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Page 1: New Opportunities. Enhancing our core business

annual reportlaporan tahunan 07

New Opportunities .

Enhancing our core business .

Page 2: New Opportunities. Enhancing our core business

Kandungan

1 Profil Korporat

4 Notis Mesyuarat Agung Tahunan

7 Penyataan Mengiringi Notis Mesyuarat Agung Tahunan

8 Maklumat Korporat

12 Lembaga Pengarah

14 Profil Para Pengarah

24 Perutusan Pengerusi

34 Struktur Syarikat

36 Penyataan Kawalan Dalaman

41 Penyata Tadbir Urus Korporat

47 Laporan Jawatankuasa Audit

49 Peristiwa Kumpulan 2006/07

54 Penyata Pegangan Saham Para Pengarah

55 Penyataan Tanggungjawab Para Pengarah

57 Maklumat Pematuhan Tambahan

121 Penyata Kewangan

182 Statistik Pegangan Saham

184 Keterangan Hartanah

Borang Proksi

Contents

1 Corporate Profile

2 Notice of Annual General Meeting

6 Statement Accompanying Notice of Annual General Meeting

8 Corporate Information

12 Board of Directors

14 Directors’ Profile

24 Chairman’s Statement

34 Company Structure

35 Statement on Internal Control

37 Corporate Governance Statement

45 Audit Committee’s Report

49 Group Events 2006/07

54 Statement of Directors’ Shareholdings

55 Directors’ Responsibility Statement

56 Additional Compliance Information

59 Financial Statements

182 Shareholdings Statistics

184 Particulars of Properties

Proxy Form

Cover Rationale

New Opportunities.

Enhancing our core business.

At Sapura, we are consciously aware of today’s industry scenario and remain steadfast in achieving our objectives.

By enhancing our organisational efficiencies and competencies, we are consolidating our strengths and positioning

ourselves for sustainable growth. We will build on this by seeking new ways to maximise opportunities that will

keep us on course to continue delivering long-term value to our stakeholders.

Rasional Kulit

Peluang Baru.

Perkukuh perniagaan teras kami.

Di Sapura, kami sentiasa peka kepada senario industri masa kini dan berpegang teguh dengan wawasan

kami untuk mencapai objektif kami. Dengan meningkatkan kecekapan dan kewibawaan organisasi, kami

memantapkan kekuatan dan kedudukan kami untuk melestarikan pertumbuhan. Kami akan mencari cara

baru untuk memaksimumkan peluang yang akan memastikan kami berada di landasan yang betul untuk terus

memberikan nilai jangka panjang kepada semua pemegang kepentingan kami.

Page 3: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 1

Corporate Profile

Sapura Industrial Berhad’s involvement in the automotive component parts industry started in the early 1980’s with the manufacture of automobile suspension parts. The strong and steady expansion of the business and the industry during the period led to the creation of a group structure through the set up of a holding company in 1994 under the name of Sapura Motors Berhad. Sapura Motors was subsequently listed on the Second Board of the Bursa Securities Malaysia Berhad on 9 May 1997. On 14 January 2004, it was transferred to the Main Board of Bursa Securities Malaysia Berhad. To reflect its diversified business interests, the name Sapura Motors was changed to Sapura Industrial Berhad on 11 August in the same year.

Presently, Sapura Industrial’s main principal activity is the manufacturing of automotive component parts ranging from raw material, precision machining parts to safety components. These include engine, transmission, chasis modules, steering, suspension and brake systems. Throughout the years, Sapura Industrial has evolved into one of the leading Original Equipment Manufacturers in the country, which in turn has provided assurance for its developing After Market segment. Its continuing success in the local industry has also paved the way for Sapura Industrial to expand globally, ensuring future growth and preserving its relevance. In its effort to diversification, Sapura Industrial has also ventured into the manufacture of specialised high technology fittings for the Oil and Gas, Petrochemical and Chemical industries in 2005.

Today’s competitive and dynamic business environment presents adversities and also opportunities with fresh new routes to success. It is with this spirit Sapura Industrial Berhad moves forward, seeking new opportunities and enhancing our core business.

Profil Korporat

Penglibatan Sapura Industrial Berhad di dalam industri komponen automotif kenderaan bermula pada awal tahun 1980an dengan pengilangan komponen suspensi kereta. Perkembangan perniagaan dan industri yang menggalakkan menghasilkan satu struktur kumpulan dengan penubuhan sebuah syarikat induk pada tahun 1994 di bawah nama Sapura Motors Berhad. Sapura Motors kemudiannya telah disenaraikan di Papan Kedua Bursa Securities Malaysia Berhad pada 9 Mei 1997. Pada 14 Januari 2004, ia telah dipindahkan ke Papan Utama Bursa Securities Malaysia Berhad. Untuk menggambarkan kepelbagaian bidang perniagaannya, nama Sapura Motors ditukar ke Sapura Industrial Berhad pada 11 Ogos tahun yang sama.

Pada masa ini, aktiviti utama Sapura Industrial adalah pengilangan komponen kenderaan merangkumi dari bahan mentah, pemesinan logam bertahap tinggi hinggalah kepada komponen keselamatan. Ini termasuk komponen-komponen enjin, transmisi, modul chasis, pengendali, suspensi dan sistem brek. Pengalaman bertahun-tahun ini telah menjadikan Sapura Industrial sebagai salah satu Pengeluar Peralatan Tulen terkemuka di negara ini, sekaligus menyokong segmen Pasaran Alat Ganti yang sedang berkembang. Kejayaannya di dalam negara juga telah merintis jalan untuk Sapura Industrial mengembangkan sayapnya ke luar negara, memastikan masa hadapannya tidak dikompromi. Dalam usahanya untuk mempelbagaikan portfolionya, Sapura Industrial juga turut menceburi pengilangan kelengkapan berteknologi tinggi untuk industri Minyak dan Gas, Petrokimia dan Kimia dalam tahun 2005.

Suasana perniagaan yang kompetitif dan dinamik dewasa ini memberi cabaran dan juga peluang serta hala tuju yang baru. Berbekalkan semangat ini Sapura Industrial Berhad bergerak ke hadapan, mencari peluang-peluang baru dan meningkatkan nilai perniagaan teras kami.

Page 4: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan�

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Thirty First (31st) Annual General Meeting of the Company will be held at the Multi Purpose Hall, Ground Floor,

Sapura @ Mines, No. 7, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan, Selangor Darul Ehsan on Wednesday, 18 July 2007, at 11.00 a.m.

to transact the following businesses:

AGENDA

ORDINARY BUSINESS

1. To receive the Audited Financial Statements together with the Directors’ and Auditors’ reports for the financial year ended 31 January 2007.

Ordinary Resolution 1

2. To re-elect the following directors who retire pursuant to Article 107 of the Articles of Association of the Company and being eligible,

offer themselves for re-election:

i. Ir. Md. Shah bin Hussin Ordinary Resolution �

ii. Shahriman bin Shamsuddin Ordinary Resolution 3

3. To re-elect the following director who retires pursuant to Article 111 of the Articles of Association of the Company and being eligible,

offer himself for re-election:

Datuk Kisai bin Rahmat Ordinary Resolution 4

4. To re-elect the following director who retires pursuant to Section 129(1) and (6) of the Companies Act ,1965 and being eligible, offer himself for

re-election:

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir Ordinary Resolution 5

5. To re-appoint Messrs Ernst & Young as Auditors of the Company until the conclusion of the next Annual General Meeting and to authorise the

directors to fix their remuneration. Ordinary Resolution 6

Page 5: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 3

Notice of Annual General Meeting (Cont’d.)

SpEcIAl BUSINESS

As Special Business, to consider and if thought fit, to pass the following resolutions:

6. Directors’ Fees

To approve the directors’ fees for the financial year ended 31 January 2007. Ordinary Resolution 7

7. Authority for Directors to Issue Shares Under Section 13�D of the companies Act, 1965

“THAT subject to the provisions of the Company’s Articles of Association and the Listing Requirements of Bursa Malaysia Securities Berhad

(“Bursa Malaysia”), the directors be and are hereby empowered, pursuant to Section 132D of the Companies Act, 1965, to issue shares in the

Company at any time and upon such terms and conditions and for such purpose as the directors may, at their absolute discretion deem fit,

provided that the aggregate number of shares issued pursuant to this resolution does not exceed ten per centum (10%) of the total issued and

paid-up share capital of the Company as at the date of such issuance and that the directors be and are also empowered to obtain all necessary

approvals from the relevant authorities for the issuance and the listing of and quotation for the additional shares so issued on Bursa Malaysia

and that such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company.”

Ordinary Resolution 8

BY ORDER OF THE BOARD

chua chooi Hong (MAICSA No: 0815871)

Secretary

Bandar Baru Bangi, Selangor Darul Ehsan

26 June 2007

Notes:1. proxy Form A member of the Company who is entitled to attend and vote at this Meeting is entitled

to appoint a proxy to attend and vote on a poll in his stead. A proxy may but need not be a member of the Company.

Where a member is an authorised nominee, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.

Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy.

The instrument appointing a proxy shall be in writing and in the case of an individual shall be signed by the appointor or by his attorney and in the case of a corporate member, shall be either under its Common Seal or signed by its attorney or an officer of the corporation duly authorised.

The instrument appointing a proxy must be deposited at the Registered Office of the Company at Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, not less than forty eight (48) hours before the time set for holding the Meeting or any adjournment thereof.

�. Directors’ fees The directors’ fees for the financial year ended 31 January 2007 amounted to

RM196,950-00

3. Ordinary Resolution pursuant to Section 13�D of the companies Act, 1965 The proposed Ordinary Resolution 8, if passed, would, subject to the Listing

Requirements of Bursa Malaysia, enable the directors to issue up to a maximum of ten per centum (10%) of the total issued and paid-up share capital of the Company at the date of such issuance for such purposes as the directors consider would be in the best interest of the Company. This authority unless revoked or varied by the Company at a general meeting will expire at the conclusion of the next Annual General Meeting.

4. The Statement accompanying this Notice of Annual General Meeting is contained on page 6 of the Annual Report.

Page 6: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan4

Notis Mesyuarat Agung Tahunan

DENGAN INI ADALAH DIMAKLUMKAN BAHAWA Mesyuarat Agung Tahunan yang Ketiga Puluh Satu (31) Sapura Industrial Berhad akan diadakan

di Dewan Serbaguna, Sapura @ Mines, No. 7, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan, Selangor Darul Ehsan pada hari Rabu,

18 Julai 2007, jam 11.00 pagi untuk tujuan berikut:

AGENDA

URUSAN BIASA

1. Untuk menerima Penyata Akaun yang telah diaudit serta Laporan Para Pengarah dan Juruaudit bagi tahun berakhir 31 Januari 2007.

Resolusi Biasa 1

2. Untuk memilih semula pengarah-pengarah berikut yang bersara menurut Artikel 107 Tataurusan Pertubuhan Syarikat dan kerana layak,

telah menawarkan diri mereka untuk pemilihan semula:

i. Ir. Md. Shah bin Hussin Resolusi Biasa �

ii. Shahriman bin Shamsuddin Resolusi Biasa 3

3. Untuk memilih semula pengarah yang bersara menurut Artikel 111 Tataurusan Pertubuhan Syarikat, dan kerana layak, telah menawarkan

dirinya untuk pemilihan semula:

Datuk Kisai bin Rahmat Resolusi Biasa 4

4. Untuk memilih semula pengarah yang bersara menurut Seksyen 129(1) dan (6) Akta Syarikat,1965 dan kerana layak, telah menawarkan

dirinya untuk pemilihan semula:

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir Resolusi Biasa 5

5. Untuk melantik semula Tetuan Ernst & Young sebagai Juruaudit Syarikat sehingga penutup Mesyuarat Agung Tahunan yang berikutnya

dan memberi kuasa kepada para pengarah menetapkan ganjaran mereka. Resolusi Biasa 6

Page 7: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 5

Notis Mesyuarat Agung Tahunan (Samb.)

URUSAN kHAS

Sebagai urusan khas, untuk dipertimbangkan dan jika dianggap wajar meluluskan resolusi-resolusi berikut:

6. Yuran pengarah

Untuk meluluskan yuran para Pengarah bagi tahun kewangan berakhir 31 Januari 2007. Resolusi Biasa 7

7. Memberi kuasa kepada para pengarah untuk menerbit saham di bawah Seksyen 13�D Akta Syarikat,1965

“Tertakluk kepada peruntukan Tataurusan Pertubuhan Syarikat dan Keperluan Penyenaraian Bursa Malaysia Securities Berhad (“Bursa

Malaysia”), para pengarah dengan ini diberi kuasa, menurut Seksyen 132D Akta Syarikat, 1965 untuk menerbit saham-saham di dalam Syarikat

pada bila-bila masa mengikut terma-terma dan syarat-syarat tertentu dan bagi tujuan tertentu yang mana para pengarah pada budi bicara

mutlak mereka beranggapan patut, dengan syarat jumlah aggregat saham yang akan diterbitkan menurut resolusi ini tidak melebihi sepuluh

peratus (10%) daripada jumlah modal saham terbitan dan berbayar Syarikat pada tarikh terbitan dan bahawasanya para pengarah adalah

dengan ini juga diberi kuasa untuk mendapat kelulusan-kelulusan sewajarnya dari pihak berkuasa yang berkenaan untuk penerbitan dan

penyenaraian dan sebut harga bagi saham-saham tambahan yang diterbitkan di Bursa Malaysia dan bahawasanya kuasa tersebut akan terus

berkuatkuasa sehingga penutup Mesyuarat Agung Tahunan Syarikat yang berikutnya.” Resolusi Biasa 8

DENGAN pERINTAH lEMBAGA pENGARAH

chua chooi Hong (MAICSA No: 0815871)

Setiausaha

Bandar Baru Bangi, Selangor Darul Ehsan

26 Jun 2007

Nota:1. Borang proksi Ahli yang berhak untuk menghadiri dan mengundi di Mesyuarat ini dibenarkan

melantik proksi untuk menghadiri dan mengundi bagi pihaknya. Seorang proksi tidak semestinya seorang ahli Syarikat.

Jika ahli adalah nomini yang diberi kuasa, ia boleh melantik sekurang-kurangnya seorang proksi bagi setiap akaun sekuriti yang dipegangnya yang masih berbaki kredit saham-saham biasa Syarikat.

Sekiranya ahli melantik lebih dari seorang proksi, pelantikan itu adalah tidak sah melainkan jika ia menyatakan bilangan saham yang diwakilkan kepada setiap proksi.

Suratcara pelantikan proksi hendaklah dibuat secara bertulis dan sekiranya ahli adalah individu, ia hendaklah ditandatangani oleh pelantik atau oleh wakilnya dan sekiranya pelantik merupakan sebuah perbadanan, ia hendaklah dibuat sama ada di bawah Cop Mohor Rasmi atau di tandatangani oleh wakil atau pegawai Perbadanan yang diberi kuasa.

Surat pelantikan proksi mestilah diserahkan ke Pejabat Berdaftar Syarikat di Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, tidak kurang dari tempoh empat puluh lapan (48) jam sebelum waktu yang telah ditetapkan untuk mengadakan Mesyuarat atau sebarang penangguhan daripadanya.

�. Yuran pengarah Yuran pengarah bagi tahun kewangan yang berakhir 31 Januari 2007 adalah

berjumlah RM196,950-00

3. Resolusi Biasa menurut Seksyen 13�D Akta Syarikat,1965 Resolusi 8 yang dicadangkan, jika diluluskan, akan tertakluk kepada Keperluan

Penyenaraian Bursa Malaysia, memberi kuasa kepada para pengarah, untuk menerbitkan saham-saham tidak melebihi sepuluh peratus (10%) dari jumlah saham terbitan dan berbayar Syarikat pada tarikh terbitan untuk sebab-sebab dimana para pengarah beranggapan ianya adalah untuk kebaikan Syarikat. Kuasa ini melainkan ianya ditarik balik atau dipelbagaikan oleh Syarikat di dalam Mesyuarat Agung akan lupus pada penutup Mesyuarat Agung Tahunan yang akan datang.

4. Penyataan berserta Notis Mesyuarat Agung Tahunan ini terkandung pada muka surat 7 Laporan Tahunan.

Page 8: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan6

Statement Accompanying Notice of Annual General Meeting

1. Directors who are standing for election or re-election at the Thirty First (31st) Annual General Meeting of Sapura Industrial Berhad:

(a) Retiring pursuant to Article 107 of the Company’s Articles of Association

(i) Ir. Md. Shah bin Hussin

(ii) Shahriman bin Shamsuddin

(b) Retiring pursuant to Article 111 of the Company’s Articles of Association

(i) Datuk Kisai bin Rahmat

(c) Retiring pursuant to Section 129(1) and (6) of the Companies Act,1965

(i) Tan Sri Dato ’ Seri Ir. Shamsuddin bin Abdul Kadir

The respective profiles of the Directors who are standing for re-election are set out in the Profile of Directors on pages 14 to 21 of this

Annual Report.

�. Details of attendance of Directors at Board Meetings

A total of six (6) Board of Directors’ Meetings held during the financial year ended 31 January 2007 at the Board Room, 9th Floor, Sapura @

Mines, No. 7, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan, Selangor Darul Ehsan. Records of attendance for each of the directors

are as follows:

No. Name of Directors Attendance

1. Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 6

2. Datuk Shahril bin Shamsuddin 5

3. Dato’ Azlan bin Hashim 4

4. Dato’ Mazlin bin Md Junid 6

5. Shah Hakim bin Zain 6

6. Ir. Md. Shah bin Hussin 6

7. Shahriman bin Shamsuddin 6

8. Datuk Kisai bin Rahmat (appointed on 18 October 2006) 1

9. Dato’ Dr. Ismail bin Saad (retired on 19 July 2006) 3

10. Azmi bin Hashim (alternate director to Dato’ Azlan bin Hashim) 2

3. General Meeting held during the financial year ended 31 January �007

Type of General Meeting Date of General Meeting Venue of General Meeting

Annual General Meeting 19 July 2006 @ 11:00 a.m. Sapura @ Mines

No. 7, Jalan Tasik,

The Mines Resort City,

43300 Seri Kembangan, Selangor Darul Ehsan

Page 9: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 7

Penyata Mengiringi Notis Mesyuarat Agung Tahunan

1. Pengarah-pengarah yang akan dipilih atau dipilih semula pada Mesyuarat Agung Tahunan Sapura Industrial Berhad yang Ketiga Puluh Satu

(31):

(a) Bersara mengikut Artikel 107 Tataurusan Pertubuhan Syarikat

(i) Ir. Md. Shah bin Hussin

(ii) Shahriman bin Shamsuddin

(b) Bersara mengikut Artikel 111 Tataurusan Pertubuhan Syarikat

(i) Datuk Kisai bin Rahmat

(c) Bersara mengikut Seksyen 129(1) dan (6) Akta Syarikat,1965

(i) Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir

Profil para pengarah tersebut di atas untuk pemilihan semula dinyatakan dalam Profil Lembaga Pengarah di muka surat 14 hingga 21

Laporan Tahunan ini.

�. Butiran kedatangan para pengarah ke Mesyuarat lembaga pengarah

Sejumlah enam (6) Mesyuarat Lembaga Pengarah telah diadakan sepanjang tahun kewangan berakhir 31 Januari 2007 di Bilik Lembaga

Pengarah, Tingkat 9, Sapura @ Mines, No. 7, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan, Selangor Darul Ehsan. Rekod kedatangan

setiap pengarah adalah seperti berikut:

No. Nama para pengarah kedatangan

1. Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 6

2. Datuk Shahril bin Shamsuddin 5

3. Dato ’ Azlan bin Hashim 4

4. Dato ’ Mazlin bin Md Junid 6

5. Shah Hakim bin Zain 6

6. Ir. Md. Shah bin Hussin 6

7. Shahriman bin Shamsuddin 6

8. Datuk Kisai bin Rahmat (dilantik pada 18 Oktober 2006) 1

9. Dato’ Dr. Ismail bin Saad (bersara pada 19 Julai 2006) 3

10. Azmi bin Hashim (pengarah gantian kepada Dato’ Azlan bin Hashim) 2

3. Mesyuarat Agung yang telah diadakan sepanjang tahun kewangan berakhir 31 Januari �007

Jenis Mesyuarat Agung Tarikh Mesyuarat Agung Tempat Mesyuarat Agung

Mesyuarat Agung Tahunan 19 Julai 2006 @ 11:00 pagi Sapura @ Mines

No. 7, Jalan Tasik,

The Mines Resort City,

43300 Seri Kembangan, Selangor Darul Ehsan

Page 10: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan8

Corporate InformationMaklumat Korporat

BOARD OF DIREcTORS / lEMBAGA pENGARAH

1. Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir Chairman / Pengerusi

2. Datuk Shahril bin Shamsuddin

Deputy Chairman / Timbalan Pengerusi

3. Dato’ Azlan bin Hashim

Company Director / Pengarah Syarikat

4. Dato’ Mazlin bin Md Junid

Company Director / Pengarah Syarikat

5. Shah Hakim bin Zain

Company Director / Pengarah Syarikat

6. Datuk Kisai bin Rahmat Company Director / Pengarah Syarikat

7. Ir. Md. Shah bin Hussin

Managing Director / Pengarah Urusan

8. Shahriman bin Shamsuddin

Executive Director / Pengarah Eksekutif

AUDIT cOMMITTEE / JAwATANkUASA AUDIT

1. Datuk Kisai bin Rahmat Chairman of Committee Independent Non-Executive Pengerusi Jawatankuasa Bebas Bukan Eksekutif

2. Dato’ Mazlin bin Md Junid Member of Committee

Independent Non-Executive Ahli Jawatankuasa Bebas Bukan Eksekutif

3. Dato’ Azlan bin Hashim Member of Committee Non-Independent Non-Executive Ahli Jawatankuasa Bukan Bebas Bukan Eksekutif

BOARD NOMINATION AND REMUNERATION cOMMITTEE /

JAwATANkUASA lEMBAGA pENAMAAN DAN IMBUHAN

1. Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir Chairman of Commitee Non-Independent Non-Executive Pengerusi Jawatankuasa Bukan Bebas Bukan Eksekutif

2. Dato’ Mazlin bin Md Junid Member of Committee Independent Non-Executive Ahli Jawatankuasa Bebas Bukan Eksekutif

3. Datuk Kisai bin Rahmat Member of Committee Independent Non-Executive Ahli Jawatankuasa Bebas Bukan Eksekutif

Page 11: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 9

Corporate Information (cont’d.)

Maklumat Korporat (samb.)

EMplOYEE SHARE OpTION ScHEME (ESOS) cOMMITTEE /

JAwATANkUASA SkIM OpSYEN SAHAM pEkERJA (ESOS)

1. Azmi bin Hashim (alternate Director to / Pengarah Gantian kepada Dato’ Azlan bin Hashim)

Chairman of Committee Non-Independent Non-Executive Pengerusi Jawatankuasa Bukan Bebas Bukan Eksekutif

2. Ir. Md. Shah bin Hussin Member of Committee Managing Director Ahli Jawatankuasa Pengarah Urusan

3. Datuk Kisai bin Rahmat Member of Committee Independent Non-Executive Ahli Jawatankuasa Bebas Bukan Eksekutif

cOMpANY SEcRETARY / SETIAUSAHA SYARIkAT

Chua Chooi Hong (MAICSA NO : 0815871)

REGISTERED OFFIcE / pEJABAT BERDAFTAR

Lot 2 & 4, Jalan P/11, Seksyen 10

Kawasan Perindustrian Bangi

43650 Bandar Baru Bangi

Selangor Darul Ehsan

Tel : 603-8925 6011

Fax : 603-8925 8292

REGISTRAR / pENDAFTAR

Tenaga Koperat Sdn. Bhd.

20th Floor, Plaza Permata

Jalan Kampar

Off Jalan Tun Razak

50400 Kuala Lumpur

Tel : 603-4041 6522

Fax : 603-4042 6352

AUDITORS AND REpORTING AccOUNTANTS /

JURUAUDIT DAN AkAUNTAN

Ernst & Young

Chartered Accountants

Level 23A, Menara Milenium

Jalan Damanlela

Pusat Bandar Damansara

50490 Kuala Lumpur

Tel : 603-2087 7000

Fax : 603-2095 9076/9078

STOck ExcHANGE lISTING / pENYENARAIAN BURSA SAHAM

Bursa Malaysia Securities Berhad

(Main Board) / (Papan Utama)

Page 12: New Opportunities. Enhancing our core business

Strategising sustainable growth

Merangka pertumbuhan berkekalan

Page 13: New Opportunities. Enhancing our core business

Committed to delivering value to stakeholders, we will press ahead in shaping up our operational

efficiency and moving up the quality ladder.

Komited untuk memberi nilai kepada pemegang kepentingan, kami akan memberi penekanan dalam

usaha kami membentuk kecekapan operasi dan meningkatkan tahap kualiti.

Page 14: New Opportunities. Enhancing our core business

Board of DirectorsLembaga Pengarah

From left to right / Dari kiri ke kanan:

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir (Chairman / Pengerusi)

Datuk Shahril bin Shamsuddin (Deputy Chairman / Timbalan Pengerusi)

Shahriman bin Shamsuddin

Datuk Kisai bin Rahmat

Annual Report 2007 Laporan Tahunan12

Page 15: New Opportunities. Enhancing our core business

From left to right / Dari kiri ke kanan:

Ir. Md. Shah bin Hussin

Dato’ Azlan bin Hashim

Shah Hakim bin Zain

Dato’ Mazlin bin Md Junid

Annual Report 2007 Laporan Tahunan 13

Page 16: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan14

Directors’ ProfileProfil Para Pengarah

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir Chairman / Pengerusi

Malaysian / Warganegara Malaysia • Age / Umur: 75

PSM, SPCM, DPMJ, DPCM, JMN, Hon. Fellow I.E.M. F.A.Sc, C.Eng., D.Sc.(Mgmt Tech)(Hon)(UTM), D.Eng.(Hon)(USM), DBA (Hon)(UKM), P.Eng., MIE (Mal), MIEE (UK), MIMARE (UK)

Chairman holding a Non-Independent Non-Executive position. Tan Sri was appointed to the Board of Directors of Sapura Industrial Berhad on 12

March 1974. Tan Sri is the Chairman of Sapura Industrial Berhad’s Board Nomination and Remuneration Committee. Tan Sri is also the Founder and

Chairman of Sapura Holdings Sdn. Bhd., Chairman of Sapura Technology Berhad, Sapura Resources Berhad and Universiti Tun Hussein Onn Malaysia.

Tan Sri started his career with Jabatan Telekom Malaysia in 1959 and served in various posts, the last being Telekom Controller of Perak. Formerly,

Tan Sri was the Executive Director of United Motor Works Berhad (UMW), Chairman of BIMB Holdings Berhad and Bank Islam Malaysia Berhad and

Director of Universiti Teknologi Malaysia.

Tan Sri has had no convictions for any offences within the past ten (10) years.

Pengerusi yang memegang kedudukan Bukan Bebas Bukan Eksekutif. Tan Sri telah dilantik sebagai ahli Lembaga Pengarah Sapura Industrial Berhad

pada 12 Mac 1974. Tan Sri merupakan Pengerusi Jawatankuasa Pencalonan dan Imbuhan Sapura Industrial Berhad. Tan Sri adalah Pengerusi dan

Pengasas Sapura Holdings Sdn. Bhd., Pengerusi Sapura Technology Berhad, Sapura Resources Berhad dan Universiti Tun Hussein Onn Malaysia.

Tan Sri memulakan kerjayanya di Jabatan Telekom Malaysia pada 1959 dan memegang beberapa jawatan, yang terakhirnya sebagai Pengawal

Telekom, Perak. Tan Sri merupakan bekas Pengarah Eksekutif United Motor Works Berhad (UMW), Pengerusi BIMB Holdings Berhad dan Bank Islam

Malaysia Berhad serta Pengarah Universiti Teknologi Malaysia.

Tan Sri tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

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Annual Report 2007 Laporan Tahunan 15

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Datuk Shahril bin Shamsuddin Deputy Chairman / Timbalan Pengerusi

Malaysian / Warganegara Malaysia • Age / Umur: 46

PJN, M.Sc. in Management of Technology (MIT Sloan), B.Sc. Industrial Technology (Cal Poly)

Non-Independent Non-Executive Director, Datuk was appointed to Sapura Industrial Berhad’s Board of Directors on 2 December 1993 and as a

Deputy Chairman on 29 November 2002.

After graduating from California Polytechnic, Datuk served with Dynatel, California for a year. He then returned to Malaysia in 1985 and embarked

on his career with the Sapura Group, which was founded by his father, Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir. He held the position of

Assistant Managing Director of the Sapura Group from 1985 to 1990, as well as holding the position of Group General Manager of Uniphone Sdn.

Bhd. from 1987 to 1990. Datuk later became Group Managing Director of the Sapura Group from 1990 to 1996 before assuming his current position

in the Group as President and Chief Executive Officer in 1997.

Presently, Datuk is the Executive Vice Chairman of SapuraCrest Petroleum Berhad, Managing Director of Sapura Technology Berhad and the

Chairman of MIMOS Berhad. Datuk is also on the Board of Sapura Resources Berhad, Universiti Malaysia Sarawak (UNIMAS), Malaysian External

Trade Development Corporation (MATRADE), Multimedia Development Corporation Sdn. Bhd. and Sapura Holdings Sdn. Bhd. Datuk is a member of

the Advisory Council of International Center for Leadership in Finance (ICLIF) and a member of the Board of Trustees of the Perdana Leadership

Foundation.

Datuk has had no convictions for any offences within the past ten (10) years.

Pengarah Bukan Bebas Bukan Eksekutif, Datuk telah dilantik sebagai Ahli Lembaga Pengarah Sapura Industrial Berhad pada 2 Disember 1993 dan

sebagai Timbalan Pengerusi pada 29 November 2002.

Selepas menamatkan pengajiannya di Politeknik California, Datuk telah berkhidmat dengan Dynatel, California selama setahun. Sekembalinya

beliau ke Malaysia pada tahun 1985, beliau telah memulakan kerjayanya dengan Kumpulan Sapura, yang telah diasaskan oleh bapanya Tan Sri

Dato’ Seri Ir. Shamsuddin bin Abdul Kadir. Beliau telah menjawat jawatan sebagai Timbalan Pengarah Urusan bagi Kumpulan Sapura dari tahun

1985 hingga 1990, disamping memegang jawatan sebagai Pengurus Besar Kumpulan Uniphone Sdn. Bhd. dari tahun 1987 hingga 1990. Datuk

kemudiannya menjadi Pengarah Urusan Kumpulan bagi Kumpulan Sapura dari tahun 1990 hingga 1996 sebelum menjawat jawatannya sekarang

sebagai Presiden dan Ketua Pegawai Eksekutif Kumpulan dalam tahun 1997.

Kini Datuk merupakan Naib Pengerusi Eksekutif SapuraCrest Petroleum Berhad, Pengarah Urusan bagi Sapura Technology Berhad dan Pengerusi

MIMOS Berhad. Selain daripada itu, Datuk turut juga memegang jawatan sebagai Pengarah Sapura Resources Berhad, Universiti Malaysia Sarawak

(UNIMAS), Malaysian External Trade Development Corporation (MATRADE), Multimedia Development Corporation Sdn. Bhd. (MDC) dan Sapura

Holdings Sdn. Bhd. Datuk juga merupakan Ahli Majlis Penasihat International Centre for Leadership In Finance (ICLIF) dan Ahli Lembaga Pemegang-

Pemegang Amanah Yayasan Kepimpinan Perdana.

Datuk tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

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Annual Report 2007 Laporan Tahunan16

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Dato’ Azlan bin Hashim Company Director / Pengarah Syarikat

Malaysian / Warganegara Malaysia • Age / Umur: 65

DSNS, DSSA, FCA (Ireland), MACPA (Mal), FIBM (Mal), FEDI (Washington)

Non-Independent Non-Executive Director since 20 December 1996. Dato’ is a member of the Audit Committee of Sapura Industrial Berhad. Dato’

is the Deputy Chairman of AMDB Berhad, AMMB Holdings Berhad and AmInternational (L) Limited. Dato’ is also the Executive Chairman of Global

Carriers Berhad and sits on the Boards of Kumpulan Perangsang Selangor Berhad, Paramount Corporation Berhad, Metrod (M) Berhad, Kesas

Holdings Berhad and Syarikat Permodalan & Perusahaan Selangor Berhad.

Prior to his joining AMDB Berhad in 1982, Dato’ was a Senior Partner of the public accounting firm, Azman, Wong, Salleh & Co. He also served with

the Malayan Railways between 1966 to 1971, two years of which as its Chief Accountant.

Dato’ is also a Fellow of the Institute of Chartered Accountants (Ireland), a Fellow of the Economic Development Institute (World Bank, Washington

DC, USA) as well as a Fellow of the Institute of Bankers Malaysia. Dato’ is also a qualified Certified Public Accountant registered with Malaysian

Association of Certified Public Accountant (MACPA) .

Dato’ has had no convictions for any offences within the past ten (10) years.

Pengarah Bukan Bebas Bukan Eksekutif sejak 20 Disember 1996. Dato adalah ahli Jawatankuasa Audit Sapura Industrial Berhad. Dato’ juga adalah

Timbalan Pengerusi AMDB Berhad, AMMB Holdings Berhad dan AmInternational (L) Limited. Dato’ juga adalah Pengerusi Eksekutif Global Carriers

Berhad dan menjadi ahli Lembaga Pengarah bagi Kumpulan Perangsang Selangor Berhad, Paramount Corporation Berhad, Metrod (M) Berhad,

Kesas Holdings Berhad dan Syarikat Permodalan & Perusahaan Selangor Berhad.

Sebelum menyertai AMDB Berhad pada tahun 1982, Dato’ adalah Rakan Kongsi Kanan di firma akauntan awam, Azman, Wong, Salleh & Co. Beliau

juga pernah berkhidmat di Keretapi Tanah Melayu dari tahun 1966 hingga 1971 dengan memegang jawatan sebagai Ketua Akauntan selama dua

tahun.

Dato’ juga merupakan Fellow bagi Institut Akauntan Bertauliah (Ireland), Fellow bagi Institut Pembangunan Ekonomi (Bank Dunia, Washington

DC, Amerika Syarikat) dan juga Fellow Institut Bank-bank Malaysia. Dato’ juga mempunyai kelayakan sebagai Akauntan Awam Bertauliah yang

berdaftar di bawah MACPA.

Dato’ tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

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Annual Report 2007 Laporan Tahunan 17

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Dato’ Mazlin bin Md Junid Company Director / Pengarah Syarikat

Malaysian / Warganegara Malaysia • Age / Umur: 45

DIMP, B.Sc.(Mech. Eng.), MBA

Independent Non-Executive Director of Sapura Industrial Berhad since 2 January 2002. Dato’ is a member of the Audit Committee and the Board

Nomination and Remuneration Committee of Sapura Industrial Berhad.

Dato’ is currently the Managing Director of Seca Dyme Sdn. Bhd., a company which he owns. Dato’ also sits on the Board and is a member of the

Audit Committee of Sapura Technology Berhad and a Director and Chairman of the Audit Committee of MTD Infraperdana Berhad. Dato’ previously

held various senior posts in the Sime Darby Group where he managed five (5) companies within the group.

Dato’ has had no convictions for any offences within the past ten (10) years.

Pengarah Bebas Bukan Eksekutif Sapura Industrial Berhad sejak 2 Januari 2002. Dato’ merupakan ahli Jawatankuasa Audit dan Jawatankuasa

Pencalonan dan Imbuhan Sapura Industrial Berhad.

Dato’ kini adalah Pengarah Urusan Seca Dyme Sdn. Bhd., syarikat miliknya. Dato’ juga merupakan Pengarah dan ahli Jawatankuasa Audit bagi

Sapura Technology Berhad dan merupakan Pengarah dan Pengerusi Jawatankuasa Audit MTD Infraperdana Berhad. Sebelum ini Dato’ memegang

pelbagai jawatan kanan dalam Kumpulan Sime Darby di mana beliau mengurus lima (5) buah syarikat di dalam Kumpulan tersebut.

Dato’ tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

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Annual Report 2007 Laporan Tahunan18

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Shah Hakim bin Zain Company Director / Pengarah Syarikat

Malaysian / Warganegara Malaysia • Age / Umur: 42

Independent Non-Executive Director since 22 February 1999. Shah Hakim started his career as an auditor with Ernst & Young and was subsequently

promoted as Consulting Manager, responsible for servicing large local corporations. He went on to be appointed as Executive Director of a regional

packaging manufacturer in 1992 with direct operational responsibility.

Currently, Shah Hakim is the Chief Executive Officer and Executive Director of Scomi Group Bhd., Scomi Marine Bhd. and Scomi Engineering Bhd.

Shah Hakim has had no convictions for any offences within the past ten (10) years.

Pengarah Bebas Bukan Eksekutif sejak 22 Februari 1999. Shah Hakim memulakan kerjaya sebagai juruaudit di Ernst & Young dan kemudian

dinaikkan pangkat sebagai Pengurus Perunding yang bertanggungjawab untuk memberi perkhidmatan kepada syarikat-syarikat terkemuka

tempatan. Seterusnya beliau telah dilantik sebagai Pengarah Eksekutif bagi sebuah syarikat pengeluar pembungkusan serantau pada 1992 dan

bertanggungjawab terus terhadap operasi syarikat tersebut.

Kini, Shah Hakim adalah Ketua Pegawai Eksekutif dan Pengarah Eksekutif Scomi Group Bhd., Scomi Marine Bhd. dan Scomi Engineering Bhd.

Shah Hakim tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

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Annual Report 2007 Laporan Tahunan 19

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Shahriman bin Shamsuddin Executive Director / Pengarah Eksekutif

Malaysian / Warganegara Malaysia • Age / Umur: 38

M.Sc. in Engineering Business Management (Warwick), B.Sc. Industrial Technology (Purdue, USA)

Executive Director of Sapura Industrial Berhad since 29 January 2002. He held a number of senior positions within the Sapura Group since 1991.

Currently, he is also the Managing Director of Sapura Resources Berhad as well as a director in Sapura Technology Berhad and Sapura Holdings

Sdn. Bhd.

He has had no convictions for any offences within the past ten (10) years.

Pengarah Eksekutif Sapura Industrial Berhad sejak 29 Januari 2002. Beliau memegang beberapa jawatan kanan di dalam Kumpulan Sapura

sejak 1991. Kini, beliau juga merupakan Pengarah Urusan Sapura Resources Berhad di samping sebagai pengarah Sapura Technology Berhad dan

Sapura Holdings Sdn. Bhd.

Beliau tidak mempunyai sebarang kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun yang lalu.

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Annual Report 2007 Laporan Tahunan20

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Datuk Kisai bin Rahmat Company Director / Pengarah Syarikat

Malaysian / Warganegara Malaysia • Age / Umur: 56

KMN, PJN, B.Sc. (Mech. Eng.) , M.Sc. in Industrial Engineering and Production Management

Independent Non-Executive Director of Sapura Industrial Berhad since 18 October 2006. Datuk is the Chairman of the Audit Committee and a

member of the Board Nomination and Remuneration Committee as well as the Employee Share Option Scheme (ESOS) Committee of Sapura

Industrial Berhad.

Prior to joining Sapura Industrial Berhad, Datuk was the Executive Director for Proton Holdings Berhad and a Director of several Proton’s subsidiary

companies including Lotus Group International Limited UK and Vina Star Motors Corporation Vietnam. At present, he is an Advisor to Yasmin Holdings

Sdn. Bhd. and the Vice Executive Chairman to Jurumuda Sdn. Bhd.

Datuk has had no convictions for any offences within the past ten (10) years.

Pengarah Bebas Bukan Eksekutif Sapura Industrial Berhad sejak 18 Oktober 2006. Datuk adalah Pengerusi Jawatankuasa Audit dan ahli

Jawatankuasa Pencalonan dan Imbuhan di samping Ahli Jawatankuasa Skim Opsyen Saham Pekerja (ESOS) Sapura Industrial Berhad.

Sebelum menyertai Sapura Industrial Berhad, Datuk merupakan Pengarah Eksekutif Proton Holdings Berhad dan juga Pengarah beberapa anak

syarikat Proton termasuk Lotus Group International Limited UK dan Vina Star Motors Corporation Vietnam. Kini, Datuk merupakan Penasihat Yasmin

Holdings Sdn. Bhd. dan Naib Pengerusi Eksekutif Jurumuda Sdn. Bhd.

Datuk tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

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Annual Report 2007 Laporan Tahunan 21

Directors’ Profile (Cont’d.)

Profil Para Pengarah (Samb.)

Ir. Md. Shah bin Hussin Managing Director / Pengarah Urusan

Malaysian / Warganegara Malaysia • Age / Umur: 56

MBA, B.Sc.(Mech. Eng.), P.Eng., MIEM

Managing Director of Sapura Industrial Berhad since 1 September 1997. He is also a member of the Employee Share Option Scheme (ESOS)

Committee of Sapura Industrial Berhad.

Prior to his appointment as Managing Director, he was the Group General Manger of Sapura Industrial Berhad. He was formerly an Assistant General

Manager of HICOM-Yamaha Manufacturing (M) Sdn. Bhd., General Manager of Body Fashion (M) Sdn. Bhd. and H & R Johnson (M) Berhad.

He has had no convictions for any offences within the past ten (10) years.

Pengarah Urusan Sapura Industrial Berhad sejak 1 September 1997. Beliau juga merupakan ahli Jawatankuasa Skim Opsyen Saham Pekerja (ESOS)

Sapura Industrial Berhad.

Sebelum dilantik sebagai Pengarah Urusan, beliau adalah Pengurus Besar Kumpulan Sapura Industrial Berhad. Beliau pernah berkhidmat sebagai

Penolong Pengurus Besar HICOM-Yamaha Manufacturing (M) Sdn. Bhd., Pengurus Besar Body Fashion (M) Sdn. Bhd. dan H & R Johnson (M)

Berhad.

Beliau tidak mempunyai kesalahan yang disabitkan dalam tempoh sepuluh (10) tahun lalu.

OTHER INFORMATION ON BOARD OF DIRECTORS

Conflict of Interests

None of the directors have any family relationship with other directors except for Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir who is the father

to Datuk Shahril bin Shamsuddin and Encik Shahriman bin Shamsuddin. None of the directors have any conflict of interest in the Company.

LAIN-LAIN MAKLUMAT MENGENAI LEMBAGA PENGARAH

Percanggahan Kepentingan

Tiada pengarah yang mempunyai talian kekeluargaan dengan mana-mana pengarah lain, melainkan Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul

Kadir yang merupakan bapa kepada Datuk Shahril bin Shamsuddin dan Encik Shahriman bin Shamsuddin. Tidak ada pengarah yang mempunyai

sebarang percanggahan kepentingan dengan Syarikat.

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Annual Report 2007 Laporan Tahunan22

Driving technology forward

Memacu teknologi hadapan

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Annual Report 2007 Laporan Tahunan 23

On-going innovation in our design and development competencies is a key factor in overcoming the

challenges of market liberalisation.

Inovasi berterusan dalam kecekapan rekabentuk dan pembangunan kami adalah faktor utama dalam

menangani cabaran liberalisasi pasaran.

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Annual Report 2007 Laporan Tahunan24

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir (Chairman / Pengerusi)

Annual Report 2007 Laporan Tahunan24

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Annual Report 2007 Laporan Tahunan 25

Dear Shareholders,

The year 2006 was a challenging year for Sapura Industrial Berhad

and the Malaysian automotive industry in general. While revenue

remained consistent with the level of the preceding financial year,

we experienced an operating loss as a result of an investment not

realising its full potential. On top of this, the sluggish local automotive

sector did not do much to improve the performance of our core

automotive components manufacturing business.

In the midst of the severe downturn in the local automotive industry,

we undertook measures to fortify our products and services, offering

as well as explore opportunities in existing and new markets. Today,

we are in a strong position to pursue new opportunities in the market

segments we play in.

On behalf of the Board of Directors, I present the Annual Report

and Audited Financial Statements for Sapura Industrial Berhad

(“Sapura Industrial” or “the Group”) for the financial year ended

31 January 2007.

OPERATING ENVIRONMENT

The year 2006 saw the Malaysian economy emerging stronger and

more resilient. The 5.9% growth came on the back of economic

expansion fuelled by domestic activity (particularly in the private

sector) and high export demand, while the public sector continued to

provide a supportive environment facilitating expansion. Despite the

overall economic expansion, vehicle sales for the automotive sector

continued on a downward spiral as a result of weak consumer sentiment

over 2006. The Malaysian Automotive Association (MAA) reported that

the Malaysian automotive industry experienced an 11% decline in total

industry volume, dropping from the record high of 551,042 units in

2005, to 490,768 units in 2006.

Chairman’s StatementPerutusan Pengerusi

Para Pemegang Saham Yang Dihormati,

Tahun 2006 merupakan tahun yang mencabar untuk Sapura Industrial

Berhad dan industri automotif secara keseluruhannya. Walaupun

perolehan kekal konsisten pada tahap di tahun kewangan sebelumnya,

Kumpulan mengalami kerugian operasi akibat dari pelaburan yang

tidak memberi pulangan seperti dijangka. Selain itu, kelembapan

sektor automotif tempatan tidak membantu untuk memperbaiki

prestasi perniagaan teras pengeluaran komponen automotif kami.

Dalam suasana industri automotif tempatan yang lemah, kami telah

mengambil tindakan-tindakan susulan untuk peneguhan barangan

dan perkhidmatan yang ditawarkan di samping menerokai peluang-

peluang di dalam pasaran baru dan yang sedia ada.

Bagi pihak Lembaga Pengarah, saya membentangkan Laporan

Tahunan dan Penyata Kewangan bagi Sapura Industrial Berhad yang

telah diaudit bagi tahun kewangan berakhir 31 Januari 2007.

PERsEkITARAN OPERAsI

Tahun 2006 menyaksikan ekonomi Malaysia bertambah teguh dan

kukuh. Pertumbuhan 5.9% diperolehi berasaskan pengembangan

ekonomi dijana oleh aktiviti domestik (terutama disektor swasta)

dan permintaan eksport yang tinggi, sementara sektor awam terus

menyediakan suasana untuk membantu perkembangan. Walaupun

dengan pekembangan ekonomi secara keseluruhan, jualan kenderaan

untuk sektor automotif jatuh berterusan akibat dari sentimen

pengguna yang lemah sepanjang 2006. Persatuan Automotif Malaysia

(MAA) melaporkan bahawa industri automotif Malaysia mengalami

penurunan sebanyak 11% dalam jumlah pengeluaran industri,

menurun dari tahap tertinggi di tahun 2005 sebanyak 551,042 unit

kepada 490,768 unit di tahun 2006.

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Annual Report 2007 Laporan Tahunan26

Various promotions and incentives offered by the various automotive

players to boost demand were offset by higher interest rates and fuel

prices, lower trade-in values for used cars, increased competition as well

as tighter credit control. While the National Automotive Policy (“NAP”)

provided industry players some direction on the way to move forward

and helped reduce the price differential between national and non-

national makes, the ensuing price reductions saw the market values of

used cars plunging dramatically and further intensified the competition

faced by certain auto players.

FINANCIAL PERFORMANCE

Against this backdrop, the Group garnered revenue of RM166.52 million

for the period under review, a marginal 4% decrease over the RM173.41

million obtained in the preceding financial year. The Group, however,

posted a loss before taxation (“LBT”) of RM67.87 million against profit

before taxation of RM10.43 million in the preceding financial year.

This LBT was mainly attributable to the impairment loss of RM59

million posted by our subsidiary, Sapura-Schulz Hydroforming Sdn Bhd

(“Sapura-Schulz”). On the upside, despite the slowdown in the industry,

the Group attained a positive net operating cash flow of RM6.94 million.

Berbagai promosi dan insentif yang ditawarkan oleh berbagai peniaga

bidang automotif untuk menjana permintaan telah dikekang oleh

kenaikan kadar faedah dan harga bahanapi, nilai tukar beli yang

rendah untuk kereta terpakai, peningkatan saingan dan juga kawalan

kredit yang lebih ketat. Walaupun Polisi Automotif Nasional (“NAP”)

memberi peniaga dalam industri sedikit arah tuju untuk maju dan

membantu dalam pengurangan perbezaan harga di antara kenderaan

buatan nasional dan bukan nasional, berikutan pengurangan harga

yang menyusul menyebabkan harga pasaran kereta terpakai jatuh

mendadak dan menambahkan persaingan yang dihadapi oleh peniaga

automotif tertentu.

PREsTAsI kEwANGAN

Walau bagaimanapun, Kumpulan memperolehi pendapatan sebanyak

RM166.52 juta untuk tempoh yang disemak, satu penurunan sebanyak

4% berbanding RM173.41 juta yang diperolehi di dalam tahun kewangan

sebelumnya. Namun begitu, Kumpulan mencatatkan kerugian sebelum

cukai sebanyak RM67.87 juta berbanding keuntungan sebelum cukai

sebanyak RM10.43 juta di tahun kewangan sebelumnya. Kerugian ini

kebanyakannya datang dari rosotnilai sejumlah RM59 juta yang dialami

oleh anak syarikat Sapura-Schulz Hydroforming Sdn Bhd (“Sapura-Schulz”).

Di sebalik itu, dalam keadaan industri yang lembap, Kumpulan telah

memperolehi tunai bersih positif hasil dari kegiatan kendalian sebanyak

RM6.94 juta.

Chairman’s Statement (Cont’d.)

Perutusan Pengerusi (Samb.)

Annual Report 2007 Laporan Tahunan26

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Annual Report 2007 Laporan Tahunan 27

Dalam usaha kami untuk memperbagaikan operasi, pelaburan terbaru

kami dalam perniagaan “butt-weld” melalui Sapura-Schulz tidak

dapat direalisasikan. Menuruti kehendak Piawai Pelaporan Kewangan

(“FRS”) yang baru dan dikemaskini, kami telah mengambil langkah

untuk menyusut sepenuhnya perniagaan ini. Lembaga Pengarah dan

Pihak Pengurusan telah bersetuju bahawa ianya langkah terbaik

memandangkan ketidak pastian untuk merealisasikan sepenuhnya

pelaburan tersebut dan potensi untuk faedah tertangguh ini di masa

masa hadapan. Bergerak ke hadapan, kami bertekad tidak akan

terhenti disebabkan oleh keadaan sedemikian. Kami telah berkongsi

pengajaran daripada pengalaman ini, dan akan menumpukan segala

usaha untuk mendapatkan peluang baru di samping mengambil usaha

wajar yang berterusan.

Memandangkan kepada kerugian kendalian, Lembaga Pengarah tidak

mencadangkan sebarang pembayaran dividen untuk tahun kewangan

berakhir 31 Januari 2007.

BuTIRAN PENTING OPERAsI

Dalam tempoh yang disemak, kami meneruskan usaha untuk

memperkembangkan lagi bilangan pelanggan, yang mana memberikan

hasil yang baik. Jumlah yang lebih rendah akibat daripada permintaan

tempatan yang lemah telah diimbangi oleh permintaan yang tinggi

daripada pasaran luar negara sedia ada dan yang baru. Kita telah

memperolehi kontrak pengeluaran baru untuk komponen automotif

sedia ada di pasaran seperti Filipina dan Thailand di samping kontrak

baru untuk komponen kereta elektrik di Finland.

In our efforts to diversify our operations, our latest investment in the

butt-weld business of Sapura-Schulz has not been realised. In line with

the new and revised Financial Reporting Standard (“FRS”), we have taken

the step of full impairment of this business. The Board and Management

have both agreed this is the most prudent approach to adopt in view

of the uncertainties in fully realising this investment as well as any

potential accrued benefits. Going forward, we have resolved not to be

hampered by such setbacks. We have assimilated the key learnings from

this episode, have made the necessary arrangements to put it behind

us and will now focus our efforts on pursuing new opportunities while

continuing to undertake the utmost due diligence.

