contents kandungan - mbsb.com.my · penyata kewangan borang proksi corporate information mbsb’s...

1

Malaysia building Society berhad (9417-K)

CO N T E N TS KA N D U N G A N

Maklumat Korporat

Sejarah MBSB

Profil Pengarah

Notis Mesyuarat

Visi Pengerusi

Perutusan Pengerusi

Misi Ketua Pegawai Eksekutif

Perutusan Pengurusan

Penyata Urus Tadbir Korporat

Penyata Kawalan Dalaman

Laporan Jawatankuasa Audit

Kemuncak Kewangan Syarikat

Analisa Pemegang Saham

Senarai Hartanah

Rangkaian Cawangan

Penyata Kewangan

Borang Proksi

Corporate Information

MBSB’s Background

Director’s Profile

Notice of Meeting

Chairman’s Vision

Chairman’s Statement

CEO’s Mission

Management’s Statement

Statement of Corporate Governance

Statement on Internal Control

Report on Audit Committee

Financial Highlights

Analysis of Shareholding

Schedule of Properties

Branch Network

Financial Statement

Proxy Form

2

3

4

6

8

9

15

16

17

27

36

42

44

46

49

50

•

2

3

4

7

8

12

15

16

22

31

39

42

44

46

49

103

•

2

COR P OR AT E IN F OR M AT IO N MA K L U M A T KO R P O R A T

ANNUAL REPORT 2003 Laporan Tahunan

AUDITORS • JURUAUDIT

Ernst & YoungPublic Accountants

BANKERS • BANK

Malayan Banking BerhadRHB Bank BerhadBumiputra Commerce Berhad

REGISTRED OFFICE • PEJABAT BERDAFTAR

11th Floor, Wisma MBSB48, Jalan DungunDamansara Heights50490 Kuala LumpurTel : 03-2095 4000Faks : 03-2095 4260

CHAIRMAN • PENGERUSI

YBhg Tan Sri Abdul Halim bin Ali

BOARD OF DIRECTORS • LEMBAGA PENGARAH

YBhg Datuk Azlan ZainolYBhg Datuk Haji A. Rahim AbdullahTuan Syed Zaid Syed Jaffar AlbarEncik Lau Tiang HuaPuan Tan Ler ChinYBhg Datuk Abdullah Haji Kuntom

CHIEF EXECUTIVE OFFICER • KETUA PEGAWAI EKSEKUTIF

Encik Ahmad Farid Omar

COMPANY SECRETARIES • SETIAUSAHA SYARIKAT

Puan Aishah Hashim (LS 01204)Puan Shariffah Hizan Syed Ismail (MAICSA 7009981)

REGISTRAR • PENDAFTAR

Malaysian Share Registration Services Sdn Bhd7th Floor, Exchange SquareBukit Kewangan, 50200 Kuala Lumpur.

3

...we are fully geared.

MBSB

The origins of Malaysia Building Society Berhad (MBSB) can be traced tothe Federal and Colonial Building Society Limited incorporated inSingapore in 1950. It was established on the same solid principles that stillstand firm today.

In March 1956, the name of the Company was changed to Malaya BorneoBuilding Society Limited (MBBS). With the Malaysian Goverment as itsmajor shareholder, MBBS was listed on the then Stock Exhange ofMalaysia and Singapore in August 1963.

As a result of the separation of Singapore from Malaysia in 1965, areconstruction of MBBS was undertaken whereby effective 1 November1969, its Singapore operations were turned over to the Singapore BuildingSociety Limited which was incorporated for this purpose.

MBSB was locally incorporated in Malaysia under the Companies Act,1965 on 17 March 1970. By way of a Scheme of Arrangement, thebusiness undertakings and operations of MBBS in Malaysia weretransferred to MBSB effective 1 March 1972. Following this Scheme ofArrangement, MBBS remains a wholly owned subsidiary company ofMBSB. MBSB was listed on the Kuala Lumpur Stock Exchange on 14March 1972. The majority shareholders of MBSB are the EmployeesProvident Fund Board (EPF) and Permodalan Nasional Berhad (PNB),which hold 63.02% and 11.10% of shares respectively.

As a financial institution, MBSB specialises in taking deposits andproviding loan for house purchasers. MBSB offers a spectrum of innovativeproducts and services through its network of 22 branches including abranch in Sarawak. Individuals and corporate investors can choose from anarray of residential, commercial and industrial loan packages. Having a 52year record of providing such home financing, MBSB has been able tobuild a strong foundation in this rapidly changing financial landscape andhas thus proven to be competitive in its products and services. MBSB is fullygeared up to reposition itself in the market place and will further strive tobe the leader in setting new standards in the area of end financing.

. . . k a m i b e r s e d i a s e p e n u h n y a .

Asal usul Malaysia Building Society Berhad (MBSB) bermula dari The Federal andColonial Building Society Limited yang telah diperbadankan di Singapura pada tahun1950. Penubuhannya adalah di atas beberapa prinsip kukuh yang masih kekal masakini.

Pada bulan Mac 1956, nama syarikat telah ditukar kepada Malaya Borneo BuildingSociety Limited (MBBS). Dengan Kerajaan Malaysia sebagai pemegang sahamterbesar, MBBS telah disenaraikan dalam Bursa Saham di Malaysia dan Singapurapada bulan Ogos 1963.

Ekoran daripada pemisahan Singapura daripada Malaysia pada tahun 1965,penyusunan semula MBBS telah dilaksanakan di mana berkuatkuasa 1 November1969, operasi di Singapura telah dipindahkan kepada Singapore Building SocietyLimited yang telah diperbadankan bagi tujuan ini.

MBSB telah diperbadankan di Malaysia di bawah Akta Syarikat 1965, pada17 Mac 1970. Melalui satu Skim Pengaturan, urusan perniagaan dan operasi MBBSdi Malaysia telah dipindahkan kepada MBSB berkuatkuasa pada 1 Mac 1972.Berikutan Skim Pengaturan tersebut, MBBS kekal sebagai anak syarikat milik penuhMBSB. MBSB kemudiannya disenaraikan dalam Bursa Saham Kuala Lumpur pada14 Mac 1972. Pemegang saham majoriti MBSB adalah Lembaga Kumpulan WangSimpanan Pekerja (KWSP) dan Permodalan Nasional Berhad (PNB) yangmasing-masingnya memegang sebanyak 63.02% dan 11.10% saham.

Sebagai sebuah institusi kewangan, pengkhususan MBSB ialah menerima simpanan danmenyediakan pinjaman kepada pembeli rumah. MBSB menawarkan pelbagai spektrumproduk dan perkhidmatan yang inovatif melalui rangkaian 22 buah cawangannyatermasuk sebuah di Sarawak. Pelabur individu dan korporat boleh memilih pelbagai jenispakej pinjaman iaitu daripada pinjaman perumahan, komersil dan perindustrian.Dengan rekod selama 52 tahun menyediakan pembiayaan perumahan sedemikian,MBSB berkeupayaan untuk membina asas yang kukuh di dalam lanskap kewangan yangberubah dengan pesatnya dan dengan itu telah terbukti berdayasaing dalam produk danperkhidmatannya. MBSB telah bersedia sepenuhnya untuk menempatkan dirinyasemula dalam pasaran dan akan terus berusaha sebagai peneraju dalam menentukanpiawaian yang baru dalam bidang pembiayaan akhir perumahan.


Since our humble beginningover five decades ago...Bermula secara sederhana sejak lima dekad yang lalu...

4

DIRECTOR’S PROFILE PROFIL PENGARAH


“Dengan perbezaan membina di tahap pengurusan, kami bersedia untuk meningkatkan kualiti MBSB dengan memberi lebihtumpuan dalam proses pemulihan agar mencapai pengukuhan ekonomi yang sewajarnya…”Tuan Syed Zaid Albar, berusia 49 tahun, menyertai Lembaga sebagai Pengarah Bukan Eksekutif Bebas sejak2002. Beliau berkelayakan Barrister-at-Law daripada Lincoln’s Inn, United Kingdom. Beliau telah diterimamasuk ke Majlis Peguam Malaysia pada 1980 dan semenjak itu telah aktif dalam amalan guaman sejakdaripada itu. Pada masa ini beliau adalah rakan kongsi sebuah firma guaman di Kuala Lumpur dan jugamenjadi ahli lembaga dan jawatankuasa audit beberapa syarikat tersenarai.

“Perubahan optimistik yang dibuat oleh Lembaga Pengarah telah menyerap di seluruh organisasi dan MBSB kini sedangmelalui proses pemulihan dan akan pulih tidak lama lagi...”En. Lau Tiang Hua, berusia 51 tahun, telah dilantik sebagai Pengarah Bukan Eksekutif Bebas sejak 2001.Beliau adalah ahli Institut Akauntan Awam Bertauliah dan Institut Akauntan Malaysia. Beliau memulakanfirma sendiri, JB Lau & Associates Chartered Accountants pada 1985. Pada masa ini, beliau jugamenduduki lembaga dalam beberapa syarikat sendirian berhad.

“Strategi-strategi agresif yang dirumuskan menjajarkan Syarikat kembali ke arah kejayaan. Dengan penyelarasan inovatif dalaman akanmemberi peluang untuk berkembang...” YBhg Datuk Azlan Zainol, berusia 54 tahun, Pengarah Bukan Eksekutif Bukan Bebas sejak 2001. Beliau adalahahli fellow Institute of Chartered Accountants (England & Wales), Akauntan Awam Bertauliah dan ahli InstituteAkauntan Malaysia. Pada masa ini, beliau adalah Ketua Pegawai Eksekutif Kumpulan Wang Simpanan Pekerja(KWSP), ahli Lembaga RHB, Asia Limited, Commonwealth African Investments Limited (COMAFIN),Malaysian Central Depository Sdn Bhd serta juga Penasihat kepada Lembaga Malaysian Venture CapitalManagement Sdn Bhd (MAVCAP).

“With constructive differences at the management level, we are all geared up to persist in improving MBSB’squality by concentrating more in our recovery process so as to gain a proper economic footing…” Tuan Syed Zaid Albar, aged 49, joined the Board as an Independent Non-Executive Director since 2002.Qualified as a Barrister-at-Law from Lincoln’s Inn, United Kingdom, he was called to the Malaysian BarCouncil in 1980 and has been active in legal practice ever since. Presently he is a managing partner of a lawfirm in Kuala Lumpur as well as sits on the board and audit committees of several listed companies.

“T he op t im i s t i c chang e s made in t h e Board o f Di r e c t o rs hav e f i l t e r ed t h rough t h e who l eo r gan i sa t i on and MBSB i s now on th e road t o re cov e r y and wi l l tu r n a round v e r y soon…”Mr. Lau Tiang Hua, 51, was appointed as an Independent Non-Executive Director since 2001. He is amember of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute ofAccountants. He established his practice, JB Lau & Associates Chartered Accountants in 1985. Presently, healso sits on the board of several private limited companies.

“The aggresive strategies formulated will align the Company back to the success path. With our innovative in-house adjustments therewill be ample opportunity to expand...”YBhg Datuk Azlan Zainol, 54 , Non-Independent Non-Executive Director since 2001. He is a fellow of Instituteof Chartered Accountants (England & Wales), Certified Public Accountants member of the Malaysian Instituteof Accountants. Presently the CEO of Employees Provident Fund (EPF), a Board member of RHB, AsiaLimited, Commonwealth African Investments Limited (COMAFIN), Malaysian Central Depository Sdn Bhd aswell as Advisory to the Board of Malaysian Venture Capital Management Sdn Bhd (MAVCAP).

“Menjadi sebuah institusi kewangan yang mengutamakan pelanggan dalam menyediakan pinjaman hartanah dan aktivitipenerimaan deposit menuju ke arah pembentukan pengurusan harta untuk para pelanggan...”YBhg Tan Sri Abdul Halim Ali, 60 tahun, berkelulusan B.A. (Kepujian) daripada Universiti Malaya, dilantiksebagai Pengerusi MBSB sejak bulan Jun 2001. Beliau juga adalah Pengerusi Lembaga Kumpulan WangSimpanan Pekerja (KWSP) dan Badan Pengawas Pemegang Saham Minority Berhad serta juga ahli LembagaPengarah ESSO Malaysia Berhad, Cycle & Carriage Bintang Berhad, Cycle & Carriage Ltd (Singapore),Malakoff Berhad dan Phileo Allied Berhad.

“To be a consumer driven financial institution offering property lending and deposit taking activities leading to wealth management cre-ation for its valued customers...”YBhg Tan Sri Abdul Halim Ali, 60, holds a B.A. (Hons) from University Malaya, was appointed as MBSB’sChairman since June 2001. Presently, he is also the Chairman of Employees Provident Fund Board and BadanPengawas Pemegang Saham Minority Berhad as well as the member of the Board of ESSO Malaysia Berhad,Cycle & Carriage Bintang Berhad, Cycle & Carriage Ltd (Singapore), Malakoff Berhad and Phileo Allied Berhad.

5


DIRECTOR’S PROFILE PROFIL PENGARAH

“MBSB akan menjadi sebuah pertubuhan yang menguntungkan…menghasilkan produk yang memuaskan dan bernilai.Inisiatif yang berterusan bersesama dengan komitmen pihak Pengurusan dan Kakitangan telah mengubah MBSB kepadaInstitusi Kewangan yang berdaya saing dalam pasaran...”YBhg Datuk Haji A. Rahim Abdullah, berusia 60 tahun, telah dilantik sebagai Pengarah Bukan EksekutifBebas pada 2000. Beliau memegang ijazah Sarjana Muda dan Sarjana Arkitek daripada University ofAuckland, New Zealand. Beliau adalah ahli bersekutu New Zealand Institute of Architects (NZIA) danInstitut Arkitek Malaysia (PAM). Beliau telah dilantik sebagai Presiden Lembaga Arkitek Malaysia (BAM) dari1989-1998 dan kini Lembaga Pengarah Plaza Damansara Sdn. Bhd., Merdeka Ventures Sdn. Bhd., GoldenMorib Sdn. Bhd., dan Pengarah Badan Warisan Malaysia.

“Rumusan strategi baru seperti penyusunan semula operasi kumpulan, mengarah semula arah tuju perniagaan supaya lebihmenumpukan kepada perkhidmatan dan mengorientasikan keuntungan dengan penuh yakin akan memulihkan MBSB sekitartahun 2004...”YBhg Datuk Abdullah Haji Kuntom, berusia 60 tahun, berkelulusan B.A. (Kepujian) daripada UniversitiMalaya dan Sarjana dalam Pentadbiran dan Polisi Awam daripada Universiti Wisconsin, USA. Beliau telahdilantik sebagai Pengarah Bukan Eksekutif Bukan Bebas pada 26 September 2003. Beliau memulakankerjayanya dengan Perkhidmatan Awam Johor pada 1967 dan telah bekhidmat dengan Kementerian DalamNegeri, Syarikat Kemajuan Perumahan Pegawai Kerajaan Sdn Bhd, Kementerian Kewangan dan JabatanPerdana Menteri.

“Dalam setiap cabaran terdapat peluang...MBSB kini sedang menuju ke arah peluang ini dengan bekerjasama secara holistikuntuk meningkatkan prestasi MBSB dan juga aktiviti utamanya, iaitu pembiayaan akhir perumahan...”Puan Tan Ler Chin, 44 tahun, Pengarah Bukan Eksekutif Bukan Bebas sejak tahun 2002. SeorangAkauntan Bertauliah, beliau memulakan kerjayanya di Jabatan Kewangan dan Pelaburan KWSP padatahun 1984. Pada masa ini beliau merupakan Pengurus Besar Kewangan Korporat-Pelaburan.

“New strategies formulated such as restructuring the group’s operations, redirecting the outfit to be more servicefocussed and profit oriented, will certainly turn MBSB around in 2004...”YBhg Datuk Abdullah Haji Kuntom, aged 60, holds a B.A. (Hons) from University Malaya and Master inPublic Policy and Administration from University Wisconsin, USA. He was appointed as a Non-IndependentNon-Executive Director on 29 September 2003. He began his career with Johore Civil Service in 1967 andhas worked with Ministry of Home Affairs, Syarikat Kemajuan Perumahan Pegawai Kerajaan Sdn Bhd,Ministry of Finance and was attached to the Prime Minister’s Department.

“In every challenge therein lies opportunities…MBSB is now focussing on these opportunities by workingholistically towards improving MBSB’s performance as well as it’s core business of end financing...”Madam Tan Ler Chin, aged 44, was appointed as an Non-Independent Non-Executive Director since 2002.A certified Chartered Accountant, she began her career in EPF’s Finance and Investment Department in1984. Currently she is the General Manager of Corporate Finance-Investment.

“MBSB will be a profitable organization... giving satisfactory and valued products. The on going initiatives together with the commitmentof the Management and Staff has transformed MBSB into a competitive Financial Institution in the market...”YBhg Datuk Haji A. Rahim Abdullah, 60, was appointed as an Independent Non-Executive Director in2000. He holds a Bachelor and Master of Architecture from University of Auckland, New Zealand. He isan associate member of New Zealand Institute of Architects (NZIA) and Malaysian Institute of Architects(PAM). He was appointed as a President of the Board of Architects Malaysia (BAM) from 1989-1998 andcurrently sits on the Board of Directors of Plaza Damansara Sdn Bhd, Merdeka Ventures Sdn Bhd, GoldenMorib Sdn Bhd and Badan Warisan Malaysia.

6

NOT IC E OF ME E T I N G


NOTICE IS HEREBY GIVEN THAT THE THIRTY FOURTH ANNUAL GENERAL MEETING of the Company willbe held at Banquet Hall, First Floor, Kuala Lumpur Golf & Country Club, No.10, Jalan 1/70D, Off Jalan Bukit Kiara, 60000Kuala Lumpur on Wednesday, 2 June 2004 at 12.00 noon for the following purposes:

1. To receive and adopt the Audited Statement of Accounts of the Company and of the Group for the year ended 31December 2003 and the Directors' and Auditors' Report thereon.

2. To approve Directors' Fees.

3. To re-elect YBhg Datuk Abdullah bin Kuntom who retired in accordance with Article 78 of the Company’s Articles ofAssociation.

4. To re-elect the following who retired in accordance with Article 86 of the Company's Articles of Association:-

(i) YBhg Datuk Azlan bin Mohd Zainol(ii) Encik Lau Tiang Hua

5. To re-appoint Messrs. Ernst & Young (AF 0039) as the Company's Auditors and to authorise the Directors to fix their remunerations.

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

7. SPECIAL BUSINESS:

To consider and if thought fit, to pass the following ordinary resolution:

“That subject always to the Companies Act, 1965, Articles of Association of the Company and approval from the MalaysiaSecurities Exchange Berhad (KLSE) and Securities Commission full authority be and is hereby given to the Directorspursuant to Section 132D of the Companies Act, 1965 to issue shares of the Company on such terms and conditions andat such times as may be determined by the Directors of the Company to be in the interest of the Company.”

BY ORDER OF THE BOARD

AISHAH HASHIM (LS 01204)SHARIFFAH HIZAN SYED ISMAIL (MAICSA 7009981)COMPANY SECRETARIES

Kuala Lumpur12 May 2004

NOTE :

A member entitled to attend and vote at the abovementioned meeting may appoint a proxy to attend and vote on his behalfand such proxy need not be a member of the Company. The instrument appointing such a proxy must be deposited at theRegistered Office of the Company, 11th Floor, Wisma MBSB, 48, Jalan Dungun, Damansara Heights, 50490 Kuala Lumpur,not less than 48 hours before the meeting.

Resolution 1

Resolution 2

Resolution 3

Resolution 4Resolution 5

Resolution 6

Resolution 7

Resolution 8

7


NOT I S ME S Y UA R AT

ADALAH DENGAN INI DIMAKLUMKAN BAHAWA MESYUARAT AGUNG TAHUNAN KETIGA PULUH EMPATSyarikat akan diadakan di Dewan Banquet, Tingkat 1, Kuala Lumpur Golf & Country Club, No.10, Jalan 1/70D, Off JalanBukit Kiara, 60000 Kuala Lumpur pada hari Rabu, 2 Jun 2004 pada jam 12.00 tengah hari bagi tujuan berikut:

1. Untuk menerima dan meluluskan Penyata Akaun Teraudit Syarikat dan Kumpulan bagi tahun berakhir 31 Disember2003 dan Laporan Pengarah dan Juruaudit mengenainya.

2. Untuk meluluskan Yuran para Pengarah.

3. Untuk melantik semula YBhg Datuk Abdullah bin Kuntom yang bersara selaras dengan Artikel 78 Tataurusan PertubuhanSyarikat.

4. Untuk melantik semula Pengarah-pengarah berikut yang bersara menurut Artikel 86 Tataurusan Pertubuhan Syarikat:-

(i) YBhg Datuk Azlan bin Mohd Zainol(ii) Encik Lau Tiang Hua

5. Untuk melantik semula Tetuan Ernst & Young (AF 0039) sebagai Juruaudit Syarikat dan untuk membenarkan paraPengarah menetapkan imbuhan mereka.

6. Untuk menguruskan dengan mana-mana urusan biasa lain untuk yang mana notis sewajarnya telah diberi.

7. URUSAN KHAS:

Untuk mempertimbangkan dan sekiranya difikirkan wajar, untuk meluluskan resolusi biasa berikut:

“Bahawa tertakluk sentiasa kepada Akta Syarikat 1965, Tataurusan Pertubuhan Syarikat dan kelulusan daripada MalaysiaSecurities Exchange Berhad (KLSE) dan Suruhanjaya Sekuriti kuasa penuh adalah dengan ini diberi kepada para Pengarahselaras dengan Seksyen 132D Akta Syarikat 1965 untuk menerbitkan saham-saham Syarikat atas terma-terma dansyarat-syarat tertentu dan pada masa tertentu sebagaimana mungkin ditentukan oleh para Pengarah Syarikat demikepentingan Syarikat.”

DENGAN PERINTAH LEMBAGA PENGARAH

AISHAH HASHIM (LS 01204)SHARIFFAH HIZAN SYED ISMAIL (MAICSA 7009981)SETIAUSAHA SYARIKAT

Kuala Lumpur12 Mei 2004

NOTA :

Ahli yang berhak untuk hadir dan mengundi pada mesyuarat tersebut di atas boleh melantik proksi untuk hadir danmengundi bagi pihak beliau dan proksi tersebut tidak perlu menjadi ahli Syarikat. Suratcara melantik proksi hendaklahdiserahkan di Pejabat Berdaftar Syarikat, Tingkat 11, Wisma MBSB, 48, Jalan Dungun, Damansara Heights, 50490 KualaLumpur, tidak kurang daripada 48 jam sebelum mesyuarat.

Resolusi 1

Resolusi 2

Resolusi 3

Resolusi 4Resolusi 5

Resolusi 6

Resolusi 7

Resolusi 8

8


Tan Sri Abdul Halim bin Ali

CH A I R M A N ’S VI S IO N VI S I PE N G E R U S I

“Aspirasi MBSB adalah untuk menjadi penyediaterpilih bagi perkhidmatan kewangan, menumpuke atas pembiayaan akhir dan produk mengambildeposit untuk kedua-dua pasaran pnjaman secaraIslam dan konvensional. Kami berhasrat memberiperkhidmatan yang terbaik kepada semuapelanggan”.

MBSB

“ MBSB’s aspiration is to be the preferred provider of financial services, focussing on end financingand deposit taking products for both the Islamic and conventional market. It is our intention toprovide the best service possible to our customers.”

9


CH A I R M A N ’S STAT E M E N T

TO OUR SHAREHOLDERS

On behalf of the Board of Directors, I am pleased to present theAnnual Report and Audited Financial Statements of MalaysiaBuilding Society Berhad (“MBSB”) and its Group for the financialyear ended 31 December 2003.

REVIEW OF THE ECONOMY IN 2003

In the year 2003 Malaysia’s economy expanded at a bullish pace.Higher financing from the banking system supported strongereconomic growth, particularly for expansion of small and mediumscale industry (SME) and household sectors.

In an environment of global economic uncertainty, growth in theMalaysian economy was mainly domestic driven, supported by amodest growth in external demand. Gross Domestic Product(GDP) grew to 5.2%, which is much stronger than the official fore-cast of 4.5% and the 4.1% registered in 2002.

The banking sector remained competitive for the whole year withnet interest margins continuing to be under pressure given thecompetitive and excess liquidity in the banking system.

Based on expectations of a modest expansion in the economy,demand for consumer financing remained strong.

In the property sector, the demand in the property market stillremains largely in the residential units. The low interest rateenvironment, increased access to financing, attractive lendingterms and conditions as well as the government’s economicstimulus measures have all played a role for home buyers topurchase residential units in the selected good development areas.

REVIEW OF THE GROUP’S PERFORMANCE

In 2003, MBSB continued to promote its retail mortgage relatedactivities and repositioning its funding mix.

During the financial year, concerted efforts were placed onrecovery and collection activities for all the NPL’s. The net NPLratios were 54% and 53% for the Group and the Companyrespectively as at 31 December 2003 as compared to 62% and 59%for the Group and the Company respectively as at 31 December2002.

Financial Performance Group

The Group’s loss before taxation for the financial year ended 31December 2003 stood at of RM66.67 million, a reduction of 46%

as compared to last year’s loss before tax of RM124.51 million.This was mainly due to lower provision for impairment loss ofproperty, plant and equipment, loan loss provisions and otheroperating expenses.

The Company’s loss before taxation for the financial year ended31 December 2003 was RM59.95 million, a reduction of 73% ascompared to last year’s loss before tax of RM222.13 million. Thiswas mainly due to lower loan loss provisions, lower net interestsuspension resulted from higher recovery of non-performing loansas well as lower provision for unsecured advances to subsidiariesand provision for diminution in value of investment in subsidiaries.

Property Development Subsidiaries

Subsidiaries involved in the letting of properties have lower lossesin 2003 compared to 2002 when huge provisions were made forimpairment losses for properties in 2002 upon adopting the MASB23.

However subsidiaries in property development have incurredlosses in 2003 as compared to profit in 2002.

The loss in property development activities in 2003 arose mainlyfrom:

- Attributable losses for Joint Venture projects and interest costfor projects;

- Additional contractual obligation for terminated joint ventureprojects;

- Provision for diminution in value for properties held fordevelopment and;

- Provision for doubtful debts on advances to privatisationprojects.

Lending activities

End financing is MBSB’s most significant area of business,consistent with it’s role as the promoter of home ownership. MBSBhas been appointed as the designated provider of end financing tothe EPF contributors and purchasers of low cost houses built bySyarikat Perumahan Negara Berhad (SPNB). In line with ourCorporate Mission to be a responsible corporate Citizen MBSBwill always give its full support to the Government’s policy to fulfilits share of social obligation to the general public.

Our core activities had been expanded to include wider range ofproducts and services. Lending activities in the early part of theyear were very much concentrated/focussed on walk-in clients anda few developers.

10


In line with efforts to enhance market penetration, a marketingteam was set up at Head Office headed by Managers and aided bymobile markerting officers to support the branches. To furtherpenetrate the market we had mobilized our marketing teamstogether with branch personnel to attend to various propertylaunches nationwide. To provide more options/alternatives tohouse buyers in seeking financing, Islamic financing wasintroduced with effect from September 2003.

MBSB had successfully penetrated all established developers tooffer end financing product packages with competitive rates.Corporate bodies e.g. Public Listed companies, MNC’s andGovernment agencies are our new target market to introduce thecomprehensive range of retail products.

There has been a marked improvement in new business and MBSBwill certainly be a force to be reckoned with in the propertyfinancing sector.

Deposit Mobilisation

Coordinated initiatives were carried out to capture potentialdepositors and to retain existing customers. A deposit drive wasundertaken with special emphasis on individuals as the maincontributor of deposits. To facilitate this, MBSB had introducedinnovative deposit packages with attractive returns and improvedquality of services. The public response had been encouraging.

Dividends

In view of the losses sustained by the Group, the Board ofdirectors recommends that no dividend be declared in respect ofordinary shares for the financial year ended 31 December 2003.

STRATEGIC INITIATIVES TO ADDRESS FINANCIALPERFORMANCE FOR THE GROUP

Information Technology

As one of the initiatives to strengthen our position in the financialindustry, MBSB has been exploring options for implementingleading edge technical infrastructure capabilities associated withthe new banking system. MBSB has allocated a substantial amountof resources and investment in upgrading our informationtechnology (IT) infrastructure.

Moving forward to a customer centric organization, introductionof the new Integrated Banking Solutions (IBS) is the first step inenhancing MBSB’s core system to drive its strategic ICT

capabilities. In the long term IBS will facilitate ‘straight through’processing (e.g. One Stop Servicing), provide a flexible system tosupport expansion and growth in the retail market, and also enableimplementation and integration of other future applications.

Human Resource Development

In the year 2003, MBSB has recruited a total of 32 staff to replacethose who had resigned and retired.

To ensure that the staffs contribute effectively to turn around thecompany, training and development was given priority. In total, 21in-house training sessions were conducted at the head office andbranches between August to December 2003. The main topicswere motivation, product knowledge and marketing skills.

MBSB believes that it is important to promote a progressive,proactive and meaningful corporate culture. Opportunities forcareer advancement has been developed and a comprehensiveperformance appraisal system was introduced to reward staff.

Product Development

MBSB has taken aggressive initiatives in line with the corporatevision to be a consumer driven financial institution offeringproperty lending and deposit taking activities leading to wealthmanagement.

One of its key strategies is to be innovative in its products andservices. In the year 2003, MBSB embarked into the dual bankingsystem of conventional and Islamic banking with the introductionof its very own competitive Islamic Products, namely, PropertyFinancing-i, Fixed Deposit-i. and Personal Financing-i.

Earlier this year, MBSB proudly launched its one of a kindmortgage plan specifically designed for home-owning seniorcitizens. These initiatives are in line with MBSB’s new andinnovative products and product bundling strategy.

Marketing teams have been mobilised to reach out and promote itsnew products and special packages to meet the needs and demandsof the population.

CHANGES IN THE BOARD OF DIRECTORS

During the financial year, YBhg Dato’ Abdul Hamidy resignedfrom the Board. On behalf of the Board, I would like to record ourappreciation to him for his services and enormous contribution toMBSB. At the same time, I extend my welcome to YBhg Datuk

11


Abdullah bin Haji Kuntom to the Board on 29 September 2003 asan Non Independent Non Executive Director as the representativeof PNB.

ACKNOWLEDGEMENT

I wish to welcome Encik Ahmad Farid bin Omar who tookover the helm of the Company on 1 August 2003 as the new ChiefExecutive Officer. With his vast expertise in Banking andCorporate sector, we are confident that he will be able to meet theexpectation and aspiration of the Board and shareholders.

I would like to record my gratitude and appreciation to the Boardof Directors, the Management Team and the staff of MBSB fortheir commitment and dedication to MBSB.

Lastly, my sincere thanks to our customers, depositors, bankers andshareholders for their confidence and continuous support to theCompany.

TAN SRI ABDUL HALIM BIN ALICHAIRMAN

Kuala Lumpur26 March 2004

12

PE R U T U S A N PE N G E R U S I


KEPADA PEMEGANG-PEMEGANG SAHAM KAMI

Bagi pihak Lembaga Pengarah, saya dengan sukacitanyamembentangkan Laporan Tahunan dan Penyata KewanganTeraudit Malaysia Building Society Berhad (“MBSB”) danKumpulannya bagi tahun kewangan berakhir 31 Disember 2003.

TINJAUAN EKONOMI PADA 2003

Dalam tahun 2003 ekonomi Malaysia berkembang pada kadaryang mendadak. Pembiayaan yang lebih tinggi daripada sistemperbankan telah menyokong pertumbuhan ekonomi yang lebihkukuh, khususnya bagi perkembangan industri bersaiz kecil dansederhana (SME) dan sektor isi rumah.

Dalam suasana ekonomi global yang tidak pasti, pertumbuhandalam ekonomi Malaysia kebanyakannya datang dari bahagiandomestik, disokong oleh pertumbuhan sederhana dalampermintaan daripada luar. Keluaran Dalam Negara Kasar (KDNK)berkembang sebanyak 5.2%, yang adalah lebih kukuh daripadaramalan rasmi sebanyak 4.5% dan 4.1% yang dicatat pada 2002.

Sektor perbankan kekal bersaingan bagi keseluruhan tahun denganmargin faedah bersih terus berada di bawah tekanan mengambilkira pasaran yang berdaya saing dan kecairan berlebihan dalamsistem perbankan.

Berdasarkan jangkaan pengembangan sederhana dalam ekonomi,permintaan bagi pembiayaan pengguna kekal kukuh.

Dalam sektor hartanah, permintaan dalam pasaran hartanah masihlagi kekal terutamanya untuk unit-unit kediaman. Persekitarankadar faedah yang rendah, akses yang lebih mudah kepadapembiayaan, terma-terma dan syarat-syarat pemberian pinjamanyang menarik di samping langkah-langkah ransangan ekonomikerajaan kesemuanya telah memainkan peranan dalam mendorongpembeli-pembeli rumah untuk membeli unit-unit kediaman dalamkawasan pembangunan terpilih yang baik.

TINJAUAN PRESTASI KUMPULAN

Pada 2003, MBSB terus mempromosikan kegiatan berkaitangadai janji peruncitan dan penyusunan semula campuranpembiayaannya.

Dalam tahun kewangan, usaha-usaha bersepadu telah diambil keatas kegiatan pemungutan semula dan pengutipan bagi semua NPL.Nisbah NPL bersih masing-masing adalah 54% dan 53% bagiKumpulan dan Syarikat pada 31 Disember 2003 berbandingdengan 62% dan 59% masing-masing bagi Kumpulan dan Syarikatpada 31 Disember 2002.

Prestasi Kewangan Kumpulan

Kerugian sebelum cukai Kumpulan bagi tahun kewangan berakhir31 Disember 2003 berada pada RM66.67 juta, merupakanpengurangan sebanyak 46% berbanding dengan kerugian sebelumcukai pada tahun lepas sebanyak RM124.51 juta. Ini adalahterutamanya disebabkan oleh peruntukan yang lebih rendah bagikerugian kerosotan harta, loji dan peralatan, peruntukan kerugianpinjaman dan lain-lain perbelanjaan kendalian.

Kerugian sebelum cukai Syarikat bagi tahun kewangan berakhir31 Disember 2003 sebanyak RM59.95 juta, pengurangan sebanyak73% berbanding dengan kerugian sebelum cukai tahun lepassebanyak RM222.13 juta. Ini adalah terutamanya disebabkan olehperuntukan kerugian pinjaman yang lebih rendah, penggantunganfaedah bersih yang lebih rendah akibat daripada pemungutansemula yang lebih tinggi daripada pinjaman tidak berbayar sertajuga peruntukan yang lebih rendah bagi pendahuluan tidakbercagar kepada anak-anak syarikat dan peruntukan bagipengurangan dalam nilai pelaburan dalam anak-anak syarikat.

Anak-anak Syarikat Pembangunan Hartanah

Anak-anak syarikat terlibat dalam penyewaan hartanah mengalamikerugian yang lebih rendah pada 2003 berbanding dengan 2002terutamanya disebabkan oleh peruntukan yang cukup besar bagikerugian kerosotan ke atas hartanah pada 2002 selepas penerimaanpakai MASB 23.

Walau bagaimanapun anak-anak syarikat dalam pembangunanhartanah telah menanggung kerugian pada 2003 berbandingdengan keuntungan pada 2002.

Kerugian dalam kegiatan pembangunan hartanah pada 2003timbul terutamanya daripada:

- Kerugian boleh diagih bagi projek usahasama dan kos faedahbagi projek;

- Obligasi kontrak tambahan bagi projek usahasama yangditamatkan;

- Peruntukan bagi pengurangan dalam nilai bagi harta dipeganguntuk pembangunan dan;

- Peruntukan bagi hutang ragu ke atas pendahuluan kepadaprojek penswastaan.

Kegiatan Pemberian Pinjaman

Pembiayaan akhir adalah bidang perniagaan yang paling pentingMBSB, konsisten dengan peranannya sebagai promoter pemilikanrumah kediaman. MBSB telah dilantik sebagai penyediadinamakan bagi pembiayaan akhir kepada pencarum-pencarum

13


KWSP dan pembeli-pembeli rumah kos rendah yang dibina olehSyarikat Perumahan Negara Berhad (SPNB). Sejajar dengan MisiKorporat untuk menjadi Warga Korporat yang bertanggungjawabMBSB akan sentiasa memberikan sokongan penuh kepada dasarKerajaan untuk memenuhi tanggungjawab sosialnya kepada orangawam.

Kegiatan teras kami telah diperluaskan untuk merangkumirangkaian produk dan perkhidmatan yang lebih luas. Kegiatanpemberian pinjaman pada awal tahun lebih banyak tertumpukepada klien-klien jumpa terus dan pertalian kami denganbeberapa pemaju.

Sejajar dengan usahanya untuk meningkatkan penerapan pasaran,pasukan pemasaran telah ditubuhkan di Ibu Pejabatdiketuai oleh Pengurus-pengurus dan dibantu oleh pegawai-pegawai pemasaran bergerak untuk menyokong cawangan-cawangan. Untuk menembusi pasaran, kami telah menggerakkanpasukan pemasaran kami bersama personel cawangan untukmenghadiri beberapa pelancaran hartanah di seluruh negara.Untuk menyediakan lebih banyak opsyen/alternatif kepadapembeli-pembeli rumah dalam mendapat pembiayaan.Pembiayaan cara Islam telah diperkenalkan mulai September 2003.

MBSB dengan jayanya telah menerapi semua pemaju mantapuntuk menawarkan pakej produk Pembiayaan Akhir dengankadar faedah berdaya saing. Badan-badan korporat, sepertisyarikat-syarikat Tersenarai Awam, MNG dan agensi Kerajaanadalah pasaran sasaran baru kami untuk memperkenalkanrangkaian komprehensif produk runcit kami.

Terdapat peningkatan ketara dalam perniagaan baru dan MBSBsudah pastinya akan menjadi satu kuasa yang harus diberiperhitungan sewajarnya dalam sektor pembiayaan hartanah.

Mobilisasi Deposit

Inisiatif diselaraskan telah dilaksanakan untuk menawanpendeposit yang berpotensi dan untuk mengekalkan pelanggan-pelanggan sedia ada. Kempen Deposit telah dilaksanakan denganpenekanan khusus ke atas individu-individu sebagai penyumbangutama deposit. Bagi melicinkan lagi Kempen tersebut, MBSB telahmemperkenalkan kemudahan kepada pendeposit dengan pakejdeposit inovatif, pulangan menarik dan mutu perkhidmatanyang bertambah baik. Sambutan daripada orang ramai amatmenggalakkan.

Dividen

Memandangkan kerugian yang dialami oleh Kumpulan, LembagaPengarah mengesyorkan agar tiada dividen diisytiharkanberhubung dengan saham-saham biasa bagi tahun kewanganberakhir 31 Disember 2003.

INISIATIF STRATEGIK UNTUK MENANGANI PRESTASIKEWANGAN BAGI KUMPULAN

Teknologi Maklumat

Sebagai salah satu inisiatif untuk mengukuhkan kedudukan kamidalam industri kewangan, MBSB telah meninjau opsyen-opsyenbagi melaksanakan keupayaan infrastruktur teknikal berdaya saingdengan sistem perbankan baru. MBSB telah memperuntukkansejumlah besar sumber-sumber dan pelaburan dalammeningkatkan infrastruktur teknologi maklumat (IT).

Dengan bergerak ke hadapan sebagai sebuah organisasimengutamakan pelanggan, pengenalan Penyelesaian PerbankanBersepadu baru (IBS) adalah langkah pertama dalammempertingkatkan sistem teras MBSB bagi memacu keupayaanICT strategiknya.

Dalam jangka masa panjang IBS akan memudahkan pemprosesan‘terus menerus’ (seperti Perkhidmatan Sehenti), menyediakan sistemfleksibel untuk menyokong perkembangan dan pertumbuhandalam pasaran runcit, dan juga membolehkan pelaksanaan danpenyepaduan lain-lain aplikasi masa hadapan.

Pembangunan Sumber Manusia

Pada tahun 2003, MBSB telah mengambil sejumlah 32 kakitanganuntuk menggantikan kakitangan yang meletak jawatan dan bersara.

Untuk memastikan agar kakitangan-kakitangan menyumbangsecara berkesan untuk memulihkan syarikat, latihan dan kemajuandiberikan keutamaan. Secara keseluruhannya, sebanyak 21 sesilatihan dalam syarikat telah dijalankan di ibu pejabat dancawangan di antara Ogos hingga Disember 2003. Tajuk-tajukutama adalah motivasi, pengetahuan produk dan kemahiranpemasaran.

MBSB percaya bahawa adalah penting untuk menggalakkanbudaya korporat progresif, proaktif dan bermakna. Penyediaanpeluang bagi kemajuan kerjaya telah dibangunkan dan sistempenilaian prestasi komprehensif telah diperkenalkan untuk mem-beri ganjaran kepada kakitangan-kakitangan.

Pembangunan Produk

MBSB telah mengambil inisiatif agresif sejajar dengan wawasankorporat untuk menjadi institusi kewangan mementingkanpelanggan yang menawarkan pemberian pinjaman harta dankegiatan mengambil deposit yang membawa kepada pengurusankekayaan/harta.

Salah satu daripada strategi utama adalah untuk bersikap inovatifterhadap produk dan perkhidmatannya. Pada tahun 2003, MBSB

14


telah memulakan sistem perbankan berkembar iaitu perbankankonvensional dan perbankan Islam dengan pengenalan kepadaProduk berdaya saing Islamnya sendiri, iaitu, PembiayaanHartanah-i, Deposit Tetap-i dan Pembiayaan Peribadi-i.

Pada awal tahun ini, MBSB dengan bangganya melancarkansatu-satunya jenis pelan gadai janji berbalik yang direka secarakhususnya bagi warga tua yang memiliki rumah. Inisiatif ini adalahsejajar dengan produk baru dan inovatif MBSB dan strategipemberkasan produk.

Pasukan pemasaran telah dimobilisasikan untuk mengembangkancapaiannya dan mempromosikan produk barunya dan pakej khasuntuk memenuhi keperluan dan permintaan penduduk.

PERUBAHAN DALAM LEMBAGA PENGARAH

Dalam tahun kewangan, YBhg Dato’ Abdul Hamidy meletakjawatan daripada Lembaga. Bagi pihak Lembaga saya inginmerakamkan penghargaan kami atas perkhidmatan dansumbangan berharga beliau kepada MBSB. Pada masa yang sama,saya mengalukan perlantikan YBhg Datuk Abdullah bin HajiKuntom ke Lembaga pada 29 September 2003 sebagai PengarahBukan Eksekutif Bukan Bebas mewakili PNB.

PENGHARGAAN

Saya ingin mengalu-alukan kedatangan Encik Ahmd Farid binOmar yang mengambil alih pucuk pimpinan Syarikat pada pada1 Ogos 2003 sebagai Ketua Pegawai Eksekutif yang baru. Denganpengalaman beliau yang meluas dalam sektor Perbankan danKorporat, kami yakin beliau berupaya untuk memenuhi jangkaandan aspirasi Lembaga dan pemegang-pemegang saham.

Saya ingin merakamkan penghargaan saya kepada LembagaPengarah, Pasukan Pengurusan dan kakitangan MBSB ataskomitmen dan dedikasi mereka kepada MBSB.

Akhir sekali, terima kasih yang tidak terhingga kepada pelanggan,pendeposit, jurubank dan pemegang saham kami atas keyakinandan sokongan berterusan kepada Syarikat.

TAN SRI ABDUL HALIM BIN ALIPENGERUSI

Kuala Lumpur26 Mac 2004

CE O ’S MI S S IO N MI S I KE T U A PE G A W A I EK S E K U T I F

“MBSB’s future direction is to focus on becoming acustomer centric organisation and at the same time

“Hala tuju masa hadapan MBSB adalah untukmenumpu dalam menjadi sebuah organisasi yangmengutamakan pelanggan dan pada masa yangsama meningkatkan nilai pemegang-pemegangsahamnya.”

Encik Ahmad Farid Omar

15


enhance its shareholders’ value.”

16

ANNUANNUAL REPOAL REPORRT T 20032003 LLapoaporran Tan Tahunanahunan

M A N A G E M E N T ’S STAT E M E N T PE R U T U S A N PE N G U R U S A N

We as part of MBSB’s team will strive to achieve the Company’sVision to become a consumer driven financial institution. Wecomprise of experienced, skillful, qualified and dedicated staff forcewho will continuously ensure that our customers’ changing needs aremet.

We pledge to inculcate quality consciousness and a sense of pridewithin us in all aspects of service towards our customers,shareholders and the community at large.

Our desire is to place MBSB as the leader and respectable player inthe financial industry. Even when faced with unfavourable odds wewill persevere.

Finally we will strive to achieve the higher standard in whatever wedo. We will support and uphold the positive values of MBSB and willcontinue to pursue and develop ourselves and our subordinates toachieve MBSB’s long term growth.

Kami mewakili MBSB kesekumpulan akan berusaha sedaya-upaya untuk mencapaiVisi Syarikat untuk menjadi sebuah institusi kewangan yang mengutamakanpelanggan. Kami terdiri daripada kakitangan yang berpengalaman, berkemahiran,berkelayakan serta berdedikasi yang akan memastikan keperluan pelanggan yangsentiasa berubah akan dipenuhi secara berterusan.

Kami berjanji akan sentiasa peka kepada kualiti dan akan berasa bangga dalamsemua aspek perkhidmatan yang diberikan kepada pelanggan, pemegang saham danmasyarakat umum.

Hasrat kami adalah untuk meletakkan MBSB sebagai peneraju dan pengusahadihormati dalam industri kewangan. Walaupun menghadapi situasi yang di luardugaan, kami akan tetap tekun menjalankan tugas.

Akhir sekali, kami akan berusaha untuk mencapai standard tertinggi di dalam apa juayang kami lakukan dan kami akan menyokong dan mendokong nilai-nilai positifMBSB dan akan terus berusaha memajukan diri kami dan kakitangan bawahan kamiuntuk mencapai pertumbuhan jangka panjang MBSB.

Abd Rahim AmbakGeneral Manager

(Credit Management)

Pengurus Besar(Pengurusan Kredit)

Shamsudin Hj. Md YusoffGeneral Manager

(Branch Management & Retail)

Pengurus Besar(Pengurusan Cawangan & Runcit)

Yew Teik Jin Group Financial Controller

(Finance & IT)

Penguasa Kewangan Kumpulan(Kewangan & Teknologi)

Ariffa AriffinSenior Manager

(Strategic Planning)

Pengurus Kanan(Perancangan Strategik)

Azmi HamidGeneral Manager

(Corporate Services)

Pengurus Besar(Perkhidmatan Korporat)

The Board is committed to ensuring the highest standards of corporate governance and maintaining the highest level of integrity in discharging itsresponsibilities to protect and enhance shareholders value and the financial performance of MBSB.

In compliance with the Malaysia Securities Exchange Berhad (MSEB) Listing Requirements, the Board is pleased to make a disclosure toshareholders in the manner in which it has applied the principles of good governance and the extent to which it has complied with the best practicesset out in the Code. These principles and best practices have been applied throughout the year ended 31 December 2003 and are regularly auditedand reviewed to ensure transparency and accountability.

BOARD OF DIRECTORS

Boards’ Responsibility

The Board of Directors is the ultimate decision making body. It has the overall responsibility for corporate governance, strategic direction andoverseeing the operations of MBSB to enhance the long-term shareholders value.

The Board of Directors meet on monthly basis with special meetings held in between when urgent issues and important decisions are required to betaken.

During the financial year ended 31 December 2003, the Board met on twelve (12) occasions where it deliberated and considered significant mattersof MBSB such as the financial results, business plan, corporate plan, debt restructuring and other corporate proposals and announcements of thefinancial results prior to releasing to MSEB.

