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1ANNUAL REPORT 2010

2 NOTICE OF THE TWENTY-FIFTH ANNUAL GENERAL MEETING

4 STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING

6 CORPORATE INFORMATION

8 EXECUTIVE CHAIRMAN’S STATEMENT

14 DIRECTORS’ PROFILE

16 STATEMENT ON CORPORATE GOVERNANCE

20 STATEMENT ON INTERNAL CONTROL

22 AUDIT COMMITTEE’S REPORT

RESOLUTION 1

RESOLUTION 2

RESOLUTION 3

RESOLUTION 4

RESOLUTION 5

RESOLUTION 6

RESOLUTION 7

RESOLUTION 8

2EKOVEST BERHAD (132493-D)

NOTICE OF THE TWENTY-FIFTHANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT the Twenty-Fifth Annual General Meetingof the Company will be held at Grand Seasons Hotel, 72 Jalan Pahang, 53000Kuala Lumpur on 20 December 2010 at 11.00 a.m. for the purpose of transactingthe following businesses:-

AGENDA

1. To receive and adopt the Audited Financial Statements for the financial year ended 30JUNE 2010 together with the Reports of the Directors and the Auditors thereon.

2. To re-elect En. Mohd Salleh Bin Othman who retires by rotation in accordance with Article82 of the Company’s Articles of Association

3. To re-elect Mr. Khoo Nang Seng @ Khoo Nam Seng who retires in accordance with Section129 (6) of the Companies Act, 1965.

4. To approve the payment of Directors’ Fees for the financial year ended 30 JUNE 2010.

5. To declare a First and Final Dividend of 5 sen per ordinary share less income tax in respectof the financial year ended 30 JUNE 2010.

6. To re-appoint Messrs. Mazars as Auditors and to authorise the Directors to fix their remuneration.

7. As Special Business, to consider and if thought fit, to pass the following resolutions withor without modifications:-

SPECIAL RESOLUTION 1PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION

“THAT the proposed alterations, modifications, amendments, and/or deletions to the Articles of Association of the Company as stated in Appendix 1 of the Annual Report beand hereby approved and adopted.”

ORDINARY RESOLUTION 1AUTHORITY PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965

“THAT subject always to the Companies Act, 1965, the Articles of Association of the Company and the approvals of the Bursa Malaysia Securities Berhad and other relevantgovernmental / regulatory authorities, where such approvals are necessary, the Directorsbe and are hereby authorised, pursuant to Section 132D of the Companies Act, 1965, toissue shares in the Company from time to time and upon such terms and conditions andfor such purposes as the Directors may deem fit, provided that the aggregate number ofshares to be issued pursuant to this resolution does not exceed 10% of the issued sharecapital of the Company for the time being, and that such authority shall continue in forceuntil the conclusion of the next Annual General Meeting”.

ORDINARY RESOLUTION 2 PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE AND ADDITIONAL MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

“THAT authority be and is hereby given pursuant to paragraph 10.09 of the Main MarketListing Requirements of the Bursa Malaysia Securities Berhad for the Company and itssubsidiaries to enter into recurrent related party transactions of a revenue or trading nature

RESOLUTION 9

3ANNUAL REPORT 2010

NOTICE OF THE TWENTY-FIFTH ANNUAL GENERAL MEETING (CONT’D)

as stated in paragraph 3.4 of the Circular to Shareholders dated 26 November 2010 withthe related parties listed in paragraph 3.3 of the Circular which are necessary for the day-to-day operations, in the ordinary course of business, made on at arm’s length basisand on normal commercial terms which are not more favourable than those normally available to the public and are not to the detriment of the minority shareholders;

AND THAT the authority conferred by this Mandate shall commence immediately uponthe passing of this resolution and is subject to annual renewal. In this respect the authorityshall only continue to be in force until:-

a) the conclusion of the next Annual General Meeting of the Company at which timethe authority will lapse, unless the authority is renewed by a resolution passedat that Annual General Meeting;

b) the expiration of the period within which the next Annual General Meeting afterthe date it is required to be held pursuant to Section 143(1) of the CompaniesAct, 1965 (but not extending to such extensions as may be allowed pursuant toSection 143(2) of the Companies Act, 1965); or

c) revoke or varied by resolution passed by the shareholders in general meeting,

whichever is the earlier”.

8. To transact any other matter for which due notices have been given in accordance withthe Company’s Articles of Association and the Companies Act, 1965.

NOTICE IS ALSO HEREBY GIVEN THAT subject to the approval of the shareholders at the Twenty-Fifth AnnualGeneral Meeting, the First and Final dividend of 5 sen per ordinary share less income tax will be paid on 18 March2011 to members whose names appear in the Record of Depositors on 28 February 2011.

FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify for entitlement only in respect of:

i. Shares transferred into the Depositor’s Securities Account before 4.00 p.m. on 28 February 2011 in respect ofordinary transfers; and

ii. Shares bought on the Bursa Malaysia on a cum entitlement basis according to the Rules of the Bursa MalaysiaSecurities Berhad.

By Order of the Board

Lim Thiam Wah, ACISCompany SecretaryKuala Lumpur26 November 2010


NOTICE OF THE TWENTY-FIFTH ANNUAL GENERAL MEETING (CONT’D)

Notes:

1. A member shall be entitled to appoint not more than two (2) proxies to attend and vote at the meeting provided that where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by eachproxy.

2. 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 notapply.

3. If the appointor is a corporation, the proxy form must be executed under its common seal or under the hand of an officer or attorney duly authorised.

4. To be valid, the proxy form, duly completed must be deposited at the Registered Office not less than forty eight (48) hours before the timefor holding the meeting or any adjournment thereof.

5. Explanatory notes on Special Business:-

i. The Proposed Resolution 7 if passed, will amend Articles of Association of the Company in line with the implementation of the Electronic Dividend Payment (“eDividend”) in accordance with Main Market Listing Requirements of Bursa Malaysia Securities Berhadand to promote greater efficiency of the dividend payment system.

ii. The Proposed Ordinary Resolution 8 if passed, will empower the Directors of the Company to issue and allot shares in the Companyup to an aggregate amount not exceeding 10% of the issued share capital of the Company for the time being for such purposes asthey consider would be in the interest of the Company. This authority unless revoked or varied at a general meeting will expire at thenext Annual General Meeting. As at the date of this notice, no new shares in the Company were issued pursuant to the mandategranted to the Directors at the last Annual General Meeting held on 21 December 2009 and which will lapse at the conclusion of theTwenty-Fifth Annual General Meeting. The general mandate will provide flexibility to the Company for any possible fund raisingactivities including but not limited for further placing of shares for purpose of funding future investment(s), working capital and/or acquisitions.

iii. The Proposed Ordinary Resolution 9, if passed, will authorise the Group to enter into recurrent related party transactions as specifiedin the Circular to Shareholders dated 26 November 2010, provided that such transactions are of a revenue or trading nature which arenecessary for the Group’s day-to-day operations and are in the ordinary course of business made at on arm’s length basis and onnormal commercial terms which are not more favourable to the related parties than those generally available to the public and are notdetrimental to the minority shareholders of the Company. This authority, unless revoked or varied at a general meeting, will expire atthe next Annual General Meeting of the Company.

STATEMENT ACCOMPANYINGNOTICE OF ANNUAL GENERAL MEETING

PARTICULARS OF DIRECTORS WHO ARE STANDING FOR ELECTION AT THE TWENTY-FIFTH ANNUAL GENERAL MEETING

There is no Director standing for election at the Twenty-Fifth Annual General Meeting.


CORPORATEINFORMATION

BOARD OF DIRECTORS

Y. Bhg. Dato’ Lim Kang Hoo

Khoo Nang Seng @ Khoo Nam Seng

Cho Joy Leong @ Cho Yok Lon

Mohd Salleh Bin Othman

Kang Hui Ling

SECRETARY

Lim Thiam Wah,

REGISTERED OFFICE

33-35, Ground Floor, Wisma EkovestJalan Desa Gombak 6Taman Sri SetapakOff Jalan Gombak53000 Kuala LumpurTel : 03-40215948Fax : 03-40214027

PRINCIPAL PLACE OF BUSINESS

33-35, Ground Floor, Wisma EkovestJalan Desa Gombak 6, Taman Sri SetapakOff Jalan Gombak, 53000 Kuala LumpurTel : 03-40215948 Fax : 03-40215943

7ANNUAL REPORT 2010

CORPORATE INFORMATION (CONT’D)

REGISTRARS

Sectrars Services Sdn BhdNo. 28-1, Jalan Tun Sambanthan 3Brickfields50470 Kuala LumpurTel : 03-22746133Fax : 03-22741016

DOMICILE

Malaysia

AUDITORS

MazarsChartered AccountantsWisma Selangor Dredging7th Floor, South Block142-A Jalan Ampang50450 Kuala LumpurTel : 03-21615222Fax : 03-21613909

LEGAL FORM AND PLACE OF INCORPORATION

A public listed company incorporatedin Malaysia under Companies Act 1965and limited by shares

PRINCIPAL BANKERS

AmBank BerhadHong Leong Bank BerhadHSBC Bank Malaysia BerhadMalayan Banking BerhadRHB Bank BerhadUnited Overseas Bank (Malaysia) Berhad

LISTING STATUS

Listed on Bursa Malaysia Main Market


EXECUTIVE CHAIRMAN’S STATEMENT

Overview

We are pleased to report that all works for the DUKE highway has been successfully completed.