In view of our operating loss, the Board of Directors is not recommending

any dividend payments for the financial year ended 31 January 2007.

OPERATIONAL HIGHLIGHTs

In the period under review, we continued with our efforts to expand

our customer base, meeting with good results. The lower volumes

attributable to low demand on the local front was compensated for by

higher demand from existing and new overseas markets. We secured

additional manufacturing contracts for automotive components in

existing markets such as the Philippines and Thailand and secured a

new contract for the supply of components for electric cars in Finland.

Chairman’s Statement (Cont’d.)

Perutusan Pengerusi (Samb.)

Page 30: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan28

Keupayaan kami untuk terus memperolehi pasaran eksport adalah

hasil dari pengiktirafan pelanggan kami tentang usaha berterusan

kami untuk memperbaiki operasi dan memberi barangan dan

perkhidmatan yang bermutu tinggi. Kejayaan perlaksanaan beberapa

inisiatif strategik penting juga telah mengukuhkan lagi kedudukan kami

dimata pelanggan utama kami. Langkah-langkah untuk lebih effisyen

dalam kos di samping mengukuhkan operasi kendalian kami melalui

penambah-baikan dalam pengurusan sistem kualiti, telah meletakkan

kami dalam kedudukan yang baik. Hingga kini kami telah berjaya

memperolehi pengiktirafan ISO14000 dan OHSAS18001 di samping

pengiktirafan antarabangsa ISO/TS16949, MS ISO9001 dan QS9000

sedia ada yang dipatuhi oleh syarikat-syarikat dalam Kumpulan. Dimasa

hadapan, kami akan terus meningkatkan lagi tahap pencapaian dalam

kecekapan operasi dan sistem pengurusan kualiti global. Untuk tujuan

ini, kami telah memperkenalkan program MAJAICO untuk pelaksanaan

sistem pengeluaran kemas di dalam operasi kami dan dilaksanakan

dalam beberapa peringkat ditahun-tahun mendatang.

Pihak Kumpulan telah memperkenalkan petunjuk prestasi utama

(KPI) menyeluruh merangkumi setiap anak syarikat dan jabatan

berkaitan prestasi operasi dan kakitangan. Petunjuk-petunjuk ini akan

memastikan terdapat hubung kait berkesan di antara tanggungjawab

pekerja dan matlamatnya, di antara tuju arah unit perniagaan dan

sasarannya, di samping objektif Kumpulan dan matlamatnya.

Kami juga terus mematuhi amalan pembangunan berterusan yang

baik yang mengambil kira kesan perniagaan kami kepada pemegang

saham, alam sekitar dan komuniti dimana kami beroperasi.Tambahan

pula, kami terus meningkatkan lagi usaha untuk pembangunan sumber

manusia menerusi inisiatif latihan dan pelaksanaan plan pembangunan

kerjaya untuk pekerja kami.

Our ability to make good inroads into overseas markets has come on the

back of our customers’ recognition of our continuous efforts to improve

our operations and deliver products and services of the highest quality.

The successful implementation of several key strategic initiatives

we have been pursuing has also strengthened our position with key

customers. Our measures to be more cost efficient as well as strengthen

our operational efficiencies through making tangible improvements on

our quality management systems, have held us in good stead. To date we

have successfully achieved ISO14000 and OHSAS 18001 certification on

top of the existing ISO/TS16949, MS ISO9001 and QS 9000 international

standards that the Group’s companies already adhere to. Going forward,

we will continue to raise the bar on operational efficiencies and global

quality management systems. To this end, we have introduced the

MAJAICO programme for lean manufacturing into our operations and

expect it to be implemented in phases over the next few years.

The Group has instituted company-wide key performance indicators

(KPIs) within every subsidiary and department in relation to operational

and employee performance. These KPIs will ensure that there is effective

correlation between an individual’s responsibilities and targets, the

respective business unit’s goals and targets, as well as the Group’s

objectives and goals.

We also continue to adhere to good sustainable development practices

that take into account the impact of our business on our stakeholders,

the environment and the communities we operate in. Moreover,

we continue to bolster our human resource development efforts

through focused training initiatives and the implementation of career

development plans for our employees.

Chairman’s Statement (Cont’d.)

Perutusan Pengerusi (Samb.)

Annual Report 2007 Laporan Tahunan28

Page 31: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 29

OuTLOOk

Bank Negara Malaysia predicts a steady growth path for the Malaysian

economy in 2007, with real GDP expected to grow up to 6%. While any

moderation in the global economy can influence the export sector,

domestic demand from both private sector and public sector activity is

expected to support the growth momentum of the Malaysian economy.

The MAA predicts that total volume for the automotive industry in 2007

will grow by a modest 1.9% from 490,768 units in 2006 to 500,000 units

in 2007. It is expected that trading conditions for all automotive players

in Malaysia will remain challenging with higher interest rates, stricter

financing terms, lower trade-in values for used cars and high fuel prices

continuing to dampen vehicle sales.

PANdANGAN

Bank Negara Malaysia meramalkan pertumbuhan berterusan bagi

ekonomi Malaysia di tahun 2007, dengan KDNK sebenar dijangka

tumbuh sehingga 6%. Sementara sebarang pemodenan ekonomi

global boleh mempengaruhi sektor eksport, permintaan domestik bagi

aktiviti ke dua-dua sektor awam dan swasta dijangka akan menampung

momentum pertumbuhan ekonomi Malaysia.

Persatuan Automotif Malaysia meramalkan jumlah keseluruhan industri

automotif untuk tahun 2007 akan berkembang sebanyak 1.9% dari

490,768 unit di tahun 2006 kepada 500,000 unit ditahun 2007. Adalah

dijangkakan bahawa suasana perniagaan bagi kesemua syarikat

automotif di Malaysia akan kekal mencabar dengan kadar faedah

yang lebih tinggi, terma pembiayaan yang lebih ketat, nilai tukar beli

yang lebih rendah untuk kenderaan terpakai dan harga bahanapi yang

tinggi akan terus melembabkan penjualan kenderaan.

Chairman’s Statement (Cont’d.)

Perutusan Pengerusi (Samb.)

Page 32: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan30

Walaupun dalam suasana pasaran yang mencabar ini, dijangka

syarikat-syarikat kereta nasional dan bukan nasional akan melancarkan

model-model baru untuk kekal bersaing. Dengan pelancaran model-

model baru oleh Proton dan Perodua dan pengenalan beberapa

model pengganti atau diperbaharui untuk peringkat berpendapatan

sederhana, dijangkakan prestasi perniagaan komponen automotif

kami akan meningkat selaras dengan prestasi industri. Ketidakpastian

terhadap Proton sebagai pengeluar kereta No.1 dalam negara adalah

juga dijangka diselesaikan dalam masa terdekat dan akan memberi

galakan yang diperlukan kepada industri.

Walaupun satu tahun yang mencabar, yang pasti, dalam melangkah

kehadapan kami akan menumpukan segala usaha untuk meningkatkan

lagi kecekapan operasi dengan tujuan untuk beroleh keputusan yang

lebih baik dari pencapaian industri. Kami akan juga menumpukan

perhatian untuk menyelesaikan urusan anak syarikat yang telah

dirosotnilai untuk kebaikan Kumpulan serta meneruskan penerokaan

perniagaan dan peluang peluang pengilangan dan alatganti lain di

pasaran luar negara.

Despite this challenging market environment, both national and non-

national car companies are expected to launch new models to remain

competitive. With the launch of new models by Proton and Perodua

and the introduction of several replacements or facelift models for the

middle-income level, we expect the performance of our own automotive

components business to improve in tandem with industry performance.

The uncertainty on Proton’s position as the No. 1 car manufacturer in

the country is also expected to be resolved in the immediate future and

will give a much needed boost to the industry.

Despite a challenging year, rest assured that in going forward we will not

rest on our laurels but will focus our efforts on improving operational

efficiencies with the aim of performing better than the industry. We

will also focus on resolving the matter of the impaired subsidiary for

the benefit of the Group and will explore further business and original

equipment manufacturing opportunities as well as the replacement

market overseas.

Chairman’s Statement (Cont’d.)

Perutusan Pengerusi (Samb.)

Annual Report 2007 Laporan Tahunan30

Page 33: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 31

Dengan liberalisasi pasaran yang semakin hampir, industri automotif

tempatan akan memerlukan pengilang yang cekap dan boleh

dipercayai yang mana menonjol berbanding dengan yang lain.

Sebagai pengilang komponen automotif yang utama, kami akan

memperkukuhkan kedudukan pasaran kami dengan menetapkan

tunjuk aras baru dan mengembangkan bilangan produk sedia ada

melalui inisiatif pembangunan dan rekabentuk. Kami juga akan terus

mengambil faedah-faedah yang ada dibawah NAP dan menerokai

peluang-peluang untuk mengembangkan lagi perniagaan kami.

PENGHARGAAN

Bagi pihak Lembaga Pengarah, saya ingin menyampaikan penghargaan

saya kepada pemegang-pemegang saham, pelanggan-pelanggan,

pembekal-pembekal, bank-bank, rakan-rakan perniagaan dan agensi-

agensi kerajaan di atas sokongan teguh kepada Kumpulan walaupun

berhadapan dengan cabaran-cabaran di tahun 2006.

Penghargaan ikhlas saya juga diberikan kepada kumpulan pengurusan

dan semua kakitangan kami atas kesetiaan dan sumbangan berharga

mereka. Saya mengharapkan sokongan yang berterusan mereka

semua bilamana Kumpulan Sapura Industrial bergerak kehadapan

untuk menempuh berbagai cabaran dan merebut berbagai peluang

yang muncul.

With market liberalisation around the corner, the local automotive

industry will require efficient and reliable local manufacturers that

stand out from the rest. As a key automotive components player, we

will strengthen our market position by setting new benchmarks and

expanding our current product mix through design and development

initiatives. We will also continue to tap the export-oriented benefits

under the NAP and explore opportunities to expand our business.

APPRECIATION

On behalf of the Board of Directors, I wish to convey my gratitude to our

shareholders, customers, suppliers, financiers, business associates and

government agencies for their steadfast support of the Group despite

the challenges of 2006.

My sincere appreciation goes to our management team and all our

staff for their loyalty and worthy contributions. I look forward to the

continuing support of all our stakeholders as the Sapura Industrial

Group moves on to overcoming the many challenges and tapping the

myriad opportunities before us.

Thank you / Terima kasih.

Tan sri dato’ seri Ir. shamsuddin bin Abdul kadir

Chairman / Pengerusi

Chairman’s Statement (Cont’d.)

Perutusan Pengerusi (Samb.)

Page 34: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 32

Forging strong alliances

Membentuk pakatan yang teguh

Page 35: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 33

By continuing to deliver products and services of the highest quality, we are buliding on our reputation

as a trusted and reliable partner to major automotive players.

Dengan terus menghasilkan produk dan perkhidmatan yang berkualiti tinggi, kami membina reputasi

kami sebagai rakan yang boleh dipercayai dan diharap kepada pengeluar automotif yang utama.

Page 36: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 34

44.55% Sapura Holdings Sdn. Bhd.

47.93% Malaysian Public

7.52% AMDB Berhad Paid up Capital / Modal Berbayar

RM72.776 million / juta

100% Sapura Machining Corporation Sdn. Bhd. (RM15 million / juta)

100% Sapura Automotive Industries Sdn. Bhd. (RM7.1 million / juta)

100% Sapura Technical Centre Sdn. Bhd. (RM2 million / juta)

100% Asian Automotive Steels Sdn. Bhd. (RM4 million / juta)

100% Sapura Brake Technologies Sdn. Bhd. (RM3 million / juta)

100% Automotive Specialist Centre Sdn. Bhd. (RM1 million / juta)

100% Isencorp Sdn. Bhd. (RM500 thousand / ribu)

75% Sapura-Schulz Hydroforming Sdn. Bhd. (RM32 million / juta)

51.68% Subang Properties Sdn. Bhd. (RM184 thousand / ribu)

100% Metal Formers Sdn. Bhd. (RM4.5 million / juta)

Company Structure as at 31 January 2007

Struktur Syarikat pada 31 Januari 2007

33.3% Ciri Tegap Sdn. Bhd. (RM900 thousand / ribu)

100% Awaltek Sdn. Bhd. (RM2)

Page 37: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 35

Statement on Internal Control

ResPonsiBility

The Board of Directors (“the Board”) of Sapura Industrial Berhad acknowledges responsibility for maintaining a sound system of internal control for the Group and for reviewing its adequacy and integrity so as to safeguard shareholders’ investment and the assets of the Group whilst the management’s role is to implement Board policies on risk and control.

However, due to inherent limitation the Board recognizes that the system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

Key PRoCesses

In pursuing its responsibility, the Board has an ongoing process for identifying, evaluating and managing the significant risks faced by the Group, which has been in place for the financial year under review and up to the date of approval of the Annual Report and Financial Statements. This process is regularly reviewed by the Board through its Audit Committee and is in accordance with the guidelines on Statement on Internal Controls: Guidance for Directors of Public Listed Companies.

The Audit Committee assists the Board in reviewing the adequacy and integrity of the system of internal controls of the Group. The Audit Committee is assisted by the Internal Audit Department which carries out regular and systematic review of the systems of internal control of the Group and also the extent of compliance with the Group’s operating policies and procedures.

The Internal Audit Department carries out internal control reviews on the financial and operating activities of the Group based on an annual plan that was presented and approved by the Audit Committee.

An Enterprise - Wide Risk Management framework through the application of the Corporate Risk Scorecard (CRS) has been established for Sapura Industrial Berhad. The risk assessment and findings were identified through a combination of interviews and a facilitated workshop. The process used in the interviews and workshop provided a structured approach in identifying, prioritising and managing the risks. The systems adopted are reviewed on a routine basis by subsidiaries under the Group’s activities.

systeM of inteRnal ContRols

The key elements of the framework of the internal control system of the Group are as follows :

• All major decisions require the full approval of the Board and are only made after appropriate in-depth analysis. The Board meets regularly on a quarterly basis and receives comprehensive reports covering all Divisions and Departments within the Group.

• All Departments and Divisions of the Group have clearly documented Manuals incorporating control procedures and scope of responsibilities and authorities. The Manuals are regularly updated on practical needs and industry best practice.

• The Internal Audit Department independently reviews the control processes implemented by management and reports its findings and recommendations to the Audit Committee for presentation to the Board.

• The Audit Committee, on behalf of the Board, regularly reviews and holds discussion with management on the action taken on internal control issues identified in reports prepared by the Internal Audit Department, the External Auditors and the Management. During the current financial year to 31 January 2007, three (3) of such reports were received and reviewed by the Audit Committee.

• An Annual Budget and Business Plan are prepared and adopted by the Board to facilitate the Group in its business and financial performance. The Board reviews and monitors the achievements of the Group’s performance covering each business unit’s performance on a quarterly basis.

• Weekly Senior Management Meeting attended by Senior General Managers chaired by the Managing Director are conducted to deliberate on business, financial and operating issues which include reviewing and approving all key business strategic measures and policies.

• A monthly Coordination Committee Meeting attended by all unit Business Head, Senior General Managers and Internal Audit and chaired by the Managing Director or Chief Operating Officer to review operational performance, progress of tasks undertaken and progress status of any internal control measures recommended to the business unit during the course of internal audit.

• At each operating company level, a monthly company Management Meeting, chaired by the Chief Operating Officer or General Manager and attended by all Department Heads to deliberate on operational issues and performance of the company where actual expenses against budget are discussed and reviewed in the meeting.

Statement made in accordance with a resolution of the Board of Directors dated 22 May 2007.

the Board

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Annual Report 2007 Laporan Tahunan 36

Penyataan Kawalan Dalaman

tanggungjawaB

Lembaga Pengarah Sapura Industrial Berhad mempunyai tanggungjawab dalam mengekalkan keberkesanan sistem kawalan dalaman Kumpulan dan mengkaji semula kesempurnaan dan keutuhannya bagi menjamin keselamatan pelaburan pemegang saham dan aset Kumpulan manakala peranan pihak pengurusan pula ialah untuk melaksanakan polisi risiko dan kawalan yang digariskan oleh Lembaga Pengarah.

Walaubagaimanapun, disebabkan batasan luar kawalan, Lembaga Pengarah mengakui bahawa sistem kawalan dalaman direka untuk mengurus dan bukannya untuk menghapus risiko kegagalan dalam mencapai objektif perniagaan dan hanya dapat memberi jaminan yang munasabah dan bukannya jaminan penuh terhadap sebarang penyataan salah atau kerugian yang ketara.

PRoses utaMa

Dalam menjalankan tanggungjawabnya, Lembaga Pengarah telah melalui proses untuk mengenalpasti, menilai dan mengurus risiko yang dihadapi oleh Kumpulan, yang telah dipraktikkan dalam tahun kewangan yang disemak sehingga pada tarikh Laporan Tahunan dan Penyata Kewangan diluluskan. Proses ini disemak secara kerap oleh Lembaga Pengarah melalui Jawatankuasa Audit dan menurut Garis Panduan Penyataan Kawalan Dalaman: Panduan untuk Pengarah Syarikat Awam Tersenarai.

Jawatankuasa Audit membantu Lembaga Pengarah menyemak kesempurnaan dan keutuhan sistem kawalan dalaman Kumpulan. Jawatankuasa Audit pula dibantu oleh Jabatan Audit Dalaman yang menjalankan semakan secara berkala dan sistematik ke atas sistem kawalan dalaman Kumpulan serta tahap kepatuhan terhadap polisi operasi dan prosedur Kumpulan.

Jabatan Audit Dalaman melaksanakan semakan kawalan dalaman ke atas kewangan dan aktiviti operasi Kumpulan berdasarkan perancangan tahunan yang telah dikemukakan dan diluluskan oleh Jawatankuasa Audit.

Rangka Kerja Pengurusan Risiko Organisasi secara menyeluruh melalui penggunaan Carta Risiko Korporat telah ditubuhkan untuk Sapura Industrial Berhad. Risiko dinilai dan dikenalpasti melalui gabungan temuramah dan bengkel kerja yang telah diadakan. Langkah-langkah yang telah digunakan dalam temuramah dan bengkel kerja telah menghasilkan satu kaedah yang berstruktur dalam proses mengenalpasti, mengutamakan dan menguruskan risiko. Sistem yang digunapakai dinilai secara rutin oleh semua anak syarikat di bawah aktiviti Kumpulan.

sisteM Kawalan DalaMan

Elemen utama rangka kerja sistem kawalan dalaman Kumpulan adalah seperti berikut :

• Semua keputusan penting memerlukan kelulusan penuh dari pihak Lembaga Pengarah setelah analisis yang teliti dan mendalam dibuat. Lembaga Pengarah sentiasa mengadakan perjumpaan pada setiap suku tahun, dan menerima laporan yang lengkap merangkumi semua Bahagian dan Jabatan di dalam Kumpulan.

• Semua Jabatan dan Bahagian di dalam Kumpulan mempunyai Buku Panduan yang jelas mengandungi prosedur kawalan dan skop tanggungjawab serta bidang kuasa. Buku Panduan ini sentiasa dikemaskini mengikut keperluan praktikal dan amalan terbaik industri.

• Jabatan Audit Dalaman secara bebas menyemak proses kawalan yang dilaksanakan oleh pihak pengurusan dan melaporkan penemuan dan cadangan kepada Jawatankuasa Audit untuk dibentangkan kepada Lembaga Pengarah.

• Bagi pihak Lembaga Pengarah, Jawatankuasa Audit sentiasa menyemak dan mengadakan perbincangan dengan pihak pengurusan tentang langkah yang diambil ke atas isu kawalan dalaman yang dikenalpasti dalam laporan yang disediakan oleh Jabatan Audit Dalaman, Juruaudit Luar dan pihak Pengurusan. Dalam tahun kewangan semasa hingga 31 Januari 2007, tiga (3) laporan telah diterima dan disemak oleh Jawatankuasa Audit.

• Belanjawan Tahunan dan Pelan Perniagaan disediakan dan diterimapakai oleh Lembaga Pengarah untuk membantu Kumpulan dalam urusan perniagaan dan prestasi kewangan. Lembaga Pengarah menyemak dan memantau prestasi Kumpulan meliputi setiap prestasi unit perniagaan pada setiap suku tahun.

• Mesyuarat Pengurusan Kanan Mingguan dihadiri oleh Pengurus Besar Kanan dan dipengerusikan oleh Pengarah Urusan untuk membincangkan isu-isu perniagaan, kewangan dan operasi termasuk menyemak dan meluluskan semua langkah-langkah strategik dan polisi perniagaan yang utama.

• Mesyuarat Jawatankuasa Koordinasi Bulanan dihadiri oleh semua ketua Unit Perniagaan, Pengurus Besar Kanan dan Audit Dalaman dan dipengerusikan oleh Pengarah Urusan atau Ketua Pegawai Operasi untuk menyemak prestasi operasi, kemajuan kerja dan status langkah-langkah kawalan dalaman yang disyorkan kepada unit perniagaan semasa kerja-kerja audit dalaman.

• Pada setiap tahap operasi syarikat, Mesyuarat Pengurusan bulanan syarikat yang dipengerusi oleh Ketua Pegawai Operasi atau Pengurus Besar dan dihadiri oleh semua ketua jabatan untuk menerangkan tentang isu operasi dan prestasi syarikat di mana perbelanjaan sebenar dibandingkan dengan bajet dibincang dan disemak di dalam mesyuarat tersebut.

Penyataan ini adalah menurut resolusi ahli Lembaga Pengarah bertarikh 22 Mei 2007.

lembaga Pengarah

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Annual Report 2007 Laporan Tahunan 37

Corporate Governance Statement

The Board recognizes that corporate governance is about commitment to values and ethical conduct thus, the Board is fully committed in ensuring that the interests of all stakeholders are not just safeguarded, but continually enhanced in values. The stakeholders expectation must be assessed and managed, and not assumed.

The Board is pleased to report to the shareholders on the manner in which the Company has strengthened its application of the principles of corporate governance and adopted the corporate governance best practices laid down in the Malaysian Code on Corporate Governance (the Code).

a. DiReCtoRs

the Board The Board is responsible and committed to adopt good corporate

governance practices as part of its continuing obligations. It guides and monitors the affairs of the Group on behalf of the shareholders and retains full and effective control over the Group. The principal responsibilities include the primary responsibilities prescribed under the Code. These cover a review of the strategic direction for the Group, overseeing the business operations of the Group and evaluating whether these are being properly and effectively managed.

Board Balance The composition of the Company’s current Board of Directors is

well balanced, with an effective mix of executive directors and independent non-executive directors. There are two (2) executive directors, three (3) non-independent non-executive directors and three (3) independent non-executive directors. The Board is satisfied that the current Board composition fairly reflects the investment of minority shareholders in the Company. A brief profile of the directors is presented on pages 14 to page 21 of this Annual Report. The directors with diverse background provide an effective Board with a mix of industry-specific knowledge and broad business and commercial experience.

The Board in respect of the ratio of independent directors complies with the Bursa Malaysia Securities Berhad (Bursa Malaysia) Listing Requirements that one third (1/3) of its Board consists of independent directors. The independent directors are professionals of credibility and repute who demonstrate independence of judgement and objectivity in the Board’s deliberations.

The Managing Director in particular has the general responsibility for running the business on a day-to-day basis, ensuring business excellence and operational efficiency. He is responsible for implementing the policies and decisions of the Board, overseeing the operations as well as coordinating the development and implementation of business and corporate strategies. The Managing Director is supported by the Senior Management team and Coordination Committee who possessed vast experience, skill and knowledge in the industry.

The independent non-executive directors bring to bear objective and independent judgement to the decision making of the Board and provide a check and balance for the executive directors.

The non-executive directors contribute significantly in areas such as policy and strategy, performance monitoring, allocation of resources as well as improving governance and controls. Together with the Managing Director who has an intimate knowledge of the business, the Board is constituted of individuals who are committed to business integrity and professionalism in all its activities.

Board and Board Committee Meetings The Board ordinarily meets at least four (4) times a year at

quarterly intervals, with additional meetings convened as and when deemed necessary. At each regularly schedule meeting there is a full financial and business reviews and discussion including evaluating the performance to date against the annual budget and business plan previously approved by the Board for that year. In the current financial year under review, the Board held six (6) meetings. All the directors attended more than fifty per centum (50%) of the Board meetings held, in compliance with the Listing Requirements of Bursa Malaysia and the Company’s Articles of Association. The details of the attendance of the directors to the Board meetings are as follows:-

no. name of Directors attendance

1. Tan Sri Dato’ Seri Ir. Shamsuddin

bin Abdul Kadir

6

2. Datuk Shahril bin Shamsuddin 5

3. Dato’ Azlan bin Hashim 4

4. Dato’ Mazlin bin Md Junid 6

5. Shah Hakim bin Zain 6

6. Ir. Md. Shah bin Hussin 6

7. Shahriman bin Shamsuddin 6

8. Datuk Kisai bin Rahmat (appointed on 18 October 2006)

1

9. Dato’ Dr. Ismail bin Saad (retired on 19 July 2006)

3

10. Azmi bin Hashim (alternate director to Dato ’ Azlan bin Hashim)

2

To facilitate effective discharge of responsibilities, dedicated Board Committees were established guided by clear terms of references with directors who have committed time and effort as members. The Board Committees are chaired by non-executive directors who exercise skillful leadership with in-depth knowledge of the relevant industry.

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Annual Report 2007 Laporan Tahunan 38

Corporate Governance Statement (Cont’d.)

• audit Committee The primary objective of the Audit Committee is to assist the

Board of Directors in discharging its responsibilities relating to financial accounting and reporting matters. In compliance with the Bursa Malaysia Listing Requirements and the Code, the Audit Committee comprises of three (3) directors, a majority of whom are independent non-executive directors:

Chairman : Dato’ Mazlin bin Md Junid (Independent Non-Executive Director)

Members : Dato’ Dr. Ismail bin Saad (Independent Non-Executive Director) (retired with effect from19 July 2006)

Dato’ Azlan bin Hashim (Non-Independent Non-Executive Director)

Datuk Kisai bin Rahmat (Independent Non-Executive Director) (appointed with effect from18 October 2006) The terms of reference and the report of Audit Committee are

set out on pages 45 to 46.

The Audit Committee held five (5) meetings during the financial year.

• Board nomination and Remuneration Committee The main objective of the Board Nomination and Remuneration

Committee (BNRC) is to determine the criteria for Board/Board Committee’s membership, structure, responsibilities and effectiveness as well as to review, assess and recommend to the Board the remuneration packages of the executive directors.

Currently, the BNRC comprised of wholly Non-Executive Directors.

Chairman : Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir (Non-Independent Non-Executive Director)

Member : Dato’ Mazlin bin Md Junid (Independent Non-Executive Director) Datuk Kisai bin Rahmat (Independent Non-Executive Director)

This composition of only Non-Executive Directors in the Committee ensures that any decisions made are impartial and in the best interest of the Company without any element of fear or favour.

The BNRC held one (1) meeting during the financial year.

The proceedings of and resolutions passed at each Board and Board Committee meeting are minuted and kept in the statutory register at the registered office of the Company. In the event of potential conflict of interest, the directors in such a position will make a declaration to that effect as soon as practicable. The directors concerned will then abstain from any decision making process in which they are interested.

supply of information The Board has unrestricted access to timely and accurate information,

necessary in the furtherance of their duties. The Company Secretary ensures that all Board Meetings are furnished with proper agendas. Board papers which include reports on group performance and major operational, financial, strategic and regulatory matters, are circulated to all the directors at least three (3) days prior to the meeting, to allow the directors to have sufficient time to review the Board papers. In most instances, senior management of the Company as well as external advisors are invited to be in attendance at Board meetings to provide insight and to furnish clarification on issues that may be raised by the Board.

Directors also have full and unrestricted access to the advice and services of the Company Secretary who ensures compliance with current laws, rules and regulations.

independent Professional advice There is a formal procedure sanctioned by the Board of Directors,

whether as a full board or in their individual capacity to take independent professional advice at the Group’s expense, where necessary and in furtherance of their duties.

appointment to the Board In line with Best Practice recommended by the Code, the Board

Nomination and Remuneration Committee was set up which is responsible for establishing a formal and transparent selection processes for the appointment of new directors to the Board. The Committee will review the required mix of skills and experience of the directors of the Board and determine the appropriate Board balance and size of non-executive directors. It will establish procedures and processes towards an annual assessment of the effectiveness of the Board as a whole, the committees of the Board and for assessing the contribution of each individual director. The Board is satisfied that the current composition of the Board brings the required mix of skills and experience required for the Board to function effectively.

Directors’ training All directors have attended and successfully completed Bursa

Malaysia’s Mandatory Accreditation Programme (MAP). In line with the Listing Requirements Practice Note 15/2003, on Continuing Education Programme (CEP), all directors continued to attend various accredited programmes under the CEP so as to enable them to keep abreast with relevant changes in laws and regulations and henceforth be able to discharge their duties in an effective manner.

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Annual Report 2007 Laporan Tahunan 39

Corporate Governance Statement (Cont’d.)

During the financial year ended 31 January 2007, the Company together with other listed companies within the Sapura Group had successfully organized training programmes and workshops for the directors. The list of training programmes and workshops are as follows:-

• Prevention of Corporate Fraud • Balance Scorecard as a Strategic instrument • Capturing organizational learning with knowledge management

Re-election The existing Company’s Articles of Association provides that

all directors appointed by the Board are subject to election by the shareholders at their first general meeting and thereafter shall retire from office by rotation at least once in each three (3) years, but shall be eligible for re-election at each Annual General Meeting.

B. DiReCtoRs’ ReMuneRation

level and Make-up of Remuneration The BNRC is responsible for evaluating and recommending to the

Board the level and make-up of the remuneration of the Managing Director, ensuring that they commensurate with the scope of responsibilities held in order to attract and retain the person of necessary caliber, experience and quality needed to lead the Company successfully.

Remuneration Procedure During the financial year, the remuneration package for the

Managing Director and Executive Director were recommended by the BNRC and approved by the Board with the individual director affected not involved in the approval of their own packages. The directors’ fees are approved by the shareholders at the Annual General Meeting.

The details of the directors’ remuneration for the financial year ended 31 January 2007 are as follows:

executivenon-

executive total

RM RM RM

Fees and Allowance – 220,950.00 220,950.00

Salaries 913,348.00 – 913,348.00

Bonus* 350,000.00 – 350,000.00

Benefits in Kind 159,127.00 375.00 159,502.00

total 1,422,475.00 221,325.00 1,643,800.00

* amount received for previous year

The number of directors whose remuneration fall into the following bands are as follows:

Band executivenon-

executive total

Below RM50,000 – 7 7

RM50,001– RM100,000

– – –

RM100,001 – RM150,000

– – –

RM150,001 – RM200,000

– – –

RM200,001 – RM250,000

– – –

RM250,001 – RM300,000

– – –

RM300,001 – RM350,000

– – –

RM350,001 – RM400,000

– – –

RM400,001 – RM450,000

– – –

RM450,001 – RM500,000

– – –

RM500,001 – RM550,000*

1 – 1

RM550,001 – RM600,000

– – –

RM600,001 – RM650,000

– – –

RM650,001 – RM700,000

– – –

RM700,001 – RM750,000

– – –

RM750,001 – RM800,000

– – –

RM800,001 – RM850,000

– – –

RM850,001 – RM900,000

– – –

RM900,001 – RM950,000

– – –

RM950,001 – RM1,000,000

– – –

RM1,000,001 – RM1,050,000*

1 – 1

total 2 7 9

* amount received includes bonus for previous year

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Annual Report 2007 Laporan Tahunan 40

Corporate Governance Statement (Cont’d.)

C. sHaReHolDeRs

the annual general Meeting The Company had been using Annual General Meetings as a

platform for communicating with its shareholders. All shareholders are welcome to attend the Company’s Annual General Meeting and to actively participate in the proceedings. They are encouraged to give their views and suggestions for the benefit of the Company. Every opportunity is given to shareholders to ask questions and seek clarification on the business and performance of the Company.

Dialogue between Company and investors The annual reports and the quarterly announcements are the

primary mode of communication to report on the Group’s business, activities and financial performance to all its shareholders.

The key element of the Company’s dialogue with its shareholders is the opportunity to gather views of and answer questions from both private and institutional shareholders on all issues relevant to the Company at the Annual General Meeting. At the Annual General Meeting, the shareholders are encouraged to ask questions either about the resolutions being proposed or about the Group’s operations in general.

D. aCCountaBility anD auDit

financial Reporting The Board aims to provide and present a balanced and meaningful

assessment of the Group’s financial performance and prospects at the end of the financial year, primarily through the annual financial statements, quarterly announcement of results to shareholders as well as the Chairman’s statement and review of operations in the annual report. The Board is assisted by the Audit Committee to oversee the Group’s financial reporting processes and the quality of its financial reporting.

internal Control The Board acknowledges its overall responsibility for maintaining

a sound system of internal control to safeguard shareholders’ investment and Group assets. The Statement on Internal Control is presented on page 35 of the Annual Report providing an overview of the state of internal control within the Group.

Relationship with auditors The Board through the Board Audit Committee maintains a formal

and transparent professional relationship with both the Group internal and external auditors.

The function of the Audit Committee in relation to the external auditors and the number of meetings held since the previous financial year end as well as the attendance record of each member is shown in the Audit Committee Report on pages 45 to 46 of the Annual Report.

The membership of the Audit Committee, the terms of reference and a summary of the activities of the committee are presented in the Audit Committee Report on pages 45 to 46 of the Annual Report.

Directors’ Responsibility statementThe directors are required by the Companies Act, 1965 to ensure that financial statements prepared for each financial year give a true and fair view of the state of the affairs of the Company and the Group as at the end of the financial year and of the results and cash flow of the Group for the financial year.

CoMPlianCe witH tHe Best PRaCtiCes

The Group has adopted various steps to set out principles and best practice to ensure compliance with the Best Practices of the Code during the financial year.

Statement made in accordance with a resolution of the Board of Directors dated 22 May 2007.

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Annual Report 2007 Laporan Tahunan 41

Penyata Tadbir Urus Korporat

Lembaga Pengarah menyedari bahawa tadbir urus korporat adalah mengenai komitmen kepada nilai-nilai dan etika perilaku, lantaran itu Lembaga Pengarah bertanggungjawab sepenuhnya dalam memastikan kepentingan semua pemegang saham bukan hanya sekadar dilindungi tetapi juga sentiasa ditambahbaikkan. Harapan setiap pemegang saham perlu dinilai dan diuruskan, bukan diandaikan.

Lembaga Pengarah berbesar hati melaporkan kepada pemegang saham bagaimana Syarikat telah mengukuhkan penggunaan dasar-dasar tadbir urus korporat dan mengaplikasi amalan terbaik di dalam tadbir urus koporat seperti yang disyorkan di dalam Kod Tadbir Urus Korporat Malaysia (Kod).

a. PengaRaH

lembaga Pengarah Lembaga Pengarah bertanggungjawab dan beriltizam

melaksanakan amalan tadbir urus korporat yang baik sebagai sebahagian dari kewajipan yang berterusan. Ia memimpin dan memantau urusan Kumpulan bagi pihak pemegang saham dan mengekalkan kawalan penuh dan efektif terhadap Kumpulan. Tanggungjawab-tanggungjawab asas termasuk tanggungjawab-tanggungjawab utama seperti yang disaran oleh Kod. Ini merangkumi penelitian halatuju strategik Kumpulan, penyeliaan operasi perniagaan Kumpulan dan menilai sama ada ianya diuruskan secara baik dan berkesan.

Keseimbangan lembaga Pengarah Komposisi Lembaga Pengarah Syarikat sekarang adalah seimbang

dengan gabungan pengarah eksekutif dan pengarah bebas bukan eksekutif. Terdapat dua (2) orang pengarah eksekutif, tiga (3) orang pengarah bukan bebas bukan eksekutif dan tiga (3) orang pengarah bebas bukan eksekutif. Lembaga Pengarah berpuas hati bahawa komposisi Lembaga Pengarah ini menggambarkan secara adil pegangan pelaburan saham minoriti Syarikat. Profil ringkas para pengarah dilampirkan di muka surat 14 hingga 21 dalam Laporan Tahunan ini. Para pengarah dari latar belakang yang berbeza ini menghasilkan satu Lembaga Pengarah yang efektif dengan kepelbagaian pengetahuan khusus industri serta pengalaman perniagaan dan komersil yang luas.

Lembaga Pengarah mematuhi keperluan Penyenaraian Bursa Malaysia Securities Berhad (BMSB) berkenaan nisbah pengarah bebas di mana satu pertiga (1/3) daripada ahli Lembaga Pengarah terdiri daripada pengarah bebas. Pengarah bebas adalah terdiri daripada golongan profesional yang mempunyai kredibiliti dan reputasi untuk memberi pandangan bebas dan objektif di dalam keputusan Lembaga Pengarah.

Pengarah Urusan, khususnya, mempunyai tanggungjawab untuk menguruskan perniagaan harian syarikat, memastikan kecemerlangan perniagaan dan kecekapan operasi. Beliau juga bertanggungjawab dalam melaksanakan polisi dan keputusan Lembaga Pengarah, menyelia operasi perniagaan serta menyelaraskan pembangunan dan perlaksanaan strategi perniagaan dan korporat. Pengarah Urusan disokong oleh Kumpulan Pengurusan Kanan dan Jawatankuasa Koordinasi yang mempunyai pengalaman luas, skil dan pengetahuan di dalam industri ini.

Pengarah bebas bukan eksekutif mengemukakan pandangan yang bebas dan objektif terhadap segala keputusan yang dibuat oleh Lembaga Pengarah, mewujudkan pengawasan dan timbangtara untuk pengarah-pengarah eksekutif.

Pengarah bukan eksekutif menyumbang dalam perkara-perkara berkaitan polisi dan strategi, pemantauan perlaksanaan, peruntukan sumber di samping mempertingkatkan tadbir urus dan kawalan. Bersama Pengarah Urusan yang mempunyai pengetahuan yang mendalam di dalam perniagaan, Lembaga Pengarah Syarikat tergolong daripada individu yang komited dengan keutuhan perniagaan dan profesionalisma di dalam semua aktivitinya.

Mesyuarat lembaga Pengarah dan jawatankuasa lembaga Pengarah

Pada kebiasaannya Lembaga Pengarah bersidang sekurang-kurangnya empat (4) kali setahun setiap suku tahun, dengan mesyuarat-mesyuarat tambahan dijalankan mengikut keperluan. Pada setiap mesyuarat yang dijadualkan, status keseluruhan kewangan dan perniagaan serta perbandingan prestasi semasa dengan belanjawan tahunan dan pelan perniagaan yang telah diluluskan oleh Lembaga Pengarah untuk tahun itu dibentang. Dalam tahun kewangan yang disemak, mesyuarat Lembaga Pengarah telah diadakan sebanyak enam (6) kali. Kesemua Lembaga Pengarah menghadiri lebih lima puluh peratus (50%) daripada jumlah mesyuarat yang telah diadakan, mematuhi Keperluan Penyenaraian Bursa Malaysia Securities Berhad (BMSB) dan Tataurusan Pertubuhan Syarikat. Butiran kedatangan pengarah di setiap mesyuarat Lembaga Pengarah adalah seperti berikut:-

no. nama Pengarah Kedatangan

1. Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir

6

2. Datuk Shahril bin Shamsuddin 5

3. Dato’ Azlan bin Hashim 4

4. Dato’ Mazlin bin Md Junid 6

5. Shah Hakim bin Zain 6

6. Ir. Md. Shah bin Hussin 6

7. Shahriman bin Shamsuddin 6

8. Datuk Kisai bin Rahmat (dilantik pada 18 Oktober 2006)

1

9. Dato’ Dr. Ismail bin Saad (bersara pada 19 Julai 2006)

3

10. Azmi bin Hashim (pengarah gantian kepada Dato ’ Azlan bin Hashim)

2

Untuk memudahcara perlaksanaan tanggungjawab yang berkesan, Jawatankuasa-jawatankuasa Lembaga Pengarah khas telah dibentuk dengan terma rujukan yang jelas bersama dengan pengarah-pengarah yang komited dengan masa dan usaha sebagai ahli. Jawatankuasa-jawatankuasa Lembaga Pengarah dipengerusikan oleh pengarah bukan eksekutif yang mempunyai daya kepimpinan yang mahir di samping pengetahuan mendalam di dalam industri berkaitan.

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Annual Report 2007 Laporan Tahunan 42

Penyata Tadbir Urus Korporat (Samb.)

• jawatankuasa audit

Objektif utama Jawatankuasa Audit adalah untuk membantu Lembaga Pengarah di dalam melaksanakan tanggungjawabnya berhubung dengan perkara-perkara perakaunan kewangan dan laporan. Sejajar dengan pematuhan Keperluan Penyenaraian Bursa Malaysia Securities Berhad dan Kod, Jawatankuasa Audit terdiri daripada tiga (3) orang pengarah yang majoritinya adalah pengarah bebas bukan eksekutif:

Pengerusi : Dato’ Mazlin bin Md Junid (Pengarah Bebas Bukan Eksekutif)

Ahli : Dato’ Dr. Ismail bin Saad (Pengarah Bebas Bukan Eksekutif) (bersara pada19 Julai 2006)

Dato’ Azlan bin Hashim (Pengarah Bukan Bebas Bukan Eksekutif)

Datuk Kisai bin Rahmat (Pengarah Bebas Bukan Eksekutif) (dilantik pada18 Oktober 2006)

Terma rujukan dan laporan Jawatankuasa Audit terkandung di muka surat 47 hingga 48.

Mesyuarat Jawatankuasa Audit telah diadakan sebanyak lima (5) kali di dalam tempoh kewangan.

• jawatankuasa Pencalonan dan imbuhan

Objektif utama Jawatankuasa Pencalonan dan Imbuhan (BNRC) ialah untuk menentukan kriteria keahlian Lembaga Pengarah/Jawatankuasa Lembaga Pengarah, struktur, tangunggjawab dan keberkesanan di samping untuk menyemak, menilai dan mengusulkan kepada Lembaga Pengarah pakej imbuhan pengarah eksekutif.

Buat masa ini, semua ahli-ahli BNRC terdiri daripada pengarah bukan eksekutif.

Pengerusi : Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir (Pengarah Bukan Bebas Bukan Eksekutif)

Ahli : Dato’ Mazlin bin Md Junid (Pengarah Bebas Bukan Eksekutif) Datuk Kisai bin Rahmat (Pengarah Bebas Bukan Eksekutif)

Komposisi Jawatankuasa ini yang terdiri daripada pengarah bukan eksekutif memastikan sebarang keputusan dibuat dengan adil dan untuk kepentingan Syarikat tanpa unsur-unsur gentar atau pilih kasih.

BNRC mengadakan satu (1) mesyuarat dalam tempoh tahun kewangan ini.

Prosiding-prosiding dan resolusi-resolusi yang diluluskan pada setiap mesyuarat Lembaga Pengarah atau Jawatankuasa Lembaga Pengarah diminit dan disimpan di dalam buku daftar berkanun di pejabat berdaftar Syarikat. Sekiranya terdapat percanggahan kepentingan, pengarah-pengarah yang terlibat di dalam keadaan tersebut akan membuat pengakuan mengenainya dengan kadar segera. Pengarah yang terlibat akan kemudiannya dikecualikan dari terlibat dengan proses membuat keputusan di mana mereka berkepentingan.

sumber Maklumat Lembaga Pengarah mempunyai hak tanpa had untuk memperolehi

maklumat yang terkini dan tepat bagi menjalankan tugas mereka. Setiausaha Syarikat akan memastikan semua Mesyuarat Lembaga Pengarah dilengkapi dengan agenda yang sewajarnya. Laporan Lembaga Pengarah untuk mesyuarat yang mengandungi laporan tentang prestasi Kumpulan dan operasi utama, laporan kewangan, hal-hal strategik dan perundangan akan diedarkan terlebih dahulu kepada semua pengarah sekurang-kurangnya tiga (3) hari sebelum mesyuarat diadakan, untuk memberi masa yang secukupnya kepada para pengarah meneliti semua laporan berkenaan. Dalam kebanyakan masa, pihak pengurusan kanan Syarikat di samping penasihat luar dijemput menghadiri mesyuarat Lembaga Pengarah untuk memberi maklumat dan penjelasan di dalam isu-isu yang mungkin dibangkitkan oleh Lembaga Pengarah.

Para pengarah juga boleh mendapat khidmat nasihat dan perkhidmatan dari Setiausaha Syarikat yang memastikan semua undang-undang dan peraturan semasa dipatuhi.

nasihat Profesional Bebas Terdapat satu prosedur rasmi yang ditetapkan oleh Lembaga

Pengarah untuk para pengarah, sama ada sebagai satu Lembaga Pengarah penuh atau di dalam kapasiti individu mereka sendiri, bagi mendapatkan nasihat profesional bebas atas tanggungan Kumpulan dalam melaksanakan kewajipan mereka.

Pelantikan lembaga Pengarah Sejajar dengan Amalan Terbaik yang disyorkan oleh Kod,

Jawatankuasa Penamaan dan Imbuhan telah diwujudkan di mana ia bertanggungjawab untuk menubuhkan satu proses pemilihan yang formal dan telus bagi perlantikan pengarah baru ke dalam Lembaga Pengarah. Jawatankuasa ini akan menyemak kepelbagaian kebolehan dan pengalaman yang diperlukan oleh Lembaga Pengarah dan menentukan keseimbangan ahli Lembaga Pengarah serta saiz pengarah bukan eksekutif. Ia juga akan menentukan proses dan prosedur di dalam membuat penilaian tahunan tentang keberkesanan Lembaga Pengarah secara keseluruhan, Jawatankuasa Lembaga Pengarah dan juga menilai sumbangan yang diberikan oleh setiap pengarah. Lembaga Pengarah berpuas hati dengan komposisi semasa Lembaga Pengarah yang merangkumi pelbagai bidang kemahiran dan pengalaman yang diperlukan untuk Lembaga Pengarah berfungsi dengan berkesan.

latihan Para Pengarah Kesemua pengarah telah menghadiri dan mengikuti dengan

jayanya Program Akreditasi Mandatori yang dikendalikan oleh Bursa Malaysia . Sejajar dengan pematuhan Keperluan Penyenaraian PN15/2003, mengenai Program Pendidikan Berterusan (CEP), para pengarah akan berterusan menghadiri lain-lain program yang berkaitan di bawah CEP bagi membolehkan mereka sentiasa mengikuti perubahan undang-undang dan peraturan, lantaran membolehkan mereka melaksanakan kewajipan mereka secara berkesan.

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Annual Report 2007 Laporan Tahunan 43

Penyata Tadbir Urus Korporat (Samb.)

Di sepanjang tahun kewangan berakhir 31 Januari 2007, Syarikat bersama syarikat-syarikat tersenarai awam yang lain di dalam Kumpulan Sapura telah berjaya menganjurkan program dan bengkel latihan untuk para pengarah. Berikut adalah program dan bengkel latihan tersebut:-

• Pencegahan Penipuan Korporat • Carta Korporat Seimbang sebagai alatan strategik • Membentuk organisasi pembelajaran melalui pengurusan ilmu

Pemilihan semula Tataurusan Syarikat yang sedia ada memperuntukkan bahawa

semua pengarah yang dilantik oleh Lembaga Pengarah adalah tertakluk kepada pelantikan oleh pemegang-pemegang saham pada mesyuarat agung mereka yang pertama, dan selepas itu akan bersara secara bergilir sekurang-kurangnya sekali dalam setiap tiga (3) tahun, tetapi layak dilantik semula di dalam setiap Mesyuarat Agung Tahunan.

B. iMBuHan PaRa PengaRaH

tahap dan kandungan imbuhan BNRC bertanggungjawab untuk menilai dan mencadangkan

kepada Lembaga Pengarah tahap dan kandungan imbuhan yang sewajarnya diterima oleh Pengarah Urusan bagi memastikan bahawa ia bersesuaian dengan tanggungjawab yang dipikul bertujuan untuk menarik minat dan mengekalkan mereka yang berkaliber, berpengalaman serta mempunyai kualiti yang diperlukan untuk menerajui Syarikat dengan jayanya.

Prosedur imbuhan Di dalam tahun kewangan semasa, pakej imbuhan bagi Pengarah

Urusan dan Pengarah Eksekutif adalah melalui pengesyoran BNRC dan diluluskan oleh Lembaga Pengarah di mana setiap pengarah yang terbabit tidak terlibat di dalam proses kelulusan tersebut. Pembayaran yuran pengarah adalah diluluskan oleh pemegang saham di dalam Mesyuarat Agung Tahunan.

Butiran mengenai imbuhan pengarah-pengarah bagi tahun kewangan berakhir pada 31 Januari 2007 adalah seperti berikut:

eksekutifBukan

eksekutif jumlah

RM RM RM

Yuran dan Elaun – 220,950.00 220,950.00

Gaji 913,348.00 – 913,348.00

Bonus* 350,000.00 – 350,000.00

Faedah bukan Tunai 159,127.00 375.00 159,502.00

jumlah 1,422,475.00 221,325.00 1,643,800.00

* jumlah yang diterima untuk tahun sebelumnya

Bilangan pengarah yang menerima imbuhan mereka termasuk dalam julat berikut:

julat imbuhan eksekutifBukan

eksekutif jumlah

Bawah RM50,000 – 7 7

RM50,001– RM100,000

– – –

RM100,001 – RM150,000

– – –

RM150,001 – RM200,000

– – –

RM200,001 – RM250,000

– – –

RM250,001 – RM300,000

– – –

RM300,001 – RM350,000

– – –

RM350,001 – RM400,000

– – –

RM400,001 – RM450,000

– – –

RM450,001 – RM500,000

– – –

RM500,001 – RM550,000*

1 – 1

RM550,001 – RM600,000

– – –

RM600,001 – RM650,000

– – –

RM650,001 – RM700,000

– – –

RM700,001 – RM750,000

– – –

RM750,001 – RM800,000

– – –

RM800,001 – RM850,000

– – –

RM850,001 – RM900,000

– – –

RM900,001 – RM950,000

– – –

RM950,001 – RM1,000,000

– – –

RM1,000,001 – RM1,050,000*

1 – 1

jumlah 2 7 9

* jumlah yang diterima termasuk bonus bagi tahun kewangan sebelumnya

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Annual Report 2007 Laporan Tahunan 44

Penyata Tadbir Urus Korporat (Samb.)

C. PeMegang saHaM

Mesyuarat agung tahunan Syarikat menjadikan Mesyuarat Agung Tahunan sebagai landasan

untuk berinteraksi dengan para pemegang saham. Semua pemegang saham adalah dialu-alukan untuk menghadiri Mesyuarat Agung Tahunan Syarikat dan mengambil bahagian yang aktif di dalam sesi soal jawab. Mereka digalakkan untuk memberi pendapat dan cadangan untuk kebaikan Syarikat. Peluang sentiasa diberi kepada pemegang saham untuk bertanya soalan dan mendapat kepastian atas isu perniagaan dan prestasi Syarikat.

Dialog di antara syarikat dan Pelabur. Laporan Tahunan dan juga pengumuman suku tahunan adalah

kaedah komunikasi utama untuk melaporkan urusan perniagaan, aktiviti dan prestasi kewangan Kumpulan kepada pemegang saham.

