PROFILE OF DIRECTORS PROFIL PENGARAH ... - ChartNexus

PROFILE OF DIRECTORS 

PROFIL PENGARAH-PENGARAH 

DATO’ VASEEHAR HASSAN BIN ABDUL RAZACK 

Independent Non-Executive Director 

Pengarah Bebas Bukan Eksekutif 

Aged 60, Malaysian 

Appointed on 23 October 2000 

Berusia 60 tahun, warganegara Malaysia 

Dilantik pada 23 Oktober 2000 

Dato’ Vaseehar Hassan has 28 years of 

experience in the financial sector. He 

has a Bachelor’s Degree in Accounting, 

Master in Business Administration as well 

as Specialised Masters in Consulting and 

Coaching and is currently pursuing a 

Doctoral Research at the Vrije Universiteit, 

Amsterdam. 

He also sits on the Board of several other 

private limited companies. 

He is the Chairman of the Remuneration 

and Nomination Committees and a 

member of the Audit Committee of the 

Company. 

Save as disclosed on page 157, Dato’ 

Vaseehar Hassan does not hold any 

securities in the subsidiaries and none of 

his family members have direct or indirect 

relationship with any director and/or major 

shareholder of the Company. He has not 

entered into any transaction, whether 

directly or indirectly, which has a conflict 

of interest with the Company and has not 

been convicted of any criminal offences 

within the past 10 years. He attended six 

out of the nine Board Meetings held during 

the financial year. 

annual report 2010 / 2011 39 

Dato’ Vaseehar Hassan mempunyai 28 

tahun pengalaman di bidang kewangan. 

Beliau yang memegang Ijazah Sarjana 

Muda dalam Perakaunan, Ijazah Sarjana 

dalam Pengurusan Perniagaan serta 

“Specialised Masters in Consulting and 

Coaching” pada masa ini sedang 

mengikuti kursus penyelidikan kedoktoran 

di Vrije Universiteit, Amsterdam. 

Beliau juga adalah ahli Lembaga Pengarah 

beberapa syarikat sendirian berhad. 

Beliau adalah Pengerusi Jawatankuasa 

Imbuhan dan Perlantikan dan ahli 

Jawatankuasa Audit Syarikat. 

Selain daripada yang telah dinyatakan 

pada mukasurat 157, Dato’ Vaseehar tidak 

memegang sebarang saham di dalam 

anak syarikat dan tiada di kalangan ahli 

keluarga beliau yang mempunyai kaitan, 

secara langsung atau tidak langsung, 

dengan mana-mana pengarah dan / 

atau pemegang saham utama Syarikat. 

Beliau tidak pernah terlibat dengan 

apa-apa urusniaga, secara langsung 

atau tidak langsung yang mempunyai 

percanggahan kepentingan dengan 

Syarikat dan tidak pernah disabitkan 

apa-apa kesalahan jenayah dalam 

tempoh 10 tahun yang lepas. Beliau telah 

menghadiri enam daripada sembilan 

Mesyuarat Lembaga Pengarah pada 

tahun kewangan semasa.

40 

Ingress Corporation Berhad 

Dato’ Zulkifly has over 35 years of 

experience in the administrative and 

diplomatic service. He has a Bachelor of 

Art (Hons) from University of Malaya and 

Diploma in Foreign Service from University 

of Oxford, United Kingdom. 

His career started as Assistant Secretary at 

the Ministry of Foreign Affairs on 7 April 1971 

and later served as a Second Secretary, 

Embassy of Malaysia in Manila, Philippines 

on 12 November 1973. In 1977, he was 

appointed as First Secretary, Embassy of 

Malaysia in Yangon, Myanmar. On 16 March 

1979 he took up the position of Principal 

Assistant Secretary (Administration) at 

Ministry of Foreign Affairs. He later joined 

the Embassy of Malaysia in Cairo, Egypt 

on 17 June 1981 as a Counsellor. In 1987 

he was appointed as Deputy Chief of 

Protocol, Ministry of Foreign Affairs. He 

was then posted as the Consul General of 

Malaysia in Medan, Indonesia in 1989 and 

in Jeddah, Saudi Arabia on May 1992. He 

was later appointed as the Ambassador/ 

High Commissioner of Malaysia to several 

countries such as in 1993 to Kuwait 

and concurrently accredited as an 

Ambassador to Bahrain, Qatar, Oman and 

UAE and then to Bangladesh in 1997. He 

was also the High Commissioner to New 

Zealand and concurrently accredited as 

High Commissioner to Cook Islands and 

Niue in 2000 and later held the same 

position in New Delhi, India from August 

2004 to December 2006. 

Dato’ Zulkifly is a member of the Nomination 

and Audit Committees of the Company. 

Save as disclosed on page 157, Dato’ 

Zulkifly does not hold any securities in the 

subsidiaries and none of his family members 

have direct or indirect relationship with 

any director and/or major shareholder of 

the Company. He has not entered into any 

transaction, whether directly or indirectly, 

which has a conflict of interest with the 

Company and has not been convicted 

of any criminal offences within the past 10 

years. He attended eight out of the nine 

Board Meetings held during the financial 

year. 

Dato’ Zulkifly mempunyai pengalaman 

melebihi 35 tahun dalam bidang 

pentadbiran dan perkhidmatan diplomatik. 

Beliau memegang Ijazah Sarjana Muda 

Sastera dengan kepujian dari Universiti 

Malaya dan Diploma in Foreign Service 

dari University of Oxford, United Kingdom. 

Beliau memulakan kerjayanya sebagai 

Penolong Setiausaha di Kementerian Luar 

Negeri pada 7 April 1971 dan seterusnya 

ditugaskan sebagai Setiausaha Kedua 

di Kedutaan Malaysia di Filipina pada 12 

November 1973. Pada tahun 1977, beliau 

dilantik sebagai Setiausaha Pertama di 

Kedutaan Malaysia di Yangon, Myanmar. 

Pada 16 Mac 1979, beliau seterusnya 

dilantik sebagai Ketua Penolong 

Setiausaha (Pentadbiran) di Kementerian 

Luar Negeri dan kemudiannya menyertai 

Kedutaan Malaysia di Kaherah, Mesir pada 

17 Jun 1981 sebagai Penasihat Kedutaan. 

Berikutnya pada tahun 1987, beliau telah 

dilantik sebagai Timbalan Ketua Protokol 

di Kementerian Luar Negeri. Pada tahun 

1989, beliau telah ditugaskan sebagai 

Konsul Jeneral di Medan, Indonesia dan 

seterusnya ke Jeddah, Arab Saudi pada 

Mei 1992. Beliau kemudianya dilantik 

sebagai Duta/Pesuruhjaya Tinggi Malaysia 

ke beberapa buah negara seperti di Kuwait 

pada tahun 1993, dan pada waktu yang 

sama ditauliahkan serentak sebagai Duta 

Besar Malaysia ke Bahrain, Qatar, Oman 

DATO’ ZULKIFLY @ IBRAHIM BIN AB RAHMAN 

Independent Non- Executive Director 



Appointed on 17 December 2007 


Dilantik pada 17 Disember 2007 

dan UAE dan seterusnya Bangladesh 

pada tahun 1997. Beliau juga dilantik 

sebagai Pesuruhjaya Tinggi Malaysia ke 

New Zealand dan ditauliahkan serentak 

ke Kepulauan Cook serta Niue pada tahun 

2000 seterusnya memegang jawatan yang 

sama ke New Delhi, India pada Ogos 2004 

hingga Disember 2006. 

Dato’ Zulkifly merupakan ahli 

Jawatankuasa Perlantikan dan Audit 

Syarikat. 


pada mukasurat 157, Dato’ Zulkifly tidak 

memegang sebarang saham di dalam 


keluarga beliau yang mempunyai kaitan, 

secara langsung atau tidak langsung, 



Beliau tidak pernah terlibat dengan 

apa-apa urusniaga, secara langsung 



Syarikat dan tidak pernah disabitkan 

apa-apa kesalahan jenayah dalam 

tempoh 10 tahun yang lepas. Beliau telah 

menghadiri lapan daripada sembilan 

Mesyuarat Lembaga Pengarah pada 

tahun kewangan semasa.



ABDUL KHUDUS BIN MOHD NAAIM 



Aged 57, a Malaysian 

Appointed on 10 September 2008 


Dilantik pada 10 September 2008 

Mr. Abdul Khudus is a Chartered 

Accountant in the Malaysian Institute of 

Accountants, a Fellow, Association of 

Chartered Certified Accountants United 

Kingdom, an Associate in the Chartered 

Malaysian Institute of Taxation, an 

Associate in the Institute of Co-operative 

& Management Accountants, Malaysia, 

and holds a Diploma in Accountancy from 

Mara Institute of Technology, Malaysia. 

His career started as an Audit Junior at 

Arthur Young & Co, Public Accountants, 

Kuala Lumpur from January 1976 to 

December 1976 and later served as 

Audit Senior at Ramoss Jassen & Partners, 

Chartered Accountants, London from 

July 1980 to December 1984. He was 

appointed as Accountant at Islamic 

Finance House PLC, London from January 

to December 1985. He joined Syarikat 

Takaful Malaysia Berhad in January 1986 

until August 1993 with the last position as 

Senior Finance Manager. From September 

1993 to December 1996, he was Director 

of Corporate Affairs at Emile Woolf Group 

of Colleges, Kuala Lumpur. He later joined 

SKMN Associates, Chartered Accountants, 

Malaysia from January 1997 until September 

1999 as a Partner. He has been a partner at 

KS & Associates, Chartered Accountants, 

Malaysia since October 1999, which has 

since merged with AKN Arif, Chartered 

Accountants in August 2008. 

His directorship as Member of Board of 

Directors and Audit Committee in other 

public companies are Inch Kenneth Kajang 

Rubber PLC and Concrete Engineering 

Products Bhd. He is also a director of a 

number of private limited companies. 

He is the Chairman of the Audit Committee 

and a member of the Remuneration 

Committee of the Company. 

Save as disclosed on page 157, Abdul 

Khudus does not hold any securities in the 

subsidiaries. None of his family members 







of any criminal offences within the past 10 

years. He attended eight out of the nine 

Board Meetings held during the financial 

year. 

En. Abdul Khudus adalah Akauntan 

Bertauliah di Institut Akauntan Malaysia, 

Fellow di Association of Chartered Certified 

Accountants United Kingdom, Associate 

di Institut Percukaian Bertauliah Malaysia, 

Associate di Institut Akauntan Koperasi dan 

Pengurusan, Malaysia serta berkelulusan 

Diploma Perakaunan daripada Institut 

Teknologi MARA, Malaysia. 

Beliau memulakan kerjayanya sebagai 

Juruaudit di Arthur Young & Co, Akauntan 

Awam, Kuala Lumpur dari Januari 1976 

hingga Disember 1976 dan seterusnya 

sebagai Juruaudit Kanan di Ramoss 

Jassen & Partners, Akauntan Berkanun, 

London dari Julai 1980 hingga Disember 

1984. Beliau dilantik sebagai Akauntan 

di Islamic Finance House PLC, London 

daripada Januari hingga Disember 1985. 

Beliau menyertai Syarikat Takaful Malaysia 

Berhad pada Januari 1986 hingga Ogos 

1993 dengan jawatan terakhir sebagai 

Pengurus Kanan Kewangan. Daripada 

September 1993 sehingga Disember 

1996, beliau adalah Pengarah Hal Ehwal 

Korporat di Kumpulan Kolej Emile Woolf, 

Kuala Lumpur. Beliau kemudiannya 


menyertai SKMN Associates, Akauntan 

Bertauliah, Malaysia dari Januari 1997 

hingga September 1999 sebagai rakan 

kongsi. Beliau kemudian adalah rakan 

kongsi di KS & Associates, Akauntan 

Bertauliah, Malaysia semenjak Oktober 

1999, yang telah bergabung dengan 

AKN Arif, Akauntan Bertauliah mulai Ogos 

2008. 

Beliau juga adalah ahli Lembaga 

Pengarah dan ahli Jawatankuasa Audit 

di Inch Kenneth Kajang Rubber PLC dan 

Concrete Engineering Products Bhd. Beliau 

juga adalah pengarah bagi beberapa 

syarikat sendirian berhad. 

Beliau adalah Pengerusi Jawatankuasa 

Audit dan ahli Jawatankuasa Imbuhan 

Syarikat. 


pada mukasurat 157, Abdul Khudus tidak 

mempunyai sebarang pegangan saham 

di dalam Syarikat atau anak syarikat dan 

tiada di kalangan ahli keluarga beliau 

yang mempunyai kaitan secara langsung 

atau tidak langsung dengan mana-mana 

pengarah dan / atau pemegang saham 

utama Syarikat. Beliau tidak pernah 

terlibat dengan apa-apa urusniaga sama 

ada secara langsung atau tidak langsung, 

yang mempunyai percanggahan 

kepentingan dengan Syarikat dan tidak 

pernah disabitkan apa-apa kesalahan 

jenayah dalam tempoh 10 tahun yang lalu. 

Beliau telah menghadiri lapan daripada 

sembilan Mesyuarat Lembaga Pengarah 

pada tahun kewangan semasa.

42 


Ungku Farid is a member of the Malaysian 

Institute of Accountants and a Fellow of 

the Chartered Institute of Management 

Accountants (UK). He holds a Master in 

Business Administration from Ohio University 

(USA), in collaboration with Universiti 

Teknologi MARA (UiTM). His previous 

work experience was with Pernas NEC 

Telecommunications Sdn Bhd in 1980. In 

1981, he joined Sapura Holdings Sdn Bhd 

and held several positions before being 

promoted to Group General Manager, 

Finance & Accounting in 1989. In 1995 

he joined Time Telecommunications Sdn 

Bhd and in 1997, he joined Tap Resources 

Berhad as Executive Director Finance 

before resigning in 1998. He joined Ingress 

Engineering Sdn Bhd as a director in 1998. 

He currently sits on the Board of several 

other private limited companies. 

Save as disclosed on page 157, Ungku 

Farid does not hold any securities in the 

subsidiaries. None of his family members 

have direct or indirect relationship with any 

director and/or major shareholder of the 

Company save and except by virtue of his 

directorship in Ramdawi Sdn Bhd. He has 

not entered into any transaction, whether 

directly or indirectly, which has a conflict 

of interest with the Company and has not 

been convicted of any criminal offences 

within the past 10 years. He attended all 

of the nine Board Meetings held during the 

financial year. 

Ungku Farid adalah ahli Institut Akauntan 

Malaysia dan Fellow Chartered Institute 

of Management Accountants (UK). 

Beliau mempunyai Sarjana Pentadbiran 

Perniagaan dari Ohio University 

(Amerika Syarikat) secara usaha sama 

dengan Universiti Teknologi MARA 

(UiTM). Pengalaman kerjaya beliau 

termasuk berkhidmat di Pernas NEC 

Telecommunications Sdn Bhd dalam 

tahun 1980. Pada tahun 1981, beliau 

telah menyertai Sapura Holdings Sdn 

Bhd dan menjawat beberapa jawatan 

sebelum dinaikkan pangkat sebagai 

Pengurus Besar Kumpulan, Perakaunan 

dan Kewangan pada tahun 1989. 

Dalam tahun 1995, beliau menyertai 

Time Telecommunications Sdn Bhd dan 

pada tahun 1997, beliau kemudiannya 

berkhidmat di Tap Resources Berhad 

sebagai Pengarah Eksekutif Kewangan 

sehingga beliau meletakkan jawatan 

pada tahun 1998. Beliau menyertai Ingress 

Engineering Sdn Bhd sebagai pengarah 

pada tahun 1998. Beliau juga adalah 

ahli Lembaga Pengarah bagi beberapa 

syarikat sendirian berhad. 


pada mukasurat 157. Ungku Farid tidak 

memegang sebarang saham dalam anak 

syarikat. Tiada di kalangan ahli keluarga 

beliau yang mempunyai kaitan secara 

langsung atau tidak langsung dengan 

mana-mana pengarah dan / atau 

pemegang saham utama Syarikat kecuali 

dan hanya dengan jawatan pengarah 

yang dipegang di Ramdawi Sdn Bhd. 

Beliau tidak pernah terlibat dengan apaapa 

urusniaga sama ada secara langsung 



Syarikat dan tidak pernah disabitkan apa- 

UNGKU FARID BIN UNGKU ABD RAHMAN 



Aged 57, a Malaysian 

Appointed on 23 October 2000 


Dilantik pada 23 Oktober 2000 

apa kesalahan jenayah sepanjang 10 

tahun yang lalu. Beliau telah menghadiri 

kesemua sembilan Mesyuarat Lembaga 

Pengarah pada tahun kewangan 

semasa.



ABDUL RAHIM BIN HAJI HITAM 




Appointed on 1 April 2010 


Dilantik pada 1 April 2010 

Mr. Abdul Rahim holds a Bachelor of 

Science in Production Engineering and 

Management from the Loughborough 

University of Technology, United Kingdom. 

He started his career at Perusahaan 

Otomobil Nasional Sdn Bhd (PROTON) 

in September 1984 until August 1989, 

when he then joined Alps Electric (M) 

Sdn Bhd as the Production Manager until 

September 1990. Subsequently, he joined 

Sapura Motors Berhad and held various 

management positions between October 

1990 until September 1999, the last being 

the Deputy Managing Director. In October 

1999, he joined Ingress Group as the 

Managing Director of Ingress Autoventures 

Co., Ltd. 

Save as disclosed on page 157, Mr. Abdul 

Rahim does not hold any securities in the 

subsidiaries and none of his family members 







of any criminal offences within the past 

10 years. He attended all of the six Board 

Meetings held during the financial year 

subsequent to his appointment. 


En. Abdul Rahim memegang Ijazah 

Sarjana Muda Kejuruteraan Pengeluaran 

dan Pengurusan dari Loughborough 

University of Technology, United Kingdom. 

Beliau memulakan kerjayanya di 

Perusahaan Otomobil Nasional Sdn Bhd 

(PROTON) pada tahun 1984 sehingga 

Ogos 1989 dan seterusnya menyertai Alps 

Electric (M) Sdn Bhd sebagai Pengurus 

Pengeluaran sehingga September 1990. 

Beliau kemudian menyertai Sapura Motors 

Berhad dan memegang pelbagai jawatan 

pengurusan bermula bulan Oktober 1990 

sehingga September 1999, yang terakhir 

sebagai Timbalan Pengarah Urusan. Pada 

bulan Oktober 1999, beliau menyertai 

syarikat Kumpulan Ingress sebagai 

Pengarah Urusan di Ingress Autoventures 

Co., Ltd. 


pada mukasurat 157, Abdul Rahim tidak 

memegang sebarang saham dalam 


keluarga beliau yang mempunyai kaitan 

secara langsung atau tidak langsung 



Beliau tidak pernah terlibat dengan apaapa 

urusniaga sama ada secara langsung 



Syarikat dan tidak pernah disabitkan apaapa 

kesalahan jenayah sepanjang 10 

tahun yang lepas. Beliau telah menghadiri 

kesemua enam Mesyuarat Lembaga 

Pengarah pada tahun kewangan semasa 

semenjak perlantikan beliau.

44 


Statement of Directors’ 

Responsibility for Preparing the Financial 

Statements 

The directors are required to ensure that financial statements of the Group and the Company for each financial 

year are prepared in accordance with Financial Reporting Standards, the provisions of the Companies Act, 

1965 in Malaysia and the Listing Requirements. 

The directors are also responsible in ensuring that annual financial statements of the Group and the Company 

reflect a true and fair view of the state of affairs of the Group and the Company. 

In the preparation of financial statements, the directors consider that:- 

• the Group and the Company adopt appropriate accounting policies and they are consistently applied; 

• reasonable and prudent judgements and estimates are made; 

• all Financial Reporting Standards in Malaysia are observed; and 

• proper accounting records are kept so that the financial statements are prepared with reasonable 

accuracy. 

The directors have general responsibilities for taking such steps that are reasonably available to them to safeguard 

the assets of the Group and the Company in order to prevent and detect fraud and other irregularities.

Audit Committee 

annual a report 2010 

10 / 201 2011 45 

45 

From left 

Dato’ Vaseehar Hassan bin Abdul Razack • Abdul Khudus bin Mohd Naaim (Chairman) 

• Dato’ Zulkifly @ Ibrahim bin Ab Rahman • Shamsudin @ Samad bin Kassim

46 46 

CHAIRMAN 


Audit Committee Report 

Abdul Khudus bin Mohd Naaim 

Independent and non-Executive Director 

MEMBERS 

Dato’ Vaseehar Hassan bin Abdul Razack 


Shamsudin @ Samad bin Kassim 


Dato’ Zulkifly @ Ibrahim bin Ab Rahman 


FORMATION OF THE AUDIT COMMITTEE 

The Audit Committee was formed on 24 October 2000. 

TERMS OF REFERENCE 

Duties, Responsibilities and Authority 

To review and report the following to the Board of Directors of Ingress Corporation Berhad:- 

1. With regards to the external auditor, their audit plan, their evaluation of the system of internal controls, their 

audit report including reports and management letters thereon and the extent of assistance rendered by 

the company officials to them. 

2. With regards to the internal audit function, the adequacy of its scope, functions, resources, the necessary 

authority to carry out its work, the internal audit programme, processes or investigation undertaken and 

whether or not appropriate action is taken on the recommendation of the internal audit function. 

3. The review, appraisal or assessment of the performance of the internal audit function staff, approval for any 

appointment or termination of senior staff member of the internal audit function and keeping abreast of 

resignations of internal audit members. 

4. The quarterly and financial year end financial statements with emphasis on changes in or implementation of 

major accounting policy changes, significant and unusual events and adherence to accounting standards 

and other legal requirements. 

5. Any related party transaction and conflict of interest situation that may arise within the Group or the 

Company including any transaction, procedure or course of conduct that raises question of management 

integrity. 

6. The performance of the external auditors and if in their opinion (supported by grounds) the external auditor is 

not suitable for reappointment; their recommendation to nominate a person or persons as external auditors 

and any letters of resignation from the external auditors. 

7. Any vacancy in the audit committee so that the vacancy be filled within 3 months.

AUDIT COMMITTEE REPORT 

In performing its functions and duties, the Committee shall:- 


1. Have the authority to investigate any matters within its terms of reference and have the resources which 

it needs to do so without any restriction on access to any information pertaining to the Group and the 

Company. 

2. Have direct communication channels with the external auditors and obtain independent professional or 

other advice and have meeting with the external auditors without the presence of any executive directors 

at least once in a financial year. 

3. Report to Bursa Malaysia with regard to breaches of listing requirements should the Committee consider that 

a matter reported to the Board of Directors has not been satisfactorily resolved. 

4. Be reviewed by the Board of Directors in term of office and performance of the committee and each 

of its members at least once every 3 financial years to determine whether the duties are carried out in 

accordance with the terms of reference. 

MEETINGS 

The Committee meets four times annually, or more whenever necessary. Meetings will normally be attended by 

the Group Financial Controller, the Head of the Internal Audit Department and a representative of the external 

auditor (if required). Heads of operation units or other Board members may also be called upon to attend 

meetings. Meeting with the external auditors which is not attended by any executive directors are held twice 

in a financial year. 

During the financial year, the Committee met for seven times for the following purposes:- 

a. To review the draft quarterly financial statements and recommending the same to be considered and 

approved by the Board of Directors for the purpose of making announcements to the Bursa Malaysia. 

b. To review the financial year end audited financial statements and the external auditors’ management letter 

and management response thereon. 

c. To discuss with external auditors the audit plan and scope for the financial year as well as the audit procedures 

to be utilised. 

d. To review the internal audit department’s scope of work, adequacy of resources and coordination with the 

external auditors. 

e. To review the reports from the internal audit department and following up on corrective actions taken on 

issues raised.

