“althoughitisrealizedthatfastsolutioniseasiersaidthandone,inviewofthecomplexityandchallengingnegotiation,noonecouldsupportthefactthatfurtherdelayisacceptableasitwillpostgreaterrisktoallpartiesinvolvedanditisthepeopleonthestreetthatwillbeeffected”

Draw-off Tower - Sungai Semenyih Dam

sHARE pRICE pERFORmANCE

The recovery of the local bourse has helped to bolster KPS’ share price to reach the year’s high of RM2.48. Nevertheless, the gains were unsustainable as the share price succumbed to profit taking while the water consolidation in Selangor then remained at deadlock. The stock ended the year at RM1.38 per share.

DIVIDEND

The Board of Directors is recommending a final dividend of 4 sen per share less 25% tax, subject to shareholders’ approval at the forthcoming Annual General Meeting.

CORpORATE DEVELOpmENT

Utility and Infrastructure Sector

Over the years, the fragmented landscape of the Selangor’s water sector has shown that it is not conducive to promote efficiency resulting in higher tariff to consumers. It is for this reason the water reform is being introduced to address the legality issue by transferring water assets from the State list to Concurrent list of the Constitution. Two acts have been established to support the restructuring including the Water Services Industry Act 2006 (WSIA), which purpose is to reform and consolidate the water industry, and the Suruhanjaya Perkhidmatan Air Negara (SPAN) Act 2006 as the regulator of the industry. Pengurusan Aset Air Berhad (PAAB) was set up via Ministry of Finance Incorporated to take over existing water assets and be responsible for financing of future water infrastructures; therefore minimising the risk for service providers to incur heavy capital outlays.

PRESTASI hARgA SAhAM

Pemulihan pasaran saham tempatan telah melonjakkan harga saham KPS kepada nilai tertinggi tahunan RM2.48 sesaham. Walau bagaimanapun, nilai keuntungan tidak dapat dikekalkan dan menurun akibat aktiviti pengambilan untung dan pada masa yang sama proses penggabungan aset-aset air di Selangor masih berada dalam kebuntuan. Pada penghujung tahun harga saham diniaga pada harga penutup RM1.38 sesaham.

DIVIDEN

Lembaga Pengarah mencadangkan bayaran dividen akhir sebanyak 4 sen sesaham ditolak cukai sebanyak 25%, tertakluk kepada kelulusan pemegang-pemegang saham di Mesyuarat Agung Tahunan yang akan datang.

PEMbANgUNAN KORPORAT

Sektor Utiliti dan Infrastruktur

Selama bertahun-tahun, lanskap sektor pengurusan air yang berasing-asingan di Selangor adalah tidak kondusif untuk meningkatkan kecekapan sehingga menyebabkan tarif air yang lebih tinggi untuk pelanggan. Perkara ini menyebabkan reformasi sektor air sedang diperkenalkan untuk mengatasi isu perundangan berkaitan pemindahan aset-aset air daripada Senarai Negeri kepada Senarai Bersama di dalam Perlembagaan. Dua akta telah digubal untuk menyokong penstrukturan ini, iaitu Akta Industri Perkhidmatan Air 2006, yang bertujuan untuk menstruktur dan menggabungkan industri air, dan Akta Suruhanjaya Perkhidmatan Air Negara (SPAN) 2006 bertujuan untuk mengawal selia industri air. Pengurusan Aset Air Berhad (PAAB) ditubuhkan melalui Menteri Kewangan Diperbadankan untuk mengambil alih aset air yang ada dan bertanggungjawab untuk menguruskan pembiayaan infrastruktur air pada masa hadapan, sehingga dapat meminimakan risiko bagi penyedia perkhidmatan untuk menanggung modal perbelanjaan yang tinggi.

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“aswaterisabasicneedforlivingbeings,itisvitalforthisnaturalresourcetobecontrolledbyagovernmententityasonlyitisinthebestpositiontobalancebetweensocialobligationsandcommercialconsiderations”

Sungai Semenyih Water Treatment Plant

This is important because at the current revenue level, water operators could only meet their operating expenditures and not the capital expenses, and future capital outlays are crucial to ensure water infrastructures remained effective for use to deliver water to every household. In the past, the State had spent almost RM15 billion for the water treatment plants, dams and distribution works and other immovable assets, compared to RM5 billion by private operators, out of which the State through Kumpulan Darul Ehsan Berhad (KDEB) owned 22.5% of the total private investment. All these efforts are aimed solely to reform the heavily fragmented water industry so that water operator can focus on providing sufficient and quality water to consumers.

It is always said that water being the basic need of all humanity should not be allowed to be perceived as the lucrative venture to make profit at the expense of the people. It should be put back to where it belong i.e.- in the hands of the Government-controlled entity for the benefit of all future generation. This is clearly presented in

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the Parliament on June 30, 2008 by the then Deputy Minister of Energy, Water and Communications now known as Energy, Green Technology and Water, that water consolidation should consist of three main aspects as follows:

a company tha t i s owned i. o r cont ro l led by the State government;a water service operator licensed ii. under the SPAN Act; anda company operating on asset-iii. light model focusing on improving efficiency and effectiveness of s e r v i ce based on l i c e nse agreement and KPIs monitored by SPAN.

It is in line with this policy that Cabinet’s decision on 16 January 2008 has approved the consolidation of the water industry on a holistic manner in Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya to the State Government of Selangor to be led by KDEB.

However the restructuring of water industry had procrastinated for more than 2 years. As time goes by new variables seem to change according to changing environment. Whatever the situation any delay in water consolidation will definitely be in the expense of the “rakyat” and benefits no one.

Parlimen pada 30 Jun 2008 oleh Timbalan Menteri Tenaga, Air dan Komunikasi ketika itu, yang sekarang dikenali sebagai Kementerian Tenaga, Teknologi Hijau dan Air, di mana penggabungan industri air harus meliputi tiga aspek utama seperti berikut:

syarikat tersebut dimiliki atau i. dikuasai oleh Kerajaan Negeri Selangor;operator perkhidmatan air akan ii. dilesenkan di bawah Akta SPAN; dans y a r i k a t y a n g b e r o p e r a s i iii. berasaskan “asset-light model” akan memfokuskan terhadap peningkatan perkhidmatan yang efisien dan efektif selaras dengan per janj ian lesen dan indeks prestasi utama yang dipantau oleh SPAN.

Perkara ini adalah selari dengan keputusan Kabinet pada 16 Januari 2008 yang meluluskan penggabungan industri air secara holistik di Selangor, Wilayah Persekutuan Kuala Lumpur dan Putrajaya kepada Kerajaan Negeri Selangor untuk diterajui oleh KDEB.

Walau bagaimanapun, penstrukturan industri air telah tertangguh melebihi 2 tahun. Seiring dengan berlalunya masa, beberapa pemboleh ubah baru turut berubah sesuai dengan perubahan persekitaran. Walau apa pun situasi kelewatan dalam penggabungan industri air ini, ia pasti akan terus menjejaskan rakyat dan tidak ada sesiapapun mendapat faedah.

Perkara ini penting kerana pada tahap pendapatan ketika ini, operator-operator air hanya dapat memenuhi perbelanjaan operasi mereka dan bukan perbelanjaan modal. Perbelanjaan modal di masa depan sangat penting untuk memastikan infrastruktur air dapat beroperasi secara efektif agar dapat menyalurkan air kepada setiap rumah. Pada masa lalu, Kerajaan Negeri telah membelanjakan hampir RM15 bilion untuk pembinaan loji rawatan air, empangan dan kerja-kerja pengagihan serta lain-lain aset tidak alih, berbanding dengan RM5 bilion oleh syarikat operator swasta, di mana daripada jumlah ini, Kerajaan Negeri melalui Kumpulan Darul Ehsan Berhad (KDEB) memil iki 22.5% di dalam pelaburan swasta. Semua usaha ini bertujuan semata-mata untuk menyusun semula industri air yang berasing-asingan supaya syarikat operator air dapat menumpukan usaha penyediaan air yang cukup dan berkualiti kepada pengguna-pengguna.

Sumber air sentiasa dikatakan menjadi keperluan asas seluruh kehidupan sejagat, seharusnya tidak dibenarkan untuk dianggap sebagai usaha niaga yang menguntungkan seh ingga menjejaskan rakyat. Ia harus diserahkan kembali untuk diuruskan oleh entiti milik Kerajaan untuk kepentingan semua generasi masa depan. Cadangan penstrukturan ini telah dibentangkan di

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>>>>

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Pulau Indah Industrial Park

“thegroupisalsopleasedtoannouncethatithassuccessfullyacquiredthelastpieceof“goldenland”inthehighlyattractiveareaofsection14,petalingJaya”

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On the positive side, the Federal and State Governments are seriously considering the many variables and mechanism to arrive at an acceptable formula. Since the beginning, KDEB is committed to complete the task at hand and is highly equipped to do so. Through the expertise of its subsidiaries, KDEB is a well-established player with a strong track record. Its 55% owned subsidiary, Konsortium ABASS Sdn Bhd produces 545mld covering supplying areas of Putrajaya, Cyberjaya, Sepang, Kuala Langat and Puchong. KDEB, together with its subsidiaries, also holds investments in water treatment and distribution with a 30% equity in Splash, 30% Syabas and 20% Taliworks Corporation. It has shown its ability to perform and commitment to carry out its duties as a corporate citizen in the community that it is in. KDEB will continue to pursue every option available to ensure the success and lead the consolidation of the water industry in Selangor.

As water is a basic need for living beings, it is vital for this natural resource to be controlled by a government entity as only it is in the best position to balance between social obligations and commercial considerations. Although it is realised that fast solution is easier said than done, in view of the complexity and challenging negotiation, no one could support the fact that further delay is acceptable as it will post greater risk to all parties involved and it is the people on the street that will be effected.

Property Development Sector

The Group’s property development arm via Kumpulan Hartanah Selangor Berhad (KHSB) recorded a operating profit of RM90.944 million on revenue of RM125.123 million versus a operating loss of RM26.561 million in the preceding year, which took a full provision for long-term receivables of RM65.43 million.

Satu perkara positif adalah Kerajaan Persekutuan dan Kerajaan Negeri secara serius telah mempertimbangkan beberapa pemboleh ubah dan mekanisma untuk mencapai kata sepakat ke atas formula yang boleh diterima pakai. Sejak awal lagi, KDEB telah menunjukkan komitmen untuk melaksanakan tugas yang ada melalui kepakaran tinggi yang dimiliki. Menerusi kepakaran yang dimiliki oleh anak-anak syarikatnya, KDEB adalah sebuah syarikat terkemuka dengan rekod prestasi yang mantap. Konsortium ABASS Sdn Bhd, sebuah anak syarikat dengan pegangan 55% miliknya, mengeluarkan 545 juta liter air sehari untuk dibekalkan ke kawasan Putrajaya, Cyberjaya, Sepang, Kuala Langat dan Puchong. KDEB bersama anak-anak syarikatnya juga mempunyai pegangan pelaburan di dalam syarikat yang terlibat dalam rawatan dan pembekalan air, iaitu SPLASH (30%), SYABAS (30%) dan Taliworks Corporation (20%). Pegangan pelaburan ini telah menunjukkan kemampuan untuk berjaya dan komited untuk menjalankan tugas-tugas sebagai masyarakat korporat di dalam komuniti. KDEB akan terus mengambil setiap peluang yang ada untuk memastikan kejayaan dan meneraju penstrukturan semula industri air di Selangor.

Sumber air sebagai keperluan asas untuk kehidupan penting dikawal oleh entiti kerajaan kerana ia adalah cara terbaik untuk menyeimbangkan antara tanggungjawab sosial dan pertimbangan komersial. Walaupun ianya lebih mudah untuk diutarakan daripada dilaksanakan dan diakui sangat kompleks dan mencabar. Semua pihak menyokong bahawa dengan penangguhan ini akan memberi risiko lebih besar kepada semua pihak yang terlibat, terutamanya orang ramai.

Sektor Pembangunan Hartanah

Syarikat pembangunan hartanah Kumpulan menerusi Kumpulan Hartanah Selangor Berhad (KHSB) mencatat keuntungan operasi sebanyak RM90.944 juta dengan perolehan sebanyak RM125.123 juta berbanding kerugian operasi sebanyak RM26.561 juta pada tahun sebelumnya, yang disebabkan peruntukkan penuh ke atas penerimaan jangka panjang sebanyak RM65.43 juta.

Cyber Valley Commercial Centre

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KHSB through its subsidiary, Central Spectrum (M) Sdn Bhd continued to promote Pulau Indah, Klang as an investment and tourism destination, especially the development of industrial land in the Selangor Halal Hub (SHH) area. Infrastructure development of Phase 2 of SHH, involving 244.44 acres, is underway and expected to be completed by end of this year. The SHH is a strategic development that will benefit both importers and exporters as halal status is fast becoming the buzz word of the region.

The Group is also pleased to announce that it has successfully acquired the last piece of “golden land” in the highly attractive area of Section 14, Petaling Jaya. The 2009 was spent vigorously to make the winning bid through a fair and competitive playing field. The property, planned for a high-end mixed development, is expected to be launched this year.

Hospitality, Golf Club and Recreation Sector

The hospitality business registered revenue and operating profit of RM30.377 million (2008: RM30.176 million) and RM138,000 (2008: RM2.033 million) respectively. Golf club and recreation segment, meanwhile, posted revenue of RM8.814 million (2008: RM8.187 million) and operating profit of RM114,000 (2008: RM387,000). The Group continued to benefit from the corporate restructuring of investment holding in four (4) entities mainly Perangsang Templer Golf Club – 100%, Perangsang Hotels & Properties Sdn Bhd – 100% (manages Quality Hotel Shah Alam and Quality Hotel City Centre), Brisdale International Hotel Sdn Bhd – 100% (manages Brisdale Hotel) and KDE Recreation Berhad – 49% (manages Kelab Darul Ehsan, Ampang) and positioned under Cash Band (M) Berhad (CBB), a subsidiary company of KPS.

KHSB menerusi anak syarikatnya, Central Spectrum (M) Sdn Bhd terus mempromosi Pulau Indah, Klang sebagai sebuah destinasi pelaburan dan pelancongan, terutamanya pembangunan tanah perindustrian di dalam kawasan Selangor Halal Hub (SHH). Pembangunan infrastruktur Fasa 2 di dalam SHH melibatkan kawasan seluas 244.44 ekar, sedang berjalan lancar dan dijangka siap pada penghujung tahun ini. SHH merupakan pembangunan strategik yang akan memberi pulangan kepada pengimpot dan pengekspot oleh kerana status halal yang semakin dikenali di rantau ini.

Kumpulan juga dengan sukacita mengumumkan bahawa syarikat telah berjaya memiliki sebidang tanah yang terdapat di kawasan yang strategik di Seksyen 14, Petaling Jaya. Pada tahun 2009, Kumpulan telah memperuntukkan perbelanjaan yang besar bagi membeli tanah tersebut di dalam pasaran hartanah yang kompetitif dan persaingan yang sama rata. Projek pembangunan hartanah yang dirancang adalah jenis pembangunan bercampur berkos tinggi dan dijangka akan dilancarkan tahun ini.

Sektor Hospitaliti, Kelab Golf dan Rekreasi

Sektor hospitaliti mencatat perolehan dan keuntungan operasi masing-masing sebanyak RM30.377 juta (2008: RM30.176 juta) dan RM138,000 (2008: RM2.033 juta). Manakala sektor kelab golf dan rekreasi mencatat perolehan sebanyak RM8.814 juta (2008: RM8.187 juta) dan keuntungan operasi sebanyak RM114,000 (2008: RM387,000). Prestasi yang lebih baik daripada sektor-sektor ini dilihat selepas penstrukturan korporat bagi pegangan pelaburan bagi empat (4) entiti merangkumi Perangsang Templer Golf Club – 100%, Perangsang Hotels & Properties Sdn Bhd – 100% (yang menguruskan Quality Hotel Shah Alam dan Quality Hotel City Centre), Brisdale International Hotel Sdn Bhd - 100% (menguruskan Brisdale Hotel) dan KDE Recreation Berhad – 49% (yang menguruskan Kelab Darul Ehsan, Ampang) yang telah diletakkan di bawah Cash Band (M) Berhad (CBB), anak syarikat KPS.

Perangsang Templer Golf Club

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>>Trading Sector

The Group’s trading business recorded an improved revenue of RM35.094 million compared to RM33.271 million in the previous year thanks to increased demand for equipment used in water treatment plants and wastewater treatment. The Group owned 60% of Hydrovest Sdn Bhd, which in turn held 60% stake in Aqua-Flo Sdn Bhd that is involved in the trading of chemicals used in water treatment plants and wastewater treatment, technical services and sales of equipments for the water distribution and wastewater industry.

Sektor Perdagangan

Sektor perdagangan mencatat jumlah perolehan yang lebih tinggi sebanyak RM35.094 juta, berbanding RM33.271 juta pada tahun sebelumnya, berikutan permintaan yang meningkat untuk bahan-bahan kimia di loji rawatan air dan rawatan air kumbahan. Kumpulan memiliki 60% ekuiti di dalam Hydrovest Sdn Bhd, dan pada masa yang sama memiliki 60% pegangan di dalam Aqua-Flo Sdn Bhd yang terlibat dalam perdagangan bahan kimia untuk kegunaan loji rawatan air bersih dan rawatan air kumbahan, perkhidmatan teknikal dan penjualan peralatan kepada industri bekalan air dan air kumbahan.

Intermediate Canal - Sungai Semenyih Water Treatment Plant

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Finger Weir - Sungai Semenyih Water Treatment Plant

ECONOmIC ENVIRONmENT – WATER INDUsTRY

The national water restructuring plan involving Peninsular Malaysia and Labuan is on-going. PAAB has completed acquisition of water assets from three states - Negeri Sembilan, Malacca and Johor - for a combined value of RM6.12 billion. Upon the completion of the restructuring, the states and water concessionaires would be relieved of their burden of funding future water infrastructure development as this responsibility would fall on the shoulders of PAAB, hence allowing the players to be asset-light and focused on operations and maintenance. In the case of Selangor, fresh rounds of negotiations have emerged with the aim of completing the consolidation as soon as possible to translate the benefits to the “rakyat.”

PERSEKITARAN EKONOMI – INDUSTRI AIR

Pelan penstrukturan semula industri air negara yang melibatkan Semenanjung Malaysia dan Labuan masih berjalan lancar. PAAB telah melengkapkan pengambilalihan aset-aset air dari tiga buah negeri, iaitu Negeri Sembilan, Melaka dan Johor dengan jumlah keseluruhan sebanyak RM6.12 bilion. Selepas proses penstrukturan diselesaikan, Kerajaan-Kerajaan Negeri dan syarikat-syarikat konsesi akan terlepas dari tanggungan perbelanjaan bagi infrastruktur air pada masa hadapan kerana tanggungjawab ini akan dipikul oleh PAAB, justeru menjadikan syarikat-syarikat air ini sebagai “asset-light” dan dapat memfokus kepada kerja-kerja operasi dan penyelenggaraan. Di dalam kes di Selangor, rundingan-rundingan baru telah dilaksanakan bertujuan untuk menyelesaikan penstrukturan dengan secepat mungkin demi kepentingan rakyat.

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>>CORpORATE GOVERNANCE

KPS affirms to the commitment in observing and maintaining the standards in corporate governance. We do so by fully subscribing to the principles and best practices as contained in the Malaysian Code of Corporate Governance. Additionally, the Board judiciously plays its role in enhancing the business integrity and governance to ensure that the interests of all shareholders are protected.

COmmITmENT AND ACKNOWLEDGEmENT

On behalf of the Board, I would like to express my appreciation to the Management and staff for their dedication and support shown during the difficult and challenging economic backdrop. With their unnerving support, the Group has remained a valuable investment to investors, as well as a trusted water player in the country, providing high quality of service to consumers.

We are committed to our utmost priority that is apart from fueling future revenues, to serve the interests of our shareholders, clients, employees and the communities in which we operate.

TADbIR URUS KORPORAT

KPS akan terus memberikan komitmen tinggi bagi memantau dan mengekalkan piawaian yang ketat terhadap tadbir urus korporat. Kami sepenuhnya akan mempraktikkan prinsip dan amalan terbaik seperti yang terkandung dalam Kod Tadbir Urus Korporat Malaysia. Tambahan pula, Lembaga Pengarah berperanan penting dalam mempertingkatkan integriti perniagaan dan tadbir urus korporat untuk memastikan kepentingan pemegang-pemegang saham dilindungi.

KOMITMEN DAN PENghARgAAN

Bagi pihak Lembaga Pengarah, saya ingin mengucapkan penghargaan kepada Pengurusan dan warga kerja di atas sokongan yang diberi sewaktu menghadapi kesukaran dan cabaran kemelesetan ekonomi. Dengan adanya sokongan padu, Kumpulan kami kekal sebagai satu pelaburan yang bernilai kepada pelabur-pelabur, menjadikan kami sebagai sebuah syarikat pengurusan air yang dipercayai di dalam negara dan berupaya memberikan perkhidmatan berkualiti tinggi kepada pengguna-pengguna.

Selain daripada menjana pendapatan masa depan, kami juga memberi keutamaan dan komited untuk memenuhi kepentingan pemegang-pemegang saham, pelanggan-pelanggan, kakitangan-kakitangan dan masyarakat, di mana kami beroperasi.

DATO’ HAJI ABD KARIm BIN mUNIsARDSSA, SSA, KMN, ASAChairman/Pengerusi

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Statement of Corporate Governancepenyata tadbir urus korporat

The Board of Directors (the Board) of Kumpulan Perangsang Selangor Berhad (the Company) recognises the exercise of good corporate governance in conducting the business and affairs of the Company with integrity, transparency and professionalism as a key component for the Company’s continued progress and success. These will not only safeguard and enhance shareholders’ investments and value but will at the same time ensure that the interests of other shareholders are protected.

The Board places importance in adopting the Principles and Best Practices set out in the Malaysian Code on Corporate Governance (the Code) and is committed in ensuring that good corporate governance is observed and practiced throughout the Group to safeguard and enhance long term shareholders’ value.

The Board is pleased to report to the shareholders of the Company on the manner in which the Group has applied the Principles of Good Governance and the extent to which it has complied with the Best Practices set out in the Code.

A. BOARD OF DIRECTORs

1. Duties of Board of Directors

The Board of the Company takes full responsibility for the performance of the Group. The Board guides the Company on its short and long term goals, providing advice and devising strategies on management and business development issues while providing balance to the management of the Company.

The Board reserves the right to make decisions with respect to area significant to the Group’s business, which include the approval of corporate plans and annual budgets, announcements of interim results, material acquisitions/disposals of business and/or assets, approval of major capital expenditure projects, considerat ion of s ignif icant f inancial matters, appointments to the Board and changes to the key management and control structure within the Group.

The Board has also delegated certain of its responsibilities to other board committees, which operates under approved terms of reference.

The respective committee reports are disclosed from pages 47 to 48 of this Annual Report.

Lembaga Pengarah Kumpulan Perangsang Selangor Berhad (Syarikat) mengiktiraf bahawa amalan tadbir urus korporat yang baik semasa mengendalikan urusan perniagaan dan hal ehwal Syarikat secara berintegriti, telus dan profesional merupakan komponen penting bagi memastikan Syarikat mencapai kemajuan dan kejayaan berterusan. Ia bukan sahaja akan melindungi dan mempertingkatkan pelaburan dan nilai pemegang saham, malah pada masa yang sama akan memastikan supaya kepentingan pemegang-pemegang saham lain turut dilindungi.

Lembaga Pengarah memberi kepentingan kepada mempraktikkan Prinsip-prinsip dan Amalan-amalan Terbaik yang digariskan di dalam Kod Tadbir Urus Korporat Malaysia (Kod) dan komited dalam memastikan agar tadbir urus korporat yang baik diserap serta dipraktiskan di dalam Kumpulan untuk melindungi dan meningkatkan lagi nilai pemegang-pemegang saham.

Lembaga Pengarah amat berbesar hati untuk melaporkan kepada pemegang-pemegang saham Syarikat berkenaan penggunaan prinsip-prinsip Kod dan sejauh mana ia telah mematuhi amalan-amalan terbaik Kod tersebut.

A. LEMbAgA PENgARAh

1. Tanggungjawab Lembaga Pengarah

Lembaga Pengarah Syarikat bertanggungjawab sepenuhnya ke atas prestasi Kumpulan. Lembaga Pengarah memberi panduan kepada Syarikat untuk mencapai matlamat jangka pendek dan jangka panjangnya, menyediakan khidmat nasihat dan merangka strategi ke atas isu-isu pengurusan dan pembangunan perniagaan di samping memastikan keseimbangan kepada pengurusan Syarikat.

Lembaga Pengarah mempunyai kuasa mutlak untuk membuat keputusan berkaitan dengan perkara-perkara yang melibatkan perniagaan Kumpulan termasuk kelulusan bagi rancangan korporat dan bajet tahunan, pengumuman keputusan suku tahunan, pengambilalihan/penjualan pelaburan dan/atau aset-aset, keputusan bagi projek-projek yang melibatkan perbelanjaan modal yang besar, pertimbangan untuk urusan kewangan yang ketara, perlantikan Lembaga Pengarah dan perubahan pengurusan utama serta struktur kawalan di dalam Kumpulan.

Lembaga Pengarah juga telah memberi tanggungjawab tertentu kepada jawatankuasa-jawatankuasa Lembaga Pengarah yang lain yang berfungsi mengikut garis panduan dan terma-terma rujukan yang diluluskan.

Laporan-laporan Jawatankuasa adalah sebagaimana dikemukakan di dalam Laporan Tahunan ini dari muka surat 47 hingga 48.

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2. Composition of the Board

The Board of KPS consists of five (5) members:

i. Chairman ii. Executive Director iii. Three (3) Independent Non-Executive Directors

The Directors include professionals in the fields of economics, finance, accounting and senior civil administrators. The information of all the directors is set out from pages 16 to 21 of this Annual Report.

The current composition of the Board complies with the listing requirements of the Bursa Malaysia Securities Berhad (Bursa Securities). The composition of the Board shall be reviewed on a need basis by the Nomination Committee to ensure that the Board has the required mix of skills, expertise, attributes and core competencies to discharge its duties effectively.

The Board having reviewed the size and complexity of the Group’s operations is of the opinion that the number of members in the Board is appropriate. The Chairman presides over the meetings of the Board. His role and function are clearly separated and distinct from the Executive Director whom is specifically responsible for managing the strategic and operational agenda of the Group and for the execution of the directives and policies of the Board, as well as directing the business operations of the Group on a day-to-day basis. The Executive Director is to develop, in conjunction with the Board, the Group’s strategic plans and is responsible for its implementation. In connection therewith, the Executive Director keeps the Board informed of overall operations of the Group and the major issues faced by the Group, together with bringing forward to the Board significant matters for its consideration and approval, where required.

2. Komposisi Lembaga Pengarah

Lembaga Pengarah KPS pada masa ini mempunyai lima (5) ahli terdiri daripada:

i. Pengerusi ii. Pengarah Eksekutif iii. Tiga (3) Pengarah Bebas Bukan Eksekutif

Pengarah-pengarah terdiri daripada golongan profesional dalam bidang ekonomi, kewangan, perakaunan serta pentadbir-pentadbir awam kanan. Maklumat mengenai kesemua pengarah dikemukakan dari muka surat 16 hingga 21 Laporan Tahunan ini.

Komposisi semasa Lembaga Pengarah mematuhi syarat-syarat penyenaraian Bursa Malaysia Securities Berhad (Bursa Securities). Komposisi Lembaga Pengarah akan dikaji mengikut keperluan oleh Jawatankuasa Pencalonan untuk memastikan bahawa Lembaga Pengarah mempunyai kriteria kemahiran, kepakaran, sifat dan kekompetenan teras untuk melaksanakan tugasnya secara berkesan.

Setelah meneliti saiz dan operasi Kumpulan yang kompleks, Lembaga Pengarah berpendapat bilangan keahlian Lembaga Pengarah adalah bersesuaian. Pengerusi mempengerusikan mesyuarat-mesyuarat Lembaga Pengarah. Peranan dan fungsi beliau jelas berbeza dan berlainan dari Pengarah Eksekutif yang mana secara khusus bertanggungjawab menguruskan agenda strategik serta operasi Kumpulan dan melaksanakan arahan serta polisi Lembaga Pengarah, dan mengemudi operasi bisnes Kumpulan seharian. Pengarah Eksekutif juga merangka polisi bersama Lembaga Pengarah, pelan strategik Kumpulan dan bertanggungjawab melaksanakannya. Sehubungan itu, Pengarah Eksekutif sentiasa memaklumkan Lembaga Pengarah keseluruhan operasi Kumpulan dan isu-isu besar yang dihadapi oleh Kumpulan, dan memajukan urusan-urusan penting untuk pertimbangan dan kelulusan Lembaga Pengarah, jika diperlukan.

The Board of Directors (the Board) of Kumpulan Perangsang Selangor Berhad (the Company) recognises the exercise of good corporate governance in conducting the business and affairs of the Company with integrity, transparencyandprofessionalismasakeycomponent for theCompany’scontinuedprogressandsuccess.thesewillnotonlysafeguardandenhanceshareholders’investmentsandvaluebutwillatthesametimeensurethat the interests of other shareholders are protected.

Lembaga Pengarah Kumpulan Perangsang Selangor Berhad (Syarikat) mengiktiraf bahawa amalan tadbir urus korporat yang baik semasa mengendalikan urusan perniagaan dan hal ehwal Syarikat secara berintegriti, telus dan profesional merupakan komponen penting bagi memastikan Syarikat mencapai kemajuan dan kejayaan berterusan. Ia bukan sahaja akan melindungi dan mempertingkatkan pelaburan dan nilai pemegang saham, malah pada masa yang sama akan memastikan supaya kepentingan pemegang-pemegang saham lain turut dilindungi.

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The non-executive directors do not participate in the day-to-day dealings. However, they contribute in areas such as policy and strategy, performance monitoring, as well as improving governance and controls. The independent non-executive directors have declared themselves to be independent from management and free of any relationship which could materially interfere with the exercise of their independent judgment and objective participation and decision making process of the Board.

3. Board meetings and supply of Information

The Board meets regularly to review the business operations, financial performance and other significant matters of the Group requiring its attention. Besides board meetings, the Board also exercises control on matters that require Board’s approval through circulation of resolutions. During the financial year ended 31 December 2009, ten (10) board meetings were held and the respective directors’ attendances are as follows:

Name of Directors Attendance YBhg Dato’ Haji Abd Karim bin Munisar 10/10 YBhg Dato’ Haji Azlan bin Hashim 10/10 YBhg Dato’ Haji Ab Halim bin Mohyiddin 10/10 Encik Wong Yien Kim 10/10 Encik Mustaffa Kamil bin Ayub 2/2 (appointed wef. 1/11/2009)

The Board is provided with agendas and board papers prior to board meetings. The board papers include minutes of the previous meeting, quarterly performance report of the Group, corporate and strategic proposals for the Board’s review and approval. These documents are issued in advance to enable the Board to seek clarifications from the management before the board meetings to enable effective discharge of its duties.

The Board members have access to the advice and services of the Company Secretary and other professionals on all information in relation to the Group whether as a full Board or in their individual capacity to assist them in the furtherance of their duties.

4. Directors’ Training

All the Directors have completed the Mandatory Accreditation Programme and have met the requirements of the Continuous Education Programme as prescribed by the Bursa Securities previously.

Pengarah bukan eksekutif tidak terlibat di dalam urusan seharian Syarikat. Namun begitu, mereka menyumbang idea dari sudut polisi dan strategi, pemantauan prestasi, serta penambahbaikan tadbir urus korporat dan sistem kawalan dalaman. Pengarah bebas bukan eksekutif mengisytiharkan diri mereka bebas dari pengurusan dan sebarang hubungan yang mana secara material menjejaskan penilaian bebas serta penyertaan objektif di dalam proses membuat keputusan Lembaga Pengarah.

3. Mesyuarat-mesyuarat Lembaga Pengarah dan bekalan Maklumat

Mesyuarat Lembaga Pengarah dilaksanakan secara konsisten untuk menilai semula operasi perniagaan, prestasi kewangan dan hal-hal penting yang memerlukan perhatian Lembaga Pengarah. Selain daripada mesyuarat-mesyuarat Lembaga Pengarah, Lembaga Pengarah turut melaksanakan kawalan ke atas perkara-perkara yang memerlukan persetujuan Lembaga Pengarah melalui pengedaran resolusi-resolusi. Dalam tahun kewangan berakhir 31 Disember 2009, sepuluh (10) Mesyuarat Lembaga Pengarah telah diadakan dan kehadiran pengarah-pengarah adalah seperti berikut:

Nama Pengarah Kehadiran YBhg Dato’ Haji Abd Karim bin Munisar 10/10 YBhg Dato’ Haji Azlan bin Hashim 10/10 YBhg Dato’ Haji Ab Halim bin Mohyiddin 10/10 Encik Wong Yien Kim 10/10 Encik Mustaffa Kamil bin Ayub 2/2 (Dilantik pada 1/11/2009)

Lembaga Pengarah disediakan dengan agenda-agenda dan kertas-kertas Lembaga Pengarah sebelum mesyuarat Lembaga Pengarah. Kertas-kertas Lembaga Pengarah termasuk minit mesyuarat terdahulu, laporan prestasi suku tahunan Kumpulan, cadangan korporat dan strategik bagi semakan dan kelulusan Lembaga Pengarah. Dokumen-dokumen ini dikeluarkan lebih awal untuk membolehkan Lembaga Pengarah mendapat penjelasan daripada pengurusan sebelum mesyuarat Lembaga Pengarah bagi membolehkan tugas-tugasan dilaksanakan dengan berkesan.

Ahli-ahli Lembaga Pengarah boleh menggunakan nasihat dan khidmat Setiausaha Syarikat dan ahli-ahli profesional bagi semua maklumat berhubung dengan Kumpulan sama ada dalam keupayaan Lembaga Pengarah penuh atau secara individu untuk membantu mereka dalam menjalankan tugas-tugas.

4. Latihan Pengarah-pengarah

Semua Pengarah telah menamatkan Program Akreditasi Mandatori dan memenuhi keperluan Program Pendidikan Berterusan seperti yang dikehendaki oleh Bursa Securities sebelum ini.

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>> In addition, the Directors have also attended the relevant

training programme pursuant to the requirements of the Bursa Securities to broaden their perspectives and to keep abreast with the development in the business environment as well as relevant new regulatory requirements.

Training programmes and seminars attended by the Directors during the year were as follows:

Name of Directors programmes

YBhg Dato’ Haji Abd Karim bin Munisar

• Water Congress APAC Series

YBhg Dato’ Haji Azlan bin Hashim

• Bank Negara Malaysia: Financial Institutions Directors Education Program

• Musharakah & Its Application in Islamic Finance

YBhg Dato’ Haji Ab Halim bin Mohyiddin

• Corporate Governance Guide – Towards Boardroom Excellence

Encik Wong Yien Kim • Overseas Business Expansion “Corporate Structure, International Tax Planning and Financial Management”

• A Strategy for Sustainability: The Challenge and the Response

Encik Mustaffa Kamil bin Ayub

• Mandatory Accreditation Programme

The Directors will continue to attend other relevant

training programmes as appropriate to enhance their skills and knowledge.

5. Re-election of Directors

In accordance with the Company’s Articles of Association, all directors who are appointed by the Board are subject to election by shareholders at the first opportunity after their appointment. The Articles also provide that at least one third of the remaining Directors be subject to re-election by rotation at each Annual General Meeting provided always that all Directors including the Executive Director shall retire from office at least once every three years but shall be eligible for re-election.

Semua Pengarah turut menyertai program latihan yang berkaitan selaras dengan syarat-syarat Bursa Securities bagi meluaskan perspektif dan mendapatkan maklumat terkini berkenaan perkembangan di dalam persekitaran perniagaan, serta syarat-syarat terkini kawal selia yang berkaitan.

Program-program latihan dan seminar-seminar yang dihadiri oleh Pengarah-pengarah dalam tahun ini adalah seperti berikut:

Nama Pengarah-Pengarah Program-Program

YBhg Dato’ Haji Abd Karim bin Munisar

• Water Congress APAC Series

YBhg Dato’ Haji Azlan bin Hashim

• Bank Negara Malaysia: Financial Institutions Directors Education Program

• Musharakah & Its Application in Islamic Finance

YBhg Dato’ Haji Ab Halim bin Mohyiddin

• Corporate Governance Guide – Towards Boardroom Excellence

Encik Wong Yien Kim • Overseas Business Expansion “Corporate Structure, International Tax Planning and Financial Management”

• A Strategy for Sustainability: The Challenge and the Response

Encik Mustaffa Kamil bin Ayub

• Mandatory Accreditation Programme

Pengarah-pengarah akan terus menghadiri program-

program lat ihan berkaitan yang sesuai untuk mempertingkatkan kemahiran dan pengetahuan mereka.

5. Pemilihan Semula Pengarah-pengarah

Selaras dengan Tataurusan Penubuhan Syarikat, semua Pengarah yang dilantik oleh Lembaga Pengarah adalah tertakluk kepada pemilihan oleh pemegang-pemegang saham pada peluang pertama selepas perlantikan mereka. Tataurusan juga memperuntukkan bahawa sekurang-kurangnya satu pertiga daripada Pengarah selebihnya adalah tertakluk kepada pemilihan semula mengikut pusingan pada setiap Mesyuarat Agung Tahunan dengan syarat kesemua Pengarah termasuk Pengarah Eksekutif hendaklah bersara dari pejabat sekurang-kurangnya satu kali setiap tiga tahun tetapi adalah layak untuk pemilihan semula.

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The Board has empowered the Nomination Committee to consider and make their recommendation to the Board for the continuation in service of those Directors who are due for retirement.

B. RELATIONsHIp WITH sHAREHOLDERs

The Company recognises the importance of transparency and accountability in disclosures of the Group’s business activities to its shareholders and investors. The Board has maintained an effective communications policy that enables both the Board and Management to communicate effectively with its shareholders, investors and even the public vide the following:

i. The Annual Report and relevant circulars despatched to shareholders and published in the Company’s website; and

ii. Issuance of various disclosures and announcements inclusive of the quarterly financial performance of the Group to Bursa Securities.

In addition, the Group has established a website at http://www.kps.com.my which shareholders can access for information and seek clarification on the Group’s matters.

Alternatively, they may obtain the Group’s latest announcements via the Bursa Securities website at http://announcements.bursamalaysia.com.