The Universiti Malaysia Sabah (UMS) Phase 2B and 2 contracts for Universiti TunHussein Onn Malaysia (UTHM) projects as mentioned in the last Annual Reportare progressing as scheduled and the Company is in the midst of finalizing anothercontract with UTHM.

Negotiation with various government and semi government organization as wellas tendering for contracts within the Iskandar Region is ongoing, The managementis confident that with our long term involvement in the Iskandar Region, certaincontracts which we have been tendered would bear fruit in the not too distant future.

Notwithstanding the fact that most of the works awarded are in the Iskandar Region in recent years as the region is a fast growing economic corridor inMalaysia, the company will continue to try to secure work in the Klang Valley region taking note of the “Greater KL” being identified as the vital pillar of the National Key Economic Areas in the Budget for 2011.

In the recent Economic Transformation Program Open Day the Government hasidentified the development of the “Greater KL” area as a cornerstone forMalaysia’s future economic growth and this would undoubtedly trigger the roll outof a significant amount of basic infrastructure work in the Klang Valley area whichwould ultimately benefit contractors like us. The company is confident that withits track record, it will be able to secure construction works during the implementation of the “Greater KL” development program.

The company is also optimistic that the property market will continue to be robustas there is a genuine demand for landed residential homes and the scarcity ofprime landbank in the Klang Valley and other growth corridor as promoted by thegovernment.

Financial Results and Prospect

For the financial year ended 30 June 2010, the Group recorded a profit after tax ofRM8.908 million from a turnover of RM217.733 million as compared to a profitafter tax of RM6.822 million from a turnover of RM277.759 million from the previous year.

Correspondingly, the Company recorded a profit after tax of RM1.889 million froma turnover of RM64.357 million as compared to a profit after tax of RM6.549 million from a turnover of RM57.027 million from the previous year.

The major contributions for the profit this year were due to higher profit marginfrom the existing contracts and the recognition of additional profit arising from the finalization of certain contracts.

Barring unforeseen circumstance, the Board expects the current year’s performance to remain satisfactory. Notwithstanding such confidence, efforts arestill being made to secure more construction contracts to further enhance theGroup’s activities.

Dividend

In appreciation for the continuing support by all our shareholders, the Board of Directors had on 27 August 2010 recommended, subject to the approval of theshareholders being obtained a first and final dividend of 5 sen less 25% incometax per ordinary share of RM1.00 each.

Dear valued shareholders,

On behalf of the Board ofEkovest Berhad, I ampleased to present thisAnnual Report and Audited Financial Statement of the Groupand of the Company forthe financial year ended 30 June 2010.

9ANNUAL REPORT 2010

CHAIRMAN’S STATEMENT (CONT’D)

Corporate Development

Subsequent to the financial year ended 30 June 2010, the Company has successfully completed the subscription of RM35 million in nominal value of redeemable secured junior bonds (Junior Bonds) issuedby Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd(Kesturi). The tenure for the Junior Bonds is 19.5 yearsand bearing a coupon rate of 11.5% per annum.

The Company has also accepted Kesturi’s request for theProposed Extension on the tenure of redeemable preference share series A (RPS A) of RM1.00 each inKesturi. The expiry date of the Kesturi RPS A has beenextended for an additional period of 4 years from 19 September 2026 to 19 September 2030.

Industry Overview and Prospect

The economic prospect of Malaysia remains optimistic.The Ministry of Finance has raised its 2010 growth assessment given the stronger growth in 1H10 eventhough there are signs of cooling off in 2H10. It hasupped this year’s GDP growth estimate from 6.0% to7.0%. The Ministry of Finance also expects a sustainedrecovery with real GDP rising 5.0% – 6.0% with the support from continuing expansion of domestic demandand moderate export growth.

The 2011 Budget provides a roadramp for transformationof the economy to sustain growth beyond 2011. Overall,the budget agenda focuses on a range of measures andincentives directed at economic restructuring, revitalizingprivate investment, enhancing productivity and sparkinginnovation as well as accelerating human capital development. It also puts the private sector firmly backon the driver’s seat given the fiscal constraints to pushing growth through higher public expenditure.

The construction industry is estimated to sustain agrowth rate of 4.4% in 2011, supported by the acceleration of ongoing projects such as KLIA 2, the second Penang Bridge and other major developmentprojects. What is exciting for the company is that theGovernment has allocated RM850m for infrastructuresupport to accelerate corridors and regional development and Iskandar Malaysia is one of the mainbeneficiaries. Again, the company hopes that with its existing long term involvement in the Iskandar Region,its prospect of securing jobs in this region will bebrighter.

One of the key drivers for development identified by theGovernment is home ownership and it has provided financial assistance to achieve such objective. Development projects under the growth corridors aswell as new projects under the 10MP will also provide a boost to the construction industries. With the Government not taking any cooling measures for property, but rather implementing measures to promotehousing, the company is hopeful of expanding into this

area either directly or by securing construction job in relation thereto.

With the above economic outlook in mind, barring unforeseen circumstance, the management is of theview that by concentrating in securing more constructionworks, which is the core business of the company, thecompany will be able to sustain its current operation aswell as grow steadily.

Corporate Governance

The Board continues to recognize the importance andadvantage of having good corporate governance. To thebenefit of all directors and in compliance with the requirements for continuing education program, variouscourses have been organized at our corporate head quarters for all directors and members of the senior management team to participate. We also encouragemanagement and staff to take part in relevant coursesfor their own growth and to this effect, we have requested external consultants to organize courses for the working group so that they have a better understanding of the current development of corporategovernment regime.

Appreciation

On behalf of the Board of Directors, I wish to expressmy appreciation and thanks to all our fellow directors andmembers of the senior management team who havebeen providing their invaluable services, assistance andadvice to the Group.

Further, I would also like to thank all our clients, shareholders, bankers, business associates, various government and local authorities for their continuing support and confidence in our group.

Finally, I wish to express my personal gratitude to all staffand management of the Group for their dedication andcommitment.

Dato’ Lim Kang HooExecutive Chairman26 November 2010


PENYATA PENGERUSI EKSEKUTIF

Tinjauan

Dengan sukacitanya kami ingin melaporkan bahawa semua kerja-kerja untukLebuhraya DUKE telah diselesaikan.

Sepertimana yang dimaklumkan dalam laporan kami tahun lepas, kerja-kerja untukkontrak tambahan berkenaan dengan projek-projek yang dikenali sebagai Fasa 2B,Universiti Malaysia Sabah (UMS) dan pakej tambahan untuk kerja-kerja pembangunan Universiti Tun Hussein Onn Malaysia (UTHM) sedang dilaksanakan.Adalah dimaklumkan bahawa kami sedang berunding dengan pihak yang berkenaan untuk menyelesaikan satu lagi kontrak di bawah UTHM.

Perundingan dengan pihak kerajaan dan quasi kerajaan untuk kerja-kerja di bawahkawasan Iskandar Malaysia adalah sedang dijalankan. Kami yakin bahawa denganpenglibatan kami yang lama di kawasan ini, kami akan dapat awad bagi sebahagiankerja-kerja yang kami telah membuat tawaran tidak lama lagi.

Walaupun kebanyakan kerja yang syarikat kami jalankan sekarang adalah dikawasan Iskandar Malaysia oleh kerana ianya adalah suata kawasan pembangunanyang amat diambilberat oleh pihak kerajaan, akan tetapi, kami kenali bahawa,“Greater KL“ telah ditetapkan sebagai fokus utama dalam Kawasan PembangunanEkonomi Terutama dalam Bajet 2011.

Dalam Hari Terbuka untuk Program Transformasi Ekonomi yang diadakan tidak lamadahulu, pihak kerajaan telah menetapkan “Greater KL” sebagai batu tapak untukpembangunan ekonomi Malaysia yang akan datang. Dengan ini, adalah nyata bahawa akan terdapat kerja-kerja pembangunan infrastruktor di kawasan ini dansyarikat kontraktor seperti syarikat kami akan turut beruntung. Syarikat kamiberkeyakinan bahawa kami akan dapat kerja-kerja pembangunan apabila projek“Greater KL” dilaksanakan nanti.

Syarikat kami juga berharapan bahawa pasaran hartanah akan terus berkembangoleh kerana terdapat pembeli-pembeli rumah-rumah bertanah dan tanah-tanah dikawasan Lebuh Klang dan kawasan-kawasan ekonomi adalah semakin kurang.

Keputusan Kewangan dan Prospek

Bagi tahun kewangan berakhir 30 Jun 2010, Kumpulan Ekovest mencatatkan keuntungan selepas cukai sebanyak RM8.908 juta dari hasil perolehan sebanyakRM217.733 juta berbanding dengan keuntungan selepas cukai sebanyak RM6.822juta dari hasil perolehan sebanyak RM277.759 juta untuk tahun lepas.

Pada masa yang sama, syarikat kami mencatatkan keuntungan selepas cukai sebanyak RM1.889 juta dari hasil perolehan sebanyak RM64.357 juta berbandingdengan keuntungan selepas cukai sebanyak RM6.549 juta dari hasil perolehan sebanyak RM57.027 juta dari tahun lepas.

