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Contents kandungan

2 VISION AND MISSION / VISI DAN MISI

4 OUR PROFILE / PROFIL KAMI

8 NOTICE OF ANNUAL GENERAL MEETINGNOTIS MESYUARAT AGUNG TAHUNAN

12 GROUP’S FINANCIAL HIGHLIGHTSRINGKASAN KEWANGAN KUMPULAN

14 CORPORATE INFORMATIONMAKLUMAT KORPORAT

16 CORPORATE STRUCTURESTRUKTUR KORPORAT

18 PROFILE OF BOARD OF DIRECTORSPROFIL LEMBAGA PENGARAH

26 PROFILE OF SENIOR MANAGEMENTPROFIL PENGURUSAN KANAN

32 EXECUTIVE CHAIRMAN’S STATEMENTPERUTUSAN PENGERUSI EKSEKUTIF

45 STATEMENT OF CORPORATE GOVERNANCEPENYATA TADBIR URUS KORPORAT

Cover Rationale Rasional Muka Depan

Water, being the most basic natural resource referred toas “blue gold”, with huge investment made by the Stateand its substantial ownership of water treatment plants,dams and distribution works and the immovable assets,should not become a commodity vulnerable to the profit-motive but instead remains in the hands of theGovernment.

Air, sumber paling asas alam semulajadi yang dianggappermata paling berharga, dengan pelaburan besar olehKerajaan Negeri dan pemilikan yang penting di dalam loji-loji rawatan air, empangan-empangan dan kerja-kerjapengagihan serta lain-lain aset berkaitan air, tidaksepatutnya menjadi satu komoditi utama yangbermotifkan keuntungan tetapi terus dimiliki dan dikawaloleh Kerajaan.

62 STATEMENT ON INTERNAL CONTROLSPENYATA KAWALAN DALAMAN

68 AUDIT COMMITTEE REPORTLAPORAN JAWATANKUASA AUDIT

76 CORPORATE SOCIAL RESPONSIBILITYTANGGUNGJAWAB SOSIAL KORPORAT

78 CORPORATE CALENDARKALENDAR KORPORAT

82 HUMAN RESOURCE REVIEWLAPORAN SUMBER MANUSIA

89 FINANCIAL STATEMENTSPENYATA KEWANGAN

183 ANALYSIS OF SHAREHOLDINGSANALISA PEGANGAN SAHAM

186 LIST OF GROUP PROPERTIESSENARAI HARTANAH KUMPULAN

190 CORPORATE DIRECTORYDIREKTORI KORPORAT

PROXY FORMBORANG PROKSI

KUMPULAN PERANGSANG SELANGOR BERHAD 23737-Kannual report 2008 laporan tahunan

P A G E 2

The leading integrated provider ofInfrastructure and Utility services,leaving a legacy of pride andaccomplishment for the people.

Peneraju pembekal perkhidmatanInfrastruktur dan Utiliti yangbersepadu, mencipta warisankemegahan dan kecemerlanganuntuk rakyat.

VisionVisi


P A G E 3

• Lead and achieve a global presence in the industries we operate.

• Venture and participate in viable businesses with linkages to the Infrastructure and Utility industries.

• Ensure a quality working environment, which inspires our employees to superior standards of performance.

• Ensure sustainable financial performance with optimum returns to shareholders.

• Maintain quality Infrastructure and Utility services which surpass customers’ expectations.

• Always recognised as a caring, community oriented and environmental friendly organisation.

• Menerajui dan mencapai kecemerlangan global dalam industri-industri yang kami ceburi.

• Menerokai dan menyertai peluang-peluang perniagaan berdaya maju yang melibatkan bidang Infrastruktur dan Utiliti.

• Memastikan persekitaran kerja berkualiti yang memberi inspirasi kepada warga kerja kami untuk mencapai prestasi tinggi.

• Memastikan prestasi kewangan yang mapan dengan pulangan optimum kepada para pemegang saham.

• Mengekalkan perkhidmatan Infrastruktur dan Utiliti berkualiti yang melebihi jangkaan para pelanggan.

• Sentiasa dikenali sebagai organisasi yang prihatin, berorientasikan masyarakat dan mesra alam.

MissionMisi


P A G E 4

KPS is geared to become a global infrastructure andwater utility player in an endeavour to strengthen itsearnings base and enhance shareholder value. KPS isleveraging its experience to capitalise on opportunitiesthat may arise in the global arena. KPS is well positionedto be a full-fledged water services provider in bothupstream and downstream activities. Being a watertreatment operator and service provider, it is envisagedthat KPS will be transformed into a major water player inthe country in the near future.

KPS holds strategic stakes in major water supply andwater related companies namely, Konsortium ABASSSdn Bhd (ABASS) 100% via Titisan Modal (M) Sdn Bhd,a 55% owned subsidiary of KPS, Syarikat Pengeluar AirSelangor Holdings Berhad (SPLASH) 30% via ViableChip (M) Sdn Bhd, a 100% owned subsidiary of KPS andTaliworks Corporation Berhad (Taliworks) 20%. KPS alsoholds 15% stake in Syarikat Bekalan Air Selangor SdnBhd (SYABAS), which distributes water to households inthe whole of Selangor, Kuala Lumpur and Putrajaya.

ABASS has a 30-year concession in the privatisation ofthe Sungai Semenyih Water Supply Scheme which has adesign output capacity of 545 million litres per day (MLD),produces and supplies treated water to Syarikat BekalanAir Selangor Sdn Bhd (SYABAS) which in turn distributesthe water to households in the southern part of Selangor,Kuala Lumpur, Putrajaya, Cyberjaya and the newdevelopment areas in Sepang.

SPLASH is the concession company for Sungai SelangorWater Supply Scheme Phase 1 and Phase 3. which isbuilt and operated under a 30 year concession withoutput capacity of 950 MLD and 1,050 MLD respectively.SPLASH produces and supplies treated water toSYABAS which in turn distributes the water to householdsin northern regions of Selangor and Kuala Lumpur.

Taliworks is involved in management, operation andmaintenance of the SSP1 water treatment plant thatcurrently supplies to large areas of Kuala Lumpur andcentral Selangor. Taliworks also operates and maintainsthe entire water supply and distribution facilities in PulauLangkawi, Kedah and the Sungai Baru water treatmentplant in Perlis for a 25 year contract.

In a recent development, KDEB the holding company ofKPS, received the mandate from the FederalGovernment to lead the consolidation of water services inSelangor, Kuala Lumpur and Putrajaya. As the utility &infrastructure arm of the KDEB Group, KPS will take thelead in the consolidation once the plan crystallises.

Other than water concessions, KPS owns 57% stake inlisted property developer Kumpulan Hartanah SelangorBhd and 20% stake in Sistem Penyuraian Trafik KL BaratHoldings Sdn Bhd (SPRINT), the concessionaire of theSPRINT highway in the Klang Valley.

Our Profile

Established on 11 August 1975,Kumpulan Perangsang SelangorBerhad (KPS) was listed on theMain Board of Bursa MalaysiaSecurities Berhad on 22 July 2003with an authorised capital of RM1.0billion and an enlarged paid-upcapital of RM475.664 million. As at31 December 2008 KPS’s marketcapitalisation stood at RM680.0million. The major shareholder ofKPS is Kumpulan Darul EhsanBerhad (KDEB), which holds 60.12%equity interest.

Stilling Basin - Sungai Semenyih Dam


P A G E 5

KPS sedang bergerak sebagai peneraju utama dalamindustri utiliti air dan infrastruktur di peringkat global bagimengukuhkan sumber pendapatan dan meningkatkannilai pemegang saham. KPS berada di kedudukan yangbaik untuk menjadi peneraju dan merebut peluang-peluang perniagaan di peringkat global dalam aktiviti-aktiviti huluan dan hiliran bagi perkhidmatan utiliti air.Pengalaman luas sebagai pembekal perkhidmatan danoperator rawatan air mampu menjadikan KPS sebagaipemain utama dalam industri air negara dalam masaterdekat.

Ketika ini, KPS memegang kepentingan strategik didalam beberapa syarikat pembekal air utama dansyarikat yang berkaitan pengurusan air sepertiKonsortium ABASS Sdn Bhd (ABASS) 100% melaluiTitisan Modal (M) Sdn Bhd, di mana KPS memegang55% saham, Syarikat Pengeluar Air Selangor HoldingsBerhad (SPLASH) 30% melalui Viable Chip (M) Sdn Bhddi mana KPS memegang 100% kepentingan danTaliworks Corporation Berhad (Taliworks) 20%. KPS jugamemegang 15% kepentingan di dalam Syarikat BekalanAir Selangor Sdn Bhd (SYABAS), sebuah syarikat yangmembekalkan air bersih kepada pengguna-pengguna diSelangor, Kuala Lumpur dan Putrajaya.

ABASS memegang konsesi selama 30 tahun di dalamSkim Bekalan Air Sungai Semenyih dengan kapasitipengeluaran air terawat sebanyak 545 juta liter sehari(JLH) yang disalurkan kepada SYABAS bagi bekalan airbersih kepada pengguna-pengguna di kawasan selatanSelangor, Kuala Lumpur, Putrajaya, Cyberjaya dankawasan pembangunan baru di Sepang.

SPLASH adalah syarikat konsesi bagi Skim Bekalan AirSungai Selangor Fasa 1 dan Fasa 3 yang beroperasi dibawah konsesi selama 30 tahun dengan kapasitipengeluaran air terawat masing-masing sebanyak 950JLH dan 1,050 JLH. SPLASH menghasilkan danmenyalurkan bekalan air yang dirawat kepada SYABASuntuk disalurkan kepada pengguna-pengguna dibahagian utara Selangor dan Kuala Lumpur.

Taliworks terlibat di dalam pengurusan, operasi danpenyelenggaraan loji rawatan SSP1 yang membekalkanair terawat ke sebahagian besar kawasan Kuala Lumpurdan bahagian tengah Selangor. Taliworks juga terlibatdalam operasi dan penyelenggaraan keseluruhanbekalan dan agihan kemudahan-kemudahan air di PulauLangkawi, Kedah dan loji rawatan air Sungai Baru diPerlis bagi tempoh 25 tahun.

Dalam perkembangan semasa, KDEB sebagai syarikatinduk KPS telah menerima mandat daripada KerajaanPersekutuan bagi menerajui cadangan penggabungansemua perkhidmatan air di Selangor, Kuala Lumpur danPutrajaya. Sebagai syarikat utiliti & infrastruktur di bawahKDEB, KPS bakal dilantik sebagai penggerak utamaproses penggabungan tersebut sebaik sahaja pelantikanKDEB dimuktamadkan.

Selain daripada konsesi air, KPS juga memegang 57%saham di dalam syarikat pemaju hartanah tersenarai,Kumpulan Hartanah Selangor Berhad dan 20%kepentingan di dalam Sistem Penyuraian Trafik KL BaratHoldings Sdn Bhd (SPRINT), syarikat konsesi bagilebuhraya SPRINT di Lembah Klang.

Profil Kami

Kumpulan Perangsang SelangorBerhad (KPS) ditubuhkan pada 11Ogos 1975 dan disenaraikan di PapanUtama, Bursa Malaysia SecuritiesBerhad pada 22 Julai 2003 denganmodal dibenarkan RM1.0 bilion danmodal berbayar RM475.664 juta.Sehingga 31 Disember 2008, KPSmempunyai modal pasaran sebanyakRM680 juta. Pemegang saham utamaKPS ialah Kumpulan Darul EhsanBerhad (KDEB), yang memegang60.12% kepentingan ekuiti.


“We need to appreciate that privatisation is not asubstitute to efficient and effective water servicesparticularly in respect of long term financialsustainability. It is imperative that we recognisewater services should be in the hands of theGovernment and not live off the cost of futuregeneration.”


Sungai Semenyih Water Treatment Plant

“Kita perlu menghargai bahawa penswastaanadalah bukan pengganti kepada tahapperkhidmatan air yang efisyen dan efektif,terutamanya jika dilihat dari segi kemampuankewangan jangka panjang. Perlu diakuibahawa perkhidmatan air adalah sangatpenting dikendalikan oleh Kerajaan untukmengelakkan implikasi besar kepada generasimasa hadapan.”


P A G E 8

AGENDA

ORDINARY BUSINESS:

1. To receive and adopt the Audited FinancialStatements for the financial year ended 31 December2008 and the Reports of the Directors and Auditorsthereon. (Resolution 1)

2. To approve a final dividend of 4% less 25% incometax for the year ended 31 December 2008.

(Resolution 2)

3. To re-elect the following Directors who retire byrotation pursuant to Article 84 of the Company'sArticles of Association:-

i. YBhg Dato' Azlan bin Hashim (Resolution 3)

ii. YBhg Dato' Haji Ab Halim bin Mohyiddin(Resolution 4)

4. To re-appoint Tuan Haji Zain Azahari bin ZainalAbidin, who retires pursuant to Section 129(2) of theCompanies Act, 1965 (Resolution 5)

5. To approve the Directors' fees of RM342,292.00 forthe financial year ended 31 December 2008.

(Resolution 6)

6. To re-appoint Messrs. Ernst & Young as Auditors ofthe Company and to authorise the Directors to fixtheir remuneration. (Resolution 7)

AS SPECIAL BUSINESS:

To consider and, if thought fit, pass with or without anymodifications, the following Ordinary Resolution:

7. Authority for the Board of Directors to issue and allotshares pursuant to Section 132D of the CompaniesAct, 1965

"THAT pursuant to Section 132D of the CompaniesAct, 1965, the Board of Directors be and are herebyempowered to issue shares in the Company at anytime until the conclusion of the next Annual GeneralMeeting and upon such terms and conditions and forsuch purposes as the Board of Directors may, in itsabsolute discretion, deem fit provided that theaggregate number of shares to be issued does notexceed 10% of the issued share capital of theCompany for the time being.“ (Resolution 8)

ANY OTHER BUSINESS:

8. To transact any other ordinary business for which duenotice has been given.

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENTDATE

NOTICE IS ALSO HEREBY GIVEN that a final dividendof 4% less 25% income tax, if approved by shareholders,will be payable on 14 August 2009 to shareholdersregistered in the Records of Depositors at the close ofbusiness on 31 July 2009.

A depositor shall qualify for entitlement only in respect of:

a) Shares transferred to the Depositor’s SecuritiesAccount before 4.00 p.m on 31 July 2009 in respectof ordinary shares.

Notice Of AnnualGeneral Meeting

NOTICE IS HEREBY GIVEN THAT the Thirty Second Annual GeneralMeeting of Kumpulan Perangsang Selangor Berhad will be held at theKayangan Ballroom, Quality Hotel Shah Alam, Persiaran Perbandaran,40000 Shah Alam, Selangor Darul Ehsan, on Thursday,18 June 2009 at 2.30 p.m. for the following purposes:


P A G E 9

b) Shares bought on the Bursa Malaysia SecuritiesBerhad on a cum entitlement basis according to theRules of the Bursa Malaysia Securities Berhad.

By Order of the Board

MAZIYAH BINTI MOHD ZIN (MACS 01276)HASHIMAH BINTI MOHD ISA (MACS 01269) Joint Company Secretaries

Shah Alam27 May 2009

Notes:

1. Every member is entitled to appoint at least one (1) proxyor in the case of a corporation, to appoint a representativeto attend and vote in his place. A proxy need not be amember of the Company.

2. The Proxy Form must be signed by the appointer or hisattorney duly authorised in writing or if the appointer is acorporation, either under seal or under the hand of anofficer or attorney duly authorised. In the case of jointholdings, the signature of the first named holder is sufficient.

3. If the Proxy Form is returned without indication as to howthe proxy shall vote, the proxy will vote or abstain, as hethinks fit.

4. If the name is not inserted in the space for the name of yourproxy, the Chairman of the AGM will act as your proxy.

5. The Proxy Form must be deposited at the Registrar's Officeof Symphony Shares Registrars Sdn Bhd, Level 26, MenaraMulti Purpose, Capital Square, No. 8, Jalan MunshiAbdullah, 50100 Kuala Lumpur, not less than forty-eight(48) hours before the time of holding the AGM or anyadjournment thereof, or in the case of a poll, not less thantwenty-four (24) hours before the time appointed for thetaking of the poll.

Explanatory Note on Ordinary Business

1. Ordinary Resolution 5• Re-appointment of Director over 70 years of age

The Ordinary Resolution No. 5 proposed under item 4 isin accordance with section 129(6) of the Companies Act,1965 which requires that a separate resolution be

Notice of AnnualGeneral Meeting

passed to re-appoint Tuan Haji Zain Azahari bin ZainalAbidin who is over 70 years of age as Director of theCompany and to hold office until the conclusion of thenext Annual General Meeting of the Company. This Resolution must be passed by a majority of not lessthan three fourths of such Members of the Company asbeing entitled to vote in person or where proxies areallowed by proxy at the Annual General Meeting of theCompany.

Explanatory Note on Special Business

2. Ordinary Resolution 8• Authority for the Board of Directors to issue

and allot shares pursuant to Section 132D ofthe Companies Act, 1965

The Company and/or its subsidiaries ("the Group") maypursue business opportunities in prospective areas so as tobroaden the operational base and earnings potential of theGroup. Such plans may require the issue of new shares notexceeding ten (10) per centum of the Company’s issuedshare capital. With the passing of the Ordinary Resolution 8mentioned above by the shareholders of the Company at theforthcoming Annual General Meeting, the Directors wouldavoid delay and cost of convening general meetings toapprove the issue of new shares for such purposes.

STATEMENT ACCOMPANYING NOTICE OF ANNUALGENERAL MEETING

1. Directors who are standing for re-election at theThirty Second Annual General Meeting of theCompany are:

i. YBhg Dato' Haji Azlan bin Hashim(Resolution 3)

ii. YBhg Dato' Haji Ab Halim bin Mohyiddin(Resolution 4)

iii. Tuan Haji Zain Azahari bin Zainal Abidin(Resolution 5)

The profiles of the Directors standing for re-electionare on pages 21 to 23.


P A G E 10

AGENDA

URUSAN BIASA:

1. Menerima Penyata Kewangan yang telah diaudit bagitahun kewangan berakhir 31 Disember 2008 danLaporan Pengarah dan Juruaudit mengenainya.

(Resolusi 1)

2. Meluluskan dividen akhir sebanyak 4% tolak 25%cukai pendapatan bagi tahun berakhir 31 Disember2008. (Resolusi 2)

3. Untuk memilih semula Pengarah-pengarah berikutyang bersara mengikut pusingan menurutperuntukan Artikel 84 Tataurusan Syarikat:-

i. YBhg Dato' Azlan bin Hashim (Resolusi 3)

ii. YBhg Dato' Haji Ab Halim bin Mohyiddin(Resolusi 4)

4. Untuk melantik semula Tuan Haji Zain Azahari binZainal Abidin yang bersara menurut Seksyen 129(2)Akta Syarikat 1965. (Resolusi 5)

5. Meluluskan yuran Pengarah sebanyakRM342,292.00 bagi tahun kewangan berakhir 31Disember 2008. (Resolusi 6)

6.Melantik semula Tetuan Ernst & Young sebagaiJuruaudit Syarikat dan memberi kuasa kepadaLembaga Pengarah untuk menetapkan ganjaranmereka. (Resolusi 7)

URUSAN KHAS:

Menimbang dan sekiranya difikirkan wajar, meluluskandengan atau tanpa sebarang pindaan, Resolusi Biasaberikut:

7. Kuasa untuk Lembaga Pengarah menerbit danmemperuntukkan saham menurut Seksyen 132DAkta Syarikat, 1965

"BAHAWA dengan ini, Lembaga Pengarah diberikuasa menurut Seksyen 132D Akta Syarikat, 1965,untuk menerbitkan saham Syarikat pada bila-bilamasa sehingga tamatnya Mesyuarat Agung TahunanSyarikat yang akan datang, tertakluk kepada termadan syarat yang telah ditentukan dan untuk tujuan-tujuan yang difikirkan wajar oleh Lembaga Pengarah,dengan syarat jumlah saham yang diterbitkan tidakmelebihi 10% dari modal saham terbitan Syarikatpada masa ini.” (Resolusi 8)

SEBARANG URUSAN LAIN:

8. Melaksanakan sebarang urusan biasa yang lain dimana notis secukupnya telah diberikan.

NOTIS KELAYAKAN MENERIMA DAN TARIKHPEMBAYARAN DIVIDEN

NOTIS ADALAH JUGA DENGAN INI DIBERIKANbahawa dividen akhir sebanyak 4% tolak 25% cukaipendapatan, sekiranya diluluskan oleh pemegang-pemegang saham, akan dibayar pada 14 Ogos 2009kepada pemegang-pemegang saham yang berdaftardalam Rekod Pendeposit pada penutupan perniagaanpada 31 Julai 2009.

Seseorang pendeposit akan layak untuk haknya hanyaberhubung dengan:

a) Saham-saham yang dipindahkan kepada AkaunSekuriti Pendeposit sebelum jam 4.00 petang pada31 Julai 2009 berhubung dengan saham biasa.

b) Saham-saham yang dibeli pada Bursa MalaysiaSecurities Berhad atas dasar keberhakan bersamaselaras dengan peraturan-peraturan Bursa MalaysiaSecurities Berhad.

Notis MesyuaratAgung Tahunan

DENGAN INI DIMAKLUMKAN BAHAWA Mesyuarat Agung TahunanKumpulan Perangsang Selangor Berhad yang ke Tiga Puluh Dua akandiadakan di Kayangan Ballroom, Quality Hotel Shah Alam, PersiaranPerbandaran, 40000 Shah Alam, Selangor Darul Ehsan, pada hariKhamis, 18 Jun 2009, jam 2.30 petang untuk membincangkan perkara-perkara berikut:


P A G E 11

Dengan Perintah Lembaga Pengarah

MAZIYAH BINTI MOHD ZIN (MACS 01276)HASHIMAH BINTI MOHD ISA (MACS 01269) Setiausaha Syarikat Bersama

Shah Alam27 Mei 2009

Nota-Nota:

1. Setiap pemegang saham berhak melantik sekurang-kurangnya seorang (1) proksi atau jika sebuah syarikat,berhak melantik wakil untuk menghadiri dan mengundi bagipihaknya. Proksi tersebut tidak semestinya pemegangsaham Syarikat.

2. Borang Proksi mesti ditandatangani oleh pelantik ataupeguam yang telah diberi kuasa secara bertulis atausekiranya pelantik adalah sebuah syarikat, mestilah denganmemeterai atau ditandatangani oleh pegawai atau peguamyang diberi kuasa. Di dalam hal pegangan bersama,tandatangan pemegang pertama adalah mencukupi.

3. Sekiranya Borang Proksi dikembalikan tanpa menjelaskanbagaimana proksi harus mengundi, proksi akan mengundiatau tidak mengundi seperti mana yang difikirkan sesuai.

4. Jika tiada nama terdapat di dalam ruang bagi proksi anda,Pengerusi Mesyuarat akan bertindak sebagai proksi anda.

5. Borang Proksi mestilah dihantar ke Pejabat Pendaftar,Symphony Shares Registrars Sdn Bhd, Lantai 26, MenaraMulti Purpose, Capital Square, No. 8, Jalan MunshiAbdullah, 50100 Kuala Lumpur, tidak kurang dari empatpuluh lapan (48) jam sebelum Mesyuarat ditetapkan ataupada sebarang penangguhannya, atau dalam halpengundian, tidak kurang dari dua puluh empat (24) jamsebelum masa yang ditetapkan untuk mengundi.

Nota Penjelasan mengenai Urusan Biasa

1. Resolusi Biasa 5• Pelantikan semula Pengarah yang berumur

lebih 70 tahun

Resolusi Biasa No. 5 yang dicadangkan di bawahperkara 4 adalah selaras dengan Seksyen 129(6) AktaSyarikat, yang mensyaratkan resolusi yang berasinganperlu diluluskan untuk memilih semula Tuan Haji ZainAzahari bin Zainal Abidin, yang berumur lebih daripada

70 tahun sebagai Pengarah Syarikat dan akanmemegang jawatan sehingga Mesyuarat AgungTahunan Syarikat yang berikutnya. Resolusi ini mestidiluluskan secara majoriti dengan tidak kurang daripadatiga perempat ahli-ahli Syarikat yang berhak mengundihadir ataupun proksinya, setakat yang dibenarkan olehproksi di Mesyuarat Agung Tahunan Syarikat.

Nota Penjelasan mengenai Urusan Khas

2. Resolusi Biasa 8• Kuasa untuk Lembaga Pengarah menerbit

dan memperuntukkan saham menurutSeksyen 132D Akta Syarikat, 1965

Syarikat dan/atau subsidiarinya ("Kumpulan") akan terusmencari peluang-peluang perniagaan di bidang-bidangyang berpotensi bagi memperluaskan asas operasi danpotensi pendapatan Kumpulan. Rancangan inimungkin memerlukan Syarikat menerbitkan saham-saham baru tidak melebihi sepuluh (10) peratusdaripada modal terbitan Syarikat. Dengan meluluskanResolusi Biasa 8 yang dimaklumkan di atas olehpemegang-pemegang saham Syarikat di MesyuaratAgung Tahunan yang akan datang, Pengarah-pengarahakan dapat mengelakkan kelewatan dan kos untukmengadakan mesyuarat-mesyuarat umum bagimeluluskan penerbitan saham-saham baru bagi tujuanberkenaan.

PENYATA BERSAMA NOTIS MESYUARATAGUNG TAHUNAN

1. Pengarah-pengarah yang menawarkan diri untukdipilih semula di Mesyuarat Agung Tahunan Syarikatyang ke Tiga Puluh Dua adalah seperti berikut:

i. YBhg Dato' Azlan bin Hashim (Resolusi 3)

ii. YBhg Dato' Haji Ab Halim bin Mohyiddin(Resolusi 4)

iii. Tuan Haji Zain Azahari bin Zainal Abidin(Resolusi 5)

Profil Pengarah-pengarah yang akan dipilih semulaterdapat di muka surat 21 hingga 23.

Notis MesyuaratAgung Tahunan


P A G E 12

Group’s Financial HighlightsRingkasan Kewangan Kumpulanfor the year ended 31 December/untuk tahun berakhir 31 Disember

2004 2005 2006 2007 2008RM’000 RM’000 RM’000 RM’000 RM’000

Revenue / Perolehan 236,227 308,887 378,649 425,602 305,827

(Loss) / Profit Before Tax and “Zakat” (13,133) (123,802) 28,295 61,305 412(Kerugian) / Keuntungan Sebelum Cukai dan Zakat

(Loss) / Profit After Tax and “Zakat” (20,111) (123,175) 18,222 36,060 (11,025)(Kerugian) / Keuntungan Selepas Cukai dan Zakat

(Loss) / Profit Attributable To Equity Holders 23,479 (48,761) 18,807 31,998 1,709(Kerugian) / Keuntungan yang Diagihkan

kepada Pemegang-pemegang Saham

Gross Dividend 8,628 12,942 17,256 18,832 19,017Dividen Kasar

Paid-up Capital 431,404 431,404 431,404 470,812 475,664Modal Berbayar

Shareholders' Equity 770,527 715,554 839,053 919,133 914,108Ekuiti Pemegang Saham

Total Assets Employed 2,316,113 2,193,674 3,150,348 3,130,239 3,175,238Jumlah Asset Digunakan

Total Borrowings 429,004 482,262 1,378,346 1,350,112 1,378,122Jumlah Pinjaman

Financial Ratios / Nisbah-nisbah Kewangan

2004 2005 2006 2007 2008

Gross Dividend Per Share (%) 2.00 3.00 4.00 4.00 4.00Dividen Kasar Sesaham (%)

Debt / Equity (Times) 0.44 0.57 1.45 1.26 1.31Hutang / Ekuiti (Kali)

Net Earnings / (Loss) Per Share (Sen) 5.44 (11.30) 4.36 7.26 0.36Pendapatan / (Kerugian) Bersih Sesaham (Sen)

Net Assets Per Share (RM) 2.25 1.94 2.20 2.28 2.21Aset Bersih Sesaham (RM)


P A G E 13

Group’s Financial HighlightsRingkasan Kewangan Kumpulan

for the year ended 31 December/untuk tahun berakhir 31 Disember

REVENUEPEROLEHAN(RM’000)

378,64

9

425,60

2

305,82

7

18,807

31,998

1,70

9

06 07 08

PROFIT ATTRIBUTABLE TO EQUITY HOLDERSKEUNTUNGAN YANG DIAGIHKANKEPADA PEMEGANG-PEMEGANGSAHAM(RM’000)

06 07 08

28,295

61,305

06 07 08

4.36

7.26

4.00

4.00

4.00

NET EARNINGS PER SHAREPENDAPATAN BERSIHSESAHAM (SEN)

06 07 08

GROSS DIVIDEND PER SHARE DIVIDEN KASAR SESAHAM (%)

06 07 08

PROFIT BEFORE TAXAND “ZAKAT”KEUNTUNGAN SEBELUM CUKAIDAN ZAKAT(RM’000)

NET ASSETS PER SHARE ASET BERSIH SESAHAM (RM)

2.20

2.28

2.21

06 07 08

412

0.36


P A G E 14

BOARD OF DIRECTORS / LEMBAGA PENGARAH

YBHG DATO' HAJI ABD KARIM BIN MUNISARDSSA, SSA, KMN, ASA

Executive Chairman/Pengerusi Eksekutif

ENCIK WONG YIEN KIMSIS, PPT

Executive Director/Pengarah Eksekutif

YBHG DATO' HAJI AZLAN BIN HASHIM DSSA, DSNS

Independent Non-Executive Director/Pengarah Bukan Eksekutif Bebas

YBHG DATO' HAJI AB HALIM BIN MOHYIDDINDPMS

Independent Non-Executive Director/Pengarah Bukan Eksekutif Bebas

TUAN HAJI ZAIN AZAHARI BIN ZAINAL ABIDINIndependent Non-Executive Director/Pengarah Bukan Eksekutif Bebas

Corporate InformationMaklumat Korporat

AUDIT COMMITTEE MEMBERSAHLI-AHLI JAWATANKUASAAUDIT

YBHG DATO' HAJI AB HALIMBIN MOHYIDDINDPMSChairman - IndependentNon-Executive DirectorPengerusi - Pengarah BukanEksekutif Bebas

YBHG DATO' HAJI AZLAN BINHASHIMDSSA, DSNSMember - IndependentNon-Executive DirectorAhli - Pengarah Bukan Eksekutif Bebas

TUAN HAJI ZAIN AZAHARIBIN ZAINAL ABIDINMember - IndependentNon-Executive DirectorAhli - Pengarah Bukan Eksekutif Bebas

EMPLOYEE SHARE OPTIONSCHEME (ESOS) COMMITTEEMEMBERSAHLI-AHLI JAWATANKUASASKIM OPSYEN SAHAMKAKITANGAN (“ESOS”)

YBHG DATO' HAJI AZLAN BINHASHIMDSSA, DSNSChairman - IndependentNon-Executive DirectorPengerusi - Pengarah BukanEksekutif Bebas

YBHG DATO’ HAJI ABD KARIMBIN MUNISARDSSA, SSA, KMN, ASAMember - Executive ChairmanAhli - Pengerusi Eksekutif

ENCIK WONG YIEN KIMSIS, PPTMember - Executive DirectorAhli - Pengarah Eksekutif

YM RAJA AHMAD HIDZIRBIN RAJA MUHAMADMember - Group General ManagerHuman Resource & AdministrationAhli - Pengurus Besar Sumber Manusia& Pentadbiran Kumpulan

NOMINATION COMMITTEEMEMBERSAHLI-AHLI JAWATANKUASAPENCALONAN


YBHG DATO' HAJI AB HALIMBIN MOHYIDDINDPMSMember - IndependentNon-Executive DirectorAhli - Pengarah Bukan Eksekutif Bebas

TUAN HAJI ZAIN AZAHARIBIN ZAINAL ABIDINMember - IndependentNon-Executive DirectorAhli - Pengarah Bukan Eksekutif Bebas

REMUNERATION COMMITTEEMEMBERS AHLI-AHLI JAWATANKUASAIMBUHAN


YBHG DATO' HAJI AB HALIMBIN MOHYIDDINDPMSMember - IndependentNon-Executive DirectorAhli - Pengarah Bukan Eksekutif Bebas

ENCIK WONG YIEN KIMSIS, PPTMember - Executive DirectorAhli - Pengarah Eksekutif


P A G E 15

COMPANY SECRETARIESSETIAUSAHA-SETIAUSAHASYARIKAT

Puan Maziyah binti Mohd ZinNo. 108, Jalan SSAAS 9/6Seksyen 940000 Shah AlamSelangor Darul Ehsan

Puan Hashimah binti Mohd IsaPPTNo. 48, Jalan SS19/5B, 47500 Subang JayaSelangor Darul Ehsan

REGISTERED OFFICEPEJABAT BERDAFTAR

Tingkat 16, Plaza PerangsangPersiaran Perbandaran40000 Shah AlamSelangor Darul EhsanTel: 03-5510 3999 Fax: 03-5510 9977

PRINCIPAL BANKERSBANK-BANK UTAMA

RHB Bank BerhadNo. 16 & 18 Jalan Tengku Ampuan Zabedah D9/D40100 Shah AlamSelangor Darul Ehsan

OCBC Bank Berhad15th Floor, Menara OCBC18, Jalan Tun Perak50050 Kuala Lumpur

EON Bank BerhadNo. 34, Jalan Perbahan SatuSeksyen 26/2A, 40000 Shah AlamSelangor Darul Ehsan

AUDITORJURUAUDIT

Messrs Ernst & YoungLevel 23A, Menara MileniumJalan DamanlelaPusat Bandar Damansara50490 Kuala Lumpur

LISTINGPENYENARAIAN

Bursa Malaysia Securities BerhadMain Board Papan Utama Bursa MalaysiaSecurities Berhad (22 July/Julai 2003)

SHARE REGISTRARPENDAFTAR SAHAM

Symphony Share Registrars Sdn BhdLevel 26, Menara Multi-PurposeCapital SquareNo. 8, Jalan Munshi Abdullah50100 Kuala Lumpur

MANAGEMENTPENGURUSAN

Office of Executive Chairman Pejabat Pengerusi Eksekutif

YBhg Dato' Haji Abd Karimbin MunisarDSSA, SSA, KMN, ASAExecutive Chairman/PengerusiEksekutif

Office of Executive DirectorPejabat Pengarah Eksekutif

Encik Wong Yien KimSIS, PPTExecutive Director/Pengarah Eksekutif

Finance Division Bahagian Kewangan

Encik Wong Yien KimSIS, PPT Executive Director/Pengarah Eksekutif

Corporate Planning DivisionBahagian Perancang Korporat

Encik Mohd Noor bin IsmailPPTGeneral Manager/Pengurus Besar

Management Audit DivisionBahagian Audit Pengurusan

Encik Revi PillaiASAGeneral Manager/Pengurus Besar

Human Resource &Administration DivisionBahagian Sumber Manusia &Pentadbiran

YM Raja Ahmad Hidzir bin Raja MuhamadGroup General Manager/PengurusBesar Kumpulan

Infrastructure & Utility DivisionBahagian Infrastruktur & Utiliti

Tuan Haji Zulkifli bin HussainPPTGeneral Manager/Pengurus Besar

Water Management DivisionBahagian Pengurusan Air

Encik Abdul Karim bin EndutGeneral Manager/Pengurus Besar

Secretarial DivisionBahagian Kesetiausahaan

Puan Hashimah binti Mohd IsaPPTCompany Secretary/Setiausaha Syarikat

Corporate InformationMaklumat Korporat


P A G E 16

Corporate StructureStruktur Korporat

Associated CompaniesSyarikat-Syarikat Bersekutu

Subsidiary CompaniesAnak-Anak Syarikat

56.57%

60%

55%

Kumpulan HartanahSelangor Berhad

Perangsang WaterManagement Sdn Bhd

Taliworks Corporation Berhad

Sistem PenyuraianTrafik KL Barat

Holdings Sdn Bhd

Kuala Langat MiningSdn Bhd

KPS-HCM Sdn Bhd

Hydrovest Sdn Bhd

Titisan Modal (M) Sdn Bhd

100%Viable Chip (M) Sdn Bhd

99.98%Cash Band (M) Berhad

Aqua-Flo Sdn Bhd

Central Spectrum (M)Sdn Bhd

40%

20%

20%

41%

30%

60%

Syarikat Pengeluar AirSelangor Holdings Berhad

30%

Chemindus Sdn Bhd25%

Perangsang Hotel &Properties Sdn Bhd

100%

100%

KDE Recreation Berhad

Perangsang TemplerGolf Club Division

100%Konsortium ABASSSdn Bhd

49%

76.67%

Kum

pula

n Pe

rang

sang

Sela

ngor

Ber

had


P A G E 17

Dengan menyelaraskan keazaman kami untukcemerlang melalui tindakan yang tegasberlandaskan perancangan yang rapi danketepatan strategi-strategi, kami telahmelangkaui jangkaan kami.

By matching our determinationto excel through decisiveaction taken on the back of wellplanned and well timedstrategies, we surpassed ourexpectations.

Driving growththrough decisive actionMenggerak pertumbuhan melaluitindakan tegas

YBhg Dato’ HajiAbd Karim Bin MunisarDSSA, SSA, KMN, ASA



P A G E 19

YBhg Dato’ Haji Abd Karim Bin Munisar, DSSA, SSA,KMN, ASA, a Malaysian, aged 58, was appointedExecutive Chairman of Kumpulan Perangsang SelangorBerhad on 6 September 2004. He holds a Bachelor ofEconomics (Hons) from University of Malaya, AdvancedDiploma in Economic Development (with Distinction) fromUniversity of Manchester, UK and Master in BusinessAdministration from University of Edinburgh, Scotland.He also attended an Advance Course in Urban PlanningJICA at Tokyo, Japan.

Dato’ Haji Abd Karim was the President of Petaling JayaMunicipal Council in 2003 and 2004. Prior to that, he wasthe District Officer cum Acting President of SepangDistrict Council from 1998–2003. Dato’ Haji Abd Karimalso served as the President of Ampang Jaya MunicipalCouncil in 1992-1996.

He was the Chief Assistant State Secretary of Selangor(Local Authority Division) in 1987; Deputy Director ofKlang Valley Planning Secretariat, Prime MinisterDepartment in 1982; Chief Assistant District Officer 1(Land) of Kuantan District Office and Chief AssistantState Secretary of Pahang (Housing Division) in 1980.

Between 1975–1980, Dato’ Haji Abd Karim held differentpositions in various districts in the State of Perak asAssistant District Officer, South Kinta; Chairman of SouthKinta District Council; Assistant District Officer 1, Kampar;Chairman of Kampar/Gopeng Municipal Council and alsoAssistant State Secretary of Perak. In 1974, he was theAssistant Director at the Ministry of Finance, Malaysia.

Dato’ Haji Abd Karim currently sits on the Board ofKumpulan Darul Ehsan Berhad as President, a positionheld since 6 September 2004. Dato’ Haji Abd Karim isalso the Executive Chairman of Kumpulan HartanahSelangor Berhad and Chairman of Taliworks CorporationBerhad.

YBhg Dato’ Haji Abd Karim Bin Munisar, DSSA, SSA,KMN, ASA, warganegara Malaysia, berusia 58 tahundilantik sebagai Pengerusi Eksekutif KumpulanPerangsang Selangor Behad pada 6 September 2004.Beliau memiliki Ijazah Sarjana Muda Ekonomi (Kepujian)dari Universiti Malaya, Diploma Lanjutan dalam bidangPembangunan Ekonomi (dengan Cemerlang) dariUniversity of Manchester, UK dan Ijazah SarjanaPentadbiran Perniagaan dari University of Edinburgh,Scotland. Beliau juga telah menghadiri Advance Coursein Urban Planning JICA di Tokyo, Jepun.

Dato’ Haji Abd Karim adalah Yang Dipertua MajlisPerbandaran Petaling Jaya pada tahun 2003 hingga2004. Sebelum itu, beliau adalah Pegawai Daerah danPemangku Yang Dipertua Majlis Daerah Sepangdaripada 1998–2003. Dato’ Haji Abd Karim pernahmenjadi Yang Dipertua Majlis Perbandaran Ampang Jayapada tahun 1992–1996.

Beliau pernah berkhidmat sebagai Ketua PenolongSetiausaha Kerajaan Negeri Selangor (BahagianKerajaan Tempatan) pada tahun 1987; TimbalanPengarah, Urusetia Perancangan Lembah Klang,Jabatan Perdana Menteri pada tahun 1982; KetuaPenolong Pegawai Daerah 1 (Tanah) Pejabat DaerahKuantan dan Ketua Penolong Setiausaha KerajaanNegeri Pahang (Bahagian Perumahan).

Di antara 1975–1980, Dato’ Haji Abd Karim telahmemegang beberapa jawatan di beberapa daerah dalamnegeri Perak sebagai Penolong Pegawai Daerah, KintaSelatan; Pengerusi Majlis Daerah Kinta Selatan;Penolong Pegawai Daerah 1, Kampar; Pengerusi MajlisDaerah Kampar dan Penolong Setiausaha KerajaanNegeri Perak. Pada tahun 1974, beliau menjawatjawatan Penolong Pengarah di Kementerian Kewangan,Malaysia.

Dato’ Haji Abd Karim menganggotai Lembaga KumpulanDarul Ehsan Berhad sebagai Presiden, jawatan yangdisandang sejak 6 September 2004. Dato’ Haji AbdKarim juga adalah Pengerusi Eksekutif KumpulanHartanah Selangor Berhad dan Pengerusi TaliworksCorporation Berhad.

Profile Of Board Of DirectorsProfil Lembaga Pengarah


P A G E 20

Encik Wong Yien Kim, SIS, PPT, a Malaysian, aged 55,was appointed to the Board of Kumpulan PerangsangSelangor Berhad (KPS) as Executive Director on 18September 2007. He obtained his professionalqualification from the Institute of Chartered Accountants,England and Wales in 1982.

Encik Wong joined KPS, a subsidiary company ofKumpulan Darul Ehsan Berhad in 1983 as Accountantand was appointed as Chief Accountant for several ofKPS’s subsidiaries. He served SAP Holdings Berhad forseven (7) years and held the position of Head of DivisionFinance prior to his present appointment. Encik Wongwas also the General Manager Finance at KPS, aposition held since 2000.

Encik Wong is a member of the Malaysian Institute ofAccountants and the Institute of Chartered Accountants,England and Wales.

Presently, Encik Wong also sits on the Board ofKumpulan Hartanah Selangor Berhad and TaliworksCorporation Berhad.

Encik Wong Yien Kim, SIS, PPT, warganegaraMalaysia, berusia 55 tahun telah dilantik ke LembagaPengarah Kumpulan Perangsang Selangor Berhad(KPS) sebagai Pengarah Eksekutif pada 18 September2007. Beliau mendapat pendidikan professional dariInstitute of Chartered Accountants, England dan Walespada tahun 1982.

Encik Wong mula berkhidmat dengan KPS, anak syarikatKumpulan Darul Ehsan Berhad pada tahun 1983 sebagaiAkauntan dan dilantik sebagai Ketua Akauntan dibeberapa anak syarikat KPS. Beliau berkhidmat di SAPHoldings Berhad selama tujuh (7) tahun dan memegangjawatan Ketua Bahagian Kewangan sebelum dilantik kejawatan yang disandang sekarang. Encik Wong jugamemegang jawatan Pengurus Besar Kewangan di KPSsejak tahun 2000.

Encik Wong ialah ahli Institut Akauntan Malaysia danInstitute of Chartered Accountants, England dan Wales.

Ketika ini, Encik Wong juga merupakan PengarahKumpulan Hartanah Selangor Berhad dan TaliworksCorporation Berhad.


Encik Wong Yien KimSIS, PPT


P A G E 21

YBhg Dato' Haji Azlan Bin Hashim, DSSA, DSNS, aMalaysian, aged 67 was appointed to the Board ofKumpulan Perangsang Selangor Berhad as Director on24 July 1989. He obtained his professional qualificationfrom the Institute of Chartered Accountants in Dublin in1966. Dato' Haji Azlan is a Fellow of the Institute ofChartered Accountants (Ireland), Economic DevelopmentInstitute (World Bank, Washington) and Institute ofBankers, Malaysia.

Upon graduation, he joined Malayan Railways in 1966and served till 1971. He was its Chief Accountant for two(2) years. In 1972, he became a partner of Messrs AzmanWong Salleh & Co., a public accounting firm, prior tobecoming the Managing Director of Arab-MalaysianDevelopment Berhad in 1982.

Presently, Dato' Haji Azlan is the Deputy Chairman ofAMMB Holdings Berhad and Chairman ofAmInternational (L) Limited and PT AmCapital Indonesia.He is currently the Non-Executive Director of AmFraserSecurities Pte Ltd and AmFraser International Pte Ltd.He also sits on the Boards of Metrod (M) Berhad,Paramount Corporation Berhad, Sapura IndustrialBerhad, Kesas Holdings Berhad, Global Carriers Berhad,Syarikat Permodalan & Perusahaan Selangor Berhadand Kumpulan Hartanah Selangor Berhad. He is alsoExecutive Chairman of Global Carriers Berhad.

YBhg Dato' Haji Azlan Bin Hashim, DSSA, DSNS,warganegara Malaysia, berusia 67 tahun, telah dilantikke Lembaga Pengarah Kumpulan Perangsang SelangorBerhad sebagai Pengarah pada 24 Julai 1989. Dato' HajiAzlan mendapat pendidikan profesional dari Institute ofChartered Accountants di Dublin pada tahun 1966. Dato'Haji Azlan adalah merupakan lulusan dari Institute ofChartered Accountants (Ireland), Economic DevelopmentInstitute (World Bank, Washington) dan Institute ofBankers, Malaysia.

Selepas tamat pengajian, beliau memulakan kerjayadengan Malayan Railways dari tahun 1966 hingga 1971di mana beliau menyandang jawatan sebagai KetuaAkauntan selama dua (2) tahun. Pada tahun 1972, beliaumenjadi rakan kongsi di Tetuan Azman Wong Salleh &Co., sebuah firma akauntan awam, sebelum menjadiPengarah Urusan Arab-Malaysian Development Berhadpada tahun 1982.

Ketika ini Dato' Haji Azlan adalah Timbalan PengerusiAMMB Holdings Berhad dan Pengerusi AmInternational(L) Limited dan PT AmCapital Indonesia. Beliau adalahPengarah Bukan Eksekutif di AmFraser Securities PteLtd dan AmFraser International Pte Ltd. Beliau jugamerupakan Pengarah bagi Metrod (M) Berhad,Paramount Corporation Berhad, Sapura IndustrialBerhad, Kesas Holdings Berhad, Global Carriers Berhad,Syarikat Permodalan & Perusahaan Selangor.Berhaddan Kumpulan Hartanah Selangor Berhad. Beliau jugaPengerusi Eksekutif untuk Global Carriers Berhad.


YBhg Dato’ Haji Azlan Bin Hashim DSSA, DSNS


P A G E 22

YBhg Dato' Haji Ab Halim Bin Mohyiddin, DPMS, aMalaysian, aged 63, was appointed to the Board ofKumpulan Perangsang Selangor Berhad as Director on 2July 1987. He graduated with a Bachelor of Economics(Accounting) from University of Malaya in 1971. Upongraduation, he joined Universiti Kebangsaan Malaysiaas a Faculty Member of the Faculty of Economics. In1973 he obtained his Master in Business Administrationfrom University of Alberta, Edmonton, Canada and in1975, he obtained a Diploma in Accountancy (post-grad)from University of Malaya. In 1977, he joined KPMG/KPMG Desa Megat & Co and was made partner of thefirm in 1985. He retired from the firm in 2001.

He is currently the Immediate Past President and CouncilMember of the Malaysian Institute of Certified PublicAccountants (MICPA) and Chairman of the Educationand Training Committee of the Institute. He is also aMember of Malaysia Institute of Accountants (MIA).

Dato’ Haji Ab Halim also sits on the Boards of Digi.ComBerhad, Hei-Tech Padu Berhad, Utusan Melayu(Malaysia) Berhad, MCM Technologies Berhad, Amway(Malaysia) Holdings Berhad, Idaman Unggul Berhad,KNM Group Berhad, ECM Libra Avenue Berhad andBank Pembangunan Malaysia Berhad.