Annual General meeting (AGm)

The AGM is the principal forum for dialogue with shareholders.

The Annual Report together with the Notice of AGM are sent to shareholders within the prescribed period as allowed under the Company’s Memorandum and Articles of Association, listing requirements of Bursa Securities as the case maybe.

At the AGM, the shareholders are given the opportunity to seek clarification on any matter pertaining to the business activities and financial performance of the Company and of the Group. Additionally, a press conference may be held after the AGM to brief the media on the Group’s performance for the financial year and future prospect.

Lembaga Pengarah member i kuasa kepada Jawatankuasa Pencalonan untuk menimbang dan memberi cadangan mereka kepada Lembaga Pengarah bagi meneruskan khidmat Pengarah-pengarah yang telah sampai masa untuk bersara.

b. hUbUNgAN DENgAN PEMEgANg-PEMEgANg SAhAM

Syarikat menyedari kepentingan ketelusan dan kebertanggungjawaban dalam pendedahan aktiviti perniagaan Kumpulan kepada pemegang-pemegang saham dan pelabur-pelaburnya. Lembaga Pengarah telah mengekalkan polisi komunikasi yang berkesan yang membolehkan kedua-dua Lembaga Pengarah dan Pengurusan berkomunikasi secara efektif dengan pemegang-pemegang saham, pelabur-pelabur malah orang awam juga melalui kaedah berikut:

i. Laporan Tahunan dan pekeliling-pekeliling yang berkaitan yang dihantar kepada pemegang-pemegang saham dan diterbitkan di laman web Syarikat; dan

ii. Terbitan pelbagai pemberitahuan dan pengumuman termasuk keputusan kewangan suku tahunan Kumpulan yang dibuat kepada Bursa Securities

Di samping itu, Kumpulan turut mewujudkan sebuah laman web yang beralamat di http://www.kps.com.my di mana pelabur-pelabur boleh mendapatkan maklumat dan penjelasan lanjut mengenai Kumpulan.

Sebagai alternatif, pelabur-pelabur boleh mendapatkan pengumuman-pengumuman terk in i mengenai Kumpulan melalui laman web Bursa Securities di http://announcements.bursamalaysia.com.

Mesyuarat Agung Tahunan (MAT)

MAT merupakan forum dialog utama dengan pemegang-pemegang saham.

Laporan Tahunan bersama-sama dengan Notis MAT dihantar kepada pemegang-pemegang saham dalam kadar masa tertentu seperti yang dibenarkan di bawah Tataurusan dan Tataujud Syarikat, ataupun dalam kes tertentu keperluan penyenaraian Bursa Securities.

Semasa prosiding MAT, pemegang-pemegang saham diberi peluang untuk mendapatkan penjelasan berhubung pelbagai aspek berkaitan aktiviti dan prestasi kewangan Syarikat dan Kumpulan. Di samping itu juga, satu sidang media boleh diadakan sebaik sahaja selepas MAT, bagi memaklumkan kepada media berkenaan prestasi Kumpulan bagi tahun kewangan yang berkenaan dan prospek masa hadapan.

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>>C. ACCOUNTABILITY AND AUDIT

1. Internal Controls and Risk management

The Board acknowledges its responsibility for establishing a sound system of internal controls to safeguard shareholders’ investments and Group’s assets, and to provide assurance on the reliability of the financial statements. In addition, equal priority is given to internal controls of its business management and operational techniques.

While the internal controls system is devised to cater for particular needs of the Group as well as risk management, such controls by their nature can only provide reasonable assurance but not absolute assurance against material misstatement or loss. A statement of internal controls is set out from pages 50 to 55 of this Annual Report.

Establishment of the Risk Management Policy is to identify, evaluate and manage the Group’s corporate risk profile and develop contingency plans to mitigate any possible adverse effects on the Group.

2. Financial Reporting

In presenting the annual financial statements and quarterly announcements of its results, the Board has ensured that the financial statements represent a true and fair assessment of the Company’s and Group’s financial position.

3. Relationship with Auditors

The role of the Audit Committee in relation to the external auditors may be found in the Audit Committee Report included in this Annual Report. The Company and its management have always maintained a close and transparent relationship with its auditors in seeking professional advice and ensuring compliance with the accounting standards in Malaysia.

D. ADDITIONAL COmpLIANCE INFORmATION

In compliance with the Listing Requirements of Bursa Securities the following additional information in respect of the financial year ended 31 December 2009 are provided:

1. share Buy Back

The Company does not have any share buy back scheme.

C. KEbERTANggUNgJAwAbAN DAN AUDIT

1. Kawalan Dalaman Dan Pengurusan Risiko

Lembaga Pengarah mengesahkan tanggungjawabnya bagi menubuhkan sistem kawalan dalaman yang baik untuk mengawal pelaburan pemegang-pemegang saham dan aset-aset Kumpulan, dan untuk memastikan kesahihan penyediaan penyata kewangan. Selain itu, keutamaan yang saksama diberikan kepada kawalan dalaman daripada pengurusan perniagaan dan teknik operasi.

Walaupun sistem kawalan dalaman dirangka untuk memenuhi keperluan khusus Kumpulan dan juga pengurusan risiko, kawalan sedemikian mengikut sifatnya hanya boleh memberikan kepastian yang berpatutan dan bukan mutlak terhadap salah nyata ketara atau kerugian. Penyata kawalan dalaman dikemukakan dari muka surat 50 hingga 55 di dalam Laporan Tahunan ini.

Penubuhan Polisi Pengurusan Risiko bertujuan untuk mengenalpasti, menilai dan mengurus profil risiko korporat Kumpulan dan membangunkan rancangan kontingensi untuk mengurangkan sebarang kesan yang buruk ke atas Kumpulan.

2. Laporan Kewangan

Dalam membentangkan penyata-penyata kewangan tahunan dan pengumuman keputusan-keputusan suku tahunan, Lembaga Pengarah telah memastikan bahawa penyata-penyata kewangan menunjukkan penilaian sebenar dan adil tentang kedudukan kewangan Syarikat dan Kumpulan.

3. hubungan Dengan Juruaudit

Peranan Jawatankuasa Audit dalam hubungannya dengan juruaudit luar adalah seperti yang dinyatakan di dalam Laporan Jawatankuasa Audit, Laporan Tahunan ini. Syarikat dan pengurusannya sentiasa memastikan wujudnya hubungan yang telus dan rapat dengan juruaudit-juruauditnya dalam usaha mendapatkan nasihat profesional dan pematuhan kepada piawaian-piawaian perakaunan di Malaysia.

D. MAKLUMAT PEMATUhAN TAMbAhAN

Selaras dengan Keperluan Penyenaraian Bursa Securities maklumat-maklumat berikut turut disenaraikan bagi tahun kewangan yang berakhir pada 31 Disember 2009.

1. Pembelian Semula Saham

Syarikat tidak mempunyai skim pembelian balik saham.

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2. Options Granted And Terminated In The Financial Year 2009

During the financial year under review, the number of Options granted and terminated are as follows:

2. Opsyen Yang Ditawarkan Dan Ditamatkan Dalam Tahun Kewangan 2009

Dalam tahun kewangan yang dikaji, bilangan opsyen yang ditawarkan dan ditamatkan adalah seperti berikut:

3. Sanksi Dan/Atau Penalti Dikenakan Ke Atas Syarikat & Anak-Anak Syarikat, Pengarah-pengarah Atau Pengurusannya Oleh badan Peraturan berkaitan

Tidak ada sanksi atau penalti material yang dikenakan ke atas Syarikat dan anak-anak syarikatnya, pengarah-pengarah atau pengurusan oleh badan-badan berperaturan berkaitan dalam tahun kewangan 2009.

4. Jaminan Keuntungan

Dalam tahun kewangan 2009, tidak ada jaminan keuntungan diberikan oleh Syarikat.

5. Kontrak Penting

Selain daripada yang dimaklumkan di dalam Nota 47, 50 dan 51. Penyata Kewangan, Syarikat dan anak-anak syarikatnya tidak menandatangani apa-apa kontrak penting yang melibatkan Pengarah-pengarah dan pemegang saham utama.

6. Perbezaan hasil Pencapaian

Tiada perbezaan sebanyak 10% ataupun lebih bagi hasil pencapaian tahun kewangan yang berakhir pada 31 Disember 2009 dan keputusan-keputusan belum diaudit yang diumumkan.

Grant Date/Tarikh

Tawaran

Expiry Date/Tarikh Tamat

Tempoh

Exercised price/harga

Perlaksanaan Rm

As At/Pada 1/1/2009

‘000

Granted/Ditawar

‘000

Terminated/Ditamatkan

‘000

Exercised/Jumlah Dilaksanakan

‘000As At/Pada 31/12/2009

‘000

12/8/2003 29/7/2011 1.62 3,930 – – (150) 3,78027/2/2007 29/7/2011 1.00 3,250 – – – 3,25023/7/2007 29/7/2011 1.62 755 – – – 75526/7/2007 29/7/2011 1.62 92 – – (10) 823/8/2007 29/7/2011 1.98 25 – – – 2517/7/2008 29/7/2011 1.93 550 – – – 55010/11/2008 29/7/2011 1.37 200 – (200) – –5/5/2009 29/7/2011 1.62 – 2,974 (223) – 2,751

8,802 2,974 (423) (160) 11,193

3. sanctions And/Or penalties Imposed On The Company And Its subsidiaries, Directors Or management By The Relevant Regulatory Bodies

There were no material sanctions or penalties imposed on the Company and its subsidiaries, directors or management by the relevant regulatory bodies during the financial year 2009.

4. profit Guarantees

During the financial year 2009, there were no profit guarantees given by the Company.

5. material Contract

Other than as disclosed in Notes 47, 50 and 51 the Financial Statements, there were no material contracts entered into by the Company and its subsidiaries involving Directors and major shareholders.

6. Variance in Results

There were no variances of 10% or more between the results for the financial year ended 31 December 2009 and the unaudited results previously announced.

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>>7. Utilisation of proceeds

The Company did not call or raise any capital for the financial year ended 31 December 2009.

8. Non-Audit Fees

The amount of non-audit fees paid to external auditors by the Company and its subsidiaries for the financial year 2009 was RM112,000.00.

9. Revaluation policy on Landed properties

The Company does not have a policy of regular revaluation of landed properties.

10. American Depository Receipt (ADR) or Global Depository Receipt (GDR) programme

The Company did not sponsor any ADR or GDR programme during the financial year under review.

11. List of properties

The Company’s list of properties is set out from page 194 to 197 of this Annual Report.

E. BOARD COmmITTEEs

1. Audit Committee

The composition and functions of the Audit Committee are laid down from pages 56 to 63 of this Annual Report.

2. Nomination Committee

The Nomination Committee is responsible for recommending suitable candidate with the necessary skills, experience and competencies to be appointed to the Board and also assessing the effectiveness of the Board and the contribution of each director. The Board, through this Committee, review the required mix of skills and experience and other qualities the Board requires, in order for it to discharge its duties effectively.

7. Penggunaan Pendapatan

Syarikat tidak membuat sebarang panggilan atau penambahan modal untuk tahun kewangan berakhir 31 Disember 2009.

8. Yuran bukan Audit

Jumlah yuran bukan audit yang dibayar kepada juruaudit luaran oleh Syarikat dan anak-anak syarikatnya bagi tahun kewangan 2009 ialah RM112,000.00.

9. Polisi Penilaian Semula hartanah

Syarikat tidak mempunyai polisi bagi penilaian berkala hartanahnya.

10. Program Resit Depositori Amerika (“ADR”) atau Resit Depositori global (“gDR”)

Syarikat tidak menaja sebarang program “ADR” atau “GDR” bagi tahun kewangan yang ditinjau.

11. Senarai hartanah

Senarai hartanah Syarikat dinyatakan dari muka surat 194 hingga 197 Laporan Tahunan ini.

E. JAwATANKUASA-JAwATANKUASA LEMbAgA PENgARAh

1. Jawatankuasa Audit

Komposisi dan fungsi-fungsi Jawatankuasa Audit adalah seperti dimaklumkan dari muka surat 56 hingga 63 dalam Laporan Tahunan ini.

2. Jawatankuasa Pencalonan

Jawatankuasa Pencalonan bertanggungjawab mengesyorkan calon-calon yang bersesuaian dari segi kemahiran, pengalaman dan kelayakan untuk dilantik sebagai ahli Lembaga Pengarah dan juga menilai tahap keberkesanan Lembaga Pengarah serta sumbangan setiap Pengarah. Lembaga Pengarah, melalui Jawatankuasa ini, mengkaji kepakaran dan pengalaman serta kual i t i-kual i t i la in yang diperlukan, bagi membolehkan Lembaga Pengarah melaksanakan tugasnya dengan berkesan.

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During the financial year, the Board accepted the recommendations by the Nomination Committee for the re-election of directors, renewal of YBhg. Dato’ Haji Abd. Karim bin Munisar contract of service as a Chairman of KPS, interview for prospect candidate of Chief Executive Officer of KPS, appointment of Encik Mustaffa Kamil bin Ayub as a new Board Member and Audit Committee. The Nomination Committee met five (5) times during the year.

3. Remuneration Committee

The Company has adopted the object ive as recommended by the Code on Corporate Governance to determine the remuneration of the Directors so as to ensure that the Company attracts and retains the Directors needed to run the Company successfully. The component parts are designed to link rewards to corporate and individual performance in the case of Executive Director.

The Remuneration Committee met once (1) during the year to recommend the proposed remuneration package for Chairman of KPS. The Remuneration Committee also reviewed and recommended to the Board the annual bonus and salary increment of the Company’s employees.

4. Employee share Option scheme (EsOs) Committee

The ESOS Committee was established to administer the implementation of KPS Employee Share Option Scheme in accordance with the approved bye-laws; to determine participation eligibility, option offers, share allocations; and to attend to such other matters as may be required.

The members of the Committee met once during the year to deliberate on issues relating to the Scheme.

Dalam tahun kewangan, Lembaga Pengarah telah mener ima cadangan-cadangan Jawatankuasa Pencalonan bagi perlantikan semula Pengarah, pembaharuan kontrak perkhidmatan YBhg. Dato’ Haji Abd. Karim bin Munisar sebagai Pengerusi KPS, hasil proses temuduga calon prospek Ketua Pegawai Eksekutif KPS, perlantikan Encik Mustaffa Kamil bin Ayub sebagai Ahli Lembaga Pengarah dan Jawatankuasa Audit yang baru. Jawatankuasa Pencalonan telah bermesyuarat lima (5) kali dalam tahun ini.

3. Jawatankuasa Imbuhan

Syarikat menerima pakai objektif sebagaimana yang disyorkan oleh Kod Tadbir Urus Korporat untuk menentukan imbuhan Pengarah-pengarah bagi memastikan Syarikat menarik dan mengekalkan Pengarah-pengarah yang d ipe r l ukan un tuk mengendalikan Syarikat dengan jayanya. Bahagian-bahagian komponen dibentuk untuk menghubungkan ganjaran kepada prestasi korporat dan individu bagi Pengarah Eksekutif.

Jawatankuasa Imbuhan telah bermesyuarat satu (1) kali dalam tahun ini bagi mencadangkan pakej ganjaran untuk Pengerusi KPS. Jawatankuasa Imbuhan juga mengkaji dan mengesyorkan kepada Lembaga Pengarah bonus tahunan dan kenaikan gaji kakitangan-kakitangan Syarikat.

4. Jawatankuasa Skim Opsyen Saham Kakitangan (“ESOS”)

Jawatankuasa “ESOS” telah ditubuhkan untuk menguruskan pelaksanaan Skim Opsyen Saham Kakitangan KPS selaras dengan undang-undang kecil, untuk menentukan kelayakan penyertaan, tawaran opsyen, peruntukan saham dan menangani perkara-perkara lain sebagaimana mungkin diperlukan.

Ahli-ahli Jawatankuasa telah bermesyuarat satu (1) kali dalam tahun ini bagi membincangkan isu-isu berkaitan Skim.

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>>F. DIRECTORs’ REmUNERATION

A summary of the remuneration of the Directors for the financial year ended 31 December 2009, distinguishing between Executive Directors and Non-Executive Directors in aggregate, with categorisation into appropriate components is set out below:

F. gANJARAN PENgARAh

Ringkasan mengenai imbuhan kepada Pengarah-pengarah bagi tahun kewangan berakhir 31 Disember 2009 dengan perbezaan di antara Pengarah-pengarah Eksekutif dan Pengarah-pengarah Bebas Bukan Eksekutif, dalam agregat, dikategorikan ke dalam komponen yang sesuai seperti dinyatakan di bawah:

Executive Directors/Pengarah-Pengarah

Eksekutif (Rm)

Non-Executive Directors/Pengarah-Pengarah bebas

bukan Eksekutif (Rm)Total/

Jumlah (Rm)

Fees/Yuran 409,500 258,617 668,117Salary/Gaji 1,176,205 – 1,176,205Bonus/Bonus 270,000 – 270,000Benefit-in-kind/Manfaat 253,500 135,000 388,500Others/Lain-lain 118,400 144,000 262,400

Remuneration Band/Tahap ganjaran (Rm)

Executive Directors/Pengarah-Pengarah Eksekutif

Non-Executive Directors/ Pengarah-Pengarah bebas

bukan Eksekutif

Less than/kurang dari 50,000 – 1100,001 – 150,000 – 2250,001 – 300,000 – 11,050,001 – 1,100,000 1 –1,150,001 – 1,200,000 1 –

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>>Statement of Internal Controls

penyata kawalan dalaman

2. REspONsIBILITY OF THE BOARD

The Board recognises the importance of sound internal controls and risk management practices for good corporate governance. The Board affirms its overall responsibility for the Group’s system of internal controls and for reviewing its adequacy and integrity. Such a system covers not only financial controls but also controls relating to operational, risk management and compliance with applicable laws, regulations, rules, and guidelines.

In view of the inherent limitations in any system of internal control, this system is designed to identify and manage risk, rather than eliminate the risk of failure to achieve the Group’s business objectives. Accordingly, the system can only provide reasonable and not absolute assurance against material misstatement or loss.

The Group has in place ongoing processes for identifying, evaluating, monitoring and managing significant risks faced by the Group during the year. The management is responsible for the identification and evaluation of significant risks applicable to their respective areas of business and to formulate suitable internal controls. This process is reviewed by the Board via a specific Board Committee which dedicates its time at periodic intervals throughout the year for discussion on this matter.

2. TANggUNgJAwAb LEMbAgA PENgARAh

Lembaga Pengarah mengakui kepentingan sistem kawalan dalaman dan pengurusan risiko yang baik dalam tadbir urus korporat. Lembaga Pengarah mengesahkan tanggungjawab sepenuhnya ke atas sistem kawalan dalaman Kumpulan dan mengkaji kecukupan serta kete lusannya. Sistem yang dimaksudkan tidak hanya merangkumi kawalan kewangan tetapi juga kawalan berkaitan operasi, pengurusan risiko dan pematuhan kepada undang-undang, peraturan-peraturan serta garis-garis panduan.

Memandangkan wujudnya batasan yang sedia ada dalam mana-mana sistem kawalan dalaman, sistem ini telah direka untuk mengurus risiko-risiko yang akan menghalang pencapaian objektif-objektif perniagaan Kumpulan dan bukan untuk mengenepikannya. Oleh itu, sistem ini hanya menyediakan kepastian yang berpatutan dan bukan mutlak terhadap salah nyata yang ketara atau kerugian.

Kumpulan mengesahkan bahawa terdapat proses-proses berterusan untuk tujuan mengenal pasti, menilai, memantau dan mengurus risiko-risiko utama yang dihadapi o leh Kumpulan. P ihak pengurusan bertanggungjawab mengenalpasti dan menilai risiko-risiko utama yang berkaitan dengan perniagaan dan untuk melaksanakan sistem kawalan dalaman yang sesuai. Proses ini seterusnya dikaji oleh Lembaga Pengarah melalui satu Jawatankuasa Lembaga khas yang bermesyuarat dari masa ke semasa untuk membincangkan perkara ini.

1. Introduction

The Bursa Malaysia Securities Berhad Listing Requirements requires directors of listed companies to include a statement in their annual reports on the state of their internal controls. The Board of Directors is pleased to provide the following statement, which outlines the nature and scope of internal control of the Group during the financial year ended 31 December 2009.

1. Pendahuluan

Peraturan Penyenaraian Bursa Malaysia menghendaki Lembaga Pengarah syarikat-syarikat tersenarai menyediakan satu penyata di dalam laporan tahunan berkenaan kedudukan kawalan dalaman mereka. Lembaga Pengarah dengan sukacita menyediakan laporan yang menggariskan jenis dan skop kawalan dalaman Kumpulan bagi tahun kewangan yang berakhir pada 31 Disember 2009.

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Material associated companies have not been dealt with as part of the Group for the purpose of this internal control statement. However, the Board is of the view that the management of these material associated companies has an existing monitoring function to assist them in ensuring the system of internal controls is functioning as intended.

3. RIsK mANAGEmENT

The Board has established an organisational structure with clearly defined lines of accountability and delegated authority. The monitoring and review of system of internal control was under the ambit of the Audit Committee since its formation in the year 1998. In the year 2002, the implementation of a risk management framework within the Group was also included under the purview of the Audit Committee.

The Group has in place an on-going process for identifying, evaluating, monitoring and managing significant risks, and this process is regularly reviewed by the Audit Committee, who presents its findings to the Board. Risks are identified and classified into ten (10) components namely, external, regulatory, legal, corporate governance, finance, customers, products and services suppliers, human capital and operational risks.

A R isk Management F ramework has been implemented in the Company and certain subsidiaries of the Group. The respective Management will review their Corporate Risk Scorecard on a regular basis. Signif icant changes in the risk profi les of the companies will be presented to the Audit Committee on a periodic basis.

Syarikat-syarikat bersekutu yang ketara tidak terlibat sebagai sebahagian daripada Kumpulan bagi tujuan penyata kawalan dalaman ini. Walau bagaimanapun, Lembaga Pengarah berpendapat bahawa pihak pengurusan syarikat-syarikat bersekutu tersebut mempunyai fungsi pemantauan sedia ada bagi membantu mereka memastikan sistem kawalan dalaman berfungsi seperti yang dikehendaki.

3. PENgURUSAN RISIKO

Lembaga Pengarah telah mewujudkan satu struktur o r g a n i s a s i y a n g m e n t a k r i f d e n g a n j e l a s kebertanggungjawaban dan delegasi kuasa. Urusan pemantauan dan kajian tentang kawalan dalaman adalah di bawah had kuasa Jawatankuasa Audit sejak penubuhannya pada tahun 1998. Dalam tahun 2002, pelaksanaan rangka kerja pengurusan risiko di dalam Kumpulan turut dimasukkan dalam bidang kuasa Jawatankuasa Audit.

Kumpulan mempunyai proses yang berterusan untuk mengenalpasti, menilai, memantau dan mengurus risiko utama dan proses ini sentiasa dikaji semula oleh Jawatankuasa Audit yang akan membentangkan hasil kajian kepada Lembaga Pengarah. Risiko-risiko dikenal pasti dan dikelaskan kepada sepuluh (10) komponen iaitu luaran, bersabit peraturan, undang-undang, tadbir urus korporat, kewangan, pelanggan-pelanggan, pembekal-pembekal produk dan perkhidmatan, sumber manusia dan risiko-risiko operasi.

Jawatankuasa Pengurusan Risiko telah ditubuhkan di peringkat Syarikat dan di beberapa anak syarikat di dalam Kumpulan. Pihak Pengurusan akan mengkaji Kad Risiko Korporat dalam jangkamasa yang ditetapkan. Sebarang perubahan besar di dalam profil risiko syarikat akan dibentangkan kepada Jawatankuasa Audit pada jangkamasa yang tertentu.

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4. CONTROL sTRUCTURE AND ENVIRONmENT

The Board is fully committed to ensuring that a proper control environment is maintained within the Group. The key elements of the Group’s internal control system are described below:

4.1 Board Committees have clearly defined roles and Terms of Reference

Respective Board Committees have individual roles and Terms of Reference, with clearly defined functions, authority and responsibilities. The management of the various companies in the Group is entrusted to the respective Chief Executive Officers or Chief Operating Officers, whose role and responsibilities are defined in the Job Description and whose authority limits are set by the respective Boards. All major decisions require the final approval of the Boards within the Group and are only made after appropriate in-depth analysis. The respective Boards receive regular and comprehensive information covering all divisions in the respective companies within the Group.

4.2 Independence of the Audit Committee

The Audit Committee comprises non-executive members of the Board who bringing with them a wide range of in-depth experience, knowledge and expertise. They continue to meet and have full and unimpeded access to both the internal and external auditors during the financial year. The Audit Committee provides direction and oversight to the internal audit function to enhance its independence from management.

4. STRUKTUR KAwALAN DAN PERSEKITARAN

Lembaga Pengarah memberikan sepenuh komitmen bagi memastikan kawalan persekitaran yang betul dan sesuai dikekalkan dalam Kumpulan. Elemen-elemen utama dalam sistem-sistem kawalan dalaman Kumpulan adalah seperti berikut:

4.1 Struktur organisasi yang mentakrifkan dengan je las peranan-peranan dan tanggungjawab-tanggungjawab

Jawatankuasa Lembaga mempunyai peranan dan terma rujukan yang secara jelas mendefinisikan fungsi, bidang kuasa dan tanggungjawab masing-masing. Pengurusan Syarikat-Syarikat di dalam Kumpulan dipertanggungjawabkan kepada Ketua Pegawai Eksekutif atau Ketua Pegawai Operasi, di mana peranan dan tanggungjawab mereka diperjelaskan di dalam deskripsi tugas dan had kuasa mereka ditetapkan oleh Lembaga Pengarah masing-masing. Semua keputusan penting yang diambil oleh pihak pengurusan memerlukan kelulusan Lembaga Pengarah di dalam Kumpulan dan hanya akan diputuskan selepas kajian yang mendalam dijalankan. Lembaga Pengarah bagi setiap syarikat di dalam Kumpulan turut menerima laporan lengkap yang meliputi semua bahagian di dalam syarikat masing-masing.

4.2 Jawatankuasa Audit sebagai entiti bebas

Jawatankuasa Audit terdiri daripada ahli-ahli Lembaga Pengarah Bukan Eksekutif yang mempunyai pengalaman, pengetahuan dan kepakaran yang luas. Jawatankuasa Audit bermesyuarat dan mengadakan perjumpaan dengan juruaudit-juruaudit dalaman dan luaran tanpa sebarang sekatan sepanjang tahun kewangan. Jawatankuasa ini menentukan arah dan penyeliaan terhadap fungsi audit dalaman bagi memastikan ia bebas dari pihak pengurusan.

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4.3 Documented internal policies and procedures

The Group continues to update the Standard Operating Manuals for improvement and to reflect changes in the business structure and processes as and when necessary.

In 2009, the Group formulated the Delegation of Authority Policy (DoA) and reviewed the exist ing Limit of Authority/Financial Limit (LOA/FAL) to enhance its internal control system and to align the subsidiaries LOA/FAL to the Group’s LOA/FAL. The revised policies for KPS and the subsidiaries were approved by the respective Boards in February and April 2010 respectively.

The Group also formulated and implemented the ICT Policy and Guidelines to ensure proper protection of ICT resources, data integrity and security. The ICT Policy and Guidelines were approved by the Board and enforced in April 2008. Each employee had been given a hard copy of the said policy. To enhance the policy awareness of the employee, the policy has a direct link (in a form of soft copy) to the new HRA Website which was launched in April 2010. All employees have a direct access to this link.

In December 2008, KPS had launched the ISO 9001:2008 Qual i ty Management System certification program for its Building Maintenance Unit as part of KPS’ strategic initiatives. The registration to ISO 9001:2008 by an accredited certification body shows KPS’ commitment to quality operating standards, its customers, and a wil l ingness to work continuously towards improving operational eff iciency. The ISO Certification was obtained on 1 April 2009.

The Board has also established a Tender Committee to ensure transparency, integrity and competitive pricing of the award process.

4.3 Dokumentasi polisi dan prosedur dalaman

Kumpulan sentiasa mengemaskini Buku Panduan Operasi dengan mengambilkira sebarang perubahan dalam proses-proses dan struktur perniagaan apabila perlu.

Pada tahun 2009, KPS telah memformulasi Polisi Pengagihan Kuasa dan mengkaji semula Had K u a s a / H a d K u a s a K e w a n g a n u n t u k mempertingkatkan sistem kawalan dalaman dan menyelaraskan Had Kuasa/Had Kuasa Kewangan anak-anak syarikat mengikut Had Kuasa/Had Kuasa Kewangan Kumpulan. Polisi-polisi yang telah dikemaskinikan bagi KPS dan anak-anak syarikatnya telah diluluskan oleh Lembaga Pengarah masing-masing pada bulan Februari dan April 2010.

KPS juga telah memformulasi dan melaksanakan polisi dan garis panduan ICT bagi memastikan semua peranti ICT, keselamatan dan integriti data terpelihara dengan baik. Polisi dan garis panduan ICT telahpun diluluskan oleh Lembaga Pengarah dan dikuatkuasakan pada bulan April 2008. Setiap kakitangan diberi satu salinan polisi untuk rujukan. Bagi meningkatkan kesedaran kewujudan polisi tersebut, Bahagian Sumber Manusia melalui laman webnya yang telah dilancarkan pada April 2010 telah meletakkan polisi tersebut untuk rujukan semua pekerja. Setiap kakitangan mendapat akses kepada laman web tersebut.

Pada bulan Disember 2008, KPS te lah melancarkan inisiatif pensijilan Sistem Pengurusan Kualiti ISO 9001:2008 untuk Unit Pengurusan Bangunan sebagai salah satu langkah strategik KPS. Pendaftaran ISO 9001:2008 oleh badan akreditasi bertauliah telah menunjukkan komitmen KPS terhadap kualiti standard operasi, pelanggan-pelanggan dan usaha berterusan memperbaiki kecekapan operasi. Pensijilan ISO ini telah dicapai pada 1 April 2009.

Lembaga Pengarah telah juga menubuhkan Jawatankuasa Tender bagi memastikan ketelusan dan kewibawaan proses penganugerahan tender.

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4.4 Detailed budgeting process

A detailed budgeting process is established requiring all key operating companies in the Group to prepare budgets annually which are discussed at management level and approved by the respective Audit Committee and Boards.

An effect ive report ing system on actual performance against approved budgets is in place whereby significant variances are followed up on a quarterly basis and management action is taken to tighten or to rectify any shortcomings, where necessary.

4.5 Human Resource policies

Human Resources policies help the organisation to meet the requirements of its employees in various aspects of human resources practices. The policies also serve as a control procedure or guideline to better regulation and corporate governance. HR Policies are reviewed on regular basis to stay up to date with current market trends in employment standards and statutory requirements. The revised policies are in line with the Group Human Resource Objectives and concurrently are not deviated from the Group’s Vision and Mission.

4.4 Proses bajet Terperinci

Proses penyediaan bajet terperinci memerlukan semua syarikat utama di dalam Kumpulan menyediakan bajet tahunan, di mana ia akan dibincangkan dengan pihak pengurusan dan dibentangkan untuk kelulusan oleh Jawatankuasa Audit dan Lembaga Pengarah masing-masing.

Satu sistem laporan yang efektif wujud bagi melaporkan prestasi sebenar berbanding bajet yang diluluskan dan sebarang perbezaan yang ketara akan disusuli oleh pihak pengurusan setiap suku tahun dan tindakan akan diambil untuk memperketat atau memperbetulkan sebarang kekurangan, di mana perlu.

4.5 Polisi Sumber Manusia

Polisi Sumber Manusia membantu organisasi untuk memenuhi keperluan kakitangan dalam pelbagai aspek sumber manusia. Polisi ini juga bertindak sebagai prosedur kawalan atau garis panduan ke arah tadbir urus korporat dan pengawalan yang lebih baik. Polisi Sumber Manusia dikemaskini dari semasa ke semasa agar piawaian perkhidmatan setimpal dengan undang-undang dan aliran pasaran semasa. Polisi yang telah diperkemaskan ini adalah selaras dengan objektif Bahagian Sumber Manusia Kumpulan dan ianya tidak menyimpang, malah sealiran dengan Misi dan Visi Kumpulan.

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5. mONITORING AND REVIEW

The processes adopted to monitor and review the effectiveness of the system of internal control are:

• All subsidiaries submit monthly ManagementReports to the Acting Chief Executive Officer. The report includes review of actual results against budget, with significant variance being explained and necessary actions taken.

• The Board receives and reviews quarterlyperformance reports from the management of the various lines of business with financial performance and progress reports.

• TheGroup’sInternalAuditFunction,whichreportsto Audit Committee performs regular reviews on the internal control procedures and highlights significant risks affecting the Group. The Internal Audit will follow up with the management in respect of the corrective actions taken on those recommendations. The Audit Committee reviews and approves the annual internal audit plan for the year prior to their execution.

• The Audit Committee meets at least quarterly toreview internal audit f indings, discuss risk management plans and ensure that weaknesses in controls highlighted are appropriately addressed by management.

Continuous efforts are undertaken to ensure standardisation, timeliness and comprehensiveness of key internal control procedures. The internal control system has a clear management support, including the involvement of the Board and is designed to address the risks to which the Company is exposed. The Board is satisfied with the design of the control system and is of the view that the system which is in place for the year under review is sound and sufficient to safeguard shareholders’ investments and the Group’s assets.

5. PEMANTAUAN DAN KAJIAN

Proses-proses yang digunakan untuk memantau dan mengkaji keberkesanan sistem kawalan dalaman adalah:

• Pada setiap bulan, anak-anak syarikat dalamKumpulan menghantar Laporan Pengurusan kepada Pemangku Ketua Pegawai Eksekutif. Laporan tersebut mengandungi keputusan kewangan sebenar berbanding bajet, di mana perbezaan ketara akan dijelaskan dan langkah-langkah sewajarnya akan diambil.

• Lembaga Pengarah menerima dan mengkajilaporan prestasi suku tahunan daripada pengurusan pelbagai sektor perniagaan yang merangkumi prestasi kewangan dan laporan kemajuan.

• F u n g s i A u d i t D a l a m a n K u m p u l a n yang bertanggungjawab melapor kepada Jawatankuasa Audit sentiasa mengkaji prosedur sistem kawalan dalaman dan menerangkan risiko-risiko utama yang mempunyai kesan ke atas Kumpulan. Bahagian Audit Dalaman akan memantau tindakan-tindakan yang diambil ke atas cadangan-cadangan yang diberikan kepada pihak pengurusan. Jawatankuasa Audit mengkaji dan meluluskan pelan pengurusan audit dalaman tahunan sebelum ianya dilaksanakan.

• Jawatankuasa Audit bermesyuarat sekurang-kurangnya pada set iap suku tahun bagi menganal isa hasi l kaj ian audit dalaman, membincangkan perancangan pengurusan risiko dan memastikan kelemahan yang dikenalpasti pada sistem kawalan dalaman ditangani oleh pihak pengurusan.

Usaha-usaha yang berterusan diambil untuk memastikan prosedur kawalan dalaman utama yang standard menepati masa dan komprehensif. Sistem kawalan dalaman mendapat sokongan yang sewajarnya dari pihak pengurusan dan juga Lembaga Pengarah bagi membantu Syarikat yang sentiasa terdedah kepada risiko-risiko yang sedia ada. Lembaga Pengarah berpuas hati dengan mutu kawalan dalaman dan berpendapat bahawa sistem yang telah beroperasi bagi tahun semasa adalah kukuh dan mencukupi untuk menjaga kepentingan pelaburan-pelaburan pemegang saham dan juga aset-aset Kumpulan.

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INTRODUCTION

The Audit Committee (Committee) of the Company was established on 2 June 1998 to evaluate theCompany’sfinancialmanagement,internalcontrolsystemsandplanningtoproposeapplicabledecisions.

PENDAhULUAN

Jawatankuasa Audit (Jawatankuasa) Syarikat telah ditubuhkan pada 2 Jun 1998 untuk menilai pengurusan kewangan Syarikat, sistem kawalan dalaman dan perancangan bagi mengemukakan cadangan-cadangan yang bersesuaian.

OBJECTIVEs

The principal objective of the Committee is to assist the Board in discharging its statutory duties and responsibilities relating to accounting and reporting practices of the holding company and each of its subsidiaries.

The Committee shall assist the Board in discharging its duties on the following:

a. Ensure that the implementation of a Risk Management Framework is in place to manage Materials Risks; and

b. Review the adequacy and the integrity of the Company’s Internal Control Systems, Management Information Systems, including systems for compliance with applicable laws, regulations, rules, directives and guidelines.

COmpOsITION

The members of the Committee during the financial year comprise of three (3) Independent Non-Executive Directors as follows:

YBhg Dato’ Haji Ab Halim bin mohyiddin(Chairman - Independent Non-Executive Director)

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

Encik mustaffa Kamil bin Ayub(Independent Non-Executive Director - appointed on 1/11/2009)

Tuan Haji Zain Azahari bin Zainal Abidin(Independent Non-Executive Director - resigned on 25/11/2009)

YBhg Dato’ Haji Ab Halim bin Mohyiddin is a member of the Malaysian Institute of Accountants (MIA).

ObJEKTIF-ObJEKTIF

Objektif utama Jawatankuasa Audit adalah untuk membantu Lembaga dalam melaksanakan tugas dan tanggungjawab yang berkaitan dengan perakaunan dan amalan laporan oleh syarikat induk dan anak-anak syarikatnya.

Jawatankuasa Audit akan membantu Lembaga dalam menunaikan tugas-tugas seperti:

a. Memastikan pelaksanaan yang baik dalam Rangka Kerja Pengurusan Risiko untuk mengurus risiko-risiko utama; dan

b. Menyemak kecukupan dan integriti Sistem Kawalan Dalaman Syarikat, Sistem Pengurusan Maklumat termasuk sistem-sistem pematuhan kepada mana-mana undang-undang, peraturan, arahan dan garis panduan.

KOMPOSISI

Sepanjang tahun kewangan, Jawatankuasa terdir i daripada tiga (3) Pengarah Bukan Eksekutif Bebas seperti berikut:

Ybhg Dato’ haji Ab halim bin Mohyiddin(Pengerusi - Pengarah Bukan Eksekutif Bebas)

Ybhg Dato’ Azlan bin hashim(Pengarah Bukan Eksekutif Bebas)

Encik Mustaffa Kamil bin Ayub(Pengarah Bukan Eksekutif Bebas - dilantik pada 1/11/2009)

Tuan haji Zain Azahari bin Zainal Abidin(Pengarah Bukan Eksekutif Bebas - meletak jawatan pada 25/11/2009)

YBhg Dato’ Haji Ab Halim bin Mohyiddin adalah ahli Institut Akauntan Malaysia (“MIA”).

