lb aluminium 2008 berhad annual report · lb aluminium berhad (138535-v) ® 2008 annual report 2 0...

LBALUMINIUM

BERHAD(138535-V)

®

2008 annual report

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Lot 11, Jalan Perusahaan 1, Kawasan Perusahaan Beranang43700 Beranang, Semenyih, Selangor Darul EhsanTel : 03-87238822 (General), 87232288 (Sales)Fax : 03-87233191 (General), 87237272 (Sales),

87236868 (Sales), 87271218 (Export)E-mail : [email protected]

LB

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www.lbalum.com

in tune with the environment

LBALUMINIUM

BERHAD(138535-V)

Preferred Global Partnerin Aluminium

vision

missionCustomer Focus

• We understand customer needs• Our products will be of

consistent quality• We deliver on-time and in the

right order quantity• Our customers are our partners

in business• We assist customers in

achieving their needs

Operational Excellence

• Best in class on quality, on-timedelivery and cost

• We manage as entrepreneurs inour daily operations

• We will innovate to achieve thebest production facility

Teamwork

• We win together• We practise shared leadership

and cooperate with each other• We value differences but work

towards a common objective• We believe in the benefits of

teamwork

Stakeholders’ Interest

• We focus on profitable growthfor our stakeholders

• We manage and safeguardassets and resources effectively

• We provide safe workenvironment and employmentopportunities

• We provide staff future growth& development

• We care for the environment

At LB Aluminium Berhad, we are working thatmuch harder to ensure everything we do, from rawmaterial through the production process tillfinished product, are benchmarked against highenvironment standards. Naturally, our approachfurther accentuates the quality of aluminium, awidely recognised environmentally friendly metal.More importantly, our approach to producingquality aluminium products mirrors our respect forthe environment.

contentsVision and Mission

2 Corporate Profile

3 Notice of Annual General Meeting

5 Statement Accompanying

Notice of Annual General Meeting

6 Corporate Information

7 Board of Directors

8 Profile of Directors

10 Financial Highlights

11 Statement on Corporate Governance

15 Additional Compliance Information

16 Statement on Internal Control

18 Audit Committee Report

20 Executive Chairman’s Statement

22 Chief Operating Officer’s Operations Review

25 Branch Network

26 Financial Statements

87 List of Properties

90 Substantial Shareholders

91 Substantial Warrantholders

92 Shareholdings Statistics

Proxy Form

LB ALUMINIUM BERHAD � 2008 � annual report2

company profile

LB Aluminium Berhad is listed on the Main Board of Bursa Malaysia Securities Berhad and

has been a public listed company since 1994. The Company’s consolidated shareholders

funds as at 30 April 2008 stood at RM186.0 million with total number of shareholders

exceeding 5,000. For the year ended 30 April 2008, the Group posted a turnover of

RM355.0 million.

The Company’s production facilities are located on a 20-acre site in Beranang in the

state of Selangor and within a thirty (30) minute drive from the Kuala Lumpur

International Airport. Our existing integrated production facilities include extrusion

presses from UBE, Japan with annual production capacity of 70,000 metric tonnes.

Ancillary equipment comprises of billet heaters/log shears and double pullers from

Cometal, Italy and Granco Clark, USA as well as quenching box from Cometal, Italy. To

complement the aesthetics finishing of the extrusion products, is the first and only fully

automated vertical anodising plant in Malaysia that adheres to Japanese standards to

ensure uniformity and consistency of quality with a monthly capacity of up to 1,400

metric tonnes. In addition to the anodising plant, we have two (2) fully integrated

powder coating lines from Wagner, Germany as well as a fluorocarbon painting line.

Our in-house die/mould shop is equipped with the latest computer-aided design and

manufacturing machines including CNC die cutting and EDM machines capable of

producing die/mould of various complexities. We also have a test-rig for specific product

and system testing.

We pride ourselves in constantly upgrading the quality of our products to meet the

changing needs of our customers and society. Achievement of the highest standards of

excellence like the MS ISO 9001:2000 standard and UKAS Accreditation certification

are testimonies to our excellence in the aluminium extrusion industry.

LB Aluminium Berhad has an extensive branch network with sales outlets cum

warehouses in the major cities and towns in the Peninsular and East Malaysia and

Singapore. Our growing export markets include Sri Lanka, Mauritius, United Kingdom,

Australia, Hong Kong, New Zealand, Pakistan, Philippines, USA, Thailand, Brunei,

Canada, Germany, Japan, South Africa, Maldives, Greece, India, Papua New Guinea,

France, Vietnam, Netherland, China, Mexico, Belgium, St. Lucia and Indonesia.

Incorporated in 1985,

LB Aluminium Berhad

is today the largest

supplier of aluminium

extrusion products in

Malaysia and one of

the largest aluminium

extrusion

manufacturers in

South-East Asia.

LB ALUMINIUM BERHAD � 2008 � annual report 3

NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of the Company will beheld at Ujong Pandang Room, Staffield Country Resort, Batu 13, Jalan Seremban-Kuala Lumpur (Country Road), 71700 Mantin, Negeri Sembilan Darul Khusus onThursday, 30 October 2008 at 10.00 a.m. for the following purposes:-

AGENDA

1. To receive and adopt the audited Financial Statements forthe year ended 30 April 2008 and the Reports of theDirectors and Auditors thereon. (Resolution 1)

2. To declare a first and final tax exempt dividend of 1.75 senper share in respect of the financial year ended 30 April2008. (Resolution 2)

3. To approve the payment of Directors’ Fees amounting toRM126,000.00 (2007: RM144,000.00) for the financial yearended 30 April 2008. (Resolution 3)

4. To re-elect the following Directors who retire in accordancewith Articles 75 and 77 of the Company’s Articles ofAssociation:-

– Ms. Leow Sok Hoon (Resolution 4)– Mr. Yap Chee Woon (Resolution 5)

5. To re-elect the retiring Director, Encik Muhammad NagibGopal Bin Abdullah in accordance with Article 81 of theCompany’s Articles of Association of the Company.

(Resolution 6)

6. To re-appoint Messrs. BDO Binder as Auditors and toauthorise the Directors to fix their remuneration

(Resolution 7)

7. As SPECIAL BUSINESS, to consider, and if thought fit, to passthe following as Ordinary Resolutions:-

(i) Authority to issue shares not exceeding ten (10) percentum of the Issued Capital of the Company.

“THAT pursuant to Section 132D of the CompaniesAct, 1965, and subject to the approvals of the relevantgovernmental/regulatory authorities (if any shall berequired), the Directors be and are hereby empoweredto issue shares (other than bonus or rights issue) in theCompany from time to time and upon such terms andconditions and for such purposes as the Directors maydeem fit provided that the aggregate number of sharesissued pursuant to the resolution in any one financial

year of the Company (other than by way of bonus orrights issue) does not exceed ten (10) per centum ofthe issued capital of the Company for the time beingand that the Directors be and are hereby alsoempowered to obtain approval from the BursaMalaysia Securities Berhad for the listing of andquotation for the additional shares so issued and thatsuch authority shall continue in force until conclusionof the next Annual General Meeting of the Company.”

(Resolution 8)

(ii) Proposed renewal of authority for share buy-back.

“THAT, subject to compliance with Section 67A of theCompanies Act, 1965 (as may be amended, modifiedor re-enacted from time to time) and any prevailinglaws, rules, regulations, orders, guidelines andrequirements by any relevant authority, approval beand is hereby given to the Company to, from time totime, purchase through the Bursa Malaysia SecuritiesBerhad (“Bursa Malaysia”) such number of ordinaryshares in the Company (“Shares”) and/or retain suchShares so purchased as treasury shares (“TreasuryShares”) as may be determined by the Directors of theCompany upon such terms and conditions as theDirectors may deem fit and expedient in the bestinterests of the Company provided that the aggregatenumber of Shares purchased and/or retained asTreasury Shares shall not exceed ten per centum (10%)of the issued and paid-up share capital of theCompany at the time of purchase (“Proposed ShareBuy-Back”);

AND THAT the maximum amount of funds to beutilised for the purpose of the Proposed Share Buy-Backshall not exceed the Company’s aggregate retainedprofits and share premium account;

AND THAT upon the purchase by the Company of itsown Shares, the Directors of the Company be and arehereby authorised to:-

(a) cancel all or part of the Shares so purchased; or

(b) retain all or part of the Shares so purchased asTreasury Shares and cancel the remainder; or

notice of annual general meeting


(c) distribute the Treasury Shares as share dividends to theCompany’s shareholders for the time being and/or toresell the Treasury Shares on Bursa Malaysia and/orsubsequently cancelled or any combination of the threeand in any other manner.

AND THAT such authority from the shareholders of theCompany will be effective immediately upon passing of thisordinary resolution and will continue to be in force until:-

(i) the conclusion of the next Annual General Meeting(“AGM”) of the Company following the extraordinarygeneral meeting at which such resolution was passedat which time the authority shall lapse unless renewed,either unconditionally or subject to conditions, byordinary resolution passed at the AGM; or

(ii) the expiration of the period within which the nextAGM after that date is required by law to be held; or

(iii) revoked or varied by ordinary resolution passed by theshareholders of the Company in a general meeting;

whichever occurs first, but not so as to prejudice thecompletion of purchase(s) by the Company before theaforesaid expiry date and in any event, in accordance withthe provisions of the guidelines issued by Bursa Malaysia orany other relevant authority:

AND THAT authority be and is hereby given to the Directorsof the Company to take all such step as are necessary,including the opening and maintaining of a centraldepositories account(s) designated as Share Buy-BackAccount(s) under the Securities Industry (CentralDepositories) Act, 1991, and entering into all otheragreements, arrangements and guarantees with any partyor parties to implement, finalise and give full effect to theaforesaid purchase with full powers to assent to anyconditions, modifications, revaluation, variations and/oramendments (if any) as may be required or imposed by therelevant authorities from time to time and to do all such actsand things as the Directors may deem fit and expedient inthe best interest of the Company.” (Resolution 9)

8. To transact any other ordinary business of the Company ofwhich due notice shall have been given.

BY ORDER OF THE BOARD

NG BEE LIANLIM HOOI MOOICompany Secretaries

Seremban3 October 2008

NOTICE OF DIVIDEND ENTITLEMENT

NOTICE IS ALSO HEREBY GIVEN THAT subject to the approval ofthe shareholders at the Annual General Meeting on 30 October2008, the first and final tax exempt dividend of 1.75 sen per sharein respect of the financial year ended 30 April 2008 will bepayable on 11 November 2008 to Depositors whose namesappear in the Record of Depositors on 4 November 2008.

A Depositor shall qualify for entitlement to the dividend only inrespect of:-

(a) shares transferred into the depositor’s securities accountbefore 4.00 p.m. on 4 November 2008 in respect of ordinarytransfers; and

(b) shares bought on the Bursa Malaysia Securities Berhad on acum entitlement basis according to the rules of the BursaMalaysia Securities Berhad.

Notes:

1. A member of the Company who is entitled to attend and vote atthe Meeting is entitled to appoint one or more Proxies to attendand vote in his stead. Where a member appoints two Proxies ormore Proxies, the appointment shall be invalid unless he specifiesthe proportion of his holdings to be represented by each Proxy. AProxy need not be a member of the Company but must attendthe Meeting in person to vote. The instrument appointing aProxy must be in writing under the hand of the appointer or hisattorney duly authorised in writing, or if the appointer is acorporation either under its common seal or under the hands ofduly authorised officer or attorney.

2. All forms of Proxy must be deposited at the Company’s RegisteredOffice at No. 275 (1st Floor), Jalan Haruan 1, Oakland IndustrialPark, 70200 Seremban, Negeri Sembilan Darul Khusus not lessthan 48 hours before the time appointed for holding the Meetingor at any adjournment thereof.

3. Explanatory Notes on Special Business

(a) Item 7 (i) of the Agenda – Ordinary Resolution

Authority to issue shares not exceeding ten (10) per centumof the Issued Capital of the Company

The Ordinary Resolution proposed under item 7 (i) of theAgenda, if passed, is to empower the Directors to issue upto a maximum of ten (10) per centum of the total issuedshare capital of the Company for the time being withoutconvening a general meeting for such purposes as theDirectors consider would be in the interest of the Company.This authority unless revoked or varied by the Company ata general meeting will expire at the next Annual GeneralMeeting.

(b) Item 7(ii) of the Agenda – Ordinary Resolution

Proposed renewal of authority for share buy-back.

The details of the proposed renewal of authority for theProposed Share Buy-Back are set out in the Statement toShareholders dated 3 October 2008 which is dispatchedtogether with the Annual Report.

3. Annual General Meeting of LB Aluminium Berhad

Place Ujong Pandang Room, StaffieldCountry ResortBatu 13, Jalan Seremban-Kuala Lumpur(Country Road), 71700 MantinNegeri Sembilan Darul Khusus

Date & Time 30 October 2008 at 10.00 a.m.

4. The shareholdings of the Directors standing for re-electionin the Company are disclosed in the Directors’ Report underDirectors’ Interest of this Annual Report and other detailsof the Directors standing for re-election are disclosed in theDirectors’ Profile in this annual report.

statement accompanyingnotice of annual general meetingPURSUANT TO PARAGRAPH 8.28(2) OF THE LISTING REQUIREMENTS OFBURSA MALAYSIA SECURITIES BERHAD

1. The name of Directors who are standing forre-election are as follows:-

• Ms. Leow Sok Hoon

• Mr. Yap Chee Woon

• Encik Muhammad Nagib Gopal Bin Abdullah

2. The details of attendance of existing Directors atBoard meetings.

During the financial period, four (4) Board meetings wereheld.

Name of Directors Attendance

Datuk Leow Chong Howa 4/4

Mark Wing Kong 4/4

Leow Sok Hoon 4/4

Leow Chong Fatt 4/4

Yap Chee Woon 4/4

Neoh Lay Keong 4/4

Dr. Mohd. Husni Bin Ahmad 4/4

Dato’ Mohd. Ghazali 2/4Bin Mohd. Khalid(resigned on 28.03.2008)

Muhammad Nagib 0/4Gopal Bin Abdullah(appointed on 9.07.2008)


corporate information

BOARD OF DIRECTORS

Datuk Leow Chong Howa Executive Chairman

Mark Wing Kong Chief Executive Officer

Leow Sok Hoon Non-Executive Director

Leow Chong Fatt Non-Executive Director

Yap Chee Woon Non-Executive Director

Neoh Lay Keong Independent Non-Executive Director

Dr. Mohd. Husni Bin Ahmad Independent Non-Executive Director

Muhammad Nagib Gopal Bin Abdullah Independent Non-Executive Director(appointed on 9.07.2008)

Dato’ Mohd. Ghazali Bin Mohd. Khalid Independent Non-Executive Director(resigned on 28.03.2008)

AUDIT COMMITTEE

Independent Non-Executive Director– ChairmanNeoh Lay Keong

Independent Non-Executive DirectorsDr. Mohd. Husni Bin AhmadMuhammad Nagib Gopal Bin Abdullah(appointed on 9.07.2008)

Chief Executive OfficerMark Wing Kong(resigned on 9.07.2008)

REMUNERATIONCOMMITTEE


Independent Non-Executive DirectorDr. Mohd. Husni Bin Ahmad

Non-Executive DirectorYap Chee Woon

NOMINATION COMMITTEE


Independent Non-Executive DirectorDr. Mohd. Husni Bin Ahmad

Executive ChairmanDatuk Leow Chong Howa

SECRETARIES

Ng Bee Lian (MAICSA 7041392)

Lim Hooi Mooi (MAICSA 0799764)

AUDITORS

BDO BinderChartered Accountants12th Floor, Menara Uni.Asia1008, Jalan Sultan Ismail50250 Kuala Lumpur

PRINCIPAL BANKERS

AmBank BerhadCIMB Bank BerhadHSBC Bank Malaysia BerhadMaybank BerhadPublic Bank BerhadUnited Overseas Bank (Malaysia) BerhadUnited Overseas Bank Limited, Singapore

SOLICITORS

Shook Lin & Bok20th Floor, AmBank Group Building55, Jalan Raja Chulan50200 Kuala Lumpur

Soo Thien Ming & NashrahWisma Selangor Dredging3rd Floor, South BlockNo. 142-A, Jalan Ampang50450 Kuala Lumpur

Cha & WongE-19, (1st Floor), Jalan 1/2146000 Petaling JayaSelangor Darul Ehsan

CORPORATE ADVISOR

AmInvestment Bank Berhad22nd Floor, AmBank Group Building55, Jalan Raja Chulan50200 Kuala Lumpur

REGISTERED OFFICE

No. 275 (1st Floor), Jalan Haruan 1Oakland Industrial Park70200 SerembanNegeri SembilanTel : 06-7625463Fax: 06-7629693

SHARE REGISTRAR

Bina Management (M) Sdn BhdLot 10, The Highway CentreJalan 51/20546050 Petaling JayaSelangor Darul EhsanTel : 03-77843922Fax: 03-77841988

HEAD OFFICE

Lot 11, Jalan Perusahaan 1Kawasan Perusahaan Beranang43700 Beranang, SemenyihSelangor Darul Ehsan

STOCK EXCHANGE LISTING

Main Board ofBursa Malaysia Securities Berhad

Stock Name: LBALUMStock Code: 9326

1. Datuk Leow Chong Howa

2. Mr. Mark Wing Kong

3. Datuk Jeffery Ong Cheng Lock

4. Mr. Leow Chong Fatt

5. Mr. Yap Chee Woon

6. Mr. Neoh Lay Keong

7. Dr. Mohd. Husni Bin Ahmad

8. Encik Muhammad Nagib Gopal Bin Abdullah


board of directors

1 23 4 5 6 7 8


profile of directors

Datuk Leow Chong Howa

Datuk Leow Chong Howa, aged 50, aMalaysian, is the Executive Chairman ofLB Aluminium Berhad and was appointedto the Board on 16 April 1985. He is abusinessman and prior to assuming hiscurrent position on 1 August 2008, wasthe Managing Director of the Companysince its incorporation. He is a member ofthe Nomination Committee.

Datuk Leow is the brother of Leow ChongFatt, a Director of LB Aluminium Berhadand Leow Keng Soon, a substantialshareholder of the Company. He is also anuncle to Leow Sok Hoon, a Director andsubstantial shareholder of LB AluminiumBerhad as well as uncle to Ms. Leow SokYan and Ms. Leow Sok Hong, who areboth substantial shareholders of theCompany.

He has no conflict of interest withLB Aluminium Berhad and has had noconviction for any offences within the pastten (10) years.

Mark Wing Kong

Mark Wing Kong, aged 49, a Malaysian, isthe Chief Executive Officer ofLB Aluminium Berhad. Prior to theappointment to his present position, hewas the Executive Director and wasappointed to the Board on 15 March 1997.He is a member of the Malaysian Instituteof Certified Public Accountants. Mr. Markwas with Kassim Chan & Co from 1980 to1986 and subsequently as OperationsManager with Arab-Malaysian SecuritiesSdn Berhad from 1986 to 1988. From1988 to 1997, he was with Arab-MalaysianMerchant Bank Berhad where he wasGeneral Manager, Corporate Finance attime of resignation.

He also sits on the Board of Pheim UnitTrusts Berhad.

Mr. Mark does not have any familyrelationship with any director and/or majorshareholder of LB Aluminium Berhad norhas he any conflict of interest with theCompany. He has had no convictions forany offences within the past ten (10) years.

Leow Sok Hoon

Leow Sok Hoon, aged 36, a Malaysian, is aNon-Executive Director of LB AluminiumBerhad and was appointed to the Boardon 3 August 1993. She holds anAdvance Diploma, Association ofBusiness Executives (ABE), a Diploma inBusiness Administration, University ofWales and a BA in BusinessAdministration also from the Universityof Wales. She is a businesswoman.

Ms. Leow is the niece of Datuk LeowChong Howa, Executive Chairman and asubstantial shareholder of LB AluminiumBerhad, of Mr. Leow Chong Fatt, a Directorof the Company and of Mr. Leow KengSoon, a substantial shareholder of theCompany. She is also a sister to Ms. LeowSok Yan and Ms. Leow Sok Hong, who areboth substantial shareholders of theCompany.

She has no conflict of interest with LBAluminium Berhad and has had noconviction for any offences within the pastten (10) years.

Leow Chong Fatt

Leow Chong Fatt, aged 54, a Malaysian, isa Non-Executive Director of the Companyand was appointed to the Board on 9 June1993. He is a businessman and has beenthe Purchasing Manager of LB AluminiumBerhad since its incorporation.

Mr. Leow is the brother of Datuk LeowChong Howa, Executive Chairman andsubstantial shareholder of LB AluminiumBerhad and of Leow Keng Soon, asubstantial shareholder of the Company.He is also the uncle to Ms. Leow Sok Hoon,a Director and substantial shareholder ofthe Company and uncle to Ms. Leow SokYan and Ms. Leow Sok Hong, bothsubstantial shareholders of the Company.

He has no conflict of interest withLB Aluminium Berhad and has had noconviction for any offences within the pastten (10) years.

Yap Chee Woon

Yap Chee Woon, aged 49, a Malaysian, is aNon-Executive Director of the Companyand was appointed to the Board on 2 May1997. He is a businessman and is presentlythe General Manager of LB AluminiumBerhad which he joined since itsincorporation. He is a member of theRemuneration Committee.

Mr. Yap does not have any familyrelationship with any director and/or majorshareholder of LB Aluminium Berhad norhas he any conflict of interest with theCompany. He has had no conviction forany offences within the past ten (10) years.


Datuk Jeffery OngCheng Lock

Datuk Jeffery Ong Cheng Lock, aged 57, aMalaysian, is the Chief Operating Officer ofthe Company. He holds a Degree inBusiness Administration from the Instituteof Business Administration, Melbourne,Australia. Datuk Jeffery has more than 30years experience in senior managementand began his career with the GentingGroup. He was a consultant in GuthrieManagement Services and was the SeniorDirector for Human Resource for a multi-national company in Malacca, employing atotal workforce of 7,000 employees priorto joining the Company. He wasresponsible as part of the multi-nationalcompany’s management team for thetransfer, set up and staffing of the newmanufacturing plant in China. He was alsoresponsible for upgrading, careerdevelopment and succession needs of thecompany to ensure that staff competenciesare in line with technological advancement.

He also served in various positions asChairman of the Federation of MalaysianManufacturers (Malacca Branch), PanelMember of Industrial Court, Panel Memberof SOCSO Appellate Court, Advisorymember of Institute Latihan Perindustrian,Malacca and Chairman of MalaysianEmployers Federation (Malacca Branch).

Datuk Jeffery has implemented CultureChange Programme for organisations,production linked wages & KPI forproductivity improvement, and madenumerous paper presentations for theASEAN Business Forum, MalaysianEmployers Federation of MalaysianManufacturers, Rotary Club and variousuniversities.