YBhg Dato' Haji Ab Halim Bin Mohyiddin, DPMS,warganegara Malaysia, berusia 63 tahun, telah dilantikke Lembaga Pengarah Kumpulan Perangsang SelangorBerhad sebagai Pengarah pada 2 Julai 1987. Beliaumemperolehi Ijazah Sarjana Muda Ekonomi(Perakaunan) dari Universiti Malaya pada 1971. Selepastamat pengajian, beliau menyertai Universiti KebangsaanMalaysia sebagai Ahli Fakulti Ekonomi. Pada 1973,beliau memperolehi Ijazah Sarjana PentadbiranPerniagaan dari University of Alberta, Edmonton,Kanada dan pada 1975, beliau memperolehi DiplomaPerakaunan (Lanjutan) dari Universiti Malaya. Pada1977, beliau menyertai KPMG/KPMG Desa Megat & Codan menjadi rakan kongsi firma tersebut pada 1985sehingga bersara pada 2001.

Ketika ini, beliau adalah "Immediate Past President" danAhli Majlis Malaysian Institute of Certified PublicAccountants (MICPA) dan Pengerusi JawatankuasaPendidikan dan Latihan Institut tersebut. Beliau jugaadalah Ahli Malaysia Institute of Accountants (MIA).

Dato’ Haji Ab Halim juga adalah Ahli Lembaga PengarahDigi.Com Berhad. Hei-Tech Padu Berhad, UtusanMelayu (Malaysia) Berhad, MCM Technologies Berhad,Amway (Malaysia) Holdings Berhad, Idaman UnggulBerhad, KNM Group Berhad, ECM Libra Avenue Berhaddan Bank Pembangunan Malaysia Berhad.

YBhg Dato’ Haji Ab Halim Bin Mohyiddin DPMS



P A G E 23

Tuan Haji Zain Azahari Bin Zainal Abidin

Note:Other than disclosed in the profile of Board of Directors,all the Directors do not have any family relationship withany Director and/or major shareholder of the Company.They have no personal interest in any businessarrangement involving the Company. They have noconvictions for any offences within the past ten (10)years.

Nota:Selain daripada yang dimaklumkan di dalam profilLembaga Pengarah, kesemua ahli Lembaga Pengarahtidak mempunyai sebarang hubungan kekeluargaandengan mana-mana Pengarah dan/atau pemegangsaham utama Syarikat. Mereka tidak mempunyaikepentingan peribadi dalam sebarang urusan perniagaanyang melibatkan Syarikat. Mereka juga tidak pernahdisabitkan dengan sebarang kesalahan dalam tempohsepuluh (10) tahun yang lepas.

Tuan Haji Zain Azahari Bin Zainal Abidin, warganegaraMalaysia, berusia 74 tahun dilantik sebagai PengarahKumpulan Perangsang Selangor Berhad pada 20 Jun2008. Beliau mendapat pendidikan profesional dariLincoln's Inn, London pada tahun 1955 dan beliauberkelayakan sebagai "Barrister-at-Law" padaSeptember 1958 serta diiktiraf sebagai Peguamcara diMahkamah "English Bar" pada tahun 1958

Sekembali beliau ke Malaysia pada tahun 1958, TuanHaji Zain Azahari menjalani latihan dalam Kamar diTetuan Braddell & Ramani. Beliau telah diistiharkansebagai Peguam di Mahkamah Tinggi Malaysia padaJanuari 1960 dan kekal di firma tersebut sehingga tahun1968. Bersama dua lagi rakan, beliau telah menubuhkanfirma Ng Ek Teong, Zain & Selvarajah. Pada tahun 1970,beliau telah membuka firma Zain & Co. dan berada difirma tersebut sehingga kini. Pada Ogos 2004, Tuan HajiZain Azahari bersara sebagai rakankongsi di Zain & Co.tetapi kekal sebagai Konsultan di dalam firma tersebut.

Ketika ini, Tuan Haji Zain Azahari merupakan Pengerusidi Sumiputeh Steel Centre Sdn Bhd dan Oxford FajarSdn Bhd.

Tuan Haji Zain Azahari Bin Zainal Abidin, a Malaysian,aged 74 was appointed to the Board of KumpulanPerangsang Selangor Berhad as Director on 20 June2008. He obtained his professional qualification fromLincoln’s Inn, London in 1955 and in September 1958 hequalified as Barrister-at-Law and was called to theEnglish Bar in November 1958.

Upon his return to Malaysia in 1958, Tuan Haji ZainAzahari read in the Chambers of Mr. Ramani of MessrsBraddell & Ramani. He was called to the Malaysian Barin January 1960 and remained with the firm until 1968.With two others he then formed the firm of Ng Ek Teong,Zain & Selvarajah. In 1970 he started the firm Zain & Coand has been with the firm since. On August 2004, TuanHaji Zain Azahari retired as a partner of Zain & Co butremains as a Consultant in the firm.

Presently, Tuan Haji Zain Azahari also sits as Chairmanon the Boards of Sumiputeh Steel Centre Sdn Bhd andOxford Fajar Sdn Bhd.



“Federal Government through the Cabinet hadon January 16, 2008 approved the consolidationof the water industry on a holistic manner inSelangor, Wilayah Persekutuan Kuala Lumpurand Putrajaya to be led by Kumpulan DarulEhsan Berhad (KDEB).”


Sungai Semenyih Water Treatment Plant

“Kerajaan Persekutuan melalui Kabinetpada 16 Januari 2008 telah meluluskanpelaksanaan penggabungan industri airsecara bersepadu di Selangor, WilayahPersekutuan Kuala Lumpur dan Putrajayadiketuai oleh Kumpulan Darul EhsanBerhad (KDEB).”


YBhg Dato’ Haji Abd Karim Bin Munisar, DSSA, SSA,KMN, ASA, aged 58, was appointed Executive Chairmanof Kumpulan Perangsang Selangor Berhad (KPS) on 6September 2004. He holds a Bachelor of Economics(Hons.) from University of Malaya, an Advanced Diplomain Economic Development (with Distinction) fromUniversity of Manchester, United Kingdom and Master inBusiness Administration from University of Edinburgh,Scotland. He also attended an Advance Course in UrbanPlanning JICA at Tokyo, Japan.

Dato’ Haji Abd Karim was entrusted to spearhead amongthe most prominent city, district and council namelyPetaling Jaya Municipal Council, Sepang District andAmpang Jaya Municipal Council respectively between theyears of 1992 - 2004.

During his tenure as President of Petaling Jaya MunicipalCouncil, he managed to surface new ideas in providingefficient administrative systems for the benefit of thePetaling Jaya community whilst generating revenue forthe city.

The capabilities and experience acquired by Dato’ HajiAbd Karim has built the trust of the Selangor StateGovernment to make him the District Officer cum ActingPresident of the Council. He successfully managed toturn Sepang into a renowned district locally and abroad.Being the first President of Ampang Jaya MunicipalCouncil then in 1992, he maintained and improvedAmpang as a preferred residential development forexpatriates.

His qualification and vast experience as a governmentofficer between the years of 1974 - 2004 enhances hiscapabilities in leading Kumpulan Darul Ehsan Berhad asthe President and Kumpulan Hartanah Selangor Berhadas Executive Chairman.

Profile Of Senior ManagementProfil Pengurusan Kanan

YBhg Dato’ Haji Abd Karim Bin Munisar, DSSA, SSA,KMN, ASA, berusia 58 tahun, dilantik sebagai PengerusiEksekutif Kumpulan Perangsang Selangor Berhad (KPS)pada 6 September 2004. Beliau memiliki Ijazah SarjanaMuda Ekonomi (Kepujian) dari Universiti Malaya,Diploma Lanjutan dalam bidang Pembangunan Ekonomi(dengan Cemerlang) dari University of Manchester,United Kingdom dan Ijazah Sarjana PentadbiranPerniagaan dari University of Edinburgh, Scotland. Beliaujuga telah menghadiri Advance Course in Urban PlanningJICA di Tokyo, Jepun.

Dato’ Haji Abd Karim telah diberi kepercayaan untukmenerajui bandar-bandar dan daerah ternama iaitu MajlisPerbandaran Petaling Jaya, Majlis Daerah Sepang danMajlis Perbandaran Ampang Jaya masing-masing antaratahun 1992 – 2004.

Semasa menjadi Yang Dipertua Majlis PerbandaranPetaling Jaya, beliau berjaya mengemukakan idea-ideapentadbiran dalam memberi sistem perkhidmatan yangcekap dan mesra untuk kepentingan komuniti PetalingJaya dan menambahkan perolehan untuk Bandartersebut.

Kebolehan dan pengalaman yang dimiliki oleh Dato’ HajiAbd Karim telah membina kepercayaan Kerajaan NegeriSelangor untuk melantik beliau menjadi Pegawai Daerahdan Pemangku Yang Dipertua Majlis Daerah Sepang.Beliau berjaya menjadikan Daerah Sepang terkenal dipandangan tempatan dan dunia.

Sebagai Yang Dipertua Majlis Perbandaran Ampang Jayayang pertama pada tahun 1992, beliau berjayamengekalkan dan menaik taraf Ampang sebagaipenempatan pembangunan pilihan bagi ekspatriat.

Kelayakan dan pengalaman beliau yang luas sebagaiPegawai Kerajaan antara tahun 1974 – 2004 telahmempertingkatkan kebolehannya dalam memimpinKumpulan Darul Ehsan Berhad sebagai Presiden danKumpulan Hartanah Selangor Berhad sebagai PengerusiEksekutif.

YBhg Dato’ Haji Abd Karim Bin MunisarDSSA, SSA, KMN, ASA

P A G E 26


P A G E 27

Encik Wong Yien Kim, SIS, PPT, aged 55, is theExecutive Director at Kumpulan Perangsang SelangorBerhad (KPS), a position held since 2007. Encik ArthurWong joined KPS in 1983 as an Accountant and was theChief Accountant for several of KPS’s subsidiaries,namely Perangsang International Sdn Bhd, PerangsangDelima Sdn Bhd, Perangsang Sport Industries Sdn Bhdand SAP Holdings Berhad (SAP). He served SAP forseven (7) years as Head of Division Finance, beforebeing transferred to KPS. Encik Arthur Wong is also theVice President Finance at Kumpulan Darul EhsanBerhad, a position held since 2000.

Encik Arthur Wong is a member of the Malaysian Instituteof Accountants and the Institute of CharteredAccountants, England and Wales.

Encik Arthur Wong Yien Kim, SIS, PPT, berusia 55tahun, telah dilantik sebagai Pengarah EksekutifKumpulan Perangsang Selangor Berhad (KPS) padatahun 2007. Encik Arthur Wong telah berkhidmat denganKPS semenjak tahun 1983 dan telah menerajui BahagianKewangan di beberapa anak syarikat sebagai KetuaAkauntan iaitu Perangsang International Sdn Bhd,Perangsang Delima Sdn Bhd, Perangsang SportsIndustries Sdn Bhd dan SAP Holdings Berhad (SAP).Encik Arthur Wong telah berkhidmat selama tujuh (7)tahun dengan SAP sebagai Ketua Bahagian Kewangansebelum dipindahkan perkhidmatan ke KPS. Encik ArthurWong turut menyandang jawatan Naib PresidenKewangan di Kumpulan Darul Ehsan Berhad sejak tahun2000.

Encik Arthur Wong merupakan ahli Institut AkauntanMalaysia dan Institute of Chartered Accountants, Englanddan Wales.

Encik Mohd Noor Bin Ismail, PPT, aged 59, is theGeneral Manager Corporate Planning at KumpulanPerangsang Selangor Berhad (KPS), a position heldsince 1999. He holds a Diploma in Accountancy fromUiTM, a Bachelor Degree in Business Administration(Corporate Finance) from Western Michigan University,USA and Master in Business Administration fromMorehead State University, USA.

Encik Mohd Noor joined KPS in 1991. Prior to that, heserved as an Examiner of Account with FELCRA Berhadfrom 1974 to 1979, Accountant at Kwong Yik BankBerhad from 1983 to 1984 and subsequently, as AssistantManager at Arab-Malaysian Finance Berhad till 1990.Encik Mohd Noor was the Manager Corporate Planningat KPS from 1991 to 1998 before being appointedGeneral Manager. He also holds the position of VicePresident Corporate Planning at Kumpulan Darul EhsanBerhad.

Encik Mohd Noor Bin Ismail, PPT, berusia 59 tahun, telahdilantik sebagai Pengurus Besar Perancang KorporatKumpulan Perangsang Selangor Berhad (KPS) pada tahun1999. Berkelulusan Diploma Perakaunan dari UiTM danIjazah Pentadbiran Perniagaan (Kewangan Korporat) dariWestern Michigan University, USA, beliau juga memperolehiIjazah Sarjana Pentadbiran Perniagaan dari Morehead StateUniversity, USA.

Encik Mohd Noor mula berkhidmat dengan KPS padatahun 1991. Sebelum itu, beliau telah berkhidmat denganFELCRA Berhad sebagai Pemeriksa Akaun dari tahun1974 hingga 1979. Beliau juga telah berkhidmat denganKwong Yik Bank Berhad sebagai Akauntan bermula dari1983 hingga 1984 dan seterusnya bertugas di ArabMalaysian Finance Berhad sebagai Penolong Pengurussehingga tahun 1990. Encik Mohd Noor memegangjawatan Pengurus Perancang Korporat di KPS dari tahun1991 hingga tahun 1998 sebelum dilantik sebagaiPengurus Besar. Beliau juga menyandang jawatan NaibPresiden Perancang Korporat di Kumpulan Darul EhsanBerhad.


Encik Wong YienKim SIS, PPT

Encik Mohd Noor Bin Ismail PPT

Encik Revi Pillai, ASA, aged 59, joined KumpulanPerangsang Selangor Berhad (KPS) in 1984 asManagement Accountant and was appointed GeneralManager Management Audit in 1997.

A graduate in Bachelor of Science from Universiti SainsMalaysia and the Association of Chartered ManagementAccountants (ACMA) United Kingdom, he had previouslyworked with several leading organisations in Malaysia.

Encik Revi is a member of the Chartered Institute ofManagement Accountants.

Encik Revi Pillai, ASA, berusia 59 tahun, mulaberkhidmat di Kumpulan Perangsang Selangor Berhad(KPS) pada tahun 1984 sebagai Akauntan Pengurusandan dilantik sebagai Pengurus Besar Audit Pengurusanpada tahun 1997.

Berkelulusan Ijazah Sarjana Muda Sains dari UniversitiSains Malaysia dan Association of CharteredManagement Accountants (ACMA) United Kingdom,beliau telah berkhidmat di beberapa buah organisasiterkemuka di Malaysia sebelum menganggotai KPS.

Encik Revi merupakan ahli Chartered Institute ofManagement Accountants.


P A G E 28

YM Raja Ahmad Hidzir Bin Raja Muhamad, aged 38was appointed as Group General Manager, HumanResource & Administration of Kumpulan PerangsangSelangor Berhad (KPS) in May 2008. He graduated withBachelor of Management (Finance & Accounting) fromUniversiti Sains Malaysia, Penang in 1995.

YM Raja Ahmad Hidzir was attached to Maybank Groupas Head, Talent Management, Corporate HumanResource in 2007. Prior to Maybank, he was SeniorManager, Human Resources & Administration in adidas(Malaysia) Sdn Bhd from 2001 to 2007 and wasappointed as one of adidas Board of Directors in 2004.In 1999, he was Senior Consultant of Deloitte ToucheTohmatsu after serving Edaran Otomobil NasionalBerhad (EON) for five years as Accounts Executive since1995.

YM Raja Ahmad Hidzir Bin Raja Muhamad, berusia 38tahun dilantik sebagai Pengurus Besar Sumber Manusia& Pentadbiran Kumpulan, Kumpulan PerangsangSelangor Berhad (KPS) pada Mei 2008. Beliauberkelulusan Sarjana Muda Pengurusan (Kewangan &Perakaunan) dari Universiti Sains Malaysia, PulauPinang pada tahun 1995.

YM Raja Ahmad Hidzir berkhidmat sebagai KetuaPengurusan Bakat, Sumber Manusia Korporat diKumpulan Maybank pada 2007. Beliau juga pernahberkhidmat di adidas (Malaysia) Sdn Bhd sebagaiPengurus Kanan Sumber Manusia dan Pentadbiran dari2001 hingga 2007 dan telah dilantik sebagai salahseorang Ahli Lembaga Pengarah Adidas pada 2004.Pada tahun 1999, beliau bertugas sebagai PerundingKanan di Deloitte Touche Tohmatsu setelah lima tahunberkhidmat di Edaran Otomobil Nasional Berhad (EON)sebagai Eksekutif Akaun sejak 1995.


Encik Revi PillaiASA

YM Raja Ahmad HidzirBin Raja Muhamad


P A G E 29

Encik Abdul Karim Bin Endut, aged 37 was appointedGeneral Manager Water Management of KumpulanPerangsang Selangor Berhad (KPS) in December 2005.He holds a Master in Chemical Engineering and aBachelor Degree in Chemical Engineering fromUniversité dé Nancy 1, France.

Prior to joining KPS, Encik Abdul Karim held the positionof Assistant Project Director of WWE Holding where heserved at the Jeddah office from May to December 2005.Encik Abdul Karim worked with British American TobaccoMalaysia as Consultant from January 2004 to May 2005and prior to that, was employed at Ondeo Services(Lyonnaise des Eaux) as Operational Manager from 1994to 2003.

Encik Abdul Karim also holds a certificate in Prince 2Project Management from United Kingdom and is amember of the Malaysian Water Association since 2000.

Encik Abdul Karim Bin Endut, 37 tahun, telah dilantiksebagai Pengurus Besar Pengurusan Air, KumpulanPerangsang Selangor Berhad (KPS) pada Disember 2005.Beliau berkelulusan Ijazah Sarjana Kejuruteraan Kimia danIjazah Sarjana Muda Kejuruteraan Kimia dari Université déNancy 1, Perancis.

Sebelum menganggotai KPS, Encik Abdul Karimmemegang jawatan sebagai Penolong Pengarah Projekdi WWE Holding di mana beliau telah ditugaskan diJeddah dari Mei hingga Disember 2005. Encik AbdulKarim telah berkhidmat dengan British American TobaccoMalaysia sebagai Konsultan dari Januari 2004 hinggaMei 2005 dan sebelumnya telah bekerja sebagaiPengurus Operasi di Ondeo Services (Lyonnaise desEaux) dari 1994 hingga 2003.

Encik Abdul Karim juga mempunyai sijil dalam Prince 2Project Management dari United Kingdom danmerupakan ahli Persatuan Air Malaysia semenjak 2000.


Encik Abdul KarimBin Endut

Tuan Haji ZulkifliBin Hussain PPT

Tuan Haji Zulkifli Bin Hussain, PPT, aged 56 wasappointed General Manager, Infrastructure & UtilityKumpulan Perangsang Selangor Berhad (KPS) in 2001.He obtained a Bachelor of Science Degree in CivilEngineering from Universiti Teknologi MARA (UiTM) in1979, Master of Science in Construction Managementfrom University of Birmingham, United Kingdom in 1986and Master of Business Administration (StrategicManagement) from International Islamic University,Malaysia (IIUM) in 2008.

Tuan Haji Zulkifli has more than 18 years workingexperience in property and infrastructure development.

Prior to joining KPS, he served as Chief Operating Officerat SAP Air Hitam Properties from 1988 to 2001.

Tuan Haji Zulkifli Bin Hussain, PPT berusia 56 tahun,dilantik ke jawatan Pengurus Besar, Infrastruktur & UtilitiKumpulan Perangsang Selangor Berhad (KPS) padatahun 2001. Beliau memperolehi Ijazah Sarjana MudaSains dalam bidang Kejuruteraan Awam dari UniversitiTeknologi MARA (UiTM) pada tahun 1979, Ijazah SarjanaSains dalam bidang Pengurusan Pembinaan dariUniversity of Birmingham, United Kingdom pada tahun1986 dan Ijazah Sarjana Pentadbiran Perniagaan(Pengurusan Strategik) dari Universiti IslamAntarabangsa (UIA) pada tahun 2008.

Tuan Haji Zulkifli mempunyai pengalaman kerja lebihdaripada 18 tahun dalam pembangunan hartanah daninfrastruktur.

Sebelum menyertai KPS, beliau berkhidmat sebagaiKetua Pegawai Operasi di SAP Air Hitam Properties daritahun 1988 hingga 2001.


P A G E 30


Puan Hashimah Binti Mohd Isa PPT

Puan Hashimah Binti Mohd Isa, PPT,aged 48, was appointed CompanySecretary of Kumpulan PerangsangSelangor Berhad (KPS) in 1996. Agraduate of Indiana State University,Puan Hashimah holds a Master inBusiness Administration.

She has been with the KPS Groupsince 1990.

Puan Hashimah Binti Mohd Isa, PPT,berusia 48 tahun, telah dilantik sebagaiSetiausaha Syarikat di KumpulanPerangsang Selangor Berhad (KPS)pada tahun 1996. Puan Hashimahmendapat pendidikan dari IndianaState University dan berkelulusanSarjana Pentadbiran Perniagaan.

Puan Hashimah telah berkhidmat diKPS sejak tahun 1990.

Ensuring ourlong-term sustainabilityMemastikan kemapanan kami kekaluntuk jangka panjang

As a serious infrastructure and utility serviceprovider, we will continue to focus on corebusinesses and tap opportunities that bringsynergistic benefits with a view to ensuringour long-term sustainability.

Sebagai pemberi perkhidmataninfrastruktur dan utiliti yang serius,kami akan terus fokus terhadapperniagaan-perniagaan teras danmengambil peluang-peluang yangmendatangkan manfaat denganmemastikan kami terus mapanuntuk jangka masa yang panjang.


P A G E 31


P A G E 32

YBhg Dato’ HajiAbd Karim Bin MunisarDSSA, SSA, KMN, ASA

Executive Chairman’s StatementPerutusan Pengerusi Eksekutif


P A G E 33

GROUP’S FINANCIAL PERFORMANCE

In the year 2008, KPS Group posted a lower revenue ofRM305.827 million, a significant decrease of RM119.775million or 28% compared to RM425.602 million registeredin the previous year. The significant decrease in revenuecontribution is mainly from property development totalingRM92.358 million a decrease of RM126.603 million,compared to RM218.961 million in the previous year.

KPS Group recorded an operating profit of RM49.864million, a decrease of RM85.780 million or 63.2%compared to an operating profit of RM135.644 million in2007. The significant downturn was the result of thedecreased operating profit contribution from theinfrastructure and utility sector amounting to RM86.746million (2007:RM91.491 million), operating losses fromproperty development amounting to RM26.561 million(2007:operating profit RM32.821 million) and operatinglosses from investment holding amounting to RM14.087million (2007:operating profit RM13.039 million).

SHARE PRICE PERFORMANCE

The global financial crisis has had its adverse impact onthe performance of the global and regional stock marketand KPS is not spared, resulting in a 50% decline toRM1.43 per share compared to RM2.86 per share at endof 2007. Market capitalization of KPS share decreasedtremendously to RM680.199 million compared toRM1.346 billion at the end of the previous year. TheComposite Index of Bursa Malaysia closed at 876.75points, a decrease by 568.28 points or 39% compared to1,445.03 points at the end of trading in 2007.

DIVIDEND

The Board of Directors is recommending a final dividendof 4 sen per share less 25% tax, subject to shareholders’approval at the forthcoming Annual General Meeting.

PRESTASI KEWANGAN KUMPULAN

Dalam tahun 2008, Kumpulan KPS mencatat perolehanyang lebih rendah sebanyak RM305.827 juta, penurunanketara sebanyak RM119.775 juta atau 28% berbandingperolehan RM425.602 juta yang dicatat dalam tahunsebelumnya. Penurunan perolehan yang ketara inisebahagian besar disumbangkan oleh penurunanperolehan dari sektor pembangunan hartanah yangmencatat RM92.358 juta, menurun sebanyak RM126.603juta, berbanding RM218.961 juta dalam tahunsebelumnya.

Kumpulan KPS mencatat keuntungan operasi sebanyakRM49.864 juta, menurun sebanyak RM85.780 juta atau63.2% berbanding keuntungan operasi sebanyakRM135.644 juta dalam tahun 2007. Penurunan ketara inidisebabkan penurunan keuntungan operasidisumbangkan oleh sektor infrastruktur dan utilitiberjumlah RM86.746 juta (2007: RM91.491 juta),kerugian operasi disumbangkan oleh sektorpembangunan hartanah sebanyak RM26.561 juta (2007:keuntungan operasi RM32.821 juta) dan kerugian operasidisumbangkan oleh sektor pegangan pelaburansebanyak RM14.087 juta (2007: keuntungan operasisebanyak RM13.039 juta).

PRESTASI HARGA SAHAM

Krisis kewangan dunia telah memberikan impak kurangbaik ke atas prestasi pasaran saham serantau dan dunia.Impak ini tidak terkecuali kepada harga penutup sahamKPS yang merosot 50% kepada RM1.43 sesahamberbanding harga dagangan penutup RM2.86 sesahampada akhir tahun 2007. Modal pasaran saham KPSmerosot ketara kepada RM680.199 juta berbandingRM1.346 bilion pada tahun sebelumnya. IndeksKomposit Bursa Malaysia ditutup pada paras 876.75mata, menurun sebanyak 568.28 mata atau 39%berbanding 1,445.03 mata pada akhir dagangan 2007.

DIVIDEN

Lembaga Pengarah akan mencadangkan bayarandividen akhir sebanyak 4 sen sesaham ditolak cukaisebanyak 25%, tertakluk kepada kelulusan pemegang-pemegang saham di Mesyuarat Agung Tahunan yangakan datang.

Dear Valued Shareholders,On behalf of the Board of Directors of Kumpulan Perangsang Selangor Berhad(KPS), it is with great pleasure that I present the Annual Report and AuditedFinancial Statements for the financial year ended 31 December 2008.

Pemegang-Pemegang Saham Yang Saya Hormati,Bagi pihak Ahli Lembaga Pengarah Kumpulan Perangsang Selangor Berhad (KPS),saya dengan sukacitanya membentangkan Laporan Tahunan dan Penyata KewanganDiaudit bagi tahun kewangan berakhir pada 31 Disember 2008.


CORPORATE DEVELOPMENT

Utility and Infrastructure Sector

It is only natural that natural resources like water belongto all of humanity, and no group or organisation can claimthat it belongs to them, much less use it to seek profits atthe expense of the people.

Hypothesis that there will be greater scarcity of freshdrinking water has provoked the initial confrontation forcontrol over the planet’s most basic resource referred toas a ‘blue gold’. With the expectation of higher watertariffs, private corporations whose primary objective is tosecure as much financial gain of their shareholdersbegan to eye water as a potential lucrative industry.Hence water has become a commodity vulnerable to theprofit-motive.

Water being a public utility was once under the portfolioof the State government agencies. In the case ofSelangor it was under the jurisdiction of Jabatan BekalanAir Selangor (JBAS) which was later corporatised in2002.

Privatisation of water industry started in 1994 with 27Water Treatment Plants being privatised to PuncakNiaga, followed by Splash in 2000 and Konsortium Abassin 2001. The rationale of privatisation to various waterplayers then was to avoid monopolistic syndrome with thepurpose of creating healthy competition in relations topromote greater efficiency among the private wateroperators.


P A G E 34


PEMBANGUNAN KORPORAT

Sektor Utiliti dan Infrastruktur

Adalah menjadi lumrah bahawa sumber alam semulajadiseperti air adalah untuk dinikmati oleh seluruh kehidupansejagat dan bukannya didominasi oleh kumpulan atauorganisasi tertentu dengan tanggapan bahawa ianyaadalah milik mereka, malah mempergunakannya untukmendapat manfaat keuntungan semata-mata di ataskepentingan hak orang lain.

Hipotesis telah menunjukkan bahawa kekurangan puncaair minuman semulajadi telah menjadi penyebabperbalahan untuk menguasai sumber paling asasdiplanet ini yang diberikan jolokan `emas biru’.Berdasarkan jangkaan kadar tarif air yang akan menjadisemakin tinggi, organisasi perniagaan yangberobjektifkan untuk memberikan pulangan kewanganmaksima bagi pihak pemegang-pemegang saham telahmula melihat industri air ini berpotensi untuk memberikanpulangan lumayan. Oleh itu, air telah menjadi satukomoditi yang dipergunakan untuk motif keuntungan.

Perbekalan air yang merupakan utiliti awam sebelum iniadalah diletakkan di bawah portfolio agensi KerajaanNegeri. Bagi Negeri Selangor, pengurusan air padaasalnya adalah adalah di bawah bidang kuasa JabatanBekalan Air Selangor (JBAS), yang kemudiannya telahdikorporatkan pada tahun 2002.

Penswastaan industri air bermula pada tahun 1994dimana 27 buah Loji Rawatan Air telah diswastakankepada Puncak Niaga, diikuti oleh SPLASH pada tahun2000 dan Konsortium ABASS pada tahun 2001. Rasionalpenswastaan kepada beberapa syarikat ini adalahbertujuan untuk mengelakkan amalan monopoli danuntuk mewujudkan persaingan sihat dari segipeningkatan effisiensi dikalangan operator-operator airswasta.

“It is therefore crucialthat the water reformalso focuses onPAAB’s role since thecurrent level ofrevenue of all wateroperators is only ableto meet operatingexpenditures but not the capitalexpenditures.”

Chlorine Scrubber - Sungai Semenyih Water Treatment Plant

Overflow Spillway - Sungai Semenyih Dam


P A G E 35

Pada tahun 2002, JBAS telah dikorporatkan menjadiPerbadanan Urus Air Selangor (PUAS) dengan matlamatutama untuk meningkatkan efisiensi dan menjadi lebihefektif. Walaubagaimanapun, kekangan untuk kenaikantarif air telah menyebabkan ketidakseimbangan antarahasil perolehan dan perbelanjaan operasi, danseterusnya menyebabkan PUAS tidak berdaya majuuntuk memenuhi obligasi kos operasi dimana sebahagianbesar perbelanjaan digunakan untuk membeli air terawatdaripada operator-operator air swasta.

Di bawah penswastaan pengagihan air, modelkewangannya telah diberi jaminan untuk kenaikan kadartarif air secara berjadual setiap tiga tahun, tertaklukkepada pematuhan di dalam terma-terma perjanjiankonsesi, dan sekiranya tiada kenaikan tarif, sejumlahpampasan perlu dibayar oleh pihak Kerajaan. Selaindaripada itu, bantuan kewangan daripada Kerajaan jugadisediakan bagi menangani isu air tidak berhasil. Secararingkasnya, model kewangan ini menjamin sumberpendapatan yang dibayar oleh pengguna air ataupunpihak Kerajaan.

Kecenderungan penswastaan secara berdikit-dikit telahmenyebabkan `fragmentation’ industri air danmenimbulkan banyak persoalan dan isu untuk ditangani.Pengalaman telah memperlihatkan bahawa modelpenswastaan tanpa mengambilkira kemampanan jangkapanjang secukupnya tidak akan dapat bertahan lama.

Penswastaan yang tidak holistik meningkatkan’fragmentation’ di sektor rawatan air dan menimbulkancabaran didalam perpindahan harga dikalangan operatorrawatan dan agihan air. Pendekatan sebegini tidaksemestinya menggalakan rantaian nilai yang efisen danefektif.

Pokok persoalannya adakah `fragmentation’ operator-operator air ini dapat memberikan imbangan yang adildan sewajarnya diantara isu keperluan sosial dari aspekkadar tarif yang lebih rendah dengan keperluankeuntungan korporat.

Menyedari senario ini, Kerajaan Persekutuan telahmengenalpasti mengenai keperluan dan kepentinganuntuk mencapai pembangunan mampan jangkapanjang di dalam memastikan bekalan air bersihyang berterusan kepada generasi akan datang.


In 2002 JBAS was corporatised to Perbadanan Urus AirSelangor (PUAS) with the ultimate aim to improveefficiency and effectiveness. However with difficulty toincrease tariff has led to a mismatch of revenue againstoperating expenses, resulting in inability of PUAS to meetthe operating expenses obligation especially where thebulk of the expenses goes to purchasing treated waterfrom private water operators.

Under the privatisation of the distribution the financialmodel granted an increase in schedule tariff every threeyears subject to compliance stipulated in the terms ofagreement of the concessionaires, failing whichcompensation is to be paid by the Government.Furthermore financial aid from the Government is madeavailable to address non-revenue water (NRW). In short,the basis of this financial model is either the consumers’pay or the Government.

The trend of piece-meal privatisation resulting in deeperfragmentation of water industry raised a lot of questionsand issues to be addressed. Over the years we haveseen that privatisation without adequately addressing theindustry model with long term sustainability did not work.

Piece-meal privatisation that gives rise to segregation oftreatment process has raised the challenges in transferpricing between the different operators. The fragmentedapproach does not necessarily promote an effective andefficient value chain.

The crux of the matter is whether this fragmentation ofoperators can have fair balance between social needs interms of lower tariff and corporate needs of profitability.

Realising this scenario the Federal Governmentrecognises the need and importance of achieving longterm sustainability in providing clean water to thepeople for future generation.

Draw-off Tower - Sungai Semenyih Dam

Finger Weir - Sungai SemenyihWater Treatment Plant

“In the context of Selangor, KDEB is a true capable water playerthat can lead the consolidation of theState’s water industry in line with thewater reform to ensure efficiency,effectiveness and lower tariff throughthe trimming of super profit for thebenefit of the ‘rakyat’.”


P A G E 36

Semenjak tahun 2003, terdapat keperluan bagimenyusun semula industri air bagi menangani isu-isuperundangan berkaitan pindaan PerlembagaanPersekutuan dimana perkara-perkara berkaitanpengurusan air telah dipindahkan daripada senaraiNegeri kepada Senarai Bersama.

Lanjutan daripada itu, dua Akta telah digubal yangdikenali sebagai Akta Industri Perkhidmatan Air (IPA)2006 bertujuan untuk menstruktur semula danmenggabungkan industri air dan Akta SuruhanjayaPerkhidmatan Air Negara (SPAN) 2006 bertujuan untukmengawalselia industri perkhidmatan air.

Penstrukturan semula industri air juga memerlukanpenglibatan Kerajaan didalam sokongan dana bagimembiayai perbelanjaan modal yang tinggi danmemastikan kemampanannya. Berikutan dengan itu,Pengurusan Aset Air Berhad (PAAB) telah ditubuhkanuntuk mengambilalih tanggungjawab membiayai kosinfrastruktur industri air pada masa hadapan. Justeru itu,risiko dan beban yang ditanggung oleh operatorperkhidmatan air bagi menanggung pembiayaanperbelanjaan modal pembangunan aset air yang tinggiakan menjadi minima.

Dalam tempoh yang lepas, penswastaan tanpamenitikberatkan kemampanan jangka panjangmenunjukkan hasil yang kurang memberangsangkan.Pada masa ini, hasil perolehan operator pengagihanair hanya mencukupi untuk menampungperbelanjaan operasi sahaja, tetapi tidak mampuuntuk membiayai perbelanjaan modal pembangunan.Oleh yang demikian, peranan PAAB adalah amatdiperlukan bagi mengurangkan bebanan tersebut.

Selaras dengan visi pentrukturan semula, KerajaanPersekutuan melalui keputusan Kabinet pada 16Januari 2008 telah meluluskan pelaksanaanpenggabungan industri air secara holistik di NegeriSelangor, Wilayah Persekutuan Kuala Lumpur danPutrajaya diterajui oleh Kumpulan Darul EhsanBerhad (KDEB).

Since 2003 there was a need for water reform toaddress issues relating to the legality on amendments tothe Federal Constitution putting water from State list toConcurrent list of the Constitution.

Following this two Acts were established namely theWater Services Industry Act (WSIA) 2006 with thepurpose to reform and consolidate the water industry andthe Suruhanjaya Perkhidmatan Air Negara (SPAN) Act2006 to regulate the industry.

The water reform also addressed the need for theGovernment to support huge capital expenditures toachieve sustainability of the reforms. With thisPengurusan Aset Air Berhad (PAAB) was formed to takeon the responsibility of financing future waterinfrastructures. As such the risk of service providersincurring heavy capital outlays to finance water assets isnow minimised.

Over the years it could be observed that privatisationwithout adequately addressing long term sustainabilityshows the outcome has not been promising. It istherefore crucial that the water reform also focuses onPAAB’s role since the current level of revenue of allwater operators is only able to meet operatingexpenditures but not the capital expenditures.

Along with this reform Federal Government through theCabinet had on January 16, 2008 approved theconsolidation of the water industry on a holisticmanner in Selangor, Wilayah Persekutuan KualaLumpur and Putrajaya to be led by Kumpulan DarulEhsan Berhad (KDEB).


M & E Building - Sungai SemenyihWater Treatment Plant

Stilling Basin - Sungai Semenyih Dam


P A G E 37

Pada 30 Jun 2008, cadangan penstrukturan ini telahdibentangkan di Parlimen oleh Kementerian Tenaga, Airdan Komunikasi (ketika ini dikenali sebagai KementerianTenaga, Teknologi Hijau dan Air) yang meliputi tigakomponen penting :-

• Syarikat tersebut dimiliki atau dikuasai oleh Kerajaan Negeri Selangor;

• Operator perkhidmatan air akan dilesenkan di bawah Akta SPAN;

• Syarikat yang beroperasi berasaskan ”asset-light model” akan memfokuskan terhadap peningkatan perkhidmatan yang efisien dan efektif selaras dengan perjanjian lesen dan indeks prestasi utama yang dipantau oleh SPAN.

Di Selangor, KDEB melalui syarikat-syarikat subsidiarinyatelah memainkan kedua-dua peranan aktif sebagaipemain utama dan pelabur. KDEB diakui sebagai pemainutama di dalam industri air dengan pegangan pelaburan55% di dalam Konsortium ABASS Sdn Bhd yangmengeluarkan 545 juta liter air sehari untuk keperluankawasan, Putrajaya, Cyberjaya, Sepang, Kuala Langatdan Puchong.

On June 30, 2008 the key basis of the restructure wasmentioned in the Parliament by the Ministry of Energy,Water and Communications (now known as Ministry ofEnergy, Green Technology and Water) to consist of threeimportant components:

• a company that is owned or controlled by the State Government;

• a water service operator licensed under the SPAN Act;

• a company operating on asset-light model focusing on improving efficiency and effectiveness of service based on license agreement and KPIs monitored by SPAN.

In Selangor, KDEB through its subsidiaries has beenplaying an active and major role both as a industry playerand as investor. Having an investment share of 55% inKonsortium ABASS Sdn Bhd producing 545mld coveringsupplying areas of Putrajaya, Cyberjaya, Sepang, KualaLangat and Puchong marked KDEB’s presence as anactive water player.

“We need to appreciate thatprivatisation is not a substituteto efficient and effective waterservices particularly in respectof long term financialsustainability. It is imperativethat we recognise waterservices should be in the handsof the Government and not liveoff the cost of futuregeneration.”


Chlorine Scrubber - SungaiSemenyih Water Treatment Plant


P A G E 38

Capacity - Water Production (MLD)

KDEB Group PNHB

KDEB* - 57.2%(2,545 MLD)

PNHB - 42.8%(1,905 MLD)

* KDEB as a group includes associate company (Splash) & ABASS

“We could have made mistakes in thepast through privatisation and it istherefore aptly and timely to correct itinstead of continuing perfecting themistake.”


P A G E 39


To top that up, KDEB and its Subsidiaries also holdinvestments in water treatment and distribution by virtueof a 30% equity in Splash, 30% Syabas and 20%Taliworks Corporation.

In the context of Selangor, KDEB is a true capableplayer that can lead the consolidation of the State’s waterindustry in line with the water reform to ensure efficiency,effectiveness and lower tariff through the trimming ofsuper profit for the benefit of the “rakyat”.

Water being a public utility has gone through hugeinvestment made by the State in the past. The State hasspent almost RM15 billion for the water treatment plants,dams and distribution works and other immovable assets,compared to private operators only owing RM5 billion ofthese assets, out of which the State through KDEB owns22.5% of this private investment of water assets.

Hence with this huge investment by the State and itsownership of the assets coupled with ready expertisethrough KDEB, and in line with the water reform it isproven and aptly that the water consolidation betranslated into reality soonest for the benefits of the“rakyat”.

The connotation that privatisation is a pinnacle ofefficiency and effectiveness within the context of waterservices to a considerable extent does not hold water.

Water being a public utility with huge investment of theState should therefore remain in the hands of theGovernment or a State-controlled company whoapparently is in a better position to care for the needs ofthe “rakyat”.

We need to appreciate that privatisation is not a substituteto efficient and effective water services particularly inrespect of long term financial sustainability. It isimperative that we recognise water services shouldbe in the hands of the Government and not live offthe cost of future generation.

We could have made mistakes in the past throughprivatisation and it is therefore aptly and timely tocorrect it instead of continuing perfecting themistake.


P A G E 40

Disamping itu juga, KDEB dan syarikat-syarikatsubsidiarinya juga mempunyai pegangan pelaburandidalam aktiviti rawatan dan pengagihan air melaluipegangan 30% ekuiti di dalam SPLASH, 30% di dalamSYABAS dan 20% di dalam Taliworks Corporation.

Didalam konteks Negeri Selangor, KDEB mempunyaikewibawaan sebagai syarikat air untuk menerajuipenggabungan industri air di Selangor, WilayahPersekutuan Kuala Lumpur dan Putrajaya selarasdengan cadangan pemulihan industri air bagimemastikan operasi yang efisien, efektif dan kadar tarifyang rendah melalui pengurangan keuntungan yangbesar demi manafaat rakyat.

Didalam usaha untuk memberikan perkhidmatan airsebagai utiliti awam pada masa yang lepas, KerajaanNegeri Selangor telah membelanjakan hampir RM15bilion bagi membiayai kerja-kerja membina loji rawatan,empangan dan sistem agihan air serta lain-lain asetberkaitan air, berbanding operator-operator swasta lainyang hanya memegang aset berkaitan air berjumlah RM5bilion. Daripada jumlah tersebut, Kerajaan Negeri melaluiKDEB mempunyai pegangan pelaburan sebanyak 22.5%dalam aset air yang diswastakan ini.

Berdasarkan jumlah pelaburan yang besar yang telahdikeluarkan oleh Kerajaan Negeri dan pegangannyadidalam aset-aset air digabungkan dengan kepakaranKDEB serta selaras dengan pemulihan industri air, iaakan membuktikan bahawa penggabungan industri airakan menjadi kenyataan dan memberi manfaat kepadarakyat dalam masa terdekat.

Konotasi bahawa penswastaan adalah kunci kepadaperkhidmatan yang efisien dan efektif didalam konteksperkhidmatan air adalah dianggap tidak begitu tepat.

Perkhidmatan air yang merupakan utiliti awam danmenelan perbelanjaan pelaburan yang besar olehKerajaan Negeri seharusnya kekal di bawah kendalianKerajaan Negeri atau syarikat yang dikuasai olehKerajaan Negeri yang dapat memberi pertimbangan yanglebih baik didalam memenuhi keperluan rakyat.

Kita perlu mengakui hakikat bahawa penswastaan adalahbukan penjamin kepada tahap perkhidmatan air yangefisien dan efektif, terutamanya jika dilihat dari sudutkewangan mampan jangka panjang. Perlu diakuibahawa perkhidmatan air adalah sangat pentingdikendalikan oleh Kerajaan agar hak generasi akandatang tidak tergugat dan akan terpelihara.

Kita mungkin telah melakukan kesilapan sebelum inimelalui penswastaan dan sekarang adalah masayang paling sesuai untuk memperbetulkannyadaripada terus menyempurnakan kesilapan lampau.


Water Recovery Pump - SungaiSemenyih Water Treatment Plant


P A G E 41

Sektor Pembangunan Hartanah

Sektor pembangunan hartanah yang dikendalikan olehKumpulan Hartanah Selangor Berhad (KHSB) mencatatperolehan RM92.358 juta, menurun sebanyakRM126.603 juta atau 57.82% berbanding perolehanRM218.961 juta pada tahun sebelumnya. Manakalasektor ini mencatat kerugian operasi sebanyak RM26.561juta berbanding keuntungan operasi sebanyak RM32.821juta pada tahun sebelumnya. Kemerosotan prestasi yangketara ini adalah disebabkan peruntukan penuh ke ataspenerimaan jangka panjang sebanyak RM65.430 jutaoleh KHSB.

KHSB melalui anak syarikatnya, Central Spectrum (M)Sdn Bhd (CSSB) telah berusaha gigih mempromosikanPulau Indah, Klang sebagai destinasi pelaburan danpelancongan, khususnya pembangunan tanah industri dikawasan Selangor Halal Hub (SHH). Dalam tahun 2008,kerja-kerja tanah di SHH Fasa 2 merangkumi lebihkurang 244.44 ekar dengan anggaran nilai pembangunankasar sebanyak RM234 juta telah selesai, manakalakerja-kerja infrastruktur di Seksyen A, SHH Fasa 2 seluas107.78 ekar dijangka siap awal tahun 2010. Ketika iniCSSB sedang menjalankan aktiviti promosi jualankepada bakal-bakal pelabur.

Sektor Hospitaliti, Kelab Golf dan Rekreasi

Sektor hospitaliti mencatat perolehan dan keuntunganoperasi masing-masing sebanyak RM30.176 juta (2007:RM30.172 juta) dan RM2.033 juta (2007: kerugianoperasi RM1.864 juta). Manakala sektor kelab golf danrekreasi mencatat perolehan dan kerugian operasimasing-masing sebanyak RM8.187 juta (2007: RM8.664juta) dan RM0.387 juta (2007: kerugian operasi RM1.470juta). Prestasi yang lebih baik daripada sektor-sektor inidilihat selepas penstrukturan korporat bagi peganganpelaburan bagi tiga (3) entiti merangkumi PerangsangTempler Golf Club – 100%, Perangsang Hotels &Properties Sdn Bhd – 100% (yang menguruskan QualityHotel Shah Alam dan Quality Hotel City Centre) dan KDERecreation Berhad – 49% (yang menguruskan KelabDarul Ehsan, Ampang), di mana semua entiti ini telahdiletakkan di bawah Cash Band (M) Berhad (CBB), anaksyarikat KPS. Bagi memperkukuhkan sektor hospitaliti,CBB juga telah mengambilalih 100% saham BrisdaleInternational Hotel Sdn Bhd daripada KHSB.

Property Development Sector

The property development sector, managed by KumpulanHartanah Selangor Berhad (KHSB) registered a revenueof RM92.358 million, a decrease of RM126.603 million or57.82% compared to RM218.961 million revenue in theprevious year. Meanwhile, the sector recorded anoperating loss of RM26.561 compared to an operatingprofit of RM32.821 million in the previous year. The dip inperformance was due to the full provision made on longterm receivables of RM65.430 million incurred by KHSB.

KHSB through its subsidiary, Central Spectrum (M) SdnBhd (CSSB) actively promoted Pulau Indah, Klang as aninvestment and tourism destination, especially thedevelopment of industrial land in the Selangor Halal Hub(SHH) area. In year 2008, the ground works for Phase 2SHH that encompasses approximately 244.44 acres withan estimated gross development value of RM234 millionwas completed, whilst infrastructure works in Section A,Phase 2 SHH measuring 107.78 acres is expected to becompleted in early 2010. CSSB is currently coordinatingsales promotion activities to potential investors.

Hospitality, Golf Club and Recreation Sector

The hospitality sector registered revenue and operatingprofit of RM30.176 million (2007:RM30.172 million) andRM2.033 million (2007:operating loss of RM1.864million)respectively. Meanwhile, the golf club and recreationsector registered revenue and operating loss of RM8.187million (2007:RM8.664 million) and RM0.387 million(2007:operating loss RM1.47 million) respectively. Theperformance of these sectors improved tremendouslyafter the corporate restructuring of investment holding inthree (3) entities mainly Perangsang Templer Golf Club –100%, Perangsang Hotels & Properties Sdn Bhd – 100%(manages Quality Hotel Shah Alam and Quality Hotel CityCentre) and KDE Recreation Berhad – 49% (managesKelab Darul Ehsan, Ampang) and positioned under CashBand (M) Berhad (CBB), a subsidiary company of KPS.In order to strengthen the hospitality sector, CBB alsotook over 100% of Brisdale International Hotel Sdn Bhdfrom KHSB.


Templer Impian


P A G E 42

Trading Sector

The trading sector registered revenue and operatingprofits of RM33.271 million (2007:RM27.088 million) andRM1.351 million (2007:RM1.632 million) respectively.Trading activities were contributed by Hydrovest Sdn Bhd(Hydrovest), a subsidiary company with 60% equityholding. Hydrovest holds 60% equity in Aqua-Flo SdnBhd, which is involved in the trading of chemicals usedin water treatment plants and wastewater treatment,technical services and sales of equipments for the waterdistribution and wastewater industry. Hydrovest iscurrently gaining benefits through holding 25% interest inChemindus Sdn Bhd, manufacturer of chemical productsfor wastewater treatment industry.