The number of Directors’ meetings and attendance for the financial year ended 31 December 2003 are as follows:

Name of Directors No. off Meetings attended

YBhg Tan Sri Abdul Halim bin Ali 11 out of 12YBhg Datuk Haji A. Rahim bin Abdullah 11 out of 12YBhg Datuk Azlan Zainol 12 out of 12YBhg Dato’ Abdul Hamidy bin Abdul Hafiz 5 out of 6 (resigned w.e.f. 1/7/2003)Encik Lau Tiang Hua 12 out of 12Tuan Syed Zaid bin Syed Jaffar Albar 10 out of 12 Puan Tan Ler Chin 12 out of 12YBhg Datuk Abdullah bin Kuntom 3 out of 4(appointed w.e.f. 29/9/2003)

Scheduled Board Meetings are structured with a pre-set agenda. The Board’s principal focus is the overall strategic direction, financial and corporatedevelopment of MBSB. Minutes of meetings of the various committees of MBSB are tabled to the Board for notation and/or endorsement. Agendaand Board papers are circulated to the Board prior to the Board meetings so as to give Directors time to consider and deliberate on the issues to beraised at the Board meetings. The Directors have full access to the senior management and the advice and services of the company secretaries.

In addition, the Directors may also seek independent professional advice, at MBSB’s expense, if required. Directors may also consult with theChairman and other Board members prior to seeking other independent professional advice.

Board Composition and Appointments

As at to date, the Board comprises seven (7) Directors, each with wide experience and expertise and has the profile of the required skills andattributes. The Board has a good balance with the presence of three (3) Independent Non-Executive Directors, which is in excess of the MalaysiaSecurities Exchange Berhad (MSEB) requirement of one-third and four (4) Non-Independent Non-Executive Directors. Together, the Directorsconstitute a wide range of legal, business, financial and technical experience. The mix of skills and experience is vital for the successful direction ofMBSB.

17


STAT E M E N T OF COR P OR AT E GO V E R N A N C E

The experience and expertise of the Board will ensure that the strategies proposed by the Management of MBSB are discussed and examined and willtake into account the interest of the shareholders alike in the long term.

The appointment of one (1) Director to the Board in the year 2003 to fill in a vacancy has been formalised at the Nomination Committee andadopted at the Board of Directors’ Meeting.

Training for Directors

During the financial year ended 31 December 2003, all Directors attended and successfully completed the Mandatory Accreditation Programconducted by Research Institute of Investment Analysts Malaysia (RIIAM), the training arm of the MSEB, with the exception of one newlyappointed Director who attended the Program in January 2004. The Directors will continue to undergo other relevant training programs to furtherincrease their skills and knowledge as well as to keep abreast with developments in the market place.

Board Committees

The Board has established the following Committees to assist the Board in discharging their duties, each of which has detailed terms of referenceregarding its objectives, duties and responsibilities, authority, meeting and membership.

a) Audit & Risk Management Committee

The Audit Committee of the Board was established in August 1994 in accordance with the requirements of the MSEB and it was renamed Audit &Risk Management Committee on 30th December 2002. Presently, this Committee comprises three (3) members of the Board, all of whom areIndependent Non-Executive Directors. This Committee comprises of Directors, namely a member of the Malaysian Institute of Accountants (MIA),a qualified legal practitioner and an Architect registered with the Board of Architects. The Committee is authorised by the Board to review andarticulate the strategies and policies relating to all risks and to ensure that risk policies and procedures are aligned to the business strategies and riskreturn directions of the Board and are properly implemented.

During the year ended 31 December 2003, eight (8) meetings were held. The members of the Audit and Risk Management Committee during theyear and their attendance at the meetings are as follows:

Name of members No. of meetings held

Encik Lau Tiang Hua(Chairman of Audit and Risk Management Committee) 8 of 8YBhg Datuk A. Rahim bin Abdullah 7 of 8Tuan Syed Zaid bin Syed Jaffar Albar 8 of 8

b) Nomination Committee

The Nomination Committee was set up consisting of three (3) Independent Non-Executive Directors. The terms of reference of this Committee wasapproved and adopted by the Board on 24 September 2001.

The principal functions of the Committee are to make recommendations of candidates for directorship, reviewing the Board’s composition in termsof the mix of responsibilities, skills and experience, recommendation on the appointment of Chief Executive Officer and key senior managementofficers, as well as assessing the effectiveness of individuals and their performances.

During the year ended 31 December 2003, three (3) meetings were held. The members of the Nomination Committee during the year and theirattendance at the meetings are as follows:

ANNUAL REPORT 2003 LAPORAN TAHUNAN

18


YBhg Datuk A. Rahim bin Abdullah (Chairman of Nomination Committee) 3 of 3Encik Lau Tiang Hua 3 of 3Tuan Syed Zaid bin Syed Jaffar Albar 2 of 3

c) Remuneration Committee

The Remuneration Committee was set up consisting of three (3) Independent Non-Executive Directors. The terms of reference of this Committeewas approved and adopted by the Board on 24th September 2001.

The Committee recommends to the Board the remuneration of the Directors, Chief Executive Officer and key Senior Management Officers.

During the year ended 31 December 2003, three (3) meetings were held. The members of the Remuneration Committee during the year and theirattendance at the meetings are as follows:


YBhg Datuk A. Rahim bin Abdullah (Chairman of Remuneration Committee) 3 of 3Encik Lau Tiang Hua 3 of 3Tuan Syed Zaid bin Syed Jaffar Albar 2 of 3

d) Arrears Recovery Committee

This committee was set up consisting of one (1) Independent Non-Executive Director and two (2) Non-Independent Non-Executive Directors. Theterms of reference of this Committee was approved and adopted by the Board on 14th January 2002.

The principal function is to decide on the restructuring of the non-performing loans and the strategy to be adopted in recovery process.

During the year ended 31 December 2003, nine (9) meetings were held. The members of the Arrears Recovery Committee during the year and theirattendance at the meetings are as follows:


YBhg Datuk Azlan Zainol(Chairman of Arrears & Recovery Committee - stepped down as chairman and member w.e.f. 1.8.2003) 5 of 5Encik Lau Tiang Hua (Chairman of Arrears & Recovery Committee- appointed w.e.f. 1.8.2003) 4 of 7

Puan Tan Ler Chin 7 of 9Tuan Syed Zaid bin Syed Jaffar Albar(appointed w.e.f. 1.8.2003) 3 of 4YBhg Dato’ Abdul Hamidy bin Abdul Hafiz(resigned w.e.f. 1.7.2003) 3 of 4

19



20

e) ESOS Committee

The ESOS Committee was established on 1 August 2003 to administer the MBSB Employees’ Share Option Scheme in accordance with theobjectives and regulations thereof and to determine participation, eligibility, option offers and share allocations and to attend to such other matters asmay be required. The Committee consists of two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive Director.

During the year ended 31 December 2003, one (1) meeting was held and attended by members of the ESOS Committee.

The ESOS Committee is headed by YBhg Datuk A. Rahim bin Abdullah. The other members are Tuan Syed Zaid bin Syed Jaffar Albar and PuanTan Ler Chin.

DIRECTORS REMUNERATION

The remuneration of Directors is determined at levels that enable MBSB to attract and retain the Directors with the relevant experience andexpertise needed to assist in managing MBSB effectively.

The Chairman and all Independent Non-Executive Directors receive annual fees and meeting allowances. MBSB reimburses reasonable expensesincurred by these Directors in the course of their duties as Directors.

The Directors’ fee payable is subject to the approval at this Annual General Meeting. However, meeting allowance has been paid for the financial year2003 based on the sum approved at the AGM.

SHAREHOLDERS

To enable the Board and Management to communicate effectively with its shareholders and the public generally, MBSB Annual General Meetingserves as a principal forum for dialogue.

The shareholders attend the General Meetings to approve the resolutions proposed and members of the Board and the Chief Executive Officer areavailable to answer queries from these members as well as the media.

MBSB continues to make announcements to MSEB to ensure shareholders and investing public have access to information pertaining to the activitiesof MBSB. Apart from the mandatory public announcements through MSEB for the financial results and corporate development, shareholders canliaise with the Company Secretary for other information.

ACCOUNTABILITY AND AUDIT

Financial Reporting

The Board is required by the Companies Act, 1965 to prepare financial statements for each financial year to give a true and fair view of the state ofaffairs of MBSB.

The Board takes responsibility for presenting a fair assessment of MBSB’s operations and financial statements released to the shareholders.

The Board is responsible to ensure that MBSB keeps proper accounting records, which disclose with reasonable accuracy the financial position ofMBSB and which enable them to ensure that the financial statements comply with the Companies Act, 1965 and other regulatory requirements.

Relationship with Auditors

The information on the role of the Audit & Risk Management Committee in relation to the external auditors may be found in the Report on AuditCommittee. The Company has always maintained a close and transparent relationship with its auditors in seeking professional advice and ensuringcompliance with the accounting standards in Malaysia.

21


STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES OF THE CODE

The Company is wholly committed to maintaining high standards of corporate governance and to the highest level of integrity and ethical standardsin all its business dealings.

The Board is also in compliance with the items set out in Part A of Appendix 9C of the Listing Requirements of the Malaysia Securities ExchangeBerhad in relation to the separate disclosure in the annual report.

This statement is made in accordance with the resolution of the Board of Directors dated 27 February 2004.

Lembaga adalah komited untuk memastikan standard tertinggi urus tadbir korporat dan mengekalkan tahap integriti tertinggi dalam melaksanakantanggungjawabnya untuk melindungi dan mempertingkatkan nilai pemegang-pemegang saham dan prestasi kewangan MBSB.

Dalam pematuhan Syarat-syarat Penyenaraian Malaysia Securities Exchange Berhad (MSEB), Lembaga dengan sukacitanya membuat pendedahankepada pemegang-pemegang saham dalam cara dalam mana ia telah menggunakan prinsip-prinsip urus tadbir yang baik dan tahap sehingga manayang ia telah mematuhi amalan-amalan terbaik dalam Kod. Prinsip-prinsip dan amalan-amalan terbaik ini telah digunakan sepanjang tahun berakhir31 Disember 2003 dan diaudit dan dikaji secara kerap untuk memastikan ketelusan dan kebertanggungjawaban.

LEMBAGA PENGARAH

Tanggungjawab Lembaga

Lembaga Pengarah adalah badan induk membuat keputusan. Ia mempunyai tanggungjawab keseluruhan bagi urus tadbir korporat, hala tujustrategik dan penyeliaan operasi MBSB untuk mempertingkatkan nilai pemegang-pemegang saham jangka panjang.

Lembaga Pengarah bermesyuarat atas dasar bulanan dengan mesyuarat khas diadakan apabila isu-isu penting dan keputusan penting perlu diambil.

Dalam tahun kewangan berakhir 31 Disember 2003, Lembaga bermesyuarat sebanyak dua belas (12) kali di mana ia membincang dan menimbangperkara-perkara MBSB seperti keputusan kewangan, rancangan perniagaan, rancangan korporat, penyusunan semula hutang dan cadangankorporat yang lain serta pengumuman keputusan kewangan sebelum dikemukakan kepada MSEB.

Bilangan mesyuarat Pengarah dan kehadiran bagi tahun kewangan berakhir 31 Disember 2003 adalah seperti berikut:

Nama Pengarah Bil. Mesyuarat dihadiri

YBhg Tan Sri Abdul Halim bin Ali 11 daripada 12YBhg Datuk Haji A. Rahim bin Abdullah 11 daripada 12YBhg Datuk Azlan Zainol 12 daripada 12YBhg Dato’ Abdul Hamidy bin Abdul Hafiz (meletak jawatan berkuatkuasa 1/7/2003) 5 daripada 6Encik Lau Tiang Hua 12 daripada 12Tuan Syed Zaid bin Syed Jaffar Albar 10 daripada 12 Puan Tan Ler Chin 12 daripada 12YBhg Datuk Abdullah bin Kuntom (dilantik berkuatkuasa 29/9/2003) 3 daripada 4

Mesyuarat Lembaga Berjadual disusun dengan agenda yang telah ditetapkan terlebih dahulu. Tumpuan utama Lembaga adalah hala tuju strategikkeseluruhan, kewangan dan pembangunan korporat MBSB. Minit-minit mesyuarat pelbagai jawatankuasa MBSB dibentangkan kepada Lembagauntuk catatan dan/atau pengindorsan. Agenda dan kertas Lembaga diedarkan kepada Lembaga sebelum mesyuarat Lembaga untuk memberi paraPengarah masa untuk menimbang dan membincang mengenai isu-isu yang akan ditimbulkan dalam mesyuarat-mesyuarat Lembaga. Para Pengarahakan mempunyai akses penuh kepada pengurusan kanan dan nasihat dan perkhidmatan setiausaha syarikat.

Selain itu, para Pengarah boleh juga meminta nasihat profesional bebas, atas perbelanjaan MBSB, sekiranya diperlukan. Para Pengarah boleh jugaberunding dengan Pengerusi dan ahli Lembaga yang lain sebelum meminta nasihat profesional bebas lain.

Komposisi Lembaga dan Pelantikan

Sehingga kini, Lembaga terdiri daripada tujuh (7) Pengarah, setiap seorang dengan pengalaman dan kepakaran yang luas dan mempunyai profilkepakaran dan sifat-sifat yang diperlukan. Lembaga mempunyai imbangan yang baik dengan kehadiran tiga (3) Pengarah Bukan Eksekutif Bebas,yang melebihi syarat-syarat satu pertiga Malaysia Securities Exchange Berhad dan empat (4) Pengarah Bukan Eksekutif Bukan Bebas. Bersama-sama,para Pengarah terdiri daripada mereka yang mempunyai rangkaian pengalaman yang luas meliputi undang-undang, perniagaan, kewangan danteknikal. Gabungan kepakaran dan pengalaman adalah penting bagi kejayaan hala tuju MBSB.


22

PE N YATA UR U S TA D B I R KOR P OR AT

Pengalaman dan kepakaran Lembaga akan memastikan bahawa strategi-strategi yang dicadangkan oleh Pengurusan MBSB dibincang dan diteliti danakan mengambil kira kepentingan pemegang-pemegang saham dalam jangka masa panjang.

Pelantikan seorang (1) Pengarah ke Lembaga dalam tahun 2003 untuk mengisi kekosongan telah diformalkan pada peringkat Jawatankuasa Pelantikandan diterima dalam Mesyuarat Lembaga Pengarah.

Latihan untuk para Pengarah

Dalam tahun kewangan berakhir 31 Disember 2003, semua Pengarah telah menghadiri dan menamatkan dengan jayanya Program AkreditasiMandatori yang dikendalikan oleh Research Institute of Investment Analysts Malaysia (RIIAM), cabang latihan Malaysia Securities ExchangeBerhad, dengan pengecualian seorang Pengarah yang baru dilantik yang menghadiri Program pada Januari 2004. Para Pengarah akan terusmenjalani lain-lain program latihan berkenaan untuk mempertingkatkan lagi kemahiran dan pengetahuan mereka serta sentiasa mengikutiperkembangan-perkembangan dalam tempat pasaran.

Jawatankuasa Lembaga

Lembaga telah menubuhkan Jawatankuasa yang berikut untuk membantu Lembaga dalam melaksanakan kewajipan mereka, setiap satu mempunyaibidang tugas yang terperinci berhubung dengan objektif, kewajipan dan tanggungjawab, kuasa, mesyuarat dan keahlian.

a) Jawatankuasa Audit Pengurusan & Risiko

Jawatankuasa Audit Lembaga telah ditubuhkan pada bulan Ogos 1994 selaras dengan syarat-syarat MSEB dan ia telah dinamakan semulaJawatankuasa Audit dan Pengurusan Risiko pada 30 Disember 2002. Pada masa ini Jawatankuasa ini terdiri daripada tiga (3) ahli Lembaga, yangkesemuanya adalah Pengarah Bukan Eksekutif Bebas. Jawatankuasa ini terdiri daripada para Pengarah yang merupakan ahli Institut AkauntanMalaysia (MIA), pengamal undang-undang berkelayakan dan seorang Arkitek berdaftar dengan Lembaga Arkitek. Jawatankuasa diberi kuasa olehLembaga untuk mengkaji dan menyatakan dengan jelas strategi dan dasar-dasar berhubung dengan semua risiko dan untuk memastikan bahawapolisi dan prosedur risiko adalah sejajar dengan strategi perniagaan dan arahan penyeliaan risiko Lembaga dan dilaksanakan dengan sewajarnya.

Dalam tahun berakhir 31 Disember 2003, lapan (8) mesyuarat telah diadakan. Ahli-ahli Jawatankuasa Audit Pengurusan dan Risiko dalam tahun dankehadiran mereka dalam mesyuarat adalah seperti berikut:

Nama ahli Bil. mesyuarat diadakan

Encik Lau Tiang Hua(Pengerusi Jawatankuasa Audit dan Pengurusan Risiko) 8 daripada 8YBhg Datuk A. Rahim bin Abdullah 7 daripada 8Tuan Syed Zaid bin Syed Jaffar Albar 8 daripada 8

b) Jawatankuasa Pelantikan

Jawatankuasa Pelantikan telah ditubuhkan terdiri daripada tiga (3) Pengarah Bukan Eksekutif Bebas. Bidang tugas Jawatankuasa ini telah diluluskandan diterima pakai oleh Lembaga pada 24 September 2001.

Fungsi utama Jawatankuasa adalah untuk membuat pengesyoran calon-calon bagi jawatan pengarah, mengkaji komposisi Lembaga dari segicampuran tanggungjawab, kepakaran dan pengalaman, pengesyoran mengenai pelantikan Ketua Pegawai Eksekutif dan pegawai pengurusankanan penting, serta menilai keberkesanan individu-individu dan prestasi mereka.

Dalam tahun berakhir 31 Disember 2003, tiga (3) mesyuarat telah diadakan. Ahli-ahli Jawatankuasa Pelantikan dalam tahun dan kehadiranmereka dalam mesyuarat adalah seperti berikut:

23



24


YBhg Datuk A. Rahim bin Abdullah (Pengerusi Jawatankuasa Pelantikan) 3 daripada 3Encik Lau Tiang Hua 3 daripada 3Tuan Syed Zaid bin Syed Jaffar Albar 2 daripada 3

c) Jawatankuasa Imbuhan

Jawatankuasa Imbuhan telah ditubuhkan terdiri daripada tiga (3) Pengarah Bukan Eksekutif Bebas. Bidang tugas Jawatankuasa ini telah diluluskan dan diterima pakai oleh Lembaga pada 24 September 2001.

Jawatankuasa mengesyorkan kepada Lembaga imbuhan para Pengarah, Ketua Pegawai Eksekutif dan Pegawai Pengurusan Kanan Penting.

Dalam tahun berakhir 31 Disember 2003, tiga (3) mesyuarat telah diadakan. Ahli-ahli Jawatankuasa Imbuhan dalam tahun dan kehadiran merekadalam mesyuarat adalah seperti berikut:


YBhg Datuk A. Rahim bin Abdullah (Pengerusi Jawatankuasa Imbuhan) 3 daripada 3Encik Lau Tiang Hua 3 daripada 3Tuan Syed Zaid bin Syed Jaffar Albar 2 daripada 3

d) Jawatankuasa Pemungutan

Jawatankuasa ini telah ditubuhkan terdiri daripada seorang (1) Pengarah Bukan Eksekutif Bebas dan dua (2) Pengarah Bukan Eksekutif BukanBebas. Bidang-bidang tugas Jawatankuasa ini telah diluluskan dan diterima pakai oleh Lembaga pada 14 Januari 2002.

Fungsi utama adalah untuk memutuskan mengenai penyusunan semula pinjaman tidak berbayar dan strategi yang akan diambil dalam prosespemungutan.

Dalam tahun berakhir 31 Disember 2003, sembilan (9) mesyuarat telah diadakan. Ahli-ahli Jawatankuasa Pemungutan Tunggakan dalam tahundan kehadiran mereka dalam mesyuarat adalah seperti berikut:


YBhg Datuk Azlan Zainol(Pengerusi Jawatankuasa Tunggakan & Pemungutan - berhenti daripada menjadi pengerusi dan ahli berkuatkuasa 1.8.2003) 5 daripada 5Encik Lau Tiang Hua (Pengerusi Jawatankuasa Tunggakan & Pemungutan - dilantik berkuatkuasa 1.8.2003) 4 daripada 7Puan Tan Ler Chin 7 daripada 9Tuan Syed Zaid bin Syed Jaffar Albar(dilantik berkuatkuasa 1.8.2003) 3 daripada 4YBhg Dato’ Abdul Hamidy bin Abdul Hafiz(meletakkan jawatan berkuatkuasa 1.7.2003) 3 daripada 4

25


e) Jawatankuasa ESOS

Jawatankuasa ESOS telah ditubuhkan pada 1 Ogos 2003 untuk mentadbir Skim Opsyen Saham Kakitangan MBSB selaras dengan objektif danperaturan berhubung dengannya dan untuk menentukan penyertaan, kelayakan, tawaran opsyen dan peruntukan saham dan untuk mengurusperkara lain yang berkenaan sebagaimana mungkin diperlukan. Jawatankuasa terdiri daripada dua (2) Pengarah Bukan Eksekutif Bebas danseorang (1) Pengarah Bukan Eksekutif Bukan Bebas.

Dalam tahun berakhir 31 Disember 2003, satu (1) mesyuarat telah diadakan dan dihadiri oleh ahli-ahli Jawatankuasa ESOS.

Jawatankuasa ESOS diketuai oleh YBhg Datuk A. Rahim bin Abdullah. Lain-lain ahli adalah Tuan Syed Zaid bin Syed Jaffar Albar dan PuanTan Ler Chin.

IMBUHAN PARA PENGARAH

Imbuhan para Pengarah ditentukan pada peringkat-peringkat yang membolehkan MBSB untuk menarik dan mengekalkan Pengarah-pengarah yangmempunyai pengalaman dan kepakaran berkenaan yang diperlukan untuk membantu dalam mengurus MBSB secara berkesan.

Pengerusi dan semua Pengarah Bukan Eksekutif menerima yuran tahunan dan elaun mesyuarat. MBSB membayar balik perbelanjaan munasabahyang ditanggung oleh Pengarah-pengarah ini dalam menjalankan kewajipan mereka sebagai Pengarah-pengarah.

Yuran para Pengarah perlu dibayar adalah tertakluk kepada kelulusan Mesyuarat Agung ini. Walau bagaimanapun, elaun mesyuarat telah dibayarbagi tahun kewangan 2003 berdasarkan jumlah yang diluluskan dalam AGM.

PEMEGANG-PEMEGANG SAHAM

Untuk membolehkan Lembaga dan Pengurusan berkomunikasi secara berkesan dengan pemegang-pemegang sahamnya dan orang-orang awamsecara am, Mesyuarat Agung Tahunan MBSB bertindak sebagai forum utama untuk berdialog.

Pemegang-pemegang saham menghadiri Mesyuarat Agung untuk meluluskan resolusi yang dicadangkan dan ahli-ahli Lembaga dan Ketua PegawaiEksekutif bersedia untuk menjawab pertanyaan ahli-ahli ini serta media.

MBSB berterusan membuat pengumuman kepada MSEB untuk memastikan pemegang-pemegang saham dan pelabur-pelabur awam mengaksesmaklumat berhubung dengan kegiatan-kegiatan MBSB. Selain daripada pengumuman awam melalui MSEB bagi keputusan kewangan danpembangunan korporat, pemegang-pemegang saham boleh berurusan dengan Setiausaha Syarikat untuk maklumat lain.

KEBERTANGGUNGJAWABAN DAN AUDIT

Pelaporan Kewangan

Lembaga diperlukan oleh Akta Syarikat, 1965 untuk menyediakan penyata-penyata kewangan bagi setiap tahun kewangan, yang memberi gambaransebenar dan adil tentang hal-ehwal MBSB.

Lembaga bertanggungjawab bagi membentangkan penilaian adil mengenai operasi dan penyata kewangan MBSB yang dikeluarkan kepadapemegang-pemegang saham.

Lembaga bertanggungjawab untuk memastikan bahawa MBSB menyimpan rekod-rekod perakaunan sewajarnya, yang mendedahkan denganketepatan munasabah akan kedudukan kewangan MBSB dan yang membolehkan mereka untuk memastikan bahawa penyata-penyata kewanganmematuhi Akta Syarikat, 1965 dan lain-lain syarat-syarat berperaturan.

Hubungan dengan Juruaudit

Maklumat mengenai peranan Jawatankuasa Audit & Pengurusan Risiko berhubung dengan juruaudit-juruaudit luar boleh didapati dalam Laporanke atas Jawatankuasa Audit. Syarikat sentiasa mengekalkan hubungan rapat dan telus dengan juruaudit-juruaudit dalam mendapatkan nasihatprofesional dan memastikan pematuhan piawaian perakaunan di Malaysia.


26

PENYATA PEMATUHAN DENGAN AMALAN TERBAIK KOD

Syarikat secara keseluruhannya komited untuk mengekal standard tinggi urus tadbir korporat dan tahap ketelusan dan standard etika tertinggi dalamsemua urusniaga perniagaannya.

Lembaga juga mematuhi perkara-perkara dinyatakan dalam Bahagian A Lampiran 9C Syarat-syarat Penyenaraian Malaysia Securities ExchangeBerhad (MSEB) berhubung dengan pendedahan berasingan dalam laporan tahunan.

Penyata ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 27 Februari 2004.

27


STAT E M E N T O N IN T E R N A L CO N T R OL

INTRODUCTION

The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of internal control to safeguard shareholders’investments and the Group’s assets. The Malaysia Securities Exchange Berhad (MSEB) Revamp Listing Requirements require directors of listedCompanies to include a statement in annual reports on the state of their internal controls as a Group. The Statement on Internal Control has beenprepared in accordance with the MSEB’s Statement on Internal Control: Guidance for Directors of Public Listed Companies.

RESPONSIBILITY OF INTERNAL CONTROL

The Board of Directors recognises the importance of sound internal controls and risk management practices to good corporate governance. Theoverall responsibility for reviewing the adequacy and integrity of the Group’s system of internal control is affirmed by the Board.

The Board of Directors (Board) of MBSB has overall responsibility for the Group’s system of internal controls covering all controls, includingfinancial, operational and compliance controls and risk management necessary for the Group to achieve its objective within an acceptable risk profile.

The Board has addressed the system of internal control throughout the Group to safeguard shareholders’ investment and Company’s assets fromfurther deterioration.

A system of internal control provides a mechanism to facilitate assessment of effective and efficient operation and ensure compliance with law andregulations as well as with internal procedures and guidelines.

The system of internal control is also designed to safeguard the assets of the Group to ensure the maintenance of proper accounting records and to provide reliable financial information for use within the business and for publication. The Board meets monthly to review the financial performanceof the Group.

Notwithstanding this, ongoing reviews are continuously carried out to ensure the effectiveness of the system and to establish shareholders’ andstakeholders’ confidence. This is to ensure that the reviews are consistent with the overall Group’s objectives. Such systems are designed to mitigaterather than eliminate risks because of limitations that are inherent in any system of internal control. Accordingly this system can only provide areasonable but not absolute assurance against loss and fraud or breach of set regulations.

A risk management framework has been established with the following objectives:

i. To manage the significant risks faced by the Group through a continuous systematic risk mapping process for identifying, quantifying andevaluating risk.

ii. Establish a documented process of control monitoring and improvement plans.

These processes have been undertaken since financial year 2002 and have continued up to the date this statement was approved.

KEY ELEMENTS OF INTERNAL CONTROL

COMMITTEES ESTABLISHED

Specific responsibilities have been delegated to relevant Board Committees and Supervisory Committees, all of which have written terms of reference.These committees have the authority to examine all matters within their scope of responsibilities and report back to the Board with theirrecommendations for the Board’s decision. Set out below are the relevant Committees:

Audit & Risk Management Committee (ARMCO)

The Audit & Risk Management Committee is represented by three (3) Independent Non-Executive Directors and one (1) Non-IndependentNon-Executive Director. The Committee convened eight times during the year under review.

The Committee oversees the financial reporting and internal control system of the Group. Its functions would provide an independent assessmentof adequacy of risk management practice. Significant breaches and risk identified is deliberated and addressed by the Committee.


28

Arrears Recovery Committee (ARC)

This Committee comprises two (2) Independent Non-Executive Directors and one (1) Non-Independent Non-Executive Director.

The management of credit is deliberated at the Committee. For the year under review, the Committee convened 9 times.

Key Supervisory Committees

MBSB has two (2) key supervisory management committees which are chaired by the Chief Executive Officer and one (1) executive committeewhich monitor and manage the joint venture projects, subsidiaries and joint venture companies.

• Management Committee (MANCO)

MANCO is the highest authority of reference at Management level. For the year under review the Committee convened 30 times.

• Asset and Liability Committee (ALCO)

The Committee serves as the primary oversight and decision making body that provides strategic direction for the management of assets andliabilities of the Group. For the year under review, the Committee convened 32 times.

• Executive Committee (EXCO)

This Committee assists in monitoring and making operational decisions for the joint venture projects, subsidiaries and joint venture companies.This Committee reports both to ARC and Board of Directors of MBSB Development Sdn Bhd and refers to MBSB Board of Directors on majorpolicies and financial matters. For the year under review, the Committee convened 15 times.

The Board is committed to maintaining a control conscious culture across all areas of operations through the supervisory committees and theestablished policies and guidelines.

IMPLEMENTATION OF INTEGRATED INFORMATION SYSTEM

MBSB has embarked on its core system replacement as part of the process of re-engineering MBSB’s total financial system architecture. A ProjectSteering Committee assisted by a System Consultant was set up to undertake a thorough evaluation process to choose a new core system that fulfilledkey requirements. The key requirements of the new core system are that the system is a fully integrated system, quick to deploy, informative, flexible,efficient, scalable and easy to integrate with other systems.

With the new core system, MBSB will improve the internal system processes. With its rich functionality, the system will be able to provide gooddecision support and timely reporting capability for the Management.

ORGANISATIONAL STRUCTURE AND RESPONSIBILITY LEVELS

The Group has a well defined organisational structure with a clear line of accountability and has strict authorisation, approval and control procedureswithin the senior management operations. A process of hierarchical reporting has been established which provides audit trail of accountabilities.

FORMALISED STRATEGIC PLANNING AND OPERATION PLAN PROCESSES

The Group undertakes a comprehensive business planning and budgeting process each year to establish plans and targets against which performanceis monitored on an ongoing basis. At every meeting of the Board, the actual financial performance of the Group for the previous month is comparedagainst budget.

29


INTERNAL AUDIT FUNCTION

Internal Audit Department reports to the ARMCO. The Internal Audit function includes carrying out ongoing reviews and assessing the effectivenessof the internal control and compliance. The audits conducted were in areas of finance/accounts and investigation in accordance with the approvedAudit Plan.

FINANCIAL SYSTEM AND ACCOUNTING RECORDS

The Board is responsible for ensuring the proper maintenance of accounting records of MBSB Group. The Board receives the recommendations toadopt the quarterly financial statements from the ARMCO. The ARMCO also assesses the annual financial statements with the assistance of externalauditors and makes recommendations to the Board on adoption of the annual financial statements.

The Board has deliberated on a regular basis the operational and financial impact, the internal control structure and the scope of audit workconducted by the internal and external auditors of MBSB.

The Board reviews all the Joint Venture (JV) engagements undertaken by the Group through the ARC. The Board also reviews the performance of allthe JV companies and subsidiaries through the EXCO comprising members of MBSB management. Through both ARC and EXCO, the Boardensures that operational and strategic risks are managed and monitored.

RISK MANAGEMENT

The ARMCO oversees the implementation of the functions of Risk Management through the Risk Management Department. The Risk Managementareas comprise Risk Management Framework, Corporate Governance and Compliance review and internal audit assessment.

• Risk Management Functions

i. Periodically evaluate all identified risks in the operating environment and manage risks via internal controls rolled out in the manuals.ii. Assess adequacy of action plans and control systems developed to manage risks.iii.Monitor the performance of Management in executing the action plans and monitoring the control systems.iv. Regularly reports to the ARMCO on the state of internal controls and the management of risks throughout MBSB.v. Initiate continuous improvement and progress towards best practices.

• Corporate Governance and Compliance Functions

i. Maintain a sound system of internal control.ii. Set appropriate policies to maintain the system of internal control.iii.Seek regular assurance on the effectiveness of the internal control systems.iv. Assess and ensure the adequacy of internal control and integrity of the systems in managing risks in the Group.v. Review internal control reports on a regular basis, either from Management or the Internal Audit Department and to define the scope and

frequency of reports on internal controls.vi. Consider the significant risks and assess how they have been identified, evaluated and managed and assess the adequacy and integrity of the

systems in managing risks.

MANAGEMENT OF RISK AND COMPLIANCE

The Group strives to attain best practices in risk management through the Risk Management Department which identifies, quantifies and manages thefollowing key sources of risk.

Market Risk

Market risk is the risk of loses arising from movements in market prices or conditions. It includes changes in interest rates, foreign exchange, stockprices and commodity prices. Market risk comprise of interest rate risk and liquidity risk.


30

To overcome liquidity and mismatch of funds in MBSB, the Board reviews the dynamic cashflow projections and the maturity mismatch analysison quarterly basis. The Board ensures maximisation of interest margin through effective management of interest rate and liquidity.

Credit Risk

The exposure of credit risk arises primarily from lending activities. The Management Committee deals with corporate and individual loanportfolios and makes appropriate recommendation on business strategies and credit policies to the Board. The Committee oversees allcredit-related issues including credit assessment, compliance and make recommendations on risk management.

The management of credit risk is deliberated at ARC which meets regularly. The Board is updated on the ARC deliberations at Board meetings.

The internal credit policies and guidelines guide the credit risk management processes. The manual also sets the guidelines on recovery strategiesand the credit evaluation system as well as the valuation processes to ensure consistency and adherence to best practices.

The Risk Management Department is in the process of revamping the Credit Risk Scoring System (CRSS). The CRSS will be fully integrated intothe new core system and is customised for each of MBSB’s business products. With CRSS, MBSB will be able to group its loan portfolio intodifferent risk categories and systematically grade the credit risks of individual borrowers.

Operational Risk

MBSB minimises operational risk by putting in place appropriate policies, internal controls and procedures. These are supported by independentreviews by the Internal Audit Department.

The Management has exerted continuous effort to identify company-wide operational risk and undertake measures to mitigate and monitor theidentified risks. During the year under review, the following actions were carried out:

• Reports are reviewed by Management to achieve efficiency and reduction of operating cost of the Company. The administration of the BranchOffices is centralised at Head Office and monitored by Branch Management & Retail Division.

Irregularities in the branches highlighted by the internal and external auditors have been addressed by the Board Committees.

• MBSB has also taken steps to mitigate the operational risks which may arise due to the shortcomings of the existing information system. MBSBis in the midst of implementing a new fully integrated core information system. The IT Department is responsible for the successfulimplementation and to ensure adequate infrastructure is in its place to support the efficient operation of the new core system.

• The Board also ensures that the assets and properties of MBSB are fully protected against operational risk through appropriate insurance cover.

• MBSB actively manages legal and regulatory risks to its business. These are risks of uncertainty about the source of threat i.e. legal suits that mayarise from any one of the various stakeholders connected with MBSB’s activities and breach of applicable laws and regulatory requirements.

Legal risk is minimised through consultation with internal and external legal counsel and the use of industry standard agreements for financialproducts.

Continuous efforts are undertaken to ensure standardisation, timeliness, comprehensiveness of key internal control procedures includingauthorisation, accountability, monitoring and reconciliation processes.

This statement is made in accordance with the resolution of the Board of Directors dated 27 February, 2004.

31


PE N YATA KAWA L A N DA L A M A N

PENGENALAN

Kod Malaysia mengenai Urus Tadbir Korporat memerlukan syarikat-syarikat tersenarai untuk mengekalkan sistem kawalan dalaman yang kukuhuntuk melindungi pelaburan pemegang-pemegang saham dan aset Kumpulan. Syarat-syarat Penyenaraian Diperbaharui Malaysia SecuritiesExchange Berhad (MSEB) memerlukan Pengarah Syarikat tersenarai untuk memasukkan penyata dalam laporan tahunan mengenai keadaan kawalandalaman mereka sebagai satu Kumpulan. Penyata mengenai Kawalan Dalaman telah disediakan selaras dengan Penyata mengenai Kawalan DalamanMSEB: Panduan bagi Pengarah Syarikat Tersenarai Awam.

TANGGUNGJAWAB KAWALAN DALAMAN

Lembaga Pengarah mengiktiraf kepentingan kawalan dalaman yang kukuh dan amalan pengurusan risiko kepada urus tadbir korporat yang baik.Tanggungjawab keseluruhan bagi mengkaji kecukupan dan ketelusan sistem kawalan dalaman Kumpulan disahkan oleh Lembaga.

Lembaga Pengarah (Lembaga) MBSB mempunyai tanggungjawab keseluruhan bagi sistem kawalan dalaman Kumpulan meliputi semua kawalan,termasuk kewangan, kawalan operasi dan pematuhan dan pengurusan risiko yang perlu bagi Kumpulan untuk mencapai objektifnya dalam profilrisiko yang boleh diterima.

Lembaga telah menangani sistem kawalan dalaman pada keseluruhan Kumpulan untuk melindungi pelaburan pemegang-pemegang saham dan asetSyarikat daripada merosot selanjutnya.

Sistem kawalan dalaman menyediakan mekanisme untuk memudahkan penilaian berkesan dan operasi cekap dan memastikan pematuhan denganundang-undang dan peraturan-peraturan serta prosedur dan garis panduan dalaman.

Sistem kawalan dalaman juga direka untuk melindungi aset Kumpulan untuk memastikan penyimpanan rekod perakaunan yang teratur dan untukmenyediakan maklumat kewangan boleh dipercayai bagi penggunaan dalam perniagaan dan untuk penerbitan. Lembaga bermesyuarat secarabulanan untuk mengkaji prestasi kewangan Kumpulan.

Tanpa mengambil kira ini, semakan secara berterusan dijalankan untuk memastikan keberkesanan sistem dan untuk mewujudkan keyakinanpemegang saham dan pemegang pelbagai kepentingan. Ini adalah untuk memastikan bahawa semakan adalah konsisten dengan keseluruhanobjektif Kumpulan. Sistem sedemikian direka untuk mengurangkan dan bukan untuk menghapuskan risiko-risiko disebabkan batasan-batasan yangsedia ada dalam mana-mana sistem kawalan dalaman. Selaras dengan itu sistem ini hanya boleh menyediakan jaminan munasabah bukan mutlakterhadap kerugian dan penipuan atau pelanggaran peraturan-peraturan yang ditetapkan.

Rangka kerja pengurusan risiko telah diwujudkan dengan objektif-objektif berikut:

i. Untuk menguruskan risiko-risiko penting dihadapi oleh Kumpulan melalui proses perancangan risiko sistematik berterusan untuk mengenal pasti,menyatakan kuantiti dan risiko penilaian.

ii. Mewujudkan proses pengawasan kawalan dan rancangan peningkatan didokumenkan.

Proses-proses ini telah dijalankan sejak tahun kewangan 2002 dan telah diteruskan sehingga tarikh penyata ini diluluskan.

UNSUR-UNSUR PENTING KAWALAN DALAMAN

JAWATANKUASA DITUBUHKAN

Tanggungjawab khusus telah ditugaskan kepada Jawatankuasa Lembaga dan Jawatankuasa Penasihat berkaitan, semua yang mana mempunyaibidang tugas bertulis. Jawatankuasa-jawatankuasa ini mempunyai kuasa untuk memeriksa semua perkara dalam ruang lingkup tanggungjawabmereka dan melapor balik kepada Lembaga dengan pengesyoran mereka bagi keputusan Lembaga. Dibentangkan di bawah adalah Jawatankuasa-jawatankuasa berkaitan:

Jawatankuasa Audit & Pengurusan Risiko (ARMCO)

Jawatankuasa Audit & Pengurusan Risiko diwakili oleh tiga (3) Pengarah Bukan Eksekutif Bebas dan seorang (1) Pengarah Bukan Eksekutif BukanBebas. Jawatankuasa bersidang lapan kali dalam tahun di bawah kajian.


32

Jawatankuasa menyelia pelaporan kewangan dan sistem kawalan dalaman Kumpulan. Fungsi-fungsinya akan menyediakan penilaian bebas akankecukupan amalan pengurusan risiko. Pemungkiran signifikan dan risiko yang dikenal pasti dibincangkan dan ditangani oleh Jawatankuasa.

Jawatankuasa Pemungutan Tunggakan (ARC)

Jawatankuasa ini terdiri daripada dua (2) Pengarah Bukan Eksekutif Bebas dan seorang (1) Pengarah Bukan Eksekutif Bukan Bebas.

Pengurusan kredit dibincangkan pada peringkat Jawatankuasa. Bagi tahun di bawah kajian, Jawatankuasa bersidang 9 kali.

Jawatankuasa Penyeliaan Penting

MBSB mempunyai 2 jawatankuasa pengurusan penyeliaan penting yang dipengerusikan oleh Ketua Pegawai Eksekutif dan 1 jawatankuasaeksekutif yang mengawasi dan menguruskan projek usahasama, anak-anak syarikat dan syarikat-syarikat usahasama.

• Jawatankuasa Pengurusan (MANCO)

MANCO merupakan autoriti rujukan tertinggi di Tahap Pengurusan. Bagi tahun di bawah kajian Jawatankuasa bersidang 30 kali.

• Jawatankuasa Aset dan Liabiliti (ALCO)

Jawatankuasa bertindak sebagai badan pengawasan dan pembuat keputusan utama yang menyediakan hala tuju strategik bagi pengurusan asetdan liabiliti Kumpulan. Bagi tahun di bawah kajian, Jawatankuasa bersidang 32 kali.

• Jawatankuasa Eksekutif (EXCO)

Jawatankuasa ini membantu dalam mengawasi dan membuat keputusan operasi bagi projek usahasama, anak-anak syarikat dansyarikat-syarikat usahasama. Jawatankuasa ini melapor kedua-duanya kepada ARC dan Lembaga Pengarah MBSB Development Sdn Bhd danmerujuk kepada Lembaga Pengarah MBSB mengenai polisi utama dan perkara kewangan. Bagi tahun di bawah kajian, Jawatankuasabersidang 15 kali.

Lembaga adalah komited untuk mengekalkan budaya pentingkan kawalan pada semua bidang operasi melalui jawatankuasa penyeliaan danpolisi dan garis panduan yang diwujudkan.

PELAKSANAAN SISTEM MAKLUMAT BERSEPADU

MBSB telah memulakan penggantian sistem terasnya sebagai sebahagian daripada proses pembinaan semula senibina sistem kewangan keseluruhanMBSB. Jawatankuasa Pemandu Projek dibantu oleh Perunding Sistem telah ditubuhkan untuk menjalankan proses penilaian teliti untuk memilihsistem teras baru yang memenuhi syarat-syarat penting. Syarat-syarat penting sistem teras baru adalah bahawa sistem adalah sistem bersepadusepenuhnya, pantas untuk digunakan, bermaklumat, fleksibel, cekap, boleh diukur dan mudah untuk bersepadu dengan sistem-sistem lain.

Dengan sistem teras baru, MBSB akan meningkatkan proses sistem dalaman. Dengan pelbagai kefungsiannya, sistem akan berupaya untukmenyediakan sokongan keputusan yang baik dan keupayaan pelaporan yang tepat pada masa untuk Pengurusan.

STRUKTUR ORGANISASI DAN TAHAP TANGGUNGJAWAB

Kumpulan mempunyai struktur organisasi terperinci dengan garisan jelas kebertanggungjawapan dan mempunyai prosedur kebenaran, kelulusan dankawalan yang ketat dalam operasi pengurusan kanan. Proses pelaporan hirarki telah diwujudkan yang menyediakan jejak audit kepadakebertanggungjawapan.

33


PROSES PERANCANGAN STRATEGIK DAN RANCANGAN OPERASI FORMAL

Kumpulan melaksanakan perancangan perniagaan dan proses bajet komprehensif setiap tahun untuk mewujudkan rancangan dan sasaran terhadapmana prestasi diawasi atas dasar berterusan. Pada setiap mesyuarat Lembaga, prestasi kewangan sebenar Kumpulan bagi tahun sebelumnyadibandingkan dengan bajet.

FUNGSI AUDIT DALAMAN

Jabatan Audit Dalaman bertanggungjawab kepada ARMCO. Fungsi Audit Dalaman termasuklah menjalankan kajian berterusan dan menilaikeberkesanan kawalan dalaman dan pematuhan. Audit yang dilaksanakan adalah dalam bidang kewangan/akaun dan penyiasatan selaras denganRancangan Audit yang diluluskan.

SISTEM KEWANGAN DAN REKOD PERAKAUNAN

Lembaga bertanggungjawab bagi memastikan penyelenggaraan mampan rekod perakaunan Kumpulan MBSB. Lembaga menerima pengesyoranuntuk menerima pakai penyata kewangan suku tahunan daripada ARMCO. ARMCO juga menilai penyata kewangan tahunan dengan bantuanjuruaudit luar dan membuat pengesyoran kepada Lembaga mengenai penerimaan pakai penyata kewangan tahunan.

Lembaga telah membincang atas secara tetap kesan operasi dan kewangan, struktur kawalan dalaman dan ruang lingkup kerja audit dikendalikan olehjuruaudit dalaman dan luar MBSB.

Lembaga semua pengaturan Usahasama (JV) dijalankan oleh Kumpulan melalui ARC. Lembaga juga mengkaji prestasi semua syarikat dan anaksyarikat JV melalui ahli-ahli EXCO terdiri daripada ahli-ahli pengurusan MBSB. Melalui kedua-dua ARC dan EXCO, Lembaga memastikan bahawarisiko operasi dan strategik diuruskan dan diawasi.

PENGURUSAN RISIKO

ARMCO menyelia pelaksanaan fungsi Pengurusan Risiko melalui Jabatan Pengurusan Risiko. Bidang Pengurusan Risiko terdiri daripada RangkaKerja Pengurusan Risiko, Urus Tadbir Korporat dan penyemakan Pematuhan dan penilaian audit dalaman.

• Fungsi Pengurusan Risiko

i. Menilai secara berkala semua risiko yang dikenal pasti dalam persekitaran pengendalian dan menguruskan risiko melalui kawalan dalamandinyatakan dalam manual.

ii. Menilai kecukupan rancangan tindakan dan sistem kawalan dibangunkan untuk menguruskan risiko-risiko. iii. Mengawasi prestasi pengurusan dalam menjalankan rancangan tindakan dan mengawasi sistem kawalan.iv. Melapor secara kerap kepada ARMCO mengenai keadaan kawalan dalaman dan pengurusan risiko pada keseluruhan MBSB.v. Memulakan peningkatan berterusan dan menuju ke arah amalan terbaik.

• Fungsi Urus Tadbir Korporat dan Pematuhan

i. Mengekalkan sistem kawalan dalaman yang kukuh. ii. Menetapkan polisi sewajarnya untuk mengekalkan sistem kawalan dalaman.iii. Mendapatkan jaminan kerap mengenai keberkesanan sistem kawalan dalaman.iv. Menilai dan memastikan kecukupan kawalan dalaman dan ketelusan sistem dalam menguruskan risiko dalam Kumpulan.v. Mengkaji laporan kawalan dalaman atas dasar kerap, sama ada daripada Pengurusan atau Jabatan Audit Dalaman dan untuk menyatakan ruang

lingkup dan kekerapan laporan mengenai kawalan dalaman. vi. Menimbangkan risiko-risiko signifikan dan menilai bagaimana risiko-risiko ini dikenal pasti, dinilai dan diuruskan dan menilai kecukupan dan

ketelusan sistem dalam menguruskan risiko.


34

PENGURUSAN RISIKO DAN PEMATUHAN

Kumpulan berusaha untuk mencapai amalan terbaik dalam pengurusan risiko melalui Jabatan Pengurusan Risiko yang mengenal pasti, menyatakankuantiti dan menguruskan sumber penting risiko berikut.

Risiko Pasaran

Risiko pasaran adalah risiko kerugian yang timbul daripada pergerakan dalam harga atau keadaan pasaran. Ia termasuklah perubahan dalam kadarfaedah, pertukaran asing, harga stok dan harga komoditi. Risiko pasaran terdiri daripada risiko kadar faedah dan risiko kecairan.