48 


Audit Committee Report 

DETAILS OF ATTENDANCE 

Member Attendance 

Abdul Khudus bin Mohd Naaim 7/7 

Dato’ Vaseehar Hassan bin Abdul Razack 5/7 

Shamsudin @ Samad bin Kassim 7/7 

Dato’ Zulkifly @ Ibrahim bin Ab Rahman 6/7 

INTERNAL AUDIT FUNCTIONS 

The Internal Audit functions of the Group and the Company are undertaken by its Internal Audit Department, 

which reports directly to the Audit Committee. 

The main role of the Internal Audit Department is to review and assess the effectiveness of the internal control 

systems and assisting the Group and the Company in its risk management. 

During the financial year, the Committee had received fifteen (15) reports on the assessment of the Group’s 

internal control from the internal audit department.

Statement of Internal Control 

Introduction 


In accordance with paragraph 15.26(b) of the Listing Requirements, the Board of Directors is pleased to report on 

the state of internal control of the Group for the financial year ended 31 January 2011. 

Responsibility 

The Board acknowledges the importance of the system of internal control and affirms its responsibility to maintain 

a sound system in safeguarding the interests of the shareholders. With regards to this, the Board is able to confirm 

of continuous effort in place to identify risks and to introduce or improve controls in every functional activities. 

The Board is also aware of inherent limitations in any control system, hence, such system is designed to manage 

rather than eliminate the risk of failure to achieve business objectives. Such system, therefore, can only provide 

reasonable assurance against material misstatements or losses. 

As the Board does not have any direct control over the operations of its associated companies, the Board is 

not in the position to review the internal control system of its associated companies. This notwithstanding, the 

Group’s interests are served through representation on the Board of the associated companies and receipt and 

review of periodic management financial statements and enquiries thereon. These representations also provide 

the Board with information for timely decision making on the continuity of the Groups’s investments based on the 

performance of the associated company. 

Key elements of internal controls 

Key elements of the Group’s system of internal controls include the following:- 

• A functional organisational structure that defines the level of authority and responsibilities for managing 

activities. 

• Policies and procedures, updated as necessary, are documented and communicated to relevant personnel 

for compliance purposes. 

• The Group’s operations are being accredited with the OHSAS 18001, MS ISO 14001 and ISO/TS 16949 quality 

system standards and such quality management systems provided the Group a basis for improving key 

processes, quality, customer service and customer satisfaction. 

• Proper guidelines for hiring and terminating employees, training programmes for employees, annual 

performance appraisal and other relevant procedures in place to achieve the objective of ensuring employees 

are competent to carry out their duties and responsibilities.

50 


Statement of Internal Control 

Key elements of internal controls (continued) 

• A process for identifying, evaluating and managing significant risks faced by the Group, which has been in 

place for the financial under review and reviewed by the Board. 

• A clear documentation of the risk management principles and procedures which have been disseminated 

to all key employees. This document, inter alia, describes the Board’s position towards risks and processes 

in the attainment of the Group’s business objectives. A risk management process is in place to ensure that 

all key risks within the Group are being clearly identified within the framework of its line of business and key 

functional activities. The Group has in place, a Risk Management Executive Committee which oversees the 

risk management process. 

• The Risk Management Executive Committee for the Group also handles matters relating to investments, 

acquisitions or disposal of business. 

• Regular reviews by the Board on the performance of the Group at its meetings and approving any changes 

in policies that may affect the Group. 

• Other Board committees that have been established with clear terms of reference to ensure effective 

management and monitoring of the Group’s business operations include the Nomination Committee and 

the Remuneration Committee. 

• A comprehensive annual budget which includes business plans are prepared by all business units and 

approved by the Board. Operating results are being closely monitored by management against budget 

and key performance indicators. All major variances and critical operational issues are being followed up 

with actions taken thereon. Forecasts are revised on a quarterly basis after taking into account significant 

business factors. 

• An independent Internal Audit Department which reports directly to the Audit Committee conducts ongoing 

audits to assess the effectiveness of internal controls and highlighting significant risks impacting the Group. 

• The Audit Committee regularly reviews and discusses with key management on the action taken on issues 

brought up by the internal audit department and the external auditors. During the financial year, fifteen (15) 

of such reports were received and reviewed by the Committee. 

Internal control weaknesses identified during the period had been addressed and none of these weaknesses 

have resulted in any material losses, contingencies that would require disclosure in the Annual Report. 

This statement is made in accordance with the resolution of the Board dated 25 May 2011.

Additional Compliance Information 

In conformance with the Listing Requirements the following information is provided:- 

1. Utilisation of Proceeds Raised from Corporate Proposals 


There were no proceeds raised from the Company’s corporate proposals during the financial year. 

2. Share Buy-back 

The Company did not carry out any share buy-back exercise during the financial year ended 31 January 

2011. 

3. Options, Warrants or Convertible Securities 

The Company has not issued any warrants or convertible securities exercised for the financial year ended 31 

January 2011. 

4. Sanctions and / or Penalties 

During the financial year, there were no significant sanctions nor penalties imposed on the Group and the 

Company, directors or management by the relevant regulatory bodies. 

5. Non-Audit Fees 

The amount of non-audit fees paid and payable to the external auditors by the Company and its subsidiaries 

for the financial year ended 31 January 2011 was RM23,025. 

6. Variation in Results 

There were no profit estimate, forecast or projection issued by the Group and the Company during the 

financial year ended 31 January 2011. 

7. Profit Guarantee 

There were no profit guarantee given by the Group and the Company during the financial year ended 31 

January 2011. 

8. American Depository Receipt (“ADR”) / Global Depository Receipt (“GDR”) 

The Company did not sponsor any ADR / GDR Programme during the financial year. 

9. Material Contracts 

Save as disclosed hereunder, there are no contracts which are or may be material (not being contracts 

entered into in the ordinary course of business) which have been entered into by the Company and its 

subsidiary companies involving directors and substantial shareholders within two (2) financial years preceding 

this Annual Report:- 

(i) The following agreements dated 9 July 2009 between Ingress and Ingress Sukuk Berhad (“ISB”) for the 

purpose of the extension of the Sukuk Al-Ijarah (“Sukuk”) maturity date of the first tranche due on 9 July 

2009:- 

(a) Supplementary Ijarah Agreement; 

(b) Supplementary Purchase Undertaking; 

(c) Supplementary Sale Undertaking; and 

(d) Supplementary Declaration of Trust.

52 


Additional Compliance Information (continued) 

9. Material Contracts (continued) 

(ii) The following agreements dated 8 January 2010 between the Company and ISB for the purpose of an 

extension of Sukuk maturity date of the first tranche due on 9 January 2010:- 

(a) Second Supplementary Ijarah Agreement; 

(b) Second Supplementary Declaration of Trust; and 

(c) Supplemental Deed of Assignment. 

(iii) The following agreements dated 31 March 2010 for the purpose of the sale of shares in Balfour Beatty 

Rail Sdn Bhd (“BBRSB”) by Multi Discovery Sdn Bhd (“MDSB”):- 

(a) Shareholders Agreement between Balfour Beatty Netherlands B.V. (“BBNBV”), MDSB and BBRSB; 

(b) Share Sale Agreement between MDSB and BBNBV; and 

(c) Termination Agreement between Balfour Beatty Investment Holdings Limited, MDSB, Datuk Rameli 

bin Musa and BBRSB. 

(iv) The following agreements dated 15 June 2010 for the Syndicated Commodity Murabahah Term 

Financing Islamic Facility (“CMTF-i”) of RM110 million for the purpose of full redemption of the Sukuk:- 

(a) Syndicated Commodity Murabahah Term Financing Islamic Agreement between the Company, 

Maybank Investment Bank Berhad, Bank Muamalat Malaysia Berhad and Maybank Islamic 

Berhad; and 

(b) Security Agency Agreement between the Company, Maybank Investment Bank Berhad, Maybank 

Islamic Berhad and Bank Muamalat Malaysia Berhad. 

(v) Share Purchase Agreement dated 29 July 2010 for the disposal of 11.2% equity shares in Ingress 

Autoventures Co., Ltd by Ingress Precision Sdn Bhd (“IPSB”). 

(vi) Share Sale Agreement dated 12 November 2010 for the disposal of the entire 80% equity shares owned 

by MDSB in Matrix Power Services Sdn Bhd. 

(vii) Share Sale Agreement dated 27 January 2011 for the acquisition of 10% equity shares in PT Ingress 

Malindo Ventures by IPSB. 

(viii) Sale and Purchase of Shares Agreement dated 16 February 2011 for the disposal of the entire 49% 

equity shares owned by the Company in Maju Nusa Sdn Bhd. 

10. Revaluation Policy 

Revaluations are made at least once in every three years based on a valuation by an independent valuer 

on an open market value basis. Any revaluation increase is credited to equity as a revaluation surplus, 

except to the extent that it reverses a revaluation decreases for the same asset previously recognised as an 

expense.

Corporate Social Responsibility (“CSR”) 


Incorporating CSR into our yearly programmes has always been an on-going practice within the Company, 

even before the requirement by Bursa Malaysia to disclose CSR activities came into place. The Group believes 

the improvement in the conditions surrounding our stakeholders, employees, society and the environment is vital 

to the growth of the Group. Our corporate social responsibility covers the following key areas:- 

Occupational health and safety 

Written policies, including any updates as well as any training on occupational health and safety matters are 

provided to employees. Health and safety activities are also carried out periodically to create awareness and 

to educate employees on occupational health and safety related matters. 

Employee welfare and development 

As of March 2011, the Group has approximately 2,121 employees spread throughout ASEAN in Malaysia, Thailand 

and Indonesia. Training is provided to the employees based on the training need analysis carried out at the end 

of each year. The training comprises both technical and soft-skills. Employees are also provided with medical 

and healthcare insurance and adequate leave and compensation programs which commensurate with their 

rank and level of employments. 

Further, the Group acknowledges the need to provide a healthy and balanced lifestyle to its employees. In this 

aspect, the Group encourages and supports the activities organised by Kelab Kakitangan Ingress such as family 

day, social events and sports activities. 

Community welfare 

The Group is active and aware for the welfare of the community by supporting social objectives in the 

communities. During the financial year, “zakat” contributions were given to the under privileged communities 

in Malaysia, Thailand and Indonesia as well as donations channelled to various non-profitable institutions, 

charitable organisations and religious institutions. 

Environment preservation 

The Group emphasises compliance with environmental laws governing plant operations, maintenance 

and improvement in areas relating to environmental standards, emission standards, energy conservation, 

housekeeping and storage methods, noise level management and treatment of plant effluents and waste 

water at all our factories operating locally and abroad. 

Education and training 

The Group participates in providing industrial and practical training for undergraduates from local institutes of 

higher learning as a part of its corporate contribution towards education, in line with its belief that education 

plays a key role in nation building. Furthermore, Ingress remains a sponsor to Perpustakaan Dar Nur al-Zahra’, a 

public library in Kota Bharu, Kelantan and continues to make annual contributions for its upkeep and running.

62 


Certification 

ISO / TS 16949 : 2009 

Sirim Cert No: AR 3219 

IATF Cert No: 0102166 

Serial No: 0235 

For IESB 

ISO 14001 : 2004 

Cert No: ER 0445 

For IESB 




For IPSB 


For IPSB 

OHSAS 18001 : 2007 

Cert No: SR 0273 

For IESB 

ISO 9001 : 2008 

Cert No: AR 2195 

For MDSB 


For IPSB 


For RESB 




For ITSB 


For ITSB 


For ITSB 


For TSSB 

Cert No: TS-2006-0253 


For FCT 

Cert No: 01104010769 

For IAV (Rayong) 

Cert No: 01111033571/01 


For IAV (Rayong) 

Cert No: 01111033571/02 


For IAV (Ayutthaya) 



For PTIMV

Audited Financial Statements 

CONTENTS PAGE 

Directors’ Report 64 - 66 

Statement by Directors 67 

Statutory Declaration 67 

Independent Auditors’ Report 68 - 69 

Consolidated Statement of Comprehensive Income 70 

Consolidated Statement of Financial Position 71 - 72 

Consolidated Statement of Changes in Equity 73 

Consolidated Statement of Cash Flow 74 - 75 

Statement of Comprehensive Income 76 

Statement of Financial Position 77 

Statement of Changes in Equity 78 

Statement of Cash Flow 79 

Notes to the Financial Statements 80 - 155 

Supplementary Information - Break Down of 

Retained Profits into Realised and Unrealised 156 

annual report 2010 / 2011 55

64 


Notes Directors’ to the Report 

Financial Statements 

31 January 2011 

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 2011. 

PRINCIPAL ACTIVITIES 

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

The principal activities of the subsidiaries are described in Note 15 to the financial statements. 

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

RESULTS 

Group Company 

RM RM 

Profit from continuing operations, net of tax 29,782,789 3,325,680 

Profit attributable to: 

Owners of the parent 17,124,330 3,325,680 

Minority interests 12,658,459 - 

29,782,789 3,325,680 

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

financial statement. 

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. 

DIVIDENDS 

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

not recommend the payment of any dividend for the current financial year. 

DIRECTORS 

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

are: 

Shamsudin @ Samad bin Kassim 

Datuk Rameli bin Musa 

Dato’ Vaseehar Hassan bin Abdul Razack 

Dato’ Zulkifly bin Ab Rahman 

Abdul Khudus bin Mohd Naaim 

Ungku Farid bin Ungku Abd Rahman 

Abdul Rahim bin Haji Hitam 

DIRECTORS’ BENEFITS 

Neither at the end of the financial year, nor at any time during that financial year, did there subsist any arrangement to 

which the Company was a party, whereby the directors might acquire benefits by means of acquisition of shares in or 

debentures of the Company or any other body corporate. 

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 or 

the fixed salary of a full-time employee of the Company as shown in Note 10 to the financial statements) 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.

NOTES DIRECTORS’ TO THE REPORT 

FINANCIAL STATEMENTS 

31 JANUARY 2011 

DIRECTORS’ INTERESTS 


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

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

Direct interest: 

Ordinary shares of the Company 

 

1 February 31 January 

2010 Acquired Sold 2011 

Shamsudin @ Samad bin Kassim 20,000 30,000 - 50,000 

Datuk Rameli bin Musa 8,602,800 - - 8,602,800 

Dato’ Vaseehar Hassan bin Abdul Razack 12,000 - - 12,000 

Abdul Rahim bin Haji Hitam 6,000 - - 6,000 

Ungku Farid bin Ungku Abd Rahman 571,200 - - 571,200 

Indirect interest: 

Ordinary shares of the Company 

Datuk Rameli bin Musa 15,360,000 - - 15,360,000 

Datuk Rameli bin Musa, by virtue of his interest in shares of the Company is also deemed interested in shares of all the 

Company’s subsidiaries to the extent the Company has an interest. 

The other directors in office at the end of the financial year, did not have any interest in shares in the Company and its 

related corporations during the financial year. 

OTHER STATUTORY INFORMATION 

(a) Before the statements of comprehensive income and statements of financial position 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 

allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that 

adequate allowance 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) the amount written off for bad debts or the amount of the allowance 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.

66 


Notes Directors’ to the Report Financial Statements 


OTHER STATUTORY INFORMATION (CONTINUED) 

(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. 

(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 or of the Company for the financial year in which this report is made. 

SIGNIFICANT EVENTS 

In addition to the significant events disclosed elsewhere in this report, other significant events are disclosed in Note 15, 

16 and 23 to the financial statements. 

SUBSEQUENT EVENTS 

Details of subsequent events are disclosed in Note 36 to the financial statements. 

AUDITORS 

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

Signed on behalf of the Board in accordance with a resolution of the directors dated 25 May 2011. 

Shamsudin @ Samad bin Kassim Datuk Rameli bin Musa 

Kuala Lumpur, Malaysia

NOTES TO THE FINANCIAL STATEMENTS 



Statement by Directors 

Pursuant to Section 169(15) of the Companies Act, 1965 

We, Shamsudin @ Samad bin Kassim and Datuk Rameli bin Musa, being two of the directors of Ingress Corporation 

Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 

70 to 155 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so 

as to give a true and fair view of the financial position of the Group and of the Company as at 31 January 2011 and of 

their financial performance and cash flows for the financial year then ended. 

The information set out in Note 38 to the financial statements have been prepared in accordance with the Guidance 

on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant 

to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants. 

Signed on behalf of the Board in accordance with a resolution of the directors dated 25 May 2011. 

Shamsudin @ Samad bin Kassim Datuk Rameli bin Musa 

Kuala Lumpur, Malaysia 

Statutory Declaration 

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

I, Affandi bin Mokhtar, being the Chief Financial Officer primarily responsible for the financial management of Ingress 

Corporation Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 

70 to 156 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 above 

named Affandi bin Mokhtar at Kuala Lumpur in 

Wilayah Persekutuan on 25 May 2011. 

Before me, 

R. Vasugi Ammal 

(No: W 480) 

Commissioner for Oaths 

Kuala Lumpur 

Affandi bin Mokhtar

68 


Notes Independent to the Financial Auditors’ Statements Report to the Members of 

Ingress 31 January Corporation 2011 Berhad (Incorporated in Malaysia) 

REPORT ON THE FINANCIAL STATEMENTS 

We have audited the financial statements of Ingress Corporation Berhad, which comprise the statements of financial 

position as at 31 January 2011 of the Group and of the Company, and the statements of comprehensive income, 

statements of changes in equity and statement of cash flow of the Group and of the Company for the financial year 

then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 70 to 

155. 

Directors’ responsibility for the financial statements 

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in 

accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: 

designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial 

statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate 

accounting policies; and making accounting estimates that are reasonable in the circumstances. 

Auditors’ responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 

in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical 

requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free 

from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial 

statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement 

of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control 

relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures 

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 

entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the 

reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the 

financial statements. 

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

opinion. 

Opinion 

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards 

and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and 

of the Company as at 31 January 2011 and of their financial performance and cash flows for the financial year then 

ended.



REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 


Independent Auditors’ Report to the Members of 

Ingress Corporation Berhad (Incorporated in Malaysia) (continued) 

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

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company 

and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions 

of the Act. 

(b) We have considered the financial statements and the auditors’ reports of all the subsidiaries of which we have not 

acted as auditors, which are indicated in Note 15 to the financial statements, being financial statements that are 

included in the consolidated financial statements. 

(c) 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. 

(d) The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did 

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

OTHER MATTERS 

The supplementry information set out in Note 38 on page 156 is disclosed to meet the requirement of Bursa Malaysia 

Securities Berhad. The directors are responsible for the preparation of the supplementry information in accordance with 

Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure 

Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants 

(“MIA Guidance”) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information 

is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities 

Berhad. 

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies 

Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of 

this report. 

Ernst & Young 

AF: 0039 

Chartered Accountants 

Kuala Lumpur, Malaysia 

25 May 2011 

Nik Rahmat Kamarulzaman bin Nik Ab. Rahman 

No. 1759/02/12(J) 

Chartered Accountant

70 


Notes Consolidated to the Financial Statement Statements of Comprehensive Income 

31 for the January Financial 2011 Year Ended 31 January 2011 

Note 2011 2010 

RM RM 

Revenue 3 761,176,699 650,622,167 

Cost of sales 4 (651,896,045 ) (556,600,116 ) 

Gross profit 109,280,654 94,022,051 

Other items of income 

Interest / finance income 5 597,704 331,976 

Other income 6 17,906,314 11,386,463 

Other items of expense 

Administrative expenses (72,620,988 ) (62,270,146 ) 

Interest / finance costs 7 (16,538,167 ) (18,554,355 ) 

Depreciation and amortisation (6,108,227 ) (5,832,580 ) 

Share of results of associates (1,462,181 ) 492,718 

Profit before tax from continuing operations 8 31,055,109 19,576,127 

Income tax expense 11 (1,272,320 ) (1,031,794 ) 

Profit net of tax 29,782,789 18,544,333 

Other comprehensive (expenses) / income 

Revaluation of land and buildings - 22,769,403 

Foreign currency translation (3,575,977 ) (876,834 ) 

Cash flow hedges 

Other comprehensive (expenses) / income 

(3,308,262 ) - 

for the financial year, net of tax (6,884,239 ) 21,892,569 

Total comprehensive income for the financial year 22,898,550 40,436,902 

Profit attributable to: 


Minority interests 12,658,459 7,733,470 

29,782,789 18,544,333 

Total comprehensive income attributable to: 


Minority interests 12,229,072 9,549,587 

22,898,550 40,436,902 

Basic earnings per share attributable to owners of the parent (sen) 12 22.3 14.1 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.




