ublic trustee - amanahraya · amanah raya berhad 2006 annual report p.3 corporate information...

annual report

Public TRustee

2006

kain songketkain songket

rationale

True to its tradition, the Songket commands value

and stature in Malaysian society. It is the symbol of

beauty, decorum and formality. The process involved

in the weaving of Songket demands perseverance,

discipline and commitment. Much like the business of

the AmanahRaya Group of Companies which requires

an intricate weave of interpersonal relationships and

professional stewardship of capital and assets. True

to the spirit of the Songket which combines a

foundation and network of value, AmanahRaya also

aspires to create lasting products of lasting value for

our customers and shareholders.

Each piece of Songket is exclusively designed with

intricate geometric patterns. This is synonymous with

the AmanahRaya approach to designing products

for its valuable customers, as it believes that each

individual’s needs are exclusive and highly personal.

Thus, it is only fitting that the Songket was chosen to

grace the cover for the AmanahRaya Annual Report

2006.

contentcontent

vision & mission statementvision & mission statement

notice of the twelfth annual general meetingnotice of the twelfth annual general meeting

milestonesmilestones

board of directorsboard of directors

chairman’s statementchairman’s statement

managing director’s reviewmanaging director’s review

group financial highlightsgroup financial highlights

corporate structurecorporate structure

AmanahRaya Group - three year highlightsAmanahRaya Group - three year highlights

management teammanagement team

audit committee reportaudit committee report

statement of corporate governancestatement of corporate governance

AmanahRaya’s branch networkAmanahRaya’s branch network

financial statementsfinancial statements

22

44

6 – 76 – 7

8 – 118 – 11

12 – 1512 – 15

16 – 2216 – 22

2424

2323

2525

26 – 2726 – 27

28 – 3028 – 30

31 – 3631 – 36

92 – 9392 – 93

37 – 9137 – 91

To ensure efficiency in providing trustee and legacy services.

To ensure the highest quality of services to our customers.

To provide a cordial working environment for efficient, knowledgeable, motivated and competent employees to discharge their responsibilities professionally.

To develop new products and services to cater to the needs of our customers.

To strive towards strengthening AmanahRaya’s capabilities and enhancing its image so as to maintain its position as the market leader in the trust administration and legacy management services.

p.2 Amanah Raya Berhad 2006 annual report

vision & mission statement

To be an institution of excellence in providing professional services in trust administration and legacy management, whilst meeting customers’ satisfaction with a sense of social responsibility.

vision

mission statement

p.3Amanah Raya Berhad 2006 annual report

corporate information

Chairman

Independent Non-Executive Chairman

Y.Bhg. Dato' Haji Dusuki Ahmad

board of directors

Managing Director

Y.Bhg. Dato’ Ahmad Rodzi Pawanteh

Non-IndependentNon-Executive Director

Tuan Haji Ab Gani Haron

Independent Non-Executive Director

Y.Bhg. Datin Aminah Pit Abd Raman


Y.Bhg. Datuk Mohd Hashim Hassan


Encik Shamsuddin Haji Tahir

Non-Independent Non-Executive Director

Puan Azailiza Mohd Ahad(Appointed w.e.f 30.6.2006)


Puan Sharifah Adlina Syed Abdullah(Appointed w.e.f 1.8.2006)

REGISTERED OFFICE

Amanah Raya BerhadTingkat 15, Wisma AmanahRaya

No. 2, Jalan Ampang50450 Kuala Lumpur, Malaysia

Telephone No : 603-2055 7388Fax No : 603-2078 8187

Website : www.arb.com.my

PRINCIPAL BANKER

Malayan Banking BerhadGround Floor, Wisma PKNSJalan Raja Laut50350 Kuala Lumpur


Y.Bhg. Dato’ Abdullah Sani Ab Hamid (Appointed w.e.f 8.2.2007)

NOTICE IS HEREBY GIVEN that the Twelfth Annual General Meeting of AMANAH RAYA BERHAD will be held at the Boardroom, 15th Floor, Wisma AmanahRaya, No 2, Jalan Ampang, 50450 Kuala Lumpur on Friday, 29 June 2007 at 10.00 a.m or any adjournment thereof to transact the following business :

To receive and adopt the Statutory Financial Statements of the Company and the Group for the financial year ended 31 December 2006 together with the Reports of the Directors and Auditors thereon. (Resolution 1)

To approve the declaration of a final tax exempt dividend of 20% for the financial year ended 31 December 2006.(Resolution 2)

To approve the payment of Directors' fees and remuneration for the financial year ended 31 December 2006.(Resolution 3)

To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company until the conclusion of the next Annual General Meeting and to authorise the Board of Directors to fix their remuneration.(Resolution 4)

To transact any other ordinary business of which due notice shall have been given in accordance with the Companies Act, 1965.

notice of the twelfth (12th) annual general meeting

notice of the twelfth (12th) annual general meeting

A member of the Company entitled to attend and vote at this Meeting is entitled to appoint a proxy to attend and vote in his stead.

A proxy may but need not be a member of the Company, an advocate, an approved Company auditor or a person approved by the Registrar of Company.

The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorised in writing or, if the appointer is a corporation, either under its common seal or under the hand of an officer or attorney duly authorised.

The instrument appointing a proxy must be deposited at the registered office of the Company not less than 48 hours before the time appointed for holding the Meeting.

Note:

1.

2.

3.

4.

BY ORDER OF THE BOARD

ZAINUL ABIDIN HAJI AHMADLS8854Company SecretaryDate: 8 June 2007


Songket is a handwoven textile using a traditional

loom called 'keh'. The use of gold threads to make

up beautiful motifs and patterns involves the

process of 'menyungkit', a Malay word in which the

warp threads are lifted to insert the gold colored

thread to make up the motifs. The weaving is

painstaking for it involves an intricate and

complicated process of simultaneously interlacing

vertically stretched parallel gold threads at right

angles with horizontally stretched parallel silk

threads.

about songket

Maiden visit by YB Dato' Seri Mohamed Nazri Abdul Aziz, Minister in the Prime Minister's Department to AmanahRaya Headquarters.

Launching of a nationwide promotion of Amanah Raya Wills Writing.

Signing of Memorandum of Understanding between Amanah Raya Berhad and 3 local universities; Universiti Teknologi Mara (UiTM), Universiti Malaya (UM) & Universiti Utara Malaysia (UUM) held at Amanah Raya Berhad's headquarters and witnessed by YB Datuk Mustapa Mohamed, Higher Education Minister.

Participated in Kemubu Agricultural Development Authority (KADA) Agrotek Carnival in conjunction with RTM's 60th Anniversary held in Kota Bharu, Kelantan.

Launching of Amanah Raya 85th Anniversary Logo and Advertisement on STAR Light Rail Transit System's coaches at Bukit Jalil Stadium by YB Dato' Seri Mohamed Nazri Abdul Aziz.

Launching of Amanah Raya Integrity Plan (ARIP) held at the Institute of Integrity Malaysia.

Signing of a Sale and Leaseback Agreement between Amanah Raya Berhad and Silver Bird Group Berhad for Silver Bird Complex in Shah Alam.

Launching of 10,000 Amanah Raya Wills Campaign by Wassiyyah-Shoppe, a corporate agent of Amanah Raya Berhad.

"Signing of Sale and Leaseback Agreement between Amanah Raya Berhad and Tamadam Berhad on Tamadam Bonded Warehouse.

Launching of Amanah Raya Corporate Batik and "Tepak Sireh" Icon by YB Datuk Seri Utama Dr Rais Yatim at Amanah Raya Berhad's Headquarters.

Signing ceremony for Strategic Alliance Agreement between Bank Muamalat Malaysia Berhad (BMMB) and Amanah Raya Berhad on the appointment of Bank Muamalat Malaysia Berhad as the corporate agent for Amanah Raya's will-writing services.

Signing of Memorandum of Understanding between AmanahRaya Development Sdn Bhd with Johawaki Development Sdn Bhd to jointly develop over 30 acres of land in Kepong into mixed housing project.

31 March


milestones

amanah raya berhad - MILESTONES FOR 2006

March - December

21 February

1 - 4 April

24 April

17 May

30 May

8 June

15 June

19 June

28 June

23 April

Signing ceremony on the partnership between Hong Leong Islamic Bank Berhad (HLIB) and Amanah Raya Berhad on the inclusion of ARB's Islamic will-writing business services in HLIB's wealth management solutions.

Signing of Sale and Leaseback Agreement for Selayang Mall Complex, Selangor between Amanah Raya Berhad and Seal Incorporated Bhd.

Launching of Hong Leong Bank Berhad (HLBB) Investsafe, an investment product jointly developed by Amanah Raya Berhad and Hong Leong Bank.

Launching of Wisma AmanahRaya and the "Perwarisan AmanahRaya" Book by His Majesty Yang Dipertuan Agong Tuanku Syed Sirajuddin Tuanku Syed Putra Jamalullail held at KL Hilton.

Kick start of Amanah Raya "Hari Bersama Pelanggan" Promotion.

Signing of Service Level Agreement between Automobile Association of Malaysia (AAM) and Amanah Raya Berhad.

Launching of AmanahRaya Unit Trust Management Sdn Bhd (ARUTM)'s unit trust funds, AmanahRaya Unit Trust Fund (ARUTF) and AmanahRaya Syariah Trust Fund (ARSTF) by YB Dato' Seri Mohamed Nazri Abdul Aziz, Minister in the Prime Minister's Department.

Collaboration Agreement with Pos Malaysia Berhad to provide a new marketing and distribution channel for Amanah Raya Unit Trust Fund (ARUTF) and AmanahRaya Syariah Unit Trust Fund (ARSTF) via Pos Malaysia's network of post offices.

Announcement on the rating by Standard & Poor's Rating Services of BBB- for AmanahRaya Real Estate Investment Trust (AmanahRaya REIT).

Signing of the Underwriting Agreement for AmanahRaya REITs between retail underwriters and Amanah Raya - JMF Asset Management.

Signing of Memorandum of Understanding between Amanah Raya Berhad with Macquarie Group and Faisal Private Bank (Switzerland) to forge greater cooperation and partnership in the area of corporate advisory and offshore Islamic Banking.

8 August

5 August

3 August

18 August

8 September

21 September

29 September

12 October

15 December

15 December

5, 12 & 26 August


milestones

amanah raya berhad - MILESTONES FOR 2006


board of directors

Pn. Azailiza Mohd Ahad

Dato’ Ahmad Rodzi Pawanteh

Tuan Haji Ab Gani bin Haron

Dato’ Haji Dusuki bin Ahmad

board of directors


Pn. Sharifah Adlina Syed Abdullah

Dato’ AbdullahSani bin Ab Hamid

Datin Aminah binti Pit Abd Raman

Datuk Mohd Hashim bin Hassan

Encik Shamsuddin bin Haji Tahir

board of directors

board of directors

Dato’ Haji Dusuki bin Ahmad was appointed as Chairman on 29 December 2003 and is a Member of the Syariah Advisory Council. He is also Chairman of the Syariah Advisory Council of AmanahRaya Unit Trust Management Sdn Bhd (formerly known as Amanah Raya Asset Management Sdn Bhd) (“ARUT”). He holds a Masters of Arts in Syariah from Al-Azhar University of Cairo, Egypt. He was the Director of Yayasan Dakwah Islamiah Malaysia (YADIM) from June 1975 to May 1982 and Member of the Advisory Council for Religious Education Affairs to the Minister of Education from October 1974 to 1978. He was also the Parliamentary Secretary of the Regional and Land Development Ministry from July 1984 to August 1986 and Parliamentary Secretary of the Ministry of Information from August 1986 to November 1990. From June 2000 to October 2003, he was the Political Secretary to the Prime Minister.


board of directors

Dato’ Ahmad Rodzi Pawanteh was appointed as Managing Director and Chief Executive Officer effective from 1 July 2004. He is the Chairman of the Quotation and Executive Committees and Member of the Investment, Tender and Law Review Committees. He sits on the Board of all Subsidiaries of Amanah Raya Berhad. He holds an MBA (General Management) from Southern Cross University, Australia, and MBA (Banking & Finance) from University of Hull, United Kingdom. He graduated from the University of Malaya with a Bachelor of Economics (Honours)-Accounting and also from the University of Wolverhampton, United Kingdom with a Bachelor of Laws (Honours). He is a member of the Chartered Institute of Marketing, United Kingdom and a Registered Financial Planner.

Tuan Haji Ab Gani Haron was appointed as a Non-Independent Non-Executive Director with effect from 17 January 2002, representing ARB’s main shareholder i.e. The Minister of Finance (Incorporated). He sits on the Board of Amanah Raya (Labuan) Limited (ARL), AmanahRaya Investment Bank Limited, Amanah Raya Capital Sdn Bhd (ARC) and also the Chairman of Audit Committee and Tender Committee. He graduated from University of Malaya with a Degree in Economics with Honours. His first appointment in the Government service was as an Accountant at the Unclaimed Moneys Department in 1977. He has worked in various government departments such as Accountant General, Sabah State Treasury and he is currently the Deputy Accountant General (Operation), Malaysia.

Datin Aminah Pit Abd Raman was appointed to the Board as an Independent Non-Executive Director on 1 August 2002. She is the Chairperson of the Investment Committee and a Member of the Personnel & Integrity Committee, Audit Committee and Syariah Advisory Council. She is also the Chairperson for ARL. She has amassed diverse experience in entrepreneurship as well as in corporate and government sectors, making her a valuable resource for ARB. Prior to that, she was attached to Hong Leong Bank Berhad from 1995 to March 2002 as General Manager, Economics and Islamic Banking Division. Apart from advising senior management on regional and global issues, she worked extensively in corporate banking and finance. She began her career as Administrative and Diplomatic Officer in 1972 and served the government for 23 years. In the government sector, she served as Director of the Planning and Development Division for the Ministry of Domestic Trade and Consumer Affairs in 1991, where she was directly involved in corporate planning at the ministerial level. She also served as the Deputy Director of Administration at the University Hospital Kuala Lumpur in 1986. Prior to 1986, she also served the Ministry of Finance, Ministry of Trade and Industry and the Economic Planning Unit, Prime Minister’s Department. She graduated with a Bachelor of Economics with Honours from Monash University, Melbourne, Australia in 1971, and completed her Post-graduate Diploma in Business Studies from the London School of Economics, London, United Kingdom in 1985.