Investment Holding

The investment holding sector shows a revenue ofRM5.745 million (2007:RM5.552 million) and operatingloss of RM14.087 million (2007:operating profitRM13.039 million) respectively. KPS’s investmentholding activities are in listed and non-listed shares. Thedecrease in operating profit in investment holding,especially in listed shares is due to the performance ofBursa Malaysia which was affected by the worldfinancial crisis.

Sektor Perdagangan

Sektor perdagangan mencatat jumlah perolehan dankeuntungan operasi masing-masing sebanyak RM33.271juta (2007: RM27.088 juta) dan RM1.351 juta (2007:RM1.632 juta). Aktiviti-aktiviti perdagangan adalahdisumbangkan oleh Hydrovest Sdn Bhd (Hydrovest),anak syarikat dengan pegangan ekuiti 60%. Hydrovestmemegang 60% ekuiti di dalam Aqua-Flo Sdn Bhd yangterlibat dalam perdagangan bahan kimia untuk kegunaanloji rawatan air bersih dan rawatan air kumbahan,perkhidmatan teknikal dan penjualan peralatan kepadaindustri bekalan air dan air kumbahan. Hydrovest sedangmeraih manfaat melalui pegangan 25% kepentingan didalam Chemindus Sdn Bhd, syarikat yang mengeluarkanproduk bahan kimia bagi kegunaan industri rawatan airkumbahan.

Pegangan Pelaburan

Sektor pegangan pelaburan mencatat perolehan dankerugian operasi masing-masing sebanyak RM5.745 juta(2007: RM5.552 juta) dan RM14.087 juta (2007:keuntungan operasi RM13.039 juta). Aktiviti pelaburanKPS adalah melalui pegangan di dalam saham-sahamtersenarai dan tidak tersenarai. Penurunan keuntunganoperasi di dalam pegangan pelaburan, terutamanyadalam saham tersenarai adalah disebabkan prestasiBursa Malaysia yang terjejas kesan krisis kewangandunia.


Water analysis using Jar Tester to measure optimum dosing of alum -Sungai Semenyih Water Treatment Plant


P A G E 43

ECONOMIC ENVIRONMENT – WATER INDUSTRY

In line with the legislation of the Water Services IndustryAct 2006 and the National Water Services CommissionAct 2006 aimed at streamlining all water supply servicesand the national sewerage system, the FederalGovernment through Pengurusan Aset Air Berhad at theend of 2008 and early 2009 has taken over the waterdistribution assets of the State Government of Malacca(worth RM900 million), the State Government of NegeriSembilan (worth RM1.21 billion) and the StateGovernment of Johor (worth RM4.03 billion). In the caseof Selangor, the Cabinet had on February 5, 2008 madethe decision for water consolidation to be carried out andlead by KDEB. Discussions between the StateGovernment of Selangor and the Federal Government torestructure and take over the water distribution assets inSelangor, Kuala Lumpur and Putrajaya is close tofinalizing.

CORPORATE GOVERNANCE

KPS affirms to the commitment in observing andmaintaining the standards in corporate governance. Wedo so by fully subscribing to the principles and bestpractices as contained in the Malaysian Code ofCorporate Governance. Additionally, the Board judiciouslyplays its role in enhancing the business integrity andgovernance to ensure that the interests of allshareholders are protected.

PERSEKITARAN EKONOMI – INDUSTRI AIR

Selaras dengan penggubalan Akta Industri PerkhidmatanAir 2006 dan Akta Suruhanjaya Perkhidmatan Air Negara2006 bertujuan menyeragamkan peraturan semuaperkhidmatan bekalan air dan sistem pembentungannegara, Kerajaan Persekutuan melalui syarikatPengurusan Aset Air Berhad pada akhir tahun 2008 danawal tahun 2009 telah mengambilalih aset-aset bekalanair daripada Kerajaan Negeri Melaka (bernilai RM900juta), Kerajaan Negeri Sembilan (bernilai RM1.21 bilion)dan Kerajaan Negeri Johor (bernilai RM4.03 bilion). Bagikes di Selangor, Kabinet pada 5 Februari 2008 telahmembuat keputusan bahawa penggabungan air akandilaksana dan diketuai oleh KDEB. Perbincangan antaraKerajaan Negeri Selangor dengan Kerajaan Persekutuansedang dalam proses dimuktamadkan bagi tujuanmenstruktur dan mengambilalih aset-aset bekalan air diSelangor, Kuala Lumpur dan Putrajaya.

TADBIR URUS KORPORAT

KPS akan terus memberikan komitmen tinggi bagimemantau dan mengekalkan piawaian yang ketatterhadap tadbir urus korporat. Kami sepenuhnya akanmempraktikkan prinsip dan amalan terbaik seperti yangterkandung dalam Kod Tadbir Urus Korporat Malaysia.Tambahan pula, Lembaga Pengarah berperanan pentingdalam mempertingkatkan integriti perniagaan dan tadbirurus korporat untuk memastikan kepentingan pemegang-pemegang saham dilindungi.



P A G E 44

COMMITMENT AND ACKNOWLEDGEMENT

On behalf of the Board, I would like to acknowledge themanagement and staff for their support and resilienceagainst a very challenging backdrop, which haspositioned us strongly in the eyes of the investors,demonstrating our ability to be a desirable partner andbecoming a strong asset within the industries we venture.Our highest priority, apart from fueling future revenues, isto serve the interests of our shareholders, clients,employees and the communities in which we operate.

KOMITMEN DAN PENGHARGAAN

Bagi pihak Lembaga Pengarah, saya ingin mengucapkanpenghargaan kepada pengurusan dan warga kerja diatas sokongan dan ketabahan menghadapi cabaran,yang telah menjadikan kami kukuh di mata pelabur-pelabur, menunjukkan kebolehan untuk menjadi rakanniaga yang diingini dan menjadi aset yang berharga didalam industri-industri yang diceburi. Matlamat utamakami, selain dari menambahkan pendapatan masahadapan, adalah untuk berkhidmat bagi kepentinganpelabur-pelabur, pelanggan, kakitangan dan masyarakatdi mana kami beroperasi.

DATO’ HJ ABD KARIM MUNISARDSSA, SSA, KMN, ASA

Executive Chairman


Statement Of Corporate Governance

The Board of Directors (the Board) of Kumpulan Perangsang Selangor Berhad (the Company) recognises the exerciseof good corporate governance in conducting the business and affairs of the Company with integrity, transparency andprofessionalism as a key component for the Company’s continued progress and success. These will not only safeguardand enhance shareholders’ investments and value but will at the same time ensure that the interests of othershareholders are protected.

The Board places importance in adopting the Principles and Best Practices set out in the Malaysian Code on CorporateGovernance (the Code) and is committed in ensuring that good corporate governance is observed and practicedthroughout the Group to safeguard and enhance long term shareholders' value.

The Board is pleased to report to the shareholders of the Company on the manner in which the Group has appliedthe Principles of Good Governance and the extent to which it has complied with the Best Practices set out in theCode.

A. BOARD OF DIRECTORS

1. Duties of Board of Directors

The Board of the Company takes full responsibility for the performance of the Group. The Board guides theCompany on its short and long term goals, providing advice and devising strategies on management andbusiness development issues while providing balance to the management of the Company.

The Board reserves the right to make decisions with respect to areas significant to the Group's business,which include the approval of corporate plans and annual budgets, announcements of interim results,material acquisitions/disposals of business and/or assets, approval of major capital expenditure projects,consideration of significant financial matters, appointments to the Board and changes to the keymanagement and control structure within the Group.

The Board has also delegated certain of its responsibilities to other board committees, which operatesunder approved terms of reference.

The respective committee reports are disclosed on pages 68 to 71 of this Annual Report.

2. Composition of the Board

The Board of KPS consists of five (5) members:

i. Executive Chairmanii. Executive Directoriii. Three (3) Independent Non-Executive Directors

The Directors include professionals in the fields of economics, finance, law and accounting and seniorcivil administrators. The information of all the directors is set out on pages 18 to 23 of this AnnualReport.

The current composition of the Board complies with the listing requirements of the Bursa MalaysiaSecurities Berhad (Bursa Securities). The composition of the Board shall be reviewed on a needbasis by the Nomination Committee to ensure that the Board has the required mix of skills, expertise,attributes and core competencies to discharge its duties effectively.

There is a clear division of responsibility between the Executive Chairman and the Executive Directorto ensure that there is a balance of power and authority. The presence of Independent Non-ExecutiveDirectors who are independent of the management, fulfill a pivotal role in corporate accountability asthey are free from any business and other relationships that could interfere with their exercise ofindependent judgement or the ability to act in the best interests of the Company.


P A G E 45


P A G E 46


3. Board Meetings and Supply of Information

The Board meets regularly to review the business operations, financial performance and other significantmatters of the Group requiring its attention. Besides board meetings, the Board also exercises control onmatters that require Board's approval through circulation of resolutions. During the financial year ended 31December 2008, seven (7) board meetings were held and the respective directors' attendance are as follows:

Name of Directors Attendance

Dato' Haji Abd Karim bin Munisar 7/7

Dato' Haji Azlan bin Hashim 7/7

Dato' Haji Ab Halim bin Mohyiddin 7/7

Tuan Haji Zain Azahari bin Zainal Abidin 3/3(appointed wef. 20/6/2008)

Encik Wong Yien Kim 7/7

Dato' Haji Sumadi bin Haji Ismail 2/2(resigned wef. 22/4/2008)

Senator Dato' Haji Ikhwan Salim bin Dato' Sujak 2/2(resigned wef. 22/4/2008)

Dato' Dr Haji Karim bin Haji Mansor 1/2(resigned wef. 22/4/2008)

Dato' Dr Amran bin Kasimin 2/2(resigned wef. 22/4/2008)

Dato' Yip Kam Chong 2/2(deceased wef. 12/3/2008)

The Board is provided with agendas and board papers prior to board meetings. The board papers includeminutes of the previous meeting, quarterly performance report of the Group, corporate and strategicproposals for the Board’s review and approval. These documents are issued in advance to enable theBoard to seek clarifications from the management before the board meetings to enable effective dischargeof its duties.

The Board members have access to the advice and services of the Company Secretary and otherprofessionals on all information in relation to the Group whether as a full Board or in their individual capacityto assist them in the furtherance of their duties.

4. Directors’ Training

All the Directors have completed the Mandatory Accreditation Programme and, except Tuan Haji Zain Azaharibin Zainal Abidin who was appointed on 20 June 2008, have met the requirements of the ContinuousEducation Programme as prescribed by the Bursa Securities previously.

In addition, the Directors have also attended the relevant training programme pursuant to the requirementsof the Bursa Securities to broaden their perspectives and to keep abreast with the development in the businessenvironment as well as relevant new regulatory requirements.


P A G E 47


Training programmes and seminars attended by the Directors during the year were as follows:

Name of Directors Programmes

YBhg Dato’ Haji Abd Karim bin Munisar Understanding Financial Reporting For Directors And Senior Management

YBhg Dato' Haji Azlan bin Hashim The Greatness Challenge: Just How Does Your Organization Measure Up?

UBS Sharing Insights Seminar: Investment Styles for Bull & Bear Markets

2nd International CEO's Conference 2008

UBS Sharing Insights Seminar: Trusts & Succession Planning

Lecture Series: Sime Darby Sustainable Futures

Strategy Execution & Leadership in Today's Uncertain Times

YBhg Dato' Haji Ab Halim bin Mohyiddin Financial Reporting Standards in Malaysia - An Overview

The Economic Value Added (EVA) Approach to Value Creation

Risk Management: Challenges and Opportunities

Board of Directors & Senior Management Programme: Briefing on Anti-Money Laundering and Anti-Terrorism Act 2001 (AMLA)

Directors' Duties & Liabilities, Beyond Compliance (an evolving story)

MICPA-BURSA Malaysia Business Forum 2008

What's Next - Managing Business Realities & Challenges in an Uncertain World

Innovation & Creativity For Business Growth

Encik Wong Yien Kim Mergers & Acquisitions Masterclass Workshop

Tuan Haji Zain Azahari bin Zainal Abidin Will continue to attend relevant training programmes in year 2009


P A G E 48


The Directors will continue to attend other relevant training programmes as appropriate to enhance theirskills and knowledge.

5. Re-election of Directors

In accordance with the Company’s Articles of Association, all directors who are appointed by the Board aresubject to election by shareholders at the first opportunity after their appointment. The Articles also providethat at least one third of the remaining Directors be subject to re-election by rotation at each Annual GeneralMeeting provided always that all Directors including the Executive Director shall retire from office at leastonce every three years but shall be eligible for re-election.

The Board has empowered the Nomination Committee to consider and make their recommendation to theBoard for the continuation in service of those Directors who are due for retirement.

Directors over the age of seventy (70) years of age are required to offer themselves for re-election at eachAnnual General Meeting in accordance with Section 129(6) of the Companies Act, 1965.

B. RELATIONSHIP WITH SHAREHOLDERS

The Company recognises the importance of transparency and accountability in disclosures of the Group’sbusiness activities to its shareholders and investors. The Board has maintained an effective communicationspolicy that enables both the Board and Management to communicate effectively with its shareholders, investorsand even the public vide the following:

i. The Annual Report and relevant circulars despatched to shareholders and published in the Company's website; and

ii. Issuance of various disclosures and announcements inclusive of the quarterly financial performance of the Group to Bursa Securities.

In addition, the Group has established a website at http://www.kps.com.my which shareholders can access forinformation and seek clarification on the Group’s matters.

Alternatively, they may obtain the Group's latest announcements via the Bursa Securities website athttp://announcements.bursamalaysia.com

Annual General Meeting (AGM)

The AGM is the principal forum for dialogue with shareholders.

The Annual Report together with the Notice of AGM are sent to shareholders within the prescribed period asallowed under the Company's Memorandum and Articles of Association, listing requirements of Bursa Securitiesas the case maybe.

At the AGM, the shareholders are given the opportunity to seek clarification on any matter pertaining to thebusiness activities and financial performance of the Company and of the Group. Additionally, a press conferencemay be held after the AGM to brief the media on the Group's performance for the financial year and futureprospect.


P A G E 49


C. ACCOUNTABILITY AND AUDIT

1. Internal Control and Risk Management

The Board acknowledges its responsibility for establishing a sound system of internal control to safeguardshareholders’ investments and Group’s assets, and to provide assurance on the reliability of the financialstatements. In addition, equal priority is given to internal control of its business management and operationaltechniques.

While the internal control system is devised to cater for particular needs of the Group as well as riskmanagement, such controls by their nature can only provide reasonable assurance but not absoluteassurance against material mis-statement or loss. A financial statement of internal control is set out onpages 62 to 64 of this Annual Report.

Establishment of the Risk Management Policy is to identify, evaluate and manage the Group’s corporaterisk profile and develop contingency plans to mitigate any possible adverse effects on the Group.

2. Financial Reporting

In presenting the annual financial statements and quarterly announcements of its results, the Board hasensured that the financial statements represent a true and fair assessment of the Company’s and Group’sfinancial position.

3. Relationship with Auditors

The role of the Audit Committee in relation to the external auditors may be found in the Audit CommitteeReport included in this Annual Report. The Company and its management have always maintained a closeand transparent relationship with its auditors in seeking professional advice and ensuring compliance withthe accounting standards in Malaysia.

D. ADDITIONAL COMPLIANCE INFORMATION

In compliance with the Listing Requirements of Bursa Securities the following additional information in respectof the financial year ended 31 December 2008 are provided:

1. Share Buy Back

The Company does not have any share buy back scheme.


P A G E 50


2. Options Granted And Terminated In The Financial Year 2008

During the financial year under review, the number of Options granted and terminated are as follows:

Grant Date Expiry Exercised As At Granted Terminated Exercised As AtDate Price 1/1/2008 ‘000 ‘000 ‘000 31/12/2008

RM ‘000 ‘000

12/8/2003 29/7/2011 1.62 6,175 - - (2,245) 3,93027/2/2007 29/7/2011 1.00 3,250 - - - 3,25029/3/2007 29/7/2011 1.00 1,733 - - (1,733) -23/7/2007 29/7/2011 1.62 1,269 - - (514) 75526/7/2007 29/7/2011 1.62 437 - - (345) 923/8/2007 29/7/2011 1.98 40 - - (15) 2517/7/2008 29/7/2011 1.93 - 550 - - 55010/11/2008 29/7/2011 1.37 - 200 - - 200

12,904 750 - (4,852) 8,802

3. Sanctions And/Or Penalties Imposed On The Company And Its Subsidiaries, Directors OrManagement By The Relevant Regulatory Bodies

There were no material sanctions or penalties imposed on the Company and its subsidiaries, directors ormanagement by the relevant regulatory bodies during the financial year 2008.

4. Profit Guarantees

During the financial year 2008, there were no profit guarantees given by the Company.

5. Material Contract

Other than as disclosed in Notes 46 and Notes 49 to the Financial Statements, there were no materialcontracts entered into by the Company and its subsidiaries involving Directors and major shareholders.

6. Variance in Results

There were no variances of 10% or more between the results for the financial year ended 31 December2008 and the unaudited results previously announced.

7. Utilisation of Proceeds

The Company did not call or raise any capital for the financial year ended 31 December 2008.

8. Non-Audit Fees

The amount of non-audit fees paid to external auditors by the Company and its subsidiaries for the financialyear 2008 was RM109,000.00.


P A G E 51


9. Revaluation Policy on Landed Properties

The Company does not have a policy of regular revaluation of landed properties.

10. American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme

The Company did not sponsor any ADR or GDR programme during the financial year under review.

11. List of Properties

The Company’s list of properties is set out on pages 186 to 189 of this Annual Report.

12. Recurrent Related Party Transactions of Revenue or Trading Nature

The Company is not required to obtain mandate for recurrent related party transactions of revenue ortrading nature in the financial year ended 31 December 2008.

E. BOARD COMMITTEES

1. Audit Committee

The composition and functions of the Audit Committee are laid down on pages 68 to 71 of this AnnualReport.

2. Employee Share Option Scheme (ESOS) Committee

The ESOS Committee was established to administer the implementation of KPS Employee Share OptionScheme in accordance with the approved bye-laws; to determine participation eligibility, option offers, shareallocations; and to attend to such other matters as may be required.

The members of the Committee met once during the year to deliberate on issues relating to the Scheme.

3. Nomination Committee

The Nomination Committee is responsible for recommending suitable candidate with the necessary skills,experience and competencies to be appointed to the Board and also assessing the effectiveness of theBoard and the contribution of each director. The Board, through this Committee, review the required mixof skills and experience and other qualities the Board requires in order for it to discharge its dutieseffectively.

During the financial year, the Board accepted the recommendations by the Nomination Committee for theappointment of Tuan Haji Zain Azahari bin Zainal Abidin as a new Board Member and Audit Committee, aswell as that on renewal of YBhg Dato' Haji Abd Karim bin Munisar contract of service as Executive Chairmanof KPS. Matters pertaining to Directors' retirement in accordance with the Company's Article of Associationwere also discussed and decided. The Nomination Committee met thrice (3) during the year.

4. Remuneration Committee

The Company has adopted the objective as recommended by the Code on Corporate Governance todetermine the remuneration of the Directors so as to ensure that the Company attracts and retains theDirectors needed to run the Company successfully. The component parts are designed to link rewards tocorporate and individual performance in the case of Executive Directors.


P A G E 52

The Remuneration Committee met twice (2) during the year to review and recommend the revisedincreased in meeting allowance of the Audit Committee after taking into consideration the additionalresponsibilities of the Audit Committee. The Remuneration Committee also reviewed and recommendedto the Board the annual bonus and salary increment of the Company's employees.

A summary of the remuneration of the Directors for the financial year ended 31 December 2008,distinguishing between Executive Directors and Non-Executive Directors in aggregate, with categorisationinto appropriate components is set out below:

Executive Non-ExecutiveDirectors Directors Total

RM RM RM

Fees 433,056 287,070 720,126Salary 1,424,708 - 1,424,708Bonus 557,500 - 557,500Benefit-in-kind 158,100 158,699 316,799Others 72,300 100,100 172,400

Remuneration Band (RM) Executive Director Non-Executive Directors

Less than 50,000 - 3

50,001 - 100,000 - 3

100,001 - 150,000 - 1

150,001 - 200,000 - 1

1,000,001 - 1,050,000 1 -

1,600,001 - 1,650,000 1 -



P A G E 53

Lembaga Pengarah (Lembaga) Kumpulan Perangsang Selangor Berhad (Syarikat) mengiktiraf bahawa amalan tadbirurus korporat yang memuaskan semasa mengendalikan urusan perniagaan dan hal ehwal Syarikat secara berwibawa,telus dan profesional merupakan komponen penting bagi memastikan Syarikat mencapai kemajuan dan kejayaanberterusan. Ia bukan sahaja akan melindungi dan mempertingkatkan pelaburan dan nilai pemegang saham, malahpada masa yang sama akan memastikan supaya kepentingan pemegang-pemegang saham lain turut dilindungi.

Lembaga memberi kepentingan kepada mempraktikkan Prinsip-prinsip dan Amalan-amalan Terbaik yang digariskandi dalam Kod Tadbir Urus Korporat Malaysia (Kod) dan amat komited dalam memastikan agar tadbir urus korporatyang baik diserap serta dipraktikkan di dalam Kumpulan untuk melindungi dan meningkatkan lagi nilai pemegang-pemegang saham.

Lembaga amat berbesar hati untuk melaporkan kepada pemegang-pemegang saham Syarikat berkenaan cara iamengguna pakai prinsip-prinsip Kod berkenaan dan sejauh mana ia telah mematuhi amalan-amalan terbaik Kodtersebut.

A. LEMBAGA PENGARAH

1. Tanggungjawab Lembaga Pengarah

Lembaga Syarikat bertanggungjawab sepenuhnya ke atas prestasi Kumpulan. Lembaga memberi panduankepada Syarikat untuk mencapai matlamat jangka pendek dan jangka panjangnya, menyediakan khidmatnasihat dan merangka strategi ke atas isu-isu pengurusan dan pembangunan perniagaan di sampingmemastikan keseimbangan kepada pengurusan Syarikat.

Lembaga mempunyai kuasa mutlak untuk membuat keputusan berkaitan dengan perkara-perkara yangmelibatkan perniagaan Kumpulan termasuk kelulusan bagi rancangan korporat dan bajet tahunan,pengumuman keputusan suku tahunan, pengambilalihan/penjualan pelaburan dan/atau aset-aset,keputusan bagi projek-projek yang melibatkan perbelanjaan modal yang besar, pertimbangan untuk urusankewangan yang ketara, perlantikan Lembaga dan perubahan pengurusan utama serta struktur kawalan didalam Kumpulan.

Lembaga juga telah memberi tanggungjawab tertentu kepada jawatankuasa-jawatankuasa Lembaga yanglain yang berfungsi mengikut garis panduan dan terma-terma rujukan yang diluluskan.

Laporan-laporan Jawatankuasa adalah sebagaimana dikemukakan dalam Laporan Tahunan ini di mukasurat 72 hingga 75.

2. Komposisi Lembaga

Lembaga KPS pada masa ini mempunyai lima (5) ahli terdiri daripada:

i. Pengerusi Eksekutifii. Pengarah Eksekutifiii. Tiga (3) Pengarah Bukan Eksekutif Bebas

Pengarah-pengarah terdiri daripada golongan profesional dalam bidang ekonomi, kewangan, perundangandan perakaunan serta pentadbir-pentadbir awam kanan. Maklumat mengenai kesemua pengarahdikemukakan di muka surat 18 hingga 23 Laporan Tahunan ini.

Penyata Tadbir Urus Korporat


P A G E 54

Komposisi semasa Lembaga mematuhi syarat-syarat penyenaraian Bursa Malaysia Securities Berhad(Bursa Securities). Komposisi Lembaga akan dikaji mengikut keperluan oleh Jawatankuasa Pencalonanuntuk memastikan bahawa Lembaga mempunyai kriteria kemahiran, kepakaran, sifat dan kecekapan terasuntuk melaksanakan tugasnya secara berkesan.

Terdapat pembahagian tanggungjawab yang jelas di antara Pengerusi Eksekutif dan Pengarah Eksekutifbagi memastikan terdapat keseimbangan di dalam bidang kuasa. Kehadiran Pengarah Bukan EksekutifBebas yang bebas daripada pengurusan, memenuhi peranan utama dalam kebertanggungjawapankorporat memandangkan mereka adalah bebas daripada mana-mana hubungan perniagaan dan lain-lainhubungan yang boleh mengganggu pelaksanaan pertimbangan bebas atau keupayaan mereka untukbertindak demi kepentingan terbaik Syarikat.

3. Mesyuarat-mesyuarat Lembaga dan Bekalan Maklumat

Mesyuarat Lembaga dilaksanakan secara konsisten untuk menilai semula operasi perniagaan, prestasikewangan dan hal-hal penting yang memerlukan perhatian Lembaga. Selain daripada mesyuarat-mesyuarat Lembaga, Lembaga turut melaksanakan kawalan ke atas perkara-perkara yang memerlukanpersetujuan Lembaga melalui pengedaran resolusi-resolusi. Dalam tahun kewangan berakhir 31 Disember2008, tujuh (7) Mesyuarat Lembaga telah diadakan dan kehadiran pengarah-pengarah adalah sepertiberikut:

Nama Pengarah-Pengarah Kehadiran

Dato' Haji Abd Karim bin Munisar 7/7

Dato' Haji Azlan bin Hashim 7/7

Dato' Haji Ab Halim bin Mohyiddin 7/7

Tuan Haji Zain Azahari bin Zainal Abidin 3/3(Dilantik pada 20/6/2008)

Encik Wong Yien Kim 7/7

Dato' Haji Sumadi bin Haji Ismail 2/2(Meletakan jawatan pada 22/4/2008)

Senator Dato' Haji Ikhwan Salim bin Dato' Sujak 2/2(Meletakan jawatan pada 22/4/2008)

Dato' Dr Haji Karim bin Haji Mansor 1/2(Meletakan jawatan pada 22/4/2008)

Dato' Dr Amran bin Kasimin 2/2(Meletakan jawatan pada 22/4/2008)

Dato' Yip Kam Chong 2/2(Meninggal dunia pada 12/3/2008)



P A G E 55

Lembaga disediakan dengan agenda-agenda dan kertas-kertas Lembaga sebelum mesyuarat Lembaga.Kertas-kertas Lembaga termasuk minit mesyuarat terdahulu, laporan prestasi suku tahunan Kumpulan,cadangan korporat dan strategik bagi semakan dan kelulusan Lembaga. Dokumen-dokumen inidikeluarkan lebih awal untuk membolehkan Lembaga mendapat penjelasan daripada pengurusan sebelummesyuarat Lembaga bagi membolehkan tugas-tugasan dilaksanakan dengan berkesan.

Ahli-ahli Lembaga boleh menggunakan nasihat dan khidmat Setiausaha Syarikat dan ahli-ahli profesionalbagi semua maklumat berhubung dengan Kumpulan sama ada dalam keupayaan Lembaga penuh atausecara individu untuk membantu mereka dalam menjalankan tugas-tugas.

4. Latihan Pengarah-pengarah

Semua Pengarah telah menamatkan Program Akreditasi Mandatori dan, kecuali Tuan Haji Zain Azahari binZainal Abidin yang telah dilantik pada 20 Jun 2008, memenuhi keperluan Program Pendidikan Berterusanseperti yang dikehendaki oleh Bursa Securities sebelum ini.

Di samping itu, semua Pengarah turut menyertai program latihan yang berkaitan selaras dengan syarat-syarat Bursa Securities bagi meluaskan perspektif dan mendapatkan maklumat terkini berkenaanperkembangan di dalam persekitaran perniagaan, serta syarat-syarat terbaru kawal selia yang berkaitan.

Program-program latihan dan seminar-seminar yang dihadiri oleh Pengarah-pengarah dalam tahun iniadalah seperti berikut:

Nama Pengarah-pengarah Program-program

YBhg Dato’ Haji Abd Karim bin Munisar Understanding Financial Reporting For Directors And Senior Management

YBhg Dato' Haji Azlan bin Hashim The Greatness Challenge: Just How Does Your Organization Measure Up?

UBS Sharing Insights Seminar: Investment Styles for Bull & Bear Markets

2nd International CEO's Conference 2008

UBS Sharing Insights Seminar: Trusts & Succession Planning

Lecture Series: Sime Darby Sustainable Futures

Strategy Execution & Leadership in Today's Uncertain Times

YBhg Dato' Haji Ab Halim bin Mohyiddin Financial Reporting Standards in Malaysia - An Overview

The Economic Value Added (EVA) Approach to Value Creation



P A G E 56

Nama Pengarah-pengarah Program-program

Risk Management: Challenges and Opportunities

Board of Directors & Senior Management Programme: Briefing on Anti-Money Laundering and Anti-Terrorism Act 2001 (AMLA)

Directors' Duties & Liabilities, Beyond Compliance (an evolving story)

MICPA-BURSA Malaysia Business Forum 2008

What's Next - Managing Business Realities & Challenges in an Uncertain World

Innovation & Creativity For Business Growth

Encik Wong Yien Kim Mergers & Acquisitions Masterclass Workshop

Tuan Haji Zain Azahari bin Zainal Abidin Akan terus menghadiri program-program latihan yang berkaitan dalam tahun 2009.

Pengarah-pengarah akan terus menghadiri program-program latihan berkaitan yang sesuai untukmempertingkatkan kemahiran dan pengetahuan mereka.

5. Pemilihan Semula Pengarah-pengarah

Selaras dengan Tataurusan Pertubuhan Syarikat, semua Pengarah yang dilantik oleh Lembaga adalahtertakluk kepada pemilihan oleh pemegang-pemegang saham pada peluang pertama selepas pelantikanmereka. Tataurusan juga memperuntukkan bahawa sekurang-kurangnya satu pertiga daripada Pengarahselebihnya adalah tertakluk kepada pemilihan semula mengikut pusingan pada setiap Mesyuarat AgungTahunan dengan syarat kesemua Pengarah termasuk Pengarah Eksekutif hendaklah bersara dari pejabatsekurang-kurangnya satu kali setiap tiga tahun tetapi adalah layak untuk pemilihan semula.

Lembaga memberi kuasa kepada Jawatankuasa Pencalonan untuk menimbang dan memberi cadanganmereka kepada Lembaga bagi meneruskan khidmat Pengarah-pengarah yang telah sampai masa untukbersara.

Pengarah-pengarah yang berusia lebih tujuh puluh (70) tahun dikehendaki menawarkan diri mereka untukpemilihan semula di setiap Mesyuarat Agung Tahunan selaras dengan Seksyen 129(6) Akta Syarikat, 1965.



P A G E 57

B. HUBUNGAN DENGAN PEMEGANG-PEMEGANG SAHAM

Syarikat menyedari kepentingan ketelusan dan kebertanggungjawapan dalam pendedahan aktiviti perniagaanKumpulan kepada pemegang-pemegang saham dan pelabur-pelaburnya. Lembaga telah mengekalkan polisikomunikasi yang berkesan yang membolehkan kedua-dua Lembaga dan Pengurusan berkomunikasi secaraefektif dengan pemegang-pemegang saham, pelabur-pelabur malah orang awam juga melalui kaedah berikut:

i. Laporan Tahunan dan pekeliling-pekeliling yang berkaitan yang dihantar kepada pemegang-pemegang saham dan diterbitkan di laman web Syarikat; dan

ii. Terbitan pelbagai pemberitahuan dan pengumuman termasuk keputusan kewangan suku tahunan Kumpulan yang dibuat kepada Bursa Securities.

Di samping itu, Kumpulan turut mewujudkan sebuah laman web yang beralamat di http://www.kps.com.my dimana pelabur-pelabur boleh mendapatkan maklumat dan penjelasan lanjut mengenai Kumpulan.

Sebagai alternatif, pelabur-pelabur boleh mendapatkan pengumuman-pengumuman terkini mengenai Kumpulanmelalui laman web Bursa Securities di http://announcements.bursamalaysia.com

Mesyuarat Agung Tahunan (MAT)

MAT merupakan forum dialog utama dengan pemegang-pemegang saham.

Laporan Tahunan bersama-sama dengan Notis MAT dihantar kepada pemegang-pemegang saham dalam kadarmasa tertentu seperti yang dibenarkan di bawah Artikel dan Memorandum Pertubuhan Syarikat, ataupun dalamkes tertentu keperluan penyenaraian Bursa Securities.

Semasa prosiding MAT, pemegang-pemegang saham diberi peluang untuk mendapatkan penjelasan berhubungpelbagai aspek berkaitan aktiviti dan prestasi kewangan Syarikat dan Kumpulan. Disamping itu juga, satu sidangmedia boleh diadakan sebaik sahaja selepas MAT, bagi memaklumkan kepada media berkenaan prestasiKumpulan bagi tahun kewangan yang berkenaan dan prospek masa hadapan.

C. KEBERTANGGUNGJAWAPAN DAN AUDIT

1. Kawalan Dalaman Dan Pengurusan Risiko

Lembaga mengesahkan tanggungjawabnya bagi menubuhkan sistem kawalan dalaman yang baik untukmengawal pelaburan pemegang-pemegang saham dan aset-aset Kumpulan, dan untuk memastikankesahihan penyediaan penyata kewangan. Selain itu, keutamaan sama rata diberikan kepada kawalandalaman pengurusan perniagaan dan teknik operasi.

Walaupun sistem kawalan dalaman dirangka untuk memenuhi keperluan khusus Kumpulan dan jugapengurusan risiko, kawalan sedemikian mengikut sifatnya hanya boleh memberikan kepastian yangberpatutan dan bukan mutlak terhadap salah nyata ketara atau kerugian. Penyata kawalan dalamandikemukakan pada muka surat 65 hingga 67 dalam Laporan Tahunan ini.

Penubuhan Polisi Pengurusan Risiko bertujuan untuk mengenalpasti, menilai dan mengurus profil risikokorporat Kumpulan dan membangunkan rancangan kontingensi untuk mengurangkan sebarang kesanyang buruk ke atas Kumpulan.



P A G E 58

2. Laporan Kewangan

Dalam membentangkan penyata-penyata kewangan tahunan dan pengumuman keputusan-keputusansuku tahunan, Lembaga telah memastikan bahawa penyata-penyata kewangan menunjukkan penilaiansebenar dan adil tentang kedudukan kewangan Syarikat dan Kumpulan.

3. Hubungan Dengan Juruaudit

Peranan Jawatankuasa Audit dalam hubungannya dengan juruaudit luar adalah seperti yang dinyatakandi dalam Laporan Jawatankuasa Audit, Laporan Tahunan ini. Syarikat dan pengurusannya sentiasamemastikan wujudnya hubungan yang telus dan rapat dengan juruaudit-juruauditnya dalam usahamendapatkan nasihat profesional dan pematuhan kepada piawaian-piawaian perakaunan di Malaysia.

D. MAKLUMAT PEMATUHAN TAMBAHAN

Selaras dengan Peraturan Penyenaraian Bursa Securities maklumat-maklumat berikut turut disenaraikan bagitahun kewangan yang berakhir pada 31 Disember 2008.

1. Pembelian Semula Saham

Syarikat tidak mempunyai skim pembelian balik saham.

2. Opsyen Yang Ditawarkan Dan Ditamatkan Dalam Tahun Kewangan 2008

Dalam tahun kewangan yang dikaji, bilangan opsyen yang ditawarkan dan ditamatkan adalah sepertiberikut:

Tarikh Tarikh Harga Pada Ditawar Ditamatkan Jumlah PadaTawaran Tamat Perlaksanaan 1/1/2008 ‘000 ‘000 Dilaksanakan31/12/2008

Tempoh RM ‘000 ‘000 ‘000

12/8/2003 29/7/2011 1.62 6,175 - - (2,245) 3,93027/2/2007 29/7/2011 1.00 3,250 - - - 3,25029/3/2007 29/7/2011 1.00 1,733 - - (1,733) -23/7/2007 29/7/2011 1.62 1,269 - - (514) 75526/7/2007 29/7/2011 1.62 437 - - (345) 923/8/2007 29/7/2011 1.98 40 - - (15) 2517/7/2008 29/7/2011 1.93 - 550 - - 55010/11/2008 29/7/2011 1.37 - 200 - - 200

12,904 750 - (4,852) 8,802



P A G E 59

3. Sanksi Dan/Atau Penalti Dikenakan Ke Atas Syarikat & Anak-Anak Syarikat, Pengarah-pengarahAtau Pengurusannya Oleh Badan Peraturan Berkaitan

Tidak ada sanksi atau penalti material yang dikenakan ke atas Syarikat dan anak-anak syarikatnya,pengarah-pengarah atau pengurusan oleh badan-badan berperaturan berkaitan dalam tahun kewangan2008.

4. Jaminan Keuntungan

Dalam tahun kewangan 2008, tidak ada jaminan keuntungan diberikan oleh Syarikat.

5. Kontrak Penting

Selain daripada yang dimaklumkan di dalam Nota 46 dan Nota 49 Penyata Kewangan, Syarikat dan anak-anak syarikatnya tidak menandatangani apa-apa kontrak penting yang melibatkan Pengarah-pengarahdan pemegang saham utama.

6. Perbezaan Hasil Pencapaian

Tiada perbezaan sebanyak 10% ataupun lebih bagi hasil pencapaian tahun kewangan yang berakhir pada31 Disember 2008 dan keputusan-keputusan belum audit yang diumumkan.

7. Penggunaan Pendapatan

Syarikat tidak membuat sebarang panggilan atau penambahan modal untuk tahun kewangan berakhir 31Disember 2008.

8. Yuran Bukan Audit

Jumlah yuran bukan audit yang dibayar kepada juruaudit luaran oleh Syarikat dan anak-anak syarikatnyabagi tahun kewangan 2008 ialah RM109,000.00.

9. Polisi Penilaian Semula Hartanah

Syarikat tidak mempunyai polisi bagi penilaian berkala hartanahnya.

10. Program Resit Depositori Amerika (“ADR”) atau Resit Depositori Global (“GDR”)

Syarikat tidak menaja sebarang program “ADR” atau “GDR” bagi tahun kewangan yang ditinjau.

11. Senarai Hartanah

Senarai hartanah Syarikat dinyatakan pada muka surat 186 hingga 189 Laporan Tahunan ini.

12. Urus Niaga Pihak Berkaitan yang Berulang bagi Perolehan atau Berbentuk Perdagangan

Syarikat tidak perlu mendapat mandat untuk urus niaga pihak berkaitan yang berulang bagi perolehanatau berbentuk perdagangan dalam tahun kewangan berakhir 31 Disember 2008.


E. JAWATANKUASA-JAWATANKUASA LEMBAGA

1. Jawatankuasa Audit

Komposisi dan fungsi-fungsi Jawatankuasa Audit adalah seperti dimaklumkan dimuka surat 72 hingga 75dalam Laporan Tahunan ini.

2. Jawatankuasa Skim Opsyen Saham Kakitangan (“ESOS”)

Jawatankuasa “ESOS” telah ditubuhkan untuk menguruskan pelaksanaan Skim Opsyen SahamKakitangan KPS selaras dengan undang-undang kecil, untuk menentukan kelayakan penyertaan, tawaranopsyen, peruntukan saham; dan menangani perkara-perkara lain sebagaimana mungkin diperlukan.

Ahli-ahli Jawatankuasa telah bermesyuarat sekali dalam tahun ini bagi membincangkan isu-isu berkaitanSkim.

3. Jawatankuasa Pencalonan

Jawatankuasa Pencalonan bertanggungjawab mengesyorkan calon-calon yang bersesuaian dari segikemahiran, pengalaman dan kelayakan untuk dilantik sebagai ahli Lembaga Pengarah dan juga menilaitahap keberkesanan Lembaga serta sumbangan setiap Pengarah. Lembaga, melalui Jawatankuasa ini,mengkaji kepakaran dan pengalaman serta kualiti-kualiti lain yang diperlukan bagi membolehkan Lembagamelaksanakan tugasnya dengan berkesan.

Dalam tahun kewangan, Lembaga telah menerima cadangan-cadangan Jawatankuasa Pencalonan bagiperlantikan Tuan Haji Zain Azahari bin Zainal Abidin sebagai ahli Lembaga baru serta ahli JawatankuasaAudit, dan pembaharuan kontrak perkhidmatan YBhg Dato' Haji Abd Karim bin Munisar sebagai PengerusiEksekutif KPS. Perkara-perkara berkaitan persaraan Pengarah-Pengarah mengikut Tataurusan Syarikatturut dibincang dan diputuskan. Jawatankuasa Pencalonan telah bermesyuarat tiga (3) kali dalam tahunini.

4. Jawatankuasa Imbuhan

Syarikat menerima pakai objektif sebagaimana yang disyorkan oleh Kod Tadbir Urus Korporat untukmenentukan imbuhan Pengarah-pengarah bagi memastikan Syarikat menarik dan mengekalkan Pengarah-pengarah yang diperlukan untuk mengendalikan Syarikat dengan jayanya. Bahagian-bahagian komponendibentuk untuk menghubungkan ganjaran kepada prestasi korporat dan individu bagi Pengarah-pengarahEksekutif.


P A G E 60


Jawatankuasa Imbuhan telah bermesyuarat dua (2) kali dalam tahun ini bagi mengkaji semula danmencadangkan kenaikan elaun Mesyuarat Jawatankuasa Audit setelah mempertimbangkan pertambahantanggungjawab Jawatankuasa Audit. Jawatankuasa Imbuhan juga mengkaji dan mengesyorkan kepadaLembaga bonus tahunan dan kenaikan gaji kakitangan-kakitangan Syarikat.

Satu ringkasan mengenai imbuhan kepada Pengarah-pengarah bagi tahun kewangan berakhir 31Disember 2008 dengan perbezaan di antara Pengarah-pengarah Eksekutif dan Pengarah-pengarah BukanEksekutif, dalam agregat, dikategorikan ke dalam komponen yang sesuai seperti dinyatakan di bawah:

Pengarah-pengarah Pengarah-pengarahEksekutif Bukan Eksekutif Jumlah

RM RM RM

Yuran-yuran 433,056 287,070 720,126Gaji 1,424,708 - 1,424,708Bonus 557,500 - 557,500Manfaat 158,100 158,699 316,799Lain-lain 72,300 100,100 172,400

Tahap Ganjaran (RM) Pengarah Eksekutif Pengarah-pengarahBukan eksekutif

Less than 50,000 - 3

50,001 - 100,000 - 3

100,001 - 150,000 - 1

150,001 - 200,000 - 1

1,000,001 - 1,050,000 1 -

1,600,001 - 1,650,000 1 -


P A G E 61



P A G E 62

Statement Of Internal Controls

1. Introduction

The Bursa Malaysia Securities Berhad Listing Requirements requires directors of listed companies to include astatement in their annual reports on the state of their internal controls. The Board of Directors is pleased to providethe following statement, which outlines the nature and scope of internal control of the Group during the financialyear ended 31 December 2008.

2. Responsibility of the Board

The Board recognises the importance of sound internal controls and risk management practices for good corporategovernance. The Board affirms its overall responsibility for the Group's system of internal controls and for reviewingits adequacy and integrity. Such a system covers not only financial controls but also controls relating to operational,risk management and compliance with applicable laws, regulations, rules, and guidelines.

In view of the inherent limitations in any system of internal control, this system is designed to identify and managerisk, rather than eliminate the risk of failure to achieve the Group’s business objectives. Accordingly, the systemcan only provide reasonable and not absolute assurance against material misstatement or loss.

The Group has in place ongoing processes for identifying, evaluating, monitoring and managing significant risksfaced by the Group during the year. The management is responsible for the identification and evaluation ofsignificant risks applicable to their respective areas of business and to formulate suitable internal controls. Thisprocess is reviewed by the Board via a specific Board Committee which dedicates its time at periodic intervalsthroughout the year for discussion on this matter.

Material associated companies have not been dealt with as part of the Group for the purpose of this internalcontrol statement. However, the Board is of the view that the management of these material associated companieshas an existing monitoring function to assist them in ensuring the system of internal controls is functioning asintended.

3. Risk Management

The Board has established an organisational structure with clearly defined lines of accountability and delegatedauthority. The monitoring and review of system of internal control was under the ambit of the Audit Committee sinceits formation in the year 1998. In the year 2002, the implementation of a risk management framework within theGroup was also included under the purview of the Audit Committee.

The Group has in place an on-going process for identifying, evaluating, monitoring and managing significant risks,and this process is regularly reviewed by the Audit Committee, who presents its findings to the Board. Risks areidentified and classified into ten (10) components namely, external, regulatory, legal, corporate governance,finance, customers, products and services suppliers, human capital and operational risks.


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A Risk Management Framework has been implemented in the Company and certain subsidiaries of the Group.The respective Management will review their Corporate Risk Scorecard on a regular basis. Significant changesin the risk profiles of the companies will be presented to the Audit Committee on a periodic basis.

4. Control Structure and Environment

The Board is fully committed to ensuring that a proper control environment is maintained within the Group. Thekey elements of the Group's internal control system are described below:

4.1 Board Committees have clearly defined roles and Terms of Reference

Respective Board Committees have individual roles and Terms of Reference, with clearly defined functions,authority and responsibilities. The management of the various companies in the Group is entrusted to therespective Chief Executive Officers, whose role and responsibilities are defined in the Job Description andwhose authority limits are set by the respective Boards. All major decisions require the final approval of theBoards within the Group and are only made after appropriate in-depth analysis. The respective Boards receiveregular and comprehensive information covering all divisions in the respective companies within the Group.

4.2 Independence of the Audit Committee

The Audit Committee comprises non-executive members of the Board who bringing with them a wide rangeof in-depth experience, knowledge and expertise. They continue to meet and have full and unimpeded accessto both the internal and external auditors during the financial year. The Audit Committee provides direction andoversight to the internal audit function to enhance its independence from management.

4.3 Documented internal policies and procedures

The Group continues to update the Standard Operating Manuals for improvement and to reflect changes inthe business structure and processes as and when necessary.

In 2008, the Group reviewed the Human Resource Policy Manual to enhance and streamline employeebenefits and employment policies to best market practices. The revised policies are scheduled to berecommended and implemented in phases, in 2009.

The Group also formulated and implemented the ICT Policy and Guidelines to ensure proper protection of ICTresources, data integrity and security. The ICT Policy and Guidelines were approved by the Board andenforced in April 2008.

In December 2008, KPS launched the ISO 9001:2008 Quality Management System initiative for its BuildingMaintenance Unit as a strategic move to enhance quality standards, improve customer service, continuoussystems and process improvement as well as achieving operational efficiency. The ISO Certification istargeted to be obtained for 1 April 2009.

The Board has also established a Tender Committee to ensure transparency, integrity and competitive pricingof the award process.


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4.4 Detailed budgeting process

A detailed budgeting process is established requiring all key operating companies in the Group to preparebudgets annually which are discussed at management level and approved by the respective Audit Committeeand Boards.

An effective reporting system on actual performance against approved budgets is in place whereby significantvariances are followed up on a quarterly basis and management action is taken to tighten or to rectify anyshortcomings, where necessary.

4.5 Human Resource Policies

Human Resource policies are established to provide support to the Group’s Vision and Mission. These policiesprovide guideline to staff on areas such as code of conduct and discipline, safety & health, equality ofopportunity, employee performance and related matters.

Key processes in the Performance Management System have also changed to support and drive the highperformance culture. Key Performance Indicators are strategically aligned to Group business objectives and forma key component in evaluating the performance of respective business and functional units within the Group.On-going internal and external training are provided to all staff to improve their knowledge, skills andcompetencies in the effective discharge of their duties.

5. Monitoring and Review

The processes adopted to monitor and review the effectiveness of the system of internal control are:

• All subsidiaries submit monthly Management Reports to the Executive Chairman and Executive Director. Thereport includes review of actual results against budget, with significant variance being explained and necessaryactions taken.

• The Board receives and reviews quarterly performance reports from the management of the various lines ofbusiness with financial performance and progress reports.

• The Group’s Internal Audit Function, which reports to the Executive Chairman and Audit Committee performsregular reviews on the internal control procedures and highlights significant risks affecting the Group. TheInternal Audit will follow up with the management in respect of the corrective actions taken on thoserecommendations. The Audit Committee reviews and approves the annual internal audit plan for the yearprior to their execution.

• The Audit Committee meets at least quarterly to review internal audit findings, discuss risk management plansand ensure that weaknesses in controls highlighted are appropriately addressed by management.