Tujuan utama diadakan dialog di antara Syarikat dengan pemegang sahamnya pada Mesyuarat Agung Tahunan, adalah bagi memberi peluang untuk mengumpulkan pendapat dan bersoal jawab bersama dengan pemegang saham daripada orang perseorangan dan pihak institusi tentang semua isu yang berkaitan dengan Syarikat. Pada Mesyuarat Agung Tahunan, para pemegang saham digalakkan bertanya tentang resolusi-resolusi yang dicadangkan atau mengenai operasi Kumpulan secara am.

D. KeBeRtanggungjawaBan Dan auDit

laporan Kewangan Matlamat Lembaga Pengarah adalah untuk memberi dan

membentangkan satu penilaian yang seimbang dan bermakna terhadap pencapaian kewangan dan prospek Kumpulan pada penghujung tahun kewangan, umumnya melalui penyata kewangan tahunan, pengumuman keputusan suku tahunan kepada pemegang saham dan juga melalui perutusan Pengerusi serta kajian terhadap operasi syarikat di dalam laporan tahunan. Lembaga Pengarah dibantu oleh Jawatankuasa Audit memantau proses laporan kewangan dan juga mutu laporan kewangannya.

Kawalan Dalaman Lembaga Pengarah sedia maklum akan tanggungjawabnya

mengekalkan sistem kawalan dalaman yang kukuh untuk melindungi kepentingan pelaburan pemegang saham dan asset Kumpulan. Penyata Kawalan Dalaman dilampirkan di mukasurat 36 dalam Laporan Tahunan, memberikan gambaran keseluruhan sistem kawalan dalaman Kumpulan.

Perhubungan dengan juruaudit Lembaga Pengarah melalui Jawatankuasa Audit mengekalkan

hubungan rasmi yang telus dan profesional dengan kedua-dua pihak audit dalaman dan luaran Kumpulan.

Fungsi Jawatankuasa Audit berhubung dengan juruaudit luar dan bilangan mesyuarat yang telah diadakan semenjak tahun kewangan yang lepas serta rekod kehadiran ahli-ahli tercatat di dalam Laporan Jawatankuasa Audit di mukasurat 47 hingga 48 dalam Laporan Tahunan.

Keahlian Jawatankuasa Audit, terma rujukan dan ringkasan aktiviti mereka tercatat di dalam Laporan Jawatankuasa Audit di mukasurat 47 hingga 48 dalam Laporan Tahunan.

Penyataan tanggungjawab Para PengarahPara pengarah adalah dikehendaki di bawah Akta Syarikat, 1965, memastikan bahawa penyata kewangan yang disediakan untuk setiap tahun kewangan memberikan gambaran sebenar dan adil mengenai keadaan Syarikat dan Kumpulan pada penghujung tahun kewangan serta keputusan dan aliran tunai Kumpulan sepanjang tahun kewangan tersebut.

PeMatuHan teRHaDaP aMalan teRBaiK

Kumpulan telah menerimapakai pelbagai langkah dalam menyediakan prinsip-prinsip dan amalan-amalan terbaik bagi mematuhi Kod Amalan Terbaik pada tahun kewangan ini.

Penyataan dibuat menurut resolusi Ahli Lembaga Pengarah bertarikh 22 Mei 2007.

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Annual Report 2007 Laporan Tahunan 45

Audit Committee’s ReportFor The Financial Year Ended 31 January 2007

RegisteReD offiCe:

Lot 2 & 4, Jalan P/11, Seksyen 10Kawasan Perindustrian Bangi43650 Bandar Baru BangiSelangor Darul Ehsan

The Board of DirectorsSapura Industrial Berhad

Dear Sir/Madam

The members of the Audit Committee of Sapura Industrial Berhad are pleased to submit their report for the financial year ended 31 January 2007.

MeMBeRs

independent non-executive DirectorDato’ Mazlin bin Md Junid, Chairman

Dato’ Dr. Ismail bin Saad(retired as a Director of the Company with effect from 19 July 2006)

Datuk Kisai bin Rahmat(appointed as a Director of the Company with effect from 18 October 2006)

non-independent non-executive DirectorDato’ Azlan bin Hashim

teRMs of RefeRenCe

size and CompositionThe Board shall by resolution appoint members of the Audit Committee, which shall comprise at least three (3) directors, the majority of whom shall be non-executive and independent of senior management and operating executives of the holding company and any of its subsidiaries, and free from any relationship which might in the opinion of the Board of Directors be construed as a conflict of interest.

The Committee shall elect a chairperson from among its members who is not an executive director or employee of the Company or any related corporation.

In the event of an Independent Non-Executive member of the Committee ceases to be a member resulting in the number of Independent Non-Executive members falls below the minimum number required, the Board of Directors shall within three (3) months of the event appoint such number of new Independent Non-Executive members to the Committee to make up the minimum number.

Duties anD ResPonsiBilities

1. To discuss with the External Auditor before the audit commences, the nature and scope of the audit.

2. Review with the External Auditor : a. the audit plan; b. the evaluation of the system of internal accounting control; and c. the audit report on the financial statements.

3. Review of the assistance given by the Company’s officers to the External Auditors.

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

5. Review the internal audit programme, processes, the results of the internal audit programme, processes or investigation undertaken and whether or not appropriate action is taken on the recommendations of the internal audit function.

6. Review of the quarterly results and year end financial statements and the press release relating to the financial matters of importance with the Management and the External Auditor prior to them being approved by the Board of Directors, focusing particularly on :

a. changes in or implementation of major accounting policy changes;

b. significant and unusual events; and c. compliance with accounting standards and other legal

requirements.

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

8. Consider any matters the External Auditor may wish to bring to the attention of the directors or shareholders.

9. Consider the major finding of internal investigations and Management’s response.

10. Review of any significant transactions which are not a normal part of the Company’s business.

11. To recommend to the Board the appointment and reappointment of the External Auditor and any question of their resignation or dismissal.

12. Such other responsibilities as may be agreed to by the Audit Committee and the Board of Directors.

teRMs of MeMBeRsHiP

Members of the Committee shall be appointed for an initial term of three (3) years after which they will be reappointed on such terms as may be determined by the Board of Directors.

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Annual Report 2007 Laporan Tahunan 46

Audit Committee Report (Cont’d.)

For The Financial Year Ended 31 January 2007

Meetings

The Audit Committee shall hold at least four (4) regular meetings per financial year and such additional meetings as the chairperson shall decide in order to fulfill its duties and if requested to do so by any Committee member, the Management or the Internal or External Auditors. The Committee may invite any person to be in attendance to assist in its deliberations.

A quorum shall consist of a majority of Independent Non-Executive Committee members and shall not be less than two (2).

The Company Secretary or any person appointed by the Committee for this purpose shall act as Secretary of the Committee.

autHoRity

The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek information it requires from any employee and all employees are directed to co-operate with any request made by the Committee.

aCCess

The Committee shall have unlimited access to all information and documents relevant to its activities, to the Internal and External Auditors, and to Senior Management of the Company and its subsidiaries. The Committee is also authorised to take such independent professional and legal advice, as it considers necessary.

Meetings HelD foR tHe finanCial yeaR enDeD 31 januaRy 2007

The Audit Committee held five (5) meetings during the financial year ended 31 January 2007 with the Head of Internal Audit and the Group Financial Controller cum Company Secretary in attendance. The External Auditors and the Head of the Auditee Company were also invited to brief the Audit Committee on issues tabled for discussion.

auDit CoMMittee Meeting attenDanCe

There were five (5) meetings held during the financial year ended 31 January 2007 and the details of attendance are as follows:-

no. name of Directors attendance

1. Dato ’ Mazlin bin Md Junid (Independent) 5

2. Datuk Kisai bin Rahmat (Independent)

(appointed with effect from 18 October 2006) 1

3. Dato’ Dr. Ismail bin Saad (Independent) (retired with effect from 19 July 2006)

4

suMMaRy of aCtiVities of tHe auDit CoMMittee foR tHe finanCial yeaR enDeD 31 januaRy 2007

Appraisal of the internal audit plan was made by the Audit Committee to confirm the annual audit of the Group. The Audit Committee also reviewed and appraised the audit reports by the Internal Auditors, the various internal control systems in place and the financial statements of the Group. Significant issues arising from the annual audit by the External Auditors were also considered. The Audit Committee reviewed the quarterly and year end financial statements to recommend to the Board for approval to announce to Bursa Malaysia Securities Berhad. At the conclusion of each meeting, recommendations were made for Management to improve on internal controls, procedures and systems of the Group, wherever appropriate.

The Audit Committee monitored the implementation of the audit recommendations in the subsequent meetings to obtain assurances that all key risks and control concerns have been fully addressed.

suMMaRy of aCtiVities of inteRnal auDit DePaRtMent foR tHe finanCial yeaR enDeD 31 januaRy 2007

The Internal Audit Department reviewed and evaluated the adequacy and effectiveness of the internal control system to anticipate any potential risks and recommended improvements, where necessary. The department also assessed :a. the Group’s compliance to its established policies and procedures,

guidelines and statutory requirements;b. reliability and integrity of financial and operational information;c. safeguarding of assets; andd. operational effectiveness and efficiency.

The Management was required to explain any purported lack of compliance pursuant to the audit reports issued. The audit reports, incorporating relevant action plans agreed with the Management, were circulated to the respective Senior Management, Business Units Head, Group Financial Controller and were reviewed by the Audit Committee.

The Internal Audit Department also conducted several special assignments and investigations requested by Management. Validation of controls based on the key risk profile identified under the Enterprise - Wide Risk Management framework were also conducted in all subsidiaries to ensure those controls are in place and adequate. The resulting report was forwarded to the Management and Audit Committee for recommendations.

A follow-up audit review was also conducted to monitor and ensure that all audit recommendations have been effectively implemented.

Yours faithfullyFor and on behalf of the Members of the Audit CommitteesaPuRa inDustRial BeRHaD

Dato’ Mazlin bin Md junidChairman

Page 49: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 47

Laporan Jawatankuasa AuditBagi Tahun Kewangan Berakhir 31 Januari 2007

PejaBat BeRDaftaR:

Lot 2 & 4, Jalan P/11, Seksyen 10Kawasan Perindustrian Bangi43650 Bandar Baru BangiSelangor Darul Ehsan

Lembaga PengarahSapura Industrial Berhad

Tuan/Puan

Ahli Jawatankuasa Audit Sapura Industrial Berhad dengan sukacitanya mengemukakan laporan bagi tahun kewangan berakhir 31 Januari 2007.

aHli-aHli

Pengarah Bebas Bukan eksekutifDato’ Mazlin bin Md Junid, Pengerusi

Dato’ Dr. Ismail bin Saad(bersara sebagai Pengarah Syarikat berkuatkuasa dari 19 Julai 2006)

Datuk Kisai bin Rahmat(dilantik sebagai Pengarah Syarikat berkuatkuasa dari 18 Oktober 2006)

Pengarah Bukan Bebas Bukan eksekutifDato’ Azlan bin Hashim

BiDang tugas

saiz dan KomposisiPihak Lembaga secara resolusi akan melantik Ahli Jawatankuasa Audit yang akan diwakili oleh sekurang-kurangnya tiga (3) pengarah, majoriti terdiri daripada bukan eksekutif dan bebas dari pihak pengurusan kanan dan eksekutif yang mengendalikan operasi syarikat induk dan anak-anak syarikatnya, serta bebas dari sebarang hubungan yang pada pendapat Lembaga Pengarah boleh diistilahkan sebagai percanggahan kepentingan.

Jawatankuasa akan melantik seorang pengerusi di kalangan ahli-ahlinya yang bukan pengarah eksekutif atau kakitangan Syarikat atau mana-mana perbadanan yang berkaitan.

Jika ahli jawatankuasa bebas bukan eksekutif bersara dari menjadi ahli sehingga menyebabkan bilangan ahli bebas bukan eksekutif tinggal seorang, Lembaga Pengarah akan melantik ahli bebas bukan eksekutif yang baru sebagai ahli jawatankuasa untuk memenuhi jumlah minima, dalam masa tiga (3) bulan dari tarikh tersebut.

tugas Dan tanggungjawaB

1. Berbincang dengan Juruaudit Luar tentang bentuk dan skop audit, sebelum audit bermula.

2. Meneliti semula dengan Juruaudit Luar : - a. rancangan audit; b. penilaian ke atas sistem kawalan dalaman perakaunan; dan c. laporan audit mengenai penyata kewangan.

3. Meneliti semula bantuan yang diberikan oleh pegawai-pegawai Syarikat kepada Juruaudit Luar.

4. Meneliti semula rangkuman bidang tugas, fungsi dan sumber-sumber fungsi audit dalaman, dan sama ada ia mempunyai kuasa yang bersesuaian untuk menjalankan tugasnya.

5. Meneliti semula program audit dalaman, proses-proses, hasil daripada program audit dalaman, proses atau siasatan yang telah dijalankan dan samada tindakan yang wajar telah diambil berdasarkan cadangan juruaudit dalaman.

6. Meneliti semula penyata kewangan suku tahunan dan akhir tahunan serta kenyataan akhbar berkaitan hal ehwal kewangan yang penting bersama dengan pihak Pengurusan dan Juruaudit Luar sebelum diluluskan oleh Lembaga Pengarah, tumpuan utamanya terhadap : -

a. perubahan atau pelaksanaan ke atas perubahan polisi perakaunan yang utama;

b. peristiwa yang bersifat ketara dan luar biasa; dan c. pematuhan terhadap piawaian perakaunan dan keperluan

perundangan yang lain.

7. Meneliti semula sebarang urusniaga pihak berkaitan dan percanggahan kepentingan yang mungkin wujud di dalam syarikat atau kumpulan termasuk sebarang urusniaga, prosedur atau perlakuan yang boleh menimbulkan persoalan tentang integriti pengurusan.

8. Mempertimbangkan sebarang perkara yang ingin dikemukakan oleh Juruaudit Luar kepada pengarah atau pemegang saham.

9. Mempertimbangkan hasil siasatan dalaman utama dan tindakan pihak pengurusan mengenainya.

10. Meneliti semula sebarang urusniaga penting yang bukan sebahagian daripada urusniaga biasa Syarikat.

11. Mencadangkan kepada Lembaga berkenaan pelantikan dan pelantikan semula Juruaudit Luar dan sebarang persoalan mengenai perletakan atau pemecatan jawatan mereka.

12. Tanggungjawab lain seperti yang telah dipersetujui oleh Jawatankuasa Audit dan Lembaga Pengarah.

syaRat-syaRat KeaHlian

Ahli-ahli Jawatankuasa akan dilantik untuk tempoh permulaan selama tiga (3) tahun dan pelantikan semula akan ditentukan oleh Lembaga Pengarah.

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Annual Report 2007 Laporan Tahunan 48

Laporan Jawatankuasa Audit (Samb.)

Bagi Tahun Kewangan Berakhir 31 Januari 2007

MesyuaRat

Jawatankuasa Audit akan mengadakan sekurang-kurangnya empat (4) mesyuarat setahun, dan mesyuarat tambahan yang akan diputuskan oleh Pengerusi bagi menyempurnakan kewajipannya dan jika diminta oleh mana-mana ahli Jawatankuasa, pihak Pengurusan atau Juruaudit Dalaman atau Luar. Jawatankuasa boleh menjemput sesiapa yang dikehendakinya untuk menghadiri mesyuarat bagi membantu perbincangan mereka.

Korum mestilah terdiri daripada majoriti ahli jawatankuasa bebas bukan eksekutif dan tidak kurang daripada dua (2) ahli.

Setiausaha Syarikat atau sesiapa yang dilantik oleh Jawatankuasa untuk tujuan ini akan bertindak sebagai Setiausaha kepada Jawatankuasa.

BiDang Kuasa

Jawatankuasa diberi kuasa oleh Lembaga untuk menyiasat sebarang aktiviti yang merangkumi bidang tugasnya. Ia diberi kuasa untuk mendapatkan maklumat yang diperlukan dari mana-mana kakitangan dan semua kakitangan adalah diarahkan untuk memberi kerjasama kepada Jawatankuasa ke atas segala permintaannya.

KeMuDaHan

Jawatankuasa tidak dihadkan untuk mendapatkan maklumat dan dokumen-dokumen yang berkaitan dengan aktivitinya daripada Juruaudit Dalaman dan Juruaudit Luar, Pengurusan Kanan Syarikat dan anak-anak syarikatnya. Jawatankuasa juga diberi kuasa untuk mendapatkan nasihat pakar dan guaman, jika perlu.

MesyuaRat Bagi taHun Kewangan BeRaKHiR 31 januaRi 2007

Jawatankuasa Audit telah bermesyuarat lima (5) kali di dalam tahun kewangan berakhir 31 Januari 2007 dengan dihadiri oleh Ketua Juruaudit Dalaman dan Pengawal Kewangan Kumpulan merangkap Setiausaha Syarikat. Juruaudit Luar dan Ketua Syarikat yang diaudit juga dijemput untuk memberi penjelasan kepada Jawatankuasa Audit tentang isu-isu yang dibentangkan.

KeDatangan MesyuaRat jawatanKuasa auDit

Terdapat lima (5) mesyuarat yang telah diadakan semasa tahun kewangan berakhir 31 Januari 2007 dan butiran kedatangan adalah seperti berikut:-

no. nama Pengarah Kedatangan

1. Dato ’ Mazlin bin Md Junid (Bebas) 5

2. Datuk Kisai bin Rahmat (Bebas)

(dilantik berkuatkuasa 18 Oktober 2006) 1

3. Dato’ Dr. Ismail bin Saad (Bebas) (bersara berkuatkuasa 19 Julai 2006)

4

RingKasan aKtiViti-aKtiViti jawatanKuasa auDit Bagi taHun Kewangan BeRaKHiR 31 januaRi 2007.

Jawatankuasa Audit telah menilai perancangan audit dalaman untuk mengesahkan audit tahunan Kumpulan. Jawatankuasa ini juga meneliti dan menilai Laporan Juruaudit Dalaman, sistem kawalan dalaman yang ada dan akaun kewangan Kumpulan. Isu-isu ketara yang timbul daripada audit tahunan yang telah dijalankan oleh Juruaudit Luar juga diambilkira. Jawatankuasa Audit telah meneliti penyata kewangan suku tahunan dan akhir tahun untuk mencadangkan kepada Lembaga untuk diumumkan kepada Bursa Malaysia Securities Berhad. Pada akhir setiap mesyuarat, cadangan telah dibuat kepada pihak Pengurusan untuk memperbaiki kawalan dalaman, prosedur dan sistem, di mana perlu.

Jawatankuasa Audit memantau pelaksanaan cadangan juruaudit di dalam mesyuarat berikutnya untuk mendapat keyakinan bahawa semua risiko kawalan utama telah diberi perhatian dengan sepenuhnya.

RingKasan aKtiViti-aKtiViti jaBatan auDit DalaMan Bagi taHun BeRaKHiR 31 januaRi 2007

Jabatan Audit Dalaman meneliti dan menilai keupayaan dan keberkesanan sistem kawalan dalaman untuk meramal sebarang risiko dan memberi cadangan pembaikan, di mana perlu. Jabatan ini juga menilai : -a. pematuhan Kumpulan terhadap polisi dan prosedur, garis panduan

dan keperluan perundangan;b. kebolehpercayaan dan integriti maklumat kewangan dan operasi;c. perlindungan terhadap aset; dand. keberkesanan dan kecekapan operasi.

Pihak Pengurusan dikehendaki menjelaskan mana-mana perlanggaran peraturan berdasarkan laporan audit yang telah dikeluarkan. Laporan tersebut yang mengandungi rancangan tindakan yang dipersetujui oleh pihak Pengurusan, telah diedarkan kepada Pengurusan Kanan yang berkenaan, Ketua Unit, Pengawal Kewangan Kumpulan dan diteliti oleh Jawatankuasa Audit.

Jabatan Audit Dalaman juga telah menjalankan beberapa tugasan khas dan penyiasatan di atas permintaan pihak Pengurusan. Pengesahan kawalan ke atas profil risiko utama yang telah dikenalpasti di dalam Organisasi Pengurusan Risiko secara menyeluruh telah dilaksanakan di semua anak syarikat bagi memastikan perlaksanaan dan keberkesanan kawalan. Laporan berkaitan telah dimajukan kepada pihak Pengurusan dan Jawatankuasa Audit untuk cadangan.

Audit susulan juga telah dijalankan untuk memantau dan memastikan semua cadangan telah dilaksanakan dengan berkesan.

Yang benarBagi pihak Ahli Jawatankuasa AuditsaPuRa inDustRial BeRHaD

Dato’ Mazlin bin Md junidPengerusi

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Annual Report 2007 Laporan Tahunan 49

1. 16 & 17 May 2006

safety. never an option. Safety and Health campaign for the Group was organized at Sapura Industrial Berhad. During the campaign, various activities were held such

as exhibition, talks and demonstrations. The main objective was to inculcate safety and health awareness to the staff.

Keselamatan. Bukan satu Pilihan Kempen Keselamatan dan Kesihatan untuk Kumpulan telah diadakan di Sapura Industrial Berhad. Di sepanjang tempoh kempen, pelbagai

aktiviti telah dijalankan, di antaranya pameran, ceramah dan demonstrasi. Tujuan utama penganjuran kempen adalah untuk menyemai kesedaran terhadap keselamatan dan kesihatan kepada pekerja.

2. 15 july 2006

family at Heart Family Day is a yearly event with the objective of providing a platform for staff and families to know and interact with each other. During the

financial year the event was held at the Forest Research Institute of Malaysia (FRIM), Kepong.

Keluarga sentiasa di Hati Hari keluarga merupakan suatu acara tahunan dengan matlamat untuk menyediakan ruang bagi pekerja dan keluarga

masing-masing berkenalan dan berinteraksi di antara satu sama lain. Pada tahun kewangan ini, acara tersebut telah diadakan di Institut Penyelidikan Perhutanan Malaysia (FRIM), Kepong.

3. 21 july 2006

Recognition to be Cherished Sapura Machining Corporation Sdn. Bhd. received the Best Client Award from Bank Pembangunan Malaysia Berhad for its excellent

perfomance in the heavy industry category.

Pengiktirafan untuk dihargai Sapura Machining Corporation Sdn. Bhd. telah menerima Anugerah Pelanggan Terbaik daripada Bank Pembangunan Malaysia Berhad

di atas kecemerlangannya dalam kategori industri berat.

Group Events 2006/07Peristiwa Kumpulan 2006/07

1 2

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Annual Report 2007 Laporan Tahunan 50

4. 14 august 2006

Quality – standards of formality Sapura Automotive Industries Sdn. Bhd. successfully achieved ISO 14001 EMS and OHSAS 18001 certifications from TUV-Technischen

Uberwachungsvereine Germany. These international standards set the guideline for environmental and safety management.

Kualiti - formaliti Piawaian Sapura Automotive Industries Sdn. Bhd. telah berjaya mendapat pengiktirafan ISO 14001 EMS dan OHSAS 18001 daripada TUV-Technischen

Uberwachungsvereine Jerman. Piawaian antarabangsa ini menetapkan garis panduan bagi pengurusan alam sekitar dan keselamatan.

5. 18 - 20 august 2006

spiritual awakening The Group had successfully organised an Ibadah Camp as a spiritual awakening for its staff which was held at Al-Azhar Camp, Morib.

Numerous activities including talks, interactive games, sports and qiamulail were carried out throughout the event. The aim of the programme is to develop a knowledgeable and pious individual.

Pengisian Kerohanian Pihak Kumpulan telah menganjurkan Khemah Ibadah ini sebagai pengisian kerohanian untuk kakitangannya. Pelbagai aktiviti seperti

ceramah, permainan interaktif, sukan dan qiamulail telah dijalankan. Matlamat program ini adalah untuk membentuk individu yang berpengetahuan dan bertakwa.

6. 9 september 2006

Creating an innovative work force The Group’s annual ‘Innovative & Creative Circle’ (ICC) Convention was held at Dewan Anwar Mahmod, UKM Bangi. The objective of the

convention is to instill innovative thinking among the staff. All subsidiaries participated in this half day convention. The best ICC team award went to Sapura Automotive Industries Sdn. Bhd.

Membina tenaga Kerja yang inovatif Konvensyen tahunan ‘Innovative & Creative Circle’ (ICC) peringkat Kumpulan telah diadakan di Dewan Anwar Mahmod, UKM Bangi. Tujuan

konvensyen tersebut adalah untuk menerapkan pemikiran inovatif di kalangan kakitangan. Semua anak syarikat telah mengambil bahagian di dalam konvensyen tersebut. Anugerah Kumpulan ICC terbaik dimenangi oleh Sapura Automotive Industries Sdn. Bhd.

Group Events 2006/07 (Cont’d.)

Peristiwa Kumpulan 2006/07 (Samb.)

5

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Annual Report 2007 Laporan Tahunan 51

7. 23 september 2006

Purifying the soul Ihya Ramadhan, to welcome the holy month of Ramadhan for 1427H, was held at Masjid Jamek Bandar Baru Bangi. At the same time,

as part of the Group’s social responsibility, twelve (12) staff were sponsored by the Company for the Group’s annual Umrah and donations were made to local mosques.

Penyucian jiwa Program Ihya Ramadhan, untuk menyambut kedatangan bulan Ramadhan yang mulia tahun 1427H telah diadakan di Masjid Jamek

Bandar Baru Bangi. Pada masa yang sama, dalam memenuhi tuntutan sosial Kumpulan, Syarikat telah menaja dua belas (12) orang kakitangan untuk menunaikan ibadah umrah, di samping menghulurkan sumbangan kepada masjid-masjid setempat.

8. 29 september 2006

sharing of good fortune A breaking fast ceremony for the Group was held at Sapura Machining Corporation Sdn. Bhd. followed by Terawih prayers and qiamulail

at midnight. Staff family members and orphans were also invited for this occasion.

Berkongsi Rezeki Majlis berbuka puasa Kumpulan telah diadakan di Sapura Machining Corporation Sdn. Bhd. diikuti dengan Solat sunat Terawih dan majlis

qiamulail di waktu malamnya. Ahli-ahli keluarga kakitangan serta anak-anak yatim juga telah dijemput bersama-sama meraikan majlis.

9. 11 november 2006

Coming together for silaturrahim The Group’s Majlis Silaturrahim was held at Sapura Industrial Berhad to coincide with Aidilfitri festivity. The purpose of the event was to

strenghten the relationship among staff, families, suppliers, customers, government agencies and neighbouring factories. Orphans were also entertained during the occassion.

Bersama untuk silaturrahim Sambutan Majlis Silaturrahim Kumpulan telah diadakan di Sapura Industrial Berhad. Majlis ini bertujuan untuk mengeratkan hubungan

di kalangan kakitangan, keluarga, pembekal, pelanggan, agensi-agensi kerajaan dan kilang-kilang berdekatan. Anak-anak yatim juga turut diraikan bersama di majlis tersebut.

Group Events 2006/07 (Cont’d.)

Peristiwa Kumpulan 2006/07 (Samb.)

7 8 9

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Annual Report 2007 Laporan Tahunan 52

10. 29 november 2006

a system of Discipline Sapura Industrial Berhad Group had successfully launched its “5S” campaign which is to instill good and efficient work practices at the

work place. This programme is a structured programme to systematically improve quality and productivity and is being instilled through five (5) major disciplines which are Seiri (Sort), Seiton (Set), Seiso (Shine), Seiketsu (Standardization) and Shitsuke (Sustain).

The campaign aimed at creating awareness for staff to maintain a clean and efficient workplace as well as creating awareness of their working

environment especially on tools and machines in use.

satu Rangkuman Disiplin Kumpulan Sapura Industrial Berhad telah dengan jayanya melancarkan kempen “5S” untuk tujuan menanamkan tatacara pengurusan

yang baik dan cekap di tempat kerja. Program ini ialah satu program yang dirumus untuk memperbaiki kualiti dan produktiviti secara bersistem dan ianya diterapkan melalui lima (5) disiplin utama yang terdiri daripada Seiri (“Sisih”), Seiton (“Susun”), Seiso ( “Suci”), Seiketsu (“Sistem”) dan Shitsuke (“Susila”).

Kempen ini adalah untuk memberi kesedaran kepada pekerja supaya mengekalkan kebersihan dan kecekapan di tempat kerja di samping memupuk kesedaran mengenai persekitarannya terutama di dalam penggunaan peralatan dan mesin.

11. 16 December 2006

A Day of Fitness The Group’s Sports Carnival was successfully organized at BSN Sports Centre, Bangi with the objective of fostering the sporting spirit

among staff. Sapura Machining Corporation Sdn. Bhd. emerged as the year’s overall champion.

Hari Kecergasan Temasya Sukan Kumpulan telah dianjurkan dengan jayanya di Pusat Sukan BSN, Bangi. Tujuan penganjuran temasya ini adalah untuk

menanam semangat kesukanan di kalangan kakitangan. Sapura Machining Corporation Sdn. Bhd. muncul sebagai juara keseluruhan temasya.

12. 2 january 2007

a Religious obligation A qurban event was held at Sapura Industrial Berhad with overwhelming participation from staff. The qurban contribution were distributed to

the staff and local community. Based on the encouraging response, the event will be organized yearly.

tanggungjawab Keagamaan Majlis ibadah qurban telah diadakan di Sapura Industrial Berhad dan mendapat sambutan yang amat menggalakkan. Hasil qurban telah

diagihkan kepada kakitangan dan komuniti setempat. Berdasarkan sambutan, majlis ini akan dijadikan sebagai acara tahunan Syarikat.

Group Events 2006/07 (Cont’d.)

Peristiwa Kumpulan 2006/07 (Samb.)

11

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Annual Report 2007 Laporan Tahunan 53

13. 5 january 2007

one Voice, one look In conjunction with the new Group branding, a new uniform designed for all levels was introduced to staff. The new uniform is to portray the

level of professionalism and reflecting solidarity, with emphasis given on durability and practicality in manufacturing environment.

satu suara, satu wajah Sempena penjenamaan baru Kumpulan, rekaan pakaian seragam baru telah diperkenalkan untuk digunakan oleh semua lapisan kakitangan

Kumpulan. Pakaian seragam yang baru ini menggambarkan tahap profesionalisma dan memberi persamaan, dengan penekanan diberi kepada ketahanan dan kesesuaiannya dengan persekitaran perkilangan.

14. 15 january 2007

Quality – standards of formality Sapura Brake Technologies Sdn. Bhd. successfully achieved ISO 14001 EMS and OHSAS 18001 certifications from Sociate Generale de

Surveillance Malaysia. These international standards set the guideline for environmental and safety management.

Kualiti – formaliti Piawaian Sapura Brake Technologies Sdn. Bhd. telah berjaya mendapat pengiktirafan ISO 14001 EMS dan OHSAS 18001 daripada Sociate Generale

de Surveillance Malaysia. Piawaian antarabangsa ini menetapkan garis panduan bagi pengurusan alam sekitar dan keselamatan.

15. 2 february 2007

we Care, we share Realising the pain and hardship of flood victims in Johor, the Group organised a donation activity among its staff to be contributed to the

flood victims.

Kami Prihatin, Kami Berkongsi Menyedari kesulitan dan kesusahan mangsa-mangsa banjir di Johor, Kumpulan telah menganjurkan aktiviti mengutip derma di kalangan

kakitangannya untuk didermakan kepada mangsa-mangsa banjir.

Group Events 2006/07 (Cont’d.)

Peristiwa Kumpulan 2006/07 (Samb.)

15

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Annual Report 2007 Laporan Tahunan54

Statement of Directors’ Shareholdings as at 21 May 2007

Penyata Pegangan Saham Para Pengarah pada 21 Mei 2007

Number of ordinary shares of RM1.00 each held /

Jumlah saham biasa RM1.00 sesaham yang dipegang

Direct Interest /

Kepentingan Langsung

Deemed Interest /

Kepentingan Tidak Langsung

Sapura Industrial Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 1,661,250 32,420,3911

Datuk Shahril bin Shamsuddin 1,426,875 32,420,3911

Ir. Md. Shah bin Hussin

(includes shares held by an associate) /

(termasuk saham yang dipegang oleh rakan sekutu)

90,498 –

Dato’ Azlan bin Hashim 15,000 –

Dato’ Mazlin bin Md Junid – –

Shah Hakim bin Zain – –

Datuk Kisai bin Rahmat – –

Shahriman bin Shamsuddin 663,175 32,420,3911

1 Deemed interested by virtue of their substantial shareholdings in Sapura Holdings Sdn. Bhd. pursuant to Section 6A of the Companies Act, 1965. / Dianggap mempunyai kepentingan melalui pegangan saham yang ketara dalam Sapura Holdings Sdn. Bhd. menurut Seksyen 6A Akta Syarikat, 1965.

Page 57: New Opportunities. Enhancing our core business

Annual Report 2007 Laporan Tahunan 55

Statement of Directors’ Responsibility in Respect of the Audited Financial Statements

Penyataan Tanggungjawab Para Pengarah terhadap Penyata Kewangan yang telah Diaudit

Pursuant to Paragraph 15.27(a) of the Listing Requirements of Bursa

Malaysia Securities Berhad, the directors are required by law to prepare

financial statements for each financial year in accordance with the

applicable approved accounting standards in Malaysia and give a true and

fair view of the state of affairs of the Group and of the Company at the end

of the financial year and of the results and the cash flows of the Group and

of the Company for the financial year.

In preparing the financial statements of the Group and of the Company,

the directors have adopted appropriate accounting policies and applied

them consistently and prudently. The directors have also ensured that those

applicable accounting standards have been followed and confirmed that

the financial statements have been prepared on a going concern basis.

The directors are responsible for ensuring that the Company keeps

accounting records which disclose with reasonable accuracy the financial

position of the Group and of the Company and which enable them to

ensure that the financial statements are in compliance with the provisions

of the Companies Act, 1965.

The Directors are also responsible for taking such steps that are reasonably

open to them to safeguard the assets of the Group and to prevent and detect

fraud and other irregularities.

Merujuk kepada Perenggan 15.27(a) Keperluan Penyenaraian Bursa

Malaysia Securities Berhad, para pengarah dikehendaki menyediakan

penyata kewangan bagi setiap tahun kewangan, yang mematuhi piawaian

perakaunan yang diluluskan di Malaysia dan memberi gambaran yang

benar dan saksama tentang kedudukan kewangan Kumpulan dan Syarikat

dan hasil serta aliran tunai bagi Kumpulan dan Syarikat bagi tahun

kewangan berakhir tersebut.

Di dalam penyediaan penyata kewangan Kumpulan dan Syarikat, para

pengarah telah mengamalkan polisi perakaunan yang sewajarnya secara

konsisten dan berhemat. Para pengarah juga memastikan bahawa semua

piawaian perakaunan yang bersesuaian telah dituruti dan mengesahkan

bahawa penyata kewangan telah disediakan atas asas berterusan.

Para pengarah adalah bertanggungjawab untuk memastikan Syarikat

menyimpan rekod perakaunan yang memaparkan ketepatan kedudukan

kewangan Kumpulan dan Syarikat yang munasabah yang mana

membolehkan mereka memastikan bahawa penyata kewangan ini

mematuhi peruntukan di dalam Akta Syarikat, 1965.

Para pengarah juga bertanggungjawab untuk mengambil langkah-

langkah yang sewajarnya bagi memelihara aset Kumpulan dan mencegah

serta mengesan penyelewengan dan lain-lain perkara yang menyimpang

dari kebiasaan.

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Annual Report 2007 Laporan Tahunan56

Additional Compliance Information

1. MATERIAL CONTRACTS

There were no material contracts entered into by the Company and/or its subsidiary companies involving the Company’s directors and/or major shareholders’ interests either still subsisting at the end of the financial year or which were entered into since the end of the previous financial year.

2. MATERIAL CONTRACTS RELATED TO LOAN

There were no material contracts related to loans entered into by the Company and/or its subsidiary companies involving the Company’s directors and/or major shareholders’ interests during the financial year under review.

3. RECURRENT RELATED PARTY TRANSACTIONS ENTERED INTO DURING FINANCIAL YEAR ENDED 31 JANUARY 2007 PURSUANT TO SHAREHOLDERS’ MANDATE

Shareholders’ mandate was not required to be procured for recurrent related party transactions entered into during financial year ended 31 January 2007.

4. SHARE BUY-BACK

There were no share buy-back exercises undertaken by the Company during the financial year under review.

5. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES

The Company has not issued any options, warrants or convertible securities during the financial year under review.

6. AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR)

There were no ADR or GDR programme sponsored by the Company during the financial year under review.

7. NON-AUDIT FEES

Apart from the annual audit fees, there is non-audit fees paid to Messrs Ernst & Young amounting to Ringgit Malaysia Five Thousand (RM5,000) only during the financial year under review.

8. PROFIT ESTIMATION, FORECAST OR PROJECTION

There were no profit estimation, forecast or projection made or released by the Company during the financial year under review.

9. PROFIT GUARANTEES

There were no profit guarantees given by the Company during the financial year under review.

10. REVALUATION POLICY OF LANDED PROPERTIES

There was no revaluation of landed properties undertaken by the Company or any of its subsidiaries during the financial year under review.

11. IMPOSITION OF SANCTIONS AND/OR PENALTIES

There were no sanctions and/or penalties imposed on the Company and/or its subsidiaries, Directors or Management arising from any significant breach of rules/guidelines/legislations of any of the regulatory authorities.

12. VARIATION IN RESULTS

There was no variation in results (differing by ten per centum (10%) or more) from unaudited results announced.

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Annual Report 2007 Laporan Tahunan 57

Maklumat Pematuhan Tambahan

1. KONTRAK-KONTRAK MATERIAL

Tiada kontrak-kontrak material dimeterai oleh Syarikat dan/atau anak-anak syarikatnya yang melibatkan kepentingan para pengarah dan/atau pemegang-pemegang saham utama Syarikat, sama ada yang masih berkuatkuasa pada akhir tahun kewangan ini, atau yang telah dimeterai sejak akhir tahun kewangan yang lepas.

2. KONTRAK-KONTRAK MATERIAL BERKAITAN PINJAMAN

Tiada kontrak-kontrak material berkaitan pinjaman yang telah dimeterai oleh Syarikat dan/atau anak-anak syarikatnya yang melibatkan kepentingan para pengarah Syarikat dan/atau pemegang saham utama dalam tahun kewangan yang disemak ini.

3. URUSNIAGA-URUSNIAGA PIHAK BERKAITAN YANG BERULANG YANG DIJALANKAN SEMASA TAHUN KEWANGAN BERAKHIR 31 JANUARI 2007 BERIKUTAN MANDAT PEMEGANG-PEMEGANG SAHAM.

Mandat pemegang-pemegang saham tidak perlu diperolehi untuk urusniaga-urusniaga pihak berkaitan yang berulang yang dijalankan semasa tahun kewangan berakhir 31 Januari 2007.

4. PEMBELIAN BALIK SAHAM

Tiada pembelian balik saham yang telah dilaksanakan oleh Syarikat pada tahun kewangan yang disemak ini.

5. OPSYEN, WARAN ATAU SEKURITI BOLEH TUKAR

Syarikat tidak menawarkan sebarang opsyen, waran atau sekuriti boleh tukar pada tahun kewangan yang disemak ini.

6. AMERICAN DEPOSITORY RECEIPT (ADR) ATAU GLOBAL DEPOSITORY RECEIPT (GDR)

Tiada program ADR atau GDR yang telah ditaja oleh Syarikat pada tahun kewangan yang disemak ini.

7. YURAN BUKAN AUDIT

Selain daripada yuran audit tahunan, terdapat yuran bukan audit yang telah dibayar kepada Tetuan Ernst & Young berjumlah Ringgit Malaysia Lima Ribu (RM5,000) sahaja pada tahun kewangan yang disemak ini.

8. ANGGARAN, RAMALAN ATAU UNJURAN KEUNTUNGAN

Tiada anggaran, ramalan atau unjuran keuntungan dibuat atau diumumkan oleh Syarikat pada tahun kewangan yang disemak ini.

9. JAMINAN KEUNTUNGAN

Tiada jaminan keuntungan diberi oleh Syarikat pada tahun kewangan yang disemak ini.

10. PENILAIAN SEMULA POLISI HARTANAH

Tiada penilaian semula polisi hartanah yang dibuat oleh Syarikat atau mana-mana anak syarikatnya pada tahun kewangan yang disemak ini.

11. PENGENAAN SEKATAN/PENALTI

Tiada sekatan-sekatan dan/atau penalti-penalti yang telah dikenakan ke atas Syarikat dan/atau anak syarikat, para pengarah atau pihak pengurusan yang timbul daripada perlanggaran mana-mana peraturan-peraturan/garis panduan-garis panduan/undang-undang yang ketara mana-mana pihak berkuasa.

12. VARIASI DALAM KEPUTUSAN

Tiada variasi dalam keputusan (dengan perbezaan sebanyak sepuluh peratus (10%) atau lebih) daripada keputusan tidak diaudit yang telah diumumkan.

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Financial Statements

60 Directors’ Report

65 Statement by Directors

65 Statutory Declaration

66 Report of the Auditors

67 Income Statements

68 Balance Sheets

69 Consolidated Statement of Changes in Equity

70 Company Statement of Changes in Equity

71 Consolidated Cash Flow Statement

73 Company Cash Flow Statement

74 Notes to the Financial Statements

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Annual Report 200760

Directors’ Report

The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the

financial year ended 31 January 2007.

PRINCIPAL ACTIVITIES

The principal activities of the Company are investment holding and the provision of management services to its subsidiaries.

The principal activities of the subsidiaries are described in Note 14 to the financial statements.

There have been no significant changes in the nature of the principal activities during the financial year except for the cessation of the car selling

and servicing activities of a subsidiary, Isencorp Sdn. Bhd. on 3 May 2006.

RESULTS

Group Company

RM RM

Loss for the year (68,406,189) (45,848,397)

Attributable to:

Equity holders of the Company (56,274,131) (45,848,397)

Minority interest (12,132,058) –

(68,406,189) (45,848,397)

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

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially

affected by any item, transaction or event of a material and unusual nature other than:

(a) the effects of impairment loss on property, plant and equipment to the Group of RM36,923,937 as further disclosed in Note 12(a) to the

financial statements;

(b) the effect of write down of inventories to the Group of RM8,937,320;

(c) the effects of impairment loss on investment in Sapura-Schulz Hydroforming Sdn. Bhd. (“SSH”) of RM27,641,250 in respect of the Company;

(d) the effects of provision for corporate guarantee in the Company of RM9,710,000; and

(e) the effects of provision for amount due from SSH in the Company of RM5,881,016.

DIVIDENDS

The amount of dividends paid by the Company since 31 January 2006 were as follows:

RM

Final tax exempt dividend of 5% on 72,775,737 ordinary shares, declared on 28 March 2006 3,638,787

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Annual Report 2007 61

Directors’ Report (Cont’d.)

DIRECTORS

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

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir

Datuk Shahril bin Shamsuddin

Dato’ Azlan bin Hashim

Dato’ Mazlin bin Md Junid

Shahriman bin Shamsuddin

Ir. Md. Shah bin Hussin

Shah Hakim bin Zain

Azmi bin Hashim (alternate director to Dato’ Azlan bin Hashim)

Datuk Kisai bin Rahmat (appointed on 18 October 2006)

Dato’ Dr. Ismail bin Saad (retired on 19 July 2006)

DIRECTORS’ BENEFITS

Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party,

whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate,

other than as may arise from the share options to be granted pursuant to the Employee Share Option Scheme (“ESOS”).

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in the

aggregate amount of emoluments received or due and receivable by the directors as shown in Note 8 to the financial statements or the fixed salary of

a full-time employee of the Company) by reason of a contract made by the Company or a related corporation with any director or with a firm of which

he is a member, or with a company in which he has a substantial financial interest, except as disclosed in Note 32 to the financial statements.

DIRECTORS’ INTEREST

According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year in shares and options over

shares in the Company and its related corporations during the financial year were as follows:

Number of Ordinary Shares of RM1.00 each

1 February * Transfer 31 January

2006 (to)/from Sold 2007

The Company

Sapura Industrial Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 2,235,000 (573,750) – 1,661,250

Datuk Shahril bin Shamsuddin 1,140,000 286,875 – 1,426,875

Shahriman bin Shamsuddin 376,300 286,875 – 663,175

Ir. Md. Shah bin Hussin (includes shares held by an associate) 157,998 – (67,500) 90,498

Dato’ Azlan bin Hashim 15,000 – – 15,000

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Annual Report 200762

Directors’ Report (Cont’d.)

DIRECTORS’ INTEREST (CONT’D.)

Number of Ordinary Shares of RM1.00 each

1 February * Transfer 31 January

2006 (to)/from Sold 2007

Holding company

Sapura Holdings Sdn. Bhd.

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 17,865,000 (6,699,374) – 11,165,626

Datuk Shahril bin Shamsuddin 26,797,500 3,349,687 – 30,147,187

Shahriman bin Shamsuddin 26,797,500 3,349,687 – 30,147,187

Related company

Sapura Technology Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 1,435,999 (77,250) – 1,358,749

Datuk Shahril bin Shamsuddin 23,333 38,625 – 61,958

Shahriman bin Shamsuddin – 38,625 – 38,625

Related company

Sapura Resources Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 222,000 (166,500) – 55,500

Datuk Shahril bin Shamsuddin – 83,250 – 83,250

Shahriman bin Shamsuddin – 83,250 – 83,250

Number of Ordinary Shares of RM0.20 each

1 February 31 January

2006 Bought Sold 2007

Related company

SapuraCrest Petroleum Berhad

Shahriman bin Shamsuddin 450,000 – – 450,000

Number of Options Over Ordinary Shares of RM0.20 each

1 February 31 January

2006 Granted Exercised 2007

Related company

SapuraCrest Petroleum Berhad

Datuk Shahril bin Shamsuddin 2,800,000 – – 2,800,000

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Annual Report 2007 63

Directors’ Report (Cont’d.)

DIRECTORS’ INTEREST (CONT’D.)

Number of Options Over Ordinary Shares of RM1 each

1 February 31 January

2006 Granted Exercised 2007

Related company

Sapura Resources Berhad

Datuk Shahril bin Shamsuddin 1,350,000 – – 1,350,000

* Transfer of shares held by Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir as administrator of the Estate of Allahyarhamah Puan Sri Datin Seri

Siti Sapura binti Husin (“the Estate”) to the beneficiaries of the Estate.

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir, Datuk Shahril bin Shamsuddin and Shahriman bin Shamsuddin by virtue of their interests in shares

in the holding company are also deemed interested in shares of all the holding company’s subsidiaries to the extent the holding company has an

interest.

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

the financial year.

EMPLOYEES’ SHARE OPTION SCHEME

The Company’s Employees’ Share Option Scheme (“ESOS”) is governed by the New By-Laws approved by the shareholders at an Extraordinary

General Meeting held on 12 January 2005.

The salient features and other terms of the ESOS are disclosed in Note 21 to the financial statements.

OTHER STATUTORY INFORMATION

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

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts

and satisfied themselves that there were no known bad debts and that adequate provision had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary course of

business had been written down to an amount which they might be expected so to realise.

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

(i) it necessary to write off any bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of

the Company inadequate to any substantial extent; and

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

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing

method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the

Group and of the Company which would render any amount stated in the financial statements misleading.

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Annual Report 200764

OTHER STATUTORY INFORMATION (CONT’D.)

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

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

of any other person; or

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

(f) In the opinion of the directors:

(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the

end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due;

and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the

date of this report which is likely to affect substantially the results of the operations of the Group and of the Company for the financial

year in which this report is made.

AUDITORS

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

Signed on behalf of the Board in accordance with a resolution of the directors dated 22 May 2007.

Dato’ Mazlin bin Md Junid Ir. Md. Shah bin Hussin

Directors’ Report (Cont’d.)

Page 67: New Opportunities. Enhancing our core business

Annual Report 2007 65

We, Dato’ Mazlin bin Md Junid and Ir. Md. Shah bin Hussin, being two of the directors of Sapura Industrial Berhad, do hereby state that, in the opinion

of the directors, the accompanying financial statements set out on pages 67 to 119 are drawn up in accordance with the provisions of the Companies

Act, 1965 and applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Group and of the

Company as at 31 January 2007 and of the results and the cash flows of the Group and of the Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 22 May 2007.

Dato’ Mazlin bin Md Junid Ir. Md. Shah bin Hussin

I, Chua Chooi Hong, being the officer primarily responsible for the financial management of Sapura Industrial Berhad, do solemnly and sincerely

declare that the accompanying financial statements set out on pages 67 to 119 are in my opinion correct, and I make this solemn declaration

conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by )

the abovenamed Chua Chooi Hong )

at Kajang in Selangor Darul Ehsan ) Chua Chooi Hong

on 22 May 2007 )

Before me,

Kajan Singh

Commissioner for Oaths

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

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

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Annual Report 200766

Report of the Auditorsto the Members of Sapura Industrial Berhad (Incorporated in Malaysia)

We have audited the financial statements set out on pages 67 to 119. These financial statements are the responsibility of the Company’s directors.

It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our opinion to you, as a body,

in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility to any other person for the

content of this report.

We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the

accounting principles used and significant estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable Financial

Reporting Standards in Malaysia so as to give a true and fair view of:

(i) the financial position of the Group and of the Company as at 31 January 2007 and of the results and the cash flows of the Group and of

the Company for the year then ended; and

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

(b) the accounting and other records and the registers required by the Act to be kept by the Company and by its subsidiaries have been properly

kept in accordance with the provisions of the Act.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Company are

in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received

satisfactory information and explanations required by us for those purposes.

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification material to the consolidated financial

statements and did not include any comment required to be made under Section 174(3) of the Act.