Consolidated Statement of Financial Position 

as at 31 January 2011 

Restated Restated 

Note 2011 2010 2009 

RM RM RM 

Assets 

Non-current assets 

Property, plant and equipment 13 281,171,632 330,570,499 297,519,206 

Intangible assets 14 3,543,816 4,237,021 5,051,006 

Investment in associates 16 2,820,439 11,123,718 10,631,000 

Investment securities 17 100,000 100,000 100,000 

Deferred tax assets 28 26,789,424 23,496,895 23,676,401 

314,425,311 369,528,133 336,977,613 

Current assets 

Inventories 18 44,979,084 67,579,532 81,967,019 

Trade receivables 19 125,505,709 136,224,708 113,942,123 

Other receivables 19 26,759,412 30,378,802 96,937,782 

Tax recoverable 1,312,380 2,144,337 1,641,217 

Cash and bank balances 

Assets of disposal group 

21 73,015,900 45,246,461 30,598,533 

classified as held for sale 22 7,239,012 9,599,040 - 

278,811,497 291,172,880 325,086,674 

Total assets 593,236,808 660,701,013 662,064,287

72 


Notes Consolidated to the Financial Statement Statements of Financial Position 

31 as at January 31 January 2011 2011 (continued) 

Restated Restated 

Note 2011 2010 2009 

RM RM RM 

Equity and liabilities 

Current liabilities 

Borrowings / financing 23 111,261,595 298,171,083 299,330,560 

Trade payables 25 89,311,355 96,398,202 108,923,709 

Other payables 25 38,996,563 51,773,984 67,435,946 

Current tax payable 

Liabilities directly associated with disposal 

819,006 450,432 1,813,676 

group classified as held for sale 22 6,425,953 - - 

246,814,472 446,793,701 477,503,891 

Net current assets / (liabilities) 31,997,025 (155,620,821 ) (152,417,217 ) 

Non-current liabilities 

Borrowings / financing 23 119,860,588 12,678,169 28,795,117 

Deferred tax liabilities 28 5,006,164 5,026,962 - 

124,866,752 17,705,131 28,795,117 

Total liabilities 371,681,224 464,498,832 506,299,008 

Net assets 221,555,584 196,202,181 155,765,279 

Equity attributable to owners of the parent 

Share capital 26 76,800,000 76,800,000 76,800,000 

Reserves 27 76,963,486 67,998,931 37,111,616 

153,763,486 144,798,931 113,911,616 

Minority interests 67,792,098 51,403,250 41,853,663 

Total equity 221,555,584 196,202,181 155,765,279 

Total equity and liabilities 593,236,808 660,701,013 662,064,287 





Consolidated Statement of Changes in Equity 

for the Financial Year Ended 31 January 2011 

 

 

Foreign 

Distributable 

Share Share Revaluation Exchange Hedging Retained Minority Total 

Capital Premium Reserves Reserve Reserve Profits Total Interests Equity 

RM RM RM RM RM RM RM RM RM 

At 1 February 2009 76,800,000 1,024,000 5,503,026 4,470,726 - 26,113,864 113,911,616 41,853,663 155,765,279 

Total comprehensive income 

for the financial year - - 20,645,043 (568,591 ) - 10,810,863 30,887,315 9,549,587 40,436,902 

At 31 January 2010 76,800,000 1,024,000 26,148,069 3,902,135 - 36,924,727 144,798,931 51,403,250 196,202,181 

At 1 February 2010 

As previously stated 76,800,000 1,024,000 26,148,069 3,902,135 - 36,924,727 144,798,931 51,403,250 196,202,181 

Effect of adopting FRS 139 - - - - (1,704,923 ) - (1,704,923 ) - (1,704,923 ) 

As restated 76,800,000 1,024,000 26,148,069 3,902,135 (1,704,923 ) 36,924,727 143,094,008 51,403,250 194,497,258 

Total comprehensive income 

for the financial year - - (854,679 ) (2,291,911 ) (3,308,262 ) 17,124,330 10,669,478 12,229,072 22,898,550 

Acquisition by minority interest - - - - - - - 7,379,625 7,379,625 

Dividends on ordinary shares - - - - - - - (3,219,849 ) (3,219,849 ) 

At 31 January 2011 76,800,000 1,024,000 25,293,390 1,610,224 (5,013,185 ) 54,049,057 153,763,486 67,792,098 221,555,584 


74 


Notes Consolidated to the Financial Statement Statements of Cash Flow 


Cash Flows from Operating Activities 

Restated 

2011 2010 

RM RM 

Profit before tax from continuing operations 31,055,109 19,576,127 

Adjustments for: 

Interest / finance income (including profit sharing on 

Mudharabah deposits) (597,704 ) (331,976 ) 

Interest / finance costs 16,538,167 18,554,355 

Amortisation of intangible assets 

Property, plant and equipment 

673,187 1,217,492 

- depreciation 68,078,987 50,860,237 

- gain on disposal (6,566,776) (37,778 ) 

- written off 199,895 7,026,528 

Intangible assets written off 3,488 - 

Gain on disposal of investment in an associate company (7,619,088 ) - 

Loss on disposal of investment in a subsidiary company 1,421,615 - 

Allowance for doubtful debts 341,747 1,073,879 

Provision for foreseeable losses 3,612,461 223,934 

Impairment loss of goodwill - 221,792 

Net unrealised foreign exchange gain (5,703 ) (2,090,653 ) 

Share of results of associates 1,462,181 (492,718 ) 

Provision for obsolete inventories 2,333,146 - 

Write-down of inventories - 41,704 

Operating profit before working capital changes 110,930,712 95,842,923 

Decrease in inventories 20,267,302 14,345,783 

Decrease in receivables 12,463,708 9,748,128 

Decrease in payables (20,006,009 ) (26,261,543 ) 

Cash generated from operations 123,655,713 93,675,291 

Interest / finance costs paid (16,538,167 ) (18,554,355 ) 

Taxes paid (3,385,116 ) (3,054,321 ) 

Net cash generated from operating activities 103,732,430 72,066,615




Consolidated Statement of Cash Flow 

for the Financial Year Ended 31 January 2011 (continued) 


2011 

Restated 

2010 

RM RM 

Purchase of property, plant and equipment (32,783,317 ) (36,189,292 ) 

Purchase of intangible assets (189,659 ) (196,500 ) 

Proceeds from disposal of property, plant and equipment 21,308,022 45,002 

Proceeds from disposal of investment in a subsidiary company 6,337,403 - 

Proceeds from disposal of investment in an associate company 11,400,000 - 

Acquisition of an associate company (1,811,258 ) - 

Interest / finance income received 597,704 331,976 

Net cash generated from / (used in) investing activities 4,858,895 (36,008,814 ) 

Cash Flows from Financing Activities 

Placement of deposits with licensed banks under lien (2,259,423 ) (3,410,450 ) 

Redemption of Sukuk Al-Ijarah (139,997,500 ) (5,002,500 ) 

Net drawdown of Syndicated CMTF-i 105,000,000 - 

Net repayment of term loan (804,222 ) (20,569,865 ) 

Net repayment of hire purchase and lease financing (2,160,410 ) (3,102,034 ) 

Net (repayment) / drawdown of short term borrowings / financing (40,102,938 ) 10,640,887 

Dividends paid (3,219,849 ) - 

Net cash used in financing activities (83,544,342 ) (21,443,962 ) 

Net increase in cash and cash equivalents 25,046,983 14,613,839 

Effects of foreign exchange rate changes 2,941,405 (3,984,145 ) 

Cash and cash equivalents at beginning of the financial year 14,006,800 3,377,106 

Cash and cash equivalents at end of the financial year (Note 21) 41,995,188 14,006,800 


76 


Notes Statement to the of Financial Comprehensive Statements Income 


Note 2011 2010 

RM RM 

Revenue 3 13,808,217 4,181,504 

Other items of income 

Interest / Finance income 5 5,175,923 1,907,239 

Other income 6 155,263 131,516 

Other items of expense 

Administrative expenses (9,247,475 ) (6,211,833 ) 

Depreciation and amortisation (174,090 ) (168,432 ) 

Interest / Finance costs 7 (5,225,491 ) (3,291,622 ) 

Profit / (loss) before tax from continuing operations 8 4,492,347 (3,451,628 ) 

Income tax expense 11 (1,166,667 ) (949,131 ) 

Profit / (loss) net of tax 3,325,680 (4,400,759 ) 

Total comprehensive income / (expenses) for the financial year 3,325,680 (4,400,759 ) 




Statement of Financial Position 

as at 31 January 2011 


Note 2011 2010 

RM RM 

Assets 


Property, plant and equipment 13 937,029 274,659 

Intangible assets 14 9,882 16,627 

Investments in subsidiaries 15 108,653,883 108,653,883 

Investment in an associate 16 - 960,000 

Other receivables 19 93,750,000 - 

203,350,794 109,905,169 


Other receivables 19 51,419,941 48,693,888 

Cash and bank balances 21 3,765,096 5,492,313 

55,185,037 54,186,201 

Total assets 258,535,831 164,091,370 

Equity and liabilities 


Borrowings / financing 23 15,075,053 5,002,245 

Other payables 25 65,148,295 79,736,796 

Total liabilities 80,223,348 84,739,041 

Net current liabilities (25,038,311 ) (30,552,840 ) 


Borrowings / financing 23 95,634,474 - 


Net assets 82,678,009 79,352,329 

Equity attributable to owners of the parent 

Share capital 26 76,800,000 76,800,000 

Reserves 27 5,878,009 2,552,329 

Total equity 82,678,009 79,352,329 

Total equity and liabilities 258,535,831 164,091,370 


78 


Notes Statement to the of Financial Changes Statements in Equity 


Distributable 

Share Retained 

Capital Profits Total 

RM RM RM 

At 1 February 2009 76,800,000 6,953,088 83,753,088 

Total comprehensive expenses for the financial year - (4,400,759 ) (4,400,759 ) 

At 31 January 2010 76,800,000 2,552,329 79,352,329 

At 1 February 2010 76,800,000 2,552,329 79,352,329 

Total comprehensive income for the financial year - 3,325,680 3,325,680 

At 31 January 2011 76,800,000 5,878,009 82,678,009 




Statement of Cash Flow 

for the Financial Year Ended 31 January 2011 



2011 2010 

RM RM 

Profit / (loss) before tax from continuing operations 4,492,347 (3,451,628 ) 

Adjustments for: 

Interest / Finance income (5,175,923 ) (1,907,240 ) 

Dividend income (4,666,667 ) (2,000,000 ) 

Interest / Finance costs 5,225,491 3,291,622 

Depreciation of property, plant and equipment 167,345 156,744 

Amortisation of intangible assets 6,745 11,688 

Gain on disposal of property, plant and equipment (14,500 ) - 

Property, plant and equipment written off 56,358 - 

Impairment loss on investment in an associate company 960,000 - 

Net unrealised foreign exchange loss - 19,774 

Operating profit / (loss) before working capital changes 1,051,196 (3,879,040 ) 

Increase in other receivables (96,461,405 ) (7,565,874 ) 

(Decrease) / increase in other payables (14,588,501 ) 10,786,590 

Cash used in operations (109,998,710 ) (658,324 ) 

Interest / Finance costs paid (5,225,491 ) (3,291,622 ) 

Taxes paid (14,648 ) (14,648 ) 

Net cash used in operating activities (115,238,849 ) (3,964,594 ) 

Cash Flows from Investing Activities 

Purchase of property, plant and equipment (70,200 ) (6,170 ) 

Purchase of intangible assets - (1,650 ) 

Proceeds from disposal of property, plant and equipment 15,000 1 

Interest / Finance income received 5,175,923 1,907,240 

Dividend received 3,500,000 2,000,000 

Net cash generated from investing activities 8,620,723 3,899,421 

Cash Flows from Financing Activities 

Net drawdown of Syndicated CMTF-i 105,000,000 - 

Net repayment of hire purchase and lease financing (92,016 ) - 

Net cash generated from financing activities 104,907,984 - 

Net decrease in cash and cash equivalents (1,710,142 ) (65,173 ) 

Cash and cash equivalents at beginning of the financial year 2,490,068 2,555,241 

Cash and cash equivalents at end of the financial year (Note 21) 779,926 2,490,068 


80 


Notes to to the the Financial Statements 

31 31 January 2011 

1. CORPORATE INFORMATION 

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main 

Market of the Bursa Malaysia Securities Berhad. The registered office of the Company is located at Lot 2778, Fifth Floor, 

Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur. 

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

activities of the subsidiaries are described in Note 15. There have been no significant changes in the nature of the principal 

activities during the financial year. 

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors 

on 25 May 2011. 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

2.1 Basis of preparation 

The financial statements of the Group and of the Company have been prepared in accordance with Financial 

Reporting Standards (“FRSs”) and the Companies Act, 1965 in Malaysia. At the beginning of the current financial year, 

the Group and the Company adopted new and revised FRS which are mandatory for financial periods beginning on 

or after 1 January 2010 as described fully in Note 2.2. 

The financial statements have been prepared on the historical cost basis except as disclosed in the accounting 

policies below. The financial statements are presented in Ringgit Malaysia (“RM”) except when otherwise indicated. 

2.2 Changes in accounting policies 

The accounting policies adopted are consistent with those of the previous financial year except as follows: 

On 1 February 2010, the Group and the Company adopted the following new and amended FRS and IC Interpretations 

mandatory for annual financial periods beginning on or after 1 January 2010. 

FRS 7 Financial Instruments: Disclosure 

FRS 8 Operating Segments 

FRS 101 Presentation of Financial Statements (Revised) 

FRS 123 Borrowing Costs 

FRS 139 Financial Instruments: Recognition and Measurement 

Amendments to FRSs 

FRS 1 First-time Adoption of Financial Reporting Standards 

FRS 2 Share-based Payment – Vesting Conditions and Cancellations 

FRS 117 Leases 

FRS 127 Consolidated and Separate Financial Statements: Cost of an Investment in a 

Subsidiary, Jointly Controlled Entity or Associate 

FRS 132 Financial Instruments: Presentation 

FRS 139 Financial Instruments: Recognition and Measurement 

FRS 7 Financial Instruments: Disclosures

NOTES NOTES TO THE TO THE FINANCIAL FINANCIAL STATEMENTS 

31 JANUARY 31 JANUARY 2011 

2011 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

2.2 Changes in accounting policies (continued) 


On 1 February 2010, the Group and the Company adopted the following new and amended FRS and IC Interpretations 

mandatory for annual financial periods beginning on or after 1 January 2010. (continued) 

Improvements to FRS issued in 2009 

IC Interpretation 9 Reassessment of Embedded Derivatives 

IC Interpretation 10 Interim Financial Reporting and Impairment 

IC Interpretation 11 FRS 2 – Group and Treasury Share Transactions 

IC Interpretation 13 Customer Loyalty Programmes 

IC Interpretation 14 FRS 119 – The Limit on a Defined Benefit Asset, Minimum Funding 

Requirements and Their Interaction 

FRS 4: Insurance Contracts and TRi-3: Presentation of Financial Statements of Islamic Financial Institutions will also 

be effective for annual periods beginning on or after 1 January 2010. These FRS are, however, not applicable to the 

Group or the Company. 

Adoption of the above standards and interpretations did not have any effect on the financial performance or 

position of the Group and of the Company except for those discussed below: 

(a) FRS 7: Financial Instruments: Disclosures 

Prior to 1 February 2010, information about financial instruments was disclosed in accordance with the requirements 

of FRS 132: Financial Instruments: Disclosure and Presentation. FRS 7 introduces new disclosures to improve the 

information about financial instruments. It requires the disclosure of qualitative and quantitative information 

about exposure to risks arising from financial instruments, including specified minimum disclosures about credit 

risk, liquidity risk and market risk, including sensitivity analysis to market risk. 

The Group and the Company have applied FRS 7 prospectively in accordance with the FRS 7 transitional provisions. 

Hence, the new disclosures have not been applied to the comparatives. The new disclosures are included 

throughout the Group’s and the Company’s financial statements for the financial year ended 31 January 2011. 

(b) FRS 8: Operating Segments 

FRS 8, which replaces FRS 114: Segment Reporting, specifies how an entity should report information about 

its operating segments, based on information about the components of the entity that is available to the 

chief operating decision maker for the purposes of allocating resources to the segments and assessing their 

performance. The Standard also requires the disclosure of information about the products and services provided 

by the segments, the geographical areas in which the Group operates, and revenue from the Group’s major 

customers. The Group concluded that the reportable operating segments determined in accordance with FRS 8 

are the same as the business segments previously identified under FRS 114. 

(c) FRS 101: Presentation of Financial Statements (Revised) 

The revised FRS 101 introduces changes in the presentation and disclosures of financial statements. The revised 

Standard separates owner and non-owner changes in equity. The statement of changes in equity includes only 

details of transactions with owners, with all non-owner changes in equity presented as a single line. The Standard 

also introduces the statement of comprehensive income, with all items of income and expense recognised in 

profit or loss, together with all other items of recognised income and expense recognised directly in equity, either 

in one single statement, or in two linked statements. The Group and the Company have elected to present this 

statement as one single statement.

82 



31 31 January 2011 



(c) FRS 101: Presentation of Financial Statements (Revised) (continued) 

In addition, a statement of financial position is required at the beginning of the earliest comparative period 

following a change in accounting policy, the correction of an error or the classification of items in the financial 

statements. 

The revised FRS 101 also requires the Group to make new disclosures to enable users of the financial statements to 

evaluate the Group’s objectives, policies and processes for managing capital (Note 35). 

The revised FRS 101 was adopted retrospectively by the Group and the Company. 

(d) FRS 139: Financial Instruments: Recognition and Measurement 

FRS 139 establishes principles for recognising and measuring financial assets, financial liabilities and some contracts 

to buy and sell non-financial items. In accordance with the transitional provisions of FRS 139, the applicable 

changes are applied prospectively and the comparatives as at 31 January 2010 are not restated. Instead, the 

changes have been accounted for by restating the following opening balances in the statements of financial 

position and the statements of changes in equity as at 1 February 2010 as follows: 

Consolidated statement of financial position 

As previously Effect of 

reported (audited) FRS 139 As restated 

RM’000 RM’000 RM’000 


Investment in associates 11,124 (1,705 ) 9,419 

Equity 

Hedging reserves - (1,705 ) (1,705 ) 

(e) FRS 117: Leases 

Prior to 1 January 2010, for all leases of land and buildings, if title is not expected to pass to the lessee by the 

end of the lease term, the lessee normally does not receive substantially all of the risks and rewards incidental 

to ownership. Hence, all leasehold land held for own use was classified by the Group as operating lease and 

where necessary, the minimum lease payments or the up-front payments made were allocated between the 

land and the building elements in proportion to the relative fair values for leasehold interests in the land element 

and building element of the lease at the inception of the lease. The up-front payment represented prepaid lease 

payments and were amortised on a straight-line basis over the lease term. 

The amendments to FRS 117: Leases clarify that leases of land and buildings are classified as operating or finance 

leases in the same way as leases of other assets. They also clarify that the present value of the residual value of the 

property in a lease with a term of several decades would be negligible and accounting for the land element as 

a finance lease in such circumstances would be consistent with the economic position of the lessee. Hence, the 

adoption of the amendments to FRS 117 has resulted in certain unexpired land leases to be reclassified as finance 

leases. The Group has applied this change in accounting policy retrospectively and certain comparatives have 

been restated.



2011 



(e) FRS 117: Leases (continued) 


The following are effects to the consolidated statement of financial position as at 31 January 2011 arising from the 

above change in accounting policy: 

Group 

2011 

RM’000 

Increase / (decrease) in: 

Property, plant and equipment 15,874 

Prepaid land lease payment (15,874 ) 

The following comparatives as at 31 January 2010 have been restated: 

Consolidated statement of financial position 

As previously 

reported (audited) Adjustments As restated 

RM’000 RM’000 RM’000 


Property, plant and equipment 314,306 16,265 330,571 

Prepaid land lease payment 16,265 (16,265 ) - 

Consolidated statement of cash flow 

Depreciation of property, plant and equipment 50,350 510 50,860 

Amortisation of prepaid land lease payment 510 (510 ) - 

2.3 Standards issued but not yet effective 

The Group has not adopted the following standards and interpretations that have been issued but not yet effective: 

Effective for financial periods beginning on or after 1 March 2010 

Amendments to FRS 132 Classification of Rights Issues 

Effective for financial periods beginning on or after 1 July 2010 

FRS 1 First-time Adoption of Financial Reporting Standards 

FRS 3 Business Combinations (Revised) 

Amendments to FRSs 

FRS 2 Share-based Payment 

FRS 5 Non-current Assets Held for Sale and Discontinued Operations 

FRS 127 Consolidated and Separate Financial Statements 

FRS 138 Intangible Assets 

Amendments to IC 

Interpretation 9 Reassessment of Embedded Derivatives 

IC Interpretation 12 Service Concession Arrangements 

IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation 

IC Interpretation 17 Distributions of Non-cash Assets to Owners

84 



31 31 January 2011 


2.3 Standards issued but not yet effective (continued) 

Effective for financial periods beginning on or after 1 January 2011 

Amendments to FRS 1 Limited Exemption from Comparative FRS 7 Disclosures for First-Time Adopters 

Amendments to FRS 7 Improving Disclosures about Financial Instruments 

Amendments to FRS 2 Share-based Payment - Group Cash Settled Share-based Payment Transactions 

IC Interpretation 4 Determining Whether an Arrangement Contains a Lease 

IC Interpretation 18 Transfer of Assets from Customers 

Effective for financial periods beginning on or after 1 July 2011 

IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments 

Effective for financial periods beginning on or after 1 January 2012 

FRS 124 Related Party Disclosures (Revised) 

IC Interpretation 15 Agreements for the Construction of Real Estate 

Except for the changes in accounting policies arising from the adoption of the revised FRS 3 and the Amendments 

to FRS 127, as well as the new disclosures required under the Amendments to FRS 7, the directors expect that the 

adoption of the other standards and interpretations above will have no material impact on the financial statements in 

the period of initial application. The nature of the impending changes in accounting policy on adoption of the revised 

FRS 3 and the Amendments to FRS 127 are described below. 

Revised FRS 3: Business Combinations and Amendments to FRS 127: Consolidated and Separate Financial Statements 

The revised standards are effective for annual periods beginning on or after 1 July 2010. The revised FRS 3 introduces a 

number of changes in the accounting for business combinations occurring after 1 July 2010. These changes will impact 

the amount of goodwill recognised, the reported results in the period that an acquisition occurs, and future reported 

results. The Amendments to FRS 127 require that a change in the ownership interest of a subsidiary (without loss of 

control) is accounted for as an equity transaction. Therefore, such transactions will no longer give rise to goodwill, nor 

will they give rise to a gain or loss. Furthermore, the amended standard changes the accounting for losses incurred 

by the subsidiary as well as the loss of control of a subsidiary. Other consequential amendments have been made 

to FRS 107: Statement of Cash Flows, FRS 112: Income Taxes, FRS 121: The Effects of Changes in Foreign Exchange 

Rates, FRS 128: Investments in Associates and FRS 131: Interests in Joint Ventures. The changes from revised FRS 3 and 

Amendments to FRS 127 will affect future acquisitions or loss of control and transactions with minority interests. The 

standards may be early adopted. However, the Group does not intend to early adopt. 

2.4 Basis of consolidation 

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 

the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial 

statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied to 

on the transactions and events in similar circumstances. 

All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions 

are eliminated in full.

NOTES NOTES TO THE TO THE FINANCIAL STATEMENTS 


2011 


2.4 Basis of consolidation (continued) 


Acquisitions of subsidiaries are accounted for by applying the purchase method. Identifiable assets acquired and 

liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the 

acquisition date. Adjustments to those fair values relating to previously held interests are treated as a revaluation and 

recognised in other comprehensive income. 

The cost of a business combination 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 business combination. Any excess of the cost of business combination over the Group’s share in the net fair 

value of the acquired subsidiary’s identifiable assets, liabilities and contingent liabilities is recorded as goodwill on 

the statement of financial position. The accounting policy for goodwill is set out in Note 2.8(a). Any excess of the 

Group’s share in the net fair value of the acquired subsidiary’s identifiable assets, liabilities and contingent liabilities 

over the cost of business combination is recognised as income in statement of comprehensive income on the date 

of acquisition. When the Group acquires a business, embedded derivatives separated from the host contract by 

the acquiree are reassessed on acquisition unless the business combination results in a change in the terms of the 

contract that significantly modifies the cash flows that would otherwise be required under the contract. 

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. 

2.5 Transactions with minority interests 

Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are 

presented separately in the consolidated statement of comprehensive income and within equity in the consolidated 

statement of financial position, separately from parent shareholders’ equity. Transactions with minority interests are 

accounted for using the entity concept method, whereby, transactions with minority interests are accounted for as 

transactions with owners. On acquisition of minority interests, the difference between the consideration and book 

value of the share of the net assets acquired is recognised directly in equity. Gain or loss on disposal to minority 

interests is recognised directly in equity. 

2.6 Foreign currency 

(a) 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. 

(b) Foreign currency transactions 

Transactions in foreign currencies are measured in the respective functional currencies of the Company and its 

subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating 

those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are 

translated at the rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign 

currencies that are measured at historical cost are translated using the exchange rates as at the dates of the 

initial transactions. Non-monetary items denominated in foreign currencies measured at fair value are translated 

using the exchange rates at the date when the fair value was determined.

86 



31 31 January 2011 


2.6 Foreign currency (continued) 

(b) Foreign currency transactions (continued) 

Exchange differences arising on the settlement of monetary items or on translating monetary items at the 

reporting date are recognised in statements of comprehensive income except for exchange differences arising 

on monetary items that form part of the Group’s net investment in foreign operations, which are recognised 

initially in other comprehensive income and accumulated under foreign currency translation reserve in equity. 

The foreign currency translation reserve is reclassified from equity to consolidated statement of comprehensive 

income on disposal of the foreign operation. 

Exchange differences arising on the translation of non-monetary items carried at fair value are included in 

consolidated statement of comprehensive income for the period except for the differences arising on the 

translation 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. 