Continuous efforts are undertaken to ensure standardization, timeliness and comprehensiveness of key internalcontrol procedures. The internal control system has a clear management support, including the involvement of theBoard and is designed to address the risks to which the Company is exposed. The Board is satisfied with thedesign of the control system and is of the view that the system which is in place for the year under review is soundand sufficient to safeguard shareholders’ investments and the Group’s assets.


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Penyata Kawalan Dalaman

1. Pendahuluan

Peraturan Penyenaraian Bursa Malaysia menghendaki Lembaga Pengarah syarikat-syarikat tersenaraimenyediakan satu penyata di dalam laporan tahunan berkenaan kedudukan kawalan dalaman mereka. LembagaPengarah dengan sukacita menyediakan laporan yang menggariskan jenis dan skop kawalan dalaman Kumpulanbagi tahun kewangan yang berakhir pada 31 Disember 2008.

2. Tanggungjawab Lembaga Pengarah

Lembaga Pengarah mengakui kepentingan sistem kawalan dalaman dan pengurusan risiko yang baik dalamtadbir urus korporat. Lembaga Pengarah mengesahkan tanggunggjawab sepenuhnya ke atas sistem kawalandalaman Kumpulan dan mengkaji kecukupan serta ketelusannya. Sistem yang dimaksudkan tidak hanyamerangkumi kawalan kewangan tetapi juga kawalan berkaitan operasi, pengurusan risiko dan pematuhan kepadaundang-undang, peraturan-peraturan serta garis-garis panduan.

Memandangkan wujudnya batasan yang sedia ada dalam mana-mana sistem kawalan dalaman, sistem ini telahdireka untuk mengesan dan mengurus risiko-risiko yang akan menghalang pencapaian objektif-objektif perniagaanKumpulan dan bukan untuk mengenepikannya. Oleh itu, sistem ini hanya menyediakan kepastian yang berpatutandan bukan mutlak terhadap salah nyata yang ketara atau kerugian.

Kumpulan mengesahkan bahawa terdapat proses-proses berterusan untuk tujuan mengenal pasti, menilai,memantau dan mengurus risiko-risiko utama yang dihadapi oleh Kumpulan. Pihak pengurusan bertanggungjawabmengenal pasti dan menilai risiko-risiko utama yang berkaitan dengan perniagaan dan untuk melaksanakansistem kawalan dalaman yang sesuai. Proses ini seterusnya dikaji oleh Lembaga Pengarah melalui satuJawatankuasa Lembaga khas yang bermesyuarat dari masa ke semasa untuk membincangkan perkara ini.

Syarikat-syarikat bersekutu yang ketara tidak terlibat sebagai sebahagian daripada Kumpulan bagi tujuan penyatakawalan dalaman ini. Walau bagaimanapun, Lembaga Pengarah berpendapat bahawa pihak pengurusan syarikat-syarikat bersekutu tersebut mempunyai fungsi pemantauan sedia ada bagi membantu mereka memastikan sistemkawalan dalaman berfungsi seperti yang dikehendaki.

3. Pengurusan Risiko

Lembaga Pengarah telah mewujudkan satu struktur organisasi yang mengtakrifkan dengan jelaskebertanggungjawaban dan delegasi kuasa. Urusan pemantauan dan kajian tentang kawalan dalaman adalah dibawah had kuasa Jawatankuasa Audit sejak penubuhannya pada tahun 1998. Dalam tahun 2002, pelaksanaanrangka kerja pengurusan risiko di dalam Kumpulan turut dimasukkan dalam bidang kuasa Jawatankuasa Audit.

Kumpulan mempunyai proses yang berterusan untuk mengenal pasti, menilai, memantau dan mengurus risikoutama dan proses ini sentiasa dikaji semula oleh Jawatankuasa Audit yang akan membentangkan hasil kajiankepada Lembaga Pengarah. Risiko-risiko dikenal pasti dan dikelaskan kepada sepuluh (10) komponen iaituluaran, bersabit peraturan, undang-undang, tadbir urus korporat, kewangan, pelanggan-pelanggan, pembekal-pembekal produk dan perkhidmatan, sumber manusia dan risiko-risiko operasi.

Sebuah Jawatankuasa Pengurusan Risiko telah ditubuhkan di peringkat Syarikat dan di beberapa anak syarikatdi dalam Kumpulan. Pihak Pengurusan akan mengkaji Kad Risiko Korporat dalam jangkamasa yang ditetapkan.Sebarang perubahan besar di dalam profil risiko syarikat akan dibentangkan kepada Jawatankuasa Audit padajangkamasa yang tertentu.


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4. Struktur Kawalan dan Persekitaran

Lembaga Pengarah memberikan sepenuh komitmen bagi memastikan kawalan persekitaran yang betul dansesuai dikekalkan dalam Kumpulan. Elemen-elemen utama dalam sistem-sistem kawalan dalaman Kumpulanadalah seperti berikut:

4.1 Struktur organisasi yang mentakrifkan dengan jelas peranan-peranan dan tanggungjawab-tanggungjawab

Jawatankuasa Lembaga mempunyai peranan dan terma rujukan yang secara jelas mendefinisikan fungsi,bidang kuasa dan tanggungjawab masing-masing. Pengurusan Syarikat-Syarikat di dalam Kumpulandipertanggungjawabkan kepada Ketua Pegawai Eksekutif, di mana peranan dan tanggungjawab-tanggungjawab mereka diperjelaskan di dalam deskripsi tugas dan had kuasa mereka ditetapkan olehLembaga Pengarah masing-masing. Semua keputusan penting yang diambil oleh pihak pengurusanmemerlukan kelulusan Lembaga Pengarah di dalam Kumpulan dan hanya akan diputuskan selepas kajianyang mendalam dijalankan. Lembaga Pengarah bagi setiap syarikat di dalam Kumpulan turut menerimalaporan lengkap yang meliputi semua bahagian di dalam syarikat masing-masing.

4.2 Jawatankuasa Audit sebagai entiti bebas

Jawatankuasa Audit terdiri daripada ahli-ahli Lembaga Pengarah Bukan Eksekutif yang mempunyaipengalaman, pengetahuan dan kepakaran yang luas. Jawatankuasa Audit bermesyuarat dan mengadakanperjumpaan dengan juruaudit-juruaudit dalaman dan luaran tanpa sebarang sekatan sepanjang tahunkewangan. Jawatankuasa ini menentukan arah dan penyeliaan terhadap fungsi audit dalaman bagimemastikan ia bebas dari pihak pengurusan.

4.3 Dokumentasi polisi dan prosedur dalaman

Kumpulan sentiasa mengemaskini Buku Panduan Operasi dengan mengambil kira sebarang perubahandalam proses-proses dan struktur perniagaan apabila perlu.

Pada tahun 2008, KPS telah mengkaji semua Polisi dan Manual Sumber Manusia untuk mempertingkat sertamenyeragamkan kemudahan dan polisi syarikat setanding dengan praktis terbaik pasaran. Polisi yang telahdikaji semula dijadualkan untuk dicadang dan dilaksanakan secara berperingkat pada tahun 2009.

KPS juga telah memformulasi dan melaksanakan polisi dan garis panduan ICT bagi memastikan semuaperanti ICT, keselamatan dan integriti data terpelihara dengan baik. Polisi dan garis panduan ICT telahdiluluskan oleh Lembaga Pengarah dan dikuatkuasakan pada bulan April 2008.

Pada bulan Disember 2008, KPS telah melancarkan inisiatif Sistem Pengurusan Kualiti ISO 9001:2008 untukUnit Pengurusan Bangunan sebagai langkah strategik untuk mempertingkatkan standard kualiti, memperbaikimutu perkhidmatan pelanggan, memperbaiki sistem dan proses secara berterusan selain memastikan segalaoperasi dilaksanakan secara efisien. Inisiatif Pensijilan ISO ini telah disasarkan untuk dicapai pada 1 April2009.

Lembaga Pengarah telah juga menubuhkan Jawatankuasa Tender bagi memastikan ketelusan dankewibawaan proses penganugerahan tender.


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4.4 Proses Bajet Terperinci

Proses penyediaan bajet terperinci memerlukan semua syarikat utama di dalam Kumpulan menyediakanbajet tahunan, di mana ia akan dibincangkan dengan pihak pengurusan dan dibentangkan untuk kelulusanoleh Jawatankuasa Audit dan Lembaga Pengarah masing-masing.

Satu sistem laporan yang efektif wujud bagi melaporkan prestasi sebenar berbanding bajet yang diluluskandan sebarang perbezaan yang ketara akan disusuli oleh pihak pengurusan setiap suku tahun dan tindakanakan diambil untuk memperketat atau memperbetulkan sebarang kekurangan, di mana perlu.

4.5 Polisi Sumber Manusia

Polisi-polisi Sumber Manusia diwujudkan untuk memberi sokongan kepada Visi dan Misi Kumpulan. Polisi-polisi ini menyediakan garis panduan bagi kakitangan seperti kod kelakuan dan disiplin, kesihatan,keselamatan, kesetaraan peluang, prestasi pekerja dan lain-lain perkara yang berkaitan.

Proses-proses utama di dalam Sistem Pengurusan Prestasi turut dipinda bagi menyokong dan memacubudaya berprestasi tinggi. Index Prestasi Utama (“KPI”) telah diselaraskan secara strategik selari denganobjektif perniagaan kumpulan dan membentuk komponen utama di dalam proses penilaian prestasiperniagaan dan fungsi setiap unit di dalam kumpulan. Latihan-latihan dalaman dan luaran disediakan secaraberterusan bagi semua pekerja untuk mempertingkatkan kecekapan dan kemahiran.

5. Pemantauan dan Kajian

Proses-proses yang digunakan untuk memantau dan mengkaji keberkesanan sistem kawalan dalaman adalah:

• Pada setiap bulan, anak-anak syarikat dalam Kumpulan menghantar Laporan Pengurusan kepada PengerusiEksekutif dan Pengarah Eksekutif. Laporan tersebut mengandungi keputusan kewangan sebenar berbandingbajet, di mana perbezaan ketara akan dijelaskan dan langkah-langkah sewajarnya akan diambil.

• Lembaga Pengarah menerima dan mengkaji laporan prestasi suku tahunan daripada pengurusan pelbagaisektor perniagaan yang merangkumi prestasi kewangan dan laporan kemajuan.

• Fungsi Audit Dalaman Kumpulan yang bertanggungjawab melapor kepada Pengerusi Eksekutif danJawatankuasa Audit sentiasa mengkaji prosedur sistem kawalan dalaman dan menerangkan risiko-risikoutama yang mempunyai kesan ke atas Kumpulan. Bahagian Audit Dalaman akan memantau tindakan-tindakan yang diambil ke atas cadangan-cadangan yang diberikan kepada pihak pengurusan. JawatankuasaAudit mengkaji dan meluluskan pelan pengurusan audit dalaman tahunan sebelum ianya dilaksanakan.

• Jawatankuasa Audit bermesyuarat sekurang-kurangnya pada setiap suku tahun bagi menganalisa hasil kajianaudit dalaman, membincangkan perancangan pengurusan risiko dan memastikan kelemahan yang dikenalpasti pada sistem kawalan dalaman ditangani oleh pihak pengurusan.

Usaha-usaha yang berterusan diambil untuk memastikan prosedur kawalan dalaman utama yang standardmenepati masa dan komprehensif. Sistem kawalan dalaman mendapat sokongan yang sewajarnya dari pihakpengurusan dan juga Lembaga Pengarah bagi membantu Syarikat yang sentiasa terdedah kepada risiko-risikoyang sedia ada. Lembaga Pengarah berpuas hati dengan mutu kawalan dalaman dan berpendapat bahawasistem yang telah beroperasi bagi tahun semasa adalah kukuh dan mencukupi untuk menjaga kepentinganpelaburan-pelaburan pemegang saham dan juga aset-aset Kumpulan.


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Audit Committee Report

INTRODUCTION

The Audit Committee (Committee) of the Company was established on 2 June 1998 to evaluate the Company’sfinancial management, internal control systems and planning to propose applicable decisions.

OBJECTIVES

The principal objective of the Committee is to assist the Board in discharging its statutory duties and responsibilitiesrelating to accounting and reporting practices of the holding company and each of its subsidiaries.

The Committee shall assist the Board in discharging its duties on the following:

a. Ensure that the implementation of a Risk Management Framework is in place to manage Materials Risks; andb. Review the adequacy and the integrity of the Company’s Internal Control Systems, Management Information

Systems, including systems for compliance with applicable laws, regulations, rules, directives and guidelines.

COMPOSITION

The members of the Committee during the financial year comprise of three (3) Independent Non-Executive Directorsas follows:

YBhg Dato’ Haji Ab Halim bin Mohyiddin (Chairman - Independent Non-Executive Director)

YBhg Dato’ Azlan bin Hashim (Independent Non-Executive Director- appointed on 22/4/2008)

Tuan Haji Zain Azahari bin Zainal Abidin (Independent Non-Executive Director- appointed on 20/6/2008)

YB Senator Dato’ Haji Ikhwan Salim bin Dato’ Sujak (Independent Non-Executive Director - resigned on 22/4/2008)

YBhg Dato’ Haji Sumadi bin Haji Ismail (Independent Non-Executive Director - resigned on 22/4/2008)

YBhg Dato’ Yip Kam Chong (Non-Independent Non-Executive Director - deceased on 12/3/2008)

YBhg Dato’ Haji Ab Halim bin Mohyiddin is a member of the Malaysian Institute of Accountants (MIA).

TERMS OF REFERENCE

a. Objectives

The primary function of the Audit Committee is to assist the Board in fulfilling the following oversight objectives onthe Group activities:

• Assess the Group’s processes relating to its risks and control environment;• Oversee financial reporting; and• Evaluate the internal and external audit processes.

b. Composition

The Board shall elect and appoint Committee members from amongst their numbers comprising no fewer thanthree (3) Directors, the majority of whom shall be Independent Non-Executive Directors of the Company with atleast one (1) member must be a member of MIA or has at least three (3) years working experience and passedthe examination specified in Part I of the 1st Schedule of the Accountants Act, 1967; or is a member of one (1) ofthe associations of accountants specified in Part II of the 1st Schedule of the Accountants Act, 1967.


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The Board shall, within three (3) months after a member of the Committee resigns, dies or for any reason ceasesto be a member with the result that the member is reduced to below three (3), fill the vacancy.

The Chairman of the Committee shall be an Independent Non-Executive Director. No alternate Directors of theBoard shall be appointed as a member of the Committee.

The Board shall review the terms of office of each of its members at least once (1) every three (3) years.

c. 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 the members present must be Independent Non-Executive Directors. In the absence of the Chairman, the members present shall elect a Chairman for meeting fromamongst the members present.

The Company Secretary shall be appointed as Secretary of the Committee. The Secretary, in conjunction, withthe Chairman, shall draw up an agenda, which shall be circulated together with relevant support papers, withinreasonable time prior to each meeting to the members of the Committee.

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

The Committee shall meet at least once a year with the external auditors to discuss any matter with the Committeewithout the presence of any Executive member of the Board and Management.

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

d. Authority

The Committee is authorised to investigate any matter within its terms of reference.

The Committee is authorised to seek any information it requires from employees, who are required to cooperatewith any request made by the Committee.

The Committee shall have full and unlimited access to any information pertaining to the Group.

The Committee shall have communication channel with the internal and external auditors and with seniormanagement of the Group and shall be able to convene meetings with the external auditors whenever deemednecessary.

The Committee shall have the resources that are required to perform its duties. The Committee can obtain, at theexpense of the Company, outside legal or other independent professional advice it considers necessary.

Where the Committee is of the view that a matter reported by it to the Board has not been satisfactorily resolvedresulting in a breach of any regulatory requirements, the Committee shall promptly report such matter to therelevant authorities.

e. Duties and Responsibilities

In fulfilling its primary objectives, the Committee shall undertake the following duties and responsibilities:

• Review with the external auditor, the audit scope and plan, including any changes to the planned scope of theaudit plan.

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

• Review the external and internal audit reports to ensure that appropriate and prompt remedial action is takenby Management on major deficiencies in controls or procedures that are identified.

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

• Review the assistance given by the Group’s employees to the auditors, and any difficulties encountered in thecourse of the audit work, including any restrictions on the scope of activities or access to required information.

• Review the appointment and performance of external auditors, the audit fees and any question of resignationor dismissal before making recommendations to the Board.

• Review the adequacy and integrity of internal control system, including corporate risk management,management information system, and the internal auditors’ evaluation of the said systems.

• Direct and where appropriate monitor any special projects or investigation considered necessary, and reviewinvestigation report on any major defalcation, fraud and theft.

• Review the quarterly results and the year-end financial statements, prior to the approval by the Board focusingparticularly on:

- changes in or implementation of major accounting policy;- significant or unusual events; and- compliance with accounting standards and other legal requirements.

• Review any related party transaction and conflict of interest situation that may arise within the Company orthe Group, including any transaction, procedure or course of conduct that raises questions on Managementintegrity.

• Verify the allocation of the ESOS as being in compliance with the criteria set by the ESOS Committee at theend of each financial year.

• Any other activities, as authorised by the Board.

MEETING

The Audit Committee convened six (6) meetings during the financial year. The meetings were appropriately structuredthrough the use of agenda, which was distributed to members with sufficient notification.

Name of Directors Attendance

YBhg Dato’ Haji Ab Halim bin Mohyiddin 6/6YBhg Dato’ Azlan bin Hashim 4/4Tuan Haji Zain Azahari bin Zainal Abidin 2/2YB Senator Dato’ Haji Ikhwan Salim bin Dato’ Sujak 2/2YBhg Dato’ Yip Kam Chong 2/2YBhg Dato’ Haji Sumadi bin Haji Ismail 2/2


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The General Manager of Finance Division and the General Manager of Management Audit Division were present byinvitation at the meetings. Representatives of the external auditors also attended the meetings upon invitation.

SUMMARY OF ACTIVITIES

The main activities undertaken by the Committee during the year were as follows:

• Reviewed the external auditors’ scope of work and audit plans for the year 2008. Prior to the audit, representativesfrom the external auditors, presented their audit strategy and plan.

• Reviewed with the external auditors, the results of the audit, the audit report and the Internal Control Memorandum,including Management’s response thereto.

• Considered and recommended to the Board for approval the audit fees payable to the external auditors.

• Reviewed the Management Audit Division’s programmes and plan for the financial year 2008 under review.

• Reviewed the Management Audit reports, which highlighted the audit issues, recommendations and Managementresponse thereto. Discussed with Management, actions taken to improve the system of internal control based onimprovement opportunities identified in the internal audit reports.

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

• Reviewed Management Audit Division’s audit rating methodology in assessing and rating the risk levels of thevarious auditable areas and ensured that the audit emphasis was given on high and critical risk areas.

• Reviewed the audited financial statements of the Company prior to submission to the Board for their considerationand approval. The review was to ensure that the audited financial statements were drawn up in accordance withthe provisions of the Companies Act 1965 and the applicable approved accounting standards approved by theMalaysian Accounting Standard Board (MASB).

• Reviewed the Company’s compliance, in particular, the quarterly and the year-end financial statements with MASBand other relevant legal and regulatory requirements.

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

• Reviewed the related party transactions entered into by the Group.

• Verified the allocation of the ESOS as being in compliance with the criteria set by the ESOS Committee at the endof each financial year.

MANAGEMENT AUDIT FUNCTION AND ACTIVITIES

The Management Audit Division is independent of the activities or operations of other operating units. The principalrole of the Division is to undertake independent regular and systematic reviews of the systems of internal controls soas to provide reasonable assurance that such systems continue to operate satisfactorily and effectively. Themanagement audit practices a risk-based approach in its audit plan and examination. It is the responsibility of theManagement Audit Division to provide the Audit Committee with independent and objective reports on the state ofinternal controls of the various operating units within the Group and the extent of compliance of the units with theGroup’s established policies and procedures as well as relevant statutory requirements.


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PENDAHULUAN

Jawatankuasa Audit (Jawatankuasa) Syarikat telah ditubuhkan pada 2 Jun 1998 untuk menilai pengurusan kewanganSyarikat, sistem kawalan dalaman dan perancangan bagi mengemukakan cadangan-cadangan yang bersesuaian.

OBJEKTIF-OBJEKTIF

Objektif utama Jawatankuasa Audit adalah untuk membantu Lembaga dalam melaksanakan tugas dan tanggungjawabyang berkaitan dengan perakaunan dan amalan laporan oleh syarikat induk dan anak-anak syarikatnya.

Jawatankuasa Audit akan membantu Lembaga dalam menunaikan tugas-tugas seperti:

a. Memastikan pelaksanaan yang baik dalam Rangka Kerja Pengurusan Risiko untuk mengurus risiko-risiko utama; dan

b. Menyemak kecukupan dan integriti Sistem Kawalan Dalaman Syarikat, Sistem Pengurusan Maklumat termasuksistem-sistem pematuhan kepada mana-mana undang-undang, peraturan, arahan dan garis panduan.

KOMPOSISI

Sepanjang tahun kewangan, Jawatankuasa terdiri daripada tiga (3) Pengarah Bukan Eksekutif Bebas seperti berikut:

YBhg Dato’ Haji Ab Halim bin Mohyiddin (Pengerusi - Pengarah Bukan Eksekutif Bebas)

YBhg Dato’ Azlan bin Hashim (Pengarah Bukan Eksekutif Bebas – dilantik pada 22/4/2008)

Tuan Haji Zain Azahari bin Zainal Abidin (Pengarah Bukan Eksekutif Bebas – dilantik pada 20/6/2008)

YB Senator Dato’ Haji Ikhwan Salim bin Dato’ Sujak (Pengarah Bukan Eksekutif Bebas - meletak jawatan pada 22/4/2008)

YBhg Dato’ Haji Sumadi bin Haji Ismail (Pengarah Bukan Eksekutif Bebas - meletak jawatan pada 22/4/2008)

YBhg Dato’ Yip Kam Chong (Pengarah Bukan Eksekutif Bukan Bebas – meninggal dunia pada 12/3/2008)

YBhg Dato’ Haji Ab Halim bin Mohyiddin adalah ahli Institut Akauntan Malaysia (“MIA”).

TERMA-TERMA RUJUKAN

a. Matlamat

Tugas utama Jawatankuasa Audit adalah untuk membantu Lembaga dalam memenuhi objektif-objektifpengawasan dalam aktiviti-aktiviti Kumpulan seperti berikut:

• Menilai proses-proses Kumpulan yang berkaitan dengan risiko dan kawalan persekitaran;• Mengawasi laporan kewangan; dan• Menilai proses-proses audit dalaman dan luaran.

b. Komposisi

Lembaga harus memilih dan melantik ahli Jawatankuasa dari kalangan mereka yang terdiri tidak kurang daripadatiga (3) orang Pengarah, di mana majoriti daripada mereka harus terdiri daripada Pengarah Bukan EksekutifBebas di mana sekurang-kurangnya seorang (1) ahli mesti menjadi ahli Institut Akauntan Malaysia ataumempunyai sekurang-kurangnya tiga (3) tahun pengalaman bekerja dan lulus peperiksaan seperti yang ditetapkandalam Bahagian I Jadual 1 Akta Akauntan, 1967; atau merupakan ahli salah sebuah persatuan akauntan sepertiyang ditetapkan dalam Bahagian II Jadual 1 Akta Akauntan, 1967.

Laporan Jawatankuasa Audit


P A G E 73


Lembaga harus memenuhi kekosongan dalam tempoh tiga (3) bulan selepas ahli Jawatankuasa meletak jawatan,meninggal dunia atau atas apa-apa sebab tidak menjadi ahli yang menyebabkan jumlah ahli kurang daripadatiga (3) orang.

Pengerusi Jawatankuasa harus terdiri daripada seorang Pengarah Bukan Eksekutif Bebas. Tiada Pengarahgantian kepada Lembaga akan dilantik sebagai ahli Jawatankuasa Audit.

Lembaga harus mengkaji tempoh memegang jawatan setiap ahli sekurang-kurangnya sekali (1) setiap tiga (3)tahun.

c. Korum dan Prosidur Jawatankuasa

Mesyuarat-mesyuarat harus diadakan sekurang-kurangnya empat (4) kali setahun, atau lebih kerap jika perlu.

Bagi mewujudkan korum mesyuarat, majoriti ahli-ahli yang hadir mestilah Pengarah Bukan Eksekutif Bebas.Semasa ketiadaan Pengerusi, ahli-ahli yang hadir harus hendaklah melantik seorang Pengerusi bagi mesyuarattersebut di kalangan ahli-ahli yang hadir.

Setiausaha Syarikat akan dilantik sebagai Setiausaha Jawatankuasa. Setiausaha, bersama Pengerusi, akanmenyediakan agenda yang akan diedarkan bersama kertas sokongan berkaitan, dalam tempoh yang sewajarnyakepada ahli Jawatankuasa sebelum setiap mesyuarat.

Jawatankuasa ini boleh, apabila dianggap perlu, menjemput ahli-ahli Lembaga yang lain dan meminta ahli-ahliPengurusan Kanan untuk menghadiri mesyuarat.

Jawatankuasa ini akan bermesyuarat sekurang-kurangnya sekali setahun dengan juruaudit luaran untukmembincangkan apa-apa perkara dengan Jawatankuasa tanpa kehadiran Lembaga Pengarah Eksekutif danPengurusan.

Jawatankuasa hendaklah mengatur prosiding mesyuarat menurut konvensyen biasa mengenai perkara tersebut.

d. Kuasa

Jawatankuasa ini diberi kuasa untuk menyiasat sebarang perkara dalam bidang tugasnya.

Jawatankuasa ini diberi kuasa untuk mencari sebarang maklumat yang diperlukan dari kakitangan, dimanamereka harus memberi kerjasama dengan permintaan Jawatankuasa.

Jawatankuasa ini akan mempunyai akses penuh dan tanpa batasan kepada sebarang maklumat berkaitanKumpulan.

Jawatankuasa ini akan mempunyai saluran komunikasi dengan juruaudit dalaman serta juruaudit luaran dandengan pengurusan kanan Kumpulan dan boleh mengadakan mesyuarat dengan juruaudit luaran sekiranya perlu.

Jawatankuasa ini akan mempunyai akses kepada sebarang sumber yang diperlukan untuk menjalankan tugasnya.Jawatankuasa ini boleh mendapatkan sebarang nasihat perundangan atau nasihat profesional lain yang dianggapperlu, atas perbelanjaan Syarikat.

Sekiranya Jawatankuasa mendapati terdapat perkara yang dilaporkan oleh Jawatankuasa kepada Lembaga yangmasih belum diselesaikan dengan memuaskan sehingga menyebabkan ia melanggar keperluan perundangan,Jawatankuasa harus melaporkan dengan segera perkara tersebut kepada pihak berkuasa yang berkaitan.


P A G E 74


e. Bidang Tugas dan Tanggungjawab

Dalam memenuhi matlamat utamanya, Jawatankuasa ini akan menjalankan tugas-tugas dan tanggungjawabberikut:

• Mengkaji dengan juruaudit luaran, skop dan rancangan audit, termasuk sebarang perubahan kepada skoprancangan audit yang dirancang.

• Mengkaji kecukupan skop dan rancangan audit dalaman, fungsi-fungsi dan sumber-sumber audit dalamandan memastikan ianya mempunyai kuasa yang sepatutnya bagi menjalankan tugas.

• Mengkaji laporan audit dalaman dan luaran bagi memastikan tindakan segera dan sepatutnya diambil olehpihak Pengurusan bagi kekurangan utama pengawalan atau prosedur yang telah dikenal pasti.

• Mengkaji penemuan audit utama dan maklum balas pihak Pengurusan sepanjang tahun dengan Pengurusan,juruaudit luaran dan juruaudit dalaman, termasuk status cadangan audit yang terdahulu.

• Mengkaji bantuan yang diberi oleh kakitangan Kumpulan kepada juruaudit dan sebarang masalah yangdihadapi dalam menjalankan kerja audit, termasuk sebarang sekatan dalam skop aktiviti atau saluran kepadamaklumat yang diperlukan.

• Mengkaji pelantikan dan prestasi juruaudit luaran, yuran audit dan sebarang persoalan perletakan jawatanatau pemecatan juruaudit luaran sebelum memberi cadangan-cadangan kepada Lembaga.

• Mengkaji kecukupan dan ketelusan sistem kawalan dalaman, termasuk pengurusan risiko korporat, sistempengurusan maklumat dan penilaian juruaudit dalaman berkenaan sistem tersebut.

• Mengarah dan sekiranya perlu, memantau sebarang projek khas atau penyiasatan dan mengkaji laporansiasatan berkaitan dengan penyalahgunaan, penipuan dan kecurian.

• Menyemak keputusan suku tahunan dan penyata kewangan akhir tahun, sebelum kelulusan Lembaga denganpenumpuan kepada:

- perubahan dalam atau pelaksanaan perubahan polisi perakaunan utama;- peristiwa penting atau luar biasa; dan- pematuhan terhadap piawaian perakaunan dan undang-undang lain.

• Memeriksa sebarang urusniaga pihak berkaitan dan situasi konflik kepentingan yang mungkin timbul dalamSyarikat atau Kumpulan, termasuk sebarang urusniaga, prosedur atau persoalan yang timbul berkenaankewibawaan pihak Pengurusan.

• Memeriksa pembahagian “ESOS” agar mematuhi kriteria yang ditetapkan oleh Jawatankuasa “ESOS” padasetiap penghujung tahun kewangan.

• Sebarang aktiviti lain yang diberi kuasa oleh Lembaga.

MESYUARAT

Sepanjang tahun kewangan, Jawatankuasa Audit telah mengadakan enam (6) mesyuarat. Mesyuarat telahdilaksanakan dengan sewajarnya melalui penggunaan agenda di mana ianya diedarkan kepada ahli-ahli dalamtempoh yang bersesuaian.

Nama Pengarah-pengarah Kehadiran

YBhg Dato’ Haji Ab Halim bin Mohyiddin 6/6YBhg Dato’ Azlan bin Hashim 4/4Tuan Haji Zain Azahari bin Zainal Abidin 2/2YB Senator Dato’ Haji Ikhwan Salim bin Dato’ Sujak 2/2YBhg Dato’ Yip Kam Chong 2/2YBhg Dato’ Haji Sumadi bin Haji Ismail 2/2

Pengurus Besar Jabatan Kewangan dan Pengurus Besar Jabatan Audit Pengurusan telah hadir dengan jemputan kemesyuarat tersebut. Wakil juruaudit luaran juga telah hadir ke mesyuarat tersebut dengan jemputan.

RINGKASAN AKTIVITI

Aktiviti-aktiviti utama yang telah dijalankan oleh Jawatankuasa sepanjang tahun ini adalah seperti berikut:

• Mengkaji skop kerja juruaudit luaran dan rancangan audit tahun 2008. Sebelum audit, wakil juruaudit luaran telahmembentangkan rancangan dan strategi audit mereka.

• Mengkaji dengan juruaudit luaran, keputusan audit, laporan audit dan Memoranda Kawalan Dalaman, termasukmaklum balas dari pihak Pengurusan.

• Mempertimbangkan dan mencadangkan bayaran yuran audit kepada juruaudit luaran untuk kelulusan LembagaPengarah.

• Mengkaji program dan rancangan Jabatan Audit Pengurusan untuk tahun kewangan 2008.

• Mengkaji laporan Jabatan Audit Pengurusan, yang menekankan isu-isu audit, cadangan dan maklum balas pihakPengurusan. Berbincang dengan pihak Pengurusan mengenai tindakan yang diambil untuk memperbaiki sistemkawalan dalaman berdasarkan peluang pembaikan yang dikenal pasti di dalam laporan audit dalaman.

• Mengkaji laporan tindakan susulan oleh juruaudit dalaman mengenai status tindakan yang diambil oleh pihakPengurusan berkenaan cadangan yang dicadangkan di dalam penemuan audit.

• Mengkaji kaedah pengkadaran audit oleh Jabatan Audit Pengurusan dalam penilaian dan pengkadaran peringkat-peringkat risiko dari pelbagai sudut yang diaudit dan memastikan keutamaan audit diberikan kepada bahagianyang mempunyai risiko tinggi dan kritikal.

• Menyemak penyata kewangan Syarikat yang diaudit sebelum dibentangkan kepada Lembaga Pengarah untukpertimbangan dan kelulusan. Kajian adalah untuk memastikan penyata kewangan yang diaudit dibuat berdasarkanperuntukan-peruntukan yang terdapat di dalam Akta Syarikat, 1965 dan piawaian perakaunan berkaitan yangdiluluskan oleh Lembaga Piawaian Perakaunan Malaysia (“MASB”).

• Menyemak pematuhan Syarikat, khususnya, penyata kewangan suku tahunan dan akhir tahun agar mematuhipiawaian perakaunan “MASB” dan lain-lain keperluan undang-undang yang berkaitan.

• Menyemak keputusan kewangan suku tahunan yang tidak diaudit sebelum dicadangkan kepada LembagaPengarah untuk kelulusan.

• Memeriksa urusniaga-urusniaga pihak berkaitan yang dilaksanakan dalam Kumpulan.

• Memeriksa pembahagian “ESOS” agar mematuhi kriteria yang ditetapkan oleh Jawatankuasa “ESOS” pada setiappenghujung tahun kewangan.

FUNGSI DAN AKTIVITI JURUAUDIT DALAMAN

Jabatan Audit Pengurusan adalah bebas dari operasi unit-unit yang lain dalam menjalankan operasi-operasi danaktiviti-aktivitinya. Tugas utama Jabatan adalah untuk menjalankan kajian bebas dan sistematik terhadap sistemkawalan dalaman supaya dapat memberi jaminan sewajarnya agar sistem tersebut terus beroperasi dengan berkesandan memuaskan. Audit Pengurusan mengguna pakai kaedah berasaskan risiko di dalam rancangan audit danpemeriksaannya. Ia menjadi tanggungjawab Jabatan Audit Pengurusan untuk menyediakan kepada JawatankuasaAudit laporan kawalan dalaman yang objektif dan bebas mengenai keadaan kawalan dalaman bagi semua unit operasidi dalam Kumpulan dan tahap pematuhan unit operasi terhadap polisi dan prosedur Kumpulan yang sedia ada danjuga peraturan perundangan yang berkaitan.


P A G E 75



P A G E 76

Corporate Social ResponsibilityTanggungjawab Sosial Korporat

As a subsidiary of Kumpulan Darul Ehsan Berhad, a SelangorState Government-Linked Company (GLC), KumpulanPerangsang Selangor Berhad (KPS), carries out its corporatesocial responsibility in line with the aspiration of the StateGovernment to be a caring government and hence KPS to bea caring corporate entity. A balance between companyperformance and social responsibility towards communitydevelopment and improving the quality of life of thecommunity is always part of the agenda in making businessdecisions.

To date, RM300 million has been spent on communityprogrammes and other corporate social responsibilityprogrammes which include among others “Projek KerajaanPrihatin”, sponsorship of community developmentprogrammes, sports development programmes and sportsevents.

“Projek Kerajaan Prihatin” is a programme aimed at buildingdecent homes for the poor and improving their standard ofliving, giving them a sense of belonging to the community. Abudget of about RM1 million a year is allocated for thisprogramme and since its implementation about 350 familieshave benefited from the programme.

The less fortunate are never forgotten especially during festiveseasons. They become KPS’s guests of honour at itsfunctions held in conjunction with festive celebrations. KPSalso contributes to NGOs in providing shelters for the singleparents and poor people. To enhance the communityspiritually, KPS contributes to the building of mosques inSelangor.

A healthy body generates a healthy community physically andmentally. Being active in sports activities is one way to acquirethis. Sports help to develop a harmonious community,provides a balance between recreation and work and helpsprevent the community especially the younger generationfrom being involved in criminal and socially ill activities.Hence, sponsoring sports development programmes andsports events such as “MAKSAK”, “SUKMA” and golftournaments is KPS’s way of performing its corporate socialresponsibility in the sports arena.

In performing its corporate social responsibility, KPS hasdirectly or indirectly contributed to the development andprosperity of the community in particular the community inSelangor.

Sebagai anak syarikat Kumpulan Darul Ehsan Berhad,sebuah syarikat berkaitan Kerajaan Negeri Selangor,Kumpulan Perangsang Selangor Berhad (KPS)melaksanakan tanggungjawab sosial korporat selaras denganaspirasi Kerajaan Negeri untuk menjadi Kerajaan Prihatin danKPS menjadi sebuah entiti korporat yang prihatin.Keseimbangan di antara prestasi syarikat dan tanggungjawabsosial terhadap pembangunan masyarakat dan meningkatkankualiti hidup masyarakat sentiasa menjadi sebahagiandaripada agenda dalam membuat keputusan-keputusanperniagaan.

Sehingga kini, RM300 juta telah dibelanjakan bagi program-program kemasyarakatan dan lain-lain programtanggungjawab sosial korporat antaranya Projek KerajaanPrihatin, menaja program-program pembangunanmasyarakat, program-program pembangunan sukan danacara-acara sukan.

Projek Kerajaan Prihatin adalah sebuah program di manarumah-rumah yang selesa dibina bagi golongan miskin dan disamping itu meningkatkan taraf hidup mereka supaya merekamendapat tempat di kalangan masyarakat setempat.Peruntukan sebanyak RM1 juta setahun diperuntukkan untukprogram ini dan sejak diimplimentasikan sebanyak 350keluarga telah mendapat manafaat dari program ini.

Pada musim-musim perayaan, golongan tidak bernasib baiktidak dilupakan. Mereka menjadi tetamu khas di majlis-majlisyang dianjurkan oleh KPS sempena musim-musim perayaan.Di samping itu, KPS juga menyumbang kepada badan-badanbukan kerajaan untuk pembinaan rumah-rumah atau tempat-tempat perlindungan bagi ibu-ibu tunggal dan fakir miskin.Bagi meningkatkan kerohanian masyarakat, KPS jugamenyumbang kepada pembinaan masjid-masjid di NegeriSelangor.

Badan yang sihat melahirkan masyarakat yang sihat dari segifizikal dan mental. Bersukan adalah satu cara untukmendapatkan badan yang sihat. Sukan membantumelahirkan masyarakat yang harmoni, memberikeseimbangan di antara rekreasi dan kerja dan membantumenghalang masyarakat terutama generasi muda daripadaterjebak di dalam aktiviti-aktiviti jenayah dan penyakit-penyakitsosial. Dengan menyumbang kepada program-programpembangunan sukan dan acara-acara sukan sepertiMAKSAK, SUKMA dan kejohanan-kejohanan golf, KPSmelaksanakan tanggungjawab sosial korporat di arena sukan.

Dalam melaksanakan tanggungjawab sosial korporat, KPSsecara langsung atau tidak langsung menyumbang kepadapembangunan dan keharmonian masyarakat khususnyamasyarakat di Negeri Selangor.

Before After


P A G E 77corporate socialresponsibility


P A G E 78

Corporate CalendarKalendar Korporat

In conjunction with the World WaterDay celebrated on 22 March eachyear, 300 students from schoolswithin Putrajaya and from theAgriculture University of Malaysiavisited the Sungai Semenyih WaterTreatment Plant at Precint 19,Putrajaya which is operated byKonsortium ABASS Sdn Bhd. Thestudents were given a tour of theplant, security briefings and a videopresentation of the whole SungaiSemenyih Water Supply Schemecomponents.

Sempena Hari Air Sedunia yangdisambut pada 22 Mac setiap tahun,seramai 300 orang pelajar darisekolah-sekolah di Putrajaya danUniversiti Putra Malaysia telahmelawat Loji Rawatan Air SungaiSemenyih di Precint 19, Putrajayayang dikendalikan oleh KonsortiumABASS Sdn Bhd. Pelajar-pelajartelah dibawa melawat ke kawasansekitar loji, diberi taklimatkeselamatan dan juga sebuahtayangan video mengenaikomponen-komponen Skim BekalanAir Sungai Semenyih.

MARCH / MAC 2008

ABASS Open DayHari Terbuka ABASS

Quality Hotel Shah Alam telahmenganjurkan satu jamuan makantengahari untuk meraikan MingguSetiausaha pada 15 April 2008 diDewan Bankuet, Majlis BandarayaShah Alam (MBSA). Jamuan makantengahari tersebut telahmenampilkan Raja Pop Malaysia,Jamal Abdillah dan penyanyiMalaysian Idol 2004, Karen Kong.Tetamu-tetamu yang bertuah telahmemenangi hadiah-hadiah cabutanbertuah seperti satu tiketpenerbangan pergi balik ke Jakartasumbangan Garuda Airlines, baucer-baucer produk dan barangankosmetik.

Quality Hotel City Centre juga telahmengadakan jamuan makantengahari sempena MingguSetiausaha pada 22 dan 23 April2008 dengan menampilkan penyanyipopular dari Indonesia, Kris Dayantidan artis-artis terkenal Malaysia,Jamal Abdillah dan Noryn Aziz.Jamuan makan tengahari tersebuttelah diadakan di Pusat Pamerandan Konvensyen MATRADE(“MECC”) dan di SOGO City Arena,Kompleks Membeli-belah SOGO. Diantara penaja-penaja termasukEmirates Airlines, Little Trees, AuraSeri, Nivea, Nestle, Brands dan AcheSpa.

Quality Hotel Shah Alam organised agrand luncheon to celebrateSecretaries Week on 15 April 2008 atMajlis Bandaraya Shah Alam(“MBSA”) Banquet Hall. Theluncheon featured Malaysia’s PopKing, Jamal Abdillah and MalaysianIdol 2004 singer, Karen Kong. Luckyguests won lucky draw prizes suchas a return air ticket to Jakartacourtesy of Garuda Airlines, productvouchers and cosmetics.

Quality Hotel City Centre alsoorganised Secretaries Weekluncheons on 22 and 23 April 2008featuring Indonesia’s popular singer,Kris Dayanti and Malaysia’s mostrenowned artistes, Jamal Abdillahand Noryn Aziz. The luncheons wereheld at MATRADE Exhibition andConvention Centre (MECC) andSOGO City Arena, SOGO ShoppingComplex respectively. Sponsorsincluded Emirates Airlines, LittleTrees, Aura Seri, Nivea, Nestle,Brands and Ache Spa.

APRIL / APRIL 2008

Secretaries Week LuncheonJamuan Makan Tengahari Minggu Setiausaha


P A G E 79

On 19 June 2008, KumpulanPerangsang Selangor Berhad heldits Thirty First (31) Annual GeneralMeeting at Quality Hotel Shah Alam,in line with the standard procedure ofpublic listed companies by BursaMalaysia Securities Berhad.

Pada 19 Jun 2008, KumpulanPerangsang Selangor Berhad telahmengadakan Mesyuarat AgungTahunan ke Tiga Puluh Satu (31) diQuality Hotel Shah Alam selarasdengan ketetapan Bursa MalaysiaSecurities Berhad kepada syarikatterbitan awam.

JUNE / JUN 2008

Annual General MeetingMesyuarat Agung Tahunan

Sungai Semenyih Water TreatmentPlant organised a Safety, Health andEnvironment Week (SHE WEEK)from 5 to 18 July 2008. Among theactivities during the SHE WEEKwere competitions such as volleyball,Safety Explore Race, ‘Kawad HosBasah’, Memorise the Safety Policy,drawing, Best Office, Safety andHealth Quiz, First Aid Drill and blooddonation drive. The objective ofconducting knowledge-based andphysical events was to ensure that allsafety procedures are beingimplemented accordingly.

Loji Rawatan Air Sungai Semenyihtelah menganjurkan MingguKeselamatan, Kesihatan dan AlamSekitar (“SHE WEEK”) bermula dari5 hingga 18 Julai 2008. Di antaraaktiviti sepanjang “SHE WEEK”termasuk pertandingan-pertandinganbola tampar, ‘Safety Explore Race’,Kawad Hos Basah, Menghafal PolisiKeselamatan, melukis, PejabatTerbaik, Kuiz Keselamatan danKesihatan, Latihan ‘First Aid’ dankempen derma darah. Objektifpengendalian aktiviti-aktiviti yangberdasarkan ilmu pengetahuan danfizikal ini adalah bertujuan untukmemastikan prosedur-prosedurkeselamatan dilaksanakansewajarnya.

JULY / JULAI 2008

Safety, Health and EnvironmentWeekMinggu Keselamatan, Kesihatandan Alam Sekitar

Kumpulan Perangsang SelangorBerhad and Kumpulan Darul EhsanBerhad participated in the 51Merdeka Celebration at DataranKemerdekaan Shah Alam, bysending a contingent of 45employees to portray the Group’sspirit of patriotism.

Kumpulan Perangsang SelangorBerhad dan Kumpulan Darul EhsanBerhad telah menyertai sambutanKemerdekaan Malaysia yang ke-51di Dataran Kemerdekaan Shah Alamdengan menghantar sebuahkontinjen seramai 45 orangkakitangan sebagai lambangsemangat partriotik Kumpulan.

AUGUST / OGOS 2008

51 Merdeka CelebrationSambutan Kemerdekaan Ke-51



P A G E 80

The Group held its “Hari RayaAidilfitri” Open House on 9 October2008 at Quality Hotel Shah Alam.Eleven (11) less fortunate familiesfrom Jeram, Kuala Selangor wereinvited to the Open House. Theywere treated to a sumptuous array ofMalaysian cuisines and each familyreceived “duit raya” and a hamper asa “Hari Raya” gift from the Group.

Kumpulan telah mengadakanRumah Terbuka Hari Raya Aidilfitripada 9 Oktober 2008 di Quality HotelShah Alam. Sebanyak sebelas (11)keluarga miskin dari Jeram, KualaSelangor telah dijemput ke majlis ini.Mereka telah dijamu denganpelbagai pilihan masakan Malaysiadan setiap keluarga telah menerimaduit raya dan “hamper” sebagaisumbangan Hari Raya dariKumpulan.

OCTOBER / OKTOBER 2008

“Hari Raya Aidilfitri” Open HouseRumah Terbuka Hari RayaAidilfitri


The Human Resources andAdministration Division organised a“Merdeka” Exhibition at K-Centrethroughout the month of August inconjunction with the annual“Merdeka” Day celebration held on31 August each year. The purposeof this exhibition is to nourish the“Merdeka” spirit among the Group’semployees as well as to promote anddraw their interest towards becominga member thus develop readinghabits in tandem with the company’saspiration.

Bahagian Sumber Manusia danPentadbiran telah mengadakanPameran Bulan Kemerdekaan di K-Centre sepanjang bulan Ogosbersempena dengan HariKemerdekaan yang disambut pada31 Ogos setiap tahun. Tujuanpameran ini adalah untuk memupuksemangat kemerdekaan di kalangankakitangan Kumpulan di sampingmempromosi dan menarik minatkakitangan Kumpulan untukmendaftar sebagai ahli selarasdengan aspirasi syarikat untukmembentuk minat membaca.

K-Centre’s “Merdeka” ExhibitionPameran Kemerdekaan K-Centre


P A G E 81


The Building Maintenance Unit ofKumpulan Perangsang SelangorBerhad is gearing towards achievingthe ISO 9001:2008 Certification anda briefing session was held on 3December 2008. The BuildingMaintenance Unit is aiming to attainthe ISO 9001:2008 Certification by 1April 2009.

Unit Pengurusan BangunanKumpulan Perangsang SelangorBerhad sedang menuju ke arahPensijilan ISO 9001:2008 dan satusesi taklimat mengenainya telahdiadakan pada 3 Disember 2008.Unit Pengurusan Bangunan telahmeletakkan sasaran untukmemperolehi Pensijilan ISO9001:2008 ini pada 1 April 2009.

DECEMBER / DISEMBER 2008

Building Maintenance ISOLaunchingPelancaran ISO Unit PengurusanBangunan

On 9 December 2008, KumpulanPerangsang Selangor Berhad heldan Extraordinary General Meeting atQuality Hotel Shah Alam to proposeand obtain the approval from theshareholders to acquire fifteenpercent (15%) stake in SyarikatBekalan Air Selangor Sdn Bhd(Syabas) from Kumpulan DarulEhsan Berhad. The addedacquisition will give a significantimpact to the Company in a move toconsolidate the treatment and supplyof water industry in Selangor.

Pada 9 Disember 2008, KumpulanPerangsang Selangor Berhad telahmengadakan satu Mesyuarat AgungLuar Biasa bertempat di QualityHotel Shah Alam untuk mencadangdan mendapatkan kelulusandaripada pemegang-pemegangsaham bagi memperoleh lima belasperatus (15%) pegangan di dalamSyarikat Bekalan Air Selangor SdnBhd (Syabas). Perolehan tambahanini akan memberikan impak yangbesar kepada Syarikat di dalamusaha untuk menyatukan industrirawatan dan bekalan air di negeriSelangor.

