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G r o u p F i n a n c i a l H i g h l i g h t s

35Annual Report2004

( Re s t ate d )

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4

R M ' 0 0 0 R M ' 0 0 0 R M ' 0 0 0 R M ' 0 0 0 R M ' 0 0 0

PE R F O R M A N C E

Tu rn ove r 2 9 2 , 6 6 9 3 7 6 , 3 0 8 273,004 3 3 0 , 4 3 0 4 5 2 , 7 0 4

Pro f i t / ( Loss) Be fo re Ta x at i o n 1 , 9 5 4 9 , 2 0 3 ( 9 , 9 3 4 ) ( 8 , 9 7 0 ) 9 , 7 9 2

Pro f i t / ( Loss) At t ributable To

Sh a re h o l d e r s 4 0 3 2 , 2 9 4 ( 8 , 9 5 1 ) ( 1 2 , 0 7 8 ) 7 , 2 6 2

A S S E TS EMPLOY E D

Fi xed As s e t s 2 8 8 , 2 5 0 2 7 9 , 9 9 2 267,458 2 7 3 , 5 6 9 2 6 8 , 5 1 5

Goodw i l l 1 , 1 9 0 1 , 1 2 1 1,051 9 8 2 9 5 9

Land Held For Deve l o p m e nt 1 8 0 , 5 9 4 1 6 0 , 5 3 1 1 5 7 , 5 0 0 1 6 4 , 1 6 1 1 6 5 , 2 6 8

Cu rre nt As s e t s 6 3 5 , 6 5 9 5 6 2 , 2 2 7 537,681 5 2 7 , 7 5 3 5 7 3 , 9 8 7

De fe rred Tax As s e t s - - 3,272 3,133 3 , 9 0 1

As s oc i ated Co m p a ny 4 7 7 , 3 1 3 6,735 6 , 1 7 9 8 4 7

Other Inve s t m e nt - - - - 4 , 3 3 0

Total Assets Em p l oye d 1 , 1 0 5 , 7 4 0 1 , 0 1 1 , 1 8 4 973,697 9 7 5 , 7 7 7 1 , 0 1 7 , 8 0 7

FUNDS EMPLOY E D

Sh a re h o l d e r s’ Fu n d 4 4 2 , 4 2 8 4 4 4 , 4 1 6 439,003 4 2 4 , 5 8 6 4 2 9 , 5 8 9

Mi n o ri ty Inte re s t 1 2 4 , 6 7 8 1 2 5 , 6 5 6 124,068 1 2 4 , 5 3 6 1 2 5 , 5 5 3

De fe rred Ta x at i o n 3 6 , 9 6 5 3 7 , 0 3 8 36,518 3 6 , 9 8 4 3 7 , 4 2 0

Cu rre nt Li a b i l i t i e s 4 7 2 , 4 1 8 2 9 6 , 4 6 7 268,415 3 0 8 , 1 4 4 3 2 6 , 3 2 0

Long Te rm Lo a n 2 9 , 2 5 1 1 0 7 , 6 0 7 105,693 8 1 , 5 2 7 9 8 , 9 2 5

Total Funds Em p l oye d 1 , 1 0 5 , 7 4 0 1 , 0 1 1 , 1 8 4 9 7 3 , 6 9 7 975,777 1 , 0 1 7 , 8 0 7

PER ORDINARY SHARE

ON RM1.00 EAC H

Gross Dividend (%) 3 3 3 3 3

Net Ea rnings (sen) 0 . 3 5 2 . 0 1 ( 7 . 8 5 ) ( 1 0 . 5 9 ) 6 . 3 7

Net Tangible Assets (sen) 3 8 7 3 8 9 381 3 6 9 3 7 2

G r o u p F i n a n c i a l H i g h l i g h t s ( C o n t d . )

36 PK ResourcesBerhad (17654 P)

F I N A N C I A L

S T A T E M E N T S

3 8 Di re cto r s’ Re po rt

Re po rt Of The Au d i to r s 4 5

In come St ate m e nt s 4 9

St ate m e nt Of Changes In Eq u i ty 5 0

No tes To The Financial St ate m e nt s 5 6

4 4 St at u to ry De c l a rat i o n

4 7 Ba l a n ce Sh e e t s

4 4 St ate m e nt By Di re cto r s

5 2 Cash Fl ow St ate m e nt s

D i r e c t o r s ’ R e p o r t


The dire ctors pre s e nt their re po rt and the audited financial state m e nts of the Group and of theCo m p a ny for the year ended 31 De ce m ber 2004.

Principal Act i v i t i e s

The principal activities of the Co m p a ny are in the business of provision of management serv i ces andi nve s t m e nt holding. The principal activities of the subsidiaries and assoc i ates are set out in No tes 5and 6 to the financial state m e nt s.

Th e re have been no significa nt changes in the nat u re of these activities during the ye a r.

Re s u l t s

G ROUP CO M PA N YRM RM

Profit/(loss) after taxat i o n 8,479,854 ( 1 , 2 7 1 , 1 6 4 )Mi n o ri ty inte re s t s ( 1 , 2 1 7 , 3 6 4 ) -

Net profit/(loss) for the ye a r 7,262,490 ( 1 , 2 7 1 , 1 6 4 )

Th e re we re no mate rial tra n s fers to or from re s e rves or provisions during the ye a r, other than asdisclosed in the state m e nts of changes in equity.

In the opinion of the dire cto r s, the results of the ope rations of the Group and of the Co m p a ny duri n gthe financial year have not been substant i a l ly affe cted by any ite m , t ra n s a ction or eve nt of a mate ri a land unusual nat u re.

Di v i d e n d s

Du ring the ye a r, the Co m p a ny paid a final dividend of 3% net of tax, a m o u nting to RM2,463,167re p re s e nting the dividend for the financial year ended 2003, as pro posed in the Di re ctors' Re po rt inre s pe ct of the previous ye a r.

At the fo rt h coming Annual Ge n e ral Me e t i n g, a final dividend of 3% net of tax, a m o u nting toRM2,463,167 in re s pe ct of the financial year ended 31 De ce m ber 2004 will be pro posed fo rs h a reholders' approva l . The financial state m e nts for the financial year do not re f l e ct this pro po s e dd i v i d e n d. Such dividend, if approved by the share h o l d e r s, will be acco u nted for in shareholders' equityas an appro p ri ation of retained profits in the financial year ending 31 De ce m ber 2005.

D i r e c t o r s ’ R e p o r t ( C o n t d . )

39Annual Report2004

Di re cto r s

The names of the dire ctors of the Co m p a ny in office since the date of the last re po rt and at the dateof this re po rt are :

Tan Sri Dato' Dr Gan Kong Se n g ( Ch a i rm a n )Datuk Alladin Bin Ha s h i mDato' Gan Kong Hi o kAhmad Bin Mo h d. Al iYM Te n g ku Dato' Shamsul Ba h ri nOoi Soon Ki a mGan Eng Ho n gChor Eng Ch oo n ( Ap po i nted with effe ct from 24 Fe b ru a ry 2005)Dato' Pro f. Zainuddin Bin Mu h a m m a d ( Ap po i nted with effe ct from 24 Fe b ru a ry 2005)Dato' Mohamed Nizam Bin Tun Abdul Ra z a k ( Resigned with effe ct from 1 Ju ly 2004)Lo ke Keng Hu n g ( Resigned with effe ct from 1 Ja n u a ry 2005)

Di re cto r s’ Be n e f i t s

Neither at the end of the financial ye a r, nor at any time during that ye a r, did there subsist anya rra n g e m e nt to which the Co m p a ny was a party, w h e re by dire ctors might acquire benefits by meansof the acquisition of shares in, or debe nt u res of, the Co m p a ny or any other body co rpo rate other thanby virtue of wa rra nts held and from the share options gra nted under the Em p l oyee Sh a re Op t i o n sS c h e m e, as disclosed be l ow.

Si n ce the end of the previous financial ye a r, other than as disclosed in No te 28 to the financials t ate m e nt s, no dire ctor has re ce i ved or be come entitled to re ce i ve any benefit (other than a be n e f i tincluded in the aggre g ate amount of emoluments and fees re ce i ved or due and re ce i vable by thed i re ctors shown in the financial state m e nts or the fixed salary of a full-time employee of the Co m p a ny )by reason of a co nt ra ct made by the Co m p a ny or a re l ated co rpo ration with any dire ctor or with a firmof which the dire ctor is a member or with a co m p a ny in which the dire ctor has a substantial financiali nte re s t, as re q u i red to be disclosed by Se ction 169(8) of the Companies Act, 1 9 6 5 .

Di re cto r s’ Inte re s t s

The fo l l owing dire ctors who held office at the end of the financial year had, a c co rding to the re g i s te rre q u i red to be kept under Se ction 134 of the Companies Act, 1 9 6 5 , i nte rests in shares and in wa rra nt sof the Co m p a ny as stated be l ow:

Ord i n a ry shares of RM1 each in the Co m p a nyAs at As at

Name of Di re cto r s 1 . 1 . 2 0 0 4 Bo u g ht So l d 3 1 . 1 2 . 2 0 0 4

Di re ct inte re s t :

Tan Sri Dato' Dr Gan Kong Se n g 1 , 8 2 1 , 0 0 0 - - 1 , 8 2 1 , 0 0 0Datuk Alladin Bin Ha s h i m 1 3 , 0 0 0 - - 13,000 Dato' Gan Kong Hi o k 1 , 6 4 1 , 5 0 0 - - 1 , 6 4 1 , 5 0 0Gan Eng Ho n g 9 0 0 , 0 0 0 - - 9 0 0 , 0 0 0



Di re cto r s’ Inte rests (Co ntd. )

Ord i n a ry shares of RM1 each in the Co m p a nyAs at As at

Name of Di re cto r s 1 . 1 . 2 0 0 4 Bo u g ht So l d 3 1 . 1 2 . 2 0 0 4

In d i re ct inte re s t :

Tan Sri Dato' Dr Gan Kong Se n g 35,750,434 - - 3 5 , 7 5 0 , 4 3 4Datuk Alladin Bin Ha s h i m 93,000 - - 9 3 , 0 0 0Dato' Gan Kong Hi o k 17,305,382 - 500,000 1 6 , 8 0 5 , 3 8 2Lo ke Keng Hu n g 8,723,882 - 500,000 8 , 2 2 3 , 8 8 2Gan Eng Ho n g 35,029,934 - - 3 5 , 0 2 9 , 9 3 4

Nu m ber of Wa rra nt sAs at As at

Name of Di re cto r s 1.1.2004 Bo u g ht So l d 3 1 . 1 2 . 2 0 0 4

Di re ct inte re s t :

Tan Sri Dato' Dr Gan Kong Se n g 620,000 - - 6 2 0 , 0 0 0Datuk Alladin Bin Ha s h i m 6,000 - - 6 , 0 0 0Dato' Gan Kong Hi o k 417,000 - - 417,000 Gan Eng Ho n g 300,000 - - 300,000

In d i re ct inte re s t :

Tan Sri Dato' Dr Gan Kong Se n g 11,411,978 - - 11,411,978 Dato' Gan Kong Hi o k 8,377,294 - - 8,377,294 Lo ke Keng Hu n g 5,775,294 - - 5,775,294 Gan Eng Ho n g 11,314,978 - - 11,314,978 Datuk Alladin Bin Ha s h i m 35,000 - - 35,000

Nu m ber of Op t i o n sOver Ord i n a ry Sh a res of RM1 each

As at As atName of Di re cto r s 1.1.2004 Gra nted Exe rc i s e d 3 1 . 1 2 . 2 0 0 4

Tan Sri Dato' Dr Gan Kong Se n g - 400,000 - 4 0 0 , 0 0 0Dato' Gan Kong Hi o k - 400,000 - 4 0 0 , 0 0 0Lo ke Keng Hu n g - 250,000 - 2 5 0 , 0 0 0Gan Eng Ho n g - 200,000 - 2 0 0 , 0 0 0YM Te n g ku Dato' Shamsul Ba h ri n - 250,000 - 250,000


41Annual Report2004

Em p l oyee Sh a re Options Scheme

The Em p l oyee Sh a re Options Scheme ("ESOS") is gove rned by the by- l aws approved by thes h a reholders at an Ext ra o rd i n a ry Ge n e ral Meeting held on 30 Ju ly 2002. The ESOS is to be in fo rce for ape ri od of 10 years from the date of implement at i o n , 1 Ma rch 2004. The salient fe at u res and other te rm sof the ESOS are disclosed in No te 18 to the financial state m e nt s.

Other St at u to ry In fo rm at i o n

( a ) Be fo re the balance sheets and income state m e nts of the Group and of the Co m p a ny we re madeo u t, the dire ctors took reasonable ste p s :

( i ) to asce rtain that pro per action had been taken in re l ation to the writing off of bad debts andthe making of allowa n ce for doubtful debts and satisfied themselves that all kn own baddebts had been wri t ten off and that adequate allowa n ce had been made for doubtful debts;a n d

( i i ) to ensure that any curre nt assets which we re unlike ly to realise their values as shown in thea c co u nting re co rds in the ord i n a ry course of business had been wri t ten down to an amountwhich they might be ex pe cted so to re a l i s e.

( b ) At the date of this re po rt, the dire ctors are not awa re of any circ u m s t a n ces which would re n d e r:

( i ) the amount wri t ten off for bad debts or the amount of the allowa n ce for doubtful debts inthe financial state m e nts of the Group and of the Co m p a ny inadequate to any substant i a lexte nt ; a n d

( i i ) the values at t ri b u ted to curre nt assets in the financial state m e nts of the Group and of theCo m p a ny misleading.

( c ) At the date of this re po rt, the dire ctors are not awa re of any circ u m s t a n ces which have ari s e nwhich would render adhere n ce to the existing method of va l u ation of assets or liabilities of theGroup and of the Co m p a ny misleading or inappro p ri ate.

( d ) At the date of this re po rt, the dire ctors are not awa re of any circ u m s t a n ces not otherwise dealtwith in this re po rt or financial state m e nts of the Group and of the Co m p a ny which would re n d e ra ny amount stated in the financial state m e nts misleading.

( e ) As at the date of this re po rt, t h e re does not ex i s t :

( i ) a ny charge on the assets of the Group or of the Co m p a ny which has arisen since the end ofthe financial year which secures the liabilities of any other pe r s o n ; o r

( i i ) a ny co nt i n g e nt liability in re s pe ct of the Group or of the Co m p a ny which has arisen sincethe end of the financial ye a r.



Other St at u to ry In fo rm ation (Co ntd. )

( f ) In the opinion of the dire cto r s :

( i ) no co nt i n g e nt or other liability has be come enfo rceable or is like ly to be come enfo rce a b l ewithin the pe ri od of twe lve months after the end of the financial year which will or maya f fe ct the ability of the Co m p a ny or of the Group to meet their obligations as and when theyfall due; a n d

( i i ) no ite m , t ra n s a ction or eve nt of a mate rial and unusual nat u re has arisen in the inte rva lbe tween the end of the financial year and the date of this re po rt which is like ly to affe cts u b s t a nt i a l ly the results of the ope rations of the Group or of the Co m p a ny for the financialyear in which this re po rt is made.

Si g n i f i ca nt Eve nts Du ring The Year And Su b s e q u e nt To The Ba l a n ce Sheet Date

On 24 Ju ly 2003, the Co m p a ny ente red into a Sale and Pu rchase Ag re e m e nt with TH Group Be rh a d("THG") for the disposal of 3,720,000 ord i n a ry shares of RM1.00 each re p re s e nting the Co m p a ny's ent i res h a reholding in As i a p rise Bi o tech Sdn. Bh d. ( fo rm e rly kn own as As i a p rise Sdn. Bh d.) for a to t a lco n s i d e ration of RM12,699,944. The total co n s i d e ration was satisfied 50% in cash and 50% in new T H Gs h a re s. The disposal was co m p l e ted on 11 May 2004.

On 26 Fe b ru a ry 2004, He a l t h com Sdn. Bh d. , a subsidiary of the Co m p a ny, a c q u i red 100% of the issuedand paid-up capital of He a l t h com Ph a rma Sdn. Bh d. co m p rising 2 ord i n a ry shares of RM1.00 each for acash co n s i d e ration of RM2.00. On 7 Se p te m ber 2004, being part sat i s f a ction of the purchase pri ce of 2units of 4 sto rey shop office s, He a l t h com Ph a rma Sdn. Bh d. a l l o ted 839,998 ord i n a ry shares of RM1.00each to He a l t h com Sdn. Bh d. On that same date, the amount owing to Ph a rmanage Sdn. Bh d. wa scapitalised by alloting 360,000 ord i n a ry shares of RM1.00 each in He a l t h com Ph a rma Sdn. Bh d. toPh a rmanage Sdn. Bh d. Fo l l owing the allotment s, He a l t h com Sdn. Bh d. , holds 70% inte rests inHe a l t h com Ph a rma Sdn. Bh d.

On 10 Ma rch 2004, BBN Deve l o p m e nt Sdn. Bh d. ( " B B N " ) , a subsidiary of the Co m p a ny, d i s posed of its100% inte rest in the issued and paid-up capital of Nostalgia Asal Sdn. Bh d. co m p rising 1,000 ord i n a rys h a res of RM1.00 each for a cash co n s i d e ration of RM10,000.

On 25 May 2004, the Co m p a ny acquired 100% of the issued and paid-up capital of La n ce t Bio Sdn. Bh d.co m p rising 2 ord i n a ry shares of RM1.00 each for a cash co n s i d e ration of RM2.00.

On 20 Se p te m ber 2004, PK Pro pe rties Sdn Bhd ("PKP"), a wholly- owned subsidiary of the Co m p a ny,a c q u i red 2 ord i n a ry shares of RM1.00 each in PK Trade & Se rv i ces ("PKTS") (fo rm e rly kn own as Ab l eMagnitude Sdn. Bh d.) and subscri bed for an additional 4 ord i n a ry shares of RM1.00 each in PKTS toi n c rease the inte rest of PKP in PKTS to 60%.


43Annual Report2004

Si g n i f i ca nt Eve nts Du ring The Year And Su b s e q u e nt To The Ba l a n ce Sheet Date (Co ntd. )

On 30 Nove m ber 2004, the Co m p a ny ente red into a conditional share sale agre e m e nt ("SSA") withPristine Ac res Sdn. Bh d. to dispose of 30,000,000 ord i n a ry shares of RM1.00 each in PK Fe rt i l i zers Sdn.Bh d. ( " P K F " ) , re p re s e nting 100% equity inte rest in PKF ("Pro posed Di s posal") for a cash co n s i d e ration ofR M 3 1 , 3 0 0 , 0 0 0 . As at 31 De ce m ber 2004, the Pro posed Di s posal has yet to be co m p l e te d.