Dr. Mohd. Husni does not have any familyrelationship with any director and/or majorshareholder of LB Aluminium Berhad norhas he any conflict of interest with theCompany. He has had no conviction forany offences within the past ten (10) years.

Muhammad NagibGopal Bin Abdullah

Muhammad Nagib Gopal Bin Abdullah,aged 52, a Malaysian, is an IndependentNon-Executive Director of LB AluminiumBerhad and was appointed to the Board on9 July 2008. He is presently a generalpartner and co-founding member at EthosCapital Sdn Bhd, a private equity fund thatinvests in ASEAN businesses. From 2001 to2006, he was a senior vice-president atMalaysian Venture Capital ManagementBhd. He started his career in 1976 and hasbeen attached with various companiesincluding Ericsson Business Consulting SdnBhd, TeamWorkz Technologies Sdn Bhd,MCSB Systems Bhd, amongst others. EncikNagib holds a MBA from the University ofNottingham.

He is a member of the Audit Committee.

Encik Nagib does not have any familyrelationship with any director and/or majorshareholder of LB Aluminium Berhad norhas he any conflict of interest with theCompany. He has had no conviction forany offences within the past ten (10) years.

Neoh Lay Keong

Neoh Lay Keong, aged 50, a Malaysian, isan Independent Non-Executive Director ofthe Company and was appointed to theBoard on 25 August 1997. He holds a BECDiploma in Business Studies, St. JohnsCollege, England and a BA (Hons) inEconomics from the University ofManchester, England. Mr. Neoh was withRHB Bank Berhad from 1982 to 1990 andis a Dealers’ Representative with TASecurities Berhad since 1990.

He is the Chairman of the AuditCommittee, the Nomination Committeeand Remuneration Committee.

Mr. Neoh does not have any familyrelationship with any director and/or majorshareholder of LB Aluminium Berhad norhas he any conflict of interest with theCompany. He has had no conviction forany offences in the past ten (10) years.

Dr. Mohd. HusniBin Ahmad

Dr. Mohd. Husni Bin Ahmad, aged 45,a Malaysian, is an Independent Non-Executive Director of the Company andwas appointed to the Board on 31 July2006. He is presently an EarNoseThroatConsultant/Head & Neck Surgeon at aprivate hospital in Kuala Lumpur. Dr. Mohd.Husni obtained his Bachelor of Medicine &Bachelor of Surgery as well as a Master ofOtorhinolaryngology from the University ofMalaya. Upon his graduation, he wasattached with University Hospital from1990 to 1998 initially as a medical officer,lecturer and specialist before leaving forprivate practice.

He is a member of the Audit Committee,Nomination Committee and RemunerationCommittee.


financial highlights

04 05 06 07 08

REVENUE(RM’000)

202,37

0

211,97

6

254,79

9 318,87

2

354,46

9

04 05 06 07 08

PROFIT BEFORE TAXATION(RM’000)

15,454

20,211

18,151

15,701

21,239

04 05 06 07 08

PROFIT AFTER TAXATION(RM’000)

13,770 15,553

14,789

13,663

20,273

04 05 06 07 08

TOTAL SHAREHOLDERS’ EQUITY(RM’000)

135,80

0

150,01

5

160,44

8

169,73

4

185,89

3

Group Group Group Group GroupYear 2004 2005 2006 2007 2008

RM’000 RM’000 RM’000 RM’000 RM’000

Revenue 202,370 211,976 254,799 318,872 354,469

Profit Before Taxation 15,454 20,211 ~ 18,151 15,701 21,239

Profit After Taxation 13,770 15,553 14,789 13,663 20,273

Dividend 3,541 4,348 4,348 4,348 * 4,348

Paid-Up Capital 70,619 124,237 124,237 124,237 124,237

Retained Profit 61,249 20,016 30,457 39,772 55,697

Total Shareholders’ Equity 135,800 150,015 160,448 169,734 185,893

Total Assets 229,408 255,634 290,588 301,902 314,399

Denote: ~ Restate due to FRS requirement

* proposed dividend subject to the approval of shareholders at the forthcoming annual general meeting


statement on corporate governance

The Board of Directors of LB Aluminium Berhad remains committed to the best practicesand principles of good corporate governance as set out in the Malaysian Code onCorporate Governance (the “Code”) as well as with the Listing Requirements of theBursa Malaysia Securities Berhad (“Bursa Malaysia”). The Board recognises that goodcorporate governance is fundamental to the Board in discharging its fiduciaryresponsibilities and enhances high standards of business integrity, business prosperityand corporate accountability with the ultimate objective of realising shareholders’ value.

The Board is pleased to disclose below the Group’s application ofthe principles and corporate governance practices as set out inthe Code throughout the financial year.

THE BOARD OF DIRECTORS

The Board’s main responsibility is to lead and manage the Groupin an effective manner including developing strategic directionsand objectives in line with its vision and missions, implementplans and supervise the conduct of the Group’s business as awhole. The Board’s role is to provide leadership of the Groupwithin a framework of prudent and effective controls whilstensuring risks are consistently assessed and controlled.

The Board conducts ongoing review and evaluation of theGroup’s strategic plans to ensure the Group’s focus is in line withthe constantly evolving market conditions as well as identifyingnew businesses and opportunities. The Board also ensures thatan adequate system of internal controls is in place and adoptsappropriate measures to mitigate any foreseeable and/orunexpected risks.

Composition of the Board

The Board currently consists of eight (8) Directors; three (3) ofwhom are Independent Non-Executive Directors. The Boardcomprises of an appropriate balance with sufficiently diverseexperience required for the effective stewardship of the Group.The balance of Executive Directors and Non-Executive Directors(including Independent Non-Executive Directors) is such thatdecision made are fully discussed and examined taking intoaccount the long term interest of shareholders, employees,customers and the many communities in which the Groupconducts its business. The division of responsibilities betweenthe Executive Directors and the three (3) Independent Non-Executive Directors on the Board ensure independence indecision making at Board level.

The roles of the Executive Chairman and Chief Executive Officerof the Company are distinct and separate with individualresponsibilities. Each of them has clearly defined duties andauthority thus ensuring balance of power and greater capacityfor independent decision-making.

Where a potential conflict of interest may arise, it is mandatorypractice for the Director concerned to declare his or her interestand abstain from the decision making process.

No senior Independent Non-Executive Director has beenappointed to whom any concerns pertaining to the Group maybe conveyed as recommended by the Code. Instead, the Boardwill shoulder this responsibility collectively.

Directors’ Training

All Directors have attended and successfully completed theMandatory Accreditation Programme conducted by the ResearchInstitute of Investment Analysts Malaysia. The Directors willcontinue to participate in relevant training programmes to keepabreast with the latest developments in the security industry,particularly in areas of corporate governance and regulatorychanges so that they would be able to discharge their duties asdirectors effectively. Mr. Yap Chee Woon and Mr. Leow ChongFatt have both attended the Blue Ocean Strategy Program heldon 2 May 2007.

Board Meetings

The Board meets every three (3) months in regular Board ofDirectors’ meetings during the year to approve the quarterlyresults and the audited financial statements on a pre-scheduledbasis. Additional meetings are convened when urgent andimportant decisions need to be taken between scheduledmeetings. During the financial year 2008, the Company heldfour (4) meetings of the Board of Directors.


Supply of Information to the Board

To enable the Board to carry out its duties, regular status reportand board papers, including quarterly and year-to-date financialperformance report are provided to the Board.

All Board members have access to the advice and services of theCompany Secretary and may seek independent professionaladvice should the need arise in the furtherance of their duties atthe Company’s expense. Various committees have been set upto assist the Board in discharging its duties, the details of whichare set out below.

Re-election of Directors

In accordance with the Company’s Articles of Association (the“Articles”), all Directors who are appointed by the Board aresubject to election by shareholders of the Company at the firstAnnual General Meeting after their appointment. The Articlesalso provides that one-third of the remaining Directors (includingthe Managing Director) will be required to offer themselves forre-election by rotation at least once every three (3) years atannual general meeting. Directors who are appointed by theBoard to fill a casual vacancy are subject to election byshareholders at the next annual general meeting following theirappointment.

For the forthcoming Annual General Meeting, Ms. Leow SokHoon and Mr. Yap Chee Woon will retire by rotation, and beingeligible, offer themselves for re-election. Encik MuhammadNagib Gopal bin Abdullah will retire pursuant to Article 81 ofthe Company’s Articles of Association, and being eligible, offershimself for re-election.

A brief description on the profile of each Director and theirrespective attendance in Board Meetings are presented in theannual report.

Number of Directorships in other Companies

Directors of the Company do not hold more than ten (10)directorships in public listed companies and not more thanfifteen (15) in non-public listed companies, as required by theListing Requirements.

The listing of directorships held by directors is disclosed by therespective directors to the Board to ensure compliance to theabove Listing Requirements.

THE BOARD COMMITTEES

The Board delegates certain authorities to Board Committeesthat operate under clearly defined written terms of referenceand operating procedures duly approved by the Board. Thevarious Committees report the outcome of their meetingsto the Board, which are then incorporated in the Board’sminutes. Details of the membership, objectives, duties andresponsibilities, authorities and meetings are set out below:

Nomination Committee

The Nomination Committee comprises of the followingmembers:-

Neoh Lay Keong Chairman, IndependentNon-Executive Director

Dr. Mohd. Husni Bin Ahmad IndependentNon-Executive Director

Datuk Leow Chong Howa Executive Chairman

• The members of the Nomination Committee shall beappointed by the Board from amongst their number,consisting wholly or mainly independent non-executivedirectors and shall consist of not less than 3 members.

• The members of the Committee shall elect the Chairmanfrom amongst their member who shall be an IndependentNon-Executive Director.

• If a member of the Committee ceases to be a member withthe result that the number of members is reduced belowthree (3), the Board shall within three (3) months of thatevent, appoint such number of new members as may berequired to make up the minimum number of three (3)members.

• The Company Secretary shall be the Secretary of theCommittee.

The terms of reference for the Committee are:-

• To nominate and recommend to the Board, candidates tobe appointed as Director of the Company.

• To consider in making its recommendations, candidates fordirectorships proposed by the Managing Director or by anyother senior executive or any director or shareholder.

• To recommend to the Board, directors to fill the seats onBoard committees.

• To assist the Board in its annual review of its required mixof skills and experience and other qualities, including corecompetencies which non-executive directors should bringto the Board and to assess the effectiveness of the Board asa whole, the committees of the Board and the individualdirector on an annual basis.


Meetings are to be held as and when necessary. The quorumfor each meeting shall be two (2). During the financial year ended30 April 2008, one (1) meeting was held which all members ofthe Nomination Committee attended. The Committee will decideits own procedures and other administrative arrangements.Minutes of each meeting shall be kept by the Secretary asevidence that the Committee has discharged its functions.

Remuneration Committee

The Remuneration Committee comprises of the followingmembers:-

Neoh Lay Keong Chairman, IndependentNon-Executive Director

Dr. Mohd. Husni Bin Ahmad IndependentNon-Executive Director

Yap Chee Woon Non-Executive Director

• The members of Remuneration Committee shall beappointed by the Board from amongst their number,consisting wholly or mainly independent non-executivedirectors and shall consist of not less than 3 members.

• The members of the Committee shall elect the Chairmanamongst their members who shall be an Independent Non-Executive Director.

• If a member of the Committee ceases to be a member withthe result that the number of members is reduced belowthree (3), the Board shall within three (3) months of thatevent, appoint such number of new members as may berequired to make up the minimum number of three (3)members.

• The Company Secretary shall be the Secretary of theCommittee.

• Directors do not participate in decisions on their ownremuneration packages.

The Remuneration Committee is responsible for recommendingthe remuneration framework for Directors’ as well as theremuneration packages of executive Directors to the Board.None of the executive Directors participate in any way indetermining their individual remuneration.

The Board as a whole determines the remuneration of non-executive Directors with individual Directors abstaining fromdecisions in respect of their individual remuneration.

The policy practiced on Directors’ remuneration by theRemuneration Committee is to provide the remunerationpackages necessary to attract, retain and motivate Directors ofthe quality required to manage the business of the Companyand to align the interest of the Directors with those of theshareholders.

Information prepared by independent consultants and surveydata on the remuneration practices of comparable companiesare taken into consideration in determining the remunerationpackages, where necessary.

Meetings are held as and when necessary. The quorum for eachmeeting shall be two (2). The Managing Director and/orExecutive Directors shall attend and make presentations atmeetings, whenever business is not related to ExecutiveDirectors’ remuneration. The Committee will decide its ownprocedures and other administrative arrangements.

Minutes of each meeting shall be kept by the Secretary asevidence that the Committee has discharged its functions.

The Remuneration Committee held one (1) meeting, which wasattended by all members, during the financial year to review andrecommend to the Board on the remuneration of the Directors.

Audit Committee

The Audit Committee currently comprises three (3) IndependentNon-Executive Directors. The Committee meets not less thanfour (4) times a year and is governed by clearly defined terms ofreference. In the financial year ended 30 April 2008, theCommittee met on four (4) occasions.

The composition of the Committee, terms of reference,attendance record and its activities are set out in the annualreport.

Recommendations of the Committee are submitted to the Boardfor approval.

DIRECTORS’ REMUNERATION

The details of the remuneration of Directors for the financial yearended 30 April 2008 are as follows:-

Aggregate remuneration of Directors categorised intoappropriate components:-

Executive Non-ExecutiveDirectors DirectorsRM’000 RM’000

Salaries 964 485

Bonus 221 105

Incentive 7 5

Benefits In-Kind 66 22

Fees 36 90

Total 1294 707


The number of Directors whose total remuneration fall withinthe following bands for the financial year ended 30 April 2008are as follows:-

No. of DirectorsRange of remuneration

Executive Non-Executive

Below RM50,000 – 4

RM250,001 to RM300,000 – 1

RM300,001 to RM350,000 – –

RM350,001 to RM400,000 – 1

RM450,001 to RM500,000 1 –

RM800,001 to RM850,000 1 –

RELATIONSHIP WITH THE AUDITORS

The role of the Audit Committee in relation to the externalauditors is included in the Audit Committee’s terms of referenceas detailed below.

FINANCIAL REPORTING

The Board is responsible for preparing the annual auditedfinancial statements to shareholders and has taken appropriatesteps to present a balanced and understandable assessment ofthe Group’s financial position and prospects. The ExecutiveChairman’s statement and Chief Operating Officer’s operationsreview provide further information on the Group’s activities,business performance and prospects. The announcements ofthe quarterly and annual results are made to the public withinthe stipulated time frame after the Audit Committee hasreviewed them and approved by the Board.

STATEMENT ON DIRECTORS’ RESPONSIBILITY

The Directors are required, pursuant to Section 169 of theCompanies Act, 1965 (the “Act”), to draw up financialstatements for each financial year that gives a true and fair viewof the state of affairs of the Company and the Group as at theend of the accounting period and of their profit and loss andcashflow for the period then ended. In addition, the Directorshave the general responsibility for taking such steps as they arereasonably open to them to safeguard the assets of the Group

and to prevent fraud and other irregularities. In preparing thefinancial statements for the year ended 30 April 2008, theDirectors have:-

i) adopted the appropriate accounting policies, which areconsistently applied;

ii) made reasonable and prudent judgments and estimates;and

iii) ensure that the applicable approved Financial ReportingStandards in Malaysia and the provisions of the Act arecomplied with.

The Statement of Directors pursuant to the Act is set out in theannual report.

INTERNAL CONTROL

The Statement on Internal Control furnished in the annual reportprovides an overview of the state of internal controls within theGroup.

SHAREHOLDERS AND INVESTOR RELATIONS

The Company encourages its shareholders to attend the AnnualGeneral Meeting (“AGM”) usually held in October each year.The Annual Report and notice of the AGM are sent to allshareholders in accordance with the provisions of the ListingRequirements. The notice of AGM is also published in a nationalnewspaper. The notice would include explanatory statementsfor proposed resolutions to facilitate understanding andevaluation of issues involving the shareholders. The AGM servesas a useful platform for shareholders to meet and communicatewith the Board and encourages shareholders to participate inany discussion. The Company’s external auditors and companysecretary are also present to clarify and explain any issues.Normally after the AGM, the Executive Chairman and other keysenior management would hold a press conference.Shareholders are also informed and invited to attend anyExtraordinary General Meetings through circulars and notice ofmeeting.

The Company also has dialogues with institutional investors,fund managers and analysts to foster understanding about theGroup’s activities.

In addition, the Group maintains a website, www.lbalum.com,which provides shareholders and the public in general access toinformation about the Group.

Statement made in accordance with a resolution of the Board ofDirectors dated 29 September 2008.


1. DEBT AND EQUITY SECURITIES

The Company has not issued any debt or equity securitiesduring the financial year under review. No warrant wasexercised during the financial year under review.

2. SHARE BUY-BACK

The Company had at the previous Annual General Meeting(“AGM”) of the Company held on 30 October 2007obtained the approval of the shareholders for a renewal ofauthority for the share buy-back and that such authorityshall be in force until the forthcoming AGM. However, as at30 April 2008, the Company had not purchased any of itsown shares and hence there were no shares retained astreasury shares by the Company.

3. IMPOSITION OF SANCTIONS AND/ORPENALTIES

There were no sanction and/or penalties imposed on theCompany and its subsidiaries, Directors or management by theSecurities Commission, the Bursa Malaysia Securities Berhad orSuruhanjaya Syarikat Malaysia during the financial year.

4. NON-AUDIT FEES

The amount of non-audit fees paid and payable to theexternal auditors, BDO Binder and its affiliated companiesfor the year ended 30 April 2008 amounted to RM32,000.

5. VARIATION IN RESULTS

There was no material variation between the audited resultsfor the financial year ended 30 April 2008 and theunaudited results previously released for the quarter ended30 April 2008.

6. PROFIT GUARANTEES

The Group and Company did not give or receive any profitguarantees during the financial year.

7. MATERIAL CONTRACTS

No material contracts (not being contracts entered into inthe ordinary course of business) have been entered into bythe Company and/or its subsidiaries which involvedDirectors’ and/or substantial shareholders’ interests, eitherstill subsisting at the end of the financial year ended 30 April2008 or, if not then subsisting, entered into since the endof the previous financial year.

8. PROFIT ESTIMATION, FORECAST ORPROJECTION

There were no profit estimation, forecast or projection madeor released by the Company during the financial year underreview.

9. REVALUATION POLICY ON LANDEDPROPERTIES

The revaluation policy on landed properties are set out in thenotes to the financial statements.

10. GLOBAL DEPOSITORY RECEIPTS(“GDR”)/AMERICAN DEPOSITORYRECEIPTS (“ADR”)

The Company had not sponsored any GDR or ADRprogrammes during the financial year ended 30 April 2008.

11. STATUS ON UTILISATION OF PROCEEDSRAISED FROM ANY CORPORATEPROPOSAL

This is not applicable for the financial year ended 30 April2008.

12. RECURRENT RELATED PARTYTRANSACTIONS OF A REVENUE NATURE

The related party transactions are set out in the notes to thefinancial statements which the transactions were carried outon terms and conditions not materially different from thoseobtainable from transactions with unrelated parties.

additional compliance informationAS AT 30 APRIL 2008


statement on internal control

The Board of Directors is pleased to provide the following statement which outlines

the key elements of the internal control systems within the Group for the year ended

30 April 2008.

RESPONSIBILITY

The Board recognises the importance of a sound system ofinternal control and risk management framework to goodcorporate governance. The Board acknowledges its overallresponsibility of ensuring the adequacy and effectiveness of theinternal control system. The internal control system is designedto manage rather than eliminate the risk of failure to achievebusiness objective and it should be noted that any system canonly provide reasonable and not absolute assurance againstmaterial misstatement, fraud or loss. The system of internalcontrol incorporates inter alia, risk management, financial,operational and compliance controls as well as the governanceprocess.

RISK MANAGEMENT POLICY

The Board of Directors confirms that there is continuous effort toenhance the overall risk management process of identifying,evaluating and managing the significant risk by pursuing variousinitiatives and to enhance the tools and processes for effectivemanagement of risks to a level acceptable to the Board.

The Group has drawn up a Risk Management Policy to identifykey risks, the likelihood of those risks occurring as well as anystrategy to control or manage those risks affecting the business.Ongoing overall risk management process also includes budgetarycontrols and regular meetings among senior management toassess:-

• Performances of branches and other operating subsidiaries;• Impact of changes in competition and operating

environment; and• Risks and opportunities in the business and the ensuing

action plans.

The Risk Management Policy shall be to safeguard the interest,and meet the expectations, of its shareholders, employees,customers and the many communities in which the Groupconducts its business. This involves:-

• Enhancing strategic competitiveness and operationalefficiency that increases long term shareholders’ value;

• Minimising unexpected impact to earning and returns toshareholders;

• Safeguarding valuable assets and resources; and meetingexisting regulatory requirements on risk management.

MONITORING AND REVIEW OF THEEFFECTIVENESS OF THE SYSTEM OFINTERNAL CONTROLS

The Board of Directors is committed to maintain a strong controlstructure and environment for the proper conduct of the Group’sbusiness operation. The key elements are:

• The operating structure includes defined lines ofresponsibility, delegation of authorities, segregation of dutiesand the flow of information. The Board of Directors has alsodelegated certain authority to committees to advise theBoard. Limits of authorities are imposed for revenue andcapital expenditure for all operating units that serve tofacilitate the approval process and keep potential exposureunder control. Detailed justifications are required for capitaland major expenditures to ensure congruence with theGroup’s strategic objectives.

• In line with the management’s desire to enhance theperformance of the Group, the management hasimplemented a performance evaluation system based on KeyPerformance Indicators ("KPI") to assess and rewardexecutives and above of the Group. Top down target settingprocess with target cascading from the Executive Chairmanhas improved strategic focus and direction.


• Budgetary Control System has been implemented to theGroup to perform comprehensive annual budgeting andforcasting exercise including development of businessstrategies and establishment of key performance indicatorsagainst which business units can be evaluated. Shortfalls orvariances against budget are reviewed periodically byManagement so that the necessary remedial action can betaken. The Group and its operating companies carry out midyear financial performance review to gauge theirperformance targets prevailing business environment, as wellas the business outlook and challenges.

• Emphasis is placed on the quality and abilities of employeeswith continuing training and self-development being activelyencouraged through a variety of schemes and programmes.

• Implementation of Human Resources Management Systemis to assist users in managing its human resource optimallywith greater effectiveness and efficiency. It covers the entirepayroll function, ranging from capturing employees’information, calculation of salaries and pay, documentationand acting as an analytical tool for Human Resource ("HR")planning and reports submission to authorities.

• The effectiveness of the system of internal control is alsoreviewed through the MS ISO 9001:2000 certification. Thedemanding documentation requirements of the certificationfurther ensure a trail of accountability in the Company.

• Accounting Policies approved by the Board are applicable tothe whole Group in Malaysia, covering accounting policiesrelated to the Group. Revisions and additions are madewhen necessary.