Encik Shamsuddin bin Haji Tahir was appointed as an Independent Non-Executive Director since 13 July 2004. He sits as Board Member in AmanahRaya Development Sdn Bhd (formerly known as ARB Hartanah Sdn Bhd) and ARC. He is also a Member of Investment and Personnel & Integrity Committees. He is an ardent politician and has held various duties in UMNO including as the UMNO Youth Deputy Head for the district of Pendang from 1993 until 1995. He is the Chairman of various organisations including Majlis Belia Daerah Pendang. Presently, he serves as Pendang’s UMNO Deputy Chief and Director of Bina Darulaman Quarry Sdn Bhd.


board of directors

Datuk Mohd Hashim bin Hassan was appointed to the Board as an Independent Non-Executive Director since 28 April 2005 and has held various key positions throughout a career spanning almost 33 years in the government, semi-government and private sectors. Currently, he is the Chairman for AmanahRaya Development Sdn Bhd (formerly known as ARB Hartanah Sdn Bhd) and also a Board Member of AmanahRaya Asset Management (Labuan) Ltd. He was the Chief Executive Officer of Kedah State Development Corporation from 1993 until 1996, Managing Director of Kulim Technology Park Corporation from 1994 until 1996, Executive Chairman of Bina Darulaman Berhad from 1994 until 1997 and Director/Chief Executive Officer of Putrajaya Holdings Sdn Bhd from 1996 until 2002, Chairman of Putrajaya Holdings Sdn Bhd from 2003 to 2005, Chaiman of Padi Beras Nasional Berhad from 2004 to 2006 and Deputy Chairman of KUB Malaysia Berhad. He obtained his MBA from Ohio University United States of America, as well as an M. SC (Food Science) from Michigan State University, United States of America and a B. Agri. Sci. from University Malaya. He is presently the Director of Bank Kerjasama Rakyat (M) Berhad, Lebar Daun Berhad and member of the KWSP Investment Panel.

Puan Sharifah Adlina Syed Abdullah was appointed to the Board as a Non Independent Non-Executive Director on 1 August 2006. She graduated with a Bachelor in Business Administration (Banking) with second class upper Honours from the Northern University of Malaysia in 1997 and a Master of Science in International Economics, Banking and Finance from University of Wales, Cardiff, United Kingdom in 2005. She began her career with the United Overseas Bank (Malaysia) Bhd in 1997 as a Credit and Marketing Officer, managing a portfolio of middle market corporate loans before leaving the bank as Account Relationship Manager in March 2000. Since April 2000, she joined the government service as an Administrative and Diplomatic Officer posted to the Ministry of Finance and has served in various capacities within the Ministry. She currently serves as the Principal Assistant Secretary in Investment, MOF (Inc.) and Privatisation Division. She is also a member of the Investment and Audit Committee of the Company.

Puan Azailiza Mohd Ahad was appointed to the Board as a Non Independent Non-Executive Director on 30 June 2006. She graduated from the University of Malaya, Kuala Lumpur and has 21 years of judicial, legal and advisory experience in Government sector. She began her career in the Legal and Judicial Service as a Magistrate at the Magistrate Court in 1985. Her working experience includes serving as the Senior Federal Counsel at the Economic Planning Unit of the Prime Minister’s Department, Kuala Lumpur before moving to the Advisory and International Law Division of the Attorney General’s Chambers, Putrajaya in 2001. She is currently the Head of International Affairs Division, Attorney General’s Chambers, Putrajaya.

board of directors

Dato’ Abdullah Sani bin Ab Hamid holds a Master of Public Administration from The America University, United States of America as well as a B. Sc. (Pol.Sc.) from University Sains Malaysia, Pulau Pinang. He started his career as an Assistant District Officer, Port Dickson in year 1975. In 1980 until 1984 he held a position as Assistant Secretary of ‘Kerajaan Negeri Sembilan’, in 1984 to 1985 as a Senior Assistant Director of ‘Pejabat Ketua Pengarah Tanah dan Galian Persekutuan’, and in 1987 to 1992 as a Principal Assistant Secretary of Negeri Sembilan (Protocol). He was a Deputy Chairman of ‘Majlis Perbandaran Seremban’ in 1992 until 1996 and then became a Director of Yayasan Negeri Sembilan from 1997 to 2002. He was attached to ’Pejabat Setiausaha Kerajaan Negeri Sembilan’ as the State Financial Officer, Negeri Sembilan in year 2002 to April 2005 and then held a position as the State Secretary, Negeri Sembilan in April 2005 to 27 December 2006. He is presently the Director General of the Legal Affairs Division in the Prime Minister’s Department.


chairman’s statement

Y. Bhg. Dato’ Haji Dusuki bin AhmadChairman

Dear Shareholders,

On behalf of the Board of Directors and our dedicated management team, it is my pleasure to present the Annual Report and the Audited Financial Statements of Amanah Raya Berhad and its subsidiaries (“AmanahRaya Group”) for the financial year ended 31st December 2006.


EXCELLENT PERFORMANCE

I am delighted to report that AmanahRaya Group has generated another excellent performance for the second consecutive year. The Group reported a 77% increase in total revenue to RM109.87 million, from RM62.17 million in 2005. The strong revenue growth was translated to a 116% rise in its profit before tax to RM41.18 million, compared to RM 19.02 million in 2005.




DIVIDEND

The Board is recommending a final dividend of 20% for the financial year ended 31 December 2006, subject to the members’ approval at the forthcoming Annual General Meeting.

PROSPECTS

AmanahRaya Group is confident of a better year in 2007 for the Malaysian economy and the financial services sector in general. In view of the anticipated improved outlook, the Group has devised business strategies to acquire opportunities to sustain its performance growth. An internal restructuring of its business operation was recently undertaken to ensure its activities

DIVERSIFYING BUSINESS OPERATION

The Group’s business diversification strategy in 2006 has witnessed its operation spreading beyond its traditional activities of estate administration, trust operation and wills services, to include asset management, personal financing, offshore operations and property management.

Notwithstanding, the activities of trust operation, estate administration and wills services at ARB continued to garner stronger footing. The trust business at ARB has grown exceptionally well with the size of its trust fund, the Common Fund, expanding 54% to reach RM 5.28 billion as at the end of 2006. ARB has made further inroads in corporate trusteeship with the Net Asset Value (NAV) of all the trust funds under its trusteeship growing to RM 77.56 billion as compared to RM 65.59 billion in 2005. In addition, the trust operation and estate administration was further boosted with the opening of ARB Service Centre to enhance customer services and to provide a one-stop centre for all ARB products and services. ARB has also positioned itself as front-runner in the provision of wills services with the strategy of collaborating with strategic partners to raise awareness and increase the number of wills registered at ARB.

The Group’s financial services activities have progressed strongly during the year. As the fund manager of the Common Fund, Amanah Raya-JMF Asset Management Sdn Bhd has aggressively acquired investment opportunities and managed to launch AmanahRaya-Real Estate Investment Trust (ARREITs) during the year. Amanah Raya Capital Sdn Bhd has also enlarged its range of financial products to include two Islamic credit option schemes, namely, Bay Al Inah and Bay Ad Dayn. The Group has successfully launched its first two unit trust funds, AmanahRaya Unit Trust Fund and AmanahRaya Syariah Trust Fund through AmanahRaya Unit Trust Management Sdn Bhd.

The Group’s offshore operation was boosted by the strong performance of our trustee subsidiary, Amanah Raya Labuan Ltd., and the granting of licenses to operate AmanahRaya Investment Bank Ltd and AmanahRaya Asset Management Ltd in Labuan. The Group’s involvement in the property sector via ARB Hartanah Sdn Bhd has also expanded with the acquisition of mandates for project management and property development.



OUR GRATITUDE

I would like to record my gratitude and appreciation to the Board of Directors, the management and staff of the AmanahRaya Group who have contributed to the strong performance of the Group. I take pride in their display of high commitment and professionalism to achieve our mission and vision. My fellow members of the Board have always been supportive and

continuously providing invaluable insights to steer our Group towards achieving its objectives.

I would like to record my appreciation to the out-going members of the Board, Datuk Mohamed Bazain Hj Idris, Dato’ Mahadi bin Hj Ibrahim and Hj Ahmad Kamal Abdullah Al-Yafii, and welcome Dato Abdullah Sani bin Ab Hamid, Puan Azailiza Mohd Ahad and Puan Sharifah Adlina Syed Abdullah as the new members of the Board of Directors of ARB. I would also like to take this opportunity to extend my appreciation to the members of the Board of Directors of all the

subsidiaries of Amanah Raya Berhad.

I would also like to extend my gratitude to the Prime Minister’s Department, being our Ministry-in-charge, our shareholders, Minister of Finance (Incorporated) and Federal Lands Commissioner, our customers, business partners, financial institutions and regulatory bodies for

their unwavering support and we look forward to their continuous support in the coming years.

Dato’ Haji Dusuki bin AhmadChairman


are more focused and ready to endure future competitive environment. The restructuring entailed the clustering of subsidiaries concentrating on the provision of legacy services,

trusteeship services, property development and capital market products and services.

AmanahRaya Legacy Services Sdn Bhd will commence operation in 2007 with the objective of providing comprehensive legacy management services comprising wills writing, custodianship and execution. As the trustee for major trust funds in the country, ARB’s presence in the corporate trusteeship sector has long been renowned and this position is to be enhanced with

the setting-up of a dedicated trustee arm, AmanahRaya Trustees Bhd in 2007.

The granting of licenses to operate an investment bank and asset management company out of Labuan is opening further opportunities for the Group to expand its range of financial services and

entrench ARB’s involvement in the capital market.

AmanahRaya Group recognizes the importance of continuously improving its customer services. Further to the establishment of ARB Service Centre, a Care Unit was established to cater for estate and trust beneficiaries with special needs. The Group has also incorporated an Integrity Unit in line with the National Integrity Plan (NIP) launched by the Government and the

comprehensive plans as stipulated in the Amanah Raya Integrity Plan (ARIP).

I am also proud to inform that ARB has successfully received the renewal of its ISO 9001:2000 certification for its business processes. Our asset management company, AmanahRaya – JMF Asset Management Sdn Bhd (“AR-JMF”) was also accredited with ISO 9001:2000 and the United

Kingdom Accreditation Service (“UKAS”) certification in July 2006.

p.16 Amanah Raya Berhad 2006 annual report annual report

Dear Shareholders,

I am proud to del iberate on the except ional performance of AmanahRaya Group in 2006, which has posted a hefty 116% rise in pre-tax profits to RM41.18 mill ion compared to RM19.02 mil l ion in the previous year.

Y. Bhg. Dato’ Ahmad Rodzi PawantehManaging Director


managing director’s statement

performance highlights in 2006

(RM million) 2004

Total Revenue

Pre-tax Profits

Earnings per Share (RM)

Net Tangible Asset per share (RM)

Return On Shareholders’ Funds

37.96

3.09

0.23

8.46

6%

2005

62.17

19.02

2.17

10.11

29%

2006

109.87

41.18

7.00

16.86

39%

PERFORMANCE REVIEW

During operations of the year, AmanahRaya Group has managed to display strong overall performance in estate and trust administration, legacy services, asset management, consumer financing, financial services and property management. The Group’s business diversification and expansion strategy has contributed positively to the outstanding

performance.

Our asset management arm, AmanahRaya-JMF Asset Management Sdn Bhd has contributed significantly to the Group’s earnings with pre-tax profits of RM4.76 million in 2006. AmanahRaya-JMF is continuously seeking new investment avenues and generating innovative products and services to cater to the demanding market. Towards this objective, it has undertaken various efforts including the conception of the AmanahRaya Real Estate Investment Trust (ARREITs), Islamic Financial Option and various collective

investment schemes.

The Group has seen favorable returns from its involvement in the offshore capital market with its subsidiary, AmanahRaya Labuan Ltd securing a number of trusteeship mandates and reported pre-tax profits of RM4.70 million. We are also pleased with the performance of our consumer financing subsidiary, AmanahRaya Capital Sdn Bhd, which registered its first full-year profits of RM3.82 million. In a move towards becoming a more established financing house, AmanahRaya Capital has undertaken efforts to enhance its operational

efficiencies to ensure superior processing and delivery standards.

AmanahRaya’s foray in the property sector has also displayed encouraging results with its subsidiary, AmanahRaya Development Sdn Bhd (formerly known as ARB Hartanah Sdn Bhd), reporting stronger profits of RM3.68 million arising from building management fees and

the securing of new mandates for property development ventures.

The strong performance of the AmanahRaya Group has generated a respectable set of key performance indicators with huge improvements on its earnings per share (EPS), net

tangible assets (NTA), and Return on Shareholders’ Fund.

BUSINESS OPERATIONS REVIEW

During the year, the Groups’ corporate strategy has been one of incorporating both operational performance enhancement measures as well as initiatives that create new business prospects. The Group is continuously seeking opportunities that enhance shareholder value and towards becoming a stronger and more resilient financial services group.



CORPORATE TRUSTEESHIP

During the year, the Group managed to expand further its corporate trusteeship business with the number of trust funds under ARB’s trusteeship increasing to 96 funds compared to 76 funds in 2005. The net asset value (NAV) of total funds under ARB’s trusteeship amounted to more than RM72 billion, representing 67% market share of total trust funds in the country. The Group has aggressively participated in the bond market and managed to secure trusteeship for 30 bonds valued at more than RM27 billion, compared to 16 bonds (valued at RM21.52 billion) in 2005.

CAPITAL MARKETS AND FINANCIAL SERVICES

The year 2006 marked a landmark year for the Group in terms of progressing in the capital markets and financial services sector. As at 31st December 2006, the Common Fund (Kumpulan Wang Bersama) of ARB grew substantially from RM3.43 billion in 2005 to RM5.28 billion in 2006. This fund, which is managed by AmanahRaya – JMF, is the main trust fund of ARB. The intrinsic value of the Common Fund was further enhanced after the capital appreciation of its property investments in the AmanahRaya REITs in February 2006.

TRUST AND ESTATE ADMINISTRATION

ARB took pride in establishing the ARB Service Centre, a one-stop centre to enhance customer service excellence philosophy. Our goal is to provide easy access for our customers to reach our specialized services. The centre is located right in the heart of the city at No 2, Jalan Ampang, well within walking distance from the city’s light rail system. The centre is fully equipped with capable staff and a powerful Information System that translates to faster service, access to critical customer information and efficient implementation. A dedicated Private Trust Unit was also created during the year to provide personalized services on Trust and Estate Administration matters for high-nett worth clients and also for clients that require integrated services for trust and legacy services.

As at 31st December, 2006, there were 51,734 active trust accounts valued at RM5.25 billion under the administration of ARB. In addition, there were 21,773 active estate administration cases as at the end of 2006. The Trust and Estate Administration operation received a further boost of confidence when ARB received a renewal of it Quality Management System (ISO 9001:2000) accreditation in May 2006.

In a move to enhance delivery in the provision of legacy services, a Probate Management Department was established to undertake the functions of wills writing, registration, custodianship and execution. The year 2006 alone saw ARB aggressively marketing its wills services via house promotions and marketing alliances with strategic partners, which brought a huge rise in the number of wills registered at ARB. As at the end of 2006, ARB has managed to register a cumulative total wills of 15,015 cases compared to only 5,136 wills at the beginning of the year.





The capital market division contributed strongly to the Group’s earnings during the year. AmanahRaya-JMF had its full-year of operation under the AmanahRaya umbrella and contributed substantially to the Group’s profitability. During the year, AmanahRaya-JMF teamed up with third party financial advisors to launch AmanahRaya REITs, the first real estate investment trust launched by a Government-owned company. There is a need for ARB as a new entrant to propel itself towards becoming a significant capital market player by continuously introducing competitive and innovative products and services. As such, AmanahRaya-JMF and Hong Leong Bank Bhd is also collaborating on the first Islamic Financial Portfolio Obligations (IFPO), due for

launch in 2007.