(c) Foreign operations 

The assets and liabilities of foreign operations are translated into RM at the rate of exchange ruling at the 

reporting date and income and expenses are translated at exchange rates at the dates of the transactions. The 

exchange differences arising on the translation are taken directly to other comprehensive income. On disposal 

of a foreign operation, the cumulative amount recognised in other comprehensive income and accumulated 

in equity under foreign currency translation reserve relating to that particular foreign operation is recognised in 

consolidated statement of comprehensive income. 

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and 

liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and 

translated at the closing rate at the reporting date. 

2.7 Property, plant and equipment and depreciation 

All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and 

equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the 

item will flow to the Group and to the Company and the cost of the item can be measured reliably. 

Subsequent to recognition, property, plant and equipment except for land and buildings are measured at cost 

less accumulated depreciation and accumulated impairment losses. When significant parts of property, plant and 

equipment are required to be replaced in intervals, the Group and the Company recognises such parts as individual 

assets with specific useful lives and depreciation, respectively. Likewise, when a major inspection is performed, its 

cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are 

satisfied. All other repair and maintenance costs are recognised in statement of comprehensive income as incurred. 

Land and buildings are measured at fair value less accumulated depreciation on buildings and leasehold land and 

impairment losses recognised after the date of the revaluation. Valuations are performed with sufficient regularity 

to ensure that the carrying amount does not differ materially from the fair value of the land and buildings at the 

reporting date.

NOTES NOTES TO THE TO THE FINANCIAL FINANCIAL STATEMENTS STATEMENTS 


2011 


2.7 Property, plant and equipment and depreciation (continued) 


Any revaluation surplus is recognised in other comprehensive income and accumulated in equity under the revaluation 

reserves, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in 

statement of comprehensive income, in which case the increase is recognised in statements of comprehensive 

income. A revaluation deficit is recognised in statements of comprehensive income, except to the extent that it 

offsets an existing surplus on the same asset carried in the revaluation reserves. 

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the 

asset and the net amount is restated to the revalued amount of the asset. The revaluation surplus included in the 

revaluation reserves in respect of an asset is transferred directly to retained earnings on retirement or disposal of the 

asset. 

Freehold land has an unlimited useful life and therefore is not depreciated. Leased assets are depreciated over the 

shorter of the lease term and their useful lives unless it is reasonably certain that the Group and the Company will 

obtain ownership by the end of the lease term. Depreciation is computed on a straight-line basis over the estimated 

useful lives of the assets as follows: 

Leasehold land 2% 

Buildings 2% 

Plant and machinery 10% - 40% 

Motor vehicles, office equipment, furniture and fittings, 

renovations and fixtures. 10% - 20% 

Tooling equipment utilised for specific product model included in plant and machinery are depreciated using units of 

production method. 

Assets under construction are not depreciated as these assets are not yet available for use. 

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in 

circumstances indicate that the carrying value may not be recoverable. 

The residual value, useful life and depreciation method are reviewed at the end of each financial year, and adjusted 

prospectively, if appropriate. 

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are 

expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the statements of 

comprehensive income in the financial year the asset is derecognised.

88 



31 31 January 2011 


2.8 Intangible assets 

(a) Goodwill 

Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated 

impairment losses. 

For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the 

Group’s cash-generating units that are expected to benefit from the synergies of the combination. 

The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever 

there is an indication that the cash-generating unit may be impaired, by comparing the carrying amount of the 

cash-generating unit, including the allocated goodwill, with the recoverable amount of the cash-generating 

unit. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment 

loss is recognised in the statement of comprehensive income. Impairment losses recognised for goodwill are not 

reversed in subsequent periods. 

Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating 

unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount 

of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed off in this 

circumstance is measured based on the relative fair values of the operations disposed off and the portion of the 

cash-generating unit retained. 

Goodwill and fair value adjustments arising on the acquisition of foreign operation on or after 1 January 2006 

are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the 

foreign operations and translated in accordance with the accounting policy set out in Note 2.6(b). 

Goodwill and fair value adjustments which arose on acquisitions of foreign operation before 1 January 2006 are 

deemed to be assets and liabilities of the Company and are recorded in RM at the rates prevailing at the date 

of acquisition. 

(b) Other intangible assets 

Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a 

business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets 

are measured at cost less any accumulated amortisation and accumulated impairment losses. 

Intangible assets with finite useful lives are amortised over the estimated 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 are reviewed at least at the end of the financial year. Changes in the expected useful life 

or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by 

changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. 

The amortisation expense on intangible assets with finite lives is recognised in statements of comprehensive 

income.



2011 


2.8 Intangible assets (continued) 

(b) Other intangible assets (continued) 


Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, or more 

frequently if the events and circumstances indicate that the carrying value may be impaired either individually or 

at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an intangible asset 

with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be 

supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. 

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the 

net disposal proceeds and the carrying amount of the asset and are recognised in statements of comprehensive 

income when the asset is derecognised. 

2.9 Impairment of non-financial assets 

The Group and the Company assesses at each reporting date whether there is an indication that an asset may be 

impaired. If any such indication exists, or when an annual impairment assessment for an asset is required, the Group 

and the Company makes an estimate of the asset’s recoverable amount. 

An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For the 

purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable 

cash flows (cash-generating units (“CGU”)). 

In assessing value in use, the estimated future cash flows expected to be generated by the asset 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 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. 

Impairment losses are recognised in statements of comprehensive income except for assets that are previously 

revalued where the revaluation was taken to other comprehensive income. In this case, the impairment is also 

recognised in other comprehensive income up to the amount of any previous revaluation. 

An assessment is made at each reporting date as to whether there is any indication that previously recognised 

impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed 

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. If that is the case, the carrying amount of the asset is increased to its recoverable 

amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, 

had no impairment loss been recognised previously. Such reversal is recognised in profit or loss unless the asset is 

measured at revalued amount, in which case the reversal is treated as a revaluation increase. Impairment loss on 

goodwill is not reversed in a subsequent period.

90 



31 31 January 2011 


2.10 Subsidiaries 

A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as to 

obtain benefits from its activities. 

In the Company’s separate financial statements, investment in subsidiaries are accounted for at cost less impairment 

losses. 

2.11 Associates 

An associate is an entity, not being a subsidiary or a joint venture, in which the Group has significant influence. An 

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. 

The Group’s investment in associates are accounted for using the equity method. Under the equity method, the 

investment in associates is measured in the consolidated statement of financial position at cost plus post-acquisition 

changes in the Group’s share of net assets of the associates. Goodwill relating to associates is included in the 

carrying amount of the investment. Any excess of the Group’s and 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 for 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, the Group does not 

recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. 

After application of the equity method, the Group determines whether it is necessary to recognise an additional 

impairment loss on the Group’s investment in its associates. The Group determines at each reporting date whether 

there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group 

calculates the amount of impairment as the difference between the recoverable amount of the associate and its 

carrying value and recognises the amount in consolidated statement of comprehensive income. 

In the Company’s separate financial statements, investment in associates are stated at cost less impairment losses. 

On disposal of such investment, the difference between net disposal proceeds and their carrying amounts is 

included in statements of comprehensive income. 

2.12 Financial assets 

Financial assets are recognised in the statements of financial position when, and only when, the Group and the 

Company become a party to the contractual provisions of the financial instrument. 

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not 

at fair value through profit or loss, directly attributable transaction costs. 

The Group and the Company determine the classification of their financial assets at initial recognition, and the 

categories include financial assets at fair value through profit or loss, loans and receivables, held-to-maturity 

investments and available-for-sale financial assets.



2011 


2.12 Financial assets (continued) 

(a) Financial assets at fair value through profit or loss 


Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading 

or are designated as such upon initial recognition. Financial assets held for trading are derivatives (including 

separated embedded derivatives) or financial assets acquired principally for the purpose of selling in the near 

term. 

Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair 

value. Any gains or losses arising from changes in fair value are recognised in statements of comprehensive 

income. Net gains or net losses on financial assets at fair value through profit or loss do not include exchange 

differences, interest and dividend income. Exchange differences, interest and dividend income on financial 

assets at fair value through profit or loss are recognised separately in statements of comprehensive income as 

part of other losses or other income. 

Financial assets at fair value through profit or loss could be presented as current or non-current. Financial 

assets that is held primarily for trading purposes are presented as current whereas financial assets that is not 

held primarily for trading purposes are presented as current or non-current based on the settlement date. 

(b) Loans and receivables 

Financial assets with fixed or determinable payments that are not quoted in an active market are classified as 

loans and receivables. 

Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective 

interest / finance method. Gains and losses are recognised in statements of comprehensive income when the 

loans and receivables are derecognised or impaired, and through the amortisation process. 

Loans and receivables are classified as current assets, except for those having maturity dates later than 12 

months after the reporting date which are classified as non-current. 

(c) Held-to-maturity investments 

Financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity 

when the Group and the Company has the positive intention and ability to hold the investment to maturity. 

Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the 

effective interest / finance method. Gains and losses are recognised in statements of comprehensive income 

when the held-to-maturity investments are derecognised or impaired, and through the amortisation process. 

Held-to-maturity investments are classified as non-current assets, except for those having maturity within 12 

months after the reporting date which are classified as current.

92 



31 31 January 2011 

2011 


2.12 Financial assets (continued) 

(d) Available-for-sale financial assets 

Available-for-sale financial assets are financial assets that are designated as available for sale or are not 

classified in any of the three preceding categories. 

After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or losses from 

changes in fair value of the financial assets are recognised in other comprehensive income, except that 

impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using 

the effective interest / finance method are recognised in profit or loss. The cumulative gain or loss previously 

recognised in other comprehensive income is reclassified from equity to statements of comprehensive income 

as a reclassification adjustment when the financial asset is derecognised. Interest / finance income calculated 

using the effective interest / finance method is recognised in statements of comprehensive income. Dividends 

on an available-for-sale equity instrument are recognised in statements of comprehensive income when the 

Group and the Company’s right to receive payment is established. 

Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less 

impairment loss. 

Available-for-sale financial assets are classified as non-current assets unless they are expected to be realised 

within 12 months after the reporting date. 

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. On 

derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the 

consideration received and any cumulative gain or loss that had been recognised in other comprehensive income 

is recognised in statements of comprehensive income. 

Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the 

period generally established by regulation or convention in the marketplace concerned. All regular way purchases 

and sales of financial assets are recognised or derecognised on the trade date i.e., the date that the Group and 

the Company commit to purchase or sell the asset. 

2.13 Impairment of financial assets 

The Group and the Company assess at each reporting date whether there is any objective evidence that a financial 

asset is impaired. 

(a) Trade and other receivables and other financial assets carried at amortised cost 

To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, 

the Group and the Company consider factors such as the probability of insolvency or significant financial 

difficulties of the debtos and default or significant delay in payments. For certain categories of financial 

assets, such as trade receivables, assets that are assessed not to be impaired individually are subsequently 

assessed for impairment on a collective basis based on similar risk characteristics. Objective evidence of 

impairment for a portfolio of receivables could include the Group’s and the Company’s past experience 

of collecting payments, an increase in the number of delayed payments in the portfolio past the average 

credit period and observable changes in national or local economic conditions that correlate with default 

on receivables.



2011 


2.13 Impairment of financial assets (continued) 


(a) Trade and other receivables and other financial assets carried at amortised cost (continued) 

If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s 

carrying amount and the present value of estimated future cash flows discounted at the financial asset’s 

original effective interest / finance rate. The impairment loss is recognised in statements of comprehensive 

income. 

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with 

the exception of trade receivables, where the carrying amount is reduced through the use of an allowance 

account. When a trade receivable becomes uncollectible, it is written off against the allowance account. 

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related 

objectively to an event occurring after the impairment was recognised, the previously recognised impairment 

loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the 

reversal date. The amount of reversal is recognised in statements of comprehensive income. 

(b) Unquoted equity securities carried at cost 

If there is objective evidence (such as significant adverse changes in the business environment where the 

issuer operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment 

loss on financial assets carried at cost has been incurred, the amount of the loss is measured as the difference 

between the asset’s carrying amount and the present value of estimated future cash flows discounted at 

the current market rate of return for a similar financial asset. Such impairment losses are not reversed in 

subsequent periods. 

(c) Available-for-sale financial assets 

Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer or obligor, 

and the disappearance of an active trading market are considerations to determine whether there is 

objective evidence that investment securities classified as available-for-sale financial assets are impaired. 

If an available-for-sale financial asset is impaired, an amount comprising the difference between its cost 

(net of any principal payment and amortisation) and its current fair value, less any impairment loss previously 

recognised in statements of comprehensive income, is transferred from equity to statements of comprehensive 

income. 

Impairment losses on available-for-sale equity investments are not reversed in statements of comprehensive 

income in the subsequent periods. Increase in fair value, if any, subsequent to impairment loss is recognised 

in other comprehensive income. For available-for-sale debt investments, impairment losses are subsequently 

reversed in statements of comprehensive income if an increase in the fair value of the investment can 

be objectively related to an event occurring after the recognition of the impairment loss in statement of 

comprehensive income.

94 



31 31 January 2011 


2.14 Cash and cash equivalents 

Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short-term, highly liquid 

investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of 

changes in value. These also include bank overdrafts that form an integral part of the Group’s and of the Company’s 

cash management. 

2.15 Construction contracts 

Where the outcome of a construction contract can be reliably estimated, contract revenue and contract costs 

are recognised as revenue and expenses respectively by using the stage of completion method. The stage of 

completion is measured by reference to the proportion of contract costs incurred for work performed to date to the 

estimated total contract costs. 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the 

extent of contract costs incurred that are likely to be recoverable. Contract costs are recognised as expense in the 

period in which they are incurred. 

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as 

an expense immediately. 

Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work, 

claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable 

of being reliably measured. 

When the total of costs incurred on construction contracts plus, recognised profits (less recognised losses), exceeds 

progress billings, the balance is classified as amount due from customers on contracts. When progress billings exceed 

costs incurred plus, recognised profits (less recognised losses), the balance is classified as amount due to customers 

on contracts. 

2.16 Inventories 

Inventories are stated at the lower of cost (determined on the first-in, first-out basis) and net realisable value. 

The cost of finished goods and work-in-progress includes direct materials, direct labour, other direct costs and 

appropriate proportion of production overheads. Net realisable value represents the estimated selling price less all 

estimated costs of completion and costs to be incurred in marketing, selling and distribution. 

Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion 

and the estimated costs necessary to make the sale. 

2.17 Provisions 

Provisions are recognised when the Group and the Company has a present obligation (legal or constructive) as a 

result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation 

and the amount of the obligation can be estimated reliably. 

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer 

probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If 

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. When discounting is used, the increase in the provision due to the 

passage of time is recognised as interest / finance cost.



2011 


2.18 Financial liabilities 


Financial liabilities are classified according to the substance of the contractual arrangements entered into and the 

definitions of a financial liability. 

Financial liabilities, within the scope of FRS 139, are recognised in the statement of financial position when, and 

only when, the Group and the Company become a party to the contractual provisions of the financial instrument. 

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial 

liabilities. 

(a) Financial liabilities at fair value through profit or loss 

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial 

liabilities designated upon initial recognition as at fair value through profit or loss. 

Financial liabilities held for trading include derivatives entered into by the Group and the Company that do not 

meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value and subsequently 

stated at fair value, with any resultant gains or losses recognised in statements of comprehensive income. Net 

gains or losses on derivatives include exchange differences. 

The Group and the Company have not designated any financial liabilities as at fair value through profit or 

loss. 

(b) Other financial liabilities 

The Group’s and the Company’s other financial liabilities include trade payables, other payables and loans 

and borrowings. 

Trade and other payables are recognised initially at fair value plus directly attributable transaction costs and 

subsequently measured at amortised cost using the effective interest / finance method. 

Borrowings / financing are recognised initially at fair value, net of transaction costs incurred, and subsequently 

measured at amortised cost using the effective interest / finance method. Borrowings / financing are classified 

as current liabilities unless the Group and the Company has an unconditional right to defer settlement of the 

liability for at least 12 months after the reporting date. 

For other financial liabilities, gains and losses are recognised in statements of comprehensive income when 

the liabilities are derecognised, and through the amortisation process. 

A financial liability is derecognised when the obligation under the liability is extinguished. When an existing financial 

liability is replaced by another from the same lender on substantially different terms, or the terms of an existing 

liability are substantially modified, such an exchange or modification is treated as a derecognition of the original 

liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in 

statements of comprehensive income.

96 



31 31 January 2011 

2011 


2.19 Borrowing / financing costs 

Borrowing / financing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to 

the acquisition, construction or production of that asset. Capitalisation of borrowing / financing costs commences 

when the activities to prepare the asset for its intended use or sale are in progress and the expenditures and 

borrowing / financing costs are incurred. Borrowing / financing costs are capitalised until the assets are substantially 

completed for their intended use or sale. 

All other borrowing / financing costs are recognised in statements of comprehensive income in the period they are 

incurred. Borrowing / financing costs consist of interest and other costs that the Group and the Company incurred 

in connection with the borrowing / financing of funds. 

2.20 Employee benefits 

(a) Short term benefits 

Wages, salaries, bonuses and social security contribution are recognised as an expense in the financial year 

in which the associated services are rendered by employees of the Group and of the Company. 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. Short term non-accumulating 

compensated absences such as sick leave are recognised when the absences occur. 

(b) Defined contribution plans 

2.21 Leases - As lessee 

The Group and the Company participates in the national pension schemes as defined by the laws of the 

countries in which it has operations. The Malaysian companies in the Group make contributions to the 

Employee Provident Fund in Malaysia, a defined contribution pension scheme. Contributions to defined 

contribution pension schemes are recognised as an expense in the period in which the related service is 

performed. 

Finance leases, which transfer to the Group and the Company substantially all the risks and rewards incidental to 

ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if 

lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the amount 

capitalised. Lease payments are apportioned between the interest / finance charges and reduction of the lease 

liability so as to achieve a constant rate of interest / finance on the remaining balance of the liability. Interest / 

finance charges are charged to statements of comprehensive income. Contingent rents, if any, are charged as 

expenses in the periods in which they are incurred. 

Leased assets are depreciated over the estimated useful life of the asset. However, if there is no reasonable certainty 

that the Group and the Company will obtain ownership by the end of the lease term, the asset is depreciated over 

the shorter of the estimated useful life and the lease term. 

Operating lease payments are recognised as an expense in statements of comprehensive income on a straight-line 

basis over the lease term. 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.



2011 


2.22 Discontinued operation 


A component of the Group is classified as a “discontinued operation” when the criteria to be classified as held for 

sale have been met or it has been disposed off and such a component represents a separate major line of business 

or geographical area of operations or is part of a single coordinated major line of business or geographical area of 

operations. A component is deemed to be held for sale if its carrying amounts will be recovered principally through 

a sale transaction rather than through continuing use. 

Upon classification as held for sale, non-current assets and disposal groups are not depreciated and are measured 

at the lower of carrying amount and fair value less costs to sell. Any differences are recognised in statements of 

comprehensive income. 

2.23 Revenue recognition 

Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to 

the enterprise and the amount of the revenue can be measured reliably. 

(a) Sale of goods 

Revenue from sale of goods is recognised net of sales taxes and discounts upon the transfer of significant risk 

and rewards of ownership of the goods to the customer. 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. 

(b) Construction contracts 

Revenue from construction contracts is accounted for by the stage of completion method as described in 

Note 2.15. 

(c) Dividend income 

Dividend income is recognised when the Group’s and the Company’s right to receive payment is 

established. 

(d) Management fees 

Management fees are recognised when service are rendered. 

(e) Rendering of services 

Revenue from services rendered is recognised as and when the services are performed. 

(f) Interest / finance income 

Interest / finance income is recognised using the effective interest / finance method.

98 



31 31 January 2011 

2011 


2.24 Income taxes 

(a) Current tax 

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the 

taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or 

substantively enacted by the reporting date. 

Current taxes are recognised in statements of comprehensive income except to the extent that the tax 

relates to items recognised outside statements of comprehensive income, either in other comprehensive 

income or directly in equity. 

(b) Deferred tax 

Deferred tax is provided using the liability method on temporary differences at the reporting date between 

the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. 

Deferred tax liabilities are recognised for all temporary differences, except: 

- where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in 

a transaction that is not a business combination and, at the time of the transaction, affects neither the 

accounting profit nor taxable profit or loss; and 

- in respect of taxable temporary differences associated with investments in subsidiaries, associates and 

interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled 

and it is probable that the temporary differences will not reverse in the foreseeable future. 

Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax 

credits and unused tax losses, to the extent that it is probable that taxable profit will be available against 

which the deductible temporary differences, and the carry forward of unused tax credits and unused tax 

losses can be utilised except: 

- where the deferred tax asset relating to the deductible temporary difference arises from the initial 

recognition of an asset or liability in a transaction that is not a business combination and, at the time of 

the transaction, affects neither the accounting profit nor taxable profit or loss; and 

- in respect of deductible temporary differences associated with investments in subsidiaries, associates 

and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable 

that the temporary differences will reverse in the foreseeable future and taxable profit will be available 

against which the temporary differences can be utilised. 

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent 

that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred 

tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are 

recognised to the extent that it has become probable that future taxable profit will allow the deferred tax 

assets to be utilised.



2011 


2.24 Income taxes (continued) 

(b) Deferred tax (continued) 


Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the financial 

year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been 

enacted or substantively enacted at the reporting date. 

Deferred tax relating to items recognised outside statements of comprehensive income is recognised outside 

statement of comprehensive income. Deferred tax items are recognised in correlation to the underlying 

transaction either in other comprehensive income or directly in equity and deferred tax arising from a business 

combination is adjusted against goodwill on acquisition. 

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current 

tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same 

taxation authority. 

(c) Sales tax 

2.25 Segment reporting 

Revenues, expenses and assets are recognised net of the amount of sales tax except: 

- Where the sales tax incurred in a purchase of assets or services is not recoverable from the taxation 

authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part 

of the expense item as applicable; and 

- Receivables and payables that are stated with the amount of sales tax included. 

- The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of 

receivables or payables in the statements of financial position. 

For management purposes, the Group is organised into operating segments based on their products and services 

which are independently managed by the respective segment managers responsible for the performance of 

the respective segments under their charge. The segment managers report directly to the management of the 

Company who regularly review the segment results in order to allocate resources to the segments and to assess 

the segment performance. Additional disclosures on each of these segments are shown in Note 37, including the 

factors used to identify the reportable segments and the measurement basis of segment information. 

2.26 Contingencies 

A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will 

be confirmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control 

of the Group and of the Company. 

Contingent liabilities and assets are not recognised in the statements of financial position of the Group and of the 

Company.

100 



31 31 January 2011 

2011 

2A. SUMMARY OF SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES 

The preparation of the Group’s and of the Company’s financial statements requires management to make 

judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and 

liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these 

assumptions and estimates could result in outcomes that could require a material adjustment to the carrying 

amount of the asset or liability affected in the future. 

Key sources of estimation uncertainty 

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date 

that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the 

next financial year are discussed below: 

(a) Income taxes and deferred tax asset 

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will 

be available against which the losses can be utilised. Significant management judgment is required to determine 

the amount of deferred tax assets that can be recognised, based on the likely timing and level of future taxable 

profits together with future tax planning strategies. 

Assumptions about generation of future taxable profits depend on management’s estimates of future cash 

flows. These depends on estimates of future production and sales volume, operating costs, capital expenditure, 

dividends and other capital management transactions. Judgment is also required about application of income 

tax legislation. These judgments and assumptions are subject to risks and uncertainty, hence there is a possibility 

that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets 

recognised in the statements of financial position and the amount of unrecognised tax losses and unrecognised 

temporary differences. 