• The Group has in place a Safety and Health Committee toreview the occupational safety and health procedures.

• Continuous documenting and updating Standard OperatingProcedures for the Group to form an integral part of thecontrol system to safeguard the Group’s assets againstmaterial loss and ensure complete and accurate financialinformation.

• The Audit Committee assists the Board of Directors inassessing the effectiveness of internal controls by reviewingreports from the internal and external auditors, if any.

INTERNAL AUDIT FUNCTION

The internal audit department reports directly to the AuditCommittee. Internal audit plans are reviewed and approved bythe Audit Committee and the plans include independent appraisalon the compliance, adequacy and effectiveness of the Group’sinternal controls and to assess and monitor the effectiveness andimplementation of the Groups’ risk management policies. Follow-up reviews on previous audit recommendations will be carried outto ensure compliance and appropriate actions have beenimplemented to address weaknesses highlighted.

INTERNAL CONTROL ISSUES

Management maintains an ongoing commitment to strengthenthe Groups’ control environment and processes. During the year,there was no material loss caused by breakdown in internalcontrol.

CONCLUSION

The Board is satisfied that during the year under review, there is aprocess to manage the Group’s system of internal controls tomitigate any significant risks faced by the Group so as tosafeguard shareholders’ investments and the Group’s assets.

This statement is made in accordance with a resolution ofthe Board of Directors dated 29 September 2008.


audit committee report

COMPOSITION

Neoh Lay Keong Chairman, Independent Non-Executive Director

Mark Wing Kong Chief Executive Officer(resigned as Audit Comittee member on 9.07.2008)

Dr. Mohd. Husni Bin Ahmad Independent Non-Executive Director

Muhammad Nagib Gopal Bin Abdullah Independent Non-Executive Director(appointed as Audit Comittee member on 9.07.08)

TERMS OF REFERENCE

Objective

The primary objective of the Audit Committee is to assist theBoard in fulfilling its fiduciary responsibilities relating to corporateaccounting, system of internal controls, management andfinancial reporting practices of the Group.

Composition Of The Audit Committee

All members of the Audit Committee must be non-executivedirectors; All members of the Audit Committee shall be financiallyliterate and at least one member of the Audit Committee:-

(i) must be a member of the Malaysian Institute ofAccountants; or

(ii) if he is not a member of the Malaysian Institute ofAccountants, he must have at least 3 years’ workingexperience and

(aa) he must passed the examinations specified in Part 1of the 1st Schedule of the Accountants Act, 1967; or

(bb) he must be a member of one of the association ofaccountants specified in Part II of the 1st Schedule ofthe Accountants Act, 1967; or

(iii) fulfils such other requirements as prescribed or approvedby the Exchange.

The Committee shall be appointed by the Board from amongstits number and shall consist of not less than three (3) members.The quorum for meeting of the Committee shall be two (2).

The Chairman of the Committee shall be appointed by themembers of the Audit Committee.

Duties & Responsibilities

1. To consider the appointment of the external auditors, theaudit fee and any questions of resignation or dismissal.

2. To discuss with the external auditors before the annual auditcommences, the nature and scope of the audit plan.

3. To review the quarterly and annual financial statements ofthe Company and Group focusing particularly on:-

(a) any changes in accounting policies and practices;

(b) significant adjustments arising from the audit;

(c) the going concern assumption;

(d) compliance with accounting standards and other legalrequirements.

4. To discuss problems and reservations arising from the finaland any interim audits; evaluation of the system of internalcontrols and any matter the external auditors may wish todiscuss, including assistance given by the employees of theGroup to the auditors; and to review the auditors’ auditreport, management letter and management’s response.

5. To consider any related party transactions and conflict ofinterest that may arise within the Group.

6. To review the adequacy of the scope, functions, competencand resources of the internal audit functions and that it hasthe necessary authority to carry out its work.

7. Such other functions as may be agreed by the AuditCommittee and the Board of Directors.

Authority

The Committee is authorised by the Board within its term ofreference and at the cost of the Group to investigate any matterand shall have the resources which are required to perform itsduties.

The Committee also has full and unrestricted access to anyinformation pertaining to the Group and has directcommunication channels with the external auditors and personcarrying out the internal audit function or activity.

The Committee is able to convene meetings with the externalauditors, the internal auditors or both, excluding the attendanceof other directors and employees of the Company wheneverdeemed necessary.

The Committee is authorised to obtain independent professionalor other advice and to secure the attendance of outsiders withrelevant experience and expertise if it considers this necessary.

It is the Committee’s discretion to meet with the external auditorsat least twice a year without the presence of the executivedirectors. If the Committee members are satisfied with thereporting practices as well as the level of independence shownby the external auditors or they are able to clarify matters directlywith the external auditors and do not feel the need to convene anadditional meeting, this meeting shall not be held.

Meetings & Minutes

Meetings shall be held not less than four times a year.Additionally, the Chairman shall convene a meeting of theCommittee if requested to do so by its member, the managementor the internal or external auditors to consider any matters withinthe scope and responsibilities of the Committee.

An Agenda shall be sent to all members of the Committee andany persons that may be required to attend. Minutes of eachmeeting shall be kept and distributed to each member of theCommittee and also the members of the Board of Directors. TheSecretary to the Audit Committee shall be the Company Secretary.

Attendance

During the financial year ended 30 April 2008, four (4) AuditCommittee’s meetings were held which were attended in full byall members of the Committee.

Summary of Activities

The activities conducted were in accordance with the terms ofreference of the Committee that included the following:

i) reviewed the draft quarterly and year-end results of theCompany and the Group before recommending to theBoard for its approval;

ii) reviewed the audited financial statements of the Companyand the Group prior to submission to the Board forconsideration and approval;

iii) reviewed the external auditors’ scope of work and audit planfor the year. The audit plan was presented byrepresentatives from the external auditors;

iv) met with the external auditors before finalisation of theaudited accounts for the year under reviewed; and

v) reviewed the internal auditors’ reports and the externalauditors’ report and management letter, if any.

All the requirements under the terms of reference were compliedwith and the Audit Committee did not see any matters in breachof the Bursa Malaysia’s Listing Requirements that warrantreporting to Bursa Malaysia.

Internal Audit Function

The internal control function is independent and has noinvolvement in the operations of the Group. It was set up to assistand report directly to the Audit Committee in providingassurances that the internal control system of the Group isadequate.

For the year under review, audits were performed to evaluate andidentify any weaknesses of the internal controls affecting theGroup, the adequacy of the existing system of controls and torecommend measures to management to improve and rectify anyweaknesses. The Management is responsible for ensuringcorrective actions on reported weaknesses are taken within therequired time frame.


executive chairman’s statement

FINANCIAL PERFORMANCE

Turnover for the financial year rose by 11.2% to RM354.5 million

on the back of increase volume of aluminium extrusions sold.

However, profit before taxation recorded a substantial increase of

35.0% to RM21.2 million as a result of the higher revenue,

improved margins and lower provision for doubtful debts despite

the loss suffered by our associate company. Profit after taxation

was also higher by 48.2% to RM20.3 million compared to

RM13.7 million for the previous year in line with the above as well

as the reduction in the corporate tax rate.

Net earnings per share for the financial year then ended were

8.16 sen compared to 5.50 sen for the previous year based on

the issued share capital of the Company of RM124,237,167

comprising of 248,474,334 ordinary shares of RM0.50 each.

As at 30 April 2008, shareholders’ funds stood at RM185.9

million whilst net tangible assets per share is RM0.75.

Dear Shareholders,

On behalf of the Board of Directors,it gives me great pleasure to present theAnnual Report and Financial Statementsof the Group and of the Company for thefinancial year ended 30 April 2008.

As at 30 April 2008, shareholders’ fundsstood at RM 185.9 million whilst nettangible assets per share is RM0.75.”

“


CORPORATE DEVELOPMENTS

The Group did not have any significant corporate developmentsto report as activities were concentrated on improving salesrevenue and margins as well as the delivery systems which I ampleased to add has culminated in the overall improvement in theGroup’s performances for the financial year then ended.

DIVIDENDS

The Board of Directors is pleased to recommend a first and finaltax exempt dividend of 1.75 sen per share based on the issuedand paid-up share capital of 248,474,334 ordinary shares ofRM0.50 each amounting to RM4,348,301 (2007: RM4,348,295)in respect of the financial year ended 30 April 2008 subject to theapproval of the shareholders at the forthcoming annual generalmeeting.

CORPORATE SOCIAL RESPONSIBILITY

The Board recognises that the Company as a public listed entitymust meet with the social needs of the society and the manycommunities in which we operate. The Company and itssubsidiaries seek to understand our social and environmentalperformances whereby CSR issues are identified, and thatappropriate and timely actions are taken to address these issues.

The Group has contributed in aid of schools in Malaysia. Duringthe year, we have contributed a total of RM3,100 to variousschools in Malaysia. We have also donated RM5,000 to the PusatKebajikan Good Shepherd and RM6,000 to various charities andfor the organisation of other charitable events.

Considerations for the environment are an important issue in allaspects of the Group’s operations. Aluminium which is the majorraw material input in our products is environmentally friendly andcan be endlessly recycled. By recycling aluminium, we help saveenergy as well as raw materials which lessen the need for solidwaste disposal. We have also invested substantially in a watertreatment plant to ensure that all waste water is properly treatedbefore it is discharged.

CURRENT YEAR’S PROSPECTS

We expect the coming year to be challenging as growthmomentum in the developed economies are expected to slowfollowing the financial turbulence, high oil prices and inflationary

pressures. The emerging economies of which Malaysia is a partof is expected to be resilient although we would expect thegrowth to be slower than that of the previous year. In addition,the increase in petrol, diesel and gas prices as well as that ofelectricity will weigh heavily on consumer spending and privateinvestments leading to a more cautious outlook. Nonetheless, theMalaysian economy has proven its resilience in the past inovercoming such difficulties and has emerged much stronger witha diversified export market, a broader manufacturing base and asignificant commodities producer.

We are hopeful that despite the slower economic growth andhigher energy costs which will obviously have an impact will notbe too serious an impediment to the Group continue growthprospect going forward. We will continue to focus on our corecompetencies, improve the delivery systems and sustain themomentum of our current efforts. As ever, we will also be mindfulof our financial position, particularly cashflow to ensure that weare in a comfortable situation to face any eventualities.

Your Board is cautiously optimistic that the resilience of theMalaysian economy will have a positive impact on our prospectwhilst the export market continues to provide encouragement.Your Board, barring unforeseen circumstances, expects the Groupto remain profitable for the forthcoming year.

APPRECIATION

On behalf of the Board, I would like to record our sincereappreciation and gratitude to our former Chairman, Dato’ Mohd.Ghazali Bin Mohd. Khalid who resigned from the Board on28 March 2008. We bid a warm welcome to our new director,Encik Muhammad Nagib Gopal Bin Abdullah who bring with himmany years of experience in senior management.

On behalf of the Board, my sincere appreciation goes out to themanagement team and all our employees for the hard work putin during the financial year. My thanks are also extended to ourvalued customers, suppliers, bankers and to others whichsupports are invaluable to the continued success of the Companyand its subsidiaries.

Datuk Leow Chong HowaExecutive Chairman


chief operating officer’s operations review

The Group’s continuous efforts anddetermination in achieving its vision of“customer focus”, “teamwork”, “operationexcellence” and “stakeholders’ interest”has brought about consistent rewardsyear after year.

The Company's profit before tax increasedby 47% to RM19.4 million compared toRM13.2 million for the year 2007. ”

“


The Group reported an increase turnover of 11.2% to RM354.5million compared to RM318.9 million for the year 2007. Profitbefore tax also increased by 35.0% from RM15.7 million in theprevious year to RM21.2 million for the year under review. Profitsare better this year due to the increase in revenue and bettermargins with lower provision of doubtful debts.

We still maintained our position as the market leader in thedomestic market with a strategic sales network to promote betterservice to customers and are able to provide the full range ofextrusion products of various design complexities and dimensions.Our market sectors are also now wider as we are able to accepthigher requirement for precision products.

A new showroom was built in our Head Office to promote and toshowcase a range of exclusive and performance door/windowsystems together with the various aesthetics finishings providedby the Group.

REVIEW OF OPERATIONS

The Company's profit before tax increased by 47% to RM19.4million compared to RM13.2 million for the year 2007. The higherprofit was due mainly to better margins, lower marketing anddistribution costs plus lower provision for doubtful debts. Exportsales continued to increase from 21% in 2007 to 25% for thecurrent year.

All our subsidiary companies have performed better compared tothe previous year. Albe Metal Sdn Bhd had a revenue increase of11% and profit before tax increase of 1% compared to theprevious year. Albe Marketing Sdn Bhd reported decrease of 3%in revenue and profit before tax growth of 166% compared tothe previous year due to lower operational costs and benefitsfrom the implementation of an improved inventory system.Revenues for LB Aluminium (Singapore) Pte Ltd rose by 34% andprofit before tax increased by 112% compared to the preceding

year contributed mainly by the buoyant building industry inSingapore. Calltime Technology Sdn Bhd, our 40% ownedassociate company, however, reported losses of RM1.8 million asa result of lower revenue achieved. Two other subsidiaries, AlbeGroup (Thailand) Co. Ltd. and LB Aluminium (Thailand) Co. Ltd.have been placed under member’s voluntary winding up with thedissolution date registered on 29 February 2008.

The Group has continued to upgrade its facilities to provide betterand faster services to achieve greater customer satisfaction.During the year, our new power coating line became fullyoperational whilst upgrading of the powder coating line 1 wascarried out to enhance quality and efficiency. Two new quenchingboxes were added to improve the quality of the extrudedproducts. A new factory building was added to house the rollforming operations thus allowing us to expand the die shop tomeet with additional customer demands. We also completed theconstruction of a new test rig for testing quality specification ofours as well as that of customer’s products. We have alsoobtained the ABS Certification which allows us to supply moreproducts to the marine industry. Mill certificates that are requiredby all our customers will be automated for higher efficiency.

This year we have participated in two exhibitions, one in India inFebruary – March 2008 and another at Archidex 2008 in Malaysiain July 2008. We will be participating in an exhibition in Essen,(Germany) in September 2008. We have been receivingencouraging response from customers from the two exhibitionsthat we participated in.

OUTLOOK

The implementation of the 9th Malaysia Plan gives us optimismfor growth in the domestic aluminium extrusion industry. We willalso make our presence felt in East Malaysia with our newmanufacturing operation in Sarawak scheduled to be ready bythe middle of 2009 and would expect to get better market sharein the Sabah/Sarawak region.


While the US economy is expected to slow down, the exportmarket will continue to be our focal point. We are buildingin-roads to markets in Europe and Asia. The coming exhibition inEssen, (Germany) will enable us to build brand awareness andfoster closer rapport with our customers. We would expect ourexport sales to rise further in the coming year.

The Group will continuously upgrade its facilities to remain notonly competitive but to improve on productivity and efficiency.Greater emphasis will be placed on customer’s satisfaction, timelydelivery and faster lead time as well as improvement in dietechnology. Total efficiency has to be improved and this can onlybe achieved with our continuous efforts in improving trainingand career development for our employees. Trainingmodules are currently being set up to address operation demandsand it will be enhanced to provide faster and reliable informationfor decision making.

Cost impact projects were also implemented for this year tomitigate the impact of the fuel and energy increase that wasrecently announced by the government.

The Group will also continue with the implementation ofcorporate social responsibility program with one of the initiativesbeing a donation of RM10,000.00 to the earthquake victims inSichuan, China. Other initiatives for this year will be implementedduring the Hari Raya season including sponsoring school uniformand school bags to deserving children of employees.

In view of the development in the Asian and other regions, yourBoard is cautiously confident of the prospects of the Group forthe foreseeable future and will continue to improve on itsperformance.

ACKNOWLEDGEMENT

On behalf of the management team and employees, I would liketo thank our shareholders, customers, suppliers, bankers, businessassociates for their support, trust and confidence in our Group.I would like to place on record my appreciation to my colleagueson the Board and all employees who have contributedsignificantly to the success of the Group.

Datuk Jeffery Ong Cheng LockChief Operating Officer


branch network

Branches

Distributors/Dealers

BRANCHES IN MALAYSIA

Head Office

Lot 11, Jalan Perusahaan 1Kawasan Perusahaan Beranang43700 Beranang, SemenyihSelangor Darul EhsanTel : 03-87238822 (General)

03-87232288 (Sales)Fax : 03-87233191 (General)

03-87237272 (Sales)03-87236868 (Sales)03-87271218 (Export)

E-mail : [email protected] : www.lbalum.com

Johor Bahru

14 & 18, Lot PLO 206Jalan Angkasa Mas 5Kawasan Perindustrian Tebrau II81100 Johor BahruJohor Darul TakzimTel : 07-3550546Fax : 07-3550549

Penang

Lot 241 (PT 1075), Tingkat Perusahaan 6Kawasan Perusahaan Perai13600 Perai, Pulau PinangTel : 04-3976998

04-3976995Fax : 04-3976997

Kuantan

No. 4, Jalan IM 3/6Kawasan Perindustrian Bandar InderaMahkota25200 KuantanPahang Darul MakmurTel : 09-5736666Fax : 09-5733322

Kuching

Lot 854, Section 66, Jalan KeluliPending Industrial Estate93450 Kuching, SarawakTel : 082-482433

082-482378082-482379

Fax : 082-482389

Kota Kinabalu

Lot 7, Lorong Mangga-3 SEDCOIndustrial Estate5 ½ Miles (Off Jalan Kolombong)88450 Kota Kinabalu, SabahTel : 088-436421

088-436422Fax : 088-436423

SUBSIDIARIES IN MALAYSIA

ALBE MARKETING SDN. BHD.(446723-K)

53 & 55, Jalan PBS 14/10Taman Perindustrian Bukit Serdang43300 Seri KembanganSelangor Darul EhsanTel : 03-89454919

03-8945492003-89454921

Fax : 03-89454916

ALBE METAL SDN. BHD. (562008-A)

Godown No. 23, Lot 7574Jalan 1/113A, 4½ MilesJalan Kelang Lama58000 Kuala LumpurTel : 03-79813988Fax : 03-79818293

LB ALUMINIUM (SARAWAK)SDN BHD (811266-T)

c/o Lot 11, Jalan Perusahaan 1Kawasan Perusahaan Beranang43700 Beranang, SemenyihSelangor Darul Ehsan

SUBSIDIARY IN OVERSEAS

LB ALUMINIUM (SINGAPORE)PTE. LTD. (200009299G)

No.11, Kaki Bukit Road 1#03-07 Eunos TechnolinkSingapore 415939Tel : 02-63459131

02-67455693Fax : 02-67455627

DISTRIBUTORS/DEALERS IN MALAYSIA

• Kangar• Alor Setar• Butterworth• Ipoh• Kuala Lumpur• Shah Alam• Seremban• Melaka• Johor Bahru• Kuantan• Kuala Terengganu• Kota Bharu• Kota Kinabalu• Kuching

OVERSEAS MARKETS

• Australia• Brunei• Canada• Hong Kong• Mauritius• New Zealand• Pakistan• Philippines• Singapore• Sri Lanka• Thailand• United Kingdom• USA• Maldives• South Africa• Germany• Greece• India• Japan• Papua New Guinea• France• Vietnam• Netherland• China• Mexico• Belgium• St. Lucia• Indonesia

27 Directors’ Report

32 Statement By Directors

32 Statutory Declaration

33 Independent Auditors’ Report

35 Balance Sheets

37 Income Statements

38 Statements of Changes in Equity

40 Cash Flow Statements

42 Notes to the Financial Statements

financial statements


directors’ report

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company forthe financial year ended 30 April 2008.

PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of manufacturing, marketing and trading of aluminium extrusion and ceilingmetal tee products. The principal activities of the subsidiaries are disclosed in Note 10 to the financial statements. There havebeen no significant changes in the nature of these activities during the financial year except for the newly acquired subsidiary andsubsidiaries which are placed under liquidation as disclosed in Note 10 to the financial statements.

RESULTS

Group CompanyRM RM

Profit for the financial year 20,273,397 19,100,689

DIVIDENDS

Dividend paid since the end of the previous financial year were as follows:

RMIn respect of the financial year ended 30 April 2007

A first and final tax exempt dividend of 1.75 sen per share, paid on 9 November 2007 4,348,295

The Directors proposed a first and final tax exempt dividend of 1.75 sen per share amounting to RM4,348,301 based on theissued and paid up share capital of RM124,237,167 comprising 248,474,334 shares of RM0.50 each in respect of the financialyear ended 30 April 2008 which is subject to the approval of members at the forthcoming Annual General Meeting.

RESERVES AND PROVISIONS

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

ISSUE OF SHARES AND DEBENTURES

The Company has not issued any new shares or debentures during the financial year.

OPTION GRANTED OVER UNISSUED SHARES

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


WARRANTS 2000/2010

The Company, under a Trust Deed dated 25 May 2000 issued RM50,000,000 nominal amount of 3.5% Redeemable UnsecuredBonds 2000/2005 (“Bonds”) together with 32,650,333 detachable warrants at 100% of the nominal amount of the Bonds(“Warrants”) to a primary subscriber structured on a “bought deal” basis.

The Warrants were immediately detached from the Bonds and offered by the primary subscriber to shareholders of the Companyon a renounceable basis of one (1) warrant for every two (2) existing ordinary shares held at a price of 33 sen per warrant.

The principal characteristics of the Warrants are as follows:

(a) The Warrants are constituted by a Deed Poll executed by the Company on 25 May 2000 and a Supplemental Deed Poll on31 October 2003, a Second Supplemental Deed Poll on 28 July 2004 and a Third Supplemental Deed Poll on 30 March2007.

(b) The Warrants may be exercised at any time on or before the maturity date falling five (5) years from the date of issue ofthe Warrants (or such period as may be extended in accordance with the provisions of the Deed Poll) on 7 June 2000(“Exercise Period”). On 31 October 2003, the Exercise Period of the Warrants was extended by five years from 8 June 2005to expire on 7 June 2010. Warrants not exercised during the Exercise Period will thereafter lapse and cease to be valid.

Pursuant to the bonus issue of three (3) new ordinary shares of RM1.00 each for every four (4) existing ordinary shares ofRM1.00 each held (“Bonus Issue”) which was completed in September 2004, additional new Warrants were issued towarrantholders of the Company in accordance with the provisions of the aforesaid Deed Poll and Supplemental Deed Polls.

Pursuant to the subdivision of one (1) ordinary share of RM1.00 each into two (2) new ordinary shares of RM0.50 eachwhich was completed on 30 April 2007, additional new Warrants were issued to warrantholders of the Company inaccordance with the provisions of the aforesaid Deed Poll and Supplemental Deed Polls.

The number of Warrants not exercised at the end of the financial year amounted to 114,276,164.

(c) Each Warrant entitles the registered holder during the Exercise Period to subscribe for one (1) new ordinary share in thecapital of the Company of par value RM1.00 at RM2.30 per ordinary share (“Exercise Price”) which is subject to adjustmentsunder the provisions set out in the Deed Poll.

