262,533) (270,510) - - - - - -


Cumulative payments to-date (263,056) (270,510) (214,730) (139,549) (106,453) (178,214) (113,694) (43,107) (1,329,313)

Gross General Takaful contract liabilities 4,981 2,921 20,739 23,018 33,186 99,429 172,033 172,508 475,542


Gross General Takaful contract liabilities per financial position (Note 17(a)) 545,389






Net General Takaful contract liabilities for 2012 (Company):

Accident year

Before2005

RM’0002006

RM’0002007

RM’0002008

RM’0002009

RM’0002010

RM’0002011

RM’0002012

RM’000Total

RM’000


One year later 210,105 74,089 106,623 74,215 89,557 194,943 166,938 -

two years later 208,750 71,772 102,978 76,563 93,924 184,831 - -


Four years later 200,363 69,085 98,655 79,913 - - - -

Five years later 202,334 67,460 104,183 - - - - -

Six years later 202,156 67,482 - - - - - -




One year later (166,276) (44,872) (73,387) (49,154) (62,390) (125,883) (104,575) -

two years later (178,662) (51,119) (81,612) (62,879) (73,271) (140,510) - -


Four years later (190,595) (62,130) (92,652) (74,198) - - - -

Five years later (198,582) (63,703) (99,887) - - - - -

Six years later (199,827) (65,352) - - - - - -


Cumulative payments to-date (200,268) (65,352) (99,887) (74,198) (76,033) (140,510) (104,575) (40,054) (800,877)

Net General Takaful contract liabilities 1,264 2,130 4,296 5,715 9,712 44,321 120,046 115,647 245,448


Net General Takaful contract liabilities per financial position (Note 17(a)) 279,935



37. Financial instruments

37.1 Categories of financial instruments

the table below provides an analysis of financial instruments categorised as follows: (a) Loans and receivables (LAR); (b) Fair value through profit or loss (FVtPL) - held for trading (hFt); (c) Available-for-sale financial assets (AFS); (d) held-to-maturity financial assets (htM); and (e) Financial liabilities measured at amortised cost (FL).

TakafulOperator

RM’000



GroupRM’000

31 December 2012

Financial assets

Loans and receivables

Retakaful assets - 3,707 221,036 224,743

Loans and receivables, excluding takaful receivables 128,171 441,121 116,276 619,123

takaful receivables - 68,472 25,541 94,013

Cash and cash equivalents 102,972 288,172 61,108 452,252

231,143 801,472 423,961 1,390,131

FVTPL financial assets

Other investments 634 219,665 - 220,299


Other investments 391,994 3,012,079 565,764 3,928,857

HTM financial assets

Other investments 1,585 253,271 35,575 290,431

Financial liabilities

- Other financial liabilities measured at amortised cost

Qardh payables - 10,398 23,888 -

Provision for outstanding claims - 28,387 389,557 417,944

takaful payables - 20,501 22,625 43,126

Other payables 84,531 156,434 61,492 236,013

84,531 215,720 497,562 697,083




37. Financial instruments (continued)

37.1 Categories of financial instruments (continued)

TakafulOperator

RM’000



GroupRM’000

31 December 2011 Financial assets





Qardh receivables 277 - - -


236,488 904,792 486,104 1,601,695


Other investments - 174,392 - 174,392





Financial liabilities - Other financial liabilities measured at amortised cost




Other payables 65,997 129,119 52,624 224,357

65,997 190,250 487,105 687,773



TakafulOperator

RM’000



GroupRM’000

1 January 2011 Financial assets





Qardh receivables 1,357 - - -


263,687 757,797 484,953 1,461,255











Other payables 35,309 155,406 66,234 213,124

35,309 209,558 476,830 646,625








TakafulOperator

RM’000



CompanyRM’000

31 December 2012

Financial assets






157,204 702,069 370,183 1,175,094

FVTPL financial assetsOther investments - 113,682 - 113,682




Other investments - 241,908 32,722 274,630




Other payables 72,680 145,157 60,303 223,778

72,680 185,861 436,822 641,001





TakafulOperator

RM’000



CompanyRM’000

31 December 2011

Financial assets


Retakaful assets - 696 190,079 190,775




163,185 792,015 418,392 1,354,170







Financial liabilities- Other financial liabilities measured at amortised cost



Other payables 55,268 118,245 46,075 200,166

55,268 160,325 409,642 605,813






TakafulOperator

RM’000



CompanyRM’000

1 January 2011

Financial assets






185,688 656,754 388,033 1,193,527










Other payables 22,921 146,373 62,524 194,870

22,921 182,691 373,053 541,717




37.2 Net gains and losses arising from use of financial instruments

Note

TakafulOperator

RM’000



GroupRM’000

1.1.2012 to 31.12.2012

Net gains/(losses) arising on:


- recognised in profit or loss - 20,846 - 20,846


- recognised in other comprehensive income 7(d) 3,844 - - 3,844

- recognised in participants’ fund 17(c) - (13,384) 1,084 (12,300)

- recognised in profit or loss 21,572 225,834 35,900 283,306

25,416 212,450 36,984 274,850

htM financial assets 466 10,838 1,416 12,720

LAR 3,022 23,491 8,225 38,280

28,904 267,625 46,625 346,696

1.1.2011 to 31.12.2011





- recognised in other comprehensive income 7(d) (3,580) - - (3,580)

- recognised in participants’ fund 17(c) - 5,370 (9,285) (3,915)


10,285 197,409 26,211 233,896

htM financial assets 29 7,201 977 8,207

LAR 7,460 28,816 28,199 66,522

17,774 233,426 55,387 308,625





37.2 Net gains and losses arising from use of financial instruments (continued)

Note

TakafulOperator

RM’000



CompanyRM’000

1.1.2012 to 31.12.2012





- recognised in other comprehensive income 7(d) 3,754 - - 3,754

- recognised in participants’ fund 17(c) - (12,938) 1,021 (11,917)


24,707 203,676 36,771 265,154


LAR 4,300 19,215 7,542 31,057

29,007 242,456 45,548 317,011

1.1.2011 to 31.12.2011





- recognised in other comprehensive income 7(d) (3,444) - - (3,444)

- recognised in participants’ fund 17(c) - 8,118 (9,218) (1,100)


9,248 191,185 26,032 226,465

htM financial assets 29 7,201 977 8,207

LAR 6,477 24,238 24,138 54,853

15,754 229,757 51,147 296,658




37.3 Financial risk management

the Group and the Company have exposure to the following risks arising from its use of financial instruments:

- Credit risk- Liquidity risk- Market risk (currency risk, profit rate risk, price risk)- Operational risk

37.4 Credit risk

Credit risk is the potential financial loss resulting from the failure of a customer, an intermediary or counterparty to settle its financial and contractual obligations to the Group and the Company as and when they fall due.

the Group’s and the Company’s portfolio of Islamic debt securities, and to a lesser extent short-term and other investments, are subject to credit risk. this risk is defined as the potential loss resulting from adverse changes in a borrower’s ability to repay the debt. the Group’s and the Company’s objective is to earn competitive relative returns by investing in a diversified portfolio of securities. Management has an investment credit risk policy in place. Limits are established to manage credit quality and concentration risk.

the Group and the Company have takaful and other receivables balances that are subject to credit risk. Among the most significant of these are retakaful recoveries. to mitigate the risk of the counterparties not paying the amount due, the Group and the Company have established certain business and financial guidelines for retakaful approval, incorporating ratings by major agencies and considering currently available market information. the Group and the Company also periodically review the financial stability of retakaful companies from public and other sources and the settlement trend of amounts due from retakaful companies.

Cash and deposits are generally placed with banks and financial institutions licensed under the Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 which are regulated by Bank Negara Malaysia.

the Group and the Company manage individual exposures as well as concentration of credit risks. At end of the reporting period, there were no significant concentration of credit risks, other than investments in Islamic debts securities issued by single issuer amounted to RM296,001,250 (2011: RM118,169,600).





37.4 Credit risk (continued)

Credit exposure

the table below shows the maximum exposure to credit risk for the components recognised in the statements of financial position.

TakafulOperator

RM’000



GroupRM’000

31 December 2012


Islamic debt securities 200,588 1,768,168 337,051 2,305,807



Islamic debt securities 634 58,340 - 58,974


Islamic debt securities 1,585 140,490 2,853 144,928


LAR





454,105 3,431,639 890,503 4,709,802



TakafulOperator

RM’000



GroupRM’000

31 December 2011





Islamic debt securities - 23,517 - 23,517




LAR




Qardh receivables 277 - - -


362,303 3,194,397 897,041 4,428,052



Credit exposure (continued)






TakafulOperator

RM’000



GroupRM’000

1 January 2011









LAR




Qardh receivables 1,357 - - -


309,910 2,997,830 865,050 4,127,608



TakafulOperator

RM’000



CompanyRM’000

31 December 2012









LAR





376,935 3,267,195 833,872 4,423,640








TakafulOperator

RM’000



CompanyRM’000

31 December 2011









LAR





281,982 3,015,070 827,599 4,105,229

1 January 2011









LAR





228,995 2,830,693 766,415 3,789,155





Credit exposure by credit rating

the table below provides information regarding the credit risk exposure of the Group and the Company by classifying assets according to the Group’s and the Company’s internal credit ratings of counterparties.

Group

Neither past-due

nor impaired RM’000

Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2012

Takaful Operator


Islamic debt securities 200,588 - - 200,588

Malaysian Government Islamic papers 20,155 - - 20,155


Islamic debt securities 634 - - 634


Islamic debt securities 951 634 - 1,585

LAR

Loans and receivables, excluding takaful receivables 128,171 - 1,253 129,424

Qardh receivables - - 34,286 34,286

Cash and cash equivalents 102,972 - - 102,972

453,471 634 35,539 489,644




Group

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2012Family Takaful


Islamic debt securities 1,768,168 - - 1,768,168







LAR

Retakaful assets 3,707 - - 3,707

Loans and receivables, excluding takaful receivables 441,121 - 301 441,422

takaful receivables 61,098 7,374 3,901 72,373


3,424,265 7,374 4,202 3,435,841



Credit exposure by credit rating (continued)






Group

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2012

General Takaful






LAR





881,272 9,231 7,363 897,866

Group







Islamic debt securities 144,294 634 - 144,928


LAR





4,692,563 17,239 12,818 4,722,620







Group

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2011

Takaful Operator






LAR


Qardh receivables 277 - 31,919 32,196


362,303 - 34,021 396,324

Family Takaful









LAR





3,185,176 9,221 6,511 3,200,908






Group

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2011

General Takaful







LAR





887,495 9,546 10,546 907,587

Group









LAR





4,409,285 18,767 19,159 4,447,211







Group

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

1 January 2011

Takaful Operator





LAR


Qardh receivables 1,357 - 29,890 31,247


309,910 - 32,813 342,723

Family Takaful Fund









LAR



takaful receivables 42,708 949 9,434 53,091


2,996,881 949 12,420 3,010,250






Group

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

1 January 2011

General Takaful







LAR





863,917 1,133 29,785 894,835

Group









LAR





4,125,526 2,082 45,128 4,172,736







Company

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2012

Takaful Operator




LAR



376,935 - 1,253 378,188

Family Takaful









LAR





3,260,185 7,010 4,151 3,271,346






Company

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2012

General Takaful






LAR





827,783 6,089 7,282 841,154

Company









LAR





4,410,541 13,099 12,686 4,436,326







Company

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2011

Takaful Operator




LAR



281,982 - 1,823 283,805

Family Takaful









LAR

Retakaful assets 696 - - 696




3,008,242 6,828 6,385 3,021,455






Company

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

31 December 2011

General Takaful






LAR





823,267 4,332 10,468 838,067

Company









LAR





4,094,069 11,160 18,676 4,123,905







Company

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

1 January 2011

Takaful Operator



LAR



228,995 - 2,644 231,639

Family Takaful









LAR

Retakaful assets 266 - - 266


takaful receivables 34,343 949 7,976 43,268


2,829,744 949 10,962 2,841,655






Company

Neither past-due


Past-due but not

impaired RM’000

Impaired RM’000

Total RM’000

1 January 2011

General Takaful






LAR





765,282 1,133 26,113 792,528

Company









LAR





3,787,073 2,082 39,719 3,828,874






Credit exposure by credit rating (continued) the table below provides information regarding the credit risk exposure of the Group and of the Company by classifying assets

according to the Rating Agency of Malaysia’s (RAM) credit ratings of counterparties. AAA is the highest possible rating. Assets that fall outside the range of AAA to A are classified as speculative grade.

Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000

Unit-linked RM’000

Total RM’000

31 December 2012

Takaful OperatorAFS financial assets

Islamic debt securities 64,654 134,922 - 1,012 - 200,588

Malaysian Government Islamic papers - - - 20,155* - 20,155


Islamic debt securities - - - 634 - 634


Islamic debt securities - - - 1,585 - 1,585

LAR

Loans and receivables, excluding takaful receivables - 25,767 8,611 93,793 - 128,171

Cash and cash equivalents 11,837 35,380 29,550 26,205 - 102,972

76,491 196,069 38,161 143,384 - 454,105

* Malaysian Government Islamic papers are not rated by RAM but instead is rated A- based on Malaysia sovereign rating accorded by Standard & Poor.






Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

Family TakafulAFS financial assets

Islamic debt securities 649,657 820,169 12,437 285,905 - 1,768,168



Islamic debt securities - - - - 58,340 58,340


Islamic debt securities - - 48,501 91,989 - 140,490


LAR

Retakaful assets - - - 3,707 - 3,707

Loans and receivables, excluding takaful receivables 700 42,270 76,468 320,589 1,094 441,121

takaful receivables - 11 324 68,137 - 68,472

Cash and cash equivalents 78,279 52,360 30,246 112,041 15,246 288,172

728,636 919,810 167,976 1,545,537 74,680 3,431,639








Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

General Takaful


Islamic debt securities 104,412 193,123 1,777 37,739 - 337,051





LAR



takaful receivables - 206 1,014 24,321 - 25,541


114,018 223,228 43,627 509,630 - 890,503







Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

GroupAFS financial assets

Islamic debt securities 818,723 1,148,214 14,214 324,656 - 2,305,807



Islamic debt securities - - - 634 58,340 58,974




LAR





919,145 1,334,107 249,764 2,132,106 74,680 4,709,802








Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

Takaful Operator






LAR


Qardh receivables - - - 277 - 277


26,349 120,056 68,199 147,699 - 362,303







Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

Family Takaful







Islamic debt securities 48,423 - - 109,665 - 158,088


LAR


Loans and receivables, excluding takaful receivables 14,393 80,232 228,314 240,275 455 563,669

takaful receivables - - - 61,487 865 62,352


666,063 897,899 259,461 1,334,464 36,510 3,194,397








Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

General Takaful







LAR


Loans and receivables, excluding takaful receivables 4,701 24,103 98,840 47,854 - 175,498

takaful receivables - - - 47,462 - 47,462


122,628 190,035 106,825 477,553 - 897,041







Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

Group









LAR





815,040 1,207,990 434,485 1,934,027 36,510 4,428,052







Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

Takaful Operator


Islamic debt securities 20,140 23,167 - - - 43,307



LAR


Qardh receivables - - - 1,357 - 1,357

Cash and cash equivalents 640 6,922 10,090 57,350 - 75,002

20,780 90,206 59,305 139,619 - 309,910






Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

Family TakafulAFS financial assets








LAR


Loans and receivables, excluding takaful receivables 24,714 78,992 155,860 204,097 4,719 468,382



520,343 923,613 270,100 1,245,723 38,051 2,997,830








Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

General Takaful







LAR





105,000 180,453 81,200 498,397 - 865,050







Group

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

Group









LAR





646,123 1,194,272 410,605 1,838,557 38,051 4,127,608








Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

Takaful Operator




LAR


Cash and cash equivalents 11,829 35,137 2,004 47 - 49,017

76,483 195,826 10,615 94,011 - 376,935







Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

Family Takaful









LAR



takaful receivables - 11 324 62,558 - 62,893


728,627 914,551 157,529 1,1441,909 24,579 3,267,195








Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

General Takaful






LAR





114,016 223,198 34,888 461,770 - 833,872







Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2012

Company


Islamic debt securities 818,723 1,148,214 14,214 314,039 - 2,295,190







LAR





919,126 1,333,575 203,032 1,943,328 24,579 4,423,640








Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011




LAR


Cash and cash equivalents 6,529 18,828 2,405 49 - 27,811

26,349 120,056 68,199 67,378 - 281,982







Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

Family Takaful









LAR

Retakaful assets - - - 696 - 696




666,063 897,899 259,461 1,166,957 24,690 3,015,070








Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

General Takaful






LAR




Cash and cash equivalents 8,227 18,492 6,022 - - 32,741

122,628 190,035 106,825 408,111 - 827,599







Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

31 December 2011

Company









LAR





815,040 1,207,990 434,485 1,623,024 24,690 4,105,229








Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011



LAR


Cash and cash equivalents 640 6,922 10,090 10,050 - 27,702

20,780 90,206 59,305 58,704 - 228,995






Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

Family Takaful









LAR

Retakaful assets - - - 266 - 266




520,343 923,613 270,100 1,088,827 27,810 2,830,693








Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

General Takaful






LAR





105,000 180,453 81,200 399,762 - 766,415







Company

AAA RM’000

AA RM’000

A RM’000

Not-rated RM’000


Total RM’000

1 January 2011

Company









LAR





646,123 1,194,272 410,605 1,510,345 27,810 3,789,155







Age analysis of takaful receivables past-due but not impaired

A financial asset is deemed past-due when the counterparty has failed to make payment even though the outstanding amount is contractually due. Receivables past-due but not impaired includes contribution due and claims recovery from retakaful which remained outstanding after the contractual due date for more than 6 months.

the age analysis of takaful receivables past-due but not impaired as at the end of the reporting period based on days past-due was as follows:



GroupRM’000



CompanyRM’000

31 December 2012

Days past-due

1-30 days 2,031 310 2,341 1,775 167 1,942

31-60 days 989 316 1,305 974 308 1,282

61-90 days 497 256 753 475 226 701

91-180 days 1,358 2,365 3,723 1,324 2,214 3,538

> 180 days 2,499 5,984 8,483 2,462 3,174 5,636

7,374 9,231 16,605 7,010 6,089 13,099

31 December 2011

Days past-due

1-30 days 1,198 293 1,491 1,078 249 1,327

31-60 days 982 470 1,452 826 470 1,296

61-90 days 893 209 1,102 878 186 1,064

91-180 days 913 1,229 2,142 886 1,137 2,023

> 180 days 5,235 7,345 12,580 3,160 2,290 5,450

9,221 9,546 18,767 6,828 4,332 11,160

1 January 2011

Days past-due

1-30 days 34 417 451 34 417 451

31-60 days 121 - 121 121 - 121

61-90 days 85 - 85 85 - 85

91-180 days 88 - 88 88 - 88

> 180 days 621 716 1,337 621 716 1,337

949 1,133 2,082 949 1,133 2,082





Impairment loss of takaful receivables

the Group and the Company assess impairment on an individual and collective basis. the Group and the Company will assess on a case by case basis, on whether there is any objective evidence that the outstanding due is impaired for contribution due and claims recovery that are considered individually significant. the criteria that the Group and the Company use to determine whether there is objective evidence of impairment for those selected for individual assessment include:

(i) contribution due or claims recovery past-due for 6 months or more and where outstanding receivables is above 2% of total takaful receivables and RM200,000 for Family and General takaful receivables respectively;

(ii) significant financial difficulty of customer/intermediaries;

(iii) long outstanding balances where these are disputed and not resolved; and

(iv) breach of contract, such as default or deliquency in payments.

the Group and the Company record impairment allowance for loans and receivables and takaful receivables in separate “ Allowance for Impairment” accounts. unless the Group and the Company are satisfied that recovery of the amount is possible, the amount considered irrecoverable is written off against the receivables directly.

A reconciliation of the allowance for impairment losses for takaful receivables was as follows:

Note



GroupRM’000

At 1 January 2011 11 9,434 26,719 36,153

Writeback of impairment loss 26 (3,867) (17,197) (21,064)

At 31 December 2011/1 January 2012 11 5,567 9,522 15,089


At 31 December 2012 11 3,901 6,982 10,883






Impairment loss of takaful receivables (continued)

Note



CompanyRM’000

At 1 January 2011 11 7,976 23,047 31,023

Writeback of Impairment loss 26 (2,535) (13,603) (16,138)

At 31 December 2011/1 January 2012 11 5,441 9,444 14,885


At 31 December 2012 11 3,850 6,901 10,751

37.5 Liquidity risk

Liquidity risk is the risk that the Group and the Company will encounter difficulty in meeting obligations associated with financial instruments. In respect of catastrophic events, there is also a liquidity risk associated with the timing differences between gross cash outflows and expected retakaful recoveries.

the following policies and procedures are in place to mitigate the Group’s and the Company’s exposure to liquidity risk

- the Group and the Company-wide liquidity risk policy setting out the evaluation and determination of the components of liquidity risk of the Group and the Company. Compliance with the policy is monitored and reported monthly and exposures and breaches are reported to the Group’s and the Company’s Risk Management Committee as soon as practicable. the policy is regularly reviewed or pertinence and for changes in the risk environment.

- Setting up guidelines on asset allocations, portfolio limit structures and maturity profiles of assets, in order to ensure sufficient funding is available to meet takaful and investment contracts obligations.

- Setting up contingency funding plans which specify minimum proportions of funds to meet emergency calls as well as specifying events that would trigger such plans.

- the Company’s catastrophe excess of loss retakaful contracts contains clauses permitting the immediate draw down of funds to meet claims payments should claims events exceed certain amount.




37.5 Liquidity risk (continued)

Maturity profiles

the table below summarises the maturity profile of the financial liabilities of the Group and of the Company based on remaining undiscounted contractual obligations, including profit payable.

For takaful contract liabilities, maturity profiles are determined based on estimated timing of net cash outflows from the recognised takaful liabilities. Investment-linked liabilities are repayable or transferable on demand and are included in the “up to a year” column.

Group

Carryingvalue

RM’000

Up toa year*

RM’000

1-3years

RM’000

3-5years

RM’000

More than 5 yearsRM’000

NoMaturity

RM’000Total

RM’000

31 December 2012

Takaful Operator

Other payables 84,531 77,771 774 46 5,940 - 84,531

Family Takaful

Qardh payables 10,398 10,398 - - - - 10,398

Provision for outstanding claims 28,387 27,829 418 140 - - 28,387

takaful payables 20,501 20,501 - - - - 20,501

Other payables 156,434 144,711 2,010 24 24 9,665 156,434

215,720 203,439 2,428 164 24 9,665 215,720

General Takaful

Qardh payables 23,888 23,888 - - - - 23,888

Provision for outstanding claims 389,557 130,898 180,980 54,543 23,136 - 389,557

takaful payables 22,625 20,922 1,703 - - - 22,625

Other payables 61,492 61,298 181 13 - - 61,492

497,562 237,006 182,864 54,556 23,136 - 497,562

Group



Other payables 236,013 217,965 2,965 83 5,964 9,036 236,013

697,083 418,115 186,066 54,766 29,100 9,036 697,083

* expected utilisation or settlement is within 12 months from the reporting date.