The Group and the Company recognises liabilities for expected tax issues based on estimates of whether additional 

taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially 

recognised, such differences will impact the income tax and deferred tax provisions in the period in which such 

determination is made. 

The carrying amounts of the Group and of the Company tax payables and deferred tax assets / (liabilities) are as 

disclosed in Note 11 and 28. 

(b) Impairment of property, plant and equipment 

The Group and the Company carried out the impairment test when indication exists and based on a variety of 

estimation including the value-in-use of the property, plant and equipment. Estimating the value-in-use requires 

the Group and the Company to make an estimate of expected future cash flows and also to choose a suitable 

discount rate in order to calculate the present value of those cash flows. The carrying amounts of the property, 

plant and equipment of the Group and of the Company as at 31 January 2011 are disclosed in Note 13.



3. REVENUE 


Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Sales of goods 679,533,943 560,346,162 - - 

Construction contracts 81,642,756 90,199,106 - - 

Rendering of services - 76,899 - - 

Dividend income from subsidiaries - - 4,666,667 2,000,000 

Management fees from subsidiaries - - 9,141,550 2,181,504 

761,176,699 650,622,167 13,808,217 4,181,504 

4. COST OF SALES 

2011 

Group 

2010 

RM RM 

Costs of goods sold 572,205,892 474,248,700 

Construction contract costs 79,690,153 82,305,422 

Costs of services rendered - 45,994 

651,896,045 556,600,116 

5. INTEREST / FINANCE INCOME 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Interest / finance income from: 

Loans and receivables 597,704 331,976 5,175,923 1,907,239

102 


Notes to the Financial Statements 


6. OTHER INCOME 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Foreign exchange gain 

- unrealised 75,400 2,111,812 - - 

- realised 

Gain on disposal of investment in an 

878,318 247,592 - - 

associate company 

Gain on disposal of property, 

7,619,088 - - - 

plant and equipment 6,566,776 37,778 14,500 - 

Insurance claim received - 5,974,084 - - 

Miscellaneous income 2,766,732 3,015,197 140,763 131,516 

17,906,314 11,386,463 155,263 131,516 

7. INTEREST / FINANCE COSTS 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Interest / finance costs on: 

- Al-Ijarah lease and 

Murabahah 217,098 384,311 - - 

- Sukuk Al-Ijarah 3,875,907 10,056,256 - - 

- Syndicated CMTF-i 4,927,976 - 4,927,976 - 

- Bank borrowings 6,085,720 6,689,500 287,652 289,753 

- Hire purchase 93,133 130,688 6,411 - 

- Others 1,338,333 1,293,600 3,452 3,001,869 

16,538,167 18,554,355 5,225,491 3,291,622



8. PROFIT / (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 

The following amounts have been included in arriving at profit / (loss) before tax: 


Group 

Restated 

Company 

2011 2010 2011 2010 

RM RM RM RM 

Employee benefits expense (Note 9) 

Non-executive directors’ 

76,582,009 63,324,907 6,205,646 4,606,025 

remuneration (Note 10) 

Auditors’ remuneration 

148,700 160,900 148,700 160,900 

- statutory audits 405,289 414,863 30,000 30,000 

- other services 23,025 21,399 23,025 21,399 

Rental expense 2,643,461 3,063,519 625,166 468,819 

Provision for foreseeable losses 3,612,461 223,934 - - 

Impairment loss on goodwill - 221,792 - - 

Write-down of investories - 41,704 - - 

Provision for obsolete inventories 

Loss on disposal of investment in a 

2,333,146 - - - 

subsidiary company 

Impairment loss on investment 

1,421,615 - - - 

in an associate company 

Property, plant and equipment 

- - 960,000 - 

- depreciation 68,078,987 50,860,237 167,345 156,744 

- written off 199,895 7,026,528 56,358 - 

Amortisation of intangible assets 673,187 1,217,492 6,745 11,688 

Allowance for doubtful debts 

Foreign exchange losses 

341,747 1,073,879 - - 

- unrealised 69,697 21,159 - 19,774 

- realised 150,789 1,351,011 1,161 17,598 

9. EMPLOYEE BENEFITS EXPENSE 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Wages and salaries 52,262,657 45,406,842 4,128,227 3,423,681 

Bonus 4,389,365 1,123,494 538,262 - 

Pension costs - defined contribution plans 5,486,762 4,722,962 601,867 475,078 

Other costs 14,443,225 12,071,609 937,290 707,266 

76,582,009 63,324,907 6,205,646 4,606,025 

Included in employee benefits expense of the Group and of the Company are executive directors’ remuneration 

amounting to RM6,119,113 (2010: RM6,426,678) and RM626,162 (2010: RM518,188) respectively, as further disclosed 

in Note 10.

104 




10. DIRECTORS’ REMUNERATION 

Directors of the Company 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Executive: 

Salaries and other emoluments 1,748,913 1,849,334 537,858 518,188 

Fees 24,000 24,000 - - 

Bonus 153,726 48,130 88,304 - 

Benefits-in-kind 21,600 21,600 14,400 14,400 

1,948,239 1,943,064 640,562 532,588 

Non-executive: 

Fees 130,000 140,000 130,000 140,000 

Allowances 18,700 15,600 18,700 15,600 

Benefits-in-kind - 5,300 - 5,300 

148,700 160,900 148,700 160,900 

Other directors 

Executive: 

Salaries and other emoluments 3,766,970 4,400,542 - - 

Fees 12,000 12,000 - - 

Bonus 413,504 92,672 - - 

Benefits-in-kind 16,800 14,400 - - 

4,209,274 4,519,614 - - 

Total 6,306,213 6,623,578 789,262 693,488 

Analysis excluding benefits-in-kind: 

Total executive directors’ remuneration 6,119,113 6,426,678 626,162 518,188 

Total non-executive directors’ remuneration 148,700 155,600 148,700 155,600 

Total directors’ remuneration 6,267,813 6,582,278 774,862 673,788



10. DIRECTORS’ REMUNERATION (CONTINUED) 


The number of directors of the Company whose total remuneration at the Group during the financial year fell within 

the following bands is analysed below: 

Number of Directors 

2011 2010 

Executive directors: 

RM550,001 - RM600,000 1 1 

RM600,001 - RM650,000 1 - 

RM650,001 - RM700,000 - 1 

RM700,001 - RM750,000 - 1 

RM750,001 - RM800,000 1 - 

Non-Executive directors: 

Below RM50,000 4 5 

11. INCOME TAX EXPENSE 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Income tax: 

Malaysian income tax 4,542,226 1,631,664 1,166,667 - 

Foreign income tax 6,096 102,684 - - 

Under / (overprovision) in prior years 37,325 (546,391 ) - 949,131 

4,585,647 1,187,957 1,166,667 949,131 

Deferred tax (Note 28): 

Relating to origination and reversal 

of temporary differences 506,950 106,754 - - 

Overprovision in prior years (3,820,277 ) (262,917 ) - - 

(3,313,327 ) (156,163 ) - - 

Total income tax expense 1,272,320 1,031,794 1,166,667 949,131

106 




11. INCOME TAX EXPENSE (CONTINUED) 

The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate 

tax rate for the financial years ended 31 January 2011 and 2010 are as follows: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Profit / (loss) before tax 

Tax at Malaysian statutory tax rate 

31,055,109 19,576,127 4,492,347 (3,451,628 ) 

of 25% (2010: 25%) 7,763,777 4,894,032 1,123,087 (862,907 ) 

Different tax rates in other countries 1,116,242 407,165 - - 

Income not subject to tax (5,817,245 ) (785,145 ) - (500,000 ) 

Expenses not deductible for tax purposes 

Effect of utilisation of reinvestment 

allowance and investment 

3,351,078 1,560,506 279,751 32,015 

tax allowance 

Utilisation of previously unused tax losses 

(3,256,549 ) (5,134,225 ) - - 

and unabsorbed allowances 

Deferred tax assets not recognised on 

unused tax losses and 

(324,132 ) (651,833 ) (236,171 ) - 

unabsorbed allowances 

Overprovision of deferred tax 

2,222,101 1,550,602 - 1,330,892 

in prior years 

Under / (overprovision) of tax expense 

(3,820,277 ) (262,917 ) - - 

in prior years 

Total income tax expense 

37,325 (546,391 ) - 949,131 

for the financial year 1,272,320 1,031,794 1,166,667 949,131 

Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2010: 25%) of the estimated assessable 

profit / (loss) for the financial year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective 

jurisdictions. 

The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.



11. INCOME TAX EXPENSE (CONTINUED) 

Tax savings during the financial year arising from: 


Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Utilisation of unabsorbed capital 

allowances brought forward 

Utilisation of reinvestment allowances and 

437,816 807,863 - - 

tax allowances brought forward 

Utilisation of unabsorbed losses 

6,070,274 2,260,557 147,249 - 

brought forward 

Utilisation of current year capital 

- 946,426 - - 

allowances 6,969,423 16,222,995 17,534 - 

Utilisation of current year losses 83,372 681,393 - 476,810 

12. EARNINGS PER SHARE 

Basic earnings per share of the Group is calculated by dividing profit for the financial year, net of tax attributable to 

owners of the parent by the weighted average number of ordinary shares outstanding during the financial year. 

Group 

2011 2010 

Profit for the financial year, net of tax attributable to owners of the parent 17,124,330 10,810,863 

Weighted average number of ordinary shares outstanding 76,800,000 76,800,000 

Basic earnings per share (sen) 22.3 14.1

108 




13. PROPERTY, PLANT AND EQUIPMENT 

Property, 

plant and 

Land and Plant and equipment Other 

buildings * machinery in progress assets ** Total 

Group RM RM RM RM RM 

At 31 January 2011 

Cost / valuation 


As previously stated 146,943,530 584,967,001 14,310,315 55,630,180 801,851,026 

Effects of adopting the 

amendmends to FRS 117 17,014,922 - - - 17,014,922 

As restated 163,958,452 584,967,001 14,310,315 55,630,180 818,865,948 

Additions 1,757,524 2,452,477 26,587,985 2,801,704 33,599,690 

Disposals - (7,808,705 ) (2,421,132 ) (353,683 ) (10,583,520 ) 

Write-offs 

Transfer to assets of disposal 

group classified as held 

- (160,200 ) - (500,619 ) (660,819 ) 

for sale (Note 22(a)) - - - (1,515,538 ) (1,515,538 ) 

Reclassification - 1,023,858 (1,023,858 ) - - 

Adjustments - (2,845,171 ) (999,661 ) - (3,844,832 ) 

Exchange differences (2,707,934 ) (11,255,640 ) (548,787 ) (353,020 ) (14,865,381 ) 

At 31 January 2011 163,008,042 566,373,620 35,904,862 55,709,024 820,995,548 

Representing: 

Cost 21,916,614 566,373,620 35,904,862 55,709,024 679,904,120 

Valuation 141,091,428 - - - 141,091,428 

163,008,042 566,373,620 35,904,862 55,709,024 820,995,548



13. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 


Property, 

plant and 



Group (continued) RM RM RM RM RM 


Accumulated depreciation 

and impairment 


As previously stated 


12,468,448 436,201,544 - 38,875,109 487,545,101 

amendments to FRS 117 750,348 - - - 750,348 

As restated 13,218,796 436,201,544 - 38,875,109 488,295,449 

Charge for the financial year 3,804,832 57,922,370 - 6,351,785 68,078,987 

Disposals - (5,088,132 ) - (353,182 ) (5,441,314 ) 

Write-offs 



- (58,518 ) - (402,406 ) (460,924 ) 

for sale (Note 22(a)) - - - (975,116 ) (975,116 ) 

Adjustments - (1,558,256 ) - - (1,558,256 ) 

Exchange differences (642,860 ) (7,181,128 ) - (290,922 ) (8,114,910 ) 

At 31 January 2011 16,380,768 480,237,880 - 43,205,268 539,823,916 

Net carrying amount 

Cost 18,279,854 86,135,740 35,904,862 12,503,756 152,824,212 

Valuation 128,347,420 - - - 128,347,420 

146,627,274 86,135,740 35,904,862 12,503,756 281,171,632

110 





Property, 

plant and 





Cost/valuation 


As previously stated 120,437,850 531,338,721 17,397,282 49,408,990 718,582,843 


amendments to FRS 117 26,377,959 - - - 26,377,959 

As restated 146,815,809 531,338,721 17,397,282 49,408,990 744,960,802 

Additions 37,557 21,205,605 7,818,529 7,276,904 36,338,595 

Disposals - (192,773 ) - (413,979 ) (606,752 ) 

Write-offs - (13,205,907 ) (1,022,794 ) (699,179 ) (14,927,880 ) 

Revaluation surplus 



26,368,258 - - - 26,368,258 

for sale (Note 22(b)) (9,796,958 ) - - - (9,796,958 ) 

Reclassification - 9,725,497 (9,725,497 ) - - 

Adjustments - 34,378,153 (982,972 ) - 33,395,181 

Exchange differences 533,786 1,717,705 825,767 57,444 3,134,702 

At 31 January 2010 (as restated) 163,958,452 584,967,001 14,310,315 55,630,180 818,865,948 

Representing: 

Cost 22,442,443 584,967,001 14,310,315 55,630,180 677,349,939 

Valuation 141,516,009 - - - 141,516,009 

163,958,452 584,967,001 14,310,315 55,630,180 818,865,948





Property, 

plant and 






and impairment 




10,950,793 402,806,706 - 33,245,693 447,003,192 

amendments to FRS 117 438,404 - - - 438,404 

As restated 11,389,197 402,806,706 - 33,245,693 447,441,596 

Charge for the financial year 3,668,365 40,506,593 - 6,685,279 50,860,237 

Disposals - (192,773 ) - (406,755 ) (599,528 ) 

Write-offs 

Elimination of accumulated 

depreciation on 

- (7,205,905 ) - (695,447 ) (7,901,352 ) 

revaluation surplus 



(1,685,020 ) - - - (1,685,020 ) 

for sale (Note 22(b)) (197,918 ) - - - (197,918 ) 

Exchange differences 44,172 286,923 - 46,339 377,434 

At 31 January 2010 (as restated) 13,218,796 436,201,544 - 38,875,109 488,295,449 


Cost 19,100,372 148,765,457 14,310,315 16,755,071 198,931,215 

Valuation 131,639,284 - - - 131,639,284 

150,739,656 148,765,457 14,310,315 16,755,071 330,570,499 

** Other assets comprise motor vehicles, office equipment, furniture and fittings, renovations and fixtures.

112 





* Land and buildings 

Long term Long term 

leasehold leasehold Freehold Freehold 

buildings land land buildings Total 

Group RM RM RM RM RM 


Cost / valuation 


As previously stated 62,305,258 - 20,486,951 64,151,321 146,943,530 


amendments to FRS 117 - 17,014,922 - - 17,014,922 

As restated 62,305,258 17,014,922 20,486,951 64,151,321 163,958,452 

Additions 1,757,524 - - - 1,757,524 

Exchange differences (164,970 ) (477,936 ) (507,176 ) (1,557,852 ) (2,707,934 ) 

At 31 January 2011 63,897,812 16,536,986 19,979,775 62,593,469 163,008,042 

Representing: 

Cost 5,379,628 16,536,986 - - 21,916,614 

Valuation 58,518,184 - 19,979,775 62,593,469 141,091,428 

63,897,812 16,536,986 19,979,775 62,593,469 163,008,042 





4,753,952 - - 7,714,496 12,468,448 

amendments to FRS 117 - 750,348 - - 750,348 

As restated 4,753,952 750,348 - 7,714,496 13,218,796 

Charge for the financial year 1,750,231 165,621 - 1,888,980 3,804,832 

Exchange differences (41,260 ) (252,537 ) - (349,063 ) (642,860 ) 

At 31 January 2011 6,462,923 663,432 - 9,254,413 16,380,768 


Cost 2,406,300 15,873,554 - - 18,279,854 

Valuation 55,028,589 - 19,979,775 53,339,056 128,347,420 

57,434,889 15,873,554 19,979,775 53,339,056 146,627,274











Cost/valuation 


As previously stated 42,550,778 - 19,004,410 58,882,662 120,437,850 


amendments to FRS 117 - 26,377,959 - - 26,377,959 

As restated 42,550,778 26,377,959 19,004,410 58,882,662 146,815,809 

Additions 37,557 - - - 37,557 

Revaluation surplus 



19,424,646 - 1,606,141 5,337,471 26,368,258 

for sale (Note 22(b)) - (9,796,958 ) - - (9,796,958 ) 

Exchange differences 292,277 433,921 (123,600 ) (68,812 ) 533,786 

At 31 January 2010 (as restated) 62,305,258 17,014,922 20,486,951 64,151,321 163,958,452 

Representing: 

Cost 5,427,521 17,014,922 - - 22,442,443 

Valuation 56,877,737 - 20,486,951 64,151,321 141,516,009 

62,305,258 17,014,922 20,486,951 64,151,321 163,958,452

114 













As previously stated 3,413,480 - - 7,537,313 10,950,793 


amendments to FRS 117 - 438,404 - - 438,404 

As restated 3,413,480 438,404 - 7,537,313 11,389,197 

Charge for the financial year 

Elimination of accumulated 

depreciation on 

1,282,606 509,862 - 1,875,897 3,668,365 

revaluation surplus 



- - - (1,685,020 ) (1,685,020 ) 

for sale (Note 22(b)) - (197,918 ) - - (197,918 ) 

Exchange differences 57,866 - - (13,694 ) 44,172 

At 31 January 2010 (as restated) 4,753,952 750,348 - 7,714,496 13,218,796 


Cost 2,835,798 16,264,574 - - 19,100,372 

Valuation 54,715,508 - 20,486,951 56,436,825 131,639,284 

57,551,306 16,264,574 20,486,951 56,436,825 150,739,656





Office 

equipment 

Motor Furniture and 

Renovations vehicles and fittings computers Total 

Company RM RM RM RM RM 


Cost 

At 1 February 2010 568,049 98,784 160,361 1,259,162 2,086,356 

Additions - 816,373 4,217 65,983 886,573 

Disposals (244,075 ) - (14,000 ) - (258,075 ) 

Write offs (323,974 ) - (15,271 ) (17,982 ) (357,227 ) 

At 31 January 2011 - 915,157 135,307 1,307,163 2,357,627 


At 1 February 2010 481,267 89,994 122,302 1,118,134 1,811,697 

Charge for the financial year 30,421 35,932 13,446 87,546 167,345 

Disposals (243,620 ) - (13,955 ) - (257,575 ) 

Write offs (268,068 ) - (15,234 ) (17,567 ) (300,869 ) 

At 31 January 2011 - 125,926 106,559 1,188,113 1,420,598 

Net carrying amount - 789,231 28,748 119,050 937,029 


Cost 

At 1 February 2009 568,049 273,028 160,361 1,252,992 2,254,430 

Additions - - - 6,170 6,170 

Disposals - (174,244 ) - - (174,244 ) 

At 31 January 2010 568,049 98,784 160,361 1,259,162 2,086,356 


At 1 February 2009 442,950 244,480 108,047 1,033,719 1,829,196 

Charge for the financial year 38,317 19,757 14,255 84,415 156,744 

Disposals - (174,243 ) - - (174,243 ) 

At 31 January 2010 481,267 89,994 122,302 1,118,134 1,811,697 

Net carrying amount 86,782 8,790 38,059 141,028 274,659

116 





(a) Property, plant and equipment were revalued during the financial year ended 31 January 2010 by an independent 

professional valuer. Fair value is determined by reference to open market values on an existing use basis. 

Year of Valuation Basis of 

Valuation Description of Property Amount Valuation 

RM 

2009 Land and factory at Bangi 4,300,000 Open market value 

2009 Land and factory at Nilai 20,000,000 Open market value 

2009 Land and factory at Bukit Beruntung 37,500,000 Open market value 

2009 Land and building at Sungai Penchala 50,000,000 Open market value 

2009 Land and factory at Rayong, Thailand 23,000,000 Open market value 

2009 Land and factory at Ayutthaya, Thailand 13,500,000 Open market value 

2009 Land and factory at Cikarang, Indonesia 4,700,000 Open market value 

2009 Staff accommodation at Nilai 630,000 Open market value 

2009 Staff accommodation at Bukit Beruntung 1,320,000 Open market value 

2009 Land at Nilai 250,000 Open market value 

Had the revalued land and buildings been carried at historical costs, the net book value of the land and buildings 

that would have been included in the financial statements of the Group as at 31 January 2011 would have been 

RM97,244,424 (2010: RM100,063,975). 

(b) Net book values of property, plant and equipment held under hire purchase arrangements are as follows: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Motor vehicles 1,532,802 1,276,674 789,160 - 

Plant and machinery 741,803 2,093,269 - - 

(c) During the financial year, the Group and the Company acquired property, plant and equipment of which RM816,373 

(2010: RM149,303) and RM816,373 (2010: Nil) respectively were aquired by means of hire purchase, finance lease 

and Al-Ijarah lease arrangements.





(d) The net book values of properties pledged to financial institutions during the financial year for Syndicated CMTF-i 

as referred to in Note 23 are as follows: 

Group 

2011 

RM 

Long term leasehold land 13,051,889 

Long term leasehold buildings 55,881,666 

Freehold land 9,200,000 

Freehold buildings 28,964,148 

107,097,703 

(e) The net book values of property, plant and equipment pledged to financial institutions for other borrowings / 

financing as referred to in Note 23 are as follows: 

Group 

2011 2010 

RM RM 

Freehold land 10,529,775 11,036,951 

Freehold buildings 23,816,560 26,305,152 

Plant and machinery 55,335,331 63,024,344 

89,681,666 100,366,447 

14. INTANGIBLE ASSETS 

Goodwill 

Computer 

Software Total 

Group RM RM RM 

Cost 

At 31 January 2009 573,001 9,633,970 10,206,971 

Additions - 196,500 196,500 

Write-offs - (85,164 ) (85,164 ) 

Exchange differences - (53,415 ) (53,415 ) 

At 31 January 2010 573,001 9,691,891 10,264,892 

Additions - 189,659 189,659 

Write-offs 

Transfer to assets of disposal group classified as held 

- (8,492 ) (8,492 ) 

for sale (Note 22(a)) - (150,642 ) (150,642 ) 


At 31 January 2011 573,001 9,490,089 10,063,090

118 




14. INTANGIBLE ASSETS (CONTINUED) 

Computer 

Goodwill Software Total 

Group (continued) RM RM RM 

Accumulated amortisation and impairment 

At 31 January 2009 273,357 4,882,608 5,155,965 

Amortisation - 1,217,492 1,217,492 

Write-offs - (85,164 ) (85,164 ) 

Impairment loss 221,792 - 221,792 


At 31 January 2010 495,149 5,532,722 6,027,871 

Amortisation - 673,187 673,187 

Write-offs - (5,004 ) (5,004 ) 

Transfer to assets of disposal group classified as held 

for sale (Note 22(a)) - (90,758 ) (90,758 ) 


At 31 January 2011 495,149 6,024,125 6,519,274 


At 31 January 2010 77,852 4,159,169 4,237,021 

At 31 January 2011 77,852 3,465,964 3,543,816 

Computer Software 

2011 2010 

Company RM RM 

Cost 

At 1 February 69,437 67,787 

Additions - 1,650 

At 31 January 69,437 69,437 

Accumulated amortisation 

At 1 February 52,810 41,122 

Amortisation 6,745 11,688 

At 31 January 59,555 52,810 


At 31 January 9,882 16,627



14. INTANGIBLE ASSETS (CONTINUED) 

Impairment tests for goodwill 


Goodwill has been allocated to the Group’s CGUs identified according to country of operation and business 

segment as follows: 

Allocation of goodwill 

Group 

2011 2010 

RM RM 

Automotive Components Manufacturing 

Thailand 77,852 77,852 

Key assumptions used in value-in-use calculations 

The recoverable amount is determined based on value-in-use calculations using cash flow projections based 

on financial budgets approved by management covering a five-year period. The following describes each 

key assumption on which management has based its cash flow projections to undertake impairment testing of 

goodwill: 

(a) Budgeted gross margin 

The budgeted gross margin assigned to Automotive Division is 17.8% (2010: 15.0%) and Power Engineering 

and Projects Division is 9.6% (2010: 12.6%) respectively. The basis used to determine the value assigned 

to the budgeted gross margins is the average gross margins achieved in the financial year immediately 

before the budgeted year. 