Keuntungan tahun ini adalah lebih daripada tahun lepas oleh kerana marjin keuntungan untuk kontrak dalam tangan adalah lebih tinggi dan keuntungan untukprojek yang telah diselesaikan telah diambil kira.

Kecuali dalam keadaan luar biasa, Lembaga Pengarah percaya bahawa keadaankewangan syarikat kami adalah baik. Akan tetapi, kami akan terus cuba mendapatkerja-kerja lain.

Kepada para pemegangsaham,Bagi pihak LembagaPengarah, saya dengan sukacitanyamembentangkan Laporan Tahunan danPenyata Kewangan yangtelah diauditkan untukKumpulan Ekovest danSyarikat Ekovest Berhadbagi tahun kewanganbertarikh 30 Jun 2010.

11ANNUAL REPORT 2010

PENYATA PENGERUSI EKSEKUTIF (CONT’D)

Dividen

Sebagai balasan kepada sokongan daripada para pemegang saham kami, pada 27 Ogos 2010 pihak Lembaga Pengarah mengesyorkan tertakluk kepada kelulusan pemegang-pemegang saham yang terlebihdahulu diperolehi, pembayaran dividen yang pertama danterakhir sebanyak 5 sen tolak cukai pendapatan sebanyak25% bagi setiap sahama biasa bernilai RM1.00 seunit.

Pembangunan Korporat

Selepas tahun kewangan 30 Jun 2010, syarikat kamitelah menyelesaikan langganan untuk redeemable secured junior bonds bagi harga nominal sebanyakRM35 juta dari Konsortium Lebuhraya Utara Timur (KL)Sdn Bhd (Kesturi). Tempoh bond ini adalah untuk 19.5tahun dan setiap tahun ianya akan memberi syarikat kamifaedah sebanyak 11.5% setiap tahun.

Syarikat kami juga bersetuju dengan Kesturi dalam memanjangkan tempoh “Redeemable PreferenceShares Series A (RPS A)” yang berharga RM1.00 setiapRPS dalam syarikat ini untuk selama 4 tahun dari 19 September 2026. Maka tempoh RPS A akan luput pada19 September 2030.

Tinjauan Industri dan Prospek

Prospek ekonomi Malaysia adalah menggalakkan. Kementerian Kewangan telah menaikkan dari 6% ke 7%penbangunan ekonomi 2010 walaupun pembangunanuntuk 2H10 adalah lebih lemah berbanding dengan pembangunan 1H10. GDP benar telah dinaikkan dari 5%ke 6% disokong oleh pasaran dalam negeri serta expotyang berkembang dengan sederhana.

Bajet 2011 telah memberikan arah untuk transformasiekonomi. Bajet ini telah memberikan tumpuan kepada transformasi ekonomi, membaharui pelaboran sektor swasta, membangunkan produktiviti dan memberikan galakan kepada inovasi serta mencepatkan pembungunan modal sumber manusia. Pihak swastaadalah pemain yang terutama oleh kerana terdapatsekatan dalam perbelanjaan kerajaan.

Industri Pembinaan akan dapat pembangunan sebanyak4.4% tahun 2011 disokong oleh projek-projek sepertiKLIA 2 serta Jambatan Kedua di Pulau Pinang. Syarikatkami adalah amat gembira dengan berita bahawa kerajaan akan memberikan wang sebanyak RM850 jutasebagai modal untuk kerja-kerja infrastruktur di kawasanpembangunan dan Iskandar Malaysia adalah salah satukawasan yang akan beruntung. Sekali lagi, syarikat kamiberharapan bahawa dengan penglibatan kami di kawasanini, peluang kami akan adalah lebih besar.

Salah satu kunci untuk pembangunan yang telah ditetapkan oleh kerajaan ialah pemilikan rumah dan kerajaan telah memberi pembantuan kewangan untukobjektif ini, projek pembangunan di kawasan ekonomidan projek baru di bawah 10MP akan memberikangalakan kepada perindustrian kami, kami harap bahawakami dapat kerja kerja tambahan secara langsung atautidak langsung dalam perkembangan ini.

Piawaian Urustadbir Korporat

Lembaga Pengarah terus mengambil berat tentang kepentingan dan kegunaan kawalan urustadbir korporatyang baik. Untuk kebaikan semua pengarah serta bagi tujuan mengikut peruntukan program pendidikanberterusan, kami telah mengadakan pengajian di ibu pejabat kami untuk semua pengarah dan pengurusankanan. Syarikat kami juga menggalakkan para pengarahdan pengurus untuk mengambil bahagian dalam kursusyang lain untuk menambahkan pengetahuan merekadalan bidang urustadbir korporat.

Penghargaan

Bagi pihak Lembaga Pengarah, saya ingin mengambil kesempatan ini untuk mengucapkan ribuan terima kasihkepada semua pelanggan, pemegang-pemegang saham,bank-bank, rakan-rakan perniagaan, pihak kerajaan danpihak berkusasa tempatan di atas sokongan berterusandan kepercayaan yang diberikan kepada KumpulanEkovest.

Akhirnya, saya ingin mengucapkan ribuan terima kasihkepada pihak pengurusan dan semua kakitangan di atasdedikasi dan komitmen berterusan yang diberikankepada Kumpulan Ekovest.

Dato’ Lim Kang HooPengerusi Eksekutif 26 November 2010


DIRECTORS’ PROFILE

Y.BHG. DATO’ LIM KANG HOO, aged 55, Malaysian, is the co-founder and Executive Chairman of Ekovest Berhadand has been on the Board of Directors of Ekovest Berhad since 30 March 1988. Y.Bhg. Dato’ Lim is a businessmanwith over 30 years of experience in the construction industry. He started his involvement in the construction industrysoon after completing his secondary education, assisting the family construction business. Later he teamed upwith Mr. Khoo Nang Seng @ Khoo Nam Seng to form a civil engineering and construction partnership which grewto become what Ekovest Berhad is today. At present, he is an Executive Director of Knusford Berhad, Non-ExecutiveDirector of PLS Plantations Berhad, both are public companies listed on the Bursa Malaysia and also a director ofseveral other private limited companies. His vast experience in the construction industry had been instrumental tothe growth and development of the Ekovest Berhad Group.

MR. KHOO NANG SENG @ KHOO NAM SENG, aged 70, Malaysian, is the co-founder of Ekovest Berhad and hasbeen an Executive Director of Ekovest Berhad since its incorporation on 2 January 1985. He was trained in Technical College, Kuala Lumpur in civil engineering. Upon graduation, he joined and served the Jabatan Kerja Raya for 6 years. In 1970, he ventured into the construction business on his own. Subsequently, in 1972, he teamed up withY.Bhg. Dato’ Lim Kang Hoo to form a partnership which resulted in the Ekovest Berhad of today. At present, he isan Executive Director of Knusford Berhad, a public company listed on the Main Market of Bursa Malaysia and alsoa director of several other private limited companies. Together with Y.Bhg. Dato’ Lim Kang Hoo, he has contributedsignificantly to the growth of the Ekovest Berhad Group.

MR. CHO JOY LEONG @ CHO YOK LON, aged 67, Malaysian, was appointed as the Executive Director of EkovestBerhad on 2 May 1998 and he was redesignated as Non-Executive Director with effect from 1 January 2006. Hegraduated with a Bachelor of Engineering (Hons) Degree from the Universiti Malaya in 1968. He is a Registered Professional Engineer in Malaysia and a member of the Institution of Engineers, Malaysia. Upon graduation, hejoined FELDA as an Engineer and served them until April 1998. During his stay with FELDA, he held various positions, including that of Senior Regional Engineer, Chief Engineer and Director of the Engineering Department.Prior to his appointment as Executive Director of Ekovest Berhad, he was the General Manager (Technical) of FeldaEngineering Services Sdn Bhd and the General Manager of Felda Construction Sdn Bhd, a construction companywithin the Felda Group of Companies.

EN. MOHD SALLEH BIN OTHMAN, aged 58, Malaysian, was appointed to the Board of Ekovest Berhad on 21 November 1996. He graduated with a B.Sc. (Hons) Degree in Housing, Building and Planning from Universiti Sains Malaysia. After graduation, he joined Petroliam Nasional Berhad (“Petronas”) where he served in various departments and divisions for a span of approximately 15 years. Some of the senior position he has serviced includes Management Executive of its Property Department from 1978 to 1981, Head of Building Section of itsSpecial Projects Department from 1982 to 1984, Deputy Manager from its Property Development Department from1985 to 1987, Manager of its Property Development Department from 1988 to 1989 and finally being promoted toSenior Manager of the same department in 1990. During his employment in Petronas, he acquired skills and invaluable experience in property development, property management, property maintenance and also project management. He left Petronas in 1993 to join Kuala Lumpur City Centre Bhd as the Deputy General Manager of itsReal Estate Division. He was later promoted to Project Director of the Project Management Division in 1995. He resigned from Kuala Lumpur City Centre in 1995. Thereafter, he joined Ekovest Berhad and resigned from EkovestBerhad, a year later.