Ernst & Young Habibah bte Abdul

No. AF 0039 No. 1210/05/08(J)

Chartered Accountants Partner

Kuala Lumpur, Malaysia

22 May 2007

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Annual Report 2007 67

Income Statementsfor the year ended 31 January 2007

Group Company

2007 2006 2007 2006

Note RM RM RM RM

Revenue 3 166,523,692 173,407,726 5,565,809 28,648,158

Cost of sales (147,743,776) (134,604,568) – –

Gross profit 18,779,916 38,803,158 5,565,809 28,648,158

Other income 4 2,975,495 6,727,488 4,678,661 926,566

Administrative expenses (82,104,275) (28,219,310) (53,419,353) (23,314,238)

Selling and marketing expenses (1,071,857) (1,413,269) (251,615) (488,642)

Other expenses (293,022) (245,030) (258,800) (61,530)

Operating profit (61,713,743) 15,653,037 (43,685,298) 5,710,314

Finance costs 5 (6,156,865) (4,927,227) (2,163,099) (2,031,226)

Share of loss of an associate – (300,000) – –

(Loss)/profit before tax 6 (67,870,608) 10,425,810 (45,848,397) 3,679,088

Income tax expense 9 (535,581) (965,479) – –

(Loss)/profit for the year (68,406,189) 9,460,331 (45,848,397) 3,679,088

Attributable to:

Equity holders of the Company (56,274,131) 9,543,412 (45,848,397) 3,679,088

Minority interests (12,132,058) (83,081) – –

(68,406,189) 9,460,331 (45,848,397) 3,679,088

(Loss)/earnings per share attributable to

equity holders of the Company (sen)

Basic 10 (77.33) 13.61

Diluted 10 (77.33) 13.61

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

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Annual Report 200768

Balance Sheetsas at 31 January 2007

Group Company

2007 2006 2007 2006 Note RM RM RM RM

ASSETS

Non-current assets

Property, plant and equipment 12 96,013,216 147,616,203 18,362,076 19,086,493 Development expenditure 13 6,829,389 7,829,682 – –Investments in subsidiaries 14 – – 28,957,878 71,918,240 Investments in associate 15 – – – –Other investments 16 – – – –

102,842,605 155,445,885 47,319,954 91,004,733

Current assets

Inventories 17 29,595,145 41,898,233 – –Amounts due from related companies 18 120,420 262,355 5,746,900 10,543,976 Trade and other receivables 19 32,260,305 61,758,377 1,125,117 1,120,476 Dividend receivable – – 21,590,000 28,700,000 Cash and bank balances 20 6,509,903 26,582,740 79,895 49,389 68,485,773 130,501,705 28,541,912 40,413,841

TOTAL ASSETS 171,328,378 285,947,590 75,861,866 131,418,574 EQUITY AND LIABILITIES

Equity attributable to equity holders of the Company

Share capital 28 72,775,737 72,775,737 72,775,737 72,775,737 Share premium 2,200,126 2,200,126 2,200,126 2,200,126 Negative goodwill – 5,272,339 – –(Accumulated losses)/retained profits (25,049,672) 29,590,907 (45,339,394) 4,147,790

49,926,191 109,839,109 29,636,469 79,123,653 Minority interests 539,032 30,388,931 – –

Total equity 50,465,223 140,228,040 29,636,469 79,123,653

Non-current liabilities

Retirement benefit obligations 21(a) 1,454,071 1,238,680 167,413 146,836 Provision 22 – – 9,710,000 –Borrowings 23 35,476,396 42,308,363 12,189,345 15,259,239 Deferred taxation 25 10,476,812 10,922,789 – –

47,407,279 54,469,832 22,066,758 15,406,075

Current liabilities

Amounts due to related companies 26 5,409,662 4,339,083 6,449,594 18,255,180 Trade and other payables 27 17,724,119 40,219,984 2,122,046 1,311,302 Borrowings 23 50,322,095 46,690,651 15,586,999 17,322,364

73,455,876 91,249,718 24,158,639 36,888,846

Total liabilities 120,863,155 145,719,550 46,225,397 52,294,921

TOTAL EQUITY AND LIABILITIES 171,328,378 285,947,590 75,861,866 131,418,574

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

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Annual Report 2007 69

Consolidated Statement of Changes in Equityfor the year ended 31 January 2007

Attributable to Equity Holders of the Company

Non-Distributable Distributable

Share Share Negative Retained Minority Total

Note Capital Premium Goodwill Profits Total Interest Equity

RM RM RM RM RM RM RM

At 1 February 2005

As previously stated 64,881,000 68,548 2,575,451 35,514,320 103,039,319 17,799,393 120,838,712

Prior year adjustments 29 – – – (9,644,766) (9,644,766) – (9,644,766)

At 1 February 2005 (restated) 64,881,000 68,548 2,575,451 25,869,554 93,394,553 17,799,393 111,193,946

Issuance of ordinary shares

in a subsidiary – – 2,696,888 – 2,696,888 12,672,619 15,369,507

Issue of shares for cash 28 7,894,737 2,131,578 – – 10,026,315 – 10,026,315

Profit for the year, representing

total recognised income and

expenses for the year – – – 9,543,412 9,543,412 (83,081) 9,460,331

Dividends 11 – – – (5,822,059) (5,822,059) – (5,822,059)

At 31 January 2006 (restated) 72,775,737 2,200,126 5,272,339 29,590,907 109,839,109 30,388,931 140,228,040

Attributable to Equity Holders of the Company

Non-Distributable Distributable

Retained

Profits/

Share Share Negative (Accumulated Minority Total

Note Capital Premium Goodwill Losses) Total Interest Equity

RM RM RM RM RM RM RM

At 1 February 2006

As previously stated 72,775,737 2,200,126 5,272,339 36,893,406 117,141,608 30,388,931 147,530,539

Effect of adopting FRS 3 2.3(a) – – (5,272,339) 5,272,339 – – –

Prior year adjustments 29 – – – (7,302,499) (7,302,499) – (7,302,499)

At 1 February 2006 (restated) 72,775,737 2,200,126 – 34,863,246 109,839,109 30,388,931 140,228,040

Loss for the year, representing

total recognised income

and expenses for the year – – – (56,274,131) (56,274,131) (12,132,058) (68,406,189)

Capital reduction – – – – – (17,717,841) (17,717,841)

Dividends 11 – – – (3,638,787) (3,638,787) – (3,638,787)

At 31 January 2007 72,775,737 2,200,126 – (25,049,672) 49,926,191 539,032 50,465,223

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

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Annual Report 200770

Distributable

Non- Retained

distributable Profits/

Share Share (Accumulated

Note Capital Premium Losses) Total

RM RM RM RM

At 1 February 2005

As previously stated 64,881,000 68,548 6,437,597 71,387,145

Prior year adjustment 29 – – (146,836) (146,836)

At 1 February 2005 (restated) 64,881,000 68,548 6,290,761 71,240,309

Issue of shares for cash 28 7,894,737 2,131,578 – 10,026,315

Profit for the year, representing

total recognised income and

expenses for the year – – 3,679,088 3,679,088

Dividends 11 – – (5,822,059) (5,822,059)

At 31 January 2006 (restated) 72,775,737 2,200,126 4,147,790 79,123,653

At 1 February 2006

As previously stated 72,775,737 2,200,126 4,294,626 79,270,489

Prior year adjustment 29 – – (146,836) (146,836)

At 1 February 2006 (restated) 72,775,737 2,200,126 4,147,790 79,123,653

Loss for the year, representing

total recognised income and

expenses for the year – – (45,848,397) (45,848,397)

Dividends 11 – – (3,638,787) (3,638,787)

At 31 January 2007 72,775,737 2,200,126 (45,339,394) 29,636,469

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

Company Statement of Changes in Equityfor the year ended 31 January 2007

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Annual Report 2007 71

2007 2006 RM RM

CASH FLOWS FROM OPERATING ACTIVITIES

(Loss)/profit before tax (67,870,608) 10,425,810

Adjustments for:

Depreciation 15,860,982 14,390,052

Property, plant and equipment written off 1,566,893 455,972

Amortisation of development expenditure 2,065,168 1,841,015

Short term accumulating compensated absences 7,764 57,409

Interest income (361,922) (422,173)

Provision for doubtful debts 5,498,781 397,197

Net unrealised loss on foreign exchange 135,055 –

Increase in liability for defined benefit plan 215,391 –

Net loss/(gain) on disposal of property, plant and equipment 16,021 (110,469)

Impairment of property, plant and equipment 36,923,937 –

Write down of inventories 8,937,320 –

Interest expense 6,156,865 4,927,227

Development expenditure written off 10,811 140,156

Share of loss of an associate – 300,000

Operating profit before working capital changes 9,162,458 32,402,196

Decrease/(increase) in receivables 23,085,281 (17,251,885)

Decrease/(increase) in inventories 3,365,768 (17,371,311)

(Decrease)/increase in payables (22,380,375) 9,721,025

Net changes in inter-companies balances 598,047 (946,603)

Cash generated from operations 13,831,179 6,553,422

Interest paid (6,156,865) (4,927,227)

Tax (paid)/refunded (734,621) 3,456

Net cash generated from operating activities 6,939,693 1,629,651

Consolidated Cash Flow Statementfor the year ended 31 January 2007

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Annual Report 200772

2007 2006 RM RM

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (2,507,134) (63,809,143)

Interest received 361,922 422,173

Proceeds from disposal of property, plant and equipment 338,422 345,586

Proceeds from issuance of ordinary shares in a subsidiary to minority interest – 26,000,000

Proceeds from issuance of ordinary shares – 10,026,315

Capital repayment by a subsidiary to minority shareholders (16,717,841) –

Premium paid on acquisition of butt-weld fittings business – (6,989,243)

Development expenditure incurred (1,075,686) (2,612,521)

Net cash used in investing activities (19,600,317) (36,616,833)

CASH FLOW FROM FINANCING ACTIVITIES

Net (repayment)/drawdown of term loans (9,806,156) 25,992,359

Net drawdown/(repayment) of short term borrowings 5,423,402 (1,679,881)

Repayment of hire purchase and lease financing (535,845) (1,089,328)

Dividends paid (3,615,556) (5,784,720)

Net cash (used in)/generated from financing activities (8,534,155) 17,438,430

NET DECREASE IN CASH AND CASH EQUIVALENTS (21,194,779) (17,548,752)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 21,589,882 39,138,634

CASH AND CASH EQUIVALENTS AT END OF YEAR (NOTE 20) 395,103 21,589,882

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

Consolidated Cash Flow Statement (Cont’d.)

for the year ended 31 January 2007

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Annual Report 2007 73

Company Cash Flow Statementfor the year ended 31 January 2007

2007 2006 RM RM

CASH FLOWS FROM OPERATING ACTIVITIES

(Loss)/profit before tax (45,848,397) 3,679,088

Adjustments for:

Depreciation 660,259 557,157

Dividend income – (21,745,000)

Short term accumulating compensated absences 5,219 2,110

Interest income (518) (95,633)

Interest expenses 2,163,099 2,031,226

Provision for doubtful debts 5,881,016 10,702,890

Increase in liability for defined benefit plan 20,577 –

Gain on capital return by a subsidiary (3,629,469) –

Gain on disposal of property, plant and equipment (59,231) –

Impairment of property 360,640 –

Impairment loss on investments in subsidiaries 27,641,250 4,438,277

Provision for corporate guarantee 9,710,000 –

Property, plant and equipment written off 50,884 –

Operating loss before working capital changes (3,044,671) (429,885)

(Increase)/decrease in receivables (4,641) 2,770,327

Increase/(decrease) in payables 954,065 (2,027,862)

Net changes in inter-companies balances 3,400,149 934,653

Cash generated from operations 1,304,902 1,247,233

Interest paid (2,163,099) (2,031,226)

Tax paid – (17,622)

Net cash used in operating activities (858,197) (801,615)

CASH FLOWS FROM INVESTING ACTIVITIES

Dividend received 7,110,000 6,013,705

Interest received 518 95,633

Investment in subsidiaries – (28,641,250)

Proceeds from issuance of ordinary shares – 10,026,315

Proceeds from disposal of property, plant and equipment 233,624 23,001

Net proceeds from capital return by a subsidiary 2,658,906 –

Purchase of property, plant and equipment (111,125) (636,630)

Net cash generated from/(used in) investing activities 9,891,923 (13,119,226)

CASH FLOWS FROM FINANCING ACTIVITIES

Net (repayment)/drawdown of term loans (2,910,006) 11,945,756

Repayment of hire purchase and lease financing (182,684) (233,828)

Net (repayment)/drawdown of short term borrowings (1,500,000) 2,471,000

Dividends paid (3,615,556) (5,784,720)

Net cash used in financing activities (8,208,246) 8,398,208

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 825,480 (5,522,633)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR (2,078,311) 3,444,322

CASH AND CASH EQUIVALENTS AT END OF YEAR (NOTE 20) (1,252,831) (2,078,311)

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

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Annual Report 200774

Notes to the Financial Statements31 January 2007

1. CORPORATE INFORMATION

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Board of Bursa Malaysia

Securities Berhad. The registered office of the Company is located at Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650

Bandar Baru Bangi, Selangor Darul Ehsan.

The holding company is Sapura Holdings Sdn. Bhd., a company incorporated in Malaysia.

The principal activities of the Company are investment holding and the provision of management services to its subsidiaries. The principal

activities of the subsidiaries are described in Note 14.

There have been no significant changes in the nature of the principal activities during the financial year except for the cessation of the car

selling and servicing activities of a subsidiary, Isencorp Sdn. Bhd. on 3 May 2006.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 22 May

2007.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation

The financial statements comply with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in

Malaysia. At the beginning of the current financial year, the Group and the Company had adopted new and revised FRSs which are

mandatory for financial periods beginning on or after 1 January 2006 as described fully in Note 2.3.

The financial statements of the Group and of the Company have also been prepared on a historical basis.

The financial statements are presented in Ringgit Malaysia (“RM”).

2.2 Summary of Significant Accounting Policies

(a) Subsidiaries and Basis of Consolidation

(i) Subsidiaries

Subsidiaries are entities over which the Group has the ability to control the financial and operating policies so as to obtain

benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible

are considered when assessing whether the Group has such power over another entity.

In the Company’s separate financial statements, investments in subsidiaries are stated at cost less impairment losses. On

disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in profit

or loss.

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Annual Report 2007 75

Notes to the Financial Statements (Cont’d.)

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(a) Subsidiaries and Basis of Consolidation (Cont’d.)

(ii) Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the

balance sheet date. The financial statements of the subsidiaries are prepared for the same reporting date as the Company.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue

to be consolidated until the date that such control ceases. In preparing the consolidated financial statements, intragroup

balances, transactions and unrealised gains or losses are eliminated in full. Uniform accounting policies are adopted in the

consolidated financial statements for like transactions and events in similar circumstances.

Acquisitions of subsidiaries are accounted for using the purchase method. The purchase method of accounting involves

allocating the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities assumed

at the date of acquisition. The cost of an acquisition is measured as the aggregate of the fair values, at the date of exchange,

of the assets given, liabilities incurred or assumed, and equity instruments issued, plus any costs directly attributable to the

acquisition.

Any excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and

contingent liabilities represents goodwill. Any excess of the Group’s interest in the net fair value of the identifiable assets,

liabilities and contingent liabilities over the cost of acquisition is recognised immediately in profit or loss.

Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. It is measured

at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities at the acquisition date and the

minorities’ share of changes in the subsidiaries’ equity since then.

(b) Associates

Associates are entities in which the Group has significant influence and that is neither a subsidiary nor an interest in a joint

venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not in

control or joint control over those policies.

Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting. Under

the equity method, the investment in associate is carried in the consolidated balance sheet at cost adjusted for post-acquisition

changes in the Group’s share of net assets of the associate. The Group’s share of the net profit or loss of the associate is recognised

in the consolidated profit or loss. Where there has been a change recognised directly in the equity of the associate, the Group

recognises its share of such changes.

In applying the equity method, unrealised gains and losses on transactions between the Group and the associate are eliminated

to the extent of the Group’s interest in the associate. After application of the equity method, the Group determines whether it is

necessary to recognise any additional impairment loss with respect to the Group’s net investment in the associate. The associate

is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant

influence over the associate.

31 January 2007

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Annual Report 200776

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(b) Associates (Cont’d.)

Goodwill relating to an associate is included in the carrying amount of the investment and is not amortised. Any excess of the

Group’s share of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities over the cost of the

investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the

Group’s share of the associate’s profit or loss in the period in which the investment is acquired.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any long-term interests

that, in substance, form part of the Group’s net investment in the associates, the Group does not recognise further losses, unless it

has incurred obligations or made payments on behalf of the associate.

The most recent available audited financial statements of the associates are used by the Group in applying the equity method.

Where the dates of the audited financial statements used are not coterminous with those of the Group, the share of results is

arrived at from the last audited financial statements available and management financial statements to the end of the accounting

period. Uniform accounting polices are adopted for like transactions and events in similar circumstances.

(c) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a

business combination is their fair values as at the date of acquisition. Following initial recognition, intangible assets are carried

at cost less any accumulated amortisation and any accumulated impairment losses. The useful lives of intangible assets are

assessed to be either finite or indefinite. Intangible assets with finite lives are amortised on a straight-line basis over the estimated

economic useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each

balance sheet date.

Intangible assets with indefinite useful lives are not amortised but tested for impairment annually or more frequently if the events

or changes in circumstances indicate that the carrying value may be impaired either individually or at the cash-generating unit

level. The useful life of an intangible asset with an indefinite life is also reviewed annually to determine whether the useful life

assessment continues to be supportable.

(i) Research and development costs

All research costs are recognised in the profit or loss as incurred.

Expenditure incurred on projects to develop new products is capitalised and deferred only when the Group can demonstrate

the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete

and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to

complete the project and the ability to measure reliably the expenditure during the development. Product development

expenditures which do not meet these criteria are expensed when incurred.

Development costs, considered to have finite useful lives, are stated at cost less any impairment losses and are amortised

using the straight-line basis over the commercial lives of the underlying products not exceeding five years. Impairment is

assessed whenever there is an indication of impairment and the amortisation period and method are also reviewed at least

at each balance sheet date.

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Annual Report 2007 77

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(d) Property, Plant and Equipment and Depreciation

All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset’s carrying

amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with

the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is

derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they

are incurred.

Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less accumulated depreciation

and any accumulated impairment losses.

Long term leasehold land is depreciated over the period of the respective leases which range from 96 to 99 years. Depreciation of

other property, plant and equipment is provided for on a straight-line basis to write off the cost of each asset to its residual value

over the estimated useful life, at the following annual rates:

Buildings 2%

Plant, machinery, electrical installation, factory equipment and application tools 10% to 33%

Furniture, fixtures, office equipment, renovations, computers and motor vehicles 8% to 25%

The residual values, useful life and depreciation method are reviewed at each financial year-end to ensure that the amount,

method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future

economic benefits embodied in the items of property, plant and equipment.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from

its use or disposal. The difference between the net disposal proceeds, if any and the net carrying amount is recognised in profit or

loss and the unutilised portion of the revaluation surplus on that item is taken directly to retained earnings.

(e) Impairment of Non-Financial Assets

The carrying amounts of the Group’s assets, other than inventories and deferred tax assets, are reviewed at each balance sheet

date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is

estimated to determine the amount of impairment loss.

For goodwill, assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable

amount is estimated at each balance sheet date or more frequently when indicators of impairment are identified.

For the purpose of impairment testing of these assets, recoverable amount is determined on an individual asset basis unless the

asset does not generate cash flows that are largely independent of those from other assets. If this is the case, recoverable amount

is determined for the cash-generating unit (“CGU”) to which the asset belongs to. Goodwill acquired in a business combination is,

from the acquisition date, allocated to each of the Group’s CGUs, or groups of CGUs, that are expected to benefit from the synergies

of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units.

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Annual Report 200778

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(e) Impairment of Non-Financial Assets (Cont’d.)

An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value in use. In assessing

value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects

current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset

exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment

losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated

to those units or groups of units and then, to reduce the carrying amount of the other assets in the unit or groups of units on a

pro-rata basis.

An impairment loss is recognised in profit or loss in the period in which it arises.

Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill is

reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the

last impairment loss was recognised. The carrying amount of an asset other than goodwill is increased to its revised recoverable

amount, provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation

or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset

other than goodwill is recognised in profit or loss.

(f) Inventories

Inventories are stated at lower of cost and net realisable value.

Cost is determined using the weighted average basis. The cost of raw materials comprises costs of purchase. The costs of finished

goods and work-in-progress comprise raw materials, direct labour, other direct costs and appropriate proportions of production

overheads.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the

estimated costs necessary to make the sale.

(g) Financial Instruments

Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the

instrument.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement.

Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income.

Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset

when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle

the liability simultaneously.

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Annual Report 2007 79

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(g) Financial Instruments (Cont’d.)

(i) Cash and Cash Equivalents

For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at bank and deposits at

call which have an insignificant risk of changes in value, net of outstanding bank overdrafts.

(ii) Other Non-current investments

Non-current investments other than investments in subsidiaries and associate are stated at cost less impairment losses. On

disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in profit or

loss.

(iii) Receivables

Receivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate is made for

doubtful debt based on a review of all outstanding amounts as at the balance sheet date.

(iv) Payables

Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services

received.

(v) Interest Bearing Loans and Borrowings

All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable

transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised

cost using the effective interest method.

(vi) Equity Instruments

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

are declared.

The transaction costs of an equity transaction are accounted for as a deduction from equity, net of tax. Equity transaction

costs comprise only those incremental external costs directly attributable to the equity transaction which would otherwise

have been avoided.

The consideration paid, including attributable transaction costs on repurchased ordinary shares of the Company that have

not been cancelled, are classified as treasury shares and presented as a deduction from equity. No gain or loss is recognised

in profit or loss on the sale, re-issuance or cancellation of treasury shares. When treasury shares are reissued by resale, the

difference between the sales consideration and the carrying amount is recognised in equity.

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Annual Report 200780

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(h) Leases

(i) Classification

A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards incidental to

ownership. Leases of land and buildings are classified as operating or finance leases in the same way as leases of other assets

and the land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease

classification. All leases that do not transfer substantially all the risks and rewards are classified as operating leases.

(ii) Finance Leases – the Group as Lessee

Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fair values

and the present value of the minimum lease payments at the inception of the leases, less accumulated depreciation and

impairment losses. The corresponding liability is included in the balance sheet as borrowings. In calculating the present

value of the minimum lease payments, the discount factor used is the interest rate implicit in the lease, when it is practicable

to determine; otherwise, the Company’s incremental borrowing rate is used. Any initial direct costs are also added to the

carrying amount of such assets.

Lease payments are apportioned between the finance costs and the reduction of the outstanding liability. Finance costs,

which represent the difference between the total leasing commitments and the fair value of the assets acquired, are

recognised in the profit or loss over the term of the relevant lease so as to produce a constant periodic rate of charge on the

remaining balance of the obligations for each accounting period.

The depreciation policy for leased assets is in accordance with that for depreciable property, plant and equipment as

described in Note 2.2(d).

(iii) Operating Leases – the Group as Lessee

Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevant lease. The

aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on

a straight-line basis.

(i) Borrowing Costs

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

(j) Income Tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income

taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the

balance sheet date.

Deferred tax is provided for, using the liability method. In principle, deferred tax liabilities are recognised for all taxable temporary

differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax

credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,

unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary difference arises from

goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction which is not a business

combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

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Annual Report 2007 81

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(j) Income Tax (Cont’d.)

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is

settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised

as income or an expense and included in the profit or loss for the period, except when it arises from a transaction which is

recognised directly in equity, in which case the deferred tax is also recognised directly in equity, or when it arises from a business

combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or the amount of any excess

of the acquirer’s interest is the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the cost

of the combination.

(k) Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow

of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be

made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of

the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the

risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as

finance cost.

Provision for restructuring costs is recognised when a detailed and formal restructuring plan has been approved, and the

restructuring has either commenced or has been announced publicly. Costs relating to ongoing activities are not provided for.

(l) Employee Benefits

(i) Short Term Benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated

services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual

leave are recognised when services are rendered by employees that increase their entitlement to future compensated

absences, and short term non-accumulating compensated absences such as sick leave are recognised when the absences

occur.

(ii) Defined Contribution Plans

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate

entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold

sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. Such

contributions are recognised as an expense in the profit or loss as incurred. As required by law, companies in Malaysia make

such contributions to the Employees Provident Fund (“EPF”).

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Annual Report 200782

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(l) Employee Benefits (Cont’d.)

(iii) Defined Benefit Plan

The Group operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its eligible employees. The

Group’s obligation under the Scheme, calculated using the Projected Unit Credit Method, is determined based on actuarial

computations by independent actuaries, through which the amount of benefit that employees have earned in return for

their service in the current and prior years is estimated. That benefit is discounted in order to determine its present value.

Actuarial gains and losses are recognised as income or expense over the expected average remaining working lives of

the participating employees when the cumulative unrecognised actuarial gains or losses for the Scheme exceed 10% of

the higher of the present value of the defined benefit obligation and the fair value of plan assets. Past service costs are

recognised immediately to the extent that the benefits are already vested, and otherwise are amortised on a straight-line

basis over the average period until the amended benefits become vested.

The amount recognised in the balance sheet represents the present value of the defined benefit obligations adjusted for

unrecognised actuarial gains and losses and unrecognised past service costs, and reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the net total of any unrecognised actuarial losses and past service costs,

and the present value of any economic benefits in the form of refunds or reductions in future contributions to the plan.

(iv) Share Based Compensation

The Sapura Industrial Berhad Employee Share Options Scheme (“ESOS”), an equity-settled, share-based compensation plan,

allows the Group’s employees to acquire ordinary shares of the Company. The total fair value of share options granted

to employees is recognised as an employee cost with a corresponding increase in the share option reserve within equity

over the vesting period and taking into account the probability that the options will vest. The fair value of share options is

measured at grant date, taking into account, if any, the market vesting conditions upon which the options were granted but

excluding the impact of any non-market vesting conditions. Non-market vesting conditions are included in assumptions

about the number of options that are expected to become exercisable on vesting date.

At each balance sheet date, the Group revises its estimates of the number of options that are expected to become exercisable

on vesting date. It recognises the impact of the revision of original estimates, if any, in the profit or loss, and a corresponding

adjustment to equity over the remaining vesting period. The equity amount is recognised in the share option reserve until

the option is exercised, upon which it will be transferred to share premium, or until the option expires, upon which it will be

transferred directly to retained earnings.

The proceeds received net of any directly attributable transaction costs are credited to share capital when the options are

exercised.

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Annual Report 2007 83

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(l) Employee Benefits (Cont’d.)

(v) Termination Benefits

Termination benefits are payable when employment is terminated before the normal retirement date or whenever an

employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits as a

liability and an expense when it is demonstrably committed to either terminate the employment of current employees

according to a detailed plan without possibility of withdrawal or providing termination benefits as a result of an offer made

to encourage voluntary redundancy. In the case of an offer made to encourage voluntary redundancy, the measurement

of termination benefits is based on the number of employees expected to accept the offer. Benefits falling due more than

twelve months after balance sheet date are discounted to present value.

(m) Foreign Currencies

(i) Functional and Presentation Currency

The individual financial statements of each entity in the Group are measured using the currency of the primary economic

environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented

in Ringgit Malaysia (RM), which is also the Company’s functional currency.

(ii) Foreign Currency Transactions

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional

currency (foreign currencies) are recorded in the functional currencies using the exchange rates prevailing at the dates of

the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates

prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies

are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are

measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included

in profit or loss for the period.

Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in profit or loss

for the period except for the differences arising on the retranslation of non-monetary items in respect of which gains and

losses are recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised

directly in equity.

(n) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be

reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

(i) Sale of Goods

Revenue is recognised net of sales taxes and upon transfer of significant risks and rewards of ownership to the buyer.

Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration

due, associated costs or the possible return of goods.

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Annual Report 200784

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Summary of Significant Accounting Policies (Cont’d.)

(n) Revenue Recognition (Cont’d.)

(ii) Rental Income

Rental income is recognised on an accrual basis.

(iii) Interest Income

Interest income is recognised on an accrual basis using the effective interest method.

(iv) Dividend Income

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

(v) Management Fees

Management fees are recognised when services are rendered.

2.3 Changes in Accounting Policies, Effects and Changes in Comparatives Arising from Adoption of New and Revised FRSs

On 1 February 2006, the Group and the Company adopted the following FRSs mandatory for financial periods beginning on or after

1 January 2006:

FRS 2 Share-based Payment

FRS 3 Business Combinations

FRS 5 Non-current Assets Held for Sale and Discontinued Operations

FRS 101 Presentation of Financial Statements

FRS 102 Inventories

FRS 108 Accounting Policies, Changes in Estimates and Errors

FRS 110 Events after the Balance Sheet Date

FRS 116 Property, Plant and Equipment

FRS 121 The Effects of Changes in Foreign Exchange Rates

FRS 127 Consolidated and Separate Financial Statements

FRS 128 Investments in Associates

FRS 131 Interests in Joint Ventures

FRS 132 Financial Instruments: Disclosure and Presentation

FRS 133 Earnings Per Share

FRS 136 Impairment of Assets

FRS 138 Intangible Assets

FRS 140 Investment Property

The Group and the Company have not early adopted the following new and revised FRSs and Interpretations:

Effective for financial period beginning on or after 1 October 2006:

FRS 117 Leases

FRS 124 Related Party Disclosures

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Annual Report 2007 85

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.3 Changes in Accounting Policies, Effects and Changes in Comparatives Arising from Adoption of New and Revised FRSs (Cont’d.)

Effective for financial periods beginning on or after 1 January 2007:

FRS 6 Exploration for and Evaluation of Mineral Resources

FRS 119 2004

Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures

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

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

IC Interpretation 5 Rights to Interest arising from Decommissioning, Restoration and Environmental Rehabilitation Funds

IC Interpretation 6 Liabilities arising from Participation in a Specific Market – Waste Electrical and Electronic Equipment

IC Interpretation 7 Applying the Restatement Approach under FRS 129 2004

Financial Reporting in Hyperinflationary Economics

IC Interpretation 8 Scope of FRS 2

Effective date deferred indefinitely:

FRS 139 Financial Instruments: Recognition and Measurement

FRS 6 and the amendment to FRS 119 are not expected to have a significant impact on the Group accounting policies. The effects of FRS

117, 124 and 139 are exempted from disclosure.

The adoption of FRS 2, 5, 102, 108, 110, 116, 121, 127, 128, 131, 132, 133, 138 and 140 does not result in significant changes in

accounting policies of the Group and the Company.

The principal changes in accounting policies and their effects resulting from the adoption of the other new and revised FRSs are

discussed below:

(a) FRS 3: Business Combination

Excess of Group’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities

over cost (previously known as negative goodwill)

Prior to 1 January 2006, negative goodwill was not amortised. Under FRS 3, any excess of the Group’s interest in the net fair value

of acquiree’s identifiable assets, liabilities and contingent liabilities over cost of acquisitions, after reassessment, is now recognised

immediately in profit or loss. In accordance with transitional provisions of FRS 3, the negative goodwill as at 1 February 2006 of

RM5,272,339 was derecognised and credited against the opening balance of retained profits.

Because the revised accounting policy has been applied prospectively, the change has had no impact on amounts reported

for 2006 or prior periods. The effects on the consolidated balance sheet as at 31 January 2007 are set out in Note 2.3(c). This

change has no impact on the consolidated income statement for the year ended 31 January 2007 and the Company’s financial

statements.

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Annual Report 200786

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.3 Changes in Accounting Policies, Effects and Changes in Comparatives Arising from Adoption of New and Revised FRSs (Cont’d.)

(b) FRS 101: Presentation of Financial Statements

Prior to 1 February 2006, minority interests at the balance sheet date were presented in the consolidated balance sheet separately

from liabilities and equity. Upon the adoption of the revised FRS 101, minority interests are now presented within total equity.

In the consolidated income statements, minority interests are presented as an allocation of the total profit or loss for the year. A

similar requirement is also applicable to the statement of changes in equity. The revised FRS 101 also requires disclosure, on the

face of the statement of changes in equity, total recognised income and expenses for the year, showing separately the amounts

attributable to equity holders of the Company and to minority interests.

This change in presentation has been applied retrospectively and as disclosed in Note 2.3(d), certain comparatives have

been restated. The effects on the consolidated balance sheet as at 31 January 2007 are set out in Note 2.3(c). This change in

presentation has no impact on the consolidated income statement for the year ended 31 January 2007 and the Company’s

financial statements.

(c) Summary of effects and changes arising from adoption of new and revised FRSs

The extent to which each of the line items in the consolidated balance sheet as at 31 January 2007 is higher and lower than it

would have been had the previous policies been applied in the current year are as follows:

Increase/(Decrease)

FRS 3 FRS 101

Description of change Note 2.3(a) Note 2.3(b)

RM RM

Reserve on consolidation (5,272,339) –

Retained profits 5,272,339 –

Total equity – 539,032

(d) Restatement of Comparatives

The comparative amounts for the year ended 31 January 2006 which have been restated arising from the effects of adopting the

new and revised FRSs is as follows:

Previously FRS 101

Stated Note 2.3(b) Restated

RM RM RM

Total equity 119,483,875 30,388,931 149,872,806

2.4 Changes in Estimates

The revised FRS 116: Property, Plant and Equipment requires the review of the residual value and remaining useful life of an item of

property, plant and equipment at least at each financial year end. The revision is accounted for prospectively as a change in accounting

estimates. The change in accounting estimates did not result in any material adjustments to the Group’s and the Company’s financial

statements.

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Annual Report 2007 87

Notes to the Financial Statements (Cont’d.)

31 January 2007

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.5 Significant Accounting Estimates and Judgements

The preparation of financial statements require management to make judgement, estimates and assumptions that affect the application

of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures made. They are assessed on

an ongoing basis and are based on experience and relevant factors, including expectations of future events that are believed to be

reasonable under the circumstances. The key judgements and assumptions concerning the future made and other key sources of

estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts

of assets and liabilities within the next financial year are discussed below:

(i) Write Down of Inventories

Writing down of inventories to reflect the current net realisable value based on estimated selling price less selling and distribution

costs and all other estimated costs to completion. In arriving at the net realisable value, due allowance was made for slow-moving

and obsolete items.

(ii) Impairment of Property, Plant and Equipment

During the current financial year, the Group has recognised impairment losses in respect of a subsidiary’s property, plant and

equipment. The Group carried out the impairment test based on an estimated expected future cashflow of the subsidiary at a

suitable discount rate in order to calculate the present value of those cashflows. The carrying amounts of property, plant and

equipment of the Group as at 31 January 2007 were RM96,013,216 (2006: RM147,616,203). Further details of the impairment

losses recognised are disclosed in Note 12(a).

(iii) Depreciation of Plant and Machinery

The cost of plant and machinery is depreciated on a straight-line basis over the assets’ useful lives. Management estimates the

useful lives of these plant and machinery to be 10 years. These are common life expectancies applied in the industry. Changes in

the expected level of usage and technological developments could impact the economic useful lives and the residual values of

these assets, therefore future depreciation charges could be revised.

(iv) Deferred Tax Assets

Deferred tax assets are recognised for all unused tax losses and unabsorbed capital allowances to the extent that it is probable

that taxable profit will be available against which the losses and capital allowances can be utilised. Significant management

judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and

level of future taxable profits together with future tax planning strategies. The total carrying value of recognised tax losses and

capital allowances of the Group was RM895,160 (2006: RM264,576). The unrecognised tax losses and capital allowances of the

Group and of the Company were RM47,736,929 (2006: RM25,015,286) and RM15,778,594 (2006: RM9,028,356) respectively.

3. REVENUE

Group Company

2007 2006 2007 2006

RM RM RM RM

Sales of goods and services 166,523,692 173,407,726 – –

Management fees – – 5,565,809 6,903,158

Dividends (tax exempt) from subsidiaries – – – 21,745,000

166,523,692 173,407,726 5,565,809 28,648,158

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Annual Report 200788

Notes to the Financial Statements (Cont’d.)

31 January 2007

4. OTHER INCOME

Group Company

2007 2006 2007 2006

RM RM RM RM

Rental income 423,732 588,077 822,000 830,933

Interest income 361,922 422,173 518 95,633

Gain on disposal of property, plant and equipment 72,848 110,469 59,231 –

Income from scrap sales 974,198 649,296 – –

Write back of provision for doubtful debts – 39,782 107,285 –

Sub-vendor administration fees – 3,466,203 – –

Foreign exchange gain

– Realised 352,499 1,130,361 – –

– Unrealised 48,518 – – –

Gain on capital return by a subsidiary – – 3,629,469 –

Others 741,778 321,127 60,158 –

2,975,495 6,727,488 4,678,661 926,566

5. FINANCE COSTS

Group Company

2007 2006 2007 2006

RM RM RM RM

Interests expense on:

Term loans 3,845,340 3,326,217 1,401,391 1,276,705

Overdrafts 360,224 277,499 137,412 98,377

Revolving credit 785,582 420,859 419,829 201,126

Hire purchase and lease payables 109,693 143,696 46,332 24,163

Bankers’ acceptances 713,098 443,709 – –

Letter of credits 182,773 181,120 – –

Floor stocking facility – 41,404 – –

Related company – – 146,225 417,557

Others 160,155 92,723 11,910 13,298

6,156,865 4,927,227 2,163,099 2,031,226

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Annual Report 2007 89

Notes to the Financial Statements (Cont’d.)

31 January 2007

6. (LOSS)/PROFIT BEFORE TAX

The following amounts have been included in arriving at (loss)/profit before tax:

Group Company

2007 2006 2007 2006

RM RM RM RM

Employee benefits expense (Note 7) 22,589,353 23,558,940 3,111,002 2,769,395

Non-executive directors’ remuneration (Note 8) 220,950 237,500 220,950 237,500

Amortisation of development expenditure 2,065,168 1,841,015 – –

Auditors’ remuneration

– Statutory audit 122,098 110,280 18,000 15,000

– Other services 5,000 5,000 5,000 5,000

Depreciation of property, plant and equipment 15,860,982 14,390,052 660,259 557,157

Foreign exchange loss

– Unrealised 183,573 – – –

– Realised 43,566 (354,302) – –

Development expenditure written off 10,811 140,156 – –

Loss on disposal of property, plant and equipment 88,869 – – –

Write down of inventories 8,937,320 – – –

Property, plant and equipment written off 1,566,893 455,972 50,884 –

Impairment of property, plant and equipment 36,923,937 – 360,640 –

Provision for corporate guarantee – – 9,710,000 –

Provision for doubtful debts

– Trade and other receivables 5,498,781 436,979 – –

– Due from subsidiaries – – 5,988,301 10,702,890

Impairment loss on investment in a subsidiary – – 27,641,250 4,438,277

Rental expense

– premises 2,578,257 1,162,120 591,675 633,913

– equipment 57,727 36,527 – –

7. EMPLOYEE BENEFITS EXPENSE

Group Company

2007 2006 2007 2006

RM RM RM RM

Wages and salaries 16,873,294 15,515,953 1,817,875 1,601,679

Social security contribution 217,813 172,122 10,346 9,064

Contributions to defined contribution plan 1,871,973 1,574,849 276,064 227,931

Increase in liability for defined benefit plan 215,391 – 20,577 –

Short term accumulating compensated absences 7,764 57,409 5,219 2,110

Other staff related expenses 3,403,118 6,238,607 980,921 928,611

22,589,353 23,558,940 3,111,002 2,769,395

Included in employee benefits expense of the Group and of the Company are executive directors’ remuneration amounting to RM3,299,492

(2006: RM2,469,317) and RM920,208 (2006: RM739,001) respectively as further disclosed in Note 8.

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Annual Report 200790

Notes to the Financial Statements (Cont’d.)

31 January 2007

8. DIRECTORS’ REMUNERATION

Group Company

2007 2006 2007 2006

RM RM RM RM

Directors of the Company

Executive:

Salaries and other emoluments 1,004,925 850,377 586,800 547,625

Bonus in respect of previous year 350,000 178,944 225,000 112,200

Contributions to defined contribution plan 162,528 123,552 108,408 79,176

Benefits-in-kind 67,550 59,600 159,127 52,400

1,585,003 1,212,473 1,079,335 791,401

Non-Executive:

Fees 163,885 213,000 163,885 213,000

Other emoluments 57,065 24,500 57,065 24,500

Benefits-in-kind 375 600 375 600

221,325 238,100 221,325 238,100

1,806,328 1,450,573 1,300,660 1,029,501

Directors of Subsidiaries

Executive:

Salaries and other emoluments 1,398,772 995,463 – –

Bonus in respect of previous year 191,135 177,989 – –

Contributions to defined contribution plan 192,132 142,992 – –

Benefits-in-kind 79,768 75,848 – –

1,861,807 1,392,292 – –

3,668,135 2,842,865 1,300,660 1,029,501

Analysis excluding benefits-in-kind:

Total executive directors’ remuneration, excluding

benefits-in-kind (Note 7) 3,299,492 2,469,317 920,208 739,001

Total non-executive directors’ remuneration,

excluding benefits-in-kind 220,950 237,500 220,950 237,500

Total directors’ remuneration excluding benefits-in-kind 3,520,442 2,706,817 1,141,158 976,501

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Annual Report 2007 91

Notes to the Financial Statements (Cont’d.)

31 January 2007

8. DIRECTORS’ REMUNERATION (CONT’D.)

The number of directors of the Company whose total remuneration during the financial year fell within the following bands is analysed

below:

Number of Directors

2007 2006

Executive:

RM400,001 – RM450,000 – 1

RM500,001 – RM550,000 1 –

RM750,001 – RM800,000 – 1

RM1,000,001 – RM1,050,000 1 –

Non-executive:

Below RM50,000 8 7

9. INCOME TAX EXPENSE

Group Company

2007 2006 2007 2006

RM RM RM RM

Malaysian income tax:

Current year 733,546 1,320,113 – –

Under/(overprovision) in prior years 248,012 (88,030) – –

981,558 1,232,083 – –

Deferred tax (Note 25):

Relating to origination and reversal of temporary differences (950,573) 1,713,889 – –

Relating to changes in tax rates (793,229) – – –

Under/(overprovision) in prior years 1,297,825 (1,980,493) – –

(445,977) (266,604) – –

535,581 965,479 – –

Domestic current income tax is calculated at the statutory tax rate of 27% (2006: 28%) of the estimated assessable profit for the year. The

domestic statutory tax rate has been reduced to 27% for the current year of assessment 2007 and to 26% effective year of assessment 2008.

The computation of deferred tax as at 31 January 2007 has reflected these changes. Certain subsidiaries with paid-up share capital of less

than RM2.5 million qualify for the reduced statutory tax rate of 20% (2006: 20%) on the first RM500,000 (2006: RM500,000) of estimated

assessable profit for the year.

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Annual Report 200792

Notes to the Financial Statements (Cont’d.)

31 January 2007

9. INCOME TAX EXPENSE (CONT’D.)

A reconciliation of income tax expense applicable to (loss)/profit before taxation at the statutory income tax rate to income tax expense at

the effective income tax rate of the Group and of the Company are as follows:

2007 2006

RM RM

Group

(Loss)/profit before tax (67,870,608) 10,425,810

Taxation at Malaysian statutory tax rate of 27% (2006: 28%) (18,325,064) 2,919,227

Effect of income subject to tax rate of 20% (25,703) –

Effect of income not subject to tax (44,961) (1,343,200)

Effect of changes in tax rates on opening balance of deferred tax (793,229) –

Effect of expenses not deductible for tax purposes 4,500,378 732,146

Utilisation of unabsorbed reinvestment allowance (1,164,163) (1,496,314)

Utilisation of unabsorbed capital allowances – (162,089)

Utilisation of previously unrecognised tax losses – (19,705)

Deferred tax assets not recognised during the year 14,842,486 2,403,937

Under/(overprovision) of income tax in prior years 248,012 (88,030)

Under/(overprovision) of deferred tax in prior years 1,297,825 (1,980,493)

Income tax expense for the year 535,581 965,479

Company

(Loss)/profit before tax (45,848,397) 3,679,088

Taxation at Malaysian statutory tax rate of 27% (2006: 28%) (12,379,067) 1,030,145

Effect of income not subject to tax (1,024,917) (2,276,400)

Effect of expenses not deductible for tax purposes 7,803,314 241,561

Utilisation of unabsorbed capital allowances – (162,089)

Deferred tax assets not recognised during the year 5,600,670 1,166,783

Income tax expense for the year – –

Tax savings during the financial year arising from:

Group Company

2007 2006 2007 2006

RM RM RM RM

Utilisation of current year tax losses 234,360 257,900 – –

Utilisation of previously unrecognised tax losses – 19,705 – –

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Annual Report 2007 93

Notes to the Financial Statements (Cont’d.)

31 January 2007

10. (LOSS)/EARNINGS PER SHARE

(a) Basic:

Basic (loss)/earnings per share amounts are calculated by dividing (loss)/profit for the year attributable to ordinary equity holders of

the Company by the weighted average number of ordinary shares in issue during the financial year.

2007 2006

RM RM

(Loss)/profit for the year attributable to ordinary equity holders of the Company (56,274,131) 9,543,412

Weighted average number of ordinary shares in issue 72,775,737 70,144,158

Basic (loss)/earnings per share (sen) (77.33) 13.61

(b) Diluted:

For the purpose of calculating diluted earnings per share, the (loss)/profit for the year attributable to ordinary equity holders of the

Company and the weighted average number of ordinary shares in issue during the financial year have been adjusted for the dilutive

effects of all potential ordinary shares, i.e. share options granted to employees.

2007 2006

RM RM

(Loss)/profit for the year attributable to ordinary equity holders of the Company (56,274,131) 9,543,412

Weighted average number of ordinary shares in issue 72,775,737 70,144,158

Effect of dilution:

Share options * – –

Adjusted weighted average number of ordinary shares in issue and issuable 72,775,737 70,144,158

Diluted (loss)/earnings per share (sen) (77.33) 13.61

* The effect of dilution arising from the assumed conversion of options under the Company’s ESOS is anti-dilutive.

11. DIVIDENDS

Amount Net dividends per share

2007 2006 2007 2006

RM RM Sen Sen

Recognised during the year:

Final tax exempt dividend for 2005 of 8% on

72,775,737 ordinary shares declared on

29 March 2005 – 5,822,059 – 8

Final tax exempt dividend for 2006 of 5% on

72,775,737 ordinary shares approved on

28 March 2006 3,638,787 – 5 –

3,638,787 5,822,059 5 8

Page 96: New Opportunities. Enhancing our core business

Annual Report 200794

Notes to the Financial Statements (Cont’d.)

31 January 2007

12. PROPERTY, PLANT AND EQUIPMENT

Plant,

Machinery, Furniture,

Electrical Fixtures,

Installation, Equipment,

Factory Renovation,

Long term Equipment and Computers

leasehold Application and Motor

land Buildings Tools Vehicles Total

RM RM RM RM RM

Group

Cost

At 1 February 2006 24,454,624 22,367,384 185,029,537 11,403,294 243,254,839

Additions 726,635 – 1,337,357 1,039,276 3,103,268

Disposals – – (97,182) (672,204) (769,386)

Write offs – – (1,673,290) (872,207) (2,545,497)

At 31 January 2007 25,181,259 22,367,384 184,596,422 10,898,159 243,043,224

Accumulated depreciation

and impairment

At 1 February 2006 1,451,650 4,045,324 84,335,480 5,806,182 95,638,636

Depreciation charge for the year

recognised in profit and loss 249,588 455,165 13,754,454 1,401,775 15,860,982

Disposals – – (9,585) (405,358) (414,943)

Write offs – – (432,354) (546,250) (978,604)

Impairment loss recognised

in income statement 360,640 1,433,133 34,954,148 176,016 36,923,937

At 31 January 2007 2,061,878 5,933,622 132,602,143 6,432,365 147,030,008

Analysed as:

Accumulated depreciation 1,701,238 4,500,489 97,647,995 6,256,349 110,106,071

Accumulated impairment losses 360,640 1,433,133 34,954,148 176,016 36,923,937

2,061,878 5,933,622 132,602,143 6,432,365 147,030,008

Net carrying amount

At 31 January 2007 23,119,381 16,433,762 51,994,279 4,465,794 96,013,216

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Annual Report 2007 95

Notes to the Financial Statements (Cont’d.)

31 January 2007

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

Plant,

Machinery, Furniture,

Electrical Fixtures,

Installation, Equipment,

Factory Renovation,

Long term Equipment and Computers

leasehold Application and Motor

land Buildings Tools Vehicles Total

RM RM RM RM RM

Group (Cont’d)

Cost

At 1 February 2005 21,217,709 18,454,722 139,164,177 10,952,280 189,788,888

Additions 3,236,915 3,912,662 54,907,523 2,534,768 64,591,868

Disposals – – (8,910,941) (985,874) (9,896,815)

Write offs – – (131,222) (1,097,880) (1,229,102)

At 31 January 2006 24,454,624 22,367,384 185,029,537 11,403,294 243,254,839

Accumulated depreciation

At 1 February 2005 1,213,313 3,610,377 80,921,948 5,912,612 91,658,250

Depreciation charge for the year:

– Recognised in income statement 238,337 434,947 12,136,863 1,579,905 14,390,052

– Capitalised in development

expenditure – – 25,162 – 25,162

Disposals – – (8,683,569) (978,129) (9,661,698)

Write offs – – (64,924) (708,206) (773,130)

At 31 January 2006 1,451,650 4,045,324 84,335,480 5,806,182 95,638,636

Net carrying amount

At 31 January 2006 23,002,974 18,322,060 100,694,057 5,597,112 147,616,203

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Annual Report 200796

Notes to the Financial Statements (Cont’d.)

31 January 2007

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

Furniture,

Fixtures,

Equipment,

Plant, Renovation,

Machinery, Computers

Leasehold and Factory and Motor

Land Buildings Equipment Vehicles Total

RM RM RM RM RM

Company

Cost

At 1 February 2006 16,571,044 2,265,637 74,051 2,967,106 21,877,838

Additions – – – 521,759 521,759

Disposals – – – (350,939) (350,939)

Write offs – – (519) (116,888) (117,407)

At 31 January 2007 16,571,044 2,265,637 73,532 3,021,038 21,931,251

Accumulated depreciation

and impairment

At 1 February 2006 885,806 463,361 3,941 1,438,237 2,791,345

Depreciation charge for the

year recognised in income statement 168,934 45,313 10,728 435,284 660,259

Disposals – – – (176,546) (176,546)

Write offs – – (519) (66,004) (66,523)

Impairment loss recognised

in income statement 360,640 – – – 360,640

At 31 January 2007 1,415,380 508,674 14,150 1,630,971 3,569,175

Analysed as:

Accumulated depreciation 1,054,740 508,674 14,150 1,630,971 3,208,535

Accumulated impairment losses 360,640 – – – 360,640

1,415,380 508,674 14,150 1,630,971 3,569,175

Net carrying amount

At 31 January 2007 15,155,664 1,756,963 59,382 1,390,067 18,362,076

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Annual Report 2007 97

Notes to the Financial Statements (Cont’d.)

31 January 2007

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

Furniture,

Fixtures,

Equipment,

Plant, Renovation,

Machinery, Computers

Leasehold and Factory and Motor

Land Buildings Equipment Vehicles Total

RM RM RM RM RM

Company (Cont’d.)

Cost

At 1 February 2005 16,571,044 2,265,637 11,800 1,832,915 20,681,396

Additions – – – 1,252,181 1,252,181

Transfer from a subsidiary – – 62,251 58,625 120,876

Disposals – – – (176,615) (176,615)

At 31 January 2006 16,571,044 2,265,637 74,051 2,967,106 21,877,838

Accumulated depreciation

At 1 February 2005 716,872 418,048 2,027 1,250,855 2,387,802

Depreciation charge for the

year recognised in income statement 168,934 45,313 1,914 340,996 557,157

Disposals – – – (153,614) (153,614)

At 31 January 2006 885,806 463,361 3,941 1,438,237 2,791,345

Net carrying amount

At 31 January 2006 15,685,238 1,802,276 70,110 1,528,869 19,086,493

(a) The management of Sapura-Schulz Hydroforming Sdn. Bhd., a subsidiary of the Group included within the manufacturing segment,

carried out a review of the recoverable amount of its property, plant and equipment during the current financial year following the

disputes on the alleged claims made by its shareholder in Germany on the Business Operation Agreement and License Agreement. The

cummulative effect of the allegations and disputes has eliminated the mutual confidence and trust in the business relationship. Prior to

the final decision on the dispute, the Group has taken a prudent step to review the business operation of the said subsidiary and other

subsidiaries. The review led to the recognition of an impairment loss of RM36,923,937 (Note 6).

Page 100: New Opportunities. Enhancing our core business

Annual Report 200798

Notes to the Financial Statements (Cont’d.)

31 January 2007

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

(b) During the financial year, the Group and the Company acquired property, plant and equipment at aggregate costs of RM3,103,268

(2006: RM64,591,868) and RM521,759 (2006: RM1,252,181) respectively, of which RM596,134 (2006: RM782,725) and RM410,634

(2006: RM615,551) respectively were acquired by means of hire purchase and finance lease arrangements. Net carrying amounts of

property, plant and equipment held under hire purchase and finance lease arrangements are as follows:

Group Company

2007 2006 2007 2006

RM RM RM RM

Factory equipment and machinery 410,540 – – –

Office equipment and computers 442,015 65,560 395,656 –

Motor vehicles 1,144,718 1,793,389 533,284 727,071

1,997,273 1,858,949 928,940 727,071

Details of the terms and conditions of the hire purchase and finance lease arrangements are disclosed in Note 24.