On 2 September 2004, the exercise price of the Warrant of RM2.30 was adjusted to RM1.32 in accordance with theprovisions of the Deed Poll and Supplemental Deed Polls.

The exercise price of the Warrants of RM1.32 was further adjusted for the effect of the subdivision of one (1) ordinary shareof RM1.00 each into two (2) ordinary shares of RM0.50 each during the financial year 2007 to RM0.66 in accordance withthe provisions of the Deed Poll and Supplemental Deed Polls.

(d) The Warrants were issued in registered form and subsequently credited into the relevant CDS account(s) and separately listedon Bursa Malaysia Securities Berhad. The Warrants shall be transferable in the manner provided under the Securities Industry(Central Depositories) Act 1991 and Rules of Bursa Malaysia Depository Sdn. Bhd. (formerly known as Rules of MalaysianCentral Depository Sdn. Bhd.).

(e) The registered holder of the Warrant shall pay cash for the Exercise Price when subscribing for new ordinary shares in theCompany.

(f) The new ordinary shares of RM0.50 each to be issued upon exercise of the Warrants, upon allotment and issue, shall rankpari passu in all respects with the then existing issued ordinary shares of the Company, except that the new ordinary shareswill not be entitled to any dividends, rights, allotments or other distributions declared or otherwise distributed, for which therecord date is before the exercise date of the Warrants and any dividends declared in respect of the financial periodimmediately preceding the date of allotment and issue of the new ordinary shares.


DIRECTORS

The Directors who held office since the date of the last report are:

Datuk Leow Chong HowaMark Wing KongLeow Sok HoonLeow Chong FattYap Chee WoonNeoh Lay KeongDr. Mohd. Husni Bin AhmadMuhammad Nagib Gopal Bin Abdullah (Appointed on 9 July 2008)Dato’ Mohd. Ghazali Bin Mohd. Khalid (Resigned on 28 March 2008)

In accordance with Article 81 of the Company’s Articles of Association, Muhammad Nagib Gopal Bin Abdullah shall retire at theforthcoming Annual General Meeting and being eligible, offers himself for re-election.

Pursuant to Article 75 and Article 77 of the Company’s Articles of Association, Leow Sok Hoon and Yap Chee Woon retire byrotation at the forthcoming Annual General Meeting and being eligible, offer themselves for re-election.

DIRECTORS’ INTERESTS

The Directors holding office at the end of the financial year and their beneficial interests in the ordinary shares and warrants ofthe Company and its related corporations during the financial year ended 30 April 2008 as recorded in the Register of Directors’Shareholdings kept by the Company under Section 134 of the Companies Act, 1965 were as follows:

<----- Number of ordinary shares of RM0.50 each ----->Balance Balance

as at as atShares in the Company 1.5.2007 Bought Sold 30.4.2008

Datuk Leow Chong Howa 70,208,706 4,637,700 – 74,846,406Mark Wing Kong 3,643,500 – – 3,643,500Leow Sok Hoon 39,769,902 – (21,036,398) 18,733,504Leow Chong Fatt 3,268,000 – – 3,268,000Yap Chee Woon 924,300 – (80,000) 844,300

<-- Number of warrants over ordinary shares of RM0.50 each -->Balance Balance

as at as atWarrants in the Company 1.5.2007 Bought Sold 30.4.2008

Datuk Leow Chong Howa 38,784,718 – (5,500,000) 33,284,718Mark Wing Kong 771,750 – – 771,750Leow Sok Hoon 19,884,950 – – 19,884,950Leow Chong Fatt 403,888 – (403,800) 88Yap Chee Woon 1,000 – – 1,000

None of the other Directors in office at the end of the financial year held any interest in the ordinary shares and warrants of theCompany and its related corporations.

By virtue of Section 6A of the Companies Act, 1965, Datuk Leow Chong Howa and Ms. Leow Sok Hoon are deemed to haveinterests in the shares of all the subsidiaries of the Company to the extent that the Company has an interest.


DIRECTORS’ BENEFITS

Since the end of the previous financial year, none of the Directors have received or become entitled to receive any benefit (otherthan a benefit included in the aggregate amount of emoluments received or due and receivable by the Directors as shown in thefinancial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm ofwhich the Director is a member, or with a company in which the Director has a substantial financial interest other than the rentalof premises paid to a company in which a Director has an interest.

There were no arrangements during and at the end of the financial year, to which the Company is a party, which had the objectof enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Companyor any other body corporate.

OTHER STATUTORY INFORMATION REGARDING THE GROUP AND THE COMPANY

(I) AS AT THE END OF THE FINANCIAL YEAR

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

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making ofprovision for doubtful debts and satisfied themselves that there are no known bad debts and that adequateprovision had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise their book values in the ordinary course ofbusiness had been written down to their estimated realisable values.

(b) In the opinion of the Directors, the results of the operations of the Group and of the Company during the financialyear have not been substantially affected by any item, transaction or event of a material and unusual nature other thanthe effects arising from changes in estimates where the estimated useful lives of dies and moulds were revised asdisclosed in Note 6.1 to the financial statements.

(II) FROM THE END OF THE FINANCIAL YEAR TO THE DATE OF THIS REPORT

(c) The Directors are not aware of any circumstances:

(i) which would necessitate the writing off of bad debts or render the amount of the provision for doubtful debts inthe financial statements of the Group and of the Company inadequate to any material extent; or

(ii) which would render the values attributed to current assets in the financial statements of the Group and of theCompany misleading; and

(iii) which have arisen which would render adherence to the existing method of valuation of assets or liabilities of theGroup and of the Company misleading or inappropriate.

(d) In the opinion of the Directors:

(i) there has not arisen any item, transaction or event of a material and unusual nature likely to affect substantiallythe results of the operations of the Group and of the Company for the financial year in which this report ismade; and

(ii) no contingent or other liability has become enforceable, or is likely to become enforceable, within the period oftwelve months after the end of the financial year which will or may affect the ability of the Group or of theCompany to meet their obligations as and when they fall due.


OTHER STATUTORY INFORMATION REGARDING THE GROUP AND THE COMPANY (CONT’D)

(III) AS AT THE DATE OF THIS REPORT

(e) There are no charges on the assets of the Group and of the Company which have arisen since the end of the financialyear to secure the liabilities of any other person.

(f) There are no contingent liabilities of the Group and of the Company which have arisen since the end of the financialyear.

(g) The Directors are not aware of any circumstances not otherwise dealt with in the report or financial statements whichwould render any amount stated in the financial statements of the Group and of the Company misleading.

SIGNIFICANT EVENT DURING THE FINANCIAL YEAR

(i) On 7 April 2008, the Company has acquired two (2) ordinary shares of RM1.00 each in LB Aluminium (Sarawak) Sdn. Bhd.representing 100% equity interest for a cash consideration of RM2.00.

(ii) Two subsidiaries, Albe Group (Thailand) Co. Ltd., and LB Aluminium (Thailand) Co. Ltd. have been placed under members’voluntary winding-up of which dissolution date have been registered on 29 February 2008. The Group has ceased toconsolidate the results of these subsidiaries in the financial year.

The effect of the above events on the Group’s financial statements are disclosed in Note 10 to the financial statements.

AUDITORS

The auditors, BDO Binder have expressed their willingness to continue in office.

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

Datuk Leow Chong Howa Mark Wing KongExecutive Chairman Chief Executive Officer

Kuala Lumpur12 August 2008


In the opinion of the Directors, the financial statements set out on pages 35 to 86 have been drawn up in accordance withapplicable approved Financial Reporting Standards in Malaysia and the provisions of the Companies Act, 1965 so as to give a trueand fair view of the financial position of the Group and of the Company as of 30 April 2008 and of their financial performanceand cash flows of the Group and of the Company for the financial year then ended.

On behalf of the Board,

Datuk Leow Chong Howa Mark Wing KongExecutive Chairman Chief Executive Officer


statutory declaration

I, Mark Wing Kong, being the Director primarily responsible for the financial management of LB Aluminium Berhad, do solemnlyand sincerely declare that the financial statements set out on pages 35 to 86 are, to the best of my knowledge and belief,correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of theStatutory Declarations Act, 1960.

Subscribed and solemnly )declared by the abovenamed at )Kuala Lumpur this )12 August 2008 ) Mark Wing Kong

Before me:

S. Ideraju (W-451)Commissioner for Oaths

Kuala Lumpur

statement by directors


REPORT ON THE FINANCIAL STATEMENTS

We have audited the financial statements of LB Aluminium Berhad, which comprise the balance sheets as at 30 April 2008 of theGroup and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Groupand of the Company for the financial year then ended, and a summary of significant accounting policies and other explanatorynotes, as set out on pages 35 to 86.

Directors’ Responsibility for the Financial Statements

The Directors of the Company are responsible for the preparation and fair presentation of these financial statements inaccordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing,implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that arefree from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; andmaking accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to theCompany’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimatesmade by the Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and theCompanies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Companyas of 30 April 2008 and of their financial performance and cash flows of the Group and of the Company for the financial yearthen ended.

independent auditors’ reportto the members of LB Aluminium Berhad


REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and itssubsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

(b) We have considered the financial statements and the auditors’ reports of all the subsidiaries of which we have not acted asauditors, which we indicated in Note 10 to the financial statements.

(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financialstatements are in form and content appropriate and proper for the purposes of the preparation of the financial statementsof the Group and we have received satisfactory information and explanations required by us for those purposes.

(d) The audit reports on the financial statements of the subsidiaries did not contain any qualification or any adverse commentmade under Section 174(3) of the Act.

OTHER MATTERS

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act,1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

BDO Binder Datuk Tan Kim LeongAF: 0206 235/06/09 (J/PH)Chartered Accountants Partner


independent auditors’ reportto the members of LB Aluminium Berhad (cont’d)


Group Company2008 2007 2008 2007

Note RM RM RM RM

ASSETS

Non-current assets

Property, plant and equipment 7 146,094,327 147,417,933 141,517,962 142,798,484Prepaid lease payments for land 8 4,758,825 4,857,304 4,506,846 4,602,649Intangible assets 9 16,159 – – –Investments in subsidiaries 10 – – 1,325,896 1,325,894Investment in an associate 11 11,433,420 13,184,880 11,107,994 11,107,994Other investments 12 1,750,000 1,750,000 1,750,000 1,750,000

164,052,731 167,210,117 160,208,698 161,585,021

Current assets

Inventories 13 46,464,037 53,843,716 42,860,728 50,250,419Trade and other receivables 14 85,532,472 77,339,582 83,207,511 77,293,505Tax recoverable 86,572 409,958 59,600 380,458Short term deposits with licensedbanks and finance companies 12,899,265 2,000,000 12,899,265 2,000,000

Cash and bank balances 5,363,611 1,098,744 3,550,505 671,474

150,345,957 134,692,000 142,577,609 130,595,856

TOTAL ASSETS 314,398,688 301,902,117 302,786,307 292,180,877

balance sheetsas at 30 April 2008


Group Company2008 2007 2008 2007

Note RM RM RM RM

EQUITY AND LIABILITIES

Equity attributable to equityholders of the Company

Share capital 15 124,237,167 124,237,167 124,237,167 124,237,167Reserves 16 61,656,258 45,496,636 52,575,004 37,682,231

TOTAL EQUITY 185,893,425 169,733,803 176,812,171 161,919,398

LIABILITIES

Non-current liabilities

Bank borrowings (unsecured) 17 30,000,000 54,000,000 30,000,000 54,000,000Deferred tax liabilities 20 18,387,066 19,822,099 18,338,784 19,774,535

48,387,066 73,822,099 48,338,784 73,774,535

Current liabilities

Trade and other payables 21 36,480,130 28,994,801 35,389,544 28,030,907Bank borrowings (unsecured) 17 43,296,404 29,218,447 42,245,808 28,456,037Tax liabilities 341,663 132,967 – –

80,118,197 58,346,215 77,635,352 56,486,944

TOTAL LIABILITIES 128,505,263 132,168,314 125,974,136 130,261,479

TOTAL EQUITY AND LIABILITIES 314,398,688 301,902,117 302,786,307 292,180,877

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

balance sheetsas at 30 April 2008 (cont’d)


Group Company2008 2007 2008 2007

Note RM RM RM RM

Revenue 22 354,469,107 318,872,209 342,462,485 307,598,390

Cost of sales 23 (301,043,146) (273,738,500) (295,362,877) (267,137,735)

Gross profit 53,425,961 45,133,709 47,099,608 40,460,655

Other operating income 711,437 597,006 623,002 534,709

Deficit arising from deconsolidationof subsidiaries 10(a) (30,796) – – –

Marketing and distribution costs (11,779,814) (13,609,355) (10,442,247) (12,661,607)

Administration expenses (12,539,312) (11,283,446) (11,274,357) (9,893,642)

Other operating expenses (3,185,527) (1,316,318) (3,017,933) (1,412,314)

Profit from operations 26,601,949 19,521,596 22,988,073 17,027,801

Finance costs 24 (3,611,447) (3,890,719) (3,561,898) (3,855,436)

Share of (loss)/profit in an associate (1,751,460) 70,015 – –

Profit before tax 25 21,239,042 15,700,892 19,426,175 13,172,365

Tax expense 26 (965,645) (2,037,760) (325,486) (1,624,622)

Net profit for the financial year 20,273,397 13,663,132 19,100,689 11,547,743

Basic earnings per ordinary share 27 8.16 sen 5.50 sen

Tax exempt dividend per ordinary share 28 1.75 sen 1.75 sen


income statementsfor the financial year ended 30 April 2008


ExchangeShare Share Revaluation translation Retained Totalcapital premium reserves reserve earnings equity

Group RM RM RM RM RM RM

Balance as at 1 May 2006 124,237,167 1,525,708 4,171,406 56,288 30,457,191 160,447,760

Loss on foreign exchangetranslation – – – (69,423) – (69,423)

Reversal of deferred tax onrevaluation reserves (Note 20) – – 40,629 – – 40,629

Net income/(loss) recogniseddirectly in equity – – 40,629 (69,423) – (28,794)

Net profit for the financial year – – – – 13,663,132 13,663,132

Total recognised income andexpense for the year – – 40,629 (69,423) 13,663,132 13,634,338

Dividends (Note 28) – – – – (4,348,295) (4,348,295)

Balance as at 30 April 2007 124,237,167 1,525,708 4,212,035 (13,135) 39,772,028 169,733,803

Balance as at 1 May 2007 124,237,167 1,525,708 4,212,035 (13,135) 39,772,028 169,733,803

Gain on foreign exchangetranslation – – – 94,141 – 94,141

Reversal of deferred tax onrevaluation reserves (Note 20) – – 140,379 – – 140,379

Net income recognised directlyin equity – – 140,379 94,141 – 234,520

Net profit for the financial year – – – – 20,273,397 20,273,397

Total recognised income andexpense for the year – – 140,379 94,141 20,273,397 20,507,917

Dividends (Note 28) – – – – (4,348,295) (4,348,295)

Balance as at 30 April 2008 124,237,167 1,525,708 4,352,414 81,006 55,697,130 185,893,425

statements of changes in equityfor the financial year ended 30 April 2008


Share Share Revaluation Retainedcapital premium reserves earnings Total

Company RM RM RM RM RM

Balance as at 1 May 2006 124,237,167 1,525,708 4,157,995 24,799,080 154,719,950

Net profit for the financial year,representing total recognisedincome and expense for the year – – – 11,547,743 11,547,743

Dividends (Note 28) – – – (4,348,295) (4,348,295)

Balance as at 30 April 2007 124,237,167 1,525,708 4,157,995 31,998,528 161,919,398

Balance as at 1 May 2007 124,237,167 1,525,708 4,157,995 31,998,528 161,919,398

Reversal of deferred tax onrevaluation reserves (Note 20) – – 140,379 – 140,379

Net income recognised directlyin equity – – 140,379 – 140,379

Net profit for the financial year – – – 19,100,689 19,100,689

Total recognised income andexpense for the year – – 140,379 19,100,689 19,241,068

Dividends (Note 28) – – – (4,348,295) (4,348,295)

Balance as at 30 April 2008 124,237,167 1,525,708 4,298,374 46,750,922 176,812,171


statements of changes in equityfor the financial year ended 30 April 2008 (cont’d)


Group Company2008 2007 2008 2007

Note RM RM RM RM

CASH FLOWS FROM OPERATINGACTIVITIES

Profit before tax 21,239,042 15,700,892 19,426,175 13,172,365

Adjustments for:

Amortisation of prepaid leasepayments for land 8 98,479 91,345 95,803 88,671

Allowance for doubtful debts 130,447 1,815,427 91,419 1,727,122Allowance for doubtful debts nolonger required (3,058) (100) – –

Bad debts written off – – – 324,033Depreciation of property, plant andequipment 7 13,392,625 10,925,551 13,291,338 10,820,224

Dividend income (35,000) (35,000) (35,000) (35,000)Gain on disposal of property, plantand equipment (74,499) (164,507) (74,499) (161,608)

Impairment loss on investments insubsidiaries – – – 8,462

Interest expense 24 3,611,447 3,890,719 3,561,898 3,855,436Interest income (282,223) (265,547) (282,223) (263,430)Property, plant and equipmentwritten off 7 1,434,655 203,278 1,434,655 161,769

Unrealised foreign exchange loss 286,037 – 286,037 –Deficit arising from deconsolidationof subsidiaries 10(a) 30,796 – – –

Share of loss/(profit) in an associate 1,751,460 (70,015) – –

Operating profit before workingcapital changes 41,580,208 32,092,043 37,795,603 29,698,044

Decrease/(Increase) in inventories 7,383,257 (7,699,830) 7,389,691 (8,149,006)Increase in trade and other receivables (8,136,462) (8,302,732) (6,005,425) (6,788,059)Increase in trade and other payables 7,063,421 189,441 7,072,600 37,318

Cash generated from operations 47,890,424 16,278,922 46,252,469 14,798,297

Tax paid (1,736,082) (1,715,382) (1,300,000) (1,293,456)Interest paid (59,977) (125,941) (18,934) (99,315)

Net cash from operating activities 46,094,365 14,437,599 44,933,535 13,405,526

cash flow statementsfor the financial year ended 30 April 2008


Group Company2008 2007 2008 2007

Note RM RM RM RM

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of property,plant and equipment 74,500 5,584,835 74,500 5,573,538

Purchase of property, plant and equipment 7 (13,463,588) (22,995,167) (13,445,472) (21,439,397)Purchase of intangible assets 9 (16,159)Net cash movement fromdeconsolidation of subsidiaries 10(a) (32,820) – – –

Acquisition of subsidiary,net of cash acquired 10(b) – – (2) –

Interest received 282,223 265,547 282,223 263,430Dividends received 35,000 35,000 35,000 35,000

Net cash used in investing activities (13,120,844) (17,109,785) (13,053,751) (15,567,429)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of term loans (4,000,000) (2,000,000) (4,000,000) (2,000,000)Interest paid (3,551,470) (3,764,778) (3,542,964) (3,756,121)Dividends paid (4,348,295) (4,348,295) (4,348,295) (4,348,295)(Repayment)/Drawdown of bankers’acceptances, net (17,750,000) 1,818,000 (17,750,000) 2,380,000

Drawdown of import foreign currencyloans, net 12,454,748 – 12,454,748 –

Net cash used in financing activities (17,195,017) (8,295,073) (17,186,511) (7,724,416)

Net increase/(decrease) in cash andcash equivalents 15,778,504 (10,967,259) 14,693,273 (9,886,319)

Effects of exchange rate changes 12,419 (10,422) – –

Cash and cash equivalents at beginningof financial year 630,297 11,607,978 965,437 10,851,756

Cash and cash equivalents at end offinancial year 29 16,421,220 630,297 15,658,710 965,437


cash flow statementsfor the financial year ended 30 April 2008 (cont’d)


1. CORPORATE INFORMATION

The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board ofBursa Malaysia Securities Berhad.

The registered office of the Company is located at No. 275, 1st Floor, Jalan Haruan 1, Oakland Industrial Park, 70200Seremban, Negeri Sembilan Darul Khusus, Malaysia.

The principal place of business of the Company is located at Lot 11, Jalan Perusahaan 1, Kawasan Perusahaan Beranang,43700 Beranang, Semenyih, Selangor Darul Ehsan, Malaysia.

The financial statements are expressed in Ringgit Malaysia (RM), which is also the Company’s functional currency.

The financial statements were authorised for issue in accordance with a resolution by the Board of Directors on 12 August2008.

2. PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of manufacturing, marketing and trading of aluminium extrusion andceiling metal tee products. The principal activities of the subsidiaries are disclosed in Note 10 to the financial statements.There have been no significant changes in the nature of these activities during the financial year except for the newlyacquired subsidiary and subsidiaries which are placed under liquidation as disclosed in Note 10.

3. BASIS OF PREPARATION

The financial statements of the Group and of the Company have been prepared in accordance with applicable approvedFinancial Reporting Standards (“FRS”) and the provisions of the Companies Act, 1965.

4. SIGNIFICANT ACCOUNTING POLICIES

4.1 Basis of accounting

The financial statements of the Group and of the Company have been prepared under the historical cost convention(as modified by the revaluation of the freehold land and buildings) except as otherwise stated in the financialstatements.

The preparation of financial statements requires the Directors to make estimates and assumptions that affect thereported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and contingentliabilities. In addition, the Directors are also required to exercise their judgement in the process of applying theaccounting policies. The areas involving such judgements, estimates and assumptions are disclosed in Note 6 to thefinancial statements. Although these estimates and assumptions are based on the Directors’ best knowledge of eventsand actions, actual results could differ from those estimates.

4.2 Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and all its subsidiaries madeup to the end of the financial year using the purchase method of accounting.

Under the purchase method of accounting, the cost of business combination is measured at the aggregate of fairvalues at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued plus anycosts directly attributable to the business combination.

notes to the financial statements30 April 2008


4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.2 Basis of consolidation (cont’d)

At the acquisition date, the cost of business combination is allocated to identifiable assets acquired, liabilities assumedand contingent liabilities in the business combination which are measured initially at their fair values at the acquisitiondate. The excess of the cost of business combination over the Group’s interest in the net fair value of the identifiableassets, liabilities and contingent liabilities is recognised as goodwill. If the cost of business combination is less than theinterest in the net fair value of the identifiable assets, liabilities and contingent liabilities, the Group will:

(a) reassess the identification and measurement of the acquiree’s identifiable assets, liabilities and contingentliabilities and the measurement of the cost of the combination; and

(b) recognise immediately in profit or loss any excess remaining after that reassessment.

Where a business combinations include more than one exchange transaction is involved, any adjustment to the fairvalues of the subsidiary’s identifiable assets, liabilities and contingent liabilities relating to previously held interests of theGroup is accounted for as a revaluation.