Another feather in the cap for the Group’s involvement in the financial services industry was the incorporation of the AmanahRaya Unit Trust Management Sdn Bhd. The company launched its first two unit trust funds with a total approved fund size of RM1.0 billion in September 2006. In the financial market place, these unit trusts have the competitive edge of having the majority

of its investments in financial instruments with guaranteed capital and consistent returns.

AmanahRaya Capital, which commenced its full operation during the year by offering Islamic consumer financing, saw its total asset portfolio grow substantially to RM 66.38 million at the end of 2006. The subsidiary registered pre-tax profits of RM3.82 million in 2006 and is extending

its financial products to ARB’s existing trust clients and estate beneficiaries.

Our property subsidiary, AmanahRaya Development Sdn Bhd, reported favorable results with pre-tax profits of RM3.68 million. The company continued making inroads in project management and managed to secure contracts for joint-venture development projects with

established property companies.

Amanah Raya Labuan Ltd reported a turnaround performance in 2006 with pre-tax profit of RM4.70 million. The company generated its revenue from trustee fees of the Common Fund’s foreign investment and a growing number of private companies with offshore investment. Amanah Raya Nominees Sdn Bhd managed to increase its pre-tax profits from RM0.87 million to

RM1.29 million in 2006 despite competition from foreign bank-backed trustee companies.

Towards the end of 2006, AmanahRaya’s foray in the capital market was further boosted when it received the approval from LOFSA to undertake investment banking and asset management operations in Labuan. The offshore operation is being undertaken by new subsidiaries, namely, AmanahRaya Investment Bank Ltd and AmanahRaya Asset Management Ltd. Its maiden activities have received an encouraging start when the Group secured initial mandates on offshore

investment from Morgan Stanley and Faisal Private Bank of Switzerland.

BUSINESS DEVELOPMENT ACTIVITIES

Market development activities during the year focused on sustaining an awareness program of ARB’s products and services. This program included focused promotional activities on wills services and wider media coverage of the Group’s capital market activities. The Year 2006 signified ARB’s commitment to increase mass awareness on the importance of will writing. Aggressive programs and promotional activities were organized in key market sectors, with competitive pricing strategies and also strategic alliances with established service providers such as Hong Leong Islamic Bank Bhd, Bank Muamalat Malaysia Bhd and Wasiyyah – Shoppe Sdn



ORGANIZATIONAL DEVELOPMENT

As a Government-owned company, it is one of ARB’s objectives to elevate its corporate social responsibility to a higher level. During the year, the Group has allocated more than RM1.0 million for various charity programs which included distribution of school bags to underprivileged children, donations to flood victims and contributions to social and charity events. As a caring corporate entity, the Group has also established a dedicated Care Unit in September 2006 to ensure the welfare and social development of its minor beneficiaries and physically-challenged clients are well-taken care.

Quality Management is another aspect of the Group’s focus for the coming years. Sharing the holding company’s vision, Amanah Raya-JMF was also awarded quality certification from both SIRIM and UKAS during the year. It is anticipated that all the subsidiaries of the Group will be accredited with ISO certification to ensure its work processes are of superior standards.

In line with the Government’s call for corporations to adopt the National Integrity Plan (NIP), AmanahRaya Group has initiated a positive move to instill the NIP into the work place by being the first private entity to introduce a comprehensive integrity plan namely AmanahRaya Integrity Plan (“ARIP”), which was officially launched in April 2006. An Integrity Unit was specifically set up to create awareness and outline appropriate code of business ethics and practices to be observed by the Group.


HUMAN CAPITAL

As the AmanahRaya Group is widening its current business operations and expanding into new business territories, there is the need for the Group to continuously build its human capital to ensure the resources are more resilient and competitive. During the year, the Group implemented a new and competitive remuneration scheme to all ARB employees. The Group has seen its staff strength grow by 29% to 546 staff from only 423 staff in 2005. The Group has also

Bhd. As a measure of our commitment toward the development of the wills and estate administration sector, we initiated and took the lead towards the formation of the Malaysian Legacy Management Association, PERWARIS which was established in March 2006 to serve as a reference body for all practitioners in Malaysia.

Throughout 2006, the AmanahRaya Group celebrated it’s 85th anniversary as the Public Trustee of Malaysia with various events and programs. The Group launched AmanahRaya’s Corporate Batik and Tepak Sireh icon in June. The Corporate Batik was adopted as the corporate attire for the AmanahRaya Group to clearly define and signify our corporate identity as a true blue Malaysian entity with a strong sense of our heritage. The Tepak Sireh was chosen as an icon for AmanahRaya to symbolize the continuity of a proud tradition which has evolved into a legacy. To commemorate the evolution and inception of Amanah Raya Berhad from it’s role as the Public Trustee, a special corporate logo of an abstract hibiscus, the national flower of Malaysia was created. The Group marked the Anniversary Celebration with a grand dinner and the publication of the AmanahRaya Souvenir Book in August 2006. The event was graced and officiated by His Majesty Seri Paduka Baginda Yang DiPertuan Agong, Tuanku Syed Sirajuddin ibni Al-Marhum Tuanku Syed Putra Jamalullai. The occasion also commemorated the official relocation of ARB’s headquarters from Jalan Damansara, Kuala Lumpur to Wisma AmanahRaya, Jalan Ampang.



raised expenditure on staff training, which encompasses in-house and external seminars, courses and conferences, executive education and attachments with established industry players.

In support of the Government’s initiatives to reduce unemployment, the Group has taken its corporate social responsibility to a higher level by providing job training and attachments to local graduates. To reinforce AmanahRaya’s commitment into building knowledgeable future leaders, the Group has also signed a Memorandum of Understanding with 3 local universities to

offer Internship Programs for their graduates.

The welfare of the staff has always been one of the priorities of the AmanahRaya Group. During the year, the staff enjoyed their Family Day in Pulau Langkawi, whilst the Sports Club also organized various activities among the staff and sports competition with participation from other companies and Government Departments. Towards the end of 2006, Koperasi Amanah Raya Berhad was incorporated to provide opportunities for staff members to participate in potentially

good business ventures.

Capital Markets And Financial Services – provision of products and services related to capital market such as asset management,

investment banking, unit trust operation, retail financingTrustee Services

– provision of corporate trusteeship services, custodial, nominee services for localand offshore market

Legacy Services– provision of comprehensive legacy services including wills writing, registration,

custodial and executionProperty Services

– focusing on property management, project management and property development

PROSPECTS

On behalf of the management team and the staff of ARB, we wish to inform our shareholders that the prospects for the Group are very promising in the near to medium term. The commitment shown thus far will be further intensified and focused towards strengthening our existing businesses and monitoring new activities to ensure continuous good returns. We will still continue to exercise prudence and care in our stewardship of the capital and assets entrusted to us.

In order to sustain the momentum of growth and to transform ARB into a resilient financial services group, the company has taken the initial steps of restructuring its business operations. ARB, the company will be the holding company engaged in the core activities of Trust and Estate Administration whilst providing strategic support services to all the subsidiaries within their areas of expertise. The subsidiaries of ARB are strategic business units, which are grouped under

four major divisions as described below.

The Capital Markets And Financial Services is expected to be at the forefront of all activities in 2007 with the listing of AmanahRaya REITs in February 2007. The Division is spearheading the AmanahRaya Group into building the foundation to enhance its position as a capital market player by introducing innovative investment instruments and collective investment schemes. The Group is also expected to launch new products and services for offshore markets in relation to


treasury, corporate finance and advisory, investment banking and asset management when our investment bank commences its operations in 2007.

The business of corporate trusteeship is expected to expand further in positioning ARB as a full-fledged investment services provider. The year 2007 will see the concentration of all the activities of corporate trusteeship and nominee services for local and offshore markets under a dedicated subsidiary, AmanahRaya Trustees Bhd. The focus of the new subsidiary is to ensure smoother delivery and efficient data management. The company is also expected to work closely with established global market players to gain from the transfer of technology and expertise in the global environment.

In sustaining ARB’s position as the premier trustee company, the year 2007 will carry the ‘Trust Year’ theme whereby the company will launch new trust products namely Amanah Premier Trust Deposits and Amanah Savings Trust. These products are additional trust accounts with different features than the existing ARB Trust Account to cater to the different needs of the market.

ARB’s commitment towards the organized development of wills is to be further boosted when the Malaysian Wills Registry (‘DaftarWasiat Malaysia’) is to be launched in June 2007, in a move to register all wills in the country.

The Group’s commitment to the objectives of its Quality Management System (ISO 9001: 2000) is expected to see subsequent enhancements on its operational and financial processes. The move would also incorporate process technology enhancements for its operations with the expected commissioning of ARB’s Trust and Estate Information Management System (TIMS) in 2007. The Group is also upgrading and expanding its process technology for an integrated accounting, trustee services and legacy management. In line with the corporate objective of inculcating the culture of customers service excellence, the year will also see the Group embarking on extensive customer service initiatives and improvement programs.

The Group’s drive for knowledge enhancement of its human capital will see a substantial budget allocated for training and development programs. The investment in human capital enhancement program will include intensive training and skill-enhancement exposures via courses, seminars and attachment programs, continuing education programs and the formulation of an expertise program in Trust and Estate Administration with a local educational institution.

We are looking forward to an enriching and successful year in 2007 for the AmanahRaya Group and I am confident that the Group is well-positioned to achieve its objectives. I take this opportunity to thank the Government of Malaysia and the Malaysian public, including the private sector, for their continuous support to the AmanahRaya Group.

Lastly, on behalf of the management and staff, I would like to thank the Board of Directors for the guidance and advice that they have provided thus far.

Dato’ Ahmad Rodzi PawantehManaging Director





corporate structure

AMANAHRAYA TRUSTEES BERHAD

AMANAH RAYA NOMINEES (TEMPATAN) SDN BHD

AMANAH RAYA NOMINEES (ASING) SDN BHD

AMANAH RAYA (LABUAN) LIMITED

AMANAHRAYA HARTANAH SDN BHD

AMANAHRAYA PROPERTIES SDN BHD

AMANAHRAYA PROJECT MANAGEMENT SDN BHD

AMANAHRAYA DEVELOPMENT SDN BHD

AMANAHRAYA CAPITAL GROUP SDN BHD

AMANAHRAYA-JMF ASSETMANAGEMENT SDN BHD

AMANAHRAYA UNIT TRUST MANAGEMENT SDN BHD

AMANAH RAYA CAPITAL SDN BHD

AMANAHRAYA PRIVATE EQUITIESSDN BHD

AMANAHRAYA INVESTMENT BANK LTD

AMANAHRAYA ASSET MANAGEMENT (LABUAN) LTD

AMANAHRAYA CORPORATE ADVISORY SDN BHD

AMANAHRAYA INVESTMENT ADVISORY SDN BHD

CAPITAL MARKETS

AMANAHRAYA LEGACY SERVICESSDN BHD

LEGACY MANAGEMENT

TRUST MANAGEMENT

PROPERTY MANAGEMENT

28.7

1.9

2003

38.0

3.1

2004


group financial highlights


Earnings per Share (EPS) Revenue and Profit Before Tax

Revenue

Profit Before Tax

Net Tangible Assets Trust Fund Under Administration

700600

500400

300200

100

2004

200319.5

216.7

23.3

2005

699.7

RM M

illion

2006

16

12

8

4

2004

2003 8.33

10.07

8.46

2005

16.86

RM M

illion

2006

16

12

8

4

2004

2003 1,417

3,671

1,916

2005

5,524

RM M

illion

2006

7060

5040

3020

10

62.2

19.0

2005

109.9

41.2

80

90100

RM M

illion

2006



AmanahRaya Group - 3 year highlights

38.0

3.1

Revenue

Expenses

PBT

7060

5040

3020

10

62.2

43.2

34.9

19.0

2005

109.9

68.7

41.2

80

90

100

RM M

illion

2006

2004


senior management team

Managing Director, AmanahRaya-JMF Asset Management Sdn Bhd

1. Datuk Mohamed Azahari Kamil

Chief Integrity OfficerAmanah Raya Berhad

2. Abu Kassim Mohamed

Director/CEO, AmanahRaya Legacy Services Sdn. Bhd.

3. Rafie Omar

Director/CEO,AmanahRaya Trustees Berhad

4. Hjh. Habsah Bakar

5. Alina Hashim


1

4

32

5

Chief Operating OfficerAmanah Raya Berhad




Chief Operating Officer, AmanahRaya Hartanah Sdn. Bhd.

1. Abdul Malik Abbas

Executive Director, AmanahRaya-JMF Asset Management Sdn Bhd

2. Sharizad Jumaat

Executive Director, AmanahRaya-JMF Asset Management Sdn Bhd

3. Tai Siong Choi

4. Roslan HarunManaging Director/CEO, AmanahRaya Unit Trust Management Sdn. Bhd.

5. Ir. Ahmad Fohad bin HusseinChief Operating Officer, AmanahRaya Development Sdn Bhd.

1

5

42 3

MEMBERS

Tuan Haji Ab Gani HaronDatin Aminah Pit Abd RamanPuan Sharifah Adlina Syed Abdullah (Appointed w.e.f. 1.8.2006)Dato’ Mahadi Mohd Ibrahim (Resigned on 27.12.2006)Haji Ahmad Kamal Abdullah AI-Yafii (Resigned on 1.8.2006)


audit comittee report

audit committee report

TERMS OF REFERENCE OF AUDIT AND REVIEW COMMITTEE

Composition

The Audit and Review Committee comprises five (5) members. Two (2) Independent Non-Executive Directors and three (3) Non-Independent Non-Executive Directors of the Board.

Objectives

The Audit and Review Committee is established in accordance with the Treasury Circular Letter No. 9 Year 1993 - Guidelines on the Setting up of Audit and Review Committees for Government Companies for the purpose of:-

Maintaining the interest of the Government as the shareholder through control and monitoring of the Management of the Company.

To assist the Board of Directors to monitor the principles and accounting systems, internal controls, financial reporting and business ethics.

To determine the financial sources of the Company are administered and managed efficiently and effectively in accordance with corporate and social objectives.

To undertake the role as the review and balance mechanism (checks and balances) of the management of the Company.

To ensure compliance with the statutory requirements as required under the Companies Act 1965.

To oversee all functions of the Internal Audit Department.




Meeting

The quorum for the Committee shall comprise two (2) members.

The Committee shall meet at least once within a period of three (3) months or a period determined by the Committee Chairman.

Functions

The Audit and Review Committee is primarily responsible to the Board of Directors. Their terms of reference are as follow:-

To endorse the appointment and promotion of the Audit Manager and Internal Auditors for the approval of the Board of Directors.

To provide support in ensuring the independence of internal audit activities so that they run smoothly.

To carry out audit inspections or special reviews of achievements when needed.

To review the previous year's activities and achievements of the internal audit and to formulate plans for next year.

To study and monitor corporate planning for review and internal control especially in the area of management.