On 5 Ja n u a ry 2005, the Co m p a ny announced that its subsidiary, BBN had succe s s f u l ly co m p l e ted itsinitial issuance of Co m m e rcial Pa pers ("CPs") and pri m a ry notes for Medium Te rm No tes ("MTN")p u r s u a nt to the pro posed issue, o f fer for subscri p t i o n , or purchase of, or inv i t ation to subscri be for orp u rchase of, a 7-year Bank Gu a ra nteed Mu rabahah No tes Is s u a n ce Fa c i l i ty of up to RM86.0 million( " M U N I F " ) . Fu rther details of the said issue are disclosed in No te 21 to the financial state m e nt s.

On 23 Fe b ru a ry 2005, BBN ente red into a tra n s a ction with Aka rmas Sdn. Bh d. , a re l ated party of theCo m p a ny for the sale of a piece of co m m e rcial land in Pu t ra Nilai to Aka rmas Sdn Bhd for a total ca s hco n s i d e ration of RM4,399,977.

Au d i to r s

The audito r s, Ernst & Yo u n g, h ave ex p ressed their willingness to co ntinue in office.

Signed on behalf of the Bo a rd in acco rd a n ce with a resolution of the dire cto r s

TAN SRI DATO' DR GAN KONG SENG

D ATO' GAN KONG HIOK

Ni l a i , Ma l ays i a18 Ap ril 2005

S t a t e m e n t B y D i r e c t o r s

Pu r s u a nt To Se ction 169(15) Of The Companies Act, 1 9 6 5


We, TAN SRI DATO' DR GAN KONG SENG and D ATO' GAN KONG HIOK , beinga two of the dire ctors ofPK RESOURCES BERHAD, do here by state that, in the opinion of the dire cto r s, the acco m p a ny i n gfinancial state m e nts set out on pages 47 to 96 are drawn up in acco rd a n ce with applicable MASBAp p roved Ac co u nting St a n d a rds in Ma l aysia and the provisions of the Companies Act, 1965 so as tog i ve a true and fair view of the financial position of the Group and of the Co m p a ny as at 31 De ce m be r2004 and of the results and the cash flows of the Group and of the Co m p a ny for the year then ended.

Signed on behalf of the Bo a rd in acco rd a n ce with a resolution of the dire cto r s

TAN SRI DATO' DR GAN KONG SENG

D ATO' GAN KONG HIOK

Ni l a i , Ma l ays i a18 Ap ril 2005

S t a t u t o r y D e c l a r a t i o n

Pu r s u a nt To Se ction 169(16) Of The Companies Act, 1 9 6 5

I , LOW OOI LENG , being the Of f i cer pri m a ri ly re s ponsible for the financial management of PK RESOURCES BERHAD , do solemnly and since re ly declare that the financial state m e nts set out onpages 47 to 96 are in my opinion co rre ct, and I make this solemn declaration co n s c i e nt i o u s ly be l i ev i n gthe same to be true and by virtue of the provisions of the St at u to ry De c l a rations Act 1960.

Su b s c ri bed and solemnly declared by the a bovenamed LOW OOI LENG at Nilai in Ne g e ri Sembilan Da rul Khusus on 18 Ap ril 2005. LOW OOI LENG

Be fo re me,

R . NANDAN @ SITHAMBA RA M A M N , PI S , P P N (N 034)Commissioner for Oat h s

Ni l a i , Ma l ays i a

R e p o r t O f T h e A u d i t o r s

To The Me m bers Of PK Re s o u rces Be rh a d

45Annual Report2004

We have audited the acco m p a nying financial state m e nts set out on pages 47 to 96. These financials t ate m e nts are the re s po n s i b i l i ty of the Co m p a ny's dire cto r s.

It is our re s po n s i b i l i ty to fo rm an indepe n d e nt opinion, based on our audit, on the financials t ate m e nts and to re po rt our opinion to yo u, as a body, in acco rd a n ce with Se ction 174 of the Companies Act, 1965 and for no other purpo s e. We do not assume re s po n s i b i l i ty to any other person for the co nte nt of this re po rt.

We co n d u cted our audit in acco rd a n ce with applicable Ap p roved St a n d a rds on Auditing in Ma l ays i a . Those standards re q u i re that we plan and pe r fo rm the audit to obtain reasonable assura n ce about whether the financial state m e nts are free of mate rial misstate m e nt.An audit includes ex a m i n i n g, on a test basis, ev i d e n ce suppo rting the amounts and d i s c l o s u res in the financial state m e nt s. An audit also includes assessing the acco u nting p rinciples used and significa nt estimates made by the dire cto r s, as well as eva l u ating the ove rall pre s e nt ation of the financial state m e nt s. We be l i eve that our audit provides a re a s o n a b l ebasis for our opinion.

In our opinion:

( a ) the financial state m e nts have been pro pe rly drawn up in acco rd a n ce with the provisions of the Companies Act 1965 and applicable MASB Ap p roved Ac co u nting St a n d a rds in Ma l aysia so as to give a true and fair view of:

( i ) the financial position of the Group and of the Co m p a ny as at 31 De ce m ber 2004 and of the results and the cash flows of the Group and of the Co m p a ny for the year then ended;

( i i ) the mat ters re q u i red by Se ction 169 of the Companies Act 1965 to be dealt with in thefinancial state m e nt s ; a n d

( b ) the acco u nting and other re co rds and the re g i s ters re q u i red by the Act to be kept by the Co m p a ny and its subsidiaries for which we have acted as auditors have been pro pe rly kept in acco rd a n ce with the provisions of the Act.

We have co n s i d e red the financial state m e nts and the Au d i tors' Re po rt of Peladang Ch e m i cals (S)Pte Ltd, the subsidiary for which we have not acted as audito r s, being financial state m e nts whicha re included in the co n s o l i d ated financial state m e nt s.

R e p o r t O f T h e A u d i t o r s ( C o n t d . )

To The Me m bers Of PK Re s o u rces Be rh a d


We are satisfied that the financial state m e nts of the subsidiaries that have been co n s o l i d ated with the financial state m e nts of the Co m p a ny are in fo rm and co nte nt a p p ro p ri ate and pro per for the purposes of the pre p a ration of the co n s o l i d ated financials t ate m e nts and we have re ce i ved sat i s f a cto ry info rm ation and ex p l a n ations re q u i red by us for those purpo s e s.

The Au d i tors' Re po r ts on the financial state m e nts of the subsidiaries we re not subject to any qualif ication mate r ial to the co n s o l i d ated financial state m e nts and did not include a ny co m m e nt re q u i red to be made under Se ction 174(3) of the Companies Act 1965.

ERNST & YO U N GA F: 0 0 3 9Ch a r te red Ac co u nt a nt s

TAN SOO YA NNo. 1 3 0 7 / 0 3 / 0 6 (J / PH )Pa r t n e r

Kuala Lu m p u r, Ma l ays i a18 Ap ril 2005

B a l a n c e S h e e t s

As At 31 De ce m ber 2004

47Annual Report2004

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

No te RM RM RM R M

NON CURRENT ASSETS

Pro pe rty, p l a nt & equipment 3 268,514,988 273,568,676 14,039 -Land held for pro pe rty

d eve l o p m e nt 4 165,267,863 164,160,729 - -Inve s t m e nts in subsidiari e s 5 - - 308,008,483 308,008,481 Inve s t m e nts in assoc i ate s 6 846,422 6,178,867 - 8 , 3 3 4 , 6 7 9Other inve s t m e nt 7 4,329,527 - 4,329,527 -De fe rred tax assets 20 3,901,261 3,133,031 - -Goodwill arising on

co n s o l i d at i o n 8 959,126 981,584 - -

443,819,187 448,022,887 312,352,049 3 1 6 , 3 4 3 , 1 6 0

CURRENT ASSETS

Pro pe rty deve l o p m e nt co s t s 9 221,199,733 238,088,836 - -Inve nto ri e s 10 181,776,678 130,313,823 - -Trade re ce i va b l e s 11 132,695,005 126,724,652 - -Other re ce i va b l e s 12 7,049,894 5,329,227 143,063 1 4 0 , 0 0 0Am o u nts due from subsidiari e s 5 - - 111,308,467 1 4 7 , 3 8 9 , 8 0 3Am o u nt due from assoc i ate s 6 533,643 533,473 - -Tax re cove ra b l e 15,642,141 13,318,948 5,102,491 2 , 3 1 4 , 5 1 0De posits with licensed banks 13 2,054,325 3,693,744 42,518 4 1 , 4 2 8Cash and bank balance s 14 13,035,741 9,750,540 459,325 2 5 5 , 8 1 8

573,987,160 527,753,243 117,055,864 1 5 0 , 1 4 1 , 5 5 9

CURRENT LIABILITIES

Trade paya b l e s 15 106,326,333 56,026,232 - - Other paya b l e s 16 67,158,169 93,727,441 27,811,883 51,085,905 Am o u nts due to subsidiari e s 5 - - 75,589,173 68,884,029 Bank bo rrow i n g s 17 152,208,280 155,283,194 44,589 35,000,000 Tax paya b l e 627,624 3,106,542 - -

326,320,406 308,143,409 103,445,645 1 5 4 , 9 6 9 , 9 3 4

NET CURRENT ASSETS /( L I A B I L I T I E S ) 247,666,754 219,609,834 13,610,219 ( 4 , 8 2 8 , 3 7 5 )

691,485,941 667,632,721 325,962,268 3 1 1 , 5 1 4 , 7 8 5

B a l a n c e S h e e t s ( C o n t d . )

As At 31 De ce m ber 2004


G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

No te RM RM RM R M

Fi n a n ced By:

Sh a re ca p i t a l 18 114,035,500 114,035,500 114,035,500 114,035,500 Re s e rve s 19 315,553,259 310,550,407 147,360,091 1 5 1 , 0 9 4 , 4 2 2

Sh a reholders' equity 429,588,759 424,585,907 261,395,591 265,129,922

Mi n o ri ty inte re s t s 125,552,581 124,536,363 - - De fe rred tax liabilities 20 37,419,566 36,983,899 - - Long te rm amount due

to subsidiary 5 - - 64,566,677 - Other long te rm liabilities 21 98,925,035 81,526,552 - 4 6 , 3 8 4 , 8 6 3

691,485,941 667,632,721 325,962,268 311,514,785

The acco m p a nying notes fo rm an inte g ral part of the financial state m e nt s.

I n c o m e S t a t e m e n t s

For The Year Ended 31 De ce m ber 2004

49Annual Report2004

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

No te RM RM RM R M

Reve n u e 22 452,703,799 330,429,661 5,300,000 6,600,000 Cost of sales 22 ( 3 5 2 , 1 1 6 , 7 6 6 ) ( 2 4 9 , 4 2 2 , 0 7 8 ) - -

Gross pro f i t 100,587,033 81,007,583 5,300,000 6,600,000 Other ope rating inco m e 10,721,800 4,284,541 7,483,386 3,459,109 Ad m i n i s t ration ex pe n s e s ( 6 5 , 6 3 1 , 5 3 7 ) ( 5 6 , 9 7 6 , 1 1 3 ) ( 4 , 0 2 8 , 2 7 0 ) ( 5 5 4 , 8 9 5 )Selling and distribution ex pe n s e s ( 5 , 3 5 5 , 9 1 6 ) ( 5 , 1 3 9 , 8 4 5 ) - - Other ope rating ex pe n s e s ( 1 2 , 4 3 2 , 9 1 9 ) ( 1 1 , 8 1 1 , 7 0 5 ) - -

Profit from ope rat i o n s 23 27,888,461 11,364,461 8,755,116 9,504,214 Fi n a n ce co s t s 24 ( 1 8 , 1 1 1 , 1 1 1 ) ( 1 9 , 7 7 7 , 9 8 2 ) ( 1 0 , 0 2 6 , 2 8 0 ) ( 1 3 , 0 3 5 , 4 5 2 )

9,777,350 ( 8 , 4 1 3 , 5 2 1 ) ( 1 , 2 7 1 , 1 6 4 ) ( 3 , 5 3 1 , 2 3 8 )Sh a re of profit/(loss) of assoc i ate s 15,043 ( 5 5 6 , 3 1 0 ) - -

Profit/(loss) be fo re taxat i o n 9,792,393 ( 8 , 9 6 9 , 8 3 1 ) ( 1 , 2 7 1 , 1 6 4 ) ( 3 , 5 3 1 , 2 3 8 )Ta x at i o n 25 ( 1 , 3 1 2 , 5 3 9 ) ( 5 , 0 5 6 , 8 1 9 ) - ( 1 , 5 4 0 , 3 8 3 )

Profit/(loss) after taxat i o n 8,479,854 ( 1 4 , 0 2 6 , 6 5 0 ) ( 1 , 2 7 1 , 1 6 4 ) ( 5 , 0 7 1 , 6 2 1 )Mi n o ri ty inte re s t s ( 1 , 2 1 7 , 3 6 4 ) 1,948,649 - - Profit/(loss) at t ributable to

s h a re h o l d e r s 7,262,490 ( 1 2 , 0 7 8 , 0 0 1 ) ( 1 , 2 7 1 , 1 6 4 ) ( 5 , 0 7 1 , 6 2 1 )

Net profit/(loss) per share (sen)- basic and fully dilute d 26 6.37 ( 1 0 . 5 9 )

Net dividends per share (sen) 27 2 . 1 2.16


S t a t e m e n t O f C h a n g e s I n E q u i t y



S t a t e m e n t O f C h a n g e s I n E q u i t y ( C o n t d . )


51Annual Report2004

C a s h F l o w S t a t e m e n t s



G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

CASH FLOWS FROM O PE RATING AC T I V I T I E S

Profit/(loss) be fo re taxat i o n 9,792,393 ( 8 , 9 6 9 , 8 3 1 ) ( 1 , 2 7 1 , 1 6 4 ) ( 3 , 5 3 1 , 2 3 8 )

Ad j u s t m e nts fo r :

De p re c i ation of pro pe rty,p l a nt and equipment 12,494,173 12,167,728 3,510 -

Pro pe rty, p l a nt and e q u i p m e nt wri t ten off 78,137 127,051 - -

Dividend inco m e ( 1 7 3 , 1 8 1 ) - ( 5 , 4 7 3 , 1 8 1 ) ( 6 , 0 0 0 , 0 0 0 )Inte rest inco m e ( 7 6 0 , 2 4 0 ) ( 6 9 6 , 9 8 5 ) ( 1 , 6 8 2 , 5 7 1 ) ( 3 , 4 5 7 , 7 4 3 )Inte rest ex pe n s e 18,111,111 19,777,982 10,026,280 1 3 , 0 3 5 , 4 5 2Goodwill amort i s e d 71,498 69,542 - - Gain on disposal of

p ro pe rty, p l a nt and e q u i p m e nt ( 6 2 , 7 1 6 ) ( 2 8 0 , 9 1 6 ) - -

Gain on disposal of an a s s oc i ate ( 7 , 3 5 2 , 4 5 6 ) - ( 4 , 3 6 5 , 2 6 5 ) -

Gain on disposal of a s u b s i d i a ry ( 2 9 , 8 4 1 ) - - -

Im p a i rm e nt of inve s t m e nt 2,020,445 - 2,020,445 - ( Wri te back)/allowa n ce

for doubtful debts ( 3 6 9 , 5 2 3 ) 1,252,533 - -Bad debts wri t ten off 1,574,404 - - -Bad debts re cove re d ( 1 5 , 5 0 7 ) - - -Wri te down of inve nto ri e s 1,358,335 503,403 - - Un realised fo reign

exhange (gain)/loss ( 2 1 , 2 1 3 ) - 12,146 - ( Profit)/loss retained in

a s s oc i ate s ( 1 5 , 0 4 3 ) 556,310 - -

Ope rating profit/(loss) be fo re wo rking capital c h a n g e s 36,700,776 24,506,817 ( 7 2 9 , 8 0 0 ) 46,471

C a s h F l o w S t a t e m e n t s ( C o n t d . )


53Annual Report2004

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Changes in wo rking ca p i t a l :

Pro pe rty deve l o p m e nt ex pe n d i t u re 16,889,103 15,811,493 - -

Inve nto ri e s ( 5 2 , 7 7 8 , 6 2 0 ) ( 2 1 , 9 0 1 , 1 5 7 ) - - Re ce i va b l e s ( 9 , 9 6 6 , 3 1 5 ) ( 7 , 6 4 9 , 1 5 4 ) ( 3 , 0 6 3 ) 1,000 Paya b l e s 49,495,172 ( 9 , 6 9 2 , 8 2 6 ) 2,810,038 ( 2 1 8 , 8 8 2 )As s oc i ate s ( 1 7 0 ) ( 2 0 7 ) - - Su b s i d i a ri e s - - 107,353,157 10,709,370

Cash generated from o pe rat i o n s 40,339,946 1,074,966 109,430,332 10,537,959

Dividend re ce i ve d 124,690 - 3,940,690 4,320,000 Inte rest paid ( 1 6 , 3 3 5 , 8 5 0 ) ( 1 4 , 7 6 4 , 1 6 0 ) ( 8 , 4 4 8 , 6 1 7 ) ( 8 , 0 6 8 , 0 0 9 )Tax (paid)/re f u n d ( 6 , 3 9 8 , 7 2 1 ) 5,662,020 ( 1 , 2 5 5 , 4 9 0 ) 3 , 3 6 9 , 0 3 6

Net cash flows generate d /(used in) from ope rating a ct i v i t i e s 17,730,065 ( 8 , 0 2 7 , 1 7 4 ) 103,666,915 1 0 , 1 5 8 , 9 8 6

CASH FLOWS FROM INVESTING AC T I V I T I E S

Proceeds from disposal of p ro pe rty, p l a nt and e q u i p m e nt 219,291 606,423 - -

Pu rchase of pro pe rty,p l a nt and equipment ( 6 , 8 8 3 , 3 1 9 ) ( 1 8 , 7 3 0 , 5 0 8 ) ( 1 7 , 5 4 9 ) -