(c) The net carrying amounts of property, plant and equipment pledged as securities for borrowings (Note 23) are as follows:

Group Company

2007 2006 2007 2006

RM RM RM RM

Leasehold land 15,051,021 17,014,996 11,188,274 11,315,859

Buildings 8,997,414 6,829,062 – –

Plant and machinery 38,010,763 47,554,110 – –

Office equipment and computers – 75,010 – –

62,059,198 71,473,178 11,188,274 11,315,859

13. DEVELOPMENT EXPENDITURE

Group

2007 2006

RM RM

Cost

At 1 February 2006/2005 13,303,893 11,603,958

Incurred during the year 1,075,686 2,612,521

Transfers to inventories – (772,430)

Written off (10,811) (140,156)

At 31 January 2007/2006 14,368,768 13,303,893

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Annual Report 2007 99

Notes to the Financial Statements (Cont’d.)

31 January 2007

13. DEVELOPMENT EXPENDITURE (CONT’D.)

Group

2007 2006

RM RM

Accumulated Amortisation

At 1 February 2006/2005 5,474,211 3,633,196

Amortisation 2,065,168 1,841,015

At 31 January 2007/2006 7,539,379 5,474,211

Net Carrying Amounts 6,829,389 7,829,682

Included in development expenditure incurred in the previous financial year was depreciation of plant and equipment RM25,162.

14. INVESTMENT IN SUBSIDIARIES

Company

2007 2006

RM RM

Unquoted shares in Malaysia, at cost 61,439,524 76,758,636

Less: Accumulated impairment losses (32,481,646) (4,840,396)

28,957,878 71,918,240

Details of subsidiaries, all of which are incorporated in Malaysia, are as follows:

Group’s Effective Interest

Name of Company Principal Activities 2007 2006

% %

Held by the Company

Sapura Machining Corporation Sdn. Bhd. Trading of high value added machine products 100 100

for the automotive industry

Asian Automotive Steels Sdn. Bhd. Manufacture and sale of stabiliser bar and cold 100 100

drawn high grade structured steel bars used

in the automotive, electronics and electrical

industries

Sapura Automotive Industries Sdn. Bhd. Manufacture and sale of coil springs, shock absorbers 100 100

and strut assemblies for the automotive industry

Metal Formers Sdn. Bhd. Trading of high precision metal stamping products 100 100

for the automotive and defence industries

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Annual Report 2007100

Notes to the Financial Statements (Cont’d.)

31 January 2007

14. INVESTMENT IN SUBSIDIARIES (CONT’D.)

Group’s Effective Interest

Name of Company Principal Activities 2007 2006

% %

Held by the Company (Cont’d)

Automotive Specialist Centre Sdn. Bhd. Dormant 100 100

Sapura Brake Technologies Sdn. Bhd. Manufacture, supply and sale of brake systems 100 100

for the automotive industry

Sapura Technical Centre Sdn. Bhd. Computer aided design and computer aided 100 100

manufacture of tools, jigs and dies and engineering

services in design, modifications and fabrications

of sub-system/system for the application in

production and testing

Isencorp Sdn. Bhd. Trading and provision of services for automobiles 100 100

Sapura-Schulz Hydroforming Sdn. Bhd. Manufacture and sale of butt-weld fittings for oil 75 75

and gas industries

Subang Properties Sdn. Bhd. Dormant 51.68 51.68

Held by Metal Formers Sdn. Bhd.

Awaltek Sdn. Bhd. Dormant 100 100

Capital reduction of a subsidary

During the financial year, Subang Properties Sdn. Bhd. (“SPSB”) reduced its issued and paid-up share capital from RM36,850,674 to RM184,253

by returning capital by way of cash repayment of RM19,376,747 and contra of amounts due from its shareholders of RM17,289,674. The

capital reduction had no effect on the equity interest of Sapura Industrial Berhad in SPSB.

The capital reduction in SPSB had the following effects on the financial results of the Company

2007

RM

Cash repayment 2,658,906

Contra of inter-company balances 16,289,674

Total proceeds 18,948,580

Less: Cost on investments (15,319,111)

Gain on capital return by a subsidiary 3,629,469

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Annual Report 2007 101

Notes to the Financial Statements (Cont’d.)

31 January 2007

15. INVESTMENTS IN AN ASSOCIATE

Group

2007 2006

RM RM

Unquoted shares in Malaysia, at cost 300,000 300,000

Share of post-acquisition reserves (300,000) (300,000)

– –

Analysed as:

Share of net assets – –

Details of associate, which is incorporated in Malaysia, are as follows:

Group’s Effective Interest

Name of Company Principal Activities 2007 2006

% %

Ciri Tegap Sdn. Bhd.* Manufacture and sale of high precision metal 33 33

stamping products

* Audited by a firm of auditors other than Ernst & Young

16. OTHER INVESTMENTS

Group

2007 2006

RM RM

Unquoted shares in Malaysia, at cost 117,600 117,600

Less : Accumulated impairment losses (117,600) (117,600)

– –

17. INVENTORIES

Group

2007 2006

RM RM

At cost

Materials, component parts and spares 21,507,984 25,371,896

Consumables 2,741,690 3,802,750

Work-in-progress 2,017,624 5,174,090

Finished goods 3,327,847 7,549,497

29,595,145 41,898,233

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Annual Report 2007102

Notes to the Financial Statements (Cont’d.)

31 January 2007

18. AMOUNTS DUE FROM RELATED COMPANIES

Group Company

2007 2006 2007 2006

RM RM RM RM

Amounts due from:

Holding company – 26,521 – –

Related companies 120,420 235,834 – –

Subsidiaries – – 22,307,634 21,223,694

120,420 262,355 22,307,634 21,223,694

Less: Provision for doubtful debts – – (16,560,734) (10,679,718)

120,420 262,355 5,746,900 10,543,976

Related companies refer to companies in the Sapura Holdings Sdn. Bhd. group of companies.

The amounts due from related parties are non-interest bearing and are repayable on demand. All related parties receivable are unsecured

and are to be settled in cash.

Further details on related party transactions are disclosed in Note 32.

19. TRADE AND OTHER RECEIVABLES

Group Company

2007 2006 2007 2006

RM RM RM RM

Trade receivables

Third parties 26,848,032 44,520,094 – –

Related companies 5,809,429 8,516,082 – –

32,657,461 53,036,176 – –

Less: Provision for doubtful debts

Third parties (155,165) (213,981) – –

Related companies (5,709,377) – – –

(5,864,542) (213,981) – –

Trade receivables, net 26,792,919 52,822,195 – –

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Annual Report 2007 103

Notes to the Financial Statements (Cont’d.)

31 January 2007

19. TRADE AND OTHER RECEIVABLES (CONT’D.)

Group Company

2007 2006 2007 2006

RM RM RM RM

Other receivables

Deposits 667,920 919,907 139,985 256,450

Advances 105,506 310,998 21,219 51,079

Prepayments 1,084,587 1,162,319 54,156 16,175

Other receivables 2,293,140 4,464,495 877,554 764,569

Amount due from an associate 230,821 616,354 – –

Tax recoverable 1,085,412 1,613,889 32,203 32,203

5,467,386 9,087,962 1,125,117 1,120,476

Less: Provision for doubtful debts – (151,780) – –

Other receivables, net 5,467,386 8,936,182 1,125,117 1,120,476

32,260,305 61,758,377 1,125,117 1,120,476

(a) Credit risk

Trade receivables are non-interest bearing. The Group’s normal trade credit term ranges from 30 to 90 days. Other credit terms are

assessed and approved on a case-by-case basis. Overdue balances are reviewed regularly by senior management.

As at the balance sheet date, the Group has significant concentration of credit risk in the form of outstanding balances due from 3

groups (2006: 2) of debtors representing 86% (2006: 74%) of the total trade receivables.

20. CASH AND CASH EQUIVALENTS

Group Company

2007 2006 2007 2006

RM RM RM RM

Cash on hand and at banks 3,709,903 5,192,198 79,895 49,389

Deposits with licensed banks 2,800,000 21,390,542 – –

Cash and bank balances 6,509,903 26,582,740 79,895 49,389

Less: Bank overdrafts (Note 23) (6,114,800) (4,992,858) (1,332,726) (2,127,700)

Cash and cash equivalents 395,103 21,589,882 (1,252,831) (2,078,311)

The weighted average effective interest rates and average maturities of deposits with licensed bank at balance sheet date were 3.1% (2006:

2.45%) per annum and 30 days (2006: 30 days).

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Annual Report 2007104

Notes to the Financial Statements (Cont’d.)

31 January 2007

21. EMPLOYEE BENEFITS

(a) Retirement benefit obligations

The Group operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its eligible employees. The Group’s

obligation under the Scheme is determined based on the latest actuarial valuation by an independent valuer dated 8 March 2007.

Under the Scheme, eligible employees are entitled to retirement benefits varying between 46% and 100% of their final salary on

attainment of the retirement age of 55.

The amounts recognised on the balance sheet are determined as follows:

Group Company

2007 2006 2007 2006

RM RM RM RM

Present value of unfunded defined benefit obligations,

representing net liabilities 1,454,071 1,238,680 167,413 146,836

Analysed as:

Non-current 1,454,071 1,238,680 167,413 146,836

The amount recognised in the income statement are as follows:

Group Company

2007 2006 2007 2006

RM RM RM RM

Current service costs 146,130 – 12,499 –

Interest cost 69,261 – 8,078 –

Total, included in employee benefits expense 215,391 – 20,577 –

Movements in the net liability in the current year were as follows:

Group Company

2007 2006 2007 2006

RM RM RM RM

At beginning of year 1,238,680 1,238,680 146,836 146,836

Recognised in income statement 215,391 – 20,577 –

At end of year 1,454,071 1,238,680 167,413 146,836

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Annual Report 2007 105

Notes to the Financial Statements (Cont’d.)

31 January 2007

21. EMPLOYEE BENEFITS (CONT’D.)

(a) Retirement benefit obligations (Cont’d.)

Principal actuarial assumptions used:

2007 2006

% %

Discount rate 5.5 5.5

Expected rate of salary increases

– Executives 5.5 5.5

– Non executives 5.5 5.5

Assumptions regarding future mortality are based on published statistics and mortality tables.

(b) Employee Share Option Scheme (“ESOS”)

The ESOS is governed by the new by-laws approved by the shareholders at an Extraordinary General Meeting held on 12 January

2005.

The salient features of the new Bye-Laws are as follows:

(i) The total number of shares to be issued under the ESOS shall not exceed in aggregate 15% of the issued and paid-up share capital

of the Company at any point of time during the duration of the ESOS.

(ii) The total number of options granted to eligible employees who are executive directors and senior management of the Group shall

not exceed 50% of the total share options available under ESOS.

(iii) The total number of options granted to eligible employees who holds 20% or more of the Company’s issued and paid-up capital,

either singly or collectively through connected person, shall not exceed 10% of the total share options available under ESOS.

(iv) The effective date of the ESOS was 10 May 2001 and shall be in force for a period of five (5) years subject however to an extension

at the discretion of the ESOS Committee for a period of up to five (5) years commencing from the date of expiration of the original

five (5) year period.

(v) Each option granted entitles the eligible employee to subscribe for new ordinary shares of RM1 each in the Company. The price

at which the eligible employee is entitled to subscribe for each share under an option shall be the average of the mean market

quotation of the shares of the Company as shown in the Daily Official List issued by Bursa Malaysia Securities Berhad for the five

market days immediately preceding the offer date.

(vi) The number of ESOS shares relating to the option, the option price, the minimum number of shares to be exercised in a year

and the method of exercise of the option so far as the option remains unexercised may be adjusted following any variation

in the issued share capital of the Company by way of rights issues, bonus issues, consolidation, sub-division or reduction of the

Company’s share capital made by the Company during the option period.

(vii) The ESOS shares under option shall remain unissued until the option is exercised and shall on allotment rank pari passu in all

respects with the existing shares of the Company at the time of allotment save that they will not entitle the holders thereof to

receive any rights or to any dividend or allotment or other distribution declared to the shareholders of the Company as at a date

prior to the allotment of such ESOS shares.

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Annual Report 2007106

Notes to the Financial Statements (Cont’d.)

31 January 2007

21. EMPLOYEE BENEFITS (CONT’D.)

(b) Employee Share Option Scheme (“ESOS”) (Cont’d.)

Information with respect to the number of options under the ESOS at exercise price of RM1.00 per share which is exercisable between

10 May 2001 and 9 May 2011 is as follows:

Number of Share Options

2007 2006

At the beginning/end of year 660,000 660,000

There was no share option granted, exercised or lapsed during the current and the previous financial year.

22. PROVISION

Company

2007 2006

RM RM

Provision for corporate guarantee 9,710,000 –

23. BORROWINGS

Group Company

2007 2006 2007 2006

RM RM RM RM

Short term borrowings

Secured:

Term loans 8,315,618 14,047,213 1,878,684 4,221,531

Unsecured:

Bank overdrafts 6,114,800 4,992,858 1,332,726 2,127,700

Floor stocking facility – 198,598 – –

Bankers’ acceptances 12,546,000 12,124,000 116,000 3,116,000

Revolving credits 19,900,000 14,700,000 9,200,000 7,700,000

Term loan 2,820,000 – 2,820,000 –

Hire purchase payables (Note 24) 625,677 627,982 239,589 157,133

42,006,477 32,643,438 13,708,315 13,100,833

50,322,095 46,690,651 15,586,999 17,322,364

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Annual Report 2007 107

Notes to the Financial Statements (Cont’d.)

31 January 2007

23. BORROWINGS (CONT’D.)

Group Company

2007 2006 2007 2006

RM RM RM RM

Long term borrowings

Secured:

Term loans 23,436,086 41,040,647 650,770 14,747,929

Unsecured:

Term loan 10,710,000 – 10,710,000 –

Hire purchase payables (Note 24) 1,330,310 1,267,716 828,575 511,310

12,040,310 1,267,716 11,538,575 511,310

35,476,396 42,308,363 12,189,345 15,259,239

Total borrowings

Bank overdrafts (Note 20) 6,114,800 4,992,858 1,332,726 2,127,700

Floor stocking facility – 198,598 – –

Revolving credits 19,900,000 14,700,000 9,200,000 7,700,000

Bankers’ acceptances 12,546,000 12,124,000 116,000 3,116,000

Term loans 45,281,704 55,087,860 16,059,454 18,969,460

Hire purchase payables 1,955,987 1,895,698 1,068,164 668,443

85,798,491 88,999,014 27,776,344 32,581,603

Maturity of borrowings (excluding hire purchase

and finance lease):

Within 1 year 47,205,600 46,062,669 15,347,410 17,165,231

More than 1 year and less than 2 years 9,405,343 13,420,892 3,470,771 4,023,334

More than 2 years and less than 5 years 27,231,561 27,619,755 7,889,999 10,724,595

83,842,504 87,103,316 26,708,180 31,913,160

The weighted average effective interest rates per annum at balance sheet date for the borrowings, excluding hire purchase and finance lease

payables, were as follows:

Group Company

2007 2006 2007 2006

% % % %

Bank overdrafts 7.37 7.48 6.91 7.40

Floor stocking facility – 7.25 – –

Revolving credits 8.04 4.68 11.52 4.60

Bankers’ acceptances 5.00 4.71 5.14 3.90

Term loans 6.21 7.02 5.46 8.30

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Annual Report 2007108

Notes to the Financial Statements (Cont’d.)

31 January 2007

23. BORROWINGS (CONT’D.)

The secured revolving credits, bankers’ acceptances and term loans are secured by a first legal charge over the long term leasehold land and

buildings, and certain assets of the Company and certain subsidiaries as disclosed in Note 12(c).

The unsecured borrowings are guaranteed by the Company and a negative pledge over all fixed and other assets of the Company.

24. HIRE PURCHASE AND FINANCE LEASE LIABILITIES

Group Company

2007 2006 2007 2006

RM RM RM RM

Future minimum lease payments:

Not later than 1 year 741,393 727,343 305,939 188,777

Later than 1 year and not later than 2 years 686,794 569,884 302,149 161,518

Later than 2 years and not later than 5 years 786,402 819,102 616,827 391,925

2,214,589 2,116,329 1,224,915 742,220

Less: Finance charges (258,602) (220,631) (156,751) (73,777)

1,955,987 1,895,698 1,068,164 668,443

Analysis of present value of finance lease liabilities:

Not later than 1 year 622,440 627,982 239,589 157,133

Later than 1 year and not later than 2 years 605,490 507,405 252,487 140,432

Later than 2 years and not later than 5 years 728,057 760,311 576,088 370,878

1,955,987 1,895,698 1,068,164 668,443

Analysed as:

Due within 12 months 625,677 627,982 239,589 157,133

Due after 12 months 1,330,310 1,267,716 828,575 511,310

1,955,987 1,895,698 1,068,164 668,443

The Group and the Company have hire purchase contracts for various items of plant and equipment (Note 12(b)). These leases have terms

of renewal but no purchase options and escalation clauses. Renewals are at the option of the specific entity that holds the lease. There are

no restrictions placed upon the Company by entering into these leases and no arrangements have been entered into for contingent rental

payments.

The hire purchase and finance lease liabilities of the Group and of the Company are subject to an effective interest rate ranging from 3.10%

to 10.84% (2006: 3.25% to 10.73%) and 3.25% to 9.76% (2006: 3.25% to 10.69%) per annum respectively.

Other information of financial risks of hire purchase and finance lease liabilities are disclosed in Note 33.

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Annual Report 2007 109

Notes to the Financial Statements (Cont’d.)

31 January 2007

25. DEFERRED TAXATION

Group

2007 2006

RM RM

At the beginning of year 10,922,789 11,189,393

Recognised in the income statement (Note 9) (445,977) (266,604)

At the end of year 10,476,812 10,922,789

Presented after appropriate offsetting as follows:

Deferred tax assets (1,571,055) (848,261)

Deferred tax liabilities 12,047,867 11,771,050

10,476,812 10,922,789

The components and movements of deferred tax assets and liabilities during the financial year prior to offsetting are as follows:

Deferred Tax Assets of the Group:

Unabsorbed

capital

allowances Provisions Total

RM RM RM

At 1 February 2005 (323,553) (300,511) (624,064)

Recognised in the income statement 58,977 (283,174) (224,197)

At 31 January 2006 (264,576) (583,685) (848,261)

Recognised in the income statement (630,584) (92,210) (722,794)

At 31 January 2007 (895,160) (675,895) (1,571,055)

Deferred Tax Liabilities of the Group:

Accelerated Development

Capital Expenditure

Allowances Capitalised Total

RM RM RM

At 1 February 2005 9,687,495 2,125,962 11,813,457

Recognised in the income statement (99,063) 56,656 (42,407)

At 31 January 2006 9,588,432 2,182,618 11,771,050

Recognised in the income statement 670,424 (393,607) 276,817

At 31 January 2007 10,258,856 1,789,011 12,047,867

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Annual Report 2007110

Notes to the Financial Statements (Cont’d.)

31 January 2007

25. DEFERRED TAXATION (CONT’D.)

Deferred tax assets have not been recognised in respect of the following items:

Group Company

2007 2006 2007 2006

RM RM RM RM

Unabsorbed capital allowances 20,709,021 3,382,506 1,710,561 –

Unused tax losses 27,027,908 21,632,780 14,068,033 9,028,356

Other temporary differences 32,250,526 – 13,992,985 –

79,987,455 25,015,286 29,771,579 9,028,356

Deferred tax assets have not been recognised in respect of these items as it is not probable that future taxable profits will be available against

which they may be utilised.

The availability of the unused tax losses and unabsorbed capital allowances for offsetting against future taxable profits of the Company and

its respective subsidiaries are subject to no substantial changes in shareholdings of the Company and its subsidiaries under Section 44(5A)

& (5B) of the Income Tax Act, 1967.

26. AMOUNTS DUE TO RELATED COMPANIES

Group Company

2007 2006 2007 2006

RM RM RM RM

Amounts due to:

Holding company 1,181,138 557,311 1,170,722 545,820

Related companies 4,228,524 3,781,772 2,643,076 2,005,668

Subsidiaries – – 2,635,796 15,703,692

5,409,662 4,339,083 6,449,594 18,255,180

Related companies refer to companies in the Sapura Holdings Sdn. Bhd. group of companies.

The amounts due to related parties are non-interest bearing and are repayable on demand. All related parties receivable are unsecured and

are to be settled in cash.

Further details on related party transactions are disclosed in Note 32.

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Annual Report 2007 111

Notes to the Financial Statements (Cont’d.)

31 January 2007

27. TRADE AND OTHER PAYABLES

Group Company

2007 2006 2007 2006

RM RM RM RM

Trade payables 7,479,673 19,213,439 – –

Other payables

Accruals 3,008,772 4,361,615 1,143,320 1,226,533

Other payables 7,164,414 16,315,360 918,156 47,430

Current tax payable 10,690 292,231 – –

Dividends payable 60,570 37,339 60,570 37,339

10,244,446 21,006,545 2,122,046 1,311,302

17,724,119 40,219,984 2,122,046 1,311,302

Trade payables are non-interest bearing and the normal trade credit terms granted to the Group range from 30 to 60 days (2006: 30 to 60

days).

28. SHARE CAPITAL

Number of Ordinary

Shares of RM1 Each Amount

2007 2006 2007 2006

RM RM

Authorised 100,000,000 100,000,000 100,000,000 100,000,000

Issued and fully paid:

At beginning of year 72,775,737 64,881,000 72,775,737 64,881,000

Issue of shares for cash – 7,894,737 – 7,894,737

At end of year 72,775,737 72,775,737 72,775,737 72,775,737

In the previous financial year, the Company issued 7,894,737 new ordinary shares of RM1 each at an issue price of RM1.27 per share

for cash, as part of the consideration for the acquisition of butt-weld fittings business. The share premium arising therefrom amounted to

RM2,131,578 and this was credited to the share premium account.

Page 114: New Opportunities. Enhancing our core business

Annual Report 2007112

Notes to the Financial Statements (Cont’d.)

31 January 2007

29. PRIOR YEAR ADJUSTMENTS

(a) Deferred Tax Assets

In prior years, the Group recognised deferred tax assets on unabsorbed reinvestment allowances and investment tax allowances. During

the current year, the Group changed its accounting policy and accordingly, deferred tax assets on unabsorbed reinvestment allowances

and investment tax allowances are no longer recognised. This change in accounting policy has been accounted for retrospectively and

the effects are as disclosed in Note 29(c).

(b) Retirement Benefit Obligations

The Group had an actuarial valuation of the Group Retirement Benefit Plan carried out by a qualified actuarial as at 31 January 2006,

(“the valuation date”) and the financial year ended 31 January 2007 in accordance with FRS 119. The effect on the adoption of FRS 119

has been accounted for restrospectively and the effects are as disclosed in the Note 29(c).

(c) Effects of Prior Year Adjustments

Group Company

2007 2006 2007 2006

RM RM RM RM

Effect on retained profits:

At beginning of year, as previously stated 36,893,406 35,514,320 4,294,626 6,437,597

Effect of adopting FRS 3 (Note 2.3(a)) 5,272,339 – – –

42,165,745 35,514,320 4,294,626 6,437,597

Effect of change in accounting policy:

Deferred tax assets (6,063,819) (8,406,086) – –

Retirement benefit obligations (1,238,680) (1,238,680) (146,836) (146,836)

(7,302,499) (9,644,766) (146,836) (146,836)

At beginning of year, as restated 34,863,246 25,869,554 4,147,790 6,290,761

Effect on loss for the year:

(Loss)/profit for the year before change

in accounting policy (56,058,740) 7,201,145 (45,827,820) 3,679,088

Effect of change in accounting policy (215,391) 2,342,267 (20,577) –

(Loss)/profit for the year after change in

accounting policy (56,274,131) 9,543,412 (45,848,397) 3,679,088

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Annual Report 2007 113

Notes to the Financial Statements (Cont’d.)

31 January 2007

29. PRIOR YEAR ADJUSTMENTS (CONT’D.)

(c) Effects of Prior Year Adjustments (Cont’d.)

The following comparative amounts of the Group and of the Company have been restated:

Previously

stated Adjustments Restated

RM RM RM

At 31 January 2006:

Group

Deferred tax liabilities 4,858,970 6,063,819 10,922,789

Retirement benefit obligations – 1,238,680 1,238,680

Company

Retirement benefit obligations – 146,836 146,836

For the year ended 31 January 2006:

Group

Income tax expense 3,307,746 (2,342,267) 965,479

Profit for the year 7,118,064 2,342,267 9,460,331

30. CAPITAL COMMITMENTS

Group Company

2007 2006 2007 2006

RM RM RM RM

Capital expenditure

Property, plant and equipment:

Approved and contracted for 27,000 2,304,587 – –

31. CONTINGENT LIABILITIES

Company

2007 2006

RM RM

Corporate guarantee given to banks for credit facilities

granted to subsidiaries (unsecured) 93,740,777 115,910,623

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Annual Report 2007114

Notes to the Financial Statements (Cont’d.)

31 January 2007

32. SIGNIFICANT RELATED PARTY DISCLOSURES

Group Company

2007 2006 2007 2006

RM RM RM RM

Holding company

Corporate service fees expense 1,153,202 1,336,858 1,153,202 1,336,858

Subsidiaries

Interest expenses – – 2,164,085 417,557

Rental expense – – 591,675 492,684

Interest income – – (37,558) (90,136)

Management fees from subsidiaries – – (5,565,809) (6,901,687)

Dividend income from subsidiaries – – – (21,745,000)

Rental income – – (816,000) (771,200)

Transfer of property, plant and equipment from a subsidiary – – – 120,876

Companies within Sapura Holdings Sdn. Bhd. Group

Computer maintenance

– DataOne Sdn. Bhd. 327,183 785,240 327,183 785,240

Rental expense

– Merapi Sdn. Bhd. – 430,700 – –

– Sapura Resources Berhad 98,991 106,624 98,991 106,624

The directors are of the opinion that all the transactions above have been entered into in the normal course of business and have been

established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties.

33. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and Policies

The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development

of the Group’s businesses whilst managing its interest rate (both fair value and cash flow), foreign currency risk, liquidity risks and

credit risks. The Group operates within clearly defined guidelines approved by the Board and the Group’s policy is not to engage in

speculative transactions.

(b) Interest Rate Risk

The Group’s primary interest rate risk relates to interest-bearing debts as the Group has no long term interest-bearing assets as at

31 January 2007 and 31 January 2006. The investment in financial assets are mainly short term in nature and they are not held for

speculative purposes but have been mostly placed in fixed deposits.

The Group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rate borrowings. The Group actively

reviews its debt portfolio, taking into account the investment holding period and nature of its assets. This strategy allows it to capitalise

on cheaper funding in a low interest rate environment and achieve a certain level of protection against rate hikes.

The information on maturity dates and effective interest rates of financial assets and liabilities are disclosed in their respective notes.

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Annual Report 2007 115

Notes to the Financial Statements (Cont’d.)

31 January 2007

33. FINANCIAL INSTRUMENTS (CONT’D.)

(c) Foreign Exchange Risk

The Group operates locally. However, a proportion of the Company’s purchases of inventories, mechanical parts and machineries,

and certain sales are exposed to various currencies, mainly Japanese Yen, Euro, United States Dollar, Thai Baht and Singapore Dollar.

Foreign currency denominated assets and liabilities together with expected cash flows from highly probable purchases and sales give

rise to foreign exchange exposures.

Where the Group foresees significant exchange rate fluctuations, material foreign exchange exposures in Japanese Yen and Euro are

hedged with derivative financial instruments, namely, forward foreign exchange contracts.

As at 31 January 2007, there was no forward foreign exchange contracts being entered into by the Group.

The net unhedged financial assets and liabilities of the Group that are not denominated in Ringgit Malaysia are as follows:

Group

United States Japanese Euro

Dollar Thai Baht Yen Dollar

RM RM RM RM

At 31 January 2007:

Trade payables 250,298 40,927 610,687 –

Other payables – – 6,625 2,569

Trade receivables 179,128 – – 1,621

Other receivables 106,111 – – 10,937

At 31 January 2006:

Trade payables 9,802,081 137,210 1,153,101 470,369

Other payables 8,642,131 – 120,339 196,881

Trade receivables 24,314 – – –

(d) Liquidity Risk

The Group manages its debt maturity profile, operating cash flows and the availability of funding to ensure that all refinancing,

repayment and funding needs are met. As part of its overall liquidity management, the Group maintains sufficient levels of cash or cash

convertible instruments to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities

of a reasonable level to its overall debt position.

(e) Credit Risk

Credit risks, or the risk of counterparties defaulting, are controlled by the application of credit approvals, limits and monitoring procedures.

Credit risks are minimised and monitored by limiting the Group’s associations to business partners with high creditworthiness. Trade

receivables are monitored on an ongoing basis via Group management reporting procedures.

As at the balance sheet date, the Group has significant concentration of credit risk in the form of outstanding balance due from 3 groups

of debtors representing 86% (2006: 74%) of the total trade receivables.

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Annual Report 2007116

Notes to the Financial Statements (Cont’d.)

31 January 2007

33. FINANCIAL INSTRUMENTS (CONT’D.)

(f) Fair Values

The carrying amounts of financial assets and liabilities of the Group and of the Company at the balance sheet date approximate their

fair values except for the following:

Group Company

Carrying Fair Carrying Fair

Amount Value Amount Value

RM RM RM RM

Financial Assets

At 31 January 2007:

Due from holding company – * – –

Due from related companies 120,420 * – –

Due from an associate 230,821 * – –

Due from subsidiaries – – 22,307,634 *

At 31 January 2006:

Due from holding company 26,521 * – –

Due from related companies 235,834 * – –

Due from an associate 616,354 * – –

Due from subsidairies – – 21,223,694 *

Financial Liabilities

At 31 January 2007:

Due to holding company 1,181,138 * 1,170,722 *

Due to related companies 4,228,524 * 2,643,076 *

Due to subsidiaries – – 2,635,796 *

Hire purchase and finance lease payables 1,955,987 2,078,005 1,068,164 1,152,418

Term loans 45,281,704 42,564,341 16,059,454 14,717,670

At 31 January 2006:

Due to holding company 557,311 * 545,820 *

Due to related companies 3,781,772 * 2,005,668 *

Due to subsidiaries – – 15,703,692 *

Hire purchase and finance lease payables 1,895,698 1,960,905 668,443 692,834

Term loans 55,087,860 52,023,736 18,969,460 17,103,697

* It is not practical to estimate the fair values of amounts due from/(to) related companies due principally to a lack of fixed

repayment terms entered into by the parties involved and without incurring excessive costs. However, the Group and the Company

do not anticipate the carrying amounts recorded at the balance sheet date to be significantly different from the values that would

eventually be received or settled.

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Annual Report 2007 117

Notes to the Financial Statements (Cont’d.)

31 January 2007

33. FINANCIAL INSTRUMENTS (CONT’D.)

(f) Fair Values (Cont’d.)

The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:

(i) Cash and Cash Equivalents, Receivables, Payables and Short Term Borrowings

The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments.

(ii) Borrowings

The fair value of borrowings is estimated by discounting the expected future cash flows using the current interest rates for

liabilities with similar risk profiles.

34. SEGMENT INFORMATION

(a) Business Segments:

The Group is organised into three major business segments:

(i) Manufacturing – the manufacture and supply of products for the automotive, electronics and electrical industries and manufacture

of butt-weld fittings for oil and gas industries

(ii) Investment holding – the holding of investments and provision of management services to subsidiaries;

(iii) Services – sales and after sales services of automobiles; and

(iv) Others – providing computer aided design and manufacture of sub-systems/systems for applications in production and testing

and real property.

(b) Geographical Segments:

The Group’s operations are carried out solely in Malaysia.

(c) Allocation basis

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a

reasonable basis. Unallocated items comprise mainly corporate assets, liabilities and expenses. Segment revenue, expenses and results

include transfers between business segments. These transfers are eliminated on consolidation.

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Annual Report 2007118

Notes to the Financial Statements (Cont’d.)

31 January 2007

34. SEGMENT INFORMATION (CONT’D.)

Business Segments

Investment

Manufacturing Holding Services Others Eliminations Consolidated

RM RM RM RM RM RM

31 January 2007

Revenue

External 166,001,481 – 522,211 – – 166,523,692

Inter-segment 6,502,291 5,565,809 60,929 – (12,129,029) –

Total revenue 172,503,772 5,565,809 583,140 – (12,129,029) 166,523,692

Result

Segment results,

representing profit/

(loss) from operations (63,244,395) (43,685,298) (1,569,610) 269,427 46,516,133 (61,713,743)

Finance costs (6,156,865)

Taxation (535,581)

Net loss for the year (68,406,189)

Assets

Consolidated segment assets 166,666,458 75,861,866 213,997 1,336,374 (72,750,317) 171,328,378

Liabilities

Consolidated segment

liabilities 145,776,675 46,225,397 14,955,381 6,434,333 (92,528,631) 120,863,155

Other Information

Capital expenditure 2,548,454 521,759 – 33,055 – 3,103,268

Depreciation 15,014,982 660,256 121,110 64,634 – 15,860,982

Amortisation 2,065,168 – – – – 2,065,168

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Annual Report 2007 119

Notes to the Financial Statements (Cont’d.)

31 January 2007

34. SEGMENT INFORMATION (CONT’D.)

Business Segments (Cont’d.)

Investment

Manufacturing Holding Services Others Eliminations Consolidated

RM RM RM RM RM RM

31 January 2006

Revenue

External 161,113,613 – 11,400,134 893,979 – 173,407,726

Inter-segment 16,625,417 28,648,158 – 1,845,000 (47,118,575) –

Total revenue 177,739,030 28,648,158 11,400,134 2,738,979 (47,118,575) 173,407,726

Result

Segment results,

representing profit/

(loss) from operations 18,855,369 5,710,314 (2,927,503) 923,159 (6,908,302) 15,653,037

Finance costs (4,927,227)

Share of results of an associate (300,000)

Taxation (965,479)

Net profit after taxation 9,460,331

Assets

Consolidated segment assets 265,348,684 131,418,574 2,825,940 38,123,148 (151,768,756) 285,947,590

Liabilities

Consolidated segment

liabilities 158,281,389 52,148,085 9,602,172 3,715,178 (78,027,274) 145,719,550

Other Information

Capital expenditure 62,835,572 1,675,581 79,360 1,355 – 64,591,868

Depreciation 13,382,025 557,156 413,898 62,777 (25,804) 14,390,052

Amortisation 1,841,015 – – – – 1,841,015

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Penyata Kewangan

122 Laporan Para Pengarah

127 Penyata Para Pengarah

127 Akuan Berkanun

128 Laporan Juruaudit

129 Penyata Pendapatan

130 Lembaran Imbangan

131 Penyata Perubahan dalam Ekuiti yang Disatukan

132 Penyata Perubahan dalam Ekuiti Syarikat

133 Penyata Aliran Tunai yang Disatukan

135 Penyata Aliran Tunai Syarikat

136 Nota-nota kepada Penyata Kewangan

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Laporan Tahunan 2007122

Laporan Para Pengarah

Para pengarah dengan sukacitanya membentangkan laporan mereka berserta dengan penyata kewangan Kumpulan dan Syarikat yang telah

diaudit bagi tahun kewangan berakhir 31 Januari 2007.

AKTIVITI-AKTIVITI UTAMA

Kegiatan utama Syarikat adalah pemegangan pelaburan dan penyediaan perkhidmatan pengurusan kepada anak-anak syarikat.

Kegiatan utama anak-anak syarikat adalah sepertimana yang dinyatakan dalam Nota 14 kepada Penyata Kewangan.

Tiada sebarang perubahan penting dalam kegiatan-kegiatan ini di sepanjang tahun kewangan, kecuali pemberhentian penjualan dan aktiviti-

aktiviti servis kereta anak syarikat, Isencorp Sdn. Bhd. pada 3 Mei 2006.

KEPUTUSAN

Kumpulan Syarikat

RM RM

Kerugian bersih bagi tahun (68,406,189) (45,848,397)

Kerugian bagi tahun diagihkan kepada:

Pemegang ekuiti Syarikat (56,274,131) (45,848,397)

Kepentingan Minoriti (12,132,058) –

(68,406,189) (45,848,397)

Tiada sebarang pindahan yang ketara kepada atau dari rizab-rizab atau peruntukan-peruntukan di sepanjang tahun kewangan selain daripada

yang didedahkan dalam penyata-penyata kewangan.

Pada pendapat para pengarah, hasil daripada operasi-operasi Kumpulan dan Syarikat sepanjang tahun kewangan tidak dipengaruhi oleh sebarang

butiran, urusniaga atau peristiwa yang bersifat penting dan luar biasa selain daripada:

(a) kesan-kesan rugi rosotnilai atas hartanah, loji dan peralatan Kumpulan sebanyak RM36,923,937 seperti yang dijelaskan lebih lanjut di Nota

12(a) kepada penyata kewangan;

(b) kesan penurunan nilai inventori Kumpulan sebanyak RM8,937,320;

(c) kesan-kesan rugi rosotnilai ke atas pelaburan Syarikat dalam Sapura-Schulz Hydroforming Sdn. Bhd. (“SSH”) sebanyak RM27,641,250;

(d) kesan-kesan peruntukan jaminan korporat di dalam Syarikat sebanyak RM9,710,000; dan

(e) kesan-kesan peruntukan terhadap amaun terhutang oleh SSH di dalam Syarikat sebanyak RM5,881,016.

DIVIDEN

Amaun dividen yang telah dibayar oleh Syarikat sejak 31 Januari 2006 adalah seperti berikut:

RM

Dividen akhir yang dikecualikan cukai sebanyak 5% ke atas 72,775,737 saham biasa, diisytiharkan pada 28 Mac 2006 3,638,787

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Laporan Tahunan 2007 123

Laporan Para Pengarah (Samb.)

PARA PENGARAH

Nama-nama para pengarah Syarikat yang berkhidmat sejak tarikh laporan terakhir dan pada tarikh laporan ini adalah:

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir

Datuk Shahril bin Shamsuddin

Dato’ Azlan bin Hashim

Dato’ Mazlin bin Md Junid

Shahriman bin Shamsuddin

Ir. Md. Shah bin Hussin

Shah Hakim bin Zain

Azmi bin Hashim (pengarah gantian kepada Dato’ Azlan bin Hashim)

Datuk Kisai bin Rahmat (dilantik pada 18 Oktober 2006)

Dato’ Dr. Ismail bin Saad (meletak jawatan pada 19 Julai 2006)

MANFAAT PARA PENGARAH

Pada akhir tahun kewangan, mahupun pada bila-bila masa sepanjang tahun, tidak wujud sebarang rancangan yang dibuat oleh Syarikat yang

membolehkan pengarah-pengarah mendapat manfaat melalui perolehan saham atau debentur syarikat atau sebarang badan korporat, selain

daripada opsyen saham yang ditawarkan di bawah Skim Opsyen Saham Pekerja (“ESOS”).

Sejak akhir tahun kewangan yang lepas, tiada pengarah telah menerima atau berhak menerima manfaat (selain daripada manfaat yang telah

dimasukkan dalam jumlah ganjaran yang diterima atau akan diterima oleh para pengarah atau gaji tetap seorang kakitangan sepenuh masa

Syarikat seperti mana yang dinyatakan di Nota 8 kepada penyata kewangan), melalui kontrak yang dibuat oleh Syarikat atau syarikat berkaitan

dengan pengarah atau dengan firma di mana para pengarah adalah ahli, atau dengan syarikat di mana mereka mempunyai kepentingan kewangan

yang nyata, selain daripada yang dinyatakan di dalam Nota 32 kepada penyata kewangan.

KEPENTINGAN PARA PENGARAH

Menurut daftar pegangan saham para pengarah, kepentingan para pengarah yang memegang jawatan pada akhir tahun kewangan di dalam

saham dan opsyen saham Syarikat dan syarikat-syarikat yang berkaitan di sepanjang tahun kewangan adalah seperti berikut:

Bilangan Saham Biasa Bernilai RM1.00 Sesaham

* Pindahan

1 Februari (kepada)/ 31 Januari

2006 daripada Dijual 2007

Syarikat

Sapura Industrial Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 2,235,000 (573,750) – 1,661,250

Datuk Shahril bin Shamsuddin 1,140,000 286,875 – 1,426,875

Shahriman bin Shamsuddin 376,300 286,875 – 663,175

Ir. Md. Shah bin Hussin (termasuk saham-saham

yang dipegang oleh syarikat bersekutu) 157,998 – (67,500) 90,498

Dato’ Azlan bin Hashim 15,000 – – 15,000

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Laporan Tahunan 2007124

Laporan Para Pengarah (Samb.)

KEPENTINGAN PARA PENGARAH (SAMB.)

Bilangan Saham Biasa Bernilai RM1 Sesaham

* Pindahan

1 Februari (kepada)/ 31 Januari

2006 daripada Dijual 2007

Syarikat Induk

Sapura Holdings Sdn. Bhd.

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 17,865,000 (6,699,374) – 11,165,626

Datuk Shahril bin Shamsuddin 26,797,500 3,349,687 – 30,147,187

Shahriman bin Shamsuddin 26,797,500 3,349,687 – 30,147,187

Syarikat Berkaitan

Sapura Technology Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 1,435,999 (77,250) – 1,358,749

Datuk Shahril bin Shamsuddin 23,333 38,625 – 61,958

Shahriman bin Shamsuddin – 38,625 – 38,625

Syarikat Berkaitan

Sapura Resources Berhad

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 222,000 (166,500) – 55,500

Datuk Shahril bin Shamsuddin – 83,250 – 83,250

Shahriman bin Shamsuddin – 83,250 – 83,250

Bilangan Saham Biasa Bernilai RM0.20 Sesaham

1 Februari 31 Januari

2006 Dibeli Dijual 2007

Syarikat Berkaitan

SapuraCrest Petroleum Berhad

Shahriman bin Shamsuddin 450,000 – – 450,000

Bilangan Opsyen Ke Atas Saham Biasa Bernilai RM0.20 Sesaham

1 Februari 31 Januari

2006 Ditawarkan Dilaksanakan 2007

Syarikat Berkaitan

SapuraCrest Petroleum Berhad

Datuk Shahril bin Shamsuddin 2,800,000 – – 2,800,000

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Laporan Tahunan 2007 125

Laporan Para Pengarah (Samb.)

KEPENTINGAN PARA PENGARAH (SAMB.)

Bilangan Opsyen Ke Atas Saham Biasa Bernilai RM1 Sesaham

1 Februari 31 Januari

2006 Ditawarkan Dilaksanakan 2007

Syarikat Berkaitan

Sapura Resources Berhad

Datuk Shahril bin Shamsuddin 1,350,000 – – 1,350,000

* Pindahan saham yang dipegang oleh Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir sebagai pentadbir Harta Pusaka Allahyarhamah Puan

Sri Datin Seri Siti Sapura binti Husin (“Harta Pusaka”) kepada pihak penerima Harta Pusaka tersebut.

Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir, Datuk Shahril bin Shamsuddin dan Shahriman bin Shamsuddin disebabkan kepentingan-

kepentingan mereka di dalam saham-saham syarikat induk adalah juga dianggap berkepentingan di dalam semua saham anak-anak syarikat

kepada syarikat induk setakat mana syarikat induk tersebut mempunyai kepentingan.

Tiada pengarah-pengarah lain yang memegang jawatan pengarah pada akhir tahun kewangan mempunyai sebarang kepentingan di dalam

Syarikat ataupun syarikat-syarikat berkaitan di sepanjang tahun kewangan.

SKIM OPSYEN SAHAM PEKERJA

Skim Opsyen Saham Pekerja (“ESOS”) Syarikat adalah dikawal oleh undang-undang kecil yang telah diluluskan oleh para pemegang saham pada

Mesyuarat Agung Luarbiasa yang diadakan pada 12 Januari 2005.

Ciri-ciri utama dan terma-terma lain ESOS adalah seperti yang dinyatakan di Nota 21 kepada penyata kewangan.

LAIN-LAIN MAKLUMAT BERKANUN

(a) Sebelum penyata pendapatan dan lembaran imbangan Kumpulan dan Syarikat disediakan, para pengarah telah mengambil tindakan yang

sewajarnya:

(i) untuk memastikan bahawa tindakan yang sesuai telah diambil berkaitan dengan penghapuskiraan hutang lapuk dan dalam membuat

peruntukan bagi hutang ragu dan telah berpuashati bahawa semua hutang lapuk telah dihapuskira dan peruntukan yang memadai

telah dibuat bagi hutang ragu; dan

(ii) untuk memastikan bahawa aset semasa yang mungkin tidak dapat direalisasi nilainya seperti yang ditunjukkan di dalam rekod-rekod

perakaunan dalam urusan biasa perniagaan telah dikurangkan nilainya kepada jumlah yang dijangkakan boleh direalisasi.

(b) Pada tarikh laporan ini, para pengarah tidak mengetahui tentang sebarang keadaan yang akan menjadikan:

(i) ia adalah perlu untuk menghapuskira sebarang hutang lapuk atau amaun peruntukan hutang ragu di dalam penyata kewangan

Kumpulan dan Syarikat tidak memadai secara ketara; dan

(ii) nilai berkaitan aset semasa di dalam penyata kewangan Kumpulan dan Syarikat mengelirukan.

(c) Pada tarikh laporan ini, para pengarah tidak mengetahui tentang sebarang keadaan yang timbul yang boleh menyebabkan kepatuhan

kepada kaedah penilaian yang wujud bagi penilaian aset atau liabiliti Kumpulan dan Syarikat mengelirukan atau tidak sesuai.

(d) Pada tarikh laporan ini, para pengarah tidak mengetahui tentang sebarang keadaan yang tidak dinyatakan dalam laporan ini atau

penyata kewangan Kumpulan atau Syarikat yang akan menyebabkan mana-mana jumlah yang dinyatakan di dalam penyata kewangan

mengelirukan.

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Laporan Tahunan 2007126

LAIN-LAIN MAKLUMAT BERKANUN (SAMB.)

(e) Pada tarikh laporan ini, tidak wujud:

(i) sebarang cagaran ke atas aset Kumpulan atau Syarikat yang timbul sejak akhir tahun kewangan yang menjamin liabiliti pihak lain;

atau

(ii) sebarang liabiliti luarjangka Kumpulan atau Syarikat yang timbul sejak akhir tahun kewangan.

(f) Para Pengarah berpendapat bahawa:

(i) tidak ada liabiliti luarjangka atau lain-lain liabiliti Syarikat yang akan berkuatkuasa atau berkemungkinan sebegitu dalam tempoh dua

belas bulan selepas akhir tahun kewangan yang akan atau mungkin memberi kesan terhadap keupayaan Kumpulan atau Syarikat untuk

menunaikan tanggungjawabnya apabila tiba masanya; dan

(ii) di dalam jangkamasa di antara akhir tahun kewangan dan tarikh laporan ini, tidak timbul sebarang butiran, urusniaga atau peristiwa

penting dan luarbiasa, yang akan memberi kesan penting ke atas hasil operasi Kumpulan dan Syarikat bagi tahun kewangan di mana

laporan ini dibuat.

JURUAUDIT

Juruaudit, Ernst & Young, telah menyatakan kesanggupan untuk meneruskan khidmat mereka.

Ditandatangani bagi pihak Lembaga Pengarah menurut resolusi para pengarah bertarikh 22 Mei 2007.

Dato’ Mazlin bin Md Junid Ir. Md. Shah bin Hussin

Laporan Para Pengarah (Samb.)

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Laporan Tahunan 2007 127

Kami, Dato’ Mazlin bin Md Junid dan Ir. Md. Shah bin Hussin, dua daripada para pengarah Sapura Industrial Berhad, dengan ini menyatakan bahawa

pada pendapat para pengarah, penyata kewangan yang dibentangkan dari mukasurat 129 hingga 181 telah disediakan dengan wajarnya menurut

peruntukan Akta Syarikat, 1965 dan Piawaian Pelaporan Kewangan yang berkenaan di Malaysia untuk menunjukkan keadaan yang benar dan

saksama tentang kedudukan kewangan Kumpulan dan Syarikat pada 31 Januari 2007 dan hasil operasi serta aliran tunai bagi Kumpulan dan

Syarikat bagi tahun berakhir pada tarikh tersebut.

Ditandatangani bagi pihak Lembaga Pengarah menurut resolusi para pengarah bertarikh 22 Mei 2007.

Dato’ Mazlin bin Md Junid Ir. Md. Shah bin Hussin

Saya, Chua Chooi Hong, sebagai pegawai utama yang bertanggungjawab ke atas pengurusan kewangan Sapura Industrial Berhad, dengan

sesungguhnya dan seikhlasnya mengaku bahawa penyata kewangan yang dibentangkan pada mukasurat 129 hingga 181 pada pendapat saya

adalah betul dan saya membuat pengakuan ini dengan sesungguhnya mempercayai bahawa ianya benar dan menurut peruntukan Akta Akuan

Berkanun, 1960.

Ditandatangani dan diakui )

sesungguhnya oleh Chua Chooi Hong )

di Kajang, Selangor Darul Ehsan ) Chua Chooi Hong

pada 22 Mei 2007. )

Di hadapan saya,

Kajan Singh

Pesuruhjaya Sumpah

Penyata Para Pengarahmenurut Seksyen 169(15) Akta Syarikat, 1965

menurut Seksyen 169(16) Akta Syarikat, 1965

Akuan Berkanun

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Laporan Tahunan 2007128

Laporan Juruaudit kepada Pemegang-Pemegang Saham Sapura Industrial Berhad (Diperbadankan di Malaysia)

Kami telah mengaudit penyata kewangan yang dibentangkan pada mukasurat 129 hingga 181. Penyata kewangan tersebut adalah tanggungjawab

para pengarah Syarikat.

Tanggungjawab kami adalah untuk menyatakan pendapat bebas tentang penyata kewangan tersebut, berdasarkan audit kami, dan melaporkan

pendapat kami, sebagai satu badan, menurut Seksyen 174, Akta Syarikat, 1965 dan bukan untuk tujuan lain. Kami tidak bertanggungjawab kepada

orang perseorangan yang lain ke atas kandungan laporan ini.

Kami telah menjalankan audit kami mengikut Piawaian Pengauditan yang diluluskan di Malaysia. Piawaian-piawaian tersebut memerlukan kami

merancang dan melaksanakan audit untuk memperolehi keyakinan yang munasabah samada penyata kewangan tersebut bebas dari salahnyata

yang ketara. Audit meliputi pemeriksaan secara ujian, bukti yang menyokong jumlah dan pendedahan di dalam penyata kewangan. Audit juga

meliputi penilaian terhadap pembentangan penyata kewangan secara keseluruhannya. Kami percaya bahawa audit kami memberi asas yang

munasabah untuk pendapat kami.

Pada pendapat kami:

(a) penyata kewangan telah disediakan dengan wajarnya menurut peruntukan Akta Syarikat,1965 dan Piawaian Pelaporan Kewangan yang

berkenaan di Malaysia dan memberi gambaran yang benar dan saksama tentang:

(i) kedudukan kewangan Kumpulan dan Syarikat pada 31 Januari 2007 dan keputusan serta aliran tunai Kumpulan dan Syarikat bagi tahun

berakhir pada tarikh tersebut; dan

(ii) perkara-perkara yang diperlukan oleh Seksyen 169, Akta Syarikat, 1965 untuk diambilkira dalam penyata kewangan; dan

(b) rekod perakaunan dan lain-lain rekod dan daftar-daftar yang dikehendaki oleh Akta untuk disimpan oleh Syarikat dan anak-anak syarikat

telah disimpan dengan wajar menurut peruntukan Akta tersebut.