To review and supervise an effective accounting system by exercising controls in related areas so that early warning systems about the Company's weaknesses can be put in place.

To identify flaws in the management system which require improvement.

To ensure that breach of policies and system management procedures are identified quickly and dealt with immediately.

To review direct expenditures such as annual operation expenditures as well as direct expenses in order to ascertain that those costs are justifiable and related to the functions of the organisations.

To determine the proper measures for identifying and protecting assets.

To study and discuss the plan for the annual external audit before it is carried out each year.

ACTIVITIES

The Audit Committee had carried out the following main activities during the financial year ended 31 December 2006:-


audit comittee report


MEETINGS

The Audit Committee had a total of two (2) Meetings during the financial year ended 31 December 2006 and the attendance of the Committee Members were as follows:-

To observe the opinion of external auditors and ensure that matters arising are given due attention and that proper action is taken by the management of the Company.

To review the performance of the external auditor and to propose to the Board of Directors on the re-appointment and annual fee of the firm.

To review and examine the Parent Company's audited as well as unaudited annual financial statements, including that of the Subsidiaries and Associate Companies, before their submission to the Board of Directors for approval.

Discussed and reviewed the audit plan for the financial year ended 31 December 2006.

Discussed and reviewed the year end financial statements prior to the presentation to the Board of Directors for approval.

Discussed and reviewed the Final Internal Control for the financial year ended 31 December 2006.

Members


Datin Aminah Pit Abd Raman

Dato’ Mahadi Mohd Ibrahim

Puan Sharifah Adlina Syed Abdullah (Appointed w.e.f. 1.8.2006)

Tuan Haji Ahmad Kamal Abdullah AI-Yafii

Attendance

2/2

2/2

2/2

N/A

2/2


statement of corporate governance


THE BOARD OF DIRECTORS

The Board currently consists of eight (8) members, comprising seven (7) Non-Executive Directors (including the Chairman) and one (1) Executive Director. The Directors bring a wide range of legal, business and financial experience relevant to the direction of an expanding trust company. Biographical for each of the Directors are set out on pages 10 to 11 of this Report.

The Board meets at least once every two (2) months with the additional Meetings convened as and when necessary. All Board members have access to comprehensive information on the Company's operations, marketing strategies, performance and financial status at the Board Meetings and on a regular or ad-hoc basis.

During the financial year ended 31 December 2006, five (5) Board Meetings were held and the attendance of the Board Members were as follows:-

The Board of Directors is committed to ensuring that the highest standards of corporate governance are practiced throughout the Group as a fundamental part of discharging its responsibilities to protect and enhance shareholders’ value and the financial performance of the Group and the Company.

Based on the Principles of the Malaysian Code on Corporate Governance (“the Code”) and with the practice of openness and corporate accountability, the Board is pleased to present its report on the extent of compliance with the Best Practices as recommended under Part 2 of the Code in this statement.

Members AppointedNon

Independent

Dato' Haji Dusuki Ahmad

Dato’ Ahmad Rodzi Pawanteh


Datin Aminah Pit Abd Raman

Encik Shamsuddin bin Haji Tahir

Datuk Mohd Hashim Hassan

Puan Azailiza Mohd Ahad

Puan Sharifah Adlina Syed Abdullah

29/12/2003

1/7/2004

17/1/2002

1/8/2002

13/7/2004

28/4/2005

30/6/2006

1/8/2006

5/5

5/5

5/5

5/5

5/5

5/5

-

3/3

Attendance

-

Yes

Yes

-

-

-

Yes

Yes

Independent

Yes

-

-

Yes

Yes

Yes

-

-




There is a clear division of responsibilities and powers between the Chairman and the Managing Director to ensure that the necessary checks and balances are in place as well as to provide a degree of certainty in the exercise of their respective authorities.

The Chairman holds a Non-Executive position and is primarily responsible for the orderly conduct and working of the Board while the Managing Director is responsible for the day-to-day running of the business and implementation of Board policies and decisions with the support of the management team.

The presence of Independent Non-Executive Directors provides an effective Board with a mix of industry specific knowledge and broad business and commercial experience. Directors are equally accountable and responsible and the role of these Independent Non-Executive Directors is particularly important in ensuring that the strategies proposed by the management are fully discussed and examined, compliant with the Companies Act 1965 and Public Trust Corporation Act 1995 and/or any other regulations and also to take account of the long term interests, not only of the shareholders, but also of employees, customers, and public at large in which the Company conducts business. The Board may seek advice from independent experts whenever necessary at the Company’s expense.

Pursuant to the Company’s Article of Association, unless otherwise agreed by the general meeting, the number of Directors of the Company shall be not less than two (2) or more than nine (9).

To assist the Board in discharging their duties in reviewing the operations and performance of the Company efficiently, the Board has delegated some of its responsibilities to the following Committees:-

Members Appointed Non Independent

Datuk Mohamed Bazain Haji Idris(Resigned on 30 June 2006)

Haji Ahmad Kamal Abdullah AI-Yafii(Resigned on 1 August 2006)

Dato’ Mahadi Mohd Ibrahim(Resigned on 27 December 2006)

24/1/1996

1/8/2002

18/7/2005

2/2

2/2

5/5

Attendance

Yes

-

Yes

Independent

-

Yes

-




Audit Committee The Audit Committee reviews the effectiveness of the internal control system of the Company. The Chairman of the Committee is Haji Ab Gani Haron. The Composition and Terms and Reference are stated on pages 28 to 30.

Two (2) Meetings were held during the financial year ended 31 December 2006.

Investment Committee The Investment Committee is responsible for reviewing and monitoring the progress report for Corporate and Kumpulan Wang Bersama investments and also new investment proposals. The Committee comprises two (2) Independent Non-Executive Directors, two (2) Non- Independent Directors of the Board and two (2) Independent persons.

The Chairperson of the Committee is Datin Aminah Pit Abd Raman. Eleven (11) Meetings were held during the financial year ended 31 December 2006.

Personnel & Integrity Committee

The Personnel & Integrity Committee comprises of one (1) Independent Non-Executive Directors and two (2) Non-Independent Non-Executive Directors of the Board.

The Chairman of the Committee is Dato’ Mahadi Mohd Ibrahim. Three (3) Meetings were held during the financial year ended 31 December 2006.

Tender Committee The Tender Committee is responsible for the procurement for works/service/supply amounting to RM400,000/- and above. The Committee comprises one (1) Non-Independent Non-Executive Directors and one (1) Executive Director of the Board and two (2) Members of the Management.

The Chairman of the Committee is Haji Ab Gani Haron. The Committee did not meet during the financial year ended 31 December 2006.



Law Review Committee The Law Review Committee is set up to study the existing law that relates to the Company, which the Management may find if necessary to amend for the benefits of Company. The Committee comprises one (1) Executive Director of the Board and three (3) Members of the Management.

Executive Committee The Executive Committee is set up to facilitate and co-ordinate activities between the ARB and its subsidiaries. The Committee comprises one (1) Executive Director of the Board and three (3) Members of the Management.

The Chairman of the Committee is Dato’ Ahmad Rodzi Pawanteh. The Committee did not meet during the financial year ended 31 December 2006.

Syariah Advisory Council The Syariah Advisory Council comprises of two (2) Independent Non-Executive Director of the Board and three (3) Independent persons.

The Chairman of the Council is Dato’ Seri Haji Harussani Haji Zakaria. Two (2) Meetings were held during the financial year ended 31 December 2006.

Quotation Committee The Quotation Committee’s term of references amongst others are responsible for procurement for works/ service/supply costing between RM50,000/- to below RM200,000/- but for amounts below RM50,000/- they have to follow the latest Treasury Circular. Sale by tender of assets under administration of ARB pursuant to order of court/land office notwithstanding the amount of sale is also under its jurisdiction.

The Committee comprises one (1) Executive Director of the Board and four (4) Members of the Management. The Chairman of the Committee is Dato’ Ahmad Rodzi Pawanteh. There was no Meeting held during the financial year ended 31 December 2006.


Fees

Other emoluments

Total

333,250

693,670

1,026,920




SUPPLY OF INFORMATION

Prior to each Board Meeting, all Directors receive an agenda and a full set of Board Papers for each agenda item to be discussed. These are issued well in advance to enable the Directors to obtain further explanations, where necessary, in order to be briefed properly before the Meeting. The Board is kept updated on the Company's financial performance and activities.

All Directors have access to the advice and services of the Company Secretary who are responsible in advising the Board on the procedures for the Meeting and the implementation of governance procedures.

APPOINTMENTS TO THE BOARD

The Minister of Finance (Inc) nominated all appointments to the Board.

RE-ELECTION

No Directors are subject to retirement and re-election by rotation in the Annual General Meeting.

DIRECTORS' REMUNERATION

The details of the remuneration of Directors for the financial year ended 31 December 2006 are as follows:-

FINANCIAL REPORTING

The Directors ensured that the financial year end statement is prepared in accordance with the applicable approved standards as well as Companies Act 1965.

Directors’remuneration 2006 (RM)

INTERNAL CONTROL

The Directors acknowledge their responsibilities for the Company’s system of internal control and the need to review them regularly.



RELATIONSHIP WITH THE AUDITORS

The Directors have established formal and transparent relationship with its Auditors for maintaining an appropriate relationship with the Company’s Auditors. The Audit Committee meets with the external auditors without the presence of management at least once a year to discuss the year end financial statements prior to the presentation to the Board of Directors for approval.


Woven by loca l women in the coasta l s tates of

Terengganu and Kelantan, a piece of songket 'sampin '

may take up to 3 months to complete depending on

the complexity of the des ign. Songket ' sampin ' i s

historically used during formal ceremonies and worn

around the waist by Sultans and his ministers as part of

their formal attires.

Kain songket

38 - 41directors’ report38 - 41directors’ report

42statement by directors42statement by directors

42statement declaration42statement declaration

43 - 44report of the auditors43 - 44report of the auditors

45income statements45income statements

46 - 47balance sheets46 - 47balance sheets

48 - 49statement of changes in equity48 - 49statement of changes in equity

50 - 51cash flow statements50 - 51cash flow statements

52 - 91notes to the financial statements52 - 91notes to the financial statements

financial statementsfinancial statements

The amount of dividends paid or declared by the Company since 1 January 2006 were as follows:

In respect of the financial year ended 31 December 2005 as shown in the Directors’ report for that year:

Final gross tax exempt dividend of 10.00 sen per share on ordinary shares, paid on 28 December 2006

The Directors recommend a final tax exempt dividend of 20 sen per share amounting to RM1,200,000 in respect of the financial year ended 31 December 2006, subject to the approval of members at the forthcoming Annual General Meeting of the Company.

600,000

RM


financial statements

The Directors have pleasure in submitting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 December 2006.

Net profit after tax- Equity holders of the Company- Minority interest

41,983,534983,195

GroupRM

36,181,717-

CompanyRM

The principal activities of the Company consist of administrating estates of deceased persons, acting as trustee for minors, public and unit trust schemes, and the management of trust funds.

The principal activities of the subsidiaries are set out in Note 13 to the financial statements.

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

directors’ report

PRINCIPAL ACTIVITIES

FINANCIAL RESULT

DIVIDENDS

42,966,729 36,181,717



All material transfers to or from reserves and provisions during the financial year are shown in the financial statements.

RESERVES AND PROVISIONS

During and at the end of the financial year ended 31 December 2006, no arrangements subsisted to which the Company is a party, with the object or objects of enabling Directors of the Company to acquire benefits by means of acquisition of shares in, or debentures of the Company or any other body corporate.

Since the end of previous financial year, no Director has received or become entitled to receive a benefit (other than benefits disclosed as Directors' emoluments in Note 7 to the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

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

Dato’ Haji Dusuki bin Haji AhmadDato’ Ahmad Rodzi bin PawantehShamsuddin bin Haji TahirHaji Ab. Gani bin HaronDatin Aminah binti Pit Abd RamanDatuk Mohd Hashim bin HassanPuan Azailiza binti Mohd Ahad (appointed on 30.6.2006)Puan Sharifah Adlina binti Syed Abdullah (appointed on 1.8.2006)Dato’ Abdullah Sani bin Ab Hamid (appointed on 8.2.2007)Datuk Mohamed Bazain bin Haji Idris (resigned on 30.6.2006)Haji Ahmad Kamal bin Abdullah Al-Yafii (resigned on 1.8.2006)Dato’ Mahadi bin Mohd Ibrahim (resigned on 27.12.2006)

DIRECTORS

DIRECTORS' BENEFITS

directors’ report (continued)

The Directors regard the Minister of Finance (Incorporated) as the holding corporation.

HOLDING CORPORATION

According to the register of Directors' shareholdings, none of the Directors have direct or indirect interest in the Company and its related corporations at the end of the financial year.

DIRECTORS' INTERESTS IN SHARES



At the date of this report, the Directors are not aware of any circumstances:

(a) which would render the amounts written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the Group and Company inadequate to any substantial extent; or

(b) which would render the values attributed to current assets in the financial statements of the Group and Company misleading; or

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

Before the income statements and balance sheets were made out, the Directors took reasonable steps:

(a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and

(b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their values as shown in the accounting records of the Group and Company have been written down to an amount which they might be expected so to realise.


STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS

No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and Company to meet its obligations when they fall due.

At the date of this report, there does not exist:

(a) any charge on the assets of the Group and Company which has arisen since the end of the financial year which secures the liability of any other person; or

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




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

Signed on behalf of the Board of Directors in accordance with their resolution dated 28 March 2007.

At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which would render any amount stated in the financial statements misleading.

In the opinion of the Directors:

AUDITORS

DATO’ HAJI DUSUKI BIN HAJI AHMAD HAJI AB. GANI BIN HARONCHAIRMAN DIRECTOR

(a) the results of the operations of the Group and Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature; and

(b) there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Group and Company for the financial year in which this report is made.



statement by directors

We, Dato’ Haji Dusuki bin Haji Ahmad and Haji Ab. Gani bin Haron, two of the Directors of Amanah Raya Berhad, state that, in the opinion of the Directors, the financial statements set out on pages 45 to 91, are drawn up so as to give a true and fair view of the state of affairs of the Group and Company as at 31 December 2006 and of the results and cash flows of the Group and Company for the financial year ended on that date in accordance with MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities and provisions of the Companies Act 1965.

Signed on behalf of the Board of Directors in accordance with their resolution dated 28 March 2007.

DATO’ HAJI DUSUKI BIN HAJI AHMAD HAJI AB. GANI BIN HARONCHAIRMAN DIRECTOR

Kuala Lumpur

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

statement declaration

I, Dato’ Ahmad Rodzi bin Pawanteh, the Director primarily responsible for the financial management of Amanah Raya Berhad, do solemnly and sincerely declare that the financial statements set out on pages 45 to 91 are, in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act 1960.

DATO’ AHMAD RODZI BIN PAWANTEH

Subscribed and solemnly declared by the abovenamed Dato’ Ahmad Rodzi bin Pawanteh, at Kuala Lumpur in Malaysia on 28 March 2007, before me.