Audit Committee Reportlaporan jawatankuasa audit

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TERms OF REFERENCE

a. Objectives The primary function of the Audit Committee is to

assist the Board in fulfilling the following oversight objectives on the Group activities:

• Assess the Group’s processes relating to its risksand control environment;

• Oversee financial reporting; and• Evaluate the internal and external audit processes.

b. Composition The Board shall elect and appoint Committee members

from amongst their numbers comprising no fewer than three (3) Directors, the majority of whom shall be Independent Non-Executive Directors of the Company with at least one (1) member must be a member of MIA or has at least three (3) years working experience and passed the examination specified in Part I of the 1st Schedule of the Accountants Act, 1967; or is a member of one (1) of the associations of accountants specified in Part II of the 1st Schedule of the Accountants Act, 1967.

The Board shall, within three (3) months after a member of the Committee resigns, dies or for any reason ceases to be a member with the result that the member is reduced to below three (3), fill the vacancy.

The Chairman of the Committee shall be an Independent Non-Executive Director. No alternate Directors of the Board shall be appointed as a member of the Committee.

The Board shall review the terms of office of each of its members at least once (1) every three (3) years.

c. Quorum and Committee’s procedures Meetings shall be conducted at least four (4) times

annually, or more frequently as circumstances dictate.

In order to form a quorum for the meeting, the majority of the members present must be Independent Non-Executive Directors. In the absence of the Chairman, the members present shall elect a Chairman for meeting from amongst the members present.

TERMA-TERMA RUJUKAN

a. Matlamat Tugas utama Jawatankuasa Audit adalah untuk

membantu Lembaga dalam memenuhi objektif-objektif pengawasan dalam aktiviti-aktiviti Kumpulan seperti berikut:

• Menilai proses-proses Kumpulan yang berkaitandengan risiko dan kawalan persekitaran;

• Mengawasi laporan kewangan; dan• Menilai proses-proses audit dalaman dan luaran.

b. Komposisi Lembaga harus memilih dan melantik ahli Jawatankuasa

dari kalangan mereka yang terdiri tidak kurang daripada tiga (3) orang Pengarah, di mana majoriti daripada mereka harus terdiri daripada Pengarah Bukan Eksekutif Bebas di mana sekurang-kurangnya seorang (1) ahli mesti menjadi ahli Institut Akauntan Malaysia atau mempunyai sekurang-kurangnya tiga (3) tahun pengalaman bekerja dan lulus peperiksaan seperti yang ditetapkan dalam Bahagian I Jadual 1 Akta Akauntan, 1967; atau merupakan ahli salah sebuah persatuan akauntan seperti yang ditetapkan dalam Bahagian II Jadual 1 Akta Akauntan, 1967.

Lembaga harus memenuhi kekosongan dalam tempoh tiga (3) bulan selepas ahli Jawatankuasa meletak jawatan, meninggal dunia atau atas apa-apa sebab tidak menjadi ahli yang menyebabkan jumlah ahli kurang daripada tiga (3) orang.

Pengerusi Jawatankuasa harus terdiri daripada seorang Pengarah Bukan Eksekutif Bebas. Tiada Pengarah gantian kepada Lembaga akan dilantik sebagai ahli Jawatankuasa Audit.

Lembaga harus mengkaji tempoh memegang jawatan setiap ahli sekurang-kurangnya sekali (1) setiap tiga (3) tahun.

c. Korum dan Prosedur Jawatankuasa Mesyuarat-mesyuarat harus diadakan sekurang-kurangnya

empat (4) kali setahun, atau lebih kerap jika perlu.

Bagi mewujudkan korum mesyuarat, majoriti ahli-ahli yang hadir mestilah Pengarah Bukan Eksekutif Bebas. Semasa ketiadaan Pengerusi, ahli-ahli yang hadir hendaklah melantik seorang Pengerusi bagi mesyuarat tersebut di kalangan ahli-ahli yang hadir.

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The Company Secretary shall be appointed as Secretary of the Committee. The Secretary, in conjunction, with the Chairman, shall draw up an agenda, which shall be circulated together with relevant support papers, within reasonable time prior to each meeting to the members of the Committee.

The Committee may, as and when deemed necessary, invite other Board members and Senior Management members to attend the meetings.

The Committee shall meet at least once a year with the external auditors to discuss any matter with the Committee without the presence of any Executive member of the Board and Management.

The Committee shal l regulate the manner of proceedings of its meetings, having regard to normal conventions on such matter.

d. Authority The Committee is authorised to investigate any matter

within its terms of reference.

The Committee is authorised to seek any information it requires from employees, who are required to cooperate with any request made by the Committee.

The Committee shall have full and unlimited access to any information pertaining to the Group.

The Committee shall have communication channel with the internal and external auditors and with senior management of the Group and shall be able to convene meetings with the external auditors whenever deemed necessary.

The Committee shall have the resources that are required to perform its duties. The Committee can obtain, at the expense of the Company, outside legal or other independent professional advice it considers necessary.

Where the Committee is of the view that a matter reported by it to the Board has not been satisfactorily resolved resulting in a breach of any regulatory requirements, the Committee shall promptly report such matter to the relevant authorities.

Setiausaha Syarikat akan dilantik sebagai Setiausaha Jawatankuasa. Setiausaha, bersama Pengerusi, akan menyediakan agenda yang akan diedarkan bersama kertas sokongan berkaitan, dalam tempoh yang sewajarnya kepada ahli Jawatankuasa sebelum setiap mesyuarat.

Jawatankuasa ini boleh, apabila dianggap perlu, menjemput ahli-ahli Lembaga yang lain dan meminta ahli-ahli Pengurusan Kanan untuk menghadiri mesyuarat.

Jawatankuasa ini akan bermesyuarat sekurang-kurangnya sekali setahun dengan juruaudit luaran untuk membincangkan apa-apa perkara dengan Jawatankuasa tanpa kehadiran Lembaga Pengarah Eksekutif dan Pengurusan.

Jawatankuasa hendaklah mengatur prosiding mesyuarat menurut konvensyen biasa mengenai perkara tersebut.

d. Kuasa Jawatankuasa ini diberi kuasa untuk menyiasat

sebarang perkara dalam bidang tugasnya.

Jawatankuasa ini diberi kuasa untuk mencari sebarang maklumat yang diperlukan dari kakitangan, di mana mereka haruslah memberi ker jasama dengan permintaan Jawatankuasa.

Jawatankuasa ini akan mempunyai akses penuh dan tanpa batasan kepada sebarang maklumat berkaitan Kumpulan.

Jawatankuasa ini akan mempunyai saluran komunikasi dengan juruaudit dalaman serta juruaudit luaran dan dengan pengurusan kanan Kumpulan dan boleh mengadakan mesyuarat dengan juruaudit luaran sekiranya perlu.

Jawatankuasa ini akan mempunyai akses kepada sebarang sumber yang diperlukan untuk menjalankan tugasnya. Jawatankuasa ini boleh mendapatkan sebarang nasihat perundangan atau nasihat profesional lain yang dianggap perlu atas perbelanjaan Syarikat.

Sekiranya Jawatankuasa mendapati terdapat perkara yang dilaporkan oleh Jawatankuasa kepada Lembaga yang masih belum diselesaikan dengan memuaskan sehingga menyebabkan ia melanggar keperluan perundangan, Jawatankuasa harus melaporkan dengan segera perkara tersebut kepada pihak berkuasa yang berkaitan.

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e. Duties and Responsibilities In fulfilling its primary objectives, the Committee shall

undertake the following duties and responsibilities:

• Review with the external auditor, the audit scopeand plan, including any changes to the planned scope of the audit plan.

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

• Review the external and internal audit reports toensure that appropriate and prompt remedial action is taken by Management on major deficiencies in controls or procedures that are identified.

• Review the major audit f indings and theManagement’s response during the year with Management, external auditors and internal auditors, including the status of previous audit recommendations.

• Review the assistance given by the Group’semployees to the auditors, and any difficulties encountered in the course of the audit work, including any restrictions on the scope of activities or access to required information.

• Review the appointment and performance ofexternal auditors, the audit fees and any question of resignation or dismissal before making recommendations to the Board.

• Review the adequacy and integrity of internalcontro l system, inc lud ing corporate r isk management, management information system, and the internal auditors’ evaluation of the said systems.

• Direct and where appropriate monitor any specialprojects or investigation considered necessary, and review investigation report on any major defalcation, fraud and theft.

e. bidang Tugas dan Tanggungjawab Dalam memenuhi matlamat utamanya, Jawatankuasa

ini akan menjalankan tugas-tugas dan tanggungjawab berikut:

• Mengkaji dengan juruaudit luaran, skop danrancangan audit, termasuk sebarang perubahan kepada skop rancangan audit yang dirancang.

• Mengkaji kecukupan skop dan rancangan auditdalaman, fungsi-fungsi dan sumber-sumber audit dalaman dan memastikan ianya mempunyai kuasa yang sepatutnya bagi menjalankan tugas.

• Mengkaji laporan audit dalaman dan luaran bagimemastikan tindakan segera dan sepatutnya diambil oleh pihak Pengurusan bagi kekurangan utama pengawalan atau prosedur yang telah dikenal pasti.

• Mengkaji penemuanaudit utamadanmaklumbalaspihak Pengurusan sepanjang tahun dengan Pengurusan, juruaudit luaran dan juruaudit dalaman, termasuk status cadangan audit yang terdahulu.

• Mengkaji bantuan yang diberi oleh kakitangan

Kumpulan kepada juruaudit dan sebarang masalah yang dihadapi dalam menjalankan kerja audit, termasuk sebarang sekatan dalam skop aktiviti atau saluran kepada maklumat yang diperlukan.

• Mengkaji pelantikan dan prestasi juruaudit luaran,yuran audit dan sebarang persoalan perletakan jawatan atau pemecatan juruaudit luaran sebelum mengemukakan cadangan kepada Lembaga.

• Mengkaji kecukupandan ketelusan sistem kawalandalaman, termasuk pengurusan risiko korporat, sistem pengurusan maklumat dan penilaian juruaudit dalaman berkenaan sistem tersebut.

• Mengarahdansekiranyaperlu,memantausebarangprojek khas atau menyiasat dan mengkaji laporan siasatan berkaitan dengan penyalahgunaan, penipuan dan kecurian.

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• •

• Review the quarterly results and the year-endfinancial statements, prior to the approval by the Board focusing particularly on:– changes in or implementation of major

accounting policy;– significant or unusual events; and– compliance with accounting standards and

other legal requirements.

• Review annual budget and five years BusinessPlan.

• Reviewanyrelatedpartytransactionandconflictofinterest situation that may arise within the Company or the Group, including any transaction, procedure or course of conduct that raises questions on Management integrity.

• Verify the allocation of the ESOS as being incompliance with the criteria set by the ESOS Committee at the end of each financial year.

• Any other activities, as authorised by the Board.

mEETING

The Audit Committee convened seven (7) meetings during the financial year. The meetings were appropriately structured through the use of agenda, which was distributed to members with sufficient notification.

Name of Directors Attendance

YBhg Dato’ Haji Ab Halim bin Mohyiddin 7/7YBhg Dato’ Azlan bin Hashim 7/7Encik Mustaffa Kamil bin Ayub 1/1Tuan Haji Zain Azahari bin Zainal Abidin 6/6

The Executive Director of the Company and the General Manager of Management Audit Division were present by invitation at the meetings. Representatives of the external auditors also attended the meetings upon invitation.

• Menyemak keputusan suku tahunan dan penyatakewangan akhir tahun, sebelum kelulusan Lembaga dengan penumpuan kepada:– perubahan atau pelaksanaan perubahan polisi

perakaunan utama;– peristiwa penting atau luar biasa; dan– pematuhan terhadap piawaian perakaunan dan

undang-undang lain.

• Menyemak bajet tahunan dan Pelan Perniagaanuntuk lima tahun.

• Memeriksa sebarang urusniaga pihak berkaitandan situasi konflik kepentingan yang mungkin timbul dalam Syarikat atau Kumpulan, termasuk sebarang urusniaga, prosedur atau persoalan yang timbul berkenaan kewibawaan pihak Pengurusan.

• Memeriksa pembahagian “ESOS” agar mematuhikriteria yang ditetapkan oleh Jawatankuasa “ESOS” pada setiap penghujung tahun kewangan.

• Sebarang aktiviti lain yang diberi kuasa olehLembaga.

MESYUARAT

Sepanjang tahun kewangan, Jawatankuasa Audit telah mengadakan tujuh (7) mesyuarat. Mesyuarat telah dilaksanakan dengan sewajarnya melalui penggunaan agenda di mana ianya diedarkan kepada ahli-ahli dalam tempoh yang bersesuaian.

Nama Pengarah-pengarah Kehadiran

YBhg Dato’ Haji Ab Halim bin Mohyiddin 7/7YBhg Dato’ Azlan bin Hashim 7/7Encik Mustaffa Kamil bin Ayub 1/1Tuan Haji Zain Azahari bin Zainal Abidin 6/6

Pengarah Eksekutif Syarikat dan Pengurus Besar Jabatan Audit Pengurusan telah hadir dengan jemputan ke mesyuarat tersebut. Wakil juruaudit luaran juga telah hadir ke mesyuarat tersebut dengan jemputan.

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• •

RINgKASAN AKTIVITI

Aktiviti-aktiviti utama yang telah dijalankan oleh Jawatankuasa sepanjang tahun ini adalah seperti berikut:

• Mengkaji skop kerja juruaudit luaran dan rancanganaudit tahun 2009. Sebelum audit, wakil juruaudit luaran telah membentangkan rancangan dan strategi audit mereka.

• Mengkaji dengan juruaudit luaran, keputusan audit,laporan audit dan Memoranda Kawalan Dalaman, termasuk maklumbalas dari pihak Pengurusan.

• Mengadakanmesyuaratbersama juruaudit luaran tanpakehadiran pihak Pengurusan.

• Mempertimbangkan dan mencadangkan bayaran yuranaudit kepada juruaudit luaran untuk kelulusan Lembaga Pengarah.

• Mengkaji program dan rancangan Jabatan AuditPengurusan untuk tahun kewangan 2009.

• Mengkaji laporan Jabatan Audit Pengurusan, yangmenekankan isu-isu audit, cadangan dan maklumbalas pihak Pengurusan. Berbincang dengan pihak Pengurusan mengenai tindakan yang diambil untuk memperbaiki sistem kawalan dalaman berdasarkan peluang pembaikan yang dikenal pasti di dalam laporan audit dalaman.

• Mengkaji laporan tindakan susulan oleh juruauditdalaman mengenai status tindakan yang diambil oleh pihak Pengurusan berkenaan cadangan yang dicadangkan di dalam penemuan audit.

• Mengkaji kaedahpengkadaranaudit olehJabatanAuditPengurusan dalam penilaian dan pengkadaran peringkat-peringkat risiko dari pelbagai sudut yang diaudit dan memastikan keutamaan audit diberikan kepada bahagian yang mempunyai risiko tinggi dan kritikal.

• Menyemak penyata kewangan Syarikat yang diauditsebelum dibentangkan kepada Lembaga Pengarah untuk pertimbangan dan kelulusan. Kajian adalah untuk memastikan penyata kewangan yang diaudit dibuat berdasarkan peruntukan-peruntukan yang terdapat di dalam Akta Syarikat, 1965 dan piawaian perakaunan berkaitan yang diluluskan oleh Lembaga Piawaian Perakaunan Malaysia (“MASB”).

• Menyemak pematuhan Syarikat, khususnya, penyatakewangan suku tahunan dan akhir tahun agar mematuhi piawaian perakaunan “MASB” dan lain-lain keperluan undang-undang yang berkaitan.

sUmmARY OF ACTIVITIEs

The main activities undertaken by the Committee during the year were as follows:

• Reviewed the external auditors’ scope of work andaudit plans for the year 2009. Prior to the audit, representatives from the external auditors, presented their audit strategy and plan.

• Reviewed with the external auditors, the results of theaudit, the audit report and the Internal Control Memorandum, including Management’s response thereto.

• Meetingwith theexternalauditorswithout thepresenceof management.

• ConsideredandrecommendedtotheBoardforapprovalthe audit fees payable to the external auditors.

• ReviewedtheManagementAuditDivision’sprogrammesand plan for the financial year 2009 under review.

• Reviewed the Management Audit reports, whichhighlighted the audit issues, recommendations and Management response thereto. Discussed with Management, actions taken to improve the system of internal control based on improvement opportunities identified in the internal audit reports.

• Reviewed follow-up reports by the internal auditors onthe status of actions taken by the Management on recommendations suggested in the audit findings.

• Reviewed Management Audit Division’s audit ratingmethodology in assessing and rating the risk levels of the various auditable areas and ensured that the audit emphasis was given on high and critical risk areas.

• Reviewed the audited financial statements of theCompany prior to submission to the Board for their consideration and approval. The review was to ensure that the audited financial statements were drawn up in accordance with the provisions of the Companies Act 1965 and the applicable approved accounting standards approved by the Malaysian Accounting Standard Board (MASB).

• Reviewed the Company’s compliance, in particular, thequarterly and the year-end financial statements with MASB and other relevant legal and regulatory requirements.

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• Menyemak keputusan kewangan suku tahunan yangtidak diaudit sebelum dicadangkan kepada Lembaga Pengarah untuk kelulusan.

• Menyemak bajet tahunan dan Pelan Perniagaan untuklima tahun.

• Membuat semakan terhadap urusniaga antara pihakberkaitan yang dilaksanakan di dalam Syarikat atau Kumpulan dan memastikan ianya:

i) berdasarkan prinsip urusniaga tulus;ii) mengikut terma-terma komersial yang lazim;iii) terma-terma yang tidak lebih memihak kepada

pihak-pihak berkaitan daripada yang umumnya disediakan untuk awam;

iv) tidak menjejaskan kepentingan para pemegang saham minoriti; dan

v) demi kepentingan terbaik untuk Kumpulan.

• Memeriksa Pekeliling kepada para pemegang sahamberkaitan perolehan mandat para pemegang saham bagi urusniaga Pihak Berkaitan yang berulangan.

• Memeriksapembahagian“ESOS”agarmematuhikriteriayang ditetapkan oleh Jawatankuasa “ESOS” pada setiap penghujung tahun kewangan.

• Reviewedthequarterlyunauditedfinancialresultsbeforerecommending them for the Board’s approval.

• Reviewed annual budget and five years Business Plan.

• Reviewed the relatedparty transactionsentered intobythe Company or the Group to ensure that they are:i) at arm’s length;ii) on normal commercial terms;iii) on terms not more favourable to the related party

than those generally available to the public;iv) in its opinion, are not detrimental to the minority

shareholders; andv) in the best interest of the Group.

• Reviewed the circular to shareholders in relation to theprocurement of shareholders’ mandate for recurrent related party transactions.

• Verified the allocation of the ESOS as being incompliance with the criteria set by the ESOS Committee at the end of each financial year.

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INTERNAL AUDIT FUNCTION

The principal role of the internal audit function is to undertake an independent, regular and systematic review of the system of internal controls so as to provide reasonable assurance that such system continue to operate satisfactorily and effectively. It is the responsibility of the internal audit function to provide the Audit Committee with independent and objective reports on the state of internal controls of key operating companies within the Group and the extent of compliance of these companies with the Group’s policies and procedures as well as relevant statutory requirements.

To enhance the internal control function, the Company has engaged the services of a professional audit firm, Messrs. KPMG.

AUTHORIsATION FOR IssUANCE

This Report has been reviewed and approved for inclusion in this Annual Report by the Audit Committee.

YBhg Dato’ Haji Ab Halim bin mohyiddinChairman of Audit Committee

FUNgSI AUDIT DALAMAN

Peranan utama fungsi audit dalaman ialah untuk menjalankan tugas secara bebas, tetap dan sistematik supaya dapat memberi jaminan sewajarnya agar sistem kawalan dalaman terus beroperasi dengan berkesan dan memuaskan. Ia menjadi tanggungjawab fungsi audit dalaman untuk menyediakan kepada Jawatankuasa Audit laporan kawalan dalaman yang objektif dan bebas mengenai keadaan kawalan dalaman bagi syarikat operasi utama di dalam Kumpulan dan tahap pematuhan syarikat terhadap polisi dan prosedur Kumpulan yang sedia ada dan juga peraturan perundangan yang berkaitan.

Bagi mempertingkatkan fungsi audit dalaman, Syarikat telah menggunakan khidmat profesional firma audit, Tetuan KPMG.

PENgESAhAN UNTUK PENERbITAN

Laporan ini telah disemak dan diluluskan untuk dimasukkan ke dalam Laporan Tahunan oleh Jawatankuasa Audit.

Ybhg Dato’ haji Ab halim bin MohyiddinPengerusi Jawatankuasa Audit

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Enriching lives through servicesMemperkayakan hidup melalui perkhidmatan

Possessing and investing through divested interests in global standards of water treatment and facilities, KPS goes the distance to bring each customer higher quality and affordable water within their reach.

Pemilikan dan pelaburan melalui pelupusan kepentingan sedia ada di dalam industri rawatan dan kemudahan air berdasarkan piawaian global, KPS maju ke hadapan untuk memberikan air berkualiti dan mampu milik kepada pelanggan.

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Corporate Social Responsibilitytanggungjawab sosial korporat

asasubsidiaryofKumpulanDarulEhsanBerhad(KDEB),SelangorState’sleadingGovernment-linked Company (GlC), Kumpulan Perangsang Selangor Berhad(KPS), always believe in making Corporate Social Responsibility (CSR) a mainagenda in its business decisions, having an edge over the private sector as we are able to balance between corporate needs for profitability and social needs for community development.

KPS sebagai syarikat subsidiari Kumpulan Darul Ehsan Berhad (KDEB), yang juga adalah syarikat berkaitan Kerajaan Negeri Selangor sentiasa percaya bahawa amalan Tanggungjawab Sosial Korporat sebagai agenda utama seiring dengan keputusan-keputusan perniagaan berbanding di sektor swasta lain kerana ia berupaya mengimbangkan matlamat keuntungan korporat dan keperluan sosial untuk pembangunan komuniti.

Since 2008 until 2009, a whopping RM210.0 million has been spent for the first 20 cubic metres (20m3) of free water to consumers in Selangor, community development programmes including “Program Kerajaan Prihatin”, sports development sponsorships and other social contributions.

Sejak tahun 2008 hingga 2009, sebanyak RM210.0 juta telah dibelanjakan bagi pembayaran 20 meter padu pertama air percuma kepada pengguna di Selangor, program pembangunan komuniti termasuk Program Kerajaan Prihatin, penajaan pembangunan sukan dan lain-lain sumbangan sosial.

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>>

sTATIsTIC OF pAYmENT ON FREE WATER BY LOCATIONSTATISTIK PEMbAYARAN AIR PERCUMA MENgIKUT KAwASAN

LOCATION/LOKASI

2008 JUNE – DEC/JUN – DIS

(Rm)

2009 JAN – DEC/JAN – DIS

(Rm)TOTAL/JUMLAh

(Rm)

pERCENTAGE/PERATUSAN

%

Kuala Lumpur 3,839,570 6,991,342 10,830,912 5%

Gombak 8,009,825 15,244,321 23,254,146 12%

petaling Jaya 16,979,283 32,488,137 49,467,420 25%

Klang 15,251,313 29,020,041 44,271,354 22%

Hulu Langat 9,633,985 18,826,488 28,460,473 14%

Kuala Langat 3,160,932 6,139,557 9,300,489 5%

Hulu selangor 5,279,709 10,232,546 15,512,255 8%

Kuala selangor 2,514,591 4,811,416 7,326,007 4%

sabak Bernam 1,664,022 3,150,005 4,814,027 2%

sepang 2,341,502 4,564,488 6,905,990 3%

TOTAL/JUMLAh 68,674,732 131,468,341 200,143,073 100%

First 20 Cubic Metres (20m3) of Free Water Programme in Selangor

Since June 2008 until December 2009, KDEB Group paid the monthly cost rebate for the first 20m3 of free water of approximately RM11.0 mi l l ion, tota l ing RM200.143 mi l l ion for approximately 1.16 million individual meters of domestic consumers in Selangor. The purpose of this initiative is to reduce the financial burden of consumers in Selangor, in line with the proposed consolidation of the water industry on a hol ist ic manner in Selangor, Wi layah Persekutuan Kuala Lumpur and Putrajaya to be led by KDEB Group.

Program 20 Meter Padu (20m3) Pertama Air Percuma di Selangor

Sejak Jun 2008 sehingga Disember 2009, Kumpulan KDEB telah membayar rebat bulanan bagi 20m3 air percuma kira-kira RM11.0 juta sebulan, berjumlah RM200.143 juta bagi pihak seramai 1.16 juta pengguna domestik bermeter individu di Selangor. Inisiatif pemberian 20m3 air percuma adalah untuk mengurangkan beban kewangan pengguna-pengguna air di Selangor, di mana ia juga adalah sebahagian inisiatif di dalam cadangan penggabungan industri air secara bersepadu di Selangor, Wi layah Persekutuan Kuala Lumpur dan Putrajaya yang akan diterajui oleh Kumpulan KDEB.

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Penajaan Pembangunan Sukan di Selangor

Dalam tahun 2008 dan 2009, Kumpulan KDEB telah membelanjakan kira-kira RM5.3 juta bagi penajaan pembangunan sukan di Selangor. Fokus penajaan adalah sumbangan kepada pembangunan sukan di peringkat akar umbi, terutamanya persediaan Kontinjen Sukan Malaysia (SUKMA) Selangor, Kejohanan Golf Selangor Master dan Pasukan Bolasepak Selangor di dalam Liga Super Malaysia. Kumpulan KDEB berbangga kerana telah berjaya melaksanakan Tanggungjawab Sosial Korporat sebagai penaja utama Pasukan Bolasepak Selangor bagi musim liga bolasepak Malaysia pada tahun 2009. Kami percaya penajaan sebanyak RM4.106 juta kepada FAS ini telah banyak membantu pencapaian memberangsangkan Pasukan Bolasepak Selangor dengan menjuarai Piala Sumbangsih, Piala FA, Piala Liga Super serta memasuki separuh akhir Piala Malaysia pada tahun 2009. Tubuh badan yang sihat melahirkan masyarakat yang sihat dari segi fizikal dan mental. Bersukan adalah satu cara untuk mendapatkan tubuh badan yang sihat. Sukan membantu melahirkan masyarakat yang harmoni dan memberi keseimbangan di antara kerja harian dan aktiviti rekreasi.

Sports Development Sponsorship in Selangor

In 2008 and 2009, KDEB Group spent approximately RM5.3 million for sports development sponsorship in Selangor. The focus of sports sponsorship is contributing towards developing sporting talent at grassroots level, especially in the preparation of Sukan Malaysia (SUKMA) Selangor contingent, Selangor Golf Masters and Selangor Football Team in the Malaysian Super League. KDEB Group is proud to accomplish its Corporate Social Responsibility efforts by becoming the main sponsor for Selangor Football Team in the Malaysian football league season 2009. We believe our sponsorship of RM4.106 million to FAS has played a major role in helping the Selangor Football Team to become champions of the Charity Shield, FA Cup, Super League Cup as well as entering the semi-finals of the Malaysia Cup in 2009. A healthy body generates a healthy community physically and mentally. Being active in sports activities is one way to acquire this. Sports help to develop harmonious community and provide a balance between recreation and work.

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Program Kerajaan Prihatin

Program Kerajaan Prihatin adalah satu program bermatlamat membina rumah-rumah yang selesa bagi golongan miskin dan meningkatkan taraf hidup supaya mereka mendapat tempat di kalangan masyarakat. Pada tahun 2008 dan 2009, Kumpulan KDEB telah membelanjakan kira-kira RM0.54 juta bagi program ini dan pelaksanaannya telah memberikan manfaat kepada kira-kira 100 ahli keluarga.

Lain-lain Sumbangan Sosial

Golongan orang kurang berkemampuan sentiasa diberi perhatian terutamanya ketika meraikan musim perayaan secara bersama. Seramai tiga puluh lima (35) orang warga emas di bawah kendalian Jabatan Kebajikan Masyarakat, Sabak Bernam telah dijemput meraikan Hari Terbuka Aidilfitri Kumpulan KDEB 2009 di Quality Hotel Shah Alam. Mereka telah dihidangkan dengan sajian makanan tempatan dan menerima sumbangan duit raya serta hamper Hari Raya daripada Kumpulan KDEB.

“Program Kerajaan Prihatin”

“Program Kerajaan Prihatin” is a programme aimed at building decent homes for the hard core poor and improving their standard of living, giving them a sense of belonging to the community. In 2008 and 2009, KDEB Group spent approximately RM0.54 million for this programme and since its implementation, about 100 families have benefited from the programme.

Other Social Contributions

The less fortunate group of people are always remembered especially during festive seasons where the spirit of togetherness is shared. Thirty five (35) less fortunate old folks under the Social Welfare Department, from District of Sabak Bernam were invited to the KDEB Group “Hari Raya Aidilfitri” Open House 2009 at Quality Hotel Shah Alam. They were treated to a sumptuous array of Malaysian cuisines and each member received “duit raya” and a hamper as a “Hari Raya” gift from the KDEB Group.

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Program Kerajaan Prihatin– Sabak Bernam

Program Kerajaan Prihatin – Kuala Selangor

Before After

AfterBefore

Corporate Calendarkalendar korporat

JANUARY / JANUARi

FEBRUARY / FEBRUARi

FEBRUARY / FEBRUARiEducation Tour to ABASSLawatan Sambil Belajar ke ABASS

Konsortium ABASS Sdn Bhd entertained 17 students from the Business Management Faculty, Universiti Teknologi Mara and 20 students from the Ministry of Health Malaysia throughout the month of February and March 2009. The students were given a tour, security briefings and operations presentation of the Sungai Semenyih Water Treatment Plant. They also visited the main control room, operations lab and sedimentation tank area.

Konsortium ABASS telah menerima lawatan 17 orang pelajar daripada Fakulti Pengurusan Perniagaan, Universiti Teknologi Mara dan 20 orang pelajar daripada Kementerian Kesihatan Malaysia sepanjang bulan Februari hingga Mac 2009. Para pelajar telah dibawa melawat, diberi taklimat keselamatan dan pendedahan mengenai operasi Loji Rawatan Air Sungai Semenyih. Mereka juga dibawa melawat ke bilik kawalan utama, makmal operasi dan kawasan tangki enapan.

JANUARY / JANUARiBlood Donation DriveKempen Derma Darah

KPS along with Tengku Ampuan Rahimah Hospital, Klang organised a blood donation drive located at the Lobby, Plaza Perangsang on 29 January 2009. The campaign served as a back up for the soaring blood demand and to supplement the hospital’s declining blood bank. 43 units of pain from various types of blood groups managed to be collected.

KPS dengan kerjasama Hospital Tengku Ampuan Rahimah, Klang menganjurkan kempen derma darah bertempat di Lobi, Plaza Perangsang pada 29 Januari 2009. Kempen tersebut bertujuan untuk menampung permintaan darah yang tinggi di samping menambah bekalan tabung darah hospital yang semakin berkurangan. Sebanyak 43 unit pain darah telah berjaya dikumpul daripada pelbagai jenis kumpulan darah.

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APRiL / APRiL

MAY / MEi

Dato’ Haji Abd Karim Munisar on 23 April 2009 in a special ceremony held at Plaza Perangsang.

Pencapaian bermakna bagi Unit Pengurusan Bangunan pada tahun 2009 ialah kejayaan memperoleh pensijilan iSO 9001:2008 pada 1 April 2009. inisiatif pensijilan iSO ini telah dimulakan pada 3 Disember 2008. Sijil iSO tersebut telah disampaikan oleh Encik Ting Kai Sin, Ketua Juruaudit dan Tutor QMS/EMS dari NQA Certification Services (M) Sdn Bhd kepada YBhg Dato’ Haji Abd Karim Munisar pada 23 April 2009 di majlis khas yang diadakan di Plaza Perangsang.

MAY / MEiMother’s Day CelebrationSambutan Hari ibu

Quality Hotel Shah Alam celebrated Mother’s Day with a special Hi-Tea buffet on 10 May 2009 at Kayangan Ballroom. A host of activities were lined-up that includes lucky draw, games for mothers, games for adults and children and a cake cutting ceremony. Families savoured fantastic dishes from the extensive buffet spread comprising of international and local delicacies. The event was hosted by the hilarious Din Beramboi.

Quality Hotel Shah Alam menyambut Hari ibu dengan mengadakan jamuan “Hi-Tea” secara bufet pada 10 Mei 2009 bertempat di Kayangan Ballroom. Terdapat banyak aktiviti yang dijalankan antaranya adalah cabutan bertuah, pertandingan untuk ibu-ibu, pertandingan untuk orang dewasa dan kanak-kanak serta upacara memotong kek. Ahli keluarga yang hadir dapat menikmati sajian-sajian hebat daripada pilihan hidangan bufet antarabangsa dan juga masakan tempatan. Sambutan dimeriahkan lagi dengan lawak jenaka oleh pengacara Din Beramboi.

APRiL / APRiLSecretaries Week LuncheonJamuan Makan Tengahari Minggu Setiausaha

Quality Hotel City Centre organised a grand luncheon to celebrate Secretaries Week on 21 and 22 April 2009 featuring indonesia’s popular singer, Kris Dayanti and Malaysia’s number one singer; Dato’ Siti Nurhaliza. The luncheons were held at MATRADE Exhibition and Convention Centre (MECC). Dee from the popular TV show “Jangan Ketawa” hosted the event. The lucky draw winner took home a free return air ticket to Dubai sponsored by Emirates Airlines. Other sponsors include Jakel, innershine, Body Natur, Sachs, F&N and King Koil.

Quality Hotel City Centre telah mengadakan jamuan tengahari sempena Minggu Setiausaha pada 21 dan 22 April 2009 menampilkan penyanyi popular dari indonesia, Kris Dayanti dan penyanyi nombor satu Malaysia, Dato’ Siti Nurhaliza. Jamuan makan tengahari tersebut telah diadakan di Pusat Pameran dan Konvensyen MATRADE (“MECC”). Majlis dihoskan oleh Dee dari rancangan TV popular Jangan Ketawa. Pemenang hadiah cabutan bertuah berjaya membawa pulang tiket penerbangan pergi-balik ke Dubai tajaan Emirates Airlines. Penaja-penaja lain termasuk Jakel, innershine, Body Natur, Sachs, F&N dan King Koil.

ISO 9001:2008 Certification for Building Management UnitPensijilan iSO 9001:2008 bagi Unit Pengurusan Bangunan

A significant achievement by the Building Management Unit in 2009 is securing ISO 9001:2008 Certification on 1 April 2009. The iSO initiative was started on 3 December 2008. The certification was presented by Mr Ting Kai Sin, QMS/EMS/Lead Auditor and Tutor from NQA Certification Services (M) Sdn Bhd to YBhg

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JUNE / JUN

AUGUST / OGOS

JULY / JULAi

keselamatan dan kesihatan pekerjaan. Antara aktiviti-aktiviti yang dijalankan adalah pameran oleh institut Keselamatan dan Kesihatan Pekerjaan Negara (“NIOSH”), Jabatan Keselamatan dan Kesihatan Pekerjaan Selangor (JKKP), Pertubuhan Keselamatan Sosial (PERKESO), kuiz berkaitan Kesedaran Keselamatan dan Kesihatan Pekerjaan dan kempen derma darah.

AUGUST / OGOSBreaking of Fast with Orphans from Sungai Pinang, KlangMajlis Berbuka Puasa bersama Anak-anak Yatim dari Sungai Pinang, Klang

in conjunction with the holy month of Ramadhan, Quality Hotel City Centre, Quality Hotel Shah Alam, Brisdale Hotel and Perangsang Templer Golf Club organised a special breaking of fast ceremony with the less fortunate children from “Pertubuhan Kebajikan Anak-anak Yatim dan Miskin” Sungai Pinang, Klang. Approximately 56 children from the home were treated to a sumptuous array of traditional local cuisines. YBhg Dato’ Haji Abd Karim Munisar presented a mock cheque to the home and the children received “duit raya” and a souvenir each.

Sempena dengan bulan Ramadhan yang mulia, Quality Hotel Shah Alam, Quality Hotel City Centre, Brisdale Hotel dan Perangsang Templer Golf Club telah mengadakan Majlis Berbuka Puasa istimewa untuk kanak-kanak yang kurang bernasib baik dari Pertubuhan Kebajikan Anak-anak Yatim dan Miskin

JUNE / JUNAnnual General MeetingMesyuarat Agung Tahunan

On 18 June 2009, Kumpulan Perangsang Selangor Berhad held its Thirty Second (32) Annual General Meeting at Quality Hotel Shah Alam, in line with the standard procedure of public listed companies by Bursa Malaysia Securities Berhad.

Pada 18 Jun 2009, Kumpulan Perangsang Selangor Berhad telah mengadakan Mesyuarat Agung Tahunan ke Tiga Puluh Dua (32) di Quality Hotel Shah Alam selaras dengan ketetapan Bursa Malaysia Securities Berhad kepada syarikat tersenarai awam.

JULY / JULAiPlaza Perangsang Safety and Health ExhibitionPameran Keselamatan dan Kesihatan Pekerjaan Plaza Perangsang

KPS organised a Safety and Health Exhibition on 22 July 2009 at the Foyer, Plaza Perangsang. The objective of this inaugural exhibition is to enhance the awareness and knowledge of KPS staff and tenants on occupational safety and health. Among the activities are exhibitions by National institute of Occupational Safety and Health (NIOSH), “Jabatan Keselamatan dan Kesihatan Pekerjaan Selangor (JKKP)”, “Pertubuhan Keselamatan Sosial (PERKESO)”, quiz related to Occupational Safety and Health and blood donation campaign.

KPS telah menganjurkan Pameran Minggu Keselamatan dan Kesihatan Pekerjaan pada 22 Julai 2009 di Ruang Legar, Plaza Perangsang. Pameran yang julung-julung kali diadakan ini bertujuan untuk meningkatkan kesedaran dan pengetahuan kakitangan KPS dan para penyewa berkaitan

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AUGUST / OGOS

OCTOBER / OKTOBER

OCTOBER / OKTOBER“Hari Raya Aidilfitri” Open HouseRumah Terbuka Hari Raya Aidilfitri

The Group held its “Hari Raya Aidilfitri” Open House on 13 October 2009 at Quality Hotel Shah Alam. 35 less fortunate old folks from Sabak Bernam, Selangor were invited to the Open House. They were treated to a sumptuous array of Malaysian cuisines and each family received “duit raya” and a hamper as a “Hari Raya” gift from the Group.