Kami berpuas hati bahawa penyata kewangan anak-anak syarikat yang telah disatukan dengan penyata kewangan Syarikat adalah dalam bentuk

dan kandungan yang sesuai dan wajar bagi tujuan penyediaan penyata kewangan disatukan dan kami telah menerima maklumat dan penjelasan

yang memuaskan sebagaimana yang dikehendaki oleh kami bagi tujuan tersebut.

Laporan juruaudit bagi penyata kewangan anak-anak syarikat tidak tertakluk kepada sebarang syarat dan tidak mengandungi pandangan yang

perlu dibuat di bawah Seksyen 174(3) Akta berkenaan.

Ernst & Young Habibah bte Abdul

No. AF 0039 No. 1210/05/08(J)

Akauntan Bertauliah Rakan Kongsi

Kuala Lumpur, Malaysia

22 Mei 2007

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Laporan Tahunan 2007 129

Penyata Pendapatanbagi tahun berakhir 31 Januari 2007

Kumpulan Syarikat

2007 2006 2007 2006

Nota RM RM RM RM

Pendapatan 3 166,523,692 173,407,726 5,565,809 28,648,158

Kos jualan (147,743,776) (134,604,568) – –

Untung kasar 18,779,916 38,803,158 5,565,809 28,648,158

Lain-lain pendapatan 4 2,975,495 6,727,488 4,678,661 926,566

Perbelanjaan pentadbiran (82,104,275) (28,219,310) (53,419,353) (23,314,238)

Perbelanjaan pemasaran dan jualan (1,071,857) (1,413,269) (251,615) (488,642)

Lain-lain perbelanjaan (293,022) (245,030) (258,800) (61,530)

(Kerugian)/keuntungan daripada operasi (61,713,743) 15,653,037 (43,685,298) 5,710,314

Kos kewangan 5 (6,156,865) (4,927,227) (2,163,099) (2,031,226)

Bahagian rugi dalam syarikat bersekutu – (300,000) – –

(Kerugian)/keuntungan sebelum cukai 6 (67,870,608) 10,425,810 (45,848,397) 3,679,088

Belanja cukai pendapatan 9 (535,581) (965,479) – –

(Kerugian)/keuntungan bagi tahun (68,406,189) 9,460,331 (45,848,397) 3,679,088

Diagihkan kepada:

Para pemegang ekuiti Syarikat (56,274,131) 9,543,412 (45,848,397) 3,679,088

Kepentingan minoriti (12,132,058) (83,081) – –

(68,406,189) 9,460,331 (45,848,397) 3,679,088

(Kerugian)/perolehan sesaham diagihkan

kepada pemegang ekuiti Syarikat (sen)

Asas 10 (77.33) 13.61

Dicairkan 10 (77.33) 13.61

Nota-nota yang dilampirkan adalah sebahagian daripada penyata kewangan.

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Laporan Tahunan 2007130

Lembaran Imbanganpada 31 Januari 2007

Kumpulan Syarikat

2007 2006 2007 2006 Nota RM RM RM RM

ASET

Aset bukan semasa

Hartanah, loji dan peralatan 12 96,013,216 147,616,203 18,362,076 19,086,493 Perbelanjaan pembangunan 13 6,829,389 7,829,682 – –Pelaburan dalam anak-anak syarikat 14 – – 28,957,878 71,918,240 Pelaburan dalam syarikat bersekutu 15 – – – –Lain-lain pelaburan 16 – – – –

102,842,605 155,445,885 47,319,954 91,004,733

Aset semasa

Inventori 17 29,595,145 41,898,233 – –Amaun terhutang oleh syarikat-syarikat berkaitan 18 120,420 262,355 5,746,900 10,543,976 Penghutang perniagaan dan lain-lain penghutang 19 32,260,305 61,758,377 1,125,117 1,120,476 Dividen belum terima – – 21,590,000 28,700,000 Tunai dan baki di bank 20 6,509,903 26,582,740 79,895 49,389 68,485,773 130,501,705 28,541,912 40,413,841

JUMLAH ASET 171,328,378 285,947,590 75,861,866 131,418,574 EKUITI DAN LIABILITI

Ekuiti diagihkan kepada pemegang ekuiti SyarikatModal saham 28 72,775,737 72,775,737 72,775,737 72,775,737 Premium saham 2,200,126 2,200,126 2,200,126 2,200,126 Muhibbah negatif – 5,272,339 – –(Kerugian)/keuntungan terkumpul (25,049,672) 29,590,907 (45,339,394) 4,147,790

49,926,191 109,839,109 29,636,469 79,123,653 Kepentingan minoriti 539,032 30,388,931 – –

Jumlah ekuiti 50,465,223 140,228,040 29,636,469 79,123,653

Liabiliti bukan semasa

Obligasi faedah persaraan 21(a) 1,454,071 1,238,680 167,413 146,836 Peruntukan 22 – – 9,710,000 –Pinjaman 23 35,476,396 42,308,363 12,189,345 15,259,239 Cukai tertunda 25 10,476,812 10,922,789 – –

47,407,279 54,469,832 22,066,758 15,406,075

Liabiliti semasa

Amaun terhutang kepada syarikat-syarikat berkaitan 26 5,409,662 4,339,083 6,449,594 18,255,180 Pemiutang perniagaan dan lain-lain pemiutang 27 17,724,119 40,219,984 2,122,046 1,311,302 Pinjaman 23 50,322,095 46,690,651 15,586,999 17,322,364

73,455,876 91,249,718 24,158,639 36,888,846

Jumlah liabiliti 120,863,155 145,719,550 46,225,397 52,294,921

JUMLAH EKUITI DAN LIABILITI 171,328,378 285,947,590 75,861,866 131,418,574

Nota-nota yang dilampirkan adalah sebahagian daripada penyata kewangan.

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Laporan Tahunan 2007 131

Penyata Perubahan dalam Ekuiti yang Disatukanbagi tahun berakhir 31 Januari 2007

Berpunca kepada Pemegang Ekuiti Syarikat

Tidak boleh Boleh diagihkan diagihkan

Modal Premium Muhibbah Keuntungan Kepentingan Jumlah Nota Saham Saham Negatif Terkumpul Jumlah Minoriti Ekuiti RM RM RM RM RM RM RM

Pada 1 Februari 2005

Seperti yang dinyatakan sebelum ini 64,881,000 68,548 2,575,451 35,514,320 103,039,319 17,799,393 120,838,712 Pelarasan tahun terdahulu 29 – – – (9,644,766) (9,644,766) – (9,644,766)

Pada 1 Februari 2005 (dinyatakan semula) 64,881,000 68,548 2,575,451 25,869,554 93,394,553 17,799,393 111,193,946 Terbitan saham biasa dalam anak syarikat – – 2,696,888 – 2,696,888 12,672,619 15,369,507 Terbitan saham untuk tunai 28 7,894,737 2,131,578 – – 10,026,315 – 10,026,315 Keuntungan pada tahun, yang mewakili jumlah pendapatan dan perbelanjaan diiktiraf pada tahun semasa – – – 9,543,412 9,543,412 (83,081) 9,460,331 Dividen 11 – – – (5,822,059) (5,822,059) – (5,822,059)

Pada 31 Januari 2006 (dinyatakan semula) 72,775,737 2,200,126 5,272,339 29,590,907 109,839,109 30,388,931 140,228,040

Berpunca kepada Pemegang Ekuiti Syarikat

Tidak boleh Boleh diagihkan diagihkan

Keuntungan/ Modal Premium Muhibbah (Kerugian Kepentingan Jumlah Nota Saham Saham Negatif Terkumpul) Jumlah Minoriti Ekuiti RM RM RM RM RM RM RM

Pada 1 Februari 2006

Seperti yang dinyatakan sebelum ini 72,775,737 2,200,126 5,272,339 36,893,406 117,141,608 30,388,931 147,530,539 Kesan menerima pakai FRS 3 2.3(a) – – (5,272,339) 5,272,339 – – –Pelarasan tahun terdahulu 29 – – – (7,302,499) (7,302,499) – (7,302,499)

Pada 1 Februari 2006 (dinyatakan semula) 72,775,737 2,200,126 – 34,863,246 109,839,109 30,388,931 140,228,040 Kerugian pada tahun, yang mewakili jumlah pendapatan dan perbelanjaan diiktiraf pada tahun semasa – – – (56,274,131) (56,274,131) (12,132,058) (68,406,189)Pengurangan modal – – – – – (17,717,841) (17,717,841)Dividen 11 – – – (3,638,787) (3,638,787) – (3,638,787)

Pada 31 Januari 2007 72,775,737 2,200,126 – (25,049,672) 49,926,191 539,032 50,465,223

Nota-nota yang dilampirkan adalah sebahagian daripada penyata kewangan.

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Laporan Tahunan 2007132

Tidak Boleh

boleh diagihkan

diagihkan Keuntungan/

Modal Premium (Kerugian

Nota Saham Saham Terkumpul) Jumlah

RM RM RM RM

Pada 1 Februari 2005

Seperti yang dinyatakan sebelum ini 64,881,000 68,548 6,437,597 71,387,145

Pelarasan tahun terdahulu 29 – – (146,836) (146,836)

Pada 1 Februari 2005 (dinyatakan semula) 64,881,000 68,548 6,290,761 71,240,309

Terbitan saham untuk tunai 28 7,894,737 2,131,578 – 10,026,315

Keuntungan pada tahun, yang mewakili jumlah

pendapatan dan perbelanjaan diiktiraf

pada tahun semasa – – 3,679,088 3,679,088

Dividen 11 – – (5,822,059) (5,822,059)

Pada 31 Januari 2006 (dinyatakan semula) 72,775,737 2,200,126 4,147,790 79,123,653

Pada 1 Februari 2006

Seperti yang dinyatakan sebelum ini 72,775,737 2,200,126 4,294,626 79,270,489

Pelarasan tunai terdahulu 29 – – (146,836) (146,836)

Pada 1 Februari 2006 (dinyatakan semula) 72,775,737 2,200,126 4,147,790 79,123,653

Kerugian pada tahun, yang mewakili jumlah

pendapatan dan perbelanjaan diiktiraf

pada tahun semasa – – (45,848,397) (45,848,397)

Dividen 11 – – (3,638,787) (3,638,787)

Pada 31 Januari 2007 72,775,737 2,200,126 (45,339,394) 29,636,469

Nota-nota yang dilampirkan adalah sebahagian daripada penyata kewangan.

Penyata Perubahan dalam Ekuiti Syarikatbagi tahun berakhir 31 Januari 2007

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Laporan Tahunan 2007 133

2007 2006 RM RM

ALIRAN TUNAI DARIPADA KEGIATAN OPERASI

(Kerugian)/keuntungan sebelum cukai (67,870,608) 10,425,810

Pelarasan bagi:

Susutnilai 15,860,982 14,390,052

Hartanah, loji dan peralatan dihapuskira 1,566,893 455,972

Pelunasan perbelanjaan pembangunan 2,065,168 1,841,015

Gantirugi ketidakhadiran terkumpul jangka pendek 7,764 57,409

Pendapatan faedah (361,922) (422,173)

Peruntukan bagi hutang ragu 5,498,781 397,197

Kerugian tukaran wang asing belum direalisasikan 135,055 –

Tambahan liabiliti untuk pelan faedah yang ditentukan 215,391 –

Kerugian/(keuntungan) bersih daripada jualan hartanah, loji dan peralatan 16,021 (110,469)

Rosotnilai hartanah, loji dan peralatan 36,923,937 –

Inventori dihapuskira 8,937,320 –

Perbelanjaan faedah 6,156,865 4,927,227

Perbelanjaan pembangunan dihapuskira 10,811 140,156

Bahagian rugi syarikat bersekutu – 300,000

Keuntungan operasi sebelum perubahan modal kerja 9,162,458 32,402,196

Kurangan/(tambahan) belum terima 23,085,281 (17,251,885)

Kurangan/(tambahan) inventori 3,365,768 (17,371,311)

(Kurangan)/tambahan belum bayar (22,380,375) 9,721,025

Perubahan bersih dalam baki antara syarikat-syarikat berkaitan 598,047 (946,603)

Tunai dihasilkan daripada kegiatan operasi 13,831,179 6,553,422

Faedah dibayar (6,156,865) (4,927,227)

Cukai (dibayar)/dikembalikan (734,621) 3,456

Tunai bersih dihasilkan daripada kegiatan operasi 6,939,693 1,629,651

Penyata Aliran Tunai yang Disatukanbagi tahun berakhir 31 Januari 2007

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Laporan Tahunan 2007134

2007 2006 RM RM

ALIRAN TUNAI DARIPADA KEGIATAN PELABURAN

Pembelian hartanah, loji dan peralatan (2,507,134) (63,809,143)

Faedah diterima 361,922 422,173

Perolehan daripada penjualan hartanah, loji dan peralatan 338,422 345,586

Perolehan daripada penerbitan saham biasa dalam anak syarikat kepada kepentingan minoriti – 26,000,000

Perolehan daripada penerbitan saham biasa – 10,026,315

Pembayaran balik modal oleh anak syarikat kepada pemegang saham minoriti (16,717,841) –

Pembayaran premium dalam pengambilalihan perniagaan ‘butt-weld fittings’ – (6,989,243)

Perbelanjaan pembangunan (1,075,686) (2,612,521)

Tunai bersih digunakan dalam kegiatan pelaburan (19,600,317) (36,616,833)

ALIRAN TUNAI DARIPADA KEGIATAN PEMBIAYAAN

(Bayaran untuk)/tunai bersih daripada pinjaman berjangka (9,806,156) 25,992,359

Tunai bersih daripada/(bayaran untuk) pinjaman jangka pendek 5,423,402 (1,679,881)

Pembayaran untuk sewabeli dan pembiayaan pajakan (535,845) (1,089,328)

Dividen dibayar (3,615,556) (5,784,720)

Tunai bersih (digunakan dalam)/dihasilkan daripada kegiatan pembiayaan (8,534,155) 17,438,430

PENGURANGAN BERSIH DALAM TUNAI DAN TUNAI SETARA (21,194,779) (17,548,752)

TUNAI DAN TUNAI SETARA PADA AWAL TAHUN 21,589,882 39,138,634

TUNAI DAN TUNAI SETARA PADA AKHIR TAHUN (NOTA 20) 395,103 21,589,882

Nota-nota yang dilampirkan adalah sebahagian daripada penyata kewangan.

Penyata Aliran Tunai Yang Disatukan

bagi tahun berakhir 31 Januari 2007

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Laporan Tahunan 2007 135

Penyata Aliran Tunai Syarikatbagi tahun berakhir 31 Januari 2007

2007 2006 RM RM

ALIRAN TUNAI DARIPADA KEGIATAN OPERASI

(Kerugian)/keuntungan sebelum cukai (45,848,397) 3,679,088

Pelarasan bagi:

Susutnilai 660,259 557,157

Pendapatan dividen – (21,745,000)

Gantirugi ketidakhadiran terkumpul jangka pendek 5,219 2,110

Pendapatan faedah (518) (95,633)

Perbelanjaan faedah 2,163,099 2,031,226

Peruntukan bagi hutang ragu 5,881,016 10,702,890

Tambahan liabiliti untuk pelan faedah yang ditentukan 20,577 –

Keuntungan dalam pengembalian modal oleh anak syarikat (3,629,469) –

Keuntungan daripada penjualan hartanah, loji dan peralatan (59,231) –

Rosotnilai hartanah 360,640 –

Kerugian atas rosotnilai pelaburan dalam anak-anak syarikat 27,641,250 4,438,277

Peruntukan jaminan korporat 9,710,000 –

Hartanah, loji dan peralatan dihapuskira 50,884 –

Kerugian operasi sebelum perubahan modal kerja (3,044,671) (429,885)

(Tambahan)/kurangan belum terima (4,641) 2,770,327

Tambahan/(kurangan) belum bayar 954,065 (2,027,862)

Perubahan bersih dalam syarikat-syarikat berkaitan 3,400,149 934,653

Tunai dihasilkan daripada kegiatan operasi 1,304,902 1,247,233

Faedah dibayar (2,163,099) (2,031,226)

Cukai dibayar – (17,622)

Tunai bersih dihasilkan daripada kegiatan operasi (858,197) (801,615)

ALIRAN TUNAI DARIPADA KEGIATAN PELABURAN

Dividen diterima 7,110,000 6,013,705

Faedah diterima 518 95,633

Pelaburan dalam anak-anak syarikat – (28,641,250)

Perolehan daripada penerbitan saham biasa – 10,026,315

Perolehan daripada penjualan hartanah, loji dan peralatan 233,624 23,001

Perolehan bersih daripada pengembalian modal oleh anak syarikat 2,658,906 –

Pembelian hartanah, loji dan peralatan (111,125) (636,630)

Tunai bersih dihasilkan daripada/(digunakan dalam) kegiatan pelaburan 9,891,923 (13,119,226)

ALIRAN TUNAI DARIPADA KEGIATAN PEMBIAYAAN

(Bayaran untuk)/tunai bersih daripada pinjaman berjangka (2,910,006) 11,945,756

Pembayaran untuk sewabeli dan pemiutang pajakan (182,684) (233,828)

(Bayaran untuk)/tunai bersih daripada pinjaman jangka pendek (1,500,000) 2,471,000

Dividen dibayar (3,615,556) (5,784,720)

Tunai bersih (digunakan dalam)/dihasilkan daripada kegiatan pembiayaan (8,208,246) 8,398,208

PENAMBAHAN/(PENGURANGAN) BERSIH DALAM TUNAI DAN TUNAI SETARA 825,480 (5,522,633)

TUNAI DAN TUNAI SETARA PADA AWAL TAHUN KEWANGAN (2,078,311) 3,444,322

TUNAI DAN TUNAI SETARA PADA AKHIR TAHUN (NOTA 20) (1,252,831) (2,078,311)

Nota-nota yang dilampirkan adalah sebahagian daripada penyata kewangan.

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Nota-nota kepada Penyata Kewangan31 Januari 2007

1. MAKLUMAT KORPORAT

Syarikat adalah sebuah syarikat awam dengan liabiliti terhad, diperbadankan dan bermastautin di Malaysia, dan disenaraikan di Papan

Utama Bursa Malaysia Securities Berhad. Pejabat berdaftar bagi Syarikat ialah Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian

Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan.

Syarikat induk adalah Sapura Holdings Sdn. Bhd., sebuah syarikat yang diperbadankan di Malaysia.

Kegiatan utama Syarikat adalah pemegang pelaburan dan penyediaan perkhidmatan pengurusan kepada anak-anak syarikat. Kegiatan

utama anak-anak syarikat dinyatakan di dalam Nota 14.

Penyata kewangan diluluskan untuk pembentangan oleh Lembaga Pengarah menurut resolusi para pengarah pada 22 Mei 2007.

2. DASAR-DASAR PERAKAUNAN PENTING

2.1 Asas Penyediaan

Penyata kewangan mematuhi Peruntukan Akta Syarikat, 1965 dan Piawaian Pelaporan Kewangan (“FRS”) yang berkenaan di Malaysia.

Pada awal tahun kewangan semasa, Kumpulan dan Syarikat telah menerima pakai FRS baru dan yang telah disemak semula di mana

ianya adalah mandatori bagi tempoh kewangan bermula pada atau sebelum 1 Januari 2006 seperti yang dijelaskan sepenuhnya di

Nota 2.3.

Penyata kewangan Kumpulan dan Syarikat juga telah disediakan menurut kelaziman kos sejarah.

Penyata kewangan dipersembahkan dalam Ringgit Malaysia (“RM”).

2.2 Rumusan Dasar-Dasar Perakaunan Penting

(a) Anak-anak Syarikat dan Asas Penyatuan

(i) Anak-anak Syarikat

Anak-anak Syarikat adalah entiti yang mana Kumpulan mempunyai kemampuan mengawal dasar-dasar perakaunan

dan operasinya justeru mendapat faedah daripada aktiviti-aktivitinya. Kewujudan dan kesan potensi hak mengundi yang

semasa ini boleh dikuatkuasakan atau ditukarkan adalah diambilkira apabila menilai samada Kumpulan mempunyai kuasa

seumpama itu ke atas entiti lain.

Di dalam Penyata Kewangan berasingan syarikat, pelaburan di dalam anak-anak Syarikat dinyatakan pada kos ditolak

kerugian rosotnilai. Perbezaan diantara perolehan bersih penjualan dan nilai dibawanya semasa pelupusan pelaburan

anak syarikat dimasukkan di dalam untung atau rugi.

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Nota-nota kepada Penyata Kewangan (Samb.)

2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(a) Anak Syarikat dan Asas Penyatuan (Samb.)

(ii) Asas Penyatuan

Penyata kewangan yang disatukan mengandungi penyata kewangan Syarikat dan anak-anak syarikatnya pada tarikh

lembaran imbangan. Penyata kewangan anak-anak syarikat disediakan bagi tempoh laporan yang sama dengan Syarikat.

Anak-anak syarikat disatukan dari tarikh pengambilalihan, iaitu tarikh di mana Kumpulan memperoleh kuasa mengawal,

dan akan disatukan sehingga tarikh di mana kuasa mengawal tersebut hilang. Dalam penyediaan penyata kewangan

disatukan, baki-baki di antara syarikat-syarikat di dalam kumpulan, transaksi-transaksi dan untung atau rugi yang belum

realisasi dihapuskan sepenuhnya. Dasar-dasar perakaunan yang serupa diguna pakai di dalam penyata kewangan disatukan

terhadap transaksi-transaksi atau peristiwa-peristiwa yang serupa.

Pengambilalihan anak-anak syarikat disatukan menggunakan kaedah pembelian. Kaedah perakaunan pembelian

melibatkan pengagihan kos pengambilalihan kepada nilai saksama aset-aset, liabiliti-liabiliti dan liabiliti kontingen yang

diambil alih pada tarikh pengambilalihan. Kos sesebuah pengambilalihan dikira sebagai agregat nilai saksama, pada tarikh

pertukaran, aset-aset yang diambil, liabiliti-liabiliti yang terakru atau tertanggung, dan instrument ekuiti yang diterbitkan,

ditambah sebarang kos yang terlibat secara langsung dengan pengambilalihan.

Sebarang lebihan kos pengambilalihan ke atas kepentingan Kumpulan dalam nilai saksama aset-aset, liabiliti-liabiliti dan

liabiliti kontingen yang boleh dikenalpasti merupakan muhibbah. Sebarang lebihan kepentingan Kumpulan dalam nilai

saksama aset-aset, liabiliti-liabiliti dan liabiliti kontingen yang boleh dikenalpasti ke atas kos pengambilalihan diiktiraf

serta merta di dalam untung atau rugi.

Kepentingan minoriti merupakan bahagian untung atau rugi dan aset bersih di dalam anak-anak syarikat yang tidak dimiliki

oleh Kumpulan. Ia diukur pada bahagian minoriti ke atas nilai saksama aset-aset, liabiliti-liabiliti yang boleh dikenalpasti

anak-anak syarikat pada tarikh pengambilalihan dan perubahan bahagian minoriti dalam ekuiti anak-anak syarikat sejak

tarikh tersebut.

(b) Syarikat Bersekutu

Syarikat bersekutu adalah entiti-entiti di mana Kumpulan mempunyai pengaruh yang ketara dan ianya bukan anak syarikat

mahupun kepentingan di dalam sesebuah usahasama. Pengaruh ketara adalah kuasa untuk mengambil bahagian dalam

membuat keputusan mengenai dasar kewangan dan operasi syarikat yang dilabur tetapi bukan mengawal ataupun mengawal

bersama dasar-dasar tersebut.

Pelaburan dalam syarikat-syarikat bersekutu diambilkira di dalam penyata kewangan yang disatukan menggunakan kaedah

perakaunan ekuiti. Di bawah kaedah ekuiti, pelaburan di dalam syarikat bersekutu dinyatakan di dalam lembaran imbangan

disatukan pada kos yang dilaraskan untuk mengambilkira perubahan dalam bahagian Kumpulan terhadap aset semasa syarikat

bersekutu selepas pengambilalihan. Bahagian Kumpulan terhadap untung atau rugi bersih syarikat bersekutu diiktiraf di dalam

untung atau rugi yang disatukan. Di mana terdapat sesuatu perubahan yang diiktiraf terus ke dalam ekuiti syarikat bersekutu,

Kumpulan mengiktiraf bahagiannya terhadap perubahan seumpama itu.

Dalam mengguna pakai kaedah ekuiti, keuntungan dan kerugian yang belum realisasi atas transaksi-transaksi di antara

Kumpulan dan syarikat bersekutu dihapuskan terhad kepada kepentingan Kumpulan di dalam syarikat bersekutu tersebut.

Selepas mengguna pakai kaedah ekuiti, Kumpulan menentukan sama ada ia perlu untuk mengiktiraf sebarang tambahan

kerugian rosotnilai terhadap pelaburan bersih Kumpulan di dalam syarikat bersekutu. Syarikat bersekutu diambilkira secara

ekuiti daripada tarikh Kumpulan memperoleh pengaruh ketara sehingga tarikh Kumpulan hilang pengaruh ketara terhadap

syarikat bersekutu.

31 Januari 2007

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Nota-nota kepada Penyata Kewangan (samb.)

31 Januari 2007

2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(b) Syarikat Bersekutu (Samb.)

Muhibbah berkenaan sesebuah anak syarikat dimasukkan di dalam amaun dibawa pelaburan tersebut dan ia tidak dilunaskan.

Sebarang lebihan bahagian Kumpulan terhadap nilai saksama bersih aset-aset, liabiliti-liabiliti dan liabiliti kontingen syarikat

bersekutu yang boleh dikenalpasti terhadap kos pelaburan adalah disisihkan daripada jumlah dibawa pelaburan tersebut dan

sebaliknya ia dimasukkan sebagai pendapatan dalam menentukan bahagian Kumpulan terhadap untung atau rugi syarikat

bersekutu di dalam tempoh di mana pelaburan tersebut diperolehi.

Apabila bahagian rugi Kumpulan di dalam sesebuah syarikat bersekutu bersamaan ataupun melebihi kepentingannya di dalam

syarikat bersekutu, termasuk sebarang kepentingan jangka panjang yang secara hakikinya merupakan sebahagian daripada

pelaburan bersih Kumpulan di dalam syarikat bersekutu, Kumpulan tidak akan mengiktiraf kerugian lebih lanjut, kecuali ia telah

menyebabkan obligasi atau membuat pembayaran bagi pihak syarikat bersekutu.

Penyata kewangan yang telah diaudit syarikat bersekutu yang terkini digunakan oleh Kumpulan dalam mengguna pakai kaedah

ekuiti. Di mana tarikh penyata kewangan yang telah diaudit tersebut tidak sejajar dengan Kumpulan, bahagian keputusan diperolehi

daripada penyata kewangan yang diaudit terakhir dan penyata kewangan pengurusan sehingga akhir tempoh perakaunan. Dasar-

dasar perakaunan yang seragam diadaptasi terhadap transaksi-transaksi dan peristiwa-peristiwa yang serupa.

(c) Aset Tidak Ketara

Aset tidak ketara yang diperolehi secara berasingan diukur pada kos di awal pengiktirafan. Kos aset tidak ketara yang diperolehi

dalam penggabungan perniagaan adalah nilai saksamanya pada tarikh pengambilalihan. Lanjutan daripada pengiktirafan awal

tersebut, aset tidak ketara dinyatakan pada kos ditolak sebarang pelunasan terkumpul dan sebarang kerugian rosotnilai terkumpul.

Usia guna aset tidak ketara ditaksir samada ia terhad ataupun tiada berkesudahan. Aset tidak ketara yang mempunyai usia guna

terhad dilunaskan secara kaedah garis lurus atas anggaran usia guna ekonomi terhad dan rosotnilai ditaksir apabila terdapat tanda

yang menunjukkan aset tidak ketara tersebut rosotnilainya. Tempoh pelunasan dan kaedah pelunasan untuk suatu aset tidak ketara

yang mempunyai usia guna yang terhad disemak semula sekurang-kurangnya pada setiap tarikh lembaran imbangan.

Aset tidak ketara yang mempunyai usia guna tiada berkesudahan tidak dilunaskan tetapi diuji untuk rosotnilai secara tahunan

atau lebih kerap jika peristiwa atau perubahan dalam keadaan yang menunjukkan nilai dibawanya mungkin merosot samada

secara individu atau pada peringkat unit menjana tunai. Usia guna sesuatu aset tidak ketara yang tiada berkesudahan juga

disemak secara tahunan untuk menentukan samada penaksiran usia gunanya adalah berterusan.

(i) Kos penyelidikan dan pembangunan

Semua kos penyelidikan dan pembangunan diiktiraf di dalam untung atau rugi apabila terjadi.

Perbelanjaan yang berlaku ke atas projek-projek untuk membangunkan produk-produk baru dipermodalkan dan

ditangguhkan hanya apabila Kumpulan boleh mempamerkan kebolehlaksanaan teknikal menyempurnakan aset tidak

ketara tersebut supaya ia tersedia untuk kegunaan atau dijual, niat untuk menyempurnakan dan kemampuan untuk

menggunakan atau menjual aset tersebut, bagaimana aset tersebut akan menjana faedah ekonomi masa hadapan,

kesediaan sumber-sumber untuk menyempurnakan projek tersebut dan kebolehan untuk mengukur dengan pasti

perbelanjaan semasa pembangunan. Perbelanjaan-perbelanjaan pembangunan produk yang tidak memenuhi kriteria-

kriteria ini akan dibelanjakan apabila ianya berlaku.

Kos-kos pembangunan, yang dipertimbangkan mempunyai usia guna yang terhad, dinyatakan pada kos ditolak sebarang

kerugian rosotnilai dan dilunaskan menggunakan asas garis lurus sepanjang usia komersil produk yang menjadi asas tetapi

tidak melebihi lima tahun. Rosotnilai ditaksir apabila terdapat petunjuk rosotnilai dan tempoh dan kaedah pelunasan juga

disemak semula sekurang-kurangnya pada setiap tarikh lembaran imbangan.

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Nota-nota kepada Penyata Kewangan (Samb.)

31 Januari 2007

2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(d) Hartanah, Loji dan Peralatan dan Susutnilai

Semua hartanah, loji dan peralatan pada mulanya direkodkan pada kos. Kos-kos selanjutnya dimasukkan di dalam nilai dibawa

aset atau diiktiraf sebagai aset yang berasingan, yang mana sesuai, hanya apabila faedah ekonomi yang berkaitan dengan item

tersebut diyakini akan mengalir ke Kumpulan dan kos item tersebut boleh diukur dengan pasti. Nilai dibawa bahagian yang

ditukarganti dinyahiktiraf. Semua pembaikan dan penyelenggaraan dicaj ke penyata pendapatan semasa tahun kewangan di

mana ianya dibelanjakan.

Lanjutan daripada pengiktirafan, hartanah, loji dan peralatan kecuali tanah pegangan bebas dinyatakan pada kos ditolak

susutnilai terkumpul dan sebarang kerugian rosotnilai.

Tanah pegangan pajak jangka panjang disusutnilaikan sepanjang tempoh pajakan dalam lingkungan 96 hingga 99 tahun.

Susutnilai lain-lain hartanah, loji dan peralatan diperuntukkan atas asas garis lurus untuk menghapuskira kos setiap aset kepada

nilai sisanya sepanjang tempoh usia gunanya pada kadar tahunan berikut:

Bangunan 2%

Loji, mesin, pemasangan elektrik, peralatan kilang dan perkakas-perkakas aplikasi 10% hingga 33%

Perabot, kelengkapan, peralatan pejabat, ubahsuai, komputer dan kenderaan bermotor 8% hingga 25%

Nilai sisa, usia guna dan keadaan susutnilai disemak semula pada setiap akhir tahun kewangan bagi memastikan amaun, keadaan

dan tempoh susutnilai adalah konsisten dengan anggaran sebelum ini dan jangkaan corak penggunaan faedah ekonomi masa

hadapan yang wujud di dalam item-item hartanah, loji dan peralatan tersebut.

Sesebuah item hartanah, loji dan peralatan dinyahiktiraf apabila dilupuskan atau apabila tiada faedah ekonomi masa hadapan

yang dijangkakan daripada penggunaan ataupun pelupusannya. Perbezaan di antara hasil bersih pelupusan, jika ada dan nilai

dibawa bersih diiktiraf di dalam untung atau rugi dan bahagian rezab penilaian semula yang belum digunakan atas item tersebut

dipindahkan terus ke keuntungan terkumpul.

(e) Rosotnilai Aset Bukan Kewangan

Amaun dibawa aset-aset Kumpulan, selain daripada inventori dan aset cukai tertunda, disemak semula pada setiap tarikh

lembaran imbangan bagi menentukan samada terdapat sebarang petunjuk rosot nilai. Jika petunjuk seumpama itu wujud,

amaun boleh pulih aset dianggarkan untuk menentukan amaun rugi rosotnilai.

Bagi muhibbah, aset yang mempunyai usia guna tiada berkesudahan dan aset tidak ketara yang masih belum lagi sedia untuk

digunakan, amaun boleh pulih dianggarkan pada setiap tarikh lembaran imbangan atau lebih kerap apabila petunjuk-petunjuk

rosotnilai dikenalpasti.

Bagi tujuan ujian rosotnilai aset-aset ini, amaun boleh pulih ditentukan atas asas aset secara individu kecuali aset tersebut tidak

menjana aliran tunai dan tidak bergantung besar kepada aset lain. Dalam hal tersebut, amaun boleh pulih ditentukan kepada

unit-penjanaan tunai (“CGU”) yang mana aset tersebut menganggotai. Muhibbah yang diperoleh dalam sesuatu penggabungan

perniagaan diagihkan daripada tarikh pengambilalihan, kepada setiap CGU dalam Kumpulan, atau kumpulan-kumpulan CGU,

yang dijangkakan mendapat faedah daripada sinergi penggabungan tersebut, tanpa mengira samada lain-lain aset atau liabiliti

Kumpulan ditentukan kepada unit-unit atau kumpulan-kumpulan unit tersebut.

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31 Januari 2007

2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(e) Rosotnilai Aset Bukan Kewangan (Samb.)

Suatu amaun boleh pulih adalah yang mana lebih tinggi di antara nilai saksama sesuatu aset atau CGU ditolak kos untuk menjual

dan nilai digunanya. Dalam menaksir nilai diguna, anggaran aliran tunai masa hadapan akan didiskaunkan kepada nilai kininya

menggunakan kadar diskaun sebelum cukai yang mencerminkan taksiran pasaran semasa nilai masa wang dan risiko-risiko yang

spesifik kepada aset tersebut. Apabila nilai dibawa sesebuah aset melebihi amaun boleh pulih aset tersebut, nilainya dianggap

merosot dan diturunkan kepada amaun boleh pulihnya. Kerugian rosotnilai diiktiraf berkenaan sesebuah CGU atau kumpulan-

kumpulan CGU diagihkan pertamanya untuk mengurangkan amaun dibawa sebarang muhibbah yang diagihkan kepada unit-

unit atau kumpulan-kumpulan unit tersebut dan kemudian, untuk mengurangkan amaun dibawa lain-lain aset di dalam unit atau

kumpulan-kumpulan unit atas asas sama rata.

Rugi rosotnilai diiktiraf di dalam untung atau rugi di dalam tempoh di mana ianya wujud.

Rugi rosotnilai atas muhibbah tidak dibalikkan di dalam tempoh berikutnya. Rugi rosotnilai sesebuah aset, selain daripada

muhibbah, dibalikkan jika dan hanya jika terdapat perubahan dalam anggaran-anggaran yang digunakan untuk menentukan

amaun boleh pulih aset tersebut sejak rugi rosotnilai yang terakhir diiktiraf. Nilai dibawa sesebuah aset, selain daripada muhibbah

dinaikkan kepada amaun boleh pulihnya, dengan syarat amaun ini tidak melebihi amaun dibawa yang sepatutnya diperolehi

(selepas pelunasan dan susutnilai) jika tiada rosotnilai telah diiktiraf terhadap aset tersebut di tahun sebelumnya. Rugi rosotnilai

yang dibalikkan bagi sesebuah aset selain daripada muhibbah diiktiraf di dalam untung atau rugi.

(f) Inventori

Inventori dinyatakan pada nilai terendah di antara kos dan nilai boleh realisasi bersih.

Kos ditentukan menggunakan asas purata wajaran. Kos bahan mentah terdiri daripada kos-kos belian. Kos barangan siap dan

kerja dalam proses terdiri daripada bahan-bahan langsung, buruh langsung, lain-lain kos langsung dan perkadaran yang sesuai

bagi overhed pengeluaran.

Nilai boleh realisasi bersih adalah anggaran harga jualan dalam urusan biasa perniagaan ditolak anggaran kos-kos penyudahan

dan anggaran kos-kos yang diperlukan untuk jualan tersebut.

(g) Instrumen Kewangan

Instrumen-instrumen kewangan diiktiraf di dalam lembaran imbangan apabila Kumpulan telah menjadi satu pihak dalam

peruntukan kontrak bagi instrumen-instrumen tersebut.

Instrumen-instrumen kewangan diklasifikasikan sebagai liabiliti atau ekuiti menurut intipati perjanjian kontrak. Faedah, dividen

dan keuntungan dan kerugian berkaitan dengan suatu instrumen kewangan yang diklasifikasikan sebagai liabiliti, dilaporkan

sebagai belanja atau pendapatan. Pengagihan kepada para pemegang intrumen kewangan yang diklasifikasikan sebagai ekuiti

akan dicajkan terus ke ekuiti. Instrumen-instrumen kewangan akan dilaraskan apabila Kumpulan mempunyai hak yang boleh

dikuatkuasakan secara perundangan untuk melaraskan dan berniat untuk menyelesaikannya samada pada asas bersih atau

merealisasikan aset dan menyelesaikan liabiliti tersebut secara serentak.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(g) Instrumen Kewangan (Samb.)

(i) Tunai dan Tunai Setara

Bagi tujuan penyediaan penyata aliran tunai, tunai dan tunai setara terdiri daripada tunai di tangan dan di bank, deposit

yang boleh dipanggil yang mempunyai risiko perubahan harga yang tidak tinggi, ditolak overdraf bank tertunggak.

(ii) Lain-lain Pelaburan Bukan Semasa

Pelaburan bukan semasa selain daripada pelaburan dalam anak syarikat dan syarikat bersekutu dinyatakan pada kos

ditolak kerugian rosotnilai. Apabila suatu pelaburan dilupuskan, perbezaan di antara terimaan jualan bersih dan nilai

dibawanya diiktiraf di dalam untung atau rugi.

(iii) Belum Terima

Belum terima dinyatakan pada nilai yang dijangkakan boleh direalisasikan. Hutang lapuk dihapuskira apabila dikenalpasti.

Suatu anggaran dibuat bagi hutang ragu berdasarkan penelitian yang dibuat terhadap semua baki tertunggak pada tarikh

lembaran imbangan.

(iv) Belum Bayar

Belum bayar dinyatakan pada kos iaitu nilai saksama balasan yang akan dibayar pada masa hadapan bagi barangan dan

perkhidmatan yang telah diterima.

(v) Pinjaman

Semua pinjaman diiktiraf pada mulanya pada nilai saksama balasan yang diterima ditolak kos transaksi yang terlibat

secara langsung. Selepas pengiktirafan awal, pinjaman berfaedah dan pinjaman dikira seterusnya pada kos dilunaskan

menggunakan kaedah faedah efektif.

(vi) Instrumen Ekuiti

Saham biasa diklasifikasikan sebagai ekuiti. Dividen ke atas saham-saham biasa diiktiraf dalam ekuiti di dalam tempoh di

mana ia diisytiharkan.

Kos-kos transaksi bagi suatu urusniaga ekuiti diambilkira sebagai kurangan daripada ekuiti, selepas cukai. Kos-kos transaksi

ekuiti hanya terdiri daripada kos tambahan luaran berkaitan langsung dengan transaksi ekuiti tersebut yang mana

sebaliknya boleh dielakkan.

Balasan dibayar, termasuk kos-kos merujuk kepada transaksi atas saham biasa Syarikat yang telah dibeli semula dan

belum dibatalkan, diklasifikasikan sebagai saham perbendaharaan dan ditunjukkan sebagai kurangan daripada ekuiti.

Tiada keuntungan atau kerugian diikiraf di dalam untung atau rugi atas jualan, penerbitan semula atau pembatalan saham

perbendaharaan tersebut. Apabila saham perbendaharaan diterbitkan semula melalui jualan semula, perbezaan di antara

balasan jualan dan amaun dibawa diiktiraf di dalam ekuiti.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(h) Pajakan

(i) Klasifikasi

Suatu pajakan diiktiraf sebagai pajakan kewangan jika ia memindahkan kebanyakan risiko dan pulangan terhadap

pemilikannya kepada Kumpulan dan Syarikat. Pajakan tanah dan bangunan diklasifikasikan sebagai pajakan kewangan

ataupun operasi dengan cara yang sama seperti pajakan lain-lain aset dan elemen tanah dan bangunan bagi suatu

pajakan tanah dan bangunan diambilkira secara berasingan bagi tujuan klasifikasi pajakan. Semua pajakan yang tidak

memindahkan kebanyakan risiko dan pulangannya diklasifikasikan sebagai pajakan operasi.

(ii) Pajakan Kewangan – Kumpulan sebagai Pemajak

Aset-aset yang diperolehi melalui sewabeli dan pajakan kewangan dinyatakan pada suatu amaun bersamaan dengan

terendah di antara nilai saksamanya dan nilai kini pembayaran pajakan minima pada masa permulaan pajakan, ditolak

susutnilai terkumpul dan rosotnilai. Liabiliti yang berkaitan dimasukkan di dalam lembaran imbangan sebagai pinjaman.

Dalam pengiraan nilai kini pembayaran pajakan minima, faktor diskaun digunakan adalah kadar faedah tersirat di dalam

pajakan tersebut, apabila ia praktikal untuk ditentukan; jika tidak, kadar pertambahan pinjaman Syarikat digunakan.

Sebarang kos awal langsung ditambah kepada amaun dibawa aset tersebut.

Pembayaran pajakan dibahagikan di antara kos kewangan dan pengurangan liabiliti tertunggak. Kos kewangan, yang

mewakili perbezaan di antara jumlah komitmen pajakan dan nilai saksama aset yang diperolehi, diiktiraf di dalam untung

atau rugi sepanjang tempoh pajakan untuk menghasilkan kadar caj yang berkala yang seragam ke atas baki liabiliti bagi

setiap tempoh perakaunan.

Dasar susutnilai aset-aset yang diperolehi secara pajakan adalah sejajar dengan hartanah, loji dan peralatan yang boleh

disusutnilaikan seperti yang dijelaskan dalam Nota 2.2(d).

(iii) Pajakan Operasi – Kumpulan sebagai Pemajak

Pembayaran pajakan operasi diiktiraf sebagai belanja pada asas garis lurus sepanjang tempoh relevan pajakan. Faedah

agregat insentif yang diberikan oleh pemberi pajak diiktiraf sebagai suatu kurangan terhadap belanja sewa sepanjang

tempoh pajakan pada asas garis lurus.

(i) Kos Pinjaman

Semua kos pinjaman diiktiraf di dalam untung atau rugi di dalam tempoh di mana ia berlaku.

(j) Cukai Pendapatan

Cukai pendapatan ke atas keuntungan atau kerugian untuk sesuatu tahun terdiri daripada cukai semasa dan cukai tertunda.

Cukai semasa adalah amaun cukai pendapatan yang dijangkakan perlu dibayar bagi keuntungan bercukai tahun tersebut dan ia

dikira menggunakan kadar cukai yang termaktub pada tarikh lembaran imbangan.

Cukai tertunda diperuntukkan, mengikut kaedah liabiliti. Pada prinsipnya, liabiliti cukai tertunda diiktiraf terhadap semua

perbezaan sementara boleh dicukai dan aset cukai tertunda diiktiraf terhadap semua perbezaan sementara boleh ditolak,

kerugian cukai dan cukai kredit belum digunakan setakat mana keuntungan boleh dicukai berkemungkinan akan wujud untuk

digunakan terhadap semua perbezaan sementara boleh ditolak, kerugian cukai dan cukai kredit belum digunakan tersebut.

Cukai tertunda tidak diiktiraf jika perbezaan sementara itu timbul daripada muhibbah atau muhibbah negatif ataupun pada

permulaan pengiktirafan suatu aset atau liabiliti di dalam suatu transaksi yang bukan penggabungan perniagaan dan pada

waktu transaksi tersebut, tidak memberikan kesan terhadap keuntungan perakaunan mahupun keuntungan bercukai.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(j) Cukai Pendapatan (Samb.)

Cukai tertunda diukur pada kadar cukai yang dijangkakan akan digunakan di dalam tempoh di mana aset tersebut direalisasikan

ataupun liabiliti tersebut diselesaikan, berdasarkan kadar cukai yang telah dimaktubkan ataupun termaktub secara hakiki pada

tarikh lembaran imbangan. Cukai tertunda diiktiraf sebagai suatu pendapatan atau perbelanjaan dan dimasukkan di dalam

untung atau rugi bagi tempoh tersebut, kecuali apabila ianya timbul daripada transaksi yang diiktiraf secara terus dalam ekuiti,

ataupun apabila ianya timbul daripada suatu penggabungan perniagaan yang merupakan suatu pengambilalihan, di mana

dalam hal tersebut cukai tertunda dimasukkan ke dalam muhibbah yang terhasil atau amaun lebihan kepentingan pengambilalih

adalah nilai saksama bersih aset, liabiliti dan liabiliti kontingen pihak yang diambilalih di atas kos penggabungan tersebut.

(k) Peruntukan

Peruntukan diiktiraf apabila Kumpulan mempunyai obligasi semasa hasil daripada peristiwa lampau dan ianya berkemungkinan

bahawa aliran keluar sumber yang mengandungi faedah ekonomi akan diperlukan untuk menyelesaikan obligasi tersebut, dan

suatu anggaran yang pasti terhadap amaun tersebut dapat dibuat. Peruntukan disemak semula pada setiap tarikh lembaran

imbangan dan dilaraskan untuk mencerminkan anggaran semasa terbaik. Apabila kesan nilai masa wang adalah ketara,

peruntukan didiskaun menggunakan kadar semasa sebelum cukai, di mana sesuai, risiko yang spesifik kepada liabiliti tersebut.

Apabila diskaun digunakan, pertambahan dalam peruntukan yang disebabkan masa berlalu diiktiraf sebagai kos kewangan.

Peruntukan bagi kos penstrukturan semula diiktiraf apabila pelan rasmi dan terperinci penstrukturan semula diluluskan, dan

penstrukturan semula telah dimulakan atau telah diumumkan kepada awam. Kos berkenaan aktiviti-aktiviti yang sedang

berjalan tidak diperuntukkan.

(l) Faedah Pekerja

(i) Faedah Pekerja Jangka Pendek

Upah, gaji, bonus dan caruman keselamatan sosial diiktiraf sebagai belanja di dalam tahun di mana perkhidmatan yang

berkaitan diberikan oleh para pekerja Kumpulan. Ketidakhadiran berimbuhan terkumpul jangka pendek seperti cuti

tahunan berbayar diiktiraf apabila perkhidmatan yang diberikan oleh pekerja-pekerja telah meningkatkan hak mereka

terhadap ketidakhadiran berimbuhan masa hadapan, dan ketidakhadiran jangka pendek tidak terkumpul seperti cuti sakit

diiktiraf apabila ketidakhadiran tersebut berlaku.

(ii) Pelan Caruman yang Ditentukan

Pelan caruman yang ditentukan adalah pelan faedah selepas-pekerjaan di mana Kumpulan membayar caruman tetap

ke dalam entiti berasingan atau dana-dana dan tidak akan mempunyai obligasi perundangan ataupun konstruktif untuk

membayar caruman selanjutnya jika dana-dana tersebut tidak mempunyai aset yang mencukupi untuk membayar semua

faedah pekerja berkaitan perkhidmatan pekerja dalam tahun semasa dan tahun-tahun sebelumnya. Caruman sedemikian

diiktiraf sebagai belanja di dalam untung atau rugi apabila ianya berlaku. Seperti yang dikehendaki oleh undang-undang,

semua syarikat di Malaysia mencarum ke dalam Kumpulan Wang Simpanan Pekerja (“KWSP”).

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(l) Faedah Pekerja (Samb.)

(iii) Pelan Faedah yang Ditentukan

Kumpulan menjalankan sebuah Skim Faedah Persaraan (“Skim”) yang tidak dibiayai dan telah ditentukan kepada para

pekerja yang layak. Obligasi Kumpulan di bawah Skim ini, dikira menggunakan Kaedah Unjuran Unit Kredit, ditentukan

berdasarkan pengiraan aktuarial oleh aktuari bebas, yang mana amaun faedah yang para pekerja perolehi sebagai balasan

perkhidmatan mereka di dalam tahun semasa dan tahun-tahun sebelumnya dianggarkan. Faedah tersebut didiskaunkan

untuk menentukan nilai kininya.

Laba dan kerugian aktuari diiktiraf sebagai pendapatan atau belanja sepanjang jangkaan purata usia kerja yang tinggal

bagi para pekerja yang menyertai Skim tersebut apabila laba dan kerugian aktuari terkumpul yang tidak diiktiraf melebihi

10% yang tertinggi di antara nilai kini obligasi faedah yang ditentukan dan nilai saksama aset pelan tersebut. Kos-kos

perkhidmatan lampau diiktiraf serta merta sehingga takat faedah yang telah diletak hak, dan sebaliknya dilunaskan atas

asas garis lurus sepanjang tempoh purata sehingga faedah yang dipinda diletak hak.

Amaun diiktiraf di dalam lembaran imbangan mewakili nilai kini obligasi faedah yang ditentukan dilaraskan untuk laba

dan kerugian aktuari dan kos-kos perkhidmatan lampau yang tidak diiktiraf, dan dikurangkan oleh nilai saksama aset pelan

tersebut. Sebarang aset hasil daripada pengiraan ini adalah terhad kepada jumlah bersih sebarang kerugian aktuari dan

kos-kos perkhidmatan lampau yang tidak diiktiraf, dan nilai kini sebarang faedah ekonomi di dalam bentuk pemulangan

semula atau pengurangan caruman masa hadapan kepada pelan tersebut.

(iv) Pampasan Berasaskan Saham

Skim Opsyen Saham Pekerja (“ESOS”) Sapura Industrial Berhad, sebuah pelan penyelesaian ekuiti, pampasan berasaskan

saham, membenarkan para pekerja Kumpulan untuk mendapatkan saham biasa Syarikat. Jumlah nilai saksama opsyen

saham yang dianugerahkan kepada pekerja diiktiraf sebagai kos pekerja dengan peningkatan berkaitan dalam rezab

opsyen saham di dalam ekuiti sepanjang tempoh diletak hak dan mengambil kira kebarangkalian opsyen tersebut akan

berhak. Nilai saksama opsyen saham dikira pada tarikh dikurniakan, mengambil kira, jika ada, keadaan pasaran yang

berhak di mana opsyen telah dikurniakan tetapi tidak mengambil kira impak sebarang keadaan yang berhak bukan pasaran.

Keadaan bukan pasaran hak dimasukkan di dalam anggapan mengenai bilangan opsyen yang dijangka dikuatkuasakan

pada tarikh hak diberikan.

Pada setiap tarikh lembaran imbangan, Kumpulan menyemak semula anggarannya berkenaan bilangan opsyen yang

dijangkakan boleh berkuatkuasa pada tarikh terima hak. Ia mengiktiraf impak semakan semula anggaran awal tersebut,

jika ada, di dalam untung atau rugi dan pelarasan yang berkaitan dengannya ke ekuiti sepanjang baki tempoh hak. Amaun

ekuiti tersebut diiktiraf di dalam rezab opsyen saham sehingga opsyen dilaksanakan, yang mana ia akan dipindahkan ke

saham premium, atau sehingga opsyen luput, yang mana ia akan dipindahkan terus ke pendapatan terkumpul.