Subsidiaries are consolidated from the acquisition date, which is the date on which the Group effectively obtainscontrol, until the date on which the Group ceases to control the subsidiaries. Control exists when the Group has thepower to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Inassessing control, the existence and effect of potential voting rights that are currently convertible or exercisable aretaken into account.

Intragroup balances, transactions and unrealised gains and losses on intragroup transactions are eliminated in full.Intragroup losses may indicate an impairment that requires recognition in the consolidated financial statements. If asubsidiary uses accounting policies other than those adopted in the consolidated financial statements for liketransactions and events in similar circumstances, appropriate adjustments are made to its financial statements inpreparing the consolidated financial statements.

The gain or loss on disposal of a subsidiary, which is the difference between the net disposal proceeds and the Group’sshare of its net assets as of the date of disposal including the carrying amount of goodwill and the cumulative amountof any exchange differences that relate to the subsidiary, is recognised in the consolidated income statement.

Minority interest is that portion of the profit or loss and net assets of a subsidiary attributable to equity interests thatare not owned, directly or indirectly through subsidiaries, by the Group. It is measured at the minority’s share of thefair value of the subsidiaries’ identifiable assets and liabilities at the acquisition date and the minority’s share of changesin the subsidiaries’ equity since that date.

Where losses applicable to the minority in a subsidiary exceed the minority’s interest in the equity of that subsidiary, theexcess and any further losses applicable to the minority are allocated against the Group’s interest except to the extentthat the minority has a binding obligation and is able to make additional investment to cover the losses. If thesubsidiary subsequently reports profits, such profits are allocated to the Group’s interest until the minority’s share oflosses previously absorbed by the Group has been recovered.

Minority interest is presented in the consolidated balance sheet within equity and is presented in the consolidatedstatement of changes in equity separately from equity attributable to equity holders of the Company.

Minority interest in the results of the Group is presented in the consolidated income statement as an allocation of thetotal profit or loss for the year between minority interest and equity holders of the Company.



4.3 Property, plant and equipment and depreciation

All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that is directlyattributable to the acquisition of the asset.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, onlywhen the cost is incurred and it is probable that the future economic benefits associated with the asset will flow tothe Group and the cost of the asset can be measured reliably. The carrying amount of parts that are replaced arederecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the incomestatement as incurred. Cost also comprises the initial estimate of dismantling and removing the asset and restoring thesite on which it is located for which the Group is obligated to incur when the item is acquired, if applicable.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of theasset and which has different useful life, is depreciated separately.

After initial recognition, property, plant and equipment except for freehold land and buildings are stated at cost less anyaccumulated depreciation and any accumulated impairment losses. Freehold land and certain buildings are stated atvaluation, which is the fair value at the date of revaluation less any subsequent accumulated depreciation andsubsequent accumulated impairment losses.

The freehold land and certain buildings are revalued with sufficient regularity to ensure that the carrying amount doesnot differ materially from that which would be determined using fair value at balance sheet date. The surplus arisingfrom such revaluation is credited to shareholders’ equity as a revaluation reserve and any subsequent deficit is offsetagainst such surplus to the extent of a previous increase for the same property. In all other cases, the deficit will becharged to the income statement. For a revaluation increase subsequent to a revaluation deficit of the same asset, thesurplus is recognised as income to the extent that it reverses the deficit previously recognised as an expense with thebalance of increase credited to revaluation reserve.

Depreciation is calculated to write off the cost or valuation of the assets to their residual values on a straight line basisover their estimated useful lives. The principal annual depreciation rates are as follows:

Buildings 2%Plant and machinery 4% – 10%Motor vehicles 10% – 20%Office equipment 10% – 25%Furniture and fittings 10%Dies and moulds 15%

Freehold land is not depreciated.

At each balance sheet date, the carrying amount of an item of property, plant and equipment is assessed forimpairment when events or changes in circumstances indicate that its carrying amount may not be recoverable.

The residual values, useful lives and depreciation method are reviewed at each financial year end to ensure that theamount, method and period of depreciation are consistent with previous estimates and the expected pattern ofconsumption of the future economic benefits embodied in the items of property, plant and equipment.

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no futureeconomic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any, andthe carrying amount is included in profit or loss and the revaluation surplus related to those assets, if any, is transferreddirectly to retained earnings.



4.4. Leases of land and buildings

For leases of land and building, the land and buildings elements are considered separately for the purpose of leaseclassification and these leases are classified as operating or finance leases in the same way as leases of other assets.

The minimum lease payments including any lump-sum upfront payments made to acquire the interest in the land andbuilding are allocated between the land and the buildings elements in proportion to the relative fair values forleasehold interest in the land element and the buildings element of the lease at the inception of the lease.

Leasehold land that normally has an indefinite economic life and where the lease does not transfer substantially all therisk and rewards incidental to ownership is treated as an operating lease. The lump-sum upfront lease payment madeon entering into or acquiring leasehold land are accounted for as prepaid lease payments and are amortised over thelease term in accordance with the pattern of benefits provided.

The buildings element is classified as a finance or operating lease. If the lease payment cannot be allocated reliablybetween these two elements, the entire lease is classified as a finance lease, unless it is clear that both elements areoperating leases, in which case the entire lease is classified as an operating lease.

The Group and the Company had previously revalued its leasehold land and has retained the unamortised revaluedamount as the surrogate carrying amount of prepaid lease payments in accordance with the transitional provisions inFRS 117. Such prepaid lease payments is amortised over the lease term of 28 to 94 years.

4.5 Investments

(a) Subsidiaries

A subsidiary is an entity in which the Group and the Company has power to control the financial and operatingpolicies so as to obtain benefits from its activities. The existence and effect of potential voting rights that arecurrently exercisable or convertible are considered when assessing whether the Group has such power overanother entity.

An investment in subsidiary, which is eliminated on consolidation, is stated in the Company’s separate financialstatements at cost less impairment losses, if any. On disposal of such an investment, the difference between thenet disposal proceeds and its carrying amount is included in profit or loss.

(b) Associates

An associate is an entity over which the Group and the Company has significant influence and that is neither asubsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial andoperating policy decisions of the investee but is not control or joint control over those policies.

In the Company’s separate financial statements, an investment in associate is stated at cost less impairment losses,if any.

An investment in associate is accounted for in the consolidated financial statements using the equity method ofaccounting. The investment in associate in the consolidated balance sheet is initially recognised at cost andadjusted thereafter for the post acquisition change in the Group’s share of net assets of the investment.

The interest in the associate is the carrying amount of the investment in the associate under the equity methodtogether with any long-term interest that, in substance, form part of the Group’s net interest in the associate.



4.5 Investments (cont’d)

(b) Associates (cont’d)

The Group’s share of the profit or loss of the associate during the financial year is included in the consolidatedfinancial statements, after adjustment to align the accounting policies with those of the Group, from the date thatsignificant influence commences until the date that significant influence ceases. Distributions received from theassociate reduce the carrying amount of the investment. Adjustments to the carrying amount may also benecessary for changes in the Group’s proportionate interest in the associate arising from changes in theassociate’s equity that have not been recognised in the associate’s profit or loss. Such changes include thosearising from the revaluation of property, plant and equipment and from foreign exchange translation differences.The Group’s share of those changes is recognised directly in equity of the Group.

Unrealised gains and losses on transactions between the Group and the associate are eliminated to the extent ofthe Group’s interest in the associate.

When the Group’s share of losses in the associate equals or exceeds its interest in the associate, the carryingamount of that interest is reduced to nil and the Group does not recognise further losses unless it has incurredlegal or constructive obligations or made payments on its behalf.

The most recent available financial statements of the associate are used by the Group in applying the equitymethod. Where the reporting dates of the financial statements are not coterminous, the share of results is arrivedat using the latest audited financial statements for which difference in reporting dates is no more than threemonths. Adjustments are made for the effects of any significant transactions or events that occur between theintervening period.

Upon disposal of an investment in associate, the difference between the net disposal proceeds and its carryingamount is included in profit or loss.

(c) Other investments

Non-current investments other than investments in subsidiaries and associates are stated at cost and anallowance for diminution in value is made where, in the opinion of the Directors, there is a decline other thantemporary in the value of such investments. Where there has been a decline other than temporary in the value ofan investment, such a decline is recognised as an expense in the period in which the decline is identified.

Upon disposal of such investment, the difference between net disposal proceeds and its carrying amount isrecognised in profit or loss.

4.6 Intangible assets

Intangible assets are recognised only when the identifiability, control and future economic benefit probability criteria aremet.

Intangible assets are initially measured at cost. After initial recognition, intangible assets are carried at cost less anyaccumulated amortisation and any accumulated impairment losses. The useful lives of intangible assets are assessed tobe either finite or indefinite. Intangible assets with finite lives are amortised on a straight line basis over the estimatedeconomic useful lives and are assessed for any indication that the asset may be impaired. If any such indication exists,the entity shall estimate the recoverable amount of the asset. The amortisation period and the amortisation methodfor an intangible asset with a finite useful life are reviewed at least at each financial year end. The amortisationexpense on intangible assets with finite lives is recognised in profit or loss and is included within the other operatingexpenses.



4.6 Intangible assets (cont’d)

An intangible asset has an indefinite useful life when based on the analysis of all the relevant factors; there is noforeseeable limit to the period over which the asset is expected to generate net cash inflows to the Group. Intangibleassets with indefinite useful lives are tested for impairment annually and wherever there is an indication that thecarrying value may be impaired. Such intangible assets are not amortised. Their useful lives are reviewed each periodto determine whether events and circumstances continue to support the indefinite useful life assessment for the asset.If they do not, the change in the useful life assessment for indefinite to finite is accounted for as a change inaccounting estimate in accordance with FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors.

Expenditure on an intangible item that are initially recognised as an expense are not recognised as part of the cost ofan intangible asset at a later date.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from its use. Thegain or loss arising from the derecognition determined as the difference between the net disposal proceeds, if any, andthe carrying amount of the asset is recognised in profit or loss when the asset is derecognised.

4.7 Impairment of non-financial assets

The carrying amount of assets, except for financial assets (excluding investments in subsidiaries and associate),inventories and deferred tax assets, are reviewed at each balance sheet date to determine whether there is anyindication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

Goodwill and intangible assets that have an indefinite useful life are tested annually for impairment or more frequentlyif events or changes in circumstances indicate that the goodwill or intangible asset might be impaired.

The recoverable amount of an asset is estimated for an individual asset. Where it is not probable to estimate therecoverable amount of the individual asset, the impairment test is carried out on the cash generating unit (“CGU”) towhich the asset belongs. Goodwill acquired in a business combination is from the acquisition date, allocated to eachof the Group’s CGU or groups of CGU that are expected to benefit from the synergies of the combination giving riseto the goodwill irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groupsof units.

The recoverable amount of an asset or CGU is the higher of its fair value less cost to sell and its value in use.

In estimating the value in use, the estimated future cash inflows and outflows to be derived from continuing use ofthe asset and from its ultimate disposal are discounted to their present value using a pre-tax discount rate that reflectscurrent market assessments of the time value of money and the risks specific to the asset for which the future cashflow estimates have not been adjusted. An impairment loss is recognised in the income statement when the carryingamount of the asset or the CGU, including the goodwill or intangible asset, exceeds the recoverable amount of theasset or the CGU. The total impairment loss is allocated, first, to reduce the carrying amount of any goodwill allocatedto the CGU and then to the other assets of the CGU on a pro-rata basis of the carrying amount of each asset in theCGU.

The impairment loss is recognised in the income statement immediately except for the impairment on a revalued assetwhere the impairment loss is recognised directly against the revaluation reserve to the extent of the surplus creditedfrom the previous revaluation for the same asset with the excess of the impairment loss charged to the incomestatement.

An impairment loss on goodwill is not reversed in subsequent periods. An impairment loss for other assets is reversedif, and only if, there has been a change in the estimates used to determine the assets’ recoverable amount since thelast impairment loss was recognised.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carryingamount that would have been determined, net of depreciation or amortisation, if no impairment loss had beenrecognised.



4.7 Impairment of non-financial assets (cont’d)

Such reversals are recognised as income immediately in the income statement except for the reversal of an impairmentloss on a revalued asset where the reversal of the impairment loss is treated as a revaluation increase and credited tothe revaluation reserve account of the same asset. However, to the extent that an impairment loss on the samerevalued asset was previously recognised in profit or loss, a reversal of that impairment loss is also recognised in profitor loss.

4.8 Inventories

Inventories are valued at the lower of cost and net realisable value.

Cost is determined on a weighted average basis. The cost of raw materials and consumables comprises all cost ofpurchase plus the cost of bringing the inventories to their present location and condition. The cost of finished goodsand work-in-progress includes the cost of raw materials, direct labour, other direct cost and a proportion ofmanufacturing overheads.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary tomake the sale.

4.9 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial liability orequity instrument of another enterprise.

A financial asset is any asset that is cash, an equity instrument of another enterprise, a contractual right to receive cashor another financial asset from another enterprise, or a contractual right to exchange financial assets or financialliabilities with another enterprise under conditions that are potentially favourable to the Group.

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to anotherenterprise, or a contractual obligation to exchange financial assets or financial liabilities with another enterprise underconditions that are potentially unfavourable to the Group.

4.9.1 Financial instruments recognised on the balance sheets

Financial instruments are recognised on the balance sheets when the Group has become a party to thecontractual provisions of the instrument.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractualarrangement. Interest, dividends and losses and gains relating to a financial instrument or a component that isa financial liability shall be recognised as income or expense in profit or loss. Distributions to holders of anequity instrument are debited directly to equity, net of any related tax effect. Financial instruments are offsetwhen the Group has a legally enforceable right to offset and intends to settle on a net basis or to realise theasset and settle the liability simultaneously.

(a) Receivables

Trade receivables and other receivables, including amounts owing by associates and related parties, areclassified as loans and receivables under FRS 132 Financial Instruments: Disclosure and Presentation.

Receivables are carried at anticipated realisable value. Known bad debts are written off and specificallowance is made for debts considered to be doubtful of collection.

Receivables are not held for trading purposes.



4.9 Financial instruments (cont’d)

4.9.1 Financial instruments recognised on the balance sheets (cont’d)

(b) Cash and cash equivalents

Cash and cash equivalents include cash and bank balances, bank overdrafts, deposits and other short term,highly liquid investments with original maturities of three months or less, which are readily convertible tocash and are subject to insignificant risk of changes in value.

(c) Payables

Liabilities for trade and other amount payable are recognised at the fair value of the consideration to bepaid in the future for goods and services received.

(d) Interest bearing loans and borrowings

All loans and borrowings are recognised at the fair value of the consideration received less directlyattributable transaction costs.

(e) Equity instruments

Ordinary shares are recorded at the nominal value and proceeds in excess of the nominal value of sharesissued, if any, are accounted for as share premium. Both ordinary shares and share premium are classifiedas equity. Transaction costs of an equity transaction are accounted for as a deduction from equity, net ofany related income tax benefit. Otherwise, they are charged to the income statement.

Dividends to shareholders are recognised in equity in the period in which they are declared.

4.9.2 Financial instruments not recognised on the balance sheets

There were no financial instruments not recognised on the balance sheets.

4.10 Borrowing costs

Interest, dividends, losses and gains relating to a financial instruments, or a component classified as a financial liabilityis reported as finance cost in the income statements.

Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset iscapitalised as part of the cost of the asset until when substantially all the activities necessary to prepare the asset for itsintended use or sale are complete, after which such expense is charged to the income statement. A qualifying asset isan asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Capitalisation ofborrowing cost is suspended during extended periods in which active development is interrupted.

The amount of borrowing costs eligible for capitalisation is the actual borrowing costs incurred on the borrowing duringthe period less any investment income on the temporary investment of the borrowing.

All other borrowing cost are recognised in profit or loss in the period in which they are incurred.

4.11 Income taxes

Income taxes include all domestic and foreign taxes on taxable profits. Income taxes also include other taxes such asreal property gain taxes payable on disposal of properties, prior to 1 April 2007, if any.

Taxes in the income statement comprises current tax and deferred tax.



4.11 Income taxes (cont’d)

4.11.1 Current tax

Current tax is the amount of income taxes payable or receivable in respect of the taxable profit or loss for aperiod.

Current tax for the current and prior periods are measured at the amount expected to be recovered from orpaid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that havebeen enacted or substantively enacted by the balance sheet date.

4.11.2 Deferred tax

Deferred tax is recognised in full using the liability method on temporary differences arising between thecarrying amount of an asset or liability in the balance sheet and its tax base.

Deferred tax is recognised for all temporary differences, unless the deferred tax arises from goodwill or the initialrecognition of an asset or liability in a transaction which is not a business combination and at the time oftransaction, affects neither accounting profit nor taxable profit.

A deferred tax asset is recognised only to the extent that it is probable that taxable profit will be availableagainst which the deductible temporary differences can be utilised. The carrying amount of a deferred tax assetis reviewed at each balance sheet date. If it is no longer probable that sufficient taxable profit will be availableto allow the benefit of part or all of that deferred tax asset to be utilised, the carrying amount of the deferredtax asset will be reduced accordingly. When it becomes probable that sufficient taxable profit will be available,such reductions will be reversed to the extent of the taxable profit.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assetsagainst current tax liabilities and when the deferred income taxes relate to the same taxation authority.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when theasset is realised or the liability is settled, based on tax rates and tax laws that have been enacted orsubstantively enacted by the balance sheet date.

4.12 Provisions

Provisions are recognised when there is a present obligation, legal or constructive, as a result of a past event, when itis probable that an outflow of resources embodying economic benefits will be required to settle the obligation and areliable estimate can be made of the amount of the obligation.

Where the effect of the time value of money is material, the amount of a provision will be discounted to its presentvalue at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to theliability.

4.13 Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by theoccurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a presentobligation that is not recognised because it is not probable that an outflow of resources will be required to settle theobligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognisedbecause it cannot be measured reliably. The Group does not recognise a contingent liability but discloses its existencein the financial statements.



4.13 Contingent liabilities and contingent assets (cont’d)

A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the occurrenceor non-occurrence of one or more uncertain future events beyond the control of the Group. The Group does notrecognise contingent assets but discloses its existence where inflows of economic benefits are probable, but not virtuallycertain.

In the acquisition of subsidiaries by the Group under business combinations, contingent liabilities assumed are measuredinitially at their fair value at the acquisition date, irrespective of the extent of any minority interest.

4.14 Employee benefits

4.14.1 Short term employee benefits

Wages, salaries, social security contributions, paid annual leave, bonuses and non-monetary benefits arerecognised as an expense in the financial year when employees have rendered their services to the Group.

Short term accumulating compensated absences such as paid annual leave are recognised as an expense whenemployees render services that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.

Bonuses are recognised as an expense when there is a present, legal or constructive obligation to make suchpayments, as a result of past events and when a reliable estimate can be made of the amount of theobligation.

4.14.2 Defined contribution plans

The Company and subsidiaries incorporated in Malaysia make contributions to a statutory provident fund andforeign subsidiary make contributions to their respective countries’ statutory pension schemes. The contributionsare recognised as a liability after deducting any contribution already paid and as an expense in the period inwhich the employees render their services.

4.15 Foreign currencies

4.15.1 Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency ofthe primary economic environment in which the entity operates (“the functional currency”). The consolidatedfinancial statements are presented in Ringgit Malaysia, which is the Company’s functional and presentationcurrency.

4.15.2 Foreign currency transactions and balances

Transactions in foreign currencies are converted into Ringgit Malaysia at rates of exchange ruling at thetransaction dates. Monetary assets and liabilities in foreign currencies at the balance sheet date are translatedinto Ringgit Malaysia at rates of exchange ruling at the date unless hedged by forward foreign exchangecontracts, in which case the rates specified in such forward contracts are used. All exchange differences arisingfrom the settlement of foreign currency transactions and from the translation of foreign currency monetaryassets and liabilities are included in the profit or loss in the period in which they arise. Non-monetary itemsinitially denominated in foreign currencies, which are carried at historical cost are translated using the historicalrate as of the date of acquisition, and non-monetary items which are carried at fair value are translated usingthe exchange rate that existed when the values were determined for presentation currency purposes.



4.15 Foreign currencies (cont’d)

4.15.3 Foreign operations

Financial statements of foreign operations are translated at financial year end exchange rates with respect to theassets and liabilities, and at exchange rates at the dates of the transactions with respect to the incomestatement. All resulting translation differences are taken to reserves.

In the consolidated financial statements, exchange differences arising from the translation of net investment inforeign operations are taken to shareholders’ equity. When a foreign operation is partially disposed off or sold,exchange differences that were recorded in equity are recognised in the income statement as part of the gain orloss in sale.

Goodwill and fair value adjustments to the assets and liabilities arising from the acquisition of a foreignoperation are treated as assets and liabilities of the acquired entity and translated at the exchange rate ruling atthe balance sheet date.

4.16 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable net of discounts and rebates.

Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction willflow to the Group, and the amount of revenue and the cost incurred or to be incurred in respect of the transactioncan be reliably measured and specific recognition criteria have been met for each of the Group’s activities as follows:

(a) Sale of goods

Revenue from sale of goods is recognised when significant risk and rewards of ownership of the goods hasbeen transferred to the customer and where the Group retains neither continuing managerial involvement overthe goods, which coincides with delivery of goods and services and acceptance by customers.

(b) Dividend income

Dividend income is recognised when the right to receive payment is established.

(c) Interest income

Interest income is recognised in the income statement on accrual basis.

(d) Rental income

Rental income is recognised in the income statement on accrual basis unless collectibility is in doubt.

4.17 Segment reporting

Segment reporting is presented for enhanced assessment of the Group’s risks and returns. Business segments provideproducts or services that are subject to risks and returns that are different from those of other business segments.Geographical segments provide products or services within a particular economic environment that is subject to risksand returns that are different from those components operating in other economic environments.

Segment revenue, expense, assets and liabilities are those amounts resulting from the operating activities of a segmentthat are directly attributable to the segment and the relevant portion that can be allocated on a reasonable basis to thesegment. Segment revenue, expense, assets and liabilities are determined before intragroup balances and intragrouptransactions are eliminated as part of the consolidation process, except to the extent that such intragroup balances andtransactions are between Group enterprises within a single segment.


5. ADOPTION OF NEW FRS AND AMENDMENTS TO FRS

5.1 New FRS and amendments to FRS adopted

(a) FRS 6 Exploration for and Evaluation of Mineral Resources is mandatory for annual periods beginning on or after1 January 2007. FRS 6 is not relevant to the Group’s operations.

(b) FRS 124 Related Party Disclosures is mandatory for annual periods beginning on or after 1 October 2006. Theadoption of this standard does not have any significant impact on the financial statements of the Group, otherthan additional disclosure on key management personnel remuneration and disclosure on related party transactionsunder FRS 124.

(c) FRS 1192004 Amendment to FRS 1192004 Employee Benefits – Actuarial Gains and Losses, Group Plans andDisclosures is mandatory for annual periods beginning on or after 1 January 2007.