Kumpulan telah mengadakan Rumah Terbuka Hari Raya Aidilfitri pada 13 Oktober 2009 di Quality Hotel Shah Alam. Seramai 35 warga emas miskin dari Sabak Bernam, Selangor telah dijemput ke majlis ini. Mereka telah dijamu dengan pelbagai pilihan masakan Malaysia dan setiap keluarga telah menerima duit raya dan hamper sebagai sumbangan Hari Raya dari Kumpulan.

Sungai Pinang, Klang. Lebih kurang 56 orang kanak-kanak dari rumah tersebut dihidangkan dengan pelbagai pilihan makanan tradisional tempatan. YBhg Dato’ Haji Abd Karim Munisar turut menyerahkan sekeping cek contoh kepada rumah kebajikan dan kanak-kanak menerima duit raya berserta cenderamata setiap seorang.

Ramadhan Bazaar Plaza Perangsang Bazar Ramadhan Plaza Perangsang

In conjuction with “Hari Raya Aidilfitri” celebration, KPS organised a Ramadhan Bazaar along Plaza Perangsang walkway from 20 August to 19 September 2009. The Ramadhan Bazaar is an alternative for the staffs, tenants and the local community to shop for festival goods at a reasonable price. Besides enhancing the building’s image, the bazaar promotes KPS’ presence within the local community and helps stimulate the socio-economy by providing business opportunities for the local SMEs and small traders.

Sempena menyambut Hari Raya Aidilfitri, KPS mengadakan jualan Bazar Ramadhan di sepanjang laluan pejalan kaki Plaza Perangsang pada 20 Ogos sehingga 19 September 2009. Bazar Ramadhan ini merupakan alternatif kepada kakitangan, penyewa dan komuniti setempat untuk mendapatkan barangan keperluan perayaan dengan harga yang berpatutan. Selain menaikkan imej bangunan, bazar ini juga meningkatkan kehadiran KPS di kalangan komuniti setempat dan menyediakan peluang perniagaan bagi menjana sosio-ekonomi para peniaga kecil dan sederhana.

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Year 2009 saw a significant progress in the Kumpulan Perangsang Selangor Berhad (KPS) Human Resource (HR) transformation process which commenced in year 2008.

The transformation process has successfully elevated Group HR Division’s role as a strategic businesspartner and paved the way for a more holistic and effective management of the HR functions.

Three (3) focus areas of Group HR Division for year 2009 are as follows:

Tahun 2009 menyaksikan kemajuan yang signifikan di dalam proses transformasi Sumber Manusia Kumpulan Perangsang Selangor Berhad (KPS) yang telah dimulakan pada tahun 2008.

Proses transformasi ini telah berjaya mengangkat peranan Bahagian Sumber Manusia Kumpulan sebagai rakan perniagaan strategik dan merintis laluan kepada pengurusan dan fungsi Sumber Manusia yang lebih efektif dan holistik.

Tiga (3) fokus utama Bahagian Sumber Manusia Kumpulan bagi tahun 2009 adalah seperti berikut:

Human Resource Reviewlaporan sumber manusia

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HUMAN RESOURCE TRANSFORMATIONTRANSFORMASI SUMBER MANUSIA

StrengtheningBusiness Process

Memperkasa Proses Perniagaan

NurturingOrganisational

High Performance CultureMenyemai Budaya

Organisasi BerprestasiTinggi

HR Re-BrandingPenjenamaan Semula

Sumber Manusia

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sTRENGTHENING BUsINEss pROCEss

Group HR Division views the need to strengthen the business process as an essential and integral part of the HR transformation process. A number of initiatives have been executed in 2009 to strengthen the HR business process. They are as follows:

HR Websitei. Realising the benefits of leveraging and optimising the

use of IT to strengthen the business processes, Group HR Division had developed the HR Website, an intranet portal providing online connectivity throughout the organisation. The HR Website acts as a central gateway for staff to gain access to the full spectrum of HR services and information, and HR sub-systems, whilst promoting knowledge sharing and exchange of ideas. Development of the website has been completed and is expected to be launched in April 2010.

ISO 9001:2008 Certificationii. A significant milestone in the Group HR Division

transformation process was our Building Management Unit securing ISO 9001:2008 Certif ication on 1 April 2009. The ISO initiative is aligned to Group HR Division objective to focus on continuous business process improvement and is a strategic move to enhance the quality and delivery of services to existing and prospective tenants at Bangunan Plaza Perangsang.

MEMPERKASA PROSES PERNIAgAAN

Bahagian Sumber Manusia Kumpulan berpandangan bahawa memperkasakan proses perniagaan adalah suatu keperluan yang amat penting di dalam transformasi Sumber Manusia. Beberapa inisiatif telah dilaksanakan pada tahun 2009 untuk memperkukuhkan proses perniagaan Sumber Manusia seperti berikut:

Laman Web Sumber Manusiai. Menyedari manfaat penggunaan IT yang mampu

mempengaruhi serta memperkasakan proses operasi perniagaan, Bahagian Sumber Manusia Kumpulan telah membangunkan laman web Sumber Manusia, sebuah portal intranet yang menyediakan perhubungan secara maya bagi keseluruhan organisasi. Laman web Sumber Manusia ini berperanan sebagai pintu masuk utama bagi kakitangan mendapatkan akses kepada keseluruhan perkhidmatan, maklumat dan sub-sistem Sumber Manusia dan dalam masa yang sama mempromosikan perkongsian dan pertukaran idea serta pengetahuan. Pembangunan laman web ini telah pun disiapkan dan bakal dilancarkan pada bulan April 2010.

Pensijilan ISO 9001:2008ii. Kejayaan signifikan di dalam proses transformasi

Bahagian Sumber Manusia Kumpulan adalah kejayaan Unit Pengurusan Bangunan mendapatkan pensijilan ISO 9001:2008 pada 1 April 2009. Inisiatif pensijilan ISO ini adalah selari dengan objektif Bahagian Sumber Manusia Kumpulan untuk memberikan fokus terhadap penambahbaikan proses perniagaan secara berterusan dan merupakan langkah strategik bagi memperbaiki kualiti dan penyampaian perkhidmatan kepada para penyewa berpotensi dan sedia ada di Bangunan Plaza Perangsang.

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thetransformationprocesshassuccessfullyelevatedgrouphrdivision’sroleasastrategicbusinesspartnerandpavedthewayforamoreholisticandeffectivemanagementofthehrfunctions.

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Automating Administrative Processesiii. Leveraging on IT at the workplace, Group HR Division

had developed a number of automated systems, namely ‘e-cuti’, ‘e-medical’ and ‘e-stationery’ to enhance the HR Division efficiency as well as improve the accuracy and integrity of information.

Training Policy and Guidelinesiv. In year 2009, Group HR Division had established a

new Group Training Policy and Guidelines as a reference tool to provide clear understanding for the staff on the training process and procedures. The revised guidelines are part of the Group initiatives to have effective management of training and development for staff. The Training Policy and Guidelines ensure all employees are given an equal opportunity to enhance their knowledge, skills and competencies and effectively supports future career transition and succession planning.

Replacement of Cooling Towerv. The three (3) nos. new Cooling Towers which were

replaced for Bangunan Plaza Perangsang in year 2009 is testimony of Group HR Division’s commitment to continuously improve the quality and delivery of services to its customers and the people we serve. It also reaffirms Group HR Division objective to provide a safe and conducive working environment for employees, whilst improving operational efficiency by capitalising on the latest technology.

HR RE-BRANDING

Various initiatives were implemented in year 2009 to help re-brand and elevate Group HR Division to a higher level:

Career Fairi. As a strategic move to promote KPS to the local

community and to attract new talent to join KPS, Group HR Division participated in two (2) career fairs organised by Universiti Teknologi MARA (UiTM) and Universiti Industri Selangor (UNISEL), respectively. The response was most encouraging and gave prospective graduates the opportunity to know more about KPS and register their future interest with KPS. This initiative will also serve as a medium to spot new talents from outside.

Pengautomasian Proses Pentadbiraniii. Menggalakkan penggunaan IT di tempat kerja,

Bahagian Sumber Manus ia Kumpulan te lah membangunkan beberapa sistem automasi seperti ‘e-cuti’, ‘e-medical’ dan ‘e-stationery’ bagi meningkatkan lagi efisiensi Sumber Manusia di samping memperbaiki ketepatan dan integriti maklumat.

Polisi dan Garis Panduan Latihaniv. Pada tahun 2009, Bahagian Sumber Manusia

Kumpulan telah mewujudkan Polisi dan Garis Panduan Latihan yang baru sebagai rujukan kepada kakitangan bagi mendapatkan pemahaman yang lebih jelas berhubung proses dan prosedur latihan. Garis Panduan yang telah diperkemaskan ini adalah sebahagian daripada inisiatif Kumpulan untuk mempromosikan pengurusan latihan dan program pembangunan kakitangan yang efektif. Polisi dan Garis Panduan Latihan ini juga memastikan semua kakitangan d i b e r i k a n p e l u a n g y a n g s a k s a m a u n t u k mempertingkatkan lagi pengetahuan, kemahiran dan kompetensi serta menyokong transisi kerjaya dan perancangan penggantian yang efektif.

Penggantian Menara Penyejukv. Penggantian tiga (3) unit menara penyejuk untuk

Bangunan Plaza Perangsang pada tahun 2009 merupakan testimoni kepada komitmen Bahagian Sumber Manusia Kumpulan untuk memperbaiki kualiti dan penyampaian perkhidmatan secara berterusan kepada pelanggan dan pihak yang terlibat. Langkah ini juga mengesahkan lagi objektif Bahagian Sumber Manusia Kumpulan untuk memberikan suasana kerja yang selamat dan kondusif kepada kakitangan serta dalam masa yang sama meningkatkan lagi efisiensi operasi dengan penggunaan teknologi terkini.

PENJENAMAAN SEMULA SUMbER MANUSIA

Pelbagai inisiatif telah dilaksanakan pada tahun 2009 bagi membantu menjenamakan semula serta mengangkat Bahagian Sumber Manusia Kumpulan ke tahap yang lebih tinggi.

i. Karnival Kerjaya Sebagai langkah strategik bagi mempromosikan KPS

kepada komuniti setempat dan menarik bakat baru bagi menyertai KPS, Bahagian Sumber Manusia Kumpulan telah menyertai dua (2) karnival kerjaya anjuran Universiti Teknologi MARA (UiTM) dan Universiti Industri Selangor (UNISEL). Sambutan yang diterima amat menggalakkan dan para graduan berpeluang untuk mengetahui lebih mendalam tentang KPS seterusnya mendaftar untuk dipertimbangkan bagi menyertai KPS sekiranya terdapat keperluan di masa hadapan. Inisiatif ini juga berperanan sebagai medium untuk mengenalpasti bakat baru dari luar.

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HR Talkii. This initiative was introduced in year 2009 to support

Group HR aspiration to develop a knowledge workforce. Six (6) HR Talks were conducted altogether, on various topics relating to safety & health, personal finance management and income tax computation.

Bazaar Ramadhaniii. The Bazaar Ramadhan was an inaugural event and

brought many positive benefits to staff, tenants and the local community. To name a few, the Bazaar had enhanced the image of Plaza Perangsang, created KPS’ presence in the local community and socio-economically provided business opportunities for the local SMEs and small traders.

“iv. Majlis Tazkirah” In line with the Company’s objective to instill positive

shared-values and moral ethics at the workplace, “Majlis Tazkirah” (an organised religious lectures) are held every Friday, conducted by guest speakers. The weekly forums are not only to enhance the staff Islamic knowledge but it is part of the organisation effort to strengthen the “Ukhuwah” (relationship) among the staff.

These programs are also an effective platform to develop future well rounded leaders of tomorrow who uphold high ethical standards and moral integrity.

Formation of HR Working Committeesv. A distinct feature of HR projects and initiatives for

2009 was the establishment of Working Committees at the Group level, comprising members from all subsidiaries. The total involvement of all companies was an important success factor in generating buy-in from all end users and also helped strengthen teamwork and esprit de corp between HR practitioners of KPS Group.

ii. “HR Talk” Inisiatif ini diperkenalkan pada tahun 2009 bagi

menyokong aspirasi Bahagian Sumber Manusia untuk m e m b a n g u n k a n g o l o n g a n p e k e r j a y a n g berpengetahuan. Enam (6) siri “HR Talk” telah diadakan merangkumi pelbagai topik seperti keselamatan dan kesihatan, pengurusan kewangan peribadi dan pengiraan cukai pendapatan.

iii. Bazar Ramadhan Bazar Ramadhan yang julung-julung kalinya diadakan

telah membawa banyak manfaat positif kepada kakitangan, penyewa dan komuniti setempat. Sekadar menyenaraikan beberapa manfaat yang diperolehi, bazar ini telah menaikkan imej Plaza Perangsang, mewar-warkan kehadiran KPS kepada komuniti setempat dan menyediakan peluang perniagaan bagi menjana sosio ekonomi para peniaga kecil dan sederhana.

iv. Majlis Tazkirah Selaras dengan objektif Syarikat untuk menyuburkan

etika moral dan nilai-nilai positif di tempat kerja, Majlis Tazkirah yang disampaikan oleh penceramah jemputan telah diadakan setiap hari Jumaat. Forum mingguan ini bukan sahaja menambahkan lagi pengetahuan agama malah merupakan usaha organisasi untuk memperkukuhkan ukhwah di kalangan kakitangan.

Program ini juga merupakan platform yang efektif bagi melahirkan pemimpin masa hadapan yang serba boleh dan berpegang kepada nilai moral, etika serta integriti yang tinggi.

v. Pembentukan Jawatankuasa Kerja Sumber Manusia Kelainan di dalam pelaksanaan projek dan inisiatif

Sumber Manusia pada tahun 2009 ialah penubuhan Jawatankuasa Kerja di peringkat Kumpulan yang turut melibatkan wakil dari setiap anak Syarikat. Penglibatan semua anak Syarikat merupakan faktor kejayaan yang penting bagi membina keyakinan para kakitangan dan seterusnya memperkasakan lagi semangat kerjasama di antara pengamal Sumber Manusia Kumpulan KPS.

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NURTURING ORGANIsATIONAL HIGH pERFORmANCE CULTURE

One of the integral components of the Group HR Division Strategy 2009 is the new Performance Management System (PMS) which introduces new performance metrics and a new Competency Model.

The key features of the new PMS are a clear linkage between individual and corporate goals. A more rigorous approach was also introduced for individual target setting where five (5) levels of target ratings have to be defined for each Key Performance Indicator (KPI).

Besides looking at achieving business results, the demonstration of the Group’s Competencies is also critical. These competencies reflect the capacity to act as a leader or valued behaviours as defined in the Competency Model.

In order to ensure consistency and ease of implementation of the new PMS, a PMS User Guide had been introduced. It helps to explain the mechanism and concepts of the new PMS.

Commencing year 2010 all subsidiaries companies will adopt a standard pms, use standard Performance Appraisal Forms and abide by a common Assessment/Rating System.

Group HR Division will remain committed in its endeavours to continuously improve the PMS, a key lever to driving high performance and delivering results through people.

KELAB sUKAN DAN REKREAsI pERANGsANG sELANGOR (“KELAB”)

Kelab Sukan dan Rekreasi Perangsang Selangor (“Kelab”) is an important platform for staff to maintain a healthy lifestyle and social balance. A number of activities were organised during the year, the highlight being the Family Day at Bayview Beach Resort, Penang attended by Executive Chairman, Management, staff and their families.

Other activities organised by “Kelab” were an expedition to National Park at Kuala Tahan, Pahang, fishing, snorkeling and scuba trip at Pulau Pemanggil, Johor. The “Kelab” also hosted inter departmental games as such as dart, carom, futsal, ping pong and badminton and friendly matches in football and badminton.

MENYEMAI bUDAYA ORgANISASI bERPRESTASI TINggI

Salah satu daripada komponen penting di dalam strategi Bahagian Sumber Manusia Kumpulan pada tahun 2009 ialah Sistem Pengurusan Prestasi yang memperkenalkan matrik prestasi dan model kompetensi baru.

Ciri utama Sistem Pengurusan Prestasi baru adalah perhubungan yang lebih jelas di antara objektif individu dan korporat. Pendekatan yang lebih teliti turut diperkenalkan kepada perancangan sasaran individu di mana lima (5) kadar sasaran telah diperincikan di dalam setiap Indikator Prestasi Utama (“KPI”).

Selain melihat kepada kejayaan mencapai sasaran perniagaan, pengenalan kompetensi Kumpulan juga merupakan sesuatu yang kritikal. Kompetensi ini mencerminkan kapasiti, peranan dan tingkah laku sebagai seorang ketua seperti yang diperincikan di dalam model kompetensi.

Bagi memastikan konsistensi serta kelicinan pelaksanaan Sistem Pengurusan Prestasi yang baru ini, satu panduan pengguna telah diperkenalkan. Ia membantu menerangkan mekanisme dan konsep Sistem Pengurusan Prestasi yang baru.

Berkuatkuasa pada tahun 2010, semua anak-anak Syarikat akan menggunapakai Sistem Pengurusan Prestasi dan borang penilaian prestasi yang seragam berpandukan kepada sistem penilaian yang baru.

Bahagian Sumber Manusia Kumpulan akan kekal komited di dalam setiap tindakannya bagi memperbaiki Sistem Pengurusan Prestasi secara berterusan yang merupakan faktor utama bagi memacu budaya kerja berprestasi tinggi menerusi pencapaian setiap kakitangan.

KELAb SUKAN DAN REKREASI PERANgSANg SELANgOR (KELAb)

Kelab Sukan dan Rekreasi Perangsang Selangor (Kelab) merupakan platform penting untuk kakitangan mengekalkan gaya hidup sihat dan keseimbangan sosial. Beberapa aktiviti telah dianjurkan sepanjang tahun dan kemuncaknya adalah penganjuran Hari Keluarga di Bayview Beach Resort, Pulau Pinang yang dihadiri oleh Pengerusi Eksekutif, Pengurusan, Kakitangan serta ahli keluarga mereka.

Antara aktiviti yang dianjurkan oleh Kelab ialah ekspedisi ke Taman Negara di Kuala Tahan, Pahang, memancing, “snorkeling” dan skuba di Pulau Pemanggil, Johor. Kelab juga turut menganjurkan pertandingan sukan dalaman seperti “dart”, karom, futsal, ping pong dan badminton serta perlawanan persahabatan bagi sukan bola sepak dan badminton.

7979

FINANCIALSTATEMENTS

81 Directors’ Report

86 Statement By Directors

86 Statutory Declaration

87 Independent Auditor’s Report

89 Income Statements

90 Balance Sheets

92 Consolidated Statement Of Changes In Equity

93 Company Statement Of Changes In Equity

94 Cash Flow Statements

97 Notes To The Financial Statements

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DIRECTORS’ REPORT

The directors hereby present their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 December 2009.

PRInCIPal aCTIvITIES

The principal activities of the Company are investment holding, contracting in the works related to infrastructure and utilities and provision of management services. The principal activities of the subsidiaries are described in Note 18 to the financial statements.

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

RESulTS

GroupRM’000

CompanyRM’000

Profit/(loss) for the year 127,955 (139,277)

Attributable to:Equity holders of the Company 72,224 (139,277)Minority interests 55,731 –

127,955 (139,277)

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

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature other than the effects arising from:

(a) the effects of prior year adjustment on the under accrual of state lease rental expense which has resulted in a reduction in the Group’s profit for the year by RM3,568,000 as disclosed in Note 53 to the financial statements;

(b) the impairment of investment in a subsidiary which has resulted in a reduction in the Company’s profit for the year by RM142,700,000 as disclosed in Note 7 to the financial statements; and

(c) the bad debts recovered arising from debt assignment and recognition of specific grant from ultimate holding corporation which has resulted in an increase in the Group’s profit for the year by RM115,101,407 as disclosed in Note 5 and Note 50(b) to the financial statements respectively.

DIRECTORS’ REPORT

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DIRECTORS’ REPORT

DIvIDEnDS

The amount of dividends paid by the Company since 31 December 2008 were as follows:

RM’000

In respect of the financial year ended 31 December 2008 as reported in the directors’ report of that year:

Final dividend of 4 sen less 25% taxation per ordinary share, on 475,823,760 ordinary shares, declared on 18 June 2009 and paid on 14 August 2009 14,275

At the forthcoming Annual General Meeting, a final dividend in respect of the financial year ended 31 December 2009, of 4 sen less 25% taxation, will be proposed for shareholders’ approval and be paid on 17 August 2010 to the shareholders registered on the Company’s Register of Members at the close of business on 30 July 2010. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2010.

DIRECTORS

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

YBhg Dato’ Hj. Abd. Karim bin Munisar, DSSA, SSA, KMN, ASAYBhg Dato’ Hj. Azlan bin Hashim, DSSA, DSNSYBhg Dato’ Hj. Ab. Halim bin Mohyiddin, DPMSWong Yien Kim, SIS, PPTMustaffa Kamil bin Ayub (appointed on 1 November 2009)Tuan Haji Zain Azahari bin Zainal Abidin (resigned on 25 November 2009)

DIRECTORS’ bEnEfITS

Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate, other than those arising from the share options granted under the Kumpulan Perangsang Selangor Berhad’s Employee Share Option Scheme (“KPS ESOS”) and Kumpulan Hartanah Selangor Berhad’s Employee Share Option Scheme (“KHSB ESOS”).

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full–time employee of the Company as shown in Note 9 to the financial statements) by reason of a contract made by the Company or a related corporation with any director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

82

DIRECTORS’ InTEREST

According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year in shares and options over ordinary shares in the Company and its related corporations during the financial year were as follows:

number of Ordinary Shares of RM1 Each 1.1.2009 acquired Sold 31.12.2009

The CompanyYBhg Dato’ Hj. Abd. Karim bin Munisar 1,000,000 – – 1,000,000YBhg Dato’ Hj. Ab. Halim bin Mohyiddin 339,999 – – 339,999YBhg Dato’ Hj. Azlan bin Hashim 370,000 – – 370,000

Subsidiary –Kumpulan Hartanah Selangor berhad

YBhg Dato’ Hj. Ab. Halim bin Mohyiddin 99 – – 99

number Of Options Over Ordinary Shares of RM1 Each 1.1.2009 Granted Exercised/

Terminated31.12.2009

The Company

YBhg Dato’ Hj. Abd. Karim bin Munisar 3,250,000 – – 3,250,000YBhg Dato’ Hj. Azlan bin Hashim 300,000 – – 300,000YBhg Dato’ Hj. Ab. Halim bin Mohyiddin 250,000 – – 250,000Wong Yien Kim 1,000,000 – – 1,000,000

Subsidiary –Kumpulan Hartanah Selangor berhad

YBhg Dato’ Hj. Abd. Karim bin Munisar 4,500,000 – – 4,500,000

Mustaffa Kamil bin Ayub had no interest in shares and options over ordinary shares in the Company or its related corporations during the financial year.

ISSuE Of SHaRES

During the financial year, the Company increased its issued and paid–up ordinary share capital from RM475,663,760 to RM475,823,760 by way of the issuance of 160,000 ordinary shares of RM1 each for cash pursuant to the KPS ESOS at a weighted average exercise price of RM1.62 per ordinary shares.

The new ordinary share issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company.

83

EMPlOyEE SHaRE OPTIOnS SCHEME

The Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”) is governed by the amended by–laws approved by the shareholders at an Extraordinary General Meeting held on 15 June 2004. The KPS ESOS was implemented on 30 July 2003 and is to be in force for a period of 5 years, subject however, to an extension at the discretion of the option committee for a period up to 5 years commencing from the date of expiration of the original 5 year period. Subsequently, on 16 July 2008, the Option Committee has approved the extension of KPS ESOS Scheme tenure for another 3 years commencing from 29 July 2008 until 29 July 2011.

The salient features and other terms of the KPS ESOS are disclosed in Note 35(b) to the financial statements.

Details of options granted to directors are disclosed in the section on Directors’ interest in this report.

OTHER STaTuTORy InfORMaTIOn

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

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

(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.

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

(i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; and

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

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading.

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

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

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

DIRECTORS’ REPORT

84

OTHER STaTuTORy InfORMaTIOn (COnT’D.)

(f) In the opinion of the directors:

(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due; and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Company for the financial year in which this report is made.

SIGnIfICanT EvEnTS

The significant events are disclosed in Note 50 to the financial statement.

SubSEquEnT EvEnT

The subsequent event is disclosed in Note 51 to the financial statement.

auDITORS

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

Signed on behalf of the Board in accordance with a resolution of the directors dated 29 April 2010.

DaTO’ HJ abD. KaRIM bIn MunISaR WOnG yIEn KIM

85

STATEMENT by DIRECTORSPursuant to Section 169(15) of the Companies Act, 1965

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

We, Dato Hj Abd. Karim bin Munisar and Wong Yien Kim, being two of the directors of Kumpulan Perangsang Selangor Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 89 to 190 are drawn up in accordance with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2009 and of the results and the cash flows of the Group and of the Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 29 April 2010.

DaTO’ HJ abD. KaRIM bIn MunISaR WOnG yIEn KIM

I, Wong Yien Kim, being the director primarily responsible for the financial management of Kumpulan Perangsang Selangor Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 89 to 190 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed Wong Yien Kimat Shah Alam in Selangor Darul Ehsanon 29 April 2010 WOnG yIEn KIM

Before me,

86

INDEPENDENT AuDITORS’ REPORT to the members of Kumpulan Perangsang Selangor Berhad

REPORT On THE fInanCIal STaTEMEnTS

We have audited the financial statements of Kumpulan Perangsang Selangor Berhad, which comprise the balance sheets as at 31 December 2009 of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 89 to 190.

Directors’ responsibility for the financial statements

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

Auditors’ responsibility

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

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

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

Opinion

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards in Malaysia and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2009 and of their financial performance and cash flows of the Group and of the Company for the year then ended.

REPORT On OTHER lEGal anD REGulaTORy REquIREMEnTS

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

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

87

INDEPENDENT AuDITORS’ REPORTto the members of Kumpulan Perangsang Selangor Berhad (cont’d.) (Incorporated in Malaysia)

REPORT On OTHER lEGal anD REGulaTORy REquIREMEnTS (COnT’D.)

(b) We have considered the financial statements and the auditors’ reports of all subsidiaries of which we have not acted as auditors, which are indicated in Note 18 to the financial statements, being financial statements that have been included in the consolidated financial statements.

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

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

OTHER MaTTERS

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

Ernst & Young Nik Rahmat Kamarulzaman bin Nik Ab. RahmanAF: 0039 No. 1759/02/12(J)Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia29 April 2010

88

INCOME STATEMENTSfor the year ended 31 December 2009

Group Company

note 2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Revenue 3 345,069 305,827 31,981 47,878 Cost of sales 4 (178,379) (151,822) – –

Gross profit 166,690 154,005 31,981 47,878 Other income 5 193,372 105,376 1,120 9,360 Administrative expenses (69,806) (74,292) (21,949) (19,833)Selling and marketing expenses (1,403) (1,081) – – Other expenses (134,343) (138,703) (143,599) (49,445)

Operating profit/(loss) 154,510 45,305 (132,447) (12,040)Finance costs 6 (99,314) (106,277) (6,067) (1,283)Share of profit of associates 61,614 56,279 – – Share of profit of a joint venture – 546 – –

Profit/(loss) before tax and zakat 7 116,810 (4,147) (138,514) (13,323)Income tax and zakat 10 11,145 (10,297) (763) (12,436)

Profit/(loss) for the year 127,955 (14,444) (139,277) (25,759)

Attributable to:Equity holders of the Company 72,224 (171) (139,277) (25,759)Minority interests 55,731 (14,273) – –

127,955 (14,444) (139,277) (25,759)

Earnings/(loss) per share attributable to equity holders of the Company (sen) Basic 11(a) 15.2 (0.04) Diluted 11(b) 15.1 (0.04)

Dividend per share (sen) 12 3.00 2.96 3.00 2.96

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

89

bALANCE SHEETSas at 31 December 2009

Group Company

note 2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

aSSETS

non–current assetsProperty, plant and equipment 13 177,817 184,310 3,639 4,743 Concession assets 14 86,648 97,691 – – Prepaid land lease payments 15 52,523 52,829 13,960 13,723 Land held for property development 16(a) 255,508 298,942 – – Investment properties 17 7,396 7,604 61,040 62,775 Investments in subsidiaries 18 – – 424,844 566,428 Investments in associates 19 448,285 434,446 174,244 163,269 Other investments 20 269,406 269,680 267,731 267,731 Concession rights 21 346,459 356,578 – – Goodwill on consolidation 22 127,300 133,636 – – Long term receivables 23 27,872 34,097 – –

1,799,214 1,869,813 945,458 1,078,669

Current assets Inventories 24 76,517 61,041 – – Property development costs 16(b) 512,185 458,707 – – Trade receivables 26 436,732 438,054 412 296 Other receivables 27 14,775 43,090 4,124 6,787 Amount due from ultimate holding corporation 28(a) 115,101 – – – Amount due from immediate holding company 28(b) 179,415 193,167 87,470 96,909 Amount due from subsidiaries 28(c) – – 64,047 62,235 Amount due from related companies 28(d) 1 4 – – Amount due from associates 28(e) 240 240 239 239 Tax recoverable 13,812 3,834 1,633 – Cash and bank balances 29 139,771 116,617 19 144

1,488,549 1,314,754 157,944 166,610

TOTal aSSETS 3,287,763 3,184,567 1,103,402 1,245,279

90

Group Company

note 2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

EquITy anD lIabIlITIES

Equity attributable to equity holders of the Company

Share capital 43 475,824 475,664 475,824 475,664 Share premium 44 34,228 34,129 34,228 34,129 Other reserves 45 168,123 166,333 10,160 8,370 Retained earnings 46 291,629 233,680 320,454 474,006

Shareholders’ equity 969,804 909,806 840,666 992,169 Minority interests 185,874 134,932 – –

Total Equity 1,155,678 1,044,738 840,666 992,169

non–current liabilitiesBorrowings 30 1,100,408 1,156,248 30,168 80,297 Long term payables 34 26,245 36,547 – – Retirement benefit obligations 35(a) – – – – Accrued lease rental 36 24,905 20,148 – – Deferred membership income 37 2,129 3,910 – – Deferred tax 38 143,308 149,611 – –

1,296,995 1,366,464 30,168 80,297

Current liabilitiesTrade payables 39 500,835 422,140 3,169 5,316 Other payables 40 83,049 93,929 1,961 2,264 Amount due to immediate holding company 41(a) 6,040 520 4,854 – Amount due to subsidiaries 41(b) – – 139,618 117,334 Amount due to related companies 41(c) 147 147 44 44 Amount due to an associate 41(d) 1,495 1,276 – – Provision 42 13,476 13,526 – – Borrowings 30 207,943 221,874 82,922 43,730 Tax payable 22,105 19,953 – 4,125

835,090 773,365 232,568 172,813

Total liabilities 2,132,085 2,139,829 262,736 253,110

TOTal EquITy anD lIabIlITIES 3,287,763 3,184,567 1,103,402 1,245,279

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

91

CONSOLIDATED STATEMENT OF CHANGES IN EQuITyfor the year ended 31 December 2009

attribute to Equity Holders of the Company

non–Distributable Distributable

Group

ShareCapitalRM’000

(note 43)

SharePremium

RM’000(note 44)

CapitalReserveRM’000

(note 45)

RevaluationReserveRM’000

(note 45)

GeneralReserveRM’000

(note 45)

Share Option

ReserveRM’000

(note 45)

RetainedEarningsRM’000

(note 46)

TotalRM’000

MinorityInterestRM’000

TotalEquity

RM’000

at 1 January 2008 470,812 31,054 30,243 127,367 8,000 1,310 250,347 919,133 153,031 1,072,164 Prior year adjustment

(Note 53) – – – – – – (2,422) (2,422) (1,982) (4,404)

at 1 January 2008 (restated)

470,812 31,054 30,243 127,367 8,000 1,310 247,925 916,711 151,049 1,067,760

Issue of ordinary shares pursuant to exercise of KPS ESOS

4,852 1,939 – – – – – 6,791 – 6,791

Share options granted under KPS ESOS

– – – – – 196 – 196 – 196

Share options granted under KHSB ESOS

– – – – – 353 – 353 272 625

Share options exercised under KPS ESOS

– 1,136 – – – (1,136) – – – –

Dividends of subsidiaries – – – – – – – – (2,116) (2,116)Loss for the year – – – – – – (171) (171) (14,273) (14,444)

475,664 34,129 30,243 127,367 8,000 723 247,754 923,880 134,932 1,058,812 Dividends (Note 12) – – – – – – (14,074) (14,074) – (14,074)

at 31 December 2008 475,664 34,129 30,243 127,367 8,000 723 233,680 909,806 134,932 1,044,738

at 1 January 2009 475,664 34,129 30,243 127,367 8,000 723 237,982 914,108 138,453 1,052,561 Prior year adjustment

(Note 53) – – – – – – (4,302) (4,302) (3,521) (7,823)

at 1 January 2009 (restated)

475,664 34,129 30,243 127,367 8,000 723 233,680 909,806 134,932 1,044,738

Issue of ordinary shares pursuant to exercise of KPS ESOS

160 99 – – – – – 259 – 259

Share options granted under KPS ESOS

– – – – – 1,790 – 1,790 – 1,790

Disposal of interest in a subsidiary

– – – – – – – – 200 200

Dividends of subsidiaries – – – – – – – – (4,989) (4,989)Profit for the year – – – – – – 72,224 72,224 55,731 127,955

475,824 34,228 30,243 127,367 8,000 2,513 305,904 984,079 185,874 1,169,953 Dividends (Note 12) – – – – – – (14,275) (14,275) – (14,275)

at 31 December 2009 475,824 34,228 30,243 127,367 8,000 2,513 291,629 969,804 185,874 1,155,678

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

92

COMPANy STATEMENT OF CHANGES IN EQuITyfor the year ended 31 December 2009

non–Distributable Distributable

ShareCapitalRM’000

(note 43)

SharePremium

RM’000(note 44)

GeneralReserveRM’000

(note 45)

ShareOptionsReserveRM’000

(note 45)

RetainedEarningsRM’000

(note 46)

TotalEquity

RM’000

at 1 January 2008 470,812 31,054 8,000 1,310 513,839 1,025,015

Issue of ordinary shares pursuant to exercise of KPS ESOS 4,852 1,939 – – – 6,791 Share options granted under KPS ESOS – Recognised in income statement

– – – 196 – 196

Share options exercised under KPS ESOS

– 1,136 – (1,136) – –

Loss for the year – – – – (25,759) (25,759)

475,664 34,129 8,000 370 488,080 1,006,243 Dividends (Note 12) – – – – (14,074) (14,074)

at 31 December 2008 475,664 34,129 8,000 370 474,006 992,169

at 1 January 2009 475,664 34,129 8,000 370 474,006 992,169

Issue of ordinary shares pursuant to exercise of KPS ESOS 160 99 – – – 259 Share options granted under KPS ESOS – Recognised in income statement

– – – 674 – 674

– Included in investment in subsidiary

– – – 1,116 – 1,116

Loss for the year – – – – (139,277) (139,277)

475,824 34,228 8,000 2,160 334,729 854,941

Dividends (Note 12) – – – – (14,275) (14,275)

at 31 December 2009 475,824 34,228 8,000 2,160 320,454 840,666

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

93

CASH FLOw STATEMENTSfor the year ended 31 December 2009

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Cash flows from operating activities

Profit/(loss) before tax and zakat 116,810 (4,147) (138,514) (13,323)Adjustments for: Interest expense 99,314 106,277 6,067 1,283 Interest income (26,597) (29,555) (160) (828) Property, plant and equipment: – depreciation 11,607 12,029 996 1,109 – written off 439 18 427 – Bad debts written off 84 – – – Write back of provision for doubtful debts (1,620) (3,688) – – Write–down of inventories 9,415 82 – – Provision for doubtful debts 57,968 65,883 – 47 Amortisation of deferred membership income (1,781) (2,649) – – Impairment of: – land held for property development 23,239 – – – – property development costs – 27,736 – – – investment in a subsidiary – – 142,700 43,700 – other investments – 78 – – – investment properties – 59 – – – goodwill on consolidation 6,336 – – – Dividend income from: – a subsidiary – – (20,000) (31,815) – associates – – (4,238) (8,537) – other investments (50) (1) – (1) Amortisation of concession rights 10,119 10,130 – – Amortisation of prepaid land lease payments 743 737 186 181 Discount received from creditors (234) – – – Accrued lease rental payable to State Government 7,757 7,559 – –

94

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Cash flows from operating activities (cont'd.)