Untuk mengatasi kecairan dan ketakpadanan dana dalam MBSB, Lembaga mengkaji unjuran aliran tunai dinamik dan analisis ketakpadanankematangan atas dasar suku tahunan. Lembaga memastikan pemaksimuman margin faedah melalui pengurusan berkesan kadar faedah dankecairan.

Risiko Kredit

Keterdedahan risiko kredit timbul terutamanya daripada kegiatan pemberian pinjaman. Jawatankuasa Pengurusan berurusan dengan portfoliopinjaman korporat dan individu dan membuat pengesyoran sewajarnya mengenai strategi perniagaan dan polisi kredit kepada Lembaga.Jawatankuasa menyelia semua isu berkaitan kredit termasuk penilaian kredit, pematuhan dan membuat pengesyoran mengenai pengurusan risiko.

Pengurusan risiko kredit dibincangkan pada peringkat ARC yang bermesyuarat secara tetap. Lembaga dimaklumkan mengenai perbincangan ARCpada mesyuarat Lembaga.

Polisi dan garis panduan kredit dalaman memberi panduan kepada proses pengurusan risiko kredit. Manual juga menetapkan garis panduanmengenai strategi pemungutan dan sistem penilaian kredit serta proses penilaian untuk memastikan kekonsistenan dan pematuhan amalanterbaik.

Jabatan Pengurusan Risiko adalah dalam proses memperbaharui Sistem Penskoran Risiko Kredit (CRSS). CRSS akan disepadukan sepenuhnyake dalam sistem teras baru dan disesuaikan bagi setiap produk perniagaan MBSB. Dengan CRSS, MBSB akan berupaya untuk mengumpulkanportfolio pinjamannya kepada kategori risiko yang berbeza dan secara sistematik menggred risiko kredit peminjam individu.

Risiko Operasi

MBSB meminimumkan risiko operasi dengan menyediakan polisi, kawalan dan prosedur dalaman sewajarnya. Ini disokong oleh kajian bebas olehJabatan Audit Dalaman.

Pengurusan telah menekankan usaha berterusan untuk mengenal pasti risiko operasi pada keseluruhan Syarikat dan mengambil langkah berjaga-jaga untuk mengurangkan dan mengawasi risiko-risiko yang dikenal pasti. Dalam tahun di bawah kajian, tindakan-tindakan berikut telahdijalankan:

• Laporan dikaji oleh Pengurusan untuk mencapai kecekapan dan pengurangan kos pengendalian Syarikat. Pentadbiran Pejabat Cawangandipusatkan di Ibu Pejabat dan diawasi oleh Bahagian Pengurusan & Runcit Cawangan.

Luaraturan dalam cawangan ditonjolkan oleh juruaudit dalaman dan luar telah ditangani oleh Jawatankuasa Lembaga.

• MBSB juga telah mengambil langkah-langkah untuk mengurangkan risiko operasi yang mungkin timbul akibat daripada kelemahan sistemmaklumat sedia ada. MBSB sedang dalam proses melaksanakan sistem maklumat teras baru bersepadu sepenuhnya. Jabatan ITbertanggungjawab bagi kejayaan pelaksanaan dan untuk memastikan infrastruktur secukupnya disediakan untuk menyokong kecekapan operasisistem teras baru.

35


• Lembaga juga memastikan bahawa aset dan harta MBSB dilindungi sepenuhnya terhadap risiko operasi melalui perlindungan insuranssewajarnya.

• MBSB secara aktif menguruskan risiko undang-undang dan berperaturan kepada perniagaannya. Ini adalah risiko ketakpastian tentangsumber ancaman iaitu tindakan undang-undang yang mungkin timbul daripada salah satu daripada beberapa pemegang pelbagai kepentinganberkaitan dengan kegiatan MBSB dan pelanggaran undang-undang dan syarat-syarat berperaturan terpakai.

Risiko undang-undang diminimumkan melalui perundingan dengan peguam undang-undang dalaman dan luar dan penggunaan perjanjianstandard industri bagi produk kewangan.

Usaha berterusan diambil untuk memastikan keseragaman, ketepatan masa, kekomprehensifan prosedur kawalan dalaman penting termasukautorisasi, kebertanggungjawapan, pengawasan dan proses penyelarasan.

Penyata ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 27 Februari, 2004.


36

RE P ORT O N AU D I T CO M M I T T E E

The Board through Audit Committee recommendation had on 30 December 2002 approved Audit Committee to be renamed as the Audit & RiskManagement Committee (the Committee) effective 2003 in accordance to the Corporate Governance. This Committee is to assist, support andimplement the Board’s responsibility in discharging its duty in maintaining a sound system of internal controls to safeguard shareholders’ investmentand the Company’s asset.

The Committee comprise the following directors:

MEMBERS

ChairmanEncik Lau Tiang Hua(Independent Non-Executive Director)

YBhg Datuk Haji A. Rahim bin Abdullah(Independent Non-Executive Director)

Tuan Syed Zaid bin Syed Jaffar Albar(Independent Non-Executive Director)

TERMS OF REFERENCE

1. Objectives

The primary objectives of the Committee are to:

i. Assist the Board of Directors in fulfilling its fiduciary responsibilities particularly in the areas of accounting and management controls andfinancial reporting;

ii. Reinforce the independence and objectivity of the Internal Audit Department and Risk Management Department;iii. Provide the focal point for communication between external auditors, internal auditors, Directors and the Management on matters in

connection with accounting, reporting and controls and providing a forum for discussion independent of the Management; andiv. Undertake such additional duties as may be appropriate and necessary to assist the Board of Directors.

2. Rights

The Committee shall:

i. Have authority to investigate any matter within its terms of reference;ii. Have the resources which are required to perform its duties;iii. Have full and unrestricted access to any information pertaining to the Company and the Group;iv. Have direct communication channels with both the external auditors, and internal auditors and risk managers;v. Be able to obtain independent professional or other advice; andvi. Be able to convene meetings with the external auditors, excluding the attendance of the executive members of the Committee, whenever

deemed necessary.

3. Duties and Responsibilities

The following are the main duties and responsibilities of the Committee:

i. To review with the external auditors their audit plan, scope and nature of the audit;ii. To review with the external auditors, their audit report and audit findings and the Management’s response thereto;

iii. To review the assistance given by the employees of the Company and Group to the external auditors;iv. To review the adequacy of the scope, functions and resources of the Internal Audit Department and Risk Management Department, and that

it has the necessary authority to carry out its work;v. To review the internal audit programme, process, the results of the internal audit programme, processes or investigation undertaken and

whether or not appropriate action is taken on the recommendation of the Internal Audit Department;vi. To review the Group’s quarterly financial statements and reports and the Group’s and the Company’s annual financial statements before

submission to the Board of Directors for approval, focusing on:-(a) any changes in accounting policies and practices,(b) significant adjustments and issues arising from the audit,(c) significant and unusual events,(d) compliance with the applicable approved accounting standards, and(e) compliance with Malaysia Securities Exchange Berhad (MSEB) and legal requirements.

vii. To review any related party transactions and conflict of interest situation that may arise within the Company or Group including anytransaction procedure or course of conduct that raises question of Management’s integrity;

viii. To consider the appointment of the external auditors, their audit fee and any question of their resignation or dismissal;ix. To recommend the nomination of a person or persons as external auditors; x. To review the adequacy and integrity of internal control systems including risk management and management information system; xi. To identify principal risks facing the group and ensure implementation of appropriate systems to manage these risks; andxii. To undertake any other activities as authorised by the Board of Directors.

4. Meetings

The Committee meets every quarter, although additional meetings may be called as circumstances dictate.

The quorum for a meeting shall be 2 members, the majority of member presents shall be Independent Non-Executive Directors.

As part of its duty to foster open communication, the Chief Executive Officer, the Management team, Head of Internal Audit Department andManager Risk Management Department are invited to attend the Committee meetings when deemed necessary by the Committee for the purposeof briefing the Committee on the activities involving their areas of responsibilities. The presence of external auditors will be requested whenrequired.

After each Committee meeting, the Committee shall report and update the Board of Directors on significant issues and concerns discussed duringthe Committee Meetings and where appropriate, make the necessary recommendations to the Board of Directors.

The Head of Internal Audit Department shall be the Secretary of the Committee.

A total of 8 Committee meetings were held during the financial year ended 31 December 2003. The attendance record of each member is asfollows:

Members No. of Meetings Attended No. of Meetings Eligible to Attend

Encik Lau Tiang Hua 8 8YBhg Datuk Haji A. Rahim bin Abdullah 7 8Tuan Syed Zaid bin Syed Jaffar Albar (Appointed w.e.f. 14 August 2002) 8 8

37


38

ACTIVITIES

During the financial year, the Committee had fulfilled its obligations in accordance with its terms of reference. The following is a summary of theactivities carried out by the Committee:

i. Review with the external auditors’ scope of work and their audit plan;ii. Review with the external auditors on the results of their audit, the audited report and the internal control recommendations in respect of control

weaknesses noted in the course of the audit;iii. Reviewing the annual audited financial statements before recommending the same for the Board of Directors’ approval;iv. Review the quarterly unaudited financial results announcements to the MSEB before recommending them for the Board of Directors’ approval;v. Review of the Internal Audit Department’s resource requirements, programmes and plans for the financial year and the annual assessment of the

Internal Audit Department’s performance; andvi. Review of the audit and investigation findings by the Internal Audit Department.vii.Review the adequacy and effectiveness of the system of internal control, reporting and risk management to ensure there is systematic

methodology in identifying, assessing and mitigating/controlling risk areas.

INTERNAL AUDIT FUNCTIONS

The Company has an Internal Audit Department. Its principal responsibility is to conduct audits on internal control matters to ensure theircompliance with the systems and standard operating procedures as laid down by the Company and the Group. The main objective of these audits isto provide reasonable assurance that they operate satisfactorily and effectively. The internal audits are carried out based on audit plans which have beenreviewed by the Committee.

Investigations were also made at the request of the Committee on areas of concern identified by the Committee.

The Internal Audit Department has a close working relationship with the Committee and this facilitates the fulfilment of the Committee’sresponsibility in overseeing corporate governance and ultimately the well being of the Company and Group.

RISK MANAGEMENT FUNCTIONS

The Committee has been entrusted by Board with the responsibility to oversee the implementation of the Risk Management Framework of MBSB.

The Risk Management Framework is administered through Risk Management Department. The main responsibility of Risk Management is asfollows:

i. Periodically evaluate identified risks specifically market and credit risks for the continuing relevance in the operating environment and inclusion inthe Risk Management Framework.

ii. Assess adequacy of action plans and control systems developed to manage these risks.

iii. Monitor the performance of Management in executing the action plans and operating the control systems.

iv. Regularly report to the Committee on the state of internal controls and the management of risks throughout MBSB.


39

LA P OR A N JAWATA N K UA S A AU D I T

Lembaga melalui pengesyoran Jawatankuasa Audit telah pada 30 Disember 2002 meluluskan Jawatankuasa Audit untuk dinamakan semula sebagaiJawatankuasa Audit & Pengurusan Risiko (Jawatankuasa) berkuatkuasa 2003 selaras dengan Urus Tadbir Korporat. Jawatankuasa ini adalah untukmembantu, menyokong dan melaksana tanggungjawab Lembaga dalam menjalankan tugasnya dalam mengekalkan sistem kawalan dalaman yangkukuh untuk melindungi pelaburan pemegang-pemegang saham dan aset Syarikat.

Jawatankuasa terdiri daripada pengarah-pengarah berikut:

AHLI

Pengerusi Encik Lau Tiang Hua(Pengarah Bukan Eksekutif Bebas)

YBhg Datuk Haji A. Rahim bin Abdullah(Pengarah Bukan Eksekutif Bebas)

Tuan Syed Zaid bin Syed Jaffar Albar(Pengarah Bukan Eksekutif Bebas)

BIDANG-BIDANG TUGAS

1. Objektif

Objektif utama Jawatankuasa adalah untuk:

i. Membantu Lembaga Pengarah dalam memenuhi tanggungjawab fidusiarinya khususnya dalam bidang perakaunan dan kawalan pengurusanserta pelaporan kewangan;

ii. Mengukuhkan kebebasan dan objektiviti Jabatan Audit Dalaman dan Jabatan Pengurusan Risiko;iii. Menyediakan tumpuan utama bagi komunikasi antara juruaudit luar, juruaudit dalaman, para Pengarah dan pengurusan mengenai

perkara-perkara berhubung dengan perakaunan, pelaporan dan kawalan dan menyediakan forum untuk perbincangan bebas daripadapengurusan; dan

iv. Menjalankan tanggungjawab tambahan tertentu sebagaimana mungkin wajar dan perlu untuk membantu Lembaga Pengarah.

2. Hak

Jawatankuasa akan:

i. Mempunyai kuasa untuk menyiasat sebarang perkara dalam bidang tugasnya;ii. Mempunyai sumber yang diperlukan untuk melaksanakan tugas-tugasnya;iii. Mempunyai akses penuh dan tidak terbatas kepada sebarang maklumat berhubung dengan Syarikat dan Kumpulan;iv. Mempunyai saluran komunikasi langsung dengan kedua-dua juruaudit luar, dan juruaudit dalaman dan pengurus-pengurus risiko;v. Berupaya untuk mendapatkan nasihat profesional bebas atau lain-lain nasihat; dan vi. Berupaya untuk mengadakan mesyuarat dengan juruaudit luar, tidak tanpa kehadiran ahli-ahli eksekutif Jawatankuasa, apabila dianggap

perlu.

3. Tugas dan Tanggungjawab

Berikut adalah tugas dan tanggungjawab utama Jawatankuasa:

i. Untuk menyemak dengan juruaudit luar rancangan audit, ruang lingkup dan jenis audit mereka; ii. Untuk menyemak dengan juruaudit luar, laporan dan penemuan audit mereka dan jawapan pengurusan berhubung dengannya;


40

iii. Untuk menyemak bantuan yang diberikan oleh kakitangan Syarikat dan Kumpulan kepada juruaudit luar; iv. Untuk menyemak kecukupan ruang lingkup, fungsi dan sumber Jabatan Audit Dalaman dan Jabatan Pengurusan Risiko, dan bahawa ia

mempunyai autoriti perlu untuk menjalankan kerjanya;v. Untuk menyemak program audit dalaman, proses, keputusan program audit dalaman, proses-proses atau penyiasatan dijalankan dan sama

ada atau tidak tindakan yang betul diambil ke atas pengesyoran Jabatan Audit Dalaman;vi. Untuk menyemak penyata dan laporan kewangan suku tahunan Kumpulan dan penyata kewangan tahunan Kumpulan dan Syarikat sebelum

pengemukaan kepada Lembaga Pengarah untuk kelulusan, menumpu ke atas:-(a) sebarang perubahan dalam polisi dan amalan perakaunan,(b) pelarasan dan isu-isu penting timbul daripada audit,(c) peristiwa penting dan luar biasa,(d) pematuhan dengan piawaian perakaunan diluluskan yang berkenaan, dan(e) pematuhan dengan Malaysia Securities Exchange Berhad (“MSEB”) dan keperluan undang-undang.

vii. Untuk menyemak sebarang urusniaga pihak berkaitan dan keadaan percanggahan kepentingan yang mungkin timbul dalam Syarikat atauKumpulan termasuk sebarang prosedur urusniaga atau perjalanan pengendalian yang menimbulkan persoalan ketelusan pengurusan;

viii. Untuk menimbang pelantikan juruaudit luar, yuran audit mereka dan sebarang persoalan mengenai peletakan jawatan atau pemecatanmereka;

ix. Untuk mengesyor pencalonan seseorang atau orang-orang sebagai juruaudit luar; x. Untuk menyemak kecukupan dan ketelusan sistem kawalan dalaman termasuk sistem pengurusan risiko dan maklumat pengurusan; xi. Untuk mengenal pasti risiko-risiko utama yang dihadapi oleh kumpulan dan memastikan pelaksanaan sistem sewajarnya untuk menguruskan

risiko-risiko ini; dan xii. Untuk menjalankan sebarang kegiatan lain sebagaimana dibenarkan oleh Lembaga Pengarah.

4. Mesyuarat

Jawatankuasa bermesyuarat setiap suku tahunan, sungguhpun mesyuarat tambahan boleh diadakan jika keadaan memerlukan.

Korum bagi mesyuarat hendaklah 2 ahli, majoriti ahli yang hadir hendaklah Pengarah Bukan Eksekutif Bebas.

Sebagai sebahagian daripada tugasnya untuk menggalakkan komunikasi terbuka, Ketua Pegawai Eksekutif, Pasukan Pengurusan, Ketua JabatanAudit Dalaman dan Pengurus Jabatan Pengurusan Risiko dijemput untuk menghadiri mesyuarat-mesyuarat Jawatankuasa apabila dianggap perluoleh Jawatankuasa untuk tujuan memaklumkan Jawatankuasa mengenai kegiatan melibatkan bidang tanggungjawab mereka. Kehadiranjuruaudit luar akan diminta apabila diperlukan.

Selepas setiap mesyuarat Jawatankuasa, Jawatankuasa akan melapor dan mengemaskini Lembaga Pengarah mengenai isu-isu dan kebimbanganpenting dibincangkan dalam Mesyuarat Jawatankuasa dan di mana perlu, membuat pengesyoran kepada Lembaga Pengarah.

Ketua Jabatan Audit Dalaman hendaklah menjadi Setiausaha Jawatankuasa.

Sejumlah 8 mesyuarat Jawatankuasa telah diadakan dalam tahun kewangan berakhir 31 Disember 2003. Rekod kehadiran setiap ahli adalahseperti berikut:

Ahli-ahli Bil. Mesyuarat yang Dihadiri Bil. Mesyuarat yang Layak untuk Dihadiri

Encik Lau Tiang Hua 8 8YBhg Datuk Haji A. Rahim bin Abdullah 7 8Tuan Syed Zaid bin Syed Jaffar Albar (Dilantik mulai 14 Ogos 2002) 8 8


41


KEGIATAN

Dalam tahun kewangan, Jawatankuasa telah memenuhi obligasi-obligasinya selaras dengan bidang tugasnya. Berikut adalah ringkasan kegiatan yangdijalankan oleh Jawatankuasa:

i. Menyemak ruang lingkup kerja juruaudit luar dan rancangan audit mereka;ii. Menyemak bersama juruaudit luar keputusan audit mereka, laporan audit dan pengesyoran kawalan dalaman berhubung dengan kelemahan

kawalan yang diperhatikan sepanjang audit;iii. Menyemak penyata kewangan teraudit tahunan sebelum mengesyor yang sama bagi kelulusan Lembaga Pengarah;iv. Menyemak pengumuman keputusan kewangan tidak diaudit kepada MSEB sebelum mengesyorkannya bagi kelulusan Lembaga Pengarah;v. Menyemak keperluan sumber, program dan rancangan Jabatan Audit Dalaman bagi tahun kewangan dan penilaian tahunan prestasi Jabatan

Audit Dalaman; dan vi. Menyemak audit dan penemuan penyiasatan oleh Jabatan Audit Dalaman.vii. Menyemak kecukupan dan keberkesanan sistem kawalan dalaman, pelaporan dan pengurusan risiko untuk memastikan terdapat metodologi

sistematik dalam mengenal pasti, menilai dan mengurangkan/mengawal perkara-perkara risiko.

FUNGSI AUDIT DALAMAN

Syarikat mempunyai Jabatan Audit Dalaman. Tanggungjawab utamanya adalah untuk mengendalikan audit ke atas perkara-perkara kawalandalaman untuk memastikan pematuhan dengan sistem dan prosedur pengendalian standard sebagaimana ditetapkan oleh Syarikat dan Kumpulan.Objektif utama audit-audit ini adalah untuk menyediakan jaminan munasabah bahawa mereka beroperasi secara memuaskan dan berkesan. Auditdalaman dijalankan berdasarkan rancangan audit yang telah disemak oleh Jawatankuasa.

Penyiasatan juga dibuat atas permintaan Jawatankuasa atas perkara-perkara kebimbangan yang dikenal pasti oleh Jawatankuasa.

Jabatan Audit Dalaman mempunyai hubungan kerja yang rapat dengan Jawatankuasa dan ini memudahkan pemenuhan tanggungjawab Jawatankuasadalam mengawalselia urus tadbir korporat dan akhirnya kesejahteraan Syarikat dan Kumpulan.

FUNGSI PENGURUSAN RISIKO

Jawatankuasa telah diamanahkan oleh Lembaga dengan tanggungjawab untuk mengawalselia pelaksanaan Rangka Kerja Pengurusan Risiko MBSB.

Rangka Kerja Pengurusan Risiko adalah untuk mentadbir melalui Jabatan Pengurusan Risiko. Tanggungjawab utama Pengurusan Risiko adalahseperti berikut:

i. Secara berkala menilai risiko-risiko yang dikenal pasti terutamanya risiko pasaran dan kredit bagi kerelevanan berterusan dalam persekitaranpengendalian dan kemasukan dalam Rangka Kerja Pengurusan Risiko.

ii. Menilai kecukupan rancangan tindakan dan sistem kawalan dibangunkan untuk menguruskan risiko-risiko ini.

iii. Mengawasi prestasi pengurusan dalam melaksanakan rancangan tindakan dan pengendalian sistem kawalan.

iv. Melapor secara tetap kepada Jawatankuasa mengenai keadaan kawalan dalaman dan pengurusan risiko pada keseluruhan MBSB.

42

FI N A N C I A L HIG H L IG H TS OF T H E CO M PA N Y KE M U N C A K KE W A N G A N SY A R I K A T

RM Million / RM Juta 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Net Profit/(Loss) Before TaxationKeuntungan/(Kerugian) Bersih Sebelum Cukai 76.09 91.67 77.04 49.36 (57.90) (294.31) (18.40) (475.27) (222.13) (59.95)

Paid-up Ordinary Share CapitalModal Saham Biasa Berbayar 121.63 121.63 121.63 337.86 337.86 337.86 337.86 337.86 337.86 337.86

Total ReservesJumlah Rezab 427.64 485.42 523.60 825.77 756.28 458.28 439.28 (35.39) (257.52) (181.86)

Total AssetsJumlah Aset 2,276.53 2,711.61 3.264.29 4,772.58 5,016.27 4,532.55 4,400.38 3,989.51 3,760.48 3,693.47

2002

2000

1998

1996

1994

(500.00) (400.00) (300.00) (200.00) (100.00) 0.00 100.00

Net Profit/(Loss) Before Taxation (RM Million)Keuntungan/(Kerugian) Bersih Sebelum Cukai (RM Juta)

2003

2000

1998

1996

1994

0.00

Paid-up Ordinary Share Capital (RM Million)Modal Saham Biasa Berbayar (RM Juta)

2002

2001

1999

1997

1995

100.00 200.00 300.00 400.00 500.00 600.00

1995

1997

1999

2001

2003


2003

2000

1998

1996

1994

(400.00)

Total Reserves (RM Million)Jumlah Rezab (RM Juta)

2002

2001

1999

1997

1995

(200.00) 0.00 200.00 400.00 600.00 800.00 1,000.00

2003

2000

1998

1996

1994

0.00

Total Assets (RM Million)Jumlah Aset (RM Juta)

2002

2001

1999

1997

1995

1000.00 2000.00 3000.00 4000.00 5000.00 6000.00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Gross Earnings Pendapatan Kasar 42 50 42 17 (17) (87) (5) (141) (66) (18)

Gross DividendDividen Kasar 16.0 16.0 18.0 14.0 4.0 1.5 - - - -

Net Assets BackingAset Bersih Disandarkan 301 333 351 403 324 236 230 90 24 95

Per Ordinary Share, adjusted for the bonus issue in 1997, in senSetiap Saham Biasa diselaraskan bagi terbitan bonus pada tahun 1997, dalam sen

43


2003

2000

1998

1996

1994

0.0

Dividen Kasar (sen)Gross Dividend (sen)

2002

2001

1999

1997

1995

2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

2003

2000

1998

1996

1994

0.0

Net Assets Backing (sen)Aset Bersih Disandarkan (sen)

2002

2001

1999

1997

1995

50 100 150 200 250 300 350 400 450

2002

2000

1998

1996

1994

(160) (100) (80) (20) 0

Gross Earnings (sen)Pendapatan Kasar (sen)

(140) (120) (60) (40) 20 40 60

1995

1997

1999

2001

2003


44

AN A LY S I S OF SH A R E HOL D I N G AN A L I S I S PE M E G A N G SA H A M

AS AT 31 MARCH 2004 / PADA 31 MAC 2004

ANALYSIS OF SHAREHOLDINGSANALISIS PEMEGANGAN SAHAM

Authorised Share Capital : RM 1,800,000,000Modal Saham Dibenarkan

Issued and Fully Paid-Up Capital : RM 337,856,727 Ordinary Share/Saham BiasaModal Terbitan dan Berbayar Penuh RM 165,000,000 Redeemable Convertible Preference Shares (RCPS)/

Saham Keutamaan Boleh Tukar Boleh Tebus (RCPS)

Class of Shares : Ordinary Shares of RM1.00 each and Kelas Saham Redeemable Convertible Preference Shares

of RM1.00 eachSaham biasa bernilai RM1.00 sesaham dan Saham Keutamaan Boleh Tukar Boleh Tebus bernilai RM1.00 sesaham.

Voting Rights : One vote per Ordinary ShareHak Mengundi The Redeemable Convertible Preference Shares does not carry any right to vote at any

general meeting of the Company except for the purpose of reducing the capital, orwinding up, or sanctioning a sale for the purpose of the principal undertaking of theCompany, alter the Articles of Association of the Company which affects the rights ofthe shareholders or where proposition to be submitted to the meeting directly affects therights of the shareholders.Satu undi setiap Saham Biasa. Saham Keutamaan Boleh Tukar Boleh Tebus tidak membawa sebarang hak untuk mengundi padamana-mana mesyuarat biasa Syarikat kecuali bagi tujuan pengurangan modal atau penggulungan ataumensanksi jualan bagi tujuan akujanji utama Syarikat, mengubah Tataurusan Pertubuhan Syarikatyang menjejaskan hak pemegang-pemegang saham atau di mana cadangan yang hendak dikemukakankepada mesyuarat secara langsung melibatkan hak pemegang-pemegang saham.

ANALYSIS OF ORDINARY SHAREHOLDINGSANALISIS PEMEGANGAN SAHAM BIASA

Size of Shareholdings Shareholders % Shareholdings %Saiz Pemegangan Saham Pemegang-pemegang Saham % Pemegangan Saham %

Less than / Kurang daripada 100 93 0.56 1,857 0.00100 to / hingga 1000 10,227 61.43 10,151,961 3.001,001 to / hingga 10,000 5,523 33.18 20,360,244 6.0310,001 to / hingga 100,000 743 4.46 19,589,804 5.80100,001 to less than 5% of issued shared /hingga kurang daripada 5% saham diterbitkan 60 0.36 37,319,629 11.055% and above of issued shares /5% dan ke atas saham diterbitkan 2 0.01 250,433,232 74.12

TOTAL/JUMLAH 16,648 100.00 337,856,727 100.00

45


SUBSTANTIAL SHAREHOLDERS (As at 31 March 2004)PEMEGANG-PEMEGANG SAHAM UTAMA (Pada 31 Mac 2004)

Name of shareholders No. of RCPS % of RCPS No. of Ordinary Shares % of Ordinary SharesNama Pemegang-Pemegang Saham Bilangan Saham RCPS % RCPS Bilangan Saham Biasa % Saham Biasa

1. EMPLOYEES PROVIDENT FUND BOARD 140,000,000 84.85 212,933,232 63.022. PERMODALAN NASIONAL BERHAD 25,000,000 15.15 37,500,000 11.10

THIRTY LARGEST SHAREHOLDERS (As at 31 March 2004)TIGA PULUH PEMEGANG-PEMEGANG SAHAM TERBESAR (Pada 31 Mac 2004)

NAME NO. OF SHARES % OF SHARESNAMA BILANGAN SAHAM % SAHAM

1. EMPLOYEES PROVIDENT FUND BOARD 212,933,232 63.022. PERMODALAN NASIONAL BERHAD 37,500,000 11.103. AMANAH RAYA NOMINEES (TEMPATAN) SDN BHD 16,868,815 4.99

( SKIM AMANAH SAHAM BUMIPUTERA )4. POSEIDON SENDIRIAN BERHAD 3,600,000 1.075. PHUA THIAN KANG SDN BERHAD 3,200,000 0.956. HSBC NOMINEES (TEMPATAN) SDN BHD 949,700 0.28

( ACC FOR DEVA DASSAN SOLOMON )7. M&A SECURITIES SDN BHD (1VT (B) ) 860,300 0.258. ASIA LIFE (M) BERHAD ( AS BENEFICIAL OWNER (PF) ) 742,000 0.229. ONG TONG PHENG @ ENG AH TOON 722,000 0.2110. PHUA SENG LAM 671,000 0.2011. UNIVERSITI MALAYA 655,000 0.1912. HONG LEONG FINANCE BERHAD 504,000 0.15

( ACC FOR KHOW TEW CHOON )13. KOH SAY KOK 430,000 0.1314. BOTLY NOMINEES (TEMPATAN) SDN BHD 315,000 0.09

( ACC FOR LEONG LAI NGAN )15. PM NOMINEES (TEMPATAN) SDN BHD 302,500 0.09

( ACC FOR WISTANA EQUITIES SDN BHD )16. BOTLY NOMINEES (TEMPATAN) SDN BHD ( ACC FOR CHAN KAM LEONG ) 300,000 0.0917. ASAS DUNIA BERHAD 281,000 0.0818. PHUA SENG LAM 280,000 0.0819. CITICORP NOMINEES (ASING) SDN BHD 263,000 0.08

( CBNY FOR DFA EMERGING MARKETS FUND )20. TANI LIAU KAU@ TEH ENG MONG 244,000 0.0721. TA NOMINEES (TEMPATAN) SDN BHD 243,100 0.07

( ACC FOR CHUANG NEE WANG KIM LIEN )22. CITICORP NOMINEES (TEMPATAN) SDN BHD 219,000 0.06

( ACC FOR KHOR KENG SAW@ KHAW AH SOAY )23. BBMB SECURITIES NOMINEE (TEMPATAN) SDN BHD 208,000 0.06

( PETROLEUM RESEARCH FUND )24. YEAP HOOI HOOI 205,000 0.0625. KHOO TEW CHOON 204,600 0.0626. LGK SENDIRIAN BERHAD 200,000 0.0627. ZAHRUL-LAIL BIN AYUB 200,000 0.0628. CONCORD HOLDINGS SDN BERHAD 200,000 0.0629. MALAYSIA BUILDING SOCIETY BHD 198,614 0.0630. KUMPULAN WANG SIMPANAN GURU-GURU 180,000 0.05

Total Shareholdings of the Thirty Largest Shareholders/Jumlah Pegangan Saham oleh Tiga Puluh Pemegang-Pemegang Saham Terbesar 283,911,461 84.00

SC H E D U L E OF PR OPE RT I E S SE N A R A I HA R T A N A H


46

Held by the Company and its Subsidiares as at 31 December 2003Yang dipegang oleh Syarikat dan Syarikat subsidiari-subsidiari pada 31 Disember 2003

Location Tenure No. of Expiry Area Description Age of Net BookYears Date (sq. metres) Building Value

(Years) (RM’000)

Lokasi Pegangan Tahun Tamat Keluasan Perihal Usia Nilai BukuTanah Tempoh (meter persegi) Bangunan Bersih

(Tahun) (RM ‘000)

No. 1578, Jalan Kota, Alor Setar Leasehold 60 14.01.2029 120.87 Office Building 31 344Pegangan Pajak Bangunan Pejabat

No.114 A-C, Jalan Pengkalan Susur Kiri, Leasehold 99 14.11.2092 130.06 Office Building 8 371Taman Pekan Baru, Sungai Petani Pegangan Pajak Bangunan Pejabat

No. 43/47, Jalan Penang, Pulau Pinang Freehold - - 163.22 Office Building 46 24Pegangan Kekal Bangunan Pejabat

No. 119, Jalan Macalister, Pulau Pinang Freehold - - 4,486.66 Residential Building 94 12,000Pegangan Kekal Bangunan Kediaman

No.281, Bandar Tanjung Bungah Freehold - - 7,508.00 Vacant Land - 12,700Daerah Timur Laut,Pulau Pinang Pegangan Kekal Tanah Kosong

Lot 389, Geran 47098 Freehold - - 2,833.89 Vacant Land - 5,100Daerah Timur Laut Pegangan Kekal Tanah KosongBandar Tanjong BungahNorth East DistrictPulau Pinang

Lot 46, Geran 47093 Freehold - - 20,258.39 Vacant Land - 33,600Bandar Tanjong Bungah Pegangan Kekal Tanah KosongNorth East District, Pulau Pinang

Lot 365, Lot 366 Freehold - - 13,233.73 Vacant Land - 24,000PT Lot 465 and PT 102 Pegangan Kekal Tanah KosongIn Section 1 Town of Batu FerringhiNorth East District, Pulau Pinang

Lots 3673-3675, 3677, 3678, 3681 Freehold - - 2,463.00 Vacant Land - 6963682,3684, Mukim 12 Pegangan Kekal Tanah KosongDaerah Barat Daya, Pulau Pinang

No. 2783, Jalan Chain Ferry Freehold - - 148.65 Office Building 6 676Taman Inderawasih, Prai, Pulau Pinang Pegangan Kekal Bangunan Pejabat

No. 177, Jalan Sultan Idris Shah, Ipoh Freehold - - 167.22 Office Building 46 67Pegangan Kekal Bangunan Pejabat

No. 45, Persiaran Greenhill, Ipoh Freehold - - 222.95 Office Building 9 540Pegangan Kekal Bangunan Pejabat

No. 3, Jalan 52/16, New Town Centre Freehold 99 21.09.2058 174.19 Office Building 23 836Petaling Jaya Pegangan Kekal Bangunan Pejabat

PT 27758, 27759, 29301 HS(D) 93832 Freehold - - 57,362.68 Vacant Land - 31,99993833, 95375 Mukim Sungai Buloh Pegangan Kekal Tanah KosongDistrict Petaling

47


Held by the Company and its Subsidiares as at 31 December 2003 (contd.)Yang dipegang oleh Syarikat dan Syarikat subsidiari-subsidiari pada 31 Disember 2003 (samb.)


(Years) (RM’000)


(Tahun) (RM ‘000)

No. 74, Jalan Kapar Freehold - - 352.20 Office Building 32 46Klang Pegangan Kekal Bangunan Pejabat

No. 48, Jalan Dungun Freehold - - 1,595.28 Office Building 18 18,980Damansara Heights, Kuala Lumpur Pegangan Kekal Bangunan Pejabat

No. 13/15 Leboh Ampang Leasehold 99 23.02.2957 265.79 Office Building 46 2,197Kuala Lumpur Pegangan Pajak Bangunan Pejabat

Lot 104, 105, 106, 115 & 118 Freehold - - 635.00 Office Building 4 32,235Section 12, Kuala Lumpur Pegangan Kekal Bangunan Pejabat

Unit No. A-10, B-10, C-10 (F&B) & D-10 Freehold - - 180.97 Shop Office 4 914(F&B) Prima Business Centre Pegangan Kekal Bangunan KedaiCheras, Kuala Lumpur Pejabat

No. 8, Jalan Pinggiran Tunku Freehold - - 2,928.82 Residential Bungalow 46 28Kuala Lumpur Pegangan Kekal Banglo Kediaman

No. 142, Section 87A Freehold - - 1,832.00 Residential Bungalow 17 3,164Town & District of Kuala Lumpur Pegangan Kekal Banglo Kediaman

No. 143, Section 87A Freehold - - 1,189.00 Residential Bungalow 17 1,983Town & District, Kuala Lumpur Pegangan Kekal Banglo Kediaman

S-1, Kompleks Negeri Leasehold 99 30.01.2078 223.72 Office Building 15 590Jalan Dato’ Bandar Tunggal Pegangan Pajak Bangunan PejabatSeremban

GM652, Lot 4145, PT 2955 HS (M) Freehold - - 5,632.00 Vacant Land - 1,0341763 & PT 2956 HS (M) Pegangan Kekal Tanah Kosong1764 Mukim Pasir PanjangDistrict Port Dickson

No. 163, Jalan Siakap Satu Batu 12 Freehold - - 501.68 Residential Bungalow 16 215Pantai Dickson, Post Dickson Pegangan Kekal Banglo Kediaman

Plot 204 & 205 Leasehold 99 19.08.2075 297.28 Office Building 7 900Taman Melaka Raya Pegangan Pajak Bangunan PejabatMelaka

12, 12-1, 12-2, 12-3A, 12-3B Freehold - - 125.60 Office Building 6 73912-4A & 12-4B Delima Raya Pegangan Kekal Bangunan PejabatLot 109 & 110Bandar Bukit Baru Seksyen III, Melaka

Lots 2947 & 2948 Freehold - - 47,848.81 Vacant Land - 8,199Mukim Durian Tunggal Pegangan Kekal Tanah KosongDistrict Alor Gajah, Melaka

Lot No. 45, Tanjung Kling Freehold - - 9,0041.80 Vacant Land - 19,800Daerah Melaka Tengah, Melaka Pegangan Kekal Tanah Kosong

Held by the Company and its Subsidiares as at 31 December 2003 (contd.)Yang dipegang oleh Syarikat dan Syarikat subsidiari-subsidiari pada 31 Disember 2003 (samb.)

48


(Years) (RM’000)


(Tahun) (RM ‘000)

Lot 353, PN 7164 Leasehold 99 29.08.2074 7,048.10 Hotel 6 71,499Kawasan Bandar VIII Pegangan Pajak HotelDaerah Melaka Tengah, Melaka

Lot PTB 19196-19199 Leasehold 99 08.03.2091 92,181.74 Vacant Land - 61,000Bandar Johor Bahru Pegangan Pajak Tanah KosongDistrict Johor Bahru, Johor

A157 & 159, Jalan Tun Ismail Freehold - - 265.70 Office Building 8 590Kuantan Pegangan Kekal Bangunan Pejabat

PT 95 & 96 Freehold - - 19,424.74 Vacant Land - 766Mukim Sungai Karang, Kuantan Pegangan Kekal Tanah Kosong

E 17 & E18, Greenhill Resort Leasehold 99 27.10.2038 185.80 Holiday Apartment 8 312Cameron Highlands Pegangan Pajak Apartment Percutian

No. 1A, Jalan Air Jernih Freehold - - 197.00 Office Building 6 1000Kuala Terengganu Pegangan Kekal Bangunan Pejabat

1120C & 1120D Leasehold 66 15.02.2061 294.30 Office Building 21 676Jalan Padang Garong, Kota Bharu Pegangan Pajak Bangunan Pejabat


SEREMBANS-1, Kompleks Negeri,Jalan Dato’ Bandar Tunggal,70000 Seremban,Negeri Sembilan DarulKhusus,Tel: 06-763 8455Fax : 06-763 0701

BUTTERWORTH2783, Jalan Chain Ferry,Taman Inderawasih,13600 Prai,Pulau Pinang.Tel: 04-398 0145Fax; 04-398 0898

DAMANSARAGround Floor,Wisma MBSB,48, Jalan Dungun,Damansara Heights,50490 Kuala Lumpur.Tel: 03-2095 4044Fax: 03-2095 4022

KUANTANA157 & A159,Sri Dagangan,Jalan Tun Ismail,25000 Kuantan,Pahang Darul Makmur.Tel: 09-515 7677Fax: 09-514 5060

KUALA TERENGGANU1A, Jalan Air Jernih,20300 Kuala Terengganu,Terengganu Darul Iman.Tel: 09-622 7844Fax: 09-622 0744

49


BR A N C H NE T W OR K RA N G K A I A N CA W A N G A N

CHERAS185, Jalan Sarjana,Taman Connaught,56000 Cheras, Kuala Lumpur.Tel: 03-9132 2955Fax: 03-9132 2954

MASAI28, Jalan Mawar,81750 Masai,Johor Darul Takzim.Tel: 07-252 8700Fax: 07-252 8703

SUNGAI PETANI114, Jalan Pengkalan,Taman Pekan Baru,08000 Sungai Petani,Kedah Darul Aman.Tel: 04-422 9302Fax: 04-421 2046

PETALING JAYA3, Jalan 52/16,46200 Petaling Jaya,Selangor Darul Ehsan.Tel: 03-7956 9200Fax: 03-7956 9627

KLUANG6, Lot 9053,Jalan Haji Manan,86000 Kluang,Johor Darul Takzim.Tel: 07-771 7585Fax: 07-772 6572

PULAU PINANG43/47, Jalan Penang,10000 Pulau Pinang.Tel: 04-263 6275Fax: 04-261 6548

ALOR SETAR1578, Jalan Kota,05000 Alor Setar,Kedah Darul Aman.Tel: 04-731 4655Fax: 04-731 7996

KLANG74, Jalan Kapar,41400 Klang,Selangor Darul Ehsan.Tel: 03-3342 6822Fax: 03-3341 3611

JOHOR BAHRU1st & 2nd Floor,Bangunan KWSP,Jalan Dato’ Dalam,80000 Johor Bahru,Johor Darul Takzim.Tel: 07-223 8977Fax: 07-224 0143

KOTA BHARUGround Floor,1120-C&D,Jalan Padang Garong,15000 Kota Bharu,Kelantan Darul Naim.Tel: 09-746 1197Fax: 09-748 3940

BATU PAHAT37-4, Jalan Rahmat,83000 Batu Pahat,Johor Darul Takzim.Tel: 07-431 6614Fax: 07-431 7382

BAYAN BARUGround Floor,31, Lorong Mayang Pasir 5,Taman Sri Tunas,11950 Bayan Baru,Pulau Pinang.Tel: 04-642 9862Fax: 04-642 9866

IPOH45, Persiaran Greenhill,30450, Ipoh,Perak Darul Ridzuan.Tel: 05- 254 5659Fax: 05-254 4748

KUCHINGGround & 1st Floor,Tunku Muhammad Al IdrusBuilding,439, Jalan Kulas Utara 1,93400 Kuching, Sarawak.Tel: 082-248 240Fax: 082-248 611

LEBOH AMPANGBangunan MBSB,Pusat Bandar,13/15 Leboh Ampang,50100 Kuala Lumpur.Tel: 03-2031 9599Fax: 03-2031 9526

MELAKAPlots 203 & 204,Projek Melaka Raya,Jalan Taman,Off Jalan Bandar Hilir,75000 Melaka.Tel: 06-282 8255Fax: 06-284 7270

SELAYANG95, Jalan 2/3A,Pusat Bandar Utara,68100 Batu Caves,Selangor Darul Ehsan.Tel: 03-6136 8682Fax: 03-6136 8679

FI N A N C I A L STAT E M E N TS

DIRECTORS’ REPORT

STATEMENT BY DIRECTORS

STATUTORY DECLARATION

REPORT OF THE AUDITORS

BALANCE SHEETS

INCOME STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

51

55

55

56

57

58

59

60

61

62

DI R E C TOR S ’ RE P ORT

51

MALAYSIA BUILDING SOCIETY BERHAD (9417-K)

The directors hereby submit their report together with the audited financial statements of the Group and of the Company for the financial year ended31 December 2003.

PRINCIPAL ACTIVITIES

The principal activity of the Company is the granting of loans on the security of freehold and leasehold properties. The principal activities of thesubsidiaries are property development, project management, letting of real property and investment holding.

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

RESULTSGroup Company

RM'000 RM'000Net loss for the year 66,752 59,953

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

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantiallyaffected by any item, transaction or event of a material and unusual nature.

DIVIDENDS

No dividend has been paid or declared by the Company since the end of the previous financial year.

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 Tan Sri Abdul Halim bin AliYBhg Datuk Azlan bin Mohd ZainolEncik Lau Tiang HuaYBhg Datuk Haji A. Rahim bin AbdullahTuan Syed Zaid bin Syed Jaffar Albar Puan Tan Ler Chin YBhg Datuk Abdullah bin Haji Kuntom (appointed on 29 September 2003)YBhg Dato’ Abdul Hamidy bin Abdul Hafiz (resigned on 1 July 2003)

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 Company or its subsidiarieswas a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the Company or any other bodycorporate other than as may arise from the share options to be granted pursuant to the Malaysia Building Society Berhad Employee Share OptionScheme.

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in theaggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full time employee of the Company asdislosed in Note 31 to the financial statements) by reason of a contract made by the Company or a related corporation with any director or with a firmof which the director is a member, or with a company in which he has a substantial financial interest.

52

Annual report 2003 laporan tahunan

DIRECTORS' INTERESTS

None of the directors in office at the end of the financial year had any interest in shares in the Company or its related corporations during thefinancial year.

ISSUE OF SHARES

During the financial year, the Company increased its:

(a) authorised share capital from RM520,000,000 to RM1,800,000,000 through the creation of 500,000,000 ordinary shares of RM1 each,500,000,000 Redeemable Convertible Preference Shares of RM1 each and 280,000,000 Redeemable Cumulative Preference Shares of RM1 each; and

(b) issued and paid-up share capital by way of the issuance of 165,000,000 Redeemable Convertible Preference Shares ("RCPS") of RM1 each througha restricted issue at an issue price of RM2 per share, for additional working capital purposes.

The consideration for the RCPS was settled by Employees Provident Fund Board and Permodalan Nasional Berhad via the conversion of EPFrevolving loans of RM280 million and deposits of RM50 million respectively.

EMPLOYEE SHARE OPTION SCHEME

The Malaysia Building Society Berhad Employee Share Option Scheme ("ESOS") is governed by the by-laws approved by the shareholders at anExtraordinary General Meeting held on 23 June 2003.

The main features of the ESOS are as follows:

(a) The ESOS shall be in force for a period of five years commencing from 26 September 2003.

(b) Eligible persons are employees of the Group (including executive directors) who is on the payroll of the Group other than a subsidiary which isdormant.

(c) The total number of shares to be issued under the ESOS shall not exceed in aggregate 10% of the issued share capital of the Company at anypoint of time during the tenure of the ESOS.

(d) The option price for each share shall be the average of the mean market quotation of the shares of the Company in the daily official list issued byMalaysia Securities Exchange Berhad for the five trading days preceding the date of offer, or the par value of the shares of the Company of RM1,whichever is higher.

(e) The actual number of new shares which may be offered to an eligible employee shall be at the discretion of the Option Committee and, subject toany adjustments that may be made under Clause 15 of the by-laws, shall not be less than 200 shares but not more than maximum allowableallocation and shall always be in multiple of 200 shares.

(f) An option granted under the ESOS shall be capable of being exercise by the grantee by notice in writing to the Company commencing from thedate of the offer but before the expiry of five years from 26 September 2003 in respect of all or any part of the Company’s shares comprised inthe option, such part in multiples of 200 shares. Any partial exercise of an option shall not preclude the grantee from exercising the option in respectof the balance of the Company’s shares comprised in the option.

(g) All new ordinary shares issued upon exercise of the options granted under the ESOS will rank pari passu in all respects with the existing ordinaryshares of the Company other than as may be specified in a resolution approving the distribution of dividends prior to their exercise dates.

(h) The persons to whom the options have been granted have no right to participate by virtue of the options in any share issue of any other company.

53


EMPLOYEE SHARE OPTION SCHEME (CONTD.)

The Company has been granted an exemption by the Suruhanjaya Syarikat Malaysia from having to disclose the names of option holders who weregranted options to subscribe for less than 180,000 ordinary shares during the financial year.