Maturity profiles (continued)

Group

Carryingvalue

RM’000

Up toa year*

RM’000

1-3years

RM’000

3-5years

RM’000


NoMaturity

RM’000Total

RM’000

31 December 2011

Takaful Operator

Other payables 65,997 31,871 26,848 53 7,070 155 65,997

Family Takaful

Qardh payables 11,398 11,398 - - - - 11,398

Provision for outstanding claims 30,237 30,237 - - - - 30,237


Other payables 129,119 126,689 1,173 132 - 1,125 129,119

190,250 186,769 2,224 132 - 1,125 190,250

General Takaful

Qardh payables 20,798 20,798 - - - - 20,798



Other payables 52,624 49,167 1,797 623 1,037 - 52,624

487,105 274,172 136,451 55,251 21,231 - 487,105

Group



Other payables 224,357 184,344 29,818 808 8,107 1,280 224,357

687,773 437,233 165,523 55,436 28,301 1,280 687,773

* expected utilisation or settlement is within 12 months from the reporting date.






Group

Carryingvalue

RM’000

Up toa year*

RM’000

1-3years

RM’000

3-5years

RM’000


NoMaturity

RM’000Total

RM’000

1 January 2011

Takaful Operator

Other payables 35,309 27,551 862 96 6,729 71 35,309

Family Takaful

Qardh payables 12,173 12,173 - - - - 12,173

Provision for outstanding claims 26,762 25,695 374 298 395 - 26,762


Other payables 155,406 152,983 1,908 - - 515 155,406

209,558 206,068 2,282 298 395 515 209,558

General Takaful

Qardh payables 19,074 19,074 - - - - 19,074



Other payables 66,234 66,040 181 13 - - 66,234

476,830 287,666 122,137 47,732 19,295 - 476,830

Group



Other payables 213,124 202,749 2,951 109 6,729 586 213,124

646,625 446,213 125,281 48,126 26,419 586 646,625 * expected utilisation or settlement is within 12 months from the reporting date.







Company

Carryingvalue

RM’000

Up toa year*

RM’000

1-3years

RM’000

3-5years

RM’000


NoMaturity

RM’000Total

RM’000

31 December 2012

Takaful Operator

Other payables 72,680 72,386 294 - - - 72,680

Family Takaful



Other payables 145,157 143,099 2,010 24 24 - 145,157

185,861 183,803 2,010 24 24 - 185,861

General Takaful



Other payables 60,303 60,109 181 13 - - 60,303

436,822 186,516 172,614 54,556 23,136 - 436,822

Company



Other payables 223,778 221,232 2,485 37 24 - 223,778

641,001 388,343 174,918 54,580 23,160 - 641,001 * expected utilisation or settlement is within 12 months from the reporting date.






Company

Carryingvalue

RM’000

Up toa year*

RM’000

1-3years

RM’000

3-5years

RM’000


NoMaturity

RM’000Total

RM’000

31 December 2011

Takaful Operator

Other payables 55,268 28,966 26,302 - - - 55,268

Family Takaful



Other payables 118,245 116,940 1,173 132 - - 118,245

160,325 157,969 2,224 132 - - 160,325

General Takaful



Other payables 46,075 45,841 234 - - - 46,075

409,642 205,963 128,857 54,628 20,194 - 409,642

Company



Other payables 200,166 172,325 27,709 132 - - 200,166








Company

Carryingvalue

RM’000

Up toa year*

RM’000

1-3years

RM’000

3-5years

RM’000


NoMaturity

RM’000Total

RM’000

1 January 2011

Takaful Operator

Other payables 22,921 22,643 278 - - - 22,921

Family Takaful



Other payables 146,373 144,465 1,908 - - - 146,373

182,691 180,783 1,908 - - - 182,691

General Takaful



Other payables 62,524 62,330 181 13 - - 62,524

373,053 214,289 91,737 47,732 19,295 - 373,053

Company



Other payables 194,870 192,490 2,367 13 - - 194,870





37.6 Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Market risk comprises three (3) types of risk - foreign exchange rates (Currency risk), market profit yields (Profit yield risk) and market prices (Price risk).

the key features of the Group’s and the Company’s market risk management practices and policies are as follows:

- A Group and the Company-wide market risk policy setting out the evaluation and determination of components of market risk for the Group and the Company. Compliance with the policy is monitored and reported monthly to the Risk Management Committee (RMC) and exposures and breaches are reported as soon as practicable.

- Set asset allocation, portfolio limit structure and diversification benchmark to ensure that assets back specific contract liabilities and that assets are held to deliver income and gains for certificate holders in line with terms of the respective contracts expectations of policies. the Group’s and the Company’s policies on asset allocation, portfolio limit structure and diversification benchmark have been set in line with Group’s and Company’s risk management policy after taking cognisance of the regulatory requirements in respect of maintenance of assets and solvency.

the Group and the Company also issue unit-linked investment policies. In the unit-linked business, the certificate holders bear investment risk on the assets held in the unit-linked funds as the certficate benefits are directly linked to value of the assets in the funds. the Group’s and Company’s exposure to market risk on this business is limited to the extent that income arising from asset management charges is based on the value of the assets in the funds.

37.7 Currency risk

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

the Group’s and the Company’s primary transactions are carried out in Ringgit Malaysia (RM) and its exposure to foreign exchange risk arises principally with respect to Indonesia Rupiah (RP) and uS Dollar (uSD).

As the Group’s and Company’s business is conducted primarily in Malaysia, the Group’s and the Company’s financial assets are also primarily maintained in Malaysia as required under the takaful Act, 1984, and hence, primarily denominated in the same currency (the local RM) as its takaful and investment contract liabilities. Accordingly, the main foreign exchange risk from recognised assets and liabilities arises from transactions other than those in which takaful and investment contract liabilities are expected to be settled.

As the Group’s and the Company’s main foreign exchange risk from recognised assets and liabilities arises from retakaful transactions for which the balances are expected to be settled and realised in less than a year, the impact arising from sensitivity in foreign exchange rates is deemed minimal as the Group and the Company has no significant concentration of foreign currency risk.

the Group’s and the Company’s exposure to currency risk is immaterial in the context of the financial statements and hence, sensitivity analysis is not presented.





37.8 Profit yield risk Profit yield risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market profit

yield.

Floating rate/yield instruments expose the Group and the Company to cash flow risk, whereas fixed rate/yield instruments expose the Group and the Company to fair value risk.

Risk management objectives, policies and processes for managing the risk

the Group’s and the Company’s profit risk policy requires Management to manage the risk by maintaining an appropriate mix of variable and fixed rate/yield instruments. the policy also requires Management to manage the maturities of profit-bearing financial assets and liabilities. Floating rate/yield instruments will be re-priced at intervals of not more than one (1) year. Profit on fixed rate/yield instruments is priced at inception of the financial instrument and is fixed until maturity.

Exposure to profit yield risk

the profit yield profile of the Group’s and the Company’s significant profit-bearing financial instruments, based on carrying amounts as at the end of the reporting period was as follows:

Takaful Operator

RM’000



GroupRM’000

Fixed rate instruments

31 December 2012

AFS financial assets 220,743 2,318,556 430,967 2,970,266

FVtPL financial assets 634 58,340 - 58,974


LAR 157,914 632,130 137,110 927,154

380,876 3,262,297 603,652 4,246,825

31 December 2011


FVtPL financial assets - 23,517 - 23,517


LAR 197,444 778,239 203,542 1,179,225

323,259 3,067,844 614,479 4,005,582

1 January 2011




LAR 214,332 650,543 181,359 1,046,234

260,555 2,890,576 561,456 3,712,587




37.8 Profit yield risk (continued)

Exposure to profit yield risk (continued)

Takaful Operator

RM’000



CompanyRM’000

Fixed rate instruments

31 December 2012




LAR 98,630 544,991 115,158 758,779

318,361 3,110,117 578,847 4,007,325

31 December 2011




LAR 136,402 683,311 181,294 1,001,007

255,199 2,906,366 590,501 3,752,066

1 January 2011




LAR 150,131 564,124 163,868 878,123

193,438 2,738,063 542,250 3,473,751

the Group and the Company have no significant concentration of profit yield risk. A change of 50 basis points in profit rates at the end of the reporting period would have increased/(decreased) other comprehensive

income/equity, Family and General takaful participant’s fund by the amounts shown below. this analysis assumes that all other variables remain constant.







Group Company

Takaful OperatorChange invariables

Impact onprofit

before taxRM’000

Impact onequity*RM’000

Impact onprofit

before taxRM’000


31 December 2012

AFS financial assets +50bps - (5,218) - (5,219)

AFS financial assets -50bps - 5,284 - 5,285

31 December 2011



1 January 2011

AFS financial assets +50bps - (491) - (491)

AFS financial assets -50bps - 502 - 502

Group Company

Family TakafulChange invariables

Impact onoperating

surplusRM’000

Impact onparticipants’

fundRM’000

Impact onoperating

surplusRM’000


fundRM’000

31 December 2012


FVtPL financial assets +50bps (217) (217) (217) (217)

(217) (81,652) (217) (81,700)


FVtPL financial assets -50bps 223 223 223 223

223 92,676 223 92,724






Group Company

Change invariables

Impact onoperating

surplusRM’000


fundRM’000

Impact onoperating

surplusRM’000


fundRM’000

Family Takaful31 December 2011



(285) (65,062) (247) (64,748)



290 70,341 252 70,027

1 January 2011



(235) (57,106) (235) (57,295)



240 61,947 240 62,136







Group Company

Change invariables

Impact onoperating

surplusRM’000


fundRM’000

Impact onoperating

surplusRM’000


fundRM’000

General Takaful31 December 2012



31 December 2011



1 January 2011








Group

Change invariables

Impact onprofit

before taxRM’000


Impact onoperating

surplusRM’000


fundRM’000

Group

31 December 2012


FVtPL financial assets +50bps - - (217) (217)

- (5,218) (217) (93,512)


FVtPL financial assets -50bps - - 223 223

- 5,284 223 104,978

31 December 2011



- (1,580) (285) (73,319)



- 2,347 290 78,824

1 January 2011

AFS financial assets +50bps - (491) - (65,538)


- (491) (235) (65,773)

AFS financial assets -50bps - 502 - 70,656


- 502 240 70,896 * impact on Equity reflects adjustments for tax, when applicable.







Company

Change invariables

Impact onprofit

before taxRM’000


Impact onoperating

surplusRM’000


fundRM’000

Company

31 December 2012



- (5,219) (217) (93,560)



- 5,285 223 105,026

31 December 2011



- (1,551) (247) (73,005)



- 2,318 252 78,510

1 January 2011

AFS financial assets +50bps - (491) - (65,727)


- (491) (235) (65,962)

AFS financial assets -50bps - 502 - 70,845


- 502 240 71,085 * impact on Equity reflects adjustments for tax, when applicable.

the Group and the Company have no significant concentration of profit yield risk.




37.9 Other price risk Equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market

prices (other than those arising from profit yield risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or factors affecting similar financial instruments traded in the market.

the Group’s and the Company’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices (excluding those investment securities held for the account of unit-linked business).

Risk management objectives, policies and processes for managing the risk

the Group’s and the Company’s price risk policy requires it to manage such risks by setting and monitoring objectives and constraints on investments, diversification plans, limits on investments in each country, sector, market and issuer, having regard also to such limits stipulated by BNM. the Group and the Company comply with BNM stipulated limits during the financial year and has no significant concentration of price risk.