Sales proceed from disposal of an assoc i ate 6,349,972 - 6,349,972 -

Acquisition of subsidiari e s,net of cash acquired (a) - - ( 2 ) -

Di s posal of subsidiari e s,net of cash disposed (b) 10,000 - - -

Inte rest re ce i ve d 760,240 696,985 1,682,571 3,457,743 Pay m e nt towa rds outstanding

co n s i d e ration on acquisition of subsidiary in previous ye a r ( 2 7 , 6 7 3 , 8 6 9 ) ( 8 , 3 9 2 , 3 3 4 ) ( 2 7 , 6 7 3 , 8 6 9 ) ( 8 , 3 9 2 , 3 3 4 )

Net cash flows used in i nvesting act i v i t i e s ( 2 7 , 2 1 7 , 6 8 5 ) ( 2 5 , 8 1 9 , 4 3 4 ) ( 1 9 , 6 5 8 , 8 7 7 ) ( 4 , 9 3 4 , 5 9 1 )




G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

CASH FLOWS FROM FINANCING AC T I V I T I E S

Proceeds from issue of shares to minori ty inte re s t s 490,000 2,541,000 - -

Dividend paid to share h o l d e r sof the Co m p a ny ( 2 , 4 6 3 , 1 6 7 ) ( 2 , 4 6 3 , 1 6 7 ) ( 2 , 4 6 3 , 1 6 7 ) ( 2 , 4 6 3 , 1 6 7 )

Dividend paid to minori tys h a reholders in subsidiary ( 4 3 2 , 0 0 0 ) - - -

Drawd own of te rm loans 125,189,221 8,496,859 - - Re p ay m e nt of te rm loans ( 1 1 3 , 1 9 9 , 8 6 3 ) ( 1 3 , 0 5 3 , 5 6 0 ) ( 8 1 , 3 8 4 , 8 6 3 ) - Re p ay m e nt of hire

p u rchase cre d i to r s ( 4 2 , 8 5 7 ) - - - Ba n kers acce p t a n ces and

revo lving cre d i t s 6,453,559 32,689,615 - -

Net cash flows generated fro m /(used in) financing act i v i t i e s 15,994,893 28,210,747 ( 8 3 , 8 4 8 , 0 3 0 ) ( 2 , 4 6 3 , 1 6 7 )

NET (INCREASE)/DECREASE IN CASH AND CASH E QU I VA L E N TS 6,507,273 ( 5 , 6 3 5 , 8 6 1 ) 160,008 2,761,228

CASH AND CASH E QU I VA L E N TS ATBEGINNING OF Y E A R ( 3 , 7 3 8 , 2 9 5 ) 1,897,566 297,246 ( 2 , 4 6 3 , 9 8 2 )

CASH AND CASH EQU I VA L E N TS AT END OF Y E A R 2,768,978 ( 3 , 7 3 8 , 2 9 5 ) 457,254 2 9 7 , 2 4 6

Cash and cash equiva l e nts co m p rise the fo l l ow i n g :

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

De posits with licensed banks 2,054,325 3,693,744 42,518 41,428 Cash and bank balance s 13,035,741 9,750,540 459,325 255,818 Bank ove rd ra fts (No te 17) ( 1 2 , 3 2 1 , 0 8 8 ) ( 1 7 , 1 8 2 , 5 7 9 ) ( 4 4 , 5 8 9 ) -

2,768,978 ( 3 , 7 3 8 , 2 9 5 ) 457,254 2 9 7 , 2 4 6



55Annual Report2004

( a ) The fair value of the assets acquired and liabilities assumed for He a l t h com Ph a rma Sdn. Bh d. ,La n ce t Bio Sdn. Bh d. , and PK Trade & Se rv i ces Sdn. Bh d. , we re as fo l l ows :

G RO U P2 0 0 4

RM

Pro pe rty, p l a nt and equipment 6 , 8 7 8Inve nto ri e s 4 2 , 5 7 0Cash and bank balance s 6Other paya b l e s ( 1 4 5 , 6 0 3 )

Fair value of total net assets ( 9 6 , 1 4 9 )Mi n o ri ty inte re s t s 4 7 , 1 1 5

Group's share of net assets ( 4 9 , 0 3 4 )Goodwill on acquisition 4 9 , 0 4 0

Total purchase co n s i d e rat i o n 6

Total cash co n s i d e rat i o n 6Le s s : Cash and cash equiva l e nt acquire d ( 6 )

Cash flow on acquisition, net of cash acquire d -

( b ) The fair value of the assets acquired and liabilities arising from the disposal of Nostalgia Asal Sdn.Bh d. , we re as fo l l ows :

G RO U P2 0 0 4

RM

Paya b l e s ( 2 6 , 6 4 8 )

Sh a re of net liabilities dispo s e d ( 2 6 , 6 4 8 )Mi n o ri ty inte re s t s 6 , 8 0 7Gain on dispo s a l 2 9 , 8 4 1

Total sale co n s i d e rat i o n 1 0 , 0 0 0

Satisfied by:Ca s h 1 0 , 0 0 0Le s s : Cash and cash equiva l e nt dispo s e d -

Net cash inflow of the Gro u p 10,000


N o t e s T o T h e F i n a n c i a l S t a t e m e n t s

31 De ce m ber 2004


1 . Co rpo rate In fo rm at i o n

The Co m p a ny is a public limited liability co m p a ny which is inco rpo rated and domiciled inMa l ays i a .

The re g i s te red office of the Co m p a ny and the principal place at which business is ca rried on isl ocated at Wisma BBN, PT 7454, Jalan BBN 1/1A, Pu t ra Po i nt Phase 1, Pu t ra Ni l a i , 71800 Ni l a i , Ne g e riSembilan Da rul Kh u s u s.

The principal activities of the Co m p a ny are in the business of provision of management serv i ce sand inve s t m e nt holding. The principal activities of the subsidiaries and assoc i ates are set out inNo tes 5 and 6 to the financial state m e nt s.

The numbers of employees in the Group and in the Co m p a ny at the end of the financial year we re924 (2003: 912) and 11 (2003: nil) re s pe ct i ve ly.

The financial state m e nts we re authorised for issue by the Bo a rd of Di re ctors in acco rd a n ce with aresolution of the dire ctors dated 18 Ap ril 2005.

2 . Si g n i f i ca nt Ac co u nting Po l i c i e s

( a ) Basis of Pre p a rat i o n

Unless otherwise indicated in the significa nt acco u nting po l i c i e s, the financial state m e nts ofthe Group and of the Co m p a ny have been pre p a red in co m p l i a n ce with applicable MASBAp p roved Ac co u nting St a n d a rds in Ma l aysia and the provisions of the Companies Act, 1 9 6 5 .

Du ring the financial year ended 31 De ce m ber 2004, the Group and the Co m p a ny adopte dthe fo l l owing applicable MASB Ap p roved Ac co u nting St a n d a rds for the first time:

MASB 32 : Pro pe rty Deve l o p m e nt Act i v i t i e s

The adoption of MASB 32 has not given rise to any adjustments to the opening balances ofthe retained profits of the prior year and curre nt ye a r. Co m p a rat i ve s, h oweve r, h ave be e nre s t ate d, as disclosed in No tes 4 and 9 to co n fo rm to changes in pre s e nt ation that have be e napplied re s t ro s pe ct i ve ly as re q u i red by MASB 32.

( b ) Basis of Co n s o l i d at i o n

( i ) Su b s i d i a ri e s

The co n s o l i d ated financial state m e nts include the audited financial state m e nts of theCo m p a ny and all its subsidiari e s. Su b s i d i a ries are those companies in which the Gro u phas a long te rm equity inte rest and where it has power to exe rcise co nt rol over thefinancial and ope rating policies so as to obtain benefits there f ro m .

N o t e s T o T h e F i n a n c i a l S t a t e m e n t s ( C o n t d . )

31 De ce m ber 2004

57Annual Report2004

2 . Si g n i f i ca nt Ac co u nting Policies (Co ntd. )

( b ) Basis of Co n s o l i d ation (Co ntd. )

( i ) Su b s i d i a ries (Co ntd. )

Su b s i d i a ries are co n s o l i d ated using the acquisition method of acco u nt i n g. Under theacquisition method of acco u nt i n g, the results of subsidiaries acquired or disposed ofd u ring the year are included in the co n s o l i d ated income state m e nt from the effe ct i ved ate of acquisition or up to the effe ct i ve date of dispo s a l , as appro p ri ate. The assets andliabilities of the subsidiaries are measured at their fair values at the date of acquisition.The diffe re n ce be tween the cost of an acquisition and the fair value of the Gro u p ' ss h a re of the net assets of the acquired subsidiary at the date of acquisition is includedin the co n s o l i d ated balance sheet as goodwill or negat i ve goodwill arising onco n s o l i d at i o n .

Goodwil arising on co n s o l i d ation is sys te m at i ca l ly amortised over a pe ri od notexceeding twe nty five years during which the benefits are ex pe cted to ari s e.

Int ra - g roup tra n s a ct i o n s, b a l a n ces and the resulting unrealised profits are eliminate don co n s o l i d ation and the co n s o l i d ated financial state m e nts re f l e ct exte rn a lt ra n s a ctions only. Un realised losses resulting from int ra - g roup tra n s a ctions are alsoe l i m i n ated unless costs cannot be re cove re d.

The gain or loss on disposal of a subsidiary is the diffe re n ce be tween net dispo s a lp roceeds and the Group's share of its net assets together with any unamort i s e db a l a n ce of goodwill and exchange diffe re n ces which we re not prev i o u s ly re cognised inthe co n s o l i d ated income state m e nt.

Mi n o ri ty inte rest in the co n s o l i d ated balance sheet consist of the minorities' share ofthe fair values of the identifiable assets and liabilities of the acquiree as at acquisitiond ate and the minorities' share of move m e nts in the acquiree's equity since then.

Dividends from subsidiaries are included in the income state m e nt of the Co m p a nywhen declare d.

( i i ) As s oc i ate s

As s oc i ates are those companies in which the Group has a long te rm equity inte rest andw h e re it exe rcises significa nt influence over the financial and ope rating po l i c i e s.

Inve s t m e nts in assoc i ates are acco u nted for in the co n s o l i d ated financial state m e nts bythe equity method of acco u nting based on the audited or management financials t ate m e nts of the assoc i ate s. Under the equity method of acco u nt i n g, the Group's shareof profits less losses of assoc i ates during the year is included in the co n s o l i d ate di n come state m e nt. The Group's inte rest in assoc i ates is ca rried in the co n s o l i d ate db a l a n ce sheet at cost plus the Group's share of post-acquisition retained profits ora c c u m u l ated losses and other re s e rve s.


31 De ce m ber 2004



( b ) Basis of Co n s o l i d ation (Co ntd. )

( i i ) As s oc i ates (Co ntd. )

Un realised gains on tra n s a ctions be tween the Group and the assoc i ates are eliminate dto the exte nt of the Group's inte rest in the assoc i ate s. Un realised losses are eliminate dunless costs cannot be re cove re d.

Dividends from assoc i ates are re cognised in the income state m e nt of the Co m p a nywhen declare d.

( c ) Inve s t m e nt in Su b s i d i a ries and As s oc i ate s

The Co m p a ny's inve s t m e nts in subsidiaries and assoc i ates are stated at cost less impairm e ntl o s s e s. The po l i cy for the re cognition and measure m e nt of impairm e nt losses is ina c co rd a n ce with No te 2(k).

On disposal of such inve s t m e nt s, the diffe re n ce be tween net disposal proceeds and theirca rrying amounts is re cognised in the income state m e nt.

( d ) Pro pe rty, Pl a nt and Eq u i p m e nt, and De p re c i at i o n

All pro pe rty, p l a nt and equipment are stated at cost and va l u ation less accumulate dd e p re c i ation and impairm e nt losses. The po l i cy for the re cognition and measure m e nt ofi m p a i rm e nt losses is in acco rd a n ce with No te 2(k).

Ce rtain land and building we re stated on the basis of their previous reva l u ation (subject toco nt i n u i ty in depre c i ation and the re q u i re m e nt to wri te assets down to their re cove ra b l ea m o u nts) as allowed by the transitional provision of the acco u nting standard on pro pe rty,p l a nt and equipment.

Freehold land is not amort i s e d. De p re c i ation on other pro pe rty, p l a nt and equipment isca l c u l ated to wri te off their co s t / va l u ation over their estimated useful lives by the stra i g htline method.

The principal annual rates used are as fo l l ows :

Leasehold land over the lease pe ri ods of 28 to 99 ye a r sClub house 2 %Golf co u r s e 2 %Bu i l d i n g s 1 2/3 % to 20%Pl a nt and equipment, e tc. 5% to 25%

Assets of a value be l ow RM500 are wri t ten off in the year of purc h a s e.

Upon the disposal of an item of pro pe rty, p l a nt and equipment, the diffe re n ce be tween thenet disposal proceeds and the ca rrying amount is taken to the income state m e nt.


31 De ce m ber 2004

59Annual Report2004


( e ) Pro pe rty Deve l o p m e nt Ex pe n d i t u re

( i ) Land held for pro pe rty deve l o p m e nt

Land held for pro pe rty deve l o p m e nt consists of land where no deve l o p m e nt act i v i t i e sh ave been ca rried out or where deve l o p m e nt activities are not ex pe cted to beco m p l e ted within the normal ope rating cyc l e. Such land is classified within non-curre ntassets and is stated at cost less any accumulated impairm e nt losses. The po l i cy for there cognition and measure m e nt of impairm e nt losses is in acco rd a n ce with No te 2(k).

Land held for pro pe rty deve l o p m e nt is reclassified as pro pe rty deve l o p m e nt costs atthe po i nt when deve l o p m e nt activities have co m m e n ced and where it can bed e m o n s t rated that the deve l o p m e nt activities can be co m p l e ted within the norm a lo pe rating cyc l e.

( i i ) Pro pe rty Deve l o p m e nt Co s t s

Pro pe rty deve l o p m e nt costs co m p rise all costs that are dire ct ly at t ributable tod eve l o p m e nt activities or that can be allocated on a reasonable basis to such act i v i t i e s.

When the financial outcome of a deve l o p m e nt act i v i ty can be re l i a b ly estimate d,p ro pe rty deve l o p m e nt revenue and ex penses are re cognised in the income state m e ntby using the stage of completion method. The stage of completion is dete rmined bythe pro po rtion that pro pe rty deve l o p m e nt costs incurred for wo rk pe rfo rmed to datebear to the estimated total pro pe rty deve l o p m e nt co s t s.

Wh e re the financial outcome of a deve l o p m e nt act i v i ty cannot be re l i a b ly estimate d,p ro pe rty deve l o p m e nt revenue is re cognised only to the exte nt of pro pe rtyd eve l o p m e nt costs incurred that is probable will be re cove ra b l e, and pro pe rtyd eve l o p m e nt costs on pro pe rties sold are re cognised as an ex pense in the pe ri od inwhich they are incurre d.

Any ex pe cted loss on a deve l o p m e nt pro j e ct, including costs to be incurred over thed e fe cts liability pe ri od, is re cognised as an ex pense immediate ly.

Pro pe rty deve l o p m e nt costs not re cognised as an ex pense are re cognised as an asset,which is measured at the lower of cost and net realisable va l u e.

The excess of revenue re cognised in the income state m e nt over billings to purc h a s e r sis classified as amount due from customers within trade re ce i vables and the excess ofbillings to purchasers over revenue re cognised in the income state m e nt is classified asa m o u nt due to customers within trade paya b l e s.


31 De ce m ber 2004



( f ) Inve nto ries

Trading inve nto ries are stated at the lower of cost and net realisable va l u e. Cost isd e te rmined on the we i g hted ave rage basis and co m p rises all incidentals incurred inb ringing the inve nto ries to their existing condition and locat i o n . Cost of finished good sincludes mate ri a l , d i re ct labour and prod u ction ove rhead co s t s.

Inve nto ries of unsold co m p l e ted building units are stated at the lower of cost and netrealisable va l u e.

The cost of co m m e rcial land co m p rises land cost and deve l o p m e nt ex pe n d i t u re.

( g ) In come Ta x

In come tax on the profit or loss for the year co m p rises curre nt and defe rred tax. Cu rre nt taxis the ex pe cted amount of income taxes payable in re s pe ct of the taxable profit for the ye a rand is measured using tax rates that have been enacted at the balance sheet date.

De fe rred tax is provided for on te m po ra ry diffe re n ces at the balance sheet date be tween thetax bases of assets and liabilities and their ca rrying amounts in the financial state m e nt s. Inp ri n c i p l e, d e fe rred tax liabilities are re cognised for all taxable te m po ra ry diffe re n ces andd e fe rred tax assets are re cognised for all deductible te m po ra ry diffe re n ce s, unused tax lossesand unused tax credits to the exte nt that it is probable that taxable profit will be ava i l a b l eagainst which the deductible te m po ra ry diffe re n ce s, unused tax losses and unused taxc redits can be utilised. De fe rred tax is not re cog n i s e d, if the te m po ra ry diffe re n ce arises fro mg oodwill or re s e rve on co n s o l i d ation or from the initial re cognition of an asset or liability ina tra n s a ction which is not a business co m b i n ation and at the time of the tra n s a ct i o n , a f fe ct sneither acco u nting profit nor taxable pro f i t.

De fe rred tax is measured at the tax rates that are ex pe cted to apply in the pe ri od when theasset is realised or the liability is settled, based on tax rates that have been enacted ors u b s t a nt i ve ly enacted at the balance sheet date. De fe rred tax is re cognised in the inco m es t ate m e nt, except when it arises from a tra n s a ction which is re cognised dire ct ly in equity, i nwhich case the defe rred tax is also re cognised in equity, or when it arises from a businessco m b i n ation that is an acquisition, in which case the defe rred tax is included in the re s u l t i n gg oodwill or negat i ve goodwill on co n s o l i d at i o n .


31 De ce m ber 2004

61Annual Report2004


( h ) Revenue Re cog n i t i o n

Revenue is re cognised when it is probable that the economic benefits assoc i ated with thet ra n s a ction will flow to the ente rp rise and the amount of the revenue can be measure dre l i a b ly.

( i ) Sale of goods and serv i ce s

Revenue from the sale of goods and serv i ces is re cognised when the risks and rewa rd sof the tra n s a ctions are tra n s fe rred to the buye r.