Hasil diterima bersih daripada sebarang kos transaksi akan dikreditkan ke modal saham apabila opsyen dilaksanakan.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(l) Faedah Pekerja (Samb.)

(v) Faedah Pemberhentian

Faedah pemberhentian perlu dibayar apabila penggajian ditamatkan sebelum tarikh persaraan yang biasa atau

apabila seseorang pekerja menerima penamatan sukarela sebagai ganti faedah tersebut. Kumpulan mengiktiraf faedah

pemberhentian sebagai suatu liabiliti dan sebagai belanja apabila ia boleh ditunjukkan komited untuk sama ada

menamatkan penggajian pekerja sekarang ini menurut suatu pelan terperinci tanpa kebarangkalian penarikan balik atau

memberikan faedah pemberhentian hasil daripada suatu tawaran dibuat untuk menggalakkan pemberhentian sukarela.

Dalam hal suatu tawaran dibuat untuk menggalakkan pemberhentian sukarela, faedah pemberhentian dikira berdasarkan

bilangan pekerja yang dijangkakan akan menerima tawaran tersebut. Faedah-faedah yang perlu dibayar lebih daripada

dua belas bulan selepas tarikh lembaran imbangan didiskaunkan ke nilai kini.

(m) Matawang Asing

(i) Matawang Pembentangan dan Berfungsi

Setiap penyata kewangan entiti di dalam Kumpulan dikira menggunakan matawang yang utama di persekitaran ekonomi

yang mana entiti tersebut beroperasi (“matawang yang berfungsi”). Penyata kewangan disatukan dibentangkan dalam

Ringgit Malaysia (RM), yang juga matawang yang berfungsi Syarikat.

(ii) Transaksi Matawang Asing

Dalam penyediaan penyata kewangan setiap entiti, transaksi-transaksi di dalam matawang selain matawang yang berfungsi

entiti (matawang asing) direkodkan dalam matawang yang berfungsi menggunakan kadar tukaran yang berkuatkuasa

pada tarikh transaksi. Pada tarikh lembaran imbangan, item-item bersifat kewangan dalam matawang asing diterjemahkan

pada kadar tukaran yang berkuatkuasa pada tarikh tersebut. Item-item bukan bersifat kewangan yang dinyatakan pada

nilai saksama dan didenominasikan dalam matawang asing, diterjemahkan menggunakan kadar tukaran yang wujud

pada waktu nilai tersebut ditentukan. Item-item bukan bersifat kewangan yang dinyatakan dalam kos sejarah dan dalam

matawang asing tidak diterjemah.

Perbezaan pertukaran yang terhasil daripada penyelesaian item-item bersifat kewangan, dan daripada penterjemahan

item-item bersifat kewangan, dimasukkan dalam untung atau rugi pada tahun.

Perbezaan pertukaran yang terhasil daripada penterjemahan item-item bukan bersifat kewangan yang dinyatakan pada

nilai saksama dimasukkan di dalam untung atau rugi pada tempoh kecuali perbezaan-perbezaan yang terhasil daripada

penterjemahan item-item bukan kewangan yang mana keuntungan dan kerugiannya diiktiraf terus ke ekuiti. Perbezaan

pertukaran yang terhasil daripada item bukan kewangan seumpama itu juga diiktiraf terus ke ekuiti.

(n) Pengiktirafan Pendapatan

Pendapatan diiktiraf apabila terdapat kemungkinan faedah ekonomi berkaitan dengan urusniaga akan mengalir masuk ke

Kumpulan dan pendapatan boleh diukur secara pasti. Kriteria pengiktirafan spesifik seperti berikut juga perlu dipenuhi sebelum

pendapatan diiktiraf:

(i) Jualan Barangan

Pendapatan diiktiraf selepas cukai jualan dan semasa risiko-risiko dan manfaat dari pemilikan aset tersebut berpindah

kepada pembeli. Pendapatan tidak diiktiraf apabila terdapat ketidaktentuan yang ketara untuk mendapat semula

balasannya, kos-kos berkaitan atau kemungkinan pulangan barangan.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.2 Rumusan Dasar-Dasar Perakaunan Penting (Samb.)

(n) Pengiktirafan Pendapatan (Samb.)

(ii) Pendapatan Sewa

Pendapatan sewa diiktiraf atas asas akruan.

(iii) Pendapatan Faedah

Pendapatan faedah diiktiraf atas asas akruan menggunakan kaedah faedah efektif.

(iv) Pendapatan Dividen

Pendapatan dividen diiktiraf apabila hak Kumpulan untuk menerima pembayaran menjadi pasti.

(v) Yuran Pengurusan

Yuran pengurusan diiktiraf apabila perkhidmatan diberikan.

2.3 Perubahan dalam Dasar-dasar Perakaunan, Kesan dan Perubahan di dalam Angka Perbandingan Hasil Daripada Menerima

Pakai FRS Baru dan yang telah Disemak Semula

Pada 1 Februari 2006, Kumpulan dan Syarikat telah menerima pakai FRS berikut yang mandatori bagi tempoh perakaunan bermula

pada atau selepas 1 Januari 2006:

FRS 2 Pembayaran berasaskan Saham

FRS 3 Penggabungan Perniagaan

FRS 5 Aset Bukan Semasa yang Dipegang untuk Dijual dan Operasi yang Dihentikan

FRS 101 Pembentangan Penyata Kewangan

FRS 102 Inventori

FRS 108 Dasar-dasar Perakaunan , Perubahan dalam Anggaran dan Kesilapan

FRS 110 Peristiwa Selepas Tarikh Lembaran Imbangan

FRS 116 Hartanah, Loji dan Peralatan

FRS 121 Kesan Perubahan dalam Kadar Tukaran Asing

FRS 127 Penyata Kewangan Disatukan dan Penyata Kewangan Berasingan

FRS 128 Pelaburan dalam Syarikat Bersekutu

FRS 131 Kepentingan dalam Usahasama

FRS 132 Instrumen Kewangan: Pembentangan dan Pendedahan

FRS 133 Perolehan Sesaham

FRS 136 Rosotnilai Aset

FRS 138 Aset Tidak Ketara

FRS 140 Pelaburan Hartanah

Kumpulan dan Syarikat telah tidak menerima pakai lebih awal FRS baru dan disemak semula dan Intrepretasi berikut:

Berkuatkuasa bagi tempoh kewangan bermula pada atau selepas 1 Oktober 2006:

FRS 117 Pajakan

FRS 124 Pendedahan Pihak Berkaitan

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.3 Perubahan dalam Dasar-dasar Perakaunan, Kesan dan Perubahan di dalam Angka Perbandingan Hasil Daripada Menerima

Pakai FRS Baru dan yang telah Disemak Semula (Samb.)

Berkuatkuasa bagi tempoh kewangan bermula pada atau selepas 1 Januari 2007:

FRS 6 Eksplorasi dan Penilaian Sumber Mineral

FRS 119 2004

Faedah Pekerja – Keuntungan dan Kerugian Aktuarial, Pelan Kumpulan dan Pendedahan

IC Interpretation 1 Perubahan dalam ‘Decommissioning’ sedia ada, Pemulihan dan Liabiliti Seumpamanya

IC Interpretation 2 Saham Ahli-ahli dalam Entiti Koperasi dan Instrumen Seumpamanya

IC Interpretation 5 Hak ke atas Faedah daripada ‘Decommissioning’, Pemulihan dan Dana-dana Pemeliharaan Persekitaran

IC Interpretation 6 Liabiliti daripada Penyertaan dalam Pasaran Spesifik – Elektrikal Buangan dan Peralatan Elektronik

IC Interpretation 7 Pengaplikasian Pendekatan Penyataan Semula di bawah FRS 129 2004

Pelaporan Kewangan dalam Ekonomi

Berinflasi Tinggi

IC Interpretation 8 Skop FRS 2

Tarikh kuatkuasa ditangguhkan:

FRS 139 Instrumen Kewangan: Pengiktirafan dan Pengukuran

FRS 6 dan pindaan kepada FRS 119 tidak dijangka mempunyai impak yang ketara ke atas dasar-dasar perakaunan Kumpulan. Kesan-

kesan FRS 117, 124 dan 139 dikecualikan daripada didedahkan.

Penerimaan pakai FRS 2, 5, 102, 108, 110, 116, 121, 127, 128, 131, 132, 133, 138 dan 140 tidak mengakibatkan perubahan ketara

dalam dasar-dasar perakaunan Kumpulan dan Syarikat.

Perubahan utama dalam dasar-dasar perakaunan dan kesan-kesannya akibat menerima pakai FRS baru dan yang telah disemak

semula dibincangkan di bawah:

(a) FRS 3: Penyatuan Perniagaan

Lebihan kepentingan Kumpulan dalam nilai saksama bersih aset-aset, liabiliti-liabiliti dan liabiliti luarjangka syarikat

yang diambilalih ke atas kos (dahulunya dikenali sebagai muhibbah negatif)

Sebelum 1 Januari 2006, muhibbah negatif tidak dilunaskan. Di bawah FRS 3, sebarang lebihan kepentingan Kumpulan dalam

nilai saksama bersih aset-aset, liabiliti-liabiliti dan liabiliti luarjangka syarikat yang diambilalih ke atas kos pengambilalihan,

selepas pentaksiran semula, sekarang diiktiraf serta merta dalam untung atau rugi. Menurut peruntukan peralihan FRS 3,

muhibbah negatif pada 1 Februari 2006 sebanyak RM5,272,339 dinyahiktiraf dan dikreditkan terhadap baki awal keuntungan

terkumpul.

Disebabkan dasar perakaunan yang di semak semula di aplikasikan secara retrospektif, perubahan tersebut telah tidak memberi

impak ke atas amaun-amaun yang dilaporkan pada tahun 2006 atau tempoh-tempoh sebelumnya. Kesannya ke atas lembaran

imbangan disatukan pada 31 Januari 2007 dinyatakan dalam Nota 2.3(c). Perubahan ini tidak mempunyai impak ke atas penyata

pendapatan disatukan bagi tahun berakhir 31 Januari 2007 dan penyata kewangan Syarikat.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.3 Perubahan dalam Dasar-dasar Perakaunan, Kesan dan Perubahan di dalam Angka Perbandingan Hasil Daripada Menerima

Pakai FRS Baru dan yang telah Disemak Semula (Samb.)

(b) FRS 101:Pembentangan Penyata Kewangan

Sebelum 1 Februari 2006, kepentingan minoriti pada tarikh lembaran imbangan dibentangkan di dalam lembaran imbangan

disatukan secara berasingan daripada liabiliti dan ekuiti. Apabila FRS 101 disemak semula diterima pakai, kepentingan minoriti

sekarang dibentangkan di dalam jumlah ekuiti. Dalam penyata pendapatan disatukan, kepentingan minoriti dipersembahkan

sebagai satu agihan jumlah keuntungan atau kerugian bagi tahun. Kehendak yang sama juga diperlukan untuk penyata

perubahan ekuiti. FRS 101 disemak semula juga menghendaki pendedahan, pada muka penyata perubahan ekuiti, jumlah

pendapatan dan perbelanjaan diiktiraf dalam tahun, menunjukkan secara berasingan amaun-amaun yang diperuntukan

kepada pemegang ekuiti Syarikat dan kepentingan minoriti.

Perubahan pembentangan ini telah diaplikasikan secara retrospektif dan seperti yang didedahkan dalam Nota 2.3(d), angka

bandingan tertentu telah dinyatakan semula. Kesan ke atas lembaran imbangan disatukan pada 31 Januari 2007 dinyatakan

dalam Nota 2.3(c). Perubahan dalam pembentangan ini tidak mempunyai impak ke atas penyata pendapatan disatukan bagi

tahun berakhir 31 Januari 2007 dan penyata kewangan Syarikat.

(c) Rumusan kesan-kesan dan perubahan hasil menerima pakai FRS baru dan yang disemak semula

Setakat mana setiap item dalam lembaran imbangan disatukan pada 31 Januari 2007 adalah lebih tinggi dan lebih rendah

daripada jika dasar-dasar sebelum ini diaplikasikan dalam tahun semasa adalah seperti berikut:

Bertambah/(Berkurang)

FRS 3 FRS 101

Penjelasan perubahan Nota 2.3(a) Nota 2.3(b)

RM RM

Rezab penyatuan (5,272,339) –

Keuntungan tertahan 5,272,339 –

Jumlah ekuiti – 539,032

(d) Penyataan Semula Angka Bandingan

Amaun-amaun bandingan bagi tahun berakhir 31 Januari 2006 yang mana telah dinyatakan semula hasil daripada kesan

menerima pakai FRS baru dan yang disemak semula adalah seperti berikut:

Dinyatakan FRS 101 Dinyatakan

Sebelum Ini Nota 2.3(b) Semula

RM RM RM

Jumlah ekuiti 119,483,875 30,388,931 149,872,806

2.4 Perubahan Anggaran

FRS 116: Hartanah, Loji dan Peralatan yang disemak semula menghendaki semakan semula nilai sisa dan usia guna sesuatu item

hartanah, loji dan peralatan sekurang-kurangnya pada setiap akhir tahun kewangan. Semakan semula ini diambil kira secara

retrospektif sebagai suatu perubahan dalam anggaran perakaunan. Perubahan dalam anggaran perakaunan tidak mengakibatkan

sebarang pelarasan ketara kepada penyata kewangan Kumpulan dan Syarikat.

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2. DASAR-DASAR PERAKAUNAN PENTING (SAMB.)

2.5 Anggaran dan Pertimbangan Perakaunan Penting

Penyediaan penyata kewangan menghendaki pihak pengurusan membuat pertimbangan, anggaran dan andaian yang memberi

kesan ke atas pengaplikasian dasar-dasar perakaunan dan amaun aset, liabiliti, pendapatan, belanja yang dilaporkan dan pendedahan

yang dibuat. Ia ditaksir secara berterusan dan berdasarkan pengalaman dan faktor-faktor yang relevan, termasuk jangkaan peristiwa

masa hadapan yang dipercayai munasabah di bawah keadaan tersebut. Pertimbangan dan andaian-andaian utama berkenaan masa

hadapan yang dibuat dan lain-lain sumber utama anggaran ketidaktentuan pada tarikh lembaran imbangan, yang mempunyai risiko

ketara yang menyebabkan pelarasan ketara terhadap amaun dibawa aset dan liabiliti dalam tahun kewangan yang akan datang

seperti yang dinyatakan di bawah:

(i) Penurunan nilai inventori

Penurunan nilai inventori untuk mencerminkan nilai boleh realisasi bersih semasa berdasarkan anggaran harga jualan ditolak

kos penjualan dan pengagihan dan semua lain-lain kos untuk menyempurnakan jualan. Pertimbangan yang sewajarnya telah

dibuat untuk mengambil kira item usang dan tidak berapa laku didalam mendapatkan nilai boleh realisasi.

(ii) Rosotnilai hartanah, loji dan peralatan

Dalam tahun kewangan semasa, Kumpulan telah mengiktiraf rugi rosotnilai berkenaan hartanah, loji dan peralatan satu anak

syarikat. Kumpulan telah menjalankan ujian rosotnilai berdasarkan anggaran jangkaan aliran tunai anak syarikat tersebut pada

kadar diskaun yang sesuai untuk mengira nilai kini aliran tunai tersebut. Amaun dibawa hartanah, loji dan peralatan Kumpulan

pada 31 Januari 2007 adalah RM96,013,216 (2006: RM147,616,203). Butiran lanjut rugi rosotnilai yang telah diiktiraf dijelaskan

dalam Nota 12(a).

(iii) Susutnilai loji dan peralatan

Kos loji dan peralatan disusutnilaikan pada asas garis lurus ke atas usiaguna aset. Pihak pengurusan menganggarkan usiaguna

loji dan peralatan ini adalah 10 tahun. Ini adalah usia yang biasa digunakan dalam industri. Perubahan dalam tahap penggunaan

dan pembangunan teknologi boleh memberi impak ke atas usia guna ekonomi dan nilai sisa aset tersebut, oleh itu caj susutnilai

masa hadapan mungkin disemak semula.

(iv) Aset cukai tertunda

Aset cukai tertunda diiktiraf untuk semua kerugian cukai belum diserap dan elaun modal belum diserap setakat mana

keuntungan boleh dicukai berkemungkinan akan wujud untuk digunakan terhadap kerugian cukai dan elaun modal belum

diguna tersebut. Pertimbangan pihak pengurusan amat diperlukan untuk menentukan amaun cukai tertunda yang boleh

diiktiraf, berdasarkan masa dan tahap keuntungan boleh dicukai masa hadapan dan juga strategi-strategi perancangan cukai

masa hadapan. Jumlah nilai dibawa kerugian cukai dan elaun modal diiktiraf Kumpulan adalah RM895,160 (2006: RM264,576).

Kerugian cukai dan elaun modal yang tidak diiktiraf Kumpulan dan Syarikat adalah RM47,736,929 (2006: RM25,015,286) dan

RM15,778,594 (2006: RM9,028,356) masing-masing.

3. PENDAPATAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Jualan barangan dan perkhidmatan 166,523,692 173,407,726 – –

Yuran pengurusan – – 5,565,809 6,903,158

Dividen (dikecualikan cukai) daripada anak-anak syarikat – – – 21,745,000

166,523,692 173,407,726 5,565,809 28,648,158

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4. LAIN-LAIN PENDAPATAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Pendapatan sewa 423,732 588,077 822,000 830,933

Pendapatan faedah 361,922 422,173 518 95,633

Keuntungan daripada pelupusan hartanah, loji dan peralatan 72,848 110,469 59,231 –

Pendapatan daripada jualan bahan buangan 974,198 649,296 – –

Peruntukan hutang ragu dipulih semula – 39,782 107,285 –

Yuran pentadbiran sub-vendor – 3,466,203 – –

Keuntungan daripada kadar tukaran asing

– Direalisasikan 352,499 1,130,361 – –

– Belum direalisasikan 48,518 – – –

Keuntungan daripada pulangan modal sebuah anak syarikat – – 3,629,469 –

Lain-lain 741,778 321,127 60,158 –

2,975,495 6,727,488 4,678,661 926,566

5. KOS KEWANGAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Belanja faedah atas:

Pinjaman berjangka 3,845,340 3,326,217 1,401,391 1,276,705

Overdraf 360,224 277,499 137,412 98,377

Kredit pusingan 785,582 420,859 419,829 201,126

Sewa beli dan pajakan belum bayar 109,693 143,696 46,332 24,163

Penerimaan jurubank 713,098 443,709 – –

Surat kredit 182,773 181,120 – –

Kemudahan stok lantai – 41,404 – –

Syarikat berkaitan – – 146,225 417,557

Lain-lain 160,155 92,723 11,910 13,298

6,156,865 4,927,227 2,163,099 2,031,226

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6. (KERUGIAN)/KEUNTUNGAN SEBELUM CUKAI

Amaun-amaun berikut telah dimasukkan di dalam (kerugian)/keuntungan sebelum cukai:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Belanja faedah pekerja (Nota 7) 22,589,353 23,558,940 3,111,002 2,769,395

Ganjaran pengarah bukan eksekutif (Nota 8) 220,950 237,500 220,950 237,500

Pelunasan perbelanjaan pembangunan 2,065,168 1,841,015 – –

Ganjaran audit

– Audit berkanun 122,098 110,280 18,000 15,000

– Lain-lain perkhidmatan 5,000 5,000 5,000 5,000

Susutnilai hartanah, loji dan peralatan 15,860,982 14,390,052 660,259 557,157

Kerugian tukaran asing

– Belum direalisasikan 183,573 – – –

– Direalisasikan 43,566 (354,302) – –

Perbelanjaan pembangunan dihapuskira 10,811 140,156 – –

Kerugian atas pelupusan hartanah, loji dan peralatan 88,869 – – –

Inventori diturun nilai 8,937,320 – – –

Hartanah, loji dan peralatan dihapuskira 1,566,893 455,972 50,884 –

Rosotnilai hartanah, loji dan peralatan 36,923,937 – 360,640 –

Peruntukan jaminan korporat – – 9,710,000 –

Peruntukan hutang ragu

– Penghutang perniagaan dan lain-lain belum terima 5,498,781 436,979 – –

– Hutang anak-anak syarikat – – 5,988,301 10,702,890

Kerugian rosotnilai atas pelaburan dalam anak syarikat – – 27,641,250 4,438,277

Belanja sewa

– bangunan 2,578,257 1,162,120 591,675 633,913

– peralatan 57,727 36,527 – –

7. BELANJA FAEDAH PEKERJA

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Upah dan gaji 16,873,294 15,515,953 1,817,875 1,601,679

Caruman keselamatan sosial 217,813 172,122 10,346 9,064

Caruman ke pelan caruman yang ditentukan 1,871,973 1,574,849 276,064 227,931

Peningkatan dalam liabiliti pelan faedah yang ditentukan 215,391 – 20,577 –

Ketidakhadiran berimbuhan terkumpul jangka pendek 7,764 57,409 5,219 2,110

Lain-lain perbelanjaan berkaitan pekerja 3,403,118 6,238,607 980,921 928,611

22,589,353 23,558,940 3,111,002 2,769,395

Termasuk di dalam belanja faedah pekerja Kumpulan dan Syarikat adalah ganjaran pengarah-pengarah eksekutif berjumlah RM3,299,492

(2006: RM2,469,317) dan RM920,208 (2006: RM739,001) masing-masing seperti yang dijelaskan selanjutnya dalam Nota 8.

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8. GANJARAN PARA PENGARAH

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Para Pengarah Syarikat

Eksekutif:

Gaji dan lain-lain emolumen 1,004,925 850,377 586,800 547,625

Bonus bagi tahun sebelum ini 350,000 178,944 225,000 112,200

Caruman ke pelan caruman yang ditentukan 162,528 123,552 108,408 79,176

Faedah berupa barangan 67,550 59,600 159,127 52,400

1,585,003 1,212,473 1,079,335 791,401

Bukan Eksekutif:

Yuran 163,885 213,000 163,885 213,000

Lain-lain emolumen 57,065 24,500 57,065 24,500

Faedah berupa barangan 375 600 375 600

221,325 238,100 221,325 238,100

1,806,328 1,450,573 1,300,660 1,029,501

Para Pengarah Anak-Anak Syarikat

Eksekutif:

Gaji dan lain-lain emolumen 1,398,772 995,463 – –

Bonus bagi tahun sebelum ini 191,135 177,989 – –

Caruman ke pelan caruman yang ditentukan 192,132 142,992 – –

Faedah berupa barangan 79,768 75,848 – –

1,861,807 1,392,292 – –

3,668,135 2,842,865 1,300,660 1,029,501

Analisis tidak termasuk faedah berupa barangan:

Jumlah ganjaran para pengarah eksekutif,

tidak termasuk faedah berupa barangan (Nota 7) 3,299,492 2,469,317 920,208 739,001

Jumlah ganjaran para pengarah bukan eksekutif,

tidak termasuk faedah berupa barangan 220,950 237,500 220,950 237,500

Jumlah ganjaran para pengarah tidak termasuk

faedah berupa barangan

3,520,442 2,706,817 1,141,158 976,501

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8. GANJARAN PARA PENGARAH (SAMB.)

Bilangan pengarah-pengarah Syarikat yang mana jumlah ganjaran mereka semasa tahun kewangan termasuk di dalam lingkungan-

lingkungan berikut dianalisa seperti berikut:

Bilangan Pengarah

2007 2006

Eksekutif:

RM400,001 – RM450,000 – 1

RM500,001 – RM550,000 1 –

RM750,001 – RM800,000 – 1

RM1,000,001 – RM1,050,000 1 –

Bukan Eksekutif:

Di bawah RM50,000 8 7

9. BELANJA CUKAI PENDAPATAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Cukai pendapatan Malaysia:

Tahun semasa 733,546 1,320,113 – –

Kurangan/(lebihan) peruntukan dalam

tahun-tahun sebelum ini 248,012 (88,030) – –

981,558 1,232,083 – –

Cukai tertunda (Nota 25):

Berkaitan dengan permulaan dan pembalikan

perbezaan sementara (950,573) 1,713,889 – –

Berkaitan dengan perubahan kadar cukai (793,229) – – –

Kurangan/(lebihan) peruntukan dalam

tahun-tahun sebelum ini 1,297,825 (1,980,493) – –

(445,977) (266,604) – –

535,581 965,479 – –

Cukai pendapatan domestik dikira pada kadar cukai berkanun Malaysia sebanyak 27% (2006: 28%) daripada anggaran keuntungan boleh

ditaksir bagi tahun tersebut. Kadar cukai berkanun domestik telah dikurangkan kepada 27% untuk tahun taksiran semasa 2007 dan kepada

26% berkuatkuasa tahun taksiran 2008. Pengiraan cukai tertunda pada 31 Januari 2007 mencerminkan perubahan ini. Anak-anak syarikat

tertentu yang mempunyai modal saham berbayar kurang daripada RM2.5 juta layak mendapat kadar cukai berkanun yang dikurangkan

kepada 20% (2006: 20%) atas RM500,000 (2006: RM500,000) yang pertama daripada anggaran keuntungan yang boleh ditaksir bagi tahun

tersebut.

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9. BELANJA CUKAI PENDAPATAN (SAMB.)

Penyesuaian perbelanjaan cukai pendapatan pada penyata penyesuaian ke atas (kerugian)/keuntungan sebelum cukai pada kadar cukai

pendapatan berkanun dengan perbelanjaan cukai pendapatan pada kadar efektif cukai pendapatan yang dikuatkuasakan oleh Kumpulan

dan Syarikat adalah seperti berikut:

2007 2006

RM RM

Kumpulan

(Kerugian)/keuntungan sebelum cukai (67,870,608) 10,425,810

Cukai pada kadar cukai berkanun Malaysia 27% (2006: 28%) (18,325,064) 2,919,227

Kesan pendapatan tertakluk kepada kadar cukai 20% (25,703) –

Kesan pendapatan tidak tertakluk kepada cukai (44,961) (1,343,200)

Kesan perubahan kadar cukai ke atas baki awal cukai tertunda (793,229) –

Kesan perbelanjaan tidak boleh ditolak bagi tujuan cukai 4,500,378 732,146

Penggunaan elaun pelaburan semula belum diserap (1,164,163) (1,496,314)

Penggunaan elaun modal belum diserap – (162,089)

Penggunaan kerugian cukai yang sebelum ini tidak diiktiraf – (19,705)

Aset cukai tertunda tidak diiktiraf dalam tahun semasa 14,842,486 2,403,937

Kurangan/(lebihan) peruntukan cukai pendapatan pada tahun-tahun sebelum ini 248,012 (88,030)

Kurangan/(lebihan) peruntukan cukai tertunda pada tahun-tahun sebelum ini 1,297,825 (1,980,493)

Belanja cukai pendapatan bagi tahun semasa 535,581 965,479

Syarikat

(Kerugian)/keuntungan sebelum cukai (45,848,397) 3,679,088

Cukai pada kadar cukai berkanun Malaysia 27% (2006: 28%) (12,379,067) 1,030,145

Kesan ke atas pendapatan yang tidak tertakluk kepada cukai (1,024,917) (2,276,400)

Kesan ke atas perbelanjaan yang tidak boleh ditolak bagi tujuan cukai 7,803,314 241,561

Penggunaan elaun modal belum diserap – (162,089)

Aset cukai tertunda tidak diiktiraf dalam tahun semasa 5,600,670 1,166,783

Belanja cukai pendapatan bagi tahun semasa – –

Penjimatan cukai dalam tahun kewangan hasil daripada:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Penggunaan kerugian cukai pada tahun semasa 234,360 257,900 – –

Penggunaan kerugian cukai yang sebelum ini tidak diiktiraf – 19,705 – –

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10. (KERUGIAN)/PEROLEHAN SESAHAM

(a) Asas:

(Kerugian)/perolehan sesaham asas dikira dengan membahagikan (kerugian)/keuntungan pada tahun semasa bagi para pemegang

ekuiti biasa Syarikat dengan purata wajaran bilangan saham biasa yang diterbitkan sepanjang tahun semasa.

2007 2006

RM RM

(Kerugian)/keuntungan tahun semasa bagi para pemegang ekuiti biasa Syarikat (56,274,131) 9,543,412

Purata wajaran bilangan saham biasa dalam terbitan 72,775,737 70,144,158

(Kerugian)/perolehan asas sesaham (sen) (77.33) 13.61

(b) Dicairkan:

Bagi tujuan pengiraan perolehan sesaham dicairkan, (kerugian)/keuntungan tahunan bagi para pemegang ekuiti biasa Syarikat dan

purata wajaran bilangan saham biasa dalam terbitan sepanjang tahun kewangan telah dilaraskan untuk mengambil kira kesan-kesan

pencairan semua potensi saham biasa, iaitu opsyen saham yang diberikan kepada para pekerja.

2007 2006

RM RM

(Kerugian)/keuntungan tahun semasa bagi para pemegang ekuiti biasa Syarikat (56,274,131) 9,543,412

Purata wajaran bilangan saham biasa dalam terbitan 72,775,737 70,144,158

Kesan kecairan:

Opsyen saham * – –

Purata wajaran terlaras bilangan saham biasa dalam terbitan dan yang boleh diterbitkan 72,775,737 70,144,158

(Kerugian)/perolehan dicairkan sesaham (sen) (77.33) 13.61

* Kesan kecairan hasil daripada pertukaran opsyen yang diandaikan di bawah ESOS Syarikat adalah anti-pencairan.

11. DIVIDEN

Amaun Dividen bersih sesaham

2007 2006 2007 2006

RM RM Sen Sen

Diiktiraf dalam tahun:

Dividen akhir dikecualikan cukai untuk 2005 sebanyak 8%

ke atas 72,775,737 saham biasa diisytiharkan

pada 29 Mac 2005 – 5,822,059 – 8

Dividen akhir dikecualikan cukai untuk 2006 sebanyak 5%

ke atas 72,775,737 saham biasa diluluskan pada

28 Mac 2006 3,638,787 – 5 –

3,638,787 5,822,059 5 8

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31 Januari 2007

12. HARTANAH, LOJI DAN PERALATAN

Loji, Mesin, Perabot,

Kelengkapan Kelengkapan,

Elektrik, Peralatan,

Tanah Peralatan Ubahsuai,

Pajakan Kilang dan Komputer, dan

Jangka Perkakas Kenderaan

Panjang Bangunan Aplikasi Bermotor Jumlah

RM RM RM RM RM

Kumpulan

Kos

Pada 1 Februari 2006 24,454,624 22,367,384 185,029,537 11,403,294 243,254,839

Penambahan 726,635 – 1,337,357 1,039,276 3,103,268

Pelupusan – – (97,182) (672,204) (769,386)

Hapuskira – – (1,673,290) (872,207) (2,545,497)

Pada 31 Januari 2007 25,181,259 22,367,384 184,596,422 10,898,159 243,043,224

Susutnilai dan rosotnilai

terkumpul

Pada 1 Februari 2006 1,451,650 4,045,324 84,335,480 5,806,182 95,638,636

Susutnilai bagi tahun diiktiraf di dalam

penyata pendapatan 249,588 455,165 13,754,454 1,401,775 15,860,982

Pelupusan – – (9,585) (405,358) (414,943)

Hapuskira – – (432,354) (546,250) (978,604)

Rugi rosotnilai diiktiraf di dalam

penyata pendapatan 360,640 1,433,133 34,954,148 176,016 36,923,937

Pada 31 Januari 2007 2,061,878 5,933,622 132,602,143 6,432,365 147,030,008

Dianalisis sebagai:

Susutnilai terkumpul 1,701,238 4,500,489 97,647,995 6,256,349 110,106,071

Rugi rosotnilai terkumpul 360,640 1,433,133 34,954,148 176,016 36,923,937

2,061,878 5,933,622 132,602,143 6,432,365 147,030,008

Nilai dibawa bersih

Pada 31 Januari 2007 23,119,381 16,433,762 51,994,279 4,465,794 96,013,216

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31 Januari 2007

12. HARTANAH, LOJI DAN PERALATAN (SAMB.)

Loji, Mesin, Perabot,

Kelengkapan Kelengkapan,

Elektrik, Peralatan,

Tanah Peralatan Ubahsuai,

Pajakan Kilang dan Komputer, dan

Jangka Perkakas Kenderaan

Panjang Bangunan Aplikasi Bermotor Jumlah

RM RM RM RM RM

Kumpulan (Samb.)

Kos

Pada 1 Februari 2005 21,217,709 18,454,722 139,164,177 10,952,280 189,788,888

Penambahan 3,236,915 3,912,662 54,907,523 2,534,768 64,591,868

Pelupusan – – (8,910,941) (985,874) (9,896,815)

Hapuskira – – (131,222) (1,097,880) (1,229,102)

Pada 31 Januari 2006 24,454,624 22,367,384 185,029,537 11,403,294 243,254,839

Susutnilai terkumpul

Pada 1 Februari 2005 1,213,313 3,610,377 80,921,948 5,912,612 91,658,250

Susutnilai bagi tahun:

– Diiktiraf di dalam

penyata pendapatan 238,337 434,947 12,136,863 1,579,905 14,390,052

– Dipermodalkan di dalam

perbelanjaan pembangunan – – 25,162 – 25,162

Pelupusan – – (8,683,569) (978,129) (9,661,698)

Hapuskira – – (64,924) (708,206) (773,130)

Pada 31 Januari 2006 1,451,650 4,045,324 84,335,480 5,806,182 95,638,636

Nilai dibawa bersih

Pada 31 Januari 2006 23,002,974 18,322,060 100,694,057 5,597,112 147,616,203

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31 Januari 2007

12. HARTANAH, LOJI DAN PERALATAN (SAMB.)

Perabot,

Kelengkapan,

Loji, Peralatan,

Mesin, Ubahsuai,

dan Komputer, dan

Tanah Peralatan Kenderaan

Pajakan Bangunan Kilang Bermotor Jumlah

RM RM RM RM RM

Syarikat

Kos

Pada 1 Februari 2006 16,571,044 2,265,637 74,051 2,967,106 21,877,838

Penambahan – – – 521,759 521,759

Pelupusan – – – (350,939) (350,939)

Hapuskira – – (519) (116,888) (117,407)

Pada 31 Januari 2007 16,571,044 2,265,637 73,532 3,021,038 21,931,251

Susutnilai dan rosotnilai terkumpul

Pada 1 Februari 2006 885,806 463,361 3,941 1,438,237 2,791,345

Susutnilai bagi tahun diiktiraf di dalam

penyata pendapatan 168,934 45,313 10,728 435,284 660,259

Pelupusan – – – (176,546) (176,546)

Hapuskira – – (519) (66,004) (66,523)

Rugi rosotnilai diiktiraf di dalam

penyata pendapatan 360,640 – – – 360,640

Pada 31 Januari 2007 1,415,380 508,674 14,150 1,630,971 3,569,175

Dianalisa sebagai:

Susutnilai terkumpul 1,054,740 508,674 14,150 1,630,971 3,208,535

Rugi rosotnilai terkumpul 360,640 – – – 360,640

1,415,380 508,674 14,150 1,630,971 3,569,175

Nilai dibawa bersih

Pada 31 Januari 2007 15,155,664 1,756,963 59,382 1,390,067 18,362,076

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31 Januari 2007

12. HARTANAH, LOJI DAN PERALATAN (SAMB.)

Perabot,

Kelengkapan,

Loji, Peralatan,

Mesin, Ubahsuai,

dan Komputer, dan

Tanah Peralatan Kenderaan

Pajakan Bangunan Kilang Bermotor Jumlah

RM RM RM RM RM

Syarikat (Samb.)

Kos

Pada 1 Februari 2005 16,571,044 2,265,637 11,800 1,832,915 20,681,396

Penambahan – – – 1,252,181 1,252,181

Pindahan daripada anak syarikat – – 62,251 58,625 120,876

Pelupusan – – – (176,615) (176,615)

Pada 31 Januari 2006 16,571,044 2,265,637 74,051 2,967,106 21,877,838

Susutnilai terkumpul

Pada 1 Februari 2005 716,872 418,048 2,027 1,250,855 2,387,802

Susutnilai bagi tahun diiktiraf

di dalam penyata pendapatan 168,934 45,313 1,914 340,996 557,157

Pelupusan – – – (153,614) (153,614)

Pada 31 Januari 2006 885,806 463,361 3,941 1,438,237 2,791,345

Nilai dibawa bersih

Pada 31 Januari 2006 15,685,238 1,802,276 70,110 1,528,869 19,086,493

(a) Pihak pengurusan Sapura-Schulz Hydroforming Sdn. Bhd., sebuah anak syarikat Kumpulan yang berada di dalam segmen pengilangan,

telah menjalankan penelitian ke atas amaun boleh pulih hartanah, loji dan peralatannya dalam tahun kewangan semasa berikutan

pertikaian ke atas tuntutan-tuntutan yang dibuat oleh pemegang sahamnya di Jerman ke atas Perjanjian Operasi Perniagaan dan

Perjanjian Perlesenan. Kesan terkumpul tuduhan-tuduhan dan pertikaian tersebut telah menghapuskan keyakinan dan kepercayaan

bersama dalam perhubungan perniagaan tersebut. Sebelum keputusan akhir ke atas pertikaian tersebut dibuat, Kumpulan telah

mengambil langkah berjaga-jaga dengan menyemak semula operasi perniagaan anak syarikat tersebut dan anak-anak syarikat yang

lain. Semakan semula tersebut membawa kepada pengiktirafan rugi rosotnilai sebanyak RM36,923,937 (Nota 6).

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31 januari 2007

12. HARTANAH, LOJI DAN PERALATAN (SAMB.)

(b) Sepanjang tahun kewangan, Kumpulan dan Syarikat telah memperolehi hartanah, loji dan peralatan masing-masing pada kos

agregat RM3,103,268 (2006: RM64,591,868) dan RM521,759 (2006: RM1,252,181), di mana RM596,134 (2006: RM782,725) dan

RM410,634 (2006: RM615,551) masing-masing telah diperolehi melalui sewa beli dan pajakan kewangan. Amaun dibawa bersih

hartanah, loji dan peralatan dipegang di bawah perjanjian sewa beli dan pajakan kewangan adalah seperti berikut:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Peralatan dan mesin kilang 410,540 – – –

Peralatan pejabat dan komputer 442,015 65,560 395,656 –

Kenderaan bermotor 1,144,718 1,793,389 533,284 727,071

1,997,273 1,858,949 928,940 727,071

Butiran mengenai terma-terma dan syarat perjanjian sewa beli dan pajakan kewangan tersebut dijelaskan di Nota 24.

(c) Amaun dibawa bersih hartanah, loji dan peralatan yang dicagarkan sebagai sekuriti untuk pinjaman (Nota 23) adalah seperti

berikut:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Tanah pajakan 15,051,021 17,014,996 11,188,274 11,315,859

Bangunan 8,997,414 6,829,062 – –

Loji dan mesin 38,010,763 47,554,110 – –

Peralatan pejabat dan komputer – 75,010 – –

62,059,198 71,473,178 11,188,274 11,315,859

13. PERBELANJAAN PEMBANGUNAN

Kumpulan

2007 2006

RM RM

Kos

Pada 1 Februari 2006/2005 13,303,893 11,603,958

Ditanggung dalam tahun semasa 1,075,686 2,612,521

Dipindahkan ke inventori – (772,430)

Dihapuskira (10,811) (140,156)

Pada 31 Januari 2007/2006 14,368,768 13,303,893

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31 Januari 2007

13. PERBELANJAAN PEMBANGUNAN (SAMB.)

Kumpulan

2007 2006

RM RM

Pelunasan Terkumpul

Pada 1 Februari 2006/2005 5,474,211 3,633,196

Pelunasan 2,065,168 1,841,015

Pada 31 Januari 2007/2006 7,539,379 5,474,211

Nilai Dibawa Bersih 6,829,389 7,829,682

Termasuk di dalam perbelanjaan pembangunan ditanggung dalam tahun kewangan sebelum ini adalah susutnilai loji dan peralatan

sebanyak RM25,162.

14. PELABURAN DALAM ANAK-ANAK SYARIKAT

Syarikat

2007 2006

RM RM

Saham tidak disebutharga, pada kos 61,439,524 76,758,636

Tolak : Kerugian rosotnilai terkumpul (32,481,646) (4,840,396)

28,957,878 71,918,240

Butiran anak-anak syarikat, di mana kesemuanya diperbadankan di Malaysia, adalah seperti berikut:

Kepentingan Efektif

Kumpulan

Nama Syarikat Aktiviti-aktiviti Utama 2007 2006

% %

Dimiliki oleh Syarikat

Sapura Machining Corporation Sdn. Bhd. Perdagangan produk-produk mesin bernilai 100 100

tambah tinggi untuk industri automotif

Asian Automotive Steels Sdn. Bhd. Mengilang dan menjual batang penstabil dan batang 100 100

keluli berstruktur gred tinggi melalui proses

penarikan untuk industri-industri automotif,

elektronik dan elektrik

Sapura Automotive Industries Sdn. Bhd. Mengilang dan menjual lingkaran spring, penyerap 100 100

hentak dan pemasangan topang untuk

industri automotif

Metal Formers Sdn. Bhd. Perdagangan produk kimpalan logam berketepatan 100 100

tinggi untuk industri-industri automotif dan pertahanan

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31 Januari 2007

14. PELABURAN DALAM ANAK-ANAK SYARIKAT (SAMB.)

Kepentingan Efektif

Kumpulan

Nama Syarikat Aktiviti-aktiviti Utama 2007 2006

% %

Dimiliki oleh Syarikat

Automotive Specialist Centre Sdn. Bhd. Tidak aktif 100 100

Sapura Brake Technologies Sdn. Bhd. Mengilang, membekal dan menjual sistem 100 100

brek untuk industri automotif

Sapura Technical Centre Sdn. Bhd. Merekabentuk dan mengilang alatan, jig dan acuan 100 100

dengan bantuan komputer dan memberi

perkhidmatan kejuruteraan di dalam merekabentuk,

modifikasi dan fabrikasi sub-sistem/sistem untuk

digunakan di dalam pengeluaran dan ujian

Isencorp Sdn. Bhd. Perdagangan dan penyediaan perkhidmatan servis 100 100

automobil

Sapura-Schulz Hydroforming Sdn. Bhd. Mengilang dan menjual ‘butt weld fittings’ untuk industri 75 75

minyak dan gas

Subang Properties Sdn. Bhd. Tidak aktif 51.68 51.68

Dimiliki oleh Metal Formers Sdn. Bhd.

Awaltek Sdn. Bhd. Tidak aktif 100 100

Pengurangan saham anak syarikat

Dalam tahun kewangan semasa, Subang Properties Sdn. Bhd. (“SPSB”) telah mengurangkan modal saham berbayar dan diterbitkannya

daripada RM36,850,674 kepada RM184,253 dengan mengembalikan saham melalui pembayaran tunai sebanyak RM19,376,747 dan kontra

dengan amaun terhutang oleh pemegang sahamnya sebanyak RM17,289,674. Pengurangan modal saham tidak memberi kesan ke atas

kepentingan Sapura Industrial Berhad di dalam SPSB.

Pengurangan modal dalam SPSB telah memberi kesan berikut ke atas keputusan kewangan Syarikat.

2007

RM

Pembayaran balik tunai 2,658,906

Kontra baki antara syarikat 16,289,674

Jumlah terimaan 18,948,580

Tolak: kos pelaburan (15,319,111)

Keuntungan atas pengembalian modal oleh anak syarikat 3,629,469

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31 Januari 2007

15. PELABURAN DALAM SYARIKAT BERSEKUTU

Kumpulan

2007 2006

RM RM

Saham tidak disebutharga, pada kos 300,000 300,000

Bahagian rezab selepas perolehan (300,000) (300,000)

– –

Dianalisis sebagai:

Bahagian aset bersih – –

Butiran syarikat bersekutu, yang diperbadankan di Malaysia, seperti berikut:

Kepentingan Efektif

Kumpulan

Nama Syarikat Aktiviti-aktiviti Utama 2007 2006

% %

Ciri Tegap Sdn. Bhd.* Pengilangan dan penjualan produk-produk 33 33

kimpalan logam berketepatan tinggi

* Diaudit oleh firma audit selain daripada Ernst & Young

16. LAIN-LAIN PELABURAN

Kumpulan

2007 2006

RM RM

Saham tidak disebutharga di Malaysia, pada kos 117,600 117,600

Tolak : Kerugian rosotnilai terkumpul (117,600) (117,600)

– –

17. INVENTORI

Kumpulan

2007 2006

RM RM

Pada kos

Bahan, komponen dan alat ganti 21,507,984 25,371,896

Bahan-bahan kegunaan 2,741,690 3,802,750

Kerja dalam proses 2,017,624 5,174,090

Barangan siap 3,327,847 7,549,497

29,595,145 41,898,233

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31 Januari 2007

18. AMAUN TERHUTANG OLEH SYARIKAT BERKAITAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Amaun terhutang oleh:

Syarikat induk – 26,521 – –

Syarikat-syarikat berkaitan 120,420 235,834 – –

Anak-anak syarikat – – 22,307,634 21,223,694

120,420 262,355 22,307,634 21,223,694

Tolak: Peruntukan hutang ragu – – (16,560,734) (10,679,718)

120,420 262,355 5,746,900 10,543,976

Syarikat-syarikat berkaitan merujuk kepada syarikat-syarikat di dalam kumpulan syarikat Sapura Holdings Sdn. Bhd..

Amaun terhutang oleh pihak-pihak berkaitan adalah tanpa faedah dan perlu dibayar balik atas permintaan. Semua hutang oleh pihak-

pihak berkaitan adalah tidak bercagar dan akan dibayar secara tunai.

Butiran lanjut mengenai transaksi-transaksi pihak berkaitan dijelaskan di Nota 32.

19. PENGHUTANG PERNIAGAAN DAN LAIN-LAIN PENGHUTANG

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Penghutang perniagaan

Pihak-pihak ketiga 26,848,032 44,520,094 – –

Syarikat-syarikat berkaitan 5,809,429 8,516,082 – –

32,657,461 53,036,176 – –

Tolak: Peruntukan hutang ragu

Pihak-pihak ketiga (155,165) (213,981) – –

Syarikat-syarikat berkaitan (5,709,377) – – –

(5,864,542) (213,981) – –

Penghutang perniagaan, bersih 26,792,919 52,822,195 – –

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31 Januari 2007

19. PENGHUTANG PERNIAGAAN DAN LAIN-LAIN PENGHUTANG (SAMB.)

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Lain-lain penghutang

Deposit-deposit 667,920 919,907 139,985 256,450

Pendahuluan 105,506 310,998 21,219 51,079

Prabayar 1,084,587 1,162,319 54,156 16,175

Lain-lain penghutang 2,293,140 4,464,495 877,554 764,569

Amaun terhutang oleh syarikat bersekutu 230,821 616,354 – –

Cukai boleh pulih 1,085,412 1,613,889 32,203 32,203

5,467,386 9,087,962 1,125,117 1,120,476

Tolak: Peruntukan hutang ragu – (151,780) – –

Lain-lain penghutang, bersih 5,467,386 8,936,182 1,125,117 1,120,476

32,260,305 61,758,377 1,125,117 1,120,476

(a) Risiko kredit

Penghutang perniagaan adalah tanpa faedah. Tempoh biasa hutang perniagaan adalah di antara 30 hingga 90 hari. Tempoh hutang

perniagaan lain ditaksir dan diluluskan berdasarkan kes demi kes. Baki tertunggak melebihi masa disemak semula dengan kerap oleh

pengurusan atasan.

Pada tarikh lembaran imbangan, Kumpulan mempunyai risiko kredit yang ketara dalam bentuk baki-baki tertunggak daripada

3 kumpulan (2006: 2) penghutang mewakili 86% (2006: 74%) daripada jumlah penghutang perniagaan.

20. TUNAI DAN TUNAI SETARA

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Tunai di tangan dan di bank 3,709,903 5,192,198 79,895 49,389

Deposit-deposit dengan bank berlesen 2,800,000 21,390,542 – –

Baki tunai dan bank 6,509,903 26,582,740 79,895 49,389

Tolak: Overdraf bank (Nota 23) (6,114,800) (4,992,858) (1,332,726) (2,127,700)

Tunai dan tunai setara 395,103 21,589,882 (1,252,831) (2,078,311)

Purata wajaran kadar faedah efektif dan purata tempoh matang deposit-deposit dengan bank berlesen pada tarikh lembaran imbangan

adalah 3.1% (2006: 2.45%) setahun dan 30 hari (2006: 30 hari).

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31 Januari 2007

21. FAEDAH PEKERJA

(a) Obligasi Faedah Persaraan

Kumpulan menjalankan satu Skim Faedah Persaraan (“Skim”) yang ditentukan, tanpa pembiayaan, untuk pekerja-pekerja yang layak.

Obligasi Kumpulan di bawah Skim ini ditentukan berdasarkan penilaian aktuarial oleh penilai bebas bertarikh 8 Mac 2007. Di bawah

Skim ini, pekerja-pekerja layak mendapat faedah persaraan dalam julat di antara 46% dan 100% daripada gaji terakhir mereka

setelah mencapai umur persaraan 55 tahun.

Amaun yang diiktiraf dalam lembaran imbangan adalah seperti berikut:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Nilai kini obligasi faedah tanpa pembiayaan yang

ditentukan, mewakili liabiliti bersih 1,454,071 1,238,680 167,413 146,836

Dianalisis sebagai:

Bukan semasa 1,454,071 1,238,680 167,413 146,836

Amaun yang diiktiraf dalam penyata pendapatan adalah seperti berikut:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Kos perkhidmatan semasa 146,130 – 12,499 –

Kos faedah 69,261 – 8,078 –

Jumlah, termasuk di dalam faedah pekerja 215,391 – 20,577 –

Pergerakan di dalam liabiliti bersih dalam tahun semasa adalah seperti berikut:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Pada awal tahun 1,238,680 1,238,680 146,836 146,836

Diiktiraf dalam penyata pendapatan 215,391 – 20,577 –

Pada akhir tahun 1,454,071 1,238,680 167,413 146,836

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31 Januari 2007

21. FAEDAH PEKERJA (SAMB.)

(a) Obligasi Faedah Persaraan (Samb.)

Andaian-andaian aktuarial utama yang digunakan:

2007 2006

% %

Kadar diskaun 5.5 5.5

Kadar kenaikan gaji yang dijangkakan

– Eksekutif 5.5 5.5

– Bukan eksekutif 5.5 5.5

Andaian-andaian berkenaan mortaliti masa hadapan adalah berdasarkan statistik yang diumumkan dan jadual mortaliti.

(b) Skim Opsyen Saham Pekerja (“ESOS”)

ESOS tersebut ditadbir oleh Undang-undang Kecil baru yang telah diluluskan oleh para pemegang saham di Mesyuarat Agung Luar

Biasa pada 12 Januari 2005.

Ciri-ciri utama Undang-undang Kecil tersebut adalah seperti berikut:

(i) Jumlah bilangan saham yang akan diterbitkan di bawah ESOS mestilah tidak melebihi 15% secara agregat daripada modal

saham diterbitkan dan berbayar Syarikat pada sebarang masa di sepanjang tempoh ESOS tersebut.

(ii) Jumlah bilangan opsyen yang dianugerahkan kepada para pekerja yang layak yang merupakan pengarah eksekutif dan

pengurusan kanan Kumpulan mestilah tidak melebihi 50% daripada jumlah opsyen saham yang sedia ada di bawah ESOS.

(iii) Jumlah bilangan opsyen yang dianugerahkan kepada para pekerja yang layak yang memegang 20% atau lebih modal saham

diterbitkan dan berbayar Syarikat, sama ada secara perseorangan atau berkumpulan melalui orang yang berkaitan, mestilah

tidak melebihi 10% daripada jumlah opsyen saham yang sedia ada di bawah ESOS.