Equity price risk sensitivity analysis

the analysis below is performed for reasonably possible movements in key variables with all other variables held constant, showing the impact on OCI/Equity for takaful Operator, and showing the impact on operating surplus/participants’ fund for Investment-linked Fund, and participants’ fund for Family takaful Fund and General takaful Fund accordingly. the correlation of variables will have a significant effect in determining the ultimate impact on price risk, but to demonstrate the impact due to changes in variables, variables had to be changed on individual basis. It should be noted that movements in these variables are non-linear.

Group Company

Change invariables

Impact onprofit

before taxRM’000


Impact onprofit

before taxRM’000


Takaful Operator31 December 2012

Market price +15% - 12,578 - 11,568

Market price -15% - (12,578) - (11,568)

31 December 2011

Market price +15% - 10,732 - 9,869

Market price -15% - (10,732) - (9,869)

1 January 2011

Market price +15% - 14,377 - 13,465

Market price -15% - (14,377) - (13,465)

* impact on Equity reflects adjustments for tax, when applicable.





37.9 Other price risk (continued)

Equity price risk sensitivity analysis (continued)

Group Company

Change invariables

Impact onoperating

surplusRM’000


fundRM’000

Impact onoperating

surplusRM’000


fundRM’000

Family Takaful31 December 2012

Market price +15% 15,249 91,178 5,963 69,900

Market price -15% (15,249) (91,178) (5,963) (69,900)

31 December 2011

Market price +15% 13,045 70,739 4,462 54,769

Market price -15% (13,045) (70,739) (4,462) (54,769)

1 January 2011

Market price +15% 12,503 84,851 3,972 72,435

Market price -15% (12,503) (84,851) (3,972) (72,435)

General Takaful

31 December 2012

Market price +15% - 14,763 - 14,414

Market price -15% - (14,763) - (14,414)

31 December 2011

Market price +15% - 9,521 - 9,369

Market price -15% - (9,521) - (9,369)

1 January 2011

Market price +15% - 14,104 - 13,954

Market price -15% - (14,104) - (13,954)



Group

Change invariables

Impact onprofit

before taxRM’000


Impact onoperating

surplusRM’000


fundRM’000

Group31 December 2012

Market price +15% - 7,967 15,249 105,941

Market price -15% - (7,967) (15,249) (105,941)

31 December 2011

Market price +15% - 6,432 13,045 80,259

Market price -15% - (6,432) (13,045) (80,259)

1 January 2011

Market price +15% - 10,230 12,503 98,955

Market price -15% - (10,230) (12,503) (98,955)


37.9 Other price risk (continued) Equity price risk sensitivity analysis (continued)






37.9 Other price risk (continued) Equity price risk sensitivity analysis (continued)

Company

Change invariables

Impact onprofit

before taxRM’000


Impact onoperating

surplusRM’000


fundRM’000

Company31 December 2012

Market price +15% - 6,958 5,963 84,315

Market price -15% - (6,958) (5,963) (84,315)

31 December 2011

Market price +15% - 5,569 4,462 64,138

Market price -15% - (5,569) (4,462) (64,138)

1 January 2011

Market price +15% - 9,318 3,972 86,389

Market price -15% - (9,318) (3,972) (86,389)





37.10 Fair value of financial instruments

the carrying amounts of cash and cash equivalents, short-term receivables and payables approximate fair value due to the relatively short-term nature of these financial instruments. It was not practicable to estimate the fair value of the Group’s investment in unquoted shares due to the lack of comparable quoted market prices and the inability to estimate fair value without incurring excessive costs. Please refer to respective note for the fair values of other financial assets and liabilities, together with the carrying amounts shown in the statements of financial position.

37.11 Fair value hierarchy

the table below analyses those financial instruments carried at fair value by their valuation method. the different levels have been defined as follows:

• Level1:Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities. • Level2:InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.as

prices) or indirectly (i.e. derived from prices). • Level3:Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

Group

31 December 2012 Level 1 RM’000

Level 2 RM’000

Level 3 RM’000

Total RM’000

Takaful Operator


Equity securities 37,004 - 423 37,427

unit trusts 31,574 - 61,270 92,844

Islamic debts securities - 200,588 - 200,588

Investment in linked funds 40,980 - - 40,980

Malaysian Government Islamic papers - 20,155 - 20,155

109,558 220,743 61,693 391,994


Islamic debts securities - 634 - 634

109,558 221,377 61,693 392,628




Group


Level 2 RM’000

Level 3 RM’000

Total RM’000

Family Takaful Fund


Equity securities 394,347 - - 394,347

unit trusts 111,844 - 187,332 299,176

Islamic debts securities - 1,768,168 - 1,768,168


506,191 2,318,556 187,332 3,012,079



Investment units in commodity, equity and fixed income closed end fund - - 59,662 59,662

unit trusts 29,580 - - 29,580


101,663 58,340 59,662 219,665

607,854 2,376,896 246,994 3,231,744


37.11 Fair value hierarchy (continued)





Group


Level 2 RM’000

Level 3 RM’000

Total RM’000

General Takaful Fund



unit trusts 13,257 - 36,379 49,636



98,418 430,967 36,379 565,764

Group



unit trusts 156,675 - 284,981 441,656



673,187 2,970,266 285,404 3,928,857




unit trusts 29,580 - - 29,580


101,663 58,974 59,662 220,299

774,850 3,029,240 345,066 4,149,156




Group


Level 2 RM’000

Level 3 RM’000

Total RM’000

Takaful Operator



unit trusts 18,148 - 48,726 66,874




93,477 121,663 49,153 264,293

Family Takaful Fund



unit trusts 67,556 - 174,649 242,205



384,622 1,995,157 174,649 2,554,428




unit trusts 25,971 - - 25,971


86,969 23,517 63,906 174,392

471,591 2,018,674 238,555 2,728,820







Group


Level 2 RM’000

Level 3 RM’000

Total RM’000




unit trusts 6,061 - 33,711 39,772



63,471 376,441 33,711 473,623

Group



unit trusts 91,765 - 257,086 348,851



503,348 2,493,261 257,513 3,254,122




unit trusts 25,971 - - 25,971


86,969 23,517 63,906 174,392

590,317 2,516,778 321,419 3,428,514






Group

1 January 2011 Level 1 RM’000

Level 2 RM’000

Level 3 RM’000

Total RM’000

Takaful Operator



unit trusts 17,728 - 32,164 49,892



93,605 43,307 32,590 169,502

Family Takaful Fund



unit trusts 44,322 - 145,594 189,916



336,727 1,959,796 145,729 2,442,252




unit trusts 56,868 - - 56,868


83,351 21,571 79,649 184,571

420,078 1,981,367 225,378 2,626,823




unit trusts 6,620 - 28,266 34,886



65,763 345,573 28,355 439,691





Group


Level 2 RM’000

Level 3 RM’000

Total RM’000

Group



unit trusts 68,670 - 206,024 274,694



459,235 2,348,676 206,674 3,014,585




unit trusts 56,868 - - 56,868


83,351 21,571 79,649 184,571

542,586 2,370,247 286,323 3,199,156




Company


Level 2 RM’000

Level 3 RM’000

Total RM’000

Takaful Operator



unit trusts 24,844 - 61,270 86,114




102,828 219,731 61,650 384,209

Family Takaful Fund



unit trusts 31,955 - 187,332 219,287



426,250 2,308,951 187,332 2,922,533





39,753 14,267 59,662 113,682

466,003 2,323,218 246,994 3,036,215







Company


Level 2 RM’000

Level 3 RM’000

Total RM’000




unit trusts 10,935 - 36,379 47,314



96,096 430,967 36,379 563,442

Company



unit trusts 67,734 - 284,981 352,715



584,194 2,959,649 285,361 3,829,204





39,753 14,267 59,662 113,682

623,947 2,973,916 345,023 3,942,886






Company


Level 2 RM’000

Level 3 RM’000

Total RM’000

Takaful Operator



unit trusts 12,934 - 48,726 61,660




87,728 118,797 49,106 255,631

Family Takaful Fund



unit trusts 18,730 - 174,649 193,379



335,381 1,965,891 174,649 2,475,921





29,747 15,260 63,906 108,913

365,128 1,981,151 238,555 2,584,834




unit trusts 5,047 - 33,711 38,758



62,457 376,441 33,711 472,609





Company


Level 2 RM’000

Level 3 RM’000

Total RM’000

Company



unit trusts 36,711 - 257,086 293,797



447,344 2,461,129 257,466 3,165,939





29,747 15,260 63,906 108,913

477,091 2,476,389 321,372 3,274,852

1 January 2011

Takaful Operator



unit trusts 11,649 - 32,164 43,813



87,526 43,307 32,544 163,377

Family Takaful Fund



unit trusts 18,524 - 145,594 164,118



310,825 1,917,996 145,729 2,374,550






Company


Level 2 RM’000

Level 3 RM’000

Total RM’000

Family Takaful FundFVtPL financial assets




26,483 14,038 79,649 120,170

337,308 1,932,034 225,378 2,494,720




unit trusts 5,616 - 28,266 33,882



64,759 345,573 28,355 438,687

Company



unit trusts 35,789 - 206,024 241,813



426,250 2,306,876 206,628 2,939,754





26,483 14,038 79,649 120,170

452,733 2,320,914 286,277 3,059,924




37.11 Fair value hierarchy (continued) the following table shows a reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3

of the fair value hierarchy:

TakafulOperator

RM’000



GroupRM’000

equity securitiesBalance at 1 January 2011 426 135 89 650

total losses recognised in profit or loss - (135) (89) (224)

Effect of movement in exchange rates 1 - - 1

Balance at 31 December 2011/ 1 January 2012 427 - - 427

Effect of movement in exchange rates (4) - - (4)

Balance at 31 December 2012 423 - - 423

Unit trusts

Balance at 1 January 2011 32,164 145,594 28,266 206,024

Purchases 15,000 21,600 4,000 40,600

total gains recognised in profit or loss 1,562 7,455 1,445 10,462

Balance at 31 December 2011/1 January 2012 48,726 174,649 33,711 257,086

Purchases 10,000 4,087 1,000 15,087


Balance at 31 December 2012 61,270 187,332 36,379 284,981

Investment units in commodity, equity and fixed income closed ended fund

Balance at 1 January 2011 - 79,649 - 79,649

Redemption - (16,193) - (16,193)

total gains recognised in profit or loss - 450 - 450

Balance at 31 December 2011/1 January 2012 - 63,906 - 63,906

Redemption - (2,350) - (2,350)

total losses recognised in profit or loss - (1,894) - (1,894)

Balance at 31 December 2012 - 59,662 - 59,662






TakafulOperator

RM’000



CompanyRM’000

equity securitiesBalance at 1 January 2011 380 135 89 604

total losses recognised in profit or loss - (135) (89) (224)

Balance at 31 December 2011/1 January 2011/ 31 December 2012 380 - - 380

Unit trusts

Balance at 1 January 2011 32,164 145,594 28,266 206,024

Purchases 15,000 21,600 4,000 40,600


Balance at 31 December 2011/1 January 2012 48,726 174,649 33,711 257,086

Purchases 10,000 4,087 1,000 15,087


Balance at 31 December 2012 61,270 187,332 36,379 284,981

Investment units in commodity, equity and fixed income closed ended fund

Balance at 1 January 2011 - 79,649 - 79,649

Redemption - (16,193) - (16,193)

total gains recognised in profit or loss - 450 - 450

Balance at 31 December 2011/1 January 2012 - 63,906 - 63,906

Redemption - (2,350) - (2,350)

total losses recognised in profit or loss - (1,894) - (1,894)

Balance at 31 December 2012 - 59,662 - 59,662



38. Operating leases

Leases as lessee Non-cancellable operating lease rentals are payable as follows:


31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Non-related parties:

Less than one year 3,049 9,086 1,195 3,049 9,086 1,195

Between one and five years 11,342 9,094 1,585 11,342 9,094 1,585

14,391 18,180 2,780 14,391 18,180 2,780

Related party:

Less than one year 1,567 927 38 - 99 38

Between one and five years - - 493 - - 493

1,567 927 531 - 99 531

15,958 19,107 3,311 14,391 18,279 3,311


31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000


Less than one year 2,845 9,086 1,195 2,845 9,086 1,195

Between one and five years 11,179 9,094 1,585 11,179 9,094 1,585

14,024 18,180 2,780 14,024 18,180 2,780

Related party:

Less than one year - 99 38 - 99 38

Between one and five years - - 493 - - 493

- 99 531 - 99 531

14,024 18,279 3,311 14,024 18,279 3,311

Lease commitments are wholly payable from the takaful Operator. the Group and the Company lease a number of computers and equipment under operating leases. the leases typically run for a period of five years, with an option to renew the lease after that date.