COMMISSIONER FOR OATHS

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



TO THE MEMBERS OF AMANAH RAYA BERHAD

report of the auditors

(a) the financial statements have been prepared in accordance with the provisions of the Companies Act, 1965, and the MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities so as to give a true and fair view of:

and

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

The names of the subsidiaries of which we have not acted as auditors are indicated in Note 13 to the financial statements. We have considered the financial statements of these subsidiaries and the auditors’ reports thereon.

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

We have audited the financial statements set out on pages 45 to 91. These financial statements are the responsibility of the Company's Directors. It is our responsibility to form an independent opinion, based on our audit, on these financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this report.

We conducted our audit in accordance with approved auditing standards in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

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

(ii) the state of affairs of the Group and Company as at 31 December 2006 and of the results and cash flows of the Group and Company for the financial year ended on that date;



TO THE MEMBERS OF AMANAH RAYA BERHAD (Company No. 344986 V) (continued)

report of the auditors

PRICEWATERHOUSECOOPERS MOHAMMAD FAIZ BIN MOHAMMAD AZMI(No. AF: 1146) (No. 2025/03/08 (J))Chartered Accountants Partner of the firm

Kuala Lumpur28 March 2007

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any adverse comment made under subsection (3) of Section 174 of the Act.



FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006

Group Company

2006Note

4

–

5

8

6

2005 2006 2005RM RM RM RM

Revenue

Other operating income

Operating Expenses

Personnel Costs

Administrative expenses

Profit from ordinary activities before tax

Other operating expenses

Financial expenses

Net profit after tax

Attributable to:Equity holders of the CompanyMinority interest

Earnings per share attributable toequity holders of the Company

The accompanying notes on pages 52 to 91 form an integral part of the financial statements.

Taxation

9

94,282,837 54,356,137 79,193,540 52,936,384

15,589,860 7,817,320 15,927,712 9,046,120

(20,643,528) (15,002,726) (34,354,996) (23,076,629)

(29,312,598) (21,195,300) (21,675,220) (18,736,242)

(5,196,135) (1,726,399) (2,030,551) (1,040,017)

(6,810,098) (5,227,666) (1,808,362) (4,183,031)

(6,727,973) - (3,356,468) -

41,182,365 19,021,366 31,895,655 14,946,585

1,784,364 (5,239,682) 4,286,062 (4,548,970)

42,966,729 13,781,684 36,181,717 10,397,615

41,983,534 13,004,414 36,181,717 10,397,615 983,195 777,270 - -

42,966,729 13,781,684 36,181,717 10,397,615

699.7 216.7

income statements

balance sheets



AS AT 31 DECEMBER 2006

Group Company

2006Note 2005 2006 2005RM RM RM RM

NON CURRENT ASSETS

Property, plant and equipment 10 13,843,034 7,433,660 9,186,641 6,653,200Intangible assets 11 674,827 - - -Land held for property development 12 - 184,591 - -Investment in subsidiaries 13 - - 32,349,891 8,649,880Long-term investments 14 25,686,957 126,000 126,000 126,000Financing receivables 15 69,346,950 7,631,190 - -Goodwill on consolidation 16 2,713,537 2,713,537 - -Deferred tax assets 17 444,250 1,425,405 250,796 1,261,293Receivables 19 216,374 - - -

112,925,929 19,514,383 41,913,328 16,690,373

CURRENT ASSETS

Investments 18 72,507,161 18,677,657 60,559,381 16,926,132Receivables 19 48,961,566 31,171,421 74,976,137 38,702,135Tax recoverable 17,331,460 7,182 16,795,821 -Deposits, cash and bank balances 20 157,698,576 37,611,974 65,368,656 3,565,464

296,498,763 87,468,234 217,699,995 59,193,731

LESS: CURRENT LIABILITIES

Other payables and accruals 21 51,786,037 35,579,289 13,117,107 9,648,928Post-employment benefit obligations 22 181,434 4,854,567 181,434 4,854,567Hire purchase creditors 23 102,589 96,994 - -Provision for taxation 1,510,425 983,798 - 647,544

53,580,485 41,514,648 13,298,541 15,151,039

NET CURRENT ASSETS 242,918,278 45,953,586 204,401,454 44,042,692



AS AT 31 DECEMBER 2006 (continued)

Group Company

2006Note 2005 2006 2005RM RM RM RM

LESS: NON CURRENT LIABILITIES

Borrowing 24 250,000,000 - 150,000,000 -Hire purchase creditors 23 179,986 282,575 - -Deferred tax liabilities 17 76,856 20,869 - -

250,256,842 303,444 150,000,000 -

105,587,365 65,164,525 96,314,782 60,733,065

CAPITAL AND RESERVEShare capital 25 6,000,002 6,000,002 6,000,002 6,000,002Retained earnings 26 98,533,732 57,150,198 90,314,780 54,733,063

104,533,734 63,150,200 96,314,782 60,733,065

Minority interest 1,053,631 2,014,325 - -

Total shareholders’ fund 105,587,365 65,164,525 96,314,782 60,733,065

NET TANGIBLE ASSETSPER SHARE (RM) 16.86 10.07

NET CURRENT ASSETS 242,918,278 45,953,586 204,401,454 44,042,692


balance sheets (continued)



consolidated statement of changes in equity


Attributable to equity holdersof the company

ShareCapital

RetainedEarnings Total

MinorityInterest Total

At 1 January 2005 6,000,002 44,745,784 50,745,786 - 50,745,786

Acquisition of subsidiary - - - 1,237,055 1,237,055company

Net profit for the financial - 13,004,414 13,004,414 777,270 13,781,684year

Dividends paid during the - (600,000) (600,000) - (600,000)financial year

At 31 December 2005 6,000,002 57,150,198 63,150,200 2,014,325 65,164,525

At 1 January 2006 6,000,002 57,150,198 63,150,200 2,014,325 65,164,525

Net profit for the financial - 41,983,534 41,983,534 983,195 42,966,729year

Transactions with minority - - - (1,943,889) (1,943,889)interest

Dividends paid during the - (600,000) (600,000) - (600,000)financial year

At 31 December 2006 6,000,002 98,533,732 104,533,734 1,053,631 105,587,365

The accompanying notes on pages 52 to 91 form an integral part of the financial statements

RMRM RM RM RM




Issued and fully paid ordinaryshares of RM1 each

Share Capital Retained Earnings TotalRM RM RM

At 1 January 2005 6,000,002 44,935,448 50,935,450

Net profit for the financial year - 10,397,615 10,397,615

Dividends paid during the financial year - (600,000) (600,000)

At 31 December 2005 6,000,002 54,733,063 60,733,065

At 1 January 2006 6,000,002 54,733,063 60,733,065

Net profit for the financial year - 36,181,717 36,181,717

Dividends paid during the financial year - (600,000) (600,000)

At 31 December 2006 6,000,002 90,314,780 96,314,782

Company


company statement of changes in equity



cash flow statements


CASH FLOWS FROMOPERATING ACTIVITIESProfit from ordinary activitiesbefore tax 41,182,365 19,021,366 31,895,655 14,946,585Adjustments for:Post-employment benefit obligations - 1,674,685 - 1,674,685

Depreciation on property,plant and equipment 2,331,347 2,878,892 1,972,115 2,651,651

Property, plant and equipment written off - 1,226,955 - 1,240,921

(Gain)/loss on disposal of property,plant and equipment (6,773) 29,375 (6,773) -

Amortisation of intangible assets 90,175 - - -

Gain on disposal of land heldfor property development - (770,651) - -

Net accretion of discount (1,373,985) (37,155) (1,373,985) (37,155)

Write off of investments 3,194,418 - 3,194,418 -

Interest income (3,437,263) (1,971,539) (2,558,248) (1,262,540)

Write back of impairment of subsidiaries - - (300,012) -

Dividend income (188,103) (530,570) (5,132,103) (2,552,725)

Allowance for diminution inalue of investments 11,388 624,726 11,388 624,726

Gain from disposal of investments (228,964) (62,450) (134,195) (62,450)

Interest expense on long term borrowings 6,727,973 - 3,356,468 -

Hire purchase interest expense 17,366 5,223 - -

Operating profit before workingcapital changes 48,319,944 22,088,857 30,924,728 17,223,698

Increase in receivable (1,080,619) (15,853,469) (38,044,154) (22,970,054)

Increase in payables 8,242,162 3,763,061 684,488 5,326,768

Cash generated from operations 55,481,487 9,998,449 (6,434,938) (419,588)

Retirement benefits paid (4,673,133) (406,717) (4,673,133) (406,717)

Hire purchase interest paid (17,366) (5,223) - -

Tax paid (14,375,451) (5,617,219) (8,909,988) (4,384,059)

Net cash inflow/(outflow) fromoperating activities 36,415,537 3,969,290 (20,018,059) (5,210,364)

Group Company

2006 2005 2006 2005RM RM RM RM




FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006 (continued)

CASH FLOWS FROMOPERATING ACTIVITIES

Acquisition of subsidiary 27 - (3,861,346) - (5,600,000)

Additional investment in subsidiary - - (23,400,000) (700,000) Net purchases of investments (80,993,318) (4,305,953) (45,330,875) (4,111,453)

Proceeds from disposal/(purchase) ofland held for property development - 1,090,302 - -

Purchase of property, plant andequipment (8,198,538) (2,858,037) (4,652,437) (2,644,341)

Purchase of intangible assets (765,002) - - -

Proceeds from disposal of property, plant and equipment 147,644 39,744 147,644 -

Disbursement of Syariah financing (83,382,900) (10,000,000) - - Repayment of Syariah financing 3,627,385 509,763 - -

Interest received 4,292,137 1,682,341 2,520,521 891,937

Dividends received 347,927 405,622 5,578,557 226,753

Net cash outflow from investing activities (164,924,665) (17,297,564) (65,136,590) (11,937,104)

CASH FLOWS FROMFINANCING ACTIVITIES

Repayment of hire purchase creditors (96,994) (23,366) - -

Net drawdown of term loan 250,000,000 - 150,000,000 - Interest paid (5,945,258) - (2,442,159) -

Dividends paid (2,543,888) (600,000) (600,000) (600,000)

Net cash outflow from financing activities 241,413,860 (623,366) 146,957,841 (600,000)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 112,904,732 (13,951,640) 61,803,192 (17,747,468)

CASH AND CASH EQUIVALENTS ATBEGINNING OF THE FINANCIAL YEAR 10,808,636 24,760,276 3,565,464 21,312,932

CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL YEAR 20 123,713,368 10,808,636 65,368,656 3,565,464

Group Company

2006Note 2005 2006 2005RM RM RM RM

cash flow statements (continued)


The Group’s activities expose it to a variety of financial risks, including interest rate risk, market risk, liquidity and cash flow risk. The Group’s overall financial risk management objective is to ensure that the Group creates value for its shareholders. The Group focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on financial performance of the Group. Financial risk management is carried out through risk reviews, internal control systems and adherence to Group’s financial risk management policies. The Board regularly reviews these risks and approves the treasury policies, which covers the management of these risks.

Interest rate riskInterest rate risk refers to risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Group is not exposed to any significant interest rate risk as the majority of the financial assets and liabilities of the Group are non-interest sensitive, except for the fixed income investments and deposits which are placed with licensed banks at market interest rates.

Market riskMarket risk is defined as risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual security of its issuer or factors affecting all securities traded in the market. Market risk exposure arises from investments in quoted shares as the value of the investments will fluctuate as a result of changes in equity market prices.

The principal activities of the Company consist of administrating estates of deceased persons, acting as trustee for minors, public and unit trust schemes, and the management of trust funds.

The principal activities of the subsidiaries are set out in Note 13 to the financial statements.

The number of employees at year end were 546 (2005: 423) employees in the Group and 446 (2005: 377) employees in the Company respectively.

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and not listed on Bursa Malaysia Berhad.

The address of the registered office of the Company is Tingkat 15, Wisma AmanahRaya, No. 2, Jalan Ampang, 50450 Kuala Lumpur.

1. GENERAL INFORMATION

2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

notes to the financial statements


31 DECEMBER 2006



Credit riskCredit and counterparty risk is defined as the possibility of losses due to an unexpected default or due to a deterioration of the counterparty’s credit-worthiness. The Group manages its credit risks by placing its deposits with major financial institutions in Malaysia with good financial standing and by requiring guarantors for staff loans.

Liquidity and cash flow riskLiquidity and cash flow risk relates to risk that an enterprise will encounter difficulty in raising funds to meet commitments associated with financial instruments. Prudent liquidity risk management implies maintaining marketable securities and sufficient cash for operation and ability to close our market positions. The Group aims at mitigating liquidity risk by adopting a prudent policy in accepting funds and maintaining flexibility in funding by keeping the cash in the short term money market and marketable securities.

The following accounting policies have been used consistently in dealing with items that are considered material in relation to the financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

notes to the financial statements (continued)

31 DECEMBER 2006

(a) Basis of preparationThe financial statements of the Group and the Company have been prepared in accordance with the Financial Reporting Standards, the MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities and the provisions of the Companies Act, 1965. The financial statements have been prepared under the historical cost convention except as disclosed in the summary of significant accounting policies.

The preparation of financial statements in conformity with MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. It also requires Directors to exercise their judgment in the process of applying the Company’s accounting policies. Although these estimates and judgment are based on Directors’ best knowledge of current events and actions, actual results may differ.

Trust assets held in the name of the Company and its predecessor organisation are not included in these financial statements. The activities and assets of the various unit trusts and other funds in which the Company is the trustee are not included in these financial statements as they are separate entities.

2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


(a) Basis of preparation (continued)

(i) Standards, amendments to published standards and interpretations that are effective

The new accounting standards, amendments to published standards and IC Interpretations to existing standards effective for the Group’s and the Company’s financial period beginning on or after 1 January 2006 are as follows:

• FRS 3 Business Combinations• FRS 101 Presentation of Financial Statements• FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors• FRS 110 Events After the Balance Sheet Date• FRS 116 Property, Plant and Equipment• FRS 121 The Effect of Changes in Foreign Exchange Rates• FRS 127 Consolidated and Separate Financial Statements• FRS 131 Interests in Joint Ventures• FRS 132 Financial Instruments: Disclosure and Presentation• FRS 136 Impairment of Assets• FRS 138 Intangible Assets• FRS 140 Investment Property

With the exception of FRS 136 where the Company had classified software as intangible assets, the adoption of the above new accounting standards, amendments to published standards and interpretations to existing standards do not have any significant financial impact on the results of the Group and the Company.

(ii) Standards, amendments to published standards and interpretations to existing standards that are not yet effective.

The new standards, amendments to published standards and interpretations that are mandatory for the Group and the Company’s financial periods beginning on or after 1 January 2007 or later periods, but which the Group and the Company has not early adopted, are as follows:

FRS 117 Leases (effective for accounting periods beginning on or after 1 October 2006). This standard requires the classification of leasehold land as prepaid lease payments. The Group and the Company will apply this standard from financial periods beginning on or after 1 January 2007.