The names of option holders and the number of options granted in respect of the ESOS which are 180,000 and above during the financial year aredisclosed below:

Number of Options over Ordinary Shares of RM1 Each

Option 1 January 31 DecemberPrice 2003 Granted Exercised 2003

RM

Ahmad Farid Omar 1.00 - 323,000 - 323,000 Abdul Rahman Abdullah 1.00 - 278,400 - 278,400 Mat Zin Ismail 1.00 - 269,400 - 269,400 Azmi Hamid 1.00 - 248,400 - 248,400 Abd. Rahim Ambak 1.00 - 248,400 - 248,400 Shamsudin Md Yusoff 1.00 - 248,400 - 248,400 Yew Teik Jin 1.00 - 248,400 - 248,400 Azizah Abu Bakar 1.00 - 182,000 - 182,000 Low Chee Keong 1.00 - 180,000 - 180,000 Habsah Hashim 1.00 - 180,000 - 180,000

Information with respect to the number of options granted under the ESOS is as follows:

Number of Share Options 2003 2002

At 1 January - - Granted 32,457,600 - Lapsed * (265,000) - At 31 December 32,192,600 -

* Due to resignation of employees

Details of share options granted during the financial year and outstanding as at the end of the financial year are as follows:

Exercise Period Exercise Price Number of Share OptionsRM 2003 2002

26.9.2003 - 25.9.2008 1.00 32,192,600 -

OTHER STATUTORY INFORMATION

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

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts andsatisfied themselves that all known bad debts had been written off and that adequate provision had been made 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 the ordinary course ofbusiness had been written down to an amount which they might be expected so to realise.

54


OTHER STATUTORY INFORMATION (CONTD.)

(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 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 adherence to the existing methodof 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 financial statements of theGroup 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 which secures the liabilities ofany other person; or

(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year other than those arising in thenormal course of business of the Group and of the Company.

(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 twelve months after the end ofthe financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due; and

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

SIGNIFICANT EVENT

The significant event during the financial year is as disclosed in Note 39 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

Tan Sri Abdul Halim bin Ali Lau Tiang HuaCHAIRMAN DIRECTOR

Kuala Lumpur, Malaysia26 March 2004

STAT E M E N T BY DI R E C TOR S

PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965

55


We, TAN SRI ABDUL HALIM BIN ALI and LAU TIANG HUA, being two of the directors of MALAYSIA BUILDING SOCIETY BERHAD, dohereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 57 to 102 are drawn up in accordance withapplicable Approved Accounting Standards in Malaysia and the provisions of the Companies Act, 1965 so as to give a true and fair view of thefinancial position of the Group and of the Company as at 31 December 2003 and of the results and the cash flows of the Group and of the Companyfor the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors

TAN SRI ABDUL HALIM BIN ALI LAU TIANG HUACHAIRMAN DIRECTOR


STAT U TORY DE C L A R AT IO N

PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965

I, YEW TEIK JIN, being the officer primarily responsible for the financial management of MALAYSIA BUILDING SOCIETY BERHAD, dosolemnly and sincerely declare that the accompanying financial statements set out on pages 57 to 102 are in my opinion correct, and I make this solemndeclaration conscientiously believing in the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared bythe abovenamed YEW TEIK JINat Kuala lumpur in the Federal Territoryon 26 March 2004

Before me: YEW TEIK JIN

T.THANAPALASINGAMCommissioner for OathsKuala Lumpur

56


RE P ORT OF TH E AU D I TOR S

MALAYSIA BUILDING SOCIETY BERHAD(Incorporated in Malaysia)

To The Members ofMALAYSIA BUILDING SOCIETY BERHAD

We have audited the accompanying financial statements set out on pages 57 to 102. These financial statements are the responsibility of the Company’sdirectors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by the directors, as well as evaluating the overall presentation of the financial statements.We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable ApprovedAccounting Standards in Malaysia so as to give a true and fair view of:

(i) the financial position of the Group and of the Company as at 31 December 2003 and of the results and the cash flows of the Group and ofthe Company for the year then ended; and

(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and

(b) the accounting and other records and the registers required by the Act to be kept by the Company and by its subsidiaries of which we have actedas auditors have been properly kept in accordance with the provisions of the Act.

We have considered the financial statements and the auditors’ report thereon of the subsidiary of which we have not acted as auditors, as indicated inNote 11 to the financial statements, being financial statements that have been included in the consolidated financial statements.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Company are in formand content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactoryinformation and explanations required by us for those purposes.

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification material to the consolidated financialstatements and in respect of the subsidiaries incorporated in Malaysia, did not include any comment required to be made under Section 174 (3) of theAct.

ERNST & YOUNG WONG KANG HWEEAF: 0039 No. 1116/01/06(J)Chartered Accountants Partner


57


BA L A N C E SH E E TS

AS AT 31 DECEMBER 2003

Group Company

2003 2002 2003 2002 Note RM'000 RM'000 RM'000 RM'000

ASSETS Cash and short term funds 3 159,675 99,703 147,612 92,003 Trade receivables 4 4,378 7,604 - - Other receivables 5 94,654 93,778 35,965 29,788 Inventories of completed properties 6 31,975 32,587 - - Development properties 7 3,103 7,134 - - Loans, advances and financing 8 3,237,561 3,340,766 3,204,778 3,322,659 Other investments 9 1,400 500 1,400 - Loans to subsidiaries 10 - - 146,593 144,325 Investments in subsidiaries 11 - - 67,964 72,334 Land held for development 12 268,694 268,415 88,293 88,194 Property, plant and equipment 13 143,691 159,373 860 11,181

TOTAL ASSETS 3,945,131 4,009,860 3,693,465 3,760,484

LIABILITIES AND SHAREHOLDERS' EQUITYBank borrowings 14 1,046,072 1,270,457 1,046,072 1,270,457 Deposits 15 1,168,067 1,117,180 1,168,067 1,117,180 Other borrowings 16 1,009,493 1,142,199 1,009,493 1,142,199 Trade payables 17 62,882 69,511 - - Other payables 18 206,657 191,023 27,483 27,223 Tax payable 18,633 18,633 18,584 18,584 Loans sold to Cagamas 19 64,904 95,515 64,904 95,515 Deferred taxation 20 27,586 27,511 - - Redeemable convertible preference shares 21 29,382 - 29,382 - Provision for liabilities 22 1,023 - - - Provision for staff benefit 23 8,658 9,923 8,479 8,990

TOTAL LIABILITIES 3,643,357 3,941,952 3,372,464 3,680,148

Share capital 24 502,856 337,856 502,856 337,856 Reserves (201,082) (269,948) (181,855) (257,520)

Shareholders’ equity 301,774 67,908 321,001 80,336

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3,945,131 4,009,860 3,693,465 3,760,484

The accompanying notes form an integral part of the financial statements.

58


IN C O M E STAT E M E N TS

FOR THE YEAR ENDED 31 DECEMBER 2003

Group Company

2003 2002 2003 2002 Note RM'000 RM'000 RM'000 RM'000

Operating revenue 25 182,425 216,315 168,312 138,333

Interest income 26 175,426 197,620 167,133 136,424 Interest expense 27 (166,883) (156,502) (144,199) (150,919)Net interest income/(expense) 8,543 41,118 22,934 (14,495)Net income from Islamic Banking Scheme Operations 44 3 - 3 -

8,546 41,118 22,937 (14,495)Other non-interest income 28 9,579 19,625 2,200 2,608

18,125 60,743 25,137 (11,887)Changes in development properties

and inventories of completed properties 618 (1,205) - -Contract costs (2,542) (14,128) - - Other operating expenses 29 (46,747) (124,490) (44,214) (122,533)Operating loss before provision (30,546) (79,080) (19,077) (134,420)Loan and financing loss and provision 32 (36,905) (44,102) (40,876) (87,712)Reversal of (provision for) anticipated losses on projects 774 (1,332) - - Loss before taxation (66,677) (124,514) (59,953) (222,132)Taxation 33 (75) 438 - - Net loss before minority interest (66,752) (124,076) (59,953) (222,132)Minority interest - - - - Net loss for the year (66,752) (124,076) (59,953) (222,132)

Loss per share (sen)Basic 34 20 37


CO N S OL I D AT E D STAT E M E N T OF CH A N G E S I N EQ U I T Y


59


Group Share Capital Non Distributable

CapitalRedemption

Reserve -Redeemable Redeemable

Covertible CumulativeOrdinary Preference Share Capital Preference Accumulated

Shares Shares Premium Reserve Shares Losses TotalRM'000 RM'000 RM'000 RM'000 RM’000 RM'000 RM’000

At 1 January 2002As previously stated 337,856 - 517,077 17,838 12,486 (691,358) 193,899 Prior year adjustment (Note 35) - - - - - (1,915) (1,915)

At 1 January 2002 (restated) 337,856 - 517,077 17,838 12,486 (693,273) 191,984 Net loss for the year - - - - - (124,076) (124,076)

At 31 December 2002 337,856 - 517,077 17,838 12,486 (817,349) 67,908

Group Share Capital Non Distributable

CapitalRedemption




At 1 January 2003As previously stated 337,856 - 517,077 17,838 12,486 (815,508) 69,749 Prior year adjustment (Note 35) - - - - - (1,841) (1,841)

At 1 January 2003 (restated) 337,856 - 517,077 17,838 12,486 (817,349) 67,908Equity component of RCPS (Note 21) - 165,000 135,618 - - - 300,618 Net loss for the year - - - - - (66,752) (66,752)

At 31 December 2003 337,856 165,000 652,695 17,838 12,486 (884,101) 301,774

Capital reserve arose out of the transfer of the reserves of Malaya Borneo Building Society Limited as at 29 February 1972 to Malaysia BuildingSociety Berhad on 1 March 1972 via a Scheme of Arrangement and is not distributable as cash dividends.

Capital redemption reserve arose out of the redemption of redeemable cumulative preference shares and is not distributable as cash dividends.


60


Company Share Capital Non Distributable

CapitalRedemption

Reserve - Redeemable Redeemable



At 1 January 2002 337,856 - 517,077 17,838 12,486 (582,789) 302,468 Net loss for the year - - - - - (222,132) (222,132)

At 31 December 2002 337,856 - 517,077 17,838 12,486 (804,921) 80,336

Company Share Capital Non Distributable

CapitalRedemption




At 1 January 2003 337,856 - 517,077 17,838 12,486 (804,921) 80,336 Equity component of RCPS (Note 21) - 165,000 135,618 - - - 300,618 Net loss for the year - - - - - (59,953) (59,953)

At 31 December 2003 337,856 165,000 652,695 17,838 12,486 (864,874) 321,001

Capital reserve arose out of the transfer of the reserves of Malaya Borneo Building Society Limited as at 29 February 1972 to Malaysia BuildingSociety Berhad on 1 March 1972 via a Scheme of Arrangement and is not distributable as cash dividends.

Capital redemption reserve arose out of the redemption of redeemable cumulative preference shares and is not distributable as cash dividends.


STAT E M E N T OF CH A N G E S I N EQ U I T Y


CA S H FLO W STAT E M E N TS


61


Group Company

2003 2002 2003 2002 RM'000 RM'000 RM'000 RM'000

CASH FLOWS FROM OPERATING ACTIVITIESLoss before taxation (66,677) (124,514) (59,953) (222,132)Adjustments for:

Depreciation 7,016 8,560 844 1,405 Gain on disposal of property, plant and equipment (433) (46) (348) (46)(Reversal of) provision for anticipated losses on projects (774) 1,332 - - (Reversal of)/write down inventories of completed properties (439) 1,290 - - (Reversal of) provision for staff benefit (845) 1,095 (91) 977 Impairment loss on land held for development 2,486 59,531 35 5,695 Impairment loss on investments in subsidiaries - - 4,370 25,977 (Reversal of) impairment loss on property, plant and equipment (886) 33,877 - 259 Provision for doubtful debts of amount due from/loans to subsidiaries - - 13,986 52,465 Provision for doubtful debts of trade receivables 6,089 7,317 - - (Write back of) provision for doubtful debts of other receivables 12,769 (13,578) 2,230 10,403 Loan and financing loss and provision 36,905 44,102 40,876 87,712 Interest-in-suspense, net of recoveries and write offs 379,031 381,903 406,739 457,656 Provision for liabilities 1,023 - - -

Operating profit before working capital changes 375,265 400,869 408,688 420,371 Increase in loans, advances and financing (314,131) (244,487) (331,134) (241,213)Decrease in inventories of completed properties 1,051 5,858 - - Increase in receivables (16,508) (41,199) (3,309) (4,754)Increase in amount due from/to subsidiaries - - (9,958) (2,781)(Decrease)/Increase in bank borrowings (224,385) 156,681 (224,385) 156,681 Increase/(Decrease) in deposits 100,887 (133,135) 100,887 (133,135)Increase in payables 9,005 36,768 261 8,520 Decrease/(Increase) in development properties 4,805 (21,076) - -

Cash (used in)/generated from operations (64,011) 160,279 (58,950) 203,689 Taxes paid - (358) - (154)

Net cash (used in)/generated from operating activities (64,011) 159,921 (58,950) 203,535

CASH FLOWS FROM INVESTING ACTIVITIESLand held for development (2,765) (40,146) (134) (2,796)Purchase of property, plant and equipment (87) (160) (139) (137)Proceeds from disposal of property, plant and equipment 10,072 46 9,964 46 Proceeds from disposal of other investments 500 - - -

Net cash generated from/(used in) investing activities 7,720 (40,260) 9,691 (2,887)

CASH FLOWS FROM FINANCING ACTIVITIESDrawdown of other borrowings 170,000 - 170,000 - Repayment of other borrowings (22,706) (27,123) (22,706) (27,123)Loans sold to Cagamas (30,611) (12,568) (30,611) (12,568)Payment of staff benefit (420) (81) (420) (81)Loans to subsidiaries - - (11,395) (84,823)

Net cash generated from/(used in) financing activities 116,263 (39,772) 104,868 (124,595)

Net increase in cash and cash equivalents 59,972 79,889 55,609 76,053 Cash and cash equivalents at beginning of financial year 99,703 19,814 92,003 15,950 Cash and cash equivalents at end of financial year 159,675 99,703 147,612 92,003 Cash and cash equivalents comprise:

Cash and short term funds 159,675 99,703 147,612 92,003


NOT E S TO T H E FI N A N C I A L STAT E M E N TS

31 DECEMBER 2003

62


1. CORPORATE INFORMATION

The principal activity of the Company is the granting of loans on the security of freehold and leasehold properties. The principal activities of the subsidiariesare property development, project management, letting of real property and investment holding. There have been no significant changes in the nature of theprincipal activities during the financial year.

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Board of the Malaysia SecuritiesExchange Berhad. The registered office of the Company is located at 11th Floor, Wisma MBSB, 48 Jalan Dungun, Damansara Heights, 50490Kuala Lumpur.

The ultimate holding body is the Employees Provident Fund Board, a statutory body established in Malaysia.

The number of employees in the Group and in the Company at the end of the financial year were 471 (2002: 434) and 452 (2002: 397) respectively.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 26 March 2004.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

The financial statements of the Group and of the Company have been prepared under the historical cost convention and comply with theprovisions of the Companies Act, 1965 and applicable Approved Accounting Standards in Malaysia. The financial statements incorporate thoseactivities relating to Islamic Banking Scheme (“IBS”) which have been undertaken by the Group and by the Company.

IBS refers generally to the acceptance of deposits and granting of financing under the principles of Shariah.

During the financial year ended 31 December 2003, the Group and the Company have adopted the following Malaysian Accounting Standards Board(“MASB”) Standards for the first time:

MASB 25 Income TaxesMASB 27 Borrowing CostsMASB 28 Discontinuing OperationsMASB 29 Employee Benefits

The effects of adopting MASB 25 are summarised in the Statements of Changes in Equity and further information is disclosed in Note 35 to thefinancial statements. The adoption of MASB 27, 28 and 29 have not given rise to any adjustments to the opening balances of accumulated losses of theprior and current year or to changes in comparatives.

(b) Basis of Consolidation

The consolidated financial statements include the financial statements of the Company and all its subsidiaries. Subsidiaries are those companies in whichthe Group has a long term equity interest and where it has power to exercise control over the financial and operating policies so as to obtain benefitstherefrom.

Subsidiaries are consolidated using the acquisition method of accounting. Under the acquisition method of accounting, the results of subsidiariesacquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effectivedate of disposal, as appropriate. The assets and liabilities of a subsidiary are measured at their fair values at the date of acquisition and these values arereflected in the consolidated balance sheet. The difference between the cost of an acquisition and the fair value of the Group’s share of the net assetsof the acquired subsidiary at the date of acquisition is included in the consolidated balance sheet as goodwill or negative goodwill arising onconsolidation.

Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the consolidated financial statements reflectexternal transactions only. Unrealised losses are eliminated on consolidation unless costs cannot be recovered.

63


2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.)

(b) Basis of Consolidation (Contd.)

The gain or loss on disposal of a subsidiary company is the difference between net disposal proceeds and the Group’s share of its net assets togetherwith any unamortised balance of goodwill and exchange differences which were not previously recognised in the consolidated income statement.

Minority interest is measured at the minorities’ share of the post acquisition fair values of the identifiable assets and liabilities of the acquiree.

(c) Goodwill

Goodwill represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable assets and liabilities of a subsidiaryat the date of acquisition. Goodwill is stated at cost less accumulated amortisation and impairment losses. The policy for the recognition andmeasurement of impairment losses is in accordance with Note 2(p). Goodwill arising on the acquisition of subsidiaries is presented separately in thebalance sheet.

Goodwill is written off or credited in full to the income statement as and when development is undertaken on the properties of the subsidiaries.

(d) Investments in Subsidiaries

The Company’s investments in subsidiaries are stated at cost less impairment losses. The policy for the recognition and measurement of impairmentlosses is in accordance with Note 2(p).

On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is recognised in the income statement.

(e) Interest on Loans, Advances and Financing

In respect of end finance, interest receivable is computed at yearly and monthly rests. For yearly rests, interest debited to the loans account in any yearis based on the balance at 31 December of the previous year, and on loans disbursed during the year, interest is charged accordingly from the day ofdisbursement to the end of the financial year in which it is made. For monthly rests, interest debited to the loans account in any month is based on thebalance at the end of the previous month, and on loans disbursed during the month, interest is computed from the day of disbursement to the end ofthe month in which it is made.

In the case of bridging and term loans, interest receivable is computed on monthly rests so that interest debited to the bridging and term loans accountin any month is based on the balance at the end of the previous month, and on loans disbursed during the month, interest is computed from the day ofdisbursement to the end of the month in which it is made.

(f) Revenue Recognition

Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of therevenue can be measured reliably.

(i) Interest and Financing Income

Interest income and income from the Islamic Banking Scheme business are recognised on the accrual basis.

Where an account is classified as non-performing, interest is suspended with retrospective adjustment made to the date of first default until it isrealised on a cash basis. Customers’ accounts are classified as non-performing where repayments are in arrears for six (6) months or more.

(ii) Development properties

Revenue from sale of development properties is accounted for by the percentage of completion method. The percentage of completion isdetermined by reference to the costs incurred to date to the total estimated costs where the outcome of the projects can be reliably estimated. Allanticipated losses on development properties are fully provided for.

64



(f) Revenue Recognition (Contd.)

(iii)Others

Loans arrangement fees and commissions are recognised as income based on contractual arrangements.

Commitment fees are recognised as income based on time apportionment.

Income from project management is recognised as and when the service is rendered.

Rental income is recognised on an accrual basis.

(g) Provision for Bad and Doubtful Debts

Specific provisions are made for bad and doubtful debts which have been individually reviewed and specifically identified as bad and doubtful. In thecase of loans advanced for joint venture developments where the actual moratorium period is six (6) months or more and where the collateral valued onan estimated realisable basis is lower than the principal amount outstanding, specific provisions equivalent to the deficit are made.

In addition a general provision based on a percentage of loan receivable is also made to cover possible losses which are not specifically identified.

An uncollectable loan or portion of a loan classified as bad is written off after taking into consideration the realisable value of collateral, if any, by thedirectors where in the judgement of the management, there is no prospect of recovery.

(h) Property, Plant and Equipment and Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The policy for the recognition and measurementof impairment losses is in accordance with Note 2(p).

Freehold land is not depreciated. Leasehold land is depreciated over the period of the respective leases which range from 73 years to 999 years.

Depreciation of other property, plant and equipment is provided for on a straight line basis to write off the cost of each asset to its residual value overthe estimated useful life at the following annual rates:

Buildings 2.5%Building renovation 20.0%Furniture and equipment 20.0%Motor vehicles 20.0%Data processing equipment 20.0%

Upon the disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and the net carrying amount isrecognised in the income statement.

(i) Employee Benefits

(i) Short term benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered byemployees of the Group. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered byemployees that increase their entitlement to future compensated absences, and short term non-accumulating compensated absences such as sickleave are recognised when the absences occur.

(ii) Defined contribution plans

As required by law, companies in Malaysia make contributions to the state pension scheme, the Employees Provident Fund (“EPF”). The Group alsocontributes 4% of gross salary of participating employees to the Malaysia Building Society Berhad Staff Provident Fund. Such contributions arerecognised as an expense in the income statement as incurred.

65



(i) Employee Benefits (Contd.)

(iii)Provision for staff benefit

Provision for staff benefit is made in the financial statements for certain monetary payments that the Company may consider at its absolutediscretion to some employees upon their retirement, death, permanent disability, or leaving employment prior to retirement age but aftercompleting 15 or more years of service.

This provision is made based on the maximum possible allocation of 10% of salary over the number of years of service of their employees. As themaximum possible allocation has been provided for, no actuarial valuation has been obtained by the Company. The directors are of the opinionthat the present value of the benefit will not be materially different from the amount of provision made in the financial statements.

(j) Development Properties and Land Held for Development

Land and development expenditure are classified as development properties when significant development work has been undertaken and is expectedto be completed within the normal operating cycle. Development properties are stated at cost plus attributable profits/losses less foreseeable losses andprogress billings. Cost includes cost of land, all direct building costs, and other related development expenditure, including interest expenses incurredduring the period of active development.

Land held for development consists of land held for future development and where no significant development has been undertaken and is stated at cost.Cost includes cost of land and attributable development expenditure. Impairment loss is made after comparing the cost with the open market value orthe net recoverable value, whichever is higher. Such assets are classified as development properties when significant development work has been undertaken and the development is expected to be completed within the normal operating cycle.

(k) Inventories of Completed Properties

Inventories of completed properties are stated at the lower of cost (determined on the specific identification basis) and net realisable value. Cost includecosts of land, construction and appropriate development overheads.

(l) Provisions for Liabilities

Provisions for liabilities are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow of resourcesembodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed ateach balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of aprovision is the present value of the expenditure expected to be required to settle the obligation.

(m) Liabilities

Deposits from customers, bank and financial institutions are stated at placement values. Other liabilities are stated at cost which is the fair value of theconsideration to be paid in the future for goods and services received.

(n) Income Tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respectof the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date.

Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilitiesand their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences anddeferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable thattaxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred taxis not recognised if the temporary difference arises from goodwill or negative 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 nor taxable profit.

66



(n) Income Tax (Contd.)

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax ratesthat have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised in the income statement, except when it arises froma transaction which is recognised directly in equity, in which case the deferred tax is also charged or credited directly in equity, or when it arises from abusiness combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or negative goodwill.

Prior to the adoption of MASB 25 Income Taxes on 1 January 2003, deferred tax was provided for using the liability method in respect of significanttiming differences and deferred tax assets were not recognised unless there was reasonable expectation of their realisation. This change in accountingpolicy has been accounted for retrospectively and the effects of this change are disclosed in Note 35.

(o) Cash and Cash Equivalents

For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at banks, deposits at call and short term highly liquidinvestments which have an insignificant risk of changes in value, net of outstanding bank overdrafts.

(p) Impairment of Assets

At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication of impairment. If anysuch indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount isthe higher of net selling price and value in use, which is measured by reference to discounted future cash flows.

An impairment loss is recognised as an expense in the income statement immediately. Reversal of impairment losses recognised in prior years isrecorded when the impairment losses recognised for the asset no longer exist or have decreased.

(q) Other Non-Current Investments

Non-current investments other than investments in subsidiaries are stated at cost less impairment losses. The policy for the recognition andmeasurement of impairment losses is in accordance with Note 2(p).

On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the income statement.

(r) Trade and Other Receivables

Trade receivables comprise of amount due from customers for properties rented out and sold and project management fee receivables. Trade and otherreceivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate is made for doubtful debts based on areview of all outstanding amounts as at the balance sheet date.

(s) Trade Payables

Trade payables comprise of amount due to contractors for property development projects. Trade payables are stated at cost which is the fair value ofthe consideration to be paid in the future for goods and services received.

(t) Interest-Bearing Borrowings

Interest-bearing borrowings are recorded at the amount of proceeds received, net of transaction costs.

Borrowing costs directly attributable to land held for development and development properties are capitalised during the period of active developmentand until they are ready for their intended purpose. All other borrowing costs are recognised as an expense in the income statement in the period inwhich they are incurred.

(u) Redeemable Convertible Preference Shares

Redeemable Convertible Preference Shares (“RCPS”) are regarded as compound instruments, consisting of a liability component and an equitycomponent. At the date of issue, the fair value of the liability component is estimated based on the present value of the dividend obligations.

67



(u) Redeemable Convertible Preference Shares (Contd.)

The difference between the proceeds of issue of the RCPS and the fair value assigned to the liability component, representing the conversion option, isincluded in shareholders’ equity.

The liability component is subsequently stated at cost adjusted for the present value of the dividend obligation when the dividend is payable, untilextinguished on conversion or redemption whilst the value of the equity component is not adjusted in subsequent periods.

(v) Equity Instruments

Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared.

The transaction costs of an equity transaction are accounted for as a deduction from equity, net of tax. Equity transaction costs comprise only thoseincremental external costs directly attributable to the equity transaction which would otherwise have been avoided.

(w) Financial Instruments

Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instrument. Theaccounting policies on recognition and measurement of these items are disclosed in their respective accounting policies.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends and gainsand losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instrumentsclassified as equity are charged directly to equity. Financial instruments are offset when the Group has a legally enforceable right to offset and intendsto settle either on a net basis or to realise the asset and settle the liability simultaneously.

3. CASH AND SHORT TERM FUNDS

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Cash in hand 348 3,769 338 3,759Cash at banks 19,466 14,875 7,413 7,185Deposits with financial institutions 139,861 81,059 139,861 81,059

159,675 99,703 147,612 92,003

Included in cash at banks of the Group are amounts of RM8,275,000 (2002: RM6,269,000) held pursuant to Section 7A of the Housing Developers(Control and Licensing) Act, 1966 and are therefore restricted from use in other operations.

4. TRADE RECEIVABLES

Group2003 2002

RM'000 RM'000

Trade receivables 19,596 16,733 Less: Provision for doubtful debts (15,218) (9,129)

4,378 7,604

Included in trade receivables are retention sums on contracts amounting to RM16,000 (2002: RM29,000). The Group’s normal trade credit terms rangefrom 7 to 30 (2002: 7 to 30) days. Other credit terms are assessed and approved on a case-by-case basis. The Group has no significant concentration ofcredit risk within trade receivables that may arise from exposures to a single debtor or to groups of debtor.

5. OTHER RECEIVABLES

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000

Unsecured advances for joint ventures in respect of privatisation projects 102,243 92,094 - -

Unsecured advances to Employees Provident FundBoard’s projects 40,492 38,891 16,058 14,852

Loan to Centralpolitan Development Sdn. Bhd. 8,960 8,185 8,960 8,185Loan commitment fees 8,245 8,428 8,245 8,428Amount due from subsidiaries - - 41,519 31,562Interest to be waived under a restructuring scheme (Note 8) 40,578 - 40,578 - Others 11,030 9,727 9,440 7,929

211,548 157,325 124,800 70,956 Less: Provision for doubtful

Debts (116,894) (63,547) (88,835) (41,168)

94,654 93,778 35,965 29,788

The unsecured advances to Employees Provident Fund Board relates to payments made on behalf to contractors for property development projects andinterest charged on these advances.

Amount due from subsidiaries totalling RM16,721,000 (2002: RM13,413,000) bears interest of 6.50% (2002: 4.11% to 6.50%) per annum and has no fixedterms of repayment.

The other amounts due from subsidiaries are unsecured, interest free and have no fixed terms of repayment.

The amount of interest to be waived under a restructuring scheme of RM40,578,000 (2002: Nil) relates to interest which is to be waived with a third partyborrower. The waiver of the interest is pending the borrower’s adherence to instalment payments of RM25,000,000 by 2006. The amount to be waived hasbeen fully provided against. The amount was reclassified from loans, advances and financing during the financial year.

Included in others of the Group and of the Company are rental deposits paid to ultimate holding body amounting to RM96,000 (2002:RM129,000) andRM96,000 (2002: RM96,000) respectively.

The Group has no significant concentration of credit risk within other receivables that may arise from exposures to a single debtor or to groups ofdebtor other than the unsecured advances for joint ventures in respect of privatisation projects and amounts claimed from the Employees ProvidentFund Board.

6. INVENTORIES OF COMPLETED PROPERTIES

Group2003 2002

RM’000 RM’000At cost 3,518 3,788 At net realisable value 28,457 28,799

31,975 32,587

The cost of inventories recognised as an expense was Nil (2002: RM7,148,000).

During the year, write-down of inventories of RM439,000 (2002: Nil) was reversed. The reversal arose from an increase in net realisable value as a result ofincrease in expected selling prices for certain properties during the year.

68


69


7. DEVELOPMENT PROPERTIES

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Cost:

Freehold land 219,307 219,307 116,447 116,447

Leasehold land 69,748 69,748 - -

Development expenditure 232,435 227,295 65,179 65,045

521,490 516,350 181,626 181,492

Less: Non-current portion, classified as

land held for development (Note 12) (447,919) (445,154) (181,626) (181,492)

73,571 71,196 - -

Less: Recognised losses (21,951) (15,739) - -

51,620 55,457 - -

Less: Foreseeable losses (27,613) (28,387) - -

Less: Progress billings (20,904) (19,936) - -

Current portion classified as development properties 3,103 7,134 - -

The development properties of the Group are registered under the names of the respective joint venture partners.

Included in development expenditure of the Group and of the Company are interest capitalised during the financial year amounting to RM142,000(2002: RM2,804,000) and Nil (2002: RM1,000) respectively.

Cost of development properties of the Group recognised as an expense during the financial year amounted RM1,497,000 (2002: RM14,128,000).

8. LOANS, ADVANCES AND FINANCING

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000

End finance:

Normal housing programme 1,170,968 1,172,829 1,173,632 1,175,737

Low cost housing programme 32,319 41,811 32,319 41,811

Bridging and term loans 4,794,042 4,522,404 5,003,601 4,709,170

Gross loans, advances and financing 5,997,329 5,737,044 6,209,552 5,926,718

Less: Interest-in-suspense (2,054,743) (1,727,896) (2,202,882) (1,842,781)

Less: Provision for doubtful debts:

- specific (672,639) (631,416) (769,506) (724,312)

- general (32,386) (36,966) (32,386) (36,966)

Net loans, advances and financing 3,237,561 3,340,766 3,204,778 3,322,659

70


8. LOANS, ADVANCES AND FINANCING (CONTD.)

(i) The maturity structure of loans, advances and financing are as follows:

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000

Maturing:

Within one year 4,602,522 4,514,856 4,811,520 4,701,871

One to three years 355,252 237,290 356,666 237,864

Three years to five years 62,641 35,695 63,328 36,374

After five years 976,914 949,203 978,038 950,609

5,997,329 5,737,044 6,209,552 5,926,718

(ii) Movements in non-performing loans, advances and financing (including interest and income receivable) are as follows:

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000 Non-performing loans (NPL)

Balance at beginning of year 4,449,909 3,379,384 4,547,158 3,874,857

Reclassified as non-performing during the year 435,434 1,321,841 547,067 930,424

Reclassified to other receivables (Note 5) (40,578) - (40,578) -

Recoveries (86,649) (100,185) (86,805) (106,992)

Declassification to performing loans (420,602) (70,171) (420,602) (70,171)

Amount written off (6,504) (80,960) (6,504) (80,960)

Balance at end of year 4,331,010 4,449,909 4,539,736 4,547,158

Ratio of net NPL (as a percentage

of total loans, advances and financing less specific

provision and interest-in-suspense) 54% 62% 53% 59%

(iii) Movements in the provision for doubtful debts and interest-in-suspense are as follows:

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000 Specific Provision

Balance at beginning of year 631,416 582,208 724,312 666,297

Provisions made during the year 91,104 95,971 95,075 139,581

Provision due to reclassification of joint venture loans (Note 29) - 34,803 - -

Amount written back in respect of recoveries and reversals (49,881) (53,481) (49,881) (53,481)

Amount written off - (28,085) - (28,085)

Balance at end of year 672,639 631,416 769,506 724,312

71


8. LOANS, ADVANCES AND FINANCING (CONTD.)

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000 General Provision

Balance at beginning of year 36,966 36,635 36,966 36,635

(Write back of) provisions during the year (4,580) 331 (4,580) 331

Balance at end of year 32,386 36,966 32,386 36,966

Interest-in-suspense

Balance at beginning of year 1,727,896 1,211,000 1,842,781 1,436,719

Interest suspended during the year 396,974 433,210 430,228 480,955

Interest suspended due to reclassification of joint venture loans (Note 29) - 158,579 - -

Reclassified to other receivables (Note 5) (40,578) - (40,578) -


Amount written off (6,060) (51,594) (6,060) (51,594)

Balance at end of year 2,054,743 1,727,896 2,202,882 1,842,781

The Group has no significant concentration of credit risk within loans, advances and financing that may arise from exposures to a single debtor or to groupsof debtor.

Included in bridging and term loans granted by the Company in respect of joint venture projects are the following non-performing amounts:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Loans to subsidiaries - - 150,195 135,917Loans to joint venture partners 1,251,040 1,240,319 1,251,040 1,240,319

1,251,040 1,240,319 1,401,235 1,376,236

Included in loans, advances and financing of the Group and of the Company are loan receivables pledged to the Employees Provident Fund Board ofRM650,000,000 (2002: RM600,000,000) as security for EPF revolving loans as disclosed in Note 16.

72


9. OTHER INVESTMENTS

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Quoted shares, at cost 1,294 - 1,294 -

Quoted warrants, at cost 106 - 106 -

Quoted Irredeemable Convertible Unsecured Loan

Stock (“ICULS”), at nominal value 16,359 16,359 16,359 16,359

Unquoted shares, at cost - 500 - -

17,759 16,859 17,759 16,359

Less: Accumulated impairment losses (16,359) (16,359) (16,359) (16,359)

1,400 500 1,400 -

Market value:

Quoted shares 1,424 - 1,424 -

Quoted warrants 367 270 367 270

Quoted ICULS - - - -

1,791 270 1,791 270

The unquoted shares in the prior year represents MBSB Development Sdn. Bhd.’s 18% interest in the issued and paid up share capital of CentralpolitanDevelopment Sdn. Bhd., a company incorporated in Malaysia and whose principal activity is property development. The unquoted shares were disposedof in the current financial year.

The quoted ICULS was granted under a loan restructuring exercise in 1999 in lieu of interest settlement on a term loan from 1999 to 2004. TheCompany was also granted 4,907,685 quoted detachable warrants 2000/2005 under the exercise.

During the financial year, the Company was granted 2,006,164 quoted shares and 401,233 quoted warrants under a debt settlement arrangementinvolving a corporate guarantor of a borrower.

10. LOANS TO SUBSIDIARIES

Company2003 2002

RM'000 RM'000

Secured 34,829 32,675 Unsecured 182,118 172,877

216,947 205,552 Less: Provision for doubtful debts (70,354) (61,227)

146,593 144,325

The loans to subsidiaries have no fixed terms of repayment.

The secured loans are secured against landed properties with carrying values amounting to RM4,606,000 (2002: RM4,644,000).

The weighted average effective annual interest rates of loans to subsidiaries at the balance sheet date were 6.40% (2002: 6.40%) per annum.

73


11. INVESTMENTS IN SUBSIDIARIES

Company2003 2002

RM'000 RM'000

Unquoted shares at cost 210,803 210,803

Less: Accumulated impairment losses (142,839) (138,469)

67,964 72,334

Details of the subsidiaries are as follows:

Effective InterestHeld (%)

Name of Subsidiaries 2003 2002 Principal Activities

MBSB Properties Sdn. Bhd. 100 100 Letting of real propertyMBSB Development Sdn. Bhd. 100 100 Property development MBSB Project Management Sdn. Bhd. 100 100 Project management Prudent Legacy Sdn. Bhd. 51 51 Property development Sigmaprise Sdn. Bhd. 100 100 Letting of real property Gadini Sdn. Bhd. 100 100 Property development Ganesha Sdn. Bhd. 100 100 Property development Springtide Sdn. Bhd. 100 100 Property development Trimonds Sdn. Bhd. 100 100 Investment holding Supreme Design Sdn. Bhd. 100 100 Ceased operations Definite Pure Sdn. Bhd. 100 100 DormantMalaya Borneo Building Society Limited (MBBS)* 100 100 Dormant MBSB Land Sdn. Bhd. 100 100 Dormant Longterm Pride Sdn. Bhd. 100 100 Dormant Farawide Sdn. Bhd. 100 100 Dormant Maxroute Sdn. Bhd. 100 100 Dormant Raynergy Sdn. Bhd. 100 100 Dormant

* Audited by firm of auditors other than Ernst & Young

All the above subsidiaries are incorporated in Malaysia except for MBBS which was incorporated in Singapore.

12. LAND HELD FOR DEVELOPMENT

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Land held for development (Note 7) 447,919 445,154 181,626 181,492

Less: Accumulated impairment losses (179,225) (176,739) (93,333) (93,298)

268,694 268,415 88,293 88,194

Included in land held for development of the Group is a property with carrying value of RM24,000,000 (2002: RM25,500,000) on which a DevelopmentAgreement had been signed with a third party. As consideration for granting development rights on this land, the Group will receive 48 units of serviceapartments upon completion of the development.

74


12. LAND HELD FOR DEVELOPMENT (CONTD.)

Included in land held for development are the following carrying values in respect of:

Group and Company2003 2002

RM'000 RM'000

Title registered under the name of a subsidiary 8,200 8,200

Pending transfer of title from a third party 700 700

8,900 8,900

13. PROPERTY, PLANT AND EQUIPMENT

Group Long Shortterm term Furniture Data

Freehold leasehold leasehold Building and Motor processingland land land Buildings renovation equipment vehicles equipment Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At 1 January 2003 25,549 11,400 318 173,946 8,223 16,824 1,854 11,645 249,759

Additions 40 - - - - 21 4 22 87

Disposals (58) - - (10,336) (39) (38) (1,185) - (11,656)

At 31 December 2003 25,531 11,400 318 163,610 8,184 16,807 673 11,667 238,190

Accumulated Depreciation and

Impairment Losses

At 1 January 2003 3,600 393 76 55,785 7,805 10,311 1,421 10,995 90,386

Depreciation charge for the year - 150 15 3,682 198 2,220 254 497 7,016

Disposals - - - (883) (39) (38) (1,057) - (2,017)

Reversal of impairment losses (33) - - (853) - - - - (886)

At 31 December 2003 3,567 543 91 57,731 7,964 12,493 618 11,492 94,499

Net Book Value

At 31 December 2003 21,964 10,857 227 105,879 220 4,314 55 175 143,691

At 31 December 2002 21,949 11,007 242 118,161 418 6,513 433 650 159,373

Depreciation charge for 2002 - 150 15 4,686 265 2,273 299 872 8,560

75


13. PROPERTY, PLANT AND EQUIPMENT (CONTD.)

Company Furniture DataFreehold Building and Motor processing

land Buildings renovation equipment vehicles equipment TotalRM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At 1 January 2003 201 10,875 2,541 5,336 1,477 11,0151 31,445

Additions 40 - 3 27 43 26 139

Disposals (58) (10,336) (39) (22) (1,082) - (11,537)

At 31 December 2003 183 539 2,505 5,341 438 11,041 20,047

Accumulated Depreciation and

Impairment Losses

At 1 January 2003 - 907 2,402 5,234 1,189 10,532 20,264

Depreciation charge for the year - 143 54 70 191 386 844

Disposals - (883) (39) (22) (977) - (1,921)

At 31 December 2003 - 167 2,417 5,282 403 10,918 19,187

Net Book Value

At 31 December 2003 183 372 88 59 35 123 860

At 31 December 2002 201 9,968 139 102 288 483 11,181

Depreciation charge for 2002 - 272 52 103 213 765 1,405

Included in freehold land and buildings are land and buildings with net book values which are:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Pending subdivision of titles 22,062 22,633 312 322Charged to the ultimate holding body for loans

which had been fully settled 28,803 29,059 266 270

The cost of property, plant and equipment which have been fully depreciated but still in use are as follows:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Building renovation 7,301 7,165 2,240 2,279 Furniture and equipment 5,821 5,704 5,135 5,013 Motor vehicles 401 426 395 416Data processing equipment 10,986 9,159 10,599 9,113

24,509 22,454 18,369 16,821

76


14. BANK BORROWINGS

Bank borrowings are unsecured and interest charged on these borrowings is based on the lenders' cost of funds plus 0.50% to 1.00% (2002: cost of fundsplus 0.50% to 1.00%). The interest charged on these borrowings during the year ranged from 3.70% to 7.00% (2002: 3.70% to 7.90%) per annum. Thebank borrowings are due within one year.

15. DEPOSITS


RM'000 RM'000

Fixed deposit 1,168,067 1,117,180

(i) The maturity structure of fixed deposits are as follows:

Due within six months 957,648 1,016,420 Six months to one year 144,191 87,250 One year to three years 28,400 3,150 Three years to five years 37,828 10,360

1,168,067 1,117,180

(ii) The deposits are sourced from the following customers:

Government and statutory body 259,880 240,889 Business enterprises 732,765 806,589 Individuals 171,431 48,309 Others 3,991 21,393

1,168,067 1,117,180

16. OTHER BORROWINGS


RM'000 RM'000Short Term Borrowings

Secured:EPF revolving loans 422,997 2,439 Bank Negara Malaysia loans 12,247 15,052 Special housing loans 8,600 8,600

443,844 26,091

Long Term Borrowings

Secured:EPF revolving loans 170,000 700,000 Bank Negara Malaysia loans 11,230 23,089 Special housing loans 19,800 28,400 Debenture loans 364,619 364,619

565,649 1,116,108

16. OTHER BORROWINGS (CONTD.)


RM'000 RM'000

Total BorrowingsEPF revolving loans 592,997 702,439 Bank Negara Malaysia loans 23,477 38,141 Special housing loans 28,400 37,000 Debenture loans 364,619 364,619

1,009,493 1,142,199

Maturity of borrowings:Within one year 443,844 26,091 One year to three years 560,824 1,099,796 Three years to five years 4,825 15,300 After five years - 1,012

1,009,493 1,142,199

The weighted average effective annual interest rates of borrowings at the balance sheet date were as follows:


% %

EPF revolving loans 3.79 3.70 Bank Negara Malaysia loans 3.44 3.50 Special housing loans 6.29 7.00 Debenture loans 5.74 7.00

The EPF revolving loans are secured by loans receivable with a carrying value of RM650 million (2002: RM600 million). Interest charged on these loansis subject to annual review. Interest payable on the loans is due and payable and accordingly, has been classified as current liabilities. The loans areredeemable in 2004 and 2005.

Bank Negara Malaysia loans are for financing the Low Cost Housing Finance Programme and are secured by assets arising from the said Programme witha carrying value of RM26,180,000 (2002: RM34,799,000). The payment of interest on each drawdown commences two (2) years after the respective datesof drawdown and thereafter is payable annually. The principal of each drawdown is repayable over a twenty (20) year period commencing three (3) yearsafter the date of drawdown.

Special housing loans are from the Employees Provident Fund Board for the purpose of financing the Low Cost Housing Finance Programme and aresecured by a guarantee issued by the Federal Government of Malaysia. The first interest payment commences two (2) years after the date of eachdisbursement of the loan and thereafter is payable on 31 December of each year. The loan is repayable by five (5) equal annual instalments, commencingon the corresponding date in the twenty-first (21) year following the date in which the disbursement was made and thereafter on the same date in eachsubsequent year.

The debenture loans are provided by the Employees Provident Fund Board. These debenture loans are secured by way of a first floating charge on theCompany’s assets except assets arising from the Low Cost Housing Finance Programme, the Public Low Cost Housing Programme and the loansreceivable pledged for EPF revolving loans.

77


78


17. TRADE PAYABLES

Included in trade payables are retention sums on contracts amounting to RM3,341,000 (2002: RM3,276,000).

Included in trade payables of the Group are amounts due to the Employees Provident Fund Board amounting to RM4,767,000 (2002: RM4,767,000).

The normal trade credit terms granted to the Group range from 30 to 60 days.

18. OTHER PAYABLES

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Due to a corporate shareholder of a subsidiary 177,705 160,584 - - Consultants’ and contractors’ fee payable 10,663 9,855 8,521 8,521 Due to subsidiaries - - 3,522 3,523 Others 18,289 20,584 15,440 15,179

206,657 191,023 27,483 27,223

The amounts due to subsidiaries are unsecured, interest free and have no fixed terms of repayment.

19. LOANS SOLD TO CAGAMAS


RM'000 RM'000Maturing within 12 months 47,229 49,550 Maturing after 12 months 17,675 45,965

64,904 95,515

These amounts relate to proceeds received from conventional housing loans sold to Cagamas Berhad with recourse to the Company. Under the agreement,the Company undertakes to administer the loans on behalf of Cagamas Berhad and to buy back any loans which are regarded as defective based onpre-determined criteria. These loans are repayable as follows:


RM'000 RM'000

2003 - 49,550 2004 47,229 45,965 2005 1,608 -2006 1,664 - 2007 1,723 - 2008 12,680 -

64,904 95,515

20. DEFERRED TAXATION

Group2003 2002

RM'000 RM'000

At 1 January 27,511 27,585 Recognised in the income statement (Note 33) 75 (74)

At 31 December 27,586 27,511

20. DEFERRED TAXATION (CONTD.)

Deferred tax liability relates to deferred tax on fair value adjustment of freehold and leasehold land.

Deferred tax assets of the Group and of the Company amounting to RM306,747,000 (2002: RM286,189,000) and RM246,806,000(2002: RM234,485,000) respectively have not been recognised in respect of the following items:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Unutilised tax losses 141,054 120,037 108,087 98,200 Provision for doubtful debts 50,552 51,838 76,226 73,596 Impairment losses on land held for development 49,984 49,487 26,162 26,123 Interest-in-suspense 33,216 33,216 33,216 33,216 Impairment losses on property, plant and equipment 9,322 9,638 6 73Provision for anticipated losses on projects 7,732 7,949 - -Unabsorbed capital allowances 6,285 5,104 126 106 Accelerated capital allowances 4,166 4,197 67 14 Others 4,436 4,723 2,916 3,517

306,747 286,189 246,806 234,485

The unutilised tax losses and unabsorbed capital allowances are available indefinitely for offset against future taxable profits of the Company andsubsidiaries in which those items arose. Deferred tax assets have not been recognised in respect of these items as the Company and its subsidiaries have arecent history of losses.

21. REDEEMABLE CONVERTIBLE PREFERENCE SHARES

On 22 August 2003, the Company issued 165,000,000 of 5-year Redeemable Convertible Preference Shares ("RCPS") of RM1 each. The RCPS of 140million and 25 million was allotted to Employees Provident Fund Board, the ultimate holding body and to Permodalan Nasional Berhad, a corporateshareholder of the Company, respectively at an issue price of RM2 each, for additional working capital purposes.

The terms of the RCPS are as follows:

(a) Redemption : the RCPS is redeemable at the discretion of the Company at RM2 per RCPS at any time during the tenure of the RCPSbut excluding the maturity date.

(b) Conversion rights : the registered holders of the RCPS will have the option at any time during conversion period to convert the RCPS at theconversion rate into new ordinary shares of RM1 each in the Company.

(c) Conversion rate : on the basis of 1 RCPS for 2 new ordinary shares of RM1 each in the Company.

(d) Conversion period : period commencing from third anniversary of the issue date of the RCPS but excluding the maturity date provided themarket price of the Company's shares does not exceed RM1.20 for a consecutive period of 90 market days before the dateof the conversion notice.

(e) Maturity date : on the fifth anniversary from the date of issue of the RCPS.

(f) All remaining RCPS will be automatically converted into new ordinary shares of the Company within thirty days commencing immediately aftermaturity date.