Depreciation of investment properties 208 284 2,830 2,756 Net loss/(gain) on disposal of: – property, plant and equipment 89 (511) (11) (144) – other investments 46 – (14) – Concession assets: – amortisation 14,339 13,441 – – – transfer to income statement 4,430 7,747 – – Penalty on taxation – 2,224 – 2,221 Reversal of provision no longer required (2,014) (5,055) (148) – Provision for retirement benefit obligations – 75 – 75 Share options granted under KPS and KHSB ESOS 1,790 821 674 196 Share of profit of associates (61,614) (56,279) – – Share of profit of a joint venture – (546) – –

Operating profit/(loss) before working capital changes 270,823 152,749 (9,205) (3,080) Increase in inventories (24,491) (612) – – Increase in property development costs (33,283) (23,132) – – (Increase)/decrease in receivables (20,570) (28,859) 2,547 (69,519) Increase/(decrease) in payables 51,983 35,727 (2,303) (3,597) Net movement in intercompany balances (95,539) (113,760) 34,483 51,780

Cash generated from/(used in) operations 148,923 22,113 25,522 (24,416)Zakat paid (430) (3,835) – (2,322)Real property gain tax paid – (425) – – (Tax paid, net of refunds received)/ tax refunds received, net of tax paid (2,544) 4,502 (5,551) (1,565)Retirement benefits paid – (575) – (575)Liquidated damages paid (50) (1,329) – –

Net cash generated from/(used in) operating activities 145,899 20,451 19,971 (28,878)

95

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Cash flows from investing activitiesNet dividends received from: – subsidiary – – 20,000 31,343 – associates 58,782 120,318 3,269 6,318 – other investments 50 1 – 1Interest received 26,529 29,555 160 828 Purchase of: – property, plant and equipment (5,900) (6,014) (325) (754) – concession assets (8,155) (11,562) – – – prepaid land lease payments (437) (63) (423) – – investment properties – – (1,095) – – other investments – (257,092) – (257,092)Proceeds from disposal of: – property, plant and equipment 329 1,256 17 146 – other investments 228 – 14 – Additional investment in associates (11,007) (225) (10,975) (225)Income received from joint ventures – 3,133 – 5,422

Net cash generated from/(used in) investing activities 60,419 (120,693) 10,642 (214,013)

Cash flows from financing activitiesInterest paid (78,878) (86,416) (5,786) (1,263)Dividend paid (14,275) (14,074) (14,275) (14,074)Drawdown of borrowings 15,000 110,000 15,000 110,000 Advances to a subsidiary – – – (29,000)Repayment of borrowings (95,458) (109,767) (30,000) – Repayment of hire purchase (770) (775) (122) (132)Issuance of ordinary shares 259 6,791 259 6,791 Placement of fixed deposits (1,667) (2,119) – –

Net cash (used in)/generated from financing activities (175,789) (96,360) (34,924) 72,322

net increase/(decrease) in cash and cash equivalents 30,529 (196,602) (4,311) (170,569)Cash and cash equivalents at beginning of year 44,748 241,350 (13,464) 157,105

Cash and cash equivalents at end of year (note 29) 75,277 44,748 (17,775) (13,464)

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

CASH FLOw STATEMENTSfor the year ended 31 December 2009 (cont’d.)

96

1. CORPORaTE InfORMaTIOn

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office of the Company is located at 16th Floor, Plaza Perangsang, Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan.

The immediate holding company of the Company is Kumpulan Darul Ehsan Berhad (“KDEB”), a company incorporated in Malaysia, and the ultimate holding corporation is Menteri Besar Selangor (Pemerbadanan), a corporate body formed under Enactment No.3 of the Menteri Besar Selangor (Incorporation), Enactment 1994.

The principal activities of the Company are investment holding, contracting in the works related to infrastructure and utilities and provision of management services. The principal activities of the subsidiaries are described in Note 18. There have been no significant changes in the nature of the principal activities during the financial year.

Related companies refer to companies within the KDEB group.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 29 April 2010.

2. SIGnIfICanT aCCOunTInG POlICIES

2.1 basis of preparation

The financial statements comply with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia.

The financial statements of the Group and of the Company have also been prepared on a historical cost basis.

The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated.

2.2 Summary of significant accounting policies

(a) Subsidiaries and basis of consolidation

(i) Subsidiaries

Subsidiaries are entities over which the Group has the ability to control the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has such power over another entity.

In the Company’s separate financial statements, investments in subsidiaries are stated at cost less impairment losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in profit or loss.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009

97

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.2 Summary of significant accounting policies (cont’d.)

(a) Subsidiaries and basis of consolidation (cont’d.)

(ii) basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the balance sheet date. The financial statements of the subsidiaries are prepared for the same reporting date as the Company.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. In preparing the consolidated financial statements, intragroup balances, transactions and unrealised gains or losses are eliminated in full. Uniform accounting policies are adopted in the consolidated financial statements for like transactions and events in similar circumstances.

Acquisitions of subsidiaries are accounted for using the purchase method. The purchase method of accounting involves allocating the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities assumed at the date of acquisition. The cost of an acquisition is measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity instruments issued, plus any costs directly attributable to the acquisition.

Any excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities represents goodwill. Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition is recognised immediately in profit or loss.

Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. It is measured at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities at the acquisition date and the minorities’ share of changes in the subsidiaries’ equity since then.

(b) associates

Associates are entities in which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not in control or joint control over those policies.

Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting. Under the equity method, the investment in associate is carried in the consolidated balance sheet at cost adjusted for post–acquisition changes in the Group’s share of net assets of the associate. The Group’s share of the net profit or loss of the associate is recognised in the consolidated profit or loss. Where there has been a change recognised directly in the equity of the associate, the Group recognises its share of such changes.

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2.2 Summary of significant accounting policies (cont’d.)

(b) associates (cont’d.)

In applying the equity method, unrealised gains and losses on transactions between the Group and the associate are eliminated to the extent of the Group’s interest in the associate. After application of the equity method, the Group determines whether it is necessary to recognise any additional impairment loss with respect to the Group’s net investment in the associate. The associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence over the associate.

Goodwill relating to an associate is included in the carrying amount of the investment and is not amortised. Any excess of the Group’s share of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities over the cost of the investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the Group’s share of the associate’s profit or loss in the period in which the investment is acquired.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any long–term interests that, in substance, form part of the Group’s net investment in the associates, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The most recent available audited financial statements and/or management financial statements of the associates are used by the Group in applying the equity method. Where the dates of the audited financial statements used are not coterminous with those of the Group, the share of results is arrived at from the last audited financial statements available and management financial statements to the end of the accounting period. Uniform accounting polices are adopted for like transactions and events in similar circumstances.

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

On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is included in profit or loss.

(c) Joint venture

The Group has an interest in a joint venture. Investments in joint venture is accounted for in the consolidated financial statements using the equity method of accounting as described in Note 2.2(b). The joint venture was dissolved during the year.

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2.2 Summary of significant accounting policies (cont’d.)

(d) Intangible assets

(i) Goodwill

Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

(ii) Concession rights

Concession rights acquired separately are measured on initial recognition at cost. The cost of concession rights acquired in a business combination is their fair values as at the date of acquisition. Following initial recognition, concession rights are carried at cost less any accumulated amortisation and any accumulated impairment losses. Concession rights with a finite useful life are amortised on the unit of production method over the estimated economic useful lives and assessed for impairment whenever there is an indication that the concession rights may be impaired. The amortisation period and the amortisation method for concession rights with a finite useful life are reviewed at least at each balance sheet date.

(e) Property, plant and equipment and depreciation

All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less accumulated depreciation and any accumulated impairment losses.

Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation of other property, plant and equipment is provided for on a straight line basis to write off the cost of each asset to its residual value over the estimated useful life, at the following annual rates:

Buildings and clubhouse 2% – 10% Motor vehicles 20% Office and hotel furniture, fittings and equipment 10% – 50% Computer and office equipment 10% – 33.33% Office renovation 10%

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

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2.2 Summary of significant accounting policies (cont’d.)

(e) Property, plant and equipment and depreciation (cont’d.)

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

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any and the net carrying amount is recognised in profit or loss and the unutilised portion of the revaluation surplus on that item is taken directly to retained earnings.

(f) Concession assets

Concession assets relate to expenditure for installation works and assets replacement works incurred in connection with the concession.

(i) Measurement basis

Concession assets are initially recorded at cost. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial year in which they are incurred.

Subsequent to recognition, concession assets are stated at cost less accumulated amortisation and accumulated impairment loss.

All item of concession asset is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any, and the net carrying amount is recognised in profit or loss.

(ii) amortisation

Capital work-in-progress is not amortised. Amortisation is calculated to write off the cost of other concession assets on the straight line basis to their residual values over their expected useful lives at the following annual rates:

Assets replacement works 10% Installation works 5% – 10%

Capital work-in-progress will be amortised when the assets are ready for their intended use.

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2.2 Summary of significant accounting policies (cont’d.)

(f) Concession assets (cont’d.)

(ii) amortisation (cont’d.)

The residual values, useful lives and amortisation method are reviewed at each financial year end to ensure that the amount, method and period of amortisation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodies in the items of concession assets.

(g) Investment properties

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Such properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at its costs less accumulated depreciation and impairment losses, consistent with the accounting policy of property, plant and equipment as described in Note 2.2 (e).

Depreciation of investment properties is provided for on straight line basis to write off the cost of each asset to its residual value over the estimated useful lives, at the annual rate between 2% to 6.67% per annum for buildings.

A property interest under an operating lease is classified and accounted for as an investment property on a property–by–property basis when the Group holds it to earn rentals or for capital appreciation or both. Any such property interest under an operating lease classified as an investment property is carried at cost.

Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in profit or loss in the year in which they arise.

(h) land held for property development and property development costs

(i) land held for property development

Land held for property development consists of land where no development activities have been carried out or where development activities are not expected to be completed within the normal operating cycle. Such land is classified within non–current assets and is stated at cost less any accumulated impairment losses.

Land held for property development is reclassified as property development costs at the point when development activities have commenced and where it can be demonstrated that the development activities can be completed within the normal operating cycle.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

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2.2 Summary of significant accounting policies (cont’d.)

(h) land held for property development and property development costs (cont’d.)

(ii) Property development costs

Property development costs comprise all costs that are directly attributable to development activities or that can be allocated on a reasonable basis to such activities.

When the financial outcome of a development activity can be reliably estimated, property development revenue and expenses are recognised in the income statement by using the stage of completion method. The stage of completion is determined by the proportion that property development costs incurred for work performed to date bear to the estimated total property development costs or surveys of work performed.

Where the financial outcome of a development activity cannot be reliably estimated, property development revenue is recognised only to the extent of property development costs incurred that is probable will be recoverable, and property development costs on properties sold are recognised as an expense in the period in which they are incurred.

Any expected loss on a development project, including costs to be incurred over the defects liability period, is recognised as an expense immediately.

Property development costs not recognised as an expense are recognised as an asset, which is measured at the lower of cost and net realisable value.

The excess of revenue recognised in the income statement over billings to purchasers is classified as accrued billings within trade receivables and the excess of billings to purchasers over revenue recognised in the income statement is classified as progress billings within trade payables.

(i) Construction contracts

Where the outcome of a construction contract can be reliably estimated, contract revenue and contract costs are recognised as revenue and expenses respectively by using the stage of completion method. The stage of completion is measured by reference to the proportion of contract costs incurred for work performed to date to the estimated total contract costs.

Where the outcome of a construction contract cannot be reliably estimated, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

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

When the total of costs incurred on construction contracts plus, recognised profits (less recognised losses), exceeds progress billings, the balance is classified as amount due from customers on contracts. When progress billings exceed costs incurred plus recognised profits (less recognised losses), the balance is classified as amount due to customers on contracts.

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2.2 Summary of significant accounting policies (cont’d.)

(j) Impairment of non–financial assets

The carrying amounts of assets, other than investment property, construction contract assets, property development costs, inventories and deferred tax assets, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated to determine the amount of impairment loss.

For goodwill, intangible assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date or more frequently when indicators of impairment are identified.

For the purpose of impairment testing of these assets, recoverable amount is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. If this is the case, recoverable amount is determined for the cash–generating unit (CGU) to which the asset belongs to. Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s CGUs, or groups of CGUs, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units.

An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre–tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the carrying amount of the other assets in the unit or groups of units on a pro–rata basis.

An impairment loss is recognised in profit or loss in the period in which it arises, unless the asset is carried at a revalued amount, in which case the impairment loss is accounted for as a revaluation decrease to the extent that the impairment loss does not exceed the amount held in the asset revaluation reserve for the same asset.

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.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

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2.2 Summary of significant accounting policies (cont’d.)

(k) Inventories

Inventories are stated at lower of cost and net realisable value.

The cost of unsold completed properties is determined using the first in, first out method and comprises cost associated with the acquisition of land, direct costs and appropriate proportions of common costs.

Cost of inventories for food, beverages and trading goods are determined on a weighted average basis and comprises costs of purchase.

Cost of inventories for spare parts and consumables are determined using the first–in first–out basis and represents the landed costs of goods purchased.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(l) financial instruments

Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instrument.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

(i) Cash and cash equivalents

For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and at bank and deposits with licensed financial institutions which have an insignificant risk of changes in value, net of outstanding bank overdrafts.

(ii) Other non–current investments

Non–current investments other than investments in subsidiaries, associates and investment properties are stated at cost less impairment losses. On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in profit or loss.

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2.2 Summary of significant accounting policies (cont’d.)

(l) financial instruments (cont’d.)

(iii) Marketable securities

Marketable securities are carried at the lower of cost and market value, determined on an individual basis. Cost is determined on the weighted average basis while market value is determined based on quoted market values. Increases or decreases in the carrying amount of marketable securities are recognised in profit and loss. On disposal of marketable securities, the difference between net disposal proceeds and the carrying amount is recognised in profit or loss.

(iv) Receivables

Receivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate is made for doubtful debt based on a review of all outstanding amounts as at the balance sheet date.

(v) Payables

Payables are stated at fair value of the consideration to be paid in the future for goods and services received.

(vi) Interest bearing loans and borrowings

All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

(vii) Equity instruments

Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared.

The transaction costs of an equity transaction are accounted for as a deduction from equity, net of tax. Equity transaction costs comprise only those incremental external costs directly attributable to the equity transaction which would otherwise have been avoided.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

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2.2 Summary of significant accounting policies (cont’d.)

(m) leases

(i) Classification

A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards incidental to ownership. Leases of land and buildings are classified as operating or finance leases in the same way as leases of other assets and the land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease classification. All leases that do not transfer substantially all the risks and rewards are classified as operating leases, with the following exceptions:

– Property held under operating leases that would otherwise meet the definition of an investment property is classified as an investment property on a property–by–property basis and, if classified as investment property, is accounted for as if held under a finance lease (Note 2.2(g)); and

– Land held for own use under an operating lease, the fair value of which cannot be measured separately from the fair value of a building situated thereon at the inception of the lease, is accounted for as being held under a finance lease, unless the building is also clearly held under an operating lease.

(ii) finance leases – the Group as lessee

Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fair values and the present value of the minimum lease payments at the inception of the leases, less accumulated depreciation and impairment losses. The corresponding liability is included in the balance sheet as borrowings. In calculating the present value of the minimum lease payments, the discount factor used is the interest rate implicit in the lease, when it is practicable to determine; otherwise, the Company’s incremental borrowing rate is used. Any initial direct costs are also added to the carrying amount of such assets.

Lease payments are apportioned between the finance costs and the reduction of the outstanding liability. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are recognised in the profit or loss over the term of the relevant lease so as to produce a constant periodic rate of charge on the remaining balance of the obligations for each accounting period.

The depreciation policy for leased assets is in accordance with that for depreciable property, plant and equipment as described in Note 2.2(e).

(iii) Operating lease

Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevant lease. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term using the sales of treated water method. The rental expense has been recognised over the concession period using the sales of treated water method as follows:

Cumulative actual sales of water(Cumulative actual sales of water + projected sales of water)

X Total rental expense

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2.2 Summary of significant accounting policies (cont’d.)

(m) leases (cont’d.)

(iii) Operating lease (cont’d.)

The rationale for using the sales of water method is in line with the pattern in which the State land rental is charged to the income statement.

In case of a lease of land and buildings, the minimum lease payments or the up–front payments made are allocated, whenever necessary, between the land and buildings element in proportion to the relative fair values for leasehold interests in the land element and buildings element of the lease at the inception of the lease. The up–front payment represents prepaid land lease payments and are amortised on a straight line basis over the lease term.

(n) borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

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

(o) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date.

Deferred tax is provided for, using the liability method. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary difference arises from goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognised as income or an expense and included in the profit or loss for the period, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also recognised directly in equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or the amount of any excess of the acquirer’s interest is the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the cost of the combination.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

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2.2 Summary of significant accounting policies (cont’d.)

(p) Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, provisions are discounted using a current pre–tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as finance cost.

(q) Employee benefits

(i) Short term benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.

(ii) Defined contribution plans

Defined contribution plans are post–employment benefit plans under which the Group pays fixed contributions into separate entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. Such contributions are recognised as an expense in the profit or loss as incurred. As required by law, companies in Malaysia make such contributions to the Employees Provident Fund (“EPF”).

(iii) Defined benefit plan

The Company operates a funded, defined benefit retirement scheme, the “Kumpulan Perangsang Selangor Berhad Retirement Scheme” (“the Scheme”), which is an approved defined benefits scheme under Section 150 of the Income Tax Act, 1967 for its eligible employees. The Company’s obligation under the Scheme, calculated using the Projected Unit Credit Method, is determined based on actuarial computations by independent actuaries, through which the amount of benefit that employees have earned in return for their service in the current and prior years is estimated. That benefit is discounted in order to determine its present value.

Actuarial gains and losses are recognised as income or expense over the expected average remaining working lives of the participating employees when the cumulative unrecognised actuarial gains or losses for the Scheme exceed 10% of the higher of the present value of the defined benefit obligation and the fair value of plan assets. Past service costs are recognised immediately to the extent that the benefits are already vested, and otherwise are amortised on a straight line basis over the average period until the amended benefits become vested.

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2.2 Summary of significant accounting policies (cont’d.)

(q) Employee benefits (cont’d.)

(iii) Defined benefit plan (cont’d.)

The amount recognised in the balance sheet represents the present value of the defined benefit obligations adjusted for unrecognised actuarial gains and losses and unrecognised past service costs, and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the net total of any unrecognised actuarial losses and past service costs, and the present value of any economic benefits in the form of refunds or reductions in future contributions to the plan.

During the previous financial year, the Company has replaced its defined benefit plan for eligible employees with a four percent (4%) increase in its EPF contribution to all eligible employees with effect from 1 January 2008.

(iv) Share–based compensation

The Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”) and the Kumpulan Hartanah Selangor Berhad’s Employee Share Options Scheme (“KHSB ESOS”), equity-settled, share-based compensation plans, allows the Group’s employees to acquire ordinary shares of the Company and its subsidiary. The total fair value of share options granted to employees is recognised as an employee cost with a corresponding increase in the share option reserve within equity over the vesting period and taking into account the probability that the options will vest. The fair value of share options is measured at grant date, taking into account, if any, the market vesting conditions upon which the options were granted but excluding the impact of any non–market vesting conditions. Non–market vesting conditions are included in the assumptions about the number of options that are expected to become exercisable on vesting date.

(v) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits as a liability and an expense when it is demonstrably committed to either terminate the employment of current employees according to a detailed plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. In the case of an offer made to encourage voluntary redundancy, the measurement of termination benefits is based on the number of employees expected to accept the offer. Benefits falling due more than twelve months after balance sheet date are discounted to present value.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

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2.2 Summary of significant accounting policies (cont’d.)

(r) foreign currencies

In preparing the financial statements of the individual entities, transactions in currencies other than the Group’s functional currency are recorded in the functional currencies using the exchange rates prevailing at the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. Non–monetary items that are measured in terms of historical cost in a foreign currency are not translated.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are included in profit and loss for the period.

(s) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

(i) Sale of properties

Revenue from sale of properties is accounted for by the stage of completion method as described in Note 2.2(h)(ii) and is recognised net of discount.

(ii) Construction contracts

Revenue from construction contracts is accounted for by the stage of completion method as described in Note 2.2(i).

(iii) licence and membership fees

A fixed quantum of the golfing license fees and the non-golfing membership fees which approximates 11% of the total fees is recognised as initial annual fee in the year the membership is accepted. The balance is recognised on a fixed annualised amount on a straight-line basis over the term of 15 years.

(iv) Sale of goods

Revenue is recognised net of sales taxes and upon transfer of significant risks and rewards of ownership to the buyer. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.

(v) Revenue from hotel operations, golf club and recreational facilities

Revenue from rental of hotel rooms, sale of food and beverage, sports and recreation and other related income is recognised on an accrual basis.

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(s) Revenue recognition (cont’d.)

(vi) Interest income

Interest income is recognised on an accrual basis.

(vii) Dividend income

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

(viii) Management fees

Management fees are recognised when services are rendered.

(ix) Rental income

Rental income from investment property is recognised on a straight line basis over the term of lease. The aggregate cost of incentives provided to lessee is recognised as a reduction of rental income over the lease term on a straight line basis.

(x) Sale of treated water

Sale of treated water represents invoiced value of bulk quantity of water supplied to the Syarikat Bekalan Air Selangor Sdn. Bhd. (‘’SYABAS”).

(xi) Imputed interest income

Imputed interest income is accrued on a time proportion basis taking into consideration the outstanding receivables and the effective applicable interest rate. The amount is derived from the difference of the present value of future revenue and the total revenue recognised over the concession period.

(t) fixed Rate Serial bonds (“fRSb”)

The FRSB are bonds issued at a discount to its nominal value of RM738 million. The FRSB are issued in series of up to 15 years from the date of issue.

FRSB are initially recognised at cost, being the fair value of the consideration received. After initial recognition, the FRSB is subsequently measured at amortised cost using the effective interest method.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

112

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.2 Summary of significant accounting policies (cont’d.)

(u) bai’ bithaman ajil Islamic Debts Securities (“baIDS”)

The BaIDS are bonds issued in accordance with the Islamic financing concept of Bai’ Bithaman Ajil. In accordance with such concept, the Group sold certain assets to primary subscriber (a financial institution), and repurchased them back at the same price together with an agreed profit margin. The payment of the purchase price is deferred in accordance with the maturities of the BaIDS, whilst the profit element is paid half yearly.

BaIDS are initially recognised at cost, being the fair value of the consideration received. After initial recognition, the profit element attributable to the BaIDS for assets in operation in each period is recognised as an expense at a constant rate to the maturity of each series respectively.

2.3 Changes in accounting policies and effects arising from adoption of the new fRSs, revised fRSs, amendments to fRSs and IC Interpretations

At the date of authorisation of these financial statements, the following new FRSs, revised FRSs, Amendments to FRSs and Issue Committee Interpretations (“IC Interpretations”) were issued but not yet effective and have not been applied by the Group and by the Company which are:

fRSs, Revised fRSs, amendments to fRSs and IC Interpretations

Effective for financial periods beginning on or after 1 July 2009:

FRS 8 Operating Segments

Effective for financial periods beginning on or after 1 January 2010:

FRS 4 Insurance Contracts FRS 7 Financial Instruments: Disclosures FRS 101 Presentation of Financial Statements (revised) FRS 123 Borrowing Costs FRS 139 Financial Instruments: Recognition and Measurement Amendments to FRS 1 First–time Adoption of Financial Reporting Standards and FRS 127:

Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate

Amendments to FRS 2 Share–based Payment: Vesting Conditions and Cancellations Amendments to FRS 132 Financial Instruments: Presentation Amendments to FRS 139 Financial Instruments: Recognition and Measurement, FRS 7: Financial

Instruments: Disclosure and IC Interpretation 9; Reassessment of Embedded Derivatives

Amendments to FRSs Improvement to FRSs (2009) IC Interpretation 9 Reassessment of Embedded Derivatives IC Interpretation 10 Interim Financial Reporting and Impairment

113

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.3 Changes in accounting policies and effects arising from adoption of the new fRSs, revised fRSs, amendments to fRSs and IC Interpretations (cont’d.)

fRSs, Revised fRSs, amendments to fRSs and IC Interpretations (cont’d.)

Effective for financial periods beginning on or after 1 January 2010:

IC Interpretation 11 FRS 2 - Group and Treasury Share Transactions IC Interpretation 13 Customer Loyalty ProgrammesIC Interpretation 14 FRS 119 - The Limit on a Defined Benefit Asset, Minimum Funding

Requirements and their Interaction TR i - 3 Presentation of Financial Statement of Islamic Financial Institutions

Effective for financial periods beginning on or after 1 July 2010:

FRS 1 First–time Adoption of Financial Reporting Standards FRS 3 Business Combinations (revised) FRS 127 Consolidated and Separate Financial Statements (amended) IC Interpretation 12 Service Concession Arrangements IC Interpretation 15 Agreements for the Construction of Real Estate IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation IC Interpretation 17 Distributions of Non-cash Assets to Owners Amendments to FRS 2 Share-based Payment Amendments to FRS 5 Non–current Assets Held for Sale and Discontinued Operations Amendments to FRS 138 Intangible Assets Amendments to IC Interpretation 9 Reassessment of Embedded Derivatives

The Group and the Company plan to adopt the above pronouncements when they became effective in the respective financial period. Unless otherwise described below, these pronouncements are expected to have no significant impact to the financial statements of the Group and the Company upon their initial application.

fRS 3: business Combinations (revised) and fRS 127: Consolidated and Separate financial Statements (amended)

FRS 3 (revised) introduces a number of changes to the accounting for business combinations occuring on or after 1 July 2010. These include changes that affect the valuation of non-controlling interest, the accounting for transaction costs, the initial recognition and subsequent measurement of a contingent consideration and business combinations achieved in stages. These changes will impact the amount of goodwill recognised, the reported results in the period that an acquisition occurs and future reported results.

FRS 127 (amended) requires that a change in the ownership interest of a subsidiary (withount loss of control) is accounted for as a transaction with owners in their capacity as owners and to be recorded in equity. Therefore, such transaction will no longer give rise to goodwill, nor will it give rise to a gain or loss. Furthermore, the amended Standard changes the accounting for losses incurred by the subsidiary as well as loss of control of a subsidiary.

The changes by FRS 3 (revised) and FRS 127 (amended) will be applied prospectively and only affect future acquisition or loss of control of subsidiaries and transactions with non–controlling interests.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

114

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.3 Changes in accounting policies and effects arising from adoption of the new fRSs, revised fRSs, amendments to fRSs and IC Interpretations (cont’d.)

fRSs, Revised fRSs, amendments to fRSs and IC Interpretations (cont’d.)

fRS 8: Operating Segments

FRS 8 replaces FRS 1142004: Segment Reporting and requires a ‘management approach’, under which segment information is presented on a similar basis to that used for internal reporting purposes. As a result, the Group’s external segmental reporting will be based on the internal reporting to the “chief operating decision maker”, who makes decisions on the allocation of resources and assesses the performance of the reportable segments. As this is a disclosure standard, there will be no impact on the financial position or results of the Group.

fRS 101: Presentation of financial Statements (revised)

The revised FRS 101 separates owner and non-owner changes in equity. Therefore, the consolidated statement of changes in equity will now include only details of transactions with owners. All non-owner changes in equity are presented as a single line labelled as total comprehensive income. The Standard also introduces the statement of comprehensive income: presenting all items of income and expense recognised in the income statement, together with all other items of recognised income and expense, either in one single statement, or in two linked statements. The Group is currently evaluating the format to adopt. In addition, a statement of financial position is required at the beginning of the earliest comparative period following a change in accounting policy, the correction of an error or the reclassification of items in the financial statements. This revised FRS does not have any impact on the financial position and results of the Group and the Company.

fRS 123: borrowing Costs (revised)

The Group’s current accounting policy is consistent with the provision of FRS 123 Borrowing Costs (revised).

fRS 139: financial Instruments: Recognition and Measurement, fRS 7: financial Instruments: Disclosures and amendments to fRS 139: financial Instruments: Recognition and Measurement, fRS 7: financial Instruments: Disclosures

The new Standard on FRS 139: Financial Instruments: Recognition and Measurement establishes principles for recognising and measuring financial assets, financial liabilities and some contracts to buy and sell non–financial items. Requirements for presenting information about financial instruments are in FRS 132: Financial Instruments: Presentation and the requiremetns for disclosing information about financial instruments are in FRS 7: Financial Instruments: Disclosures.

FRS 7: Financial Instruments: Disclosures is a new Standard that requires new disclosures in relation to financial instruments. The Standard is considered to result in increased disclosures, both quantitative and qualitative of the Group’s and Company’s exposure to risks, enhanced disclosure regarding components of the the Group’s and Company’s financial position and performance, and possible changes to the way of presenting certain items in the financial statements.

115

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.3 Changes in accounting policies and effects arising from adoption of the new fRSs, revised fRSs, amendments to fRSs and IC Interpretations (cont’d.)

fRSs, Revised fRSs, amendments to fRSs and IC Interpretations (cont’d.)

fRS 139: financial Instruments: Recognition and Measurement, fRS 7: financial Instruments: Disclosures and amendments to fRS 139: financial Instruments: Recognition and Measurement, fRS 7: financial Instruments: Disclosures (cont’d.)

In accordance with the respective transitional provisions, the Group and the Company are exempted from disclosing the possible impact to the financial statements upon the initial application.

amendments to fRSs ‘Improvements to fRSs (2009)’

FRS 140 Investment Property: Property under construction or development for future use as an investment property is classified as investment property. Where the fair value model is applied, such property is measured at fair value. If fair value cannot be realiably determined, the investment under construction will be measured at cost until such time as fair value can be determined or construction is complete. The Group has previously accounted for such assets using the cost model. The amendment also includes changes in terminology in the Standard to be consistent with FRS 108. The change will be applied prospectively.

IC Interpretation 12: Service Concession arrangements

This IC applies to service concession operators and explains how to account for the obligations undertaken and rights received in service concession arrangements. The transitional provision exempts the disclosure of the possible impact to the financial statements upon the initial application of the IC.

IC Interpretation 15: agreements for the Construction of Real Estate

In applying IFRIC 15, the Group is required to recognise the revenue from property development activities on a completion basis. The impact of IFRIC 15 cannot be reasonably estimated, due to the uncertainties surrounding the expectation of future sales and fluctuation of development costs.

2.5 Significant accounting estimates and judgements

Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements. They affect the application of the Group’s accounting policies, reported amounts of assets, liabilities, income and expenses and disclosures made. They are assessed on an on-going basis and are based on historical experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

116

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.5 Significant accounting estimates and judgements (cont’d.)

(a) Key sources of estimation uncertainty (cont’d.)

(i) Impairment of goodwill

The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value–in–use of the cash–generating units (“CGU”) to which goodwill is allocated. Estimating value–in–use amount requires management to make an estimate of the expected future cash flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amounts of goodwill as at 31 December 2009 were RM127,300,000 (2008: RM133,636,000). Further details are disclosed in Note 22.

(ii) Depreciation of property, plant and equipment

The cost of property, plant and equipment except for freehold land are depreciated on a straight line basis over the assets’ useful lives up to its residual value. Management reviews the residual values, useful lives and depreciation method at the end of each financial year end and ensures consistency with previous estimates and patterns of consumptions of the economic benefits that embodies the items in these assets. Changes in useful lives and residual values of these assets may result in revision of future depreciation charges.

(iii) amortisation of intangible assets

The cost of concession rights is amortised based on the revenue over the concession period. The projected treated water revenue used for the purpose of the amortisation calculation is based on the bulk supply rate as set out in the concession agreement multiplied by the average water production.

Changes in the expected level of water production or any revision in the concession period could impact future amortisation charges. Any difference in the projected total treated water revenue from the management’s estimates would result in approximately a similar variance in profit before tax for the year.

(iv) assessment of provision for doubtful receivables

The Group makes provision for doubtful receivables based on an assessment of the recoverability of trade and other receivables. Provision are applied to trade and other receivables where events or changes in circumstances indicate that the balances may not be collectible. The identification of doubtful receivables requires use of judgement and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful receivables expenses in the period in which such estimate has been changed. As at 31 December 2009, provision for doubtful receivables for long term receivables, trade and other receivables have been disclosed in Note 23, Note 26 and Note 27 respectively.

117

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.5 Significant accounting estimates and judgements (cont’d.)

(a) Key sources of estimation uncertainty (cont’d.)

(v) Share–based payments to employees

The share options schemes allow the Group’s employees to acquire shares of the Company and its subsidiary. The cost of providing share-based payments to employees is charged to the income statement over the vesting period of the related share options with the corresponding entry to share option reserve. The cost is based on the fair value of the options and the number of options expected to vest. The fair value of each option is determined using the Binomial option pricing model.

(vi) Income tax and deferred tax assets

Judgement is involved in determining the provision for income taxes. There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group and the Company recognise liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

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

The details of income taxes and deferred tax for the Group and the Company are disclosed in Note 10 and Note 38 respectively.

(b) Critical judgement made in applying accounting policies

The following is the judgement made by management in the process of applying the Group’s accounting policies that has the most significant effect on the amounts recognised in the financial statements.

(i) Property development

The Group recognises property development revenue and expenses in the income statement by using the stage of completion method. The stage of completion is determined by the proportion that property development costs incurred for work performed to date bear to the estimated total property development costs or survey of work performed.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

118

2. SIGnIfICanT aCCOunTInG POlICIES (COnT’D.)

2.5 Significant accounting estimates and judgements (cont’d.)

(b) Critical judgement made in applying accounting policies (cont’d.)

(i) Property development (cont’d.)

Significant judgement is required in determining the stage of completion, the extent of the property development costs incurred, the estimated total property development revenue and costs, as well as the recoverability of the development projects. In making the judgement, the Group evaluates based on past experience and by relying on the work of specialists.

As the Group is involved in the sales of land and property development, certain land are sold as part of development project. In such instances, where the Group has to undertake development obligations, expressed or implied, the profit from the sale is recognised on a percentage of completion basis. Taking into consideration terms and conditions as set out in sales and purchase agreements and overall project development plans or intentions, the management has to exercise judgement as to whether certain sales should be outright land sales or property development project sales.

119

3. REvEnuE

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Rental income from investment properties: Subsidiaries – – 1,496 1,504 Others 5,971 5,745 5,971 5,745 Gross dividends from: A subsidiary – – 20,000 31,815 Associates – – 4,238 8,537 Other investments: unquoted in Malaysia 50 1 – 1 Sales of development properties 13,737 19,635 – – Sales of land 98,408 71,260 – – Sales of completed properties 12,866 449 – – Sale of treated water 139,616 136,065 – – Sale of goods 35,094 33,271 – – Hotel operations 35,100 34,295 – – License and membership fees and club services rendered 4,091 4,068 – – Fees from property management 112 1,014 – – Management fees 24 24 276 276

345,069 305,827 31,981 47,878

4. COST Of SalES

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Property development costs (Note 16(b)) 7,729 24,236 – –Cost of land sold 56,289 22,798 – –Cost of completed properties sold 10,703 1,194 – –Cost of treated water sold 56,889 58,351 – –Costs of goods sold 31,148 30,088 – –Hotel and golf club operations 15,621 15,155 – –

178,379 151,822 – –

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

120

5. OTHER InCOME

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Interest income: Immediate holding company 68 243 – – Subsidiaries – – 150 150 Fixed deposits 2,327 4,212 6 673 Others 24,202 25,100 4 5 Discount received from creditors 234 – – – Gain on disposal of: Property, plant and equipment 81 513 11 144 Other investments 14 – 14 – Write back of provision for doubtful debts 1,620 3,688 – – Income from a joint venture – 4,908 – 5,454 Reversal of: Provision for obsolete inventories 4 – – – Provision no longer required 2,014 5,055 148 – Gain on: Unrealised forex 8 – – – Realised forex 183 41 – – Waiver of debts – 45,000 – – Bad debts recovered 74 29 – – Rental income from operating lease, other than those relating to investment properties 3,266 2,965 – – Rental income from investment properties 739 357 – – Compensation received from authorities for land acquired 39,427 11,951 – – Bad debts recovered arising from debt assignment and specific grant from ultimate holding corporation 115,101 – – – Others 4,010 1,314 787 2,934

193,372 105,376 1,120 9,360

121

6. fInanCE COSTS

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Interest expense on: Term loan 30,945 38,537 3,658 347 Bank overdrafts and short term borrowings 6,232 5,770 2,109 891 Fixed Rate Serial Bonds (“FRSB”) 30,500 30,503 – – Discount on FRSB 17,747 17,213 – – Bai' Bithaman Ajil Islamic Debt Securities (“BaIDS”) 11,000 11,000 – – Discount on BaIDS 2,689 2,648 – – Hire purchase 69 105 18 25 Others 132 501 282 20

99,314 106,277 6,067 1,283

7. PROfIT/(lOSS) bEfORE Tax anD zaKaT

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Profit/(loss) before tax and zakat is stated after charging:

Employee benefits expense (Note 8) 44,621 47,322 8,496 8,721 Non-executive directors’ remuneration (Note 9) 840 1,013 287 303 Auditors’ remuneration: Statutory audit 468 458 80 80 Others 112 107 7 7 Property, plant and equipment (Note 13): Depreciation 11,607 12,029 996 1,109 Written off 439 18 427 – Loss on disposal 170 2 – – Provision for doubtful debts 57,968 65,883 – 47

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

122

7. PROfIT/(lOSS) bEfORE Tax anD zaKaT (COnT’D.)

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Direct operating expenses of investment properties: – revenue generating during the year 178 110 4,550 4,130 – non-revenue generating during the year – 2 – – Bad debts written off 84 – – – Loss on termination of sales – 679 – – Loss on disposal of other investment 60 – – – Hire of plant and machinery 114 151 16 37 Rental expenses: Land and buildings 10 73 – – State land (Note 36) 7,757 7,559 – – Concession assets (Note 14) Amortisation 14,339 13,441 – – Transfer to income statement 4,430 7,747 – – Depreciation of investment properties (Note 17) 208 284 2,830 2,756 Impairment of: Land held for property development (Note 16(a)) 23,239 – – – Property development costs (Note 16(b)) – 27,736 – – Goodwill on consolidation (Note 22) 6,336 – – – Investment in a subsidiary – – 142,700 43,700 Other investments – 78 – – Investment properties (Note 17) – 59 – – Amortisation of concession rights (Note 21) 10,119 10,130 – – Amortisation of prepaid land lease payments (Note 15) 743 737 186 181 Royalty fees 283 289 – – Project expense written off 15,027 13,219 – – Penalty on taxation – 2,224 – 2,221 Write-down of inventories 9,415 82 – –

123

8. EMPlOyEE bEnEfITS ExPEnSE

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Wages, salaries and bonus 31,872 32,145 6,834 6,718 Social security contributions 303 333 28 27 Defined contribution plan 4,264 4,330 960 846 Retirement benefit obligations (Note 35(a)) – 75 – 75 Short term accumulating compensated absences – (85) – (85)Share options granted under KPS ESOS (Note 45) 1,790 196 674 196 Share options granted under KHSB ESOS – 625 – – Other benefits 6,392 9,703 – 944

44,621 47,322 8,496 8,721

Included in employee benefits expense of the Group and of the Company are executive directors’ remuneration amounting to RM4,099,000 (2008: RM3,861,000) and RM1,352,000 (2008: RM1,641,000) respectively as further disclosed in Note 9.