FRS 124 Related Party Disclosures (effective for accounting periods beginning on or after 1 October 2006). This standard will affect the identification of related parties and some other related party disclosures. The Group and the Company will apply this standard from financial periods beginning on or after 1 January 2007.

•

•


31 DECEMBER 2006




31 DECEMBER 2006

(a) Basis of preparation (continued)

(ii) Standards, amendments to published standards and interpretations to existing standards that are not yet effective (continued)

FRS 139 Financial Instruments: Recognition and Measurement (effective date yet to be determined by Malaysian Accounting Standards Board). This new standard establishes principles for recognising and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. Hedge accounting is permitted only under strict circumstances. The Group and the Company will apply this standard when effective.

•

(b) SubsidiariesSubsidiaries are those corporations, partnerships or other entities (including special purpose entities) in which the Group has the power to exercise control over the financial and operating policies so as to obtain benefits from their activities, generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

Investment in subsidiaries are stated at cost less accumulated impairment losses. Where there is an indication of impairment, the carrying amount of the investment is assessed. A write down is made if the carrying amount exceeds its recoverable amount.

The consolidated financial statements include the financial statements of the Company and all its subsidiaries made up to the end of the financial year.

Subsidiaries are consolidated using the purchase method of accounting.

Under the purchase method of accounting, the results of subsidiaries acquired or disposed of during the year are included from the date of acquisition up to the date of disposal. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired at the date of acquisition is reflected as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.





(b) Subsidiaries (continued)Minority interest represents that portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent. It is measured at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities at the acquisition date and the minorities’ share of changes in the subsidiaries’ equity since that date.

All material transactions, balances and unrealised gains between group companies are eliminated and the consolidated financial statements reflect external transactions only. Where necessary, accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group.

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

(c) Property, plant and equipmentProperty, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Building 50 yearsComputer equipment 3 yearsMotor vehicles 5 yearsOffice equipment, furniture and fittings 5 to 10 yearsRenovations 3 years or over the lease period whichever is shorter

Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each balance date.

Depreciation on assets under construction commences when the assets are ready for their intended use.


31 DECEMBER 2006




31 DECEMBER 2006

(c) Property, plant and equipment (continued)The carrying amounts of property, plant and equipment are reviewed at each balance sheet date to determine whether there is any indication of impairment. An impairment loss is recognised in the income statements whenever the carrying amount of an item of property, plant and equipment exceeds its recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in profit/(loss) from operations.

Repairs and maintenance are charged to the income statement during the period in which they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Group.

(d) Other investmentInvestment in golf club membership is shown at cost and an allowance for diminution in value is made where, in the opinion of the Directors, there is a decline other than temporary in the value of such investment. Where there has been a decline other than temporary in the value of an investment, such a decline is recognised as an expense in the financial period in which the decline is identified.

(f) ReceivablesReceivables are carried at anticipated realisable values. Known bad debts are written off in the period in which they are identified and specific allowance is made for any considered to be doubtful of collection. An estimate is made for doubtful debts based on a review of all outstanding amounts at the financial year end.

(e) InvestmentsThe investments are carried at lower of cost and market value. Market value is calculated by reference to quoted selling prices at the close of business on the balance sheet date.

Increase/decrease in the carrying amounts of investments are credited/charged to the income statement.

The carrying value of fixed income securities are valued at cost adjusted for amortisation of premium or accretion of discount over their par values at the time of acquisition on an effective yield method. The premium or discount is amortised or accreted over the remaining term of the securities from the date of acquisition.





(g) Income taxesCurrent tax expense is determined according to the tax laws of each jurisdiction in which the Group operates and includes all taxes based upon the taxable profits.

Deferred tax is recognised in full, using the liability method, on temporary differences arising between the amounts attributed to assets and liabilities for tax purposes and their carrying amounts in the financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences or unused tax losses can be utilised.

Deferred income tax is recognised on temporary differences arising on investment in subsidiaries except where the timing of the reversal of the temporary difference can be controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax is determined using tax rates (and tax laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

(h) Cash and cash equivalentsFor the purposes of the cash flow statement, cash and cash equivalents comprise cash in hand and bank balances, demand deposits, bank overdraft and short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(i) Hire purchase payablesAssets purchased under hire purchase agreements are capitalised as property, plant and equipment and depreciated in accordance with the policy set out in Note 3(c) above. The corresponding obligations due under the hire purchase agreements after deducting finance charges are included as hire purchase payables while finance charges are charged to the income statement on a straight line basis over the term of the respective hire purchase agreements.


31 DECEMBER 2006

(i) GoodwillGoodwill arises on business combinations when the cost of acquisition exceeds the fair value of the Company’s share of the identifiable assets, liabilities and contingent liabilities acquired. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.




31 DECEMBER 2006

(j) Impairment of assetsProperty, plant and equipment and other non-current assets (except for amounts due from subsidiaries, associates and deferred tax assets) are reviewed for impairment losses whenever events or changes in circumstances (for depreciable non-current assets) indicate that the carrying amount may not be recoverable. Impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of an asset’s net selling price and value in use.

For the purposes of assessing impairment, the recoverable amount is determined on an identified asset basis or on the cash generating unit (“CGU”) to which the asset belongs to. An assets recoverable amount is the higher of an asset’s or CGU’s fair value less cost to sell or its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax weighted average cost of capital. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

The impairment loss is charged to the income statement unless it reverses a previous revaluation in which case it is charged to the revaluation surplus. Any subsequent increase in recoverable amount is recognised in the income statement unless it reverses an impairment loss on a revalued asset in which case it is taken to revaluation surplus.

Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of an asset other than goodwill is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.

(k) Intangible assets


(i) Goodwill (continued)Goodwill is allocated to cash-generating units (‘CGU’) for the purpose of impairment testing. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment testing is performed annually and it is done by comparing the present value of the CGU’s projected cash flows against the carrying amount of its net assets which include the allocated goodwill. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the business combination in which the goodwill arose. The Group and the Company allocates goodwill to each business units (Note 16).

(ii) Other intangible assetsAcquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

Intangible assets that have an indefinite useful life, or are not yet ready for use, are tested for impairment annually. This impairment test may be performed at any time during the year, provided it is performed at the same time every year. An intangible asset recognised during the current period is tested before the end of the current year.




(k) Intangible assets (continued)

(i) DescriptionA financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity instrument of another enterprise.

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

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another enterprise, or the exchange of financial instruments with another enterprise under conditions that are potentially unfavourable.

(ii) Financial instruments recognised on the balance sheetThe particular recognition adopted for financial instruments recognised on the balance sheet is disclosed in the individual policy statements associated with each item.

(l) Financial instruments


31 DECEMBER 2006

(iii) Fair value estimation for disclosure purposesThe fair values, less any estimated credit adjustments for financial assets and liabilities with a maturity of more than one year are estimated using a variety of methods and assumptions that are based on market conditions existing at each balance sheet date. Other techniques, such as estimated discounted value of future cash flows, are used where possible, to determine the fair value for the remaining financial instruments. In particular, the fair value of financial liabilities is estimated by discounting the future cash flows at the current market interest rate available to the Group for similar financial instruments.

The face values of financial assets (less any estimated credit adjustments) and financial liabilities with a maturity period of less than one year are assumed to approximate their fair values.



(l) Financial instruments (continued)


31 DECEMBER 2006

(i) Short term employee benefitsWages, salaries, paid annual leave and sick leave, bonuses, and non-monetary benefits are accrued in the financial year in which the associated services are rendered by employees of the Group.

(ii) Defined contribution plansThe Group’s contributions to defined contribution plans are charged to the income statement in the period to which they relate. Once the contributions have been paid, the Group has no further payment obligations.

(iii) Defined benefit plansThe liability in respect of a defined benefit plan is the present value of the defined benefit obligation at the balance sheet date minus the fair value of plan assets, together with adjustments for actuarial gains/losses and past service cost. The Group determines the present value of the defined benefit obligation and the fair value of any plan assets with sufficient regularity such that the amounts recognised in the financial statements do not differ materially from the amounts that would be determined at the balance sheet date.

The defined benefit obligation, calculated using the projected unit credit method, is determined by independent actuaries, considering the estimated future cash outflows using market yields at balance sheet date of government securities which have currency and terms to maturity approximating the terms of the related liability.

(m) Employee benefits




4. REVENUE


(n) Revenue recognitionRevenue is recognised upon performance of services and net of service taxes, and after eliminating sales within the Group.

Interest income from fixed income securities are recognised on an accrual basis.

Dividends from quoted investments are recognised on the ex-dividend date.

Realised gain and loss on sale of quoted investments is arrived at after accounting for cost of investments, determined on the weighted average cost method.

Realised gain and loss on sale of fixed income securities is measured by the difference between the net disposal proceeds and the carrying amounts of the investments.

(o) DividendsDividends on ordinary shares are recognised as liabilities when proposed or declared before the balance sheet date. A dividend proposed or declared after the balance sheet date, but before the financial statements are authorised for issue, is not recognised as a liability at the balance sheet date.


31 DECEMBER 2006

Revenue from:- trust operation 25,615,547 18,584,326 25,615,547 18,584,326- unit trust operation 10,339,751 8,229,496 10,322,259 8,229,496- estate and administration operation 10,257,133 10,062,562 10,257,133 10,062,562- legal operation 1,038,490 392,939 1,038,490 392,939

Management fee 33,517,210 16,212,831 31,960,111 15,667,061

Gain on disposal of land held forproperty development - 770,651 - -

Financing income 6,159,673 - - -

Custodian fee 1,846,103 57,019 - -

Building management fee 5,508,930 46,313 - - 94,282,837 54,356,137 79,193,540 52,936,384

Group Company

2006 2005 2006 2005RM RM RM RM

Details of the defined benefit plan of the Group and Company are set out in Note 22.




31 DECEMBER 2006

5. PERSONNEL COSTS

Salaries, wages and bonuses 19,792,180 14,810,066 13,309,385 12,834,734Pension costs - defined contribution plan 3,051,821 2,024,106 2,176,361 1,761,768Pension costs - defined benefit plans - 1,674,685 - 1,674,685Other staff related costs 6,468,597 2,686,443 6,189,474 2,465,055 29,312,598 21,195,300 21,675,220 18,736,242

Group Company

2006 2005 2006 2005RM RM RM RM

6. PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX

Group Company

2006 2005 2006 2005RM RM RM RM

Directors’ remuneration (Note 7) 1,026,920 1,028,041 901,970 985,941Auditors' remuneration:- statutory audit 80,000 60,500 80,000 55,000- limited review 35,000 30,000 35,000 30,000

Depreciation 2,331,347 2,878,892 1,972,115 2,651,651

Amortisation on intangible asset 90,175 - - -

Property, plant and equipment written off - 1,226,955 - 1,240,921

(Gain)/Loss on disposal of property, plant and equipment (6,733) 29,735 (6,773) -

Loss on foreign exchange 116,233 - - -

(Gain)/loss from sale of investments (228,964) (62,450) (134,195) (62,450)

Write-off of investments 3,194,418 - 3,194,418 -

Allowance for diminution in valueof investments 11,388 624,726 11,388 624,726

Dividend income- subsidiaries - - (4,944,000) (2,519,292)- investments (188,103) (530,570) (188,103) (504,304)

Rental on premises 5,464,592 4,244,008 5,137,850 3,962,124

Reversal of impairment loss on subsidiaries - - (300,012) -

Interest income (3,437,263) (1,971,539) (2,558,248) (1,262,540)

Accretion of discount net amortisation of premium (1,373,985) (37,155) (1,373,985) (37,155)

Rental income (716,763) (198,000) - -

The aggregate amount of emoluments receivable by Directors of the Company during the year are as follows:

The explanation of the relationship between tax expense and profit from ordinary activities before tax is as follows:


7. DIRECTORS’ REMUNERATION



31 DECEMBER 2006

Directors remuneration: - fees 333,250 207,100 225,300 165,000 - other emoluments 693,670 820,941 676,670 820,941

1,026,920 1,028,041 901,970 985,941

Group Company

2006 2005 2006 2005RM RM RM RM

Profit from ordinary activities before tax 41,182,365 19,021,366 31,895,655 14,946,589

Tax calculated at the Malaysianstatutory tax rate of 28% (2005: 28%) 11,531,062 5,325,982 8,930,783 4,185,045

Tax effects of:- effect on differences in tax rate (1,287,974) - - -- expenses not deductible for tax purposes 3,389,157 856,746 3,233,678 910,832- income not subject to tax (8,063,380) (832,146) (8,060,481) (546,907)- effect on change in tax rate applicable to deferred tax (7,823) - (2,524) -- utilisation of previously unrecognised tax losses - (110,900) - -- current year’s tax loss and unutilised capital allowance not recognised 937,749 - - -- net over accrual in prior years (8,283,155) - (8,387,518) - Tax expense (1,784,364) 5,239,682 (4,286,062) 4,548,970

8. TAXMalaysian income tax:- current year 5,461,649 5,592,432 3,090,959 4,810,739- (over) / under accruals in prior years (8,283,155) 461,254 (8,387,518) 461,254

Deferred tax (Note 17)- current year 1,037,142 (352,750) 1,010,497 (261,769)- under recognition of deferred tax assets in prior year - (461,254) - (461,254)

(1,784,364) 5,239,682 (4,286,062) 4,548,970


31 DECEMBER 2006

During the financial year, the Company obtained approval from the Ministry of Finance for management fees earned from Kumpulan Wang Bersama to be tax exempted for a period of 16 years from 1 January 1996 to 31 December 2010. As a result, tax submissions for prior years will be revised, giving rise to a recovery of overpayment of tax in prior years amounting to approximately RM7.98 million.

8. TAX (continued)

The earnings per share for the Group has been calculated based on the net profit attributable to the equity holders of the Company of RM41,983,534 (2005: RM13,004,414) by the weighted average number of ordinary shares in issue during the financial year of 6,000,002 (2005: 6,000,002).