79


80


21. REDEEMABLE CONVERTIBLE PREFERENCE SHARES (CONTD.)

(g) The RCPS carries a fixed cumulative dividend. Dividend is payable subject to the availability of distributable profits. The dividend is payableas follows:

- A dividend of 4% on the par value of RCPS for the period from issue date to 31 December 2003, payable in arrears on 28 February 2004.

- A dividend of 4% on the par value of RCPS for the period from 1 January 2004 to 31 December 2007, payable in arrears on 28 February aftereach financial year.

- No dividend is payable for the period from 1 January 2008 to the maturity date.

- No dividend is payable for any RCPS already redeemed or converted during the preceding twelve months period.

(h) The new ordinary shares to be allotted and issued upon conversion of the RCPS will rank pari passu in all respects with the existing ordinary sharesof the Company except that they shall not be entitled to any dividends, rights, allotments and/or other distribution, the entitlement date of whichprecedes the allotment date of the new ordinary shares.

The proceeds received from the issue of the RCPS have been partitioned between the liability component and the equity component. The fair value of theliability component is estimated based on the present value of the dividend obligations whilst the equity component represents the fair value of theconversion option. The RCPS are accounted for in the balance sheets of the Group and of the Company as follows:


RM'000 RM'000Proceeds from issue of RCPS 330,000 - Equity component (300,618) -

Liability component at the date of issue/31 December 29,382 -

22. PROVISION FOR LIABILITIES

Liquidated Ascertained Damages

Group 2003 2002

RM'000 RM'000

At 1 January - - Additional provision during the year 1,023 -

At 31 December 1,023 -

At 31 December:Current 1,023 -

Provision for liquidated ascertained damages is in respect of projects undertaken by certain subsidiaries. The provision is recognised for expectedliquidated ascertained damages claims based on the sale and purchase agreements.

23. PROVISION FOR STAFF BENEFIT

At the absolute discretion of the Company, certain monetary payments may be considered for some employees upon their retirement, death, permanentdisability or leaving employment prior to retirement age but after completing 15 or more years of service.

23. PROVISION FOR STAFF BENEFIT (CONTD.)

Movements in the provision for staff benefit in the current year were as follows:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

At 1 January 9,923 8,909 8,990 8,094 (Reversal of) provision during the year (Note 30) (845) 1,095 (91) 977 Payment during the year (420) (81) (420) (81)

At 31 December 8,658 9,923 8,479 8,990

24. SHARE CAPITAL

Number of Shares Amountof RM1 Each

2003 2002 2003 2002 '000 '000 RM'000 RM'000

Authorised:- Ordinary Shares

At 1 January 500,000 500,000 500,000 500,000 Created during the year 500,000 - 500,000 -

At 31 December 1,000,000 500,000 1,000,000 500,000

- Redeemable Cumulative Preference SharesAt 1 January 20,000 20,000 20,000 20,000 Created during the year 280,000 - 280,000 -

At 31 December 300,000 20,000 300,000 20,000

- Redeemable ConvertiblePreference SharesAt 1 January - - - - Created during the year 500,000 - 500,000 -

At 31 December 500,000 - 500,000 -

1,800,000 520,000 1,800,000 520,000

Issued and fully paid:- Ordinary Shares

At 1 January/31 December 337,856 337,856 337,856 337,856

- Redeemable Convertible Preference Shares(equity component)At 1 January - - - - Issued and paid-up during the year 165,000 - 165,000 -

At 31 December 165,000 - 165,000 -

502,856 337,856 502,856 337,856

81


82


24. SHARE CAPITAL (CONTD.)

(a) During the financial year, the Company increased its issued and paid-up share capital by way of the issuance of 165,000,000 Redeemable ConvertiblePreference Shares ("RCPS") of RM1 each through a restricted issue at an issue price of RM2, for additional working capital purposes. Theconsideration for the RCPS was settled via the conversion of EPF revolving loans and deposits of RM280 million and RM50 million respectively. Theterms of the RCPS are set out in Note 21.

(b) The Company implemented an Employee Share Option Scheme ("ESOS") which is governed by the by-laws and was approved by the shareholders atan Extraordinary General Meeting held on 23 June 2003.

The main features of the ESOS are as follows:

(i) The ESOS shall be in force for a period of five years commencing from 26 September 2003.

(ii) Eligible persons are employees of the Group (including executive directors) who is on the payroll of the Group other than a subsidiary which isdormant.

(iii) The total number of shares to be issued under the ESOS shall not exceed in aggregate 10% of the issued share capital of the Company at anypoint of time during the tenure of the ESOS.

(iv) The option price for each share shall be the average of the mean market quotation of the shares of the Company in the daily official list issuedby Malaysia Securities Exchange Berhad for the five trading days preceding the date of offer, or the par value of the shares of the Company ofRM1, whichever is higher.

(v) The actual number of new shares which may be offered to an eligible employee shall be at the discretion of the Option Committee and, subjectto any adjustment that may be made under Clause 15 of the by-laws, shall not be less than 200 shares but not more than maximum allowableallocation and shall always be in multiple of 200 shares.

(vi) An option granted under the ESOS shall be capable of being exercised by the grantee by notice in writing to the Company commencing fromthe date of the offer but before the expiry of five years from 26 September 2003 in respect of all or any part of the Company’s shares comprisedin the option, such part in multiples of 200 shares. Any partial exercise of an option shall not preclude the grantee from exercising the option inrespect of the balance of the Company’s shares comprised in the option.

(vii) All new ordinary shares issued upon exercise of the options granted under the ESOS will rank pari passu in all respects with the existing ordinaryshares of the Company other than as may be specified in a resolution approving the distribution of dividends prior to their exercise dates.

(viii) The persons to whom the options have been granted have no right to participate by virtue of the options in any share issue of any othercompany.

Information with respect to the number of options granted under the ESOS is as follows:

Number of Share Options2003 2002

At 1 January - - Granted 32,457,600 - Lapsed * (265,000) -

At 31 December 32,192,600 -

* Due to resignation of employees

Details of share options granted during the financial year and outstanding as at the end of the financial year are as follows:

Exercise Period Exercise Price Number of Share OptionsRM 2003 2002

26.9.2003 - 25.9.2008 1.00 32,192,600 -

25. OPERATING REVENUE

Operating revenue of the Company comprises gross interest income (after deducting net interest suspended), fee and commission income and other incomederived from granting of loans, including Islamic Banking Scheme operations.

Operating revenue of the Group comprises all types of revenue derived from the business of granting of loans, property development, propertymanagement and the letting of real property.

26. INTEREST INCOME

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Interest income 554,457 579,523 573,872 594,080 Less: Interest-in-suspense net of recoveries and write offs (379,031) (381,903) (406,739) (457,656)

175,426 197,620 167,133 136,424

27. INTEREST EXPENSE

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Bank borrowings 53,600 54,789 53,600 54,789 Other borrowings 67,420 59,284 44,736 53,701Deposits 42,631 38,008 42,631 38,008 Loans sold to Cagamas 3,232 4,421 3,232 4,421

166,883 156,502 144,199 150,919

28. OTHER NON-INTEREST INCOME

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Other operating revenue:Rental income 6,489 6,464 - - Sale of properties and development land (1,120) 9,960 - - Others 1,593 2,271 1,142 1,909

Other operating income:Gain on disposal of property, plant and equipment 433 46 348 46 Rental income - - - 48 Others 2,184 884 710 605

9,579 19,625 2,200 2,608

29. OTHER OPERATING EXPENSES

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Personnel costs (Note 30) 14,184 16,894 14,257 15,044 Establishment costs 9,353 8,767 7,292 6,935 Marketing costs 3 124 3 124 Administration and general expenses 23,207 98,705 22,662 100,430

46,747 124,490 44,214 122,533

83


84


29. OTHER OPERATING EXPENSES (CONTD.)

Included in other operating expenses are the following:

Group Company2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000 Auditors’ remuneration:

Statutory audits 87 87 60 60 Other services 35 302 20 302

Depreciation 7,016 8,560 844 1,405 Directors’ remuneration (Note 31) 74 92 74 92 Impairment loss on:

- investments in subsidiaries - - 4,370 25,977- land held for development* 2,486 59,531 35 5,695- property, plant and equipment - 34,451 - 259

Provision for liabilities 1,023 - - -(Write back of) provision for doubtful debts of:

- amount due from subsidiaries - - 4,859 3,304 - loans to subsidiaries - - 9,127 49,161 - trade receivables 6,089 7,317 - - - other receivables 12,769 (13,578) 2,230 10,403Rental of buildings 815 797 5,776 5,785 Reversal of impairment loss on property,

plant and equipment (886) (574) - -(Reversal of)/write down of

inventories of completed properties (439) 1,290 - -

* The amount in the prior year is net of specific provision and interest-in-suspense due to a reclassification of some development projects as loans duefrom joint venture partners.

Group2003 2002

RM'000 RM'000

(Reversal of) impairment loss on land held for development 2,486 (133,851)Interest-in-suspense (Note 8) - 158,579 Specific provision (Note 8) - 34,803

2,486 59,531

30. PERSONNEL COSTS

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Wages and salaries 10,296 11,111 9,735 9,688Social security costs 128 132 121 114 Pension costs:

- Employees Provident Fund 1,326 1,594 1,263 1,433 - other defined contribution plan 242 381 226 333

(Reversal of) provision for staff benefit (Note 23) (845) 1,095 (91) 977 Other staff related expenses 3,037 2,581 3,003 2,499

14,184 16,894 14,257 15,044

31. DIRECTORS’ REMUNERATION


RM'000 RM'000Directors of the CompanyNon-Executive:

Fees 55 70Other emoluments 23 22

Overprovision in prior year:Fees (3) -

Other emoluments (1) -

Total 74 92

The number of directors of the Company whose total remuneration during the year fall within the following band is as follows:

Number of Directors 2003 2002

Non-Executive Directors:Below RM50,000 7 10

32. LOAN AND FINANCING LOSS AND PROVISION

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

(Write back of) provision for bad and doubtful debts and financing:- specific 91,104 95,971 95,075 139,581 - general (4,580) 331 (4,580) 331


Bad debts and financing written off 262 1,281 262 1,281

36,905 44,102 40,876 87,712

33. TAXATION

Group2003 2002

RM'000 RM'000

Deferred tax:Relating to origination and reversal of temporary differences (Note 20) 75 (74)Overprovided in prior years - (364)

75 (438)

Income tax is calculated at the Malaysian statutory tax rate of 28% (2002: 28%) of the estimated assessable profit for the year.

85


86


33. TAXATION (CONTD.)

A reconciliation of income tax expense applicable to loss before taxation at the statutory income tax rate to income tax expense at the effective income taxrate of the Group and of the Company are as follows:

2003 2002RM'000 RM'000

Group

Loss before taxation (66,677) (124,514)

Taxation at Malaysian statutory tax rate of 28% (2002: 28%) (18,670) (34,864)Income not subject to tax (8,836) (24)Expenses not deductible for tax purposes 7,023 12,722 Deferred tax assets not recognised during the year 20,558 22,092 Overprovided in prior years - (364)

Tax expense/(income) for the year 75 (438)

Company

Loss before taxation (59,953) (222,132)

Taxation at Malaysian statutory tax rate of 28% (2002: 28%) (16,787) (62,197)Income not subject to tax - (24)Expenses not deductible for tax purposes 4,466 12,306 Deferred tax assets not recognised during the year 12,321 49,915

Tax expense for the year - -

Tax losses are analysed as follows:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Tax savings recognised during the year arising from:Utilisation of current year tax losses 2,511 1,710 2,511 1,710 Utilisation of tax losses brought forward from previous years 237 - - - Unutilised tax losses carried forward 503,763 428,703 386,025 350,714

Unabsorbed capital allowances are analysed as follows:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Tax savings recognised during the year arising from:Utilisation of current year capital allowances 64 7 64 7 Utilisation of unabsorbed capital allowances

brought forward from previous years 16 - - - Unabsorbed capital allowances carried forward 22,445 18,229 449 377

34. LOSS PER SHARE

(a) Basic

Basic loss per share is calculated by dividing the net loss for the year by the weighted average number of ordinary shares in issue during the financialyear.

Group2003 2002

Net loss for the year (RM'000) 66,752 124,076 Weighted average number of ordinary shares in issue ('000) 337,856 337,856 Basic loss per share (sen) 20 37

The comparative basic loss per share has been restated to take into account the effect of the change in accounting policy (Note 2(a) and Note 35) on netloss for the year.

(b) Diluted

The diluted loss per share is not presented as it is anti-dilutive.

Comparative diluted loss per share has not been presented as there were no potential ordinary shares outstanding during the previous financial year.

35. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENTS

(a) Changes in Accounting Policies

During the financial year, the Group and the Company applied four new MASB Standards, which became effective from 1 January 2003, andaccordingly modified certain accounting policies. The change in accounting policy due to the application of MASB 25 Income Tax resulted in prioryear adjustments.

Under MASB 25, deferred tax liabilities are recognised for all taxable temporary differences. Previously, deferred tax liabilities were provided for onaccount of timing differences only to the extent that a tax liability was expected to materialise in the foreseeable future. In addition, the Group and theCompany have commenced recognition of deferred tax assets for all deductible temporary differences, when it is probable that sufficient taxableprofit will be available against which the deductible temporary differences can be utilised. Previously, deferred tax assets were not recognised unlessthere was reasonable expectation of their realisation.

(b) Prior Year Adjustments

The change in accounting policy has been applied retrospectively and comparatives have been restated. The effects of the change in accountingpolicy are as follows:

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Effects on accumulated losses:At 1 January, as previously stated 815,508 691,358 804,921 582,789 Effects of adopting MASB 25 1,841 1,915 - -

At 1 January, as restated 817,349 693,273 804,921 582,789

Effects on net loss for the year:Net loss before changes in accounting policies 66,826 124,150 59,953 222,132Effects of adopting MASB 25 (74) (74) - -

Net loss for the year 66,752 124,076 59,953 222,132

87


88


35. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENTS (CONTD.)

Comparative amounts as at 31 December 2002 have been restated as follows:

PreviouslyStated Adjustments Restated

RM'000 RM'000 RM'000

Group

Deferred tax liabilities 25,670 1,841 27,511Accumulated losses 815,508 1,841 817,349

36. SIGNIFICANT RELATED PARTY TRANSACTIONS/BALANCES

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

Transactions/balances withEmployees Provident Fund Board, the ultimate holding body:

Expenses/(Income)

Interest on loans 43,703 52,232 43,703 52,232 Rental paid 362 408 362 364 Agency fees received (42) (57) (42) (57)

Balances Note

Debenture loans 16 364,619 364,619 364,619 364,619 EPF revolving loans 16 592,997 702,439 592,997 702,439 Special housing loans 16 28,400 37,000 28,400 37,000 Other receivables 5 40,588 39,020 16,154 14,948 Trade payables 17 4,767 4,767 - -

Transactions/balances with subsidiaries:

Expenses/(Income)

Interest received on loans/advances - - (35,054) (29,454)Interest received on loans for joint venture projects - - (3,276) (3,251)Rental paid - - 5,017 5,014 Management fees paid - - 71 64Rental received - - - (48)

Balances Note

Loans to subsidiaries 10 - - 216,947 205,552 Bridging and term loans 8 - - 209,559 186,766 Amount due from 5 - - 41,519 31,562 Amount due to 18 - - 3,522 3,523 End finance loans 8 - - 2,664 2,908

The directors are of the opinion that all the transactions/balances above have been entered into in the normal course of business and have beenestablished on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties.

37. COMMITMENTS AND CONTINGENCIES

Group Company2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

(i) Operational Commitments

Loan commitments not provided for in the financial statements:

End finance 410,360 269,544 410,360 269,544 Bridging and term loans 88,308 83,547 88,308 83,547

498,668 353,091 498,668 353,091

Property development:Approved and contracted for 539,936 739,620 - - Approved but not contracted for 12,804 12,421 - -

552,740 752,041 - -

Total 1,051,408 1,105,132 498,668 353,091

(ii) Capital Commitments

Property, plant and equipment:Approved and contracted for 4,822 14,216 4,822 14,216 Approved but not contracted for 1,771 - 1,771 -

6,593 14,216 6,593 14,216

(iii)Contingencies (Partly Secured)

Obligation to secure performance by third parties 322,000 322,000 322,000 322,000

The contingencies are partly secured by 2 pieces of land which had been provided as collateral for loans granted to third parties.

The excess of the security value over the net loans amount to RM53,782,000 (2002: RM53,782,000).

38. CONTINGENT LIABILITIES (UNSECURED)

(i) Upon default by a borrower, the Company has instituted a civil suit and foreclosure proceedings for the recovery of loan facilities. In turn theborrower and guarantors have filed a counter claim against the Company amounting to RM592.03 million as damages for alleged loss of profit.

In respect of the civil suit, the borrower and the guarantors application to amend their defence and statement of claim was allowed by the Court. TheCompany has filled an Appeal against such decision. The Court has yet to fix the latest date for Hearing to the said Appeal. The borrower and theguarantors have also filled an application to strike out various paragraphs in the Company’s Reply to the borrower’s Amended Defence andCounterclaim. The Court has yet to fix the latest date for the Hearing of this application.

In respect of the foreclosure proceedings, the Company has to date obtained an Order for Sale in relation to the property pledged to the Company assecurity for the loan facilities. The borrower has filled an appeal to set aside the Order. The Court has yet to fix the date for the Hearing of theborrower’s Appeal.

The Company has entered into a settlement agreement with the borrower and the guarantors wherein partial payment of the outstanding sum havealready been paid to the Company by installments. All legal proceedings have been kept in abeyance pending full settlement of the outstanding amountas set out in the settlement agreement.

89


90


38. CONTINGENT LIABILITIES (UNSECURED) (CONTD.)

(ii) In a civil suit brought against the Company, a borrower is claiming the amount of RM400.31 million for an alleged breach of the loan agreementcommitted by the Company.

The borrower’s Appeal against the Court’s decision to dismiss their application for Summary Judgement was dismissed on 11 March 2004. The Courthas yet to fix a date for Case Management with regard to this matter.

(iii) In a civil suit brought against the Company, a borrower is claiming RM1.48 million for an alleged breach of the loan agreement committed by theCompany.

The borrower has not as yet set the matter down for trial.

(iv) In two civil suits brought against the Company, a contractor appointed by one of the Company’s borrower is claiming damages amounting to RM2.54million for an alleged breach of contract. The suits were filled in the High Court at Kuala Lumpur as well as in the High Court at Kota Bharu.

The Contractor’s application for Summary Judgement has been dismissed by the Court. Both suits have been since consolidated and will be heard inthe High Court at Kuala Lumpur.

The Court has fixed 25 April 2004 for Case Management with regard to this matter.

(v) Upon default by a borrower, the Company has proceeded with foreclosure proceeding to foreclose the property provided by a third party charger assecurity for the facilities granted to the borrower. In turn the third party charger has proceeded with a legal suit against the Company for an allegedbreach of the terms relating to the Charge. The matter is now fixed for Case Management on 9 May 2004.

In respect of the foreclosure proceedings, the Company has to date obtained an Order for Sale. An Auction was held on 28 October 2003 but wasaborted by the Land Office as there were no bidders. The owner has filed a motion in Court to set aside the Order for Sale.

The date for decision of this matter being 16 March 2004 was vacated as the judge was on leave on that day. The Court will inform the parties of thenext date to deliver its decision on this matter.

(vi) In a civil suit brought against the Company, a borrower is claiming damages amounting to RM134.408 million as a result of the Company’s failure toperform its obligations under the Loan Agreement.

The Case Management for the matter on 19 February 2004 has been adjourned to 14 April 2004.

(vii) In a civil suit taken out by the Company against a borrower and three other parties (the “Defendants”), the Company has sought from the Court aDeclaration that the Loan Agreement and the Joint Venture Agreement entered into between the parties are void and of no effect and to claim fordamages amounting to RM59.499 million from the Defendants, together with general damages, interest and costs.

In turn the 3rd and 4th Defendants, have filed a counter claim seeking damages amounting to RM185.1 million for alleged breach of Joint VentureAgreement, estimated general damages of RM750 million, the amount of which is to be determined by the Court and an indemnity as to all costs,damages payable to third parties.

The Company has filled its Reply and Defence to the Defence and Counterclaim on 30 October 2003.

The Court has yet to fix a date for Case Management with regard to this matter.

The directors after obtaining advice from the Company’s solicitors, are the opinion that the Company has reasonably good cases in respect of all the claimsagainst the Company and as such, no provision has been made in the financial statements.

39. SIGNIFICANT EVENT

On 22 August 2003, the Company allotted and issued 140 million and 25 million Redeemable Convertible Preference Shares ("RCPS") via a restrictedissue to Employees Provident Fund Board and Permodalan Nasional Berhad respectively.

Details of the RCPS have been disclosed in Note 21 and Note 24.

40. COMPARATIVES

The following balance sheet comparative figures have been reclassified to conform with current year's presentation:

AsPreviously As

Stated Adjustments RestatedRM'000 RM'000 RM'000

Group

Current AssetsOther receivables 96,606 (2,828) 93,778

Current LiabilitiesTrade payables 72,339 (2,828) 69,511

The above reclassification has been made as the directors believe it better reflects the net position of amount due from a joint venture partner.

Other than the above, the presentation and classification of items in the current year financial statements have been consistent with the previous financialyear except that certain comparative amounts have been adjusted as a result of the change in accounting policy as disclosed in Note 2(a) and Note 35.

41. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and Policies

The risks identified by the Group are categorised as market, credit, operational and strategic risks. The market risk includes the interest rate andliquidity risks. The credit risk addresses credit factors such as credit limit, collateral and valuation of assets and classification by default. The operationalrisk encompasses the legal, human resource, information technology and reputational risks.

The Board of Malaysia Building Society Berhad ("MBSB") through the Audit and Risk Management Committee (ARMCO) ensures that sufficientcontrol is in place to identify and minimise financial risks and policies are adhered.

The manuals of all divisions, departments and branches are to be regularly reviewed and adhered to by all business and supervisory units to ensureprocesses of risk identification, quantification, mitigation and reporting of risk based capital exposure of the Group are addressed and in place.

(b) Operational Risk

Operational risk is the risk of potential loss due to failures or inadequacies of internal operating procedures resulting in inefficiency, reduction inproductivity and increase in operating cost. Employees' risk will also impact the operational risk subject to quality and skills of the employees inaddressing the various risks.

Three supervisory management committees, namely Management Committee (MANCO), Asset and Liability Committee (ALCO) and CreditCommittee, monitor the compliance of the Group's policies on the operational risk arising from any failure in the internal operation process. Theinternal operation process is currently being reviewed.

(c) Market Risk

Market risk is the risk of potential loss as a result of changes in the intrinsic value of financial instruments caused by the movement in market variablessuch as interest rates, equity prices and other related macro economic factors that will eventually affect the profitability and liquidity gap monitoring ofsources and uses of funds.

The ALCO supervises the market risk exposure by monitoring the fluctuations in net interest income or investment value from the impact in marketrisk factors affecting the Company.

91


92


41. FINANCIAL INSTRUMENTS

(i) Interest Rate Risk

Interest rate risk is the risk of potential earnings movement arising from movements in interest rates.

The Company's existing policy on interest rate risk is to maximise Net Interest Income (NII) to be derived, increase in Net Interest Margin (NIM)and to minimise their volatility impact to the Company's assets and liabilities.

(ii)Liquidity Risk

Liquidity risk is the risk of potential losses as a result of mismatch exposure in the maturity of funding of the Group that could be affected byinterest rate risk and adverse cash flow position of the Group.

The policy on managing liquidity risk exposure arising from cash flow obligations are as follows:

- To ensure maximisation of earnings while maintaining adequate liquidity to meet expected and potential (unexpected funding) needs.- To match cash inflows and outflows within MBSB's natural market for loans and deposits.

(d) Credit Risk

Credit risk is the risk of loss due to credit assessment and valuation and inability of borrowers to perform their contractual obligations to the Company.

The Group mitigates the credit risk arising from credit and investment portfolio by ensuring that the credit exposures are subjected to approvedcounterparty limits (including single customer limit) and terms and conditions for granting of facilities such as borrower's credit worthiness, structureof lending facility, interest rate pricing and overall viability of the credit exposure.

The credit risk process incorporates compliance to the Company's policies and guidelines and credit procedures in order to improve efficiency in theprocessing of credit assessment and market risk impact, monitoring the quality of the Company's loan portfolio through the establishment of anappropriate credit risk environment and maintaining the appropriate credit administration and management of credit risk as well as independentcredit risk monitoring.

(e) Fair Values

The carrying amount and estimated fair values of financial instruments of the Group and of the Company as at the financial year end are as follows:

2003 Group CompanyCarrying Carrying

Note Amount Fair Value Amount Fair Value RM'000 RM'000 RM'000 RM'000

Financial AssetsCash and short term funds 3 159,675 159,675 147,612 147,612 Trade receivables 4 4,378 4,378 - - Other receivables

(excluding amount due from subsidiaries) 5 94,654 94,654 15,936 15,396

Amount due from subsidiaries 5 - - 20,029 * Loans, advances and financing 8 3,237,561 3,237,561 3,204,778 3,204,778 Other investments 9 1,400 1,791 1,400 1,791 Loans to subsidiaries 10 - - 146,593 *

93


41. FINANCIAL INSTRUMENTS (CONTD.)

(e) Fair Values (Contd.)

2003 (Contd.) Group CompanyCarrying Carrying

Note Amount Fair Value Amount Fair Value RM'000 RM'000 RM'000 RM'000

Financial LiabilitiesBank borrowings 14 1,046,072 1,046,072 1,046,072 1,046,072 Deposits 15 1,168,067 1,161,317 1,168,067 1,161,317 Other borrowings 16 1,009,493 1,009,493 1,009,493 1,009,493 Trade payables 17 62,882 62,882 - - Other payables

(excluding amount due to subsidiaries) 18 206,657 206,657 23,961 23,961

Amount due to subsidiaries 18 - - 3,522 * Loans sold to Cagamas 19 64,904 64,904 64,904 64,904 Redeemable convertible

preference shares 21 29,382 29,964 29,382 29,964

2002

Financial AssetsCash and short term funds 3 99,703 99,703 92,003 92,003 Trade receivables 4 7,604 7,604 - - Other receivables

(excluding amount due from subsidiaries) 5 93,788 93,788 14,852 14,852

Amount due from subsidiaries 5 - - 14,936 * Loans, advances and financing 8 3,340,766 3,340,766 3,322,659 3,322,659 Other investments 9 500 770 - 270 Loans to subsidiaries 10 - - 144,325 *

Financial LiabilitiesBank borrowings 14 1,270,457 1,270,457 1,270,457 1,270,457 Deposits 15 1,117,180 1,116,971 1,117,180 1,116,971 Other borrowings 16 1,142,199 1,142,199 1,142,199 1,142,199 Trade payables 17 69,511 69,511 - - Other payables

(excluding amount due to subsidiaries) 18 191,023 191,023 23,700 23,700

Amount due to subsidiaries 18 - - 3,523 * Loans sold to Cagamas 19 95,515 95,515 95,515 95,515

* It is not practical to estimate the fair values of amounts due from/to subsidiaries due principally to no fixed repayment term entered by the partiesinvolved and without incurring excessive costs.

The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:

(i) Cash and short term funds, Trade and Other receivables/payables and Deposits maturing within 12 months

The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments.

(ii) Loans, advances and financing, Bank borrowings, Deposits maturing after 12 months, Other borrowings, Loans sold to Cagamas

The fair value of floating rate loans receivable/payable is estimated to approximate their carrying value.

The fair value of fixed rate borrowings/deposits is estimated using discounted cash flow analysis, based on current incremental borrowing/depositrates for similar types of borrowing/deposit arrangements.

94


41. FINANCIAL INSTRUMENTS (CONTD.)

(iii) Other investments

The fair values of quoted investments are determined by reference to stock exchange quoted market bid prices at the close of the business on thebalance sheet date.

The fair value of unquoted shares is based on the estimated proceeds to be obtained on its disposal.

(iv) Redeemable convertible preference shares

The fair value of redeemable convertible preference shares is estimated using discounted cash flow analysis, based on current incremental borrowingrates for similar types of borrowing arrangements.

42. INTEREST RATE RISK

The table below summarises the Group’s and the Company’s exposure to interest rate risk. The table indicates effective average interest rates at thebalance sheet date and the periods in which the financial instruments reprice or mature, whichever is earlier.

Group Average 2003 Non- interest

Up to 1 >1-3 >3-6 >6-12 >1-5 Over 5 interest rate month months months months years years sensitive Total % per

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 annum

Financial assets

Cash and short term funds 139,761 - - 100 - - 19,814 159,675 2.80 Trade receivables - - - - - - 4,378 4,378 - Other receivables - - - - - - 94,654 94,654 - Loans, advances and financing 59,740 6,232 37,917 5,141 423,703 962,910 1,741,918 3,237,561 8.69 Other assets - - - - - - 448,863 448,863 - Total assets 199,501 6,232 37,917 5,241 423,703 962,910 2,309,627 3,945,131

Financial liabilities

Bank borrowings 360,732 685,340 - - - - - 1,046,072 4.00 Deposits 560,688 167,183 229,777 144,191 66,228 - - 1,168,067 3.64 Other borrowings 4,626 5,364 8,382 425,472 565,649 - - 1,009,493 3.78 Trade payables - - - - - - 62,882 62,883 - Other payables - - - - - - 206,657 206,656 - Loans sold to Cagamas 566 1,137 1,718 43,808 17,675 - - 64,904 4.10 Redeemable convertible

preference shares - - - 6,346 23,036 - - 29,382 4.00 Other liabilities - - - - - - 55,900 55,900 - Total liabilities 926,612 859,024 239,877 619,817 672,588 - 325,439 3,643,357 Equity - - - - - - 301,774 301,774 - Total liabilities and equity 926,612 859,024 239,877 619,817 672,588 - 627,213 3,945,131

95


42. INTEREST RATE RISK (CONTD.)

Group Average 2003 (Contd.) Non- interest



On-balance sheet interestsensitivity gap (727,111) (852,792) (201,960) (614,576) (248,885) 962,910 1,682,414 -

Off-balance sheet interestsensitivity gap - - - - - - - -

Total interest sensitivity gap (727,111) (852,792) (201,960) (614,576) (248,885) 962,910 1,682,414 -

2002

Financial assets

Cash and short term funds 81,059 - - - - - 18,644 99,703 2.82 Trade receivables - - - - - - 7,604 7,604 - Other receivables - - - - - - 93,778 93,778 - Loans, advances and financing 189,647 399 866 13,848 212,872 959,020 1,964,114 3,340,766 8.77 Other assets - - - - - - 468,009 468,009 - Total assets 270,706 399 866 13,848 212,872 959,020 2,552,149 4,009,860


Bank borrowings 97,124 1,125,627 47,706 - - - - 1,270,457 4.32 Deposits 723,706 131,828 160,886 87,250 13,510 - - 1,117,180 3.52 Other borrowings 943 5,826 8,457 10,865 1,115,096 1,012 - 1,142,199 4.69 Trade payables - - - - - - 69,511 69,511 - Other payables - - - - - - 191,023 191,023 - Loans sold to Cagamas 964 1,940 43,754 2,892 45,965 - - 95,515 4.32 Other liabilities - - - - - - 56,067 56,067 - Total liabilities 822,737 1,265,221 260,803 101,007 1,174,571 1,012 316,601 3,941,952 Equity - - - - - - 67,908 67,908 - Total liabilities and equity 822,737 1,265,221 260,803 101,007 1,174,571 1,012 384,509 4,009,860

On-balance sheet interestsensitivity gap (552,031) (1,264,822) (259,937) (87,159) (961,699) 958,008 2,167,640 -


Total interest sensitivity gap (552,031) (1,264,822) (259,937) (87,159) (961,699) 958,008 2,167,640 -

96



Company

Average 2003 Non- interest



Financial assetsCash and short term funds 139,761 - - 100 - - 7,751 147,612 2.80 Other receivables (excluding

amount due from subsidiaries) - - - - - - 15,936 15,936 - Amount due from subsidiaries - - - - - 20,029 - 20,029 6.50 Loans, advances and financing 59,760 6,279 37,986 5,277 425,446 964,392 1,705,638 3,204,778 8.73 Loans to subsidiaries - - - - - 146,593 - 146,593 6.40 Other assets - - - - - - 158,517 158,517 - Total assets 199,521 6,279 37,986 5,377 425,446 1,131,014 1,887,842 3,693,465

Financial liabilitiesBank borrowings 360,732 685,340 - - - - - 1,046,072 4.00 Deposits 560,688 167,183 229,777 144,191 66,228 - - 1,168,067 3.64 Other borrowings 4,626 5,364 8,382 425,472 565,649 - - 1,009,493 3.78 Other payables - - - - - - 27,483 27,483 - Loans sold to Cagamas 566 1,137 1,718 43,808 17,675 - - 64,904 4.10 Redeemable convertible

preference shares - - - 6,346 23,036 - - 29,382 4.00 Other liabilities - - - - - - 27,063 27,063 - Total liabilities 926,612 859,024 239,877 619,817 672,588 - 54,546 3,372,464 Equity - - - - - - 321,001 321,001 - Total liabilities and equity 926,612 859,024 239,877 619,817 672,588 - 375,547 3,693,465

On-balance sheet interestsensitivity gap (727,091) (852,745) (201,891) (614,440) (247,142) 1,131,014 1,512,295 -


Total interest sensitivity gap (727,091) (852,745) (201,891) (614,440) (247,142) 1,131,014 1,512,295 -

2002

Financial assetsCash and short term funds 81,059 - - - - - 10,944 92,003 2.82 Other receivables

(excluding amount due from subsidiaries) - - - - - - 14,852 14,852 -

Amount due from subsidiaries - - - - - 14,936 - 14,936 5.53 Loans, advances and financing 189,668 442 928 13,971 214,124 960,426 1,943,100 3,322,659 8.87 Loans to subsidiaries - - - - - 139,686 4,639 144,325 6.40 Other assets - - - - - - 171,709 171,709 - Total assets 270,727 442 928 13,971 214,124 1,115,048 2,145,244 3,760,484


Company Average 2002 (Contd.) Non- interest



Financial liabilitiesBank borrowings 97,124 1,125,627 47,706 - - - - 1,270,457 4.32 Deposits 723,706 131,828 160,886 87,250 13,510 - - 1,117,180 3.52 Other borrowings 943 5,826 8,457 10,865 1,115,096 1,012 - 1,142,199 4.69 Other payables - - - - - - 27,223 27,223 - Loans sold to Cagamas 964 1,940 43,754 2,892 45,965 - - 95,515 4.32 Other liabilities - - - - - - 27,574 27,574 - Total liabilities 822,737 1,265,221 260,803 101,007 1,174,571 1,012 54,797 3,680,148 Equity - - - - - - 80,336 80,336 - Total liabilities and equity 822,737 1,265,221 260,803 101,007 1,174,571 1,012 135,133 3,760,484 On-balance sheet interest

sensitivity gap (552,010) (1,264,779) (259,875) (87,036) (960,447) 1,114,036 2,010,111 - Off-balance sheet interest

sensitivity gap - - - - - - - - Total interest sensitivity gap (552,010) (1,264,779) (259,875) (87,036) (960,447) 1,114,036 2,010,111 -

43. SEGMENT INFORMATION

(a) Business Segments:

The Group is organised into three major business segments:

(i) Financing - the granting of loans on the security of freehold and leasehold properties;

(ii) Property development - the development of residential and commercial properties; and

(iii) Letting of real property - the letting of office and hotel buildings.

Other business segments include project management and investment holding, none of which are of a sufficient size to be reported separately.

The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business and have been established onterms and conditions that are not materially different from those obtainable in transactions with unrelated parties.

97


98


43. SEGMENT INFORMATION (CONTD.)

Property Letting ofFinancing Development Real Property Others Eliminations Consolidated

2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

REVENUE AND EXPENSESRevenue External sales 164,937 139,986 (1,120) 9,960 6,489 6,464 452 362 11,667 59,543 182,425 216,315 Inter-segment sales 3,375 (1,653) - - 5,030 5,325 - - (8,405) (3,672) - -

Total revenue 182,425 216,315

ResultSegment results (59,953) (222,132) (62,056) 98,516 (16,473) (52,231) 692 (1,057) 71,113 52,390 (66,677) (124,514)

Taxation (75) 438

Loss after taxation (66,752) (124,076)Minority interest - -

Net loss for the year (66,752) (124,076)

ASSETS AND LIABILITIESSegment assets 3,693,465 3,760,484 191,711 212,468 157,096 161,959 3,840 3,442 (101,233) (128,745) 3,944,879 4,009,608 Unallocated corporate assets 252 252

Consolidated total assets 3,945,131 4,009,860

Segment liabilities 3,353,880 3,661,564 508,389 467,092 207,681 196,070 1,784 2,078 (474,596) (430,996) 3,597,138 3,895,808 Unallocated corporate liabilities 46,219 46,144

Consolidated total liabilities 3,643,357 3,941,952

OTHER INFORMATION

Capital expenditure 139 137 - 23 - - - - (52) - 87 160 Depreciation 844 1,405 257 270 5,687 6,612 - 45 228 228 7,016 8,560 Impairment loss on property, plant

and equipment - 259 - - - 34,192 - - - - - 34,451 Reversal of impairment loss on

property, plant and equipment - - - - (886) (574) - - - - (886) (574)Impairment loss of

investments in subsidiaries 4,370 25,977 - 128 - - - - (4,370) (26,105) - -(Reversal of) impairment loss

on land held for development 35 5,695 1,013 (145,337) - - - - 1,438 199,173 2,486 59,531 Non-cash expenses

other than depreciation, amortisation andimpairment losses 463,740 609,213 33,265 31,953 5,865 7,346 (367) 634 (68,744) (225,685) 433,759 423,461

(b) Geographical Segments

Segmental reporting is not analysed by geographical locations as the Group’s activities are pre-dominantly in Malaysia.

44. THE OPERATIONS OF ISLAMIC BANKING SCHEME ("IBS")

BALANCE SHEET AS AT 31 DECEMBER 2003

Group and CompanyNote 2003 2002

RM'000 RM'000

ASSETS

Cash and short term funds 9,689 - TOTAL ASSETS 9,689 -

LIABILITIES

Deposits (a) 5,650 - Other payables (b) 95 - TOTAL LIABILITIES 5,745 -

Islamic banking fund (c) 3,944 -

TOTAL LIABILITIES AND ISLAMIC BANKING FUND 9,689 -

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2003

Group and CompanyNote 2003 2002

RM'000 RM'000

Income from financing 37 - Dividend attributable to depositors (34) - Net income from financing operations 3 - Other operating expenses (d) (59) - Loss before taxation and zakat (56) - Taxation (f) - - Zakat - - Loss after taxation and zakat (56) - Accumulated losses brought forward - - Accumulated losses carried forward (56) -

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2003


RM'000 RM'000 CASH FLOWS FROM OPERATING ACTIVITIES

Loss before taxation and zakat (56) - Changes in working capital:

Increase in deposits 5,650 - Increase in other payables 95 -

Cash generated from operations/Net cash generated fromoperating activities 5,689 -

99


100


44. THE OPERATIONS OF ISLAMIC BANKING SCHEME ("IBS") (CONTD.)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2003 (Contd.)


RM'000 RM'000 CASH FLOWS FROM FINANCING ACTIVITY

Fund allocated from Head Office/Net cash generated fromfinancing activity 4,000 -

Net increase in cash and short term funds 9,689 - Cash and short term funds at beginning of financial year - - Cash and short term funds at end of financial year 9,689 -

(a) DEPOSITS


RM'000 RM'000

General investment deposits 5,650 -

(i) The maturity structure of general investment deposits are as follows:


RM'000 RM'000

Due within six months 150 - Six months to one year 5,500 -

5,650 -

(ii) The deposits are sourced from the following customers:


RM'000 RM'000

Business enterprises 5,500 - Individuals 150 -

5,650 -

(b) OTHER PAYABLES


RM'000 RM'000

Profit payables 34 - Due to Head Office 61 -

95 -


(c) ISLAMIC BANKING FUND


RM'000 RM'000

Fund allocated from Head Office 4,000 -Accumulated losses (56) -

3,944 -

(d)OTHER OPERATING EXPENSES


RM'000 RM'000

Personnel costs (Note 44(e)) 59 -

(e) PERSONNEL COSTS


RM'000 RM'000

Wages and salaries 51 - Social security costs 1 - Pension costs - defined contribution plans 7 -

59 -

The number of employees of the IBS operations in the Group and in the Company at the end of the financial year were 5 (2002: Nil).

(f) TAXATION

There is no tax expense for the year as the Scheme is in a tax loss position.

Income tax is calculated at the Malaysian statutory tax rate of 28% (2002: 28%) of the estimated assessable profit for the year.

A reconciliation of the income tax expense applicable to loss before taxation and zakat at the statutory income tax rate to income tax expense at theeffective income tax rate of the Group and of the Company is as follows:


RM'000 RM'000

Loss before taxation and zakat (56) - Taxation at Malaysian statutory tax rate of 28%

(2002: 28%) (16) - Expenses not deductible for tax purposes 16 - Tax expense for the year - -

101



(g) YIELD/PROFIT RATE ON IBS PORTFOLIO

The table below summarises the Group’s and the Company’s exposure to yield/profit rate risk for the IBS operations. The table indicates effective averageyield/profit rates at the balance sheet date and the periods in which the financial instruments either reprice or mature, whichever is earlier.

Group and Company2003

Average Non-yield/ yield/profit

Up to 1 >1-3 >3-6 >6-12 >1-5 Over 5 profit rate rate month months months months years years sensitive Total % per


Financial assets

Cash and short term funds 9,025 - - 100 - - 564 9,689 2.82 Total assets 9,025 - - 100 - - 564 9,689


Deposits - 150 - 5,500 - - - 5,650 2.54 Other payables - - - - - - 95 95 - Total liabilities - 150 - 5,500 - - 95 5,745 Equity - - - - - - 3,944 3,944 - Total liabilities and equity - 150 - 5,500 - - 4,039 9,689

On-balance sheet yield/profitsensitivity gap 9,025 (150) - (5,400) - - (3,475) -

Off-balance sheet yield/profitsensitivity gap - - - - - - - -

Total yield/profitsensitivity gap 9,025 (150) - (5,400) - - (3,475) -

Comparatives have not been presented as there was no IBS operations in the previous financial year.

45. CURRENCY

All amounts are stated in Ringgit Malaysia.


102

PE N YATA KE WA N G A N

LAPORAN PENGARAH

PENYATA OLEH PENGARAH

AKUAN BERKANUN

LAPORAN JURUAUDIT

KUNCI KIRA-KIRA

PENYATA PENDAPATAN

PENYATA PERUBAHAN DALAM EKUITI DISATUKAN

PENYATA PERUBAHAN DALAM EKUITI

PENYATA ALIRAN TUNAI

NOTA KEPADA PENYATA KEWANGAN

104

108

108

109

110

111

112

113

114

115

Para Pengarah dengan ini menyampaikan laporan mereka bersama dengan penyata kewangan teraudit Kumpulan dan Syarikat bagi tahun kewanganberakhir 31 Disember 2003.

KEGIATAN UTAMA

Kegiatan utama Syarikat adalah pemberian pinjaman atas cagaran harta pegangan kekal dan pegangan pajak. Kegiatan utama anak-anak syarikatadalah pembangunan harta, pengurusan projek, penyewaan harta tanah dan pemegangan pelaburan.

Tidak ada perubahan ketara dalam sifat kegiatan ini dalam tahun kewangan.

KEPUTUSAN

Kumpulan Syarikat RM’000 RM’000

Kerugian bersih bagi tahun 66,752 59,953

Tidak ada pemindahan material kepada atau daripada rizab atau peruntukan dalam tahun kewangan selain sebagaimana yang dinyatakan dalampenyata kewangan.

Pada pendapat para pengarah, keputusan operasi Kumpulan dan Syarikat dalam tahun kewangan tidak terjejas secara ketara oleh mana-manaperkara, urusniaga atau peristiwa bersifat material dan luar biasa.

DIVIDEN

Tidak ada dividen telah dibayar atau diisytiharkan oleh Syarikat sejak akhir tahun kewangan yang lepas.

PARA PENGARAH

Nama-nama para pengarah Syarikat yang memegang jawatan sejak tarikh laporan terakhir dan pada tarikh laporan ini adalah:

YBhg Tan Sri Abdul Halim bin AliYBhg Datuk Azlan bin Mohd ZainolEncik Lau Tiang HuaYBhg Datuk Haji A. Rahim bin AbdullahTuan Syed Zaid bin Syed Jaffar AlbarPuan Tan Ler ChinYBhg Datuk Abdullah bin Haji Kuntom (dilantik pada 29 September 2003)YBhg Dato’ Abdul Hamidy bin Abdul Hafiz (meletak jawatan pada 1 Julai 2003)

FAEDAH PARA PENGARAH

Sama ada pada akhir tahun kewangan, mahupun pada bila-bila masa dalam tahun tersebut, tidak wujud apa-apa pengaturan kepada mana Syarikatatau anak-anak syarikatnya adalah pihak, di mana para pengarah mungkin memperolehi faedah melalui cara pembelian saham dalam atau debenturSyarikat atau mana-mana badan korporat lain selain yang mungkin timbul daripada opsyen saham yang akan diberikan selaras dengan Skim OpsyenSaham Kakitangan Malaysia Building Society Berhad.

Sejak akhir tahun kewangan yang lepas, tidak ada pengarah telah menerima atau menjadi berhak untuk menerima faedah (selain daripada faedahyang dimasukkan dalam jumlah agregat emolumen diterima atau kena dibayar dan boleh diterima oleh para pengarah atau gaji tetap kakitangansepenuh masa Syarikat sebagaimana ditunjukkan dalam Nota 31 penyata kewangan) atas alasan kontrak yang dibuat oleh Syarikat atau perbadananberkaitan dengan mana-mana pengarah atau dengan firma yang mana pengarah adalah ahli, atau dengan syarikat dalam mana beliau mempunyaikepentingan kewangan yang besar.

104

LA P OR A N PE N G A R A H


105


KEPENTINGAN PARA PENGARAH

Tidak ada pengarah yang memegang jawatan pada akhir tahun kewangan mempunyai apa-apa kepentingan dalam saham-saham Syarikat atauperbadanan-perbadanan berkaitannya dalam tahun kewangan.

TERBITAN SAHAM

Dalam tahun kewangan, Syarikat menambah:

(a) modal sahamnya yang dibenarkan daripada RM520,000,000 kepada RM1,800,000,000 melalui pembentukan 500,000,000 saham biasabernilai RM1 sesaham, 500,000,000 Saham Keutamaan Boleh Tukar Boleh Tebus bernilai RM1 sesaham dan 280,000,000 Saham KeutamaanTerkumpul Boleh Tebus bernilai RM1 sesaham; dan

(b) modal sahamnya yang diterbitkan dan berbayar melalui terbitan 165,000,000 Saham Keutamaan Boleh Tukar Boleh Tebus (“RCPS”)bernilai RM1 sesaham melalui terbitan terhad pada harga terbitan RM2 setiap saham, bagi modal kerja tambahan untuk tujuan modal kerja.

Balasan bagi RCPS telah diselesaikan oleh Lembaga Kumpulan Simpanan Wang Pekerja dan Permodalan Nasional Berhad masing-masingmelalui penukaran pinjaman pusingan KWSP sebanyak RM280 juta dan deposit sebanyak RM50 juta.

SKIM OPSYEN SAHAM KAKITANGAN

Skim Opsyen Saham Kakitangan Malaysia Building Society Berhad (“ESOS”) ditadbir oleh undang-undang kecil yang diluluskan oleh pemegang-pemegang saham di Mesyuarat Agung Luarbiasa yang diadakan pada 23 Jun 2003.

Ciri-ciri utama ESOS adalah seperti berikut:

(a) ESOS akan berkuatkuasa bagi tempoh lima tahun bermula dari 26 September 2003.

(b) Orang-orang yang layak adalah kakitangan Kumpulan (termasuk pengarah eksekutif) yang dibayar gaji oleh Kumpulan selain daripada anaksyarikat yang lengai.