MS. KANG HUI LING, aged 38, Malaysian, was appointed to the Board of Directors of Ekovest Berhad on 28 February 2005. She holds a Bachelor of Accounting (Hons) Degree from University of Malaya in 1997. She is a member of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants. Sinceher graduation, she acquired 4 years of audit experience in one of the big five audit firm. As audit senior associate,she also gained exposure in the field of operational audit and financial due diligence. Subsequently she joined amedium size multinational consultancy firm as the Finance and Admin Manager where she was responsible for establishing and implementing the company’s accounting and operating policies and procedures. She is presentlya partner of a professional firm registered with the Malaysian Institute of Accountants. She is also an independentnon-executive director of Knusford Berhad and PLS Plantations Berhad.


DIRECTORS’ PROFILE (CONT’D)

Conflict of interestThere is no conflict of interest between the Directors and the Group except for the recurrent related party transactions where the Directors have interest, as disclosed in the Note 33 of the Audited Financial Statements.

Conviction for offencesNone of the Directors have been convicted for any offences (except traffic offences) within the last 10 years.

Family RelationshipNo Director has family relationship with other Directors or major shareholders.

Board of Directors’ MeetingsA total of 5 Board of Directors’ Meetings were held during the financial year ended 30 June 2010.

Attendance at the Board of Directors’ Meetings

No. ofBoard of Directors’ Meetings Attended

1. Y.Bhg. Dato’ Lim Kang Hoo 4/52. Mr. Khoo Nang Seng @ Khoo Nam Seng 5/53. Mr. Cho Joy Leong @ Cho Yok Lon 5/54. En. Mohd Salleh Bin Othman 5/55. Ms. Kang Hui Ling 5/5

Directors’ Remuneration

a. Aggregate Remuneration

Non-Executive ExecutiveDirector Director Total %(RM) (RM) (RM)

(a) Fees - 40,000 40,000 2.37(b) Salaries 1,440,000 - 1,440,000 85.39(c) Bonuses - - - -(d) EPF 172,800 - 172,800 10.25(e) Commission - - - -(f) Estimated value of benefits-in –kind 31,000 2,500 33,500 1.99(g) Compensation for loss of office - - - -

TOTAL (RM) 1,643,800 42,500 1,686,300 100.00

b. Category Remuneration

Non-Executive Executive

Band (RM) Category Director Director Total

1 – 50,000 - 3 3500,001 – 550,000 1 - 11,050,001 – 1,100,000 1 - 1

TOTAL 2 3 5


STATEMENT ON CORPORATE GOVERNANCE

The Board of Directors of Ekovest Berhad (“Ekovest” or “Company”) recognises the importance of corporate governance. To this end, the Board is pleased to report the manner in which the Company has applied the principlesof the corporate governance and the extent of its compliance with the best practices set out in the Malaysian Codeon Corporate Governance (“the Code”) during the financial year ended 30 June 2010.

DIRECTORS

Responsibilities

The Board of Directors acknowledges its responsibilities for directing the Company and ensuring it is properly managed and continuously improves in its performance. In addition, the Board acknowledges its responsibilities forthe board conduct, strategic plan, risk management, succession planning, investor relation programme and systemof internal control of the Group.

Composition and Board Balance

During the financial year, one of the Board members, Dato’ Haji Abdullah Bakri Bin A. Wahab resigned on 29 June2010. At present, the Board has 5 members, comprising 2 Executive Directors, 2 Independent Non-Executive Directors and 1 Non-Independent Non-Executive Director. The current composition of the independent and non-executive directors of the Company met the requirement of Bursa Malaysia Securities Berhad that at least 1/3 ofthe Board of Directors should be of independent directors. The profiles of the members of the Board, as set out onPages 14 to 15 of this Annual Report, demonstrates the complement of skills and experiences that the Directorsare able to bring to bear on issues of oversight, strategy, performance, control, resource allocation and integrity.

The Executive Directors are responsible for the Group business operations while the Non-Executive and IndependentDirectors play a pivotal role by bringing objective judgment and views into the Board’s deliberation and decisionmaking processes. The roles of the Executive Chairman and Executive Director are assumed by different directors.Ms Kang Hui Ling is identified as the Senior Independent Non-Executive Directors providing another channel ofcommunication for the shareholders.

Meeting

The Directors meet regularly and all the proceedings at the Board meetings are properly minuted and signed by theChairman. While, the Board has not defined a formal schedule of matters reserved for its decision , it is the practiceof the Group for the Board to decide on matters relating to the acquisition and disposal of major capital expenditure,investment in capital projects and corporate exercise.

During the financial year ended 30 June 2010, 5 Board meetings were held. The record of attendance of the Directorsfor the meetings held during the financial year is set out on page 15.

Matters requiring Board decisions during the intervals between the Board meetings, are circulated and approvedthrough circular resolutions.

Supply of Information

Prior to the Board meetings, the Directors receive agenda and Board papers containing information relevant to thebusiness of the meeting, including information on major financial, operational and corporate matters as well as activities and performance of the Company. These documents are issued to the Directors in advance to enable theDirectors to obtain further explanation, where necessary, before the meeting.

All Directors have unrestricted access to the advice and services of the Company Secretary, who is responsible forensuring that board procedures are followed. In addition, the Directors may obtain independent professional adviceat the Company’s expense, where necessary, in furtherance of their duties.


STATEMENT ON CORPORATE GOVERNANCE (CONT’D)

DIRECTORS (CONT’D)

Appointment and Re-election to the Board

Nomination Committee

Pursuant to the Best Practices of the Code, the Board has set up a Nomination Committee comprising 2 IndependentNon-Executive Directors. The members of the Nomination Committee are:

En Mohd Salleh Bin Othman(Chairman, Independent Non-Executive Director)

Ms Kang Hui Ling(Independent Non-Executive Director)

During the financial year, the Nomination Committee conducted a meeting on 26 October 2009.

Primarily, the responsibilities of the Nomination Committee are to :-

- recommend to the Board, candidates for directorship on the Board as well as membership of all other BoardCommittees;

- review the size of the Board with a view to determine the number of directors on the Board in relation to its effectiveness; and

- review the required mix of skills, experience and other qualities of the directors.

All Directors shall abstain when matters affecting their own interests are discussed.

In accordance with the Company’s Articles of Association, every Director is required to retire by rotation at leastonce every three years at the Annual General Meeting (“AGM”). The Directors to retire in each year are the Directorswho have been longest in office since their appointment or re-appointment. A retiring Director is eligible for re-appointment.

Directors’ Training

During the year, the Company organised a training course entitled ‘High Performance Control System’ for all the Directors and senior management. The Company will continue to arrange further development and training programmes for the Directors. Apart from this, the Directors individually continue to upgrade themselves on thenew developments in the business environment by attending other courses, trade fairs, seminars and conferences.



DIRECTORS’ REMUNERATION

Remuneration Committee

Pursuant to the Best Practices of the Code, the Board has set up a Remuneration Committee comprising 2 Independent Non-Executive Directors and 1 Non-Independent Non-Executive Director. Following are the membersof the Committee :


Ms Kang Hui Ling(Independent Non-Executive Director)

Mr Cho Joy Leong @ Cho Yok Lon(Non-Independent Non-Executive Director)

The Remuneration Committee is responsible to recommend to the Board, the remuneration, fees and other remuneration packages payable to Executive and Non-Executive Directors. The remuneration for the Executive Directors is aligned to individual and corporate performance while for the Non-Executive Directors, the fees are setbased on the responsibilities shouldered by the respective Directors. All directors’ remunerations are determinedby the Board as a whole. Directors do not participate in determining their own remuneration package.

During the financial year, the Remuneration Committee conducted a meeting on 26 October 2009.

The remuneration of Directors, in aggregation and analysed into bands of RM50,000 are disclosed on page 15 ofthis Annual Report. The Board views that the transparency in respect of the Directors’ remuneration has been reasonably dealt with. The fees payable to Directors are recommended by the Board and subject to the approval ofthe shareholders at the AGM.

SHAREHOLDERS

The Board recognises the need and importance of communication with shareholders and investors on all materialbusiness matters of the Group. The results of Ekovest Group are published quarterly via the website of BursaMalaysia Securities Berhad at http://announcements.bursamalaysia.com. The Company also maintains its websiteat www.ekovest.com.my containing the essential corporate information about the Group for the interest of the general public. It is believed that clear and consistent communication with investors promotes better appreciationof the Company’s business and activities, and allows the Company’s business and prospects to be evaluated fairly.

The Board encourages shareholders to attend its Annual General Meeting as this is the principal forum of dialogueand interaction with shareholders. At each Annual General Meeting, the Directors provide adequate time to attendto questions and comments of shareholders. Notices of each meeting are issued on a timely manner (at least 21days before the meeting) to all shareholders.



ACCOUNTABILITY AND AUDIT

Financial Reporting

The Board provides and presents a balanced and understandable assessment of the Group’s financial performanceand its prospects. Primarily the financial and business performance information is reported in the Executive Chairman’s Statement in the Annual Report, the audited financial statements and quarterly announcement of resultsto shareholders.

Directors’ Responsibility Statement

The Directors are required by the Companies Act, 1965 to prepare the financial statements so as to give a true andfair view of the state of affairs of the Company and the Group at the financial year end and of the results and cashflows of the Company and the Group for the financial year.

The Directors made judgments and estimates that are prudent and reasonable and applied applicable accountingstandards consistently in the preparation of the financial statements.

The Directors are responsible for keeping proper accounting records that disclose accurate the financial position ofthe Company and the Group and comply with the Companies Act, 1965.