9. EARNINGS PER SHARE




10. PROPERTY, PLANT AND EQUIPMENT



31 DECEMBER 2006

GroupNet book valueAt 1 January2006 1,281,038 1,150,050 772,243 2,254,533 874,676 1,101,120 7,433,660Additions 3,258,828 1,612,837 489,643 1,164,753 741,658 1,620,646 8,888,365Write-offs and - (4,111) (137,607) (5,926) - - (147,644)disposalsReclassification - - - - 1,758,745 (1,758,745) -Depreciationcharge (36,863) (921,128) (304,008) (459,766) (609,582) - (2,331,347) At 31 December 2006 4,503,003 1,837,648 820,271 2,953,594 2,765,497 963,021 13,843,034 At 31 December 2006Cost 4,595,688 10,304,442 1,511,778 5,069,475 6,220,926 963,021 28,665,330Accumulateddepreciation (92,685) (8,466,794) (691,507) (2,115,881) (3,455,429) - (14,822,296) Net book value 4,503,003 1,837,648 820,271 2,953,594 2,765,497 963,021 13,843,034

At 31 December2005Cost 1,336,860 8,676,226 1,381,912 3,931,553 3,759,362 1,101,120 20,187,033Accumulateddepreciation (55,822) (7,526,176) (609,669) (1,677,020) (2,884,686) - (12,753,373) Net book value 1,281,038 1,150,050 772,243 2,254,533 874,676 1,101,120 7,433,660

Land andBuilding

RM

ComputerEquipment

RM

MotorVehicles

RM

OfficeEquipment,furniture& Fittings

RMRenovations

RM

Assets underConstructions

RMTotalRM



10. PROPERTY, PLANT AND EQUIPMENT (continued)

31 DECEMBER 2006

Company

Net book valueAt 1 January2006 1,281,038 961,519 235,117 2,199,730 874,676 1,101,120 6,653,200Additions - 865,859 327,960 1,098,098 740,637 1,620,646 4,653,200Write-offs anddisposals - (4,111) (137,607) (5,926) - - (147,644)Reclassification - - - - 1,758,745 (1,758,745) -Depreciationcharge (26,737) (792,640) (110,095) (433,086) (609,557) - (1,972,115)

At 31 December2006 1,254,301 1,030,627 315,375 2,858,816 2,764,501 963,021 9,186,641

At 31 December2006Cost 1,336,860 9,073,309 451,893 4,862,176 6,219,906 963,021 22,907,165Accumulateddepreciation (82,559) (8,042,682) (136,518) (2,003,360) (3,455,405) - (13,720,524) Net book value 1,254,301 1,030,627 315,375 2,858,816 2,764,501 963,021 9,186,641

At 31 December2005Cost 1,336,860 8,212,172 483,711 3,770,811 3,759,362 1,101,120 18,664,036Accumulateddepreciation (55,822) (7,250,653) (248,594) (1,571,081) (2,884,686) - (12,010,836) Net book value 1,281,038 961,519 235,117 2,199,730 874,676 1,101,120 6,653,200

Land andBuilding

RM

ComputerEquipment

RM

MotorVehicles

RM

OfficeEquipment,furniture& Fittings

RMRenovations

RM

Assets underConstructions

RMTotalRM





31 DECEMBER 2006

Group

2006 2005RM RM

11. INTANGIBLE ASSETS

12. LAND HELD FOR PROPERTY DEVELOPMENT

As cost:

Freehold land - 184,591

Computer software

Net book value

As at 1 January - -Additions during the financial year 765,002 -Disposals during the financial year - -Amortisation for the financial year (90,175) - As at 31 December 674,827 -

At 31 December

Cost 765,002 -Accumulated amortisation (90,175) - Net book value 674,827 -

Company

2006 2005RM RM

13. INVESTMENT IN SUBSIDIARIES

Unquoted shares, at cost 32,349,891 8,949,892Accumulated impairment losses - (300,012) 32,349,891 8,649,880

Group’seffective interest Principal activities

2006%

2005%

Subsidiaries held directlyby the Company

Amanah Raya Nominees 100 100 Nominees, agents or trustees (Tempatan) Sdn Bhd # for beneficial owners of stocks, shares, bank debentures, loan stocks and other securities

AmanahRaya Development Sdn 100 100 Property development andBhd (formerly known as ARB investment holding Hartanah Sdn Bhd) # Amanah Raya Unit Trust 100 100 Establishment and management Management Sdn Bhd (formerly of unit trust funds. known as Amanah Raya Asset Management Sdn Bhd) #

Amanah Raya Capital Sdn Bhd # 100 100 Finance and consumer credit

Amanah Raya (Labuan) Ltd # 100 100 Custodian and trust services (Offshore Company)

AmanahRaya – JMF Asset 70 70 Fund management and relatedManagement Sdn Bhd # services

AmanahRaya Investment Bank Ltd * 100 - Investment banking

Amanah Raya Nominees 100 100 Dormant(Asing) Sdn Bhd #

AmanahRaya Asset Management 100 - Dormant(Labuan) Ltd *

31 DECEMBER 2006

(a) During the financial year, the Company incorporated two new subsidiaries, Amanah Raya Investment Bank Ltd and Amanah Raya Asset Management (Labuan) Ltd, with paid up capital of RM10,000,000 and RM500,000 respectively on 5 December 2006 and 26 December 2006.

(b) On 26 July 2006 and 28 December 2006 respectively, the Company subscribed for 7,900,000 and 5,000,000 ordinary shares in Amanah Raya Unit Trust Management Sdn. Bhd. (formerly known as Amanah Raya Asset Management Sdn. Bhd.) for RM12,900,000.

13. INVESTMENT IN SUBSIDIARIES (continued)

Details of the subsidiaries, all of which are incorporated in Malaysia, are as follows:







31 DECEMBER 2006

13. INVESTMENT IN SUBSIDIARIES (continued)

14. LONG TERM INVESTMENTS

15. FINANCING RECEIVABLES

Group

2006RM

2005RM

The balances can be analysed as follows:

Gross amount receivables 118,212,908 11,806,666Less: Unearned income (28,967,156) (2,316,429)

89,245,752 9,490,237

Amount repayable within 12 months (Note 19) 19,898,802 1,859,047Amount repayable after 12 months 69,346,950 7,631,190

89,245,752 9,490,237

* Audited by PricewaterhouseCoopers, Malaysia.# Audited by firms other than PricewaterhouseCoopers, Malaysia and its affiliates.

Group’seffective interest Principal activities

2006%

2005%

Subsidiaries held indirectlyby the Company

AmanahRaya – JMF Nominees 100 100 Provision of nominees servicesTempatan Sdn. Bhd. # to local custodian clients

AmanahRaya – JMF Capital 100 100 Provision of managementSdn. Bhd. # consultancy, advisory and corporate financial services

AmanahRaya – JMF Margin 100 100 DormantSdn. Bhd. #

Investment in project development 25,560,957 - - -Golf club membership, at cost 126,000 126,000 126,000 126,000

25,686,957 126,000 126,000 126,000

Group Company

2006RM

2005RM

2006RM

2005RM

Impairment test for goodwillDuring 2006, impairment testing was performed on goodwill arising from the acquisition of ARJMF. The recoverable amount of ARJMF (for goodwill arising from business combination prior to 2006) is determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on the 2007 financial budgets approved by management, projected for 5 years based on 10.0% growth rate. The cash flow projection after the fifth year are extrapolated in perpetuity using a nominal long-term growth rate of 5.7% per annum which takes into consideration the current GDP and inflation. The discount rate used is 5.7% which reflects the specific risks relating to the ARJMF. Impairment will only arise if the discount rate increases to 94.1%.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in the balance sheet:



31 DECEMBER 2006

16. GOODWILL ON CONSOLIDATION

17. DEFERRED TAX

At 1 January 2,713,537 -

Acquisition of AmanahRaya - JMF Asset Management - 2,713,537Sdn. Bhd. (‘ARJMF’)

At 31 December 2,713,537 2,713,537

Group

2006RM

2005RM

Group Company

2006 2005 2006 2005RM RM RM RM

Deferred tax assets 444,250 1,425,405 250,796 1,261,293Deferred tax liabilities (76,856) (20,869) - -

367,394 1,404,536 250,796 1,261,293





31 DECEMBER 2006

17. DEFERRED TAX (continued)

Movement in deferred tax:

As at 1 January 1,404,536 590,532 1,261,293 538,270(Charged)/credited to income statement:- property, plant and equipment 211,879 57,188 311,682 69,273- post employment benefit (1,310,292) 355,031 (1,310,292) 355,031- allowance for diminution in value on investments (91,953) 258,563 (91,953) 258,563- net accretion of discounts (111,870) - (111,870) -- trade and other payables 248,589 (71,844) 195,936 (71,844)- others 16,505 215,066 (4,000) 112,000

(1,037,142) 814,004 (1,010,497) 723,023

As at 31 December 367,394 1,404,536 250,796 1,261,293

Components of deferred tax assets:

- post employment benefits 48,987 1,359,279 48,987 1,359,279- allowance for diminution in value on investments 300,739 392,692 300,739 392,692- trade and other payables 610,714 183,790 379,725 183,790- others 206,548 295,395 108,000 112,000

Before offsetting 1,166,988 2,231,156 837,451 2,047,761Offsetting (722,738) (805,751) (586,655) (786,468)

After offsetting 444,250 1,425,405 250,796 1,261,293

Components of deferred tax liabilities

- property, plant and equipment (609,682) (826,620) (474,786) (786,468)- net accretion of discounts (111,869) - (111,869) -- others (78,043) - - -

Before offsetting (799,594) (826,620) (586,655) (786,468)Offsetting 722,738 805,751 586,655 786,468

After offsetting (76,856) (20,869) - -

Group Company

2006RM

2005RM

2006RM

2005RM

The amount of deductible temporary differences and unused tax losses (both of which have no expiry date) in respect of subsidiaries for which no deferred tax is recognised in the balance sheet are as follows:



31 DECEMBER 2006

18. INVESTMENTS

Unabsorbed tax losses 3,419,355 13,335Unutilised capital allowances 67,620 -Deductible temporary differences 9,869 -

3,496,844 13,355

Group

2006RM

2005RM

Group Company

2006 2005 2006 2005RM RM RM RM

Investments in quoted shares 487,015 410,473 487,015 410,473Investments in fixed income securities 57,243,187 8,705,050 57,243,187 8,705,050Investments in institutional trust 11,947,780 9,580,386 - 7,828,861Investments in unit trust 2,433,099 - 2,433,099 -

72,111,081 18,695,909 60,163,301 16,944,384Net accretion of discount/(amortisation of premium) 396,080 (18,252) 396,080 (18,252) 72,507,161 18,677,657 60,559,381 16,926,132

19. RECEIVABLES

17. DEFERRED TAX (continued)

CurrentTrade receivables 23,339,739 20,769,808 19,147,390 19,398,010Less: Allowance for trade receivables (400,000) (400,000) (400,000) (400,000)

22,939,739 20,369,808 18,747,390 18,998,010Amounts receivable from subsidiaries - 51,081,975 12,093,092Financing receivables(Note 15) 19,898,802 1,859,047 - -Deposits 565,450 2,663,129 400,296 2,562,328Staff loans and advances 718,202 840,394 585,446 559,849Interest receivable 524,807 438,098 475,825 438,098Other receivables 4,314,566 5,000,945 3,685,205 4,050,758

48,961,566 31,171,421 74,976,137 38,702,135Non-currentDeposit with Securities Commission 216,374 - - -

All receivables are denominated in Ringgit Malaysia


Staff loans and advances are analysed as follows:

The currency exposure profile of cash and cash equivalents is as follows:




31 DECEMBER 2006

19. RECEIVABLES (continued)

At 1 January 840,394 967,510 559,849 714,510Loans disbursed 577,206 400,202 551,613 204,002Repayments (699,398) (527,318) (526,016) (358,663)

At 31 December 718,202 840,394 585,446 559,849

Group Company

2006RM

2005RM

2006RM

2005RM

20. CASH AND CASH EQUIVALENTS

Deposits with:- Licensed banks 135,659,040 31,377,701 57,067,500 -- Other financial institutions 8,837,839 4,160,593 7,847,007 3,502,331Cash and bank balances 13,201,697 2,073,680 454,149 63,133 157,698,576 37,611,974 65,368,656 3,565,464

Amount held in trust (33,985,208) (26,803,338) - -

Cash and cash equivalents 123,713,368 10,808,636 65,368,656 3,565,464

21. OTHER PAYABLES AND ACCRUALS

Amount due to subsidiaries - - - 1,826,524Service tax payables 103,503 12,246 103,503 12,246Payroll liabilities 5,474,942 2,879,513 5,164,842 2,838,191Accrued expenses 6,458,453 2,755,759 3,554,887 2,037,334Other payables 39,749,139 29,931,771 4,293,875 2,934,633 51,786,037 35,579,289 13,117,107 9,648,928

- RM 113,213,368 37,611,974 65,368,656 3,565,464- USD 10,500,000 - - - 123,713,368 37,611,974 65,368,656 3,565,464


Included in the Group’s other payables are amounts owing to certain unit trusts amounting to RM33,985,208 (2005: RM26,803,338) in respect of dividend income received on behalf of these unit trusts.

During the financial year 2005, the Company had terminated the defined benefit retirement plan. As at 31 December 2006, the retirement benefit accrued represents actual amount payable by the Company.

(a) Defined contribution planGroup companies incorporated in Malaysia contribute to the Employees Provident Fund, the national defined contribution plan. Once the contributions have been paid, the Group has no further payment obligations.

(b) Defined benefit planThe Group operated an unapproved and unfunded final salary defined benefit plan for its employees. This plan was valued by an independent actuary every three years using the projected unit credit method. The last actuarial valuation was carried out as at 30 September 2004. An unrecognised transitional liability was identified in the 30 September 2002 actuarial valuation. This was being amortised over five years as allowed under FRS 119.

The movements during the period in which the amount recognised in the balance sheet in respect of the Group and the Company’s lump sum retirement benefit plan are as follows:


21. OTHER PAYABLES AND ACCRUALS (continued)

22. POST-EMPLOYMENT BENEFIT OBLIGATIONS

Group and Company

2006RM

2005RMThe balances can be analysed as follows:

Lump-sum retirement benefit plan

Current 181,434 4,854,567

Group and Company

2006RM

2005RM

At start of the financial year 4,854,567 3,586,599Charged to income statement - 1,674,685Contributions paid (4,673,133) (406,717) At end of the financial year 181,434 4,854,567

31 DECEMBER 2006


The borrowings by the Group and the Company amounting to RM250,000,000 and RM150,000,000 respectively (2005: NIL) bear monthly interest at 5.5% per annum. Principal amount is repayable at the end of the loan tenure of up to a maximum of 10 years from the date of the first drawdown.




31 DECEMBER 2006

23. HIRE PURCHASE CREDITORS

25. SHARE CAPITAL

24. BORROWING

Amount payable within 12 months 102,589 96,994Amount repayable after 12 months 179,986 282,575 282,575 379,569

Hire purchase payable 303,010 417,370Interest in suspense (20,435) (37,801)

282,575 379,569

Group

2006RM

2005RM

Group Company

2006 2005 2006 2005RM RM RM RM

Unsecured

Term loan 250,000,000 - 150,000,000 -

Group and Company

Numberof SharesRM RM

31.12.2006 31.12.2005

Authorised:

Ordinary shares of RM1 each:

At start and end of year 10,000,000 10,000,000 10,000,000 10,000,000

Issued and fully paid:

Ordinary shares of RM1 each

At start and end of year 6,000,002 6,000,002 6,000,002 6,000,002

Numberof Shares


The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 and tax exempt income under Section 12 of the Income Tax (Amendment) Act 1999, to frank the payment of dividends out of all its retained profits as at 31 December 2006.

The effect on the acquisition on the financial position at financial year ended 31 December 2005 were as follows:

(a) Acquisition of AmanahRaya-JMF Asset Management Sdn. Bhd. (“ARJMF”) (formerly known as JMF Asset Management Sdn. Bhd.)

The Company completed the acquisition of 70% equity interest in ARJMF representing 1,400,000 ordinary shares in ARJMF on 30 September 2005.