(b) Growth rates 

The weighted average growth rates used for Automotive Component Manufacturing are consistent with 

the long-term average growth rate for the industry. 

(c) Discount rates 

The discount rate used for Group is 6.4% (2010: 5.3%). These rates are pre-tax and reflect specific risks 

relating to the industry. 

(d) Bond rate 

The bond rates used is the yield on a 10-year Malaysian government bond rate at the beginning of the 

budgeted year. 

(e) Raw materials price inflation 

The basis used to determine the value assigned to the raw materials price inflation is the forecast price 

indices during the budget year. Values assigned to key assumptions are consistent with external information 

sources.

120 




15. INVESTMENT IN SUBSIDIARIES 

Group 

2011 2010 

RM RM 

Unquoted shares, at cost 108,653,883 108,653,883 

Details of the subsidiaries are as follows: 

Effective equity 

Country of interest held 

Name of subsidiaries incorporation 2011 2010 Principal activities 

% % 

Ingress Technologies Malaysia 70 70 

Sdn Bhd 

Ingress Autoventures Thailand 62.5 73 

Co., Ltd * 

Fine Components Thailand 100 100 

(Thailand) Co., Ltd * 

PT Ingress Malindo Indonesia 81 72 

Ventures * 

Ingress Engineering Malaysia 100 100 

Sdn Bhd 

Ingress Precision Sdn Bhd Malaysia 90 90 

Ingress CES Sdn Bhd * Malaysia 70 70 

Ingress Research Sdn Bhd Malaysia 100 100 

Manufactures and supplies 

complete automotive door 

assemblies (door-in-white) and 

manufactures and assembles 

medium to high tonnage press 

parts 

Manufactures automotive 

components 

Manufactures and supplies metal 

components for the automotive 

industry utilising fine blanking 

technology 

Manufactures automotive 

components 

Manufactures and supplies rollformed 

plastic mouldings and 

weather-strips, wire-harness and 

provision of management services 


metal automotive door 

sash (door frame) and related 

components 

Provides design, stamping, 

fabrication and project 

management of small and medium 

dies, assembly jigs and checking 

fixtures in automotive industry 

Provides engineering services in 

the field of computer aided design, 

manufactures tools, jigs and dies 

and undertakes comprehensive 

product development work



15. INVESTMENT IN SUBSIDIARIES (CONTINUED) 

Details of the subsidiaries are as follows: (continued) 




Name of subsidiaries incorporation 2011 2010 Principal activities 

% % 

Talent Synergy Sdn Bhd Malaysia 100 100 

Ingress Auto Sdn Bhd Malaysia 100 100 

Multi Discovery Sdn Bhd Malaysia 100 100 

Ramusa Engineering Malaysia 95 95 

Sdn Bhd 

Ingress Fabricators Malaysia 100 100 

Sdn Bhd * 

Ingress Sukuk Berhad * Malaysia 100 100 

Matrix Power Services Malaysia 80 80 

Sdn Bhd ** 

Ingress Environmental Malaysia 100 100 

Sdn Bhd * 

PT Ingress Amdec Indonesia 51 51 

Environmental * 

Matrix Hydro Generation Sdn Bhd * Malaysia 70 70 

Ingress Automotive Malaysia 100 100 

Electrical Sdn Bhd * 

PT Bina Selaras Tradindo * Indonesia 60 60 

* Audited by firms of auditors other than Ernst & Young. 

** Classified as disposal group classified as held for sale as disclosed in Note 22(a). 

Provides engineering solutions 

in industrial automation through 

design and fabrication as well 

as manufactures and supplies 

sub-systemaor system for the 

applications in production and 

testing 

Premium motor vehicle dealership, 

services center and spare parts 

sales 

Provides engineering services for 

the power and utility industry 

Provides electrical engineering 

services for power and utility 

industry, particularly in building, 

infrastructure and distribution 

network 

Provides engineering services 

and supply of instrumentation 

equipment for oil and gas industry. 

Dormant 

Manufactures and supplies panelbased 

electrical equipment and 

provides electrical engineering 

services for power and utility 

industry 

Dormant 

Dormant 

Dormant 

Dormant 

Dormant

122 




15. INVESTMENT IN SUBSIDIARIES (CONTINUED) 

Disposal of shares in a subsidiary company 

On 8 September 2010, the Group via its subsidiary company, Ingress Precision Sdn Bhd (“IPSB”) disposed off 11.2% 

or 268,994 ordinary shares of THB100 each in Ingress Autoventures Co., Ltd (“IAV”) with a cash consideration of 

THB66,710,512 or RM6,337,403 to Katayama Kogyo Co., Ltd, a foreign corporate shareholder of IAV and IPSB. 

The disposal had the following effects on the financial position of the Group as at the end of the financial year: 

Group 

2011 

RM 

Property, plant and equipment 95,444,552 

Intangible assets 2,863,776 

Inventories 9,478,388 

Trade and other receivables 32,461,349 

Cash and bank balances 3,328,913 

Trade and other payables (34,449,810 ) 

Borrowings / financing (39,850,226 ) 

Net assets as at 8 September 2010 69,276,942 

Share of net assets disposed 7,759,018 

Total disposal proceeds settled by cash (6,337,403 ) 

Loss on disposal to the Group 1,421,615 

Acquisition of minority interests 

On 27 January 2011, the Group via its subsidiary company, Ingress Precision Sdn Bhd acquired additional 10% or 

126,475 ordinary shares of IDR8,875 each in PT Ingress Malindo Ventures (“PTIMV”) from its minority interest for a cash 

consideration of IDR1,122 million or RM379,393. As a result of this acquisition, the effective equity interest of the Group 

in PTIMV increased from 72% to 81%.



16. INVESTMENT IN ASSOCIATES 


Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Unquoted investments, at cost 3,046,258 1,377,500 960,000 960,000 

Share of post-acquisition reserves 4,837,366 9,796,218 - - 

Share of hedging reserves (5,013,185 ) - - - 

2,870,439 11,173,718 960,000 960,000 

Less: Accumulated impairment losses (50,000 ) (50,000 ) (960,000 ) - 

2,820,439 11,123,718 - 960,000 

Represented by: 

Share of net assets 2,820,439 11,123,718 - 960,000 

Details of associates are as follows: 



Name of associates incorporation 2011 2010 Principal activities 

% % 

Balfour Beatty Rail Malaysia 30 49 

Sdn Bhd * 

Ingress Mayur Auto Ventures India 40 - 

Private Limited * 

Maju Nusa Sdn Bhd * Malaysia 49 9 

Sapura Ingress Ventures Malaysia 50 50 

Sdn Bhd * 

* Audited by firm of auditors other than Ernst & Young. 

Rail electrification works and 

maintenance activities 


plastic mouldings 

Telecommunication 

Dormant

124 




16. INVESTMENT IN ASSOCIATES (CONTINUED) 

Summarised financial information of associates are as follows: 

Group 

2011 2010 

RM RM 

Assets and liabilities 

Non-current assets 14,017,889 5,630,449 

Current assets 204,947,337 178,123,417 

Total assets 218,965,226 183,753,866 

Non-current liabilities 24,424,483 - 

Current liabilities 191,176,807 161,052,401 


Results 

Revenue 65,907,792 65,779,321 

(Loss) / profit for the financial year (2,626,916 ) 1,005,547 

Disposal of shares in an associate company 

On 8 April 2010, the Group via its subsidiary company, Multi Discovery Sdn Bhd disposed off 19% or 142,500 ordinary 

shares in Balfour Beatty Rail Sdn Bhd for a cash consideration of RM11,400,000 to Balfour Beatty Netherlands B.V., a 

company incorporated in Netherlands. The disposal of shares resulted in a gain on disposal of RM7,619,088. 

Subscription of shares in an associate company 

On 16 December 2010, the Group via its subdiary company, Ingress Engineering Sdn Bhd subscribed for 2,657,870 

new Ingress Mayur Auto Ventures Private Limited (“IMAPL”) ordinary shares of Indian Rupee (“INR”) 10 each 

representing 40% equity interest in IMAPL. 

17. INVESTMENT SECURITIES 

Group 

2011 2010 

RM RM 

Unquoted shares classified as available-for-sale financial assets 100,000 100,000



18. INVENTORIES 


Group 

2011 2010 

RM RM 

At cost: 

Raw materials and consumables 17,515,109 26,021,962 

Work-in-progress 9,034,294 13,126,834 

Finished goods 4,676,131 4,239,044 

Trading stock 10,616,150 19,257,818 

Spare parts 3,079,703 4,584,293 

At net realisable value: 

44,921,387 67,229,951 

Finished goods 57,697 349,581 

44,979,084 67,579,532 

19. TRADE AND OTHER RECEIVABLES 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Current 

Trade receivables 

Third party 86,374,447 93,502,460 - - 

Retention sums on contracts (Note 20) 12,425,262 12,403,945 - - 

98,799,709 105,906,405 - - 

Due from customers on contracts (Note 20) 36,605,168 40,411,661 - - 

135,404,877 146,318,066 - - 

Less: Allowance for impairment (9,899,168 ) (10,093,358 ) - - 

Trade receivables, net 125,505,709 136,224,708 - - 

Other receivables 

Due from subsidiaries - - 40,717,965 47,287,657 

Loan to subsidiaries - - 10,000,000 - 

Due from associates 429,050 507,250 356,030 507,250 

Deposits 988,585 1,021,307 30,713 168,755 

Prepayments 4,085,381 4,799,625 18,135 16,658 

Sundry receivables 23,107,606 26,448,855 297,098 713,568 

28,610,622 32,777,037 51,419,941 48,693,888 

Less: Allowance for impairment (1,851,210 ) (2,398,235 ) - - 

Other receivables, net 26,759,412 30,378,802 51,419,941 48,693,888

126 




19. TRADE AND OTHER RECEIVABLES (CONTINUED) 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Non-current 

Other receivables 

Loan to subsidiaries - - 93,750,000 - 

Total trade and other receivables 152,265,121 166,603,510 145,169,941 48,693,888 

Add: Cash and bank balances (Note 21) 73,015,900 45,246,461 3,765,096 5,492,313 

Less: Prepayments (4,085,381 ) (4,799,625 ) (18,135 ) (16,658) 

Total loans and receivables 221,195,640 207,050,346 148,916,902 54,169,543 

(a) Trade receivables 

Trade receivables are non-interest / finance bearing and are generally on 30 to 90 days (2010: 30 to 90 

days) terms. They are recognised at their original invoice amounts which represent their fair values on initial 

recognition. 

Included in trade receivables is an amount of RM46,229 (2010: RM49,261) due from a foreign corporate 

shareholder of subsidiaries. 

The Group significant concentration of credit risk are as disclosed in Note 34(a). 

Aging analysis of trade receivables 

Aging analysis of the Group’s trade receivables is as follows: 

Group 

2011 2010 

RM RM 

Neither past due nor impaired 81,380,369 90,621,726 

1 to 30 days past due not impaired 3,527,739 1,379,868 

31 to 60 days past due not impaired 2,162,117 503,079 

61 to 90 days past due not impaired 1,415,985 647,074 

91 to 120 days past due not impaired 414,331 2,661,300 

More than 121 days past due not impaired - - 

7,520,172 5,191,321 

Impaired 9,899,168 10,093,358 

98,799,709 105,906,405




(a) Trade receivables (continued) 

Trade receivables that are neither past due nor impaired 


Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment 

records with the Group. More than 59% (2010: 67%) of the Group’s trade receivables arise from customers 

with more than 3 years of experience with the Group and losses have occurred infrequently. 

None of the Group’s trade receivables that are neither past due nor impaired have been renegotiated 

during the financial year. 

Trade receivables that are past due but not impaired 

The Group has trade receivables amounting to RM7,520,172 (2010: RM5,191,321) that are past due at the 

reporting date but not impaired. 

Trade receivables that are impaired 

The Group’s trade receivables that are impaired at the reporting date and the movement of the allowance 

accounts used to record the impairment are as follows: 

Group 

2011 2010 

RM RM 

Trade receivables - nominal amounts 9,899,168 10,093,358 

Less: Allowance for impairment (9,899,168 ) (10,093,358 ) 

- - 

Movement in allowance accounts: 

At 1 February 10,093,358 10,084,057 

Charge for the financial year 189,101 9,301 

Written off (383,291 ) - 

At 31 January 9,899,168 10,093,358 

Trade receivables that are individually determined to be impaired at the reporting date relate to debtors 

that are in significant financial difficulties and have defaulted on payments. These receivables are not 

secured by any collateral or credit enhancements.

128 





(b) Related party balances 

Amounts due from related companies are unsecured, non-interest / finance bearing and are repayable 

upon demand. 

Amounts due from subsidiary companies are unsecured, non-interest / finance bearing and are repayable 

upon demand. 

Loans to subsidiaries relates to the Syndicated CMTF-i drawn down by the Company for the settlement of 

Sukuk Al-Ijarah on behalf of Ingress Technologies Sdn Bhd, Ingress Engineering Sdn Bhd and Ingress Precision 

Sdn Bhd as disclosed in Note 23. 

(c) Other receivables 

Other receivables that are impaired 

The Group’s other receivables that are impaired at the reporting date and the movement of the allowance 

accounts used to record the impairment are as follows: 

Group 

2011 2010 

RM RM 

Other receivables - nominal amounts 1,851,210 2,398,235 

Less: Allowance for impairment (1,851,210 ) (2,398,235 ) 

- - 

Movement in allowance accounts: 

At 1 February 2,398,235 1,333,657 

Charge for the financial year 152,646 1,064,578 

Written off (699,671 ) - 

At 31 January 1,851,210 2,398,235 

Other receivables that are individually determined to be impaired at the reporting date relate to debtors 

that are in significant financial difficulties and have defaulted on payments. These receivables are not 

secured by any collateral or credit enhancements.



20. DUE FROM/(TO) CUSTOMERS ON CONTRACTS 


Group 

2011 2010 

RM RM 

Construction contract costs incurred to date 276,285,085 254,095,383 

Attributable profit 30,233,820 41,706,362 

Less: Provision for foreseeable losses (3,612,461 ) (9,278,732 ) 

302,906,444 286,523,013 

Less: Progress billings (267,374,748 ) (247,270,487 ) 

35,531,696 39,252,526 

Presented as: 

Due from customers on contract (Note 19) 36,605,168 40,411,661 

Due to customers on contract (Note 25) (1,073,472) (1,159,135 ) 

35,531,696 39,252,526 

Retention sums on contracts, included within 

trade receivables (Note 19) 12,425,262 12,403,945 

Retention sums on contracts, included within 

trade payables (Note 25) 2,086,200 2,527,378 

The costs incurred to date on construction contracts include the following charges made during the financial 

year: 

Group 

2011 2010 

RM RM 

Interest / finance costs 599,874 207,990 

Rental of premises 90,586 68,588

130 




21. CASH AND BANK BALANCES 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Cash on hand and at banks 49,013,912 27,780,206 300,098 436,407 

Deposits with licensed banks 24,001,988 17,466,255 3,464,998 5,055,906 

Cash and bank balances 73,015,900 45,246,461 3,765,096 5,492,313 

Less: Bank overdrafts (Note 23) (16,350,939 ) (18,829,311 ) (2,985,170) (3,002,245 ) 

: Deposits under lien (14,669,773 ) (12,410,350 ) - - 

Cash and cash equivalents 41,995,188 14,006,800 779,926 2,490,068 

Deposits with licensed banks of the Group amounting to RM14,669,773 (2010: RM12,410,350) are pledged to banks 

for credit facilities granted to certain subsidiaries as referred to in Note 23. 

Included in deposits with licensed banks of the Group and the Company amounting to RM3,452,998 (2010: Nil) are 

in relation to restricted cash placed in Sinking Fund Account and Finance Service Reserve Account for Syndicated 

CMTF-i. 

The weighted average interest / finance rate of deposits of the Group and of the Company is 2.5% (2010: 1.9%) per 

annum and the average maturity of deposits of the Group and of the Company is 30 days (2010: 30 days).



22. DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE 

(a) Disposal of Matrix Power Services Sdn Bhd (“MPSSB”) 


On 12 November 2010, the Group via its subsidiary company, Multi Discovery Sdn Bhd entered into Share 

Sale Agreement with other shareholder of MPSSB to dispose off its entire 400,000 ordinary shares of RM1.00 

each, representing 80% equity share of the Group in MPSSB for cash consideration of RM200,000. The 

disposal of MPSSB has been completed as at the date of this report. 

Statements of financial position disclosures 

The major classes of assets and liabilities of MPSSB classified as held for sale as at 31 January 2011 are as 

follows: 

2010 

RM 

Assets 


Property, plant and equipment (Note 13) 540,422 

Intangible assets (Note 14) 59,884 

600,306 


Inventories 2,959,826 

Trade receivables 2,941,984 

Other receivables 432,909 

Cash and bank balances 303,987 

6,638,706 

Assets of disposal group classified as held for sale 7,239,012 


Borrowings / financing 9,177 


Borrowings / financing 3,016,415 

Trade payables 2,502,738 

Other payables 897,623 

6,416,776 

Liabilities directly associated with disposal group classified as held for sale 6,425,953

132 




22. DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE (CONTINUED) 

(b) Disposal of long term leasehold land 

On 16 October 2009, the Group via Ingress Engineering Sdn Bhd entered into a Debt Settlement Agreement 

(the “Agreement”) with a financial institution for the settlement of borrowings / financing amounting to 

RM18 million. Pursuant to the Agreement, RM14 million was settled by way of transfer of the long term 

leasehold land and the remaining balance was settled by way of cash. 

Long term leasehold land classified as held for sale comprise the following: 

Group 

2010 

RM 

Cost 9,796,958 

Accumulated amortisation (197,918 ) 

At 31 January 2010 (Note 13) 9,599,040 

23. BORROWINGS / FINANCING 

Short term borrowings / financing 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Secured: 

Bank overdrafts 7,922,578 8,484,623 - - 

Revolving credits 20,118,700 39,280,325 - - 

Bills payable and trust receipts 

Term loans 

12,935,076 21,889,264 - - 

- 3.0%p.a fixed rate RM loan 6,673,821 - - - 

- THB loan at MLR + 0.25% 588,840 - 

- THB loan at MLR - 2.0% 8,376,865 11,178,917 - - 

Syndicated CMTF-i 

Hire purchase and lease 

10,000,000 - 10,000,000 - 

payables (Note 24) 2,837,409 3,628,696 89,883 - 

69,453,289 84,461,825 10,089,883 - 

Unsecured: 

Bank overdrafts 8,428,361 10,344,688 2,985,170 3,002,245 

Revolving credits 17,500,000 22,500,000 2,000,000 2,000,000 


Term loans 

15,879,945 22,867,070 - - 

- Bridging loans - 18,000,000 - - 

Sukuk Al-Ijarah - 139,997,500 - - 

41,808,306 213,709,258 4,985,170 5,002,245 

Total short term borrowings / financing 111,261,595 298,171,083 15,075,053 5,002,245



23. BORROWINGS / FINANCING (CONTINUED) 

Long term borrowings / financing 


Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Secured: 

Term loans - - - - 


- 6.55%p.a fixed rate RM loan - 3,506,110 - - 

- USD loan at BLR + 2.5% 114,618 561,740 - - 

- THB loan at MLR + 0.25% 1,079,540 - 

- THB loan at MLR - 2.0% 1,238,081 5,327,716 - - 



95,000,000 - 95,000,000 - 

payables (Note 24) 2,729,853 3,282,603 634,474 - 

Total long term borrowings / financing 119,860,588 12,678,169 95,634,474 - 

Total borrowings 

Bank overdrafts (Note 21) 16,350,939 18,829,311 2,985,170 3,002,245 

Revolving credits 37,618,700 61,780,325 2,000,000 2,000,000 


Term loans 

28,815,021 44,756,334 - - 

- Bridging loans - 18,000,000 - - 


- 6.55%p.a fixed rate RM loan - 3,506,110 - - 

- USD loan at BLR + 2.5% 114,618 561,740 - - 

- THB loan at MLR + 0.25% 1,668,380 - - - 

- THB loan at MLR - 2.0% 9,614,946 16,506,633 - - 



105,000,000 - 105,000,000 - 

payables (Note 24) 5,567,262 6,911,299 724,357 - 

Sukuk Al-Ijarah - 139,997,500 - - 

Total borrowings / financing 231,122,183 310,849,252 110,709,527 5,002,245

134 





Maturity of borrowings / financing 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

(excluding hire purchase, lease 

payables and Sukuk Al-Ijarah): 

Within one year 

More than 1 year and 

108,424,186 154,544,887 14,985,170 5,002,245 

less than 2 years 

More than 2 years and 

24,367,003 9,395,566 15,000,000 - 

less than 5 years 80,263,732 - 67,500,000 - 

More than 5 years 12,500,000 - 12,500,000 - 

225,554,921 163,940,453 109,985,170 5,002,245 

Maturity of Sukuk Al-Ijarah: 

Within one year - 139,997,500 - - 

The Group’s and the Company’s weighted average effective interest / finance rates per annum during the financial 

year for borrowings / financing excluding hire purchase and lease payables, are as follows: 

Group Company 

2011 2010 2011 2010 

% % % % 

Bank overdrafts 7.3 6.5 7.1 6.5 

Revolving credits 5.7 4.4 5.3 4.4 

Bills payable 3.4 2.2 - - 

Trust receipts 7.3 7.0 - - 

Term loans 5.9 7.1 - - 

Syndicated CMTF-i 7.8 - 7.8 - 

Sukuk Al-Ijarah 7.0 7.0 7.0 7.0 

The secured bank overdrafts, revolving credits and bills payable and trust receipt of the Group are secured by 

fixed and floating charges over the deposits of certain subsidiaries as disclosed in Note 21.




Sukuk Al-Ijarah 


On 30 June 2010, the Group had fully redeemed the outstanding Sukuk of RM120.3 million by utilising proceeds 

from Syndicated CMTF-i of RM110 million as well as from internally generated funds. 


The Syndicated CMTF-i are secured by third party first legal charges over land and buildings owned by subsidiaries, 

Ingress Technologies Sdn Bhd and Ingress Engineering Sdn Bhd as disclosed in Note 13(d). 

3.0%p.a fixed rate RM loan 

This loan is secured by way of a first fixed charge over plant and machinery as disclosed in Note 13(e). 

6.55%p.a fixed rate RM loan 

As at 31 January 2011, this loan has been presented as part of the liabilities directly associated with disposal group 

classified as held for sale (Note 22(a)). 

THB loan at MLR - 2.0% 

This loan are secured by first legal charge over a freehold land, freehold buildings and plant and machinery of 

certain subsidiaries as disclosed in Note 13(e). 