(iv) Tarikh berkuatkuasa ESOS tersebut adalah 10 Mei 2001 dan akan berkuatkuasa untuk tempoh masa lima (5) tahun

walaubagaimanapun tertakluk kepada perlanjutan atas budi bicara Jawatankuasa ESOS untuk tempoh sehingga lima (5) tahun

bermula selepas tarikh tamat tempoh lima (5) tahun yang asal.

(v) Setiap opsyen yang dianugerahkan memberikan hak kepada pekerja yang layak untuk melanggan saham-saham baru bernilai

RM1.00 setiap satu dalam Syarikat. Harga setiap saham yang mana pekerja yang layak tersebut berhak untuk melanggan setiap

satu saham di bawah opsyen mestilah purata pasaran saham Syarikat seperti dinyatakan dalam Senarai Rasmi Harian yang

dikeluarkan oleh Bursa Malaysia Securities Berhad bagi lima (5) hari pasaran sebelum tarikh tawaran.

(vi) Bilangan saham ESOS berkenaan opsyen, harga opsyen, bilangan minimum saham yang akan dilaksanakan di dalam suatu tahun

dan kaedah perlaksanaan opsyen tersebut setakat mana opsyen tersebut masih lagi belum dilaksanakan mungkin dilaraskan

berikutan sebarang perubahan dalam modal saham diterbitkan Syarikat melalui terbitan hak, terbitan bonus, penyatuan,

pembahagian atau pengurangan modal saham Syarikat dibuat oleh Syarikat semasa tempoh tersebut.

(vii) Saham-saham di bawah opsyen ESOS mestilah kekal tidak diterbitkan sehingga opsyen dilaksanakan dan mestilah ketika

diperuntukkan nanti mempunyai taraf yang sama (“pari passu”) dalam semua segi dengan saham-saham sedia ada Syarikat,

justeru buat masa ini, ia tidak memberikan hak kepada pemegangnya untuk menerima sebarang hak atau sebarang dividen

atau sebarang pengagihan yang diisytiharkan kepada pemegang saham Syarikat pada tarikh sebelum peruntukan saham-saham

ESOS tersebut.

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21. FAEDAH PEKERJA (SAMB.)

(b) Skim Opsyen Saham Pekerja (“ESOS”) (Samb.)

Maklumat berkenaan bilangan opsyen di bawah ESOS pada harga perlaksanaan RM1.00 sesaham di mana ia boleh dikuatkuasakan di

antara 10 Mei 2001 dan 9 Mei 2011 adalah seperti berikut:

Bilangan Opsyen Saham

2007 2006

Pada awal/akhir tahun 660,000 660,000

Tiada opsyen saham yang telah dianugerahkan, dilaksanakan, ataupun luput sepanjang tahun kewangan semasa dan tahun kewangan

sebelumnya.

22. PERUNTUKAN

Syarikat

2007 2006

RM RM

Peruntukan jaminan korporat 9,710,000 –

23. PINJAMAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Pinjaman jangka pendek

Bercagar:

Pinjaman berjangka 8,315,618 14,047,213 1,878,684 4,221,531

Tidak bercagar:

Overdraf bank 6,114,800 4,992,858 1,332,726 2,127,700

Kemudahan stok lantai – 198,598 – –

Penerimaan jurubank 12,546,000 12,124,000 116,000 3,116,000

Kredit pusingan 19,900,000 14,700,000 9,200,000 7,700,000

Pinjaman berjangka 2,820,000 – 2,820,000 –

Sewa beli belum bayar (Nota 24) 625,677 627,982 239,589 157,133

42,006,477 32,643,438 13,708,315 13,100,833

50,322,095 46,690,651 15,586,999 17,322,364

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23. PINJAMAN (SAMB.)

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Pinjaman jangka panjang

Bercagar:

Pinjaman berjangka 23,436,086 41,040,647 650,770 14,747,929

Tidak bercagar:

Pinjaman berjangka 10,710,000 – 10,710,000 –

Sewa beli belum bayar (Nota 24) 1,330,310 1,267,716 828,575 511,310

12,040,310 1,267,716 11,538,575 511,310

35,476,396 42,308,363 12,189,345 15,259,239

Jumlah pinjaman

Overdraf bank (Nota 20) 6,114,800 4,992,858 1,332,726 2,127,700

Kemudahan stok lantai – 198,598 – –

Kredit pusingan 19,900,000 14,700,000 9,200,000 7,700,000

Penerimaan jurubank 12,546,000 12,124,000 116,000 3,116,000

Pinjaman berjangka 45,281,704 55,087,860 16,059,454 18,969,460

Sewa beli belum bayar 1,955,987 1,895,698 1,068,164 668,443

85,798,491 88,999,014 27,776,344 32,581,603

Kematangan pinjaman (tidak termasuk sewabeli

dan pajakan kewangan):

Dalam tempoh 1 tahun 47,205,600 46,062,669 15,347,410 17,165,231

Melebihi 1 tahun dan kurang daripada 2 tahun 9,405,343 13,420,892 3,470,771 4,023,334

Melebihi 2 tahun dan kurang daripada 5 tahun 27,231,561 27,619,755 7,889,999 10,724,595

83,842,504 87,103,316 26,708,180 31,913,160

Purata wajaran kadar faedah efektif tahunan pada tarikh lembaran imbangan untuk pinjaman, tidak termasuk sewa beli dan pajakan ke-

wangan belum bayar, adalah seperti berikut:

Kumpulan Syarikat

2007 2006 2007 2006

% % % %

Overdraf bank 7.37 7.48 6.91 7.40

Kemudahan stok lantai – 7.25 – –

Kredit pusingan 8.04 4.68 11.52 4.60

Penerimaan jurubank 5.00 4.71 5.14 3.90

Pinjaman berjangka 6.21 7.02 5.46 8.30

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23. PINJAMAN (SAMB.)

Kredit pusingan, penerimaan jurubank dan pinjaman berjangka adalah dicagar oleh cagaran tetap utama terhadap bangunan dan tanah

pajakan jangka panjang, dan aset-aset tertentu Syarikat dan anak-anak syarikat tertentu seperti yang dinyatakan di dalam Nota 12(c).

Pinjaman tidak bercagar adalah dijamin oleh Syarikat dan cagaran negatif ke atas semua aset tetap dan lain-lain aset Syarikat.

24. LIABILITI SEWA BELI DAN PAJAKAN KEWANGAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Pembayaran minima masa hadapan:

Tidak lewat daripada 1 tahun 741,393 727,343 305,939 188,777

Lebih daripada 1 tahun dan tidak lewat daripada 2 tahun 686,794 569,884 302,149 161,518

Lebih daripada 2 tahun dan tidak lewat daripada 5 tahun 786,402 819,102 616,827 391,925

2,214,589 2,116,329 1,224,915 742,220

Tolak: Caj kewangan (258,602) (220,631) (156,751) (73,777)

1,955,987 1,895,698 1,068,164 668,443

Analisis nilai kini liabiliti pajakan kewangan:

Tidak lewat daripada 1 tahun 622,440 627,982 239,589 157,133

Lebih daripada 1 tahun dan tidak lewat daripada 2 tahun 605,490 507,405 252,487 140,432

Lebih daripada 2 tahun dan tidak lewat daripada 5 tahun 728,057 760,311 576,088 370,878

1,955,987 1,895,698 1,068,164 668,443

Dianalisis sebagai:

Perlu dibayar dalam 12 bulan 625,677 627,982 239,589 157,133

Perlu dibayar selepas 12 bulan 1,330,310 1,267,716 828,575 511,310

1,955,987 1,895,698 1,068,164 668,443

Kumpulan dan Syarikat mempunyai kontrak sewa beli untuk pelbagai jenis loji dan peralatan (Nota 12(b)). Pajakan ini mempunyai terma

pembaharuan semula tetapi tiada peruntukan opsyen untuk membeli dan peningkatan. Pembaharuan adalah opsyen spesifik kepada entiti

yang memegang pajakan tersebut. Tiada halangan diletakkan ke atas Syarikat dengan memasuki pajakan ini dan tiada tindakan telah

dilaksanakan untuk pembayaran sewa yang kontingen.

Liabiliti sewabeli dan pajakan Kumpulan dikenakan faedah pada kadar diantara 3.10% dan 10.84% setahun (2006: 3.25% dan 10.73%) dan

syarikat pada kadar 3.25% dan 9.76% (2006: 3.25% dan 10.69%) setahun.

Lain-lain maklumat mengenai risiko-risiko kewangan liabiliti sewa beli dan pajakan kewangan dijelaskan di Nota 33.

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25. CUKAI TERTUNDA

Kumpulan

2007 2006

RM RM

Pada permulaan tahun 10,922,789 11,189,393

Diiktiraf di dalam penyata pendapatan (Nota 9) (445,977) (266,604)

Pada akhir tahun 10,476,812 10,922,789

Dinyatakan selepas pelarasan yang sesuai adalah seperti berikut:

Aset cukai tertunda (1,571,055) (848,261)

Liabiliti cukai tertunda 12,047,867 11,771,050

10,476,812 10,922,789

Komponen dan perubahan aset dan liabiliti cukai tertunda pada tahun kewangan sebelum pelarasan adalah seperti berikut:

Aset Cukai Tertunda bagi Kumpulan

Elaun Modal

Belum

Diserap Peruntukan Jumlah

RM RM RM

Pada 1 Februari 2005 (323,553) (300,511) (624,064)

Diiktiraf di dalam penyata pendapatan 58,977 (283,174) (224,197)

Pada 31 Januari 2006 (264,576) (583,685) (848,261)

Diiktiraf di dalam penyata pendapatan (630,584) (92,210) (722,794)

Pada 31 Januari 2007 (895,160) (675,895) (1,571,055)

Liabiliti Cukai Tertunda bagi Kumpulan

Perbelanjaan

Elaun Modal Pembangunan

Bertambahan Dipermodalkan Jumlah

RM RM RM

Pada 1 Februari 2005 9,687,495 2,125,962 11,813,457

Diiktiraf di dalam penyata pendapatan (99,063) 56,656 (42,407)

Pada 31 Januari 2006 9,588,432 2,182,618 11,771,050

Diiktiraf di dalam penyata pendapatan 670,424 (393,607) 276,817

Pada 31 Januari 2007 10,258,856 1,789,011 12,047,867

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25. CUKAI TERTUNDA (SAMB.)

Aset cukai tertunda telah tidak diiktiraf terhadap butiran berikut:

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Elaun modal belum diserap 20,709,021 3,382,506 1,710,561 –

Kerugian cukai belum diguna 27,027,908 21,632,780 14,068,033 9,028,356

Lain-lain perbezaan sementara 32,250,526 – 13,992,985 –

79,987,455 25,015,286 29,771,579 9,028,356

Aset cukai tertunda telah tidak diiktiraf terhadap butiran di atas disebabkan ketidakpastian tentang kewujudan keuntungan boleh dicukai

di masa hadapan yang boleh digunakan terhadap butiran tersebut.

Kewujudan kerugian perniagaan belum digunakan dan elaun modal belum diserap untuk pelarasan dengan keuntungan boleh dicukai di

masa hadapan Syarikat dan anak-anak syarikatnya adalah tertakluk kepada tiadanya perubahan ketara di dalam pegangan saham Syarikat

dan anak-anak syarikatnya di bawah Seksyen 44(5A) & (5B) Akta Cukai Pendapatan, 1967.

26. AMAUN TERHUTANG KEPADA SYARIKAT-SYARIKAT BERKAITAN

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Amaun terhutang kepada:

Syarikat induk 1,181,138 557,311 1,170,722 545,820

Syarikat-syarikat berkaitan 4,228,524 3,781,772 2,643,076 2,005,668

Anak-anak syarikat – – 2,635,796 15,703,692

5,409,662 4,339,083 6,449,594 18,255,180

Syarikat-syarikat berkaitan merujuk kepada syarikat-syarikat di dalam kumpulan syarikat Sapura Holdings Sdn. Bhd..

Amaun terhutang kepada pihak-pihak berkaitan adalah tanpa faedah dan perlu dibayar atas permintaan. Amaun belum terima daripada

pihak-pihak berkaitan adalah tidak bercagar dan akan diselesaikan dengan tunai.

Butiran lanjut transaksi pihak berkaitan dijelaskan di Nota 32.

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27. PEMIUTANG PERNIAGAAN DAN LAIN-LAIN PEMIUTANG

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Pemiutang perniagaan 7,479,673 19,213,439 – –

Lain-lain belum bayar

Belanja terakru 3,008,772 4,361,615 1,143,320 1,226,533

Lain-lain belum bayar 7,164,414 16,315,360 918,156 47,430

Cukai semasa belum bayar 10,690 292,231 – –

Dividen belum bayar 60,570 37,339 60,570 37,339

10,244,446 21,006,545 2,122,046 1,311,302

17,724,119 40,219,984 2,122,046 1,311,302

Pemiutang perniagaan adalah tanpa faedah dan tempoh kredit biasa yang diberikan kepada Kumpulan adalah dalam lingkungan 30

hingga 60 hari (2006: 30 hingga 60 hari).

28. MODAL SAHAM

Bilangan Saham Biasa

Bernilai RM1 Setiap Satu Amaun

2007 2006 2007 2006

RM RM

Dibenarkan 100,000,000 100,000,000 100,000,000 100,000,000

Diterbitkan dan dibayar penuh:

Pada awal tahun 72,775,737 64,881,000 72,775,737 64,881,000

Terbitan saham secara tunai – 7,894,737 – 7,894,737

Pada akhir tahun 72,775,737 72,775,737 72,775,737 72,775,737

Dalam tahun kewangan lepas, Syarikat telah menerbitkan 7,894,737 saham-saham biasa baru bernilai RM1 sesaham pada harga terbitan

RM1.27 sesaham secara tunai, sebagai sebahagian balasan untuk pengambilalihan perniagaan ‘butt-weld fittings’. Premium saham yang

terhasil adalah berjumlah RM2,131,578 dan ia telah dikreditkan ke akaun saham premium.

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29. PELARASAN TAHUN TERDAHULU

(a) Aset Cukai Tertunda

Dalam tahun-tahun sebelum ini, Kumpulan telah mengiktiraf aset cukai tertunda ke atas elaun pelaburan semula dan elaun pelaburan

belum diserap. Pada tahun semasa, Kumpulan mengubah dasar perakaunannya dan justeru itu, aset cukai tertunda tidak lagi diiktiraf

ke atas elaun pelaburan semula dan elaun pelaburan belum diserap. Perubahan dalam dasar perakaunan ini telah diambil kira secara

retrospektif dan kesan-kesannya dijelaskan dalam Nota 29(c).

(b) Obligasi Faedah Persaraan

Kumpulan telah menjalankan penilaian aktuarial ke atas Pelan Faedah Persaraan Kumpulan yang dinilai oleh aktuarial bertauliah

pada 31 Januari 2006, (“tarikh penilaian”) dan tahun kewangan berakhir 31 Januari 2007 sejajar dengan FRS 119. Kesan menerima

pakai FRS 119 ini telah diambilkira secara retrospektif dan kesan-kesannya dijelaskan di Nota 29(c).

(c) Kesan-kesan Pelarasan Tahun Terdahulu

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Kesan ke atas keuntungan terkumpul:

Pada awal tahun, seperti yang dinyatakan sebelum ini 36,893,406 35,514,320 4,294,626 6,437,597

Kesan menerima pakai FRS 3 (Nota 2.3(a)) 5,272,339 – – –

42,165,745 35,514,320 4,294,626 6,437,597

Kesan perubahan dasar perakaunan:

Aset cukai tertunda (6,063,819) (8,406,086) – –

Obligasi faedah persaraan (1,238,680) (1,238,680) (146,836) (146,836)

(7,302,499) (9,644,766) (146,836) (146,836)

Pada awal tahun seperti dinyatakan semula 34,863,246 25,869,554 4,147,790 6,290,761

Kesan ke atas rugi bagi tahun semasa:

(Kerugian)/keuntungan bagi tahun sebelum

perubahan dasar perakaunan (56,058,740) 7,201,145 (45,827,820) 3,679,088

Kesan perubahan dasar perakaunan (215,391) 2,342,267 (20,577) –

(Kerugian)/keuntungan bagi tahun selepas

perubahan dasar perakaunan (56,274,131) 9,543,412 (45,848,397) 3,679,088

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29. PELARASAN TAHUN TERDAHULU (SAMB.)

(c) Kesan-kesan Pelarasan Tahun Terdahulu (Samb.)

Amaun-amaun perbandingan bagi Kumpulan dan Syarikat berikut telah dinyatakan semula:

Dinyatakan Dinyatakan

sebelum ini Pelarasan semula

RM RM RM

Pada 31 Januari 2006:

Kumpulan

Liabiliti cukai tertunda 4,858,970 6,063,819 10,922,789

Obligasi faedah persaraan – 1,238,680 1,238,680

Syarikat

Obligasi faedah persaraan – 146,836 146,836

Bagi tahun berakhir 31 Januari 2006:

Kumpulan

Cukai pendapatan 3,307,746 (2,342,267) 965,479

Keuntungan bagi tahun semasa 7,118,064 2,342,267 9,460,331

30. KOMITMEN MODAL

Kumpulan Syarikat

2007 2006 2007 2006

RM RM RM RM

Perbelanjaan modal

Hartanah, loji dan peralatan:

Diluluskan dan telah dikontrakkan 27,000 2,304,587 – –

31. LIABILITI LUARJANGKA

Syarikat

2007 2006

RM RM

Jaminan korporat diberikan kepada bank-bank untuk kemudahan kredit yang telah

diberikan kepada anak-anak syarikat (tidak bercagar) 93,740,777 115,910,623

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32. URUSNIAGA KETARA PIHAK BERKAITAN

Kumpulan Syarikat

2007 2006 2007 2006 RM RM RM RM

Syarikat induk

Yuran perkhidmatan korporat 1,153,202 1,336,858 1,153,202 1,336,858

Anak-anak syarikat

Belanja faedah – – 2,164,085 417,557

Belanja sewa – – 591,675 492,684

Pendapatan faedah – – (37,558) (90,136)

Yuran pengurusan daripada anak-anak syarikat – – (5,565,809) (6,901,687)

Pendapatan dividen daripada anak-anak syarikat – – – (21,745,000)

Pendapatan sewa – – (816,000) (771,200)

Pindahan hartanah, loji dan peralatan daripada

anak-anak syarikat – – – 120,876

Syarikat-syarikat di dalam Kumpulan Sapura Holdings Sdn. Bhd.

Penyelenggaraan komputer

– DataOne Sdn. Bhd. 327,183 785,240 327,183 785,240

Belanja sewa

– Merapi Sdn. Bhd. – 430,700 – –

– Sapura Resources Berhad 98,991 106,624 98,991 106,624

Para pengarah berpendapat bahawa urusniaga-urusniaga tersebut telah dibuat dalam urusan perniagaan biasa dan telah dilaksanakan

berdasarkan terma-terma dan syarat-syarat yang tidak mempunyai perbezaan ketara berbanding dengan urusniaga biasa dengan pihak

tidak berkaitan.

33. INSTRUMEN-INSTRUMEN KEWANGAN

(a) Dasar-dasar dan Objektif Pengurusan Risiko Kewangan

Dasar pengurusan risiko kewangan Kumpulan bertujuan memastikan adanya sumber-sumber kewangan yang mencukupi untuk

pembangunan perniagaan Kumpulan di samping mengurus risiko-risiko kadar faedah (untuk nilai saksama dan aliran tunai), tukaran

matawang asing, kecairan dan kreditnya. Kumpulan beroperasi di dalam lingkungan garis panduan yang jelas dan telah ditetapkan

dan diluluskan oleh Lembaga Pengarah dan menjadi dasar Kumpulan untuk tidak terlibat dalam urusniaga spekulatif.

(b) Risiko Kadar Faedah

Risiko utama kadar faedah Kumpulan merujuk kepada pinjaman berfaedah kerana Kumpulan telah tidak mempunyai aset berfaedah

jangka panjang pada 31 Januari 2007 dan 31 Januari 2006. Pelaburan di dalam aset-aset kewangan kebanyakkannya bersifat jangka

pendek dan sebahagian besarnya diletakkan di dalam simpanan tetap.

Kumpulan menguruskan pendedahannya terhadap kadar faedah dengan mengekalkan campuran pinjaman-pinjaman berfaedah

tetap dengan berubah. Kumpulan dengan aktif menyemak semula portfolio hutangnya, dengan mengambil kira tempoh pegangan

pelaburan dan sifat aset-asetnya. Strategi ini membenarkan ia mengambil kesempatan ke atas pembiayaan lebih murah dalam

persekitaran kadar faedah rendah dan mencapai tahap perlindungan terhadap risiko peningkatan kadar.

Maklumat mengenai tarikh-tarikh kematangan dan kadar-kadar faedah efektif aset-aset dan liabiliti-liabiliti kewangan dinyatakan di

nota-nota yang berkenaan.

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33. INSTRUMEN-INSTRUMEN KEWANGAN ((SAMB.)

(c) Risiko Tukaran Mata Wang Asing

Kumpulan beroperasi dalam negara. Walaubagaimanapun, sebahagian pembelian inventori, bahagian-bahagian mekanikal dan

jentera-jentera Syarikat, dan sesetengah jualan terdedah kepada pelbagai mata wang, terutamanya Yen Jepun, Euro, Dolar Amerika

Syarikat, Baht Thailand dan Dolar Singapura. Aset-aset dan liabiliti-liabiliti yang didenominasi dalam mata wang asing bersama

dengan jangkaan aliran tunai dari pembelian dan jualan berkemungkinan tinggi akan menyebabkan pendedahan kepada pertukaran

mata wang asing.

Dimana Kumpulan menjangkakan turun naik yang ketara dalam kadar tukaran, pendedahan matawang ketara terhadap Yen Jepun

dan Euro akan dilindungi oleh instrumen kewangan derivatif, iaitu kontrak-kontrak tukaran asing hadapan.

Pada 31 Januari 2007, tiada tukaran mata wang asing hadapan dimasuki oleh Kumpulan.

Aset-aset dan liabiliti-liabiliti kewangan bersih Kumpulan yang tidak dilindungi dan tidak didenominasi dalam Ringgit Malaysia adalah

seperti berikut:

Kumpulan

Dolar

Amerika Baht Yen

Syarikat Thailand Jepun Euro

RM RM RM RM

Pada 31 Januari 2007:

Pemiutang perniagaan 250,298 40,927 610,687 –

Lain-lain belum bayar – – 6,625 2,569

Penghutang perniagaan 179,128 – – 1,621

Lain-lain belum terima 106,111 – – 10,937

Pada 31 Januari 2006:

Pemiutang perniagaan 9,802,081 137,210 1,153,101 470,369

Lain-lain belum bayar 8,642,131 – 120,339 196,881

Penghutang perniagaan 24,314 – – –

(d) Risiko Kecairan

Kumpulan menguruskan profil kematangan hutang, aliran tunai operasi dan kesediaan dana bagi memastikan semua pembiayaan

semula, pembayaran balik dan pembiayaan dapat dipenuhi. Sebagai sebahagian daripada pengurusan kecairan keseluruhan,

Kumpulan mengekalkan jumlah tunai dan instrumen-instrumen boleh ditukar kepada tunai pada tahap yang mencukupi untuk

memenuhi keperluan modal kerjanya. Tambahan pula, Kumpulan berusaha untuk mengekalkan kesediaan kemudahan-kemudahan

perbankan pada tahap yang munasabah kepada kedudukan keseluruhan hutang.

(e) Risiko Kredit

Risiko-risiko kredit, atau risiko ketidakpembayaran pihak satu lagi, adalah dikawal dengan kelulusan permohonan kredit, had-had dan

prosedur-prosedur pemantauan. Risiko-risiko kredit adalah diminimumkan dan dipantau dengan menghadkan penglibatan Kumpulan

terhadap rakan-rakan perniagaan yang mempunyai keupayaan kredit yang tinggi. Penghutang perniagaan adalah sentiasa dipantau

melalui prosedur-prosedur laporan pengurusan Kumpulan.

Pada tarikh lembaran imbangan, Kumpulan mempunyai tumpuan ketara terhadap risiko kredit di dalam bentuk hutang tertunggak

daripada 3 kumpulan penghutang yang mewakili 86% (2006: 74%) daripada jumlah keseluruhan penghutang perniagaan.

Page 180: New Opportunities. Enhancing our core business

Laporan Tahunan 2007178

Nota-nota kepada Penyata Kewangan (Samb.)

31 Januari 2007

33. INSTRUMEN-INSTRUMEN KEWANGAN (SAMB.)

(f) Nilai Saksama

Amaun dibawa aset dan liabiliti kewangan Kumpulan dan Syarikat pada tarikh lembaran imbangan adalah menghampiri nilai

saksamanya kecuali yang berikut:

Kumpulan Syarikat

Amaun Nilai Amaun Nilai

Dibawa Saksama Dibawa Saksama

RM RM RM RM

Aset Kewangan

Pada 31 Januari 2007:

Terhutang oleh syarikat induk – * – –

Terhutang oleh syarikat-syarikat berkaitan 120,420 * – –

Terhutang oleh syarikat bersekutu 230,821 * – –

Terhutang oleh anak-anak syarikat – – 22,307,634 *

Pada 31 Januari 2006:

Terhutang oleh syarikat induk 26,521 * – –

Terhutang oleh syarikat-syarikat berkaitan 235,834 * – –

Terhutang oleh syarikat bersekutu 616,354 * – –

Terhutang oleh anak-anak syarikat – – 21,223,694 *

Liabiliti Kewangan

Pada 31 Januari 2007:

Terhutang kepada syarikat induk 1,181,138 * 1,170,722 *

Terhutang kepada syarikat-syarikat berkaitan 4,228,524 * 2,643,076 *

Terhutang kepada anak-anak syarikat – – 2,635,796 *

Sewa beli dan pajakan kewangan belum bayar 1,955,987 2,078,005 1,068,164 1,152,418

Pinjaman berjangka 45,281,704 42,564,341 16,059,454 14,717,670

Pada 31 Januari 2006:

Terhutang kepada syarikat induk 557,311 * 545,820 *

Terhutang kepada syarikat-syarikat berkaitan 3,781,772 * 2,005,668 *

Terhutang kepada anak-anak syarikat – – 15,703,692 *

Sewa beli dan pajakan kewangan belum bayar 1,895,698 1,960,905 668,443 692,834

Pinjaman berjangka 55,087,860 52,023,736 18,969,460 17,103,697

* Adalah tidak praktikal untuk menganggarkan nilai saksama bagi jumlah hutang oleh/(kepada) syarikat-syarikat berkaitan

terutamanya disebabkan kurangnya tempoh pembayaran tetap yang dimasuki oleh pihak-pihak yang terlibat dan tanpa melibatkan

kos yang berlebihan. Walaubagaimanapun, Kumpulan dan Syarikat tidak menjangkakan amaun dibawa yang direkodkan pada

tarikh lembaran imbangan akan berbeza secara ketara daripada nilai yang akhirnya akan diterima atau dibayar.

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Laporan Tahunan 2007 179

Nota-nota kepada Penyata Kewangan (Samb.)

31 Januari 2007

33. INSTRUMEN-INSTRUMEN KEWANGAN (SAMB.)

(f) Nilai Saksama (Samb.)

Kaedah dan andaian berikut digunakan untuk menganggarkan nilai-nilai saksama kelas instrumen kewangan berikut:

(i) Tunai dan Tunai Setara, Belum Terima, Belum Bayar dan Pinjaman Jangka Pendek

Amaun-amaun dibawa dianggarkan menghampiri nilai-nilai saksama disebabkan secara relatifnya kematangan yang berjangka

pendek instrumen-instrumen kewangan ini.

(ii) Pinjaman

Nilai saksama pinjaman dianggarkan dengan mendiskaunkan aliran tunai masa depan yang dijangkakan menggunakan kadar

faedah semasa untuk liabiliti-liabiliti yang mempunyai profil risiko yang sama.

34. MAKLUMAT SEGMEN

(a) Segmen-segmen Perniagaan:

Kumpulan dibahagikan kepada tiga segmen perniagaan utama:

(i) Pengilangan – mengilang dan membekal produk untuk industri automatif, elektronik dan elektrik dan mengilang ‘butt-weld

fittings’ untuk industri minyak dan gas;

(ii) Pemegangan pelaburan – pegangan pelaburan dan perkhidmatan pengurusan kepada anak-anak syarikat;

(iii) Perkhidmatan – jualan dan perkhidmatan selepas jualan automobil; dan

(iv) Lain-lain – penyediaan rekabentuk bantuan komputer dan mengilang sub-sistem/sistem untuk aplikasi di dalam pengeluaran

dan pengujian dan hartanah.

(b) Segmen-segmen Geografi

Operasi Kumpulan hanya dijalankan di Malaysia.

(c) Asas Agihan

Keputusan segmen, aset dan liabiliti termasuk item-item yang berkait secara langsung kepada suatu segmen dan juga item-item lain

yang boleh diagihkan secara munasabah. Item-item yang tidak boleh diagihkan terdiri daripada aset, liabiliti dan perbelanjaan korporat.

Pendapatan, perbelanjaan dan keputusan segmen termasuk perpindahan di antara segmen-segmen perniagaan. Perpindahan ini

dihapuskan semasa penyatuan.

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Laporan Tahunan 2007180

Nota-nota kepada Penyata Kewangan (Samb.)

31 Januari 2007

34. MAKLUMAT SEGMEN (SAMB.)

Segmen-segmen Perniagaan

Pegangan

Pengilangan Pelaburan Perkhidmatan Lain-lain Hapuskira Disatukan

RM RM RM RM RM RM

31 Januari 2007

Pendapatan

Luaran 166,001,481 – 522,211 – – 166,523,692

Antara segmen 6,502,291 5,565,809 60,929 – (12,129,029) –

Jumlah pendapatan 172,503,772 5,565,809 583,140 – (12,129,029) 166,523,692

Keputusan

Keputusan segmen,

mewakili untung/

(rugi) daripada

operasi (63,244,395) (43,685,298) (1,569,610) 269,427 46,516,133 (61,713,743)

Kos kewangan (6,156,865)

Cukai (535,581)

Kerugian bersih

bagi tahun semasa (68,406,189)

Aset

Aset segmen disatukan 166,666,458 75,861,866 213,997 1,336,374 (72,750,317) 171,328,378

Liabiliti

Liabiliti segmen

disatukan 145,776,675 46,225,397 14,955,381 6,434,333 (92,528,631) 120,863,155

Lain-lain maklumat

Perbelanjaan modal 2,548,454 521,759 – 33,055 – 3,103,268

Susutnilai 15,014,982 660,256 121,110 64,634 – 15,860,982

Pelunasan 2,065,168 – – – – 2,065,168

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Laporan Tahunan 2007 181

Nota-nota kepada Penyata Kewangan

31 Januari 2007

34. MAKLUMAT SEGMEN (SAMB.)

Segmen-segmen Perniagaan (Samb.)

Pegangan

Pengilangan Pelaburan Perkhidmatan Lain-lain Hapuskira Disatukan

RM RM RM RM RM RM

31 Januari 2006

Pendapatan

Luaran 161,113,613 – 11,400,134 893,979 – 173,407,726

Antara segmen 16,625,417 28,648,158 – 1,845,000 (47,118,575) –

Jumlah pendapatan 177,739,030 28,648,158 11,400,134 2,738,979 (47,118,575) 173,407,726

Keputusan

Keputusan segmen,

mewakili untung/

(rugi) daripada

operasi 18,855,369 5,710,314 (2,927,503) 923,159 (6,908,302) 15,653,037

Kos kewangan (4,927,227)

Bahagian keputusan

syarikat bersekutu (300,000)

Cukai (965,479)

Keuntungan selepas

cukai bagi tahun 9,460,331

Aset

Aset segmen disatukan 265,348,684 131,418,574 2,825,940 38,123,148 (151,768,756) 285,947,590

Liabiliti

Liabiliti segmen

disatukan 158,281,389 52,148,085 9,602,172 3,715,178 (78,027,274) 145,719,550

Lain-lain maklumat

Perbelanjaan modal 62,835,572 1,675,581 79,360 1,355 – 64,591,868

Susutnilai 13,382,025 557,156 413,898 62,777 (25,804) 14,390,052

Pelunasan 1,841,015 – – – – 1,841,015

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Annual Report 2007182 Annual Report 2007 Laporan Tahunan182

Shareholdings Statistics as at 21 May 2007

Statistik Pegangan Saham pada 21 Mei 2007

AnAlysis of shAreholdings / AnAlisA PegAngAn sAhAm

size of holdings

saiz Pegangan

no. of shares

Bilangan saham

% over Total shares

% dari Jumlah saham

no. of holders

Bilangan Pemegang

% over Total shares

% dari Jumlah saham

Less than / kurang daripada 100 1,376 0 36 0.72

100 to / hingga 1,000 219,006 0.30 276 5.55

1,001 to / hingga 10,000 12,059,966 16.57 4,163 83.68

10,001 to / hingga 100,000 11,040,033 15.17 473 9.51

100,001 to / hingga 3,638,786 11,559,885 15.88 25 0.50

3,638,787 & above / ke atas 37,895,471 52.08 2 0.04

Total / Jumlah 72,775,737 100.00 4,975 100.00

ThirTy lArgesT shAreholders / TigA Puluh PemegAng sAhAm TerBesAr

name of shareholders

nama Pemegang saham

No. of Shares

Bilangan Saham

%

%

1. Sapura Holdings Sdn. Bhd. 32,420,391 44.55

2. AMDB Berhad 5,475,080 7.52

3. Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir 1,661,250 2.28

4. Yeoh Kean Hua 1,570,000 2.16

5. Datuk Shahril bin Shamsuddin 1,426,875 1.96

6. DB (Malaysia) Nominee (Asing) Sdn. Bhd.

(BNP Paribas Nominees Singapore Pte. Ltd. for Capital Talent Profits Limited)

(BNP Paribas Nominees Singapore Pte. Ltd. untuk Capital Talent Profits Limited)

1,186,800 1.63

7. Citigroup Nominees (Asing) Sdn. Bhd.

Exempt An for Citibank NA, Singapore (Julius Baer)

Exempt An untuk Citibank NA, Singapura (Julius Baer)

1,000,000 1.37

8. Cimsec Nominees (Asing) Sdn. Bhd.

(CIMB Bank for San Tuan Sam) / (CIMB Bank untuk San Tuan Sam)

860,700 1.18

9. Shahriman bin Shamsuddin 663,175 0.91

10. Lee Siew Hoon 494,100 0.68

11. Lim Jack Sek 302,000 0.41

12. Soh Kok Heng 300,000 0.41

13. Sing Kong Wey 202,100 0.28

14. Ang Kai Chan 200,000 0.27

15. Lee See Jin 188,200 0.26

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183183Annual Report 2007 Laporan Tahunan

name of shareholders

nama Pemegang saham

No. of Shares

Bilangan Saham

%

%

16. Chan Teck Chye 150,000 0.21

17. TA Nominees (Tempatan) Sdn. Bhd.

(Pledged Securities Account for Phua Lee Ping) / (Sekuriti dicagarkan untuk Phua Lee Ping)

138,000 0.19

18. Universal Trustee (Malaysia) Berhad

Ronfield Limited

135,000 0.19

19. Ananda Krishna a/l Sithamberam Pillay 133,500 0.18

20. Public Nominees (Tempatan) Sdn. Bhd.

(Pledged Securities Account for Lee Kua Siah) / (Sekuriti dicagarkan untuk Lee Kua Siah)

130,000 0.18

21. Soh Boon Kiet 129,000 0.18

22. AIBB Nominess (Tempatan) Sdn Bhd

(Pledged Securities Account for Lau Kim Saw) / (Sekuriti dicagarkan untuk Lau Kim Saw) 125,000 0.17

23. Wong See @ Wong See Heaw 125,000 0.17

24. Chua Chooi Hong 119,085 0.16

25. Heng Huah Ker 113,000 0.16

26. Maziatul Fazilah binti Mahmood 107,000 0.15

27. Chong Teck Ngan 100,100 0.14

28. Citigroup Nominees (Tempatan) Sdn. Bhd.

(Pledged Securities Account for Rosli bin Othman) / (Sekuriti dicagarkan untuk Rosli bin Othman)

100,000 0.14

29. Public Nominees (Tempatan) Sdn. Bhd.

(Pledged Securities Account for Ong Kok Beng) / (Sekuriti dicagarkan untuk Ong Kok Beng) 97,000 0.13

30. Md. Shah bin Hussin 90,000 0.12

Total / Jumlah 49,742,356 68.35

suBsTAnTiAl shAreholders / PemegAng sAhAm uTAmA

Name of Shareholders

Nama Pemegang Saham

No. of Shares

Bilangan Saham

%

%

1. Sapura Holdings Sdn. Bhd. 32,420,391 44.55

2. AMDB Berhad 5,475,080 7.52

Total / Jumlah 37,895,471 52.07

ThirTy lArgesT shAreholders (ConT’d) / TigA Puluh PemegAng sAhAm TerBesAr (sAmB.)

Shareholdings Statistics as at 21 May 2007 (Cont’d.)

Statistik Pegangan Saham pada 21 Mei 2007 (Samb.)

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Annual Report 2007184 Annual Report 2007 Laporan Tahunan184

Particulars of PropertiesKeterangan Hartanah

Location Description/ Existing Use

Land Area Tenure/Year of Expiring

ApproximateAge of Building (years)

Net Book Value As at 31.01.2007 RM’000 / Date of Last Revaluation/ *Acquisition

Lokasi Keterangan/ Kegunaan Semasa

Keluasan Tanah Tempoh/Tahun Tamat Pajakan

Anggaran Usia Bangunan (tahun)

Nilai Buku BersihPada 31.01.2007 RM’000 / Tarikh Terakhir Penilaian Semula/*Pembelian

HS (M) 9725, PT No 11556Mukim Kajang, Daerah Hulu Langat Selangor Darul Ehsan

Industrial land /factory cum office

1.2141 ha. 99 year lease expiring on 29.09.2086

16 8,932 /08.03.1994

Postal address: No. 11, Jalan P/1, Seksyen 13 Kawasan Perindustrian Bangi43650 Bandar Baru Bangi Selangor Darul Ehsan

Tanah Perindustrian /kilang merangkappejabat

1.2141 ha. Pajakan 99 tahun tamat pada 29.09.2086

16 8,932 /08.03.1994

HS (D) 52700 & 52701PT No 40849 & 40850Bandar Baru Bangi Daerah Hulu Langat Selangor Darul Ehsan

Industrial land /factory cum office

6552m2 & 7241 m2 99 year lease expiring on19.08.2098

12 7,471 / *05.06.1992

Postal address: Lot 2 & 4, Jalan P/11Seksyen 10 Kawasan Perindustrian Bangi43650 Bandar Baru Bangi Selangor Darul Ehsan

Tanah Perindustrian /kilang merangkappejabat

6552m2 & 7241 m2 Pajakan 99 tahun tamat pada 19.08.2098

12 7,471 / *05.06.1992

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185185Annual Report 2007 Laporan Tahunan

Location Description/ Existing Use

Land Area Tenure/Year of Expiring

ApproximateAge of Building (years)

Net Book Value As at 31.01.2007 RM’000 / Date of Last Revaluation/ *Acquisition

Lokasi Keterangan/ Kegunaan Semasa

Keluasan Tanah Tempoh/Tahun Tamat Pajakan

Anggaran Usia Bangunan (tahun)

Nilai Buku BersihPada 31.01.2007 RM’000 / Tarikh Terakhir Penilaian Semula/*Pembelian

HS (D) 52726 & 52727PT No 40875 & 40876Bandar Baru Bangi Daerah Hulu LangatSelangor Darul Ehsan

Industrial land / factory cum office

2326m2 & 1833m2 99 year lease expiring on 19.08.2098

11 2,464 / *15.11.1994

Postal address: Lot 1 & 3, Jalan P/14Seksyen 10Kawasan Perindustrian Bangi43650 Bandar Baru BangiSelangor Darul Ehsan

Tanah Perindustrian /kilang merangkappejabat

2326m2 & 1833m2 Pajakan 99 tahun tamat pada 19.08.2098

11 2,464 / *15.11.1994

HS (M) 549, PT 98Mukim Bukit KatilDaerah Melaka TengahMelaka

Industrial land / factory cum office

5a.1r.15.2p 99 year leaseexpiring on30.05.2072

27 3,260 / *30.01.1995

Postal address: Lot 98, Jalan Usaha 7Kawasan Perindustrian Ayer Keroh 75450 Melaka

Tanah Perindustrian /kilang merangkappejabat

5a.1r.15.2p Pajakan 99 tahuntamat pada30.05.2072

27 3,260 / *30.01.1995

Particulars of Properties (Cont’d.)

Keterangan Hartanah (Samb.)

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Annual Report 2007186 Annual Report 2007 Laporan Tahunan186

Location Description/ Existing Use

Land Area Tenure/Year of Expiring

ApproximateAge of Building (years)

Net Book Value As at 31.01.2007 RM’000 / Date of Last Revaluation/ *Acquisition

Lokasi Keterangan/ Kegunaan Semasa

Keluasan Tanah Tempoh/Tahun Tamat Pajakan

Anggaran Usia Bangunan (tahun)

Nilai Buku BersihPada 31.01.2007 RM’000 / Tarikh Terakhir Penilaian Semula/*Pembelian

HS (D) 87682, PT No 56915 Seksyen 9, Bandar Baru Bangi Daerah Hulu LangatSelangor Darul Ehsan

Vacant industrial land

20,460.5m2 99 year lease expiring on 18.07.2103

Nil 5,652 /*12.06.2002

Postal address:Lot 5, Persiaran UsahawanTaman IKS, Seksyen 943650 Bandar Baru BangiSelangor Darul Ehsan

Tanah perindustrian kosong

20,460.5m2 Pajakan 99 tahuntamat pada18.07.2103

Tiada 5,652 /*12.06.2002

HS (D) 87683, PT No 56916 Seksyen 9, Bandar Baru Bangi Daerah Hulu LangatSelangor Darul Ehsan

Vacant industrial land

20,502.6m2 99 year lease expiring on18.07.2103

Nil 5,536/*01.11.2001

Postal address:Lot 7, Persiaran UsahawanTaman IKS, Seksyen 943650 Bandar Baru BangiSelangor Darul Ehsan

Tanah perindustrian kosong

20,502.6m2 Pajakan 99 tahuntamat pada18.07.2103

Tiada 5,536/*01.11.2001

Particulars of Properties (Cont’d.)

Keterangan Hartanah (Samb.)

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187187Annual Report 2007 Laporan Tahunan

Particulars of Properties (Cont’d.)

Keterangan Hartanah (Samb.)

Location Description/ Existing Use

Land Area Tenure/Year of Expiring

ApproximateAge of Building (years)

Net Book Value As at 31.01.2007 RM’000 / Date of Last Revaluation/ *Acquisition

Lokasi Keterangan/ Kegunaan Semasa

Keluasan Tanah Tempoh/Tahun Tamat Pajakan

Anggaran Usia Bangunan (tahun)

Nilai Buku BersihPada 31.01.2007 RM’000 / Tarikh Terakhir Penilaian Semula/*Pembelian

HS (D) 25354PT No 6733Mukim GurunDaerah Kuala Muda Kedah Darul Aman

Industrial land / factory cum office

49,824m2 99 year lease expiring on 06.02.2104

2 4,635/none

Postal address: Lot 58Kawasan Perindustrian Berat Gurun08300 Gurun Kedah Darul Aman

Tanah Perindustrian /kilang merangkappejabat

49,824m2 Pajakan 99 tahuntamat pada06.02.2104

2 4,635 /tiada

Postal address:Lot No 6, Jalan Perusahaan 6 Kawasan Perusahaan Kuala Selangor 45000 Kuala SelangorSelangor Darul Ehsan

Industrial land / factory cum office

126,324 ft2 99 year lease No expiry date as separate document of title has not been issued

11 1,602/19.01.2005

Tanah Perindustrian /kilang merangkappejabat

126,324ka2 Pajakan 99 tahuntiada tarikh tamat tempoh kerana dokumen hak milik berasingan belum dikeluarkan

11 1,602/19.01.2005

Total / Jumlah 39,552

Revaluation of properties / Penilaian semula hartanah

The directors have not adopted a policy of regular revaluation of the properties / Para pengarah belum menerima pakai dasar penilaian semula hartanah secara berjadual.

Page 190: New Opportunities. Enhancing our core business
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Proxy Form

Sapura Industrial Berhad (17547-W)(Incorporated in Malaysia)

Total number of proxy(ies) appointed

Proportion of shareholdings to be represented by each proxy

Proxy 1 Proxy 2

% %

Total number of shares held

CDS Account No.

I/We NRIC No. (Full Name in Capital Letters)

of(Full Address)

being a Member of SAPURA INDUSTRIAL BERHAD, do hereby appoint (Full Name in Capital Letters)

NRIC No. of (Full Address)

or failing him/her, (Full Name in Capital Letters)

NRIC No. of (Full Address)

or failing him/her, the CHAIRMAN OF THE MEETING, as my/our proxy to vote for me/us and on my/our behalf at the Thirty First (31st) Annual General Meeting to be held at the Multi Purpose Hall, Sapura @ Mines, No. 7, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan, Selangor Darul Ehsan on Wednesday, 18 July 2007 at 11.00 a.m. or at any adjournment thereof.

Please indicate with an “X” in the space provided below how you wish your vote to be cast. If no specific direction as to voting is given, the proxy will vote or abstain from voting at his/her discretion.

resolutions for Against

ORDINARY RESOLUTION 1 To receive the Financial Statements and Reports

ORDINARY RESOLUTION 2 Re-election of Ir. Md. Shah bin Hussin

ORDINARY RESOLUTION 3 Re-election of Shahriman bin Shamsuddin

ORDINARY RESOLUTION 4 Re-election of Datuk Kisai bin Rahmat

ORDINARY RESOLUTION 5 Re-election of Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir

ORDINARY RESOLUTION 6 Reappointment of Messrs Ernst & Young as Auditors of the Company

ORDINARY RESOLUTION 7 Payment of Directors’ fees

ORDINARY RESOLUTION 8 Authority for Directors to issue shares under Section 132D of the Companies Act, 1965.

Dated this day of 2007Signature/Common Seal of Shareholder

noTes:-A member of the Company who is entitled to attend and vote at this Meeting is entitled to appoint a proxy to attend and vote on a poll in his stead. A proxy may but need not be a member of the Company.

Where a member is an authorised nominee, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.

Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy.

An instrument appointing a proxy shall be in writing and in the case of an individual shall be signed by the appointor or by his attorney and in the case of a corporate member, shall be either under its Common Seal or signed by its attorney or an officer of the corporation duly authorised.

The instrument appointing a proxy must be deposited at the Registered Office of the Company at Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, not less than forty eight (48) hours before the time set for holding the Meeting or any adjournment thereof.

Page 192: New Opportunities. Enhancing our core business

Fold Here

Fold Here

STAMP

The Company Secretary

sapura industrial Berhad (17547-W)

Lot 2 & 4, Jalan P/11, Seksyen 10

Kawasan Perindustrian Bangi

43650 Bandar Baru Bangi

Selangor Darul Ehsan

Page 193: New Opportunities. Enhancing our core business

Borang Proksi

Sapura Industrial Berhad (17547-W)(Diperbadankan di Malaysia)

Jumlah proksi yang dilantik

Jumlah pegangan saham yang diwakilioleh setiap proksi

Proksi 1 Proksi 2

% %

Jumlah saham yamg dipegang

No. Akaun CDS

Saya/Kami No. K/P. (Nama Penuh dalam Huruf Besar)

beralamat di (Alamat Penuh)

sebagai Ahli SAPURA INDUSTRIAL BERHAD, dengan ini melantik (Nama Penuh dalam Huruf Besar)

No. K/P. beralamat di (Alamat Penuh)

atau jika ketidakhadiran beliau, (Nama Penuh dalam Huruf Besar)

No. K/P. beralamat di (Alamat Penuh)

atau jika ketidakhadiran beliau, PENGERUSI MESYUARAT, sebagai proksi saya/kami untuk mengundi bagi pihak saya/kami di Mesyuarat Agung Tahunan yang Ketiga Puluh Satu (31) yang akan diadakan di Dewan Serbaguna, Sapura @ Mines, No. 7, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan, Selangor Darul Ehsan pada hari Rabu, 18 Julai 2007 jam 11.00 pagi atau pada sebarang penangguhan daripadanya.

Sila tandakan “X” di ruang yang disediakan di bawah kepada pengundian mana yang anda kehendaki. Jika tiada sebarang arahan tertentu kepada pengundian yang dibuat, proksi akan mengundi atau tidak mengundi mengikut budi bicaranya.

resolusi menyokong menentang

RESOLUSI BIASA 1 Menerima Penyata Kewangan dan Laporan-laporan

RESOLUSI BIASA 2 Pemilihan semula Ir. Md. Shah bin Hussin

RESOLUSI BIASA 3 Pemilihan semula Shahriman bin Shamsuddin

RESOLUSI BIASA 4 Pemilihan semula Datuk Kisai bin Rahmat

RESOLUSI BIASA 5 Pemilihan semula Tan Sri Dato’ Seri Ir. Shamsuddin bin Abdul Kadir

RESOLUSI BIASA 6 Pelantikan semula Tetuan Ernst & Young sebagai Juruaudit Syarikat

RESOLUSI BIASA 7 Pembayaran yuran pengarah

RESOLUSI BIASA 8 Memberi kuasa kepada para pengarah untuk menerbit saham di bawah Seksyen 132D, Akta Syarikat, 1965

Bertarikh haribulan 2007Tandatangan / Cap Mohor Pemegang Saham

noTA:-Ahli yang berhak untuk menghadiri dan mengundi di Mesyuarat ini dibenarkan melantik proksi untuk menghadiri dan mengundi bagi pihaknya. Seorang proksi tidak semestinya seorang ahli Syarikat.

Jika ahli adalah nomini yang diberi kuasa, ia boleh melantik sekurang-kurangnya seorang proksi bagi setiap akaun sekuriti yang dipegangnya yang masih berbaki kredit saham-saham biasa Syarikat.

Sekiranya ahli melantik lebih dari seorang proksi, pelantikan itu adalah tidak sah melainkan jika ia menyatakan bilangan saham yang diwakilkan kepada setiap proksi.

Suratcara pelantikan proksi hendaklah dibuat secara bertulis dan sekiranya ahli adalah individu, ia hendaklah ditandatangani oleh pelantik atau oleh wakilnya dan sekiranya pelantik merupakan sebuah perbadanan, ia hendaklah dibuat sama ada di bawah Cop Mohor Rasmi atau ditandatangani oleh wakil atau pegawai Perbadanan yang diberi kuasa.

Surat pelantikan proksi mestilah diserahkan ke Pejabat Berdaftar Syarikat di Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, tidak kurang dari tempoh empat puluh lapan (48) jam sebelum waktu yang telah ditetapkan untuk mengadakan Mesyuarat atau sebarang penangguhan daripadanya.

Page 194: New Opportunities. Enhancing our core business

Lipat di sini

Lipat di sini

SETEM

Setiausaha Syarikat

sapura industrial Berhad (17547-W)

Lot 2 & 4, Jalan P/11, Seksyen 10

Kawasan Perindustrian Bangi

43650 Bandar Baru Bangi

Selangor Darul Ehsan

Page 195: New Opportunities. Enhancing our core business

Sapura Industrial Berhad (17547-W)

Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, Malaysia

www.sapuraindustrial.com.my