( i i ) Pro pe rty deve l o p m e nt and long te rm co nt ra ct s

Revenue from pro pe rty deve l o p m e nt and long te rm co nt ra cts is re cognised on thepe rce ntage of completion method by re fe re n ce to the pe rce ntage of act u a lco n s t ru ction wo rk co m p l e te d. Provision is made in full for ant i c i p ated losses, if any.

( i i i ) Inte re s t

Inte rest inco m e, including inte rest or profit deri ved from holding of bo n d s, i sre cognised on an accrual basis. Wh e re re cove ra b i l i ty is unce rt a i n , i nte rest income willbe re cognised on a re ceipt basis.

( i v ) Di v i d e n d

Dividend income from inve s t m e nts in subsidiari e s, a s s oc i ates and other inve s t m e nt sa re included in the income state m e nt when the shareholders' ri g ht to re ce i ve pay m e ntis established and no significa nt unce rt a i nty exists with re g a rd to its re ce i p t.

( i ) Fo reign Cu rre n c i e s

Tra n s a ctions during the year denominated in fo reign currencies are re co rded in Ri n g g i tMa l aysia at rates of exchange ruling at the dates of tra n s a ct i o n s. All gains and losses ari s i n gon exchange are dealt with through the income state m e nt.

As s e t s, liabilities and income state m e nt items of fo reign subsidiaries are tra n s l ated intoRinggit Ma l aysia at the approx i m ate year end rate of exc h a n g e. Tra n s l ation diffe re n ce sa rising there f rom are taken to re s e rve s.

The principal closing rates used in the tra n s l ation of fo reign curre n cy amounts are asfo l l ows :

2004 2 0 0 3Fo reign curre n cy RM R M

1 US Do l l a r 3.80 3 . 8 01 Si n g a po re Do l l a r 2.33 2 . 2 1


31 De ce m ber 2004



( j ) Cash and Cash Eq u i va l e nt s

The cash flow state m e nts classify changes in cash and cash equiva l e nts acco rding too pe rat i n g, i nvesting and financing act i v i t i e s. For the purposes of the cash flow state m e nt s,cash and cash equiva l e nts co m p rise cash in hand, s h o rt te rm deposits and balances withbanks and financial institutions, net of bank ove rd ra ft s, if any. The cash flow state m e nts arep re p a red using the indire ct method.

( k ) Im p a i rm e nt of As s e t s

At each balance sheet date, the Group rev i ews the ca rrying amounts of its assets tod e te rmine whether there is any indication of impairm e nt. If any such indication ex i s t s,i m p a i rm e nt is measured by co m p a ring the ca rrying values of the assets with theirre cove rable amount s. Re cove rable amount is the higher of net selling pri ce and value in use,which is measured by re fe re n ce to disco u nted future cash flows.

An impairm e nt loss is re cognised as an ex pense in the income state m e nt immediate ly,unless the asset is ca rried at revalued amount. Any impairm e nt loss of a revalued asset ist re ated as a reva l u ation decrease to the exte nt of any unutilised prev i o u s ly re cog n i s e dreva l u ation surplus for the same asset. Reversal of impairm e nt losses re cognised in pri o ryears is re co rded when the impairm e nt losses re cognised for the asset no longer exist orh ave decre a s e d.

( l ) Le a s e s

A lease is re cognised as a finance lease if it tra n s fers substant i a l ly to the Group all the ri s k sand rewa rds incident to ow n e r s h i p.

( i ) Fi n a n ce leases

Assets acquired by way of hire purchase or finance leases are stated at an amount equalto the lower of their fair values and the pre s e nt value of the minimum lease pay m e nt sat the inception of the leases, less accumulated depre c i ation and impairm e nt losses.The co rre s ponding liability is included in the balance sheet as bo rrow i n g s. Inca l c u l ation of the pre s e nt value of the minimum lease pay m e nt s, the disco u nt facto rused in the inte rest rate implicit in the lease, when it is pra ct i cable to dete rm i n e ;o t h e rw i s e, the Co m p a ny's incre m e ntal bo rrowing rate is used.

Lease pay m e nts are appo rtioned be tween the finance costs and the re d u ction of theoutstanding liability. Fi n a n ce co s t s, which re p re s e nt the diffe re n ce be tween the to t a lleasing co m m i t m e nts and the fair value of the assets acquire d, a re re cognised as anex pense in the income state m e nt over the te rm of the re l eva nt lease so as to prod u cea co n s t a nt pe ri odic rate of charge on the remaining balance of the obligations for eacha c co u nting pe ri od.

The depre c i ation po l i cy for leased assets is in acco rd a n ce with that for depre c i a b l ep ro pe rty, p l a nt and equipment as descri bed in No te 2(d).


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63Annual Report2004


( l ) Leases (Co ntd. )

( i i ) Ope rating leases

Ope rating lease pay m e nts are re cognised as an ex pense in the income state m e nt on as t ra i g ht-line basis over the te rm of the re l eva nt lease.

( m ) Em p l oyee Be n e f i t s

( i ) Sh o rt te rm be n e f i t s

Wa g e s, s a l a ri e s, bonuses and social securi ty co nt ributions are re cognised as an ex pe n s ein the year in which the assoc i ated serv i ces are re n d e red by employees of the Gro u p.Sh o rt te rm accumulating co m pe n s ated absences such as paid annual leave arere cognised when serv i ces are re n d e red by employees that increase their ent i t l e m e nt tof u t u re co m pe n s ated absence s, and short te rm non-accumulating co m pe n s ate da b s e n ces such as sick leave are re cognised when the absences oc c u r.

( i i ) Defined co nt ribution plans

As re q u i red by law, companies in Ma l aysia make co nt ributions to the state pe n s i o ns c h e m e, the Em p l oyees Prov i d e nt Fund ("EPF"). Such co nt ributions are re cognised as anex pense in the income state m e nt as incurre d.

( i i i ) Eq u i ty co m pe n s ation be n e f i t s

The Em p l oyee Sh a re Options Scheme ("ESOS") allows the Group's employees to acquireo rd i n a ry shares of the Co m p a ny. No co m pe n s ation cost or obligation is re cog n i s e d.When the options are exe rc i s e d, e q u i ty is increased by the amount of the proce e d sre ce i ve d.

( n ) Financial In s t ru m e nt s

Co m pound financial instru m e nts are classified into their liabilities or equity co m po n e nts ina c co rd a n ce with the substance of the co nt ra ctual arra n g e m e nt. Inte re s t, d i v i d e n d s, g a i n sand losses re l ating to a financial instru m e nt classified as a liability, a re re po rted as ex pe n s eor inco m e. Financial instru m e nts are offset when the Group has a legally enfo rceable ri g htto offset and intends to settle either on a net basis or to realise the asset and settle thel i a b i l i ty simultaneously.


31 De ce m ber 2004



( n ) Financial In s t ru m e nts (Co ntd. )

( i ) Re ce i va b l e s

Re ce i vables are ca rried at ant i c i p ated realisable va l u e s. Bad debts are wri t ten off in theyear in which they are ident i f i e d. An estimate is made for doubtful debts on a rev i ewof all outstanding amounts as at the balance sheet date.

( i i ) Paya b l e s

Payables are stated at cost which is the fair value of the co n s i d e ration to be paid in thef u t u re for goods and serv i ces re ce i ve d, whether or not billed to the Gro u p.

( i i i ) Inte re s t - Be a ring Bo rrow i n g s

Inte re s t - be a ring bank loans and ove rd ra fts are re co rded at the amount of proce e d sre ce i ve d, net of tra n s a ction co s t s.

Bo rrowing costs dire ct ly at t r ibutable to the acquisition and co n s t ru ction ofd eve l o p m e nt pro pe rties and pro pe rty, p l a nt and equipment are capitalised as part ofthe cost of those assets, u ntil such time as the assets are re a dy for their intended use ors a l e. All other bo rrowing costs are charged out to the income state m e nt as an ex pe n s ein the pe ri od in which they are incurre d.

( i v ) Eq u i ty In s t ru m e nt s

Ord i n a ry shares are classified as equity. Dividends on ord i n a ry shares are re cognised ine q u i ty in the pe ri od in which they are declare d.


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65Annual Report2004


31 De ce m ber 2004



31 De ce m ber 2004

67Annual Report2004

3 . Pro pe rty, Pl a nt And Eq u i p m e nt (Co ntd. )

Co m p u ter Fu rn i t u reCO M PA N Y e q u i p m e nt Fittings To t a l

RM RM R M

Co s t s

At 1 Ja n u a ry 2004 - - - Ad d i t i o n 15,749 1,800 1 7 , 5 4 9

At 31 De ce m ber 2004 15,749 1,800 17,549

Ac c u m u l ated De p re c i at i o n

At 1 Ja n u a ry 2004 - - - Ch a rge for the ye a r 3,150 360 3,510

At 31 De ce m ber 2004 3,150 360 3,510

Net Book Va l u e

At 31 De ce m ber 2004 12,599 1,440 14,039

Land and buildings include long leasehold pro pe rt i e s, a po rtion of which are stated at va l u at i o n .The analysis of net book value of long leasehold land and buildings be tween the va l u ation andcost po rtions is as fo l l ows :

G RO U P2004 2 0 0 3

RM R M

At va l u at i o n

Long leasehold land- at 1991 va l u at i o n 9,038,518 9 , 2 2 5 , 2 4 8- at 1993 va l u at i o n 4,890,511 4 , 9 4 6 , 7 1 9Buildings - at 1991 va l u at i o n 2,759,551 2 , 8 7 9 , 5 7 4

16,688,580 1 7 , 0 5 1 , 5 4 1

At co s t

Long leasehold land 11,305,910 1 1 , 6 1 1 , 4 0 7Bu i l d i n g s 127,810,120 1 2 8 , 6 8 4 , 6 6 3

139,116,030 1 4 0 , 2 9 6 , 0 7 0

To t a l 155,804,610 1 5 7 , 3 4 7 , 6 1 1


31 De ce m ber 2004


3 . Pro pe rty, Pl a nt And Eq u i p m e nt (Co ntd. )

All other cate g o ries of pro pe rty, p l a nt and equipment are stated at cost less accumulate dd e p re c i at i o n .

The net book value of long leasehold land and buildings stated at va l u at i o n , had they be e nca rried at cost less accumulated depre c i ation and impairm e nt losses, would have be e n :

G RO U P2004 2 0 0 3

RM R M

Long leasehold land 5,722,306 5 , 8 2 4 , 6 2 0Bu i l d i n g s 890,543 1 , 0 8 0 , 4 0 7

6 , 6 1 2 , 8 4 9 6 , 9 0 5 , 0 2 7

The va l u ation of long leasehold land and buildings in 1991 and 1993 we re based on indepe n d e ntp ro fessional va l u ations ca rried out on the open market basis. As allowed by the tra n s i t i o n a lp rovisions of Inte rn ational Ac co u nting St a n d a rd 16 (Rev i s e d ) , Pro pe rty, Pl a nt and Eq u i p m e nt,a d o p ted by the MASB, these assets have co ntinued to be stated on the basis of their 1991 and1993 va l u at i o n s.

Included in pro pe rty, p l a nt and equipment of the Group are land and buildings of subsidiari e s,with an aggre g ate net book value of RM97,672,449 (2003: RM88,288,570) which are charged tofinancial institutions for financial facilities extended to those subsidiari e s.

Du ring the financial ye a r, the Group acquired pro pe rty, p l a nt and equipment at aggre g ate co s t sof RM7,668,319 (2003: RM18,730,508) of which RM785,000 (2003: Nil) was acquired by means of hire purc h a s e. Net book value of motor vehicles held under hire purchase is RM731,595 ( 2 0 0 3 : Ni l ) .

4 . Land Held For Pro pe rty Deve l o p m e nt

G RO U P2004 2 0 0 3

RM R M

Freehold land, at co s tAt 1 Ja n u a ry 164,160,729 1 5 7 , 4 9 9 , 8 4 9Reversal of sales in prior ye a r s 1,107,134 - Tra n s fer from pro pe rty deve l o p m e nt co s t s - 6 , 6 6 0 , 8 8 0

At 31 De ce m be r 165,267,863 1 6 4 , 1 6 0 , 7 2 9

Ce rtain land held for pro pe rty deve l o p m e nt are being charged for bo rrowings taken by thes u b s i d i a ri e s.


31 De ce m ber 2004

69Annual Report2004

5 . Inve s t m e nts In Su b s i d i a ri e s

CO M PA N Y2004 2 0 0 3

RM R M

Un q u o ted share s, at co s t 308,008,481 3 0 8 , 0 0 8 , 4 8 1Acquisition of subsidiary 2 -

308,008,483 3 0 8 , 0 0 8 , 4 8 1

The amounts due to subsidiaries arose pri m a ri ly from pay m e nts on the Co m p a ny's be h a l f.Included in the amount due to subsidiaries was an amount of RM91,236,486 (2003: R M 2 2 , 4 1 9 , 7 6 7 )which bo re inte rest rates of 5.0% to 9.0% (2003: 5.3% to 7.5%) per annum. The amount due tos u b s i d i a ries are unsecured and have no fixed te rms of re p ay m e nt s.

The amounts due from subsidiaries which arose pri m a ri ly in re s pe ct of financing the acquisitionof pro pe rty and re l ated deve l o p m e nt by subsidiaries are unsecure d, bo re inte rest during the ye a rat the rate of 9.0% (2003: 9.0%) per annum, and have no fixed te rms of re p ay m e nt.

The effe ct of the acquisitions on the financial results of the Group from the date of acquisition to31 De ce m ber 2004 arising from He a l t h com Ph a rma Sdn. Bh d. , La n ce t Bio Sdn. Bh d. , and PK Trade &Se rv i ces Sdn. Bh d. , a re as fo l l ows :

R M

Reve n u e 6 9 0Net ope rating co s t s ( 1 , 1 3 3 , 2 8 5 )

Loss after taxat i o n ( 1 , 1 3 2 , 5 9 5 )

The effe ct of the acquisitions on the financial position of the Group as at 31 De ce m ber 2004a rising from He a l t h com Ph a rma Sdn. Bh d. , La n ce t Bio Sdn. Bh d. , and PK Trade & Se rv i ces Sdn. Bh d. ,is as fo l l ows :

R M

Pro pe rty, p l a nt and equipment 1 , 0 5 9 , 0 0 0Inve nto ri e s 4 0 , 5 7 7Other re ce i va b l e s 3 9 , 0 9 5Cash and bank balance s 4 5 , 4 2 5Other paya b l e s ( 5 4 , 5 7 7 )

1 , 1 2 9 , 5 2 0

The fair value of the net assets acquired and liabilities assumed in the acquisition is disclosed inthe cash flow state m e nt s.


31 De ce m ber 2004


5 . Inve s t m e nts In Su b s i d i a ries (Co ntd. )

The effe ct of disposal from the beginning of the financial year to the date of disposal on theGroup's financial results arising from Nostalgia Asal Sdn. Bh d. , is as fo l l ows :

R M

Reve n u e -Net ope rating ex pe n s e s ( 3 0 6 )

Loss after taxat i o n ( 3 0 6 )

The fair value of the net assets and liabilities disposed is disclosed in the cash flow state m e nt s.Details of the subsidiaries are as fo l l ows :

Ef fe ct i vePri n c i p a l Co u nt ry of Eq u i ty

Co m p a ny Act i v i t i e s In co rpo rat i o n Inte re s t2 0 0 4 2 0 0 3

% %

BBN Deve l o p m e nt Pro pe rty deve l o p m e nt Ma l ays i a 7 5 . 3 8 7 5 . 3 8S d n . Bh d.

PK Pro pe rties Sdn. Bh d. Pro pe rty deve l o p m e nt Ma l aysia 100.00 100.00

NS Township Pro pe rty deve l o p m e nt Ma l aysia 70.00 70.00 Deve l o p m e nt Sdn. Bh d.

Arus Ikhlas Sdn. Bh d. Pro pe rty deve l o p m e nt Ma l aysia 70.00 70.00

PK Ed u cation Sdn. Bh d. Provision of educational Ma l aysia 70.00 70.00 s e rv i ce s

Adva n ce Po i nt (M) Ho telling and pro pe rty Ma l aysia 70.00 70.00 S d n . Bh d. d eve l o p m e nt

PK Ho tels & Le i s u re Ho te l l i n g Ma l aysia 100.00 100.00 S d n . Bh d.

Nilai Sp rings Bh d. Ope ration and Ma l aysia 75.38 75.38 m a n a g e m e nt of golf and co u nt ry club

Romila Jaya Sdn. Bh d. Qu a rry ope rat i o n s Ma l aysia 91.05 91.05

Nilai La n d s ca pe Sdn. Bh d. Nu r s e ry and landscaping Ma l aysia 100.00 100.00

Adva n ce Po i nt Provision of building Ma l aysia 70.00 70.00 Ma n a g e m e nt Sdn. Bh d. m a n a g e m e nt serv i ce s


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71Annual Report2004

5 . Inve s t m e nts In Su b s i d i a ries (Co ntd. )

Ef fe ct i vePri n c i p a l Co u nt ry of Eq u i ty

Co m p a ny Act i v i t i e s In co rpo rat i o n Inte re s t2 0 0 4 2 0 0 3

% %

PK Fe rt i l i zers Sdn. Bh d. Ma n u f a ct u ring and Ma l aysia 100.00 100.00 m e rchandising of fe rt i l i ze r s

Serba Kimia Sdn. Bh d. Ma n u f a ct u ring and Ma l aysia 100.00 100.00 m e rchandising chemicals and chemical prod u ct s

He a l t h com Ph a rma Di s t ribution of Ma l aysia 35.70 - S d n . Bh d. p h a rm a ce u t i cal and

re l ated prod u ct s

He a l t h com Sdn. Bh d. Do rm a nt Ma l aysia 51.00 51.00

PK Trade & Se rv i ces Ma n a g e m e nt Se rv i ces Ma l aysia 100.00 - S d n . Bh d.

La n ce t Bio Sdn. Bh d. Do rm a nt Ma l aysia 100.00 -

Nilai Hills Sdn. Bh d. Do rm a nt Ma l aysia 100.00 100.00

PK Aca d e my Sdn. Bh d. Do rm a nt Ma l aysia 70.00 70.00

Awan Ce rm at Sdn. Bh d. Do rm a nt Ma l aysia 91.05 91.05

PK He a l t h ca re Se rv i ces Do rm a nt Ma l aysia 100.00 100.00 S d n . Bh d.