The effect of the acquisition on the financial results of the Group at financial year ended 31 December 2005 were as follows:


31 DECEMBER 2006

26. RETAINED EARNINGS

Year ended 2005RM

2005RM

Revenue 4,796,947Other operating income 115,024Operating expenses (99,927)Personnel costs (733,807)Other operating expenses (742,360) Profit from ordinary activities 3,335,877

Tax (744,607) Profit after taxation 2,591,270

27. ACQUISITION OF SUBSIDIARY IN PRIOR YEAR

Property, plant and equipment 731,070Receivables 3,766,415Cash and bank balances 3,193,085Tax recoverable 7,182Payables (3,546,019)Hire purchase creditors (282,575)Deferred tax liability (16,369) 3,852,789


(a) Acquisition of AmanahRaya-JMF Asset Management Sdn. Bhd. (“ARJMF”) (formerly known as JMF Asset Management Sdn. Bhd.) (Continued)

Details of net assets acquired and cash flows arising from the acquisition are as follows:




31 DECEMBER 2006

27. ACQUISITION OF SUBSIDIARY IN PRIOR YEAR (continued)

Property, plant and equipment 790,248Deferred tax asset 58,238Receivables 816,278Investments 1,557,025Cash and bank balances 63,742Deposits with licensed banks 1,674,912Payables (433,989)Hire purchase creditors (402,935) 4,123,519

Minority interest (1,237,056) 2,886,463

Goodwill 2,713,537

5,600,000

Less: Cash and cash equivalent of subsidiary acquired (1,738,654)

Net cash outflow on acquisition 3,861,346

At date ofacquisition

RM

Related party balances

The related party balances are shown in Note 19 and 21 to the financial statements.


The Directors are of the opinion that all the related party transactions had been entered into in the normal course of business and had been established on terms and conditions that were not materially different from that obtainable in transaction with unrelated parties.


31 DECEMBER 2006

28. SIGNIFICANT RELATED PARTY TRANSACTIONS

Significant related party transactions

Amanah Raya Unit Trust Unit Trust Management Sdn Bhd(formerly known as Amanah Raya Asset Management Sdn Bhd)- Management fees paid and payable - 3,097,443

Amanah Raya (Labuan) Ltd- Interest received and receivable (476,330) -

Amanah Raya Nominees (Tempatan) Sdn Bhd- Nominee fees paid and payable 480,000 480,000- Custodian and back room fees paid and payable 1,276,316 524,187

Amanah Raya-JMF Management Sdn Bhd- Management and arrangement fee paid and payable 9,378,617 4,614,310- Commission paid and payable 625,825 -

Amanah Raya Capital Sdn Bhd- Commission paid and payable 2,744,914 -- Interest received and receivable on loan disbursed (236,835) -

AmanahRaya Development Sdn Bhd (formerly known as ARB Hartanah Sdn Bhd)- Renovation works carried out 30,680 731,407- Cleaning services payable 14,475 34,000- Archiving services payable 20,634 23,881- Interest receivable on loan disbursed (240,455) (30,774)

Company

2006RM

2005RM





31 DECEMBER 2006

29. CAPITAL COMMITMENTS

Group and Company

2006RM

2005RM

Capital expenditure not provided for in thefinancial statements are as follows:

Authorised by the Directors but not contracted for 588,505 2,441,786

Analysed as follows:- intangible assets 588,505 472,563- property, plant and equipment - 1,969,223

588,505 2,441,786

30. NON-CANCELLABLE OPERATING LEASE COMMITMENTS

Group

2006RM

2005RM

Future minimum lease payment

Not later than 1 year 4,247,096 4,536,276Later than 1 year and not later than 5 years 13,353,735 15,194,371Later than 5 years 370 1,839,795

17,601,201 21,570,442



31. INTEREST RATE RISK

Group

2006

Financial assets:Investments in quoted shares - - - 487,015 487,015Investments in fixed income securities 52,616,098 5,023,169 - - 57,639,267Investments in institutional trust - - - 11,947,780 11,947,780Investments in unit trust - - - 2,433,099 2,433,099Receivables 20,177,099 336,153 8,322 28,439,992 48,961,566Deposits, cash and bank balances 144,496,880 - - 13,201,696 157,698,576

217,290,077 5,359,322 8,322 56,509,582 279,167,303

Other assets 130,257,389

Total assets per balance sheet 409,424,692

The following tables provide information about financial assets and liabilities showing the weighted average effective interest rate and the earlier of the contractual repricing or maturity date for each class of interest-sensitive instrument in the balance sheet.

Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM

31 DECEMBER 2006





31 DECEMBER 2006

31. INTEREST RATE RISK (continued)

Group

2006

Financial liabilities:Payables - - - 51,786,037 51,786,037Hire purchase creditors 102,589 179,986 - - 282,575Post-employment benefit obligations - - - 181,434 181,434Long term liabilities - - 250,000,000 - 250,000,000

102,589 179,986 250,000,000 51,967,471 302,250,046

Other liabilities 1,587,281

Total liabilities per balance sheet 303,837,327

Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM




Group

2005

Financial assets:Investments in quoted shares - - - 410,473 410,473Investments in fixed income securities 3,656,000 5,030,798 - - 8,686,798Investments in institutional trust - - - 9,580,386 9,580,386Receivables 345,810 493,873 711 28,438,881 29,279,275Deposits, cash and bank balances 35,538,294 - - 2,073,680 37,611,974

39,540,104 5,524,671 711 40,503,420 85,568,906



Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM

31 DECEMBER 2006





31 DECEMBER 2006


Group

2005

Financial liabilities:Payables - - - 35,579,289 35,579,289Hire purchase creditors 96,994 282,575 - - 379,569Post-employment benefit obligations - - - 4,854,567 4,854,567

96,994 282,575 - 40,433,856 40,813,425

Other liabilities 1,004,667


Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM




Company

2006

Financial assets:Investments in quoted shares - - - 487,015 487,015Investments in fixed income securities 52,616,098 5,023,169 - - 57,639,267Investments in unit trust - - - 2,433,099 2,433,099Receivables 148,184 336,153 8,322 74,483,478 74,976,137Deposits, cash and bank balances 64,914,507 - - 454,149 65,368,656

117,678,789 5,359,322 8,322 77,857,741 200,904,174



Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM

31 DECEMBER 2006





31 DECEMBER 2006


Company

2006

Financial liabilities:Payables - - - 13,117,107 13,117,107Post-employment benefit obligations - - - 181,434 181,434Long term liabilities - - 150,000,000 - 150,000,000

- - 150,000,000 13,298,546 163,298,541

Other liabilities -


Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM




Company

2005

Financial assets:Investments in quoted shares - - - 410,473 410,473Investments in fixed income securities 3,656,000 5,030,798 - - 8,686,798Investments in institutional trust - - - 7,828,861 7,828,861Receivables 855,255 10,348,883 711 27,464,187 38,669,036Deposits, cash and bank balances 3,502,331 - - 63,133 3,565,464

8,013,586 15,379,681 711 35,766,654 59,160,632



Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM

31 DECEMBER 2006





31 DECEMBER 2006


Company

2005

Financial liabilities:Payables - - - 9,648,928 9,648,928Post-employment benefit obligations - - - 4,854,567 4,854,567

- - - 14,503,495 14,503,495

Other liabilities 647,544


Less than1 year

RM

1 – 5years

RM

Over 5years

RM

Non-interestbearing

RMTotal

RM


The effective interest rate of the Group and of the Company’s financial assets and financial liabilities as at the balance sheet dates are as follows:


31 DECEMBER 2006

Group Company

2006%

2005%

2006 2005%%

Financial assetsFinancing receivables 7.8 6.3 - -Fixed income securities 6.7 6.6 6.7 6.6Deposits with licensed banks 3.8 2.6 3.7 2.3Amount due from subsidiaries - - 5.5 5.0Staff loans and advances 4.0 4.0 4.0 4.0

Financial liabilitiesLong term borrowings 5.5 - 5.5 -Hire purchase creditors 5.4 5.4 - -


The following tables set out the credit risk concentrations and counter parties of the Group and Company.

32. CREDIT RISK

Group

2006

Fixed income securities 52,616,098 5,023,169 - -Institutional trust - - - 11,947,780Unit trust - - - 2,433,099Trade receivables 22,939,739Interest receivables 477,870 46,937 - -Staff loans and advances 406,522 311,680Other receivables 3,561,270 - - 1,318,746Deposits, cash and bank balances 157,698,576 - - -

214,353,814 5,070,106 406,522 38,951,044

Finance andbusinessservices

RM

Property,infrastructureand utilitiescompanies

RM

Purchase oftransport

and vehicles

RM

Others

RM





31 DECEMBER 2006

32. CREDIT RISK (continued)

2005

Fixed income securities - 8,686,798 - -Institutional trust - - - 9,580,386Trade receivables - - - 20,369,808Interest receivables 290,867 147,231 - -Staff loans and advances - - 433,302 407,092Other receivables 3,287,540 - - 1,680,306Deposits, cash and bank balances 37,611,974 - - -

41,190,381 8,834,029 433,302 32,037,592

Company

2006

Fixed income securities 52,616,098 5,023,169 - -Unit trust - - - 2,433,099Trade receivables - - - 18,747,390Interest receivable 428,888 46,937 - -Staff loans and advances - - 406,522 178,924Other receivables 2,931,908 - - 1,123,570Deposits, cash and bank balances 65,368,656 - - - 121,345,550 5,070,106 406,522 22,482,983

2005

Fixed income securities - 8,686,798 - -Institutional trust - - - 7,828,681Trade receivables - - - 18,998,010Interest receivable 290,867 147,231 - -Staff loans and advances - - 433,302 126,547Other receivables 3,287,540 - - 730,119Deposits, cash and bank balances 3,565,464 - - -

7,143,871 8,834,029 433,302 27,683,357

Finance andbusinessservices

RM

Property,infrastructureand utilitiescompanies

RM

Purchase oftransport

and vehicles

RM

Others

RM


The carrying amounts of financial assets and liabilities of the Group and Company at the balance sheet date approximated their fair values except as set out below:


31 DECEMBER 2006

2006 2005

CarryingAmount

RMGroup

Financial assets

Financing receivables 89,245,752 65,536,012 9,490,237 7,674,865Investments in quoted shares 487,015 539,060 410,473 486,216Investments in fixed income securities 57,243,187 57,522,018 8,686,798 9,029,824Staff loans and advances 718,202 712,858 840,394 819,191

Company

Financial assets

Investments in quoted shares 487,015 539,060 410,473 486,216Investments in fixed income securities 57,243,187 57,522,018 8,686,798 9,029,824Staff loans and advances 585,446 581,298 559,849 532,736

33. FAIR VALUES

The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 28 March 2007.

34. APPROVAL OF FINANCIAL STATEMENTS


FairValueRM

CarryingAmount

RM

FairValueRM


amanahraya’s branch network

AmanahRaya’s branch network

Tingkat 15 Wisma AmanahRayaNo. 2, Jalan Ampang50450 Kuala Lumpur Malaysia.Tel : 603-2055 7388Fax : 603-2031 4545Website : www.arb.com.myCARELine : 603-2072 9999

AmanahRaya Service Center

Ground & 2nd FloorWisma AmanahRaya AnnexNo. 2, Jalan Ampang50450 Kuala LumpurTel : 603-2055 7388Fax : 603-2078 3421

Johor Bahru

Suite M-01, Mezanine FloorMenara MAANo.15, Jalan Dato’ Abdullah Tahir80300 Johor BahruJohorTel : 607-333 5918Fax : 607-332 8428

Pahang

No. 14 & 16, Ground FloorBangunan Majlis Ugama IslamJalan Bukit Ubi25200 KuantanPahangTel : 609-513 5318 Fax : 609-514 6785

Negeri Sembilan

No. 90 & 92, Ground FloorJalan Yam Tuan70000 SerembanNegeri SembilanTel : 606-763 8387 Fax : 606-763 9234

Pulau Pinang

Ground Floor, BangunanTabung HajiLot 50, Jalan Greenhall 10508 Pulau PinangTel : 604-261 1144 Fax : 604-263 4022

Perak

Ground & 1st FloorA-G-3 dan A-1-3 Pusat Perniagaan GreentownJalan Dato Seri Ahmad Said30450 IpohPerak Tel : 605-2548714/605-2437546Fax : 605-2549454

Kelantan

PT 303, Ground & 1st FloorWisma JAZABatu 2 Jalan Kuala Krai15050 Kota BharuKelantanTel : 609-748 2112Fax : 609-747 8353

Kedah

No. 237, Jalan Shahab 2Shahab Perdana05350 Alor SetarKedahTel : 604-732 2080 Fax : 604-730 4406

HEADQUARTERS


amanahraya’s branch network

AmanahRaya’s branch network

Perlis

No. 56, Lot 434, Grd FlrBangunan Bernama Medan Raja Syed Alwi 01000 KangarPerlisTel : 604-976 1485 Fax : 604-976 8520

Melaka

No. 42A, Jalan PMS 3Plaza Melaka SentralPeringgit75300 MelakaTel : 606-282 2848 Fax : 606-282 1443

Kuala Krai

No. PT 4025, Jalan PanggungBandar Kuala Krai18000 Kuala KraiKelantanTel : 609-960 5787 Fax : 609-960 7955

Terengganu

No. 4, Ground & 1st FloorJalan Air Jernih20300 Kuala TerengganuTerengganuTel : 609-622 1201 Fax : 609-622 8449

Selangor

Lot 1, Level 1, 2 & 3Pusat Dagangan UMNOShah Alam Persiaran Damai, Seksyen 1140100 Shah AlamSelangorTel : 603-5511 5733Fax : 603-5511 5732

Temerloh

No. 23, Jalan Dato’ Bahaman 3Pusat Komersil Temerloh28000 Temerloh PahangTel : 609-296 4562/4381/5094Fax : 609-296 4734

Sarawak

No. 31, Ground & 1st Floor Kueh Hock Kui Commercial CentreJalan Tun Ahmad Zaidie Adruce P.O. Box 136493150 Kuching SarawakTel : 6082-254 171/170Fax : 6082-422 928

Sabah

Level 2, Bangunan Bank NegaraJalan Tun RazakP.O. Box 1012788801 Kota KinabaluSabahTel : 6088-211 970 Fax : 6088-246 178

Muar

No. 208 Jalan Meriam84000 MuarJohorTel : 606-952 3218 Fax : 606-951 4597

Sungai Petani

No. 3A, Jalan Permatang GedongTaman Sejati Indah08000 Sungai PetaniKedahTel : 604-431 0270/421 Fax : 604-431 0081

Bangi

Lot 802G, Complex Diamond Bangi Business ParkJalan Medan Bangi, Off Persiaran BangiBandar Baru Bangi43650 BangiSelangorTel : 603-8210 1346 Fax : 603-8210 1345

your partner in trust

AMANAH RAYA BERHAD(344986-V)

Tingkat 15, Wisma AmanahRayaNo. 2, Jalan Ampang50450 Kuala Lumpur

Malaysia

Telephone No : 603-2055 7388Fax No : 603-2078 8187

Website : www.arb.com.my

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