THB loan at MLR + 0.25% 

This loan are secured by first legal charge over a freehold land, freehold buildings and plant and machinery of 

certain subsidiaries as disclosed in Note 13(e). 

USD loan at BLR + 2.5% 

This loan is secured by a Corporate Guarantee from the Company. 

Obligation under finance lease 

This obligations are seucred by a charge over the leased assets as disclosed in Note 13(b).

136 




24. HIRE PURCHASE AND LEASE PAYABLES 

Minimum lease payments: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Not later than 1 year 

Later than 1 year and not 

2,936,382 3,949,026 125,124 - 

later than 2 years 

Later than 2 years and not 

1,303,477 2,985,996 125,124 - 

later than 5 years 1,447,977 484,920 375,372 - 

More than 5 years 229,373 - 229,373 - 

5,917,209 7,419,942 854,993 - 

Less: Future interest / finance charges (349,947 ) (508,643 ) (130,636 ) - 

Present value of finance lease liabilities 5,567,262 6,911,299 724,357 - 

Present value of finance lease liabilities: 

Not later than 1 year 

Later than 1 year and not 

2,837,409 3,628,696 89,883 - 

later than 2 years 

Later than 2 years and not 

1,130,773 2,828,578 95,411 - 

later than 5 years 1,379,418 454,025 319,401 - 

More than 5 years 219,662 - 219,662 - 

5,567,262 6,911,299 724,357 - 

Analysed as: (Note 23) 

Due within 12 months 2,837,409 3,628,696 89,883 - 

Due after 12 months 2,729,853 3,282,603 634,474 - 

5,567,262 6,911,299 724,357 - 

The hire purchase and lease payable of the Group and the Company bear interest / finance cost during the 

financial year of 7.39% (2010: 7.65%) and 4.96% (2010: Nil) per annum respectively.



25. TRADE AND OTHER PAYABLES 


Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Current 

Trade payables 

Third party 86,151,683 92,711,689 - - 

Due to customers on contracts (Note 20) 1,073,472 1,159,135 - - 

Retention sum (Note 20) 2,086,200 2,527,378 - - 

89,311,355 96,398,202 - - 

Other payables 

Due to subsidiaries - - 64,555,099 78,204,501 

Deposits 581,990 2,188,690 - - 

Accruals 2,794,186 11,189,467 216,993 210,500 

Sundry payables 35,620,387 38,395,827 376,203 1,321,795 

38,996,563 51,773,984 65,148,295 79,736,796 

Total trade and other payables 128,307,918 148,172,186 65,148,295 79,736,796 

Add: Borrowings / financing (Note 23) 

Total financial liabilities carried at 

231,122,183 310,849,252 110,709,527 5,002,245 

amortised cost 359,430,101 459,021,438 175,857,822 84,739,041 

(a) Trade payables 

Group 

2011 2010 

RM RM 

Included in trade payables are the following: 

Due to a corporate shareholder of a foreign subsidiary 1,365,445 1,270,119 

These amounts are non-interest / finance bearing. Trade payables are normally settled on 30 to 90 days 

(2010: 30 to 90 days) terms. 

(b) Other payables 

These amounts are non-interest / finance bearing. Other payables are normally settled on 30 to 90 days 

(2010: 30 to 90 days) terms. 

(c) Amount due to subsidiaries 

These amounts are unsecured, non-interest / finance bearing and are repayable on demand.

138 




26. SHARE CAPITAL 

Number of ordinary 

shares of RM1 each Amount 

2011 2010 2011 2010 

RM RM 

Authorised: 

At 1 February / 31 January 100,000,000 100,000,000 100,000,000 100,000,000 

Issued and fully paid: 

At 1 February / 31 January 76,800,000 76,800,000 76,800,000 76,800,000 

27. RESERVES 

Non-distributable: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Share premium 1,024,000 1,024,000 - - 

Revaluation reserves: 

At 1 February 26,148,069 5,503,026 - - 

Foreign currency translation (854,679 ) 78,756 - - 

Revaluation increase, net of deferred tax - 20,566,287 - - 

At 31 January 25,293,390 26,148,069 - - 

Foreign exchange reserves: 

At 1 February 3,902,135 4,470,726 - - 

Foreign currency translation (2,291,911 ) (568,591 ) - - 

At 31 January 1,610,224 3,902,135 - - 

Hedging reserves: 

At 1 February 

As previously stated - - - - 

Effect of adopting FRS 139 (1,704,923 ) 

As restated (1,704,923 ) - - - 

Loss on cash flows hedges (3,308,262 ) - - - 

At 31 January (5,013,185 ) - - - 

Distributable: 

22,914,429 31,074,204 - - 

Retained profits 54,049,057 36,924,727 5,878,009 2,552,329 

Total reserves 76,963,486 67,998,931 5,878,009 2,552,329



27. RESERVES (CONTINUED) 

The detailed movement of the above are highlighted in the statement of changes in equity. 

(a) Share premium 


Share premium arose from the issuance of ordinary shares at a price higher than the nominal value. 

(b) Revaluation reserve 

This reserve includes the cumulative net change in fair value of land and building above their cash 

consideration net of deferred tax. 

(c) Foreign exchange reserve 

The foreign exchange reserve represents exchange differences arising from the translation of the financial 

statements of foreign subsidiaries whose functional currencies are different from that of the Group’s 

presentation currency. 

(d) Hedging reserve 

The hedging reserve represents the cumulative portion of gains and losses on hedging instruments deemed 

effective in cash flows hedges of an associate company. 

(e) Retained profits 

Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In 

accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be 

entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividends will 

be exempted from tax in the hands of the shareholders (“single tier system”). 

However, there is a transitional period of six years, expiring on 31 December 2013, to allow companies to pay 

franked dividends to their shareholders under limited circumstances. Companies also have an irrevocable 

option to disregard the Section 108 balance and opt to pay dividends under the single tier system. The 

change in the tax legislation also provides for the Section 108 balance to be locked-in as at 31 December 

2007 in accordance with Section 39 of the Finance Act 2007. 

The Company did not elect for the irrevocable option to disregard the Section 108 balance. Accordingly, 

during the transitional period, the Company may utilise the credit in the Section 108 balance as at 31 

December 2007 to distribute cash dividend payments to ordinary shareholdings as defined under the 

Finance Act 2007. As at 31 January 2011, the Company has sufficient credit in the Section 108 balance to 

franked dividends approximately RM4,853,000 (2010: RM4,795,000) out of its retained profits and to pay the 

balance of its retained earnings under the single tier system. 

As at 31 January 2011, the Company has tax exempt income account amounting to RM20,139,000 (2010: 

RM20,139,000) to distribute as tax exempt dividends, subject to agreement of the Inland Revenue Board.

140 




28. DEFERRED TAX 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

At 1 February (18,469,933 ) (23,676,401 ) - - 

Recognised in statements of 

comprehensive income (Note 11) 

Recognised in other 

(3,313,327 ) (156,163 ) - - 

comprehensive income - 5,362,631 - - 

At 31 January (21,783,260 ) (18,469,933 ) - - 

Presented after appropriate 

offsetting as follows: 

Deferred tax assets (26,789,424 ) (23,496,895 ) (18,644 ) (23,026 ) 

Deferred tax liabilities 5,006,164 5,026,962 18,644 23,026 

(21,783,260 ) (18,469,933 ) - - 

Deferred tax liabilities of the Group: 

Accelerated 

Capital Revaluation 

Allowances Surplus Total 

RM RM RM 


Recognised in the consolidated statement of 

7,412,345 5,888,655 13,301,000 

comprehensive income (6,887,211 ) - (6,887,211 ) 

At 31 January 2011 525,134 5,888,655 6,413,789 


Recognised in the consolidated statement of 

7,341,118 219,895 7,561,013 

comprehensive income 71,227 306,129 377,356 

Recognised in other comprehensive income - 5,362,631 5,362,631 

At 31 January 2010 7,412,345 5,888,655 13,301,000



28. DEFERRED TAX (CONTINUED) 

Deferred tax assets of the Group: 


Unused tax losses 

and unabsorbed 

allowances Others Total 

RM RM RM 


Recognised in consolidated statement of 

(31,587,737 ) (183,196 ) (31,770,933 ) 

comprehensive income 3,627,420 (53,536 ) 3,573,884 

At 31 January 2011 (27,960,317 ) (236,732 ) (28,197,049 ) 


Recognised in consolidated statement of 

(30,983,840 ) (253,574 ) (31,237,414 ) 

comprehensive income (603,897 ) 70,378 (533,519 ) 

At 31 January 2010 (31,587,737 ) (183,196 ) (31,770,933 ) 

Deferred tax liabilities of the Company: 

Accelerated 

Capital 

Allowances 

RM 

At 1 February 2010 23,026 

Recognised in statement of comprehensive income (4,382 ) 

At 31 January 2011 18,644 

At 1 February 2009 29,677 

Recognised in statement of comprehensive income (6,651 ) 

At 31 January 2010 23,026 

Deferred tax assets of the Company: 

Unused tax losses 

and unabsorbed 

allowances Others Total 

RM RM RM 

At 1 February 2010 (23,026 ) - (23,026 ) 

Recognised in statement of comprehensive income 4,382 - 4,382 

At 31 January 2011 (18,644 ) - (18,644 ) 

At 1 February 2009 - (29,677 ) (29,677 ) 

Recognised in statement of comprehensive income (23,026 ) 29,677 6,651 

At 31 January 2010 (23,026 ) - (23,026 )

142 




28. DEFERRED TAX (CONTINUED) 

Deferred tax assets have not been recognised in respect of the following items: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Unused tax losses 7,631,150 7,659,393 3,858,863 3,887,106 

Unabsorbed allowances 5,114,685 9,950,135 68,202 228,598 

12,745,835 17,609,528 3,927,065 4,115,704 

The availability of the unused tax losses and unabsorbed allowances for offsetting against future taxable profits of 

the respective subsidiaries are subject to no substantial changes in shareholdings of those subsidiaries under Section 

44(5A) and (5B) of Income Tax Act, 1967. 

29. CAPITAL COMMITMENTS 

Group 

2011 2010 

RM RM 

Capital expenditure: 

Approved and contracted for 14,927,941 42,730,628 

Authorised but not contracted for 27,704,890 65,238,089 

42,632,831 107,968,717 

30. CONTINGENT LIABILITIES 

Company 

2011 2010 

RM RM 

Guarantees given to financial institutions for 

facilities utilised by subsidiaries 137,195,585 311,899,221 

In general, it has been the financial institution’s practice to accept a corporate guarantee to secure loan facility. 

It may be required together with other forms of securies. Acceptance of such guarantee by the financial institution 

does not imply that special / lower interest / finance rate is also offered. It does however help the financial insitution 

in credit evaluation process prior to the ficility approval.



31. MATERIAL LITIGATION 

(a) Kuala Lumpur High Court Civil Suit No. S-22-147-2007 


A subsidiary of the Group, namely Ingress Fabricators Sdn Bhd (“IFSB”) (“the Plaintiff”), had served a Writ of 

Summons & Statement of Claims (“the Writ”) dated 8 February 2007 filed at the Kuala Lumpur High Court 

against Ramunia Fabricators Sdn Bhd (“the Defendant”). 

In this suit, IFSB is claiming for the following sums alleged to be due and owing by the Defendant to IFSB in 

respect of the contract to provide management, supervision, qualified manpower, tools, consumables and 

equipments: 

(i) The sum of RM1,494,700; 

(ii) Interest at the rate of 8% per annum on the said sum from 9 November 2006 until full settlement; 

(iii) Interest on all damages awarded at the rate of 8% per annum from the date of judgment until full 

settlement; 

(iv) Costs; and 

(v) Such further or other relief that the Honorable Court deems fit and proper to grant. 

In ensuring compliance with the next Case Management directions, the amendment of Pleadings was 

filed in second week of March, thus the sum of RM1,494,700 for variation works and acceleration costs is 

now reduced to RM1,350,939. The Amended Statement of Claims was endorsed on 11 April 2011. The next 

Case Management had been fixed tentatively on 12 July 2011. Prior to this Case Management the Court is 

seriously considering another Case Management earlier. 

(b) Kuala Lumpur High Court Civil No. S22-424-2007 

Ingress Fabricators Sdn Bhd (“IFSB”) (“the Plaintiff”), had served a Writ of Summons & Statement of Claims 

(“the Writ”) dated 25 April 2007 filed at the Kuala Lumpur High Court against Ramunia Fabricators Sdn Bhd 

(“the Defendant”). 

In this suit, IFSB is claiming for the following sums alleged to be due and owing by the Defendant to IFSB 

in relation to the contract to provide structural works for Guntong E-Jacket, E8DR-A Substructure, E11P-B 

Substructure and E8DRA Topside: 

(i) The sum of RM3,794,912; 

(ii) The sum of RM198,129; 

(iii) The sum of RM235,732; 

(iv) Interest on all damages awarded at the rate of 8% per annum from the date of judgement until full 

settlement; 

(v) Costs; and 

(vi) Such further or other relief that the Honorable Court deems fit and proper to grant. 

The next Case Management had been tentatively on 12 July 2011. Prior to this Case Management the 

Court is seriously considering another Case Management earlier.

144 




31. MATERIAL LITIGATION (CONTINUED) 

(c) Kuala Lumpur High Court Civil Suit No. S-22-1134-2008 

Ingress Fabricators Sdn Bhd (“IFSB”) and Technical Business Group Sdn Bhd (“TBGSB”) (“the Plaintiff”), had 

filed a Writ of Summons & Statement of Claims (“the Writ”) dated 18 December 2008 at the Kuala Lumpur 

High Court against Ramunia Fabricators Sdn Bhd and Shaharudin Bin Tahir (“the Defendant”). 

In this suit, IFSB and TBGSB is claiming for the following sums alleged to be due and owing by the Defendant 

to IFSB and TBGSB in respect of outstanding principal and retention sum amount of the contract to provide 

management, supervision, qualified manpower, tools, consumables and equipments: 

(i) The sum of outstanding principal amount of RM3,917,073; 

(ii) Interest at the rate of 8% per annum on the said sum from 18 December 2008 until the date of 

judgement; 

(iii) Interest at the rate of 8% per annum from the date of judgement until full settlement; 

(iv) The sum of outstanding retention money amount of RM633,807; 

(v) Interest at the rate of 8% per annum on the said sum from 18 December 2008 until the date of 

judgement; 

(vi) Interest at the rate of 8% per annum from the date of judgement until full settlement; 

(vii) The sum of variation order claims amount of RM39,745; 

(viii) Interest at the rate of 8% per annum on the said sum from 18 December 2008 until the date of 

judgement; and 

(ix) Interest at the rate of 8% per annum from the date of judgement until full settlement. 

The above suit against Ramunia has been consolidated with suit no. S-22-419-2010 on 9 November 2010. 

The next Case Management had been fixed tentatively on 12 July 2011. Prior to this Case Management the 

Court is seriously considering another Case Management earlier. 

(d) Kuala Lumpur High Court Civil Suit No. S-22-419-2010 

Ingress Fabricators Sdn Bhd (IFSB) (“the Plaintiff”), had served a Writ of Summons & Statement of Claims 

(“the Writ”) dated 13 May 2010 (after the Restraining Order leave application granted by court) filed at the 

Kuala Lumpur High Court against Ramunia Fabricators Sdn Bhd (“the Defendant”). 

In this suit, IFSB is claiming for the following sums alleged to be due and owing by the Defendant to IFSB in 

relation to the contract E8DRA Topside (Piping) to provide management, supervision, qualified manpower, 

tools, consumables and equipments: 

(i) The work done under Main Contract of RM617,168; 

(ii) The retention sum of RM50,000; and 

(iii) The interest at rate of 8% per annum on the above from 9 November 2006 until full settlement. 

The above suit against Ramunia has been consolidated with suit S-22-1134-2009 on 9 November 2010.



31. MATERIAL LITIGATION (CONTINUED) 

(d) Kuala Lumpur High Court Civil Suit No. S-22-419-2010 (continued) 


All four suits against Ramunia has been consolidated vide Court’s Order dated 9 November 2010. Due 

to recent amendment of Pleadings, the total amount claimed shall be reduced from RM10,314,163 to 

RM10,170,402. 

The next Case Management had been fixed tentatively on 12 July 2011. Prior to this Case Management the 

Court is seriously considering another Case Management earlier. 

(e) Kuala Lumpur High Court, Commercial Division - Civil Suit No. D-22 NCC-586-2010 

On 26 March 2010, PNA Technologies Sdn Bhd (“PNA”) filed a Writ of Summon and Statement of Claims 

at the Kuala Lumpur High Court against Ingress Engineering Sdn Bhd (“IESB”). Inter-alia, PNA is claiming an 

amount of RM3,650,776 as at 13 January 2010, plus interest. Its Statement of Claims stated that it was for 

the sum due and payable by IESB for the supply of raw material and wire harness components in respect of 

Proton Saga BLM and Proton Persona by PNA to IESB. 

On 3 June 2010, IESB filed Statement of Defense and Counter Claim at the Kuala Lumpur High Court 

disputing the claims by PNA on the ground that, inter-alia, the invoices submitted by PNA to IESB were not 

according to Proton’s QAF5 requirements and the figures therein were never agreed by IESB. Further, the 

transportation and accommodation costs charged as well as exchange rates used by PNA in its invoices 

were deemed unreasonable. IESB refuted all the claims made by PNA and in return, is counter-claiming 

from PNA an amount of RM489,751, for overcharging of transportation costs by PNA together with interest. 

The case went into two days of full trial on 22 February 2011 and 2 March 2011. The trial was adjourned at 

the end of the second day, with the trial Judge requesting both parties to consider resuming the Mediation 

process which both parties are still in negotiation under the mediation process to-date. 

The directors do not expect the claims to have any adverse material impact on the financial result and operation 

of the Group in the current financial year.

146 




32. RELATED PARTY DISCLOSURES 

(a) Sales of products by subsidiaries to: 

Group 

2011 2010 

RM RM 

Perodua Manufacturing Sdn Bhd * 165,597,174 115,298,705 

(b) Purchases of materials by subsidiaries from: 

G-Shin Corporation Sdn Bhd **** 3,502,989 8,779,720 

Combat Coating (M) Sdn Bhd **** - 12,315 

Katayama Kogyo Co., Ltd ** 92,795 943,737 

Yonei Co., Ltd *** 1,944,071 954,738 

(c) Purchases of machinery and tooling by subsidiaries from: 

Katayama Kogyo Co., Ltd ** 859,248 7,047,151 

Yonei Co., Ltd *** 7,180,149 - 

(d) Advisory fees payable by subsidiaries to: 

Katayama Kogyo Co., Ltd ** 2,889,127 2,047,151 

* Perodua Manufacturing Sdn Bhd is an associate company of a corporate shareholder of a subsidiary - Ingress 

Technologies Sdn Bhd 

** Katayama Kogyo Co., Ltd is a foreign corporate shareholder of subsidiaries - Ingress Autoventures Co., Ltd 

and Ingress Precision Sdn Bhd 

*** Yonei Co., Ltd is a foreign corporate shareholder of a subsidiary - Ingress Autoventures Co., Ltd 

**** G-Shin Corporation Sdn Bhd and Combat Coating (M) Sdn Bhd are companies related to former executive 

director of the Company. These companies supply parts and raw materials to subsidiaries - Ingress Technologies 

Sdn Bhd and Ingress Precision Sdn Bhd



32. RELATED PARTY DISCLOSURES (CONTINUED) 


(e) Significant transactions between the Company and related parties during the financial year are as follows: 

Group 

2011 2010 

RM RM 

Rental expenses 399,906 184,279 

Management fees paid/payable by subsidiaries 9,141,551 2,181,504 

Dividend income from subsidiaries 4,666,667 2,000,000 

Intercompany interest paid/payable by subsidiaries 5,058,178 1,814,663 

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 those 

obtainable in transactions with unrelated parties. 

(f) Compensation of key management personnel 

Key management personnel are defined as those having authority and responsibility for planning, directing 

and controlling the activities of the Group and of the Company either directly or indirectly. The key 

management personnel include all the directors of the Group and of the Company and certain members of 

senior management of the Group and of the Company. 

The remuneration of key management personnel of the Group and of the Company during the financial year 

are as follows: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Salaries and other emoluments 5,515,883 6,249,876 556,558 533,788 

Bonus 567,230 140,802 88,304 - 

Fees 36,000 36,000 130,000 140,000 

Benefits-in-kind 38,400 36,000 14,400 19,700 

6,157,513 6,462,678 789,262 693,488 

Included in the total key management personnel are: 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Directors’ remuneration (Note 10) 6,157,513 6,462,678 789,262 693,488

148 




33. FAIR VALUE OF FINANCIAL INSTRUMENTS 

(a) Fair value of financial instruments by classes that are not carried at fair value and whose carrying amounts are 

not reasonable approximation of fair value 


Group Company 

Carrying Fair Carrying Fair 

Amount Value Amount Value 

RM RM RM RM 

Financial Liabilities 

Term loans - non-current 

- 3.0%p.a fixed rate RM loan (Note 23) 

Hire purchase and lease payables 

19,698,496 22,911,474 - - 

- non-current (Note 24) 2,729,853 2,476,371 634,474 561,372 

22,428,349 25,387,845 634,474 561,372 


Financial Liabilities 

Hire purchase and lease payables 

- non-current (Note 24) 3,282,603 3,019,357 - - 

Investment in equity instruments carried at cost (Note17) 

Fair value information has not been disclosed for the Group’s investments in equity instruments that are carried 

at cost because fair value cannot be measured reliably. These equity instruments represent ordinary shares in 

a company that is not quoted on any market.



33. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) 

(b) Determination of fair value 


Financial instruments that are not carried at fair value and whose carrying amounts are reasonable 

approximation of fair value 

The following are classes of financial instruments that are not carried at fair value and whose carrying amounts 

are reasonable approximation of fair value: 

Trade and other receivables (current) 1 9 

Loan to subsidiaries (non-current) 19 

Trade and other payables (current) 2 5 

Borrowings / financing (current) 2 3 

Borrowings / financing (non-current) 

- USD loan at BLR + 2.5% 2 3 

- THB loan at MLR + 0.25% 2 3 

- THB loan at MLR - 2.0% 2 3 

The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values, 

either due to their short-term nature or that they are floating rate instruments that are re-priced to market 

interest rates on or near the reporting date. 

The carrying amounts of the current portion of borrowings / financing are reasonable approximations of fair 

values due to the insignificant impact of discounting. 

The fair values of current borrowings / financing are estimated by discounting expected future cash flows at 

market incremental lending rate for similar types of lending, borrowing / financing or leasing arrangements at 

the reporting date. 

34. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 

The Group and the Company are exposed to financial risks arising from their operations and the use of financial 

instruments. The key financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and market 

price risk. 

The Board of Directors reviews and agrees policies and procedures for the management of these risks, which 

are executed by the Chief Financial Officer and Divisional Financial Controller. The Audit Committee provides 

independent oversight to the effectiveness of the risk management process. 

It is, and has been throughout the current and previous financial year, the Group’s and the Company is policy that 

no derivatives shall be undertaken except for the use as hedging instruments where appropriate and cost-efficient. 

The Group and the Company do not apply hedge accounting. 

Note

150 




34. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

The following sections provide details regarding the Group’s and Company’s exposure to the above-mentioned 

financial risks and the objectives, policies and processes for the management of these risks. 

(a) Credit risk 

The Group’s credit risk is primarily attributable to trade receivables. The Group trades only with recognised 

and creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms 

are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing 

basis and the Group’s exposure to bad debts is not significant. Since the Group trades only with recognised 

and creditworthy third parties, there is no requirement for collateral. 