This amendment permits any systematic method that results in recognition of actuarial gains and losses in theperiod in which they occur provided that the same basis is applied to both, gains and losses and the basis isapplied consistently from period to period.

As the Group does not intend to change the accounting policy adopted for the recognition of actuarial gains andlosses and does not participate in any multi-employer plans, the adoption of this amendment will only impact theformat and extent of disclosures presented in the financial statements.

5.2 New FRS and amendments to FRS not adopted

The Group has not adopted FRS 139 Financial Instruments: Recognition and Measurement and the consequentialamendments resulting from FRS 139 which effective date is 1 January 2010. FRS 139 establishes the principles for therecognition and measurement of financial assets and financial liabilities including circumstances under which hedgeaccounting is permitted. By virtue of the exemption provided under paragraph 103AB of FRS139, the impact ofapplying FRS 139 on its financial statements upon first adoption of the standard as required by paragraph 30(b) of FRS108 is not disclosed.

The Group has also not adopted the following FRS and amendments that have been issued as at the date ofauthorisation of these financial statements but are not yet effective for the Group. The Directors do not anticipate thatthe application of these standards when they are effective will have a material impact on the results and the financialposition of the Group:

(a) FRS which are effective for annual periods beginning on or after 1 July 2007

FRS 107 Cash Flow StatementsFRS 111 Construction ContractsFRS 112 Income TaxesFRS 118 RevenueFRS 120 Accounting for Government Grants and Disclosure of Government AssistanceFRS 134 Interim Financial ReportingFRS 137 Provisions, Contingent Liabilities and Contingent Assets

These standards align the MASB’s FRS with the equivalent International Accounting Standards, both in terms ofform and content. The adoption of these standards will only impact the form and content of disclosurespresented in the financial statements. The Group will apply these standards for its annual period beginning 1 May2008.

(b) Framework for the Preparation and Presentation of Financial Statements (“Framework”) which is effective forannual periods beginning on or after 1 July 2007

The Framework sets out the concepts that underlie the preparation and presentation of financial statements forexternal users. It is not a MASB approved accounting standard and hence does not define standards for anyparticular measurement or disclosure issue. The Group will apply this Framework for its annual period beginning1 May 2008.


5. ADOPTION OF NEW FRS AND AMENDMENTS TO FRS (CONT’D)

5.2 New FRS and amendments to FRS not adopted (cont’d)

(c) Amendments and IC Interpretations which are effective for annual periods beginning on or after 1 July 2007

Amendment to FRS 121 The Effects of Changes in Foreign Exchange Rates – Net Investment in a ForeignOperation

IC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities

IC Interpretation 2 Member’s Shares in Co-operative Entities and Similar Instruments

IC Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and EnvironmentalRehabilitation Funds.

IC Interpretation 6 Liabilities arising from Participating in a Specific Market – Waste Electrical andElectronic Equipment

IC Interpretation 7 Applying the Restatement Approach under FRS 1292004 Financial Reporting inHyperinflationary Economies

IC Interpretation 8 Scope of FRS 2

The above Amendment and IC Interpretations are not relevant to the Group’s operations.

6. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

6.1 Changes in estimates

FRS 116 Property, Plant and Equipment requires the review of the residual value and remaining useful life of an item ofproperty, plant and equipment at least at each year end. The Group revised the estimated useful lives of dies andmoulds from 10 to 7 years and as a result, the depreciation rate has been revised from 10% to 15% with effect from1 May 2007. The revisions were accounted for prospectively as a change in accounting estimate and as a result, thedepreciation charges of the Group for the current year have been increased by RM1,595,109.

6.2 Critical judgements made in applying accounting policies

The following are the judgements made by management in the process of applying the Group’s accounting policies thathave the most significant effect on the amounts recognised in the financial statements.

Allowance for doubtful debts

The Group and the Company make allowance for doubtful debts based on an assessment of the recoverability ofreceivables. Allowance is applied to receivables where events or changes in circumstances indicate that the balancesmay not be recoverable. The management specifically analyses historical bad debts, customer concentration, currentcreditworthiness, current economic trends and changes in customer payment terms when making a judgement toevaluate the adequacy of the allowance for doubtful debts. Where expectations are different from previous estimates,the difference will impact the carrying amounts of receivables. Allowance for doubtful debts charged to incomestatements for the financial year ended 30 April 2008 in respect of Group and Company were RM130,447 (2007:RM1,815,427) and RM91,419 (2007: RM1,727,122) respectively.


6. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS (CONT’D)

6.3 Key sources of estimation uncertainty

The following are key assumptions concerning the future and the other key sources of estimation uncertainty at thebalance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets andliabilities within the next financial year.

(a) Depreciation of plant and machinery and dies and mould

The cost of plant and machinery and dies and mould is depreciated on a straight-line basis over the assets’ usefullives. Management estimates the useful lives of these assets to be 7 to 25 years. These are common lifeexpectancies applied in industry the Group and the Company operate. Changes in the expected level of usageand technological developments could impact the economic useful lives and the residual values of these assets,therefore future depreciation charges could be revised.

(b) Impairment of property, plant and equipment

The Group reviews the carrying amounts of the property, plant and equipment as at each balance sheet date todetermine whether there is any indication of impairment. If any such indication exists, the assets’ recoverableamount or value in use is estimated. Determining the value in use of property, plant and equipment, which requirethe determination of future cash flows expected to be generated from the continued use and ultimatedisposition of such assets, requires the Group to make estimates and assumptions that can materially affect thefinancial statements. Any resulting impairment loss could have a material adverse impact on the Group’sfinancial position and results of operations.

The preparation of the estimated future cash flows involves significant judgement and estimations. While theGroup believes that the assumptions are appropriate and reasonable, significant changes in the assumptions maymaterially affect the assessment of recoverable amounts and may lead to future impairment charges.

(c) Income taxes

Significant judgement is involved in determining the Group-wide provision for income taxes. There are certaintransactions and computations for which the ultimate tax determination is uncertain during the ordinary course ofbusiness. The Group recognises liabilities from expected tax issues based on estimation of whether additionaltaxes will be due. Where the final tax outcome of these matters is different from the amounts that were initiallyrecognised, such difference will impact the income tax and deferred tax provisions in the period in which suchdetermination is made.

(d) Deferred tax assets

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable thattaxable profit will be available against which the deductible temporary differences can be utilised. Significantmanagement judgement is required to determine the amount of deferred tax assets that can be recognised, basedupon the likely timing and level of future taxable profits together with future tax planning strategies.


7. PROPERTY, PLANT AND EQUIPMENT

Balance Depreciation Balanceas at Written charged for Translation as at

Group 1.5.2007 Additions Disposals off Transfer the year adjustments 30.4.2008RM RM RM RM RM RM RM RM

Carrying amount

Freehold land– at valuation 9,150,000 – – – – – – 9,150,000– at cost 684,973 112,968 – – – – – 797,941Buildings– at valuation 29,334,405 – – – – (658,455) – 28,675,950– at cost 12,320,242 1,119,908 – – 69,246 (267,270) 37,294 13,279,420Plant and machinery 66,697,481 3,576,382 (1) (17,998) (69,395) (6,259,263) – 63,927,206Motor vehicles 1,714,415 238,451 – – – (321,699) – 1,631,167Office equipment 2,645,259 474,910 – (13,508) – (660,930) 345 2,446,076Furniture and fittings 3,433,152 309,946 – – 149 (438,481) 2,448 3,307,214Dies and moulds 21,438,006 7,631,023 – (1,403,149) – (4,786,527) – 22,879,353

147,417,933 13,463,588 (1) (1,434,655) – (13,392,625) 40,087 146,094,327

<----------------------------- At 30 April 2008 ------------------------------->Accumulateddepreciation

andimpairment Carrying

Group Cost Valuation loss amountRM RM RM RM

Freehold land– at valuation – 9,150,000 – 9,150,000– at cost 797,941 – – 797,941Buildings– at valuation – 30,576,751 (1,900,801) 28,675,950– at cost 13,827,459 – (548,039) 13,279,420Plant and machinery 111,353,922 – (47,426,716) 63,927,206Motor vehicles 3,248,892 – (1,617,725) 1,631,167Office equipment 6,693,989 – (4,247,913) 2,446,076Furniture and fittings 5,732,420 – (2,425,206) 3,307,214Dies and moulds 33,284,969 – (10,405,616) 22,879,353

174,939,592 39,726,751 (68,572,016) 146,094,327


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

Balance Depreciation Balanceas at Written charged for Translation as at

Group 1.5.2006 Additions Disposals off the year adjustments 30.4.2007RM RM RM RM RM RM RM

Carrying amount

Freehold land– at valuation 12,550,000 – (3,400,000) – – – 9,150,000– at cost 5,000 679,973 – – – – 684,973Buildings– at valuation 31,793,411 – (1,777,582) – (681,424) – 29,334,405– at cost 7,892,039 4,810,823 (189,709) (6,623) (186,288) – 12,320,242Plant and machinery 65,412,797 7,527,960 – (25,522) (6,217,754) – 66,697,481Motor vehicles 1,643,174 381,205 (7,641) – (302,323) – 1,714,415Office equipment 2,387,834 929,741 (12,017) (19,092) (640,898) (309) 2,645,259Furniture and fittings 3,261,017 645,888 (33,379) (28,305) (411,493) (576) 3,433,152Dies and moulds 16,027,536 8,019,577 – (123,736) (2,485,371) – 21,438,006

140,972,808 22,995,167 (5,420,328) (203,278) (10,925,551) (885) 147,417,933

<------------------------------- At 30 April 2007 ------------------------------>Accumulateddepreciation


Group Cost Valuation loss amountRM RM RM RM


165,247,523 39,726,751 (57,556,341) 147,417,933



Balance Depreciation Balanceas at Written charged for as at

Company 1.5.2007 Additions Disposals off Transfer the year 30.4.2008RM RM RM RM RM RM RM

Carrying amount

Freehold land– at valuation 6,750,000 – – – – – 6,750,000– at cost 684,973 112,968 – – – – 797,941Buildings– at valuation 28,912,558 – – – – (649,364) 28,263,194– at cost 10,927,270 1,119,908 – – 69,246 (238,771) 11,877,653Plant and machinery 66,680,086 3,576,382 (1) (17,998) (69,395) (6,256,794) 63,912,280Motor vehicles 1,711,975 238,451 – – – (321,200) 1,629,226Office equipment 2,517,257 467,067 – (13,508) – (639,009) 2,331,807Furniture and fittings 3,176,359 299,673 – – 149 (399,673) 3,076,508Dies and moulds 21,438,006 7,631,023 – (1,403,149) – (4,786,527) 22,879,353

142,798,484 13,445,472 (1) (1,434,655) – (13,291,338) 141,517,962

<------------------------------- At 30 April 2008 ------------------------------>Accumulateddepreciation


Company Cost Valuation loss amountRM RM RM RM


172,707,323 36,886,751 (68,076,112) 141,517,962



Balance Depreciation Balanceas at Written charged for as at

Company 1.5.2006 Additions Disposals off the year 30.4.2007RM RM RM RM RM RM

Carrying amount

Freehold land– at valuation 10,150,000 – (3,400,000) – – 6,750,000– at cost 5,000 679,973 – – – 684,973Buildings– at valuation 31,362,472 – (1,777,582) – (672,332) 28,912,558– at cost 7,845,295 3,452,304 (189,709) (6,623) (173,997) 10,927,270Plant and machinery 65,396,922 7,524,160 – (25,522) (6,215,474) 66,680,086Motor vehicles 1,620,924 381,205 (7,641) – (282,513) 1,711,975Office equipment 2,289,275 854,042 (4,843) (5,888) (615,329) 2,517,257Furniture and fittings 3,055,586 528,136 (32,155) – (375,208) 3,176,359Dies and moulds 16,027,536 8,019,577 – (123,736) (2,485,371) 21,438,006

137,753,010 21,439,397 (5,411,930) (161,769) (10,820,224) 142,798,484

<--------------------------------- At 30 April 2007 --------------------------------->Accumulateddepreciation


Company Cost Valuation loss amountRM RM RM RM


163,067,233 36,886,751 (57,155,500) 142,798,484

Freehold land and buildings of the Group and of the Company were revalued by the Directors during the financial yearended 30 April 2005 based on valuations carried out by an independent professional valuer on the open market value basis.

The net book value of properties of the Company of which documents of title have not yet been issued as at 30 April 2008amounted to RM23,630,568.



Had the revalued assets been carried at cost less accumulated depreciation, the carrying amounts would have been asfollows:

Accumulated Net bookGroup Cost depreciation value2008 RM RM RM

Freehold land 7,780,516 – 7,780,516Buildings 32,224,036 (4,619,765) 27,604,271

40,004,552 (4,619,765) 35,384,787

2007


40,004,552 (3,975,285) 36,029,267

Company2008


38,013,914 (4,559,283) 33,454,631

2007


38,013,914 (3,922,866) 34,091,048

8. PREPAID LEASE PAYMENTS FOR LAND

Balance Amortisation Balanceas at charged for as at

Group 1.5.2007 the year 30.4.2008RM RM RM

Carrying amount

Leasehold land 4,857,304 (98,479) 4,758,825


8. PREPAID LEASE PAYMENTS FOR LAND (CONT’D)

Balance Amortisation Balanceas at charged for as at

1.5.2006 the year 30.4.2007RM RM RM

Group

Carrying amount

Leasehold land 4,948,649 (91,345) 4,857,304

Analysed as:

Group2008 2007RM RM

Long term leasehold land 2,120,833 2,143,952Short term leasehold land 2,637,992 2,713,352

4,758,825 4,857,304

Balance Amortisation Balanceas at charge for as at

1.5.2007 the year 30.4.2008RM RM RM

Company

Carrying amount

Leasehold land 4,602,649 (95,803) 4,506,846

Balance Amortisation Balanceas at charge for as at

1.5.2006 the year 30.4.2007RM RM RM

Company

Carrying amount

Leasehold land 4,691,320 (88,671) 4,602,649

Analysed as:

Company2008 2007RM RM

Long term leasehold land 1,868,854 1,889,297Short term leasehold land 2,637,992 2,713,352

4,506,846 4,602,649

The leasehold land of the Group and of the Company were revalued by the Directors during the financial year ended30 April 2005 based on valuations carried out by an independent professional valuer on the open market value basis.


9. INTANGIBLE ASSETS

Balance Balanceas at as at

Group 1.5.2007 Additions 30.4.2008RM RM RM

Carrying amount

Trademark – 16,159 16,159

<--------------- As at 30.4.2008 --------------->

Accumulated CarryingCost impairment amountRM RM RM

Trademark 16,159 – 16,159

The transfer of title of the trademark to the Group has not yet been completed as at 30 April 2008.

10. INVESTMENTS IN SUBSIDIARIES


Unquoted shares – at cost 1,325,896 1,334,356Less: Impairment losses – (8,462)

1,325,896 1,325,894

The subsidiaries are as follows:

Effectiveinterest Voting

Country of in equity power heldName of Company incorporation 2008 2007 2008 2007 Principal activities

ALBE Marketing Sdn. Bhd. Malaysia 100% 100% 100% 100% Marketing and trading ofaluminium hardware and fittings

Rank Metal Sdn. Bhd. Malaysia 100% 100% 100% 100% Property holding

ALBE Metal Sdn. Bhd. Malaysia 100% 100% 100% 100% Trading of aluminium sheets andother metal products

Omega Pesona Sdn. Bhd. Malaysia 100% 100% 100% 100% Property holding

* LB Aluminium (Sarawak) Malaysia 100% – 100% – DormantSdn. Bhd.

* LB Aluminium (Singapore) Singapore 100% 100% 100% 100% Retail and trading of aluminiumPte. Ltd. extrusion and accessories


10. INVESTMENTS IN SUBSIDIARIES (CONT’D)

Subsidiaries which are under liquidation and are not consolidated

Effectiveinterest

Country of in equityName of Company incorporation 2008 2007 Date placed under liquidation

* Albe Group (Thailand) Co. Ltd. Thailand 49% 49% 29 February 2008* LB Aluminium (Thailand) Co. Ltd. Thailand 74% 74% 29 February 2008

* Subsidiary not audited by BDO Binder.

(a) Liquidation and deconsolidation of subsidiaries

Two subsidiaries, Albe Group (Thailand) Co. Ltd. and LB Aluminium (Thailand) Co. Ltd. have been placed undermembers’ voluntary liquidation of which liquidation date have been registered on 29 February 2008. Consolidatedfinancial statements did not include these two subsidiaries with effect from the date when the subsidiaries wereliquidated.

The deconsolidation of these subsidiaries has no material effects on the financial results of the Group for the financialyear.

The net assets of the subsidiaries were as follows:

GroupAs at date of

liquidation anddeconsolidation

RM

Current assets 34,853Current liabilities (4,057)

Decrease in Group net assets/Deficit arising from deconsolidation of subsidiaries 30,796

Cash outflow arising on deconsolidation:Cash and bank balances of deconsolidated subsidiaries 32,820


10. INVESTMENTS IN SUBSIDIARIES (CONT’D)

(b) Acquisition of a subsidiary

On 7 April 2008, the Company acquired two (2) ordinary shares of RM1.00 each in LB Aluminium (Sarawak) Sdn. Bhd.,a company incorporated in Malaysia representing 100% equity interest for a cash consideration of RM2.00.

The acquisition has no impact on the financial results of the Group.

The summary of effects on acquisition of the subsidiary during the financial year is as follows:

Fair valueAcquiree’s recognisedcarrying onamount acquisition

RM RM

Cash in hand/Net asset/Total cost of acquisition 2 2

The cash outflow on acquisition is as follows:

2008RM

Purchase consideration settled in cash 2Cash in hand (2)

Net cash outflow of the Group on acquisition –

There were no acquisition in the financial year ended 30 April 2007.

11. INVESTMENT IN AN ASSOCIATE

Group Company2008 2007 2008 2007RM RM RM RM

Unquoted shares, at cost 11,107,994 11,107,994 11,107,994 11,107,994Share of post acquisition retained earnings 325,426 2,076,886 – –

11,433,420 13,184,880 11,107,994 11,107,994


11. INVESTMENT IN AN ASSOCIATE (CONT’D)

The summarised financial information of the associate is as follows:

Group2008 2007RM RM

Assets and liabilitiesTotal assets 35,397,128 36,645,178Total liabilities 6,434,400 3,728,945

ResultsRevenue 12,417,096 22,392,088(Loss)/Profit for the financial year (4,378,650) 175,037

The details of the associate are as follows:

Interest inequity held

Country of by CompanyName of company incorporation 2008 2007 Principal activity

CallTime Technology Sdn. Bhd. Malaysia 40% 40% Development, distribution andmaintenance of IP TelephoneTechnology

The results of CallTime Technology Sdn. Bhd. has been accounted for based on the unaudited management financialstatements for the financial year ended 30 April 2008.

12. OTHER INVESTMENTS

Group and Company2008 2007RM RM

Non-current

Quoted shares in Malaysia, at cost 1,000,000 1,000,000Unquoted shares in Malaysia, at cost 750,000 750,000

1,750,000 1,750,000

Market value of quoted shares 580,000 780,000


13. INVENTORIES


At cost

Finished and trading goods 34,152,750 32,342,168 30,549,441 28,748,871Raw materials 10,539,446 19,736,786 10,539,446 19,736,786Consumables 1,771,841 1,764,762 1,771,841 1,764,762

46,464,037 53,843,716 42,860,728 50,250,419

14. TRADE AND OTHER RECEIVABLES


Trade receivables

Third parties 84,637,074 77,085,883 73,504,126 67,972,472Subsidiaries – – 8,697,490 9,013,540

84,637,074 77,085,883 82,201,616 76,986,012Less: Allowance for doubtful debts (2,296,511) (2,169,122) (2,105,813) (2,014,394)Less: Effect of movement in exchange rate (714) – – –

Trade receivables, net 82,339,849 74,916,761 80,095,803 74,971,618

Other receivables

Associate 10,404 – 10,404 –Other receivables 1,862,651 1,304,087 1,861,428 1,302,760Deposits 323,927 343,474 282,362 292,217Prepayments 995,641 775,260 957,514 726,910

3,192,623 2,422,821 3,111,708 2,321,887

85,532,472 77,339,582 83,207,511 77,293,505

(a) The credit terms offered by the Group and the Company in respect of trade receivables range from 7 days to 90 daysfrom the date of invoice.

(b) Amounts owing by subsidiaries represent advances, payments made on behalf and balances arising from normal tradetransactions which are unsecured, interest-free and repayable on demand.

(c) Amounts owing by associate represents payment made on behalf which is unsecured, interest-free and repayable ondemand.


15. SHARE CAPITAL

Group and CompanyNumber Par

2008 of shares value RM

Ordinary shares

Authorised:

Balance as at 1 May 2007/30 April 2008 600,000,000 0.50 300,000,000

Issued and fully paid:

Balance as at 1 May 2007/30 April 2008 248,474,334 0.50 124,237,167

2007

Ordinary shares

Authorised:

Balance as at 1 May 2006 300,000,000 1.00 300,000,000Subdivision of 1:2 300,000,000 – –

Balance as at 30 April 2007 600,000,000 0.50 300,000,000

Issued and fully paid:

Balance as at 1 May 2006 124,237,167 1.00 124,237,167Subdivision of 1:2 124,237,167 – –

Balance as at 30 April 2007 248,474,334 0.50 124,237,167

16. RESERVES


Non-distributable:Share premium 1,525,708 1,525,708 1,525,708 1,525,708Revaluation reserves 4,352,414 4,212,035 4,298,374 4,157,995Exchange translation reserve 81,006 (13,135) – –

5,959,128 5,724,608 5,824,082 5,683,703Distributable:Retained earnings 55,697,130 39,772,028 46,750,922 31,998,528

61,656,258 45,496,636 52,575,004 37,682,231


16. RESERVES (CONT’D)

Effective 1 January 2008, the Company is given the option to make an irrecoverable election to move to a single tier systemor continue to use its tax credit under Section 108 of the Income Tax Act, 1967 for the purpose of dividend distributionuntil the tax credit is fully utilised or latest by 31 December 2013. The Company has elected to continue to use its taxcredit under Section 108 of the Income Tax Act, 1967.

Subject to the agreement of the Inland Revenue Board, the Company has:

(a) tax exempt accounts of approximately RM63,076,000 (2007: RM57,840,000) available for distribution of tax exemptdividends; and

(b) sufficient tax credit under Section 108 of the Income Tax Act, 1967 and balance in the tax exempt accounts to frankand distribute the entire retained earnings as at 30 April 2008 as dividends without incurring any additional tax liability.