38. Operating leases (continued)

Leases as lessor (continued)

the Group and the Company lease out their investment properties (see Note 4). the future minimum lease receivables under non-cancellable leases are as follows:

TakafulOperator

RM’000



GroupRM’000

31 December 2012


Less than one year 171 6,212 663 7,046

Between one and five years 2 3,276 362 3,640

173 9,488 1,025 10,686

Related party:

Less than one year 1,107 2,670 228 2,438


1,464 4,206 299 4,402

1,637 13,694 1,324 15,088

31 December 2011




389 15,915 1,537 17,841

Related party:



1,390 2,784 980 5,154

1,779 18,699 2,517 22,995





TakafulOperator

RM’000



GroupRM’000

1 January 2011




518 7,707 953 9,178

Related party:


Between one and five years 618 582 656 1,856

1,067 1,920 938 3,925

1,585 9,627 1,891 13,103

TakafulOperator

RM’000



CompanyRM’000

31 December 2012




173 9,401 1,025 10,599

Related party:



1,059 3,044 299 4,402

1,232 12,445 1,324 15,001






TakafulOperator

RM’000



CompanyRM’000

31 December 2011




360 15,795 1,537 17,692

Related party:



1,390 2,125 980 4,495

1,750 17,920 2,517 22,187

1 January 2011




513 7,634 953 9,100

Related party:

Less than one year 449 879 282 1,610

Between one and five years 618 582 656 1,856

1,067 1,461 938 3,466

1,580 9,095 1,891 12,566

39. Capital commitments

Group and Company

31.12.2012RM’000

31.12.2011RM’000

1.1.2011RM’000

Authorised by the Directors and contracted for 645 172 23,623



40. Related parties

Identity of related parties

For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. the key management personnel include all the Directors of the Group, and certain members of senior management of the Group. Compensation paid to key management personnel have been disclosed in Note 29.

the Group has related party relationship with its holding companies, significant investors, subsidiaries and associates, Directors and key management personnel.

Significant related party transactions

the significant related party transactions of the Company, other than key management personnel compensation as disclosed in Note 29, are as follows:

Group Company

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Ultimate holding company

Contribution income for Family takaful - 452 - 452

Contribution income for General takaful 2,204 2,149 2,204 2,149

Claims paid for Family takaful 600 2,051 600 2,051

Claims paid for General takaful 183 871 183 871

Holding company

Dividend paid 36,003 11,680 36,003 11,680

Subsidiary company

Contribution for facultative and treaty outward - 4 - 4

Contribution paid for facultative and treaty outward - 32 - 32




Group Company

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

1.1.2012 to31.12.2012

RM’000

1.1.2011 to31.12.2011

RM’000

Related companies

Contribution income for Family takaful - 15 - 15

Contribution income for General takaful 2,457 1,793 2,457 1,793

Claims paid for Family takaful 229 2,693 229 2,693

Claims paid for General takaful 215 140 215 140

Investment income 970 1,178 970 1,178

Lease rental expense 99 394 99 394

Rental income 2,640 2,642 2,640 2,642

Commision paid 370 196 370 196

Bank commissions 415 325 415 325

40. Related parties (continued)

Significant related party transactions (continued)



40. Related parties (continued)

the significant outstanding balances of the Group and of the Company as at 31 December 2011 with its related parties, are as follows:

Takaful Operator

RM’000



GroupRM’000

31 December 2012

Bank balances 149 2,261 174 2,584

Fixed and call deposits 2,454 28,229 7,473 38,156

2,603 30,490 7,647 40,740

31 December 2011

Bank balances 3,765 8,801 4,153 16,719


5,229 18,700 10,773 34,702

1 January 2011

Bank balances 167 1,019 23 1,209

Fixed and call deposits 604 25,338 2,130 28,072

771 26,357 2,153 29,281

Takaful Operator

RM’000



CompanyRM’000

31 December 2012

Bank balances 149 2,261 174 2,584


2,603 30,490 7,647 40,740

31 December 2011

Bank balances 3,765 8,801 4,153 16,719


5,229 18,700 10,773 34,702

1 January 2011

Bank balances 348 1,516 23 1,887

Fixed and call deposits 604 25,338 2,130 28,072

952 26,854 2,153 29,959




41. explanation of transition to MFRS

As stated in Note 1(a), these are the first financial statements of the Group and of the Company prepared in accordance with MFRS.

the accounting policies set out in Note 2 have been applied in preparing the financial statements of the Group and of the Company for the financial year ended 31 December 2012, the comparative information presented in these financial statements for the year ended 31 December 2011 and in the preparation of the opening MFRS statement of financial position at 1 January 2011 (the Group’s date of transition to MFRS).

In preparing the opening consolidated statement of financial position at 1 January 2011, the Group has adjusted amounts reported previously in financial statements prepared in accordance with previous FRS.

Following the transition to MFRS, a takaful Operator is required to present consolidated financial statements for itself and the takaful funds it controls in accordance with the requirements of MFRS 127, Consolidated and Separate Financial Statements. the statements of financial position and the statements of profit or loss and other comprehensive income of the takaful Operator, Family takaful Fund and General takaful Fund are supplementary financial information presented in accordance with the requirements of BNM.

In previous years, any deficit in takaful funds is being accounted for as a reduction of liability in both takaful funds’ and Company’s financial statements. Following the transition to MFRS, deficit of takaful funds is reported as a loss in the profit or loss of the takaful funds and the Company. An explanation of how the transition from previous FRS to MFRS has affected the Group’s and Company’s financial position, financial performance and cash flows is set out as follows.

41.1 Reconciliation of financial position

FRSRM’000

effect of transition

to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Group Takaful Operator 31 December 2011 1 January 2011

Assets

Property and equipment 27,741 554 28,295 29,897 614 30,511

equity

Reserves 287,206 554 287,760 230,559 614 231,173



41. explanation of transition to MFRS (continued)

41.1 Reconciliation of financial position (continued)

FRSRM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Group Family Takaful Fund 31 December 2011 1 January 2011

Assets

Other investments 2,825,359 174,392 2,999,751 2,700,918 184,571 2,885,489

Loans and receivables, excluding takaful receivables 563,214 455 563,669 465,284 3,098 468,382

takaful receivables 61,487 865 62,352 43,657 - 43,657


Investment-linked takaful assets 194,506 (194,506) - 201,051 (201,051) -

equity

Reserves - (10,816) (10,816) - (10,816) (10,816)

Liabilities

Qardh payables - 11,398 11,398 - 12,173 12,173

takaful contract liabilities 102,681 3,935,483 4,038,164 52,904 3,667,311 3,720,215

takaful payables 18,863 633 19,496 15,217 - 15,217

Other payables 133,183 (4,064) 129,119 156,275 (869) 155,406

Investment-linked takaful liabilities 5,679 (5,679) - 3,774 (3,774) -

Participants' fund

Family takaful Fund 3,934,076 (3,934,076) - 3,665,646 (3,665,646) -






FRSRM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Group General Takaful Fund 31 December 2011 1 January 2011

equity

Reserves - (19,074) (19,074) - (19,074) (19,074)

Liabilities

Qardh payables - 20,798 20,798 - 19,074 19,074

takaful contract liabilities 883,655 184,039 1,067,694 775,598 185,448 961,046

Other payables 73,422 (20,798) 52,624 85,308 (19,074) 66,234

Participants' fund

General takaful Fund 164,965 (164,965) - 166,374 (166,374) -

FRSRM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Company Takaful Operator 31 December 2011 1 January 2011

Assets

Property and equipment 20,528 554 21,082 22,642 614 23,256

equity

Reserves 291,554 554 292,108 240,339 614 240,953





FRSRM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Company Family Takaful Fund 31 December 2011 1 January 2011

Assets

Other investments 2,717,825 108,913 2,826,738 2,616,455 120,170 2,736,625

Loans and receivables, excluding takaful receivables 548,062 455 548,517 453,370 3,560 456,930

takaful receivables 53,490 865 54,355 35,292 - 35,292


Investment-linked takaful assets 125,464 (125,464) - 133,942 (133,942) -

Liabilities

takaful contract liabilities 93,693 3,660,092 3,753,785 44,471 3,425,385 3,469,856

takaful payables 15,297 633 15,930 12,233 - 12,233

Other payables 120,320 (2,075) 118,245 144,220 2,153 146,373

Investment-linked takaful liabilities 5,679 (5,679) - 3,774 (3,774) -

Participants' fund

Family takaful Fund 3,660,092 (3,660,092) - 3,425,385 (3,425,385) -

FRSRM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Company General Takaful Fund 31 December 2011 1 January 2011

Liabilities

takaful contract liabilities 804,344 199,469 1,003,813 659,478 197,314 856,792

Participants' fund

General takaful Fund 199,469 (199,469) - 197,314 (197,314) -





41.2 Reconciliation of profit or loss and other comprehensive income for the year ended 31 December 2011

Group Company

Takaful Operator FRS

RM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

takaful Operator income - 327,798 327,798 - 269,067 269,067

transfer from statements of comprehensive income

Family takaful 97,818 (97,818) - 92,761 (92,761) -

General takaful 85,547 (85,547) - 84,816 (84,816) -

Wakalah fee income 144,433 (144,433) - 84,490 (84,490) -


Revaluation of property and equipment - (60) (60) - (60) (60)

total other comprehensive expense for the year (1,692) (60) (1,752) (2,584) (60) (2,644)

total comprehensive income for the year 74,687 (60) 74,627 69,125 (60) 69,065

Total comprehensive income/(expense) for the year attributable to:

Owners of the Company 74,557 (60) 74,497 69,125 (60) 69,065




41.2 Reconciliation of profit or loss and other comprehensive income for the year ended 31 December 2011

Group Company

Family Takaful FundFRS

RM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Operating revenue - 865,104 865,104 - 721,794 721,794

total profit for the year 258,469 102,360 360,829 226,247 97,303 323,550

Profit attributable to the takaful Operator/participants - (360,829) (360,829) - (323,550) (323,550)


Fair value change of available-for-sale financial assets - 5,370 5,370 - 8,118 8,118

Foreign currency translation differences for foreign operations - 3,332 3,332 - - -

Other comprehensive income attributable to takaful Operator/change in participants’ liabilities - (8,702) (8,702) - (8,118) (8,118)





41.2 Reconciliation of profit or loss and other comprehensive income for the year ended 31 December 2011 (continued)

Group Company

General Takaful Fund FRS

RM’000


to MFRSRM’000

MFRSRM’000

FRSRM’000


to MFRSRM’000

MFRSRM’000

Operating revenue - 470,421 470,421 - 411,239 411,239

Profit attributable to the takaful Operator/participants - (140,549) (140,549) - (141,777) (141,777)


Fair value change of available-for-sale financial assets - (9,285) (9,285) - (9,218) (9,218)

Foreign currency translation differences for foreign operations - (892) (892) - - -

Other comprehensive income attributable to takaful Operator/change in participants’ liabilities - 10,177 10,177 - 9,218 9,218

41.3 Material adjustments to the statements of cash flows for 2011

there are no material differences between the statements of cash flows presented under MFRS and the statements of cash flows presented under FRS.