9. DIRECTORS’ REMunERaTIOn

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Directors of the Company

Executive:Salaries 1,446 1,982 1,177 1,478 Fees 410 433 125 125 Allowance 119 73 50 38 Benefits-in-kind 254 158 139 128

2,229 2,646 1,491 1,769

non-executive:Allowance 144 100 118 86 Fees 259 287 169 217 Benefits-in-kind 135 159 105 159

538 546 392 462

2,767 3,192 1,883 2,231

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

124

9. DIRECTORS’ REMunERaTIOn (COnT’D.)

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Directors of Subsidiaries

Executive:Salaries 2,007 1,331 – – Fees 94 – – – Allowance 23 42 – – Benefits-in-kind 60 – – –

2,184 1,373 – –

non-executive:Allowance 113 64 – – Fees 324 562 – – Benefits-in-kind 146 –

583 626 – –

2,767 1,999 – –

Analysis excluding benefits-in-kind:Total executive directors’ remuneration (Note 8) 4,099 3,861 1,352 1,641 Total non-executive directors’ remuneration (Note 7) 840 1,013 287 303

4,939 4,874 1,639 1,944

The number of directors of the Company whose total remuneration during the year fell within the following bands is analysed below:

number of directors

2009 2008

Executive directors: RM1,000,000 – RM1,050,000 – 1 RM1,050,001 – RM1,100,000 1 – RM1,150,001 – RM1,200,000 1 – RM1,600,000 – RM1,650,000 – 1

Non-executive directors: Less than RM50,000 1 3 RM50,001 – RM100,000 – 3 RM100,001 – RM150,000 2 1 RM150,001 – RM200,000 – 1 RM250,001 – RM300,000 1 –

125

10. InCOME Tax anD zaKaT

Group Company

2009RM’000

2008RM’000

(Restated)

2009RM’000

2008RM’000

Current income tax: Malaysian income tax 17,016 3,841 758 2,619 Real property gains tax (“RPGT”) – 1,520 – – (Over)/under provision in prior years: Malaysian income tax (22,278) 5,336 5 7,495

(5,262) 10,697 763 10,114

Deferred taxation (Note 38):Relating to (reversal)/origination of temporary differences (6,343) 2,059 – – Effect of changes in tax rates on opening balance of deferred tax – (5,992) – – Under/(over) provision in prior years 40 (302) – –

(6,303) (4,235) – –

Total income tax expense (11,565) 6,462 763 10,114 Zakat 420 3,835 – 2,322

(11,145) 10,297 763 12,436

Domestic current income tax is calculated at the statutory tax rate of 25% (2008: 26%) of the estimated assessable profit for the year.

Prior to the year of assessment 2009, companies with paid up capital of RM2,500,000 or less at the beginning of the basis period enjoy a concessionary tax rate of 20% on the first RM500,000 of chargeable income, while any balance of chargeable income is taxed at the normal corporate tax rate. With effect from year of assessment 2009, a company that has a paid up capital of RM2,500,000 or less but controls or is being controlled directly or indirectly by another company which has a paid up capital of more than RM2,500,000 in respect of ordinary shares will not be eligible for the concessionary tax rate. As a result, the companies in this Group are no longer entitled to claim the above preferential tax rates.

Zakat has been calculated at 2.5% of the adjusted net current assets multiplied by the estimated Muslim equity holding in the Company.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

126

10. InCOME Tax anD zaKaT (COnT’D.)

A reconciliation of income tax expense applicable to profit/(loss) before tax and zakat at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows:

Group

2009RM’000

2008RM’000

(Restated)

Profit/(loss) before tax and zakat 116,810 (4,147)

Taxation at Malaysian statutory tax rate of 25% (2008: 26%) 29,203 (1,078)Effect of income subject to tax rate of 20% – (60)Effect of income subject to RPGT rate of 5% – 1,520 Effect of changes in tax rates on opening balance of deferred tax – (5,992)Effect on deferred tax recognised at different tax rate – (128)Income not subject to tax (16,773) (18,740)Expenses not deductible for tax purposes 14,078 13,839 Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (22,714) (3,863)Utilisation of previously unutilised reinvestment allowances – (8,069)Utilisation of current year’s reinvestment allowances (591) – Deferred tax assets not recognised in respect of unabsorbed capital allowances and other deductible temporary differences 7,470 23,999 Under/(over) provision of deferred tax in prior years 40 (302)(Over)/under provision of tax expense in prior years (22,278) 5,336

Income tax for the year (11,565) 6,462

Company2009

RM’0002008

RM’000

Loss before tax and zakat (138,514) (13,323)

Taxation at Malaysian statutory tax rate of 25% (2008: 26%)Income not subject to tax (34,629) (3,464)Expenses not deductible for tax purposes (5,090) (7,826)Deferred tax assets not recognised in respect of unabsorbed 38,320 13,568 capital allowances and other deductible temporary differencesUnder provision of tax expense in prior years 2,157 341 Income tax expense for the year 5 7,495

763 10,114

127

10. InCOME Tax anD zaKaT (COnT’D.)

Tax savings during the financial year arising from:

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Utilisation of current year tax losses 277 – 253 –Utilisation of previously unrecognised tax losses 30,540 2,206 8,739 –

11. EaRnInGS PER SHaRE

(a) basic

Basic earnings per share is calculated by dividing profit/(loss) for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the financial year.

2009RM’000

2008RM’000

Profit/(loss) attributable to ordinary equity holders of the Company (RM’000) 72,224 (171)Weighted average number of ordinary shares in issue (‘000) 475,744 474,582 Basic earnings/(loss) per share (sen) 15.2 (0.04)

(b) Diluted

For the purpose of calculating diluted earnings per share, the profit/(loss) for the year attributable to ordinary equity holders of the Company and the weighted average number of ordinary shares in issue during the financial year have been adjusted for the dilutive effects of share options granted to employees.

2009RM’000

2008RM’000

Profit/(loss) attributable to ordinary equity holders of the Company 72,224 (171)

Weighted average number of ordinary shares in issue 475,744 474,582Effects of dilution of share options 2,390 2,959

Adjusted weighted average number of ordinary shares in issue and issuable 478,134 477,541

Diluted earnings/(loss) per share (sen) 15.1 (0.04)

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

128

12. DIvIDEnDS

Dividend in respect of year Dividends Recognised in year

2009RM’000

2008RM’000

2007RM’000

2009RM’000

2008RM’000

final

Recognised during the year:Final dividend for 2008: 4 sen less 25% taxation per ordinary shares, on 475,823,760 ordinary shares (3.00 sen per ordinary share) – 14,275 – 14,275 –Final dividend for 2007: 4 sen less 26% taxation per ordinary shares, on 475,460,760 ordinary shares (2.96 sen per ordinary share) – – 14,074 – 14,074

Proposed for approval at aGM (not recognised as at 31 December 2009):Final dividend for 2009: 4 sen less 25% taxation per ordinary shares, on 475,823,760 ordinary shares (3.00 sen per ordinary share) 14,275

14,275 14,275 14,074 14,275 14,074

At the forthcoming Annual General Meeting, a final dividend in respect of the financial year ended 31 December 2009, of 4 sen less 25% taxation, will be proposed for shareholders’ approval and be paid on 17 August 2010 to the shareholders registered on the Company’s Register of Members at the close of business on 30 July 2009. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2010.

129

13. PROPERTy, PlanT anD EquIPMEnT

Group

freehold land

RM’000

buildings and

clubhouse RM’000

Capitalwork in

progress RM’000

Motor vehicles RM’000

Office and hotel furniture,

fittings and equipment

RM’000 Total

RM’000

at 31 December 2009

Cost

At 1 January 2009 4,794 218,654 30 9,992 76,908 310,378 Additions – 1,119 304 593 3,947 5,963 Written off (Note 7) – (27) – (5) (1,067) (1,099)Transfer – – (52) – 52 – Transfer from concession assets (Note 14) – – – – 29 29 Disposals – (159) – (249) (1,622) (2,030)Adjustment – – – – (21) (21)

At 31 December 2009 4,794 219,587 282 10,331 78,226 313,220

accumulated depreciation

At 1 January 2009 – 61,105 – 7,256 57,707 126,068 Depreciation charge for the year (Note 7) – 5,511 – 1,033 5,063 11,607 Written off (Note 7) – (27) – (5) (628) (660)Disposals – (44) – (246) (1,322) (1,612)

At 31 December 2009 – 66,545 – 8,038 60,820 135,403

net carrying amount

At 31 December 2009 4,794 153,042 282 2,293 17,406 177,817

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

130

13. PROPERTy, PlanT anD EquIPMEnT (COnT’D.)

Group (Cont’d.)

freehold land

RM’000

buildings and

clubhouse RM’000

Capitalwork in

progress RM’000

Motor vehicles RM’000

Office and hotel furniture,

fittings and equipment

RM’000 Total

RM’000

at 31 December 2008

Cost

At 1 January 2008 4,794 219,532 – 9,620 73,052 306,998 Additions – 39 378 1,811 4,024 6,252 Written off (Note 7) – – – – (191) (191)Disposals – (917) – (1,439) (421) (2,777)Transfer – – (164) – 164 – Transfer to income statement – – (184) – – (184)Transfer from concession assets (Note 14) – – – 280 280

At 31 December 2008 4,794 218,654 30 9,992 76,908 310,378

accumulated depreciation

At 1 January 2008 – 55,841 – 7,232 53,171 116,244 Depreciation charge for the year (Note 7) – 5,504 – 1,429 5,096 12,029 Written off (Note 7) – – – – (173) (173)Disposals – (240) – (1,405) (387) (2,032)

At 31 December 2008 – 61,105 – 7,256 57,707 126,068

net carrying amount

At 31 December 2008 4,794 157,549 30 2,736 19,201 184,310

131

13. PROPERTy, PlanT anD EquIPMEnT (COnT’D.)

Company buildings

RM’000

Office equipment,

furniture and fittings

RM’000

Motor vehicles RM’000

Total RM’000

at 31 December 2009CostAt 1 January 2009 550 14,240 2,019 16,809 Additions – 64 261 325 Writen off (Note 7) – (709) – (709)Disposal – (5) (56) (61)

At 31 December 2009 550 13,590 2,224 16,364

accumulated depreciation

At 1 January 2009 175 10,691 1,200 12,066 Depreciation charge for the year (Note 7) 11 693 292 996 Writen off (Note 7) – (282) – (282)Disposal – (3) (52) (55)

At 31 December 2009 186 11,099 1,440 12,725

net carrying amount

At 31 December 2009 364 2,491 784 3,639

at 31 December 2008

Cost

At 1 January 2008 550 14,162 2,069 16,781 Additions – 80 674 754 Disposal – (2) (724) (726)

At 31 December 2008 550 14,240 2,019 16,809

accumulated depreciation

At 1 January 2008 164 9,975 1,542 11,681 Depreciation charge for the year (Note 7) 11 716 382 1,109 Disposal – – (724) (724)

At 31 December 2008 175 10,691 1,200 12,066

net carrying amount

At 31 December 2008 375 3,549 819 4,743

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

132

13. PROPERTy, PlanT anD EquIPMEnT (COnT’D.)

(a) During the financial year, the Group acquired property, plant and equipment at cost of RM62,600 (2008: RM237,500) by means of hire purchase arrangements.

(b) Net carrying amounts of property, plant and equipment held under hire purchase are as follows:

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Motor vehicles 394 621 38 76 Equipment 200 702 – –

594 1,323 38 76

14. COnCESSIOn aSSETS

asset replacement

works RM’000

Installation work

RM’000

Capital- work-in- progress RM’000

Total RM’000

Group - at 31 December 2009

CostAt 1 January 2009 96,508 52,715 3,150 152,373 Additions – – 8,155 8,155 Transfer 3,937 – (3,937) – Transfer to property, plant and equipment (Note 13)

– – (29) (29)

Transfer to inventories – – (400) (400)Transfer to income statement (Note 7) – – (4,430) (4,430)

At 31 December 2009 100,445 52,715 2,509 155,669

accumulated amortisation

At 1 January 2009 34,013 20,669 – 54,682 Amortisation charge for the year (Note 7) 10,394 3,945 – 14,339

At 31 December 2009 44,407 24,614 – 69,021

133

14. COnCESSIOn aSSETS (COnT’D.)

asset replacement

works RM’000

Installation work

RM’000

Capital- work-in- progress RM’000

Total RM’000

net carrying amount

At 31 December 2009 56,038 28,101 2,509 86,648

Group – at 31 December 2008

Cost

At 1 January 2008 86,966 52,715 9,157 148,838 Additions – – 11,562 11,562 Transfer 9,542 – (9,542) – Transfer to property, plant and equipment (Note 13)

– – (280) (280)

Transfer to income statement (Note 7) – – (7,747) (7,747)

At 31 December 2008 96,508 52,715 3,150 152,373

accumulated amortisation

At 1 January 2008 24,709 16,532 – 41,241 Amortisation charge for the year (Note 7) 9,304 4,137 – 13,441

At 31 December 2008 34,013 20,669 – 54,682

net carrying amount

At 31 December 2008 62,495 32,046 3,150 97,691

15. PREPaID lanD lEaSE PayMEnTS

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

At 1 January 52,829 53,503 13,723 13,904 Addition 437 63 423 – Amortisation for the year (Note 7) (743) (737) (186) (181)

At 31 December 52,523 52,829 13,960 13,723

Analysed as:

Long term leasehold land 52,523 52,829 13,960 13,723

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

134

16. lanD HElD fOR PROPERTy DEvElOPMEnT anD PROPERTy DEvElOPMEnT COSTS

(a) land held for property development

Development

Group land

RM’000Cost

RM’000Total

RM’000

at 31 December 2009:

Cost:At 1 January 2009 293,060 8,285 301,345 Additions 24,226 603 24,829 Disposals (32,609) (2,311) (34,920)Transfer to property development costs (Note 16(b)) (10,104) – (10,104)

At 31 December 2009 274,573 6,577 281,150

accumulated impairment losses:At 1 January 2009 (2,403) – (2,403)Recognised during the year (Note 7) (23,239) – (23,239)

At 31 December 2009 (25,642) – (25,642)

Carrying amount at 31 December 2009 248,931 6,577 255,508

at 31 December 2008:

Cost:At 1 January 2008 289,659 12,951 302,610 Additions 8,633 167 8,800 Transfer to property development costs (Note 16(b)) (5,232) (4,833) (10,065)

At 31 December 2008 293,060 8,285 301,345

accumulated impairment losses:At 1 January/31 December 2008 (2,403) – (2,403)

Carrying amount at 31 December 2008 290,657 8,285 298,942

135

16. lanD HElD fOR PROPERTy DEvElOPMEnT anD PROPERTy DEvElOPMEnT COSTS (COnT’D.)

(b) Property development costs

Group2009

RM’0002008

RM’000

Cumulative property development costs

At 1 January: Land costs 226,568 232,502 Development costs 744,719 771,056

971,287 1,003,558

Costs incurred during the year: Land costs – 3,342 Development costs 133,176 58,023

133,176 61,365

Reversal of completed projects: Land costs (5,955) (1,617) Development costs (337,317) (79,287)

(343,272) (80,904)

Transfer from land held for property development (Note 16(a)): Land costs 10,104 5,232 Development costs – 4,833

10,104 10,065

Disposal of land Land costs (6,650) (12,891) Development costs (40,007) (9,906)

(46,657) (22,797)

Accumulated impairment losses: At 1 January (31,095) (3,359) Recognised during the year (Note 7) – (27,736) Reversal of completed projects 4,676 –

At 31 December (26,419) (31,095)

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

136

16. lanD HElD fOR PROPERTy DEvElOPMEnT anD PROPERTy DEvElOPMEnT COSTS (COnT’D.)

(b) Property development costs (cont’d.)

Group2009

RM’0002008

RM’000

Cumulative property development costs (cont’d.)

Accumulated provision for foreseeable losses: At 1 January/31 December (10,054) (10,054)

Unsold units transferred to inventories: Land costs (633) – Development costs (34,783) –

(35,416) –

At 31 December 652,749 930,138

Cumulative costs recognised in income statement

At 1 January: (471,431) (528,099)Recognised during the year (Note 4) (7,729) (24,236)Reversal of completed projects 338,596 80,904

At 31 December (140,564) (471,431)

Property development costs at 31 December 512,185 458,707

(i) Titles to certain leasehold lands amounting to RM6,914,000 (2008: RM11,705,000) of the Group have yet to be transferred to a subsidiary company by the State Secretary Selangor (Incorporated) and Yayasan Selangor.

(ii) A charge has been created over development properties amounting to RM5,350,000 (2008: RM5,350,000) in favour of a third party by a subsidiary company.

(iii) During the year, development properties of a subsidiary amounting to approximately RM25,671,000 have been pledged for credit facilities granted to the subsidiaries as disclosed in Note 30.

137

17. InvESTMEnT PROPERTIES

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

At 1 January 7,604 7,947 62,775 65,531 Addition – – 1,095 – Impairment during the year (Note 7) – (59) – – Depreciation charge for the year (Note 7) (208) (284) (2,830) (2,756)

At 31 December 7,396 7,604 61,040 62,775

Fair value at 31 December 9,470 8,583 106,500 106,500

At Group level, the leasehold building with a carrying value of RM58,645,912 (2008: RM60,320,356) was reclassified to property, plant and equipment as certain parts of the building were rented out to the subsidiaries. The investment properties of the Group with carrying value of RM7,196,000 (2008: RM7,337,000) have been pledged for credit facilities to a subsidiary as disclosed in Note 30.

18. InvESTMEnTS In SubSIDIaRIES

Company

2009RM’000

2008RM’000

Quoted shares at cost 402,164 402,164 Less: Accumulated impairment losses (186,400) (43,700)

215,764 358,464

Unquoted shares at cost 229,378 228,262 Less: Accumulated impairment losses (20,298) (20,298)

209,080 207,964

424,844 566,428

Market value of quoted shares: In Malaysia 112,007 81,460

The recoverable amount of the investment in subsidiaries has been determined by the directors based on value-in-use calculation and net selling price. The period of cash flow projections and assumptions used are disclosed in Note 22.

The directors are of the view that it is not practicable within the constraints of timeliness and cost to estimate reliably the fair values of investments in unquoted shares.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

138

18. InvESTMEnTS In SubSIDIaRIES (COnT’D.)

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

name of subsidiariesProportion of ownership

interest (%) Principal activities

2009 2008

Held by the Company:

Kumpulan Hartanah Selangor Berhad 57 57 Property development

Hydrovest Sdn. Bhd. 60 60 Management and consultancy services

Titisan Modal (M) Sdn. Bhd. 55 55 Investment holding

Viable Chip (M) Sdn. Bhd. 100 100 Investment holding

Cash Band (M) Berhad 99 99 Investment holding and manages/owns a golf club

Perangsang Consultancy & Engineering Sdn. Bhd. 100 100 Dormant

Perangsang Metal Selangor Sdn. Bhd. 70 70 In liquidation

Selangor Construction Sdn. Bhd. 100 100 Construction works and granite quarrying (under official assignee)

Selangor Tiles Sdn. Bhd. 86 86 Under official assignee

Perangsang Segemal Sdn. Bhd. 51 51 In liquidation

Perangsang Alphasoft Sdn. Bhd. 100 100 In liquidation

Selangor Frits & Glazes Sdn. Bhd. 51 51 In liquidation

+ Selangor Amal Holdings Sdn. Bhd. 100 100 Dormant

Held by Kumpulan Hartanah Selangor berhad:

Central Spectrum (M) Sdn. Bhd. 44 44 Property development

SAP Holdings Berhad 57 57 Property development

* KHSB Properties Sdn. Bhd. 34 – Dormant

139

18. InvESTMEnTS In SubSIDIaRIES (COnT’D.)

Details of the subsidiaries which are incorporated in Malaysia are as follows (cont’d.):

name of subsidiariesProportion of ownership

interest (%) Principal activities

2009 2008

Held by SaP Holdings berhad

SAP Urus Harta Sdn. Bhd. 57 57 Property management

SAP Project Consultant Sdn. Bhd. 57 57 Ceased operation

SAP Ulu Yam Sdn. Bhd. 57 57 Property development and property management

SAP Leisure and Resort Sdn. Bhd. 57 57 Development of a tourist resort and property investment

Templer Park Golf & Resort Berhad 54 54 Property development

Perangsang Templer Landscape Sdn. Bhd. 54 54 Property development, landscaping and golf maintenance work

Templer Park Development Sdn. Bhd. 29 29 Property development

Templer Park Equestrian Centre Sdn. Bhd. 57 57 Property development

SAP Langkawi Development Sdn. Bhd. 57 57 Dormant

@ SAP Heritage Hotels & Properties Sdn. Bhd. 57 57 Dormant

KHSB Properties Sdn. Bhd. – 57 Dormant

@ SAP Rawang Development Sdn. Bhd. 57 57 Dormant

SAP Air Hitam Properties Sdn. Bhd. 57 57 Property development

@ SAP Sepang Development Sdn. Bhd. 57 57 Dormant

KHSB Titijaya Sdn. Bhd. 57 57 Dormant

@ Megatown Corporation Sdn. Bhd. 57 57 Dormant

@ SAP Sungai Pusu Development Sdn. Bhd. 57 57 Dormant

@ SAP Bengkulen Plantation Sdn. Bhd. 57 57 Dormant

Central Holdings Management Services Sdn. Bhd. 57 57 Dormant

@ Akademi Kecemerlangan SAP Sdn. Bhd. 46 46 Dormant

SUH-Imej Parking Sdn. Bhd. 29 29 Provision of parking services

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

140

18. InvESTMEnTS In SubSIDIaRIES (COnT’D.)

Details of the subsidiaries which are incorporated in Malaysia are as follows (cont’d.):

name of subsidiariesProportion of ownership

interest (%) Principal activities

2009 2008

Held by SaP Holdings berhad (cont’d.)

@ SAP Education Sdn. Bhd. 57 57 Dormant

@ PISB Trading Sdn. Bhd. 57 57 Ceased operation

Held under Hydrovest Sdn. bhd.:

Aqua-Flo Sdn. Bhd. 36 36 Trading in chemical products

Held under Titisan Modal (M) Sdn. bhd.:

Konsortium Abass Sdn. Bhd. 55 55 Operating, maintenance, construction and commissioning of water treatment plant and facilities and undertake contract works relating to the water industry activities

+ Rangkai Aman Sdn. Bhd. 55 55 Dormant

Held under Cash band (M) berhad:

Perangsang Hotel and Properties Sdn. Bhd. 99 99 Hotelier

Brisdale International Hotel Sdn. Bhd. 99 99 Property investment and hotel operator

+ Audited by firms of auditors other than Ernst & Young@ The financial statements of these subsidiaries have been prepared on a break-up basis.* Subsidiary acquired during the year as disclosed in Note 50 (c).

The carrying amount of investments in subsidiaries pledged for borrowings are as follows:

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Quoted Shares 118,662 354,010 118,662 35,4010Unquoted Shares 535,441 535,441 – –

141

19. InvESTMEnTS In aSSOCIaTES

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

In Malaysia:Quoted shares at cost 46,236 46,236 46,236 46,236 Unquoted shares 279,561 268,554 143,998 133,023

325,797 314,790 190,234 179,259

Share of post acquisition reserves 140,530 137,698 – –

466,327 452,488 190,234 179,259

Less: Accumulated impairment losses (18,042) (18,042) (15,990) (15,990)

448,285 434,446 174,244 163,269

Market value of quoted shares 122,619 144,040 122,619 144,040

Details of the associates which are incorporated in Malaysia are as follows:

name of associatesProportion of ownership

interest (%) Principal activities

2009 2008

Held by the Company:

Kuala Langat Mining Sdn Bhd. 41 41 Dormant

+ ∆ Intan Perangsang Sdn. Bhd. 30 30 Dormant

+ Perangsang Water Management Sdn. Bhd. 40 40 Water project operation and management

+ Taliworks Corporation Berhad 20 20 Investment holding, provision of contracting, project and management services

Sistem Penyuraian Trafik KL Barat Holdings Sdn. Bhd. ("SPRINT")

20 20 Investment holding and provision of management services

+ KPS-HCM Sdn. Bhd. 30 30 Maintenance and upgrading of roads

* KHSB Properties Sdn. Bhd. 40 – Dormant

Held by Cash band (M) berhad:

KDE Recreation Berhad (“KDERB”) 49 49 Club management

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

142

19. InvESTMEnTS In aSSOCIaTES (COnT’D.)

Details of the associates which are incorporated in Malaysia are as follows: (cont’d.)

name of associatesProportion of ownership

interest (%) Principal activities

2009 2008

Held by SaP Holdings berhad:

+ ∆ Ulu Yam Golf and Country Club Sdn. Bhd. 23 23 Development and management of a golf and country club

+ ∆ Beruntung Transport City Sdn. Bhd. 11 11 Development of logistic park

+ ∆ Waste Water Management Sdn. Bhd. 11 11 Consultancy services and construction works for water supply, reticulation and central coverage system

Held by Central Spectrum (M) Sdn. bhd.:

+ PMB Spectrum Sdn. Bhd. 17 17 Provision of common waste water treatment plan facilities and other development projects

Held by viable Chip (M) Sdn. bhd.:

Syarikat Pengeluar Air Selangor Holdings Berhad (“SPLASH”)

30 30 Investment holding

Held by Hydrovest Sdn. bhd.:

+ Chemindus Sdn. Bhd. 15 15 Manufacturing in chemical products

+ Audited by firms of auditors other than Ernst & Young ∆ The financial statements of the associates are not available. The said investments have been fully written down. In view of this, the

effect of not equity accounting for investment in associates is not material to the Group. * Associate acquired during the year as disclosed in Note 50 (d).

143

19. InvESTMEnTS In aSSOCIaTES (COnT’D.)

The summarised financial statements of the associates are as follows:

2009RM’000

2008RM’000

assets and liabilities

Current assets 1,405,626 1,232,702 Non-current assets 5,158,590 5,420,954

Total assets 6,564,216 6,653,656

Current liabilities 921,531 426,661 Non-current liabilities 3,984,103 4,600,598

Total liabilities 4,905,634 5,027,259

Results

Revenue 1,061,699 989,956 Profit for the year 204,062 192,900

The details of goodwill included within the Group’s carrying amount of investment in associates are as follows:

GoodwillRM’000

Carrying amount

At 1 January 2008/31 December 2008 7,903

At 1 January 2009/31 December 2009 7,903

The financial statements of the associates of the Group are coterminous with those of the Group, except for SPRINT and SPLASH which have a financial year end of 31 March and KDERB which have a financial year end of 30 April to conform with its respective holding companies’ financial year end.

The share of results of SPRINT and SPLASH for the current financial year are for the twelve month period ended 31 December 2009, incorporating the three month period ended 31 March 2009 based on the latest audited financial statements and the management financial statements for the nine month period ended 31 December 2009.

The share of results of KDERB for the current financial year are for the twelve month period ended 31 December 2009, incorporating the four month period ended 30 April 2009 based on the latest audited financial statements and the management financial statements for eight month period ended 31 December 2009.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

144

19. InvESTMEnTS In aSSOCIaTES (COnT’D.)

The carrying amount of investments in associates of the Group and Company pledged for borrowings are as follows:

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Quoted shares 39,935 45,067 39,935 45,067

Unquoted shares 131,487 131,487 – –

171,422 176,554 39,935 45,067

20. OTHER InvESTMEnTS

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

At cost: Quoted shares, in Malaysia 69,423 69,432 68,220 68,220 Quoted unit trusts, in Malaysia 165 165 115 115

69,588 69,597 68,335 68,335 Less: Impairment in value (4,972) (4,972) (4,274) (4,274)

64,616 64,625 64,061 64,061

At cost: Unquoted shares 201,066 201,066 201,066 201,066

At cost: Fixed Rate Serial Bonds 2,104 2,104 2,104 2,104

At cost: Club memberships 1,740 2,005 500 500 Less: Impairment in value (120) (120) – –

1,620 1,885 500 500

269,406 269,680 267,731 267,731

Market values: Quoted shares, in Malaysia 38,093 26,754 37,366 25,885 Quoted unit trusts, in Malaysia 247 200 170 133

38,340 26,954 37,536 26,018

The directors are of the view that it is not practicable within the constraints of timeliness and cost to estimate reliably the fair values of investments in unquoted shares.

The directors are of the view that no impairment is required for the other investment as the recoverable amount is in excess of the carrying amount of the investments.

145

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

20. OTHER InvESTMEnTS (cont’d.)

The carrying amount of other investments pledged for borrowings are as follows:

Group and Company

2009 2008 RM’000 RM’000

Quoted shares, in Malaysia 49,745 63,256

21. COnCESSIOn RIGHTS

Group

2009 2008 RM’000 RM’000 (Restated)

Cost

At 1 January 383,694 376,406Prior year adjustment (Notes 53 and 54) – 7,288

At 1 January (restated)/31 December 383,694 383,694

accumulated amortisation

At 1 January (27,116) (16,986)Amortisation during the year (Note 7) (10,119) (10,130)

At 31 December (37,235) (27,116)

net carrying amount

At 31 December 346,459 356,578

146

22. GOODWIll On COnSOlIDaTIOn

Group

2009 2008 RM’000 RM’000 (Restated)

At 1 January 133,636 131,595Prior year adjustment (Notes 53 and 54) – 2,041Impairment during the year (Note 7) (6,336) –

At 1 January (restated)/31 December 127,300 133,636

Cost

At 1 January 134,663 132,622Prior year adjustment (Notes 53 and 54) – 2,041

At 1 January (restated)/31 December 134,663 134,663

accumulated impairment

At 1 January (1,027) (1,027)Impairment during the year (Note 7) (6,336) –

At 31 December (7,363) (1,027)

127,300 133,636

Impairment test for goodwill

Goodwill is allocated to the Group’s cash-generating units (“CGU”) identified accordingly to major business segments.

A segment-level summary of the goodwill allocation is presented below:

Group

2009 2008 RM’000 RM’000 (Restated)

Property development and management 17,535 23,871Hospitality 2,020 2,020Infrastructure and utilities 107,435 107,435Trading 310 310

127,300 133,636

147

22. GOODWIll On COnSOlIDaTIOn (COnT’D.)

The recoverable amount of cash generating units (CGU) of the infrastructure and utilities, property development and management segment is determined based on value-in-use calculation. For infrastructure and utilities segment, a twenty one year period cash flow projections were used in the value-in-use calculation whereas a ten year period cash flow projections were used in the value-in-use calculation in property development, management and trading segments. The cash flow projections were based on financial budgets approved by the Board of Directors covering a five year period. Cash flow projections for the period beyond the approved budget are extrapolated using zero growth rate.

The value-in-use calculation was approved by the Board of Directors.

Key assumptions used for value-in-use calculation:

(i) The discount rate used is consistent with the respective segment’s weighted average cost of borrowings.

Discount Rate

Property development and management 6% and 8.3% Infrastructure and utilities 8.21% Trading 7.5%

(ii) The projects will be launched on the assumed due dates and the project cash flow will occur as projected.

(iii) Proceeds from sale of land and concession rights will be received as projected. (iv) The concession rights’ cash flow will occur as projected.

The above assumptions have been used for the analysis of each CGU. Management determined project launch dates based on management’s operation plans and proceeds from sale of land based on agreements.

The recoverable amount of CGU of hospitality segment is determined based on net selling price valued by a valuer. The basis of valuation is based on market value and the valuer had adopted the Comparison Method in valuing the property.

The recoverable amount of CGU of infrastructure and utilities and trading segment is determined based on present value of future cash flows.

The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 2.2 (j).

If the estimated discount rate applied to the discounted cash flows had been 1% higher than management estimates, the Group would not need to reduce the carrying value of goodwill.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

148

23. lOnG TERM RECEIvablES

Group

2009 2008 RM’000 RM’000

Long term receivables 27,872 108,022Less: Provision for doubtful debts – (73,925)

27,872 34,097

Included in long term receivables is an amount receivable from sale of treated water. The amounts are receivable over 10 annual installments commencing December 2006.

The Group has significant concentration of credit risks that arise from exposure to a single debtor which is Syarikat Bekalan Air Selangor Sdn. Bhd. (“SYABAS”), which makes up 100% of total receivables outstanding.

24. InvEnTORIES

Group

2009 2008 RM’000 RM’000

at cost

Completed properties 31,124 23,038Trading inventories 477 1,094Consumables 830 486Food and beverage 80 67

32,511 24,685

net realisable value

Completed properties 44,006 36,356

76,517 61,041

Inventories of the Group amounting to approximately RM12,143,000 (2008: RM17,718,000) have been pledged for credit facilities granted to certain subsidiaries (Note 30).

149

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

25. aMOunT DuE fROM CuSTOMER On COnTRaCT

Group

2009 2008 RM’000 RM’000

Construction costs incurred to date 399,658 399,658Attributable profits 27,637 27,637

427,295 427,295Less: Progress billings (183,115) (174,063)

Amount due from customer on contract (Note 26) 244,180 253,232

The gross amount due from customer relates to the construction of Bukit Badong Distribution Works which is billed through adjusted water tariff over the concession period as stipulated in the Supplemental Agreement dated 10 February 2001.

26. TRaDE RECEIvablES

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Trade receivables 196,796 203,921 959 1,316Less: Provision for doubtful debts (30,545) (19,772) (547) (1,020)

166,251 184,149 412 296Accrued billings in respect of property development cost 26,301 673 – –Amount due from customer on contract (Note 25) 244,180 253,232 – –

436,732 438,054 412 296

The Group’s normal trade credit term ranges from 30 to 120 days (2008: 30 to 120 days). Other credit terms are assessed and approved on a case-by-case basis.

The Group has significant concentration of credit risk that arose from exposure to a single debtor, Syarikat Bekalan Air Selangor Sdn. Bhd. (“SYABAS”), which makes up 75% (2008: 70%) of total trade receivables of the Group.

150

27. OTHER RECEIvablES

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Advances 1,116 167 32 25Prepayments 563 554 – 2Deposits 9,897 10,080 425 424Sundry receivables 5,309 34,297 3,769 6,438

16,885 45,098 4,226 6,889Less: Provision for doubtful debts (2,110) (2,008) (102) (102)

14,775 43,090 4,124 6,787

28. aMOunT DuE fROM ulTIMaTE HOlDInG CORPORaTIOn, IMMEDIaTE HOlDInG COMPany, SubSIDIaRIES, RElaTED COMPanIES anD aSSOCIaTES

(a) Amount due from ultimate holding corporation

Group

2009 2008 RM’000 RM’000

Amount due from ultimate holding corporation 115,101 –

The amount due from ultimate holding corporation is unsecured, interest free and have no fixed terms of repayment.

(b) Amount due from immediate holding company

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Amount due from immediate holding company 179,415 193,167 87,470 96,909

151

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

28. aMOunT DuE fROM ulTIMaTE HOlDInG CORPORaTIOn, IMMEDIaTE HOlDInG COMPany, SubSIDIaRIES, RElaTED COMPanIES anD aSSOCIaTES (COnT’D.)

(b) Amount due from immediate holding company (cont’d.)

Included in the amount due from immediate holding company of the Group and of the Company are:

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Deposits paid for the purchase of land banks 21,112 21,112 – –Deposit paid for a project 87,470 87,470 87,470 87,470

108,582 108,582 87,470 87,470

The amount due from immediate holding company is unsecured, interest free and have no fixed terms of repayment.

(c) Amount due from subsidiaries

Group

2009 2008 RM’000 RM’000

Amount due from subsidiaries 68,327 66,515Less: Provision for doubtful debts (4,280) (4,280)

64,047 62,235

The amount due from subsidiaries are unsecured, interest free and have no fixed terms of repayment.

(d) Amount due from related companies

Group

2009 2008 RM’000 RM’000

Amount due from related companies 1 4

The amount due from related companies are unsecured, interest free and have no fixed terms of repayment.

152

28. aMOunT DuE fROM ulTIMaTE HOlDInG CORPORaTIOn, IMMEDIaTE HOlDInG COMPany, SubSIDIaRIES, RElaTED COMPanIES anD aSSOCIaTES (COnT’D.)

(e) Amount due from associates

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Amount due from associates 240 240 239 239

The amount due from associates are unsecured, interest free and have no fixed terms of repayment.

29. CaSH anD CaSH EquIvalEnTS

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Housing Development Accounts 3,840 2,913 – –Sinking Fund Trust Account 139 75 – –Fixed Income Trust Funds 16,662 – – –Cash on hand and at banks 25,722 43,082 19 144Deposits with: Licensed banks 68,408 51,679 – – Licensed finance companies 25,000 18,868 – –

Cash and bank balances 139,771 116,617 19 144Bank overdrafts (Note 30) (54,637) (63,679) (17,794) (13,608)Less: Fixed deposits pledged (9,857) (8,190) – –

Cash and cash equivalents 75,277 44,748 (17,775) (13,464)

The Housing Development Accounts are held pursuant to Section 7A of the Housing Development (Control and Licensing) Act, 1966 and are restricted from use in other operations.

The Sinking Fund Trust Account is maintained in accordance with the provisions of the Trust Deed entered between a subsidiary and the trustee.

Certain deposits of the Group with licensed banks and licensed finance companies:

(i) Amounting to RM7,344,000 (2008: RM2,053,000), are held for the purpose of a subsidiary’s term loan repayment and therefore restricted from use in other operations. The said deposits have been pledged for credit facilities granted to a subsidiary as disclosed in Note 30.

(ii) Deposits with licensed banks of the Group amounting to RM505,000 (2008: RM505,000) have been pledged for credit facilities granted to certain subsidiaries.

153

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

29. CaSH anD CaSH EquIvalEnTS (COnT’D.)

The weighted average interest rates of deposits at the balance sheet date were as follows:

Group

2009 2008 % %

Licensed banks 2.06 3.37Licensed finance companies 2.00 3.19

The average maturities of deposits at the end of the financial year were as follows:

Group

2009 2008 Days Days

Licensed banks 82 30Licensed finance companies 30 116

30. bORROWInGS Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Short term borrowingsSecured:Bank overdrafts 23,517 22,382 17,794 13,608Revolving credits 20,000 5,000 15,000 -Term loans 55,800 81,434 50,000 30,000Hire purchase payables (Note 33) 506 761 128 122Guaranteed Fixed Rate Term Loan 31,000 28,000 – –Bai’ Bithaman Ajil Facility 31,000 28,000 – –

161,823 165,577 82,922 43,730

Unsecured:Bank overdrafts 31,120 41,297 – –Revolving credits 15,000 15,000 – –

46,120 56,297 – –

207,943 221,874 82,922 43,730

154

30. bORROWInGS (COnT’D.) Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

long term borrowingsSecured:Term loans 184,000 203,824 30,000 80,000Hire purchase payables (Note 33) 423 875 168 297Guaranteed Fixed Rate Term Loan 71,000 99,000 – –Bai’ Bithaman Ajil Facility 61,000 89,000 – –Fixed Rate Serial Bonds 594,411 576,664 – –Bai’ Bithaman Ajil Islamic Debt Securities (“BaIDS”) 189,574 186,885 – –

1,100,408 1,156,248 30,168 80,297

Total borrowingsBank overdrafts (Note 29) 54,637 63,679 17,794 13,608Revolving credits 35,000 20,000 15,000 –Term loans 239,800 285,258 80,000 110,000Hire purchase payables (Note 33) 929 1,636 296 419Guaranteed Fixed Rate Term Loan 102,000 127,000 – –Bai’ Bithaman Ajil Facility 92,000 117,000 – –Fixed Rate Serial Bonds 594,411 576,664 – –Bai’ Bithaman Ajil Islamic Debt Securities (“BaIDS”) 189,574 186,885 – –

1,308,351 1,378,122 113,090 124,027

Maturity of borrowings (excluding hire purchase)Within one year 227,026 240,457 82,794 43,608More than 1 year and less than 2 years 191,968 188,414 30,000 50,000More than 2 years and less than 5 years 439,018 357,190 – 30,0005 years or more 449,410 590,425 – –

1,307,422 1,376,486 112,794 123,608

155

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

30. bORROWInGS (COnT’D.)