PK In n ovations Sdn. Bh d. Do rm a nt Ma l ays i a 75.38 7 5 . 3 8( fo rm e rly kn own as BBN Pro pe rties S d n . Bh d. )

Ek s p res Nilai Sdn. Bh d. Do rm a nt Ma l aysia 75.38 75.38

Peladang Ch e m i cals Do rm a nt Si n g a po re 100.00 100.00 (S) Pte. L td. *

Nostalgia Asal Sdn. Bh d. Do rm a nt Ma l aysia - 75.38

* Au d i ted by a member firm of Ernst & Young Gl o b a l


31 De ce m ber 2004


6 . Inve s t m e nts In As s oc i ate s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Un q u o ted share s, at co s t 1,089,000 9,423,679 - 8,334,679 Sh a re of post-acquisition losses ( 2 4 2 , 5 7 8 ) ( 3 , 2 4 4 , 8 1 2 ) - -

846,422 6,178,867 - 8,334,679

Sh a re of net assets 846,422 6,178,867 - -

Am o u nt due from an assoc i ate included under curre nt assets 533,643 533,473 - -

The amount due from an assoc i ate is unsecure d, i nte re s t - f re e, and has no fixed te rms ofre p ay m e nt.

Details of the assoc i ates are as fo l l ows :

Ef fe ct i vePri n c i p a l Co u nt ry of Eq u i tyAct i v i t i e s In co rpo rat i o n Inte re s t

2004 2 0 0 3% %

As i a p rise Bi o tech Sdn Bh d Ope ration of a specialised Ma l aysia - 30.00 ca n cer tre at m e nt ce nt re

Golden Pl ateau Sdn. Bh d. Do rm a nt Ma l aysia 50.00 50.00

7 . Other Inve s t m e nt s

G RO U P / CO M PA N Y2004 2 0 0 3

RM R M

Qu o ted share s, at co s t 6,349,972 - Le s s : Ac c u m u l ated impairm e nt losses ( 2 , 0 2 0 , 4 4 5 ) -

4,329,527 -

Ma rket value as at 31 De ce m ber 4,329,527 -


31 De ce m ber 2004

73Annual Report2004

8 . Goodwill Arising On Co n s o l i d at i o n

G RO U P2004 2 0 0 3

RM R M

At co s t 1,787,586 1,738,546 Le s s : Ac c u m u l ated amort i s at i o n ( 8 2 8 , 4 6 0 ) ( 7 5 6 , 9 6 2 )

At 31 De ce m be r 959,126 981,584

9 . Pro pe rty Deve l o p m e nt Co s t s

G RO U P2004 2 0 0 3

RM R M

At 1 Ja n u a ryFreehold land 93,986,142 1 0 8 , 8 0 7 , 1 8 1Deve l o p m e nt co s t s 311,345,401 365,703,627

405,331,543 4 7 4 , 5 1 0 , 8 0 8

Cost incurred during the ye a r :Deve l o p m e nt co s t s 39,681,664 32,115,797

Cost re cognised in income state m e ntAt 1 Ja n u a ry ( 1 6 7 , 2 4 2 , 7 0 7 ) ( 1 2 2 , 8 1 4 , 3 7 0 )Re cognised during the ye a r ( 4 7 , 9 1 4 , 8 1 1 ) ( 4 4 , 4 2 8 , 3 3 7 )

At 31 De ce m be r ( 2 1 5 , 1 5 7 , 5 1 8 ) ( 1 6 7 , 2 4 2 , 7 0 7 )

Tra n s fe r s :To land held for pro pe rty deve l o p m e nt - ( 6 , 6 6 0 , 8 8 0 )To inve nto ri e s ( 8 , 6 5 5 , 9 5 6 ) ( 9 4 , 6 3 4 , 1 8 2 )

( 8 , 6 5 5 , 9 5 6 ) ( 1 0 1 , 2 9 5 , 0 6 2 )

Pro pe rty deve l o p m e nt costs at 31 De ce m ber 221,199,733 238,088,836

Ce rtain pieces of land under pro pe rty deve l o p m e nt costs are being charged for bo rrowings take nby the subsidiari e s.


31 De ce m ber 2004


1 0 . Inve nto ri e s

G RO U P2004 2 0 0 3

RM R M

At co s t :

Trading inve nto ri e s 117,250,297 61,417,803 Unsold co m p l e ted building units 18,096,721 20,474,667 Co m m e rcial land 40,493,416 42,481,974 Wo rk in prog ress 769,543 762,682 Ho tel supplies and co n s u m a b l e s 736,352 750,895 Co n s u m a b l e s 220,349 215,802

177,566,678 126,103,823

At net realisable va l u e :

Unsold co m p l e ted building units 4,210,000 4,210,000

181,776,678 130,313,823

1 1 . Trade Re ce i va b l e s

G RO U P2004 2 0 0 3

RM R M

Trade re ce i va b l e s 137,343,455 131,284,887 Le s s : Al l owa n ce for doubtful debts ( 4 , 6 4 8 , 4 5 0 ) ( 4 , 5 6 0 , 2 3 5 )

132,695,005 126,724,652

Included in trade re ce i vables of the Group are balances totalling RM45,263,001 (2003:RM45,463,001) from three ent i t i e s, of which RM9,495,425 (2003: RM9,495,425) are amounts duef rom two companies in which ce rtain dire ctors have financial inte re s t s. In dete rmining the exte ntof allowa n ce for doubtful debts, the Di re ctors have given due co n s i d e ration to the curre nte conomic conditions and other info rm ation available to assess the like l i h ood of bad debts ari s i n g.Although unce rt a i nty genera l ly exists with re g a rd to the re cove ry of debts under the curre nte conomic co n d i t i o n s, the Di re ctors are of the opinion that the allowa n ce made for doubtfuldebts is adequate. It is not po s s i b l e, h oweve r, for the allowa n ce to ant i c i p ate any possible futured e te ri o ration in credit conditions in re s pe ct of debtor part i e s.

The Group's normal trade credit te rm ranges from 21 wo rking days to 90 days. Other credit te rm sa re assessed on a ca s e - by- case basis.


31 De ce m ber 2004

75Annual Report2004

1 2 . Other Re ce i va b l e s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

De po s i t s 2,156,701 1,976,946 140,000 140,000 Pre p ay m e nt s 3,764,511 1,700,931 - - Su n d ry re ce i va b l e s 1,128,682 1,651,350 3,063 -

7,049,894 5,329,227 143,063 140,000

1 3 . De posits With Li censed Ba n k s

The we i g hted ave rage inte rest rate during the financial year and the ave rage mat u ri ty of depo s i t swith licensed banks as at 31 De ce m ber we re as fo l l ows :

G RO U P G RO U PWe i g hted Ave ra g e Ave rage Mat u ri ty

Inte rest Rate Days2004 2003 2004 2 0 0 3

Fi xed depo s i t s 3.0 3.1 92 1 5 1Re po - 2.4 - 7

1 4 . Cash And Bank Ba l a n ce s

Included in cash and bank balances of the Group are amounts totalling RM5,523,427 (2003:RM4,645,263) placed in trust for purchasers of re s i d e ntial houses and apart m e nts in acco rd a n cewith Housing Deve l o pers (Co nt rol and Li censing) Act 1966.

Included in cash and bank balances are amounts of RM190,910 (2003: RM267,000) in re s pe ct ofs h a re application monies re ce i ved for shares in a subsidiary which are held in trust on behalf ofthe applica nts and the re l ated other payables are disclosed in No te 16. These application monieshad been placed in trust as at 31 De ce m ber 2004.

1 5 . Trade Paya b l e s

The normal trade credit te rms gra nted to the Group range from 30 to 90 days.


31 De ce m ber 2004


1 6 . Other Paya b l e s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Ba l a n ce of co n s i d e ration on acquisition of a subsidiary ( No te 21) 12,128,842 39,802,711 12,128,842 39,802,711

Pa rtial pay m e nt for disposal of PK Fe rt i l i zers Sdn. Bh d. 2,730,000 - 2,730,000 -

Su n d ry paya b l e s 21,484,186 17,579,387 12,588,423 10,014,524 De po s i t s 5,536,834 9,244,833 - - Ac c ru a l s 16,859,448 12,529,795 324,618 1,238,670 Prov i s i o n s 7,105,550 10,639,983 40,000 30,000 De fe rred inco m e 1,122,399 3,663,732 - - Am o u nts held in tru s t 190,910 267,000 - -

67,158,169 93,727,441 27,811,883 51,085,905

Provision are in re s pe ct of liquidated asce rtained damages, p ro fessional serv i ce s, d i re ctors' fe e s,bonus and assessment.

Details of amounts held in trust are disclosed in No te 14.

1 7 . Bank Bo rrow i n g s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Un s e c u re d :Ba n kers' acce p t a n ce s 89,914,174 83,460,615 - - Bank ove rd ra ft s 7,077,997 11,741,684 44,589 -

Se c u re d :Bank ove rd ra ft s 5,243,091 5,440,895 - -

Cu rre nt po rtion of long te rm liabilities (No te 21)- Co m m e rcial Pa pe r s 30,500,390 - - -- Hi re purc h a s e 140,113 - - - - Te rm loans 19,332,515 54,640,000 - 3 5 , 0 0 0 , 0 0 0

152,208,280 155,283,194 44,589 35,000,000


31 De ce m ber 2004

77Annual Report2004

1 7 . Bank Bo rrowings (Co ntd. )

Inte rest on the bank bo rrowings during the year ranged from 3% to 7.9% (2003: 3.5% to 10.10%)per annum.

The bank ove rd ra fts are secured by a fixed charge over ce rtain landed pro pe rties of subsidiari e sas stated in No te 3.

The securi ty over the long te rm loan is disclosed in No te 21.

1 8 . Sh a re Ca p i t a l

G RO U P / CO M PA N Y2004 2 0 0 3

RM R M

Au t h o ri s e d :250,000,000 ord i n a ry shares of RM1 each 2 5 0 , 0 0 0 , 0 0 0 2 5 0 , 0 0 0 , 0 0 0

Issued and fully paid up:114,035,500 ord i n a ry shares of RM1 each 1 1 4 , 0 3 5 , 5 0 0 114,035,500

( a ) Wa rra nt s

On 29 May 1995, the Co m p a ny issued RM150 million of bonds with 39 millions detachablewa rra nts upon obtaining approvals from the re l eva nt authori t i e s. The detachable wa rra nt s( “Existing Wa rra nt s”) we re offe red for sale to the then entitled shareholders at an offer pri ceof 82 sen per wa rra nt.

The bonds ex p i red on 28 May 2000 and we re subsequent ly co nve rted into a te rm loan. Th ete rm loan was repaid during the year with the proceeds from the issuance of Medium Te rmNo tes and Co m m e rcial Pa pers as detailed in No te 22.

On 27 August 1999, the Co m p a ny extended the ex p i ry pe ri od of all Existing Wa rra nts fro m28 Nove m ber 1999 to 28 May 2005 (“Existing Extended Wa rra nt s” ) . Su b s e q u e nt ly, t h eCo m p a ny, vide its pro s pe ctus dated 20 Nove m ber 2000, o f fe red 38,994,500 Re p l a ce m e ntWa rra nts to the then Existing Extended Wa rra nt holders, on the basis of one (1) Re p l a ce m e ntWa rra nt for eve ry one (1) Existing Extended Wa rra nt held. The Re p l a ce m e nt Wa rra nts havethe same ex p i ry date as the Existing Extended Wa rra nts of 28 May 2005.

A total number of 36,645,850 Re p l a ce m e nt Wa rra nts we re issued to re p l a ce the Ex i s t i n gExtended Wa rra nt s.


31 De ce m ber 2004


1 8 . Sh a re Capital (Co ntd. )

( a ) Wa rra nts (Co ntd. )

As at 31 De ce m ber 2004, none of the 36,645,850 Re p l a ce m e nt Wa rra nts and 2,348,650Existing Extended Wa rra nts had been exe rc i s e d. Re l eva nt details are as fo l l ows :

Options Exe rc i s e Nu m ber ofWa rra nt s Ex p i ry date p ri ce wa rra nt s

Existing Extended Wa rra nt s( Existing 1995/2005 wa rra nt s ) 28 May 2005 R M 6 . 3 0 2 , 3 4 8 , 6 5 0

Re p l a ce m e nt Wa rra nt s(2000/2005 wa rra nt s ) 28 May 2005 R M 2 . 2 2 3 6 , 6 4 5 , 8 5 0

3 8 , 9 9 4 , 5 0 0

( b ) E S O S

ESOS is gove rned by the by- l aws approved by the shareholders at an Ext ra o rd i n a ry Ge n e ra lMeeting held 30 Ju ly 2002. The ESOS is to be in fo rce for a pe ri od of 10 years from the dateof implement at i o n , 1 Ma rch 2004.

The salient fe at u res of the ESOS are as fo l l ows :

( i ) The Options Co m m i t tee appo i nted by the Bo a rd of Di re ctors to administer the ESOS,m ay from time to time gra nt options to eligible employees of the Group to subscri befor new ord i n a ry shares of RM1 each in the Co m p a ny.

( i i ) Su b j e ct to the discretion of the Options Co m m i t te e, a ny employee whose employ m e ntis more than one (1) year and any exe c u t i ve dire ctors holding office in a full-timeexe c u t i ve ca p a c i ty of the Gro u p, shall be eligible to part i c i p ate in the ESOS.

( i i i ) The total number of shares to be issued under the ESOS shall not exceed in aggre g ate10% of the issued share capital of the Co m p a ny at any po i nt of time during the te n u reof the ESOS and out of which not more than 50% of the shares shall be allocate d, i na g g re g ate, to dire ctors and senior management. In addition, not more than 10% of thes h a res available under the ESOS shall be allocated to any individual dire ctor ore m p l oyee who, either singly or co l l e ct i ve ly through his/her assoc i ate s, holds 20% orm o re in the issued and paid-up capital of the Co m p a ny.


31 De ce m ber 2004

79Annual Report2004

1 8 . Sh a re Capital (Co ntd. )

( b ) ESOS (Co ntd. )

( i v ) The option pri ce for each share shall be the we i g hted ave rage of the market pri ce asq u o ted in the daily official list issued by Bursa Ma l aysia Se c u rities Be rhad for the 5m a rket days immediate ly pre ceeding the date on which the option is gra nted less, i fthe Options Co m m i t tee shall so dete rmine at their discretion from time to time, ad i s co u nt of not more than 10% or the par value of the shares of the Co m p a ny of RM1.

( v ) The options shall be come exe rcisable only during the employees lifetime provided thee m p l oyee has been in co ntinuous serv i ce with the Group throughout the pe ri od.

( v i ) All new ord i n a ry shares issued upon exe rcise of the options gra nted under the ESOSwill rank pari passu in all re s pe cts with the existing ord i n a ry shares of the Co m p a nyother than as may be specified in a resolution approving the distribution of dividendsp rior to their exe rcise date s.

( v i i ) The persons to whom the options have been gra nted have no ri g ht to part i c i p ate byv i rtue of the options, in any share issue of any other co m p a ny.

1 9 . Re s e rve s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Di s t ri b u t a b l e :Retained pro f i t s 180,292,393 175,520,697 29,222,096 32,956,427

No n - d i s t ri b u t a b l e :Sh a re pre m i u m 113,537,671 113,537,671 113,537,671 113,537,671 Capital re s e rve 18,393,884 18,175,043 1,628,324 1,628,324 Capital redemption re s e rve 2,972,000 2,972,000 2,972,000 2,972,000 Exchange re s e rve 357,311 344,996 - -

315,553,259 310,550,407 147,360,091 151,094,422

Move m e nts in re s e rves are shown in the re s pe ct i ve state m e nts of changes in equity.

Based on estimated tax credits and the tax exempt acco u nt balance available as at balance sheetd ate, s u b j e ct to the agre e m e nt of the Inland Revenue Bo a rd, the ent i re retained profits of theCo m p a ny is available for distribution by way of dividends without incurring additional taxl i a b i l i ty.


31 De ce m ber 2004


1 9 . Re s e rves (Co ntd. )

The nat u re and purpose of each cate g o ry of re s e rve are as fo l l ows :

( a ) Sh a re Pre m i u m

This amount arose from premium on the issue of ord i n a ry shares above par va l u e.

( b ) Capital Re s e rve

Capital re s e rve of the Group amounting to RM16,589,458 (2003: RM16,491,484) arose fro mp remium on shares issued to non-part i c i p ating minori ty inte rests in a subsidiary.

Capital re s e rve of RM1,628,324 (2003: RM1,628,324) in the Group and Co m p a ny arose fro mp roceeds from the issue of re p l a ce m e nt wa rra nts less re l ated ex pe n s e s.

( c ) Capital redemption re s e rve

This amount arose from the nominal value of shares re p u rchased and ca n ce l l e d. The amountwas tra n s fe rred from retained profits under Se ction 67A of the Companies Act, 1 9 6 5 .

(d) Fo reign Exchange Re s e rve

The fo reign exchange re s e rve co m p rises all fo reign exchange diffe re n ces arising from thet ra n s l ation of the financial state m e nts of a fo reign subsidiary.