42. Supplementary financial information on the breakdown of realised and unrealised profits or losses

the breakdown of the retained profits of the Group and of the Company as at 31 December, into realised and unrealised profits, pursuant to Paragraphs 2.06 and 2.23 of the Bursa Malaysia Main Market Listing Requirements, are as follows:

Group Company

31.12.2012RM’000

31.12.2011RM’000

31.12.2012RM’000

31.12.2011RM’000

total retained profits of the Company and its subsidiaries:

- Realised 261,790 238,803 310,188 286,052

- unrealised 39,289 18,055 18,050 (3,485)

301,079 256,858 328,238 282,567

total share of retained profits of associates:

- Realised - - - -

- unrealised - - - -

301,079 256,858 328,238 282,567

Add: Consolidation adjustments 27,221 27,183 - -

total retained profits 328,300 284,041 328,238 282,567 the determination of realised and unrealised profits is based on the Guidance of Special Matter No.1, Determination of Realised and unrealised

Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants on 20 December 2010.

328 SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT

Maklumat Hartanah

Particulars of Properties

A pELAburAN hArTANAh / INvESTMENT propErTIES

No Lokasi/Location

peneranganKegunaan/Description ofExisting use

hakmilik/Tenure

usiabangunan/Age ofbuilding(tahun/years)

Keluasan Tanah,Kawasan bina/Land, built-up Area (kaki persegi/square feet)

Nilai bukubersih pada/Net bookvalue as at31.12.2012(rM)

TarikhpenilaianSemula/Date ofrevaluation

1 No. 325A & 325BBlok 41, kompleksPerniagaan Fajar91000 tawauSabah

tiga unit kompleksPerniagaan/Pejabat 4 tingkatthree units of 4 storeyCommercial Complex/Office

Pajakan bandar 999 tahun berakhir pada 31.12.2895999 years town lease expiring on 31.12.2895

21 4,025/6,037

2,950,000 31.12.2012

2 No. 64 & 65kompleks JitraJalan Sungai korok06000 Jitrakedah Darul Aman

Dua unit Rumah kedai/Pejabat 2 tingkattwo units of 2 storeyShophouse/Office

Pegangan BebasFreehold

26 3,095/6,935

1,025,000 31.12.2012

3 No. 23Medan Istana 3Bandar Ipoh Raya30450 IpohPerak Darul Ridzuan

Satu unit Rumah kedai/Pejabat 3 tingkatOne unit of 3 storeyShophouse/Office

Pajakan 99 tahun berakhir pada 30.03.208199 years lease expiring on 30.03.2081

17 1,539/4,255

550,000 31.12.2012

4 No. 84Batu 3 1/4Jalan Gombak53000 kuala Lumpur



26 1,883/8,700

1,330,000 31.12.2012

5 Lot 54 & 55Bandar Wilayah JasaJalan Bunga Raya91100 Lahad DatuSabah


Pajakan Bandar 99 tahun berakhir pada 31.12.209099 years town lease expiring on 31.12.2090

17 2,400/7,200

1,680,000 31.12.2012

6 No. 24Jalan uSJ 10/1B47620 uEPSubang JayaSelangor Darul Ehsan



18 3,200/9,600

5,140,000 31.12.2012

7 No. 15 & 17Jalan kelibangLangkawi Mall07000 kuahLangkawikedah Darul Aman



19 1,440/7,720

590,000 31.12.2012

329SyARIkAt tAkAFuL MALAySIA BERhAD (131646-k) LAporAN TAhuNAN 2012 ANNuAL rEporT


Maklumat Hartanah

No Lokasi/Location


hakmilik/Tenure





8 No. 26 & 28Jalan Perda BaratBukit MertajamSeberang Prai14000 Penang


Pegangan bebasFreehold

14 3,293/8,840

1,200,000 31.12.2012

9 No. 433 & 434Jalan kulas93400 kuchingSarawak



17 3,589/12,855

3,550,000 31.12.2012

10 No. 312Jalan Bandar 13taman Melawati53100 kuala Lumpur



18 1,920/7,070

1,600,000 31.12.2012

11 No. 20, Fasa 1AJalan haji Manan86000 kluangJohor Darul ta’zim



16 2,658/9,930

1,900,000 31.12.2012

12 Lot 13 & 14Lazenda CommercialCentreJalan Okk Abdullah87007 WilayahPersekutuan Labuan

Dua unit bangunanPejabat 3 tingkattwo units of 3 storeyOffice building


18 2,504/7,200

2,200,000 31.12.2012

13 Lot 28, 30 & 32Jalan 2/3APasar Borong68100 SelayangSelangor Darul Ehsan

tiga unit Rumah kedai/Pejabat 4 tingkatthree units of 4 storeyShophouse/Office


25 4,447/16,800

2,850,000 31.12.2012

14 Lot 12680Level 1 & MezzanineJalan Bukit timbalan80000 Johor BharuJohor Darul ta’zim

Dua tingkat bangunanPejabat 13 tingkattwo floors of 13 storeyOffice building


14 8,354* 1,730,000 31.12.2012


No Lokasi/Location


hakmilik/Tenure





15 Lot 12680Level 3Jalan Bukit timbalan80000 Johor BharuJohor Darul ta’zim

Satu tingkat bangunanPejabat 13 tingkatOne floor of 13 storeyOffice building


14 6,594* 1,000,000 31.12.2012

16 No. 1 & 2Jalan kelicaptaman Pekan Baru34200 Parit BuntarPerak Darul Ridzuan



25 3,956/7,044

790,000 31.12.2012

17 No. 46 & 47Darul takafulJalan Rahmat83000 Batu PahatJohor Darul ta’zim

Dua unit Rumah kedai/Pejabat 4 tingkattwo units of 4 StoreyShophouse/Office


23 3,220/12,092

1,480,000 31.12.2012

18 No. 180 & 181Jalan tuan hitam22000 Jertehterengganu Darul Iman



22 3,200/12,250

1,640,000 31.12.2012

19 Lot 82, 84 & 86Jalan Rugbi 13/30Seksyen 1340100 Shah AlamSelangor Darul Ehsan

tiga unit Rumah kedai/Pejabat 2 tingkatthree units of 2 storeyShophouse/Office


13 6,339/11,309

2,940,000 31.12.2012

20 No. 229Jalan Shahab 2Shahab PerdanaJalan SultanahSambungan05350 Alor Starkedah Darul Aman

Satu unit Rumah kedai/Pejabat 2 1/2 tingkatOne unit of 2 1/2 storeyShophouse/Office


16 1,400/3,570

450,000 31.12.2012

21 Lot No. 3803Jalan Dato’ ulu Muar72000 kuala PilahNegeri SembilanDarul khusus



13 2,001/3,120

500,000 31.12.2012


Maklumat Hartanah


No Lokasi/Location


hakmilik/Tenure





22 No. 45Jalan teluk Sisek25000 kuantanPahang Darul Makmur



12 3,200/8,019

2,300,000 31.12.2012

23 No. 27, 29 & 31Pusat komersiltemerloh28000 temerlohPahang Darul Makmur

tiga unit Rumah kedai/Pejabat 2 1/2 tingkatthree units of2 1/2 storeyShophouse/Office


12 4,195/15,050

1,880,000 31.12.2012

24 No. 2 & 4Jalan 6C/743650 Bandar Baru BangiSelangor Darul Ehsan



25 6,383/8,032

1,845,000 31.12.2012

25 Lot 14Seremban City CentreJalan tuanku Munawir70000 SerembanNegeri SembilanDarul khusus



16 1,500/14,589

3,469,000 31.12.2012

26 No. 29, Jalan DelimaPusat PerdaganganPontian82000 PontianJohor Darul ta’zim



11 3,899/10,248

1,570,000 31.12.2012

27 Lot 12kompleks Seri teminJalan Ibrahim08000 Sungai Petanikedah Darul Aman



27 1,400/5,510

550,000 31.12.2012

28 Lot 1129 & 1130Bangunan DarultakafulJalan Sultan Ismail20100 kualaterengganuterengganu Darul Iman

Satu unit bangunanPejabat 12 tingkatOne unit of 12 storeyOffice building

Pajakan kecil 35 tahun berakhir pada 27.02.203735 years sub lease expiring on 27.02.2037

10 3,600/23,637

6,010,000 31.12.2012


Maklumat Hartanah


No Lokasi/Location


hakmilik/Tenure





29 No. 616 & 617Jalan Besar73000 tampinNegeri SembilanDarul khusus


Pajakan 99 tahun berakhir pada 05.10.208899 year lease expiring on 05.10.2088

20 4,498/8,685

1,470,000 31.12.2012

30 No. 6, Jalan 6C/743650 Bandar Baru BangiSelangor Darul Ehsan


Pajakan 99 tahun berakhir pada 08.07.2086 99 year lease expiring on 08.07.2086

25 1,905/3,508

745,000 31.12.2012

31 Suite 3B/GBlok 3B, Plaza SentralJalan Stesen Sentral 550470 kuala Lumpur

Satu tingkat bangunanPejabat 22 tingkatOne floor of 22 storeyOffice building

Pegangan bebasFreehold

11 6,409* 7,900,000 31.12.2012

32 No. 26 & 27Jalan tanjungPasar Baru18500 Machangkelantan Darul Naim



31 1,600/4,000

680,000 31.12.2012

33 No. 330 & 331Jalan Sultan yahya Petra15720 kota Bharukelantan Darul Naim

Dua unit bangunanPejabat 4 1/2 tingkattwo units of 4 1/2storey Office building


30 3,200/15,200

1,950,000 31.12.2012

34 Menara takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 kuala Lumpur

Dua unit bangunanPejabatBlok utama - 26 tingkatBlok Annex - 29 tingkattwo units ofOffice buildingMain Block - 26 storeyAnnexeBlock– 29 Storey