In addition, the Directors are also responsible for taking reasonable steps to safeguard the assets of the Group andto detect and prevent any fraud and irregularities.

Internal Control

The Board acknowledges its responsibility for maintaining a sound system of internal control, which provides reasonable assurance on effective and efficient operations and ensure compliance with laws and regulations.

The Company’s Statement on Internal Control is set out on page 20 of the Annual Report.

Relationship with the Auditors

The Audit Committee maintains formal and transparent relationship with the Company’s auditors. The details of theAudit Committee’s function, role and responsibilities vis-a-vis the internal and external auditors are described in theAudit Committee Report set out on Pages 22 to 24 of this Annual Report.

Compliance with the Best Practices

The Board believes that all material aspects of the best practices set out in Part 2 of the Revised Code have beencomplied with during the financial year.


STATEMENT ONINTERNAL CONTROL

1. Introduction

The Board of Ekovest Berhad is pleased to present the following statement which outlines the state of internalcontrol of the Group for the year under review, in accordance with Paragraph 15.26 (b) of the Main MarketListing Requirements of Bursa Malaysia Securities Berhad and in accordance with the “Statement on InternalControl: Guidance for Directors of Public Listed Companies” issued by The Institute of Internal Auditors.

2. Board’s Responsibility

The Board acknowledges the importance of the systems of internal control and affirms that it is their responsibility to maintain a sound system of internal control to safeguard the shareholders’ investment andGroup’s assets. In this respect the Board undertakes to identify the principal risks, implement appropriate systems to manage risks and review the adequacy and integrity of the Group’s systems of internal control.

3. Risk Management

The Group has an on-going process for identifying, evaluating and managing significant risks facing the organization. Currently, the risk management function is driven by all Executive Directors and assisted by themanagement. This function is embedded and carried out as part of the Group’s operating and business management processes. External and relevant professionals would be drawn on to assist and provide advicesto the management team when necessary.

4. Review Mechanism

Independent reviews of internal control are essential in order to provide an objective assurance to the Board.Currently, this review mechanism is overseeing by the Audit Committee. The presence of the internal auditfunction supports this review mechanism and assists the Audit Committee in conducting their review more effectively. Additionally, the Audit Committee also reviews the financial information and reports produced bythe management. This financial information and reports cover quarterly financial results, annual report and audited financial statements. In this case, the Audit Committee in consultation with the management deliberatesthe integrity of the information and date before recommending to the Board for presenting to the shareholdersand public investors.

5. Other Key Elements of Internal Control

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

- Organisational structure outlining the lines of responsibilities and hierarchical structure for planning, executing, controlling and monitoring the business operations;

- Authority and approval procedures facilitating the management review;

- Budgeting process and variances performance reporting against budget/forecast are monitored by the Executive Directors;

- Written policies and procedures on key processes of the Group; and

- Monthly management reporting procedures for monitoring and tracking of performance of the Group.

6. Assurance and Limitation

In making this statement, the Board had considered the Bursa’s Guidance on Statement on Internal Control forall subsidiaries. The Board views that the existing level of system of internal control is reasonable to achievethe Group’s business objectives. Nonetheless, the Board recognizes that the systems of internal control shouldbe continuously improved in line with the evolving business development. It should also be noted that risk management systems and systems of internal control are only designed to manage rather than eliminate risksof failure to achieve business objectives. Therefore, these systems can only provide reasonable but not absoluteassurance against material misstatements, frauds and losses. During the current financial year, there were nomajor internal control weaknesses which led to material losses, contingencies or uncertainties that would require disclosure in this Annual Report.


STATEMENT ON INTERNAL CONTROL (CONT’D)

7. Review of Statement on Internal Control by External Auditors

The External Auditors had reviewed this Statement on Internal Control for inclusion in this Annual Report forthe year ended 30 June 2010 and have reported to your Board that nothing has come to their attention thatcauses them to believe that this Statement is inconsistent with their understanding of the process that theBoard has adopted in the review of the adequacy and integrity of the systems of internal control of the Group.


AUDIT COMMITTEE’S REPORT

The Audit Committee comprises the following members:


Mr Cho Joy Leong @ Cho Yok Lon(Non-Independent Non-Executive Director)

Ms Kang Hui Ling (Independent Non-Executive Director)

SecretaryThe Company Secretary shall be the Secretary of the Audit Committee.

A total of 5 Audit Committee meetings were held during the financial year ended 30 June 2010. All current membershad attended these meetings.

TERMS OF REFERENCE

Composition

The members of Audit Committee shall be appointed by the Board from amongst the Directors excluding AlternateDirectors and shall consist of not less than 3 members and all the members shall be non executive directors withthe majority of whom shall be Independent Non-Executive Directors. At least 1 member of the Audit Committee:

1) must be a member of Malaysian Institute of Accountants; or

2) if he/she is not a member of the Malaysian Institute of Accountants, he must have at least 3 years’ working experience and :

a) he/she must have passed the examinations specified in Part 1 of the 1st Schedule of the Accountants Act 1967; or

b) he/she must be a member of one of the associations of accountants specified in Part II of the 1st Scheduleof the Accountants Act 1967; or

c) he/she must be a person approved under Practice Note No. 13/2002 on the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

The Chairman of Audit Committee must be an Independent Non-Executive Director and shall be elected fromamongst the Audit Committee members.

If a member resigns, dies or for any other reason ceases to be a member of the Audit Committee with theresult that the number of members is reduced below 3, the Board shall, within 3 months of that event, appointsuch number of new members as may be required to make up the shortfall.

The term of office and performance of Audit Committee members shall be reviewed by the Board once every3 years.

Quorum

The quorum of Audit Committee meeting shall be 2 members of whom the majority of members present shall beIndependent Non-Executive Directors.


AUDIT COMMITTEE’S REPORT (CONT’D)

TERMS OF REFERENCE (CONT’D)

Authority

The Audit Committee shall:

1) have authority to investigate any matter within its terms of reference;

2) have the resources required to perform its duties;

3) have full and unrestricted access to any information pertaining to the Group;

4) have direct communication channels with the external auditors and person(s) carrying out the internal auditfunction or activity;

5) be able to obtain independent and professional advice; and

6) be able to convene meetings with the external auditors independently, whenever deemed necessary.

Meeting

The Audit Committee is to meet at least 4 times a year .Other Board members, Financial Controller, Internal Auditors,a representative of the External Auditors and other authorised officers may attend the meetings upon the invitationof Audit Committee.

The Chairman of Audit Committee reports the proceedings of meeting to the members of the Board at the Boardmeeting.

Scope and Function

The Audit Committee shall:

1) review the following and report the same to the Board:

a) with the external auditors, the audit plan;b) with the external auditors, their evaluation of the system of internal control;c) with the external auditors, their audit report on the financial statements;d) the adequacy of assistance given by the employees of the Group to external auditors;e) the adequacy of the scope, function, competency and resources of the internal audit function and the

necessary authority required to carry out its work;f) the internal audit programmes, processes, or investigations undertaken and the appropriate actions taken

on the recommendations of the internal audit function;g) the quarterly results and year end financial statements, prior to the approval by the Board, focusing

particularly on:i) changes in or implementation of major accounting policy;ii) significant and unusual events; andiii) compliance with accounting standard and other legal requirements;

h) any related party transaction and conflict of interest that may arise within the Group, including any transaction, procedure or course of conduct that may raise questions of management integrity;

i) any resignation from the external auditors of the Group; andj) whether there is reason, supported by evidence, to believe that the external auditors of the Group are not

suitable for reappointment; and

2) recommend the nomination of external auditors.


AUDIT COMMITTEE’S REPORT (CONT’D)

SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE

During the financial year ended 30 June 2010, the activities of the Audit Committee covered, amongst others, thefollowing:

1) reviewed the audit planning memorandum with External Auditors;

2) reviewed the audited financial statements of the Group for the financial year ended 30 June 2009 with the external auditors;

3) reviewed the unaudited quarterly financial results of the Group prior to the approval of the Board;

4) reviewed the proposed shareholders’ circular on Recurrent Related Party Transactions (“RRPT”);

5) reviewed the status of RRPT on quarterly basis;

6) reviewed the Internal Audit Reports and discussion on the audit findings, recommendations and management’sresponse arising from the internal audits.

7) reviewed the assistance and cooperation given by the employees to the External Auditors in respect of theaudit for the financial year ended 30 June 2009;

8) met with the External Auditors twice during the financial year without the presence of any executive Boardmembers present; and

9) reviewed disclosure statements on Corporate Governance, Audit Committee Report and the Statement of Internal Control for the financial year ended 30 June 2009 and recommended their adoption to the Board.

TRAINING

All committee members have attended a training during the financial year. The details of the training attended isprovided on page 17 of the Corporate Governance Statement.

INTERNAL AUDIT FUNCTION

The Main Market Listing Requirements provide that a listed company must establish an internal audit function whichis independent of the activities it audits and reports directly to the Audit Committee.

The Group had established an internal audit function. This function is outsourced to an internal audit consulting firm.The internal auditors report directly to the Audit Committee. Functionally, the internal auditors are responsible toconduct reviews on the systems of internal control; report the state of the systems of internal control; and providerecommendations for improvement.