(c) Jumlah bilangan saham yang akan diterbitkan di bawah ESOS tidak boleh melebihi dalam agregat 10% daripada modal saham Syarikat yangditerbitkan pada bila-bila masa semasa tempoh ESOS.

(d) Harga opsyen bagi setiap saham hendaklah purata bermakna sebut harga pasaran min saham-saham Syarikat dalam senarai rasmi harian yangdikeluarkan oleh Malaysia Securities Exchange Berhad bagi lima hari perdagangan sebelum tarikh tawaran, atau nilai tara saham Syarikat RM1,yang mana lebih tinggi.

e) Bilangan sebenar saham-saham baru yang boleh ditawarkan kepada kakitangan yang layak adalah pada budi bicara Jawatankuasa Ospyen dan,tertakluk kepada sebarang pelarasan yang mungkin dibuat di bawah Fasal 15 undang-undang kecil, tidak boleh kurang daripada 200 saham tetapitidak boleh melebihi jumlah maksimum peruntukan yang dibenarkan dan hendaklah sentiasa dalam gandaan 200 saham.

f) Opsyen diberikan di bawah ESOS hendaklah berkebolehan untuk dilaksanakan penerima opsyen melalui notis bertulis kepada Syarikatbermula dari tarikh tawaran tetapi sebelum penamatan lima tahun dari 26 September 2003 berhubung dengan semua atau mana-manabahagian saham syarikat yang terkandung dalam opsyen, bahagian sedemikian dalam gandaan 200 saham. Sebarang pelaksanaan sebahagiandaripada opsyen tidak akan menghalang penerima opsyen daripada melaksanakan opsyen berhubung dengan baki saham Syarikat yang terdiridalam opsyen.

(g) Semua saham biasa baru atas pelaksanaan opsyen diberikan di bawah ESOS akan bertaraf pari passu dalam semua hubungan dengan sahambiasa sedia ada Syarikat selain daripada yang mungkin dinyatakan dalam resolusi yang meluluskan pengagihan dividen sebelum tarikh-tarikhpelaksanaan.

(h) Orang-orang kepada siapa opsyen telah diberikan tidak mempunyai hak untuk mengambil bahagian selaras dengan opsyen dalam mana-manaterbitan saham mana-mana syarikat lain.

106


SKIM OPSYEN SAHAM KAKITANGAN (SAMB.)

Syarikat telah diberikan pengecualian oleh Suruhanjaya Syarikat Malaysia daripada perlu mendedahkan nama pemegang-pemegang opsyen untukmelanggan kurang daripada 180,000 saham biasa dalam tahun kewangan.

Nama-nama pemegang opsyen dan bilangan opsyen yang diberikan berhubung dengan ESOS yang adalah 180,000 dan ke atas dalam tahunkewangan dinyatakan di bawah:

Bilangan Opsyen ke atas Saham Biasa yang berharga RM1 Setiap satu

Harga 1 Januari 31 DisemberOpsyen 2003 Diberikan Dilaksanakan 2003

RM

Ahmad Farid Omar 1.00 - 323,000 - 323,000Abdul Rahman Abdullah 1.00 - 278,400 - 278,400Mat Zin Ismail 1.00 - 269,400 - 269,400 Azmi Hamid 1.00 - 248,400 - 248,400 Abd Rahim Ambak 1.00 - 248,400 - 248,400 Shamsudin Md Yusoff 1.00 - 248,400 - 248,400 Yew Teik Jin 1.00 - 248,400 - 248,400Azizah Abu Bakar 1.00 - 182,000 - 182,000 Low Chee Keong 1.00 - 180,000 - 180,000 Habsah Hashim 1.00 - 180,000 - 180,000

Maklumat berhubung dengan bilangan opsyen yang diberikan di bawah ESOS adalah seperti berikut:

Bilangan Opsyen Saham 2003 2002

Pada 1 Januari - - Diberikan 32,457,600 - Luput * (265,000) -

Pada 31 Disember 32,192,600 -

* Disebabkan oleh peletakan jawatan kakitangan

Butir-butir opsyen saham yang diberikan dalam tahun kewangan dan belum dilaksanakan dijelaskan pada akhir tahun kewangan adalah sepertiberikut:

Tempoh Pelaksanaan Harga Pelaksanaan Bilangan Opsyen Saham RM 2003 2002

26.9.2003 - 25.9.2008 1.00 32,192,600 -

LAIN-LAIN MAKLUMAT BERKANUN

(a) Sebelum kunci kira-kira dan penyata pendapatan Kumpulan dan Syarikat disediakan, para pengarah mengambil langkah-langkah munasabah:

(i) untuk memastikan bahawa tindakan sewajarnya telah diambil berhubung dengan penghapusan kira hutang lapuk dan membuatperuntukan bagi hutang ragu dan berpuas hati bahawa semua hutang lapuk telah dihapus kira dan bahawa peruntukan yang mencukupitelah dibuat bagi hutang ragu; dan

(ii) untuk memastikan bahawa mana-mana aset semasa yang tidak berkemungkinan untuk direalis nilainya sebagaimana ditunjukkan dalamrekod perakaunan dalam perjalanan biasa perniagaan telah dikurangkan nilai kepada jumlah yang ianya mungkin dijangka dapat direalis.

LAIN-LAIN MAKLUMAT BERKANUN (SAMB.)

(b) Pada tarikh laporan ini, para pengarah tidak menyedari akan apa-apa keadaan yang akan menjadikan:

(i) jumlah dihapus kira bagi hutang lapuk atau jumlah peruntukan bagi hutang ragu tidak mencukupi hingga mana-mana tahap ketara; dan(ii) nilai diberi kepada aset semasa dalam penyata kewangan Kumpulan dan Syarikat mengelirukan.

(c) Pada tarikh laporan ini, para pengarah tidak menyedari akan apa-apa keadaan yang telah timbul yang akan menjadikan pematuhan kepadakaedah sedia ada penilaian aset atau liabiliti Kumpulan dan Syarikat mengelirukan atau tidak sesuai.

(d) Pada tarikh laporan ini, para pengarah tidak menyedari akan apa-apa keadaan yang tidak sebaliknya diuruskan dalam laporan ini atau penyatakewangan Kumpulan dan Syarikat yang akan menjadikan apa-apa jumlah yang dinyatakan dalam penyata kewangan mengelirukan.

(e) Pada tarikh laporan ini, tidak wujud:

(i) sebarang gadaian ke atas aset Kumpulan atau Syarikat yang telah timbul sejak akhir tahun kewangan yang menjamin liabiliti mana-manaorang lain; atau

(ii) sebarang liabiliti kontigen Kumpulan atau Syarikat yang telah timbul sejak akhir tahun kewangan selain daripada yang timbul dalamperjalanan biasa perniagaan Kumpulan dan Syarikat.

(f) Pada pendapat para pengarah:

(i) tidak ada liabiliti kontigen atau lain-lain liabiliti telah menjadi boleh dikuatkuasa atau berkemungkinan menjadi boleh dikuatkuasa dalamtempoh dua belas bulan selepas akhir tahun kewangan yang akan atau mungkin menjejaskan keupayaan Kumpulan atau Syarikat untukmemenuhi obligasi mereka apabila menjadi perlu dibayar; dan

(ii) tidak ada perkara, urusniaga atau peristiwa material dan bersifat luarbiasa telah timbul dalam selang di antara akhir tahun kewangan dantarikh laporan ini yang berkemungkinan menjejaskan secara ketara keputusan operasi Kumpulan atau Syarikat bagi tahun kewangan dalammana laporan ini dibuat.

PERISTIWA PENTING

Peristiwa penting adalah sebagaimana dinyatakan dalam Nota 39 kepada penyata kewangan.

JURUAUDIT

Juruaudit, Tetuan Ernst & Young telah menyatakan kesediaan mereka untuk terus memegang jawatan.

Ditandatangani bagi pihak Lembaga selaras dengan resolusi para Pengarah

TAN SRI ABDUL HALIM BIN ALI LAU TIANG HUAPENGERUSI PENGARAH

Kuala Lumpur, Malaysia26 Mac 2004

107


108

PE N YATA OL E H PE N G A R A H

SELARAS DENGAN SEKSYEN 169(15) AKTA SYARIKAT 1965


Kami, TAN SRI ABDUL HALIM BIN ALI dan LAU TIANG HUA, merupakan dua Pengarah MALAYSIA BUILDING SOCIETY BERHAD,dengan ini menyatakan bahawa, pada pendapat para Pengarah, penyata kewangan mengiringi yang dibentangkan pada muka surat 110 hingga 155disediakan selaras dengan Piawaian-piawaian Perakaunan Diluluskan di Malaysia yang berkenaan dan peruntukan-peruntukan Akta Syarikat 1965untuk memberi gambaran sebenar dan saksama mengenai kedudukan kewangan Kumpulan dan Syarikat pada 31 Disember 2003 dan keputusan danaliran tunai Kumpulan dan Syarikat bagi tahun berakhir ketika itu.

Ditandatangani bagi pihak Lembaga selaras dengan resolusi para pengarah

TAN SRI ABDUL HALIM BIN ALI LAU TIANG HUAPENGERUSI PENGARAH


AK UA N BE R K A N U N

SELARAS DENGAN SEKSYEN 169(16) AKTA SYARIKAT 1965

Saya, YEW TEIK JIN, merupakan pegawai yang terutamanya bertanggungjawab bagi pengurusan kewangan MALAYSIA BUILDING SOCIETYBERHAD, dengan sesungguhnya dan seikhlasnya memperakui bahawa penyata kewangan mengiringi yang dibentangkan pada muka surat 110hingga 155 adalah pada pendapat saya betul dan saya membuat perakuan ini dengan penuh kepercayaan yang sama adalah benar dan selarasdengan peruntukan-peruntukan Akta Akuan Berkanun,1960.

Ditandatangani dan diperakui dengan sesungguhnya olehYew Teik Jin tersebut di atasdi Kuala Lumpur di Wilayah Persekutuanpada 26 Mac 2004

Di hadapan saya, YEW TEIK JIN

T.THANAPALASINGAMPesuruhjaya SumpahKuala Lumpur

109

LA P OR A N JU R UA U D I T

MALAYSIA BUILDING SOCIETY BERHAD(Diperbadankan di Malaysia)

Kepada Ahli-ahliMALAYSIA BUILDING SOCIETY BERHAD

Kami telah mengaudit penyata kewangan mengiringi yang dibentangkan pada muka surat 110 hingga 155. Penyata kewangan ini adalahtanggungjawab para Pengarah Syarikat. Tanggungjawab kami adalah untuk menyatakan pendapat mengenai penyata kewangan ini berdasarkan auditkami.

Kami menjalankan audit kami selaras dengan Piawaian-piawaian Pengauditan Diluluskan di Malaysia yang berkenaan. Piawaian-piawaian itumemerlukan agar kami merancang dan melaksanakan audit untuk memperolehi jaminan munasabah mengenai sama ada penyata kewangan adalahbebas daripada salahnyataan material. Audit termasuk memeriksa, atas dasar ujian, bukti yang menyokong jumlah dan pendedahan dalam penyatakewangan. Audit juga termasuk menilai prinsip-prinsip perakaunan digunakan dan anggaran-anggaran penting yang dibuat oleh para Pengarah, disamping menilai keseluruhan pembentangan penyata kewangan. Kami percaya bahawa audit kami menyediakan asas munasabah bagi pendapat kami.

Pada pendapat kami:

(a) penyata kewangan telah disediakan sewajarnya selaras dengan peruntukan-peruntukan Akta Syarikat 1965 dan Piawaian-piawaian PerakaunanDiluluskan di Malaysia yang berkenaan untuk memberikan gambaran sebenar dan saksama mengenai:

(i) kedudukan kewangan Kumpulan dan Syarikat pada 31 Disember 2003 dan keputusan dan aliran tunai Kumpulan dan Syarikat bagi tahunberakhir ketika itu; dan

(ii) perkara-perkara diperlukan oleh Seksyen 169 Akta Syarikat 1965 untuk diuruskan dalam penyata kewangan; dan

(b) rekod perakaunan dan lain-lain rekod dan daftar yang diperlukan oleh Akta untuk disimpan oleh Syarikat dan anak-anak syarikatnya yang manakami telah bertindak sebagai juruaudit telah disimpan sewajarnya selaras dengan peruntukan-peruntukan Akta.

Kami telah menimbangkan penyata kewangan dan laporan juruaudit ke atasnya bagi anak syarikat yang mana kami tidak bertindak sebagaijuruaudit, sebagaimana ditunjukkan dalam Nota 11 penyata kewangan, merupakan penyata kewangan yang telah dimasukkan dalam penyatakewangan disatukan.

Kami berpuas hati bahawa penyata kewangan anak-anak syarikat yang telah disatukan dengan penyata kewangan Syarikat adalah dalam bentuk dankandungan yang sesuai dan teratur bagi tujuan penyediaan penyata kewangan disatukan dan kami telah menerima maklumat dan penjelasanmemuaskan diperlukan oleh kami untuk tujuan itu.

Laporan juruaudit ke atas penyata kewangan anak-anak syarikat tidak tertakluk kepada sebarang syarat dan tidak mengandungi apa-apa ulasan yangdiperlukan untuk dibuat di bawah Seksyen 174 (3) Akta.

ERNST & YOUNG WONG KANG HWEEAF: 0039 No.1116/01/06(J)Akauntan Bertauliah Rakan Firma



Kumpulan Syarikat

2003 2002 2003 2002 Nota RM'000 RM'000 RM'000 RM'000

ASETTunai dan dana jangka pendek 3 159,675 99,703 147,612 92,003Jumlah dagangan belum terima 4 4,378 7,604 - -Lain-lain jumlah belum terima 5 94,654 93,778 35,965 29,788Inventori harta siap 6 31,975 32,587 - -Harta pembangunan 7 3,103 7,134 - -Pinjaman, pendahuluan dan pembiayaan 8 3,237,561 3,340,766 3,204,778 3,322,659Lain-lain pelaburan 9 1,400 500 1,400 -Pinjaman kepada anak-anak syarikat 10 - - 146,593 144,325Pelaburan dalam anak-anak syarikat 11 - - 67,964 72,334Tanah dipegang untuk pembangunan 12 268,694 268,415 88,293 88,194Harta, loji dan peralatan 13 143,691 159,373 860 11,181

JUMLAH ASET 3,945,131 4,009,860 3,693,465 3,760,484

LIABILITI DAN EKUITI PEMEGANG-PEMEGANG SAHAMPinjaman bank 14 1,046,072 1,270,457 1,046,072 1,270,457Deposit 15 1,168,067 1,117,180 1,168,067 1,117,180Lain-lain pinjaman 16 1,009,493 1,142,199 1,009,493 1,142,199Jumlah dagangan perlu dibayar 17 62,882 69,511 - -Lain-lain jumlah perlu dibayar 18 206,657 191,023 27,483 27,223Cukai perlu dibayar 18,633 18,633 18,584 18,584Pinjaman dijual kepada Cagamas 19 64,904 95,515 64,904 95,515Cukai tertunda 20 27,586 27,511 - -Saham keutamaan boleh tukar boleh tebus 21 29,382 - 29,382 -Peruntukan bagi liabiliti 22 1,023 - - -Peruntukan bagi faedah kakitangan 23 8,658 9,923 8,479 8,990

JUMLAH LIABILITI 3,643,357 3,941,952 3,372,464 3,680,148

Modal saham 24 502,856 337,856 502,856 337,856Rizab (201,082) (269,948) (181,855) (257,520)Ekuiti pemegang-pemegang saham 301,774 67,908 321,001 80,336

JUMLAH LIABILITI DAN EKUITI PEMEGANG-PEMEGANG SAHAM 3,945,131 4,009,860 3,693,465 3,760,484

Nota-nota mengiringi membentuk bahagian penting penyata kewangan.

110

KU N C I KI R A-KI R A

PADA 31 DISEMBER 2003


111


PE N YATA PE N D A PATA N

BAGI TAHUN BERAKHIR 31 DISEMBER 2003

Kumpulan Syarikat

2003 2002 2003 2002 Nota RM'000 RM'000 RM'000 RM'000

Hasil kendalian 25 182,425 216,315 168,312 138,333

Pendapatan faedah 26 175,426 197,620 167,133 136,424Perbelanjaan faedah 27 (166,883) (156,502) (144,199) (150,919)Pendapatan/(perbelanjaan) faedah bersih 8,543 41,118 22,934 (14,495)Pendapatan bersih daripada Operasi

Skim Perbankan Islam 44 3 - 3 -8,546 41,118 22,937 (14,495)

Lain-lain pendapatan bukan faedah 28 9,579 19,625 2,200 2,60818,125 60,743 25,137 (11,887)

Perubahan dalam harta pembangunan dan inventori harta siap 618 (1,205) - -

Kos kontrak (2,542) (14,128) - -Lain-lain perbelanjaan kendalian 29 (46,747) (124,490) (44,214) (122,533)Kerugian kendalian sebelum peruntukan (30,546) (79,080) (19,077) (134,420)Kerugian pinjaman dan pembiayaan dan peruntukan 32 (36,905) (44,102) (40,876) (87,712)Keterbalikan (peruntukan bagi)

kerugian dijangka ke atas projek 774 (1,332) - -Kerugian sebelum cukai (66,677) (124,514) (59,953) (222,132)Cukai 33 (75) 438 - -Kerugian bersih sebelum kepentingan minoriti (66,752) (124,076) (59,953) (222,132)Kepentingan minoriti - - - -Kerugian bersih bagi tahun (66,752) (124,076) (59,953) (222,132)

Kerugian setiap saham (sen)Asas 34 20 37


Kumpulan Modal Saham Tidak Boleh Diagih

Rizab PenebusanSaham Modal - Saham

Keutamaan KeutamaanModal Boleh Tebus Premium Rizab Boleh Tebus KerugianSaham Boleh Tukar Saham Modal Boleh Tukar Terkumpul Jumlah

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM’000Pada 1 Januari 2002Sebagaimana dinyatakan

sebelum ini 337,856 - 517,077 17,838 12,486 (691,358) 193,899Pelarasan tahun terdahulu

(Nota 35) - - - - - (1,915) (1,915)

Pada 1 Januari 2002 (dinyatakan semula) 337,856 - 517,077 17,838 12,486 (693,273) 191,984Kerugian bersih bagi tahun - - - - - (124,076) (124,076)

Pada 31 Disember 2002 337,856 - 517,077 17,838 12,486 (817,349) 67,908

112

PE N YATA PE R U B A H A N DA L A M EK U I T I DI S AT U K A N



Kumpulan Modal Saham Tidak Boleh Diagih



RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM’000Pada 1 Januari 2003Sebagaimana dinyatakan

sebelum ini 337,856 - 517,077 17,838 12,486 (815,508) 69,749Pelarasan tahun terdahulu

(Nota 35) - - - - - (1,841) (1,841)

Pada 1 Januari 2003 (dinyatakan semula) 337,856 - 517,077 17,838 12,486 (817,349) 67,908Komponen ekuiti RCPS

(Nota 21) - 165,000 135,618 - - - 300,618Kerugian bersih bagi tahun - - - - - (66,752) (66,752)

Pada 31 Disember 2003 337,856 165,000 652,695 17,838 12,486 (884,101) 301,774

Rizab modal timbul daripada pemindahan rizab Malaya Borneo Building Society Limited pada 29 Februari 1972 kepada Malaysia Building SocietyBerhad pada 1 Mac 1972 melalui Skim Pengaturan dan tidak boleh diagih sebagai dividen tunai.

Rizab penebusan modal timbul daripada penebusan saham keutamaan boleh tebus terkumpul dan tidak boleh diagih sebagai dividen tunai.


113


Syarikat Modal Saham Tidak Boleh Diagih



RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM’000

Pada 1 Januari 2002 337,856 - 517,077 17,838 12,486 (582,789) 302,468 Kerugian bersih bagi tahun - - - - - (222,132) (222,132)

Pada 31 Disember 2002 337,856 - 517,077 17,838 12,486 (804,921) 80,336

Syarikat Modal Saham Tidak Boleh Diagih



RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM’000

Pada 1 Januari 2003 337,856 - 517,077 17,838 12,486 (804,921) 80,336Komponen ekuiti RCPS (Nota 21) - 165,000 135,618 - - - 300,618Kerugian bersih bagi tahun - - - - - (59,953) (59,953)

Pada 31 Disember 2003 337,856 165,000 652,695 17,838 12,486 (864,874) 321,001

Rizab modal timbul daripada pemindahan rizab Malaya Borneo Building Society Limited pada 29 Februari 1972 kepada Malaysia Building SocietyBerhad pada 1 Mac 1972 melalui Skim Pengaturan dan tidak boleh diagih sebagai dividen tunai.

Rizab penebusan modal timbul daripada penebusan saham keutamaan boleh tebus terkumpul dan tidak boleh diagih sebagai dividen tunai.


PE N YATA PE R U B A H A N DA L A M EK U I T I


114

PE N YATA AL I R A N TU N A I



Kumpulan Syarikat

2003 2002 2003 2002 RM'000 RM'000 RM'000 RM'000

ALIRAN TUNAI DARIPADA KEGIATAN KENDALIANKerugian sebelum cukai (66,677) (124,514) (59,953) (222,132)Pelarasan bagi:

Susut nilai 7,016 8,560 844 1,405Laba atas pelupusan harta, loji dan peralatan (433) (46) (348) (46)(Keterbalikan) peruntukan bagi kerugian dijangka ke atas projek (774) 1,332 - -(Keterbalikan)/inventori harta siap dikurangkan nilai (439) 1,290 - -(Keterbalikan) peruntukan bagi faedah kakitangan (845) 1,095 (91) 977Kerugian kerosotan ke atas tanah dipegang untuk pembangunan 2,486 59,531 35 5,695Kerugian kerosotan ke atas pelaburan dalam anak-anak syarikat - - 4,370 25,977(Keterbalikan) kerugian kerosotan ke atas harta, loji dan peralatan (886) 33,877 - 259Peruntukan bagi hutang ragu jumlah terhutang daripada/pinjaman

kepada anak-anak syarikat - - 13,986 52,465Peruntukan bagi hutang ragu jumlah dagangan belum terima 6,089 7,317 - -(kemasukan kira semula) peruntukan bagi hutang ragu lain-lain jumlah

belum terima 12,769 (13,578) 2,230 10,403Pinjaman dan kerugian pembiayaan dan peruntukan 36,905 44,102 40,876 87,712Faedah dalam penggantungan, bersih daripada jumlah boleh diperolehi

dan penghapusan kira 379,031 381,903 406,739 457,656Peruntukan bagi liabiliti 1,023 - - -

Keuntungan kendalian sebelum perubahan modal kerja 375,265 400,869 408,688 420,371Peningkatan dalam pinjaman, pendahuluan dan pembiayaan (314,131) (244,487) (331,134) (241,213)Pengurangan dalam inventori harta siap 1,051 5,858 - -Peningkatan dalam jumlah belum terima (16,508) (41,199) (3,309) (4,754)Peningkatan dalam jumlah terhutang daripada/kepada anak-anak syarikat - - (9,958) (2,781)(Pengurangan)/Peningkatan dalam pinjaman bank (224,385) 156,681 (224,385) 156,681Peningkatan/(Pengurangan) dalam deposit 100,887 (133,135) 100,887 (133,135)Peningkatan dalam jumlah perlu dibayar 9,005 36,768 261 8,520Pengurangan/(Peningkatan) dalam harta pembangunan 4,805 (21,076) - -

Tunai (diguna dalam)/dihasilkan daripada operasi (64,011) 160,279 (58,950) 203,689Cukai dibayar - (358) - (154)

Tunai bersih (diguna dalam)/dihasilkan daripada kegiatan kendalian (64,011) 159,921 (58,950) 203,535

ALIRAN TUNAI DARIPADA KEGIATAN PELABURANTanah dipegang untuk pembangunan (2,765) (40,146) (134) (2,796)Pembelian harta, loji dan peralatan (87) (160) (139) (137)Perolehan daripada pelupusan harta, loji dan peralatan 10,072 46 9,964 46Perolehan daripada pelupusan lain-lain pelaburan 500 - - -Tunai bersih dihasilkan daripada/(diguna dalam) kegiatan pelaburan 7,720 (40,260) 9,691 (2,887)

ALIRAN TUNAI DARIPADA KEGIATAN PEMBIAYAANPengeluaran daripada lain-lain pinjaman 170,000 - 170,000 -Bayaran balik lain-lain pinjaman (22,706) (27,123) (22,706) (27,123)Pinjaman dijual kepada Cagamas (30,611) (12,568) (30,611) (12,568)Bayaran faedah kakitangan (420) (81) (420) (81)Pinjaman kepada anak-anak syarikat - - (11,395) (84,823)

Tunai bersih dihasilkan daripada/(diguna dalam) kegiatan pembiayaan 116,263 (39,772) 104,868 (124,595)

Peningkatan bersih dalam tunai dan setara tunai 59,972 79,889 55,609 76,053Tunai dan setara tunai pada permulaan tahun kewangan 99,703 19,814 92,003 15,950Tunai dan setara tunai pada akhir tahun kewangan 159,675 99,703 147,612 92,003Tunai dan setara tunai terdiri daripada:

Tunai dan dana jangka pendek 159,675 99,703 147,612 92,003


NOTA K E PA D A PE N YATA KE WA N G A N

31 DISEMBER 2003

115


1. MAKLUMAT KORPORAT

Kegiatan utama Syarikat adalah pemberian pinjaman atas cagaran harta pegangan kekal dan pegangan pajak. Kegiatan utama anak-anak syarikat adalahpembangunan harta, pengurusan projek, penyewaan harta dan pemegangan pelaburan. Tidak ada perubahan ketara dalam sifat kegiatan-kegiatan utamaini dalam tahun kewangan.

Syarikat adalah sebuah syarikat liabiliti awam berhad, diperbadankan dan berdomisil di Malaysia, dan disenaraikan pada Papan Utama MalaysiaSecurities Exchange Berhad. Pejabat berdaftar Syarikat terletak di Tingkat 11, Wisma MBSB, 48 Jalan Dungun, Damansara Heights, 50490 KualaLumpur.

Badan pemegangan induk adalah Lembaga Kumpulan Wang Simpanan Pekerja, sebuah badan berkanun yang ditubuhkan di Malaysia.

Bilangan kakitangan dalam Kumpulan dan Syarikat pada akhir tahun kewangan masing-masing adalah 471 (2002 : 434) dan 452 (2002 : 397).

Penyata kewangan telah dibenarkan untuk dikeluarkan oleh Lembaga Pengarah selaras dengan resolusi para pengarah pada 26 March 2004.

2. POLISI-POLISI PERAKAUNAN PENTING

(a) Asas Penyediaan

Penyata kewangan Kumpulan dan Syarikat telah disediakan di bawah konvensyen kos sejarah dan mematuhi peruntukan- peruntukan Akta Syarikat1965 dan Piawaian-piawaian Perakaunan Diluluskan terpakai di Malaysia. Penyata kewangan menggabungkan kegiatan-kegiatan ini yang berkaitandengan Skim Perbankan Islam (“IBS”) yang telah dilaksanakan oleh Kumpulan dan Syarikat.

IBS merujuk secara keseluruhannya kepada penerimaan deposit dan pemberian pembiayaan di bawah prinsip-prinsip Syariah.

Dalam tahun kewangan berakhir 31 Disember 2003, Kumpulan dan Syarikat telah menerima pakai Piawaian-piawaian Lembaga PiawaianPerakaunan Malaysia (“MASB”) berikut buat pertama kalinya:

MASB 25 Cukai PendapatanMASB 27 Kos Pinjaman MASB 28 Operasi Tidak DiteruskanMASB 29 Faedah Kakitangan

Kesan penerimaan pakai MASB 25 diringkaskan dalam Penyata Perubahan dalam Ekuiti dan maklumat selanjutnya dikemukakan dalam Nota 35kepada penyata kewangan. Penerimaan pakai MASB 27, 28 dan 29 tidak membawa kepada sebarang pelarasan kepada baki pembukaan kerugianterkumpul tahun terdahulu dan semasa atau kepada perubahan dalam angka-angka bandingan.

(b) Asas Penyatuan

Penyata kewangan disatukan termasuk penyata kewangan Syarikat dan kesemua anak syarikatnya. Anak-anak syarikat adalah syarikat-syarikat dalammana Kumpulan mempunyai kepentingan ekuiti jangka panjang dan di mana ia mempunyai kuasa untuk melaksanakan kawalan atas polisi-polisikewangan dan kendalian untuk memperolehi faedah daripadanya. Anak-anak syarikat disatukan dengan menggunakan kaedah pengambilalihanperakaunan. Di bawah kaedah pengambilalihan perakaunan, keputusan anak-anak syarikat diambil alih atau dilupuskan dalam tahun dimasukkandalam penyata kewangan disatukan dari tarikh pengambilalihan berkuatkuasa atau sehingga tarikh pelupusan berkuatkuasa, sebagaimana sesuai. Asetdan liabiliti anak syarikat dikira pada nilai saksamanya pada tarikh pengambilalihan dan nilai-nilai ini ditunjukkan dalam kunci kira-kira disatukan.Perbezaan diantara kos pengambilalihan dan nilai saksama bahagian Kumpulan daripada aset bersih anak syarikat diambil alih pada tarikhpengambilalihan dimasukkan dalam kunci kira-kira disatukan sebagai muhibah atau muhibah negatif timbul atas penyatuan.

Urusniaga, baki dan laba tak direalis terhasil dalam Kumpulan dihapus kira atas penyatuan dan penyata kewangan disatukan menggambarkanurusniaga luaran sahaja. Kerugian tak direalis dihapus kira atas penyatuan kecuali kos tidak boleh diperolehi semula.

116


2. POLISI-POLISI PERAKAUNAN PENTING (SAMB.)

(b) Asas Penyatuan (Samb.)

Laba atau kerugian atas pelupusan anak syarikat adalah perbezaan di antara perolehan pelupusan bersih dan bahagian Kumpulan daripada asetbersihnya bersama dengan mana-mana baki tidak dilunas daripada muhibah dan perbezaan pertukaran yang sebelum ini tidak diiktiraf dalampenyata kewangan disatukan.

Kepentingan minoriti dikira pada bahagian minoriti daripada nilai saksama selepas pengambilalihan aset dan liabiliti boleh dikenal pasti syarikatdiambil alih.

(c) Muhibah

Muhibah mewakili lebihan kos pengambilalihan ke atas kepentingan Kumpulan dalam nilai saksama aset dan liabiliti boleh dikenal pasti anaksyarikat pada tarikh pengambilalihan. Muhibah dinyatakan pada kos tolak pelunasan terkumpul dan kerugian kerosotan. Polisi bagi pengiktirafandan pengiraan kerugian kerosotan adalah selaras dengan Nota 2(p). Muhibah timbul atas pengambilalihan anak-anak syarikat dinyatakan secaraberasingan dalam kunci kira-kira.

Muhibah dihapus kira atau dikredit sepenuhnya kepada penyata pendapatan bila dan apabila pembangunan dilaksanakan ke atas harta anak-anaksyarikat.

(d) Pelaburan dalam Anak Syarikat

Pelaburan Syarikat dalam anak-anak syarikat dinyatakan pada kos tolak kerugian kerosotan. Polisi bagi pengiktirafan dan pengiraan kerugiankerosotan adalah selaras dengan Nota 2(p).

Atas pelupusan pelaburan tertentu, perbezaan di antara perolehan pelupusan bersih dan nilai penyimpanan diiktiraf dalam penyata pendapatan.

(e) Faedah ke atas Pinjaman, Pendahuluan dan Pembiayaan

Berhubung dengan pembiayaan akhir, faedah belum terima dikira atas baki tahunan dan bulanan. Bagi kiraan atas baki tahunan, faedah didebitkankepada akaun pinjaman dalam mana-mana tahun adalah berdasarkan baki pada 31 Disember tahun sebelumnya, dan pinjaman dibayar balik dalamtahun, faedah dicajkan selaras dengannya dari hari pengeluaran pinjaman sehingga akhir tahun kewangan dalam mana ia dibuat. Bagi kiraan atasbaki bulanan, faedah didebitkan kepada akaun pinjaman dalam mana-mana bulan adalah berdasarkan baki pada akhir tahun sebelum ini, dan ataspinjaman dikeluarkan dalam bulan, faedah dikira dari hari pengeluaran sehingga akhir bulan dalam mana ia dibuat.

Dalam hal pinjaman penyambung dan pinjaman berjangka, faedah belum terima dikira atas baki bulanan agar faedah didebitkan kepada akaunpinjaman penyambung dan pinjaman berjangka dalam mana-mana bulan adalah berdasarkan baki pada akhir bulan sebelumnya, dan atas pinjamandibayar balik dalam bulan, faedah dikira dari hari pengeluaran sehingga akhir bulan dalam mana ia dibuat.

(f) Pengiktirafan Hasil

Hasil diiktiraf apabila ianya berkemungkinan bahawa kepentingan ekonomi berkaitan dengan urusniaga akan mengalir ke perusahaan dan jumlahhasil boleh dikira secara boleh dipercayai.

(i) Pendapatan Faedah dan Pembiayaan

Pendapatan faedah dan pendapatan daripada perniagaan Skim Perbankan Islam diiktiraf atas dasar akruan.

Di mana akaun dikelaskan sebagai tidak berbayar, faedah dalam penggantungan dengan pelarasan retrospektif dibuat sehingga tarikhpemungkiran pertama sehingga ia direaliskan atas dasar tunai. Akaun para pelanggan dikelaskan sebagai tidak berbayar di mana bayaran balikdalam tunggakan selama enam (6) bulan atau lebih.

(ii) Harta pembangunan

Hasil daripada jualan harta pembangunan diakaunkan mengikut kaedah peratusan siap. Peratusan siap ditentukan mengikut rujukan kepadakos ditanggung sehingga kini berbanding dengan jumlah anggaran kos di mana hasil projek boleh dianggarkan secara munasabahnya. Kesemuakerugian dijangka ke atas harta pembangunan diperuntukkan sepenuhnya.

117



(f) Pengiktirafan Hasil (Samb.)

(iii) Lain-lain

Yuran dan komisen pengaturan pinjaman diiktiraf sebagai pendapatan berdasarkan pengaturan kontrak.

Yuran komitmen diiktiraf sebagai pendapatan berdasarkan pengagihan masa.

Pendapatan daripada pengurusan projek diiktiraf bila dan apabila perkhidmatan diberikan.

Pendapatan sewa diiktiraf atas dasar akruan.

(g) Peruntukan bagi Hutang Lapuk dan Ragu

Peruntukan khusus dibuat bagi hutang lapuk dan ragu yang telah disemak secara individu dan dikenal pasti secara khusus sebagai lapuk dan ragu. Dalamhal pinjaman didahulukan bagi pembangunan usahasama di mana tempoh moratorium sebenar adalah enam bulan atau lebih dan di mana cagarandinilai atas anggaran boleh direalis adalah lebih rendah daripada jumlah pokok belum dijelas, peruntukan-peruntukan khusus bersamaan dengandefisit dibuat.

Selain daripada itu, peruntukan am berdasarkan peratusan pinjaman belum terima juga dibuat untuk melindungi kemungkinan kerugian yang secarakhususnya dikenal pasti.

Pinjaman tidak boleh dipungut atau bahagian daripada pinjaman dikelaskan sebagai lapuk dihapus kira selepas mengambil kira nilai boleh direaliskolateral, sekiranya ada, oleh para pengarah di mana pada pendapat pengurusan, tidak ada prospek untuk dikutip.

(h) Harta, Loji dan Peralatan dan Susut Nilai

Harta, loji dan peralatan dinyatakan pada kos tolak susut nilai terkumpul dan kerugian kerosotan. Polisi bagi pengiktirafan dan pengiraan kerugiankerosotan adalah selaras dengan Nota 2(p).

Tanah pegangan kekal tidak disusutnilaikan. Tanah pegangan pajak disusutnilaikan sepanjang tempoh pajakan masing-masing di antara 73 tahunsehingga 999 tahun.

Susut nilai lain-lain harta, loji dan peralatan diperuntukkan atas dasar garisan lurus untuk menghapus kira kos setiap aset kepada nilai bakinyasepanjang anggaran hayat bergunanya pada kadar tahunan berikut:

Bangunan 2.5% Ubahsuaian bangunan 20.0% Perabot dan peralatan 20.0%Kenderaan bermotor 20.0% Peralatan pemprosesan data 20.0%

Selepas pelupusan perkara harta, loji dan peralatan, perbezaan di antara perolehan pelupusan bersih dan jumlah penyimpanan bersih diiktiraf dalampenyata pendapatan.

(i) Faedah Kakitangan

(i) Faedah jangka pendek

Upah, gaji, bonus dan caruman keselamatan sosial diiktiraf sebagai perbelanjaan dalam tahun dalam mana perkhidmatan berkaitan diberikanoleh kakitangan-kakitangan Kumpulan. Ketakhadiran terkumpul jangka pendek diberi pampasan seperti cuti tahunan berbayar diiktirafapabila perkhidmatan diberikan oleh kakitangan-kakitangan yang meningkatkan keberhakan mereka kepada ketakhadiran diberi pampasanpada masa hadapan, dan ketakhadiran diberi pampasan tidak terkumpul jangka pendek seperti cuti sakit diiktiraf apabila ketakhadiran berlaku.

118



(i) Faedah Kakitangan (Samb.)

(ii) Pelan caruman dinyatakan

Sebagaimana dikehendaki oleh undang-undang, syarikat-syarikat di Malaysia membuat caruman kepada skim pencen negeri, KumpulanSimpanan Wang Pekerja (“KWSP”). Kumpulan juga menyumbang 4% daripada gaji kasar kakitangan-kakitangan yang turut-serta dalamLembaga Kumpulan Wang Simpanan Pekerja. Caruman sedemikian diiktiraf sebagai perbelanjaan dalam penyata pendapatan sebagaimanaditanggung.

(iii) Peruntukan bagi faedah kakitangan

Peruntukan bagi faedah kakitangan dibuat dalam penyata kewangan bagi bayaran monetari tertentu yang Syarikat mungkin pertimbangkanpada budi bicara mutlak kepada beberapa kakitangan atas persaraan mereka, kematian, hilang upaya kekal, atau meninggalkan pekerjaansebelum umur persaraan tetapi selepas memenuhi 15 atau lebih tahun perkhidmatan.

Peruntukan dibuat berdasarkan peruntukan maksimum yang mungkin sebanyak 10% daripada gaji sepanjang beberapa tahun perkhidmatankakitangan mereka. Memandangkan peruntukan maksimum yang mungkin telah diperuntukkan, tiada penilaian aktuari telah diperolehi olehSyarikat. Para pengarah berpendapat bahawa nilai semasa faedah tidak akan secara materialnya berbeza daripada jumlah peruntukan dibuatdalam penyata kewangan.

(j) Harta Pembangunan dan Tanah Dipegang bagi Pembangunan

Tanah dan perbelanjaan pembangunan dikelaskan sebagai harta pembangunan apabila kerja pembangunan penting telah dijalankan dan dijangkaakan disiapkan dalam pusingan kendalian biasa. Harta pembangunan dinyatakan pada kos campur keuntungan/kerugian boleh dikaitkan tolakkerugian masa hadapan boleh dijangka dan bil-bil progres. Kos termasuk kos tanah, semua kos pembinaan langsung, dan lain-lain perbelanjaanpembangunan berkaitan, termasuk perbelanjaan faedah yang ditanggung dalam tempoh pembangunan aktif.

Tanah dipegang untuk pembangunan terdiri daripada tanah dipegang untuk pembangunan masa hadapan dan di mana pembangunan penting telahdijalankan dan dinyatakan pada kos. Kos termasuk kos tanah dan perbelanjaan pembangunan boleh dikaitkan. Kerugian kerosotan terhasil selepas membandingkan kos dengan nilai pasaran terbuka atau nilai boleh diperolehi semula bersih, yang mana lebih tinggi. Aset sedemikian dikelaskansebagai harta pembangunan apabila kerja pembangunan penting telah dijalankan dan pembangunan dijangka akan disiapkan dalam pusingankendalian biasa.

(k) Inventori Harta Siap

Inventori harta siap dinyatakan pada kos (ditentukan atas dasar pengenalpastian khusus) dan nilai boleh direalis bersih yang mana lebih rendah. Kostermasuk kos tanah, pembinaan dan overhed pembangunan sewajarnya.

(l) Peruntukan bagi Liabiliti

Peruntukan bagi liabiliti diiktiraf apabila Kumpulan mempunyai obligasi semasa akibat daripada peristiwa lepas dan ianya berkemungkinan bahawaaliran keluar sumber-sumber yang membentuk faedah ekonomi akan diperlukan untuk menyelesaikan obligasi, dan anggaran boleh dipercayaijumlah boleh dibuat. Peruntukan disemak pada setiap tarikh kunci kira-kira dan diselaraskan untuk menunjukkan angaran terbaik semasa. Di manakesan nilai masa wang adalah material, jumlah peruntukan adalah nilai semasa daripada perbelanjaan dijangka akan diperlukan untuk menyelesaikanobligasi.

(m) Liabiliti

Deposit daripada pelanggan, bank dan institusi kewangan dinyatakan pada nilai penempatan. Lain-lain liabiliti dinyatakan pada kos dimana nilaisaksama balasan akan dibayar pada masa hadapan untuk barangan dan perkhidmatan diterima.

(n) Cukai Pendapatan

Cukai pendapatan ke atas keuntungan atau kerugian bagi tahun terdiri daripada cukai semasa dan tertunda. Cukai semasa adalah jumlahdijangka daripada cukai pendapatan perlu dibayar berhubung dengan keuntungan boleh dicukai bagi tahun dikira dengan menggunakan kadar cukaiyang telah digubal pada tarikh kunci kira-kira.

119



(n) Cukai Pendapatan (Samb.)

Cukai tertunda diperuntukkan, dengan mengunakan kaedah liabiliti, atas perbezaan sementara pada tarikh kunci kira-kira di antara asas- asas asetdan liabiliti dan jumlah penyimpanan dalam penyata kewangan. Pada dasarnya, liabiliti cukai tertunda diiktiraf bagi semua perbezaan sementaraboleh dicukai dan aset cukai tertunda diiktiraf bagi semua perbezaan sementara boleh ditolak, kerugian cukai tidak diguna dan kredit cukai tidakdiguna sehingga tahap yang ia berkemungkinan bahawa keuntungan boleh dicukai akan tersedia terhadap yang mana perbezaan sementara,kerugian cukai tidak diguna dan kredit cukai tidak diguna boleh digunakan. Cukai tertunda tidak diiktiraf sekiranya perbezaan sementara timbuldaripada muhibah atau muhibah negatif atau daripada pengiktirafan awal aset atau liabiliti dalam urusniaga yang bukan merupakan kombinasiperniagaan dan pada masa urusniaga, tidak menjejaskan sama ada keuntungan perakaunan mahupun keuntungan boleh dicukai.

Cukai tertunda dikira pada kadar cukai yang dijangka akan terpakai dalam tempoh di mana aset direalis atau liabiliti diselesaikan, berdasarkan kadarcukai yang telah digubal atau digubal sebahagian besarnya pada tarikh kunci kira-kira. Cukai tertunda diiktiraf dalam penyata pendapatan, kecualidi mana ia timbul daripada urusniaga yang diiktiraf secara langsung dalam ekuiti dalam hal mana cukai tertunda juga dicaj atau dikreditkan secaralangsung dalam ekuiti, atau apabila ia timbul daripada kombinasi perniagaan yang merupakan pengambilalihan, dalam hal mana cukai tertundadimasukkan dalam muhibah atau muhibah negatif terhasil.

Sebelum pada penerimaan pakai MASB 25 Cukai Pendapatan pada 1 Januari 2003, cukai tertunda telah diperuntukkan dengan menggunakankaedah liabiliti berhubung dengan perbezaan pemasaan penting dan aset cukai tertunda tidak diiktiraf kecuali terdapat jangkaan munasabahmengenai realisasi. Perubahan dalam polisi perakaunan ini telah diakaunkan secara retrospektif dan kesan-kesan perubahan ini dinyatakan dalamNota 35.

(o) Tunai dan Setara Tunai

Untuk tujuan penyata aliran tunai, tunai dan setara tunai termasuk tunai dalam tangan dan di bank dan deposit panggilan dan pelaburan berkecairantinggi jangka pendek yang mempunyai risiko tidak ketara perubahan dalam nilai, bersih daripada overdraf bank.

(p) Kerosotan Aset

Pada setiap tarikh kunci kira-kira, Kumpulan menyemak jumlah penyimpanan aset-asetnya untuk menentukan sama ada terdapat apa-apa petunjukbahawa aset-aset itu telah mengalami kerugian kerosotan. Sekiranya mana-mana petunjuk sedemikian wujud, kerosotan dikira denganmembandingkan nilai penyimpanan aset dengan jumlah boleh diperolehi. Jumlah boleh diperolehi adalah harga jualan bersih dan nilai dalampenggunaan yang mana lebih tinggi, yang dikira melalui rujukan kepada aliran tunai masa hadapan didiskaunkan.

Kerugian kerosotan diiktiraf sebagai perbelanjaan dalam penyata pendapatan dengan serta-merta. Keterbalikan kerugian kerosotan diiktiraf dalamtahun-tahun terdahulu direkodkan apabila terdapatnya petunjuk bahawa kerugian kerosotan diiktiraf bagi aset tidak lagi wujud atau telahberkurangan.

(q) Lain-lain Pelaburan Bukan Semasa

Pelaburan bukan semasa selain daripada pelaburan dalam anak-anak syarikat dinyatakan pada kos tolak kerugian kerosotan. Polisi bagi pengiktirafandan pengiraan kerugian kerosotan adalah selaras dengan Nota 2(p).

Atas pelupusan pelaburan, perbezaan di antara perolehan pelupusan bersih dan jumlah penyimpanannya diiktiraf dalam penyata pendapatan.

(r) Jumlah Dagangan dan Lain-lain Jumlah Belum Terima

Jumlah dagangan belum terima terdiri daripada jumlah terhutang daripada pelanggan untuk harta disewa dan dijual dan yuran projek pengurusanbelum terima. Jumlah dagangan dan lain-lain jumlah belum terima dihantar pada nilai boleh direalis dijangka. Hutang lapuk dihapus kiraapabila dikenal pasti. Anggaran dibuat bagi hutang ragu berdasarkan semakan semua jumlah belum dijelas pada tarikh kunci kira-kira.

(s) Jumlah Dagangan Perlu Dibayar

Jumlah dagangan perlu dibayar terdiri daripada jumlah kena dibayar kepada kontraktor bagi projek pembangunan harta. Jumlah dagangan perludibayar dinyatakan pada kos yang merupakan nilai saksama daripada balasan untuk dibayar pada masa hadapan bagi barangan dan perkhidmatanyang diterima.

120



(t) Pinjaman Menanggung Faedah

Pinjaman menanggung faedah direkodkan pada jumlah perolehan diterima, bersih daripada kos urusniaga.

Kos pinjaman boleh dikaitkan secara langsung kepada tanah dipegang untuk pembangunan dan harta pembangunan dipermodalkan dalam tempohpembangunan aktif dan sehingga ia sedia untuk tujuan dihasratkan. Kesemua kos pinjaman lain dicajkan kepada penyata pendapatan sebagaiperbelanjaan dalam tempoh bila mana ia ditanggung.

(u) Saham Keutamaan Boleh Tukar Boleh Tebus

Saham Keutamaan Boleh Tukar Boleh Tebus (“RCPS”) dianggap sebagai instrumen kompoun, terdiri daripada instrumen liabiliti dan komponenekuiti. Pada tarikh terbitan, nilai saksama komponen liabiliti dianggarkan berdasarkan nilai semasa obligasi dividen.

Perbezaan di antara perolehan terbitan RCPS dan nilai saksama diberikan kepada komponen liabiliti, mewakili opsyen penukaran, dimasukkandalam ekuiti pemegang-pemegang saham.