17. BANK BORROWINGS (UNSECURED)


Current liabilities

Bank overdrafts (Note 29) 1,841,656 2,468,447 791,060 1,706,037Bankers’ acceptances 5,000,000 22,750,000 5,000,000 22,750,000Import foreign currency loans 12,454,748 – 12,454,748 –Term loans (Note 18) 24,000,000 4,000,000 24,000,000 4,000,000

43,296,404 29,218,447 42,245,808 28,456,037

Non-current liabilities

Term loans (Note 18) 30,000,000 54,000,000 30,000,000 54,000,000

Total borrowings

Bank overdrafts 1,841,656 2,468,447 791,060 1,706,037Bankers’ acceptances 5,000,000 22,750,000 5,000,000 22,750,000Import foreign currency loans 12,454,748 – 12,454,748 –Term loans 54,000,000 58,000,000 54,000,000 58,000,000

73,296,404 83,218,447 72,245,808 82,456,037

As at 30 April 2008, the Group and the Company has undrawn bank overdraft facilities amounting to RM7,745,794 andRM6,645,794 (2007: RM10,481,553 and RM5,543,963) respectively.

The import foreign currency loans comprised trust receipts and trade loans which has a credit term ranging from 14 days to180 days.


18. TERM LOANS (UNSECURED)


Term loans repayable in full upon the expiry of the facility as follows:

Term loan I, expiring on 6 June 2007 – 2,000,000

Term loans II and III, expiring on 6 June 2008 22,000,000 22,000,000

Term loan IV, expiring on 6 June 2009 2,000,000 2,000,000

Term loan V, expiring on 6 June 2010 14,000,000 14,000,000

Term loan VI, repayable by four annual instalments of RM1,000,000and final instalment of RM6,000,000 commencing 25 January 2007 8,000,000 9,000,000

Term loan VII, repayable by four annual instalments of RM1,000,000and final instalment of RM6,000,000 commencing 24 April 2007 8,000,000 9,000,000

54,000,000 58,000,000

Repayable as follows:

Current liabilities:– not later than one year 24,000,000 4,000,000

Non-current liabilities:– later than one year and not later than five years 30,000,000 54,000,000

54,000,000 58,000,000

19. WARRANTS 2000/2010

Group and Company

The Company, under a Trust Deed dated 25 May 2000 issued RM50,000,000 nominal amount of 3.5% RedeemableUnsecured Bonds 2000/2005 (“Bonds”) together with 32,650,333 detachable warrants at 100% of the nominal amount ofthe Bonds (“Warrants”) to a primary subscriber structured on a “bought deal” basis.

The Warrants were immediately detached from the Bonds and offered by the primary subscriber to shareholders of theCompany on a renounceable basis of one (1) warrant for every two (2) existing ordinary shares held at a price of 33 senper warrant.


19. WARRANTS 2000/2010 (CONT’D)

Group and Company

The principal characteristics of the Warrants are as follows:

(a) The Warrants are constituted by a Deed Poll executed by the Company on 25 May 2000 and a Supplemental Deed Pollon 31 October 2003, a Second Supplemental Deed Poll on 28 July 2004 and a Third Supplemental Deed Poll on30 March 2007.

(b) The Warrants may be exercised at any time on or before the maturity date falling five (5) years from the date of issueof the Warrants (or such period as may be extended in accordance with the provisions of the Deed Poll) on 7 June2000 (“Exercise Period”). On 31 October 2003, the Exercise Period of the Warrants was extended by five years from 8June 2005 to expire on 7 June 2010. Warrants not exercised during the Exercise Period will thereafter lapse and ceaseto be valid.

Pursuant to the bonus issue of three (3) new ordinary shares of RM1.00 each for every four (4) existing ordinary sharesof RM1.00 each held (“Bonus Issue”) which was completed in September 2004, additional new Warrants were issuedto warrantholders of the Company in accordance with the provisions of the aforesaid Deed Poll and Supplemental DeedPolls.

Pursuant to the subdivision of one (1) ordinary share of RM1.00 each into two (2) new ordinary shares of RM0.50 eachwhich was completed on 30 April 2007, additional new Warrants were issued to warrantholders of the Company inaccordance with the provisions of the aforesaid Deed Poll and Supplemental Deed Polls.

The number of Warrants not exercised at the end of the financial year amounted to 114,276,164.

(c) Each Warrant entitles the registered holder during the Exercise Period to subscribe for one (1) new ordinary share in thecapital of the Company of par value RM1.00 at RM2.30 per ordinary share (“Exercise Price”) which is subject toadjustments under the provisions set out in the Deed Poll.

On 2 September 2004, the exercise price of the Warrant of RM2.30 was adjusted to RM1.32 in accordance with theprovisions of the Deed Poll and Supplemental Deed Polls.

The exercise price of the Warrants of RM1.32 was further adjusted for the effect of the subdivision of one (1) ordinaryshare of RM1.00 each into two (2) ordinary shares of RM0.50 each during the financial year 2007 to RM0.66 inaccordance with the provisions of the Deed Poll and Supplemental Deed Polls.

(d) The Warrants were issued in registered form and subsequently credited into the relevant CDS account(s) andseparately listed on Bursa Malaysia Securities Berhad. The Warrants shall be transferable in the manner provided underthe Securities Industry (Central Depositories) Act, 1991 and Rules of Bursa Malaysia Depository Sdn. Bhd..

(e) The registered holder of the Warrant shall pay cash for the Exercise Price when subscribing for new ordinary shares inthe Company.

(f) The new ordinary shares of RM0.50 each to be issued upon exercise of the Warrants, upon allotment and issue, shallrank pari passu in all respects with the then existing issued ordinary shares of the Company, except that the newordinary shares will not be entitled to any dividends, rights, allotments or other distributions declared or otherwisedistributed, for which the record date is before the exercise date of the Warrants and any dividends declared in respectof the financial period immediately preceding the date of allotment and issue of the new ordinary shares.


20. DEFERRED TAX

(a) The deferred tax assets and liabilities are made up of the following:


At 1 May 2007/2006 19,822,099 18,940,337 19,774,535 18,848,835

Reversal of deferred taxon revaluation reserves (140,379) (40,629) (140,379) –

Exchange differences 126 (67) – –Recognised in the incomestatement (Note 26) (1,294,780) 922,458 (1,295,372) 925,700

At 30 April 18,387,066 19,822,099 18,338,784 19,774,535

Presented after appropriate offsetting:Deferred tax assets (543,902) (419,491) (543,902) (419,491)Deferred tax liabilities 18,930,968 20,241,590 18,882,686 20,194,026

18,387,066 19,822,099 18,338,784 19,774,535

(b) The components and movement of deferred tax liabilities and assets during the financial year prior to offsetting are asfollows:

Deferred tax liabilities of the Group

Revaluationof freehold

Property, and leaseholdplant and land andequipment buildings Total

RM RM RM

At 1 May 2007 19,070,057 1,171,533 20,241,590Reversal of deferred tax on revaluation reserves – (140,379) (140,379)Exchange differences 126 – 126Recognised in the income statement (1,212,071) 41,702 (1,170,369)

At 30 April 2008 17,858,112 1,072,856 18,930,968

At 1 May 2006 18,132,894 1,285,841 19,418,735Reversal of deferred tax on revaluation reserves – (40,629) (40,629)Exchange differences (67) – (67)Recognised in the income statement 937,230 (73,679) 863,551

At 30 April 2007 19,070,057 1,171,533 20,241,590


20. DEFERRED TAX (CONT’D)

(b) The components and movement of deferred tax liabilities and assets during the financial year prior to offsetting are asfollows: (cont’d)

Deferred tax assets of the Group

ProvisionsRM

At 1 May 2007 419,491Recognised in the income statement 124,411

At 30 April 2008 543,902

At 1 May 2006 478,398Recognised in the income statement (58,907)

At 30 April 2007 419,491

Deferred tax liabilities of the CompanyRevaluationof freehold

Property, and leaseholdplant and land andequipment buildings Total

RM RM RM

At 1 May 2007 19,046,990 1,147,036 20,194,026Reversal of deferred tax on revaluation reserve – (140,379) (140,379)Recognised in the income statement (1,214,216) 43,255 (1,170,961)

At 30 April 2008 17,832,774 1,049,912 18,882,686

At 1 May 2006 18,094,697 1,218,666 19,313,363Recognised in the income statement 952,293 (71,630) 880,663

At 30 April 2007 19,046,990 1,147,036 20,194,026

Deferred tax assets of the Company

ProvisionsRM

At 1 May 2007 419,491Recognised in the income statement 124,411

At 30 April 2008 543,902

At 1 May 2006 464,528Recognised in the income statement (45,037)

At April 2007 419,491


21. TRADE AND OTHER PAYABLES


Trade payables 18,656,148 12,123,367 18,233,053 11,863,516

Other payables 8,536,588 8,556,649 8,305,965 8,400,911Accruals 7,338,639 6,173,979 6,903,042 5,626,910Progress claims and retention payable 105,754 118,954 105,754 118,954Deposits received 1,843,001 2,021,852 1,841,730 2,020,616

17,823,982 16,871,434 17,156,491 16,167,391

36,480,130 28,994,801 35,389,544 28,030,907

The credit terms available to the Group and the Company in respect of trade payables range from 7 days to 90 days fromdate of invoice.

22. REVENUE


Sale of goods 354,469,107 318,872,209 342,462,485 307,598,390

23. COST OF SALES


Inventories sold 301,043,146 273,738,500 295,362,877 267,137,735

24. FINANCE COSTS


Interest expense on:– bankers’ acceptances 792,435 857,541 783,929 848,884– bank overdrafts 59,977 125,941 18,934 99,315– import foreign currency loans 37,926 – 37,926 –– term loans 2,721,109 2,907,237 2,721,109 2,907,237

3,611,447 3,890,719 3,561,898 3,855,436


25. PROFIT BEFORE TAX


Profit before tax is arrived at after charging:

Amortisation of prepaid lease paymentsfor land (Note 8) 98,479 91,345 95,803 88,671

Allowance for doubtful debts 130,447 1,815,427 91,419 1,727,122Auditors’ remuneration:– current year 82,426 69,629 54,000 48,000– overprovision in prior year (2,600) (5,841) (3,000) (9,300)Bad debts written off – – – 324,033Depreciation of property, plant andequipment (Note 7) 13,392,625 10,925,551 13,291,338 10,820,224

Directors’ remuneration:– fees 126,000 144,000 126,000 144,000– emoluments other than fees 1,786,651 1,803,410 1,786,651 1,698,123Property, plant and equipment written off 1,434,655 203,278 1,434,655 161,769Impairment loss on investments in subsidiaries – – – 8,462Realised loss on foreign exchange 342,820 122,041 341,294 129,023Unrealised loss on foreign exchange 286,037 – 286,037 –Rental of premises:– paid to a company in which a Director

has an interest 60,000 60,000 60,000 60,000– paid to third parties 371,594 282,708 216,293 176,841Rental of office equipment 731 – – –Rental of cyclinder 9,768 4,865 9,768 4,865Rental of forklift 136,830 71,280 136,830 71,280

And crediting:

Allowance for doubtful debts no longerrequired 3,058 100 – –

Bad debts recovered – 4,071 – 4,071Fixed deposits interest income 282,223 265,547 282,223 263,430Gain on disposal of property, plant andequipment 74,499 164,507 74,499 161,608

Rental income 54,500 70,600 54,500 70,600Dividend income from quoted sharesin Malaysia 35,000 35,000 35,000 35,000

The estimated monetary value of benefits-in-kind received by the Directors otherwise than in cash from the Group and theCompany amounted to RM88,550 and RM88,550 (2007: RM88,550 and RM88,550) respectively.


26. TAX EXPENSE


Current tax expense based onprofit for the financial year:

Malaysian income tax 2,007,089 1,218,188 1,662,349 921,135Foreign income tax 316,697 111,504 – –

2,323,786 1,329,692 1,662,349 921,135Over provision in prior years:Malaysian income tax (63,361) (214,390) (41,491) (222,213)

2,260,425 1,115,302 1,620,858 698,922Deferred tax (Note 20):Relating to origination and reversalof temporary differences 106,063 1,108,998 105,471 1,112,240

Relating to changes in tax rate (689,056) (1,405,362) (687,337) (1,403,243)Relating to crystallisation ofrevaluation surplus (22,112) (26,858) (21,724) (26,726)

(Over)/Underprovision in prior years (689,675) 1,245,680 (691,782) 1,243,429

(1,294,780) 922,458 (1,295,372) 925,700

Total tax expense 965,645 2,037,760 325,486 1,624,622

The Malaysian income tax is calculated at the statutory tax rate of 26% (2007: 27%) of the estimated taxable profit for thefiscal year. The Malaysian statutory tax rate will be reduced to 26% from the previous year’s rate of 27% for the fiscal yearof assessment 2008, to 25% for the fiscal year of assessment 2009 onwards. The computation of deferred tax as at30 April 2008 has reflected these changes.

Tax expense for other taxation authorities are calculated at the rates prevailing in those respective jurisdictions.


26. TAX EXPENSE (CONT’D)

The numerical reconciliation between the average effective tax rate and the applicable tax rate of the Group and of theCompany are as follows:

Group Company2008 2007 2008 2007

% % % %

Applicable tax rate 26.0 27.0 26.0 27.0

Tax effect in respect of:

Non-allowable expenses 4.4 3.9 2.4 3.9Tax incentive – double deduction of expenses (0.2) (0.3) (0.2) (0.4)Tax exempt income (0.3) (1.4) – –Reinvestment allowance incentive (17.4) (12.7) (19.1) (15.1)Lower tax rates in foreign jurisdiction (0.8) (0.6) – –Reduction in statutory tax rate on firstRM500,000 chargeable income for certainMalaysian subsidiaries (0.3) (0.4) – –

Effect of changes in tax rate of deferred tax (3.2) (9.0) (3.5) (10.7)Crystallisation of deferred tax on revaluationsurplus (0.1) (0.2) (0.1) (0.2)

8.1 6.3 5.5 4.5(Over)/Under provision in prior years (3.6) 6.6 (3.8) 7.8

Average effective tax rate 4.5 12.9 1.7 12.3

Subject to the agreement of the Inland Revenue Board, the Company has unutilised reinvestment allowance amounting toapproximately RM23,681,000 (2007: RM31,277,000) available for set-off against future taxable income.

27. EARNINGS PER ORDINARY SHARE

(a) Basic

Basic earnings per ordinary share for the financial year is calculated by dividing the profit for the financial yearattributable to ordinary equity holders of the Company by the number of ordinary shares in issue during the financialyear.

Group2008 2007

Profit attributable to equity holders of the Company 20,273,397 13,663,132

Number of ordinary shares in issue 248,474,334 248,474,334

Basic earnings per ordinary share (sen) 8.16 5.50

(b) Diluted

Diluted earnings per ordinary share for the financial year is calculated by dividing the profit for the financial yearattributable to ordinary equity holders of the Company by the number of ordinary shares outstanding during thefinancial year adjusted for the effects of dilutive potential ordinary shares.

Diluted earnings per ordinary share is not shown as the effect of the exercise of the Company’s warrants is antidilutive.


28. DIVIDENDS


First and final tax exempt dividend paid inrespect of previous financial year 4,348,295 4,348,295

A first and final tax exempt dividend of 1.75 sen per ordinary share based on the issued and paid up share capital ofRM124,237,167 comprising 248,474,334 ordinary shares of RM0.50 each in respect of the financial year ended 30 April2007 has been approved by shareholders at the Annual General Meeting on 30 October 2007. The dividend amounted toRM4,348,295 was paid on 9 November 2007 and had been accounted for as an appropriation of retained earnings in thefinancial year ended 30 April 2008.

A first and final tax exempt dividend of 1.75 sen per ordinary share based on the issued and paid up share capital ofRM124,237,167 comprising 248,474,334 ordinary shares of RM0.50 each in respect of the financial year ended 30 April2008 has been proposed by the Directors after the balance sheet date for shareholders’ approval at the forthcoming AnnualGeneral Meeting. The financial statements for the current financial year do not reflect this proposed dividend. This dividendamounted to RM4,348,301, if approved by shareholders, will be accounted for as an appropriation of retained earnings inthe financial year ending 30 April 2009.

29. CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts:


Cash and bank balances 5,363,611 1,098,744 3,550,505 671,474Short term deposits with licensed banksand finance companies 12,899,265 2,000,000 12,899,265 2,000,000

Bank overdrafts (Note 17) (1,841,656) (2,468,447) (791,060) (1,706,037)

16,421,220 630,297 15,658,710 965,437

30. CONTINGENT LIABILITIES – UNSECURED


Corporate guarantee in respect of banking facilities utilised by a subsidiary 1,051,000 762,000Corporate guarantee in respect of goods supplied to a subsidiary 60,000 122,000

1,111,000 884,000


31. CAPITAL COMMITMENTS


Commitments for capital expenditure in respectof property, plant and equipment:

Authorised but not contracted for 89,000 1,160,000 89,000 1,160,000Contracted but not provided for 2,587,000 2,495,000 2,587,000 2,495,000

2,676,000 3,655,000 2,676,000 3,655,000

32. SEGMENTAL INFORMATION

(a) Reporting format

The primary segment reporting format is determined to be geographical segments.

The secondary segment report by business activities has not been prepared as the Group is principally engaged only inthe manufacturing and trading of aluminium products.

(b) Allocation basis

A segment with a majority of operating income earned from providing products or services to external clients andwhose operating income, results or assets are 10 percent or more of all the segments is reported separately.

Segment results, assets and liabilities include items that are directly attributable to a segment as well as those that canbe allocated on a reasonable basis.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected tobe used for more than one period.

(c) Geographical segments

The Group operates mainly in Malaysia. The revenue disclosed in geographical segments are based on the geographicallocation of customers. Segment assets and capital expenditure are based on the geographical location of assets.

The following tables provide an analysis of the Group’s revenue, results, asset, liabilities and other information bygeographical segment.

Malaysia Singapore Others Elimination Total2008 RM RM RM RM RM

RevenueExternal sales 264,885,279 29,962,921 59,620,907 – 354,469,107Inter-segment sales 4,387,099 26,479,707 – (30,866,806) –

Total revenue 269,272,378 56,442,628 59,620,907 (30,866,806) 354,469,107


32. SEGMENTAL INFORMATION (CONT’D)

(c) Geographical segments (cont’d)

Malaysia Singapore TotalRM RM RM

ResultsSegment results 20,920,095 2,070,407 22,990,502Share of loss in an associate (1,751,460) – (1,751,460)

Profit before tax 21,239,042Tax expense (965,645)

Net profit for the financial year 20,273,397

AssetsSegment assets 291,689,686 11,275,582 302,965,268Investment in an associate 11,433,420

Total assets 314,398,688

LiabilitiesSegment liabilities 108,562,501 1,214,033 109,776,534Unallocated corporate liabilities 18,728,729

Total liabilities 128,505,263

Other segment informationCapital expenditure 13,460,422 3,166 13,463,588Depreciation of property, plant and equipment 13,351,443 41,182 13,392,625Amortisation of prepaid lease payments for land 98,479 – 98,479

Singapore,Thailand

Malaysia and others Elimination Total2007 RM RM RM RM

RevenueExternal sales 250,420,500 68,451,709 – 318,872,209Inter-segment sales 3,798,633 20,128,084 (23,926,717) –

Total revenue 254,219,133 88,579,793 (23,926,717) 318,872,209


32. SEGMENTAL INFORMATION (CONT’D)

(c) Geographical segments (cont’d)

Singaporeand

Malaysia Thailand TotalRM RM RM

ResultsSegment results 14,725,282 905,595 15,630,877Share of profit in an associate 70,015 – 70,015

Profit before tax 15,700,892Tax expense (2,037,760)

Net profit for the financial year 13,663,132

AssetsSegment assets 285,160,745 3,556,492 288,717,237Investment in an associate 13,184,880

Total assets 301,902,117

LiabilitiesSegment liabilities 111,360,547 852,701 112,213,248Unallocated corporate liabilities 19,955,066

Total liabilities 132,168,314

Other segment informationCapital expenditure 21,530,470 1,464,697 22,995,167Depreciation of property, plant and equipment 10,900,360 25,191 10,925,551Amortisation of prepaid lease payments for land 91,345 – 91,345

33. FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policies

The Group’s overall financial risk management objective is to optimise value creation for shareholders whilst minimisingthe potential adverse impact arising from fluctuations in foreign currency exchange and interest rates and theunpredictability of the financial markets.

The Group operates within an established risk management framework and clearly defined guidelines that are regularlyreviewed by the Board of Directors and does not trade in derivative financial instruments. Financial risk management iscarried out through risk review programmes. Internal control systems, insurance programmes and adherence to theGroup financial risk management policies. The Group is exposed mainly to foreign currency risk, liquidity risk, interestrate risk and credit risk. Information on the management of the related exposures are detailed below.

(i) Foreign currency risk

The Group has a significant overseas subsidiary, LB Aluminium (Singapore) Pte. Ltd. which operates in Singaporeand whose revenue and expenses are denominated exclusively in Singapore Dollar. The Group monitors themovement in foreign currency exchange rates closely to ensure their exposures are minimised.

The Group also has a significant investment in an associate, CallTime Technology Sdn. Bhd. (“CallTime”). CallTimeholds an investment in a company which is based in New Zealand which in turn wholly owned two operatingsubsidiaries in Australia and New Zealand respectively. The revenues and expenses of these subsidiaries aredenominated in Australia and New Zealand Dollars.


33. FINANCIAL INSTRUMENTS (CONT’D)

(a) Financial risk management objectives and policies (cont’d)

(i) Foreign currency risk (cont’d)

The Group also has transaction currency exposures. Such exposures arise from the purchases of raw materials andexport sales. However, as the Group’s transactions are substantially in US Dollars, to which the Ringgit Malaysia isstrengthening against, the Group has limited exposure to foreign currency transactions.

The net unhedged financial assets and liabilities of the Group and the Company that are not denominated in theirfunctional currencies are as follows:


Functional currency

Financial assets and liabilities not heldin functional currency

Trade receivablesAustralia Dollar 232,468 319,991 232,468 319,991Brunei Dollar 591,553 261,284 591,553 261,284Euro 450,214 90,430 450,214 90,430Singapore Dollar 8,201,901 6,649,775 107,551 24,290Sterling Pound 1,523,837 859,862 1,523,837 859,862United States Dollar 2,613,736 1,942,527 2,613,736 1,942,527

Short term deposits with licensed banksbank and financial companies

Sterling Pound 4,399,265 – 4,399,265 –

Cash and bank balancesAustralia Dollar 7,300 25,879 7,300 25,879Euro 55,447 43,509 55,447 43,509Renminbi 646 8,926 646 8,926Singapore Dollar 188,453 164,648 67,585 46,948Sterling Pound 14,859 325 14,859 325Thailand Baht 668 129,833 668 413United States Dollar 2,133,619 500,264 2,133,619 500,264Others 8,225 7,544 8,225 7,544

Trade payablesUnited States Dollar 6,696,485 8,732,610 6,696,485 8,732,618Singapore Dollars 109,063 – – –Euro 58,923 – 58,923 –Japanese Yen 215,988 – 215,988 –NT(Taiwan) 5,411 – 5,411 –

Import foreign currency loansUnited States Dollar 12,454,748 – 12,454,748 –




(ii) Interest rate risk

The Group ensures that it obtains borrowings and places short term deposits at competitive rates under the mostfavourable terms and conditions. Currently, the major component of the Group’s borrowings is the RM54.0million term loans that bear fixed interest at rates ranging from 4.61% to 5.35% per annum.