During the financial year, the Internal Auditors conducted the internal control reviews on the operating functionsand procedures and recommended action plans for management improvement. The final audit reports containingaudit findings and recommendations together with management’s responses thereto were circulated to all membersof the Audit Committee. Areas of improvement identified were communicated to the management for furtheraction. All internal audit reports were reviewed by the Audit Committee and discussed at Audit Committee Meetings.Follow-up reviews would subsequently be performed to ascertain the extent of implementation of the recommendedcorrective action for improvement.

The costs incurred during the current financial year for the internal audit function of the Group is RM47,807.


26 DIRECTORS' RESPONSIBILITYSTATEMENT

26 CORPORATE SOCIALRESPONSIBILITY

27 FINANCIAL HIGHLIGHTS

28 DIRECTORS' REPORT

32 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OFEKOVEST BERHAD

34 BALANCE SHEETS

36 INCOME STATEMENTS

37 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

38 STATEMENT OF CHANGES IN EQUITY

39 CASH FLOW STATEMENTS

41 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

79 STATEMENT BY DIRECTORS

79 STATUTORY DECLARATION

80 MATERIAL LITIGATION AND OTHER INFORMATION OF EKOVEST BERHAD AND ITS SUBSIDIARIES

83 ANALYSIS OF SHAREHOLDINGS

86 PARTICULARS OF PROPERTIES

90 APPENDIX 1

FORM OF PROXY


DIRECTORS’ RESPONSIBILITY STATEMENTFOR THE YEAR ENDED 30 JUNE 2010

Directors’ Responsibility Statement pursuant to Paragraph 15.26 (a) of Chapter 15 of the Listing Requirements of Bursa Malaysia Securities Berhad.

The Directors are required by law to prepare financial statements for each financial year which give a true and fairview of the state of affairs of the Group and of the Company as at the end of financial year and of the results andcash flows of the Group and of the Company for the financial year.

The Directors are satisfied that in preparing the financial statements of the Group for the financial year ended 30June 2010, the Group has used the appropriate accounting policies and applied them consistently and prudently.The Directors also consider that all relevant approved accounting standards have been followed in the preparationof these financial statements.

The Directors are responsible for ensuring that the Group and Company maintain accounting records which disclosewith reasonable accuracy the financial position of the Group and Company, which enable them to ensure that thefinancial statements comply with the provisions of the Companies Act, 1965. The Directors have general responsibilities for taking such steps that are reasonably available to them to safeguard the assets of the Group andCompany and to prevent and detect fraud and other irregularities.

The Group recognizes its social obligation to the society and is striving for a balanced approach in fulfilling its keyobjectives and the expectations of stakeholders. The Group has expanded its support to various charitable causesduring the financial year. The Group is committed to carry on its efforts further to increase its scope of corporate social responsibility.

CORPORATE SOCIAL RESPONSIBILITY


FINANCIALHIGHLIGHTS

Group Group Group Group Group 2006 2007 2008 2009 2010 RM’000 RM’000 RM’000 RM’000 RM’000 Gross Revenue 229,590 356,601 441,992 277,759 217,733 Profit Before Tax 13,717 25,660 25,838 10,694 19,567 Taxation (5,548) (8,237) (9,081) (3,872) (10,659) Profit After Tax 8,169 17,423 16,757 6,822 8,908 Minority Interests (2) (82) (33) 4 1,191 Profit Attributable To Shareholders 8,167 17,341 16,724 6,826 10,099 Share Capital 134,417 138,627 141,388 141,701 142,889 Reserves 139,303 152,476 163,969 165,481 170,262 Shareholders Funds 273,720 291,103 305,357 307,182 313,151 Represented By: Property, Plant and Equipment 50,465 40,864 62,960 74,008 73,384 Prepaid Lease Payments - 13,364 14,528 14,328 14,128 Investment Properties - 20,645 20,645 20,428 28,419

Land Held for Property Development - - 4,961 17,607 18,790 Development Rights 4,961 4,961 - - - Investments In Associates 1,034 1,007 682 702 702

Investments In Jointly Controlled Entity 444 421 - - -

Other Investments 28,577 128,577 164,779 164,779 164,500

Deferred Tax Assets - 27 39 - -

Current Assets 331,352 253,868 266,202 245,645 203,896 Current Liabilities (134,673) (157,515) (218,573) (219,380) (182,765) Non-current Liabilities (1,776) (8,370) (10,471) (9,744) (7,903) Minority Interests (6,664) (6,746) (395) (1,191) - 273,720 291,103 305,357 307,182 313,151 Net Tangible Assets Per Share (RM) 2.00 2.06 2.16 2.17 2.19 Gross Earnings Per Share (RM) 0.11 0.19 0.18 0.08 0.14 Net Earnings Per Share (RM) 0.07 0.13 0.12 0.05 0.06


DIRECTORS’REPORTFOR THE YEAR ENDED 30 JUNE 2010

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of theCompany for the financial year ended 30 June 2010.

PRINCIPAL ACTIVITIES

The principal activities of the Company are investment holding and civil engineering and building works.

The principal activities of the subsidiaries are indicated in Note 7 to the financial statements.

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

RESULTS Group Company RM’000 RM’000

Net profit for the year 8,908 1,889

Attributable to: Shareholders of the Company 10,099 1,889 Minority interests (1,191) - 8,908 1,889

DIVIDENDS

Since the end of the previous financial year the Company paid a first and final dividend of 5% less 25% tax amounting to RM5,317,819 in respect of the financial year ended 30 June 2009 as disclosed in the Directors reportof that year.

The Directors now recommend the payment of a first and final dividend of 5% less 25% tax amounting toRM5,358,319 for the financial year ended 30 June 2010.

RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year except as disclosed inthe statements of changes in equity set on pages 37 to 38.

ISSUE OF SHARES AND DEBENTURES

During the financial year, the Company issued 1,187,600 new ordinary shares of RM1.00 each at par for cash, arisingfrom the exercise of 1,187,600 warrants of RM1.00 each.

The newly issued shares rank pari passu in all respects with the existing shares of the Company. There were noother issues of shares during the financial year.

No debentures were issued by the Company during the financial year.


DIRECTORS’ REPORTFOR THE YEAR ENDED 30 JUNE 2010 (CONT’D)

DIRECTORS

The Directors in office since the date of the last report are:

Y. Bhg Dato’ Lim Kang HooMr Khoo Nang Seng @ Khoo Nam SengMr Cho Joy Leong @ Cho Yok LonMs Kang Hui LingEn Mohd Salleh Bin OthmanY. Bhg Dato’ Haji Abdullah Bakri Bin A. Wahab (Resigned on 29 June 2010)

In accordance with the Company’s Articles of Association, Mr Khoo Nang Seng @ Khoo Nam Seng and En MohdSalleh Bin Othman retire by rotation at the forthcoming annual general meeting and, being eligible, offer themselvesfor re-election.

DIRECTORS’ INTERESTS IN SHARES

According to the register of Directors’ shareholdings required to be kept under Section 134 of the Companies Act1965, none of the Directors held any shares or had any interests in shares in the Company and its related corporations during the financial year except as follows:

––– Number of ordinary shares of RM1 each ––– At At 1-7-2009 Bought Sold 30-6-2010

Y.Bhg Dato’ Lim Kang Hoo - direct interest 716,000 5,186,000 - 5,902,000 - deemed interest 29,325,500 - - 29,325,500

Mr Khoo Nang Seng @ Khoo Nam Seng - direct interest 10,482,000 - - 10,482,000 - deemed interest 2,730,000 - - 2,730,000

Mr Cho Joy Leong @ Cho Yok Lon - direct interest 184,500 61,500 - 246,000

–––––––––––––––––––– Number of warrants –––––––––––––––––––– At At 1-7-2009 Bought Exercised Sold 30-6-2010

Y.Bhg Dato’ Lim Kang Hoo - direct interest 150,000 - - - 150,000 - deemed interest 8,062,500 - - - 8,062,500

Mr Khoo Nang Seng @ Khoo Nam Seng - direct interest 4,494,000 - - - 4,494,000 - deemed interest 910,000 - - - 910,000

Mr Cho Joy Leong @ Cho Yok Lon - direct interest 61,500 - (61,500) - -

By virtue of his interests in shares in the Company, Y. Bhg Dato’ Lim Kang Hoo is deemed to be interested in sharesin all the subsidiaries to the extent the Company has an interest.



DIRECTORS’ BENEFITS

Since the end of the previous financial year, no Director of the Company has received or become entitled to receiveany benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivableby the directors shown in the financial statements or the fixed salary of a full-time employee of the Company) byreason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest except for anybenefit which may be deemed to have arisen from the transactions disclosed in Note 33(a) to the financial statements which were carried out in the ordinary course of business.

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 the action taken in relation to the writing off of bad debts and the making of allowance fordoubtful debts and satisfied themselves that there are no bad debts to be written off and that adequate allowance had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise in the ordinary course of business theirvalue as shown in the accounting records of the Group and of the Company had been written down to anamount which they might be expected so to realise.

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

(i) which would render it necessary to write off any bad debts and the amount of the allowance for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent, or

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

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

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

(i) any charge on the assets of the Company or its subsidiaries 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 Company or its subsidiaries which has arisen since the end of the financial year.

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

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

(f) In the opinion of the Directors: (i) the results of the operations of the Group and of the Company for the financial year were not substantially affected by any item, transaction or event of a material and unusual nature; and

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



AUDITORS

The auditors, Mazars, Chartered Accountants, have expressed their willingness to continue in office.