2 0 . De fe rred Tax Liabilities And As s e t s

G RO U P2004 2 0 0 3

RM R M

At 1 Ja n u a ry 33,850,868 33,246,303 Re cognised in the income state m e nt ( 3 3 2 , 5 6 2 ) 6 0 4 , 5 6 5

At 31 De ce m be r 33,518,306 33,850,868

Pre s e nted after appro p ri ate offsetting as fo l l ows :

G RO U P2004 2 0 0 3

RM R M

De fe rred tax assets: ( 3 , 9 0 1 , 2 6 1 ) ( 3 , 1 3 3 , 0 3 1 )De fe rred tax liabilities: 37,419,567 36,983,899

33,518,306 33,850,868


31 De ce m ber 2004

81Annual Report2004

2 0 . De fe rred Tax Liabilities And Assets (Co ntd. )

De fe rred tax liabilities of the Gro u p :

Ac ce l e rate d Reva l u at i o n Pro pe rtyca p i t a l of leasehold d eve l o p m e nt

a l l owa n ce l a n d ex pe n d i t u re To t a lR M R M R M R M

At 1 Ja n u a ry 2004 15,157,081 1,374,952 29,809,689 46,341,722 Re cognised in the inco m e

s t ate m e nt 3,075,434 - ( 8 6 8 , 5 0 9 ) 2 , 2 0 6 , 9 2 5

At 31 De ce m ber 2004 18,232,515 1,374,952 28,941,180 48,548,647

At 1 Ja n u a ry 2003 6,303,446 - 30,392,003 36,695,449 Re cognised in the inco m e

s t ate m e nt 8,853,635 1,374,952 ( 5 8 2 , 3 1 4 ) 9,646,273

At 31 De ce m ber 2003 15,157,081 1,374,952 29,809,689 46,341,722

De fe rred tax assets of the Gro u p :

Tax losses andu n a b s o r be d

Prov i s i o n s a l l owa n ce s Ot h e r s To t a lR M R M R M R M

At 1 Ja n u a ry 2004 ( 3 , 7 2 3 , 2 3 0 ) ( 8 , 6 8 1 , 5 6 4 ) ( 8 6 , 0 6 0 ) ( 1 2 , 4 9 0 , 8 5 4 )Re cognised in the inco m e

s t ate m e nt 1,187,503 ( 3 , 7 9 5 , 0 0 9 ) 68,019 ( 2 , 5 3 9 , 4 8 7 )

At 31 De ce m ber 2004 ( 2 , 5 3 5 , 7 2 7 ) ( 1 2 , 4 7 6 , 5 7 3 ) ( 1 8 , 0 4 1 ) ( 1 5 , 0 3 0 , 3 4 1 )

At 1 Ja n u a ry 2003 ( 2 , 7 6 5 , 8 1 4 ) ( 5 6 2 , 4 7 5 ) ( 1 2 0 , 8 5 7 ) ( 3 , 4 4 9 , 1 4 6 )Re cognised in the inco m e

s t ate m e nt ( 9 5 7 , 4 1 6 ) ( 8 , 1 1 9 , 0 8 9 ) 34,797 ( 9 , 0 4 1 , 7 0 8 )

At 31 De ce m ber 2003 ( 3 , 7 2 3 , 2 3 0 ) ( 8 , 6 8 1 , 5 6 4 ) ( 8 6 , 0 6 0 ) ( 1 2 , 4 9 0 , 8 5 4 )


31 De ce m ber 2004


2 0 . De fe rred Tax Liabilities And Assets (Co ntd. )

De fe rred tax assets not re cognised are in re s pe ct of the fo l l owing ite m s :

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Arising fro m :Un a b s o r bed tax losses 67,393,790 76,525,748 - - Un a b s o r bed allowa n ce s 31,738,441 27,805,761 66,517 10,234 Other te m po ra ry diffe re n ce s 10,123 292,905 - -

The unabsorbed tax losses and unabsorbed allowa n ces are subject to the agre e m e nt of theInland Revenue Bo a rd. De fe rred tax assets have not been re cognised for ce rtain subsidiaries as itis not probable that sufficient taxable profit of the subsidiaries will be available against which allthe above deductible te m po ra ry diffe re n ces can be utilised.

2 1 . Other Long Te rm Li a b i l i t i e s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Ba l a n ce of co n s i d e ration on acquisition of a subsidiary ( a ) 12,128,842 39,802,711 12,128,842 39,802,711

Te rm loans ( b ) 70,622,158 136,166,552 - 81,384,863 Medium Te rm No te s ( c ) 47,033,362 - - - Co m m e rcial Pa pe r s ( c ) 30,500,390 - - - Hi re purchase cre d i to r s ( d ) 742,143 - - -

161,026,895 175,969,263 12,128,842 121,187,574

Le s s : Cu rre nt po rtion of :b a l a n ce of co n s i d e ration on acquisition of as u b s i d i a ry (No te 16) ( 1 2 , 1 2 8 , 8 4 2 ) ( 3 9 , 8 0 2 , 7 1 1 ) ( 1 2 , 1 2 8 , 8 4 2 ) ( 3 9 , 8 0 2 , 7 1 1 )

- Co m m e rcial Pa pe r s ( 3 0 , 5 0 0 , 3 9 0 ) - - - - Hi re purchase cre d i to r s ( 1 4 0 , 1 1 3 ) - - - - Te rm loans ( 1 9 , 3 3 2 , 5 1 5 ) ( 5 4 , 6 4 0 , 0 0 0 ) - ( 3 5 , 0 0 0 , 0 0 0 )

98,925,035 81,526,552 - 46,384,863


31 De ce m ber 2004

83Annual Report2004

2 1 . Other Long Te rm Liabilities (Co ntd. )

( a ) The balance of co n s i d e ration on acquisition of a subsidiary re p re s e nts the remaining 45% ofthe co n s i d e ration for the acquisition of the 70% equity inte rest in Arus Ikhlas Sdn Bh d( " A I S B " ) . The outstanding balance was payable to the vendor of AISB on or be fo re the ex p i ryof the 36 month pe ri od from the date of completion of the acquisition, i . e. by De ce m be r2 0 0 1 . Until that date, the amount owing was non-inte rest be a ri n g. Howeve r, i nte rest at 10%per annum is chargeable on the balance outstanding after the 36 month pe ri od until fulls e t t l e m e nt of the balance (No te 24).

( b ) Te rm Lo a n s

Te rm loans co m p rise four loans which are secured by fixed and floating charges on ce rt a i nf reehold and long leasehold land and buildings of ce rtain subsidiari e s. Inte rest was charg e dd u ring the year at 5.09 % to 9.0% (2003: 7.65% to 10.0%) per annum.

The te rm loans are re p ayable as fo l l ows :

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Financial year ended/ending:

31 De ce m ber 2004 - 54,640,000 - 35,000,000 31 De ce m ber 2005 19,865,000 42,016,830 - 2 0 , 0 0 0 , 0 0 031 De ce m ber 2006 43,501,830 33,024,863 - 26,384,863 31 De ce m ber 2007 6,225,000 6,484,859 - - 31 De ce m ber 2008 600,000 - - - 31 De ce m ber 2009 430,328 - - -

70,622,158 136,166,552 - 81,384,863

( c ) Medium Te rm No tes and Co m m e rcial Pa pe r s

Du ring the ye a r, BBN Deve l o p m e nt Sdn. Bh d. ( " B B N " ) , a subsidiary of the Co m p a ny issuedRM31,000,000 of Co m m e rcial Pa pers ("CPs") and RM50,000,000 of Medium Te rm No te s("MTN") under the Mu rabahah No tes Is s u a n ce Fa c i l i ty ("MUNIF") to re p ay the outstandingbank bo rrowings of the Co m p a ny and a fe l l ow subsidiary and as part financing of theco n s t ru ction costs of the pro j e cts undert a ken in Pu t ra Ni l a i , Ne g e ri Se m b i l a n .

The net proceeds re ce i ved net of disco u nt are as fo l l ows :

C Ps MUNIF To t a l

Gross proce e d s 31,000,000 50,000,000 81,000,000 Di s co u nt ( 4 9 9 , 6 1 0 ) ( 2 , 9 6 6 , 6 3 8 ) ( 3 , 4 6 6 , 2 4 8 )

Net proce e d s 30,500,390 47,033,362 7 7 , 5 3 3 , 7 5 2


31 De ce m ber 2004



( c ) Medium Te rm No tes and Co m m e rcial Pa pers (Co ntd. )

The MUNIF is available up to seven (7) years from the date of first issuance with the issuanceof CPs with mat u rities ranging from one (1) to twe lve (12) months and Medium Te rm No te s( “M T N”) with mat u rities ranging from one (1) to seven (7) ye a r s.

The MUNIF Prog ramme is subject to the Fa c i l i ty Limit Re d u ction Schedule as fo l l ows :

From the date of Re d u ct i o n Revised Fa c i l i tyfirst issuance Am o u nt Li m i t

(RM'million) ( R M ' m i l l i o n )

Fi fth ye a r 20 6 6Si xth ye a r 34 3 2Seve nth ye a r 32 -

The limit for issuance of CPs is RM56 million or the Revised Fa c i l i ty Limit above, w h i c h ever isl owe r.

The MUNIF is secured by a bank guara ntee issued under the Kafalah Fa c i l ty of up to RM89m i l l i o n . The Kafalah Fa c i l i ty is secured against land held for pro pe rty deve l o p m e nt of BBN asdetailed in No te 5 and 9 re s pe ct i ve ly and co rpo rate guara ntee by the Co m p a ny.

C Ps are subject to profits ranging from 2.45% to 3.25% per annum and re p ayable within then ext six (6) mont h s. The Medium Te rm No tes has profits rates and mat u ri ty dates as state dbe l ow:

Ag g re g ate Fa ce Va l u e Profit Rate Mat u ri ty Date

RM20 million 5 . 0 % 31 De ce m ber 2009 RM30 million 5 . 5 % 31 De ce m ber 2010

( d ) Hi re purchase cre d i to r s

G RO U P2004 2 0 0 3

RM R M

Minimum lease pay m e nt sWithin one ye a r 182,100 - Be tween one to five ye a r s 679,542 -

861,642 - Le s s : Fu t u re finance charg e s ( 1 1 9 , 4 9 9 ) -

Pre s e nt value of finance lease liabilities 742,143 -


31 De ce m ber 2004

85Annual Report2004


( d ) Hi re purchase cre d i tors (Co ntd. )

G RO U P2004 2 0 0 3

RM R M

An a lysed as:Due within 12 mont h s 140,113 - Due after 12 mont h s 602,030 -

742,143 -

The hire purchase cre d i tors bear inte rest rate ranging from 2.85% to 3.75%.

2 2 . Revenue And Cost Of Sa l e s

Revenue co m p ri s e :

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Sales of fe rt i l i ze r s 280,952,378 183,886,167 - - Sales of industrial land, h o u s e s

and shoplots 83,396,556 55,733,851 - - Sales of agroc h e m i cal prod u ct s 14,162,409 18,878,951 - - Sales of food, beve rage and

room re nt a l s 20,512,293 18,161,070 - - Ed u cat i o n 28,803,229 26,316,766 - - Dividend inco m e - - 5,300,000 6,000,000 Ot h e r s 24,876,934 27,452,856 - 600,000

452,703,799 330,429,661 5,300,000 6,600,000

Sales of industrial land, houses and shoplots re p re s e nt a pro po rtion of co nt ra ct reve n u ed e te rmined by re fe re n ce to the stage of completion of industrial lands, houses and shoplots sold,net of disco u nt s.


31 De ce m ber 2004


2 2 . Revenue And Cost Of Sales (Co ntd. )

Cost of sales co m p ri s e :

G RO U P2004 2 0 0 3

RM R M

Sales of fe rt i l i ze r s 259,753,744 172,341,861 Sales of industrial land, houses and shoplots 58,389,628 44,398,337 Sales of agroc h e m i cal prod u ct s 16,215,169 16,565,946 Sales of food, beve rage and room re nt a l s 4,715,471 3,631,365 Ot h e r s 13,042,754 12,484,569

352,116,766 249,422,078

2 3 . Profit From Ope rat i o n s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

No te RM RM RM R M

Profit from ope rations afte rc h a rg i n g / ( c re d i t i n g ) :

Di re ctors' re m u n e rat i o n ( a )- Fe e s 270,345 256,440 112,500 121,740 - Em o l u m e nt s 2,661,970 2,498,887 480,990 75,000 - Be n e f i t s - i n - ki n d 91,779 65,100 9,300 - Au d i tors' re m u n e rat i o n- Cu rre nt ye a r 147,200 146,200 20,000 20,000 - Ove rp rovision in

p rior ye a r s ( 1 2 , 0 0 0 ) - ( 2 , 0 0 0 ) - De p re c i ation of pro pe rty,

p l a nt and equipment 3 12,494,173 12,167,728 3,510 - Pro pe rty, p l a nt and

e q u i p m e nt wri t ten off 78,137 127,051 - - ( Wri te back)/allowa n ce

for doubtful debts ( 3 6 9 , 5 2 3 ) 1,252,533 - - Bad debts wri t ten off 1,574,404 - - - Bad debts re cove re d ( 1 5 , 5 0 7 ) - - - Im p a i rm e nt of inve s t m e nt 2,020,445 - 2,020,445 - Re ntal of pre m i s e s 1,825,043 1,549,162 - - Staff co s t s- wa g e s, s a l a ries and

a l l owa n ce s 23,832,725 9,214,915 797,985 - - s t at u to ry co nt ribution to

EPF and social securi ty 2,770,948 2,596,790 108,223 -


31 De ce m ber 2004

87Annual Report2004

2 3 . Profit From Ope rations (Co ntd. )

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

No te RM RM RM R M

Profit from ope rations afte rc h a rg i n g / ( c re d i t i n g ) :

Goodwill amort i s e d 71,498 69,542 - - Wri te down of inve nto ri e s 1,358,335 503,403 - - Roya l ty 553,014 553,014 - - Lease re nt a l 4,171 - 556 - Hi re of plant and machinery 37,862 37,862 - - Un realised fo reign exchange

( g a i n ) / l o s s ( 2 1 , 2 1 3 ) - 12,146 - Dividend inco m e- s u b s i d i a ri e s - - ( 5 , 3 0 0 , 0 0 0 ) ( 6 , 0 0 0 , 0 0 0 )- o t h e r s ( 1 7 3 , 1 8 1 ) - ( 1 7 3 , 1 8 1 ) - Inte rest inco m e- s u b s i d i a ri e s - - ( 1 , 6 7 5 , 3 5 6 ) ( 3 , 4 5 7 , 7 4 3 )- o t h e r s ( 7 6 0 , 2 4 0 ) ( 6 9 6 , 9 8 5 ) ( 7 , 2 1 5 ) - Gain on disposal of pro pe rty,

p l a nt and equipment ( 6 2 , 7 1 6 ) ( 2 8 0 , 9 1 6 ) - - Gain on disposal of a

s u b s i d i a ry ( 2 9 , 8 4 1 ) - - - Gain on disposal of an

a s s oc i ate ( 7 , 3 5 2 , 4 5 6 ) - ( 4 , 3 6 5 , 2 6 5 ) - Re ntal inco m e- s u b s i d i a ri e s - - - ( 6 0 0 , 0 0 0 )- o t h e r s ( 1 , 2 4 2 , 8 9 1 ) ( 1 , 4 1 2 , 9 6 0 ) - -

( a ) Di re cto r s’ re m u n e rat i o n

Exe c u t i ve dire cto r s

Sa l a ries and other e m o l u m e nt s 2,583,470 2,389,887 456,990 40,500

Fe e s 170,845 172,440 25,000 21,740 Be n e f i t s - i n - ki n d 91,779 65,100 9,300 -

2,846,094 2,627,427 491,290 62,240

No n - exe c u t i ve dire cto r sFe e s 99,500 109,000 87,500 100,000 Other emolument s 78,500 84,000 24,000 34,500

178,000 193,000 111,500 134,500

To t a l 3,024,094 2,820,427 602,790 196,740


31 De ce m ber 2004


2 3 . Profit From Ope rations (Co ntd. )

The number of dire ctors of the Co m p a ny whose total re m u n e ration during the financial year fe l lwithin the fo l l owing bands is analysed be l ow:

2004 2 0 0 3RM R M

Exe c u t i ve dire cto r sRM100,001 - RM500,000 3 3RM500,001 - RM1,000,000 2 2

Non exe c u t i ve dire cto r sRM50,000 and be l ow 3 3RM50,001 - RM100,000 1 1

9 9

2 4 . Fi n a n ce Co s t s

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Inte rest ex pe n s e :- Ove rd ra ft 860,732 1,267,840 - - - Te rm loan 8,669,670 8,624,392 5,777,182 6,643,061 - Ba n kers acce p t a n ce 3,500,591 2,654,185 - - - Revo lving credit 2,296,108 2,598,384 - - - Hi re purc h a s e 5,310 - - - - Su b s i d i a ri e s - - 1,582,115 1,886,085 Inte rest on balance of

co n s i d e ration on acquisition of a s u b s i d i a ry 2,666,142 4,505,281 2,666,142 4,505,281

Ot h e r s 112,558 127,900 841 1,025

18,111,111 19,777,982 10,026,280 13,035,452


31 De ce m ber 2004

89Annual Report2004

2 5 . Ta x at i o n

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Ma l aysian income tax 1,506,708 863,889 - - De fe rred taxat i o n 43,314 620,657 - - ( Over)/under provision in

p revious ye a r s- c u rre nt 138,393 3,588,365 - 1,540,383 - d e fe rre d ( 3 7 5 , 8 7 6 ) ( 1 6 , 0 9 2 ) - -

1,312,539 5,056,819 - 1,540,383

Domestic income tax is ca l c u l ated at the Ma l aysian stat u to ry tax rate of 28% (2003: 28%) of thee s t i m ated assessable profit for the ye a r.

A re co n c i l i ation of income tax ex pense applicable to profit/(loss) be fo re taxation at the stat u to ryi n come tax rate to income tax ex pense at the effe ct i ve income tax rate of the Group and of theCo m p a ny is as fo l l ows :

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Profit/(loss) be fo re taxat i o n 9,792,393 ( 8 , 9 6 9 , 8 3 1 ) ( 1 , 2 7 1 , 1 6 4 ) ( 3 , 5 3 1 , 2 3 8 )

Ta x ation at Ma l aysian stat u to rytax rate of 28% (2003: 2 8 % ) 2,741,870 ( 2 , 5 2 1 , 9 6 2 ) ( 3 5 5 , 9 2 6 ) ( 9 8 8 , 7 4 7 )

Ta x ation at Ma l aysian stat u to rytax rate of 20% ( 1 3 7 , 5 1 6 ) 7,928 - -

In come not subject to tax ( 2 , 0 3 2 , 0 9 7 ) 39,397 ( 1 , 2 2 2 , 2 7 4 ) - Ex penses not deductible fo r

tax purpo s e s 2,725,771 3,473,639 1,364,878 992,828 Ut i l i s ation of prev i o u s ly

u n re cognised tax losses ( 4 , 5 4 1 , 8 3 0 ) ( 8 1 1 , 9 6 8 ) - - Ut i l i s ation of prev i o u s ly

u n re cognised unabsorbe dcapital allowa n ce s ( 8 4 , 6 1 3 ) ( 2 4 , 1 9 0 ) - ( 4 , 0 8 1 )

De fe rred tax assets prev i o u s lynot re cog n i s e d, n ow re cog n i s e d - ( 1 4 , 5 9 2 ) - -

De fe rred tax assets not re cognised d u ring the ye a r 2,878,437 1,336,294 213,322 -

Un d e r / ( over) provision in p rior ye a r s

- d e fe rred taxat i o n ( 3 7 5 , 8 7 6 ) ( 1 6 , 0 9 2 ) - - - c u rre nt taxat i o n 138,393 3,588,365 - 1 , 5 4 0 , 3 8 3

Tax ex pense for the ye a r 1,312,539 5,056,819 - 1 , 5 4 0 , 3 8 3


31 De ce m ber 2004


2 6 . Net Pro f i t / ( Loss) Per Sh a re

( a ) Ba s i c

The ca l c u l ation of net profit/(loss) per share is based on the co n s o l i d ated profit/(loss) afte rt a x ation and minori ty inte rest of RM7,262,490 [2003: (RM12,078,001)] and the number ofo rd i n a ry shares in issue during the year of 114,035,500 (2003: 1 1 4 , 0 3 5 , 5 0 0 ) .