The weighted average effective interest rates per annum at the balance sheet date for borrowings excluding hire purchase payables, were as follows:

Group

2009 2008 % %

Bank overdrafts 7.12 7.27Revolving credits 5.50 5.50Term loans 4.94 5.22Guaranteed Fixed Rate Term Loan 7.68 7.73Bai’ Bithaman Ajil Islamic Debt Securities (“BaIDS”) 6.19 6.19Bai’ Bithaman Ajil Facility 8.75 8.75Fixed Rate Serial Bonds 7.23 7.23

(i) The bank overdraft facilities are secured by way of:

(a) certain quoted shares of a subsidiary (Note 18), an associate (Note 19) and other investments (Note 20);

(b) certain development properties of the Group as disclosed in Note 16;

(c) certain investment properties (Note 17) of the Group;

(d) certain inventories of the Group (Note 24);

(e) corporate guarantees from the Company and a subsidiaries;

(f) a negative pledge over a subsidiary company’s present and future fixed and floating assets; and

(g) certain deposits with licensed banks and licensed finance companies of the Group (Note 29).

(ii) Revolving credits are secured by way of first legal charge over certain inventories of the Group (Note 24).

(iii) Included in term loans are the following:

(a) RM80 million term loan facility granted by a licensed bank, which is secured by way of:

– pledge under Memorandum of Deposit over certain quoted shares (Notes 18 and 19) of the Company; and

– a first party first fixed charge over leasehold land together with the building erected thereon known as Plaza Perangsang.

156

30. bORROWInGS (COnT’D.)

(iii) Included in term loans are the following (cont’d.):

(b) RM159.8 million term loan facility granted by a licensed bank, which is secured by way of:

– fixed deposit of RM7.344 million under lien to CIMB Bank Berhad as disclosed in Note 29 (i);

– charge over the subsidiary’s Escrow Account and Debt Service Reserve Account;

– debenture over the subsidiary’s assets;

– third party debenture on the subsidiaries’ assets and undertakings;

– assignment of all rights, benefits, contracts, insurance and undertaking of the subsidiaries;

– third party first legal charge over subsidiaries’ 13 pieces of land situated at Bandar Bestari Jaya, Batang Berjuntai Kuala Selangor owned by a subsidiary;

– assignment of proceeds from the sale of the following:

– 347 acres of land in Mukim Plentong, Johor Bahru;

– 1,359 acres of land in MC5 and MC6, Mukim Dengkil; and

– corporate Guarantee from the Company.

(c) The other term loans in previous year were secured by certain inventories of the Group (Note 24).

(iv) The Guaranteed Fixed Rate Term Loan and Bai’ Bithaman Ajil Facility raised by a subsidiary company are secured by fixed and floating charges over the assets of the subsidiary company.

The Guaranteed Fixed Rate Term Loan and Bai’ Bithaman Ajil Facility are repayable in 16 semi-annual installments which commenced in August 2005, 36 months after the first drawdown date.

157

31. fIxED RaTE SERIal bOnDS (“fRSb”)

Pursuant to the Trust Deed dated 18 April 2006, Titisan Modal (M) Sdn. Bhd. (“Titisan”) had issued FRSB at nominal value of up to RM738 million as follows:

(a) first series on 28 April 2006 giving proceeds of RM8,549,000 and maturing on 28 April 2012 with a redemption value of RM10,000,000 (coupon rate: 4%);

(b) second series on 28 April 2006 giving proceeds of RM37,080,000 and maturing on 28 April 2013 with a redemption value of RM45,000,000 (coupon rate: 4%);

(c) third series on 28 April 2006 giving proceeds of RM71,307,000 and maturing on 28 April 2014 with a redemption value of RM90,000,000 (coupon rate: 4%);

(d) fourth series on 28 April 2006 giving proceeds of RM72,219,000 and maturing on 28 April 2015 with a redemption value of RM95,000,000 (coupon rate: 4%);

(e) fifth series on 28 April 2006 giving proceeds of RM62,135,000 and maturing on 28 April 2016 with a redemption value of RM85,000,000 (coupon rate: 4%);

(f) sixth series on 28 April 2006 giving proceeds of RM63,207,000 and maturing on 28 April 2017 with a redemption value of RM90,000,000 (coupon rate: 4%);

(g) seventh series on 28 April 2006 giving proceeds of RM67,410,000 and maturing on 28 April 2018 with a redemption value of RM100,000,000 (coupon rate: 4%);

(h) eighth series on 28 April 2006 giving proceeds of RM71,170,000 and maturing on 28 April 2019 with a redemption value of RM110,000,000 (coupon rate: 4%);

(i) ninth series on 28 April 2006, maturing on 28 April 2020 with a redemption value of RM83,000,000 (coupon rate: 5%); and

(j) tenth series on 28 April 2006, maturing on 28 April 2021 with a redemption value of RM30,000,000 (coupon rate: 5%).

The FRSB is secured against the following:

(a) first charge by Titisan under a Memorandum of Deposit in favour of the security trustee or its nominees over 10,000,000 paid-up ordinary shares in Konsortium Abass Sdn. Bhd. (“Abass”) and 87,500,000 Redeemable Cumulative Preference Shares (“RCPS”) in Abass;

(b) first charge by Titisan under a Memorandum of Deposit in favour of the security trustee or its nominees over 100,000 ordinary shares in Rangkai Aman Sdn Bhd (“RA”);

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

158

31. fIxED RaTE SERIal bOnDS (“fRSb”) (COnT’D.)

The FRSB is secured against the following (cont’d.):

(c) assignment by Titisan over dividend entitlement under the ordinary shares and RCPS in Abass in favour of the security trustee. The scope of assignment herein shall exclude the interim dividend of 1543.21% declared by Abass in respect of the RCPS for the financial period ending 31 December 2005 pursuant to the terms and conditions of the following agreements:

(i) Share Sale Agreement (relating to 100% equity interest in RA) between Y. Bhg. Dato’ Sulaiman Abu Bakar and Abu Bakar Fikri bin Dato’ Sulaiman and Titisan dated 28 October 2005;

(ii) An Agreement for the Sale and Purchase of 25% equity interest in Abass between Chemical Waste Management Sdn. Bhd. and Titisan dated 31 October 2005; and

(iii) Sale and Purchase of Shares in Abass between the Company and Titisan dated 28 October 2005.

(collectively referred to as the “Sale and Purchase Agreements”);

(d) assignment by Titisan over dividend entitlement under the ordinary shares in RA in favour of the security trustee;

(e) fixed and floating charge by way of debenture over all the present and future assets, rights and interest and undertakings of Titisan;

(f) first charge in favour of the security trustee over the Revenue Account and the Sinking Fund Account of Titisan;

(g) a contingent rights granted by Titisan in favour of the Security Trustee for the consolidation of Titisan and Abass, subject to consent of applicable authorities;

(h) assignment of rights of Titisan under the sale and purchase agreement in relation to the 55% direct interest in Abass in favour of the Security Trustee;

(i) assignment of rights of Titisan under the sale and purchase agreement in relation to the 100% direct interest in RA in favour of the Security Trustee; and

(j) assignment of rights of Titisan under the share transfer agreement for the transfer of 45% equity interest in Abass.

The discount on FRSB is recognised in profit and loss as borrowing costs over the tenure of the FRSB’s series.

159

32. baI’ bITHaMan aJIl ISlaMIC DEbT SECuRITIES (“baIDS”)

Pursuant to the Trust Deed dated 17 August 2006, Viable Chip (M) Sdn. Bhd. (“VCSB”) had issued RM50 million BaIDS A and RM150 million BaIDS B based on the Islamic financing principle of Murabahah as follows:

(i) The BaIDS A comprised 2 tranches, with total proceeds of RM46,515,753 and maturing on August 2011 and August 2012, with a total redemption value of RM50,000,000. The difference between the proceeds and face value of the BaIDS is recognised as discount on BaIDS; and

(ii) The BaIDS B comprised 2 tranches, with total proceeds of RM134,239,240 and maturing on August 2013 and August 2014, with a total redemption value of RM150,000,000. The difference between the proceeds and face value of the BaIDS is recognised as discount on BaIDS.

The BaIDS A are secured by the Guarantee issued under the Kafalah Facility.

The BaIDS B are secured by the following security arrangements:

(a) charge over the Syarikat Pengeluar Air Selangor Holdings Berhad’s (“SPLASH”) shares by VCSB;

(b) A first ranking charge over the designated accounts and over the permitted investments out of such accounts including all monies standing to the credit of VCSB;

(c) A first ranking fixed and floating charge by way of debenture over all the present and future assets and undertakings of VCSB; and

(d) Third party charge of the entire issued and paid-up share capital of VCSB by the Company.

The security arrangements from (a) to (d) above for the BaIDS B are shared on a pari passu basis as security for the Kafalah Facility.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

160

33. HIRE PuRCHaSE PayablES

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

future minimum lease payments:Not later than 1 year 540 835 141 141Later than 1 year and not later than 2 years 280 565 141 141Later than 2 years and not later than 5 years 190 382 32 174

1,010 1,782 314 456Less: Future finance charges (81) (146) (18) (37)

Present value of hire purchase liabilities 929 1,636 296 419

analysis of present value of finance lease liabilities:Not later than 1 year 506 761 128 122Later than 1 year and not later than 2 years 255 527 136 129Later than 2 years and not later than 5 years 168 348 32 168

929 1,636 296 419Less: Due within 12 months (Note 30) (506) (761) (128) (122)

Due after 12 months (Note 30) 423 875 168 297

The hire purchase liabilities were charged interest of between 2.85% to 5.25% (2008: 2.50% to 5.25%) per annum.

34. lOnG TERM PayablES

Group

2009 2008 RM’000 RM’000

Long term payables 26,245 36,547

The long term payables are unsecured, interest free and are repayable after 12 months.

161

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

35. EMPlOyEE bEnEfITS

(a) Retirement benefit obligations

The Company operates a funded, defined benefit retirement scheme, the “Kumpulan Perangsang Selangor Berhad Retirement Scheme” (“the Scheme”) for its eligible employees. Contributions to the Scheme are made to a separately administered fund. Under the Scheme, eligible employees are entitled to retirement benefits calculated by reference to their length of service and earnings. Provision for retirement benefits is calculated based on the predetermined rate of basic salaries and length of service of the employees.

During the previous financial year, the Company replaced its defined benefit plan for eligible employees with a four percent increase in its EPF contribution to all eligible employees with effect from 1 January 2008.

The amounts recognised in the income statement are as follows:

Group and Company

2009 2008 RM’000 RM’000

Interest cost – 131Expected return on plan assets – (56)

Total included in employee benefits expense (Note 8) – 75

Movements in the net liability in the current year were as follows:

Group and Company

2009 2008 RM’000 RM’000

At 1 January – 500Recognised in income statement (Note 8) – 75Contributions paid – (575)

At 31 December – –

The principal actuarial assumptions used:

Group and Company

2009 2008 % %

Expected return on plan assets – 3.00

162

35. EMPlOyEE bEnEfITS (COnT’D.)

(b) Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”)

The Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”) is governed by the amended by-laws approved by the shareholders at an Extraordinary General Meeting held on 15 June 2004. The KPS ESOS was implemented on 30 July 2003 and is for a period of 5 years from the date of implementation, subject however, to an extension at the discretion of the Option Committee for a period up to 5 years commencing from the date of expiration of the original 5 year period. Subsequently, on 16 July 2008, the Option Committee has approved the extension of KPS ESOS Scheme tenure for another 3 years commencing from 29 July 2008 until 29 July 2011.

The salient features of the KPS ESOS are as follows:

(i) The total number of ordinary shares to be issued by the Company under the KPS ESOS shall not exceed 15% of the total issued and paid-up ordinary shares of the Company, such that not more than 50% of the shares available under the KPS ESOS is allocated, in aggregate, to directors and senior management.

(ii) Not more than 10% of the shares available under the KPS ESOS is allocated to any individual director or employee who, either singly or collectively through his/her associates, holds 20% or more in the issued and paid-up capital of the Company.

(iii) Only staff and directors of the Company, Hydrovest Sdn. Bhd., Konsortium Abass Sdn. Bhd., Cash Band (M) Berhad, Perangsang Hotel and Properties Sdn. Bhd. and Brisdale International Hotel Sdn. Bhd. are eligible to participate in the scheme. Executive directors are those involved in the day-to-day management and on the payroll of the Company.

(iv) The options price under the KPS ESOS is the average of the mean market quotation of the shares of the Company as quoted in the Daily Official List issued by Bursa Malaysia Securities Berhad for the five market days preceding the offer date, or the par value of the shares of the Company of RM1, whichever is the higher.

(v) All share options granted are exercisable from the date of grant and have a contractual option term between three to five years.

(vi) Share options granted under the KPS ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank pari passu in all respects with existing ordinary shares of the Company.

163

35. EMPlOyEE bEnEfITS (COnT’D.)

(b) Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”) (cont’d.)

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options during the year:

2009 <------------------------------- number of share options ---------------------------> Exercise as at as atGrant date Expiry date price 1.1.2009 Granted Terminated Exercised 31.12.2009 RM ‘000 ‘000 ‘000 ‘000 ‘000

12 August 2003 29 July 2011 1.62 3,930 – – (150) 3,78027 February 2007 29 July 2011 1.00 3,250 – – – 3,25023 July 2007 29 July 2011 1.62 755 – – – 75526 July 2007 29 July 2011 1.62 92 – – (10) 823 August 2007 29 July 2011 1.98 25 – – – 2517 July 2008 29 July 2011 1.93 550 – – – 55010 November 2008 29 July 2011 1.37 200 – (200) – –5 May 2009 29 July 2011 1.62 – 2,974 (223) – 2,751

8,802 2,974 (423) (160) 11,193

WAEP 1.41 1.62 1.50 1.62 1.46

2008 <------------------------------- number of share options ---------------------------> Exercise as at as atGrant date Expiry date price 1.1.2008 Granted Terminated Exercised 31.12.2008 RM ‘000 ‘000 ‘000 ‘000 ‘000

12 August 2003 29 July 2011 1.62 6,175 – – (2,245) 3,93027 February 2007 29 July 2011 1.00 3,250 – – – 3,25029 March 2007 29 July 2011 1.00 1,733 – – (1,733) –23 July 2007 29 July 2011 1.62 1,269 – – (514) 75526 July 2007 29 July 2011 1.62 437 – – (345) 923 August 2007 29 July 2011 1.98 40 – – (15) 2517 July 2008 29 July 2011 1.93 – 550 – – 55010 November 2008 29 July 2011 1.37 – 200 – – 200

12,904 750 – (4,852) 8,802

WAEP 1.38 1.78 – 1.40 1.41

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

164

35. EMPlOyEE bEnEfITS (COnT’D.)

(b) Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”) (cont’d.)

(i) Share options exercised during the year

As disclosed in Note 43, share options exercised during the financial year resulted in the issuance of 160,000 (2008: 4,851,600) ordinary shares at a weighted average exercise price of RM1.62 (2008: RM1.40) per ordinary shares. The related weighted average share price at the date of exercise was RM2.22 (2008: RM2.82).

(ii) Fair value of share options granted during the year

The fair value of share options granted during the year was estimated by an external valuer using a binomial model, taking into account the terms and conditions upon which the options were granted. The fair value of share options measured at grant date and the assumptions are as follows:

2009 2008

Fair value of share options at the following grant date (RM): 17 July 2008 – 0.70 10 November 2008 – 0.70 5 May 2009 0.49 –Weighted average share price (RM) 2.22 2.82Weighted average exercise price (RM) 1.62 1.40Expected volatility (%) 60.00 60.00Expected life (year) 2.00 3.00Risk free rate (%) 2.16 3.67- 3.79Expected dividend yield (%) 2.00 6.30

The expected life of the share options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of the option grant were incorporated into the measurement of fair value.

165

35. EMPlOyEE bEnEfITS (COnT’D.)

(c) Kumpulan Hartanah Selangor Berhad’s Employee Share Options Scheme (“KHSB ESOS”)

Kumpulan Hartanah Selangor Berhad (KHSB), a subsidiary company, implemented a KHSB ESOS on 21 December 2005 for a period of 5 years. The KHSB ESOS is governed by the by-laws which were approved by the shareholders at the Extraordinary General Meeting on 15 June 2004.

The salient features of the KHSB ESOS are as follows:

(i) The total number of ordinary shares to be issued by the KHSB under the KHSB ESOS shall not exceed 15% of the total issued and paid-up ordinary shares of KHSB, such that not more than 50% of the shares available under the KHSB ESOS is allocated, in aggregate, to Directors and senior management.

(ii) Not more than 10% of the shares available under the KHSB ESOS is allocated to any individual Director or employee who, either individually or collectively through his/her associates, holds 20% or more in the issued and paid-up capital of KHSB.

(iii) Any Director (both executive and non-executive Directors) of the KHSB Group (other than a company within the Group which is dormant) or an employee of the KHSB Group who is employed full time and is on the payroll of the KHSB Group (other than a company within the Group which is dormant), but does not include employees under probation, are eligible to participate in the scheme, subject to the final decision of the Options Committee.

(iv) The option price under the KHSB ESOS is the average of the mean market quotation of the shares of KHSB as quoted in the Daily Official List issued by Bursa Malaysia Securities Berhad, for the five market days preceding the offer date, or the par value of the shares of KHSB of RM1, whichever is the higher.

(v) The options granted are exercisable from the date of grant and have a contractual option term of five years.

(vi) Options granted under the KHSB ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank pari passu in all respects with existing ordinary shares of KHSB.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

166

35. EMPlOyEE bEnEfITS (COnT’D.)

(c) Kumpulan Hartanah Selangor Berhad’s Employee Share Options Scheme (“KHSB ESOS”) (cont’d.)

(vi) Options granted under the KHSB ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank pari passu in all respects with existing ordinary shares of KHSB (cont’d.).

The terms of share options outstanding as at the end of the financial year are as follows:

2009 <----------------- number of share options ---------------> Expiry Exercise as at as atGrant date date price 1.1.2009 Granted Terminated 31.12.2009 RM ‘000 ‘000 ‘000 ‘000

28.12.05 28.12.10 1.00 38,085 – (5,117) 32,96805.01.08 28.12.10 1.00 2,347 – (840) 1,507

40,432 – (5,957) 34,475

2008 <----------------- number of share options ---------------> Expiry Exercise as at as atGrant date date price 1.1.2008 Granted Terminated 31.12.2008 RM ‘000 ‘000 ‘000 ‘000

28.12.05 28.12.10 1.00 38,161 – (76) 38,08505.01.08 28.12.10 1.00 – 2,662 (315) 2,347

38,161 2,662 (391) 40,432

Fair value of share options granted in the previous year

The fair value of share options granted in the previous year was estimated by an external valuer using a binomial model, taking into account the terms and conditions upon which the options were granted. The fair value of share options measured at grant date and the assumptions are as follows:

2008

Fair value of share options at 5 January 2008 (RM): 0.24Expected volatility (%) 60.00Expected life (years) 2.18Risk free rate of interest (%) 3.58

The expected life of the share options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of the option grant were incorporated into the measurement of fair value.

167

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

36. aCCRuED lEaSE REnTal

Group

2009 2008 RM’000 RM’000 (Restated)

At 1 January 20,148 –Prior year adjustment (Notes 53 and 54) – 15,589

At 1 January (restated) 20,148 15,589Addition during the year (Note 7) 7,757 7,559Less: Payment made – (3,000) Transfer to other payables (Note 40) (3,000) –

At 31 December 24,905 20,148

The amount relates to accrued lease rental payable to the State Government, as stipulated in the Privatisation cum Concession Agreement (“PCCA”) dated 9 December 2000.

37. DEfERRED MEMbERSHIP InCOME

Group

2009 2008 RM’000 RM’000 (Restated)

At 1 January 3,910 6,488New membership obtained during the year – 71Amortisation recognised (1,781) (2,649)

At 31 December 2,129 3,910

Membership fees received are in respect of golfing licence fees and non-golfing membership fees.

168

38. DEfERRED TaxaTIOn

Group

2009 2008 RM’000 RM’000 (Restated)

At 1 January (149,611) (155,702)Prior year adjustment (Notes 53 and 54) – 1,856

At 1 January (restated) (149,611) (153,846)Recognised in income statement (Note 10) 6,303 4,235

At 31 December (143,308) (149,611)

Presented after appropriate offsetting as follows: Deferred tax assets 6,342 5,147 Deferred tax liabilities (149,650) (154,758)

(143,308) (149,611)

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:

Deferred tax liabilities of the Group:

Property, Development Intangible plant and properties assets equipment Others Total RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2009 (28,594) (99,842) (16,308) (10,014) (154,758)Recognised in income statement 3,069 2,833 (794) – 5,108

At 31 December 2009 (25,525) (97,009) (17,102) (10,014) (149,650)

At 1 January 2008 (29,855) (100,638) (15,269) (10,047) (155,809)Prior year adjustment – (2,040) – – (2,040)

At 1 January 2008 (restated) (29,855) (102,678) (15,269) (10,047) (157,849)Recognised in income statement 1,261 2,836 (1,039) 33 3,091

At 31 December 2008 (28,594) (99,842) (16,308) (10,014) (154,758)

169

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

38. DEfERRED TaxaTIOn (COnT’D.)

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows (cont’d.):

Deferred tax liabilities of the Group:

accrued rental Provisions Total RM’000 RM’000 RM’000

At 1 January 2009 5,036 111 5,147Recognised in income statement 1,189 6 1,195

At 31 December 2009 6,225 117 6,342

At 1 January 2008 – 107 107Prior year adjustment 3,896 – 3,896

At 1 January 2008 (restated) 3,896 107 4,003Recognised in income statement 1,140 4 1,144

At 31 December 2008 5,036 111 5,147

Deferred tax assets have not been recognised in respect of the following items:

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Unutilised tax losses 25,149 22,700 8,739 2,779Unabsorbed capital allowances 84,784 150,943 3,323 2,108Other deductible temporary differences 16,213 13,478 8,355 6,901

126,146 187,121 20,417 11,788

The unutilised tax losses and unabsorbed capital allowances of the Group and of the Company are available for offsetting against future taxable profits subject to no substantial changes in shareholdings under the Income Tax Act, 1967 and guidelines issued by the tax authority.

170

39. TRaDE PayablES

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Trade payables 185,889 200,325 3,169 5,316Progress billings in respect of property development costs 94,258 87,188 – –Provision for future costs to complete 220,688 134,627 – –

500,835 422,140 3,169 5,316

The normal trade credit terms granted to the Group range from 30 to 120 days (2008: 30 to 120 days).

40. OTHER PayablES

Group Company

2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Accruals 36,247 34,812 1,895 2,018Advances 4,051 5,552 – –Accrued lease rental (Note 36) 3,000 – – –Sundry payables 39,751 53,565 66 246

83,049 93,929 1,961 2,264

171

41. aMOunTS DuE TO IMMEDIaTE HOlDInG COMPany, SubSIDIaRIES, RElaTED COMPanIES anD an aSSOCIaTE

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

(a) Amount due to immediate holding company 6,040 520 4,854 – (b) Amount due to subsidiaries – – 139,618 117,334 (c) Amount due to related companies 147 147 44 44 (d) Amount due to an associate 1,495 1,276 – –

7,682 1,943 144,516 117,378

Amount due to immediate holding company, subsidiaries, related companies and an associate are unsecured, interest free and have no fixed terms of repayment except for advances from subsidiaries amounting to RM6,000,000 (2008: RM6,000,000), which bears interest of 5% (2008: 5%) per annum.

42. PROvISIOn

Group

2009RM’000

2008RM’000

At 1 January 13,526 14,855

Utilised during the year (50) (1,329)

At 31 December 13,476 13,526

Provision of the Group represents provision for liquidated damages in respect of projects undertaken by certain subsidiaries. The provision is recognised for expected liquidated and ascertained damages claims based on the terms of the applicable sale and purchase agreements.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

172

43. SHaRE CaPITal

number of ordinaryshares of RM1 each amount

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Authorised:At 1 January/31 December 1,000,000 1,000,000 1,000,000 1,000,000

Issued and fully paid:At 1 January 475,664 470,812 475,664 470,812 Ordinary shares issued pursuant to KPS ESOS

(Note 35(b)) 160 4,852 160 4,852

At 31 December 475,824 475,664 475,824 475,664

During the financial year, the Company increased its issued and paid-up ordinary share capital from RM475,663,760 to RM475,823,760 by way of the issuance of 160,000 ordinary shares of RM1 each for cash pursuant to the Company’s Employee Share Options Scheme at a weighted average exercise price of RM1.62 per ordinary shares.

The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of the Company.

44. SHaRE PREMIuM

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

At 1 January 34,129 31,054 34,129 31,054 Issue of ordinary shares pursuant to exercise of

KPS ESOS 99 1,939 99 1,939 Share options exercised under KPS ESOS – 1,136 – 1,136

At 31 December 34,228 34,129 34,228 34,129

173

45. OTHER RESERvES

General reserve

Revaluationreserve

Capitalreserve

Shareoptionsreserve

Group RM’000

fair valueadjustmentson an earlier

piecemealacquisition

RM’000

fair valueadjustments

on previously

heldinterest in

subsidiariesRM’000 RM’000

TotalRM’000

At 1 January 2009 8,000 127,367 30,243 723 166,333 Share options granted under KPS

ESOS (Note 8) – – – 1,790 1,790

At 31 December 2009 8,000 127,367 30,243 2,513 168,123

At 1 January 2008 8,000 127,367 30,243 1,310 166,920 Share options granted under KPS

ESOS (Note 8) – – – 196 196 Share options granted under KHSB

ESOS – – – 353 353 Share options exercised under KPS

ESOS – – – (1,136) (1,136)

At 31 December 2008 8,000 127,367 30,243 723 166,333

General reserve

Shareoptionsreserve

Company RM’000 RM’000 RM’000

At 1 January 2009 8,000 370 8,370 Share options granted under KPS ESOS – recognised in income statement (Note 8) – 674 674 – included in investment in a subsidiary – 1,116 1,116

At 31 December 2009 8,000 2,160 10,160

At 1 January 2008 8,000 1,310 9,310 Share options granted under KPS ESOS (Note 8) – 196 196 Share options exercised under KPS ESOS – (1,136) (1,136)

At 31 December 2008 8,000 370 8,370

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

174

46. RETaInED EaRnInGS

Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividends will be exempted from tax in the hands of the shareholders (“single tier system”). However, there is a transitional period of six years, expiring on 31 December 2013, to allow companies to pay franked dividends to their shareholders under limited circumstances. Companies also have an irrevocable option to disregard the Section 108 of the Income Tax Act, 1967 balance (“S.108 balance”) and opt to pay dividends under the single tier system. The change in the tax legislation also provides for the S.108 balance to be locked-in as at 31 December 2007 in accordance with Section 39 of the Finance Act 2007.

The Company did not elect for the irrevocable option to disregard the S.108 balance. Accordingly, during the transitional period, the Company may utilise the credit in the S.108 balance as at 31 December 2009 to distribute cash dividend payments to ordinary shareholdings as defined under the Finance Act 2007. As at 31 December 2009, the Company has tax exempt profits available for distribution of approximately RM69,540,000 (2008: RM69,540,000), subject to the agreement of the Inland Revenue Board. The Company has sufficient tax credit in the S.108 balance and the balance in the tax exempt income account to pay franked dividends amounting to RM222,804,000 (2008: RM228,670,000) out of its retained earnings. If the balance of the retained earnings of RM97,650,000 (2008: RM245,336,000) were to be distributed as dividends, the Company may distribute such dividends under the single tier system.

47. CaPITal COMMITMEnTS

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Capital expenditure Approved but not contracted for: Property, plant and equipment 2,200 2,200 2,200 2,200 Purchase of land 7,520 7,520 – – Concession assets 4,949 4,600 – –

14,669 14,320 2,200 2,200

175

47. CaPITal COMMITMEnTS (COnT’D.)

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Operating lease

Operating lease rental on the rights to use the Existing Facilities payable

– not later than one year 3,000 3,000 – – – later than one year and not later than five years 40,000 33,000 – – – later than five years 280,000 290,000 – –

323,000 326,000 – –

337,669 340,320 2,200 2,200

The existing facilities refer to the Sungai Semenyih Water Supply Scheme which consist of the Sungai Semenyih Dam, Intakes, Water Treatment Plant and Water Transfer Facilities (“Existing Facilities”).

In consideration for the use of the Existing Facilities, Konsortium Abass Sdn. Bhd., a subsidiary company, shall pay to the Selangor State Government an agreed annual rental fee over the duration of the concession period of 30 years.

48. COnTInGEnT lIabIlITIES

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

(i) Secured:

(a) Guarantees to secure banking and other credit facilities of an associate amounting to RM11,960,000 (2008: RM11,960,000) 5,860 5,860 5,860 5,860

(b) Foreclosure proceedings taken by a financial institution in respect of a third party charge granted by subsidiary on a piece of land 39,676 35,857 – –

(ii) unsecured:

Performance guarantees to third parties 513 415 513 415Other claims filed against the Group 7,852 18,338 – –

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

176

48. COnTInGEnT lIabIlITIES (COnT’D.)

(iii) A third party has filed an action alleging that a subsidiary’s termination of the joint venture agreement and the agreements ancillary thereto (“JVA”) due to the third party’s breach of four (4) fundamental conditions of the JVA was wrongful and claimed for the transfer of the ownership of the said land to the third party, damages to be assessed and the loss of profits of approximately RM350 million. The subsidiary has filed its defence and made a counter claim against the third party for the said four (4) fundamental breaches of the JVA by the third party and claiming amongst others, for the return of vacant possession of the said land, damages in the sum totalling to approximately RM399 million and an indemnity against all claims in the foreclosure proceedings as stated in Note 48(i)(b) above. A third party has filed an application to set aside the Ad-Interim injunction obtained in favour of the subsidiary. The hearing of the cases for all interlocutory application will be fixed by the court accordingly.

The directors are of the view that the likelihood of the crystallisation of liabilities arising from the above claims are remote and therefore no provisions have been made in the financial statements.

49. SIGnIfICanT RElaTED PaRTy DISClOSuRES

(a) In addition to related party disclosures mentioned elsewhere in the financial statements, the Group and the Company had the following transactions with related parties during the financial year:

2009RM’000

2008RM’000

Group

Sale of goods to a subsidiary company of a corporate shareholder: – Sungai Harmoni Sdn Bhd 8,876 8,660 Management fees paid to immediate holding company: – Kumpulan Darul Ehsan Berhad 1,808 1,700 Purchase of goods from an associated company – Chemindus Sdn. Bhd. 5,353 4,577 Management fees charged to immediate holding company: – Kumpulan Darul Ehsan Berhad 24 24 Construction cost incurred with Cekal Tulin Development Sdn. Bhd. 9,071 38,968 Interest charged to immediate holding company – Kumpulan Darul Ehsan Berhad 36 243

177

49. SIGnIfICanT RElaTED PaRTy DISClOSuRES (COnT’D.)

(a) In addition to related party disclosures mentioned elsewhere in the financial statements, the Group and the Company had the following transactions with related parties during the financial year (cont’d.):

2009RM’000

2008RM’000

Company

Rental income

(i) Subsidiaries – Kumpulan Hartanah Selangor Berhad 580 594 – Perangsang Hotel and Properties Sdn. Bhd. 658 658 – Hydrovest Sdn. Bhd. 63 62 – Konsortium Abass Sdn. Bhd. 195 191

Management fees received

(i) Immediate holding company – Kumpulan Darul Ehsan Berhad 24 24

(ii) Subsidiaries – Perangsang Hotel and Properties Sdn. Bhd. 24 24 – Hydrovest Sdn. Bhd. 24 24 – SAP Holdings Berhad 12 12 – Central Spectrum (M) Sdn. Bhd. 12 12 – Konsortium Abass Sdn. Bhd. 180 180

Interest income received

Fixed Rate Serial Bonds– Titisan Modal (M) Sdn. Bhd. 149 149

Management fees paid to immediate holding company– Kumpulan Darul Ehsan Berhad 1,024 1,024

Interest expenses paid to a subsidiary– Titisan Modal (M) Sdn. Bhd. 201 7

Interest expenses charged by subsidiaries– Perangsang Hotel and Properties Sdn. Bhd. 35 8 – Brisdale International Hotel Sdn. Bhd. 18 3 – Central Spectrum Sdn. Bhd. 28 –

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

178

49. SIGnIfICanT RElaTED PaRTy DISClOSuRES (COnT’D.)

(b) Compensation of key management personnel

The remuneration of directors and other members of key management during the year was as follows:

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Salaries, wages and bonuses 5,369 6,186 1,006 1,263Fees 1,032 1,282 294 342Defined contribution plan 733 794 171 215Other employee benefits 800 652 244 411Share options granted under KPS ESOS 329 196 329 196

8,263 9,110 2,044 2,427

Included in the total key management personnel are:

Group Company

2009RM’000

2008RM’000

2009RM’000

2008RM’000

Directors’ remuneration (Note 9) 4,939 4,874 1,639 1,944

Directors of the Group and the Company and other members of key management have been granted the following number of options under the Kumpulan Perangsang Selangor Berhad’s Employee Share Options Scheme (“KPS ESOS”):

Group Company

2009’000

2008’000

2009’000

2008’000

At 1 January 5,800 7,183 5,000 5,983

Granted – 750 – 750 Terminated (200) – (200) – Exercised – (2,133) – (1,733)

At 31 December 5,600 5,800 4,800 5,000

The share options were granted on the same terms and conditions as those offered to other employees of the Group.

179

50. SIGnIfICanT EvEnTS

(a) Konsortium Abass Sdn Bhd (“Abass”), a wholly owned subsidiary of Titisan Modal (M) Sdn. Bhd. (“TMSB”), which is in turn held 55% by the Company had received the Letter of Offer dated 13 February 2009 from the Selangor State Government in respect of the taking over of the water assets and operations of Abass for RM525,666,000 (“Offer”).

The offer price is based on the valuation of the water assets of Abass (using Capitalised Value) as at 31 December 2007. The offer price is based on cash value and payment to be made by taking over all water assets and operations without any liabilities to be assumed by the Selangor State Government.

On 20 February 2009, Abass has replied to the Selangor State Government on the Offer that its Board of Directors and the Board of Directors of the TMSB are unable to accept the Offer.

Abass has requested to negotiate with the Selangor State Government on a revised offer, on a willing buyer-willing seller basis, after taking into consideration all stakeholders’ interest.

On 25 June 2009, Abass received a Second Letter Offer dated 25 June 2009 from the Selangor State Government in respect of the taking over of the water assets and operations of Abass for RM946 million (“Second Offer”). The second offer price comprise of equity value, asset value and water related liabilities of Abass as at 30 June 2009.

On 29 June 2009, Abass has replied to the Selangor State Government that its Board of Directors and the Board of Directors of the Titisan in principle accept the Second Offer.

The acceptance of the Second Offer is subject to the approval of the relevant authorities, the consent of bondholders and lenders of Abass and Titisan and the approval of the shareholders of Abass, Titisan and KPS, if required.

On 30 November 2009, the Selangor State Government vide its letter informed Abass that it was unable to proceed with the Selangor State Government offer to Abass due to the inability of Syarikat Bekalan Air Selangor Sdn. Bhd. and Puncak Niaga (M) Sdn. Bhd. to accept the Selangor State Government offer to them. As such, The Selangor State Government had considered the offer to Abass dated 25 June 2009 deemed lapsed and of no effect.

The Company is 60% owned by Kumpulan Darul Ehsan Berhad (“KDEB”) which in turn is controlled by the Selangor State Government via Menteri Besar Incorporated. Accordingly, KDEB/the Company’s nominated directors in TMSB and Abass respectively have abstained from deliberation and making decision in respect of the Offer in view of the Selangor State Government’s interest in KDEB.

(b) Transfer of a subsidiary, KHSB Properties Sdn. Bhd.

On 2 November 2009, 500,000 ordinary shares of RM1 each representing the entire issued and paid-up share capital of KHSB Properties Sdn. Bhd. held by SAP Holdings Berhad, a subsidiary of the Company had been transferred to KHSB for a cash consideration of RM1.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

180

50. SIGnIfICanT EvEnTS (COnT’D.)

(c) Assignment of debt

On 3 November 2009, KHSB had entered into the Assignment of Debt Agreement (“ADA”) with State Government of Selangor Darul Ehsan (“State”) and Talam Corporation Berhad (“Talam”) whereas:

(i) Talam is indebted to KHSB and/or its subsidiaries for the principal amount of RM115,101,407 (“Debt”) which is evidenced by a confirmation of debt dated 3 November 2009,

(ii) KHSB wishes to grant, assign, transfer and set over unto the State its entire right, title and interest in and to the Debt upon the terms and conditions contained in the ADA,

Therefore the ADA witnesses that in consideration of the premises and the mutual promises, covenants, conditions, representations and warranties hereinafter contained and the sum of RM10 paid by the State to KHSB, the receipt of which is acknowledged, and subject to the terms and conditions as set out in ADA.

(d) Proposed disposal, proposed arrangement and proposed joint venture

On 9 November 2009, KHSB had entered into the following agreements with the Company:

(i) a share sale agreement for the disposal of 40% equity interest in KHSB Properties Sdn. Bhd. (“KHSB Properties”), comprising of 200,000 ordinary shares of RM1 each to the Company, for a consideration of RM1.

(ii) a sub-lease agreement whereby the Company has agreed to sub-lease all its rights to KHSB Properties to undertake mining operations on the land held under Lot 8527, Mukim Tanjung Duabelas, Daerah Kuala Langat, Negeri Selangor Darul Ehsan (“Mining Operation”).