Signed on behald of the Directors in accordancewith a Directors’ resolution dated

25 October 2010

Y. BHG DATO’ LIM KANG HOO CHO JOY LEONG @ CHO YOK LON Director Director


INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF EKOVEST BERHAD (INCORPORATED IN MALAYSIA)

REPORT ON THE FINANCIAL STATEMENTS

We have audited the financial statements of Ekovest Berhad, which comprise the balance sheets as at 30 June2010 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 accountingpolicies and other explanatory notes, as set out on pages 41 to 78.

Directors’ Responsibility for the Financial Statements

The Directors of the Company are responsible for the preparation and fair presentation of these financial statementsin accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentationof 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 ouraudit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply withethical 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 financialstatements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, weconsider internal control relevant to the Company’s preparation and fair presentation of the financial statements inorder to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia so as to give a true and fair view of the financial position of theGroup and of the Company as of 30 June 2010 and of their financial performance and cash flows for the year thenended.

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 Companyand its subsidiaries have been properly kept in accordance with the provisions of the Act.

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

(c) Our audit reports on the financial statements of the subsidiaries did not contain any qualification or any adversecomment material to the consolidated financial statements and did not include any adverse comment requiredto be made under Section 174(3) of the Act.


INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF EKOVEST BERHAD(INCORPORATED IN MALAYSIA) (CONT’D)

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 forthe content of this report.

MAZARS YAP CHING SHIN No. AF: 1954 No. 2022/03/12 (J)Chartered Accountants Partner

Kuala Lumpur

25 October 2010

Group Company Note 2010 2009 2010 2009 RM’000 RM’000 RM’000 RM’000

NON-CURRENT ASSETS

Property, plant and equipment 3 73,384 74,008 7,030 7,179 Prepaid lease payments 4 14,128 14,328 1,307 1,326 Investment properties 5 28,419 20,428 16,040 15,335 Land held for property development 6 18,790 17,607 - - Investments in subsidiaries 7 - - 18,146 19,946 Investments in associates 8 702 702 600 600 Investment in jointly controlled entity 9 - - - - Other investments 10 164,500 164,779 - - Amount owing by subsidiaries 11 - - 124,918 165,369 Deferred tax asset 12 - - - -

299,923 291,852 168,041 209,755

CURRENT ASSETS

Gross amount due from customers 13 3,188 11,238 - - Trade and other receivables 14 124,751 142,201 15,121 17,526 Amount owing by subsidiaries 11 - - 103,749 79,702 Current tax assets 848 2,403 820 807 Fixed deposits 15 65,606 51,693 - - Cash and bank balances 9,503 38,110 4,005 4,358

203,896 245,645 123,695 102,393

TOTAL ASSETS 503,819 537,497 291,736 312,148


BALANCESHEETSFOR THE YEAR ENDED 30 JUNE 2010


BALANCE SHEETSFOR THE YEAR ENDED 30 JUNE 2010 (CONT’D)


EQUITYShare capital 16 142,889 141,701 142,889 141,701

Reserves 17 170,262 165,481 104,846 108,275

Equity attributable to shareholders of the Company 313,151 307,182 247,735 249,976 Minority interests - 1,191 - -

TOTAL EQUITY 313,151 308,373 247,735 249,976

NON-CURRENT LIABILITIES

Hire purchase liabilities 18 1,619 2,286 1,159 1,398 Bank term loans 19 5,933 7,290 - - Deferred tax liabilities 20 351 168 288 141

7,903 9,744 1,447 1,539

CURRENT LIABILITIES

Gross amount due to customers 13 67,331 63,699 2,995 2,413 Trade and other payables 21 66,921 74,095 10,565 10,006 Amount owing to subsidiaries 11 - - 3,427 9,339 Amount owing to associates 22 722 734 722 734 Hire purchase liabilities 18 1,315 1,297 845 664 Bank borrowings 23 42,229 79,489 24,000 37,477 Current tax liabilities 4,247 66 - -

182,765 219,380 42,554 60,633

TOTAL LIABILITIES 190,668 229,124 44,001 62,172

TOTAL EQUITY AND LIABILITIES 503,819 537,497 291,736 312,148

Notes to and forming part of the financial statements are set out on pages 41 to 78Auditors’ Report - Pages 32 and 33


INCOMESTATEMENTSFOR THE YEAR ENDED 30 JUNE 2010


Revenue 24 217,733 277,759 64,357 57,027Cost of sales 25 (186,353) (253,184) (56,670) (53,321)

Gross profit 31,380 24,575 7,687 3,706Other operating income 10,308 4,615 5,100 14,395Administrative and general expenses (16,068) (10,980) (6,026) (4,464)Other operating expenses (2,560) (1,893) (2,550) (2,106)

Profit from operations 26 23,060 16,317 4,211 11,531Finance costs 27 (3,492) (5,622) (908) (2,221)Share of results - associates (1) (1) - -

Profit before tax 19,567 10,694 3,303 9,310Tax expense 28 (10,659) (3,872) (1,414) (2,761)

Net profit for the year 8,908 6,822 1,889 6,549

Attributable to: Shareholders of the Company 10,099 6,826 1,889 6,549 Minority interests (1,191) (4) - -

Net profit for the year 8,908 6,822 1,889 6,549

Earnings per share - Basic 29 7.07 sen 4.82 sen

- Diluted 6.55 sen 4.60 sen Net dividend per share 30 3.75 sen 3.75 sen 3.75 sen 3.75 sen



CONSOLIDATED STATEMENTOF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2010

––––––––

Attributable to equity holders of the Compan

y –––––––––

A

sset

Share Share revaluation U

nap

propriated

M

inority

cap

ital premium reserve profit Total interests Total

RM’000

RM’000

RM’000

RM’000

RM’000

RM’000

R

M’000

At

1 Ju

ly 2

008

1

41,3

88

46,

978

502

1

16,4

89

305,

357

395

30

5,75

2

Issu

e of

sha

re c

apita

l

- e

xerc

ise

of w

arra

nts

3

13

-

-

-

313

-

313

Rea

lisat

ion

of r

eval

uatio

n su

rplu

s on

am

ortis

atio

n of

pro

pert

ies

-

-

(5

2)

52

-

-

-

Net

gai

n/(lo

ss) r

ecog

nise

d di

rect

ly in

equ

ity

-

-

(5

2)

52

-

-

-

Net

pro

fit fo

r th

e ye

ar

-

-

-

6,82

6

6,8

26

(4

)

6,8

22

Tota

l rec

ogni

sed

inco

me

and

expe

nses

for

the

year

-

-

(5

2)

6,

878

6

,826

(4)

6

,822

A

cqui

sitio

n of

add

ition

al s

hare

s in

sub

sidi

arie

s

-

-

-

-

-

8

00

800

Div

iden

d pa

id (N

ote

30)

-

-

-

(5,

314)

(5

,314

)

-

(5

,314

)

At

30 J

une

2009

141

,701

4

6,97

8

4

50

118

,053

3

07,1

82

1

,191

30

8,37

3

A

t 1

July

200

9

141

,701

4

6,97

8

4

50

118

,053

3

07,1

82

1

,191

30

8,37

3

Issu

e of

sha

re c

apita

l

- e

xerc

ise

of w

arra

nts

1,1

88

-

-

-

1,1

88

-

1,1

88

Rea

lisat

ion

of r

eval

uatio

n su

rplu

s on

am

ortis

atio

n of

pro

pert

ies

-

-

(5

2)

52

-

-

-

Net

gai

n/(lo

ss) r

ecog

nise

d di

rect

ly in

equ

ity

-

-

(5

2)

52

-

-

-

Net

pro

fit fo

r th

e ye

ar

-

-

-

1

0,09

9

10,0

99

(1,

191)

8

,908

Tota

l rec

ogni

sed

inco

me

and

expe

nses

for

the

year

-

-

(5

2)

10,

151

10

,099

(

1,19

1)

8,

908

Div

iden

d pa

id (N

ote

30)

-

-

-

(5,

318)

(

5,31

8)

-

(5,3

18)

At

30 J

une

2010

14

2,88

9

46,9

78

398

122

,886

31

3,15

1

-

313

,151

Not

es t

o an

d fo

rmin

g pa

rt o

f th

e fin

anci

al s

tate

men

ts a

re s

et o

ut o

n pa

ges

41 t

o 78

Aud

itors

’ Rep

ort

- Pag

es 3

2 an

d 33


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2010

Asset Share Share revaluation Unappropriated capital premium reserve profit Total RM’000 RM’000 RM’000 RM’000 RM’000 At 1 July 2008 141,388 46,978 502 59,560 248,428

Issue of share capital - exercise of warrants 313 - - - 313

Realisation of revaluation surplus on amortisation of properties - - (52) 52 -

Net gain/(loss) recognised directly in equity - - (52) 52 -

Net profit for the year - - - 6,549 6,549

Total recognised income and expenses for the year - - (52) 6,601 6,549

Dividend paid (Note 30) - - - (5,314) (5,314)

At 30 June 2009 141,701 46,978 450 60,847 249,976

At 1 July 2009 141,701 46,978 450 60,847 249,976

Issue of share capital - exercise of warrants 1,188 - - - 1,188

Realisation of revaluation surplus on amortisation of properties - - (52) 52 -

Net gain/(loss) recognised directly in equity - - (52) 52 -

Net profit for the year - - - 1,889 1,889

Total recognised income and expenses for the year - - (52) 1,941 1,889

Dividend paid (Note 30) - - - (5,318) (5,318)