Komponen liabiliti kemudiannya dinyatakan pada kos diselaraskan bagi nilai semasa obligasi dividen di mana dividen perlu dibayar, sehinggadihapuskan atas penukaran atau penebusan manakala nilai komponen ekuiti tidak diselaraskan dalam tempoh-tempoh berikutnya.

(v) Instrumen Ekuiti

Saham-saham biasa dikelaskan sebagai ekuiti. Dividen ke atas saham biasa diiktiraf dalam ekuiti dalam tempoh dalam mana ia diisytiharkan.

Kos urusniaga bagi urusniaga ekuiti diakaunkan sebagai penolakan daripada ekuiti, bersih daripada cukai. Kos urusniaga ekuiti terdiri hanyadaripada kos luaran tambahan yang secara langsung boleh dikaitkan kepada urusniaga ekuiti yang akan sebaliknya dielakkan.

(w) Instrumen-instrumen Kewangan

Instrumen-instrumen kewangan diiktiraf dalam kunci kira-kira apabila Kumpulan menjadi pihak kepada peruntukan kontrak instrumen. Polisi-polisiperakaunan ke atas pengiktirafan dan pengiraan perkara-perkara ini dikemukakan dalam polisi-polisi perakaunan masing-masing.

Instrumen-instrumen kewangan dikelaskan sebagai liabiliti atau ekuiti selaras dengan isi pengaturan kontrak. Faedah, dividen dan laba dan kerugianberkaitan dengan instrumen kewangan dikelaskan sebagai liabiliti, dilaporkan sebagai perbelanjaan atau pendapatan. Pengagihan kepada pemeganginstrumen-instrumen kewangan dikelaskan sebagai ekuiti dicajkan secara langsung kepada ekuiti. Instrumen-instrumen kewangan diseimbangkanapabila Kumpulan mempunyai hak boleh dikuatkuasakan untuk diimbangkan dan berhasrat untuk menyelesaikan sama ada atas dasar bersih atauuntuk merealiskan aset dan menyelesaikan liabiliti serentak.

3. TUNAI DAN DANA JANGKA PENDEKKumpulan Syarikat

2003 2002 2003 2002 RM’000 RM’000 RM’000 RM’000

Tunai dalam tangan 348 3,769 338 3,759Tunai di Bank 19,466 14,875 7,413 7,185Deposit dengan institusi kewangan 139,861 81,059 139,861 81,059

159,675 99,703 147,612 92,003

Termasuk dalam tunai di bank Kumpulan adalah jumlah sebanyak RM8,275,000 (2002: RM6,269,000) dipegang selaras dengan Seksyen 7A AktaPemaju Perumahan (Kawalan dan Pelesenan), 1966 dan dengan itu disekat daripada diguna dalam operasi lain.

4. JUMLAH DAGANGAN BELUM TERIMAKumpulan

2003 2002RM’000 RM’000

Jumlah dagangan belum terima 19,596 16,733Tolak: Peruntukan bagi hutang ragu (15,218) (9,129)

4,378 7,604

121


4. JUMLAH DAGANGAN BELUM TERIMA (SAMB.)

Termasuk dalam jumlah dagangan belum terima adalah jumlah tahanan atas kontrak berjumlah RM16,000 (2002: RM29,000).

Tempoh kredit biasa Kumpulan adalah di antara 7 hingga 30 (2002: 7 hingga 30) hari. Lain-lain tempoh kredit dinilai dan diluluskan atas dasar kesdemi kes.

Kumpulan tidak mempunyai penumpuan penting risiko kredit dalam jumlah dagangan belum terima yang mungkin timbul daripada pendedahankepada penghutang tunggal atau kumpulan penghutang.

5. LAIN-LAIN JUMLAH BELUM TERIMA

Kumpulan Syarikat 2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000

Pendahuluan tidak bercagar bagi usahasama berhubung dengan projek penswastaan 102,243 92,094 - -

Pendahuluan tidak bercagar kepada projek Lembaga Kumpulan Wang Simpanan Pekerja 40,492 38,891 16,058 14,852

Pinjaman kepada Centralpolitan Development Sdn. Bhd. 8,960 8,185 8,960 8,185Yuran komitmen pinjaman 8,245 8,428 8,245 8,428Jumlah terhutang daripada anak-anak syarikat - - 41,519 31,562Faedah akan diketepikan di bawah skim penyusunan semula (Nota 8) 40,578 - 40,578 -Lain-lain 11,030 9,727 9,440 7,929

211,548 157,325 124,800 70,956Tolak: Peruntukan bagi hutang ragu (116,894) (63,547) (88,835) (41,168)

94,654 93,778 35,965 29,788

Pendahuluan tidak bercagar kepada Lembaga Kumpulan Wang Simpanan Pekerja berkait dengan bayaran dibuat bagi pihak kepada kontraktor bagiprojek pembangunan harta dan faedah dicaj ke atas pendahuluan-pendahuluan ini.

Jumlah terhutang daripada anak-anak syarikat berjumlah RM16,721,000 (2002: RM13,413,000) menanggung faedah sebanyak 6.50% (2002: 4.11%hingga 6.50%) setahun dan tidak mempunyai tempoh tetap pembayaran balik.

Lain-lain jumlah terhutang daripada anak-anak syarikat adalah tidak bercagar, tanpa faedah dan tidak mempunyai tempoh tetap pembayaran balik.

Jumlah faedah yang akan diketepikan di bawah skim penyusunan semula sebanyak RM40,578,000 (2002: Kosong) berkait dengan faedah yang akandiketepikan dengan peminjam pihak ketiga. Penepian faedah ditangguh sementara menunggu pematuhan peminjam kepada bayaran ansur sebanyakRM25,000,000 sebelum 2006. Jumlah akan diketepikan telah diperuntukkan sepenuhnya. Jumlah telah dikelaskan semula daripada pinjaman,pendahuluan dan pembiayaan dalam tahun kewangan.

Termasuk dalam lain-lain jumlah daripada Kumpulan dan Syarikat adalah deposit sewa dibayar kepada badan pemegangan utama masing-masingsebanyak RM96,000 (2002: RM129,000) dan RM96,000 (2002: RM96,000).

Kumpulan tidak mempunyai penumpuan khusus risiko kredit dalam lain-lain jumlah belum terima yang mungkin timbul daripada pendedahan kepadapenghutang tunggal atau kumpulan penghutang selain daripada pendahuluan tidak bercagar bagi usahasama berhubung dengan projek penswastaan danjumlah dituntut daripada Lembaga Kumpulan Wang Simpanan Pekerja.

122


6. INVENTORI HARTA SIAP

Kumpulan 2003 2002

RM’000 RM’000

Pada kos 3,518 3,788Pada nilai boleh direalis bersih 28,457 28,799

31,975 32,587

Kos inventori diiktiraf sebagai perbelanjaan adalah Kosong (2002: RM7,148,000).

Dalam tahun, kemasukan kira semula inventori sebanyak RM439,000 (2002: Kosong) telah diterbalikkan. Keterbalikan timbul daripada peningkatandalam nilai boleh direalis bersih akibat daripada peningkatan dalam harga jualan dijangka bagi harta-harta tertentu dalam tahun.

7. HARTA PEMBANGUNAN


RM’000 RM’000 RM’000 RM’000

Kos: Tanah pegangan kekal 219,307 219,307 116,447 116,447Tanah pegangan pajak 69,748 69,748 - -Perbelanjaan pembangunan 232,435 227,295 65,179 65,045

521,490 516,350 181,626 181,492

Tolak: Bahagian bukan semasa, dikelaskan sebagai tanahdipegang untuk pembangunan (Nota 12) (447,919) (445,154) (181,626) (181,492)

73,571 71,196 - -Tolak: Kerugian diiktiraf (21,951) (15,739) - -

51,620 55,457 - -

Tolak: Kerugian masa hadapan boleh dijangka (27,613) (28,387) - -Tolak: Bil progres (20,904) (19,936) - -Bahagian semasa dikelaskan

sebagai harta pembangunan 3,103 7,134 - -

Harta pembangunan Kumpulan didaftarkan di bawah nama rakan kongsi usahasama masing-masing.

Termasuk dalam perbelanjaan pembangunan Kumpulan dan Syarikat adalah faedah dipermodalkan dalam tahun kewangan masing-masing berjumlahRM142,000 (2002: RM2,804,000) dan Kosong (2002: RM1,000).

Kos harta pembangunan Kumpulan diiktiraf sebagai perbelanjaan dalam tahun kewangan berjumlah RM1,497,000 (2002: RM14,128,000).

8. PINJAMAN, PENDAHULUAN DAN PEMBIAYAAN


RM’000 RM’000 RM’000 RM’000Pembiayaan akhir:

Program perumahan kos sederhana 1,170,968 1,172,829 1,173,632 1,175,737Program perumahan kos rendah 32,319 41,811 32,319 41,811

Pinjaman penyambung dan pinjaman berjangka 4,794,042 4,522,404 5,003,601 4,709,170

123


8. PINJAMAN, PENDAHULUAN DAN PEMBIAYAAN (SAMB.)


RM’000 RM’000 RM’000 RM’000

Pinjaman, pendahuluan dan pembiayaan kasar 5,997,329 5,737,044 6,209,552 5,926,718Tolak: Faedah dalam penggantungan (2,054,743) (1,727,896) (2,202,882) (1,842,781)Tolak: Peruntukan bagi hutang ragu:

- khusus (672,639) (631,416) (769,506) (724,312)- am (32,386) (36,966) (32,386) (36,966)

Pinjaman, pendahuluan dan pembiayaan bersih 3,237,561 3,340,766 3,204,778 3,322,659

(i) Struktur kematangan pinjaman, pendahuluan dan pembiayaan adalah seperti berikut:


RM’000 RM’000 RM’000 RM’000Matang:Dalam masa satu tahun 4,602,522 4,514,856 4,811,520 4,701,871Satu hingga tiga tahun 355,252 237,290 356,666 237,864Tiga tahun hingga lima tahun 62,641 35,695 63,328 36,374Selepas lima tahun 976,914 949,203 978,038 950,609

5,997,329 5,737,044 6,209,552 5,926,718

(ii) Pergerakan dalam pinjaman tidak berbayar, pendahuluan dan pembiayaan (termasuk faedah dan pendapatan belum terima) adalah seperti berikut:


RM’000 RM’000 RM’000 RM’000

Pinjaman tidak berbayar (NPL)Baki pada permulaan tahun 4,449,909 3,379,384 4,547,158 3,874,857Dikelaskan sebagai tidak berbayar dalam tahun 435,434 1,321,841 547,067 930,424Dikelaskan semula kepada pinjaman berbayar (Nota 5) (40,578) - (40,578) -Perolehan semula (86,649) (100,185) (86,805) (106,992)Pengkelasan semula kepada pinjaman berbayar (420,602) (70,171) (420,602) (70,171)Jumlah dihapus kira (6,504) (80,960) (6,504) (80,960)Baki pada akhir tahun 4,331,010 4,449,909 4,539,736 4,547,158

Nisbah NPL bersih (sebagai peratusan daripada jumlah pinjaman, pendahuluan dan pembiayaan tolak peruntukan khusus dan faedah dalam penggantungan) 54% 62% 53% 59%

(iii) Pergerakan dalam peruntukan bagi hutang ragu dan faedah dalam penggantungan adalah seperti berikut:


RM’000 RM’000 RM’000 RM’000

Peruntukan Khusus

Baki pada permulaan tahun 631,416 582,208 724,312 666,297Peruntukan dibuat dalam tahun 91,104 95,971 95,075 139,581Peruntukan disebabkan pengkelasan semula pinjaman

usahasama (Nota 29) - 34,803 - -

124


8. PINJAMAN, PENDAHULUAN DAN PEMBIAYAAN (SAMB.)

Peruntukan Khusus (Samb.)Kumpulan Syarikat

2003 2002 2003 2002 RM’000 RM’000 RM’000 RM’000

Jumlah dimasuk kira semula berhubung dengan perolehan semula dan keterbalikan (49,881) (53,481) (49,881) (53,481)

Jumlah dihapus kira - (28,085) - (28,085)Baki pada akhir tahun 672,639 631,416 769,506 724,312

Peruntukan Am

Baki pada permulaan tahun 36,966 36,635 36,966 36,635(Kemasukan kira semula) peruntukan dalam tahun (4,580) 331 (4,580) 331Baki pada akhir tahun 32,386 36,966 32,386 36,966

Faedah dalam penggantungan

Baki pada permulaan tahun 1,727,896 1,211,000 1,842,781 1,436,719Faedah digantung dalam tahun 396,974 433,210 430,228 480,955Faedah digantung disebabkan pengkelasan semula pinjaman

usahasama (Nota 29) - 158,579 - -Dikelaskan semula kepada lain-lain jumlah belum terima (Nota 5) (40,578) - (40,578) -Jumlah dimasuk kira semula berhubung dengan perolehan

semula dan keterbalikan (23,489) (23,299) (23,489) (23,299)Jumlah dihapus kira (6,060) (51,594) (6,060) (51,594)Baki pada akhir tahun 2,054,743 1,727,896 2,202,882 1,842,781

Kumpulan tidak mempunyai penumpuan ketara risiko kredit dalam pinjaman, pendahuluan dan pembiayaan yang mungkin timbul daripada pendedahankepada penghutang tunggal atau kumpulan penghutang.

Termasuk dalam pinjaman penyambung dan pinjaman berjangka diberikan oleh Syarikat berhubung dengan projek usahasama adalah jumlah tidakberbayar berikut:


RM’000 RM’000 RM’000 RM’000

Pinjaman kepada anak-anak syarikat - - 150,195 135,917Pinjaman kepada rakan kongsi usaha sama 1,251,040 1,240,319 1,251,040 1,240,319

1,251,040 1,240,319 1,401,235 1,376,236

Termasuk dalam pinjaman, pendahuluan dan pembiayaan Kumpulan dan Syarikat adalah pinjaman belum terima dicagar kepada Lembaga KumpulanWang Simpanan Pekerja sebanyak RM650,000,000 (2002: RM600,000,000) sebagai cagaran bagi pinjaman pusingan KWSP sebagaimana dikemukakandalam Nota 16.

125


9. LAIN-LAIN PELABURAN


RM’000 RM’000 RM’000 RM’000

Saham disebut harga, pada kos 1,294 - 1,294 -Waran disebut harga, pada kos 106 - 106 -

Stok Pinjaman Tak Bercagar Boleh Tukar (“ICULS”), pada nilai nominal 16,359 16,359 16,359 16,359

Saham tak disebut harga, pada kos - 500 - -17,759 16,859 17,759 16,359

Tolak: Kerugian kerosotan terkumpul (16,359) (16,359) (16,359) (16,359)1,400 500 1,400 -

Nilai pasaran:Saham disebut harga 1,424 - 1,424 -Waran disebut harga 367 270 367 270ICULS disebut harga - - - -

1,791 270 1,791 270

Saham tidak disebut harga dalam tahun terdahulu mewakili 18% kepentingan MBSB Development Sdn. Bhd dalam modal saham CentralpolitanDevelopment Sdn. Bhd. yang diterbitkan dan berbayar, sebuah syarikat yang diperbadankan di Malaysia dan yang kegiatan utamanya adalahpembangunan harta. Saham tidak disebut harga telah dilupuskan dalam tahun kewangan semasa.

ICULS disebut harga telah diberikan di bawah langkah penyusunan semula pinjaman pada 1999 selaras dengan penyelesaian faedah ke atas pinjamanberjangka dari 1999 hingga 2004. Syarikat juga telah diberikan 4,907,685 waran boleh cerai disebut harga 2000/2005 di bawah perlaksanaan tersebut.

Dalam tahun kewangan, Syarikat telah diberikan 2,006,164 saham disebut harga dan 401,233 waran disebut harga di bawah pengaturan penyelesaianhutang melibatkan penjamin korporat peminjam.

10. PINJAMAN KEPADA ANAK-ANAK SYARIKAT

Syarikat 2003 2002

RM’000 RM’000

Bercagar 34,829 32,675Tidak bercagar 182,118 172,877

216,947 205,552Tolak: Peruntukan bagi hutang ragu (70,354) (61,227)

146,593 144,325

Pinjaman kepada anak-anak syarikat tidak mempunyai tempoh tetap pembayaran balik.

Pinjaman bercagar adalah bercagar terhadap harta tanah dengan nilai penyimpanan berjumlah RM4,606,000 (2002: RM4,644,000).

Purata wajaran kadar faedah tahunan pinjaman anak-anak syarikat pada tarikh kunci kira-kira adalah 6.40% (2002: 6.40%) setahun.

126


11. PELABURAN DALAM ANAK-ANAK SYARIKAT

Syarikat 2003 2002

RM’000 RM’000

Saham tak disebut harga pada kos 210,803 210,803Tolak: Kerugian kerosotan terkumpul (142,839) (138,469)

67,964 72,334

Butir-butir anak-anak syarikat adalah seperti berikut:

Kepentingan Berkesan Dipegang (%)

Nama Anak Syarikat 2003 2002 Kegiatan Utama

MBSB Properties Sdn. Bhd. 100 100 Penyewaan hartanahMBSB Development Sdn. Bhd. 100 100 Pembangunan hartanahMBSB Project Management Sdn. Bhd. 100 100 Pengurusan projek Prudent Legacy Sdn. Bhd. 51 51 Pembangunan hartanahSigmaprise Sdn. Bhd. 100 100 Penyewaan hartanahGadini Sdn. Bhd. 100 100 Pembangunan hartanahGanesha Sdn. Bhd. 100 100 Pembangunan hartanahSpringtide Sdn. Bhd. 100 100 Pembangunan hartanahTrimonds Sdn. Bhd. 100 100 Pegangan pelaburan Supreme Design Sdn. Bhd. 100 100 Menghentikan operasiDefinite Pure Sdn. Bhd. 100 100 Lengai Malaya Borneo Building Society Limited (MBBS)* 100 100 Lengai MBSB Land Sdn. Bhd. 100 100 Lengai Longterm Pride Sdn. Bhd. 100 100 Lengai Farawide Sdn. Bhd. 100 100 Lengai Maxroute Sdn. Bhd. 100 100 Lengai Raynergy Sdn. Bhd. 100 100 Lengai

* Diaudit oleh firma juruaudit selain daripada Ernst & Young.

Semua anak syarikat di atas diperbadankan di Malaysia kecuali bagi MBBS yang telah diperbadankan di Singapura.

12. TANAH DIPEGANG UNTUK PEMBANGUNAN


RM’000 RM’000 RM’000 RM’000

Tanah dipegang untuk pembangunan (Nota 7) 447,919 445,154 181,626 181,492Tolak: Kerugian kerosotan terkumpul (179,225) (176,739) (93,333) (93,298)

268,694 268,415 88,293 88,194

Termasuk dalam tanah dipegang untuk pembangunan Kumpulan adalah harta dengan nilai penyimpanan sebanyak RM24,000,000 (2002:RM25,500,000) ke atas mana Perjanjian Pembangunan telah ditandatangani dengan pihak ketiga. Sebagai balasan bagi pemberian hak pembangunan keatas tanah ini, Kumpulan akan menerima 48 unit apartmen perkhidmatan pembangunannya disiapkan.

127


12. TANAH DIPEGANG UNTUK PEMBANGUNAN (SAMB.)

Termasuk dalam tanah dipegang untuk pembangunan adalah nilai penyimpanan berikut berhubung dengan:

Kumpulan dan Syarikat 2003 2002

RM’000 RM’000

Hak milik didaftarkan di bawah nama anak syarikat 8,200 8,200Sementara menunggu pemindahan hak milik daripada pihak ketiga 700 700

8,900 8,900

13. HARTA, LOJI DAN PERALATAN

Kumpulan Tanah Tanahpegangan pegangan

Tanah pajak pajak Perabotpegangan jangka jangka Ubahsuai dan Kenderaan Peralatan

kekal panjang pendek Bangunan Bangunan peralatan bermotor pemprosesan JumlahRM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Kos Pada 1 Januari 2003 25,549 11,400 318 173,946 8,223 16,824 1,854 11,645 249,759Tambahan 40 - - - - 21 4 22 87Pelupusan (58) - - (10,336) (39) (38) (1,185) - (11,656)Pada 31 Disember 2003 25,531 11,400 318 163,610 8,184 16,807 673 11,667 238,190

Susut Nilai Terkumpul danKerugian Kerosotan

Pada 1 Januari 2003 3,600 393 76 55,785 7,805 10,311 1,421 10,995 90,386Caj susut nilai bagi tahun - 150 15 3,682 198 2,220 254 497 7,016Pelupusan - - - (883) (39) (38) (1,057) - (2,017)Keterbalikan kerugian

kerosotan (33) - - (853) - - - - (886)Pada 31 Disember 2003 3,567 543 91 57,731 7,964 12,493 618 11,492 94,499

Nilai Buku BersihPada 31 Disember 2003 21,964 10,857 227 105,879 220 4,314 55 175 143,691

Pada 31 Disember 2002 21,949 11,007 242 118,161 418 6,513 433 650 159,373

Caj susut nilai untuk 2002 - 150 15 4,686 265 2,273 299 872 8,560

128


13. HARTA, LOJI DAN PERALATAN (SAMB.)

Syarikat Tanah Perabot

pegangan Ubahsuai dan Kenderaan Peralatankekal Bangunan Bangunan peralatan bermotor pemprosesan Jumlah

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Kos Pada 1 Januari 2003 201 10,875 2,541 5,336 1,477 11,015 31,445Tambahan 40 - 3 27 43 26 139Pelupusan (58) (10,336) (39) (22) (1,082) - (11,537)Pada 31 Disember 2003 183 539 2,505 5,341 438 11,041 20,047

Susut Nilai Terkumpul dan Kerugian Kerosotan

Pada 1 Januari 2003 - 907 2,402 5,234 1,189 10,532 20,264Caj susut nilai bagi tahun - 143 54 70 191 386 844Pelupusan - (883) (39) (22) (977) - (1,921)Pada 31 Disember 2003 - 167 2,417 5,282 403 10,918 19,187

Nilai Buku BersihPada 31 Disember 2003 183 372 88 59 35 123 860

Pada 31 Disember 2002 201 9,968 139 102 288 483 11,181

Caj susut nilai untuk 2002 - 272 52 103 213 765 1,405

Termasuk dalam tanah pegangan kekal dan bangunan adalah tanah dan bangunan dengan nilai buku bersih yang mana adalah:


RM’000 RM’000 RM’000 RM’000

Sementara menunggu pemecahan bahagi hak milik 22,062 22,633 312 322Dicagar kepada badan pemegangan induk bagi

pinjaman yang telah diselesaikan sepenuhnya 28,803 29,059 266 270

Kos harta, loji dan peralatan yang telah disusutnilaikan sepenuhnya tetapi masih lagi dalam penggunaan adalah seperti berikut:

Ubahsuaian bangunan 7,301 7,165 2,240 2,279Perabot dan peralatan 5,821 5,704 5,135 5,013Kenderaan bermotor 401 429 395 416Peralatan pemprosesan data 10,986 9,159 10,599 9,113

24,509 22,457 18,369 16,821

14. PINJAMAN BANK

Pinjaman bank adalah tidak bercagar dan faedah dicaj ke atas pinjaman ini adalah berdasarkan kos dana pemberi pinjaman campur 0.50% hingga 1.00%(2002: kos dana pemberi pinjaman campur 0.50% hingga 1.00%). Faedah dicaj ke atas pinjaman ini dalam tahun di antara 3.70% hingga 7.00%(2002: 3.70% hingga 7.90%) setahun. Pinjaman bank adalah terhutang dalam masa satu tahun.

129


15. DEPOSIT


RM’000 RM’000

Deposit tetap 1,168,067 1,117,180

(i) Struktur kematangan deposit tetap adalah seperti berikut:-

Terhutang dalam masa enam bulan 957,648 1,016,420Enam bulan hingga satu tahun 144,191 87,250Satu tahun hingga tiga tahun 28,400 3,150Tiga tahun hingga lima tahun 37,828 10,360

1,168,067 1,117,180

(ii) Deposit adalah diperolehi daripada pelanggan berikut:

Kerajaan dan badan berkanun 259,880 240,889Perusahaan perniagaan 732,765 806,589Individu 171,431 48,309Lain-lain 3,991 21,393

1,168,067 1,117,180

16. LAIN-LAIN PINJAMAN


RM’000 RM’000Pinjaman Jangka Pendek Bercagar:Pinjaman pusingan KWSP 422,997 2,439Pinjaman Bank Negara Malaysia 12,247 15,052Pinjaman perumahan khas 8,600 8,600

443,844 26,091

Pinjaman Jangka PanjangBercagar:Pinjaman pusingan KWSP 170,000 700,000Pinjaman Bank Negara Malaysia 11,230 23,089Pinjaman perumahan khas 19,800 28,400Pinjaman debentur 364,619 364,619

565,649 1,116,108

Jumlah Pinjaman Pinjaman pusingan KWSP 592,997 702,439Pinjaman Bank Negara Malaysia 23,477 38,141Pinjaman perumahan khas 28,400 37,000Pinjaman debentur 364,619 364,619

1,009,493 1,142,199

Kematangan pinjaman:Dalam masa satu tahun 443,844 26,091Satu tahun hingga tiga tahun 560,824 1,099,796Tiga tahun hingga lima tahun 4,825 15,300Selepas lima tahun - 1,012

1,009,493 1,142,199

130


16. LAIN-LAIN PINJAMAN (SAMB.)

Purata wajaran kadar faedah tahunan pinjaman pada tarikh kunci kira-kira adalah seperti berikut:-


% %

Pinjaman pusingan KWSP 3.79 3.70Pinjaman Bank Negara Malaysia 3.44 3.50Pinjaman perumahan khas 6.29 7.00Pinjaman debentur 5.74 7.00

Pinjaman pusingan KWSP adalah bercagar melalui pinjaman belum terima dengan nilai penyimpanan sebanyak RM650 juta (2002: RM600 juta). Faedahdicaj ke atas pinjaman ini adalah tertakluk kepada semakan tahunan. Faedah perlu dibayar ke atas pinjaman adalah terhutang dan perlu dibayar danselaras dengan, telah dikelaskan sebagai liabiliti semasa. Pinjaman adalah boleh ditebus pada 2004 dan 2005.

Pinjaman Bank Negara Malaysia adalah untuk pembiayaan Program Perumahan Kos Rendah dan adalah bercagar melalui aset yang timbul daripadaProgram tersebut dengan nilai penyimpanan sebanyak RM26,180,000 (2002: RM34,799,000). Bayaran faedah ke atas pengeluaran bermula dua (2) tahunselepas tarikh pengeluaran masing-masing dan selepas itu perlu dibayar secara tahunan. Jumlah pokok setiap pengeluaran perlu dibayar balik dalamtempoh dua puluh (20) tahun bermula tiga (3) tahun selepas tarikh pengeluaran.

Pinjaman perumahan khas adalah daripada Lembaga Kumpulan Wang Simpanan Pekerja untuk tujuan pembiayaan Program Pembiayaan PerumahanKos Rendah dan adalah bercagar melalui jaminan yang dikeluarkan oleh Kerajaan Persekutuan Malaysia. Bayaran faedah pertama bermula pada dua (2)tahun selepas tarikh setiap pembayaran balik pinjaman dan selepas itu perlu dibayar pada 31 Disember setiap tahun. Pinjaman perlu dibayar balik melaluilima (5) ansuran tahunan sama rata, bermula pada tarikh yang sama dalam dua puluh satu (21) tahun berikutan tarikh dalam mana bayaran balik telahdibuat dan selepas itu ke atas tarikh yang sama dalam setiap tahun berikutnya.

Pinjaman debentur diperuntukkan oleh Lembaga Kumpulan Wang Simpanan Pekerja. Pinjaman debentur ini adalah bercagar melalui gadaian terapungpertama ke atas aset Syarikat kecuali aset timbul daripada Program Pembiayaan Perumahan Kos Rendah, Program Perumahan Kos Rendah Awam danpinjaman belum terima dicagar untuk pinjaman pusingan KWSP.

17. JUMLAH DAGANGAN PERLU DIBAYAR

Termasuk dalam jumlah dagangan perlu dibayar adalah jumlah tahanan ke atas kontrak berjumlah RM3,341,000 (2002: RM3,276,000).

Termasuk dalam jumlah dagangan perlu dibayar Kumpulan adalah jumlah terhutang kepada Lembaga Kumpulan Wang Simpanan Pekerja berjumlahRM4,767,000 (2002: RM4,767,000).

Tempoh biasa kredit diberikan kepada Kumpulan di antara 30 hingga 60 hari.

18. LAIN-LAIN JUMLAH PERLU DIBAYAR


RM’000 RM’000 RM’000 RM’000

Terhutang kepada pemegang saham korporat anak syarikat 177,705 160,584 - -Yuran perlu dibayar perunding dan kontraktor 10,663 9,855 8,521 8,521Terhutang kepada anak-anak syarikat - - 3,522 3,523Lain-lain 18,289 20,584 15,440 15,179

206,657 191,023 27,483 27,223

Jumlah terhutang kepada anak-anak syarikat adalah tidak bercagar, tanpa faedah dan tidak mempunyai tempoh tetap pembayaran balik.

131


19. PINJAMAN KEPADA CAGAMAS


RM’000 RM’000

Matang dalam masa 12 bulan 47,229 49,550Matang selepas 12 bulan 17,675 45,965

64,904 95,515

Jumlah ini berkait dengan perolehan diterima daripada pinjaman perumahan konvensional dijual kepada Cagamas Berhad dengan rekursa kepadaSyarikat. Di bawah perjanjian, Syarikat mengaku janji untuk menguruskan pinjaman bagi pihak Cagamas Berhad dan untuk membeli balik sebarangpinjaman yang dianggap sebagai defektif berdasarkan kriteria pra-penentuan. Pinjaman ini perlu dibayar balik seperti berikut:


RM’000 RM’000

2003 - 49,5502004 47,229 45,9652005 1,608 -2006 1,664 -2007 1,723 -2008 12,680 -

64,904 95,515

20. CUKAI TERTUNDA


RM’000 RM’000

Pada 1 Januari 27,511 27,585Diiktiraf dalam penyata pendapatan (Nota 33) 75 (74)

Pada 31 Disember 27,586 27,511

Liabiliti cukai tertunda berkait dengan cukai tertunda ke atas pelarasan nilai saksama tanah pegangan kekal dan tanah pegangan pajak.

Aset cukai tertunda Kumpulan dan Syarikat masing-masing berjumlah RM306,747,000 (2002: RM286,189,000) dan RM246,806,000 (2002:RM234,485,000) belum lagi diiktiraf berhubung dengan perkara-perkara berikut:


RM’000 RM’000 RM’000 RM’000

Kerugian cukai tak diguna 141,054 120,037 108,087 98,200Peruntukan bagi hutang ragu 50,552 51,838 76,226 73,596Kerugian kerosotan ke atas tanah dipegang untuk pembangunan 49,984 49,487 26,162 26,123Faedah dalam penggantungan 33,216 33,216 33,216 33,216Kerugian kerosotan keatas harta, loji dan peralatan 9,322 9,638 6 73Peruntukan bagi kerugian dijangka ke atas projek 7,732 7,949 - -Elaun modal tak diserap 6,285 5,104 126 106Elaun modal ditingkatkan 4,166 4,197 67 14Lain-lain 4,436 4,723 2,916 3,157

306,747 286,189 246,806 234,485

132


20. CUKAI TERTUNDA (SAMB.)

Kerugian cukai tidak diguna dan elaun modal tidak diserap tersedia untuk selama-lamanya bagi diseimbangkan terhadap keuntungan boleh dicukaiSyarikat dan anak-anak syarikat dalam mana perkara-perkara tersebut timbul. Aset cukai tertunda diiktiraf berhubung dengan perkara-perkara inimemandangkan Syarikat dan anak-anak syarikatnya mempunyai sejarah kerugian baru-baru ini.

21. SAHAM KEUTAMAAN BOLEH TUKAR BOLEH TEBUS

Pada 22 Ogos 2003, Syarikat menerbitkan 165,000,000 Saham Keutamaan Boleh Tukar Boleh Tebus (“RCPS”) 5-tahun bernilai RM1 sesaham.RCPS sebanyak 140 juta dan 25 juta telah diperuntukkan kepada Lembaga Kumpulan Wang Simpanan Pekerja, badan pemegangan utama dan kepadaPermodalan Nasional Berhad, pemegang saham korporat Syarikat, masing-masing pada harga terbitan sebanyak RM2 sesaham, untuk tujuanmodal kerja tambah.

Terma-terma RCPS adalah seperti berikut:-

(a) Penebusan : RCPS boleh ditebus mengikut budi bicara Syarikat pada RM2 setiap RCPS pada bila-bila masa dalam tempoh peganganRCPS tetapi tidak termasuk tarikh matang.

(b) Hak penukaran : pemegang-pemegang berdaftar RCPS akan mempunyai opsyen pada bila-bila masa dalam tempoh penukaran untukmenukarkan RCPS pada kadar penukaran kepada saham biasa baru bernilai RM1 sesaham dalam Syarikat.

(c) Kadar penukaran : atas dasar 1 RCPS untuk 2 saham biasa baru bernilai RM1 sesaham dalam Syarikat.

(d) Tempoh penukaran : tempoh bermula dari ulang tahun ketiga dari tarikh terbitan RCPS tetapi tidak termasuk tarikh matang dengan syaratharga pasaran saham Syarikat tidak melebihi RM1.20 bagi tempoh berturut-turut selama 90 hari pasaran sebelum tarikhnotis penukaran.

(e) Tarikh matang : pada ulang tahun kelima dari tarikh terbitan RCPS.

(f) RCPS selebihnya secara automatiknya akan ditukar kepada saham biasa baru Syarikat dalam masa tiga puluh hari bermula dengan serta-mertaselepas tarikh matang.

(g) RCPS membawa dividen terkumpul tetap. Dividen perlu dibayar tertakluk kepada ketersediaan keuntungan boleh diagih. Dividen perlu dibayarseperti berikut:

- Dividen sebanyak 4% ke atas nilai tara RCPS bagi tempoh dari tarikh terbitan sehingga 31 Disember 2003, perlu dibayar secara tunggakan pada28 Februari 2004.

- Dividen sebanyak 4% ke atas nilai tara RCPS bagi tempoh dari 1 Januari 2004 hingga 31 Disember 2007, perlu dibayar secara tunggakan pada28 Februari selepas setiap tahun kewangan.

- Tiada dividen perlu dibayar bagi tempoh dari 1 Januari 2008 hingga tarikh matang.

- Tiada dividen perlu dibayar bagi sebarang RCPS yang sedia ada ditebus atau ditukar dalam tempoh dua belas bulan sebelum ini.

(h) Saham biasa baru akan diperuntukkan dan diterbitkan selepas penukaran RCPS akan bertaraf pari passu dalam semua hubungan dengan saham biasasedia ada Syarikat kecuali bahawa mereka tidak berhak kepada sebarang dividen, hak, peruntukan dan/atau lain-lain pengagihan, tarikh keberhakankepada mana melebihi tarikh peruntukan saham biasa baru.

Perolehan diterima daripada terbitan RCPS telah dibahagikan di antara komponen liabiliti dan komponen ekuiti. Nilai saksama komponen liabilitidianggarkan berdasarkan nilai semasa obligasi dividen manakala komponen ekuiti mewakili nilai saksama opsyen penukaran. RCPS adalah diakaunkandalam kunci kira-kira Kumpulan dan Syarikat adalah seperti berikut:


RM’000 RM’000

Perolehan daripada terbitan RCPS 330,000 -Komponen ekuiti (300,618) -Komponen liabiliti pada tarikh terbitan/31 Disember 29,382 -

133


22. PERUNTUKAN BAGI LIABILITI

Ganti Rugi Jumlah Tertentu Ditetapkan

Kumpulan 2003 2002

RM’000 RM’000

Pada 1 Januari - -Peruntukan tambahan dalam tahun 1,023 -Pada 31 Disember 1,023 -

Pada 31 Disember:Semasa 1,023 -

Peruntukan bagi ganti rugi jumlah tertentu ditetapkan adalah berhubung dengan projek dijalankan oleh anak-anak syarikat tertentu. Peruntukandiiktiraf bagi tuntutan ganti rugi jumlah tertentu ditetapkan berdasarkan perjanjian jual beli.

23. PERUNTUKAN BAGI FAEDAH KAKITANGAN

Atas budi bicara mutlak Syarikat, bayaran monetari tertentu boleh dipertimbangkan bagi beberapa kakitangan atas persaraan, kematian, hilang upaya kekal atau meninggalkan pekerjaan mereka sebelum umur persaraan mereka, tetapi telah berkhidmat selama 15 tahun atau lebih.

Pergerakan dalam peruntukan bagi faedah kakitangan dalam tahun semasa adalah seperti berikut:-


RM’000 RM’000 RM’000 RM’000

Pada 1 Januari 9,923 8,909 8,990 8,094(Keterbalikan) peruntukan dalam tahun (Nota 30) (845) 1,095 (91) 977Bayaran dalam tahun (420) (81) (420) (81)

Pada 31 Disember 8,658 9,923 8,479 8,990

24. MODAL SAHAM

Bil. Saham bernilaiRM1 Sesaham Jumlah

2003 2002 2003 2002 ’000 ’000 RM’000 RM’000

Dibenarkan:- Saham Biasa

Pada 1 Januari 500,000 500,000 500,000 500,000Dibentuk dalam tahun 500,000 - 500,000 -Pada 31 Disember 1,000,000 500,000 1,000,000 500,000

- Saham Keutamaan Boleh Tebus TerkumpulPada 1 Januari 20,000 20,000 20,000 20,000Dibentuk dalam tahun 280,000 - 280,000 -Pada 31 Disember 300,000 20,000 300,000 20,000

134


24. MODAL SAHAM (SAMB.)Bil. Saham bernilai

RM 1 Sesaham Jumlah 2003 2002 2003 2002 ’000 ’000 RM’000 RM’000

- Saham Keutamaan Boleh Tukar Boleh TebusPada 1 Januari - - - -Dibentuk dalam tahun 500,000 - 500,000 -

Pada 31 Disember 500,000 - 500,000 -

1,800,000 520,000 1,800,000 520,000

Diterbitkan dan berbayar penuh:- Saham biasa

Pada 1 Januari/31 Disember 337,856 337,856 337,856 337,856

- Saham Keutamaan Boleh Tukar Boleh Tebus (komponen ekuiti)Pada 1 Januari - - - -Diterbitkan dan dibayar dalam tahun 165,000 - 165,000 -

Pada 31 Disember 165,000 - 165,000 -

502,856 337,856 502,856 337,856

(a) Dalam tahun kewangan, Syarikat meningkatkan modal sahamnya yang diterbitkan dan berbayar melalui terbitan 165,000,000 Saham KeutamaanBoleh Tukar Boleh Tebus (“RCPS”) bernilai RM1 melalui terbitan terhad pada harga terbitan RM2, untuk tujuan modal kerja tambahan. Balasan bagiRCPS telah diselesaikan melalui penukaran pinjaman pusingan KWSP dan deposit masing-masing sebanyak RM280 juta dan RM50 juta.Terma-terma RCPS adalah dikemukakan dalam Nota 21.

(b) Syarikat melaksanakan Skim Opsyen Saham Kakitangan (“ESOS”) yang dikawal oleh undang-undang kecil dan telah diluluskan oleh pemegang-pemegang saham pada Mesyuarat Agung Luar Biasa yang diadakan pada 23 Jun 2003.

Ciri-ciri utama ESOS adalah seperti berikut:-

(i) ESOS akan berkuatkuasa untuk tempoh selama lima tahun bermula dari 26 September 2003.

(ii) Orang-orang yang layak adalah kakitangan Kumpulan (termasuk para pengarah eksekutif) yang berada dalam senarai gaji Kumpulan selain daripadaanak syarikat yang lengai.

(iii) Jumlah bilangan saham akan diterbitkan di bawah ESOS tidak boleh melebihi dalam agregat 10% daripada modal saham Syarikat yang diterbitkanpada satu masa dalam pegangan ESOS.

(iv) Harga opsyen bagi setiap saham adalah purata sebut harga pasaran saham-saham Syarikat dalam senarai harian rasmi yang dikeluarkan oleh MalaysiaSecurities Exchange Berhad bagi lima hari dagangan sebelum tarikh tawaran, atau nilai tara saham-saham Syarikat bernilai RM1, yang mana lebihtinggi.

(v) Bilangan sebenar saham-saham baru yang boleh ditawarkan kepada kakitangan yang layak adalah pada budi bicara Jawatankuasa Opsyen dan,tertakluk kepada sebarang pelarasan yang mungkin dibuat di bawah Fasal 15 undang-undang kecil, tidak boleh kurang daripada 200 saham tetapi tidakboleh melebihi jumlah maksimum peruntukan yang dibenarkan dan hendaklah sentiasa dalam gandaan 200 saham.

(vi) Opsyen diberikan di bawah ESOS boleh dilaksanakan oleh penerima opsyen melalui notis bertulis kepada Syarikat bermula dari tarikh tawaran tetapisebelum penamatan selama lima tahun dari 26 September 2003 berhubung dengan semua atau mana-mana bahagian daripada saham Syarikattermasuk dalam opsyen, bahagian tersebut dalam gandaan 200 saham. Mana-mana pelaksanaan sebahagian daripada opsyen tidak akan menghalangpenerima opsyen daripada melaksanakan opsyen berhubung dengan baki saham Syarikat termasuk dalam opsyen tersebut.

135


24. MODAL SAHAM (SAMB.)

(vii) Semua saham biasa baru yang diterbitkan selepas pelaksanaan opsyen diberikan di bawah ESOS akan bertaraf pari passu dalam semua hubungandengan saham biasa sedia ada Syarikat selain daripada yang mungkin ditetapkan dalam resolusi yang meluluskan pengagihan dividen sebelum tarikhpelaksanaan mereka.

(viii) Orang-orang kepada mana opsyen telah diberikan tidak mempunyai hak untuk turut-serta selaras dengan opsyen dalam sebarang saham terbitanlain-lain syarikat.

Maklumat berhubung dengan bilangan opsyen diberikan di bawah ESOS adalah seperti berikut:

Bilangan Opsyen Saham 2003 2002

RM’000 RM’000

Pada 1 Januari - -Diberikan 32,457,600 -Luput* (265,000) -

Pada 31 Disember 32,192,600 -

* Disebabkan oleh perletakan jawatan kakitangan

Butir-butir opsyen saham diberikan dalam tahun kewangan dan jumlah belum dijelas pada akhir tahun kewangan adalah seperti berikut:

Tempoh Pelaksanaan Harga Pelaksanaan BilanganOpsyen SahamRM 2003 2002

26.9.2003 - 25.9.2008 1.00 32,192,600 -

25. HASIL KENDALIAN

Hasil kendalian Syarikat terdiri daripada pendapatan faedah kasar (selepas menolak faedah bersih digantung), yuran dan pendapatan komisen danlain-lain pendapatan diperolehi daripada pemberian pinjaman, termasuk operasi Skim Perbankan Islam.

Hasil kendalian Kumpulan terdiri daripada semua hasil diperolehi daripada perniagaan pemberian pinjaman, harta pembangunan, pengurusan harta danpenyewaan harta tanah.

26. PENDAPATAN FAEDAH


RM’000 RM’000 RM’000 RM’000

Pendapatan faedah 554,457 579,523 573,872 594,080Tolak: Faedah dalam penggantungan bersih

daripada perolehan dan penghapusan kira (379,031) (381,903) (406,739) (457,656)175,426 197,620 167,133 136,424

136


27. PERBELANJAAN FAEDAH


RM’000 RM’000 RM’000 RM’000

Pinjaman bank 53,600 54,789 53,600 54,789Lain-lain pinjaman 67,420 59,284 44,736 53,701Deposit 42,631 38,008 42,631 38,008Pinjaman dijual kepada Cagamas 3,232 4,421 3,232 4,421

166,883 156,502 144,199 150,919

28. LAIN-LAIN PENDAPATAN BUKAN FAEDAH


RM’000 RM’000 RM’000 RM’000

Lain-lain hasil kendalian:Pendapatan sewa 6,489 6,464 - -Jualan harta dan tanah pembangunan (1,120) 9,960 - -Lain-lain 1,593 2,271 1,142 1,909

Lain-lain pendapatan kendalian:Laba atas pelupusan harta, loji dan peralatan 433 46 348 46Pendapatan sewa - - - 48Lain-lain 2,184 884 710 605

9,579 19,625 2,200 2,608

29. LAIN-LAIN PERBELANJAAN KENDALIAN


RM’000 RM’000 RM’000 RM’000

Kos personel (Nota 30) 14,184 16,894 14,257 15,044Kos penubuhan 9,353 8,767 7,292 6,935Kos pemasaran 3 124 3 124Perbelanjaan pentadbiran dan am 23,207 98,705 22,662 100,430

46,747 124,490 44,214 122,533

Termasuk dalam lain-lain perbelanjaan adalah seperti berikut:

Imbuhan juruaudit:Audit berkanun 87 87 60 60Lain-lain perkhidmatan 35 302 20 302

Susut nilai 7,016 8,560 844 1,405Imbuhan para Pengarah (Nota 31) 74 92 74 92

137


29. LAIN-LAIN PERBELANJAAN KENDALIAN (SAMB.)


RM’000 RM’000 RM’000 RM’000

Kerugian kerosotan ke atas:- pelaburan dalam anak-anak syarikat - - 4,370 25,977- tanah dipegang untuk pembangunan* 2,486 59,531 35 5,695- harta, loji dan peralatan - 34,451 - 259

Peruntukan bagi liabiliti 1,023 - - -(Kemasukan kira semula) peruntukan hutang ragu:

- jumlah terhutang daripada anak-anak syarikat - - 4,859 3,304- pinjaman kepada anak-anak syarikat - - 9,127 49,161- lain-lain jumlah belum terima 12,769 (13,578) 2,230 10,403- jumlah dagangan belum terima 6,089 7,317 - -

Sewa bangunan 815 797 5,776 5,785Keterbalikan kerugian kerosotan ke atas harta, loji dan peralatan (886) (574) - -(Keterbalikan)/inventori harta siap dikurangkan nilai (439) 1,290 - -

* Jumlah dalam tahun terdahulu adalah bersih daripada peruntukan khusus dan faedah dalam penggantungan disebabkan oleh pengkelasan semulabeberapa projek pembangunan sebagai pinjaman terhutang daripada rakan kongsi usahasama.

Kumpulan 2003 2002

RM’000 RM’000

(Keterbalikan) kerugian kerosotan ke atas tanah dipegang untuk pembangunan 2,486 (133,851)Faedah dalam penggantungan (Nota 8) - 158,579Peruntukan khusus (Nota 8) - 34,803

2,486 59,531

30. KOS PERSONELKumpulan Syarikat

2003 2002 2003 2002 RM'000 RM'000 RM'000 RM'000

Upah dan gaji 10,296 11,111 9,735 9,688Kos jaminan sosial 128 132 121 114Kos pencen:

- Kumpulan Wang Simpanan Pekerja 1,326 1,594 1,263 1,433- lain-lain pelan caruman dinyatakan 242 381 226 333

(Keterbalikan) peruntukan bagi faedah kakitangan (Nota 23) (845) 1,095 (91) 977Lain-lain perbelanjaan berkaitan kakitangan 3,037 2,581 3,003 2,499

14,184 16,894 14,257 15,044

138


31. IMBUHAN PARA PENGARAH

Kumpulan dan Syarikat2003 2002

RM'000 RM'000Pengarah SyarikatBukan Eksekutif:

Yuran 55 70Lain-lain emolumen 23 22

Lebihan peruntukan bagi tahun sebelumnya:Yuran (3) -Lain-lain emolumen (1) -Jumlah 74 92

Bilangan pengarah Syarikat yang jumlah imbuhan dalam tahun termasuk kumpulan berikut adalah seperti berikut:

Bilangan Pengarah 2003 2002

Pengarah Bukan EksekutifDi bawah RM50,000 7 10

32. PINJAMAN DAN KERUGIAN PEMBIAYAAN DAN PERUNTUKAN

Kumpulan Syarikat2003 2002 2003 2002

RM'000 RM'000 RM'000 RM'000

(Kemasukan kira semula) peruntukan bagi hutang lapuk dan ragu dan pembiayaan:

- khusus 91,104 95,971 95,075 139,581- am (4,580) 331 (4,580) 331

Jumlah dimasuk kira semula berhubung dengan perolehan semula dan keterbalikan (49,881) (53,481) (49,881) (53,481)

Hutang lapuk dan pembiayaan dihapus kira 262 1,281 262 1,28136,905 44,102 40,876 87,712

33. CUKAI Kumpulan

2003 2002 RM'000 RM'000

Cukai tertunda:Berkaitan dengan pengasalan dan keterbalikan perbezaan sementara (Nota 20) 75 (74)Terlebih peruntukan dalam tahun terdahulu - (364)

75 (438)

Cukai pendapatan dikira pada kadar cukai berkanun Malaysia sebanyak 28% (2002: 28%) daripada anggaran keuntungan boleh dinilai untuk tahun.