Extraordinary General MeetingMesyuarat Agung Luar Biasa


P A G E 82

Year 2008 saw a significant shift in the KumpulanPerangsang Selangor Berhad (KPS) Human ResourceDivision (HR) function which elevated the role of Group HRDivision as a strategic business partner to a higher level,making it more visible and accessible to its people andcustomers.

The Company unveiled its new Group HR Division MissionStatement:-

“To Enhance Shareholder Value Via Being an Employer ofChoice and Maximising Returns on Human CapitalInvestment”.

Human Resource ReviewLaporan Sumber Manusia

Tahun 2008 telah menyaksikan perubahan yang ketaradi dalam fungsi Bahagian Sumber Manusia KumpulanPerangsang Selangor Berhad (KPS) yang telahmempertingkatkan peranan Bahagian Sumber ManusiaKumpulan sebagai rakan niaga strategik ke tahap yanglebih tinggi selain menjadikan fungsi dan khidmatBahagian Sumber Manusia lebih jelas dan mudahdiperolehi oleh semua kakitangan dan pelanggan.

Syarikat telahpun melancarkan misi Bahagian SumberManusia Kumpulan:-

“Untuk Mempertingkatkan Nilai Para Pemegang Sahamdengan Menjadi Majikan Pilihan dan MemastikanPulangan yang Maksima ke atas Pelaburan ModalInsan”.


P A G E 83

KPS Group HR Division Mission is underpinned by six (6)strategic objectives and have become the cornerstone ofhow we manage our people:-

1) Create employer branding to sustain employeeengagement and attract talent.

2) Ensure continuous supply of leadership benchstrength that is able to match the requirements ofbusiness.

3) Create a high performance organisation to supportexecution of business strategies.

4) Continuously provide reward and remunerationprograms to attract and retain high performanceemployees.

5) Improve employee productivity and customer service.

6) Promote continuous employee’s learning &development and quality process improvement.

Misi Bahagian Sumber Manusia Kumpulandiperkukuhkan dengan enam (6) objektif strategik yangmerupakan asas di dalam pembangunan modal insan:-

1) Mewujudkan penjenamaan majikan untukmengekalkan kakitangan sedia ada selain menarikbakat-bakat baru untuk menyertai Syarikat.

2) Memastikan bakat-bakat kepimpinan yangmencukupi bagi memenuhi keperluan perniagaansecara berterusan.

3) Mewujudkan sebuah organisasi berprestasi tinggibagi menyokong pembentukan strategi perniagaan.

4) Memberikan pakej ganjaran dan imbuhan yangkompetetif secara berterusan bagi menarik danmengekalkan kakitangan yang cemerlang.

5) Mempertingkatkan produktiviti dan khidmat mesrapelanggan.

6) Mempromosikan pembelajaran dan pembangunankakitangan serta peningkatan kualiti perkhidmatansecara berterusan.



P A G E 84

Changing economic conditions and businessrequirements challenge HR Division to a constantbalancing act to ensure that both the business and peopleneeds are fairly addressed. To help manage thisenvironment, the Company restructured the Group HRDivision primarily to leverage on employee skills andcompetencies, improve the delivery of HR services andfacilitate the deployment of Group strategic initiatives. Weare also leveraging into IT solutions to enhance the HRprocesses, speed and quality of services.

During the year under review, the Company also rolledout other strategic initiatives.

Beginning with the end (Group HR Mission) in mind, theHR Strategy Map for 2008 was formulated andinstitutionalized across KPS Group of Companies. Themain outcome was to enhance the delivery of HRservices whilst adding greater value to the KPS Group.

Maintaining the importance of recompensing hard workand employee loyalty through a competitive Benefits andRewards Structure, the Company initiated the Group HRPolicy Review, enhancing and streamlining employeebenefits and HR policies to best market practices. Therevised policies are scheduled to be recommended andimplemented in phases in 2009.

The Company also enhanced the PerformanceManagement System by introducing new performanceevaluation processes, rating and reward system.

KPS Group Job Rotation Programme was alsoimplemented as a strategic move to develop the Group’shuman capital as well as give opportunities to employeesfor added exposure and career progression.

Perubahan keadaan ekonomi dan keperluan perniagaanmerupakan cabaran kepada Bahagian Sumber Manusiauntuk segera bertindak bagi mengimbangi keadaansemasa sambil memastikan keperluan perniagaan dankakitangan dapat ditangani secara adil. Bagi membantumenguruskan keadaan ini, penstrukturan semulaBahagian Sumber Manusia Kumpulan telah dilaksanakanbertujuan untuk mempertingkatkan lagi kemahiran dankompetensi kakitangan, memperbaiki mutu penyampaianperkhidmatan Sumber Manusia dan melicinkan lagipelaksanaan inisiatif strategik Kumpulan. BahagianSumber Manusia juga telah memperluaskan lagipenggunaan Teknologi Maklumat bagi mempertingkatkanproses, kepantasan dan kualiti perkhidmatan BahagianSumber Manusia.

Pada tahun 2008, Syarikat juga telah melaksanakanbeberapa lagi inisiatif strategik lain.

Bermula daripada pelancaran Misi Bahagian SumberManusia, Rangka Strategi Sumber Manusia 2008 telahdiformulasi dan diselaraskan ke semua Syarikat di bawahKPS. Langkah ini bertujuan untuk mempertingkatkan lagipenyampaian perkhidmatan Sumber Manusia dansekaligus, nilai tambah kepada KPS.

Menyedari kepentingan untuk memberikan penghargaankepada kakitangan yang cemerlang dan setia berkhidmatbersama Syarikat melalui struktur kemudahan danganjaran yang kompetetif, inisiatif kajian semula PolisiSumber Manusia Kumpulan telah dilaksanakan bagimempertingkat serta menyelaraskan struktur ganjarankakitangan dan Polisi Sumber Manusia setandingdengan praktis terbaik pasaran. Polisi baru yang telahdipinda dan dikaji semula dijadualkan untuk dilaksanakansecara berperingkat pada tahun 2009.

Syarikat juga telah memperkemaskan lagi SistemPengurusan Prestasi dengan memperkenalkan prosespenilaian prestasi, sistem mata (‘rating’) dan ganjaranyang baru.

Program Penggiliran Kerja Kumpulan KPS juga telahdiperkenalkan sebagai salah satu langkah strategik bagipembangunan modal insan Kumpulan selainmemberikan peluang kepada kakitangan untuk mendapatpendedahan tambahan dan kemajuan kerjaya.



P A G E 85

i) Performance Evaluation Committee

In line with the Group’s objective to enhance thePerformance Management System and to ensure allemployees are evaluated in a clear, objective andconsistent manner, the Company established thesetting-up of the Performance Evaluation Committee(“PEC”) at strategic levels across the organisation.

The “PEC” acts as a governance body to ensure thatthe performance evaluation of every employee isconducted in alignment to the individual’sperformance, also with influence for behavioural andcareer development.

Apart from discussing the overall individualperformance ratings, the role of the “PEC” is also tomaintain consistency in the performance appraisalprocess, challenge and validate the performanceratings as well as ensure that justification of individualperformance ratings are supported with clear,objective assessments.

ii) Performance Appraisal

In 2008, the Company also revised the performancemetrics and introduced separate performanceappraisal forms for Senior Management. KPIs andbehavioural assessment, however, remained the keycomponents in evaluating employee performance.

iii) Reward System

As part of talent retention strategy, KPS alsoreviewed the Reward System by widening theperformance differentials and granting larger salaryincreases to high performers.

i) Jawatankuasa Penilaian Prestasi

Selaras dengan objektif Kumpulan untukmemperkemaskan lagi Sistem Pengurusan Prestasidan memastikan semua kakitangan dinilai secaratelus, objektif dan konsisten, Syarikat telahmenubuhkan sebuah jawatankuasa yang dikenalisebagai Jawatankuasa Penilaian Prestasi (“PEC”).

PEC berperanan sebagai sebuah jawatankuasapemantau bagi memastikan proses penilaian prestasisetiap kakitangan dilaksanakan selari prestasi kerjakakitangan disamping mengenal pasti prospekpembangunan kerjaya mereka.

Selain membincangkan prestasi dan pencapaianindividu secara menyeluruh, “PEC” juga berperananuntuk mengekalkan konsistensi di dalam prosespenilaian prestasi, mencabar dan mengesahkanpemberian markah selain memastikan pemberianmarkah kepada kakitangan berasaskan prosespenilaian yang objektif dan telus.

ii) Penilaian Prestasi

Pada tahun 2008, Syarikat juga telah meminda skalapemarkahan prestasi dan memperkenalkan borangpenilaian prestasi yang berasingan untukPengurusan Kanan. Walau bagaimanapun, PetunjukPrestasi Utama (“KPI”) dan penilaian sikap dantingkah laku kekal sebagai komponen utama didalam proses penilaian prestasi kakitangan.

iii) Sistem Ganjaran

Sebagai sebahagian daripada strategi untukmengekalkan kakitangan yang berbakat danberpotensi untuk terus berkhidmat bersama syarikat,KPS juga telah mengkaji semula Sistem Ganjarandengan memberikan kenaikan gaji yang lebihkompetetif kepada kakitangan yang telahmenunjukkan prestasi cemerlang.

PERFORMANCE MANAGEMENT SYSTEMSISTEM PENGURUSAN PRESTASI



P A G E 86

KNOWLEDGE MANAGEMENT

Reinforcing the importance of knowledge managementat the workplace and how it can significantly drivebusiness performance, KPS organised variouspromotional activities to attract new members to itsKnowledge Centre (K-Centre).

The highlight of the calendar of events was PameranBulan Kemerdekaan which was organised incollaboration with Muzium Negeri Selangor. The eventwas a resounding success for it not only renewedemployee interest in K-Centre but also brought in 319new members from within KPS Group of companies.

The K-Centre Library has also grown considerably and todate, has procured more than 1,600 books with 394 totalregistered members.

EMPLOYEE RELATIONS

At KPS, we firmly believe that good management ofemployee relations and strong cohesiveness betweenemployees provide a solid foundation for business growthand excellence. HR Division plays a strategic role increating a work environment which fosters teamwork,leveraging on our people’s strengths and ensuring theirgoals are strategically aligned to business objectives.

KPS’ commitment to nurturing good employee relations ismanisfested in the Group HR philosophy:-

“To manage effectively and fairly and to ensure uniformityand consistency in dealing with the Company’s mostimportant resources ie. the men and women who makeup the workplace”.

Equitable benefits and rewards, effective communicationand information flow, maintaining a harmonious andpositive work environment and promoting work-lifebalance ensure our employees remain inspired andcommitted to their jobs.

As we prepare for challenging times ahead, we willremain steadfast in our commitment to offer a future toour employees where they have equal opportunity todevelop and grow with the organisation.

PENGURUSAN MAKLUMAT

Menyedari kepentingan pengurusan maklumat di tempatkerja yang dapat memacu prestasi perniagaan Syarikat,KPS telah menganjurkan pelbagai aktiviti promosi bagimenarik minat lebih ramai kakitangan untuk mendaftarsebagai ahli baru di Knowledge Centre (“K-Centre”).

Antara aktiviti-aktiviti yang telah berjaya dianjurkanadalah Pameran Bulan Kemerdekaan yang diadakandengan sokongan dan kerjasama Muzium NegeriSelangor. Pameran ini bukan sahaja berjaya menarikminat lebih ramai kakitangan untuk berkunjung ke “K-Centre” malah seramai 319 kakitangan anak-anakSyarikat di bawah KPS telah mendaftar sebagai ahli baru.

“K-Centre” juga telah berkembang dan sehingga kini,jumlah koleksi bacaan yang terdapat di K-Center telahmelebihi 1,600 buah buku dengan jumlah ahli berdaftarseramai 394 orang.

HUBUNGAN KAKITANGAN

Di KPS, kami percaya sepenuhnya bahawa pengurusanperhubungan dan perpaduan yang mantap di kalangankakitangan dapat menjamin pembentukan asas yangkukuh untuk pertumbuhan dan kecemerlanganperniagaan. Bahagian Sumber Manusia memainkanperanan yang strategik di dalam mewujudkan suasanakerja yang berteraskan konsep kerjasama danmemastikan sasaran kerja setiap kakitangan adalahselaras dengan objektif perniagaan.

Komitmen KPS untuk memelihara perhubungankakitangan yang baik termaktub di dalam falsafahSumber Manusia Kumpulan:-

“Menguruskan secara efektif dan adil serta memastikankesaksamaan dan konsistensi di dalam mengendalikansumber terpenting Syarikat iaitu semua kakitangan yangberkhidmat di dalamnya”.

Keadilan di dalam pemberian faedah dan ganjarankakitangan, komunikasi dan penyaluran maklumat yangefektif, mengekalkan keharmonian dan suasana kerjayang positif serta mempromosikan keseimbangan kerjadan kehidupan harian akan dapat memastikan semuakakitangan sentiasa berinspirasi dan komited dengankerja mereka.

Selaras dengan kesediaan KPS untuk menghadapicabaran yang mendatang, KPS akan sentiasa kekalteguh dan komited dengan menawarkan jaminan masadepan yang baik untuk kakitangan di mana setiapdaripada mereka mempunyai peluang yang saksamauntuk membangun dan terus maju bersama KPS.



P A G E 87

STAFF ACTIVITIES

Academic Achievement Award

The commitment of KPS as a caringemployer is further reflected throughthe Academic Achievement Awardwhere the Company accords cashrewards to employee whose childrenexcel in the UPSR, PMR, SPM andSTPM Examinations. The rewards aregiven as an incentive for the children tostrive harder and are presentedpersonally by the Executive Chairmanto the deserving children.

The award is one of the many ways theCompany recognises the importance ofthe well being of our employees andthat of their families.

Long Service Award

The Company recognises and valuesthe services of employees and takespride in rewarding employees for theirloyalty and unwavering dedication.

Long Service Awards are accorded toemployees who have served 10, 15,20, 25 and 30 years and is one of themany incentives which help fosterclose camaraderie betweenmanagement and staff.

“Majlis Tazkirah”

In line with the Company’s objective toinstill positive values and moral ethicsat the workplace, “Majlis Tazkirah” areheld every Friday, conducted by guestspeakers.

The weekly forums provide an effectiveplatform for staff of the KPS Group toget together and enhance their IslamicKnowledge.

AKTIVITI-AKTIVITI KAKITANGAN

Anugerah Kecemerlangan Akademik

Anugerah Kecemerlangan Akademikmencerminkan komitmen KPS sebagaimajikan yang prihatin. Anugerah berupawang tunai diberi kepada anak-anakkakitangan yang berjaya dengancemerlang dalam peperiksaan UPSR,PMR, SPM dan STPM. Insentif inidiharap dapat memberi dorongankepada anak-anak kakitangan untukterus berusaha dengan lebih gigih dantekun. Anugerah disampaikan olehPengerusi Eksekutif KPS kepada ibubapa anak-anak yang berjaya.

Anugerah ini merupakan penghargaansyarikat atas kejayaan kakitangan danjuga ahli keluarga mereka.

Anugerah Perkhidmatan Lama

Syarikat sentiasa mengenang danmenghargai jasa kakitangan yang telahlama berkhidmat dengan penuh dedikasidan kesetiaan yang tidak berbelah bagi.

Anugerah Khidmat Lama diberikankepada kakitangan yang telahberkhidmat selama 10, 15, 20, 25 dan30 tahun. Anugerah ini merupakansalah satu daripada pelbagai insentifyang dapat membantu mengeratkansilaturrahim di antara pengurusan dankakitangan.

Majlis Tazkirah

Selaras dengan objektif Kumpulan untukmenerapkan nilai-nilai positif dan akhlakmulia di tempat kerja, Majlis Tazkirahyang disampaikan oleh penceramahundangan diadakan pada setiap hariJumaat.

Forum mingguan ini merupakanpendekatan yang berkesan dalammemantapkan diri mengenai ilmu danpendekatan Islam.


Hari Lahir Kakitangan

Sambutan hari lahir kakitangan diraikan pada setiap tiga(3) bulan, dan Syarikat akan menghadiahkan kek harilahir kepada setiap kakitangan yang menyambut hari jadi.Meskipun sekadar kek, namun ia merupakan tandasimbolik bahawa setiap kakitangan adalah aset yangamat berharga bagi Syarikat.

Kelab Sukan Dan Rekreasi Perangsang Selangor(KELAB)

Kelab Sukan dan Rekreasi memainkan peranan pentingbagi memelihara gaya hidup sihat dan keseimbangansosial untuk para kakitangan. KELAB telah menganjurkanpelbagai aktiviti sukan dan sosial secara berterusan bagimenyemarakkan suasana yang dapat membinasemangat kerjasama berpasukan.

Kalendar sukan pada tahun 2008 termasuk pelbagaiaktiviti dalaman dan luaran seperti Pertandingan SukanDalaman KDEB/KPS 2008 yang melibatkan acara pingpong, bowling, dart, bola tampar, karom, badminton danfutsal. KELAB juga menganjurkan perlawananpersahabatan bola sepak dan ping pong dengan anak-anak syarikat dan pasukan-pasukan dari organisasi-organisasi yang lain.

Aktiviti-aktiviti lain yang telah dianjurkan oleh KELABsepanjang tahun 2008 termasuk perkhemahan di SungaiKlah Hotspring, memancing di Kelong Paradise WaterFront Resort dan Pulau Sembilan, mencandat sotong dan‘snorkeling’ di Pulau Kapas serta program rekreasikeluarga di Desa Water Park .

Semua kakitangan merupakan ahli KELAB. Aktiviti-aktivitiyang dijayakan adalah hasil kutipan bulanan daripadakakitangan serta sumbangan tahunan daripada syarikat.


P A G E 88


Staff Birthdays

Staff get together for birthday celebrations every three (3)months and on every employee’s birthday, the Companypresents them with a cake. Although it is a small token,the cake goes a long way to show our employees thatthey are special.

Kelab Sukan dan Rekreasi Perangsang Selangor(“KELAB”)

The Sports & Recreational Club plays a pivotal role inmaintaining a healthy lifestyle and social balance for ouremployees. Its host of sports and social activitiesconstantly provide an environment that builds teamworkand a healthy mix of physical activities and socialinteractions.

Last year’s sports calendar included an array of indoorand outdoor games such as KDEB/KPS 2008 InternalSports Tournament which gave our staff a greatopportunity to exhibit their sporting skills in ping pong,bowling, dart, volleyball, carom, badminton and futsal.The “KELAB” also hosted friendly football and ping pongmatch with subsidiaries and other companies.

The “KELAB” calendar of events also included campingactivities at Sungai Klah Hotspring, fishing at KelongParadise Water Front Resort and Pulau Sembilan,cuttlefish expedition and snorkeling at Pulau Kapas and afamily outing to Desa Water Park.

All employees are members of the “KELAB”. Activities arefunded by monthly subscriptions and annual contributionfrom the Company.

90 DIRECTORS’ REPORT94 STATEMENT BY DIRECTORS94 STATUTORY DECLARATION95 REPORT OF THE AUDITORS97 INCOME STATEMENTS98 BALANCE SHEETS100 CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY101 COMPANY STATEMENT OF

CHANGES IN EQUITY102 CASH FLOW STATEMENTS105 NOTES TO THE FINANCIAL

STATEMENTS

Financial Statements


The directors hereby present their report together with the audited financial statements of the Group and of the Company for thefinancial year ended 31 December 2008.

Principal activities

The principal activities of the Company are investment holding, contracting in the works related to infrastructure and utilities andprovision of management services. The principal activities of the subsidiaries are described in Note 18 to the financial statements.

There have been no significant changes in the nature of principal activities during the financial year.

ResultsGroup Company

RM’000 RM’000

Loss for the year (11,025) (25,759)

Attributable to:Equity holders of the Company 1,709 (25,759)Minority interests (12,734) -

(11,025) (25,759)

There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financialstatements.

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were notsubstantially affected by any item, transaction or event of a material and unusual nature other than the effects arising from:

(a) the loss arising from the full provision made on long term receivables which has resulted in an increase in the Group's loss forthe year by RM65,430,000 as disclosed in Note 23(i) to the financial statements; and

(b) the gain arising from waiver of debts which has resulted in a reduction in the Group's loss for the year by RM45,000,000 asdisclosed in Note 5 to the financial statements.

(c) the loss arising from impairment made on investment in a subsidiary which has resulted in an increase in the Company's lossfor the year by RM43,700,000 as disclosed in Note 18 to the financial statements.

Dividends

The amount of dividends paid by the Company since 31 December 2007 were as follows:

RM’000

In respect of the financial year ended 31 December 2007 as reported in the directors' report of that year:

Final dividend of 4 sen less 26% taxation per ordinary share, on 475,460,760 ordinary shares, declared on 19 June 2008 and paid on 15 August 2008 14,074

P A G E 90

Directors’ Report


At the forthcoming Annual General Meeting, a final dividend in respect of the financial year ended 31 December 2008, of 4 sen less25% taxation, will be proposed for shareholders' approval and be paid on 14 August 2009 to the shareholders registered on theCompany's Register of Members at the close of business on 31 July 2009. The financial statements for the current financial yeardo not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as anappropriation of retained earnings in the financial year ending 31 December 2009.

Directors

The names of the directors of the Company in office since the date of the last report and at the date of this report are:

YBhg Dato' Hj. Abd. Karim bin Munisar, DSSA, SSA, KMN, ASAYBhg Dato' Hj. Azlan bin Hashim, DSSA, DSNSYBhg Dato' Hj. Ab. Halim bin Mohyiddin, DPMSWong Yien Kim, SIS, PPTTuan Haji Zain Azahari bin Zainal Abidin (appointed on 20 June 2008)

Directors' benefits

Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Companywas a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Companyor any other body corporate, other than those arising from the share options granted under the Kumpulan Perangsang SelangorBerhad's Employee Share Option Scheme ("KPS ESOS") and Kumpulan Hartanah Selangor Berhad's Employee Share OptionScheme ("KHSB ESOS").

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefitsincluded in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full-timeemployee of the Company as shown in Note 9 to the financial statements) by reason of a contract made by the Company or arelated corporation with any director or with a firm of which he is a member, or with a company in which he has a substantial financialinterest.

Directors' interest

According to the register of directors' shareholdings, the interests of directors in office at the end of the financial year in shares andoptions over shares in the Company and its related corporations during the financial year were as follows:

Number of Ordinary Shares of RM1 Each1.1.2008 Acquired Sold 31.12.2008

The Company

YBhg Dato' Hj. Abd. Karim bin Munisar 1,000,000 - - 1,000,000 YBhg Dato' Hj. Ab. Halim bin Mohyiddin 20,999 542,000 (223,000) 339,999 YBhg Dato' Hj. Azlan bin Hashim - 520,000 (150,000) 370,000 Wong Yien Kim 1,000,000 - (1,000,000) -

Subsidiary Kumpulan Hartanah Selangor Berhad

YBhg Dato' Hj. Ab. Halim bin Mohyiddin 99 - - 99

P A G E 91

Directors’ Report


Number Of Options Over Ordinary Shares of RM1 Each1.1.2008 Granted Exercised 31.12.2008

The Company

YBhg Dato' Hj. Abd. Karim bin Munisar 3,250,000 - - 3,250,000 YBhg Dato' Hj. Azlan bin Hashim 512,000 300,000 (512,000) 300,000 YBhg Dato' Hj. Ab. Halim bin Mohyiddin 542,000 250,000 (542,000) 250,000 Wong Yien Kim 1,000,000 - - 1,000,000 Tuan Haji Zain Azahari bin Zainal Abidin - 200,000 - 200,000

Subsidiary -Kumpulan Hartanah Selangor Berhad

YBhg Dato' Hj. Abd. Karim bin Munisar 4,500,000 - - 4,500,000

Issue of shares

During the financial year, the Company increased its issued and paid-up ordinary share capital from RM470,812,160 toRM475,663,760 by way of the issuance of 4,851,600 ordinary shares of RM1 each for cash pursuant to the KPS ESOS at a weightedaverage exercise price of RM1.40 per ordinary shares.

The new ordinary share issued during the financial year ranked pari passu in all respects with the existing ordinary shares of theCompany.

Employee Share Option Scheme

The Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme ("KPS ESOS") is governed by the amended by-laws approved by the shareholders at an Extraordinary General Meeting held on 15 June 2004. The KPS ESOS was implementedon 30 July 2003 and is to be in force for a period of 5 years, subject however, to an extension at the discretion of the option committeefor a period up to 5 years commencing from the date of expiration of the original 5 year period. Subsequently, on 16 July 2008, theOption Committee has approved the extension of KPS ESOS Scheme tenure for another 3 years commencing from 29 July 2008until 29 July 2011.

The salient features and other terms of the KPS ESOS are disclosed in Note 35 (b) to the financial statements.

Details of options granted to directors are disclosed in the section on Directors' Interest in this report.

Other statutory information

(a) Before the income statements and balance sheets of the Group and of the Company were made out, the directors tookreasonable steps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision fordoubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had beenmade for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in theordinary course of business had been written down to an amount which they might be expected so to realise.

P A G E 92

Directors’ Report


(b) At the date of this report, the directors are not aware of any circumstances which would render:

(i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Groupand of the Company inadequate to any substantial extent; and

(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherenceto the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financialstatements of the Group and of the Company which would render any amount stated in the financial statements misleading.

(e) As at the date of this report, there does not exist:

(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year whichsecures the liabilities of any other person; or

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

(f) In the opinion of the directors:

(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelvemonths after the end of the financial year which will or may affect the ability of the Group or of the Company to meet theirobligations when they fall due; and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financialyear and the date of this report which is likely to affect substantially the results of the operations of the Group or of theCompany for the financial year in which this report is made.

Significant events

The significant events are disclosed in Note 49 to the financial statements.

Subsequent event

The subsequent event is disclosed in Note 50 to the financial statements.

Auditors

The auditors, Ernst & Young, have expressed their willingness to continue in office.

Signed on behalf of the Board in accordance with a resolution of the directors dated 29 April 2009.

DATO' HJ ABD. KARIM BIN MUNISAR WONG YIEN KIM

P A G E 93

Directors’ Report

We, Abd. Karim bin Munisar and Wong Yien Kim, being two of the directors of Kumpulan Perangsang Selangor Berhad, do herebystate that, in the opinion of the directors, the accompanying financial statements set out on pages 97 to 182 are drawn up inaccordance with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia so as to givea true and fair view of the financial position of the Group and of the Company as at 31 December 2008 and of the results and thecash flows of the Group and of the Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 29 April 2009.

DATO' HJ ABD. KARIM BIN MUNISAR WONG YIEN KIM

I, Wong Yien Kim, being the director primarily responsible for the financial management of Kumpulan Perangsang Selangor Berhad,do solemnly and sincerely declare that the accompanying financial statements set out on pages 97 to 182 are in my opinion correct,and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the StatutoryDeclarations Act, 1960.

Subscribed and solemnly declared bythe abovenamed Wong Yien Kimat Shah Alam in Selangor Darul Ehsanon 29 April 2009. WONG YIEN KIM

Before me,


P A G E 94

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

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

Report on the financial statements

We have audited the financial statements of Kumpulan Perangsang Selangor Berhad, which comprise the balance sheets as at 31December 2008 of the Group and of the Company, and the income statements, statements of changes in equity and cash flowstatements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and otherexplanatory notes, as set out on pages 97 to 182.

Directorsʼ responsibility for the financial statements

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordancewith Financial Reporting Standards in Malaysia and the Companies Act, 1965 in Malaysia. This responsibility includes: designing,implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are freefrom material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and makingaccounting estimates that are reasonable in the circumstances.

Auditorsʼ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordancewith approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan andperform 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 judgment, including the assessment of risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit alsoincludes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made bythe 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 have been properly drawn up in accordance with Financial Reporting Standards in Malaysiaand the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Companyas at 31 December 2008 and of their financial performance and cash flows of the Group and of the Company for the year then ended.


P A G E 95

Independent Auditors’ Reportto the members of Kumpulan Perangsang Selangor Berhad

(Incorporated in Malaysia)


P A G E 96

Independent Auditors’ Report

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 and itssubsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

(b) We have considered the financial statements and the auditors' reports of all subsidiaries of which we have not acted as auditors,which are indicated in Note 18 to the financial statements.

(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements ofthe Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financialstatements and we have received satisfactory information and explanations required by us for those purposes.

(d) The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not includeany comment required to be made under Section 174(3) of the Act.

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, 1965in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young Nik Rahmat Kamarulzaman bin Nik Ab. RahmanAF: 0039 No. 1759/02/10(J)Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia29 April 2009

to the members of Kumpulan Perangsang Selangor Berhad (cont’d.)(Incorporated in Malaysia)


P A G E 97

Income Statementsfor the year ended 31 December 2008

Group Company

Note 2008 2007 2008 2007

RMʼ000 RMʼ000 RMʼ000 RMʼ000

Revenue 3 305,827 425,602 47,878 15,770Cost of sales 4 (147,263) (247,899) - (330)

Gross profit 158,564 177,703 47,878 15,440Other income 5 105,376 93,581 9,360 37,686Administrative expenses (74,292) (94,830) (19,833) (22,156)Selling and marketing expenses (1,081) (1,040) - -Other expenses (138,703) (39,770) (49,445) (6,733)

Operating profit/(loss) 49,864 135,644 (12,040) 24,237Finance costs 6 (106,277) (109,943) (1,283) (511)Share of profit of associates 56,279 29,083 - -Share of profit of a joint venture 546 6,521 - -

Profit/(loss) before tax and zakat 7 412 61,305 (13,323) 23,726Income tax and zakat 10 (11,437) (25,245) (12,436) (6,489)

(Loss)/profit for the year (11,025) 36,060 (25,759) 17,237

Attributable to:Equity holders of the Company 1,709 31,998 (25,759) 17,237Minority interests (12,734) 4,062 - -

(11,025) 36,060 (25,759) 17,237

Earnings per share attributable toequity holders of the Company (sen)

Basic 11(a) 0.4 7.3Diluted 11(b) 0.4 7.0

Dividend per share (sen) 12 2.96 2.92 2.96 2.92

The accompanying notes form an integral part of the financial statements.


P A G E 98

Balance Sheets

Group Company

Note 2008 2007 2008 2007


ASSETS

Non-current assets

Property, plant and equipment 13 184,280 190,754 4,743 5,100 Concession assets 14 97,721 107,597 - - Prepaid land lease payments 15 52,829 53,503 13,723 13,904 Land held for property development 16(a) 298,942 300,207 - - Investment properties 17 7,604 7,947 62,775 65,531 Investments in subsidiaries 18 - - 566,428 610,128 Investments in associates 19 434,446 498,260 163,269 163,044 Other investments 20 269,680 12,666 267,731 10,639 Concession rights 21 349,290 359,420 - - Goodwill on consolidation 22 131,595 131,595 - - Long term receivables 23 34,097 105,752 - -

1,860,484 1,767,701 1,078,669 868,346

Current assets

Inventories 24 61,041 60,511 - - Property development costs 16(b) 458,707 462,046 - - Trade receivables 26 438,054 404,420 296 451 Other receivables 27 43,090 40,815 6,787 30,051 Amount due from immediate holding company 28(a) 193,167 79,175 96,909 1,176 Amount due from subsidiaries 28(b) - - 62,235 7,799 Amount due from related companies 28(c) 4 3 - 3 Amount due from associates 28(d) 240 158 239 156 Tax recoverable 3,834 12,656 - 1,732 Cash and bank balances 29 116,617 302,754 144 157,105

1,314,754 1,362,538 166,610 198,473

TOTAL ASSETS 3,175,238 3,130,239 1,245,279 1,066,819

as at 31 December 2008


P A G E 99

Balance Sheetsas at 31 December 2008 (cont’d.)


Group Company

Note 2008 2007 2008 2007


Restated

EQUITY AND LIABILITIESEquity attributable to equity holders of the Company

Share capital 42 475,664 470,812 475,664 470,812 Share premium 43 34,129 31,054 34,129 31,054 Other reserves 44 166,333 166,920 8,370 9,310 Retained earnings 45 237,982 250,347 474,006 513,839

Shareholders' equity 914,108 919,133 992,169 1,025,015 Minority interests 138,453 153,031 - -

Total Equity 1,052,561 1,072,164 992,169 1,025,015

Non-current liabilities

Borrowings 30 1,156,248 1,151,776 80,297 419 Long term payables 34 36,547 36,547 - - Retirement benefit obligations 35(a) - 500 - 500 Deferred membership income 36 3,910 6,488 - - Deferred tax 37 152,607 155,702 - -

1,349,312 1,351,013 80,297 919

Current liabilities

Trade payables 38 422,140 381,743 5,316 5,082 Other payables 39 93,929 95,397 2,264 2,887 Amount due to immediate holding company 40(a) 520 463 - - Amount due to subsidiaries 40(b) - - 117,334 32,756 Amount due to related companies 40(c) 147 194 44 44 Amount due to an associate 40(d) 1,276 971 - - Provision 41 13,526 14,855 - - Borrowings 30 221,874 198,336 43,730 116 Tax payable 19,953 15,103 4,125 -

773,365 707,062 172,813 40,885

Total liabilities 2,122,677 2,058,075 253,110 41,804

TOTAL EQUITY AND LIABILITIES 3,175,238 3,130,239 1,245,279 1,066,819


P A G E 100

Consolidated Statement of Changes in Equity

Attributable to Equity Holders of the Company

Non-Distributable DistributableShare

Share Share Capital Revaluation General Options Retained Minority TotalCapital Premium Reserve Reserve Reserve Reserve Earnings Total Interest EquityRM'000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group (Note 42) (Note 43) (Note 44) (Note 44) (Note 44) (Note 44) (Note 45)

At 1 January 2007 431,404 - 41,336 127,367 8,000 - 230,946 839,053 109,206 948,259Issue of ordinary shares

pursuant to exerciseof KPS ESOS 39,408 23,853 - - - - - 63,261 - 63,261

Share options granted under KPS ESOS - - - - - 8 ,511 - 8,511 - 8,511

Share options exercisedunder KPS ESOS - 7,201 - - - (7,201) - - - -

Disposal of subsidiaries - - - - - - - - 28,775 28,775Arising from acquisition

of additional interest insubsidiaries - - (11,093) - - - - (11,093) 11,565 472

Dividends of subsidiaries - - - - - - - - (577) (577)Profit for the year - - - - - - 31,998 31,998 4,062 36,060

470,812 31,054 30,243 127,367 8,000 1,310 262,944 931,730 153,031 1,084,761Dividends (Note 12) - - - - - - (12,597) (12,597) - (12,597)

At 31 December 2007 470,812 31,054 30,243 127,367 8,000 1,310 250,347 919,133 153,031 1,072,164

At 1 January 2008 470,812 31,054 30,243 127,367 8,000 1,310 250,347 919,133 153,031 1,072,164Issue of ordinary shares

pursuant to exercise 4,852 1,939 - - - - - 6,791 - 6,791of KPS ESOS

Share options granted under KPS ESOS - - - - - 196 - 196 - 196

Share options grantedunder KHSB ESOS - - - - - 353 - 353 272 625

Share options exercisedunder KPS ESOS - 1,136 - - - (1,136) - - - -

Dividends of subsidiaries - - - - - - - - (2,116) (2,116)Profit/(loss) for the year - - - - - - 1,709 1,709 (12,734) (11,025)

475,664 34,129 30,243 127,367 8,000 723 252,056 928,182 138,453 1,066,635Dividends (Note 12) - - - - - - (14,074) (14,074) - (14,074)

At 31 December 2008 475,664 34,129 30,243 127,367 8,000 723 237,982 914,108 138,453 1,052,561


for the year ended 31 December 2008


P A G E 101

Company Statement of Changes in Equityfor the year ended 31 December 2008

Non-Distributable DistributableShare

Share Share General Options Retained TotalCapital Premium reserve Reserve Earnings EquityRM'000 RM’000 RM’000 RM’000 RM’000 RM’000

(Note 42) (Note 43) (Note 44) (Note 44) (Note 45)

At 1 January 2007 431,404 - 8,000 - 509,199 948,603Issue of ordinary shares pursuant to exercise

of KPS ESOS 39,408 23,853 - - - 63,261Share options granted under KPS ESOS

- Recognised in income statement - - - 1,612 - 1,612- Included in investment in subsidiaries - - - 6,899 - 6,899

Share options exercised under KPS ESOS - 7,201 - (7,201) - -Profit for the year - - - - 17,237 17,237

470,812 31,054 8,000 1,310 526,436 1,037,612Dividends (Note 12) - - - - (12,597) (12,597)

At 31 December 2007 470,812 31,054 8,000 1,310 513,839 1,025,015

At 1 January 2008 470,812 31,054 8,000 1,310 513,839 1,025,015Issue of ordinary shares pursuant to exercise

of KPS ESOS 4,852 1,939 - - - 6,791Share options granted under KPS ESOS

- Recognised in income statement - - - 196 - 196Share options exercised under KPS ESOS - 1,136 - (1,136) - -Loss for the year - - - - (25,759) (25,759)

475,664 34,129 8,000 370 488,080 1,006,243Dividends (Note 12) - - - - (14,074) (14,074)

At 31 December 2008 475,664 34,129 8,000 370 474,006 992,169



P A G E 102

Cash Flow Statements

Group Company

2008 2007 2008 2007


Cash flows from operating activities

Profit/(loss) before tax and zakat 412 61,305 (13,323) 23,726 Adjustments for:

Interest expense 106,277 109,943 1,283 511Interest income (29,555) (32,804) (828) (2,763)Property, plant and equipment:- depreciation 12,029 12,041 1,109 1,001 - written off 29 15 - -

Bad debts written off:- other receivables - 235 - 12

Write back of provision for doubtful debts (3,688) (4,188) - (5)Write-down of inventories 82 911 - - Reversal of provision for slow moving inventories - (30) - - Provision for doubtful debts 65,883 9,400 47 - Amortisation of deferred membership income (2,649) (3,387) - - Impairment of:- property development costs 27,736 10,273 - - - investment in associates - 1,152 - - - investment in a subsidiary - - 43,700 - - other investments 78 1,474 - 1,474 - investment properties 59 - - -

Reversal of impairment on:- property development costs - (936) - - - other investments - (3,669) - -

Reversal of write-down of inventories - (173) - - Dividend income from:- subsidiary - - (31,815) (841)- associates - - (8,537) (6,648)- other investments (1) (1,000) (1) (1,000)

Amortisation of concession rights 10,130 10,129 - - Amortisation of prepaid land

lease payments 737 783 181 181 Depreciation of investment properties 284 133 2,756 2,559 (Gain)/loss on disposal of:- property, plant and equipment (511) (415) (144) (37)- subsidiaries - 40 - (7)- other investments - (9,216) - (9,216)

Concession assets:- depreciation 13,441 12,789 - -

Loss on disposal of other investments - 578 - - Penalty on taxation 2,224 - 2,221 - Reversal of provision no longer required (5,055) - - - Reversal for liquidated damages - (10,285) - - Reversal of interest incomefrom subsidiaries - - - 5,247

Provision for retirement benefit 75 1,179 75 1,179 Negative goodwill recognised - (1,716) - -

for the year ended 31 December 2008


P A G E 103


Group Company

2008 2007 2008 2007


Cash flows from operating activities (cont’d.)

Share options granted under KPS and KHSB ESOS 821 8,511 196 1,612 Share of profit of associates (56,279) (29,083) - - Share of profit of a joint venture (546) (6,521) - -

Operating profit/(loss) before working capital changes 142,013 137,468 (3,080) 16,985 (Increase)/decrease in inventories (612) 1,562 - - Increase in property development costs (23,131) (109,415) - - (Increase)/decrease in receivables (116,442) 16,533 (69,519) (1,592)Increase/(decrease) in payables 38,655 73,449 (3,597) (4,259)Net movement in intercompany balances (26,290) (27,513) 51,780 (33,789)

Cash generated from/(used in) operations 14,193 92,084 (24,416) (22,655)Zakat paid (3,835) (3,232) (2,322) (1,492)Real property gain tax paid (425) - - - Tax refunds received, net of tax paid/

(tax paid, net of refunds received) 4,502 (13,434) (1,565) (2,882)Retirement benefits paid (575) (679) (575) (679)Liquidated damages paid (1,329) (5,676) - -

Net cash generated from/(used in) operating activities 12,531 69,063 (28,878) (27,708)

Cash flows from investing activities

Acquisition of additional interest in a subsidiary - (670) - - Disposal of subsidiaries - (3,814) - - Net dividends received from:

- subsidiary - - 31,343 614 - associates 120,318 13,568 6,318 4,853 - other investments 1 1,000 1 730

Interest received 29,555 32,804 828 2,763 Purchase of:

- property, plant and equipment (6,079) (8,330) (754) (394)- concession assets (3,565) (23,304) - - - prepaid land lease payments (63) (584) - - - investment properties - - - (75)- other investments (257,092) (6,510) (257,092) (6,510)

Proceeds from disposal of:- property, plant and equipment 1,244 667 146 37 - other investments - 43,714 - 38,269 - subsidiaries - - - 7

Additional investment in associates (225) (2,093) (225) - Income received from joint ventures 3,133 3,000 5,422 3,000

Net cash (used in)/generated from investing activities (112,773) 49,448 (214,013) 43,294

for the year ended 31 December 2008 (cont’d.)


P A G E 104


Group Company

2008 2007 2008 2007


Cash flows from financing activities

Interest paid (86,416) (90,631) (1,263) (511)Dividend paid (14,074) (12,597) (14,074) (12,597)Drawdown of borrowings 110,000 - 110,000 - Advances to a subsidiary - - (29,000) - Repayment of borrowings (109,767) (47,238) - - Repayment of hire purchase (775) (850) (132) (112)Issuance of ordinary shares 6,791 63,261 6,791 63,261 Placement of fixed deposits (2,119) (143) - -

Net cash (used in)/generated from financing activities (96,360) (88,198) 72,322 50,041

Net (decrease)/increase in cash and cash equivalents (196,602) 30,313 (170,569) 65,627 Cash and cash equivalents at beginning of year 241,350 211,037 157,105 91,478

Cash and cash equivalents at end of year (Note 29) 44,748 241,350 (13,464) 157,105


for the year ended 31 December 2008 (cont’d.)


P A G E 105

Notes to the Financial Statements

1. CORPORATE INFORMATION

The Company is a public limited liability company, incorporated and domiciled in Malaysia,and is listed on the Main Board ofBursa Malaysia Securities Berhad. The registered officeof the Company is located at 16th Floor, Plaza Perangsang, PersiaranPerbandaran, 40000 Shah Alam, Selangor Darul Ehsan.

The immediate holding company of the Company is Kumpulan Darul Ehsan Berhad ("KDEB"), a company incorporated inMalaysia, and the ultimate holding corporation is Menteri Besar Selangor (Pemerbadanan), a corporate body formed underEnactment No.3 of the Menteri Besar Selangor (Incorporation), Enactment 1994.

The principal activities of the Company are investment holding, contracting in the works related to infrastructure and utilities andprovision of management services. The principal activities of the subsidiaries are described in Note 18. There have been nosignificant changes in the nature of the principal activities during the financial year.

Related companies refer to companies within the KDEB group.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directorson 29 April 2009.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements comply with the provisions of the Companies Act, 1965 and applicable Financial ReportingStandards in Malaysia. At the beginning of the current financial year, the Company had adopted the revised FRSs,amendment to FRS and Interpretations which are mandatory for financial periods on or after 1 January 2008.

The financial statements of the Group and of the Company have also been prepared on a historical basis.

The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand(RM’000) except when otherwise indicated.

2.2 Summary of significant accounting policies

(a) Subsidiaries and basis of consolidation

(i) Subsidiaries

Subsidiaries are entities over which the Group has the ability to control the financial and operating policies so asto obtain benefits from their activities. The existence and effect of potential voting rights that are currentlyexercisable or convertible are considered when assessing whether the Group has such power over another entity.

In the Company’s separate financial statements, investments in subsidiaries are stated at cost less impairmentlosses. On disposal of such investments, the difference between net disposal proceeds and their carrying amountsis included in profit or loss.

(ii) Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries asat the balance sheet date. The financial statements of the subsidiaries are prepared for the same reporting dateas the Company.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, andcontinue to be consolidated until the date that such control ceases. In preparing the consolidated financialstatements, intragroup balances, transactions and unrealised gains or losses are eliminated in full. Uniformaccounting policies are adopted in the consolidated financial statements for like transactions and events in similarcircumstances.

31 December 2008


2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of significant accounting policies (cont’d.)

(a) Subsidiaries and basis of consolidation (cont’d.)

(ii) Basis of consolidation (cont’d.)

Acquisitions of subsidiaries are accounted for using the purchase method. The purchase method of accountinginvolves allocating the cost of the acquisition to the fair value of the assets acquired and liabilities and contingentliabilities assumed at the date of acquisition. The cost of an acquisition is measured as the aggregate of the fairvalues, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity instruments issued,plus any costs directly attributable to the acquisition.

Any excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets,liabilities and contingent liabilities represents goodwill. Any excess of the Group’s interest in the net fair value ofthe identifiable assets, liabilities and contingent liabilities over the cost of acquisition is recognised immediatelyin profit or loss.

Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. It ismeasured at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities at theacquisition date and the minorities’ share of changes in the subsidiaries’ equity since then.

(b) Associates

Associates are entities in which the Group has significant influence and that is neither a subsidiary nor an interest ina joint venture. Significant influence is the power to participate in the financial and operating policy decisions of theinvestee but not in control or joint control over those policies.

Investments in associates are accounted for in the consolidated financial statements using the equity method ofaccounting. Under the equity method, the investment in associate is carried in the consolidated balance sheet at costadjusted for post-acquisition changes in the Group’s share of net assets of the associate. The Group’s share of thenet profit or loss of the associate is recognised in the consolidated profit or loss. Where there has been a changerecognised directly in the equity of the associate, the Group recognises its share of such changes.

In applying the equity method, unrealised gains and losses on transactions between the Group and the associate areeliminated to the extent of the Group’s interest in the associate. After application of the equity method, the Groupdetermines whether it is necessary to recognise any additional impairment loss with respect to the Group’s netinvestment in the associate. The associate is equity accounted for from the date the Group obtains significant influenceuntil the date the Group ceases to have significant influence over the associate.

Goodwill relating to an associate is included in the carrying amount of the investment and is not amortised. Any excessof the Group’s share of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities overthe cost of the investment is excluded from the carrying amount of the investment and is instead included as incomein the determination of the Group’s share of the associate’s profit or loss in the period in which the investment isacquired.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any long-term interests that, in substance, form part of the Group’s net investment in the associates, the Group does notrecognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

P A G E 106

Notes to the Financial Statements31 December 2008




(b) Associates (cont’d.)

The most recent available audited financial statements and/or management financial statements of the associates areused by the Group in applying the equity method. Where the dates of the audited financial statements used are notcoterminous with those of the Group, the share of results is arrived at from the last audited financial statementsavailable and management financial statements to the end of the accounting period. Uniform accounting polices areadopted for like transactions and events in similar circumstances.

In the Company’s separate financial statements, investments in associates are stated at cost less impairment losses.

On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is includedin profit or loss.

(c) Joint venture

The Group has an interest in a joint venture. Investments in joint venture is accounted for in the consolidated financialstatements using the equity method of accounting as described in Note 2.2(b).

(d) Intangible assets

(i) Goodwill

Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of businesscombination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingentliabilities. Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses.Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events orchanges in circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal ofan entity include the carrying amount of goodwill relating to the entity sold.

(ii) Concession rights

Concession rights acquired separately are measured on initial recognition at cost. The cost of concession rightsacquired in a business combination s their fair values as at the date of acquisition. Following initial recognition,concession rights are carried at cost less any accumulated amortisation and any accumulated impairment losses.Concession rights with a finite useful life are amortised on the unit of production method over the estimatedeconomic useful lives and assessed for impairment whenever there is an indication that the concession rights maybe impaired. The amortisation period and the amortisation method for concession rights with a finite useful lifeare reviewed at least at each balance sheet date.

(e) Property, plant and equipment and depreciation

All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset’scarrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economicbenefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carryingamount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statementduring the financial period in which they are incurred.

Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less accumulateddepreciation and any accumulated impairment losses.

P A G E 107





(e) Property, plant and equipment and depreciation (cont’d.)

Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation of other property, plant andequipment is provided for on a straight line basis to write off the cost of each asset to its residual value over theestimated useful life, at the following annual rates:

Buildings and clubhouse 2% - 10%Motor vehicles 20%Office and hotel furniture, fittings and equipment 10% - 50%Computer and office equipment 10% - 33.33%Office renovation 10%

The residual values, useful lives and depreciation method are reviewed at each financial year end to ensure that theamount, method and period of depreciation are consistent with previous estimates and the expected pattern ofconsumption of the future economic benefits embodied in the items of property, plant and equipment.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits areexpected from its use or disposal. The difference between the net disposal proceeds, if any and the net carryingamount is recognised in profit or loss and the unutilised portion of the revaluation surplus on that item is taken directlyto retained earnings.

(f) Concession assets

Concession assets relate to expenditure for installation works and assets replacement works incurred in connectionwith the concession.

(i) Measurement basis

Concession assets are initially recorded at cost. Subsequent costs are included in the asset's carrying amountor recognised as a separate asset, s appropriate, only when it is probable that future economic benefitsassociated with the item will flow to the Group and the cost of the item can be measured reliably. The carryingamount of the replaced part is derecognised. All other repairs and maintenance are charged to the incomestatement during the financial year in which they are incurred.

Subsequent to recognition, concession assets are stated at cost less accumulated depreciation and accumulatedimpairment loss.

All item of concession asset is derecognised upon disposal or when no future economic benefits are expectedfrom its use or disposal. The difference between the net disposal proceeds, if any, and the net carrying amountis recognised in profit or loss.

(ii) Depreciation

Capital work-in-progress is not depreciated. Depreciation is calculated to write off the cost of other concession assetson the straight ine basis to their residual values over their expected useful lives at the following annual rates:

Assets replacement works 10%Installation works 5% - 10%

Capital work-in-progress will be depreciated when the assets are ready for their intended use.

The residual values, useful lives and depreciation method are reviewed at each financial year end to ensure thatthe amount, method and period of depreciation are consistent with previous estimates and the expected patternof consumption of the future economic benefits embodies in the items of concession assets.

P A G E 108





(g) Investment properties

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.Such properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investmentproperties are stated at its costs less accumulated depreciation and impairment losses, consistent with the accountingpolicy of property, plant and equipment as described in Note 2.2 (e).

Depreciation of investment properties is provided for on straight line basis to write off the cost of each asset to itsresidual value over the estimated useful lives, at the annual rate between 2% to 6.67% per annum for buildings.

A property interest under an operating lease is classified and accounted for as an investment property on a property-by-property basis when the Group holds it to earn rentals or for capital appreciation or both. Any such property interestunder an operating lease classified as an investment property is carried at cost.

Investment properties are derecognised when either they have been disposed of or when the investment property ispermanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losseson the retirement or disposal of an investment property are recognised in profit or loss in the year in which they arise.

(h) Land held for property development and property development costs

(i) Land held for property development

Land held for property development consists of land where no development activities have been carried out orwhere development activities are not expected to be completed within the normal operating cycle. Such land isclassified within non-current assets and is stated at cost less any accumulated impairment losses.

Land held for property development is reclassified as property development costs at the point when developmentactivities have commenced and where it can be demonstrated that the development activities can be completedwithin the normal operating cycle.

(ii) Property development costs

Property development costs comprise all costs that are directly attributable to development activities or that canbe allocated on a reasonable basis to such activities.

When the financial outcome of a development activity can be reliably estimated, property development revenueand expenses are recognised in the income statement by using the stage of completion method. The stage ofcompletion is determined by the proportion that property development costs incurred for work performed to datebear to the estimated total property development costs or surveys of work performed.

Where the financial outcome of a development activity cannot be reliably estimated, property developmentrevenue is recognised only to the extent of property development costs incurred that is probable will berecoverable, and property development costs on properties sold are recognised as an expense in the period inwhich they are incurred.

Any expected loss on a development project, including costs to be incurred over the defects liability period, isrecognised as an expense immediately.

Property development costs not recognised as an expense are recognised as an asset, which is measured at thelower of cost and net realisable value.

The excess of revenue recognised in the income statement over billings to purchasers is classified as accruedbillings within trade receivables and the excess of billings to purchasers over revenue recognised in the incomestatement is classified as progress billings within trade payables.

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(i) Construction contracts

Where the outcome of a construction contract cannot be reliably estimated, contract revenue and contract costs arerecognised as revenue and expenses respectively by using the stage of completion method. The stage of completionis measured by reference to the proportion of contract costs incurred for work performed to date to the estimated totalcontract costs.

Where the outcome of a construction contract cannot be reliably estimated, contract revenue is recognised to theextent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses inthe period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as anexpense immediately.

When the total of costs incurred on construction contracts plus, recognised profits (less recognised losses), exceedsprogress billings, the balance is classified as amount due from customers on contracts. When progress billings exceedcosts incurred plus recognised profits (less recognised losses), the balance is classified as amount due to customerson contracts.

(j) Impairment of non-financial assets

The carrying amounts of assets, other than investment property, construction contract assets, property developmentcosts, inventories and deferred tax assets, are reviewed at each balance sheet date to determine whether there is anyindication of impairment. If any such indication exists, the asset’s recoverable amount is estimated to determine theamount of impairment loss.

For goodwill, intangible assets that have an indefinite useful life and intangible assets that are not yet available for use,the recoverable amount is estimated at each balance sheet date or more frequently when indicators of impairmentare identified.

For the purpose of impairment testing of these assets, recoverable amount is determined on an individual asset basisunless the asset does not generate cash flows that are largely independent of those from other assets. If this is thecase, recoverable amount is determined for the cash-generating unit (CGU) to which the asset belongs to. Goodwillacquired in a business combination is, from the acquisition date, allocated to each of the Group’s CGUs, or groups ofCGUs, that are expected to benefit from the synergies of the combination, irrespective of whether other assets orliabilities of the Group are assigned to those units or groups of units.

An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value in use.In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discountrate that reflects current market assessments of the time value of money and the risks specific to the asset. Wherethe carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written downto its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated firstto reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce thecarrying amount of the other assets in the unit or groups of units on a pro-rata basis.

An impairment loss is recognised in profit or loss in the period in which it arises, unless the asset is carried at arevalued amount, in which case the impairment loss is accounted for as a revaluation decrease to the extent that theimpairment loss does not exceed the amount held in the asset revaluation reserve for the same asset.

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(j) Impairment of non-financial assets (cont’d.)

Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other thangoodwill is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverableamount since the last impairment loss was recognised. The carrying amount of an asset other than goodwill isincreased to its revised recoverable amount, provided that this amount does not exceed the carrying amount thatwould have been determined (net of amortisation or depreciation) had no impairment loss been recognised for theasset in prior years. A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss,unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.

(k) Inventories

Inventories are stated at lower of cost and net realisable value.

The cost of unsold completed properties is determined using the first in, first out method and comprises cost associatedwith the acquisition of land, direct costs and appropriate proportions of common costs.

Cost of inventories for food, beverages and trading goods are determined on a weighted average basis and comprisescosts of purchase.

Cost of inventories for spare parts and consumables are determined using the first-in first-out basis and representsthe landed costs of goods purchased.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs ofcompletion and the estimated costs necessary to make the sale.

(l) Financial instruments

Financial instruments are recognised in the balance sheet when the Group has become a party to the contractualprovisions of the instrument.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractualarrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reportedas expense or income. Distributions to holders of financial instruments classified as equity are charged directly toequity. Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settleeither on a net basis or to realise the asset and settle the liability simultaneously.

(i) Cash and cash equivalents

For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at bank anddeposits with licensed financial institutions which have an insignificant risk of changes in value, net of outstandingbank overdrafts.

(ii) Other non-current investments

Non-current investments other than investments in subsidiaries, associates and investment properties are statedat cost less impairment losses. On disposal of an investment, the difference between net disposal proceeds andits carrying amount is recognised in profit or loss.

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(l) Financial instruments (cont’d.)

(iii) Marketable securities

Marketable securities are carried at the lower of cost and market value, determined on an individual basis. Costis determined on the weighted average basis while market value is determined based on quoted market values.Increases or decreases in the carrying amount of marketable securities are recognised in profit and loss. Ondisposal of marketable securities, the difference between net disposal proceeds and the carrying amount isrecognised in profit or loss.

(iv) Receivables

Receivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate ismade for doubtful debt based on a review of all outstanding amounts as at the balance sheet date.

(v) Payables

Payables are stated at fair value of the consideration to be paid in the future for goods and services received.

(vi) Interest bearing loans and borrowings

All loans and borrowings are initially recognised at the fair value of the consideration received less directlyattributable transaction costs. After initial recognition, interest bearing loans and borrowings are subsequentlymeasured at amortised cost using the effective interest method.

(vii) Equity instruments

Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period inwhich they are declared.

The transaction costs of an equity transaction are accounted for as a deduction from equity, net of tax. Equitytransaction costs comprise only those incremental external costs directly attributable to the equity transactionwhich would otherwise have been avoided.

(m) Leases

(i) Classification

A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards incidentalto ownership. Leases of land and buildings are classified as operating or finance leases in the same way asleases of other assets and the land and buildings elements of a lease of land and buildings are consideredseparately for the purposes of lease classification. All leases that do not transfer substantially all the risks andrewards are classified as operating leases, with the following exceptions:

- Property held under operating leases that would otherwise meet the definition of an investment property isclassified as an investment property on a property-by-property basis and, if classified as investment property,is accounted for as if held under a finance lease (Note 2.2(g)); and

- Land held for own use under an operating lease, the fair value of which cannot be measured separately fromthe fair value of a building situated thereon at the inception of the lease, is accounted for as being held undera finance lease, unless the building is also clearly held under an operating lease.

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(m) Leases (cont’d.)

(ii) Finance leases - the Group as lessee

Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fairvalues and the present value of the minimum lease payments at the inception of the leases, less accumulateddepreciation and impairment losses. The corresponding liability is included in the balance sheet as borrowings.In calculating the present value of the minimum lease payments, the discount factor used is the interest rateimplicit in the lease, when it is practicable to determine; otherwise, the Company’s incremental borrowing rate isused. Any initial direct costs are also added to the carrying amount of such assets.

Lease payments are apportioned between the finance costs and the reduction of the outstanding liability. Financecosts, which represent the ifference between the total leasing commitments and the fair value of the assetsacquired, are recognised in the profit or loss over the term of the relevant lease so as to produce a constantperiodic rate of charge on the emaining balance of the obligations for each accounting period.

The depreciation policy for leased assets is in accordance with that for depreciable property, plant and equipmentas described in Note 2.2(e).

(iii) Operating leases - the Group as lessee

Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevantlease. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expenseover the lease term on a straight line basis.

In the case of a lease of land and buildings, the minimum lease payments or the up-front payments made areallocated, whenever necessary, between the land and the buildings element in proportion to the relative fair valuesfor leasehold interests in the land element and buildings element of the lease at the inception of the lease. The up-front payment represents prepaid lease payments and are amortised on a straight line basis over the lease term.

(n) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assetsthat necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost ofthose assets, until such time as the assets are substantially ready for their intended use or sale. Investment incomeearned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deductedfrom the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(o) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amountof income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have beenenacted at the balance sheet date.

Deferred tax is provided for, using the liability method. In principle, deferred tax liabilities are recognised for all taxabletemporary differences and deferred tax assets are recognised for all deductible temporary differences, unused taxlosses and unused tax credits to the extent that it is probable that taxable profit will be available against which thedeductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is notrecognised if the temporary difference arises from goodwill or from the initial recognition of an asset or liability in atransaction which is not a business combination and at the time of the transaction, affects neither accounting profit nortaxable profit.

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(o) Income tax (cont’d.)

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or theliability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date.Deferred tax is recognised as income or an expense and included in the profit or loss for the period, except when itarises from a transaction which is recognised directly in equity, in which case the deferred tax is also recogniseddirectly in equity, or when it arises from a business combination that is an acquisition, in which case the deferred taxis included in the resulting goodwill or the amount of any excess of the acquirer’s interest is the net fair value of theacquiree’s identifiable assets, liabilities and contingent liabilities over the cost of the combination.

(p) Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable thatan outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimateof the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the currentbest estimate. Where the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase inthe provision due to the passage of time is recognised as finance cost.

(q) Employee benefits

(i) Short term benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which theassociated services are rendered by employees. Short term accumulating compensated absences such as paidannual leave are recognised when services are rendered by employees that increase their entitlement to futurecompensated absences. Short term non-accumulating compensated absences such as sick leave are recognisedwhen the absences occur.

(ii) Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions intoseparate entities or funds and will have no legal or constructive obligation to pay further contributions if any of thefunds do not hold sufficient assets to pay all employee benefits relating to employee services in the current andpreceding financial years.Such contributions are recognised as an expense in the profit or loss as incurred. Asrequired by law, companies in Malaysia make such contributions to the Employees Provident Fund (“EPF”).

(iii) Defined benefit plan

The Company operates a funded, defined benefit retirement scheme, the "Kumpulan Perangsang SelangorBerhad Retirement Scheme" (“the Scheme”), which is an approved defined benefits scheme under Section 150of the Income Tax Act, 1967 for its eligible employees. The Company’s obligation under the Scheme, calculatedusing the Projected Unit Credit Method, is determined based on actuarial computations by independent actuaries,through which the amount of benefit that employees have earned in return for their service in the current and prioryears is estimated. That benefit is discounted in order to determine its present value.

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(q) Employee benefits (cont’d.)

(iii) Defined benefit plan (cont’d.)

Actuarial gains and losses are recognised as income or expense over the expected average remaining workinglives of the participating employees when the cumulative unrecognised actuarial gains or losses for the Schemeexceed 10% of the higher of the present value of the defined benefit obligation and the fair value of plan assets.Past service costs are recognised immediately to the extent that the benefits are already vested, and otherwiseare amortised on a straight line basis over the average period until the amended benefits become vested.

The amount recognised in the balance sheet represents the present value of the defined benefit obligationsadjusted for unrecognised actuarial gains and losses and unrecognised past service costs, and reduced by thefair value of plan assets. Any asset resulting from this calculation is limited to the net total of any unrecognisedactuarial losses and past service costs, and the present value of any economic benefits in the form of refunds orreductions in future contributions to the plan.

During the financial year, the Company has replaced its defined benefit plan for eligible employees with a fourpercent (4%) increase in its EPF contribution to all eligible employees with effect from 1 January 2008.

(iv) Share-based compensation

The Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme (“KPS ESOS”), an equity-settled, share-based compensation plan, allows the Group’s employees to acquire ordinary shares of theCompany. The total fair value of share options granted to employees is recognised as an employee cost with acorresponding increase in the share option reserve within equity over the vesting period and taking into accountthe probability that the options will vest. The fair value of share options is measured at grant date, taking intoaccount, if any, the market vesting conditions upon which the options were granted but excluding the impact ofany non-market vesting conditions. Non-market vesting conditions are included in the assumptions about thenumber of options that are expected to become exercisable on vesting date.

(v) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date or wheneveran employee accepts voluntary redundancy in exchange for these benefits. The Group recognises terminationbenefits as a liability and an expense when it is demonstrably committed to either terminate the employment ofcurrent employees according to a detailed plan without possibility of withdrawal or providing termination benefitsas a result of an offer made to encourage voluntary redundancy. In the case of an offer made to encouragevoluntary redundancy, the measurement of termination benefits is based on the number of employees expectedto accept the offer. Benefits falling due more than twelve months after balance sheet date are discounted topresent value.

(r) Foreign currencies

In preparing the financial statements of the individual entities, transactions in currencies other than the Group'sfunctional currency are recorded in the functional currencies using the exchange rates prevailing at the dates ofthe transactions. At each balance sheet date, monetary items denominated in foreign currencies are translatedat the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominatedin foreign currencies are translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, areincluded in profit and loss for the period.

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(s) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and therevenue can be reliably measured. The following specific recognition criteria must also be met before revenueis recognised:

(i) Sale of properties

Revenue from sale of properties is accounted for by the stage of completion method as described in Note 2.2(h)(ii)and is recognised net of discount.

(ii) Construction contracts

Revenue from construction contracts is accounted for by the stage of completion method as describedin Note 2.2(i).

(iii) Licence and membership fees

A fixed quantum of the golfing license fees and the non-golfing membership fees which approximates 11% of thetotal fees is recognised as initial annual fee in the year the membership is accepted. The balance is recognisedon a fixed annualised amount on a straight-line basis over the term of 15 years.

(iv) Sale of goods

Revenue is recognised net of sales taxes and upon transfer of significant risks and rewards of ownership to thebuyer. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of theconsideration due, associated costs or the possible return of goods.

(v) Revenue from hotel operations, golf club and recreational facilities

Revenue from rental of hotel rooms, sale of food and beverage, sports and recreation and other related incomeis recognised on an accrual basis.

(vi) Interest income

Interest income is recognised on an accrual basis.

(vii) Dividend income

Dividend income is recognised when the Group's right to receive payment is established.

(viii) Management fees

Management fees are recognised when services are rendered.

(ix) Rental income

Rental income from investment property is recognised on a straight line basis over the term of lease. Theaggregate cost of incentives provided to lessee is recognised as a reduction of rental income over the lease termon a straight line basis.

(x) Sale of treated water

Sale of treated water represents invoiced value of bulk quantity of water supplied to the Syarikat Bekalan AirSelangor Sdn. Bhd. (''SYABAS").

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(s) Revenue recognition (cont’d.)

(xi) Imputed interest income

Imputed interest income is accrued on a time proportion basis taking intoconsideration the outstanding receivablesand the effective applicable interest rate. The amount is derived from the difference of the present value of futurerevenue and the total revenue recognised over the concession period.

(t) Fixed Rate Serial Bonds ("FRSB")

The FRSB are bonds issued at a discount to its nominal value of RM738 million. The FRSB are issued in series of up to15 years from the date of issue.

FRSB are initially recognised at cost, being the fair value of the consideration received. After initial recognition, the FRSBis subsequently measured at amortised cost using the effective interest method.

(u) Bai' Bithaman Ajil Islamic Debts Securities ("BaIDS")

The BaIDS are bonds issued in accordance with the Islamic financing concept of Bai' Bithaman Ajil. In accordance withsuch concept, the Group sold certain assets to primary subscriber (a financial institution), and repurchased them backat the same price together with an agreed profit margin. The payment of the purchase price is deferred in accordancewith the maturities of the BaIDS, whilst the profit element is paid half yearly.

BaIDS are initially recognised at cost, being the fair value of the consideration received. After initial recognition, theprofit element attributable to the BaIDS for assets in operation in each period is recognised as an expense at a constantrate to the maturity of each series respectively.

2.3 Changes in accounting policies and effects arising from adoption of the revised FRSs, amendment to FRS and ICInterpretations

On 1 January 2008, the Group and the Company adopted the following revised FRSs, amendment to FRS and ICInterpretations:

FRS 107 Cash Flow StatementsFRS 111 Construction ContractsFRS 112 Income TaxesFRS 118 RevenueFRS 120 Accounting for Government Grants and DisclosureFRS 134 Interim Financial ReportingFRS 137 Provisions, Contingent Liabilities and Contingent AssetsAmendment to The Effects of Changes in Foreign Exchange Rates

FRS 121 - Investment in a Foreign OperationIC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar LiabilitiesIC Interpretation 2 Members' Shares in Co-operative Entities and Similar InstrumentsIC Interpretation 5 Rights to Interests arising from Decommissioning, Restoration

and Environmental Rehabilitation FundsIC Interpretation 6 Liabilities arising from Participating in a specific Market

- Waste Electrical and Electronic Equipment

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2.3 Changes in accounting policies and effects arising from adoption of the revised FRSs, amendment to FRS and ICInterpretations (cont'd.)

IC Interpretation 7 Applying the Restatement Approach under FRS 129:Financial Reporting in Hyperinflationary Economies

IC Interpretation 8 Scope of FRS 2

The revised FRSs, amendment to FRS and IC Interpretations above do not have any significant impact on the financialstatements of the Group and of the Company.

2.4 New standards and IC Interpretations issued but not yet effective

At the date of authorisation of these financial statements, the following new FRSs and IC Interpretations were issued butnot yet effective and have not been applied by the Group and the Company:

Effective forfinancialperiods

beginning onor after

New FRSs and IC Interpretations

FRS 7 Financial Instruments: Disclosures 1 January 2010FRS 8 Operating Segments 1 July 2009FRS 139 Financial Instruments: Recognition and Measurement 1 January 2010IC Interpretation 9 Reassessment of Embedded Derivatives 1 January 2010IC Interpretation 10 Interim Financial Reporting and Impairment 1 January 2010

The new FRSs and IC Interpretations above are expected to have no significant impact on the financial statements ofthe Group and the Company upon their initial application except for the changes in disclosures arising from the adoptionof FRS 8.

The Group and the Company are exempted from disclosing the possible impact, if any, to the financial statements uponthe initial application of FRS 7 and FRS 139.

2.5 Significant accounting estimates and judgements

Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements.They affect the application of the Group's accounting policies, reported amounts of assets, liabilities, income and expensesand disclosures made. They are assessed on an on-going basis and are based on historical experience and relevantfactors, including expectations of future events that are believed to be reasonable under the circumstances.

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2.5 Significant accounting estimates and judgements (cont’d.)

(a) Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within thenext financial year are discussed below:

(i) Impairment of goodwill

The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation ofthe value-in-use of the cashgeneratingunits (“CGU”) to which goodwill is allocated. Estimating value-in-use amountrequires management to make an estimate of the expected future cash flows from the CGU and also to choosea suitable discount rate in order to calculate the present value of those cash flows. The carrying amounts ofgoodwill as at 31 December 2008 were RM131,595,000 (2007: RM131,595,000). Further details are disclosedin Note 22.

(ii) Depreciation of property, plant and equipment

The cost of property, plant and equipment except for freehold land are depreciated on a straight line basis overthe assets' useful lives up to its residual value. Management reviews the residual values, useful lives anddepreciation method at the end of each financial year end and ensures consistency with previous estimates andpatterns of consumptions of the economic benefits that embodies the items in these assets. Changes in usefullives and residual values of these assets may result in revision of future depreciation charges.

(iii) Amortisation of intangible assets

The cost of concession rights is amortised based on the revenue over the concession period. The projectedtreated water revenue used for the purpose of the amortisation calculation is based on the bulk supply rate as setout in the concession agreement multiplied by the average water production.

Changes in the expected level of water production or any revision in the concession period could impact futureamortisation charges. Any difference in the projected total treated water revenue from the management'sestimates would result in approximately a similar variance in profit before tax for the year.

(iv) Assessment of provision for doubtful receivables

The Group makes provision for doubtful receivables based on an assessment of the recoverability of trade andother receivables. Provision are applied to trade and other receivables where events or changes in circumstancesindicate that the balances may not be collectible. The identification of doubtful receivables requires use ofjudgement and estimates. Where the expectation is different from the original estimate, such difference will impactthe carrying value of the trade and other receivables and doubtful receivables expenses in the period in whichsuch estimate has been changed. As at 31 December 2008, provision for doubtful receivables for long termreceivables, trade and other receivables have been disclosed in Note 23, Note 26 and Note 27 respectively.

(v) Share-based payments to employees

The share option scheme allows the Group's employees to acquire shares of the company. The cost of providingshare-based payments to employees is charged to the income statement over the vesting period of the relatedshare options with the corresponding entry to share option reserve. The cost is based on the fair value of theoptions and the number of options expected to vest. The fair value of each option is determined using the Binomialoption pricing model.

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2.5 Significant accounting estimates and judgements (cont’d.)

(a) Key sources of estimation uncertainty (cont’d.)

(vi) Income tax and deferred tax assets

Judgement is involved in determining the provision for income taxes. There are certain transactions andcomputations for which the ultimate taxdetermination is uncertain during the ordinary course of business. TheGroup and the Company recognises liabilities for expected tax issues based on estimates of whether additionaltaxes will be due. Where the final tax outcome of these matters is different from the amounts that were initiallyrecognised, such differences will impact the income tax and deferred tax provisions in the period in which suchdetermination is made.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable thattaxable profit will be available against which the deductible temporary differences can be utilised. Significantmanagement judgement is required to determine the amount of deferred tax assets that can be recognised, basedupon the likely timing and level of future taxable profits together with future tax planning strategies.

The details of income taxes and deferred tax for the Group and the Company are disclosed in Note 10 and Note37 respectively.

(b) Critical judgement made in applying accounting policies

The following is the judgement made by management in the process of applying the Group's accounting policies thathas the most significant effect on the amounts recognised in the financial statements.

(i) Property development

The Group recognises property development revenue and expenses in the income statement by using the stageof completion method. The stage of completion is determined by the proportion that property development costsincurred for work performed to date bear to the estimated total property development costs or survey of workperformed.

Significant judgement is required in determining the stage of completion, the extent of the property developmentcosts incurred, the estimated total property development revenue and costs, as well as the recoverability of thedevelopment projects. In making the judgement, the Group evaluates based on past experience and by relyingon the work of specialists.

As the Group is involved in the sales of land and property development, certain land are sold as part ofdevelopment project. In such instances, where the Group has to undertake development obligations, expressedor implied, the profit from the sale is recognised on a percentage of completion basis. Taking into considerationterms and conditions as set out in sales and purchase agreements and overall project development plans orintentions, the management has to exercise judgement as to whether certain sales should be outright land salesor property development project sales.

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3. REVENUE

Group Company

2008 2007 2008 2007


Rental income from investment properties:Subsidiaries - - 1,504 1,453Others 5,745 4,844 5,745 4,844

Gross dividends from:Subsidiary - - 31,815 841Associates - - 8,537 6,648Other investments:

quoted in Malaysia - 1,000 - 1,000unquoted in Malaysia 1 - 1 -

Sales of development properties and land 90,895 210,451 - -Sales of completed properties 449 6,453 - -Sale of treated water 136,065 134,141 - -Sale of goods 33,271 27,088 - -Hotel operations 34,295 30,742 - -License and membership fees

and club services rendered 4,068 7,724 - -Contract revenue - 708 - 708Fees from property management 1,014 2,057 - -Management fees 24 24 276 276Others - 370 - -

305,827 425,602 47,878 15,770

4. COST OF SALESGroup Company

2008 2007 2008 2007


Property development cost (Note 16(b)) 24,236 132,078 - -Cost of land sold 22,798 19,185 - -Cost of completed properties sold 990 6,689 - -Cost of property management 204 1,561 - -Cost of treated water sold 53,792 48,901 - -Costs of trading inventories sold 30,088 23,891 - -Hotel and golf club operations 15,155 15,264 - -Contract costs - 330 - 330

147,263 247,899 - 330

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5. OTHER INCOMEGroup Company

2008 2007 2008 2007


Interest income:Immediate holding company 243 - - -Subsidiaries - - 150 176Fixed deposits 4,212 6,894 673 2,580Others 25,100 25,910 5 7

Gain on disposal of:Property, plant and equipment 513 415 144 37Subsidiaries - - - 7Other investments - 9,216 - 9,216Write back of provision for doubtful debts 3,688 4,188 - 5

Income from joint ventures 4,908 19,134 5,454 25,655Reversal of:

Impairment of other investments - 3,669 - -Provision for slow moving inventories - 30 - -Provision for liquidated damages - 10,285 - -Impairment of property development cost - 936 - -Write-down of inventories - 173 - -Reversal of provision no longer required 5,055 - - -

Gain on:Unrealised forex - 11 - -Realised forex 41 21 - -

Waiver of debts 45,000 - - -Negative goodwill recognised - 1,716 - -Rental income from operating lease, other than

those relating to investment properties 2,965 4,004 - -Rental income from investment properties 357 635 - -Interest on late payment charged to purchasers - 1,939 - -Compensation received from land office for land acquired 11,951 - - -Others 1,343 4,405 2,934 3

105,376 93,581 9,360 37,686

6. FINANCE COSTSGroup Company

2008 2007 2008 2007


Interest expense/finance cost on:Term loan 38,537 44,999 347 -Bank overdrafts and short term borrowings 5,770 3,947 891 479Fixed Rate Serial Bonds ("FRSB") 30,503 30,503 - -Discount on FRSB 17,213 16,700 - -Bai' Bithaman Ajil Islamic Debt Securities ("BaIDS") 11,000 10,930 - -Discount on BaIDS 2,648 2,612 - -Hire purchase 105 141 25 32Others 501 111 20 -

106,277 109,943 1,283 511

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7. PROFIT/(LOSS) BEFORE TAX AND ZAKATGroup Company

2008 2007 2008 2007


Profit before tax and zakat is stated after charging:

Employee benefits expense (Note 8) 50,560 51,590 8,721 11,240Non-executive directors' remuneration (Note 9) 1,013 1,130 303 499Auditors' remuneration:

Statutory audit 461 455 80 80Others 109 187 7 7Overprovision of audit fees in prior year - (41) - -

Property, plant and equipment (Note 13):Depreciation 12,029 12,041 1,109 1,001Written off 29 15 - -

Provision for doubtful debts 65,883 9,400 47 -Direct operating expenses of investment properties:

- revenue generating during the year 86 31 4,106 4,135- non-revenue generating during the year 16 16 14 14

Bad debts written off:Other receivables - 235 - 12

Reversal of interest income from subsidiaries - - - 5,247Loss on termination of sales 679 - - -Loss on disposal of:

Subsidiaries - 40 - -Property, plant and equipment 2 - - -Other investments - 578 - -

Hire of plant and machinery 151 167 37 33Rental expenses:

Land and buildings 73 1,126 - -State land 3,000 3,000 - -

Concession assets:Depreciation 13,441 12,789 - -

Impairment of:Land held for property development - 10,273 - -Property development cost 27,736 - - -Investment in associates - 1,152 - -Investment in a subsidiary - - 43,700 -Other investments 78 1,474 - 1,474Investment properties 59 - - -

Amortisation of concession rights 10,130 10,129 - -Amortisation of prepaid land lease payments 737 783 181 181Depreciation of investment properties 284 133 2,756 2,559Royalty fees 289 276 - -Project expense written off 13,219 13,780 - 49Write-down of inventories 82 911 - -

P A G E 123



8. EMPLOYEE BENEFITS EXPENSEGroup Company

2008 2007 2008 2007


Wages, salaries and bonus 32,305 28,786 6,718 6,672Social security contributions 384 313 27 26Defined contribution plan 4,441 3,678 846 923Retirement benefit obligations (Note 35(a)) 75 1,179 75 1,179Short term accumulating compensated absences (85) (3) (85) (3)Share options granted under KPS ESOS (Note 44) 196 8,511 196 1,612Share options granted under KHSB ESOS (Note 44) 625 - - -Other benefits 12,619 9,126 944 831

50,560 51,590 8,721 11,240

Included in employee benefits expense of the Group and of the Company are executive directors' remuneration amounting toRM3,861,000 (2007: RM2,634,000) and RM1,641,000 (2007: RM1,038,000) respectively as further disclosed in Note 9.

9. DIRECTORS' REMUNERATIONGroup Company

2008 2007 2008 2007


Directors of the Company

Executive:Salaries 1,982 1,352 1,478 881Fees 433 325 125 122Allowance 73 67 38 35Benefits-in-kind 158 78 128 78

2,646 1,822 1,769 1,116

Non-executive:Allowance 100 115 86 114Fees 287 410 217 385Benefits-in-kind 159 175 159 175

546 700 462 674

3,192 2,522 2,231 1,790

P A G E 124



9. DIRECTORS' REMUNERATION (CONT’D.)Group Company

2008 2007 2008 2007


Directors of Subsidiaries

Executive:Salaries 1,331 873 - -Fees - - - -Allowance 42 17 - -

1,373 890 - -

Non-executive:Allowance 64 113 - -Fees 562 492 - -

626 605 - -

1,999 1,495 - -

Analysis excluding benefits-in-kind:Total executive directors' remuneration (Note 8) 3,861 2,634 1,641 1,038Total non-executive directors' remuneration (Note 7) 1,013 1,130 303 499

4,874 3,764 1,944 1,537

The number of directors of the Company whose total remuneration during the year fell within the following bands is analysedbelow:

Number of directors2008 2007

Executive directors:RM200,001 - RM250,000 - 1RM450,001 - RM500,000 - 1RM1,000,000 - RM1,050,000 1 -RM1,100,000 - RM1,150,000 - 1RM1,600,000 - RM1,650,000 1 -

Non-executive directors:Less than RM50,000 3 -RM50,001 - RM100,000 3 5RM100,001 - RM150,000 1 2RM150,001 - RM200,000 1 -

P A G E 125



10. INCOME TAX AND ZAKATGroup Company

2008 2007 2008 2007


Current income tax:Malaysian income tax 3,841 22,643 2,619 5,019

Real property gains tax ("RPGT") 1,520 1,960 - -Under/(over) provision in prior years:

Malaysian income tax 5,336 (2,428) 7,495 (22)

10,697 22,175 10,114 4,997

Deferred taxation (Note 37):Relating to reversal of temporary differences 3,199 5,461 - -Effect of changes in tax rates on

opening balance of deferred tax (5,992) (5,707) - -(Over)/under provision in prior years (302) 84 - -

(3,095) (162) - -

Total income tax expense 7,602 22,013 10,114 4,997Zakat 3,835 3,232 2,322 1,492

11,437 25,245 12,436 6,489

Domestic current income tax is calculated at the statutory tax rate of 26% (2007: 27%) of the estimated assessable profit forthe year. The domestic statutory tax rate will be reduced to 25% from the current year's rate of 26%, with effect from the yearof assessment 2009. The computation of deferred tax as at 31 December 2008 has reflected these changes.

Certain subsidiaries of the Company being Malaysian resident companies with a paid-up capital of RM2.5 million or less qualifiesfor the preferential tax rates under Paragraph 2A, Schedule 1 of the Income Tax Act, 1967 as follows:

On the first RM500,000 of chargeable income : 20%In excess of RM500,000 of chargeable income : Malaysian corporate statutory tax rate

Zakat has been calculated at 2.5% of the adjusted net current assets multiplied by the estimated Muslim equity holding inthe Company.

A reconciliation of income tax expense applicable to profit before tax and zakat at the statutory income tax rate to income taxexpense at the effective income tax rate of the Group and of the Company is as follows:

2008 2007

Group RMʼ000 RMʼ000

Profit before tax and zakat 412 61,305

Taxation at Malaysian statutory tax rate of 26% (2007: 27%) 107 16,552Effect of income subject to tax rate of 20% (60) (103)Effect of income subject to RPGT rate of 5% 1,520 1,960Effect of changes in tax rates on opening balance of deferred tax (5,992) (5,791)

P A G E 126



10. INCOME TAX AND ZAKAT (CONT’D.)2008 2007

Group (contʼd.) RMʼ000 RMʼ000

Effect on deferred tax recognised at different tax rate (128) ( 201)Income not subject to tax (18,740) (6,923)Expenses not deductible for tax purposes 13,794 31,083Utilisation of previously unrecognised tax losses and unabsorbed

capital allowances (3,863) (1,476)Utilisation of previously unutilised reinvestment allowances (8,069) (11,496)Deferred tax not recognised 23,999 752(Over)/under provision of deferred tax in prior years (302) 84Under/(over) provision of tax expense in prior years 5,336 (2,428)

Income tax expense for the year 7,602 22,013

2008 2007Company RM'000 RM'000

(Loss)/profit before tax and zakat (13,323) 23,726

Taxation at Malaysian statutory tax rate of 26% (2007: 27%) (3,464) 6,406Income not subject to tax (7,826) (2,466)Expenses not deductible for tax purposes 13,568 686Deferred tax assets not recognised in respect of unabsorbed

capital allowances and other deductible temporary differences 341 393Under/(over) provision of tax expense in prior years 7,495 (22)

Income tax expense for the year 10,114 4,997

Tax savings during the financial year arising from:Group Company

2008 2007 2008 2007


Utilisation of unabsorbed capital allowance 1,825 747 1,542 747Utilisation of current year tax losses - 16,535 - 12,889Utilisation of previously unrecognised tax losses 2,206 621 - -

P A G E 127



11. EARNINGS PER SHARE

(a) Basic

Basic earnings per share are calculated by dividing profit for the year attributable to ordinary equity holders of the Companyby the weighted average number of ordinary shares in issue during the financial year.

2008 2007

Profit attributable to ordinary equity holders ofthe Company (RM'000) 1,709 31,998

Weighted average number of ordinary shares in issue ('000) 474,582 441,012

Basic earnings per share (sen) 0.4 7.3

(b) Diluted

For the purpose of calculating diluted earnings per share, the profit for the year attributable to ordinary equity holders ofthe Company and the weighted average number of ordinary shares in issue during the financial year have been adjustedfor the dilutive effects of share options granted to employees.

2008 2007RM'000 RM'000

Profit attributable to ordinary equity holders ofthe Company 1,709 31,998

2008 2007'000 '000

Weighted average number of ordinary shares in issue 474,582 441,012Effects of dilution of Share options 2,959 16,478

Adjusted weighted average number of ordinary shares inissue and issuable 477,541 457,490

Diluted earnings per share (sen) 0.4 7.0

12. DIVIDENDSDividends

Dividend in respect of Year Recognised in Year2008 2007 2006 2008 2007

RM’000 RM’000 RM’000 RM’000 RM’000

Final

Recognised during the year:Final dividend for 2007: 4 sen less 26%

taxation per ordinary shares,on 475,460,760 ordinary shares(2.96 sen per ordinary share) - 14,074 - 14,074 -

P A G E 128



12. DIVIDENDS (CONT’D.)Dividends

Dividend in respect of Year Recognised in Year2008 2007 2006 2008 2007

RM’000 RM’000 RM’000 RM’000 RM’000

Final (cont’d.)

Final dividend for 2006: 4 sen less 27%taxation per ordinary shares,on 431,403,960 ordinary shares(2.92 sen per ordinary share) - - 12,597 - 12,597

Proposed for approval at AGM(not recognised as at 31 December 2008):

Final dividend for 2008: 4 sen less 25%taxation per ordinary shares,on 475,663,760 ordinary shares(3.00 sen per ordinary share) 14,270 - - -

14,270 14,074 12,597 14,074 12,597

At the forthcoming Annual General Meeting, a final dividend in respect of the financial year ended 31 December 2008, of 4 senless 25% taxation, will be proposed for shareholders' approval and be paid on 14 August 2009 to the shareholders registeredon the Company's Register of Members at the close of business on 31 July 2009. The financial statements for the currentfinancial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for inequity as an appropriation of retained earnings in the financial year ending 31 December 2009.

13. PROPERTY, PLANT AND EQUIPMENTOffice

and hotelBuildings furniture,

Freehold and Motor fittings andland clubhouse vehicles equipment Total

Group RM’000 RM’000 RM’000 RM’000 RM’000

At 31 December 2008

Cost

At 1 January 2008 4,794 219,532 9,620 73,052 306,998Additions - 39 1,811 4,467 6,317Written off (Note 7) - - - (197) (197)Disposals - (917) (1,439) (409) (2,765)

At 31 December 2008 4,794 218,654 9,992 76,913 310,353

P A G E 129



13. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)Office

and hotelBuildings furniture,

Freehold and Motor fittings andland clubhouse vehicles equipment Total

Group (cont’d.) RM’000 RM’000 RM’000 RM’000 RM’000

At 31 December 2008

Accumulated Depreciation

At 1 January 2008 - 55,841 7,232 53,171 116,244Depreciation charge for the year (Note 7) - 5,504 1,429 5,096 12,029Written off (Note 7) - - - (168) (168)Disposals - (240) (1,405) (387) (2,032)

At 31 December 2008 - 61,105 7,256 57,712 126,073

Net Carrying Amount

At 31 December 2008 4,794 157,549 2,736 19,201 184,280

At 31 December 2007

Cost

At 1 January 2007 4,794 239,215 10,739 70,319 325,067Additions - 73 1,258 6,679 8,010Written off (Note 7) - - - (197) (197)Transfer to property development costs

(Note 16(b)) - (2,533) - - (2,533)Disposals - (328) (1,671) (16) (2,015)Disposal of subsidiaries (Note 18(a)) - (16,895) (706) (3,733) (21,334)

At 31 December 2007 4,794 219,532 9,620 73,052 306,998


At 1 January 2007 - 59,546 8,417 51,665 119,628Depreciation charge for the year (Note 7) - 5,696 1,193 5,152 12,041Transfer to property development costs

(Note 16(b)) - (343) - - (343)Written off (Note 7) - - - (182) (182)Disposals - (78) (1,671) (14) (1,763)Disposal of subsidiaries (Note 18(a)) - (8,980) (707) (3,450) (13,137)

At 31 December 2007 - 55,841 7,232 53,171 116,244

Net Carrying Amount

At 31 December 2007 4,794 163,691 2,388 19,881 190,754

P A G E 130



13. PROPERTY, PLANT AND EQUIPMENT (CONT'D.)Office

equipment,furniture Motor

Buildings and fittings vehicles TotalCompany RM’000 RM’000 RM’000 RM’000

At 31 December 2008

Cost

At 1 January 2008 550 14,162 2,069 16,781Additions - 80 674 754Disposal - (2) (724) (726)

At 31 December 2008 550 14,240 2,019 16,809


At 1 January 2008 164 9,975 1,542 11,681Depreciation charge for the year (Note 7) 11 716 382 1,109Disposal - - (724) (724)

At 31 December 2008 175 10,691 1,200 12,066

Net Carrying Amount

At 31 December 2008 375 3,549 819 4,743

At 31 December 2007

Cost

At 1 January 2007 550 14,098 2,264 16,912Additions - 64 330 394Disposal - - (525) (525)

At 31 December 2007 550 14,162 2,069 16,781


At 1 January 2007 153 9,232 1,820 11,205Depreciation charge for the year (Note 7) 11 743 247 1,001Disposal - - (525) (525)

At 31 December 2007 164 9,975 1,542 11,681

Net Carrying Amount

At 31 December 2007 386 4,187 527 5,100

P A G E 131



13. PROPERTY, PLANT AND EQUIPMENT (CONT'D.)

(a) During the financial year, the Group acquired property, plant and equipment at cost of RM438,490 (2007: RM190,416) bymeans of hire purchase arrangements.

(b) Net carrying amounts of property, plant and equipment held under hire purchase are as follows:

Group Company

2008 2007 2008 2007


Motor vehicles 621 776 76 273Equipment 702 1,392 - -

1,323 2,168 76 273

14. CONCESSION ASSETS

Asset Capitalreplacement Installation work-in

works work progress TotalRM'000 RM'000 RM'000 RM'000

Group - At 31 December 2008

Cost

At 1 January 2008 86,966 52,715 9,157 148,838Additions - - 3,565 3,565Transfer 9,542 - (9,542) -

At 31 December 2008 96,508 52,715 3,180 152,403


At 1 January 2008 24,709 16,532 - 41,241Depreciation charge for the year (Note 7) 9,304 4,137 - 13,441

At 31 December 2008 34,013 20,669 - 54,682

Net Carrying Amount

At 31 December 2008 62,495 32,046 3,180 97,721

Group - At 31 December 2007

Cost

At 1 January 2007 71,763 51,675 2,096 125,534Additions 184 2 23,118 23,304Transfer 15,019 1,038 (16,057) -

At 31 December 2007 86,966 52,715 9,157 148,838

P A G E 132



14. CONCESSION ASSETS (CONT’D.)

Asset Capitalreplacement Installation work-in

works work progress TotalRM'000 RM'000 RM'000 RM'000

Group - At 31 December 2007 (cont’d.)


At 1 January 2007 15,932 12,520 - 28,452Depreciation charge for the year (Note 7) 8,777 4,012 - 12,789

At 31 December 2007 24,709 16,532 - 41,241

Net Carrying Amount

At 31 December 2007 62,257 36,183 9,157 107,597

15. PREPAID LAND LEASE PAYMENTSGroup Company

2008 2007 2008 2007


At 1 January 53,503 53,933 13,904 14,085Addition 63 584 - -Transfer to property development cost (Note 16(b)) - (231) - -Amortisation for the year (Note 7) (737) (783) (181) (181)

At 31 December 52,829 53,503 13,723 13,904

Analysed as:Long term leasehold land 52,829 53,503 13,723 13,904

16. LAND HELD FOR PROPERTY DEVELOPMENT AND PROPERTY DEVELOPMENT COSTS

(a) Land held for property developmentDevelopment

Land Cost TotalGroup RM'000 RM'000 RM'000

At 31 December 2008:

Cost:

At 1 January 2008 283,134 19,476 302,610Additions 18 8,782 8,800Transfer to property

development costs (Note 16(b)) (5,232) (4,833) (10,065)

At 31 December 2008 277,920 23,425 301,345

P A G E 133



16. LAND HELD FOR PROPERTY DEVELOPMENT AND PROPERTY DEVELOPMENT COSTS (CONT’D.)

(a) Land held for property development (cont’d.)Development

Land Cost TotalGroup (cont’d.) RM'000 RM'000 RM'000


Accumulated impairment losses:

At 1 January/31 December 2008 (2,403) - (2,403)

Carrying amount at 31 December 2008 275,517 23,425 298,942


Cost:

At 1 January 2007 319,794 40,372 360,166Additions 16 5,342 5,358Disposal of subsidiaries (Note 18 (a)) (16,643) (25,630) (42,273)Disposal of land (16,296) (631) (16,927)Charged directly to the income statement - (77) (77)Transfer (to)/from property

development costs (Note 16(b)) (3,737) 100 (3,637)

At 31 December 2007 283,134 19,476 302,610

Accumulated impairment losses:

At 1 January 2007 (2,403) - (2,403)Impairment of land held for developments (Note 7) 10,273 - 10,273Disposal of subsidiaries (Note 18 (a)) (10,273) - (10,273)

At 31 December 2007 (2,403) - (2,403)

Carrying amount at 31 December 2007 280,731 19,476 300,207

(b) Property Development Costs2008 2007


Cumulative property development costs

At 1 January:Land costs 235,784 322,677Development costs 768,299 914,235

1,004,083 1,236,912

P A G E 134




(b) Property Development Costs (cont’d.)2008 2007


Cumulative property development costs (cont’d.)

Costs incurred during the year:Land costs 3,343 -Development costs 58,023 255,570

61,366 255,570

Disposal of subsidiaries:Land costs - (77,496)Development costs - (29,267)

- (106,763)

Reversal of completed projects:Land costs (1,617) (13,365)Development costs (79,287) (371,859)

(80,904) (385,224)

Transfer from/(to) land held for property development (Note 16(a)):Land costs 5,232 3,737Development costs 4,833 (100)

10,065 3,637

Transfer from property, plant and equipment (Note 13):Development cost - 2,190

Transfer from prepaid land lease payments (Note 15):Land costs - 231

Disposal of landLand costs (22,324) -Development costs (474) (2,296)

(22,798) (2,296)

Accumulated impairment losses:At 1 January (3,359) (4,295)Recognised during the year (Note 7) (27,736) -Reversal during the year (Note 5) - 936

At 31 December (31,095) (3,359)

P A G E 135




(b) Property Development Costs (cont’d.)2008 2007


Cumulative property development costs (cont’d.)

Accumulated provision for foreseeable losses:At 1 January/31 December (10,054) (10,054)

Unsold units transferred to inventories:Development costs - (174)

At 31 December 930,663 990,670

Cumulative costs recognised in income statement

At 1 January: (528,624) (878,624)Recognised during the year (Note 4) (24,236) (132,078)Reversal of completed projects 80,904 385,224Disposal of subsidiaries - 96,854

At 31 December (471,956) (528,624)

Property development costs at 31 December 458,707 462,046

(i) Titles to certain leasehold land amounting to RM11,705,000 (2007: RM11,705,000) of the Group have yet to betransferred to certain subsidiaries by the State Secretary Selangor (Incorporated) and Yayasan Selangor.

(ii) In the previous year, certain land held for property development of the Group amounting to RM57,584,931 have beenpledged for banking facilities granted to the subsidiaries.

(iii) A charge has been created over development properties amounting to RM5,350,181 (2007: RM5,350,181) in favourof a third party by a subsidiary company.

17. INVESTMENT PROPERTIESGroup Company

2008 2007 2008 2007


At 1 January 7,947 8,080 65,531 68,015Addition - - - 75Impairment (Note 7) (59) - - -Depreciation charge for the year (Note 7) (284) (133) (2,756) (2,559)

At 31 December 7,604 7,947 62,775 65,531

Fair value at 31 December 8,883 9,100 106,500 112,000

At Group level, the leasehold building with a carrying value of RM60,320,356 (2007: RM63,017,230 was reclassified to property,plant and equipment as certain parts of the building were rented out to the subsidiaries. The investment properties of the Groupwith carrying value of RM5,350,000 (2007: RM5,448,360) are pledged as securities for borrowings as disclosed in Note 30.