The Group is also exposed to interest rate risk in respect of its short-term deposits with licensed banks andfinance companies.

The following tables set out the carrying amounts, the weighted average effective interest rates as at the balancesheet date and the remaining maturities of the Group’s and the Company’s financial instruments that are exposedto interest rate risk:

Weightedaverageeffectiveannualinterest Within 1 – 2 2 – 3 3 – 4 4 – 5

Group rate 1 year years years years years TotalAt 30 April 2008 % RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Fixed ratesFixed deposits 4.15 12,899 – – – – 12,899Term loans 4.79 24,000 4,000 26,000 – – 54,000

Floating ratesBank overdrafts 6.68 1,842 – – – – 1,842Bankers’ acceptances 3.81 5,000 – – – – 5,000Import foreign currency loans 3.09 12,455 – – – – 12,455

At 30 April 2007

Fixed ratesFixed deposits 3.20 2,000 – – – – 2,000Term loans 4.90 4,000 24,000 4,000 26,000 – 58,000

Floating ratesBank overdrafts 7.35 2,468 – – – – 2,468Bankers’ acceptances 3.59 22,750 – – – – 22,750




(ii) Interest rate risk (cont’d)

Weightedaverageeffectiveannualinterest Within 1 – 2 2 – 3 3 – 4 4 – 5

Company rate 1 year years years years years TotalAt 30 April 2008 % RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Fixed ratesFixed deposits 4.15 12,899 – – – – 12,899Term loans 4.79 24,000 4,000 26,000 – – 54,000

Floating ratesBank overdrafts 7.25 791 – – – – 791Bankers’ acceptances 3.81 5,000 – – – – 5,000Import foreign currency loans 3.09 12,455 – – – – 12,455

At 30 April 2007

Fixed ratesFixed deposits 3.20 2,000 – – – – 2,000Term loans 4.90 4,000 24,000 4,000 26,000 – 58,000

Floating ratesBank overdrafts 7.35 1,706 – – – – 1,706Bankers’ acceptances 3.59 22,750 – – – – 22,750

(iii) Liquidity risk

The Group monitors its cash flow position actively and maintains sufficient cash balances and credit facilities tomeet its working capital requirements and other obligations as and when they fall due.

(iv) Credit risk

Credit risk is managed through the application of credit approvals covering credit limits and credit terms followedby close monitoring of all receivables. Credit approvals are given after careful evaluation of customers’ financialrecords and credit history. Personal guarantees from directors, proprietors and promoters as well as financialguarantees are sought from customers where appropriate.

As at balance sheet date, there is no concentration of credit risk. The carrying amounts of receivables as shownin the financial statements represent the maximum credit exposure of the Group.


(b) Fair values

The carrying amounts of the financial instruments of the Group and the Company as at the balance sheet dateapproximate their fair values due to relatively short term maturity of the financial instruments except as set out below:

Group and CompanyCarrying Fairamount value

RM RM

As at 30 April 2008

Other investments– Quoted shares 1,000,000 580,000– Unquoted shares, in Malaysia 750,000 #Term loans 54,000,000 53,612,500

As at 30 April 2007

Other investments– Quoted shares 1,000,000 780,000– Unquoted shares 750,000 #Term loans 58,000,000 56,675,948

# It is not practical to estimate the fair value of the unquoted investments because of the lack of quoted marketprices and the inability to estimate fair value without incurring excessive costs. The Directors believe that thecarrying amount represents the recoverable value.

The methods and assumptions used by management to determine fair value of the financial instruments are as follows:

(i) The carrying values of the financial assets and financial liabilities maturing within 12 months approximate their fairvalues due to the relatively short term maturity of these financial instruments.

(ii) The fair values of quoted investments are their quoted market prices at the balance sheet date.

(iii) The fair values of the term loans are estimated by discounting the future contractual cash flows at current marketinterest rate available to the Group and on assumptions that are based on market conditions existing at balancesheet date.

34. RELATED PARTY DISCLOSURES

(a) Identities of related parties

Parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the partyor exercise significant influence over the party in making financial and operating decisions, or vice versa, or where theGroup and the party are subject to common control or common significant influence. Related parties may beindividuals or other entities.

The Company has controlling related party relationship with its subsidiaries.



34. RELATED PARTY DISCLOSURES (CONT’D)

(b) In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had thefollowing transactions with related parties during the financial year:


Sales of products to subsidiaries– LB Aluminium (Singapore) Pte. Ltd. – – 26,479,707 20,128,084– ALBE Metal Sdn. Bhd. – – 1,614,653 1,278,724– ALBE Marketing Sdn. Bhd. – – 509,635 651,586Purchases of products from subsidiaries– ALBE Marketing Sdn. Bhd. – – 1,131,565 970,151– ALBE Metal Sdn. Bhd. – – 1,129,320 898,162Rental of premises paid toRitecorp Sdn. Bhd. 60,000 60,000 60,000 60,000

The related party transactions described above were carried out on terms and conditions not materially different fromthose obtainable from transactions with unrelated parties.

The relationships between the Group and the related parties, other than those disclosed elsewhere in the financialstatements, are as follows:

Identities of related parties Relationship with the Group

Ritecorp Sdn. Bhd. A company in which a Director of the Company, Datuk Leow Chong Howa, hassubstantial interest

(c) Compensation of key management personnel

The remuneration of key management personnel during the financial year was as follows:


Directors’ remuneration– fees 126,000 144,000 126,000 144,000– emoluments other than fees 1,786,651 1,803,410 1,786,651 1,698,123

1,912,651 1,947,410 1,912,651 1,842,123


35. EMPLOYEE BENEFITS


Salaries, wages and bonuses 20,367,757 18,015,511 19,252,104 16,985,995Defined contribution retirement plan 1,741,693 1,628,266 1,626,384 1,525,807Other employee benefits 1,988,471 1,751,027 1,970,600 1,730,593

24,097,921 21,394,804 22,849,088 20,242,395

36. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR

(i) On 7 April 2008, the Company has acquired two (2) ordinary shares of RM1.00 each in LB Aluminium (Sarawak) Sdn.Bhd. representing 100% equity interest for a cash consideration of RM2.00.

(ii) Two subsidiaries, Albe Group (Thailand) Co. Ltd., and LB Aluminium (Thailand) Co. Ltd. have been placed undermembers’ voluntary winding-up of which dissolution date have been registered on 29 February 2008. The Group hasceased to consolidate the results of these subsidiaries in the financial year.

The effect of the above events on the Group’s financial statements are disclosed in Note 10 to the financial statements.


ApproximateAge of Land Net Book Value Date of

Building (Build up area) as at 30.4.2008 Revaluation/No. Location Year Tenure sq. ft. Description RM Acquisition*

1 Lot 11, Jalan Perusahaan 1 17 Leasehold 167,982 Factory complex: 9,601,888 30.4.2005Kawasan Perusahaan Beranang 99 years (101,624) Industrial land with43700 Beranang expiring on single storey factory,Selangor Darul Ehsan 9.10.2099 3 storey office block

and warehouse.

2 Lot No 2.08 11 Freehold 248,292 Anodising factory and } 21,764,153 30.4.2005Jalan Perindustrian Mahkota 2 (130,970) powder coating factory }Kawasan Perindustrian Mahkota }43700 Beranang }Selangor Darul Ehsan }

}3 Lot No. 2.11 7 Freehold – Metal Tee factory }

Jalan Perindustrian Mahkota 2 (11,840) }Kawasan Perindustrian Mahkota }43700 Beranang }Selangor Darul Ehsan }

}Lot No. 2.11 5 Freehold – 4-storey office building }Jalan Perindustrian Mahkota 2 (71,248) }Kawasan Perindustrian Mahkota }43700 Beranang }Selangor Darul Ehsan }

4 Lot No. 2.12 3 Freehold 87,120 Industrial land with } 6,966,772 30.4.2005Jalan Perindustrian Mahkota 2 (92,115) covered parking lot and }Kawasan Perindustrian Mahkota single storey factory }43700 Beranang }Selangor Darul Ehsan }

}5 Lot No. 2.13 3 Freehold 89,437 }

Jalan Perindustrian Mahkota 2 – }Kawasan Perindustrian Mahkota }43700 Beranang }Selangor Darul Ehsan }

6 Lot No. 2.13A 3 Freehold – Single storey warehouse 3,273,710 30.4.2005Jalan Perindustrian Mahkota 2 (46,830) annexed with 3-storeyKawasan Perindustrian Mahkota office43700 BeranangSelangor Darul Ehsan

7 Lot No. 2.46 1 Freehold 51,666 Single storey factory 2,579,534 27.6.2006*Jalan Perindustrian Mahkota 2 (24,664)Kawasan Perindustrian Mahkota43700 BeranangSelangor Darul Ehsan

8 No. 78, Jalan Sungei Besi 79 Freehold 2,140 An intermediate 2-storey 745,949 30.4.200557100 Kuala Lumpur 1 (4,060) pre-war shophouse

Rented out

list of properties




9 Lot 241 (PT 1075) 15 Leasehold 24,840 Land and factory 959,768 30.4.2005Tingkat Perusahaan 6 99 years (11,875) building, warehouseKawasan Perusahaan Perai expiring on13600 Perai, Pulau Pinang 21.2.2042

10 Lot 854, Section 66 22 Leasehold 43,562 A single storey industrial 1,601,707 30.4.2005Jalan Keluli 60 years (20,624) building with an adjoiningPending Industrial Estate expiring on warehouse and store93450 Kuching, Sarawak 31.12.2034

11 No. 4, Jalan IM3/6 9 Leasehold 44,844 A single storey warehouse 1,315,291 30.4.2005Kawasan Perindustrian Sektor 1 66 years (17,610) cum office buildingIndera Mahkota expiring onBandar Indera Mahkota 5.3.206225000 KuantanPahang Darul Makmur

12 Block C-18-1 10 Freehold – A corner office suite 676,606 30.4.2005Megan Avenue II (2,454) Corporate officeNo. 12, Jalan Yap Kwan Seng50450 Kuala Lumpur

13 Seri Mutiara Apartment 11 Freehold – An apartment suite 92,962 30.4.2005B-09-05, Jalan Persiaran Seri Alam (840) (1-bedroom)Bandar Baru Seri Alam Rented out81750 Masai, Johor

14 No. E-3-2, 3rd Floor 11 Freehold – 3-storey walk-up apartment 47,529 30.4.2005Taman Pangsapuri Malim (850) VacantBalai Panjang, 75250 Melaka

15 No. 360, Jalan Damai 2 6 Freehold 3,025 A single storey corner 93,687 30.4.2005Taman Damai (820) terraced house09400 Padang Serai, Kedah Vacant

16 No. 7, Jalan TTS 4/8 13 Leasehold 3,154 Single storey bungalow house 140,522 30.4.2005Taman Tasik Semenyih 99 years (1,275) Staff hostel43500 Semenyih expiring onSelangor Darul Ehsan 11.5.2094

17 No. 16, Jalan SP 10/1 5 Leasehold 1,650 Double storey terraced house 171,746 30.4.2005Section 10, Saujana Puchong 99 years (1,760) Vacant47100 Bandar Putra Permai expiring onSelangor Darul Ehsan 12.6.2091

18 No. 96, Lorong Machang Bubok 9 4 Freehold 1,195 Double storey terrace house 146,652 30.4.2005Taman Machang Bubok (1,729) Vacant14020 Bukit MertajamPulau Pinang




The properties leased by LB Aluminium Berhad and its subsidiaries are as follows:-

19 Lot PLO 206 (PTD64090) 15 Leasehold 21,775 Industrial land with 1,170,765 30.4.2005No. 14, Jalan Angkasa Mas 5 60 years (12,782) single storey factoryKawasan Perindustrian Tebrau II expiring on annexed with 3-storey office81100 Johor Bahru 14.4.2053Johor Darul Takzim 2

20 Lot PLO 207 (PTD64089) 11 Leasehold 21,775 Industrial land with 846,395 30.4.2005No. 18, Jalan Angkasa Mas 5 60 years (16,274) single storey factoryKawasan Perindustrian Tebrau II expiring on annexed with81100 Johor Bahru 14.4.2053 3-storey officeJohor Darul Takzim 2

The properties owned by subsidiary companies are as follows:

21 Lot No. 2.11 N/A Freehold 82,764 Industrial land 1,200,000 30.4.2005Jalan Perindustrian Mahkota 2 –Kawasan Perindustrian Mahkota43700 BeranangSelangor Darul Ehsan

22 No. 53, Jalan PBS 14/10 11 Leasehold 2,002 An intermediate 1 1/2 storey 332,244 30.4.2005Taman Perindustrian Bukit Serdang 99 years (2,678) terraced factory43300 Seri Kembangan expiring onSelangor Darul Ehsan 5.7.2100

23 No. 55, Jalan PBS 14/10 11 Leasehold 2,002 An intermediate 1 1/2 storey 377,297 30.4.2005Taman Perindustrian Bukit Serdang 99 years (2,678) terraced factory43300 Seri Kembangan expiring onSelangor Darul Ehsan 5.7.2100

24 Lot No. 2.13A N/A Freehold 89,437 Industrial land 1,200,000 30.4.2005Jalan Perindustrian Mahkota 2 –Kawasan Perindustrian Mahkota43700 BeranangSelangor Darul Ehsan

25 No. 11, Kaki Bukit Road 1 2 Leasehold – 1 storey shoplot 1,356,960 24.4.2006# 03-07 Eunos Technolink 60 years (3,100)Singapore 415939 expiring on

8.7.2056

Notes:

1 This property is affected by an order of the High Commission in Council dated 15 October 1952 under Section 4 of the Aerodromes (control ofobstruction) Ordinance 1950 which prohibits absolutely or conditionally or regulate the erection of any structure above a height specified in the order, orthe planning of any tree or other high growing vegetation, within a controlled area or any part of such area.

2 LB Aluminium Berhad has a 60 years lease from the registered proprietor, Johor Corporation, a body corporate established under the Johor CorporationEnactment 1995 to expire on 14 April 2053.


According to the registrar to be kept under Section 69L of the Companies Act, 1965, the following are the substantialshareholders of the Company:

No. Name No. of Shares %

1 Datuk Leow Chong Howa 74,846,406 30.122 Leow Sok Hoon 18,733,504 7.543 Leow Keng Soon 17,093,376 6.884 Leow Sok Hong 12,423,717 5.005 Leow Sok Yan 12,423,717 5.00

135,520,720 54.54

THE THIRTY LARGEST SHAREHOLDERS

No. Name No. of Shares %

1 Datuk Leow Chong Howa 74,846,406 30.122 Leow Sok Hoon 18,733,504 7.543 Leow Keng Soon 17,093,376 6.884 Leow Sok Hong 12,423,717 5.005 Leow Sok Yan 12,423,717 5.006 Leow Wei Seng 7,454,230 3.007 Mark Wing Kong 3,643,500 1.478 Tang Lean See 2,594,950 1.049 Leow Chong Fatt 2,540,000 1.0210 Gan Seong Liam 1,902,800 0.7711 Tan Kar Pin 1,817,834 0.7312 Chin Chee Wah 1,102,100 0.4413 Tan Wan Lay 997,000 0.4014 Ong Ken Sim 875,000 0.3515 Foong Wai Thim 844,866 0.3516 Yap Chee Woon 844,300 0.3417 Ng Choong Hon 823,066 0.3318 Loh Phoy Yen Holdings Sdn Bhd 631,050 0.2519 Poo Choo @ Ong Poo Choi 588,000 0.2420 RHB Nominees (Asing) Sdn Bhd – For Arthur Oon 504,000 0.2021 Tay Ying Lim @ Tay Eng Lim 500,800 0.2022 OSK Nominees (Tempatan) Sdn Berhad 500,000 0.20

– Pledged securities account for Koon Poh Tat

23 Lee Chin Poh 456,000 0.1824 Yoong Kuang Pin 451,000 0.1825 Lim Hui Huat @ Lim Hooi Chang 450,100 0.1826 Cheng Hon Sang 440,000 0.1827 Soo Cham Bock 439,000 0.1828 Lim Soon Huat 400,166 0.1629 Lee See Jin 394,800 0.1630 You Wong Su 380,000 0.15

167,095,282 67.24

substantial shareholdersas at 3 September 2008


No. Name Units of Warrant %

1 Datuk Leow Chong Howa 28,284,718 24.752 Leow Sok Hoon 19,824,950 17.35

48,109,668 42.10

THE THIRTY LARGEST WARRANTHOLDERS

No. Warrant Holders Units of Warrant %

1 Datuk Leow Chong Howa 28,284,718 24.752 Leow Sok Hoon 19,824,950 17.353 Tan Wan Lay 5,000,000 4.384 Abdul Shukor Bin Abu Bakar 1,271,700 1.115 Lim Siew Pheng 850,000 0.746 Mark Wing Kong 771,750 0.687 Amsec Nominees (Tempatan) Sdn Bhd 749,000 0.66

– Pledged securities account for Hee Yuen Sang

8 Chia See Huat 701,600 0.619 Thang Gek Hong 678,000 0.5910 Lim Tuck Chee 673,000 0.5911 Tang Lean See 642,700 0.5612 Hau Beng Han 600,000 0.5313 Chia Chu Foo 505,000 0.4414 Chong Cheong Fei 500,000 0.4415 TA Nominees (Tempatan) Sdn Bhd 500,000 0.44

– Pledged securities account for Wong Kon Lim

16 Lee Soon Yong 469,000 0.4117 Tee Kiam Heng 469,000 0.4118 Mayban Securities Nominees (Tempatan) Sdn Bhd 443,000 0.39

– Pledged securities account for Heng Poh Suan (R01-Margin)

19 Chu Chee Choon 435,000 0.3820 TA Nominees (Tempatan) Sdn Bhd 425,900 0.37

– Pledged securities account for Chong Kai Whye

21 Ong Ken Sim 402,500 0.3522 Low Peng Mooi 385,900 0.3423 Ng Yoke Kheng 338,000 0.3024 RHB Capital Nominees (Tempatan) Sdn Bhd 323,500 0.28

– Pledged securities account For Soo Kun Ching (T-131039)

25 Chew Lee Bee 312,600 0.2726 Tey Say Ek 306,700 0.2727 Lim Sew Hing 305,000 0.2728 Lee Kim Seng 300,000 0.2629 Loh Phoy Yen Holdings Sdn Bhd 297,500 0.2630 Chai Wai Kang 289,000 0.25

67,055,018 58.68

substantial warrantholdersas at 3 September 2008


Authorised Share Capital : RM300,000,000.00Issued and Paid Up Share Capital : RM124,237,167.00Class of Share : Ordinary Shares of RM0.50 eachVoting Rights : One vote per Ordinary ShareNo. of Shareholders : 5,051

ANALYSIS OF ORDINARY SHAREHOLDINGS

Holdings No. of Holders Total Holdings %

Less than 100 223 9,563 0.00100 to 1,000 429 184,564 0.071,001 to 10,000 2,414 13,329,191 5.3610,001 to 100,000 1,844 50,191,388 20.20100,001 to less than 5% of issued shares 136 49,238,908 19.825% and above of issued shares 5 135,520,720 54.54

5,051 248,474,334 100.00

STATISTICS ON WARRANTHOLDINGS

Unit of Warrants issued : 114,276,164No. of Warrantholders : 2,225

ANALYSIS OF WARRANTHOLDINGS

Holdings No. of Holders Total Holdings %

Less than 100 117 4,017 0.00100 to 1,000 162 35,614 0.031,001 to 10,000 954 5,996,171 5.2510,001 to 100,000 885 28,828,866 25.23100,001 to less than 5% of issued warrants 105 31,301,828 27.395% and above of issued warrants 2 48,109,668 42.10

2,225 114,276,164 100.00

shareholdings statisticsas at 3 September 2008

LB ALUMINIUM BERHAD (138535-V)(Incorporated in Malaysia)

I/We NRIC No.

of

being a member(s) of LB Aluminium Berhad, hereby appoint

of

or failing him/her of

or failing him/her the Chairman of the Meeting as my/our proxy to attend and vote on my/our behalf at the Annual GeneralMeeting of the Company to be held at Ujong Pandang Room, Staffield Country Resort, Batu 13 Jalan Seremban-Kuala Lumpur(Country Road), 71700 Mantin, Negeri Sembilan Darul Khusus on Thursday, 30 October, 2008 at 10.00 a.m. or at anyadjournment thereof:

RESOLUTIONS FOR AGAINST

1. To receive and adopt the audited Financial Statements for the year ended30 April 2008 and the Reports of the Directors and Auditors thereon.

2. To declare a First and Final Tax Exempt Dividend of 1.75 sen per share in respectof the Financial Year ended 30 April 2008.

3. To approve the payment of Directors’ Fees.

4. To re-elect Ms. Leow Sok Hoon as Director.

5. To re-elect Mr. Yap Chee Woon as Director.

6. To re-elect Encik Muhammad Nagib Gopal Bin Abdullah as Director.

7. To re-appoint Messrs. BDO Binder as Auditors and to authorise the Directorsto fix their remuneration.

8. To authorise Directors to issue shares not exceeding 10% of the issued capitalof the Company.

9. To approve renewal of authority for share buy-back.

(Please indicate with an “X” in the spaces provided above, how you wish your vote to be cast. If no specific direction as tovoting is given, the proxy will vote or abstain from voting at his discretion.)

As witness my hand this day of 2008.

Number of OrdinaryShares held Signature

NOTES:

1. A member of the Company who is entitled to attend and vote at the Meeting is entitled to appoint one or more Proxies to attend and votein his stead. Where a member appoints two Proxies, the appointment shall be invalid unless he specifies the proportion of his holdings tobe represented by each Proxy. A Proxy need not be a member of the Company but must attend the Meeting in person to vote. Theinstrument appointing a Proxy must be in writing under the hand of the appointer or his attorney duly authorised in writing, or if theappointer is a corporation either under its common seal or under the hands of duly authorised officer or attorney.

2. All forms of Proxy must be deposited at the Company’s Registered Office at No. 275 (1st Floor), Jalan Haruan 1, Oakland Industrial Park,70200 Seremban, Negeri Sembilan Darul Khusus not less than 48 hours before the time appointed for holding the Meeting or at anyadjournment thereof.

proxy form

THE COMPANY SECRETARYLB ALUMINIUM BERHADNO. 275 (1ST FLOOR)JALAN HARUAN 1OAKLAND INDUSTRIAL PARK70200 SEREMBANNEGERI SEMBILAN

then fold here

fold this for sealing

1st fold here

AFFIXSTAMP

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