(iii) a joint venture agreement for the purpose of KHSB Properties to undertake the Mining Operation.

(e) Memorandum of Agreement in relation to the distribution of a specific grant provided by the ultimate holding corporation, Menteri Besar Incorporation to a subsidiary

On 30 December 2009, a subsidiary of the Company, Kumpulan Hartanah Selangor Berhad (“KHSB”) had entered into the Memorandum of Agreement (“MOA”) with Menteri Besar Incorporated (“MBI”) on behalf of the State Government of Selangor (“State”) whereby MBI has agreed to provide KHSB a specific grant for the principal amount of RM115,101,407 (“Grant”).

The salient terms of the MOA are as follows:

(i) MBI shall distribute the Grant to KHSB on behalf of the State in order to ease KHSB’s burden. The Grant may include the transfer and/or alienation of State owned lands at no cost to KHSB.

(ii) KHSB may forward all claims made by the State to MBI and MBI undertakes to immediately pay on behalf of KHSB the applicable sums provided always the payments made forming the Grant collectively does not exceed the value of the Grant.

181

50. SIGnIfICanT EvEnTS (COnT’D.)

(e) Memorandum of Agreement in relation to the distribution of a specific grant provided by the ultimate holding corporation, Menteri Besar Incorporation to a subsidiary (cont’d.)

(iii) For purposes of the MOA, a waiver by the State of:

– any land revenue, being sum due or which shall become due to the State, on account of any premium or rent payable in respect of alienated land, or under any license or permit relating to land, and fees of any kind chargeable under the National Land Code, 1965 (“Land Code”) (“Land Revenue”); or

– any rent, being annual sum payable to the State by way of rent, any other annual payment due to the State which by any written law is to be collected as if it were rent or Land Revenue and any fee due to the State in respect of arrears of rent by virtue of rules under the Land Code;

procured by MBI for the benefit of KHSB shall constitute as MBI discharging its obligations contained in the MOA and shall form part of the Grant.

(iv) The Grant shall not constitute a loan by MBI to KHSB and there shall be no repayment obligations on the part of KHSB.

(v) The MOA shall continue in full force and effect until the complete satisfaction of the Grant in favour of KHSB and/or its subsidiaries.

(vi) The MOA is intended to have legal effect and bind the parties to the extent and in relation to the performance of their respective responsibilities, obligations and undertakings as set out in the MOA.

(f) Significant sales during the year

(i) Sale of land to Vibrant Domain Sdn. Bhd. (“VDSB”)

On 7 July 2009, SAP Holdings Berhad (“SAP”), a subsidiary of KHSB had entered into a SPA with VDSB to sell a piece of land held under on part of PN 24391, Lot No. 22527, Bandar Kundang, Daerah Gombak, Negeri Selangor Darul Ehsan measuring 78.8 acres of land (Plot 1) for a total consideration of RM4,176,400.

The SPA is conditional upon SAP obtaining the consent to transfer and issuance of the Individual Subdivided Documents of Title from the relevant State Authority.

(ii) Sale of land to Inai Kiara Sdn. Bhd. (“IKSB”)

On 22 July 2009, a subsidiary of KHSB, Central Spectrum (M) Sdn. Bhd. had entered into a Sale & Purchase Agreement (“SPA”) with IKSB to sell the industrial lot, on part of PN7942, Lot No. 74082, Section 11, Pulau Indah, Negeri Selangor Darul Ehsan measuring approximately net area of 78.55 acres of land for a total consideration of RM18,819,983.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

182

50. SIGnIfICanT EvEnTS (COnT’D.)

(f) Significant sales during the year (cont’d.)

(iii) Sale of land to Summit Streams Sdn. Bhd. (“SSSB”)

On 31 July 2009, Yayasan Selangor had entered into a SPA on behalf of SAP Ulu Yam Sdn. Bhd., an indirect subsidiary of KHSB with SSSB to sell a piece of leasehold land held under part of HS(D) 4104, PT No. 2731, Mukim Hulu Yam, Daerah Kuala Selangor, Negeri Selangor Darul Ehsan, measuring approximately 72.366 hectares of land, for a consideration of RM4,827,600.

(iv) Sale of land to Topaz Best Sdn. Bhd. (“TBSB”)

On 3 August 2009, SAP Holdings Berhad (“SAP”), a subsidiary of KHSB had entered into a SPA with TBSB to sell a piece of land held under on part PN 24391, Lot No. 22527, Bandar Kundang, Daerah Gombak, Negeri Selangor Darul Ehsan measuring 77.8 acres of land (Plot 2) for a total consideration of RM4,123,400.

The SPA is conditional upon SAP obtaining the consent to transfer and the issuance of Individual Subdivided Documents of Title from the relevant State Authority.

(v) Sale of land to B&G Capital Resources Berhad (“B&G”)

On 10 November 2009, Templer Park Golf & Resort Berhad, an indirect subsidiary of KHSB had entered into a SPA with B&G to sell a piece of land known as Phase 3D and 2C in Pekan Templer, Daerah Gombak, Negeri Selangor Darul Ehsan measuring approximately 5.19 acres of land for a total consideration of RM4,628,000.

On 10 November 2009, Templer Park Equestrian Centre Sdn. Bhd., an indirect subsidiary of KHSB had entered into a SPA with B&G to sell a piece of land known as Phase 4D in Pekan Templer, Daerah Gombak, Negeri Selangor Darul Ehsan measuring approximately 4.66 acres of land for a total consideration of RM7,971,000.

51. SubSEquEnT EvEnT

On 15 March 2010, SAP Holdings Berhad (“SAP”), a subsidiary of KHSB had entered into a SPA with the Company for the disposal of a three storey office building with a basement car park known as Wisma SAP held under HSM 16799, 16800, 16801 & 16802 and PT 28955, 28956, 28957 & 28958 respectively, located in Tempat Bandar Baru Selayang, Mukim Batu, Negeri Selangor Darul Ehsan on an “as is where is” basis for a total consideration of RM7 million.

52. fInanCIal InSTRuMEnTS

(a) financial risk management objectives and policies

The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group’s businesses whilst managing its foreign exchange risks, liquidity risk, interest rate risks and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. It is, and has been throughout the year under review, the Group’s policy that no trading in derivative financial instruments shall be undertaken.

183

52. fInanCIal InSTRuMEnTS (COnT’D.)

(b) foreign exchange risk

The Group is exposed to transactional currency risk primarily through sales and purchases that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to the risk are primarily United States Dollar (USD) and Pound Sterling (£). Foreign exchange exposures in transactional currencies other than functional currencies of the operating activities are kept to an acceptable level.

(c) liquidity risk

The Group manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that refinancing, repayment and funding needs are met. As part of its overall liquidity management, the Group maintains sufficient levels of cash to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities at a reasonable level to its overall debt position. As far as possible, the Group raises committed funding from both capital markets and financial institutions and balances its portfolio with some short term funding so as to achieve overall cost effectiveness.

(d) Interest rate risk

The Group’s income and operating cash flows are substantially independent of changes in market interest rates. Interest rate exposures arise from the Group’s borrowings and deposit. The Group managers its interest rate exposure by maintaining a fixed rate borrowings.

It is the Group’s policy not to trade in interest rate swap agreements.

The following tables set out the carrying amounts, the weighted average effective interest rates (WAEIR) as at the balance sheet date and the remaining maturities of the Group’s financial instruments are as follows:

noteWaEIR

%

Within 1 year

RM’000

1-2 years

RM’000

2-3 years

RM’000

3-4 years

RM’000

4-5 years

RM’000

More than

5 years RM’000

Total RM’000

at 31 December 2009

Group

fixed rate

Guaranteed Fixed Rate Term Loan 30 7.68 31,000 28,000 29,000 14,000 – – 102,000

Bai’ Bithaman Ajil Facility 30 8.75 31,000 28,000 28,500 4,500 – – 92,000Bai’ Bithaman Ajil Islamic

Debts Securities (“BaIDS”) 30 6.19 – 19,588 28,968 71,194 69,824 – 189,574

Fixed Rate Serial Bonds 30 7.23 – – 10,000 45,000 90,000 449,411 594,411

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

184

52. fInanCIal InSTRuMEnTS (COnT’D.)

(d) Interest rate risk (cont’d.)

noteWaEIR

%

Within 1 year

RM’000

1-2 years

RM’000

2-3 years

RM’000

3-4 years

RM’000

4-5 years

RM’000

More than

5 years RM’000

Total RM’000

at 31 December 2008

Group (cont’d.)

fixed rate

Guaranteed Fixed Rate Term Loan 30 7.68 28,000 28,000 28,000 29,000 14,000 – 127,000

Bai’ Bithaman Ajil Facility 30 8.75 28,000 28,000 28,000 28,500 4,500 – 117,000 Bai’ Bithaman Ajil Islamic

Debts Securities (“BaIDS”) 30 6.19 – – 19,344 28,590 70,190 68,761 186,885

Fixed Rate Serial Bonds 30 7.23 – – – 10,000 45,000 521,664 576,664

(e) Credit risk

Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and monitoring procedures. Credit risks are minimised and monitored via strictly limiting the Group’s associations to business partners with high creditworthiness. Trade receivables are monitored on an ongoing basis via Group management reporting procedures.

The Group and the Company’s credit risk exposure is disclosed in Notes 23 and Note 26.

(f) fair value

The carrying amounts of financial assets and liabilities of the Group and the Company at the balance sheet date approximated their fair values except for the following:

Group

note

Carrying amount RM’000

fair value RM’000

financial assets

at 31 December 2009Long term receivables 23 27,872 24,552

at 31 December 2008

Long term receivables 23 34,097 31,572

185

52. fInanCIal InSTRuMEnTS (COnT’D.)

(f) fair value (cont’d.)

Group

note

Carrying amount RM’000

fair value RM’000

financial liabilities

at 31 December 2009Long term payables 34 26,245 20,662

at 31 December 2008

Long term payables 34 36,547 33,746

In assessing the fair value of financial instruments, the Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. The fair value of publicly traded securities is based on quoted market prices at the balance sheet date. Quoted market prices of specific or similar instruments are used for long term debt. The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the current market interest rate available to the Group for similar financial instruments.

The face values of financial assets and liabilities with a maturity period of less than one year are assumed to reflect their fair values.

53. PRIOR yEaR aDJuSTMEnT

During financial year ended 31 December 2009, there has been an under accrual of state lease rental expense in a subsidiary company due to differences in the method applied to charge the lease rental as compared to the requirement of FRS 117: Lease.

The following adjustments relating to the prior year financial statements of the Group were identified during the current year and were accounted for retrospectively by way of prior year adjustment.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

186

53. PRIOR yEaR aDJuSTMEnT (COnT’D.)

Group

2009RM’000

2008RM’000

Effect on retained earnings:At 1 January, as previously stated 237,982 250,347 Effects of prior year adjustment (4,302) (2,422)

At 1 January, as restated 233,680 247,925 Profit/(loss) for the year (restated) 72,224 (171)

305,904 247,754 Dividends (Note 12) (14,275) (14,074)

At 31 December, as restated 291,629 233,680

Effect on minority interest:At 1 January, as previously stated 138,453 153,031 Effects of prior year adjustment (3,521) (1,982)

At 1 January, as restated 134,932 151,049 Share options granted under KHSB ESOS – 272 Disposal of interest in a subsidiary 200 – Dividends of subsidiaries (4,989) (2,116)Profit/(loss) for the year (restated) 55,731 (14,273)

At 31 December, as restated 185,874 134,932

Effect on profit for the year:Profit/(loss) before the change in the method of lease rental charged 131,523 (11,025)Effects of prior year adjustment (3,568) (3,419)

Profit/(loss) for the year 127,955 (14,444)

Comparative amounts for cost of sales, income tax expenses, concession rights, goodwill on consolidation, deferred tax liabilities and accrued lease rental of the Group as at 31 December 2008 have been restated, as disclosed in Note 54 to conform with the effect of the prior year adjustment which have been applied retrospectively.

187

54. COMPaRaTIvES

The presentation and classification of items in the current year financial statements have been consistent with the previous year except that certain comparative amounts have been adjusted as a result of the prior year adjustment as disclosed in Note 53.

as previously stated

RM

Re- classification

RMadjustment

RMRestated

RM

Group

Income statement

Cost of sales 147,263 – 4,559 151,822 Income tax expenses 11,437 – (1,140) 10,297

balance sheet

Concession rights 349,290 – 7,288 356,578 Goodwill on consolidation 131,595 – 2,041 133,636 Deferred tax liabilities 152,607 – (2,996) 149,611 Accrued lease rental – – 20,148 20,148

55. SEGMEnTal InfORMaTIOn

The primary segment reporting format is determined to be business segments as the Group’s risks and rates of return are affected predominantly by differences in the products and services produced. The Group do not have a secondary reporting format as the Group operates only in Malaysia.

Segment revenues and expenses are those directly attributable to the segments and include any joint revenue and expenses where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist principally of property, plant and equipment, net of accumulated depreciation, land held for property development, property development costs, receivables, inventories and deposits, cash and bank balances.

Segment assets and liabilities do not include income tax assets and liabilities.

The Group is organised into six main business segments:

Investment holding•Property development and management•Infrastructure and utilities•Trading•Hospitality•Golf club and recreation facilities•

Other operations of the Group mainly comprise management and consultancy services which is not of a sufficient size to be reported separately.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

188

55. SEGMEnTal InfORMaTIOn (COnT’D.)

InvestmentholdingRM’000

Propertydevelopment

andmanagement

RM’000

Infrastructureand utilities

RM’000TradingRM’000

HospitalityRM’000

Golf cluband

recreationalfacilitiesRM’000

OthersRM’000

ConsolidatedRM’000

2009

Revenue

External revenue 6,021 125,123 139,616 35,094 30,377 8,814 24 345,069

Operating (loss)/profit (16,164) 90,944 77,143 2,337 138 114 (2) 154,510

Finance costs (99,314)Share of profit of

associates 61,614

Profit before tax and zakat 116,810

Income tax and zakat 11,145

Profit after tax and zakat 127,955

Minority interests (55,731)

Profit for the year attributable

to equity holders of the Company 72,224

Segment assets 435,153 1,187,931 972,140 19,977 23,458 177,358 9,649 2,825,666

Investment in associates 448,285

Unallocated assets 13,812

Total assets 3,287,763

Segment liabilities (10,028) (576,352) (50,155) (8,412) (8,139) (5,226) (9) (658,321)

Unallocated liabilities (1,473,764)

Total liabilities (2,132,085)

Capital expenditure 1,845 417 457 110 3,398 173 – 6,400 Depreciation and

amortisation 4,012 990 1,036 209 4,633 1,678 – 12,558

189

55. SEGMEnTal InfORMaTIOn (COnT’D.)

InvestmentholdingRM’000

Propertydevelopment

andmanagement

RM’000

Infrastructureand utilities

RM’000TradingRM’000

HospitalityRM’000

Golf cluband

recreationalfacilitiesRM’000

OthersRM’000

ConsolidatedRM’000

2008

Revenue

External revenue 5,745 92,358 136,065 33,271 30,176 8,187 25 305,827

Operating (loss)/profit (14,087) (26,561) 82,187 1,351 2,033 387 (5) 45,305

Finance costs (106,277)Share of profit of

associates 56,279 Share of profit of a

joint venture 546

Loss before tax and zakat (4,147)

Income tax and zakat (10,297)

Loss after tax and zakat (14,444)

Minority interest 14,273

Loss for the year attributable

to equity holders of the Company (171)

Segment assets 449,893 1,084,882 980,508 21,942 20,492 178,915 9,655 2,746,287

Investment in associates 434,446

Unallocated assets 3,834

Total assets 3,184,567

Segment liabilities (7,624) (513,694) (45,772) (10,163) (7,983) (6,903) (4) (592,143)

Unallocated liabilities (1,547,686)

Total liabilities (2,139,829)

Capital expenditure 721 481 986 287 3,660 180 – 6,315 Depreciation and

amortisation 4,047 1,264 1,371 219 4,388 1,761 – 13,050

NOTES TO THE FINANCIAL STATEMENTS 31 December 2009 (cont’d.)

190

191

A. Authorised share capital Modal saham dibenar : RM1,000,000,000.00 Issued and paid-up share capital Modal saham diterbitkan dan dibayar : RM475,823,760 Class of shares : Ordinary shares of RM1.00 each Kelas saham : Saham biasa RM1.00 sesaham

B. ANALYSIS BY SIZE OF SHAREHOLDINGS ANALISA MENURUT SAIZ PEGANGAN Size Of No. Of % Of No. Of % OfShareholdings Shareholders Shareholders Shares Held ShareholdingsSaiz Bilangan % Pemegang Bilangan Saham % PeganganPegangan Pemegang Saham Saham Yang Dipegang

Less than 100 / Kurang dari 100 466 5.27 28,740 0.01100 – 1,000 2,762 31.23 1,786,975 0.381,001 – 10,000 4,039 45.68 20,222,627 4.2510,001 – 100,000 1,397 15.80 42,992,045 9.03100,001 to less than 5% / 100,001 ke kurang dari 5% 177 2.00 94,430,485 19.845% and above / 5% dan ke atas 2 0.02 316,362,888 66.49

TOTAL/JUMLAH 8,843 100.00 475,823,760 100.00

C. LIST OF SUBSTANTIAL SHAREHOLDERS (5% AND ABOVE) SENARAI PEMEGANG SAHAM UTAMA (5% DAN KE ATAS)

Name Shareholdings No. Nama Pegangan Saham %

1. Kumpulan Darul Ehsan Berhad 288,807,494 60.702. Perbadanan Kemajuan Negeri Selangor 27,555,394 5.79

ANALYSIS OF SHAREHOLDINGSANALISA PEGANGAN SAHAMas at 30 April 2010/pada 30 April 2010

192

D. LIST OF THIRTY (30) LARGEST SHAREHOLDERS SENARAI TIGA PULUH (30) PEMEGANG SAHAM TERBESAR

No. Name /Nama Shareholdings/ Pegangan Saham

%

1. AMSEC Nominees (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 180,000,000 37.83

2. AMMB Nominees (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 53,000,000 11.14

3. ABB Nominee (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 52,000,000 10.93

4. Perbadanan Kemajuan Negeri Selangor 27,504,994 5.78

5. Amanah Raya Trustee BerhadA/C Skim Amanah Saham Bumiputera 17,211,500 3.62

6. Tabung Warisan Negeri Selangor 5,000,000 1.05

7. Alliance Group Nominees (Tempatan) Sdn BhdA/C Noor Azman @ Noor Hizam b Mohd Nurdin 4,872,300 1.02

8. RHB Capital Nominees (Tempatan) Sdn BhdA/C Noor Azman @ Noor Hizam b Mohd Nurdin 4,591,600 0.96

9. CIMB Nominees (Tempatan) Sdn BhdA/C Kumpulan Darul Ehsan Berhad 3,304,700 0.69

10. RHB Capital Nominees (Tempatan) Sdn BhdA/C Nor Hayati binti Abd Malik 2,833,400 0.60

11. Ng Chiew Eng @ Ng Chiew Ming 2,700,000 0.57

12. ECML Nominees (Asing) Sdn BhdA/C United Forest Limited 2,494,000 0.52

13. Amanah Raya Trustees BerhadA/C Public Islamic Optimal Growth Fund 2,425,000 0.51

14. Lebar Daun Construction Sdn Bhd 2,406,500 0.51

15. Alliance Group Nominees (Tempatan) Sdn BhdA/C Norazmi bin Mohamed Nurdin 1,839,000 0.39

16. AIIB Nominees (Tempatan) Sdn BhdA/C Rampai Baiduri-Jaya Sdn Bhd 1,734,237 0.36

17. Juma’ah Binti Moktar 1,701,000 0.36

18. HSBC Nominees (Asing) Sdn BhdA/C Credit Suisse 1,676,300 0.35

19. Citi Group Nominees (Asing) Sdn BhdA/C Dimensional Emerging Markets Value Fund 1,128,400 0.24

20. Mal Monte Sdn Bhd 1,010,000 0.21

21. RHB Capital Nominees (Tempatan) Sdn BhdA/C Norazlan bin Mohamad Nordin 1,007,700 0.21

22. Dato’ Haji Abd Karim bin Munisar 1,000,000 0.21

23. Sultan Idris Shah 990,000 0.21

24. Dato’ Zabir bin Bajuri 920,000 0.19

ANALYSIS OF SHAREHOLDINGSANALISA PEGANGAN SAHAM as at 30 April 2010/pada 30 April 2010

193

No. Name /Nama Shareholdings/ Pegangan Saham

%

25. SJ SEC Nominees (Tempatan) Sdn BhdA/C Low Siew Moi 845,000 0.18

26. RHB Capital Nominees (Tempatan) Sdn BhdA/C Norazmi bin Mohamed Nurdin 803,400 0.17

27. Public Nominees (Tempatan) Sdn BhdA/C Loh Wok Seng @ Loh Wak Seng 603,500 0.13

28. Dato’ Lim Chee Meng 569,200 0.12

29. Amanah Raya Trustees BerhadA/C Public Islamic Asia Balanced Fund 557,000 0.12

30. Rosni binti Rahmat 553,700 0.12

E. LIST OF DIRECTOR’S SHAREHOLDINGS SENARAI PEGANGAN SAHAM PARA PENGARAH

No. Name/Nama Shareholdings/ % Pegangan Saham

1. Dato’ Haji Abd Karim bin Munisar 1,000,000 0.212. Dato’ Haji Azlan bin Hashim 370,000 0.08 Dato’ Haji Ab Halim bin Mohyiddin 339,999 0.07 Shares held in CDS account as follows :

a. Individual Account - 220,999 b. Tasec Nominees (Tempatan) Sdn Bhd - 119,000

3. Wong Yien Kim – – 4. Mustaffa Kamil bin Ayub – –

194

1. KUMPULAN PERANGSANG SELANGOR BERHAD

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

Bandar Banting Tambahan Kuala Langat

H.S(D) 8187/ PT 7980

2.6 Leasehold/Pajakan 99/2099

Factory being rented outKilang disewakan

3,404 21

Hulu KelangGombak

H.S(M) 2615/ PT 7680

40,530 sq. ft./kp

Leasehold/Pajakan 99/2086

Factory being rented outKilang disewakan

1,733 26

Batang Kali Hulu Selangor

LOT 3277 UNDER GRANT 24222 PH 22/B6

1,763 sq. ft./kp Freehold/Pegangan Bebas

ApartmentApartmen

160 25

Shah AlamSelangor

H.S(D) 92260/PT 0006

108,360 sq. ft./kp

Leasehold/Pajakan 99/2086

Office & Hotel Pejabat & Hotel

69,862 22

Tanjong TuanPort Dickson

LOT 5627 1,099 sq. ft./kp Leasehold/Pajakan 99/2081

ApartmentApartmen

203 24

2. KUMPULAN HARTANAH SELANGOR BERHAD GROUP

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

Mukim BatuDaerah Gombak

PT 28955 – PT 28958,PT 28953 – PT 28954

0.30 Leasehold/Pajakan 99/2091

4 units (31/2 storey office & 2 units of 3 storey office)4 unit (pejabat 31/2

tingkat & pejabat 3 tingkat

5,252 17

Mukim RawangDaerah Gombak

Lot 609 (Part) 1.52 Leasehold/Pajakan 99/2094

Building Land Tanah Untuk Bangunan

135 N/A

Mukim BatuDaerah Gombak

PT 14406 26.62 Leasehold/Pajakan 99/2081

Building Land Tanah Untuk Bangunan

591 N/A

Mukim KundangDaerah Gombak

PT 2106 77.00 Leasehold/Pajakan 99/2104

Agriculture LandTanah Pertanian

199 N/A

Mukim LabuDaerah Sepang

Lot 1384 – Lot 1465 & Lot 1466 – Lot 1468

3.50 Leasehold/Pajakan 99/2096

Commercial LandTanah Komersial

4,667 N/A

Mukim LabuDaerah Sepang

Lot 1490 2.15 Leasehold/Pajakan 99/2096

Building Land Tanah Untuk Bangunan

3,114 N/A

LISt OF GROup pROpERtIESSENARAI HARTANAH KUMPULAN

195

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

Mukim SerendahDaerah Hulu Selangor

PT 10450 (Part) 122.00 Leasehold/Pajakan 99/2096

Building Land Tanah Untuk Bangunan

16,785 N/A

Mukim Hulu YamDaerah Hulu Selangor

PT 2721 – PT 2723 302.49 Leasehold/Pajakan 99/2093

Agriculture LandTanah Pertanian

6,005 N/A

Mukim Hulu YamDaerah Hulu Selangor

PT 2727, PT 2728 33.68 Leasehold/Pajakan 99/2093

Building Land Tanah Untuk Bangunan

903 N/A

Mukim IjokDaerah Kuala Selangor

PT 2377, PT 2531 0.58 Leasehold/Pajakan 99/2095

Building Land Tanah Untuk Bangunan

405 N/A

Mukim Kuala SelangorDaerah Kuala Selangor

PT 620, PT 621, PT 624, PT 626

5.43 Leasehold/Pajakan 99/2098

Building Land Tanah Untuk Bangunan

1,062 N/A

Mukim KlangDaerah Klang

PT 51675, PT 51676, PT 51679, PT 52159, PT 52409, PT 52540, PT 52807, PT 52963, PT 53039, PT 53051, PT 53158PT 52162 – PT 52214PT 52226 – PT 52232PT 52233 – PT 52246PT 52306 – PT 52313PT 52330 – PT 52337PT 52805

46.48 Leasehold/Pajakan 99/2102

Industrial Land Building Land Tanah Untuk IndustriTanah Untuk Bangunan

30,765 N/A

Bandar Port DicksonDaerah Port Dickson

PN 2477/M2/2/148 & PN 2477/M1/1/8/89

0.05 99/2087 ApartmentApartmen

447 20

Mukim PlentongDaerah Johor Bahru

PT 171000 – PT 171002 332.69 Freehold/Pegangan Bebas

Agriculture LandTanah Pertanian

48,883 N/A

Mukim DengkilDaerah Sepang

PT 32546, PT 41836 100.00 Leasehold/Pajakan 99/2104

Agriculture LandTanah Pertanian

957 N/A

Mukim DengkilDaerah Sepang

PT 32611 – PT 32614 46.63 Leasehold/Pajakan 99/2104

Building Land Tanah Untuk Bangunan

446 N/A

Mukim Kuala KalumpangDaerah Hulu Selangor

PT 2687 (Part) 191.00 Leasehold/Pajakan 99/2107

Building LandTanah Untuk Bangunan

24,714 N/A

2. KUMPULAN HARTANAH SELANGOR BERHAD GROUP (CONT’D/SAMB.)

196

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

Phase 1ASection 8Pulau Indah Industrial ParkPulau Indah

PT 64352 HS(D)67630PT 64165 HS(D)67448

1.38 Leasehold/Pajakan 99/2097

Vacant Commercial Land For Menara Indah PointTanah Kosong Komersial Untuk Menara Indah Point

213 N/A

Phase 2CSection 4Pulau Indah Industrial ParkPulau Indah

PT 7937 HS(D)74076PT 7936 HS(D)74077

411.75 Leasehold/Pajakan 99/2097

Vacant Industrial Land For DevelopmentTanah Industri Kosong Untuk Pembangunan

82,625 N/A

Section 1Pulau Indah Industrial ParkPulau Indah

PT90870 HS(D)70913PT90871 HS(D)70914

35.70216.07

Leasehold/Pajakan 99/2097

Vacant Industrial Land For DevelopmentTanah Industri Kosong Untuk Pembangunan

33,983 N/A

Section 2Pulau Indah Industrial ParkPulau Indah

PN 7935 HS(D)74078PN7934 HS(D)74079

281.14295.51

Leasehold/Pajakan 99/2097

Vacant Industrial Land For DevelopmentTanah Industri Kosong Untuk Pembangunan

71,082 N/A

Section 3Pulau Indah Industrial ParkPulau Indah

PN 7931 Lot 74083 217.35 Leasehold/Pajakan 99/2097

Vacant Industrial Land For DevelopmentTanah Industri Kosong Untuk Pembangunan

27,349 N/A

Section 9Pulau Indah Industrial ParkPulau Indah

PN 7928 Lot 74086PN 7929 Lot 74085PN 7930 Lot 74084

32.6685.14105.77

Leasehold/Pajakan 99/2097

Vacant Industrial Land For DevelopmentTanah Industri Kosong Untuk Pembangunan

28,442 N/A

Section 11Pulau Indah Industrial ParkPulau Indah

PN7926 Lot 74087PN7925 Lot 74988

187.91233.02

Leasehold/Pajakan 99/2097

Vacant Land For Development (Residential) Tanah Kosong Untuk Pembangunan (Perumahan)

58,172 N/A

LISt OF GROup pROpERtIESSENARAI HARTANAH KUMPULAN

2. KUMPULAN HARTANAH SELANGOR BERHAD GROUP (CONT’D/SAMB.)

197

3. HYDROVEST SDN. BHD. GROUP

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

Sg BuluhDaerah Kuala Selangor

Lot PT 19975 3,000 sq. ft./kp 99/2091 Store/WarehouseStor/Gudang

312 18

Damansara IntanPetaling Jaya

Lot 827 1,130 sq. ft./kp FreeholdPegangan Bebas

OfficePejabat

230 10

Lot 836 1,249 sq. ft./kp FreeholdPegangan Bebas

OfficePejabat

242 7

4. TITISAN MODAL (M) SDN BHD GROUP

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

8822Tanjung TuanPort DicksonKuala Linggi

GM 0000180/LOT 001202

10,593 sq. ft./kp FreeholdPegangan Bebas

BungalowBanglo

1,023 23

5. CASH BAND (M) BERHAD GROUP

Location Lokasi

Title Hakmilik

Land Area Keluasan Tanah (Acres/Ekar)

Tenure/Lease expiryTempoh Pegangan/ Tamat Pegangan (Years/Tahun)

Existing Use Kegunaan Semasa

Net Book Value/ Land Cost as at 31/12/09 (RM’000)Nilai Buku Bersih/ Kos Tanah pada31/12/09 (RM’000)

Approximate Age of Building Usia Bangunan (Years/Tahun)

1702 Section 46 Bandar Kuala Lumpur

PN 2797 34,714 sq. ft./kp 99/2072 Hotel 51,512 36

Mukim Rawang Daerah Gombak

Lot 11, Lot 614 PT11444

194.65 Leasehold/Pajakan 99/2094

Golf Course & Club HousePadang Golf dan Rumah Kelab

46,510 16

Lot 1738 Seksyen 41 Bandar Kuala Lumpur

GRN 36218 1,806 square metres/meter

persegi

FreeholdPegangan Bebas

Hotel 28,933 13

CORpORAtE DIRECtORY DIREKTORI KORPORAT

198

REGISTERED AND BUSINESS ADDRESSES OF KUMPULAN PERANGSANG SELANGOR BERHAD AND SUBSIDIARY COMPANIESALAMAT BERDAFTAR DAN ALAMAT PERNIAGAAN KUMPULAN PERANGSANG SELANGOR BERHAD SERTA ANAK-ANAK SYARIKAT

Name of Company Registered Address Business AddressNama Syarikat Alamat Berdaftar Alamat Perniagaan

KUMPULAN PERANGSANG 16 Floor 16 & 17 FloorSELANGOR BERHAD Plaza Perangsang Plaza Perangsang(Company No./No. Syarikat 23737-K) Persiaran Perbandaran Persiaran Perbandaran 40000 Shah Alam 40000 Shah Alam Tel: 03-5510 3999 Tel: 03-5510 3999 Fax/Faks: 03-5510 9977 Fax/faks: 03-5510 9977

KUMPULAN HARTANAH Lot 1A, Level 1A Lot 1A, Level 1ASELANGOR BERHAD Plaza Perangsang Plaza Perangsang(Company No./No. Syarikat 559747-W) Persiaran Perbandaran Persiaran Perbandaran 40000 Shah Alam 40000 Shah Alam Tel: 03-5522 3888 Tel: 03-5522 3888 Fax/Faks: 03-5510 5188 Fax/Faks: 03-5510 5188 CASH BAND (M) BERHAD 17 Floor 17 Floor(Company No./No. Syarikat 735830-K) Plaza Perangsang Plaza Perangsang Persiaran Perbandaran Persiaran Perbandaran 40000 Shah Alam 40000 Shah Alam Tel: 03-5510 3999 Tel: 03-5510 3999 Fax/Faks: 03-5510 9977 Fax/Faks: 03-5510 9977

VIABLE CHIP (M) SDN BHD 17 Floor 17 Floor(Company No./No. Syarikat 720808-W) Plaza Perangsang Plaza Perangsang Persiaran Perbandaran Persiaran Perbandaran 40000 Shah Alam 40000 Shah Alam Tel: 03-5510 3999 Tel: 03-5510 3999 Fax/Faks: 03-5510 9977 Fax/Faks: 03-5510 9977

HYDROVEST SDN BHD 16 Floor 15 Floor(Company No./No. Syarikat 482724-D) Plaza Perangsang Plaza Perangsang Persiaran Perbandaran Persiaran Perbandaran 40000 Shah Alam 40000 Shah Alam Tel: 03-5510 3999 Tel: 03-5510 3999 Fax/Faks: 03-5510 9977 Fax/Faks: 03-5512 2973

TITISAN MODAL (M) SDN BHD 17 Floor 17 Floor(Company No./No. Syarikat 700156-U) Plaza Perangsang Plaza Perangsang Persiaran Perbandaran Persiaran Perbandaran 40000 Shah Alam 40000 Shah Alam Tel: 03-5510 3999 Tel: 03-5510 3999 Fax/Faks: 03-5510 9977 Fax/Faks: 03-5510 9977

KUMPULAN PERANGSANG SELANGOR BERHAD (23737-K) (Incorporated in Malaysia/Diperbadankan di Malaysia)

Proxy Form for the 33rd Annual General MeetingBorang Proksi untuk Mesyuarat Agung Tahunan ke 33

No. of Ordinary Shares Held/Jumlah Saham Biasa Dipegang

I/We/Saya/Kami FULL NAME IN CAPITAL LETTERS/NAMA PENUH DENGAN HURUF BESAR

of/yang beralamat di ADDRESS/ALAMAT

being a member/members of Kumpulan Perangsang Selangor Berhad, hereby appoint the Chairman of the meeting/ sebagai ahl i /ahl i -ahl i Kumpulan Perangsang Selangor Berhad, dengan ini melantik Pengerusi Mesyuarat

or/atau FULL NAME/NAMA PENUH

of/yang beralamat di ADDRESS/ALAMAT

or failing whom/atau sebagai penggantinya FULL NAME/NAMA PENUH

of/yang beralamat di ADDRESS/ALAMAT

as my/our proxy to attend and vote for me/us and on my/our behalf at the Thirty Third Annual General Meeting of the Company to be held at Kayangan Ballroom, Quality Hotel Shah Alam, Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan on Thursday, 17 June 2010 at 2.30 p.m. and at any adjournment thereof/sebagai proksi saya/kami untuk menghadiri dan mengundi bagi pihak saya/kami di Mesyuarat Agung Tahunan Ke Tiga Puluh Tiga yang akan diadakan di Bilik Kayangan, Quality Hotel Shah Alam, Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan, pada hari Khamis, 17 Jun 2010, jam 2.30 petang dan pada sebarang penangguhannya.

My/Our proxy is to vote as indicated below:/Proksi saya/kami akan mengundi sepertimana yang ditandakan di bawah:

Resolution/Resolusi 1 2 3 4 5 6 7 8For/MenyokongAgainst/Menentang

(Please indicate with an “X” in the spaces provided how you wish your vote to be casted. If you do not do so, the proxy will vote or abstain voting at his discretion)/(Sila tanda dengan “X” pada tempat yang disediakan cara tuan ingin mengundi, jika tidak, proksi akan mengundi atau tidak mengundi mengikut budibicaranya)

Signature/Tandatangan Dated this/Tarikh day of/bulan 2010.

NOTES/NOTA-NOTA:1. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the

Company. Proksi tidak semestinya pemegang saham Syarikat dan peruntukan Seksyen 149(1)(b) Akta Syarikat, 1965 tidak diguna pakai.

2. A member who is an authorised nominee may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. Pemegang saham selaku pelantik yang sah di mana memegang saham biasa Syarikat boleh melantik sekurang-kurangnya seorang (1) proksi.

3. A member other than an authorised nominee shall be entitled to appoint not more than two (2) proxies to attend and vote at the same meeting. Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportions of his/her holdings to be represented by each proxy. Pemegang saham selain dari pelantik yang sah berhak melantik tidak lebih dari dua (2) orang proksi menghadiri dan mengundi di mesyuarat yang sama. Di mana pemegang saham melantik lebih dari seorang (1) proksi, perlantikan tersebut dianggap tidak sah kecuali secara spesifik beliau menjelaskan pembahagian pegangan saham tersebut.

4. If the appointer is a corporation, the proxy form must be executed under its Common Seal or under the hand of an officer or attorney duly authorised.Sekiranya pelantik adalah sebuah syarikat, borang proksi mestilah dimeterai di bawah mohor rasmi atau ditandatangani oleh pegawai atau peguam yang diberi kuasa.

5. If the name is not inserted in the space for the name of your proxy, the Chairman of the meeting will act as your proxy. Jika tiada nama terdapat di dalam ruang bagi proksi anda, Pengerusi mesyuarat akan bertindak sebagai proksi anda.

6. The proxy form must be deposited at the Registrar’s Office of Symphony Share Registrars Sdn Bhd, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan, not less than forty-eight (48) hours before the time of holding the AGM or any adjournment thereof, or in the case of a poll, not less than twenty-four (24) hours before the time appointed for the taking of the poll. Borang proksi mestilah dihantar ke Pejabat Pendaftar, Symphony Share Registrars Sdn Bhd, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan, tidak kurang dari empat puluh lapan (48) jam sebelum Mesyuarat ditetapkan atau pada sebarang penangguhannya, atau dalam hal pengundian, tidak kurang dari dua puluh empat (24) jam sebelum masa yang ditetapkan untuk mengundi.

pROxY FORmBORANG PROKSI

fold here along dotted line/lipat di sini

fold here along dotted line/lipat di sini

affix Stamphere

SYMPHONY SHARE REGISTRARS SDN BHDSymphony House

Pusat Dagangan Dana 1Jalan PJU 1A/46

47301 Petaling JayaSelangor Darul Ehsan

Tel: 03-7841 8000 Fax: 03-7841 8152