Blok utama/Main Block- 39Blok Annex/AnnexeBlock - 32

90,427/393,508

165,800,000 31.12.2012

35 No. 2408taman Samudera32040 Sri ManjungPerak Darul Ridzuan



16 2,800/5,300

800,000 31.12.2012

Maklumat Hartanah



Maklumat Hartanah

No Lokasi/Location


hakmilik/Tenure





36 No. 76A & 76Pusat PerniagaanJalan tupai34000 taipingPerak Darul Ridzuan



9 3,134/18,304

1,530,000 31.12.2012

37 No. 10 & 11Jalan Sultan yahya Petra15200 kota Bharukelantan Darul Naim



10 3,852/9,120

2,080,000 31.12.2012

38 No. 4197Jalan teluk Wanjah05200 Alor Starkedah Darul Aman



10 8,716/18,440

2,650,000 31.12.2012

39 No. 10 & 8Jalan Padi Emas 5/2Bandar Baru uDA81200 Johor BharuJohor Darul ta’zim



7 3,080/8,024

1,800,000 31.12.2012

40 No. 4kompleks Seri teminJalan Ibrahim08000 Sungai Petanikedah Darul Aman



27 1,400/5,510

640,000 31.12.2012

41 No. 16, JalanCenderawasihJalan kilang Lama09000 kulimkedah Darul Aman



13 1,600/4,172

400,000 31.12.2012

42 Lot 1340, MiriWaterfrontCommercial Centre98000 MiriSarawak


Pajakan 60 tahun berakhir30.09.206660 years expiring on 30.09.2066

8 1,400/5,500

1,320,000 31.12.2012



Maklumat Hartanah

No Lokasi/Location


hakmilik/Tenure





43 No. 6, Jalan Padi Emas5/2, Bandar Baru uDA81200 Johor BharuJohor Darul ta’zim


Pajakan 99 tahun berakhir pada 16.02.209999 years lease expiringon 16.02.2099

7 1,540/4,012

900,000 31.12.2012

44 No. 148, kompleksMunshi Abdullah75200 Melaka

Satu unit bangunanPejabat 4 ½ tingkatOne unit of 4 ½ storeyOffice building

Pajakan 99 tahun berakhir pada 23.04.210299 years lease expiringon 23.04.2102

19 1,470/6,117

970,000 31.12.2012

45 No. 16474 & 16475Pusat PerniagaanInderapuraJalan tras RaubPahang Darul Makmur



13 3,218/9,280

1,520,000 31.12.2012

Jumlah/Total 247,874,000

* Kawasan Bina/Build-up Area



Maklumat Hartanah

hArTANAh yANg DIhuNI-SENDIrI / SELF-oCCupIED propErTy

ASET pEgANgAN uNTuK DIJuAL / ASSET hELD For SALE

b

C

No Lokasi/Location


hakmilik/Tenure





1 No. 435Jalan kulas93400 kuchingSarawak



17 1,214/4,262

1,250,000 31.12.2012

No Lokasi/Location


hakmilik/Tenure





1 Lot 557 & 559Plaza MelakaJalan hang tuah75300 Melaka

Dua unit Rumah kedai/Pejabat 4 1/2 tingkattwo units of 4 1/2storey Shophouse/Office


29 3,485/14,434

1,340,000 31.12.2011

2 Lot 6966 & Lot 6967Blok 59, Muara tuangJalan Datok Mohd Musa, 94300 kota SamarahanSarawak



17 2,624/7,500

1,360,000 31.12.2012

3 Lot 14(S1) & 15(S1)Indah Point, Section 12Pulau Indah Industrial Park42000 klang, Selangor



13 3,300/10,560

540,000 31.12.2012



Shareholdings StatisticsStatistik Pegangan Saham

MODAL SAHAM / SHARE CAPITAL

Modal Dibenarkan : 500,000,000 saham biasa bernilai RM1.00 sesahamAuthorised capital 500,000,000 ordinary shares of RM1.00 each

Modal yang diterbitkan dan dibayar sepenuhnya pada 25 Februari 2013 : 162,817,000 saham biasa bernilai RM1.00 sesahamIssued and fully paid-up capital as at 25 February 2013 162,817,000 ordinary shares of RM1.00 each

Jumlah pemegang saham pada 25 Februari 2013 : 2,456No. of shareholders as at 25 February 2013

kelas saham : Saham biasa bernilai RM1.00 sesahamClass of shares Ordinary shares of RM1.00 each

hak mengundi : 1 undi bagi setiap saham biasaVoting right 1 vote per ordinary share

PeMeGANG-PeMeGANG SAHAM UTAMA (5% DAN LeBIH) PADA 25 FeBRUARI 2013SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDINGS (5% AND ABOVE) AS AT 25 FEBRUARY 2013

Nama Pemegang Saham Jumlah Saham Peratus (%)Name of Shareholders Number of Shares Percentage (%)

BIMB holdings Berhad 99,554,175 61.14Citigroup Nominees (tempatan) Sdn Bhd 15,046,220 9.24(Employees Provident Fund Board)

Jumlah / Total 114,600,395 70.38

PeGANGAN SAHAM PARA PeNGARAH PADA 25 FeBRUARI 2013DIRECTORS’ SHAREHOLDINGS AS AT 25 FEBRUARY 2013

Nama Pengarah Jumlah Saham Peratus (%)Name of Directors Number of Shares Percentage (%)

y. Bhg. Dato’ Paduka Ismee Ismail - -y. Bhg. Dato’ Mohamed hassan Md. kamil - -Puan Rozaida Omar - -Encik Mahadzir Azizan - -y. Bhg. Dato’ Sulaiman Mohd yusof - -Encik Johan Abdullah - -Encik Zakaria Ismail - -y. Bhg. Dato’ Othman Abdullah - -


Shareholdings Statistics

Statistik Pegangan Saham

ANALISA PeGANGAN SAHAM MeNGIKUT SAIZ PADA 25 FeBRUARI 2013ANALYSIS BY SIZE OF SHAREHOLDINGS AS AT 25 FEBRUARY 2013

Saiz Pegangan Saham Bilangan Peratus (%) Jumlah Peratus (%)Size of Shareholdings Pemegang Saham Percentage (%) Pegangan Saham Percentage (%) Number Number of of Shareholders Shareholdings

kurang dari 100 462 18.81 5,082 0.00Less than 100

100 - 1,000 677 27.57 422,858 0.26

1,001 - 10,000 1,031 41.98 3,170,690 1.95

10,001 - 100,000 209 8.51 7,159,100 4.40

100,001 sehingga kurang daripada 5% saham diterbitkan 75 3.05 38,703,375 23.77100,001 to less than 5% of issued shares

5% dan lebih saham diterbitkan 2 0.08 113,355,895 69.625% and above of issued shares

Jumlah/Total 2,456 100.00 162,817,000 100.00

TIGA PULUH (30) PeMeGANG SAHAM TeRBeSAR PADA 25 FeBRUARI 2013THIRTY (30) LARGEST SHAREHOLDERS AS AT 25 FEBRUARY 2013


BIMB holdings Berhad 99,554,175 61.14

Citigroup Nominees (tempatan) Sdn Bhd 13,801,720 8.48(Employees Provident Fund Board)

Bimsec Nominees (Asing) Sdn Bhd 7,000,000 4.30(Islamic Development Bank)

Amsec Nominees (tempatan) Sdn Bhd 3,896,200 2.39(Amtrustee Berhad for CIMB Islamic Dali Equity Growth Fund (UT-CIMB-Dali))

AmanahRaya trustees Berhad 3,003,700 1.84(Public Islamic Select Treasures Fund)

Lembaga kemajuan tanah Persekutuan (FELDA) 2,961,400 1.82


TIGA PULUH (30) PeMeGANG SAHAM TeRBeSAR PADA 25 FeBRUARI 2013 (sambungan)THIRTY (30) LARGEST SHAREHOLDERS AS AT 25 FEBRUARY 2013 (continued)


koperasi Permodalan Felda Malaysia Berhad 1,438,000 0.88

Cartaban Nominees (tempatan) Sdn Bhd 1,300,300 0.80(Exempt An for Eastspring Investments Berhad)

RhB Nominees (Asing) Sdn Bhd 1,015,375 0.62(RUSD Investment Bank Inc)

universal trustee (Malaysia) Berhad 808,700 0.50(CIMB-Principal Equity Fund)

Maybank Nominees (tempatan) Sdn Bhd 802,400 0.49(Etiqa Takaful Berhad (Family PRF EQ))

Citigroup Nominees (tempatan) Sdn Bhd 800,000 0.49(Employees Provident Fund Board (PHEIM))

CIMB Group Nominees (tempatan) Sdn Bhd 692,000 0.43(Amtrustee Berhad for CIMB Islamic Dali Equity Theme Fund)

kenanga Nominees (tempatan) Sdn Bhd 673,800 0.41(Pledged Securities Account for Majlis Agama Islam Dan Adat Melayu Terengganu (STC))

Citigroup Nominees (tempatan) Sdn Bhd 620,900 0.38(Exempt An for American International Assurance Berhad)

Malacca Equity Nominees (tempatan) Sdn Bhd 613,000 0.38(Exempt An for Phillip Capital Management Sdn Bhd)

hLB Nominees (tempatan) Sdn Bhd 597,000 0.37(Pledged Securities Account for Ashfak Ahmad Bin Alarakha)

t.O. Lim holdings Sdn Bhd 570,000 0.35

hSBC Nominees (Asing) Sdn Bhd 527,000 0.32(Exempt An for The Bank of New York Mellon (Mellon Acct))

universiti Sains Malaysia 500,000 0.31

Meng hin holdings Sdn Bhd 489,300 0.30






TIGA PULUH (30) PeMeGANG SAHAM TeRBeSAR PADA 25 FeBRUARI 2013 (sambungan)THIRTY (30) LARGEST SHAREHOLDERS AS AT 25 FEBRUARY 2013 (continued)


Citigroup Nominees (tempatan) Sdn Bhd 444,500 0.27(Employees Provident Fund Board (CIMB PRINT))

Majlis Agama Islam Dan Adat Melayu Perak Darul Ridzuan 400,000 0.25

Amin Baitulmal Johor 400,000 0.25

Miss Wipaporn Limprana 350,000 0.21

Citigroup Nominees (Asing) Sdn Bhd 317,000 0.19(CBHK for Premium Asia Fund)

universal trustee (Malaysia) Berhad 310,500 0.19(CIMB Islamic Small Cap Fund)

Ashfak Ahmad Bin Alarakha 309,000 0.19

Maybank Nominees (tempatan) Sdn Bhd 284,000 0.17(Etiqa Takaful Berhad (General Fund))

Citigroup Nominees (Asing) Sdn Bhd 268,000 0.16(CBNY for DFA Emerging Markets Small Cap Series)

Jumlah/Total 144,747,970 88.90


Branch NetworkRangkaian Cawangan

Ibu pEJAbAT / hEAD oFFICE

SyARIKAT TAKAFUL MALAySIA BeRHAD(131646-K)26th Floor, Annexe BlockMenara takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 kuala LumpurP.O. Box 1148350746 kuala Lumpurtel : +603-2268 1984Fax : +603-2274 0237toll Free : 1-300-8-825 2385Web : www.takaful-malaysia.com.my

TAKAFuL myCArE CENTrES*

MeNARA TAKAFUL MALAySIAtingkat Bawah, Blok utamaMenara takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 kuala Lumpur

SHAH ALAMtingkat BawahLot No. 82, 84, 86Jalan Rugbi 13/30, Seksyen 1340100 Shah AlamSelangor Darul Ehsan

PeTALING JAyANo. 10-2 & 12-2, tingkat 1Jalan 14/22, the Right Angle46100 Petaling JayaSelangor Darul Ehsan

BANDAR PeRDANo. 28, Jalan Perda Barat 1Bandar Baru Perda14000 Bukit MertajamPulau Pinang

GeLUGORNo. 2480, tingkat BawahJalan Sultan Azlan Shah11700 GelugorPulau Pinang

ALOR SeTARNo. 229Jalan Shahab 2, Shahab PerdanaJalan Sultanah Sambungan05150 Alor Setarkedah Darul Aman

IPOHNo. 23, Medan Istana 3Bandar Ipoh Raya30000 IpohPerak Darul Ridzuan

KUALA TeReNGGANUtingkat 2Jalan Sultan Ismail20100 kuala terengganuterengganu Darul Iman

KOTA BHARULot 331 & 332tingkat BawahJalan Sultan yahya Petra Wakaf Siku15200 kota Bharukelantan Darul Naim

KUANTANNo. 45, tingkat BawahJalan teluk Sisek25000 kuantanPahang Darul Makmur

SeReMBANSuite14–2Seremban City CentreJalan tuanku Munawir70000 SerembanNegeri Sembilan Darul khusus