( b ) Di l u te d

For the curre nt ye a r, the outstanding ESOS have been excluded from the co m p u t ation off u l ly diluted profit per share as their co nversion to ord i n a ry shares would be ant i - d i l u t i ve inn at u re. Ac co rd i n g ly, the basic and fully diluted profit per share are the same.

2 7 . Di v i d e n d s

Net Dividends pe rAm o u nt Ord i n a ry Sh a re

2004 2003 2004 2 0 0 3RM RM RM R M

3% less 28% taxation on 114,035,500 ord i n a ry share s 2,463,167 2,463,167 2.16 2.16

2 8 . Si g n i f i ca nt Re l ated Pa rty Tra n s a ct i o n s

G RO U PTra n s a ction va l u e Outstanding balance

2004 2003 2004 2 0 0 3RM RM RM R M

Re ntal paid to a co m p a ny in which ce rtain dire ctors havefinancial inte re s t s

- G . O. Co n s t ru ction Sdn. Bh d. 135,448 135,446 - -

Sales of fe rt i l i zers to a s u b s t a ntial shareholder of PK Re s o u rces Be rh a d

- F E L D A ( 1 8 , 3 8 2 , 2 6 1 ) ( 1 1 , 2 2 3 , 1 4 0 ) 1,018,655 594,172

The dire ctors of the Co m p a ny are of the opinion that the above tra n s a ctions we re in the norm a lcourse of business and had been established under te rms mutually agreed be tween theco m p a n i e s.


31 De ce m ber 2004

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2 8 . Si g n i f i ca nt Re l ated Pa rty Tra n s a ctions (Co ntd. )

CO M PA N Y2004 2 0 0 3

RM R M

Tra n s fer of long leasehold land and buildings to a subsidiary- PK Fe rt i l i zers Sdn. Bh d. - 6,153,309 Ma n a g e m e nt fees charged to subsidiari e s 1,262,460 - Inte rest income from subsidiari e s ( 1 , 6 7 5 , 3 5 6 ) ( 3 , 4 5 7 , 7 4 3 )Re ntal income from a subsidiary - ( 6 0 0 , 0 0 0 )Inte rest charged by subsidiari e s 1,582,115 1,886,085

The dire ctors of the Co m p a ny are of the opinion that the above tra n s a ctions we re in the norm a lcourse of business and had been established under te rms mutually agreed be tween theco m p a n i e s.

2 9 . Co nt i n g e nt Liabilities (Un s e c u re d )

G RO U P CO M PA N Y2004 2003 2004 2 0 0 3

RM RM RM R M

Co rpo rate guara ntee for facilitiesg ra nted to subsidiaries - - 274,850,000 123,950,000

Bank guara ntee issued in favo u rof third part i e s 1,398,940 2,576,626 - -

1,398,940 2,576,626 274,850,000 123,950,000

3 0 . Capital Co m m i t m e nt s

G RO U P2004 2 0 0 3

RM R M

Ap p roved and co nt ra cted fo r 180,000 - Ap p roved and not co nt ra cted fo r 2,145,000 1,600,000

2,325,000 1,600,000


31 De ce m ber 2004



31 De ce m ber 2004

93Annual Report2004


31 De ce m ber 2004



31 De ce m ber 2004

95Annual Report2004

3 2 . Si g n i f i ca nt Eve nts Du ring The Year And Su b s e q u e nt To The Ba l a n ce Sheet Date

On 24 Ju ly 2003, the Co m p a ny ente red into a Sale and Pu rchase Ag re e m e nt with THG for thed i s posal of 3,720,000 ord i n a ry shares of RM1.00 each re p re s e nting the Co m p a ny's ent i res h a reholding in As i a p rise Bi o tech Sdn. Bh d. ( fo rm e rly kn own as As i a p rise Sdn. Bh d.) for a to t a lco n s i d e ration of RM12,699,944. The total co n s i d e ration was satisfied 50% in cash and 50% in newTHG share s. The disposal was co m p l e ted on 11 May 2004.

On 26 Fe b ru a ry 2004, He a l t h com Sdn. Bh d. , a subsidiary of the Co m p a ny, a c q u i red 100% of theissued and paid-up capital of He a l t h com Ph a rma Sdn. Bh d. co m p rising 2 ord i n a ry shares ofRM1.00 each for a cash co n s i d e ration of RM2.00. On 7 Se p te m ber 2004, being part sat i s f a ction ofthe purchase pri ce of 2 units of 4 sto rey shop office s, He a l t h com Ph a rma Sdn. Bh d. a l l o ted 839,998o rd i n a ry shares of RM1.00 each to He a l t h com Sdn. Bh d. On that same date, the amount owing toPh a rmanage Sdn. Bh d. was capitalised by alloting 360,000 ord i n a ry shares of RM1.00 each inHe a l t h com Ph a rma Sdn. Bh d. to Ph a rmanage Sdn. Bh d. Fo l l owing the allotment s, He a l t h com Sdn.Bh d. , holds 70% inte rests in He a l t h com Ph a rma Sdn. Bh d.

On 10 Ma rch 2004, B B N , a subsidiary of the Co m p a ny, d i s posed of its 100% inte rest in the issuedand paid-up capital of Nostalgia Asal Sdn. Bh d. co m p rising 1,000 ord i n a ry shares of RM1.00 eachfor a cash co n s i d e ration of RM10,000.

On 25 May 2004, the Co m p a ny acquired 100% of the issued and paid-up capital of La n ce t Bio Sdn.Bh d. co m p rising of 2 ord i n a ry shares of RM1.00 each for a cash co n s i d e ration of RM2.00.

On 20 Se p te m ber 2004, PK Pro pe rties Sdn Bhd ("PKP"), a wholly- owned subsidiary of the Co m p a ny,a c q u i red 2 ord i n a ry shares of RM1.00 each in PK Trade & Se rv i ces ("PKTS") (fo rm e rly kn own as Ab l eMagnitude Sdn. Bh d.) and subscri bed for an additional 4 ord i n a ry shares of RM1.00 each in PKTSto increase the inte rest of PKP in PKTS to 60%.

On 30 Nove m ber 2004, the Co m p a ny ente red into a conditional share sale agre e m e nt ("SSA") withPristine Ac res Sdn. Bh d. to dispose of 30,000,000 ord i n a ry shares of RM1.00 each in PKF,re p re s e nting 100% equity inte rest in PKF ("Pro posed Di s posal") for a cash co n s i d e ration ofR M 3 1 , 3 0 0 , 0 0 0 . As at 31 De ce m ber 2004, the Pro posed Di s posal has yet to be co m p l e te d.

On 5 Ja n u a ry 2005, the Co m p a ny announced that its subsidiary, BBN had succe s s f u l ly co m p l e te dits initial issuance of CPs and pri m a ry notes for MTN pursuant to the pro posed issue, o f fer fo rs u b s c ri p t i o n , or purchase of, or inv i t ation to subscri be for or purchase of, a 7-year Ba n kGu a ra nteed MUNIF of up to RM86.0 million.

On 23 Fe b ru a ry 2005, BBN ente red into a tra n s a ction with Aka rmas Sdn. Bh d. , a re l ated party of theCo m p a ny for the sale of a piece of co m m e rcial land in Pu t ra Nilai to Aka rmas Sdn. Bh d. for a to t a lcash co n s i d e ration of RM4,399,977.


31 De ce m ber 2004


3 3 . Financial In s t ru m e nt s

( a ) Financial Risk Ma n a g e m e nt Ob j e ct i ves and Po l i c i e s

The Gro u p’s financial risk management po l i cy seeks to ensure that adequate financialre s o u rces are available for the Gro u p’s businesses whilst managing its inte rest rate, l i q u i d i tyand credit ri s k s. The Group ope rates within clearly defined guidelines that are set by theBo a rd and the Gro u p’s po l i cy is to not engage in spe c u l at i ve tra n s a ct i o n s.

( b ) Inte rest Rate Ri s k

The Group's pri m a ry inte rest rate risk re l ates to inte re s t - be a ring debt, as the Group had nos u b s t a ntial long-te rm inte re s t - be a ring assets as at 31 De ce m ber 2003. The inve s t m e nts infinancial assets are mainly short te rm in nat u re and they are not held for spe c u l at i vep u rposes but have been mostly placed in fixed deposits which yield be t ter re t u rns than ca s hat bank.

The info rm ation on mat u ri ty days and effe ct i ve inte rest rates of financial assets and liabilitiesa re disclosed in their re s pe ct i ve note s.

( c ) Li q u i d i ty Ri s k

The Group endeavours to manage its ope rating cash flows and the ava i l a b i l i ty of funding ino rder to meet its re f i n a n c i n g, re p ay m e nt and funding needs. As part of its ove rall liquiditym a n a g e m e nt, the Group maintains cash or cash co nve rtible inve s t m e nts to meet its wo rki n gcapital re q u i re m e nt s. In addition, the Group stri ves to maintain an adequate amount ofb a n king facilities.

( d ) Credit Ri s k

Credit ri s k , or the risk of co u nte rp a rties defaulting, is co nt rolled by the application of cre d i ta p p rova l s, limits and monito ring proce d u re s. Credit risks are minimised and monito red bylimiting the Gro u p’s assoc i ations to business partners with cre d i two r t h i n e s s. Tra d ere ce i vables are monito red on an ongoing basis via the Group's management re po rt i n gp roce d u re s. The Group's ex po s u re to co n ce nt ration of credit risk is disclosed in No te 12.

( e ) Fair Va l u e s

The ca rrying amounts of financial assets and liabilities of the Group as at 31 De ce m ber 2004a p p rox i m ate their fair values except for amounts due fro m / to assoc i ates and subsidiari e sw h e re it is not pra ct i cal to estimate the fair values due pri n c i p a l ly to a lack of fixe dre p ay m e nt te rm s.

A n a l y s i s O f S h a r e h o l d i n g s

As At 18 Ap ril 2005

97Annual Report2004

Di re ctors Sh a re h o l d i n g s( In acco rd a n ce with the re g i s ter maintained under Se ction 134 of the Companies Act, 1 9 6 5 )

Name of Di re cto r s Di re ct % In d i re ct %

Tan Sri Dato’ Dr Gan Kong Se n g 1,821,000 1 1 . 6 0 35,750,434 3 3 1 . 3 5Dato’ Gan Kong Hi o k 1,641,500 2 1 . 4 4 16,805,382 4 1 4 . 7 4Gan Eng Ho n g 9 0 0 , 0 0 0 0 . 7 9 35,029,934 6 3 0 . 7 2Datuk Alladin Ha s h i m 1 3 , 0 0 0 0 . 0 1 93,000 5 0 . 0 8Ahmad Bin Mohd Al i - - - -YM Te n g ku Dato’ Shamsul Ba h ri n - - - -Ooi Soon Ki a m - - - -Chor Eng Ch oo n - - - -Dato’ Pro f. Zainuddin Bin Mu h a m m a d - - - -

No tes to inte rest in share s :

1 . Pa rt ly held through Mayban Nominees ( Te m p atan) Sdn Bh d.

2 . Sh a res held through Al l i a n ce Group Nominees ( Te m p atan) Sdn Bh d, Un i ted Overseas Nominees ( Te m p at a n )Sdn Bhd and So u t h e rn Inve s t m e nt Bank Be rh a d.

3 . In d i re ct shareholding includes the shares held by Ragan Jaya Sdn Bh d, Aka rmas Sdn Bh d, his bro t h e r, Dato’Gan Kong Hiok and his childre n , Mr Gan Eng Hong and Ms Gan Fei Fe n .

4 . In d i re ct shareholding includes the shares held by Pristine Ac res Sdn Bh d, Es p rijuta Sdn Bhd and his bro t h e r,Tan Sri Dato’ Dr Gan Kong Se n g.

5 . Deemed inte re s ted through his spo u s e, Datin Hamidah bte Ib rahim shareholding in PK Re s o u rces Be rh a d.

6 . In d i re ct shareholding includes the shares held by Ragan Jaya Sdn Bh d, Aka rmas Sdn Bh d, his fat h e r, Tan SriDato’ Dr Gan Kong Seng and his siste r, Ms Gan Fei Fe n .

A n a l y s i s O f S h a r e h o l d i n g s ( C o n t d . )



Di re ctors Wa rra ntholdings - Wa rra nt A


Tan Sri Dato’ Dr Gan Kong Se n g - - - -Dato’ Gan Kong Hi o k - - - -Gan Eng Ho n g - - - -Datuk Alladin Ha s h i m - - 3 5 , 0 0 0 0 . 0 3Ahmad Bin Mohd Al i - - - -YM Te n g ku Dato’ Shamsul Ba h ri n - - - -Ooi Soon Ki a m - - - -Chor Eng Ch oo n - - - -Dato’ Pro f. Zainuddin Bin Mu h a m m a d - - - -

Di re ctors Wa rra ntholdings - Wa rra nt B


Tan Sri Dato’ Dr Gan Kong Se n g 6 2 0 , 0 0 0 1 . 6 9 1 1 , 4 1 1 , 9 7 8 3 1 . 1 4Dato’ Gan Kong Hi o k 4 1 7 , 0 0 0 1 . 1 4 8 , 3 7 7 , 2 9 4 2 2 . 8 6Gan Eng Ho n g 3 0 0 , 0 0 0 0 . 8 2 1 1 , 3 1 4 , 9 7 8 3 0 . 8 8Datuk Alladin Ha s h i m 6 , 0 0 0 0 . 0 2 - -Ahmad Bin Mohd Al i - - - -YM Te n g ku Dato’ Shamsul Ba h ri n - - - -Ooi Soon Ki a m - - - -Chor Eng Ch oo n - - - -Dato’ Pro f. Zainuddin Bin Mu h a m m a d - - - -



99Annual Report2004

Sh a reholders In fo rm at i o n

Ty pes of share s : Ord i n a ry shares of RM1.00 eachVotings ri g ht s : One vo te per shareholder on a show of hands

One vo te per ord i n a ry share on a po l lNo. of share h o l d e r s : 2 , 6 5 4

Di s t ribution Of Sh a re h o l d i n g s

No. o f To t a l % ofSi ze of holdings h o l d e r s h o l d i n g s Sh a re s

1 - 999 141 59,733 0 . 0 51 , 0 0 0 - 10,000 2,219 6,159,339 5 . 4 01 0 , 0 0 1 - 100,000 249 6,829,772 5 . 9 91 0 0 , 0 0 1 - 5,701,774 39 33,628,285 2 9 . 4 95 , 7 0 1 , 7 7 5 - a bove 6 67,358,371 5 9 . 0 7

To t a l 2,654 114,035,500 1 0 0 . 0 0

List Of Top 30 Sh a re h o l d e r s

Na m e No. of Sh a re s %

1 Ragan Jaya Sdn Bh d 26,034,934 2 2 . 8 32 Perbadanan Kemajuan Ne g e ri , Ne g e ri Se m b i l a n 11,600,000 1 0 . 1 73 Mi n i s ter of Fi n a n ce 10,070,000 8 . 8 3

Qu a l i f i e r : Akaun Jaminan Pinjaman Ke rajaan Pe r s e ku t u a n4 Lembaga Kemajuan Tanah Pe r s e kutuan (FELDA) 7,292,437 6 . 3 95 Aka rmas Sdn Bh d 6,361,000 5.58 6 Pristine Ac res Sdn Bhd 6,000,000 5 . 2 67 Es p rijuta Sdn. Bh d. 4,593,294 4 . 0 38 Es p rijuta Sdn. Bh d. 3,533,588 3.10 9 Im a p ro Sdn Bh d 3,000,000 2 . 6 31 0 Low Mun Ch o n g 2,750,000 2 . 4 11 1 Em p l oyees Prov i d e nt Fund Bo a rd 1,902,900 1 . 6 71 2 Al l i a n ce Group Nominees ( Te m p atan) Sdn Bh d 1,900,000 1 . 6 7

Qu a l i f i e r : Pledged Se c u rities Ac co u nt for Dato' Gan Kong Hi o k1 3 Pe rm odalan Nasional Be rh a d 1,772,000 1 . 5 51 4 Tan Sri Dato' Dr Gan Kong Se n g 1,521,000 1 . 3 31 5 Chan Kam Se n g 1,455,000 1 . 2 81 6 Ten Ah Ma n 1,336,000 1.17 1 7 Dato' Lee Pit Ch e rn 1,278,000 1 . 1 21 8 Me nte ri Besar Ne g e ri Sembilan In co rpo rat i o n 961,000 0 . 8 41 9 Gan Eng Ho n g 900,000 0 . 7 92 0 Gan Fei Fe n 813,000 0 . 7 1





2 1 Pe rtubuhan Peladang Ke b a n g s a a n 619,437 0 . 5 42 2 Bu kit Maju Deve l o p m e nts Bh d 600,000 0 . 5 32 3 Ma ry Foo @ Foo Liang Ch e n g 348,166 0 . 3 12 4 So u t h e rn Inve s t m e nt Bank Be rh a d 340,000 0.30

Qu a l i f i e r : Em p l oyee's Prov i d e nt Fu n d2 5 Amanah Raya Nominees ( Te m p atan) Sdn Bh d 310,000 0 . 2 7

Qu a l i f i e r : Amanah Ha rta Tanah PNB2 6 Ng Kim Te n g 300,000 0 . 2 62 7 Ng Kim Li n g 300,000 0 . 2 62 8 Mayban Nominees ( Te m p atan) Sdn Bh d 300,000 0 . 2 6

Qu a l i f i e r : Pledged Se c u rities Ac co u nt for Tan Sri Dato' Dr Gan Kong Se n g