P A G E 136



18. INVESTMENTS IN SUBSIDIARIESCompany

2008 2007

RMʼ000 RMʼ000

Quoted shares at cost 402,164 402,164Less: Accumulated impairment losses (43,700) -

358,464 402,164

Unquoted shares at cost 228,262 228,262Less: Accumulated impairment losses (20,298) (20,298)

207,964 207,964

566,428 610,128

Market value of quoted shares:In Malaysia 82,733 234,198

The recoverable amount of the investment in subsidiaries has been determined by the directors based on value-in-usecalculation and net selling price. The period of cash flow projections and assumptions used are disclosed in Note 22.

The directors are of the view that it is not practicable within the constraints of timeliness and cost to estimate reliably the fairvalues of investments in unquoted shares.

Details of the subsidiaries which are incorporated in Malaysia are as follows:

Proportion of ownershipName of subsidiaries interest (%) Principal activities

2008 2007

Held by the Company:

Kumpulan Hartanah 57 57 Property developmentSelangor Berhad

Hydrovest Sdn. Bhd. 60 60 Management and consultancy services

Titisan Modal (M) Sdn. Bhd. 55 55 Investment holding

Viable Chip (M) Sdn. Bhd. 100 100 Investment holding

Cash Band (M) Berhad 99 99 Investment holding and manages/owns agolf club

Perangsang Consultancy 100 100 Dormant& Engineering Sdn. Bhd.

P A G E 137



18. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

Details of the subsidiaries which are incorporated in Malaysia are as follows (cont'd.):


2008 2007

Perangsang Metal 70 70 In liquidationSelangor Sdn. Bhd.

Selangor Construction Sdn. Bhd. 100 100 Construction works and granitequarrying (under official assignee)

Selangor Tiles Sdn. Bhd. 86 86 Under official assignee

Perangsang Segemal Sdn. Bhd. 51 51 In liquidation

Perangsang Alphasoft Sdn. Bhd. 100 100 In liquidation

Selangor Frits & Glazes Sdn. Bhd. 51 51 In liquidation

+ Selangor Amal Holdings Sdn. Bhd. 100 100 Dormant

Held by Kumpulan HartanahSelangor Berhad:

Central Spectrum (M) Sdn. Bhd. 44 44 Property development

SAP Holdings Berhad 57 57 Property development

* Brisdale International Hotel Sdn. Bhd. - 57 Property investment and hotel operator

Held by SAP Holdings Berhad

SAP Urus Harta Sdn. Bhd. 57 57 Property management

SAP Project Consultant Sdn. Bhd. 57 57 Ceased operation

SAP Ulu Yam Sdn. Bhd. 57 57 Property development andproperty management

SAP Leisure and Resort Sdn. Bhd. 57 57 Development of a tourist resort and propertyinvestment

Templer Park Golf & Resort Berhad 54 54 Property development

Perangsang Templer 54 54 Property development, landscaping and golfLandscape Sdn. Bhd. maintenance work

P A G E 138






2008 2007

Held by SAP Holdings Berhad (cont’d.)

Templer Park Development Sdn. Bhd. 29 29 Property development

Templer Park Equestrian 57 57 Property developmentCentre Sdn. Bhd.

SAP Langkawi 57 57 DormantDevelopment Sdn. Bhd.

SAP Heritage Hotels & 57 57 DormantProperties Sdn. Bhd.

KHSB Properties Sdn. Bhd. 57 57 Dormant

SAP Rawang 57 57 DormantDevelopment Sdn. Bhd.

SAP Air Hitam Properties Sdn. Bhd. 57 57 Property development

SAP Sepang Development Sdn. Bhd. 57 57 Dormant

KHSB Titijaya Sdn. Bhd. 57 57 Dormant(formerly known as Air Terentang

Corporation Sdn. Bhd.)

Megatown Corporation Sdn. Bhd. 57 57 Dormant

SAP Sungai Pusu 57 57 DormantDevelopment Sdn. Bhd.

SAP Bengkulen Plantation Sdn. Bhd. 57 57 Dormant

Central Holdings Management 57 57 DormantServices Sdn. Bhd.

Akademi Kecemerlangan 46 46 DormantSAP Sdn. Bhd.

SUH-Imej Parking Sdn. Bhd. 29 29 Provision of parking services

SAP Education Sdn. Bhd. 57 57 Dormant

@ PISB Trading Sdn. Bhd. 57 57 Ceased operation

P A G E 139






2008 2007

Held under Hydrovest Sdn. Bhd.:

Aqua-Flo Sdn. Bhd. 36 36 Trading in chemical products

Held under Titisan Modal (M) Sdn. Bhd.:

+ Konsortium Abass Sdn. Bhd. 55 55 Operating, maintenance, construction andcommissioning of water treatment plant andfacilities and undertake contract works relating to the water industry activities

+ Rangkai Aman Sdn. Bhd. 55 55 Investment holding

Held under Cash Band (M) Berhad:

Perangsang Hotel and 99 99 HotelierProperties Sdn. Bhd.

* Brisdale International Hotel Sdn. Bhd. 99 - Property investment and hotel operator

+ Audited by firms of auditors other than Ernst & Young

@ The financial statements of this subsidiary has been prepared on a break-up basis.

* Subsidiary acquired and disposed of pursuant to the Proposed Acquisition Cum Debt Settlement Agreement as disclosedin Note 49(b).

(a) Disposal of subsidiaries in the previous year

In the previous year, the Group disposed of the following subsidiaries:

(i) 57% equity interest in Brisdale Holdings Bhd.(ii) 57% equity interest in Pembangunan Brisdale Sdn. Bhd.(iii) 57% equity interest in Brisdale Resources Sdn. Bhd(iv) 57% equity interest in Konsortium Lebuhraya Beruntung Genting Sdn. Bhd.(v) 57% equity interest in Brisdale Assets Sdn. Bhd.(vi) 57% equity interest in Brisdale Housing Sdn. Bhd.(vii) 57% equity interest in Brisdale Technology Sdn. Bhd.(viii) 57% equity interest in Kelab Rekreasi Brisdale Berhad(ix) 57% equity interest in Brisdale Brooklands Development Sdn. Bhd.(x) 57% equity interest in Brisdale Projects Management Sdn. Bhd.(xi) 57% equity interest in Brisdale Property Management Sdn. Bhd.(xii) 57% equity interest in Brisdale Rasa Development Sdn. Bhd.(xiii) 57% equity interest in Lindung Malam Sdn. Bhd.(xiv) 59% equity interest in Kuala Langat Mining Sdn. Bhd.

P A G E 140




(a) Disposal of subsidiaries in the previous year (cont’d.)

The disposal had the following effects on the financial position of the Group as at the end of the previous year:

2007

RMʼ000

Assets

Property, plant and equipment (Note 13) 8,197Land held for property development (Note 16(a)) 32,000Property development costs (Note 16(b)) 9,909Receivables 21,551Inventories 38,729Cash and bank balances 3,871

114,257

LiabilitiesProvisions (Note 41) (44,803)Trade payables (35,450)Other payables (93,139)

(173,392)

Net liabilities disposed of (59,135)Attributable goodwill (Note 22) 30,457Minority interest 28,775

97Loss on disposal to the Group (Note 7) (40)

Total disposal consideration 57

The cash flow on disposal was determined as follows:Cash consideration 57Cash and cash equivalents of subsidiaries disposed (3,871)

Net cash outflow of the Group (3,814)

(b) Assets Pledged as Security

The carrying amount of shares in subsidiaries pledged for borrowings are as follows:

Group Company

2008 2007 2008 2007


Quoted shares 397,212 79,000 397,212 79,000Unquoted shares 535,441 535,441 - -

P A G E 141



19. INVESTMENTS IN ASSOCIATESGroup Company

2008 2007 2008 2007


In Malaysia:Quoted shares at cost 46,236 46,236 46,236 46,236Unquoted shares 268,554 268,329 133,023 132,798

314,790 314,565 179,259 179,034Share of post acquisition reserves 137,698 201,737 - -

452,488 516,302 179,259 179,034Less: Accumulated impairment losses (18,042) (18,042) (15,990) (15,990)

434,446 498,260 163,269 163,044

Market value of quoted shares 144,040 168,345 144,040 168,345

Details of the associates which are incorporated in Malaysia are as follows:

Proportion of ownershipName of associates interest (%) Principal activities

2008 2007

Held by the Company:

Kuala Langat Mining Sdn Bhd. 41 41 Dormant

+ Δ Intan Perangsang Sdn. Bhd. 30 30 Dormant

+ Perangsang Water 40 40 Water project operationManagement Sdn. Bhd. and management

+ Taliworks Corporation Berhad 20 20 Investment holding, provision of contracting,project and management services

Sistem Penyuraian Trafik KL Barat 20 20 Investment holding andHoldings Sdn. Bhd.("SPRINT") provision of management services

+ # KPS-HCM Sdn. Bhd. 30 30 Maintenance and upgrading of roads

Held by Cash Band (M) Berhad:

KDE Recreation Berhad ("KDERB") 49 49 Club management

P A G E 142



19. INVESTMENTS IN ASSOCIATES (CONT’D.)

Details of the associates which are incorporated in Malaysia are as follows: (cont’d.)

Proportion of ownershipName of associates interest (%) Principal activities

2008 2007

Held by SAP Holdings Berhad:

+ Δ Ulu Yam Golf and Country 23 23 Development and management of a golfClub Sdn. Bhd. and country club

+ Δ Beruntung Transport 11 11 Development of logistic parkCity Sdn. Bhd. park

+ Δ Waste Water Management 11 11 Consultancy services and construction worksSdn. Bhd. for water supply, reticulation and

central coverage system

Held by Central Spectrum (M) Sdn. Bhd.:

+ PMB Spectrum Sdn. Bhd. 17 17 Provision of common waste water treatmentplan facilities and other development projects

Held by Viable Chip (M) Sdn. Bhd.:

Syarikat Pengeluar Air Selangor 30 30 Investment holdingHoldings Berhad ("SPLASH")

Held by Hydrovest Sdn. Bhd.:

+ Chemindus Sdn. Bhd. 15 15 Manufacturing in chemical products.

+ Audited by firms of auditors other than Ernst & Young

Δ The financial statements of the associates are not available. The said investments have been fully written down. In viewof this, the effect of not equity accounting for investment in associates is not material to the Group.

# Acquired during the previous financial year.

P A G E 143




The summarised financial statements of the associates are as follows:

2008 2007

RMʼ000 RMʼ000

Assets and liabilities

Current assets 1,226,267 1,342,273Non-current assets 5,421,125 5,711,146

Total assets 6,647,392 7,053,419

Current liabilities 433,431 369,149Non-current liabilities 4,600,598 4,857,682

Total liabilities 5,034,029 5,226,831

Results

Revenue 990,797 925,312Profit for the year 191,008 90,354

The details of goodwill included within the Group’s carrying amount of investment in associates are as follows:

GoodwillRM'000

Carrying amount

At 1 January 2007/31 December 2007 7,903

At 1 January 2008/31 December 2008 7,903

The financial statements of the associates of the Group are coterminous with those of the Group, except for SPRINT andSPLASH which have a financial year end of 31 March and KDERB which have a financial year end of 30 April to conform withits respective holding companies' financial year end.

The share of results of SPRINT and SPLASH for the current financial year are for the twelve month period ended 31 December2008, incorporating the three month period ended 31 March 2008 based on the latest audited financial statements and themanagement financial statements for the nine month period ended 31 December 2008.

The share of results of KDERB for the current financial year are for the twelve month period ended 31 December 2008,incorporating the four month period ended 30 April 2008 based on the latest audited financial statements and the managementfinancial statements for eight month period ended 31 December 2008.

P A G E 144




The carrying amount of associates of the Group and Company pledged for borrowings are as follows:

Group Company

2008 2007 2008 2007


Quoted shares 45,067 22,680 45,067 22,680Unquoted shares 131,487 131,487 - -

176,554 154,167 45,067 22,680

20. OTHER INVESTMENTSGroup Company

2008 2007 2008 2007


At cost:Quoted shares, in Malaysia 69,432 13,406 68,220 12,194Quoted unit trusts, in Malaysia 165 165 115 115

69,597 13,571 68,335 12,309Less: Impairment in value (4,972) (4,894) (4,274) (4,274)

64,625 8,677 64,061 8,035

At cost:Unquoted shares 201,066 - 201,066 -

At cost:Fixed Rate Serial Bonds 2,104 2,104 2,104 2,104

At cost:Club memberships 2,005 2,005 500 500Less: Impairment in value (120) (120) - -

1,885 1,885 500 500

269,680 12,666 267,731 10,639

Market values:Quoted shares, in Malaysia 26,754 15,262 25,885 13,684Quoted unit trusts, in Malaysia 200 166 133 166

26,954 15,428 26,018 13,850

P A G E 145



20. OTHER INVESTMENTS (CONT’D.)

The directors are of the view that it is not practicable within the constraints of timeliness and cost to estimate reliably the fairvalues of investments in unquoted shares.

The directors are of the view that no impairment is required for the other investment as the recoverable amount is in excess ofthe carrying amount of the investments.

The carrying amount of other investments pledged for borrowings are as follows:

Group and Company

2008 2007

RMʼ000 RMʼ000

Quoted shares, in Malaysia 63,256 -

21. CONCESSION RIGHTSGroup

2008 2007

RMʼ000 RMʼ000

Cost

At 1 January/31 December 376,406 376,406

Accumulated Amortisation

At 1 January (16,986) (6,857)Amortisation during the year (Note 7) (10,130) (10,129)

At 31 December (27,116) (16,986)

Net carrying amount

At 31 December 349,290 359,420

22. GOODWILL ON CONSOLIDATIONGroup

2008 2007

RMʼ000 RMʼ000

At 1 January 131,595 161,017Derecognised on disposal of subsidiaries (Note 18(a)) - ( 30,457)Transfer from capital reserve - 1,035

At 31 December 131,595 131,595

Cost 132,622 162,044Derecognised on disposal of subsidiaries - (30,457)Transfer from capital reserve - 1,035

132,622 132,622

P A G E 146



22. GOODWILL ON CONSOLIDATION (CONT'D.)Group

2008 2007

RMʼ000 RMʼ000

Less: Accumulated impairment (1,027) (1,027)

131,595 131,595

Impairment test for goodwill

Goodwill is allocated to the Group’s cash-generating units ("CGU") identified accordingly to major business segments.

A segment-level summary of the goodwill allocation is presented below:

Group

2008 2007

RMʼ000 RMʼ000

Property development and management 23,871 23,871Hospitality 2,020 2,020Infrastructure and utilities 105,394 105,394Trading 310 310

131,595 131,595

The recoverable amount of cash generating units (CGU) of the infrastructure and utilities, property development andmanagement segment is determined based on value-in-use calculation. For infrastructure and utilities segment, a twenty twoyear period cash flow projections were used in the value-in-use calculation whereas a ten year period cash flow projections wereused in the value-in-use calculation in property development, management and trading segments. The cash flow projectionswere based on financial budgets approved by the Board of Directors covering a five year period. Cash flow projections for theperiod beyond the approved budget are extrapolated using zero growth rate.

The value-in-use calculation was approved by the Board of Directors.

Key assumptions used for value-in-use calculation:

(i) The discount rate used is consistent with the respective segment’s weighted average cost of borrowings.

Discount rate

Property development and management 6% and 8.3%Infrastructure and utilities 8.21%Trading 7.5%

(ii) The projects will be launched on the assumed due dates and the project cash flow will occur as projected.

(iii) Proceeds from sale of land and concession rights will be received as projected.

(iv) The concession rights' cash flow will occur as projected.

P A G E 147



22. GOODWILL ON CONSOLIDATION (CONT'D.)

The above assumptions have been used for the analysis of each CGU. Management determined project launch dates basedon management’s operation plans and proceeds from sale of land based on agreements.

The recoverable amount of CGU of hospitality segment is determined based on net selling price valued by a valuer. The basisof valuation is based on market value and the valuer had adopted the Comparison Method in valuing the property.

The recoverable amount of CGU of infrastructure and utilities and trading segment is determined based on present value offuture cash flows.

The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note2.2 (j).

If the estimated discount rate applied to the discounted cash flows had been 1% higher than management estimates, the Groupwould not need to reduce the carrying value of goodwill.

23. LONG TERM RECEIVABLESGroup

2008 2007

RMʼ000 RMʼ000

Long term receivables 108,022 114,247Less: Provision for doubtful debts (73,925) (8,495)

34,097 105,752

(i) Included in long term receivables are due from companies within a group which are in the process of undertaking a groupfinancial restructuring scheme. These debts have been long outstanding and have been fully provided for.

(ii) Also included in long term receivables is an amount receivable from progress billings on contract works performed and saleof treated water owing from Syarikat Bekalan Air Selangor Sdn. Bhd. ("SYABAS"). The amount due from SYABAS ofRM34,097,330 (2007: RM40,322,330) is stated at fair value.

24. INVENTORIESGroup

2008 2007

RMʼ000 RMʼ000

At cost

Completed properties 23,038 23,605Trading inventories 1,094 609Consumables 486 431Food and beverage 67 77

24,685 24,722

P A G E 148



24. INVENTORIES (CONT'D.)Group

2008 2007

RMʼ000 RMʼ000

Net realisable value

Completed properties 36,356 35,789

61,041 60,511

Inventories of the Group amounting to approximately RM17,718,000 (2007: RM19,975,000) have been pledged for creditfacilities granted to certain subsidiaries (Note 30).

25. AMOUNT DUE FROM CUSTOMER ON CONTRACTGroup

2008 2007

RMʼ000 RMʼ000

Construction costs incurred to date 399,658 399,658Attributable profits 27,637 27,637

427,295 427,295Less: Progress billings (174,063) (165,908)

Amount due from customer on contract (Note 26) 253,232 261,387

The gross amount due from customer relates to revenue from Bukit Badong Distribution Works which is billed through adjustedwater tariff over the concession period as stipulated in the Supplemental Agreement dated 10 February 2001.

26. TRADE RECEIVABLESGroup Company

2008 2007 2008 2007RM’000 RM’000 RM’000 RM’000

Trade receivables 205,467 170,019 1,316 1,424Less: Provision for doubtful debts (21,318) (28,998) (1,020) (973)

184,149 141,021 296 451Accrued billings in respect of property development cost 673 2,012 - -Amount due from customer on contract (Note 25) 253,232 261,387 - -

438,054 404,420 296 451

The Group’s normal trade credit term ranges from 30 to 120 days (2007: 30 to 120 days). Other credit terms are assessed andapproved on a case-by-case basis.

The Group has significant concentration of credit risk that arose from exposure to a single debtor, Syarikat Bekalan Air SelangorSdn. Bhd. ("SYABAS"), which makes up 29% (2007: 36%) of total trade receivables of the Group.

P A G E 149



27. OTHER RECEIVABLESGroup Company

2008 2007 2008 2007RM’000 RM’000 RM’000 RM’000

Advances 167 301 25 20Prepayments 554 696 2 -Deposits 10,080 3,986 424 424Sundry receivables 34,297 37,836 6,438 29,709

45,098 42,819 6,889 30,153Less: Provision for doubtful debts (2,008) (2,004) (102) (102)

43,090 40,815 6,787 30,051

During the previous financial year, the Group and the Company had significant concentration of credit risk that arose fromexposure to a single debtor, Perbadanan Kemajuan Negeri Selangor ("PKNS"), which makes up 52% and 70% of total otherreceivables outstanding in the Group and the Company respectively.

28. AMOUNT DUE FROM IMMEDIATE HOLDING COMPANY, SUBSIDIARIES, RELATED COMPANIES AND ASSOCIATES

(a) Amount due from immediate holding company

Group Company2008 2007 2008 2007

RM’000 RM’000 RM’000 RM’000

Amount due from immediateholding company 193,167 79,175 96,909 1,176

Included in amount due from immediate holding company of the Group and of the Company are:

Group Company2008 2007 2008 2007

RM’000 RM’000 RM’000 RM’000

Deposits paid for the purchase of land banks 21,112 21,112 - -Deposit paid for a project 87,470 - 87,470 -

108,582 21,112 87,470 -

The amount due from immediate holding company are unsecured, interest free and have no fixed terms of repayment except for:

(i) advances to immediate holding company of the Group amounting to RM Nil (2007: RM20,000,000) which bearsinterest of Nil (2007: 5%) per annum.

(ii) advances to immediate holding company of the Group amounting to RM16,152,000 (2007: RM16,188,476) which isrepayable yearly in six installments commencing 2003.

P A G E 150



28. AMOUNT DUE FROM IMMEDIATE HOLDING COMPANY, SUBSIDIARIES, RELATED COMPANIES AND ASSOCIATES (CONT'D.)

(b) Amount due from subsidiariesComapany

2008 2007

RMʼ000 RMʼ000

Amount due from subsidiaries 66,515 12,079Less: Provision for doubtful debts (4,280) (4,280)

62,235 7,799

The amount due from subsidiaries are unsecured, interest free and have no fixed terms of repayment.

(c) Amount due from related companiesGroup Company

2008 2007 2008 2007RM’000 RM’000 RM’000 RM’000

Amount due from related companies 4 3 - 3

The amount due from related companies are unsecured, interest free and have no fixed terms of repayment.

(d) Amount due from associatesGroup Company

2008 2007 2008 2007RM’000 RM’000 RM’000 RM’000

Amount due from associates 240 158 239 156

The amount due from associates are unsecured, interest free and have no fixed terms of repayment.

29. CASH AND CASH EQUIVALENTSGroup Company

2008 2007 2008 2007RM’000 RM’000 RM’000 RM’000

Housing Development Accounts 2,913 7,661 - -Sinking Fund Trust Account 75 4 - -Cash on hand and at banks 43,082 44,294 144 1,022Deposits with:

Licensed banks 51,679 230,598 - 156,083Licensed finance companies 18,868 20,197 - -

Cash and bank balances 116,617 302,754 144 157,105Bank overdrafts (Note 30) (63,679) (55,333) (13,608) -Less: Fixed deposits pledged (8,190) (6,071) - -

Cash and cash equivalents 44,748 241,350 (13,464) 157,105

P A G E 151



29. CASH AND CASH EQUIVALENTS (CONT'D.)

The Housing Development Accounts are held pursuant to Section 7A of the Housing Development (Control and Licensing)Act, 1966 and are restricted from use in other operations.

The Sinking Fund Trust Account is maintained in accordance with the provisions of the Trust Deed entered between a subsidiaryand the trustee. This account, which consists of membership fees received from members, will be released to the Companyupon expiry of the cooling-off period and confirmation by the Company of its acceptance of the application by the members.

Certain deposits of the Group with licensed banks:

(i) Amounting to RM6,137,000 (2007: RM6,071,124), have been pledged for bank guarantee facilities granted to certainsubsidiaries as disclosed in Note 30.

(ii) Amounting to RM2,053,000 (2007: RM21,000,000), are held for the purpose of a subsidiary's term loan repayment andtherefore restricted from use in other operations.

The weighted average interest rates of deposits at the balance sheet date were as follows:

Group Company2008 2007 2008 2007

% % % %

Licensed banks 3.37 3.20 - 3.13Licensed finance companies 3.19 3.19 - -

The average maturities of deposits at the end of the financial year were as follows:

Group Company2008 2007 2008 2007Days Days Days Days

Licensed banks 30 68 - 86Licensed finance companies 116 94 - -

P A G E 152



30. BORROWINGS

Group Company

2008 2007 2008 2007


Short term borrowings

Secured:Bank overdrafts 22,382 11,286 13,608 -Revolving credits 5,000 5,000 - -Term loans 81,434 66,250 30,000 -Hire purchase payables (Note 33) 761 753 122 116Guaranteed Fixed Rate Term Loan 28,000 28,000 - -Bai' Bithaman Ajil Facility 28,000 28,000 - -

165,577 139,289 43,730 116

Unsecured:Bank overdrafts 41,297 44,047 - -Revolving credits 15,000 15,000 - -

56,297 59,047 - -

221,874 198,336 43,730 116

Long term borrowings

Secured:Term loans 203,824 162,684 80,000 -Hire purchase payables (Note 33) 875 1,403 297 419Guaranteed Fixed Rate Term Loan 99,000 127,000 - -Bai' Bithaman Ajil Facility 89,000 117,000 - -Fixed Rate Serial Bonds 576,664 559,452 - -Bai' Bithaman Ajil Islamic Debt Securities ("BaIDS") 186,885 184,237 - -

1,156,248 1,151,776 80,297 419

Total borrowings

Bank overdrafts (Note 29) 63,679 55,333 13,608 -Revolving credits 20,000 20,000 - -Term loans 285,258 228,934 110,000 -Hire purchase payables (Note 33) 1,636 2,156 419 535Guaranteed Fixed Rate Term Loan 127,000 155,000 - -Bai' Bithaman Ajil Facility 117,000 145,000 - -Fixed Rate Serial Bonds 576,664 559,452 - -Bai' Bithaman Ajil Islamic Debt Securities ("BaIDS") 186,885 184,237 - -

1,378,122 1,350,112 124,027 535

P A G E 153



30. BORROWINGS (CONTʼD.)

Group Company

2008 2007 2008 2007


Maturity of borrowings(excluding hire purchase)

Within one year 240,457 197,583 43,608 -More than 1 year and less than 2 years 188,414 117,788 50,000 -More than 2 years and less than 5 years 357,190 316,217 30,000 -5 years or more 590,425 716,368 - -

1,376,486 1,347,956 123,608 -

The weighted average effective interest rates per annum at the balance sheet date for borrowings excluding hire purchase payables, were as follows:

Group

2008 2007

% %

Bank overdrafts 7.27 7.27Revolving credits 5.50 5.50Term loans 5.22 5.07Guaranteed Fixed Rate Term Loan 7.73 7.73Bai' Bithaman Ajil Islamic Debt Securities ("BaIDS") 6.19 6.19Bai' Bithaman Ajil Facility 8.75 8.75Fixed Rate Serial Bonds 7.23 7.23

(i) The bank overdraft facilities are secured by way of:

(a) certain quoted shares of a subsidiary (Note 18(b)), an associate (Note 19) and other investments (Note 20);(b) certain investment properties (Note 17) of the Group;(c) certain inventories of the Group (Note 24);(d) corporate guarantees from a subsidiary and the Company;(e) a negative pledge over a subsidiary company's present and future fixed and floating assets; and(f) certain deposits with licensed banks and licensed finance companies of the Group (Note 29).

(ii) Revolving credits are secured by way of first legal charge over certain inventories of the Group (Note 24).

(iii) Included in term loans are the following:

(a) RM110 million term loan facility granted by a licensed bank, which is secured by way of:

- pledge under Memorandum of Deposit over certain quoted shares (Note 18(b) and Note 19) of the Company; and

- a first party first fixed charge over leasehold land together with the building erected thereon known as Plaza Perangsang.

P A G E 154



30. BORROWINGS (CONTʼD.)

(iii) Included in term loans are the following (cont’d):

(b) RM170 million term loan facility raised by the subsidiary of the Company from a licensed bank, which is secured by way of:

- deposits with licensed banks amounting to RM2,053,000 as disclosed in Note 29;

- charge on the subsidiary company's Escrow Account and Debt Service Reserve Account;

- third party 1st legal charge over subsidiary company's 13 pieces of land situated at Bandar Bestari Jaya, Batang Berjuntai Kuala Selangor, where registered ownership is Kumpulan Darul Ehsan Berhad;

- assignment of proceeds from the sale of certain lands undertaken by the subsidiaries of the Company;

- debenture charge over the interest held by the subsidiary company in certain of its subsidiaries;

- third party debenture on certain of the subsidiaries' assets and undertaking, both present and future;

- assignment of cash proceeds from the sale of Brisdale International Hotel Sdn. Bhd. by the subsidiary company to Cash Band Berhad;

- assignment of proceeds from the joint venture undertaken by the subsidiaries; and

- corporate Guarantee from the Company of RM250 million.

(c) The other term loans are secured by certain inventories (Note 24) of the Group.

(iv) The Guaranteed Fixed Rate Term Loan and Bai' Bithaman Ajil Facility raised by a subsidiary company are secured by fixed and floating charges over the assets of the subsidiary company.

The Guaranteed Fixed Rate Term Loan and Bai' Bithaman Ajil Facility are repayable in 16 semi-annual installments which commenced in August 2005, 36 months after the first drawdown date.

31. FIXED RATE SERIAL BONDS ("FRSB")

Pursuant to the Trust Deed dated 18 April 2006, Titisan Modal (M) Sdn. Bhd. ("Titisan") had issued FRSB at nominal value of up to RM738 million as follows:

(a) first series on 28 April 2006 giving proceeds of RM8,549,000 and maturing on 28 April 2012 with a redemption value of RM10,000,000 (coupon rate: 4%);

(b) second series on 28 April 2006 giving proceeds of RM37,080,000 and maturing on 28 April 2013 with a redemption value of RM45,000,000 (coupon rate: 4%);

(c) third series on 28 April 2006 giving proceeds of RM71,307,000 and maturing on 28 April 2014 with a redemption value of RM90,000,000 (coupon rate: 4%);

(d) fourth series on 28 April 2006 giving proceeds of RM72,219,000 and maturing on 28 April 2015 with a redemption value of RM95,000,000 (coupon rate: 4%);

(e) fifth series on 28 April 2006 giving proceeds of RM62,135,000 and maturing on 28 April 2016 with a redemption value of RM85,000,000 (coupon rate: 4%);

P A G E 155



31. FIXED RATE SERIAL BONDS ("FRSB") (CONTʼD.)

Pursuant to the Trust Deed dated 18 April 2006, Titisan Modal (M) Sdn. Bhd. ("Titisan") had issued FRSB at nominal value of up to RM738 million as follows (cont’d.):

(f) sixth series on 28 April 2006 giving proceeds of RM63,207,000 and maturing on 28 April 2017 with a redemption value of RM90,000,000 (coupon rate: 4%);

(g) seventh series on 28 April 2006 giving proceeds of RM67,410,000 and maturing on 28 April 2018 with a redemption value of RM100,000,000 (coupon rate: 4%);

(h) eighth series on 28 April 2006 giving proceeds of RM71,170,000 and maturing on 28 April 2019 with a redemption value of RM110,000,000 (coupon rate: 4%);

(i) ninth series on 28 April 2006, maturing on 28 April 2020 with a redemption value of RM83,000,000 (coupon rate: 5%); and

(j) tenth series on 28 April 2006, maturing on 28 April 2021 with a redemption value of RM30,000,000 (coupon rate: 5%).

The FRSB is secured against the following:

(a) first charge by Titisan under a Memorandum of Deposit in favour of the security trustee or its nominees over 10,000,000 paid-up ordinary shares in Konsortium Abass Sdn. Bhd. ("Abass") and 87,500,000 Redeemable Cumulative Preference Shares ("RCPS") in Abass;

(b) first charge by Titisan under a Memorandum of Deposit in favour of the security trustee or its nominees over 100,000 ordinary shares in Rangkai Aman Sdn Bhd ("RA");

(c) assignment by Titisan over dividend entitlement under the ordinary shares and RCPS in Abass in favour of the security trustee. The scope of assignment herein shall exclude the interim dividend of 1543.21% declared by Abass in respect of the RCPS for the financial period ending 31 December 2005 pursuant to the terms and conditions of the following agreements:

(i) Share Sale Agreement (relating to 100% equity interest in RA) between Y. Bhg. Dato' Sulaiman Abu Bakar and Abu Bakar Fikri bin Dato' Sulaiman and Titisan dated 28 October 2005;

(ii) An Agreement for the Sale and Purchase of 25% equity interest in Abass between Chemical Waste Management Sdn. Bhd. and Titisan dated 31 October 2005; and

(iii) Sale and Purchase of Shares in Abass between the Company and Titisan dated 28 October 2005.

(collectively referred to as the "Sale and Purchase Agreements");

(d) assignment by Titisan over dividend entitlement under the ordinary shares in RA in favour of the security trustee;

(e) fixed and floating charge by way of debenture over all the present and future assets, rights and interest and undertakings of Titisan;

(f) first charge in favour of the security trustee over the Revenue Account and the Sinking Fund Account of Titisan;

(g) a contingent rights granted by Titisan in favour of the Security Trustee for the consolidation of Titisan and Abass, subject to consent of applicable authorities;

P A G E 156



31. FIXED RATE SERIAL BONDS ("FRSB") (CONTʼD.)

The FRSB is secured against the following (cont'd.):

(h) assignment of rights of Titisan under the sale and purchase agreement in relation to the 55% direct interest in Abass in favour of the Security Trustee;

(i) assignment of rights of Titisan under the sale and purchase agreement in relation to the 100% direct interest in RA in favour of the Security Trustee; and

(j) assignment of rights of Titisan under the share transfer agreement for the transfer of 45% equity interest in Abass.

The discount on FRSB is recognised in profit and loss as borrowing costs over the tenure of the FRSB's series.

32. BAI' BITHAMAN AJIL ISLAMIC DEBT SECURITIES ("BAIDS")

Pursuant to the Trust Deed dated 17 August 2006, Viable Chip (M) Sdn. Bhd. ("VCSB") had issued RM50 million BaIDS A and RM150 million BaIDS B based on the Islamic financing principle of Murabahah as follows:

(i) The BaIDS A comprised 2 tranches, with total proceeds of RM46,515,753 and maturing on August 2011 and August 2012, with a total redemption value of RM50,000,000. The difference between the proceeds and face value of the BaIDS is recognised as discount on BaIDS; and

(ii) The BaIDS B comprised 2 tranches, with total proceeds of RM134,239,240 and maturing on August 2013 and August 2014, with a total redemption value of RM150,000,000. The difference between the proceeds and face value of the BaIDS is recognised as discount on BaIDS.

The BaIDS A are secured by the Guarantee issued under the Kafalah Facility.

The BaIDS B are secured by the following security arrangements:

(a) charge over the Syarikat Pengeluar Air Selangor Holdings Berhad's ("SPLASH") shares by VCSB;

(b) A first ranking charge over the designated accounts and over the permitted investments out of such accounts including all monies standing to the credit of VCSB;

(c) A first ranking fixed and floating charge by way of debenture over all the present and future assets and undertakings of VCSB; and

(d) Third party charge of the entire issued and paid-up share capital of VCSB by the Company.

The security arrangements from (a) to (d) above for the BaIDS B are shared on a pari passu basis as security for the Kafalah Facility.

P A G E 157



33. HIRE PURCHASE PAYABLES

Group Company

2008 2007 2008 2007


Future minimum lease payments:

Not later than 1 year 835 781 141 141Later than 1 year and not later than 2 years 565 827 141 141Later than 2 years and not later than 5 years 382 743 174 311Later than 5 years - 4 - 4

1,782 2,355 456 597Less: Future finance charges (146) (199) (37) (62)

Present value of hire purchase liabilities 1,636 2,156 419 535

Analysis of present value of finance lease liabilities:

Not later than 1 year 761 753 122 116Later than 1 year and not later than 2 years 527 761 129 122Later than 2 years and not later than 5 years 348 638 168 293Later than 5 years - 4 - 4

1,636 2,156 419 35Less: Due within 12 months (Note 30) (761) (753) (122) (116)

Due after 12 months (Note 30) 875 1,403 297 419

The hire purchase liabilities were charged interest of between 2.50% to 5.25% (2007: 2.85% to 5.25%) per annum.

34. LONG TERM PAYABLES

Group

2008 2007

RMʼ000 RMʼ000

Long term payables 36,547 36,547

The long term payables are unsecured, interest free and are repayable after 12 months.

P A G E 158



35. EMPLOYEE BENEFITS

(a) Retirement benefit obligations

The Company operates a funded, defined benefit retirement scheme, the "Kumpulan Perangsang Selangor Berhad Retirement Scheme" ("the Scheme") for its eligible employees. Contributions to the Scheme are made to a separately administered fund. Under the Scheme, eligible employees are entitled to retirement benefits calculated by reference to their length of service and earnings. Provision for retirement benefits is calculated based on the predetermined rate of basic salaries and length of service of the employees.

During the financial year, the Company replaced its defined benefit plan for eligible employees with a four percent increase in its EPF contribution to all eligible employees with effect from 1 January 2008.

The amounts recognised in the balance sheet are determined as follows:

Group and Company

2008 2007

RMʼ000 RMʼ000

Present value of funded obligations - 4,773Fair value of plan assets - (4,273)

- 500Unrecognised actuarial gain - -Adjustment for limit on net asset - -

- 500

Analysed as:Current - 500

Non-current:Later than 1 year but not later than 2 years - -Later than 2 years but not later than 5 years - -Later than 5 years - -

- 500

P A G E 159



35. EMPLOYEE BENEFITS (CONTʼD.)

(a) Retirement benefit obligations (cont’d.)

The amounts recognised in the income statement are as follows:

Group and Company

2008 2007

RMʼ000 RMʼ000

Current service cost - 881Interest cost 131 255Expected return on plan assets (56) (209)Actuarial gain recognised - (74)Adjustment for limit on net asset - (136)Settlement gain recognised - 462

Total included in employee benefits expense (Note 8) 75 1,179

Movements in the net liability in the current year were as follows:

Group and Company

2008 2007

RMʼ000 RMʼ000

At 1 January 500 -Recognised in income statement (Note 8) 75 1,179Contributions paid (575) (679)

At 31 December - 500

The principal actuarial assumptions used:

Group and Company

2008 2007

% %

Discount rate - 6.00Expected return on plan assets 3.00 3.50Expected rate of salary increases - 5.00

P A G E 160



35. EMPLOYEE BENEFITS (CONT'D.)

(b) Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme ("KPS ESOS")

The Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme ("KPS ESOS") is governed by the amended by-laws approved by the shareholders at an Extraordinary General Meeting held on 15 June 2004. The KPS ESOS was implemented on 30 July 2003 and is for a period of 5 years from the date of implementation, subject however, to an extension at the discretion of the Option Committee for a period up to 5 years commencing from the date of expiration of the original 5 year period. Subsequently, on 16 July 2008, the Option Committee has approved the extension of KPS ESOS Scheme tenure for another 3 years commencing from 29 July 2008 until 29 July 2011.

The salient features of the KPS ESOS are as follows:

(i) The total number of ordinary shares to be issued by the Company under the KPS ESOS shall not exceed 15% of the total issued and paid-up ordinary shares of the Company, such that not more than 50% of the shares available under the KPS ESOS is allocated, in aggregate, to directors and senior management.

(ii) Not more than 10% of the shares available under the KPS ESOS is allocated to any individual director or employee who, either singly or collectively through his/her associates, holds 20% or more in the issued and paid-up capital of the Company.

(iii) Only staff and directors of the Company, Hydrovest Sdn. Bhd, Konsortium Abass Sdn. Bhd., Cash Band (M) Berhad and Perangsang Hotels and Properties Sdn. Bhd. are eligible to participate in the scheme. Executive directors are those involved in the day-to-day management and on the payroll of the Company.

(iv) The options price under the KPS ESOS is the average of the mean market quotation of the shares of the Company as quoted in the Daily Official List issued by Bursa Malaysia Securities Berhad for the five market days preceding the offer date, or the par value of the shares of the Company of RM1, whichever is the higher.

(v) All share options granted are exercisable from the date of grant and have a contractual option term between three to five years.

(vi) Share options granted under the KPS ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank pari passu in all respects with existing ordinary shares of the Company.

P A G E 161




(b) Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme ("KPS ESOS") (cont’d.)

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year:

2008

Number of share options

Expiry Exercise As at As at

Grant date date price 1.1.2008 Granted Terminated Exercised 31.12.2008

RM '000 '000 '000 '000 '000

12 August 2003 29 July 2011 1.62 6,175 - - (2,245) 3,93027 February 2007 29 July 2011 1.00 3,250 - - - 3,25029 March 2007 29 July 2011 1.00 1,733 - - (1,733) -23 July 2007 29 July 2011 1.62 1,269 - - (514) 75526 July 2007 29 July 2011 1.62 437 - - (345) 923 August 2007 29 July 2011 1.98 40 - - (15) 2517 July 2008 29 July 2011 1.93 - 550 - - 55010 November 2008 29 July 2011 1.37 - 200 - - 200

12,904 750 - (4,852) 8,802

WAEP 1.38 1.78 - 1.40 1.41

2007



Grant date date price 1.1.2007 Granted Terminated Exercised 31.12.2007

RM '000 '000 '000 '000 '000

12 August 2003 29 July 2008 1.62 30,060 - (2,785) (21,100) 6,17527 February 2007 29 July 2008 1.00 - 4,250 - (1,000) 3,25029 March 2007 29 July 2008 1.00 - 1,886 (153) - 1,73323 July 2007 29 July 2008 1.62 - 6,342 - (5,073) 1,26926 July 2007 29 July 2008 1.62 - 12,850 (288) (12,125) 4373 August 2007 29 July 2008 1.98 - 150 - (110) 40

30,060 25,478 (3,226) (39,408) 12,904

WAEP 1.62 1.47 1.59 1.61 1.38

P A G E 162




(b) Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme ("KPS ESOS") (cont’d.)

(i) Share options exercised during the year

As disclosed in Note 42, options exercised during the financial year resulted in the issuance of 4,851,600 (2007: 39,408,000) ordinary shares at a weighted average exercise price of RM1.40 (2007: RM1.61) per ordinary shares. The related weighted average share price at the date of exercise was RM2.82 (2007: RM2.91).

(ii) Fair value of share options granted during the year

The fair value of share options granted during the year was estimated by an external valuer using a binomial model, taking into account the terms and conditions upon which the options were granted. The fair value of share options measured at grant date and the assumptions are as follows:

2008 2007

Fair value of share options at the following grant date (RM):27 February 2007 - 0.0429 March 2007 - 0.3023 July 2007 - 0.3526 July 2007 - 0.443 August 2007 - 0.6717 July 2008 0.70 -10 November 2008 0.70 -Weighted average share price (RM) 2.82 2.91Weighted average exercise price (RM) 1.40 1.61Expected volatility (%) 60.00 50.00Expected life (year) 3.00 1.00Risk free rate (%) 3.67 - 3.79 3.40Expected dividend yield (%) 6.30 6.30

The expected life of the share options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of the option grant were incorporated into the measurement of fair value.

(c) Kumpulan Hartanah Selangor Berhad's Employee Share Options Scheme ("KHSB ESOS")

Kumpulan Hartanah Selangor Berhad (KHSB), a subsidiary company, implemented a KHSB ESOS on 21 December 2005 for a period of 5 years. The KHSB ESOS is governed by the by-laws which were approved by the shareholders at the Extraordinary General Meeting on 15 June 2004.

The salient features of the KHSB ESOS are as follows:

(i) The total number of ordinary shares to be issued by the KHSB under the KHSB ESOS shall not exceed 15% of the total issued and paid-up ordinary shares of the Company, such that not more than 50% of the shares available under the KHSB ESOS is allocated, in aggregate, to Directors and senior management.

(ii) Not more than 10% of the shares available under the KHSB ESOS is allocated to any individual Director or employee who, either individually or collectively through his/her associates, holds 20% or more in the issued and paid-up capital of KHSB.

P A G E 163




(c) Kumpulan Hartanah Selangor Berhad's Employee Share Options Scheme ("KHSB ESOS") (cont’d.)

(iii) Any Director (both executive and non-executive Directors) of the KHSB Group (other than a company within the Group which is dormant) or an employee of the KHSB Group who is employed full time and is on the payroll of the KHSB Group (other than a company within the Group which is dormant), but does not include employees under probation, are eligible to participate in the scheme, subject to the final decision of the Options Committee.

(iv) The option price under the KHSB ESOS is the average of the mean market quotation of the shares of KHSB as quoted in the Daily Official List issued by Bursa Malaysia Securities Berhad, for the five market days preceding the offer date, or the par value of the shares of KHSB of RM1, whichever is the higher.

The options granted are exercisable from the date of grant and have a contractual option term of five years.

(v) Options granted under the KHSB ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank pari passu in all respects with existing ordinary shares of KHSB.

The terms of share options outstanding as at the end of the financial year are as follows:

2008



Grant date date price 1.1.2008 Granted Terminated 31.12.2008

RM '000 '000 '000 '000

28.12.05 28.12.10 1.00 38,161 - (76) 38,08505.01.08 28.12.10 1.00 - 2,662 (315) 2,347

38,161 2,662 (391) 40,432

2007



Grant date date price 1.1.2007 Granted Terminated 31.12.2007

RM '000 '000 '000 '000

28.12.05 28.12.10 1.00 59,443 - (21,282) 38,161

Fair value of share options granted during the year

The fair value of share options granted during the year was estimated by an external valuer using a binomial model, taking into account the terms and conditions upon which the options were granted. The fair value of share options measured at grant date and the assumptions are as follows:

2008

Fair value of share options at 5 January 2008 (RM): 0.24Expected volatility (%) 60.00Expected life (years) 2.18Risk free rate of interest (%) 3.58Expected dividend yield (%) -

P A G E 164




(c) Kumpulan Hartanah Selangor Berhad's Employee Share Options Scheme ("KHSB ESOS") (cont’d.)

Fair value of share options granted during the year (cont'd.)

The expected life of the share options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of the option grant were incorporated into the measurement of fair value.

36. DEFERRED MEMBERSHIP INCOME

Group

2008 2007

RMʼ000 RMʼ000

At 1 January 6,488 9,962New memberships obtained during the year 71 107Disposal of subsidiary - (194)Amortisation recognised (2,649) (3,387)

At 31 December 3,910 6,488

Membership fees received are in respect of golfing licence fees and non-golfing membership fees.

37. DEFERRED TAX

Group

2008 2007

RMʼ000 RMʼ000

At 1 January (155,702) (155,864)Recognised in income statement (Note 10) 3,095 162

At 31 December (152,607) (155,702)

Presented after appropriate offsetting as follows:Deferred tax assets 111 107Deferred tax liabilities (152,718) (155,809)

(152,607) (155,702)

P A G E 165



37. DEFERRED TAX (CONTʼD.)

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:

Deferred Tax Liabilities of the Group:

Property,

Development Intangible Plant and

Properties Assets Equipment Others Total

RM'000 RM'000 RM'000 RM'000 RM'000

At 1 January 2008 (29,855) (100,638) (15,269) (10,047) (155,809)Recognised in income statement 1,261 2,836 (1,039) 33 3,091

At 31 December 2008 (28,594) (97,802) (16,308) (10,014) (152,718)

At 1 January 2007 (30,436) (103,474) (13,509) (10,080) (157,499)Recognised in income statement 581 2,836 (1,760) 33 1,690

At 31 December 2007 (29,855) (100,638) (15,269) (10,047) (155,809)

Deferred Tax Assets of the Group:

Property, Unabsorbed

Plant & Capital

Equipment Allowances Provisions Total

RM'000 RM'000 RM'000 RM'000

At 1 January 2008 - - 107 107Recognised in income statement - - 4 4

At 31 December 2008 - - 111 111

At 1 January 2007 552 67 1,016 1,635Recognised in income statement (552) (67) (909) (1,528)

At 31 December 2007 - - 107 107

P A G E 166



37. DEFERRED TAX (CONTʼD.)

Deferred tax assets have not been recognised in respect of the following items:

Group Company

2008 2007 2008 2007


Unutilised tax losses 158,513 110,385 - -Unabsorbed capital allowances 3,300 5,739 907 -Other deductible temporary differences 18,085 17,363 6,634 6,228

179,898 133,487 7,541 6,228

The unutilised tax losses and unabsorbed capital allowances of the Group and of the Company are available for offsetting against future taxable profits subject to no substantial changes in shareholdings under the Income Tax Act, 1967 and guidelines issued by the tax authority.

38. TRADE PAYABLES

Group Company

2008 2007 2008 2007


Restated

Trade payables 200,325 195,012 5,316 5,082Progress billings in respect of

property development costs 87,188 49,904 - -Provision for future costs to complete 134,627 136,827 - -

422,140 381,743 5,316 5,082

The normal trade credit terms granted to the Group range from 30 to 120 days (2007: 30 to 120 days).

P A G E 167



39. OTHER PAYABLES

Group Company

2008 2007 2008 2007


Restated

Accruals 34,812 43,290 2,018 2,709Advances 5,552 7,571 - -Sundry payables 53,565 44,536 246 178

93,929 95,397 2,264 2,887

Included in sundry payables of the Group is the compensation received in respect of the land acquisition made by Keretapi Tanah Melayu Berhad ("KTMB") of RM9,584,496 (2007: RM9,584,496) which have not been finalised and agreed to date. In view of the uncertainties as to the amount of the final compensation, the amount received to date has not been recognised in the income statement.