Credit risk cocentration profile 

The Group determines concentrations of credit risk by monitoring the country and industry sector profile of its 

trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s and the Company’s 

trade receivables at the reporting date are as follows: 

Group 

2011 2010 

RM % of total RM % of total 

By country: 

Malaysia 44,184,934 58% 54,776,741 66% 

Thailand 29,973,955 39% 27,520,328 33% 

Indonesia 2,316,390 3% 1,112,033 1% 

76,475,279 100% 83,409,102 100% 

Group 

2011 2010 

RM % of total RM % of total 

By industry sectors: 

Automotive 68,330,223 89% 71,879,723 86% 

Power industry 5,760,332 8% 7,274,039 9% 

Oil and gas 2,384,724 3% 4,255,340 5% 

76,475,279 100% 83,409,102 100% 

At the reporting date, approximately: 

32% (2010: 36%) of the Group’s trade receivables were due from 4 major customers who are multi-industry 

conglomerates located in Malaysia. 

0.3% (2010: 0.3%) of the Group’s trade and other receivables were due from related parties while almost all of 

the Company’s receivables were balances with related parties.




(a) Credit risk (continued) 

Financial assets that are neither past due nor impaired 


Information regarding trade receivables that are neither past due nor impaired is disclosed in Note 19. 

Financial assets that are either past due or impaired 

Information regarding trade receivables that are either past due or impaired is disclosed in Note 19. 

(b) Liquidity risk 

The Group and the Company manages its debt maturity profile, operating cash flows and the availability 

of funding so as to ensure that refinancing, repayment and funding needs are met. As part of its overall 

liquidity management, the Group and the Company maintains sufficient levels of cash or cash convertible 

investments to meet its working capital requirements. In addition, the Group and the Company strives to 

maintain available banking facilities at a reasonable level to its overall debt position. As far as possible, the 

Group and the Company raises committed funding from both capital markets and financial institutions and 

balances its portfolio with some short term funding so as to achieve overall cost effectiveness. 

Analysis of financial instruments by remaining contractual maturities 

The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the reporting 

date based on contractual undiscounted repayment obligations. 

Group 


On demand 

or within One to Over 

one year five years five years Total 

Financial liabilities 

Trade and other payables 128,307,918 - - 128,307,918 

Borrowings / financing 122,362,684 125,248,147 18,500,949 266,111,780 

Total undiscounted financial liabilities 250,670,602 125,248,147 18,500,949 394,419,698 

Company 


Financial liabilities 

Other payables 65,148,295 - - 65,148,295 

Borrowings / financing 17,710,941 99,898,421 12,622,009 130,231,371 

Total undiscounted financial liabilities 82,859,236 99,898,421 12,622,009 195,379,666

152 





(c) Interest rate risk 

The Group’s and the Company primary interest / finance rate risk relates to interest-bearing debt, as the Group 

and the Company had no substantial long-term interest-bearing assets as at 31 January 2011. 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 which yield better returns than cash at bank. 

The information on maturity dates and effective interest / finance rates of financial assets and liabilities are 

disclosed in their respective notes. 

Sensitivity analysis for interest / finance rate risk 

At the reporting date, if interest / finance rates had been 10 basis points lower / higher, with all other variables 

held constant, the Group’s and the Company profit net of tax would have been RM244,010 and RM90,395 

respectively higher / lower, arising mainly as a result of lower / higher interest / finance expense on floating rate 

borrowings / financing. The assumed movement in basis points for interest / finance rate sensitivity analysis is 

based on the currently observable market environment. 

(d) Foreign exchange risk 

The Group is exposed to transactional currency risk primarily through sales and purchases that are denominated 

in a currency other than the functional currency of the operations to which they relate. The currencies giving 

rise to this risk are primarily Thai Baht, Japanese Yen and Indonesian Rupiah. Foreign exchange exposures in 

transactional currencies other than functional currencies of the operating entities are kept to an acceptable 

level. The Group maintains a natural hedge, whenever possible, by borrowing in the currency of the country in 

which the property or investment is located or by borrowing in currencies that match the future revenue stream 

to be generated from its investments. 

The net unhedged financial assets and financial liability of the Group companies that are not denominated in 

their functional currencies are as follows: 

Net financial assets / (liabilities) held in 

Non-functional currencies 

Functional currency EURO US Dollar Japanese Yen Total 

of group companies RM’000 RM’000 RM’000 RM’000 


Thai Bath - (1,076 ) (9,797 ) (10,873 ) 

Ringgit Malaysia 74 - - 74 

Indonesia Rupiah - (4,269 ) - (4,269 ) 

74 (5,345 ) (9,797 ) (15,068 ) 


Thai Bath - (403 ) (5,404 ) (5,807 ) 

Ringgit Malaysia 268 - - 268 

Indonesia Rupiah - (4,595 ) - (4,595 ) 

268 (4,998 ) (5,404 ) (10,134 )



35. CAPITAL MANAGEMENT 


The primary objective of the Group’s and the Company’s capital management is to ensure that it maintains a strong 

credit rating and healthy capital ratios in order to support its business and maximise shareholder value. 

The Group and the Company manages its capital structure and makes adjustments to it, in light of changes in 

economic conditions. To maintain or adjust the capital structure, the Group and the Company may adjust the 

dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the 

objectives, policies or processes during the financial years ended 31 January 2011 and 31 January 2010. 

The Group and the Company monitors capital using a gearing ratio, which is the aggregate amount of all outstanding 

borrowings / financing divided by equity attributable to the owners of the parent less all intangibles. The Group’s 

and the Company’s policy is to keep the gearing ratio at a reasonable rate. 

Group Company 

2011 2010 2011 2010 

RM RM RM RM 

Borrowings / financing (Note 23) 231,122,183 310,849,252 110,709,527 5,002,245 

Equity attributable to the 

owners of the parent 153,763,486 144,798,931 83,638,009 79,352,329 

Less: Intangible assets (Note 14) (3,543,816 ) (4,237,021 ) (9,882 ) (16,627 ) 

150,219,670 140,561,910 83,628,127 79,335,702 

Gearing ratio 154% 221% 132% 6% 

36. EVENTS OCCURING AFTER THE REPORTING DATE 

On 16 February 2011, the Company has entered into a Sale and Purchase of Shares Agreement on the disposal of 

the entire 960,000 ordinary shares of RM1.00 each in an associate company, Maju Nusa Sdn Bhd to third party for a 

cash consideration of RM100,000. The disposal has yet to be completed as at the date of this report. 

37. SEGMENT INFORMATION 

(a) Business Segments: 

The Group is organised into two major business segments: 

(i) Automotive Division comprising: 

(a) Automotive components manufacturing 

(b) Premium automotive dealership 

(ii) Power Engineering and Projects Division comprising: 

(a) Power engineering and railway 

(b) Oil and gas 

The directors are of the opinion that all inter-segment transactions have been entered into in the normal course 

of business and have been established on terms and conditions that are not materially different from those 

obtainable in transactions with unrelated parties.

154 




37. SEGMENT INFORMATION (CONTINUED) 

REVENUE AND EXPENSES 

Power Engineering 

Automotive and Projects 

Division Division Corporate Elimination Consolidated 

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 

RM RM RM RM RM RM RM RM RM RM 

Revenue 

External sales 

Inter-segment 

680,320,102 560,535,633 80,856,597 90,086,534 - - - - 761,176,699 650,622,167 

sales 36,548,952 54,036,360 786,160 189,471 13,808,217 4,181,504 (51,143,329 ) (58,407,335 ) - - 

Total revenue 716,869,054 614,571,993 81,642,757 90,276,005 13,808,217 4,181,504 (51,143,329 ) (58,407,335 ) 761,176,699 650,622,167 

Result 

Operating 

profit / (loss) 44,609,328 39,574,066 (2,093,467 ) (1,998,454 ) 9,717,838 (160,006 ) (3,178,242 ) 222,158 49,055,457 37,637,764 

Interest / 

Finance costs 

Share of result of 

(16,538,167 ) (18,554,355 ) 

associates - - (1,462,181 ) 492,718 - - - - (1,462,181 ) 492,718 

Profit 

before tax 31,055,109 19,576,127 

Income tax 

expense (1,272,320 ) (1,031,794 ) 

Profit for the 

financial year 

29,782,789 18,544,333 

ASSETS AND LIABILITIES 

Segment assets 699,725,255 748,448,957 113,195,022 118,080,150 258,535,831 163,131,370 (509,141,543 ) (405,724,414) 562,314,565 623,936,063 

Investment in 

associates - - 2,820,439 11,123,718 - - - - 2,820,439 11,123,718 

Consolidated 

total assets 565,135,004 635,059,781 

Segment 

liabilities 443,549,592 516,609,395 107,806,889 114,212,247 175,857,822 84,739,041 (361,358,249) (256,539,245 ) 365,856,054 459,021,438 

Consolidated 

total liabilities 365,856,054 459,021,438 

OTHER INFORMATION 

Capital 

expenditure 32,263,185 36,164,638 639,591 362,637 886,573 7,820 - - 33,789,349 36,535,095 

Depreciation & 

amortisation 68,707,907 51,914,020 695,974 812,642 174,090 168,432 (825,797 ) (817,365 ) 68,752,174 52,077,729



37. SEGMENT INFORMATION (CONTINUED) 

(b) Geographical Segments: 

The Group operates in three major geographical areas as follows: 


Malaysia Thailand Indonesia Consolidated 

2011 2010 2011 2010 2011 2010 2011 2010 

RM RM RM RM RM RM RM RM 

Total revenue from 

external customers 576,030,124 519,388,503 172,030,095 123,436,219 13,116,480 7,797,445 761,176,699 650,622,167 

Segment assets 376,522,204 443,577,848 158,434,612 163,380,823 30,178,188 28,101,110 565,135,004 635,059,781 

Capital expenditure 18,104,113 32,430,397 15,471,931 3,651,335 213,305 453,363 33,789,349 36,535,095

156 




38. SUPPLEMENTARY INFORMATION - BREAK DOWN OF RETAINED PROFITS INTO REALISED AND UNREALISED 

The breakdown of the retained profits of the Group and of the Company as at 31 January 2011 into realised and 

unrealised profits is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad dated 25 

March 2010 and prepared in accordance with Guidance on Special Matter No. 1, Determination of Realised and 

Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, 

as issued by the Malaysian Institute of Accountants. 

Group Company 

2011 2011 

RM’000 RM’000 

Total retained profits of the Company and 

its subsidiaries 

- Realised 22,422,267 6,838,009 

- Unrealised 26,789,424 - 

49,211,691 6,838,009 

Total share of retained profits from associates 

- Realised 4,837,366 - 

Retained profits as per financial statements 54,049,057 6,838,009

Analysis of Equity Structure as at 23 May 2011 

Authorised Share Capital RM100,000,000 

Issued and Fully Paid Up Capital RM76,800,000 

Class of Shares Ordinary shares of RM1.00 each 

Voting Rights One vote for every share 


No. of Holders Size of Shareholdings Total Holdings % 

31 Less than 100 shares 1,141 0.00 

246 101 – 1,000 shares 180,570 0.24 

1,970 1,001 – 10,000 shares 7,337,348 9.55 

540 10,001 to 100,000 shares 15,370,001 20.01 

74 100,001 to less than 5% of issued shares 25,034,440 32.60 

3 5% and above of issued shares 28,876,500 37.60 

2,864 Total 76,800,000 100.00 

Directors’ Interest in Shares as at 23 May 2011 

Name Direct Holdings Indirect Holdings Related 

No. % No. % Corporation 

1. Shamsudin @ Samad bin Kassim 50,000 0.07 - 0.00 - 

2. Datuk Rameli bin Musa 8,602,800 11.20 15,360,000 * 20.00 - 

3. Dato’ Vaseehar Hassan bin Abdul Razack 12,000 0.02 - 0.00 - 

4. Dato’ Zulkifly @ Ibrahim bin Ab Rahman - 0.00 - 0.00 - 

5. Abdul Khudus bin Mohd Naaim - 0.00 - 0.00 - 

6. Ungku Farid bin Ungku Abd Rahman 571,200 0.74 - 0.00 - 

7. Abdul Rahim bin Hj Hitam 6,000 0.01 - 0.00 - 

Total 9,242,000 12.04 15,360,000 20.00 - 

* Deemed interested by virtue of his shareholdings in Ramdawi Sdn Bhd 

Substantial Shareholders as at 23 May 2011 

Number of Shares Held 

Direct Total % Indirect Total % 

Name of Shareholders Shareholdings Shareholdings 

1. Ramdawi Sdn Bhd 15,360,000 20.00 - 0.00 

2. Datuk Rameli bin Musa 8,602,800 11.20 15,360,000 ^ 20.00 

3. Mayban Securities Nominees (Asing) Sdn Bhd 

Kim Eng Securities Pte Ltd for 

Horizon Growth Fund N.V 4,913,700 6.40 - 0.00 

^ Via his shareholdings in Ramdawi Sdn Bhd

158 


Name of Top 30 Shareholders as at 23 May 2011 

Name of Shareholders Total Shareholdings Percentage (%) of 

Shareholdings 

1 Ramdawi Sdn Bhd 15,360,000 20.00 

2 Datuk Rameli bin Musa 8,602,800 11.20 

3 Mayban Securities Nominees (Asing) Sdn Bhd 

Kim Eng Securities Pte Ltd for Horizon Growth Fund N.V 4,913,700 6.40 

4 Lembaga Tabung Haji 3,839,920 5.00 

5 Ab Rahim bin Husain 1,617,600 2.11 

6 Mayban Nominees (Asing) Sdn Bhd 

Pledged Securities Account for San Tuan Sam 1,177,700 1.53 

7 Ahmad Fadzil bin Mohamad 743,400 0.97 

8 Azura binti Abdul Halim 718,000 0.93 

9 Amanahraya Trustees Berhad 

Dana Johor 678,000 0.88 

10 Cimsec Nominees (Tempatan) Sdn Bhd 

CIMB Bank for Kuan Peng Ching @ Kuan Peng Soon (MM1076) 632,600 0.82 

11 Sakinah Sharon Needle 591,600 0.77 

12 Taman Bakti (M) Sdn Bhd 572,400 0.75 

13 Ungku Farid bin Ungku Abd Rahman 571,200 0.74 

14 ECML Nominees (Tempatan) Sdn Bhd 

Bank Muamalat Malaysia Berhad for Ab Wahab bin Ismail (1202) 550,000 0.72 

15 Improve Performance Investments Limited 502,500 0.65 

16 OSK Nominees (Tempatan) Sdn Berhad 

Pledged securities Account for Tan Ming Wai 498,000 0.65 

17 Public nominees (Tempatan) Sdn Bhd 

Pledged Securities Account for Tan Lim Soon (E-KPG) 495,000 0.64 

18 Mohd Yusof bin Ibrahim 492,400 0.64 

19 Lim Kew Seng 442,300 0.58 

20 Amin Husain bin Harun 414,320 0.54 

21 EB Nominees (Tempatan) Sendirian Berhad 

Pledged Securities Account for Mohamed Zameel bin Mohamed Hussain 

(EPIC-KLG) 414,200 0.54 

22 Nik Mohamad Pena bin Nik Mustapha 410,000 0.53 

23 TA Nominees (Tempatan) Sdn Bhd 

Pledged Securities Account for Loh Eng Cheang 400,000 0.52 

24 HLB Nominees (Tempatan) Sdn Bhd 

Pledged Securities Account for Mah Siew Seong 375,000 0.49 

25 Tae Sew Tin 317,000 0.41 

26 Kenanga Nominees (Tempatan) Sdn Bhd 

Pledged Securities Account for Abdul Malek bin Othman 304,799 0.40 

27 Taman Bunga Merlimau Sdn Bhd 284,000 0.37 

28 Ab Wahab bin Ismail 280,000 0.36 

29 Lai Ka Chee 280,000 0.36 

30 Mohd Nor bin Manap 263,200 0.34 

Total 46,741,639 60.86

List of Properties 

Location / Description Intended / 

Existing use 

Approximate 

age of 

building 

(years) 

Land area / 

Built-up area 

(square feet) 


Tenure Revaluation 

date 

Net carrying 

amount 

as at 

31 January 

2011 (RM’000) 

Ingress Engineering Sdn Bhd 

Nilai Industrial Estates Industrial land 303,074 Leasehold for October 6,136 

PT Nos. 2475 & 2476 99 years (expiry 2009 

HS (D) 75367 & HS (D) 75368 September 2092) 

Mukim of Setul Industrial 16 109,517 October 12,115 

District of Seremban 

Negeri Sembilan Darul Khusus 

building 2009 

PT No 11469 Industrial land 43,560 Leasehold for October 1,568 

HS (M) 9638 99 years (expiry 2009 

Mukim of Kajang September 2086) 

District of Hulu Langat Industrial 19 25,900 October 2,226 

Selangor Darul Ehsan building 2009 

Unit 17-1-1 to 17-1-14 Staff 17 9,494 Strata Title October 630 

HS (D) 75362, PT No 2193 accomodation (freehold) 2009 

Mukim of Setul 

District of Seremban 

Negeri Sembilan Darul Khusus 

Nilai Spring (Bandar Nilai Utama) Land 6 12,425 Freehold October 250 

GRN 197544, Lot 26332 2009 

Mukim of Bandar Nilai Utama 

PT Nos. 8613 & 8614 Commercial 3 78,689 - March 40,635 

HS (M) 5188 & 5189 & office 2009 

Sungai Penchala building 

Mukim Kuala Lumpur 

Wilayah Persekutuan Land 81,623 Lease March 5,348 

60000 Kuala Lumpur 2009 

Ingress Technologies Sdn Bhd 

Bukit Beruntung Industrial land 365,564 Freehold October 9,200 

Industrial Estates HS (D) 39152 2009 

PT 13990 Seksyen 20 Industrial 13 62,735 7,711 

Mukim Bandar Serendah building 7 103,117 17,735 

District of Ulu Selangor October 

Selangor Darul Ehsan Canteen & 

Prayer room 

7 12,325 2009 2,567 

EG-05 to EG-08, E1-05 to E1-08, Staff 7 15,640 Master Title October 1,291 

E2-05 to E2-08, accomodation (freehold) 2009 

E3-05 to E3-08, E4-05 to E4-08 

Rose Court Block E, Bandar Bukit Sentosa 

48300 Rawang, Selangor Darul Ehsan

160 


List of Properties 

Location / Description Intended / 

Existing use 

Approximate 

age of 

building 

(years) 

Land area / 

Built-up area 

(square feet) 

Tenure Revaluation 

date 

Net carrying 

amount 

as at 

31 January 

2011 (RM’000) 

Ingress Autoventures Co., Ltd 

Plot No S26, (phase 11A) Industrial land 220,183 Freehold November 3,745 

Eastern Seaboard 

Industrial Estates (Rayong) 

2009 

off Highway 331 Pluakdaeng Industrial 14 39,957 November 6,052 

District Amphur Pluakdaeng building 2009 

Rayong Province, Thailand 10 52,334 November 

2009 

6,079 

Hi-Tech Industrial Estate Industrial land 191,664 Freehold November 3,745 

64/6 Moo 1 2009 

Tambol Ban Lane 

Amphur Bang Pa-in Industrial 7 55,768 November 8,627 

Ayutthaya 13160, Thailand building 2009 

PT Ingress Malindo Ventures 

Blok GG-7A, 7B & GG-8 Industrial land 8 143,031 Leasehold for 30 December 2,822 

Jl. Industri Selatan 6A years (expiry 2009 

Blok GG-7 A-B March 2033) 

Kawasan Industri Industrial 8 10,473 December 1,553 

Jababeka Tahap II 

Cikarang, Indonesia 

building 2009 

Fine Components (Thailand) Co., Ltd 

600 Moo 4, T.Makhamkhu Industrial land 413,334 Freehold November 3,040 

King-Am-Pur 

Nikhompattana, Rayong 

2009 

21180 Thailand Industrial 9 70,716 November 3,551 

building 2009

Number of Shares held 

(Before completing this form please refer to the Notes below) 

I/We ............................................................................................... IC No./Passport No./Co. No. ............................................................ 

(full name in capital letters) 

of (Address) .................................................................................................................................................................................................. 

being a member of INGRESS CORPORATION BERHAD, do hereby appoint ........................................................................................ 

........................................................................................................................................................................................................................ 

(full name in capital letters) 

of (Address) .................................................................................................................................................................................................. 

or failing him, the Chairman of the Meeting, as my/our proxy, to vote for me/us and on my/our behalf, at the Twelfth Annual 

General Meeting of the Company to be held on Wednesday, 27 July 2011 at Pacific Ballroom, Level 2, Seri Pacific Hotel Kuala 

Lumpur, Jalan Putra, 50746 Kuala Lumpur at 10.30 a.m. or any adjournment thereof. 

My/our proxy is to vote as indicated below:- 

Resolution Agenda For Against 

Resolution 1 Receive the Directors’ Report, Auditors’ Report and Audited Financial 

Statements for the financial year ended 31 January 2011. 

Resolution 2 Payment of directors’ fees for the financial year ended 31 January 2011. 

Resolution 3 Re-election of Dato’ Vaseehar Hassan bin Abdul Razack. 

Resolution 4 Re-election of Abdul Rahim bin Haji Hitam. 

Resolution 5 Re-appointment of Messrs Ernst & Young as the Company’s Auditor. 

Resolution 6 To authorise the directors under Section 132D of the Companies Act, 1965, 

to allot and issue new shares in the Company. 

(Please indicate with “X” on the spaces provided how you wish your votes to be cast. In the absence of specific directions, 

your proxy will vote or abstain from voting at his discretion.) 

Dated this ______________ day of ________________2011 

_________________________________________ 

Signature of Member(s)/Common Seal 

Proxy Form 

Notes: 

1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend and vote in his or her stead. A proxy may, but 

need not be a member of the Company. 

2. The instrument appointing a proxy shall be in writing under the hand of appointer or his or her attorney duly appointed under a power of attorney 

or if such appointer is a corporation either under its common seal or under the hand of an officer or attorney duly appointed under a power of 

attorney. 

3. Where a member appoints more than one proxy, the appointment is invalid unless the proportions of holdings represented to each proxy are 

specified. 

4. The instrument appointing a proxy must be deposited at the registered office of the Company, Lot 2778, 5th Floor, Jalan Damansara, Sungai Penchala, 

60000 Kuala Lumpur, at least forty-eight (48) hours before the time appointed for holding the meeting or any adjournment thereof. 

5. Registration of members/proxies attending the meeting will be from 9.00 a.m. on the day of the meeting. Members/proxies are required to produce 

their identification documents for registration.

(fold here) 

(fold here) 

INGRESS CORPORATION BERHAD 

Lot 2778, Fifth Floor, 

Jalan Damansara, Sungai Penchala, 

60000 Kuala Lumpur, 

Malaysia. 

affix 

postage 

here

INGRESS CORPORATION 

BERHAD (490799-K) 

Lot 2778, 5th Floor, Jalan Damansara, 

Sungai Penchala, 60000 Kuala Lumpur, Malaysia. 

Tel: 603-7725 5565 Fax: 603-7725 5560 / 61 

E-mail: investordesk@ingresscorp.com.my 

www.ingresscorp.com.my 

INGRESS CORPORATION BERHAD (490799-K) 2010 / 2011 ANNUAL REPORT

PROFILE OF DIRECTORS PROFIL PENGARAH ... - ChartNexus

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?