KOTA KINABALULot A 202 & 203, tingkat 2, Blok AWisma MuISJalan tengku Abdul Rahman88850 kota kinabaluSabah

KUCHINGNo. 435, tingkat 1&2Bangunan tuanku haji Mohammad Al-EdrusJalan kulas, 93400 kuchingSarawak

JOHOR BAHRUtingkat Bawah, No. 5, Jalan Setia tropika 1/30taman Setia tropika81200 Johor BahruJohor Darul takzim

PUTRAJAyALot 11F, tingkat 1, Blok E16Parcel E, Precinct 1 Anjung62000 Putrajaya

MeLAKA148, kompleks Munshi AbdullahJalan Munshi Abdullah75100 Melaka

SUNGAI PeTANINo. 4, kompleks Seri teminJalan Ibrahim 08000 Sungai Petanikedah Darul Aman

TeMeRLOHNo. 27, Jalan Dato’ Bahaman 3Pusat Dagangan temerloh28000 temerlohPahang Darul Makmur


* For further details, please contact our Toll-free number 1300-8-TAKAFUL (825 2385) or email at [email protected]

Branch Network

Rangkaian Cawangan

TAWAULot 268, Blok 28, tingkat 2Jalan Mahkamah, Fajar kompleks91000 tawau, Sabah

MIRILot 1340tingkat Bawah & 1Miri Waterfront, Commercial CentreJalan Waterfront98000 Miri, Sarawak

BATU PAHATtingkat 2, No. 46 & 47,Darul takaful, Jalan Rahmat83000 Batu PahatJohor Darul takzimtel : 07-434 8560 : 07-432 5673Fax : 07-433 2729

TAKAFuL rETAIL CENTrES*

KL SeNTRALLot CS/3B/G, tingkat BawahPlaza SentralJalan Stesen Sentral 550470 kuala Lumpur

IFiC JOHOR BAHRUGround Floor, Menara th Johor BahruPtB 20485, Jalan Ayer Molek80000 Johor BahruJohor Darul takzim

TAKAFuL myDESKS*

TABUNG HAJI CAWANGAN JALAN TUN RAZAK2nd Floor, Menara Lembaga tabung haji201, Jalan tun Razak50732 kuala Lumpurtel : 03-2162 1307 : 03-2164 7446

TABUNG HAJI CAWANGAN BAGAN SeRAIBangunan tabung hajiNo. 110, Jalan Besar34300 Bagan SeraiPerak Darul Ridzuantel : 05-721 0320 : 012- 505 2009Fax : 05-721 0323

TABUNG HAJI CAWANGAN BUTTeRWORTHBangunan th, No. 2828-G-1Jalan Bagan Luar12000 ButterworthPulau Pinangtel : 04-323 2892

TABUNG HAJI CAWANGAN BeNTONGBangunan tabung hajiJalan Ah Peng28700 BentongPahang Darul Makmurtel : 09-2220 840Fax : 09-2220 839

TABUNG HAJI CAWANGAN KOTA TINGGIBangunan tabung hajiNo. 24, Jalan Niaga 181900 kota tinggiJohor Darul takzimtel : 07-883 2880 : 012 -774 7553Fax : 07-882 2790

TABUNG HAJI CAWANGAN TANAH MeRAHtingkat 1, Bangunan thLot 211, Jalan hospital17500 tanah Merahkelantan Darul Naimtel : 09-955 7411Fax : 09-955 7413

TABUNG HAJI CAWANGAN KUALA PILAHBangunan tabung hajiLot No 234Jalan Dato’ undang Johol72000 kuala PilahNegeri Sembilan Darul khusustel : 06-481 0971Fax : 06-481 0972


Subsidiary CompaniesSyarikat Subsidiari

ASeAN ReTAKAFUL INTeRNATIONAL (L) LTD. (LL01129) (in members’ voluntary winding-up)Level 14, Blok 4Financial Park ComplexJalan Merdeka87000 Wilayah Persekutuan Labuantel : 087-451 301 : 087-451 302Fax : 087-451 300

PT SyARIKAT TAKAFUL INDONeSIAGraha A, Graha takaful IndonesiaJalan Mampang Prapatan RayaNo. 100, Jakarta12790 Indonesiatel : 6221-799 1234 : 6221-799 2345Fax : 6221-790 1435

PT ASURANSI TAKAFUL KeLUARGAGraha B, Graha takaful IndonesiaJalan Mampang Prapatan RayaNo. 100, Jakarta12790 Indonesiatel : 6221-799 1234 : 6221-799 2345Fax : 6221-790 1435

PT ASURANSI TAKAFUL UMUMGraha A, Graha takaful IndonesiaJalan Mampang Prapatan RayaNo. 100, Jakarta12790 Indonesiatel : 6221-799 1234 : 6221-799 2345Fax : 6221-790 1944

Borang Proksi/Proxy Form

Saya / kami / I / We ...............................................................................................................................................................................................................................................................................................sebagai Ahli / Ahli - Ahli Syarikat yang dinyatakan di atas dengan ini melantikbeing a Member / Members of the abovenamed Company, hereby appoint

.....................................................................................................................................................................................................................................................................................................................................

dari / of ....................................................................................................................................................................................................................................................................................................................

atau / Pengerusi Mesyuarat jika beliau tidak dapat hadir / or the Chairman of the Meeting failing him ...............................................................................................................................

.....................................................................................................................................................................................................................................................................................................................................

dari / of ....................................................................................................................................................................................................................................................................................................................sebagai proksi saya / kami untuk mengundi bagi pihak saya / kami di MESyuARAt AGuNG tAhuNAN SyARIkAt tAkAFuL MALAySIA BERhAD yang kEDuA PuLuh LAPAN yang akan diadakan pada hari Isnin, 29 April 2013 pada jam 10:00 pagi dan pada sebarang penangguhannya.as my / our proxy to vote for me / us on my / our behalf at the TWENTY EIGHTH ANNUAL GENERAL MEETING OF SYARIKAT TAKAFUL MALAYSIA BERHAD, to be held on Monday, 29 April 2013 at 10:00 a.m and any adjournment thereof.

Sila tandakan “X” di dalam ruang yang disediakan di bawah bagaimana anda ingin mengundi untuk resolusi-resolusi berikut. Sekiranya tiada arahan-arahan tertentu, proksi anda akan mengundi atau tidak mengundi sepertimana yang dia anggap patut. Jika anda melantik dua proksi, sila nyatakan bahagian pegangan untuk diwakilkan kepada setiap proksi.Please indicate an “X” in the space provided below, how you wish your vote to be cast in respect of the following resolutions. In the absence of specific directions, your proxy may vote or abstain at his/her discretion. If you appoint two proxies, please specify the proportions of holdings to be represented by each proxy.

Wakil saya / kami akan mengundi seperti berikut / My / Our proxy is to vote as indicated hereunder:

No. rESoLuSI / RESOLUTION MENyoKoNg /FOR

MENENTANg /AGAINST

1 untuk menerima Penyata-Penyata kewangan yang telah diaudit bagi tahun kewangan berakhir 31 Disember 2012, beserta laporan Pengarah dan Juruaudit berkaitan dengannya.To receive the Audited Financial Statements for the financial year ended 31 December 2012, together with the reports of the Directors and auditors thereon.

untuk melantik semula Pengarah-pengarah berikut yang bersara menurut tataurusan Pertubuhan Syarikat:-To re-elect the following Directors, each of whom retires pursuant to the Company’s Articles of Association:

2Artikel 62 / Article 62Encik Mahadzir Azizan

3 y. Bhg. Dato’ Sulaiman Mohd yusof

4 Encik Zakaria Ismail

5Artikel 66A / Article 66Ay. Bhg. Dato’ Othman Abdullah

6 untuk meluluskan bayaran yuran Pengarah-pengarah sebanyak RM783,000 bagi tahun kewangan berakhir 31 Disember 2012. (RM579,000 bagi tahun kewangan berakhir 31 Disember 2011)To approve the payment of the Directors’ fees of RM783,000 for the financial year ended 31 December 2012. (RM579,000 for the financial year ended 31 December 2011)

7 untuk meluluskan bayaran yuran Ahli-Ahli Badan Penasihat Syariah sebanyak RM193,000 bagi tahun kewangan berakhir 31 Disember 2012. (RM167,000 bagi tahun kewangan berakhir 31 Disember 2011)To approve the payment of Shariah Advisory Body Members’ fees of RM193,000 for the financial year ended 31 December 2012. (RM167,000 for the financial year ended 31 December 2011)

8 untuk melantik semula tetuan kPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-Pengarah untuk menetapkan bayaran Juruaudit.To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directors to fix their remuneration.

9 Cadangan Mandat Pemegang-Pemegang Saham bagi urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan.Proposed Shareholders’ Mandate for Recurrent Related Party Transactions.

JuMLAh SAhAMNO. OF SHARES

Pada / Dated this ........ haribulan / day of ........ 2013 ______________________________________________tandatangan/ Cop Mohor Pemegang Saham

Signature/ Common Seal of Shareholders

Perforation line

Perforation line

Nota-Nota:(i) Seorang ahli yang berhak hadir untuk mengundi dalam mesyuarat itu layak untuk melantik tidak lebih daripada dua (2) orang proksi untuk hadir dan mengundi

bagi pihaknya dan haruslah menyatakan bahagian sahamnya yang diwakili oleh setiap proksi dan proksi itu tidak semestinya seorang ahli Syarikat.(ii) Suratcara pelantikan proksi bagi individu hendaklah ditandatangani oleh pelantik atau peguamnya dan dalam hal perbadanan, ia mestilah dimeterai atau

ditandatangani oleh seorang pegawai atau peguamnya yang telah diberi kuasa sewajarnya.(iii) Suratcara pelantikan seorang proksi mestilah dihantar ke Pejabat Berdaftar Syarikat di tingkat 26, Blok Annex, Menara takaful Malaysia, No. 4, Jalan Sultan

Sulaiman, 50000 kuala Lumpur, tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya.

(iv) hanya ahli yang tersenarai di dalam Rekod Pendeposit pada 22 April 2013 yang layak untuk hadir, bersuara dan mengundi pada AGM atau melantik seorang proksi (proksi-proksi) untuk hadir, bersuara dan/atau mengundi bagi pihak mereka.

Notes:(i) A member entitled to attend and vote at the meeting is entitled to appoint not more than two (2) proxies to attend and to vote instead of him and shall specify the

proportions of his holdings to be represented by each proxy and a proxy need not be a member of the Company.(ii) The instrument appointing a proxy in the case of an individual shall be signed by the appointer or his attorney and in the case of a corporation, must be under seal or

under the hand of an officer or attorney duly authorised.(iii) The instrument appointing a proxy must be deposited at the Registered Office of the Company at Tingkat 26, Blok Annex, Menara Takaful Malaysia, No. 4, Jalan Sultan

Sulaiman, 50000 Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting or any adjournment thereof.(iv) Only members whose names appear in the Record of Depositors on 22 April 2013 shall be eligible to attend, speak and vote at the AGM or appoint proxy(ies) to attend,

speak and/or vote on their behalf.

Setiausaha Syarikat / The Company SecretarySyarikat Takaful Malaysia berhadtingkat 26, Blok AnnexMenara takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 kuala Lumpur

Perforation line

Perforation line

Syarikat Takaful Malaysia berhad (131646-k)tingkat 26, Blok Annex

Menara takaful MalaysiaNo. 4, Jalan Sultan Sulaiman

50000 kuala Lumpur

T : 1300-8-tAkAFuL (8252385)F : 603-2274 0237

e : [email protected]

a new beginning - takaful malaysia...syarikat takaful malaysia berhad (131646-k) laporan tahunan...

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