40. AMOUNTS DUE TO IMMEDIATE HOLDING COMPANY, SUBSIDIARIES, RELATED COMPANIES AND AN ASSOCIATE

Group Company

2008 2007 2008 2007


(a) Amount due to immediate holding company 520 463 - -(b) Amount due to subsidiaries - - 117,334 32,756(c) Amount due to related companies 147 194 44 44(d) Amount due to an associate 1,276 971 - -

1,943 1,628 117,378 32,800

Amount due to immediate holding, related, associate and subsidiary companies are unsecured, interest free and have no fixed terms of repayment.

41. PROVISION

Group

2008 2007

RMʼ000 RMʼ000

At 1 January 14,855 75,619Reversal of provision (Note 5) - (10,285)Utilised during the year (1,329) (5,676)Disposal of subsidiaries (Note 18 (a)) - (44,803)

At 31 December 13,526 14,855

Provision of the Group represents provision for liquidated damages in respect of projects undertaken by certain subsidiaries. The provision is recognised for expected liquidated and ascertained damages claims based on the terms of the applicable sale and purchase agreements.

P A G E 168



42. SHARE CAPITAL

Number of ordinary

shares of RM1 each Amount

2008 2007 2008 2007


Authorised:

At 1 January/31 December 1,000,000 1,000,000 1,000,000 1,000,000

Issued and fully paid:

At 1 January 470,812 431,404 470,812 431,404Ordinary shares issued pursuant to

KPS ESOS (Note 35(b)) 4,852 39,408 4,852 39,408

At 31 December 475,664 470,812 475,664 470,812

During the financial year, the Company increased its issued and paid-up ordinary share capital from RM470,812,160 to RM475,663,760 by way of the issuance of 4,851,600 ordinary shares of RM1 each for cash pursuant to the Company's Employee Share Options Scheme at a weighted average exercise price of RM1.40 per ordinary shares.

The new ordinary share issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company.

43. SHARE PREMIUM

Group Company

2008 2007 2008 2007


At 1 January 31,054 - 31,054 -Issue of ordinary shares pursuant to

exercise of KPS ESOS 1,939 23,853 1,939 23,853Share options exercised under KPS ESOS 1,136 7,201 1,136 7,201

At 31 December 34,129 31,054 34,129 31,054

P A G E 169



44. OTHER RESERVES

Share

General Revaluation Capital options

reserve reserve reserve reserve

Fair value

adjustments

Fair value on

adjustments previously

on an earlier held

piecemeal interest in

acquisition subsidiaries Total

Group RM'000 RM'000 RM'000 RM'000 RM'000

At 1 January 2008 8,000 127,367 30,243 1,310 166,920Share options granted under KPS ESOS- recognised in income statement - - - 196 196Share options granted under KHSB ESOS - - - 353 353Share options exercised under KPS ESOS - - - (1,136) (1,136)

At 31 December 2008 8,000 127,367 30,243 723 166,333

At 1 January 2007 8,000 127,367 41,336 - 176,703Acquisition of additional interest in subsidiaries - - (11,093) - (11,093)Share options granted under KPS ESOS- recognised in income statement - - - 1,612 1,612- included in investment in subsidiaries - - - 6,899 6,899Share options exercised under KPS ESOS - - - (7,201) (7,201)

At 31 December 2007 8,000 127,367 30,243 1,310 166,920

Company

At 1 January 2008 8,000 - - 1,310 9,310Share options granted under KPS ESOS - - - 196 196Share options exercised under KPS ESOS - - - (1,136) (1,136)

At 31 December 2008 8,000 - - 370 8,370

At 1 January 2007 8,000 - - - 8,000Share options granted under KPS ESOS - - - 8,511 8,511Share options exercised under KPS ESOS - - - (7,201) (7,201)

At 31 December 2007 8,000 - - 1,310 9,310

P A G E 170



45. RETAINED EARNINGS

Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividends will be exempted from tax in the hands of the shareholders ("single tier system"). However, there is a transitional period of six years, expiring on 31 December 2013, to allow companies to pay franked dividends to their shareholders under limited circumstances. Companies also have an irrevocable option to disregard the Section 108 of the Income Tax Act, 1967 balance ("S.108 balance") and opt to pay dividends under the single tier system. The change in the tax legislation also provides for the S.108 balance to be locked-in as at 31 December 2007 in accordance with Section 39 of the Finance Act 2007.

The Company did not elect for the irrevocable option to disregard the S.108 balance. Accordingly, during the transitional period, the Company may utilise the credit in the S.108 balance as at 31 December 2008 to distribute cash dividend payments to ordinary shareholdings as defined under the Finance Act 2007. As at 31 December 2008, the Company has tax exempt profits available for distribution of approximately RM69,539,000 (2007: RM69,536,000), subject to the agreement of the Inland Revenue Board. The Company has sufficient tax credit in the S.108 balance and the balance in the tax exempt income account to pay franked dividends amounting to RM242,714,000 (2007: RM235,924,000) out of its retained earnings. If the balance of the retained earnings of RM231,292,000 (2007: RM277,915,000) were to be distributed as dividends, the Company may distribute such dividends under the single tier system.

46. CAPITAL COMMITMENTS

Group Company

2008 2007 2008 2007


Capital expenditureApproved but not contracted for:

Property, plant and equipment: 2,200 1,400 2,200 1,400Purchase of land 7,520 14,140 - -Concession assets 4,600 11,494 - -

14,320 27,034 2,200 1,400

Operating leaseOperating lease rental on the rights to use the ExistingFacilities payable

- not later than one year 3,000 3,000 - -- later than one year and not later than five years 33,000 26,000 - -- later than five years 290,000 300,000 - -

326,000 329,000 - -

340,320 356,034 2,200 1,400

The existing facilities refer to the Sungai Semenyih Water Supply Scheme which consist of the Sungai Semenyih Dam, Intakes, Water Treatment Plant and Water Transfer Facilities ("Existing Facilities").

In consideration for the use of the Existing Facilities, Konsortium Abass Sdn. Bhd., a subsidiary company, shall pay to the Selangor State Government an agreed annual rental fee over the duration of the concession period of 30 years.

P A G E 171



47. CONTINGENT LIABILITIES

Group Company

2008 2007 2008 2007


(i) Secured:

(a) Guarantees to secure banking andother credit facilities of an associateamounting to RM19,700,000(2007: RM19,700,000) 5,860 5,860 5,860 5,860

(b) Foreclosure proceedings taken by a financialinstitution in respect of a third party chargegranted by subsidiary on a piece of land 35,857 32,515 - -

(ii) Unsecured:

Performance guarantees to third parties 415 413 415 413Guarantees issued to banks for end financing

loans given to house buyers (Note c) - 5,447 - -Other claims filed against the Group 18,338 21,060 - -

(c) In consideration of a bank extending end-financing loan to certain house buyers of certain subsidiary companies, these subsidiary companies in turn agreed to indemnify the said bank in the event the purchasers fail to make repayment of all sums due under the Loan Agreements. Consequently, the subsidiary companies are contingently liable to the extent of the principle balance due to the said bank.

(iii) A third party has filed an action alleging that a subsidiary’s termination of the joint venture agreement and the agreements ancillary thereto (“JVA”) due to the third party’s breach of four (4) fundamental conditions of the JVA was wrongful and claimed for the transfer of the ownership of the said land to the third party, damages to be assessed and the loss of profits of approximately RM350 million. The subsidiary has filed its defence and made a counter claim against the third party for the said four (4) fundamental breaches of the JVA by the third party and claiming amongst others, for the return of vacant possession of the said land, damages in the sum totalling to approximately RM399 million and an indemnity against all claims in the foreclosure proceedings as stated in Note 47(i)(b) above. A third party has filed an application to set aside the Ad-Interim injunction obtained in favour of the subsidiary. The hearing of the cases for all interlocutory application will be fixed by the court accordingly.

The directors are of the view that the likelihood of the crystallisation of liabilities arising from the above claims are remote and therefore no provisions have been made in the financial statements.

P A G E 172



48. SIGNIFICANT RELATED PARTY DISCLOSURES

(a) In addition to related party disclosures mentioned elsewhere in the financial statements, the Group and the Company hadthe following transactions with related parties during the financial year:

2008 2007


Advances to immediate holding company:- Kumpulan Darul Ehsan Berhad - 20,000

Management fees paid to immediate holding company:- Kumpulan Darul Ehsan Berhad 1,700 1,700

Purchase of goods from an associated company- Chemindus Sdn. Bhd. 4,577 -

Management fees charged to immediate holding company:- Kumpulan Darul Ehsan Berhad 24 24

Construction cost incurred with Cekal Tulin Development Sdn. Bhd. 38,968 34,178Interest charged to immediate holding company

- Kumpulan Darul Ehsan Berhad 243 -

Company

Rental income

(i) Subsidiaries- Kumpulan Hartanah Selangor Berhad 594 549- Perangsang Hotel and Properties Sdn. Bhd. 658 656- Hydrovest Sdn. Bhd. 62 60- Konsortium Abass Sdn. Bhd. 191 186

Management fees received

(i) Immediate holding company- Kumpulan Darul Ehsan Berhad 24 24

(ii) Subsidiaries- Perangsang Hotel and Properties Sdn. Bhd. 24 24- Hydrovest Sdn. Bhd. 24 24- SAP Holdings Berhad 12 12- Central Spectrum (M) Sdn. Bhd. 12 12- Konsortium Abass Sdn. Bhd. 180 180

P A G E 173



48. SIGNIFICANT RELATED PARTY DISCLOSURES (CONTʼD.)

(a) In addition to related party disclosures mentioned elsewhere in the financial statements, the Group and the Company had the following transactions with related parties during the financial year (cont'd.):

2008 2007

Company (contʼd.) RMʼ000 RMʼ000

Interest income received(i) Loan to subsidiaries

- Hydrovest Sdn. Bhd. - 26

(ii) Fixed Rate Serial Bonds- Titisan Modal (M) Sdn. Bhd. 149 149

Management fees paid to immediate holding company- Kumpulan Darul Ehsan Berhad 1,024 1,024

Interest expenses paid to subsidiary company- Perangsang Hotel and Properties Sdn. Bhd. 8 -- Brisdale International Hotel Sdn. Bhd. 3 -- Titisan Modal (M) Sdn. Bhd. 7 -

Dividend income(i) Subsidiaries

- Selangor Amal Holdings Sdn. Bhd. - 841- Viable Chip (M) Sdn. Bhd. 31,815 -

(ii) Associates- Taliworks Corporation Berhad 7,017 6,648- Perangsang Water Management Sdn. Bhd. 1,520 -

Waiver of interest charged to a subsidiary- Kumpulan Hartanah Selangor Berhad - 5,247

(b) Compensation of key management personnel

The remuneration of directors and other members of key management during the year was as follows:

Group Company

2008 2007 2008 2007


Salaries, wages and bonuses 6,186 4,543 1,263 1,054Fees 1,282 1,227 342 507Defined contribution plan 794 548 215 155Retirement benefit obligations - 317 - 317Other employee benefits 652 757 411 432Share options granted under KPS ESOS 196 1,427 196 690

9,110 8,819 2,427 3,155

P A G E 174



48. SIGNIFICANT RELATED PARTY DISCLOSURES (CONTʼD.)

(b) Compensation of key management personnel (cont’d.)

Included in the total key management personnel are:

Group Company

2008 2007 2008 2007


Directors' remuneration (Note 9) 4,874 3,764 1,944 1,537

Directors of the Group and the Company and other members of key management have been granted the following number of options under the Kumpulan Perangsang Selangor Berhad's Employee Share Options Scheme ("KPS ESOS"):

Group Company

2008 2007 2008 2007


At 1 January 28,212 30,429 5,983 7,600Granted 1,377 6,878 750 5,983Exercised (1,454) (9,095) (1,054) (7,600)

At 31 December 28,135 28,212 5,679 5,983

The share options were granted on the same terms and conditions as those offered to other employees of the Group.

49. SIGNIFICANT EVENTS

(a) On 3 January 2008, the Company subscribed for 39,851,000 ordinary shares of RM1.00 each in JAKS Resources Berhad ("JRB") representing the full placement shares of 10% of the existing issued and paid up capital of JRB.

The placement shares were subscribed at a consideration of RM1.21 per placement share, which represents a discount of approximately 7.5% based on the 5-day weighted average market price of JRB's ordinary shares of RM1.00 each up to 31 December 2007 of RM1.31.

On 12 December 2008, the Company purchased additional 10 million units of JRB shares for a total consideration of RM5,008,700.

(b) On 19 June 2008, the Company entered into a conditional share sale cum debt settlement agreement with Cash Band (M) Berhad ("CBB"), Brisdale International Hotel Sdn. Bhd. ("BIH") and Kumpulan Hartanah Selangor Berhad ("KHSB") for the purpose of the following:-

(i) proposed acquisition of the entire issued and paid-up share capital of BIH, comprising 5,000,000 ordinary shares of RM1.00 each by CBB from KHSB for a cash consideration of RM10,000,000; and

(ii) proposed assumption by CBB of the debt owing by BIH to KHSB of RM43,000,000 and the settlement of the said amount by CBB via the transfer of a 99-year leasehold located in Bernam Jaya, Mukim of Kuala Kalumpang, District of Hulu Selangor, Selangor at the value of RM24,000,000, which represents a discount of approximately 7.69% to the market value of the Ulu Bernam Land, with the remaining RM19,000,000 to be satisfied in cash.

(Item (i) and (ii) are to be collectively referred to as Proposed Acquisition Cum Debt Settlement)

The Proposed Acquisition Cum Debt Settlement was duly completed on 26 September 2008.

P A G E 175



49. SIGNIFICANT EVENTS (CONTʼD.)

(c) On 24 September 2008, the Company entered into a conditional share sale agreement ("Conditional SSA") with its immediate holding company, Kumpulan Darul Ehsan Berhad ("KDEB") for the proposed acquisition of 15% equity interest in Syarikat Bekalan Air Selangor Sdn. Bhd. ("SYABAS"), comprising 750,000 ordinary shares ("Sale Shares") for a cash consideration of RM200,000,000. ("Proposed SYABAS Acquisition")

Subject to the fulfilment of the conditions precedent set out in the Conditional SSA and the completion of the sale and purchase of the Sale Shares, KDEB grant the Company the right to sell the Sale Shares to KDEB within the Put Option Period (as defined hereunder). The Put Option may be exerciseable by the Company in respect of all and not part of the Option Shares within 7 days prior to the expiry of 18 months from the Completion Date which is on 30 December 2008 ("Put Option Period").

In conjunction with the Proposed SYABAS Acquisition, KDEB shall give the Company the first right of refusal to be the project manager for the operation and maintenance of the treatment and supply of water in the state of Selangor and Federal Territories of Kuala Lumpur and Putrajaya, including the proposed Langat 2 Water Supply Scheme ("O&M Project"), which right shall only be exercisable within 14 days from the receipt of written confirmation from KDEB of the finalisation of the the O&M Project, subject always to the completion of the Proposed SYABAS Acquisition.

The Proposed SYABAS Acquisition was duly completed on 30 December 2008.

(d) Significant sales during the year

(i) Sale of land to Inai Kiara Sdn. Bhd. ("IKSB")

On 17 July 2008, a subsidiary of the Company, Central Spectrum (M) Sdn. Bhd. had entered into a Sale & Purchase Agreement ("SPA") with IKSB to sell the industrial lot, on part of PN7942, Lot No.74082, Section 11, Pulau Indah measuring approximately 125.54 acres for a total consideration of RM30,076,000.

The SPA is conditional upon IKSB obtaining the approval of the Foreign Investment Committee of the Prime Minister’s Department (“FIC”). The approval from FIC was obtained during the year.

(ii) Sale of land to PMB Carbon Sdn. Bhd. ("PCSB")

On 26 September 2008, a subsidiary of the Company, Central Spectrum (M) Sdn. Bhd. had entered into a Sale & Purchase Agreement ("SPA") with PCSB to sell the industrial lot, on part of PT 90870, Lot No. 6 and 7, Section 1, Pulau Indah measuring approximately 39.86 acres for a total consideration of RM13,890,000.

(iii) Sale of land to Sepang Goldcoast Sdn. Bhd. ("SGSB")

On 6 October 2008, the Company had entered into a Sales and Purchase Agreement ("SPA") with SBSB to sell a piece of land held under PN 11298, Lot 5722 in Mukim Sepang, Daerah Sepang, Negeri Selangor Darul Ehsan measuring 22.75 acres for a total consideration of RM5,800,000.

The SPA is conditional upon the Company obtaining the consent to transfer within six months from the date of submitting the relevant consent forms to State Authority.

(iv) Sale of land to Sookah Plantation Sdn. Bhd. ("SPSB")

On 7 October 2008, SAP Holdings Berhad ("SAP"), a subsidiary of the Company had entered into a Sales and Purchase Agreement ("SPA") with SPSB to sell a piece of land held under PN 50588, Lot No. 15790 in Mukim Ulu Yam, Daerah Ulu Selangor, Negeri Selangor Darul Ehsan measuring 280.68 acres for a total consideration of RM7,578,000.

The SPA is conditional upon SAP obtaining the certificate of approval of transfer, conveyance or disposal of estate land from Estate Land Board.

P A G E 176



50. SUBSEQUENT EVENT

Konsortium Abass Sdn Bhd ("Abass"), a wholly owned subsidiary of Titisan Modal (M) Sdn Bhd ("TMSB"), which is in turn held 55% by the Company had received the Letter of Offer dated 13 February 2009 from the Selangor State Government in respect of the taking over of the water assets and operations of Abass for RM525,666,000 ("Offer").

The offer price is based on the valuation of the water assets of Abass (using Capitalised Value) as at 31 December 2007. The offer price is based on cash value and payment to be made by taking over all water assets and operations without any liabilities to be assumed by the Selangor State Government.

On 20 February 2009, Abass has replied to the Selangor State Government on the Offer that its Board of Directors and the Board of Directors of the TMSB are unable to accept the Offer.

Abass has requested to negotiate with the Selangor State Government on a revised offer, on a willing buyer-willing seller basis, after taking into consideration all stakeholders' interest.

The Company is 60% owned by Kumpulan Darul Ehsan Berhad (“KDEB”) which in turn is controlled by the Selangor State Government via Menteri Besar Incorporated. Accordingly, KDEB/the Company’s nominated directors in TMSB and Abass respectively have abstained from deliberation and making decision in respect of the Offer in view of the Selangor State Government’s interest in KDEB.

51. COMPARATIVES

The presentation and classification of items in the current year financial statements have been consistent with the previous financial year except that certain comparative amounts have been reclassified to conform with the current year's presentation:

As previously As

stated Reclassification restated

RM'000 RM'000 RM'000

Balance sheet

Trade payables 337,238 15,525 352,763Other payables 78,568 (15,525) 63,043

52. FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policies

The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group’s businesses whilst managing its foreign exchange risks, liquidity risk, interest rate risks and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. It is, and has been throughout the year under review, the Group’s policy that no trading in derivative financial instruments shall be undertaken.

(b) Foreign exchange risk

The Group is exposed to transactional currency risk primarily through sales and purchases that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to the risk are primarily United States Dollar (USD) and Pound Sterling (£). Foreign exchange exposures in transactional currencies other than functional currencies of the operating activities are kept to an acceptable level.

P A G E 177



52. FINANCIAL INSTRUMENTS (CONTʼD.)

(c) Liquidity risk

The Group manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that refinancing, repayment and funding needs are met. As part of its overall liquidity management, the Group maintains sufficient levels of cash to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities at a reasonable level to its overall debt position. As far as possible, the Group raises committed funding from both capital markets and financial institutions and balances its portfolio with some short term funding so as to achieve overall cost effectiveness.

(d) Interest rate risk

The Group's income and operating cash flows are substantially independent of changes in market interest rates. Interest rate exposures arise from the Group's borrowings and deposit.

The Group's interest rate risk arises primarily from interest-bearing borrowings. The Group manages its interest rate exposure by maintaining a fixed rate borrowings.

It is the Group's policy not to trade in interest rate swap agreements.

The following tables set out the carrying amounts, the weighted average effective interest rates (WAEIR) as at the balance sheet date and the remaining maturities of the Group’s financial instruments are as follows:

More

Note WAEIR Within 1 1-2 2-3 3-4 4-5 than

% Year Years Years Years Years 5 Years Total

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RMʼ000

At 31 December 2008

Group

Fixed rate

Guaranteed Fixed RateTerm Loan 30 7.73 28,000 28,000 28,000 28,000 15,000 - 127,000

Bai' Bithaman Ajil Facility 30 8.75 28,000 28,000 28,000 28,000 5,000 - 117,000Bai' Bithaman Ajil IslamicDebts Securities ("BaIDS") 30 6.19 - - 19,344 28,590 70,190 68,761 186,885Fixed Rate Serial Bonds 30 7.23 - - - 10,000 45,000 521,664 576,664

P A G E 178



52. FINANCIAL INSTRUMENTS (CONTʼD.

(d) Interest rate risk (contʼd.)

More

Note WAEIR Within 1 1-2 2-3 3-4 4-5 than

% Year Years Years Years Years 5 Years Total

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RMʼ000

At 31 December 2007

Group (cont'd.)

Fixed rate

Guaranteed Fixed RateTerm Loan 30 7.73 28,000 28,000 28,000 28,000 28,000 15,000 155,000

Bai' Bithaman Ajil Facility 30 8.75 28,000 28,000 28,000 28,000 28,000 5,000 145,000Bai' Bithaman Ajil IslamicDebts Securities ("BaIDS") 30 6.19 - - - 19,104 28,217 136,916 184,237Fixed Rate Serial Bonds 30 7.23 - - - - 10,000 549,452 559,45

(e) Credit risk

Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and monitoring procedures. Credit risks are minimised and monitored via strictly limiting the Group’s associations to business partners with high creditworthiness. Trade receivables are monitored on an ongoing basis via Group management reporting procedures.

The Group and the Company's credit risk exposure is disclosed in Notes 23, Note 26 and Note 27.

(f) Fair value

The carrying amounts of financial assets and liabilities of the Group and the Company at the balance sheet date approximated their fair values except for the following:

Group Company

Carrying Carrying

Note Amount Fair Value Amount Fair Value


Financial Assets

At 31 December 2008

Long term receivables 23 34,097 31,572 - -

At 31 December 2007

Long term receivables 23 105,752 97,919 - -

P A G E 179



52. FINANCIAL INSTRUMENTS (CONTʼD.)

(f) Fair value (contʼd.)

Group Company

Carrying Carrying

Note Amount Fair Value Amount Fair Value


Financial Liabilities

At 31 December 2008

Long term payables 34 36,547 33,746 - -

At 31 December 2007

Long term payables 34 36,547 33,746 - -

In assessing the fair value of financial instruments, the Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. The fair value of publicly traded securities is based on quoted market prices at the balance sheet date. Quoted market prices of specific or similar instruments are used for long term debt. The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the current market interest rate available to the Group for similar financial instruments.

The face values of financial assets and liabilities with a maturity period of less than one year are assumed to reflect their fair values.

53. SEGMENTAL INFORMATION

The primary segment reporting format is determined to be business segments as the Group's risks and rates of return are affected predominantly by differences in the products and services produced. The Group do not have a secondary reporting format as the Group operates only in Malaysia.

Segment revenues and expenses are those directly attributable to the segments and include any joint revenue and expenses where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist principally of property, plant and equipment, net of accumulated depreciation, land held for property development, property development costs, receivables, inventories and deposits, cash and bank balances.

Segment assets and liabilities do not include income tax assets and liabilities.

The Group is organised into six main business segments:

• Investment holding• Property development and management• Infrastructure and utilities• Trading• Hospitality• Golf club and recreation facilities

Other operations of the Group mainly comprise management and consultancy services which is not of a sufficient size to be reported separately.

P A G E 180



53. SEGMENTAL INFORMATION (CONTʼD.)

Property Golf club

development and

Investment and Infrastructure recreational

holding management and utilities Trading Hospitality facilities Others Consolidated

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

2008

Revenue

External revenue 5,745 92,358 136,065 33,271 30,176 8,187 25 305,827

Operating (loss)/profit (14,087) (26,561) 86,746 1,351 2,033 387 (5) 49,864Share of profit of

associates 56,279Share of profit of a

joint venture 546Finance costs (106,277)

Profit before tax andzakat 412

Income tax and zakat (11,437)

Loss after tax and zakat (11,025)Minority interest 12,734

Profit for the year attributableto equity holders of theCompany 1,709

Segment assets 449,893 1,084,882 971,179 21,942 20,492 178,915 9,654 2,736,957

Investment in associates 434,446Unallocated assets 3,835

Total assets 3,175,238

Segment liabilities (7,624) (513,694) (25,623) (10,163) (7,983) (6,903) (4) (571,994)

Unallocated liabilities (1,550,683)

Total liabilities (2,122,677)

Capital expenditure 753 512 1,051 287 3,660 117 - 6,380Depreciation and

amortisation 4,047 1,194 1,371 219 4,458 1,761 - 13,050

P A G E 181



53. Segmental information (contʼd.)

Property Golf club

development and

Investment and Infrastructure recreational

holding management and utilities Trading Hospitality facilities Others Consolidated

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

2007

Revenue

External revenue 5,552 218,961 134,141 27,088 30,172 8,664 1,024 425,602

Operating profit/(loss) 13,039 32,821 91,491 1,632 (1,864) (1,470) (5) 135,644Share of profit of

associates 29,083Share of profit of a

joint venture 6,521Finance costs (109,943)

Profit before tax andzakat 61,305

Income tax and zakat (25,245)

Profit after tax and zakat 36,060Minority interest (4,062)

Profit for the year attributableto equity holders of theCompany 31,998

Segment assets 280,668 1,090,951 1,011,588 17,443 120,010 89,016 9,647 2,619,323

Investment in associates 498,260Unallocated assets 12,656

Total assets 3,130,239

Segment liabilities (8,512) (415,766) (37,719) (6,621) (56,967) (11,562) (11) (537,158)

Unallocated liabilities (1,520,917)

Total liabilities (2,058,075)

Capital expenditure 469 671 1,395 289 2,531 3,239 - 8,594Depreciation and

amortisation 4,014 1,451 1,589 167 3,927 1,809 - 12,957

P A G E 182



P A G E 183

Analysis of Shareholdings As At 30 April 2009

Analisa Pegangan Saham Pada 30 April 2009

A. Authorised share capitalModal saham dibenar : RM1,000,000,000.00

Issued and paid-up share capitalModal saham diterbitkan dan dibayar : RM475,663,760

Class of shares : Ordinary shares of RM1.00 eachKelas saham : Saham biasa RM1.00 sesaham

B. ANALYSIS BY SIZE OF SHAREHOLDINGSANALISA MENURUT SAIZ PEGANGAN

SIZE OF NO. OF % OF NO. OF % OFSHAREHOLDINGS SHAREHOLDERS SHAREHOLDERS SHARES HELD SHAREHOLDINGS

SAIZ BILANGAN % PEMEGANG BILANGAN SAHAM % PEGANGANPEGANGAN PEMEGANG SAHAM SAHAM YANG DIPEGANG

Less than 100 / Kurang dari 100 461 7.55 29,027 0.01100-1,000 2,736 44.79 1,724,595 0.361,001-10,000 2,209 36.16 9,477,853 1.9910,001-100,000 563 9.22 18,062,813 3.80100,001 to less than 5% /100,001 ke kurang dari 5% 136 2.23 93,316,184 19.625% and above / 5% dan ke atas 3 0.05 353,053,288 74.22

TOTAL / JUMLAH 6,108 100.00 475,663,760 100.00

C. LIST OF SUBSTANTIAL SHAREHOLDERS (5% AND ABOVE)SENARAI PEMEGANG SAHAM UTAMA (5% DAN KE ATAS)

NO. NAME / NAMA SHAREHOLDINGS % PEGANGAN SAHAM

1. Kumpulan Darul Ehsan Berhad 288,807,494 60.722. Amanah Raya Nominees (Tempatan) Sdn Bhd

A/C for Skim Amanah Saham Bumiputera 36,690,400 7.713. Perbadanan Kemajuan Negeri Selangor 27,555,394 5.79


P A G E 184

D. LIST OF THIRTY (30) LARGEST SHAREHOLDERS

SENARAI TIGA PULUH (30) PEMEGANG SAHAM TERBESAR

NO. NAME / NAMA SHAREHOLDINGS %

PEGANGAN SAHAM

1. AMSEC Nominees (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 180,000,000 37.84

2. AMMB Nominees (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 53,000,000 11.14

3. ABB Nominee (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 52,000,000 10.93

4. Amanah Raya Nominees (Tempatan) Sdn BhdA/C Skim Amanah Saham Bumiputera 36,690,400 7.71

5. Perbadanan Kemajuan Negeri Selangor 27,504,994 5.78

6. AllianceGroup Nominees (Tempatan) Sdn BhdA/C Noor Azman @ Noor Hizam bin Muhd Nurdin (8037673) 5,477,200 1.15

7. Tabung Warisan Negeri Selangor 5,000,000 1.05

8. Universal Trustee (Malaysia) BerhadA/C CIMB-Principal Small Cap Fund 2 4,200,000 0.88

9. RHB Capital Nominees (Tempatan) Sdn BhdA/C Noor Azman @ Noor Hizam b Mohd Nurdin (CEB) 4,009,600 0.84

10. Amanah Raya Nominees (Tempatan) Sdn BhdA/C Public Islamic Balanced Fund 3,927,800 0.83

11. CIMB Nominees (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 3,304,700 0.69

12. Amanah Raya Nominees (Tempatan) Sdn BhdA/C Public Enhanced Bond Fund 3,081,300 0.65

13. ECML Nominees (Asing) Sdn BhdA/C United Forest Limited 3,000,000 0.63

14. RHB Capital Nominees (Tempatan) Sdn BhdA/C Nor Hayati binti Abd. Malik (1181002) 2,946,900 0.62

15. Amanah Raya Nominees (Tempatan) Sdn BhdA/C Public Index Fund 2,814,600 0.59

16. RHB Capital Nominees (Tempatan) Sdn BhdA/C Norazlan bin Mohamad Nordin (CEB) 2,775,900 0.58

17. Universal Trustee (Malaysia) BerhadA/C CIMB-Islamic Small Cap Fund 2,550,000 0.54

18. Lebar Daun Construction Sdn Bhd 2,406,500 0.51

19. AllianceGroup Nominees (Tempatan) Sdn BhdA/C Norazmi bin Mohamed Nurdin (8038654) 2,326,000 0.49

20. Amanah Raya Nominees (Tempatan) Sdn BhdA/C Public Far-East Dividend Fund 2,030,100 0.43




P A G E 185

D. LIST OF THIRTY (30) LARGEST SHAREHOLDERS

SENARAI TIGA PULUH (30) PEMEGANG SAHAM TERBESAR

NO. NAME / NAMA SHAREHOLDINGS %

PEGANGAN SAHAM

21. HSBC Nominees (Asing) Sdn BhdA/C Credit Suisse (SG BR-TST-Asing) 2,012,300 0.42

22. Mayban Nominees (Tempatan) Sdn BhdA/C Etiqa Insurance Berhad (Life Par Fund) 1,800,000 0.38

23. Amanah Raya Nominees (Tempatan) Sdn BhdA/C Public Islamic Optimal Growth Fund 1,775,000 0.37

24. Juma'ah binti Moktar 1,741,000 0.37

25. AIBB Nominees (Tempatan) Sdn BhdA/C Rampai Baiduri-Jaya Sdn Bhd (Vibrant Omega) 1,734,237 0.36

26. AMSEC Nominees (Tempatan) Sdn BhdA/C CIMB Islamic Dali Equity Growth Fund (UT-CIMB-Dali) 1,042,000 0.22

27. Mal Monte Sdn Bhd 1,010,000 0.21

28. Dato’ Haji Abd Karim bin Munisar 1,000,000 0.21

29. Sultan Idris Shah 990,000 0.21

30. Zabir bin Bajuri 920,000 0.19

E. LIST OF DIRECTOR'S SHAREHOLDINGSSENARAI PEGANGAN SAHAM PARA PENGARAH

NO. NAME / NAMA SHAREHOLDINGS % PEGANGAN SAHAM

1. Dato' Haji Abd Karim bin Munisar 1,000,000 0.212. Dato' Haji Azlan bin Hashim 370,000 0.083. Dato' Haji Ab Halim bin Mohyiddin 339,999 0.074. Wong Yien Kim - -5. Tuan Haji Zain Azahari bin Zainal Abidin - -




1. KUMPULAN PERANGSANG SELANGOR BERHAD

Net Book Value/

Land Cost as at

Tenure/Lease expiry 31/12/08 (RM'000) Approximate

Land Area Tempoh Pegangan/ Existing Use Nilai Buku Bersih/ Age of Building

Location Title Keluasan Tanah Tamat Pegangan Kegunaan Kos Tanah pada Usia Bangunan

Lokasi Hakmilik (Ekar/Acres) (Tahun/Years) Semasa 31/12/08 (RM'000) (Tahun/Years)

Bandar Banting H.S(D) 8187/PT 7980 2.6 Leasehold/Pajakan Factory being rented out 3,047 20

Tambahan 99 /2099 Kilang disewakan

Kuala Langat

Hulu Kelang, H.S(M) 2615/PT 7680 40,530 SQ FT/KP Leasehold/Pajakan Factory being rented out 1,762 25

Gombak 99/2086 Kilang disewakan

Batang Kali, LOT 3277 1,763 SQ FT/KP Freehold Apartmen/Apartment 166 24

Hulu Selangor UNDER GRANT 24222 Pegangan Bebas/

PH 22/B6

Shah Alam, H.S(D)92260/PT 0006 108,360 SQ FT/KP Leasehold/Pajakan Office & Hotel 71,688 21

Selangor 99/2086 Pejabat & Hotel

Tanjong Tuan, LOT 5627 1,099 SQ FT/KP Leasehold/Pajakan Apartment/Apartmen 208 23

Port Dickson 99/2081

2. KUMPULAN HARTANAH SELANGOR BERHAD GROUP

Mukim Batu PT 28955-28958, 0.30 Leasehold/Pajakan 2 units of 3 storey office) 5,350 16

Daerah Gombak 28953-28954 99 / 2091 4 units (3 1/2 storey office &

Mukim Rawang Lot 609 (Part) 1.52 Leasehold/Pajakan Building Land 41 N/A

Daerah Gombak 99 / 2094 Tanah Untuk Bangunan

Mukim Rawang PT 686 3.56 Leasehold/Pajakan Building Land 2,754 N/A


Mukim Batu PT 14406 26.62 Leasehold/Pajakan Building Land 519 N/A


P A G E 186

list of group propertiessenarai hartanah kumpulan


2. KUMPULAN HARTANAH SELANGOR BERHAD GROUP (CONTINUED/SAMBUNGAN)

Net Book Value/

Land Cost as at


Land Area Tempoh Pegangan/ Semasa Kos Tanah pada Age of Building

Location Title Keluasan Tanah Tamat Pegangan Kegunaan Nilai Buku Bersih/ Usia Bangunan

Lokasi Hakmilik (Ekar/Acres) (Tahun/Years) Existing Use 31/12/08 (RM'000) (Tahun/Years)

Mukim Kundang Lot 22527 (Part) 233.00 Leasehold Agriculture Land 569 N/A

Daerah Gombak 99 / 2103 Tanah Pertanian

Mukim Labu Lot 1384-1465 & 3.50 Leasehold/Pajakan Commercial Land 4,667 N/A

Daerah Sepang Lot 1466-1468 99 / 2096 Tanah Komersial

Mukim Labu Lot 1490 2.15 Leasehold/Pajakan Building Land 3,114 N/A

Daerah Sepang 99 / 2096 Tanah Untuk Bangunan

Mukim Serendah PT 10450 (Part) 122.00 Leasehold/Pajakan Building Land 16,785 N/A

Daerah Hulu Selangor 99 / 2096 Tanah Untuk Bangunan

Mukim Hulu Yam PT 2721-2723 302.49 Leasehold/Pajakan Agriculture Land 6,005 N/A

Daerah Hulu Selangor 99 / 2093 Tanah Pertanian

Mukim Hulu Yam PT 2727,2728 & 2731 212.50 Leasehold/Pajakan Building Land 5,700 N/A

Daerah Ulu Selangor 99 / 2093 Tanah Untuk Bangunan

Mukim Ijok PT 2377 & 2531 0.58 Leasehold/Pajakan Building Land 412 N/A

Daerah Kuala Selangor 99 / 2095 Tanah Untuk Bangunan

Mukim Kuala Selangor PT 293 - PT 312, 11.27 Leasehold/Pajakan Building Land 1,891 N/A

Daerah Kuala Selangor PT 339, PT 378 99 / 2098 Tanah Untuk Bangunan

PT 379 - PT 479, PT 620,

PT 621, PT 624, PT 626

Mukim Klang PT 51675, PT 51676, 46.48 Pajakan/Leasehold Building Land 54,005 N/A

Daerah Klang PT 51679, PT 52159, 99 / 2102 Industry Land

PT 52409, PT 52540, Tanah Untuk Bangunan

PT 52807, PT 52963, Tanah Industri

PT 53039, PT 53051,

PT 52162, PT 52214,

PT 52226, PT 52232,

PT 52233, PT 52246,

PT 52306, PT 52313,

PT 52330, PT 52337,

PT 53158, PT 52805

P A G E 187



P A G E 188


Net Book Value/

Land Cost as at





Bandar Port Dickson PN 2477 / M2/2/148 & 0.05 Leasehold/Pajakan Apartment 454 20

Daerah Port Dickson PN 2477 / M1/1/8/89 99 / 2087 Apartmen

Mukim Plentong PT 171000-171002 332.69 Freehold Agriculture Land 48,883 N/A

Daerah Johor Bharu Pegangan Bebas Tanah Pertanian

Mukim Dengkil PT 32546 - 32543 (Part) 100.00 Leasehold/Pajakan Agriculture Land 1,342 N/A

Daerah Sepang - 32544 (PT) 99 / 2104 Tanah Pertanian

Mukim Dengkil PT 32611 - 32614 46.63 Leasehold/Pajakan Building Land 626 N/A

Daerah Sepang 99 / 2104 Tanah Untuk Bangunan

Mukim Kuala Kelumpang PT 2687 (Part) 191 Leasehold/Pajakan Building Land 24,000 N/A

Daerah Hulu Selangor 99 / 2107 Tanah Untuk Bangunan

Phase 1A, Section 8 PT 64352 HS(D)67630 1.38 Leasehold/Pajakan Vacant Commercial Land 226 N/A

Pulau Indah PT 64165 HS(D)67448 99/2097 for Menara Indah Point

Industrial Park Tanah Kosong Komersial

Pulau Indah untuk Menara Indah Point

Phase 2C, Section 4 PT 7937 HS(D)74076 411.77 Leasehold/Pajakan Vacant Industrial Land For 56,733 N/A

Pulau Indah PT 7936 HS(D)74077 99/2097 Development

Industrial Park Tanah Industri Kosong untuk

Pulau Indah Pembangunan

Section 1, PT90870 HS (D)70913 35.70 Leasehold/Pajakan Vacant Industrial Land For 24,668 N/A

Pulau Indah PT90871 HS(D)70914 216.07 99/2097 Development



Section 2 PN 7935 HS(D)74078 281.14 Leasehold/Pajakan Vacant Industrial Land For 79,380 N/A

Pulau Indah PN7934 HS(D)74079 295.51 99/2097 Development



Section 3 PN 7931 Lot 74083 217.35 Leasehold/Pajakan Vacant Industrial Land For 29,924 N/A

Pulau Indah 99/2097 Development





P A G E 189


Net Book Value/

Land Cost as at





Section 9 PN 7928 Lot 74086 32.66 Leasehold/Pajakan Vacant Industrial Land For 30,776 N/A

Pulau Indah PN 7929 Lot 74085 85.14 99/2097 Development

Industrial Park PN 7930 Lot 74084 105.77 Tanah Industri Kosong untuk


Section 11 PN7942 Lot 74082 151.54 Leasehold/Pajakan Vacant Land For 105,031 N/A

Pulau Indah PN7926 Lot 74087 218.85 99/2097 Development (Residential)

Industrial Park PN7925 Lot 74988 380.52 Tanah Kosong untuk

Pulau Indah Pembangunan ( Perumahan)

3. HYDROVEST SDN. BHD. GROUP

Sg Buluh Lot PT 19975 3,000 kp/sq. ft 98 / 2091 Warehouse / Store 328 17

Daerah Kuala Selangor Gudang / Stor

Damansara Intan Lot 827 1,130 kp/sq. ft Freehold Office 236 9

Petaling Jaya Pegangan bebas Pejabat

Lot 836 1,249 kp/sq. ft Freehold Office 247 6

Pegangan bebas Pejabat

4. TITISAN MODAL (M) SDN BHD GROUP

8822, Tanjung Tuan, GM 0000180/LOT 001202 10,593 k.p Freehold Bungalow 1,176 22

Port Dickson, Kuala Linggi Pegangan bebas

5. CASH BAND (M) BERHAD GROUP

1702 Section 46 PN 2797 34,714 kp/sq. ft 99/2072 Hotel 52,675 35

Bandar Kuala Lumpur

Mukim Rawang Lot 11, Lot 614 194.65 Leasehold/Pajakan Golf Course & Club House 47,386 15

Daerah Gombak PT11444 99 / 2094 Padang Golf dan Rumah Kelab

Lot 1738 Seksyen 41 GRN 36218 1,806 meter persegi Freehold Hotel 29,635 12

Bandar Kuala Lumpur Pegangan bebas



P A G E 190

REGISTERED AND BUSINESS ADDRESSES OF KUMPULAN PERANGSANG SELANGOR BERHAD AND SUBSIDIARY

COMPANIES

ALAMAT BERDAFTAR DAN ALAMAT PERNIAGAAN KUMPULAN PERANGSANG SELANGOR BERHAD SERTA ANAK-

ANAK SYARIKAT

Name of Company Registered Address Business Address

Nama Syarikat Alamat Berdaftar Alamat Perniagaan

KUMPULAN PERANGSANG 16 Floor 16 & 17 FloorSELANGOR BERHAD Plaza Perangsang Plaza Perangsang(Company No. 23737-K) Persiaran Perbandaran Persiaran Perbandaran

40000 Shah Alam 40000 Shah AlamTel: 03-5510 3999 Tel: 03-5510 3999Fax: 03-5510 9977 Fax: 03-5510 9977

KUMPULAN HARTANAH Lot 1A, Level 1A Lot 1A, Level 1ASELANGOR BERHAD Plaza Perangsang Plaza Perangsang(Company No. 559747-W) Persiaran Perbandaran Persiaran Perbandaran

40000 Shah Alam 40000 Shah AlamTel: 03-5522 3888 Tel: 03-5522 3888Fax: 03-5510 5188 Fax: 03-5510 5188

HYDROVEST SDN BHD 17 Floor 15 Floor(Company No. 482724-D) Plaza Perangsang Plaza Perangsang

Persiaran Perbandaran Persiaran Perbandaran40000 Shah Alam 40000 Shah AlamTel: 03-5510 3999 Tel: 03-5510 3999Fax: 03-5510 9977 Fax: 03-5512 2973

TITISAN MODAL (M) SDN BHD 17 Floor 17 Floor(Company No. 700156-U) Plaza Perangsang Plaza Perangsang


VIABLE CHIP (M) SDN BHD 17 Floor 17 Floor(Company No. 720808-W) Plaza Perangsang Plaza Perangsang


CASH BAND (M) BERHAD 17 Floor 17 Floor(Company No. 735830-K) Plaza Perangsang Plaza Perangsang


Corporate DirectoryDirektori Korporat

I/We/Saya/Kami___________________________________________________________________________________________FULL NAME IN CAPITAL LETTERS/NAMA PENUH DENGAN HURUF BESAR

of/yang beralamat di_______________________________________________________________________________________ADDRESS/ALAMAT

_______________________________________________________________________________________________________being a member/members of Kumpulan Perangsang Selangor Berhad, hereby appoint the Chairman of the meeting/sebagaiahli/ahli-ahli Kumpulan Perangsang Selangor Berhad, dengan ini melantik Pengerusi Mesyuarat

or/atau__________________________________________________________________________________________________FULL NAME/NAMA PENUH


or failing whom/atau sebagai penggantinya_____________________________________________________________________FULL NAME/NAMA PENUH


as my/our proxy to attend and vote for me/us and on my/our behalf at the Thirty Second Annual General Meeting of the Companyto be held at Kayangan Ballroom, Quality Hotel Shah Alam, Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan onThursday, 18 June 2009 at 2.30 p.m. and at any adjournment thereof/sebagai proksi saya/kami untuk menghadiri dan mengundibagi pihak saya/kami di Mesyuarat Agung Tahunan Ke Tiga Puluh Dua yang akan diadakan di Bilik Kayangan, Quality Hotel ShahAlam, Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan, pada hari Khamis, 18 Jun 2009, jam 2.30 petang dan padasebarang penangguhannya.

My/Our proxy is to vote as indicated below:/Proksi saya/kami akan mengundi sepertimana yang ditandakan di bawah:

Resolution/Resolusi 1 2 3 4 5 6 7 8For/MenyokongAgainst/Menentang

(Please indicate with an "X" in the spaces provided how you wish your vote to be casted. If you do not do so, the proxy will vote orabstain voting at his discretion)/(Sila tanda dengan "X" pada tempat yang disediakan cara tuan ingin mengundi, jika tidak, proksi akan mengundi atau tidakmengundi mengikut budibicaranya)

Signature/Tandatangan__________________________Dated this/Tarikh___________day of/bulan____2009

NOTES:/NOTA-NOTA:

1. Every member is entitled to appoint at least one (1) proxy or in the case of a corporation, to appoint a representative to attend and vote in his place. A proxy need notbe a member of the Company.Setiap pemegang saham berhak melantik sekurang-kurangnya seorang (1) proksi atau jika sebuah syarikat, berhak melantik wakil untuk menghadiri dan mengundibagi pihaknya. Proksi tersebut tidak semestinya pemegang saham syarikat.

2. The Proxy Form must be signed by the appointer or his attorney duly authorised in writing or if the appointer is a corporation, either under seal or under the hand ofan officer or attorney duly authorised. In the case of joint holdings, the signature of the first named holder is sufficient.Borang Proksi mesti ditandatangani oleh pelantik atau peguam yang telah diberi kuasa secara bertulis atau sekiranya pelantik adalah sebuah syarikat, mestilahdengan memeterai atau ditandatangani oleh pegawai atau peguam yang diberi kuasa. Di dalam hal pegangan bersama, tandatangan pemegang pertama adalahmencukupi.

3. If the Proxy Form is returned without indication as to how the proxy shall vote, the proxy will vote or abstain, as he thinks fit.Sekiranya Borang Proksi dikembalikan tanpa menjelaskan bagaimana proksi harus mengundi, proksi akan mengundi atau tidak mengundi seperti mana yang difikirkansesuai.

4. If the name is not inserted in the space for the name of your proxy, the Chairman of the AGM will act as your proxy.Jika tiada nama terdapat di dalam ruang pada borang proksi anda, Pengerusi Mesyuarat akan bertindak sebagai proksi anda.

5. The Proxy Form must be deposited at the Registrar's Office, Symphony Shares Registrars Sdn Bhd, Level 26, Menara Multi Purpose, Capital Square, No. 8, JalanMunshi Abdullah, 50100 Kuala Lumpur, not less than forty-eight (48) hours before the time of holding the AGM or any adjournment thereof, or in the case of a poll,not less than twenty-four (24) hours before the time appointed for the taking of the poll.Borang Proksi mestilah dihantar ke Pejabat Pendaftar, Symphony Shares Registrars Sdn Bhd, Lantai 26, Menara Multi Purpose, Capital Square, No. 8, Jalan MunshiAbdullah, 50100 Kuala Lumpur, tidak kurang dari empat puluh lapan (48) jam sebelum Mesyuarat ditetapkan atau pada sebarang penangguhannya, atau dalam halpengundian, tidak kurang dari dua puluh empat (24) jam sebelum masa yang ditetapkan untuk mengundi.

PROXY FORM BORANG PROKSI

KUMPULAN PERANGSANG SELANGOR BERHAD(23737-K) (Incorporated in Malaysia/Diperbadankan di Malaysia)

Proxy Form for the 32nd Annual General MeetingBorang Proksi untuk Mesyuarat Agung Tahunan ke 32

No. of Ordinary Shares Held/Jumlah Saham Biasa Dipegang

fold here along dotted line/lipat di sini

fold here along dotted line/lipat di sini

AffixStamphere

Level 26, Menara Multi-Purpose, Capital Square,

No. 8, Jalan Munshi Abdullah, 50100 Kuala Lumpur

Tel: 03-2721 2222 Fax: 03-2721 2530

SYMPHONY SHARE REGISTRARS SDN BHD

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