139


33. CUKAI (SAMB.)

Penyelesaian perbelanjaan cukai pendapatan terpakai kepada kerugian sebelum cukai pada kadar cukai pendapatan berkanun kepada perbelanjaan cukaipendapatan pada kadar cukai pendapatan berkesan Kumpulan dan Syarikat adalah seperti berikut:

2003 2002 Kumpulan RM'000 RM'000

Kerugian sebelum cukai (66,677) (124,514)

Cukai pada kadar cukai berkanun Malaysia sebanyak 28% (2002: 28%) (18,670) (34,864)Cukai pendapatan tidak tertakluk kepada cukai (8,836) (24)Perbelanjaan tidak boleh ditolak untuk tujuan cukai 7,023 12,722Aset cukai tertunda tidak diiktiraf dalam tahun 20,558 22,092Terlebih peruntukan dalam tahun terdahulu - (364)Perbelanjaan/(pendapatan) cukai bagi tahun 75 (438)

Syarikat

Kerugian sebelum cukai (59,953) (222,132)

Cukai pada kadar cukai berkanun Malaysia sebanyak 28% (2002: 28%) (16,787) (62,197)Cukai pendapatan tidak tertakluk kepada cukai - (24)Perbelanjaan tidak boleh ditolak dalam tahun 4,466 12,306Aset cukai tertunda tidak diiktiraf dalam tahun 12,321 49,915Perbelanjaan/(pendapatan) cukai bagi tahun - -

Kerugian cukai dianalisis seperti berikut:Kumpulan Syarikat

2003 2002 2003 2002 RM'000 RM'000 RM'000 RM'000

Penjimatan cukai diiktiraf dalam tahun timbul daripada:Penggunaan kerugian cukai tahun semasa 2,511 1,710 2,511 1,710Penggunaan kerugian cukai dibawa ke hadapan daripada tahun

sebelum ini 237 - - -Kerugian cukai tak diguna dihantar ke hadapan 503,763 428,703 386,025 350,714

Elaun modal tidak diguna dianalisis seperti berikut:


RM'000 RM'000 RM'000 RM'000Penjimatan cukai diiktiraf dalam tahun timbul daripada:

Penggunaan elaun modal tahun semasa 64 7 64 7Penggunaan elaun modal tidak diserap dihantar kehadapan daripada

tahun sebelum ini 16 - - -Elaun modal tak diserap dibawa ke hadapan 22,445 18,229 449 377

34. KERUGIAN SETIAP SAHAM

(a) Asas

Kerugian asas setiap saham dikira dengan membahagikan kerugian bersih bagi tahun melalui purata wajaran bilangan saham biasa dalam terbitandalam tahun kewangan.

Kumpulan2003 2002

RM'000 RM'000

Kerugian bersih bagi tahun (RM’000) 66,752 124,076Purata wajaran bilangan saham biasa dalam terbitan (‘000) 337,856 337,856Kerugian asas setiap saham (sen) 20 37

140


34. KERUGIAN SETIAP SAHAM (SAMB.)

Perbandingan kerugian asas setiap saham telah dinyatakan semula untuk mengambil kira kesan daripada perubahan dalam polisi perakaunan (Nota2(a) dan Nota 35) atas kerugian bersih bagi tahun.

(b) Dicair

Kerugian dicairkan setiap saham tidak dibentangkan memandangkan ia anti-dilutif.

Perbandingan kerugian dicairkan setiap saham tidak dibentangkan memandangkan tidak ada potensi saham biasa belum dijelas dalam tahunkewangan sebelum ini.

35. PERUBAHAN DALAM POLISI-POLISI PERAKAUNAN DAN PELARASAN TAHUN TERDAHULU

(a) Perubahan dalam Polisi-polisi Perakaunan

Dalam tahun kewangan, Kumpulan dan Syarikat mengamalkan empat Piawaian MASB yang baru, yang menjadi berkuatkuasa dari 1 Januari 2003,dan selaras dengan itu mengubahsuai beberapa polisi perakaunan. Perubahan dalam polisi perakaunan disebabkan penggunaan MASB 25 CukaiPendapatan berpunca dalam pelarasan tahun terdahulu.

Di bawah MASB 25, liabiliti cukai tertunda diiktiraf bagi semua perbezaan sementara boleh dicukai. Sebelum ini, liabiliti cukai tertunda telahdiperuntukkan atas akaun perbezaan pemasaan hanya sehingga tahap bahawa liabiliti cukai telah dijangka akan dimaterialkan pada masa hadapanboleh dijangka. Selain itu, Kumpulan dan Syarikat telah memulakan pengiktirafan aset cukai tertunda bagi semua perbezaan sementara bolehditolak, di mana berkemungkinan bahawa keuntungan boleh dicukai mencukupi akan tersedia terhadap yang mana perbezaan sementara bolehditolak boleh digunakan. Sebelum ini, aset cukai tertunda tidak diiktiraf kecuali terdapat jangkaan munasabah mengenai realisasinya.

(b) Pelarasan Tahun Terdahulu

Perubahan dalam polisi perakaunan telah diamalkan secara retrospektif dan angka-angka bandingan telah dinyatakan semula. Kesan daripadaperubahan dalam polisi perakaunan adalah seperti berikut:-


RM'000 RM'000 RM'000 RM'000

Kesan ke atas kerugian terkumpul:Pada 1 Januari, sebagaimana dinyatakan sebelum ini 815,508 691,358 804,921 582,789Kesan penerimaan pakai MASB 25 1,841 1,915 - -

Pada 1 Januari, sebagaimana dinyatakan semula 817,349 693,273 804,921 582,789

Kesan ke atas kerugian bagi tahun:Kerugian bersih sebelum perubahan dalam polisi-polisi perakaunan 66,826 124,150 59,953 222,132Kesan penerimaan pakai MASB 25 (74) (74) - -

Kerugian bersih bagi tahun 66,752 124,076 59,953 222,132

Jumlah angka-angka bandingan pada 31 Disember 2002 telah dinyatakan semula seperti berikut:

Dinyatakan Dinyatakansebelum ini Pelarasan semula

RM'000 RM'000 RM'000Kumpulan

Liabiliti cukai tertunda 25,670 1,841 27,511Kerugian terkumpul 815,508 1,841 817,349

141


36. URUSNIAGA/BAKI PENTING PIHAK BERKAITAN


RM'000 RM'000 RM'000 RM'000

Urusniaga/baki dengan Kumpulan Wang Simpanan Pekerja, badan pemegangan induk:

Perbelanjaan/(Pendapatan)

Faedah ke atas pinjaman 43,703 52,232 43,703 52,232Sewa dibayar 362 408 362 364Yuran agensi diterima (42) (57) (42) (57)

Baki Nota

Pinjaman debentur 16 364,619 364,619 364,619 364,619Pinjaman pusingan KWSP 16 592,997 702,439 592,997 702,439Pinjaman perumahan khas 16 28,400 37,000 28,400 37,000Lain-lain jumlah belum terima 5 40,588 39,020 16,154 14,948Jumlah dagangan perlu dibayar 17 4,767 4,767 - -

Urusniaga/baki dengan anak-anak syarikat:

Perbelanjaan/(Pendapatan)

Faedah diterima ke atas pinjaman/pendahuluan - - (35,054) (29,454)Faedah diterima ke atas pinjaman bagi projek usahasama - - (3,276) (3,251)Sewa dibayar - - 5,017 5,014Yuran pengurusan dibayar - - 71 64Sewa diterima - - - (48)

Baki Nota

Pinjaman kepada anak-anak syarikat 10 - - 216,947 205,552Pinjaman berjangka dan pinjaman penyambung 8 - - 209,559 186,766Jumlah terhutang daripada 5 - - 41,519 31,562Jumlah terhutang kepada 18 - - 3,522 3,523Pinjaman pembiayaan akhir 8 - - 2,664 2,908

Para pengarah berpendapat bahawa semua urusniaga/baki di atas telah dimasukkan dalam perjalanan biasa perniagaan dan telah diwujudkan atasterma-terma dan syarat-syarat yang secara materialnya tidak berbeza daripada boleh diperolehi dalam urusniaga dengan pihak-pihak tidak berkaitan.

142


37. KOMITMEN DAN KONTIGENSI


RM'000 RM'000 RM'000 RM'000(i) Komitmen Operasi

Komitmen pinjaman tidak diperuntukkan dalam penyata kewangan:Pembiayaan akhir 410,360 269,544 410,360 269,544Pinjaman penyambung dan pinjaman berjangka 88,308 83,547 88,308 83,547

498,668 353,091 498,668 353,091Harta pembangunan:

Diluluskan dan dikontrakkan 539,936 739,620 - -Diluluskan dan tidak dikontrakkan 12,804 12,421 - -

552,740 752,041 - -

Jumlah 1,051,408 1,105,132 498,668 353,091

(ii) Komitmen Modal, Harta, loji dan peralatan:Diluluskan dan dikontrakkan 4,822 14,216 4,822 14,216Diluluskan dan tidak dikontrakkan 1,771 - 1,771 -

6,593 14,216 6,593 14,216(iii) Kontigensi (Bercagar Sebahagian)

Obligasi untuk menjamin prestasi oleh pihak ketiga 322,000 322,000 322,000 322,000

Kontigensi adalah bercagar sebahagiannya melalui 2 bidang tanah yang telah disediakan sebagai perkara kolateral bagi pinjaman diberikan kepadapihak-pihak ketiga. Lebihan nilai jaminan ke atas pinjaman bersih berjumlah RM53,782,000 (2002: RM53,782,000).

38. LIABILITI KONTINGEN (TIDAK BERCAGAR)

(i) Atas pemungkiran oleh peminjam, Syarikat mempunyai guaman sivil dan prosiding-prosiding perampasan bagi pemungutan semula kemudahanpinjaman. Sebaliknya, peminjam dan penjamin telah memfailkan tuntutan balas terhadap Syarikat berjumlah RM592.03 juta sebagai ganti rugibagi kerugian keuntungan dikatakan.

Berhubung dengan guaman sivil, permohonan peminjam dan penjamin untuk meminda pembelaan dan pernyataan tuntutan mereka telahdibenarkan oleh Mahkamah. Syarikat telah memfailkan Rayuan terhadap keputusan sedemikian. Mahkamah masih belum menetapkan tarikhterakhir bagi Perbicaraan kepada Rayuan tersebut. Peminjam dan penjamin juga telah memfailkan permohonan untuk membatal beberapaperenggan dalam Jawapan Syarikat kepada Pembelaan dan Tuntutan Balas Terpinda peminjam. Mahkamah masih belum menetapkan tarikhterakhir bagi Perbicaraan permohonan ini.

Berhubung dengan prosiding-prosiding perampasan, Syarikat sehingga kini telah memperolehi satu Perintah Jualan berhubung dengan harta yangdicagar kepada Syarikat sebagai jaminan bagi kemudahan pinjaman. Peminjam telah menfailkan rayuan untuk mengenepikan Perintah Jualantersebut. Mahkamah masih belum menetapkan tarikh bagi Perbicaraan Rayuan peminjam.

Syarikat telah menandatangani perjanjian penyelesaian dengan peminjam dan penjamin dalam mana bayaran sebahagian jumlah belum dijelastelahpun dibayar kepada Syarikat secara ansuran. Semua prosiding undang-undang telah dibiarkan sahaja sementara menunggu penyelesaianpenuh jumlah belum dijelas sebagaimana dikemukakan dalam perjanjian penyelesaian.

(ii) Dalam guaman sivil yang dibawa terhadap Syarikat, peminjam menuntut jumlah sebanyak RM400.31 juta bagi pemungkiran dikatakan akanperjanjian pinjaman yang dikomitkan oleh Syarikat.

Rayuan peminjam terhadap keputusan Mahkamah untuk membuang permohonan mereka bagi Penghakiman Terus telah dibuang pada 11 Mac2004. Mahkamah masih lagi belum menetapkan tarikh bagi Pengurusan Kes berhubung dengan perkara ini.

(iii) Dalam guaman sivil yang dibawa terhadap Syarikat, peminjam menuntut RM1.48 juta bagi pemungkiran dikatakan perjanjian pinjaman yangdikomitkan oleh Syarikat.

Peminjam masih lagi belum menetapkan perkara untuk perbicaraan.

(iv) Dalam dua guaman sivil yang dibawa terhadap Syarikat, kontraktor dilantik oleh salah satu peminjam Syarikat menuntut ganti rugi berjumlahRM2.54 juta bagi pemungkiran kontrak yang dikatakan. Guaman telah difailkan dalam Mahkamah Tinggi di Kuala Lumpur serta juga dalamMahkamah Tinggi di Kota Bharu.

143


38. LIABILITI KONTINGEN (TIDAK BERCAGAR) (SAMB.)

Permohonan Kontraktor bagi Penghakiman Terus telah dibuang oleh Mahkamah. Kedua-dua guaman sejak daripada itu telah disatukan dan akandidengar dalam Mahkamah Tinggi di Kuala Lumpur.

Mahkamah telah menetapkan 25 April 2004 bagi Pengurusan Kes berhubung dengan perkara ini.

(v) Atas pemungkiran oleh peminjam, Syarikat telah meneruskan dengan prosiding perampasan untuk merampas harta yang disediakan oleh penggadaipihak ketiga sebagai cagaran bagi kemudahan diberikan kepada peminjam. Sebagai balasan penggadai pihak ketiga telah meneruskan denganguaman undang-undang terhadap Syarikat bagi pelanggaran yang dikatakan akan terma-terma berkaitan dengan Gadaian. Perkara sekarangditetapkan untuk Pengurusan Kes pada 9 Mei 2004.

Berhubung dengan prosiding-prosiding perampasan, Syarikat sehingga kini memperolehi Perintah Jualan. Satu Lelongan telah diadakan pada 28Oktober 2003 tetapi telah dibatalkan oleh Pejabat Tanah memandangkan tidak ada pembida. Pemilik telah memfailkan usul dalam Mahkamahuntuk mengenepikan Perintah Jualan.

Tarikh bagi keputusan perkara ini iaitu 16 Mac 2004 telah dikosongkan memandangkan hakim cuti pada hari tersebut. Mahkamah akanmemaklumkan pihak-pihak mengenai tarikh berikutnya untuk menyampaikan keputusannya ke atas perkara ini.

(vi) Dalam guaman sivil yang dibawa terhadap Syarikat, peminjam menuntut ganti rugi berjumlah RM134.408 juta akibat daripada kegagalan Syarikatuntuk melaksanakan obligasi-obligasinya di bawah Perjanjian Pinjaman.

Pengurusan Kes bagi perkara ini iaitu 19 Februari 2004 telah ditangguhkan kepada 14 April 2004.

(vii) Dalam guaman sivil diambil oleh Syarikat terhadap peminjam dan tiga pihak yang lain (“Defendan-defendan”), Syarikat telah memohon daripadaMahkamah satu Perisytiharan bahawa Perjanjian Pinjaman dan Perjanjian Usahasama ditandatangani di antara pihak-pihak adalah tidak sah dantidak mempunyai kesan dan untuk menuntut bagi ganti rugi berjumlah RM59.499 juta daripad Defendan, bersama dengan ganti rugi am, faedahdan kos.

Sebaliknya Defendan Ketiga dan Defendan Keempat, telah memfailkan tuntutan balasan memohon ganti rugi berjumlah RM185.1 juta bagipelanggaran Perjanjian Usahasama yang dikatakan, anggaran ganti rugi am sebanyak RM750 juta, jumlah yang mana untuk ditentukan olehMahkamah dan satu tanggung rugi berhubung dengan semua kos, ganti rugi perlu dibayar kepada pihak-pihak ketiga.

Syarikat telah memfailkan Jawapan dan Pembelaan kepada Pembelaan dan Tuntutan Balas pada 30 Oktober 2003.

Mahkamah masih belum menetapkan tarikh Pengurusan Kes berhubung dengan perkara ini.

Para pengarah selepas mendapat nasihat daripada peguamcara Syarikat, berpendapat bahawa Syarikat secara munasabah mempunyai kes yang baikberhubung dengan semua tuntutan terhadap Syarikat dan dengan yang demikian, tiada peruntukan telah dibuat dalam penyata kewangan.

39. PERISTIWA PENTING

Pada 22 Ogos 2003, Syarikat memperuntukkan dan menerbitkan 140 juta dan 25 juta Saham Keutamaan Boleh Tukar Boleh Tebus (”RCPS”) melaluiterbitan terhad masing-masing kepada Lembaga Kumpulan Wang Simpanan Pekerja dan Permodalan Nasional Berhad.

Maklumat terperinci mengenai RCPS dikemukakan didalam Nota 21 dan Nota 24.

40. ANGKA-ANGKA BANDINGAN

Angka-angka bandingan kunci kira-kira berikut telah dikelaskan semula untuk mematuhi dengan pembentangan tahun semasa.

Dinyatakan Pelarasan DinyatakanSebelum Ini Semula

RM'000 RM'000 RM'000Kumpulan

Aset SemasaLain-lain jumlah belum terima 96,606 (2,828) 93,778

Liabiliti SemasaJumlah dagangan perlu dibayar 72,339 (2,828) 69,511

144


40. ANGKA-ANGKA BANDINGAN (SAMB.)

Pengkelasan semula telah dibuat memandangkan para pengarah percaya ia akan menggambarkan dengan lebih baik kedudukan bersih jumlah terhutangdaripada rakan kongsi usahasama.

Selain daripada yang dinyatakan di atas, pembentangan dan pengkelasan semula perkara-perkara dalam penyata kewangan tahun semasa adalahseimbang dengan tahun kewangan sebelumnya kecuali bahawa jumlah angka-angka bandingan tertentu telah diselaraskan akibat daripada polisiperakaunan sebagaimana dikemukakan dalam Nota 2(a) dan Nota 35.

41. INSTRUMEN-INSTRUMEN KEWANGAN

(a) Objektif dan Polisi Pengurusan Risiko Kewangan

Risiko-risiko dikenal pasti oleh Kumpulan dikategorikan sebagai risiko pasaran, kredit, operasi dan strategik. Risiko pasaran termasuk kadar faedahdan risiko kecairan. Risiko kredit menangani faktor kredit seperti had kredit, aset kolateral dan penilaian aset dan pengkelasan semula melaluipemungkiran. Risiko operasi merangkumi risiko undang-undang, sumber manusia, teknologi maklumat dan reputasi.

Lembaga Malaysia Building Society Berhad (“MBSB”) melalui Jawatankuasa Pengurusan Audit dan Risiko (ARMCO) memastikan bahawa kawalanmencukupi telah ditempatkan untuk mengenal pasti dan meminimumkan risiko dan polisi kewangan dipatuhi.

Manual semua bahagian, jabatan dan cawangan akan disemak secara kerap dan dipatuhi oleh semua unit perniagaan dan penyeliaan untukmemastikan proses pengenalpastian, kuantifikasi, meringankan dan pelaporan risiko berdasarkan pendedahan modal Kumpulan ditangani dan dalamkeadaan baik.

(b) Risiko Operasi

Risiko operasi adalah risiko potensi kerugian disebabkan oleh kegagalan atau ketakcukupan prosedur-prosedur kendalian dalaman yang berpuncadaripada ketakberkesanan, pengurangan dalam produktiviti dan peningkatan dalam kos kendalian. Risiko kakitangan juga memberi kesan kepadarisiko operasi tertakluk kepada kualiti dan kemahiran kakitangan dalam menangani pelbagai risiko.

Tiga jawatankuasa pengurusan penyeliaan iaitu Jawatankuasa Pengurusan (MANCO), Jawatankuasa Aset Liabiliti (ALCO) dan Jawatankuasa Kredit,mengawasi pematuhan polisi-polisi Kumpulan ke atas risiko operasi timbul daripada sebarang kegagalan dalam proses operasi dalaman. Prosesoperasi dalaman pada masa ini sedang disemak.

(c) Risiko Pasaran

Risiko pasaran adalah risiko potensi kerugian akibat daripada perubahan dalam nilai intrinsik instrumen-instrumen kewangan disebabkan olehpergerakan dalam pasaran boleh ubah seperti kadar faedah, harga ekuiti dan lain-lain faktor makro ekonomi akan akhirnya menjejas jurangkeberuntungan dan kecairan yang mengawasi sumber dan penggunaan dana.

ALCO menyelia pendedahan risiko pasaran dengan mengawasi turun naik dalam pendapatan faedah bersih atau nilai pelaburan daripada kesandalam faktor-faktor risiko pasaran yang melibatkan Syarikat.

(i) Risiko Kadar Faedah

Risiko kadar faedah adalah risiko potensi pergerakan perolehan timbul daripada pergerakan dalam kadar faedah.

Polisi sedia ada Syarikat ke atas risiko kadar faedah adalah untuk memaksimumkan Pendapatan Faedah Bersih (NII) yang akan diperolehi,peningkatan dalam Margin Faedah Bersih (NIM) dan untuk meminimakan kesan naik turun kepada pengurusan aset dan liabiliti Syarikat.

(ii) Risiko Kecairan

Risiko kecairan adalah risiko potensi kerugian akibat daripada pendedahan tidak sesuai ke atas kematangan pembiayaan dalam Kumpulan yangboleh terjejas oleh risiko kadar faedah dan kedudukan kurang baik aliran tunai Kumpulan.

145


41. INSTRUMEN-INSTRUMEN KEWANGAN (SAMB.)

(ii) Risiko Kecairan (Samb.)

Polisi Kumpulan ke atas pendedahan risiko kecairan timbul daripada obligasi aliran tunai adalah seperti berikut:

- Untuk memastikan pemaksimuman perolehan manakala mengekalkan kecairan mencukupi untuk memenuhi keperluan yang dijangka danpotensi pembiayaan tidak dijangka.

- Untuk menyesuaikan aliran masuk dan aliran keluar tunai dalam pasaran biasa MBSB bagi pinjaman dan deposit.

(d) Risiko Kredit

Risiko kredit adalah risiko kerugian disebabkan oleh penaksiran dan penilaian kredit dan ketakupayaan peminjam untuk melaksanakan obligasikontrak mereka kepada Syarikat.

Kumpulan mengurangkan risiko kredit timbul daripada portfolio kredit dan pelaburan dengan memastikan bahawa pendedahan kredit adalahtertakluk kepada had-had diluluskan rakan pihak (termasuk had pelanggan tunggal) dan terma-terma dan syarat-syarat kemudahan bagi pemberiankemudahan seperti kepercayaan kredit peminjam, struktur kemudahan pinjaman, perletakan harga kadar faedah dan keseluruhan daya maju danpendedahan kredit.

Proses risiko kredit menggabungkan pematuhan kepada polisi-polisi dan garis panduan Syarikat serta prosedur kredit untuk memperbaiki kecekapandalam memproses penilaian kredit dan kesan risiko pasaran, pemantauan kualiti portfolio pinjaman Syarikat melalui pengwujudan pentadbiran risikokredit yang sesuai dan pengurusan risiko kredit serta juga pemantauan risiko kredit bebas.

(e) Nilai Saksama

Jumlah penyimpanan dan anggaran nilai saksama instrumen-instrumen kewangan Kumpulan dan Syarikat pada akhir tahun kewangan adalahseperti berikut:

2003 Kumpulan SyarikatNota Jumlah Nilai Jumlah Nilai

Penyimpanan Saksama Penyimpanan SaksamaRM'000 RM'000 RM'000 RM'000

Aset KewanganTunai dan dana jangka pendek 3 159,675 159,675 147,612 147,612Jumlah dagangan belum terima 4,378 4,378 - -Lain-lain jumlah belum terima

(tidak termasuk jumlah terhutang daripada anak-anak syarikat) 5 94,654 94,654 15,936 15,936

Jumlah terhutang daripada anak-anak syarikat 5 - - 20,029 *Pinjaman, pendahuluan dan pembiayaan 8 3,237,561 3,237,561 3,204,778 3,204,778Lain-lain pelaburan 9 1,400 1,791 1,400 1,791Pinjaman kepada anak-anak syarikat 10 - - 146,593 *

Liabiliti KewanganPinjaman bank 14 1,046,072 1,046,072 1,046,072 1,046,072Deposit 15 1,168,067 1,161,317 1,168,067 1,161,317Lain-lain pinjaman 16 1,009,493 1,009,493 1,009,493 1,009,493Jumlah dagangan perlu dibayar 17 62,882 62,882 - -Lain-lain jumlah perlu dibayar (tidak termasuk

jumlah terhutang kepada anak-anak syarikat) 18 206,657 206,657 23,961 23,961Jumlah terhutang kepada anak-anak syarikat 18 - - 3,522 *Pinjaman dijual kepada Cagamas 19 64,904 64,904 64,904 64,904Saham keutamaan boleh tukar boleh tebus 21 29,382 29,964 29,382 29,964

146



(e) Nilai Saksama (Samb.)

2002 Kumpulan SyarikatNota Jumlah Nilai Jumlah Nilai

Penyimpanan Saksama Penyimpanan SaksamaRM'000 RM'000 RM'000 RM'000

Aset KewanganTunai dan dana jangka pendek 3 99,703 99,703 92,003 92,003Jumlah dagangan belum terima 4 7,604 7,604 - -Lain-lain jumlah belum terima

(tidak termasuk jumlah terhutang daripada anak-anak syarikat) 5 93,788 93,788 14,852 14,852

Jumlah terhutang daripada anak-anak syarikat 5 - - 14,936 *Pinjaman, pendahuluan dan pembiayaan 8 3,340,766 3,340,766 3,322,659 3,322,659Lain-lain pelaburan 9 500 770 - 270Pinjaman kepada anak-anak syarikat 10 - - 144,325 *

Liabiliti Kewangan Pinjaman bank 14 1,270,457 1,270,457 1,270,457 1,270,457Deposit 15 1,117,180 1,116,971 1,117,180 1,116,971Lain-lain pinjaman 16 1,142,199 1,142,199 1,142,199 1,142,199Jumlah dagangan perlu dibayar 17 69,511 69,511 - -Lain-lain jumlah perlu dibayar (tidak termasuk

jumlah terhutang kepada anak-anak syarikat) 18 191,023 191,023 23,700 23,700Jumlah terhutang kepada anak-anak syarikat 18 - - 3,523 *Pinjaman dijual kepada Cagamas 19 95,515 95,515 95,515 95,515

* Adalah tidak munasabah untuk menganggarkan nilai saksama jumlah terhutang daripada/kepada anak-anak syarikat terutamanya disebabkanoleh ketiadaan tempoh bayaran tetap yang dipersetujui oleh pihak-pihak terlibat dan tanpa menanggung kos berlebihan.

Kaedah-kaedah dan andaian-andaian berikut digunakan untuk mengganggarkan nilai saksama kelas-kelas instrumen kewangan berikut:

(i) Tunai dan dana jangka pendek, Jumlah Dagangan dan lain-lain belum terima dan lain-lain Jumlah Belum Terima/Perlu Dibayar dan Depositmatang dalam 12 bulan.

Jumlah penyimpanan lebih kurang nilai saksama disebabkan oleh kematangan jangka pendek secara relatif daripada instrumen-instrumenkewangan.

(ii) Pinjaman, pendahuluan dan pembiayaan, Pinjaman Bank, Deposit matang selepas 12 bulan, Lain-lain pinjaman, Pinjaman dijual kepadaCagamas. Nilai saksama pinjaman kadar terapung belum terima/perlu dibayar dianggarkan lebih kurang nilai penyimpanannya.

Nilai saksama kadar tetap pinjaman/deposit dianggarkan dengan menggunakan analisis aliran tunai didiskaunkan, berdasarkan kadarpinjaman/deposit tambahan semasa bagi jenis pengaturan pinjaman/deposit yang sama.

(iii) Lain-lain pelaburan

Nilai saksama pelaburan disebut harga ditentukan melalui rujukan kepada harga bida pasaran bursa saham disebut harga pada penutupperniagaan pada tarikh kunci kira-kira.

Nilai saksama saham tidak disebut harga adalah berdasarkan anggaran perolehan akan diperolehi semasa pelupusannya.

147



(e) Nilai Saksama (Samb.)

(iv) Saham keutamaan boleh tukar boleh tebus

Nilai saksama saham keutamaan boleh tukar boleh tebus dianggarkan dengan menggunakan analisis aliran tunai didiskaunkan, berdasarkanjenis kadar pinjaman tambahan semasa bagi pengaturan pinjaman yang sama.

42. RISIKO KADAR FAEDAH

Jadual di bawah meringkaskan pendedahan Kumpulan dan Syarikat kepada risiko kadar faedah. Jadual menunjukkan purata kadar faedah berkesan padatarikh kunci kira-kira dan tempoh-tempoh dalam mana instrumen-instrumen kewangan diletakkan harga semula atau matang, yang mana lebih awal.

Kumpulan Purata2003 Kesensitifan Kadar

Sehingga 1 >1-3 >3-6 >6-12 >1-5 Lebih 5 bukan Faedah bulan bulan bulan bulan tahun tahun faedah Jumlah %

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 setahun

Aset kewangan Tunai dan dana jangka pendek 139,761 - - 100 - - 19,814 159,675 2.80Jumlah dagangan belum terima - - - - - - 4,378 4,378 -Lain-lain jumlah belum terima - - - - - - 94,654 94,654 -Pinjaman, pendahuluan dan

pembiayaan 59,740 6,232 37,917 5,141 423,703 962,910 1,741,918 3,237,561 8.69Lain-lain aset - - - - - - 448,863 448,863 -Jumlah aset 199,501 6,232 37,917 5,241 423,703 962,910 2,309,627 3,945,131

Liabiliti kewanganPinjaman bank 360,732 685,340 - - - - - 1,046,072 4.00Deposit 560,688 167,183 229,777 144,191 66,228 - - 1,168,067 3.64Lain-lain pinjaman 4,626 5,364 8,382 425,472 565,649 - - 1,009,493 3.78Jumlah dagangan perlu dibayar - - - - - - 62,882 62,882 -Lain-lain jumlah perlu dibayar - - - - - - 206,657 206,657 -Pinjaman dijual kepada Cagamas 566 1,137 1,718 43,808 17,675 - - 64,904 4.10Saham keutamaan boleh tukar

boleh tebus - - - 6,346 23,036 - - 29,382 4.00Lain-lain liabiliti - - - - - - 55,900 55,900 -Jumlah liabiliti 926,612 859,024 239,877 619,817 672,588 - 325,439 3,643,357Ekuiti - - - - - - 301,774 301,774 -Jumlah liabiliti dan ekuiti 926,612 859,024 239,877 619,817 672,588 - 627,213 3,945,131

Jurang kesensitifan faedah pada kunci kira-kira (727,111) (852,792) (201,960) (614,576) (248,885) 962,910 1,682,414 -

Jurang kesensitifan faedah luarkunci kira-kira - - - - - - - -

Jumlah jurang faedah kesensitifan (727,111) (852,792) (201,960) (614,576) (248,885) 962,910 1,682,414 -

148


42. RISIKO KADAR FAEDAH (SAMB.)

Kumpulan Purata2002 Kesensitifan Kadar



Aset kewangan

Tunai dan dana jangka pendek 81,059 - - - - - 18,644 99,703 2.82Jumlah dagangan belum terima - - - - - - 7,604 7,604 -Lain-lain jumlah belum terima - - - - - - 93,778 93,778 -Pinjaman, pendahuluan dan

pembiayaan 189,647 399 866 13,848 212,872 959,020 1,964,114 3,340,766 8.77Lain-lain aset - - - - - - 468,009 468,009 -Jumlah aset 270,706 399 866 13,848 212,872 959,020 2,552,149 4,009,860

Liabiliti kewangan

Pinjaman bank 97,124 1,125,627 47,706 - - - - 1,270,457 4.32Deposit 723,706 131,828 160,886 87,250 13,510 - - 1,117,180 3.52Lain-lain pinjaman 943 5,826 8,457 10,865 1,115,096 1,012 - 1,142,199 4.69Jumlah dagangan perlu dibayar - - - - - - 69,511 69,511 -Lain-lain jumlah perlu dibayar - - - - - - 191,023 191,023 -Pinjaman dijual kepada Cagamas 964 1,940 43,754 2,892 45,965 - - 95,515 4.32Lain-lain liabiliti - - - - - - 56,067 56,067 -Jumlah liabiliti 822,737 1,265,221 260,803 101,007 1,174,571 1,012 316,601 3,941,952Ekuiti - - - - - - 67,908 67,908 -

Jumlah liabiliti dan ekuiti 822,737 1,265,221 260,803 101,007 1,174,571 1,012 384,509 4,009,860

Jurang kesensitifan faedah pada kunci kira-kira (552,031) (1,264,822) (259,937) (87,159) (961,699) 958,008 2,167,640 -

Jurang kesensitifan faedah di luar kunci kira-kira - - - - - - - -

Jumlah jurang faedah kesensitifan (552,031) (1,264,822) (259,937) (87,159) (961,699) 958,008 2,167,640 -

Syarikat2003

Aset kewanganTunai dan dana jangka pendek 139,761 - - 100 - - 7,751 147,612 2.80Lain-lain jumlah belum terima

(tidak termasuk jumlah terhutang daripada anak-anak syarikat) - - - - - - 15,936 15,936 -

Jumlah terhutang daripada anak-anak syarikat - - - - - 20,029 - 20,029 6.50

Pinjaman, pendahuluan dan pembiayaan 59,760 6,279 37,986 5,277 425,446 964,392 1,705,638 3,204,778 8.73

Pinjaman kepada anak-anak syarikat - - - - - 146,593 - 146,593 6.40Lain-lain aset - - - - - - 158,517 158,517 -Jumlah aset 199,521 6,279 37,986 5,377 425,446 1,131,014 1,887,842 3,693,465

149



Syarikat Purata2003 Kesensitifan Kadar



Liabiliti kewangan Pinjaman bank 360,732 685,340 - - - - - 1,046,072 4.00Deposit 560,688 167,183 229,777 144,191 66,228 - - 1,168,067 3.64Lain-lain pinjaman 4,626 5,364 8,382 425,472 565,649 - - 1,009,493 3.78Lain-lain jumlah perlu dibayar - - - - - - 27,483 27,483 -Pinjaman dijual kepada Cagamas 566 1,137 1,718 43,808 17,675 - - 64,904 4.10Saham keutamaan boleh tukar

boleh tebus - - - 6,346 23,036 - - 29,382 4.00Lain-lain liabiliti - - - - - - 27,063 27,063 -Jumlah liabiliti 926,612 859,024 239,877 619,817 672,588 - 54,546 3,372,464Ekuiti - - - - - - 321,001 321,001 -Jumlah liabiliti dan ekuiti 926,612 859,024 239,877 619,817 672,588 - 375,547 3,693,465

Jurang kesensitifan faedah padakunci kira-kira (727,091) (852,745) (201,891) (614,440) (247,142) 1,131,014 1,512,295 -


Jumlah jurang faedah kesensitifan (727,091) (852,745) (201,891) (614,440) (247,142) 1,131,014 1,512,295 -

2002

Aset kewangan Tunai dan dana jangka pendek 81,059 - - - - - 10,944 92,003 2.82Lain-lain jumlah belum terima

(tidak termasuk jumlah terhutang daripada anak-anak syarikat) - - - - - - 14,852 14,852 -

Jumlah terhutang daripada anak-anak syarikat - - - - - 14,936 - 14,936 5.53

Pinjaman, pendahuluan dan pembiayaan 189,668 442 928 13,971 214,124 960,426 1,943,100 3,322,659 8.87

Pinjaman kepada anak-anak syarikat - - - - - 139,686 4,639 144,325 6.40Lain-lain aset - - - - - - 171,709 171,709 -

Jumlah aset 270,727 442 928 13,971 214,124 1,115,048 2,145,244 3,760,484

150



Syarikat Purata2002 Kesensitifan Kadar



Liabiliti kewangan Pinjaman bank 97,124 1,125,627 47,706 - - - - 1,270,457 4.32Deposit 723,706 131,828 160,886 87,250 13,510 - - 1,117,180 3.52Lain-lain pinjaman 943 5,826 8,457 10,865 1,115,096 1,012 - 1,142,199 4.69Lain-lain jumlah perlu dibayar - - - - - - 27,223 27,223 -Pinjaman dijual kepada Cagamas 964 1,940 43,754 2,892 45,965 - - 95,515 4.32Lain-lain liabiliti - - - - - - 27,574 27,574 -Jumlah liabiliti 822,737 1,265,221 260,803 101,007 1,174,571 1,012 54,797 3,680,148Ekuiti - - - - - - 80,336 80,336 -

Jumlah liabiliti dan ekuiti 822,737 1,265,221 260,803 101,007 1,174,571 1,012 135,133 3,760,484

Jurang kesensitifan faedah pada kunci kira-kira (552,010) (1,264,779) (259,875) (87,036) (960,447) 1,114,036 2,010,111 -


Jumlah jurang faedah kesensitifan (552,010) (1,264,779) (259,875) (87,036) (960,447) 1,114,036 2,010,111 -

43. MAKLUMAT MENGIKUT SEGMEN

(a) Segmen Perniagaan:

Kumpulan disusun mengikut tiga segmen perniagaan utama:

(i) Pembiayaan – pemberian pinjaman atas cagaran harta pegangan kekal dan pegangan pajak;

(ii) Pembangunan harta – pembangunan harta kediaman dan komersil; dan

(iii) Penyewaan harta tanah – penyewaan bangunan pejabat dan hotel.

Lain-lain segmen perniagaan termasuk pengurusan projek dan pemegangan pelaburan, tiada satupun yang cukup besar untuk dilaporkan secaraberasingan.

Para pengarah berpendapat bahawa kesemua urusniaga antara segmen telah dimasuki dalam perjalanan biasa perniagaan dan telah dibuat atasterma-terma dan syarat-syarat yang secara materialnya tidak berbeza daripada apa yang boleh diperolehi dalam urusniaga dengan pihak-pihak tidakberkaitan.

151


43. MAKLUMAT MENGIKUT SEGMEN (SAMB.)

Pembangunan Penyewaan Pembiayaan Harta Harta Lain-lain Penghapusan Kira Disatukan2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

HASIL DAN PERBELANJAANHasil

Jualan luar 164,937 139,986 (1,120) 9,960 6,489 6,464 452 362 11,667 59,543 182,425 216,315

Jualan antara segmen 3,375 (1,653) - - 5,030 5,325 - - (8,405) (3,672) - -

Jumlah hasil 182,425 216,315

Keputusan

Keputusan segmen (59,953) (222,132) (62,056) 98,516 (16,473) (52,231) 692 (1,057) 71,113 52,390 (66,677) (124,514)

Cukai (75) 438

Kerugian selepas cukai (66,752) (124,076)

Kepentingan minoriti - -

Kerugian bersih bagi tahun (66,752) (124,076)

ASET DAN LIABILITI

Aset segmen 3,693,465 3,760,484 191,711 212,468 157,096 161,959 3,840 3,442 (101,233) (128,745) 3,944,879 4,009,608

Aset korporat tidak diperuntukkan 252 252

Jumlah aset disatukan 3,945,131 4,009,860

Liabiliti segmen 3,353,880 3,661,564 508,389 467,092 207,681 196,070 1,784 2,078 (474,596) (430,996) 3,597,138 3,895,808

Liabiliti korporat tidak diperuntukkan 46,219 46,144

Jumlah liabiliti disatukan 3,643,357 3,941,952

LAIN-LAIN MAKLUMAT

Perbelanjaan modal 139 137 - 23 - - - - (52) - 87 160

Susut nilai 844 1,405 257 270 5,687 6,612 - 45 228 228 7,016 8,560

Kerugian kerosotan ke atas harta, loji

dan peralatan - 259 - - - 34,192 - - - - - 34,451

Keterbalikan kerugian kerosotan ke atas harta,

loji dan peralatan - - - - (886) (574) - - - - (886) (574)

Kerugian kerosotan pelaburan dalam

anak-anak syarikat 4,370 25,977 - 128 - - - - (4,370) (26,105) - -

(Keterbalikan) kerugian kerosotan ke atas

tanah dipegang untuk pembangunan 35 5,695 1,013 (145,337) - - - - 1,438 199,173 2,486 59,531

Perbelanjaan bukan tunai selain daripada susut

nilai, pelunasan dan kerugian kerosotan 463,740 609,213 33,265 31,953 5,865 7,346 (367) 634 (68,744) 225,685 433,759 423,461

(b) Segmen Geografi:

Pelaporan segmen tidak dianalisis mengikut lokasi geografi memandangkan kegiatan Kumpulan lebih banyak beroperasi di Malaysia.

152


44. OPERASI SKIM PERBANKAN ISLAM (“IBS”)

KUNCI KIRA-KIRA PADA 31 DISEMBER 2003 Kumpulan dan Syarikat

Nota 2003 2002 RM'000 RM'000

ASETTunai dan dana jangka pendek 9,689 -JUMLAH ASET 9,689 -

LIABILITI

Deposit (a) 5,650 -Lain-lain jumlah perlu dibayar (b) 95 -JUMLAH LIABILITI 5,745 -

Dana perbankan Islam (c) 3,944 -

JUMLAH LIABILITI DAN DANA PERBANKAN ISLAM 9,689 -

PENYATA PENDAPATAN BAGI TAHUN BERAKHIR 31 DISEMBER 2003

Kumpulan dan SyarikatNota 2003 2002

RM'000 RM'000

Pendapatan daripada pembiayaan 37 -Dividen boleh diagihkan kepada pendeposit (34) -Pendapatan bersih daripada operasi pembiayaan 3 -Lain-lain perbelanjaan kendalian (d) (59) -Kerugian sebelum cukai dan zakat (56) -Cukai (f) - -Zakat - -Kerugian selepas cukai dan zakat (56) -Kerugian terkumpul dibawa ke hadapan - -Kerugian terkumpul dihantar ke hadapan (56) -

PENYATA ALIRAN TUNAI BAGI TAHUN BERAKHIR 31 DISEMBER 2003 Kumpulan dan Syarikat

2003 2002 RM'000 RM'000

ALIRAN TUNAI DARIPADA KEGIATAN KENDALIAN

Kerugian sebelum cukai dan zakat (56) -Perubahan dalam modal kerja:

Peningkatan dalam deposit 5,650 -Peningkatan dalam lain-lain jumlah perlu dibayar 95 -

Tunai dihasilkan daripada operasi/Tunai bersih dihasilkan daripada kegiatan kendalian 5,689 -

153


44. OPERASI SKIM PERBANKAN ISLAM (“IBS”) (SAMB.)

PENYATA ALIRAN TUNAI BAGI TAHUN BERAKHIR 31 DISEMBER 2003 (Samb.)

ALIRAN TUNAI DARIPADA KEGIATAN PEMBIAYAANKumpulan dan Syarikat

2003 2002 RM'000 RM'000

Dana diperuntukkan daripada Ibu Pejabat/Tunai bersih dihasilkan daripada kegiatan pembiayaan 4,000 -

Peningkatan bersih dalam tunai dan dana jangka pendek 9,689 -Tunai dan dana jangka pendek pada permulaan tahun kewangan - -Tunai dan dana jangka pendek pada akhir tahun kewangan 9,689 -

(a) DEPOSITKumpulan dan Syarikat

2003 2002 RM'000 RM'000

Deposit pelaburan am 5,650 -

(i) Struktur kematangan deposit pelaburan am adalah seperti berikut:


RM'000 RM'000

Perlu dibayar dalam masa enam bulan 150 -Enam bulan hingga satu tahun 5,500 -

5,650 -

(ii) Deposit diperolehi sumbernya daripada pelanggan-pelanggan berikut:


RM'000 RM'000Perusahaan perniagaan 5,500 -Individu 150 -

5,650 -

(b) LAIN-LAIN JUMLAH PERLU DIBAYAR


RM'000 RM'000Keuntungan perlu dibayar 34 -Terhutang kepada Ibu Pejabat 61 -

95 -

154



(c) DANA PERBANKAN ISLAMKumpulan dan Syarikat

2003 2002 RM'000 RM'000

Dana diperuntukkan daripada Ibu pejabat 4,000 -Kerugian terkumpul (56) -

3,944 -

(d) LAIN-LAIN PERBELANJAAN KENDALIANKumpulan dan Syarikat

2003 2002 RM'000 RM'000

Kos personel (Nota 44(e)) 59 -

(e) KOS PERSONEL


RM'000 RM'000Upah dan gaji 51 -Kos keselamatan sosial 1 -Kos pencen - pelan caruman dinyatakan 7 -

59 -

Bilangan kakitangan operasi IBS dalam Kumpulan dan dalam Syarikat pada akhir tahun kewangan adalah 5 (2002 : Kosong).

(f) CUKAI

Tidak ada perbelanjaan cukai bagi tahun memandangkan Skim berada dalam kedudukan kerugian cukai.

Cukai pendapatan dikira pada kadar cukai berkanun Malaysia sebanyak 28% (2002: 28%) daripada anggaran keuntungan boleh dinilai bagi tahun.

Pengecualian daripada perbelanjaan cukai pendapatan terpakai kepada kerugian sebelum cukai dan zakat pada kadar cukai pendapatan berkanunkepada perbelanjaan cukai pendapatan pada kadar cukai pendapatan berkesan Kumpulan dan Syarikat adalah seperti berikut:


RM'000 RM'000Kerugian sebelum cukai dan zakat (56) -Cukai pada kadar cukai berkanun Malaysia sebanyak 28% (2002: 28%) (16) -Perbelanjaan tidak boleh ditolak untuk tujuan cukai 16 -Perbelanjaan cukai bagi tahun - -

155



(g) KADAR HASIL/KEUNTUNGAN KE ATAS PORTFOLIO IBS

Jadual di bawah meringkas pendedahan Kumpulan dan Syarikat kepada risiko kadar hasil/keuntungan bagi operasi IBS. Jadual menunjukkan kadarpurata hasil/keuntungan berkesan pada tarikh kunci kira-kira dan tempoh-tempoh dalam mana instrumen-instrumen kewangan sama ada diletakanharga semula atau matang, yang mana lebih awal.

Kumpulan dan Syarikat Purata2003 Kesensitifan Kadar



Aset kewangan

Tunai dan dana jangka pendek 9,025 - - 100 - - 564 9,689 2.82Jumlah aset 9,025 - - 100 - - 564 9,689

Liabiliti kewangan

Deposit - 150 - 5,500 - - - 5,650 2.54Lain-lain jumlah perlu dibayar - - - - - - 95 95 -Jumlah liabiliti - 150 - 5,500 - - 95 5,745Ekuiti - - - - - - 3,944 3,944 -Jumlah liabiliti dan ekuiti - 150 - 5,500 - - 4,039 9,689Hasil/keuntungan pada kunci kira-kira

jurang kesensitifan 9,025 (150) - (5,400) - - (3,475) -Hasil/keuntungan luar kunci kira-kira

jurang kesensitifan - - - - - - - -Hasil/keuntungan

jumlah jurang kesensitifan 9,025 (150) - (5,400) - - (3,475) -

Angka-angka bandingan tidak dikemukakan memandangkan tidak ada operasi IBS dalam tahun kewangan yang lepas.

45. MATA WANG

Semua jumlah dinyatakan dalam Ringgit Malaysia.

contents kandungan - mbsb.com.my · penyata kewangan borang proksi corporate information mbsb’s...

Documents