2 9 Si ew Ye ow Foo k 264,000 0 . 2 33 0 Un i ted Overseas Nominees ( Te m p atan) Sdn Bh d 259,000 0 . 2 3

Qu a l i f i e r : Pledged Se c u rities Ac co u nt for Dato’ Gan Kong Hi o k

To t a l 98,714,756 86.56

Su b s t a ntial Sh a reholders Li s t

Di re ct Ho l d i n g s In d i re ct Ho l d i n g sNo. o f No. o f

Na m e Sh a re s % Sh a re s %

1 Ragan Jaya Sdn Bh d 26,034,934 22.83 - - 2 Perbadanan Kemajuan Ne g e ri , 21,670,000 19.00 - -

Ne g e ri Sembilan (PKNNS)3 Es p rijuta Sdn Bh d 8,126,882 7.13 - - 4 F E L D A 7,292,437 6.39 - - 5 Pristine Ac res Sdn Bh d 6,857,500 6.01 - - 6 Aka rmas Sdn Bh d 6,361,000 5.58 - - 7 Tan Sri Dato' Dr Gan Kong Se n g 1,821,000 1.60 35,750,434 31.35 8 Dato' Gan Kong Hi o k 1,641,500 1.44 16,805,382 14.74 9 Gan Eng Ho n g 900,000 0.79 35,029,934 30.72 1 0 Gan Fei Fe n 813,000 0.71 35,116,934 30.79 1 1 Si ew Ye ow Foo k 325,000 0.28 8,475,048 7.43 1 2 Lo ke Keng Hu n g - - 8,223,882 7.21

To t a l 81,843,253 71.77



101Annual Report2004

Ty pes of securi t i e s : Wa rra nt AVotings ri g ht s : One vo te per wa rra ntholder on a show of hands

One vo te per wa rra nt on a po l lNo. of wa rra nt h o l d e r s : 5 8 8

Di s t ribution Of Wa rra ntholdings A

Si ze of holdings No. of holders Total holdings % of Sh a re s

1 - 999 143 69,950 2 . 9 81 , 0 0 0 - 10,000 407 1,184,200 5 0 . 4 21 0 , 0 0 1 - 100,000 37 792,500 3 3 . 7 41 0 0 , 0 0 1 - 117,431 - - -1 1 7 , 4 3 2 - a bove 1 302,000 1 2 . 8 6

To t a l 588 2,348,650 1 0 0 . 0 0

List Of Top 30 Wa rra ntholders A


1 Me nte ri Besar Ne g e ri Sembilan In co rpo rat i o n 302,000 1 2 . 8 62 Wong Ah Yew @ Ah Yew 89,000 3 . 7 93 Tan Whang Kwe e 56,000 2 . 3 84 TA Nominees ( Te m p atan) Sdn Bh d 46,000 1 . 9 6

Qu a l i f i e r : Pledged Se c u rities Ac co u nt For Ching Yeek Mi n g5 Lau Ser Ch a i 31,000 1 . 3 26 Affin Nominees ( Te m p atan) Sdn Bh d 27,000 1 . 1 5

Qu a l i f i e r : Pledged Se c u rities Ac co u nt For Tan Cheng Su y7 Song Kim Hwa 25,000 1 . 0 68 Mayban Nominees ( Te m p atan) Sdn Bhd 24,500 1 . 0 4

Qu a l i f i e r : Pledged Se c u rities Ac co u nt For Kee Kum Wa h9 Low Ah Th o n g 23,000 0 . 9 81 0 Luo Bi n g ka i 23,000 0 . 9 81 1 Lee Moey Ch i n 22,000 0.94 1 2 RHB Capital Nominees ( Te m p atan) Sdn Bh d 21,000 0 . 8 9

Qu a l i f i e r : Pledged Se c u rities Ac co u nt For Gan Chin Ya p1 3 Tee Bee Ch oo 21,000 0 . 8 91 4 Chua Sim Ho n g 20,000 0 . 8 51 5 Hoo Kai Ch oon @ Hoo Thau Hu at 20,000 0 . 8 51 6 Hamidah Bi nti Ib ra h i m 19,000 0 . 8 11 7 Lim Kim Na m 18,000 0 . 7 71 8 Ng Soh En g 18,000 0 . 7 71 9 Yow Poh Ch e e 17,000 0 . 7 22 0 Moh Tuang Moo i 17,000 0 . 7 22 1 Moh Toong Lu a n 16,000 0 . 6 82 2 Tee Bee Hoc k 16,000 0 . 6 82 3 Phang Yok Ko m 16,000 0 . 6 82 4 Hamidah Bi nti Ib ra h i m 16,000 0 . 6 82 5 Lim Kim Chin @ Lim Su Ch e n g 16,000 0 . 6 82 6 Foo Ah Ch u n 15,000 0 . 6 42 7 Chong Yong Kwe e 15,000 0 . 6 42 8 Krishnan Moo rt hy A/L Ma n i c ka m 15,000 0 . 6 42 9 Ooi Choi Ki at 15,000 0 . 6 43 0 Lew Yo ke Ku e n 15,000 0 . 6 4

To t a l 994,500 4 2 . 3 4




Ty pes of securi t i e s : Wa rra nt BVotings ri g ht s : One vo te per wa rra ntholder on a show of hands

One vo te per wa rra nt on a po l lNo. of wa rra nt h o l d e r s : 7 2 4

Di s t ribution of Wa rra ntholdings B

Si ze of holdings No. of holders Total holdings % of Sh a re s

1 - 999 75 37,000 0 . 1 01 , 0 0 0 - 10,000 526 1,869,055 5 . 1 01 0 , 0 0 1 - 100,000 105 2,834,199 7 . 7 31 0 0 , 0 0 1 - 1,832,291 12 4,482,512 1 2 . 2 31 , 8 3 2 , 2 9 2 - a bove 6 27,423,084 7 4 . 8 3

To t a l 724 36,645,850 1 0 0 . 0 0

List of Top 30 Wa rra ntholders B


1 Ragan Jaya Sdn Bh d 10,444,978 2 8 . 5 02 Es p rijuta Sdn Bh d 5,757,294 1 5 . 7 13 Perbadanan Kemajuan Ne g e ri , Ne g e ri Se m b i l a n 3,884,000 1 0 . 6 04 Mi n i s ter of Fi n a n ce 3,000,000 8 . 1 9

Qu a l i f i e r : Akaun Jaminan Pinjaman Ke rajaan Pe r s e ku t u a n5 Lembaga Kemajuan Tanah Pe r s e kutuan (FELDA) 2,336,812 6 . 3 86 Al l i a n ce Group Nominees ( Te m p atan) Sdn Bh d 2,000,000 5 . 4 6

Qu a l i f i e r : Pledged Se c u rities Ac co u nt For Dato' Gan Kong Hi o k

7 Pe rtubuhan Peladang Ke b a n g s a a n 1,215,812 3 . 3 28 Dato' Lee Pit Ch e rn 748,000 2 . 0 49 Tan Sri Dato' Dr Gan Kong Se n g 620,000 1 . 6 91 0 Dato' Gan Kong Hi o k 417,000 1 . 1 41 1 Gan Eng Ho n g 300,000 0 . 8 21 2 Gan Fei Fe n 250,000 0 . 6 81 3 Ten Ah Ma n 236,000 0 . 6 41 4 Ra j e n d ran A/L Ka ru p p i a h 171,000 0 . 4 71 5 OSK Nominees ( Te m p atan) Sdn Bh d 142,700 0 . 3 9

Qualifier : Pledged Se c u rities Ac co u nts For Hee Yuen Sa n g1 6 Lim Kee Si ku 140,000 0 . 3 81 7 Kenanga Nominees (Asing) Sdn Bh d 134,000 0 . 3 7

Qu a l i f i e r : Ri ca rdo Co m p a ny Ltd1 8 Kh oo Kay Le o n g 108,000 0 . 2 91 9 Ng Kim Te n g 100,000 0 . 2 72 0 Ng Kim Li n g 100,000 0 . 2 72 1 Wong Ah Yew @ Ah Yew 78,000 0 . 2 12 2 HLB Nominees ( Te m p atan) Sdn Bhd 75,400 0 . 2 1

Qualifier : Pledged Se c u rities Ac co u nts For Chua Seh Li a n g2 3 Si ew Ye ow Foo k 67,000 0 . 1 82 4 Daniel Koh Seng Yo n g 65,000 0 . 1 82 5 Tan Ah Bha @ Tan Ah Ba h 64,100 0 . 1 72 6 TCL Nominee ( Te m p atan) Sdn Bh d 60,000 0 . 1 6

Qu a l i f i e r : Pledged Se c u rities Ac co u nt For Tai Yueh Ngoh2 7 H LG Nominee ( Te m p atan) Sdn Bh d 60,000 0.16

Qu a l i f i e r : H LG Credit Sdn Bhd For Ten Ah Ma n2 8 Yong Kee Ch o n g 60,000 0 . 1 62 9 Ong Yo ke Te c k 55,000 0 . 1 53 0 Wi l f red Koh Seng Ha n 55,000 0 . 1 5

To t a l 32,745,096 8 9 . 3 6

L i s t O f P r o p e r t i e s

Owned By The Gro u p


Ap p rox . Net book Ex p i ry Un i t / age of value as at

De s c ri p t i o n / Locat i o n Te n u re of Le a s e Ac re a g e b u i l d i n g 3 1 . 1 2 . 0 4

1 . Land & Bu i l d i n g Le a s e h o l d Ye a r 2 0 . 0 0 1 5 9 , 7 8 1 , 3 0 6( Wa re h o u s i n g / f a cto ry ) 2 0 4 4 a c re sPTD 65604Mu kim Pl e nto n g81700 Johor Ba h ruLo t. 2 9 3

2 . Land & Bu i l d i n g Le a s e h o l d Ye a r 5 . 7 0 2 1 5 , 7 3 4 , 2 6 3( Wa re h o u s i n g / f a cto ry ) 2 0 5 0 a c re sPTD 9035Mu kim Pl e nto n g81700 Johor Ba h ruLo t. 1 1 7

3 . In d u s t rial La n d Le a s e h o l d Ye a r 4 7 . 3 7 - 2 , 1 8 8 , 0 9 3Mu kim Labu and Se t u l 2 0 9 2 a c re sDi s t ri ct of Se re m b a n

4 . Mi xed deve l o p m e nt of co m m e rcial and re s i d e ntial inMu kim Labu and Se t u lDi s t ri ct of Se re m b a n

a ) For deve l o p m e nt and Fre e h o l d - 1 , 6 0 1 . 4 7 - 1 3 5 , 1 5 4 , 1 2 2f u t u re sale a c re s

5 . Land & Building (Ho te l ) Le a s e h o l d Ye a r 1 4 . 7 6 1 2 4 1 , 1 8 2 , 1 1 9Lot 12383 2 0 9 2 a c re sJalan Penghulu Ca nt i k70100 Se re m b a nNe g e ri Se m b i l a n

6 . Condominium Le a s e h o l d Ye a r 1 7 1 0 2 , 1 7 0 , 1 1 2Deve l o p m e nt 2 0 9 2 u n i t sPT 4591Jalan Penghulu Ca nt i k70100 Se re m b a nNe g e ri Se m b i l a n

L i s t O f P r o p e r t i e s ( C o n t d . )





7 . Golf Course land Fre e h o l d - 2 4 0 . 7 8 4 7 , 2 3 0 , 3 7 6and Cl u b h o u s e a c re sPT 477071800 Bandar Ba ru Ni l a iNe g e ri Se m b i l a n

8 . Building (Ho tel) - - - 8 * 8 , 5 0 3 , 6 5 0PT 7182Jalan BBN 1/2EPu t ra Po i nt Phase 171800 Bandar Ba ru Ni l a iNe g e ri Se m b i l a n

9 . Bu n g a l ow La n d Le a s e h o l d Ye a r 5 . 6 6 - 2 , 2 0 7 , 9 7 5PT 5673 & 5374 2 0 9 5 a c re sJalan Penghulu Ca nt i kTaman Tasik Se re m b a n70100 Se re m b a nNe g e ri Se m b i l a n

1 0 . Qu a rry La n d Le a s e h o l d Ye a r 3 0 - 1 , 8 0 8 , 1 4 3Mu kim La b u 2 0 5 4 3 0 2 , 6 0 0 , 0 0 010th Mi l e a c re sSe remban - KL Hi g h way71907 La b uNe g e ri Se m b i l a n

1 1 . Bu n g a l ow Land Le a s e h o l d Ye a r 1 . 1 2 3 1 , 5 9 2 , 4 1 4& Building H.S (D) 1695 2 0 8 0 a c re sPT 978Mu kim Tra s49000 Ra u bPa h a n g

1 2 . Bu i l d i n g - - 1 7 * 1 , 7 4 4 , 8 7 8PT 10844 u n i tDesa Ce m p a ka71800 Bandar Ba ru Ni l a iNe g e ri Se m b i l a n

L i s t O f P r o p e r t i e s ( C o n t d . )





1 3 . Bu i l d i n g - - 1 7 * 3 , 3 8 2 , 0 9 5PT 6367 u n i tJalan BBN 3/171800 Bandar Ba ru Ni l a iNe g e ri Se m b i l a n

1 4 . Land & Building Le a s e h o l d Ye a r 1 5 1 4 2 , 8 1 4 , 2 2 3( Wa re h o u s i n g / f a cto ry ) 2 0 2 0 a c re sPa j a kan Ngeri 550Lot 1863Mu kim Sungai Ka ra n g25720 Ku a nt a nPa h a n g

1 5 . Land & Building (Co l l e g e ) Fre e h o l d - 1 0 4 . 6 1 7 1 1 3 , 4 7 7 , 4 2 8PT 13106 a c re s71800 Bandar Ba ru Ni l a iNe g e ri Se m b i l a n

1 6 . Bu i l d i n g - - - 7 * 1 , 2 6 6 , 1 8 4PT 7454Jalan BBN 1/1APu t ra Po i nt Phase 171800 Bandar Ba ru Ni l a iNe g e ri Se m b i l a n

1 7 . Land & Building Le a s e h o l d Ye a r 1 3 . 3 5 8 & 2 5 , 2 9 0 , 3 3 2( Wa re h o u s i n g / f a cto ry ) 2 0 5 8 a c re sMDLD 3790 BT 4Jalan Tengah Ni p a h91111 Lahad Dat u

* The net book values of these pro pe rties do not include the value of the pieces of land where they oc c u py.

N o t e s


P r o x y F o r m

I/We(PLEASE USE BLOCK LETTERS)

of

being a member/members of PK RESOURCES BERHAD, hereby appoint

of

to be my proxy/proxies to attend and to vote for me/us on my/our behalf at the Thirty-first Annual General Meeting of the

Company to be held at Nilai Springs Golf & Country Club, Putra Nilai, 71800 Nilai, Negeri Sembilan Darul Khusus, on Tuesday, 21

June 2005 at 10.30 a.m..

My/Our proxy/proxies is/are to vote as indicated below:

Resolutions For Against

1. To receive and adopt the Audited Accounts for the financial year ended 31 December 2004 and the Reports of the Directors and Auditors thereon.

2. To approve payment of a first and final dividend of 3% per RM1.00 ordinary share less 28% tax in respect of the financial year ended 31 December 2004.

3. To re-elect Tan Sri Dato’ Dr Gan Kong Seng who shall retire pursuant to Article 77 of the Company’s Articles of Association.

4. To re-elect Dato ’ Gan Kong Hiok who shall retire pursuant to Article 77 of the Company’s Articles of Association.

5. To re-elect Encik Ahmad Bin Mohd Ali who shall retire pursuant to Article 77 of the Company’s Articles of Association.

6. To re-elect Mr Chor Eng Choon who shall retire pursuant to Article 82 of the Company’s Articles of Association.

7. To re-elect Dato’Prof. Zainuddin Bin Muhammad who shall retire pursuant to Article 82 of the Company’s Articles of Association.

8. To approve payment of directors’ fees.

9. To re-appoint Messrs. Ernst & Young as auditors and authorise the Directors to fix their remuneration.

Special Business10. To authorise the Directors to issue shares under Section 132D, Companies Act, 1965

Please indicate with an “X” in the appropriate spaces where you wish your votes to be cast. In the absence of specificdirections, your proxy will vote or abstain from voting at his discretion.

Date Signature No. of Shares Held

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

[ ] [ ]

No te s

1 . Ap po i nt m e nt Of Proxy

( a ) A Me m ber of the Co m p a ny entitled to at tend and vo te is entitled toa p po i nt one or more proxies to vo te in his ste a d. A proxy need not be am e m ber of the Co m p a ny and the provisions of Se ction 149 (1) of theCompanies Act, 1965 shall not apply to the Co m p a ny.

( b ) The instru m e nt appo i nting a proxy shall be in writing under the handof the appo i nter or his at to rn ey duly authorised in writing or if thea p po i nter is a co rpo rat i o n , either under seal or under the hand of ano f f i cer or at to rn ey duly authori s e d.

( c ) The instru m e nt appo i nting a proxy shall be depo s i ted at the Re g i s te re dOf f i ce at Wisma BBN, PT 7454, Jalan BBN 1/1A, Pu t ra Po i nt Phase 1, Pu t raNi l a i , 71800 Ni l a i , Ne g e ri Sembilan Da rul Khusus not less than 48 hoursbe fo re the time appo i nted for holding the meeting and at anya d j o u rn m e nt there o f.

2 . Ex p l a n ato ry No te On Special Bu s i n e s s :

2 . 1 Au t h o ri ty to Issue Sh a res Pu r s u a nt to Se ction 132D of Companies Act,1 9 6 5

The pro posed Resolution 10, if passed, will give the Di re ctors authori tyto allot and issue new ord i n a ry shares up to an amount not exce e d i n g10% of the issued share capital of the Co m p a ny for such purposes asthe Di re ctors consider would be in the inte rest of the Co m p a ny. Th i sa u t h o ri ty will co m m e n ce from the date of this Annual Ge n e ral Me e t i n gand unless revo ked or va ried by the Co m p a ny at a Ge n e ral Me e t i n g, w i l lex p i re at the next Annual Ge n e ral Me e t i n g.

The Company Secretary

PK RESOURCES BERHAD (17654 P)

Wisma BBNPT 7454, Jalan BBN 1/1A

Putra Point Phase 1Putra Nilai71800 Nilai

Negeri Sembilan Darul Khusus

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