At 30 June 2010 142,889 46,978 398 57,470 247,735



CASH FLOW STATEMENTSFOR THE YEAR ENDED 30 JUNE 2010

Group Company 2010 2009 2010 2009 RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax 19,567 10,694 3,303 9,310

Adjustments for:

Bad and doubtful debts 85 464 - 25Amortisation of prepaid lease payments 200 200 19 19Depreciation 1,528 949 1,020 457Impairment of investment in a subsidiary and jointly controlled entity - - 1 ,800 1,000Gain on disposal of property, plant and equipment (1,035) (236) (784) (160)Gain on disposal of investment properties (9) (10) - -Gain on disposal of other investments (3,113) - - -(Gain)/Loss on disposal and liquidation of an associate - (21) - 49(Gain)/Loss on fair value adjustments on investment property (891) 120 (705) -Property, plant and equipment written off - 1 - 1Loss retained in associates and jointly controlled entity - 1 - -Tax penalty 1,476 - - -Dividend income - (98) - (10,404)Interest income (694) (1,100) (3,059) (3,476)Interest expense 3,430 5,552 908 2,221

Hire purchase term charges 118 198 113 119

Operating profit/(loss) before working capital changes 20,662 16,714 2,615 (839)

Changes in receivables 25,415 15,738 2,405 7,791 Changes in payables (3,542) (8,562) 1,141 (1,058)

Cash generated from operations 42,535 23,890 6,161 5,894

Interest received 694 1,100 3,059 - Interest paid (3,430) (5,552) (908) (2,221) Tax (paid)/refunded (net) (6,216) (6,405) (1,280) 1,325

Net cash from operating activities 33,583 13,033 7,032 4,998


CASH FLOW STATEMENTSFOR THE YEAR ENDED 30 JUNE 2010 (CONT’D)


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (Note 34) (270) (10,429) (169) (193)Acquisition of land held for property development (854) (12,490) - -Development cost incurred on land held for property development (329) (156) - -Purchase of additional shares in subsidiaries - - - (1,200)Purchase of investment properties (7,202) - - -Proceeds from disposal of property, plant and equipment 1,162 236 791 160Proceeds from disposal of other investments 3,392 - - -Proceeds from disposal of investment properties 111 107 - -(Placement)/Withdrawal of fixed deposits (13,913) 29,550 - -Advances to subsidiaries - - 16,404 (2,675)Dividends received - 72 - 15,203Repayment from associates - 73 - 73

Net cash (used in)/from investing activities (17,903) 6,963 17,026 11,368

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of bank borrowings (1,532) (1,277) (165) (334)(Repayment to)/Advance from subsidiaries - - (5,912) 482Repayment to associate (12) - (12) -Payment of hire purchase liabilities (1,528) (1,601) (880) (847)Issue of shares to minority shareholders - 800 - -Issue of shares to shareholders of the Company 1,188 313 1,188 313Dividend paid (5,318) (5,314) (5,318) (5,314)

Net cash used in financing activities (7,202) (7,079) (11,099) (5,700)

NET CHANGES IN CASH AND CASH EQUIVALENTS 8,478 12,917 12,959 10,666

CASH AND CASH EQUIVALENTS BROUGHT FORWARD (16,127) (29,044) (8,954) (19,620)

CASH AND CASH EQUIVALENTS CARRIED FORWARD (7,649) (16,127) 4,005 (8,954)

Represented by:

CASH AND BANK BALANCES 9,503 38,110 4,005 4,358BANK OVERDRAFTS (17,152) (54,237) - (13,312)

(7,649) (16,127) 4,005 (8,954)



NOTES TO THEFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2010

1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The financial statements comply with applicable approved Financial Reporting Standards (“FRS”) issuedby the Malaysian Accounting Standards Board and with the provisions of the Companies Act 1965.

The measurement bases applied in the preparation of the financial statements include costs, recoverablevalue, realisable value and fair value. Accounting estimates are used in measuring these values.

The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Group’s and the Company’s functional currency. Unless otherwise indicated, the amounts in these financial statementshave been rounded to the nearest thousand.

(b) New/revised FRSs, Issues Committee Interpretation (“IC Interpretations”) and Amendments to FRSsthat are not yet effective

Effective for financial periods beginning on orNew FRSs, Amendments to FRSs and Interpretations after

FRS 1 First-time Adoption of Financial 1 July 2010 Reporting Standards (revised)FRS 3 Business Combinations (revised) 1 July 2010FRS 7 Financial Instruments : Disclosures 1 January 2010FRS 101 Presentation of Financial Statements (revised) 1 January 2010FRS 123 Borrowing Costs (revised) 1 January 2010FRS 127 Consolidated and Separate Financial Statements (revised) 1 July 2010FRS 139 Financial Instruments: Recognition and Measurement 1 January 2010 Improvement to FRSs (2009) 1 January 2010 Improvement to FRSs (2010) 1 July 2010IC Interpretation 10 Interim Financial Reporting and Impairment 1 January 2010IC Interpretation 11 FRS 2 - Group and Treasury Share Transactions 1 January 2010IC Interpretation 15 Agreements For The Construction of Real Estate 1 January 2010

Consequential amendments were also made to various FRSs as a result of these new/revised FRSs and ICInterpretations. The Group has not applied these amendments as they are only effective for financial periodsbeginning on or after 1 January 2010 and 1 July 2010.

The above new/revised FRSs, IC Interpretations and Amendments to FRSs are expected to have no significant impact on the financial statements of the Group upon their initial application except for thechanges arising from the adoption of FRS 7, FRS 101, and FRS 139. The Group is exempted from disclosingthe possible impact to the financial statements upon the initial application of FRS 7 and FRS 139. Changesarising from the adoption of FRS 101 is discussed below:

FRS 101 – Presentation of Financial Statements

FRS 101 requires an entity to present, in a statement of changes in equity, all owner changes in equity. Allnon-owner changes in equity (ie. comprehensive income) are required to be presented in one statementof comprehensive income or in two statements (a separate income statement and a statement of comprehensive income). Components of comprehensive income are not permitted to be presented in thestatement of changes in equity.

In addition, a statement of financial position is required at the beginning of the earliest comparative periodfollowing a change in accounting policy, the correction of an error or the reclassification of items in the financial statements.


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2010 (CONT’D)

1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(c) Significant accounting judgements and estimates

The preparation of financial statements requires management to exercise judgement in the process of applying the accounting policies. It also requires the use of accounting estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at thebalance sheet date, and reported amounts of income and expenses during the financial year.

Although these estimates are based on management’s best knowledge of current events and actions, historical experience and various other factors, including expectations of future events that are believed tobe reasonable under the circumstances, actual results may ultimately differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Critical judgement

Critical judgement made by management in the process of applying accounting policies that have a significant effect on the amount recognised in the financial statements is in respect of classification between investment properties and property, plant and equipment.

Classification between investment properties and owner-occupied properties

The Group determines whether a property qualifies as an investment property, and has developed certaincriteria based on FRS 140 Investment Property in making that judgement. In making its judgement, theGroup considers whether a property generates cash flows largely independently of other assets held bythe Group. Owner-occupied properties generate cash flows that are attributable not only to the properties,but also to other assets used in the production or supply process.

Some properties comprise a portion that is held to earn rental or for capital appreciation and another portionthat is held for use in the production or supply of goods and services or for administrative purposes. Ifthese portions could be sold separately (or leased out separately under a finance lease), the Group accountsfor the portions separately.

If the portions could not be sold separately, the property is accounted for as an investment property onlyif an insignificant portion is held for use in the production or supply of goods and services or for administrative purposes.

Judgement is also make on an individual property basis to determine whether ancillary services are so significant that a property does not qualify as investment property.

Revenue recognition of construction contracts

The Group recognises construction contracts based on the percentage of completion method. The stageof completion of the construction contracts is measured in accordance with the accounting policies setout in (n).

Significant judgement is required in determining the percentage of completion, the extent of the development project and contract costs incurred, the estimated total revenue and total costs and the recoverability of the development project and contract. In making these judgements, management relieson past experience and the work of specialists.




(c) Significant accounting judgements and estimates (Cont’d)

Estimation uncertainty

Estimation uncertainty in applying accounting policies that have a significant effect on the amount recognised in the financial statements are described in the following notes:

(i) Fair values of investment properties

The fair values of the investment properties are determined by the Directors based on various studiesconducted which reasonably reflect market conditions of similar properties at the balance sheet date.

(ii) Allowance for doubtful debts

The collectibility of receivables is assessed on an ongoing basis. An allowance for doubtful debt ismade for any account considered to be doubtful for collection. The allowance for doubtful debts ismade based on a review of all outstanding accounts at the balance sheet date. A considerable amountof judgement is required in assessing the ultimate realisation of these receivables, including the creditworthiness and the past collection history of each customer.

(iii) Allowance for diminution in value of investment in redeemable preference shares

The Directors review the carrying amounts of the redeemable preference shares at each balance sheetdate to determine whether there is any indication of diminution in value that is other than temporary.The review is based on an assessment of the financial performance of the investee companies basedon their latest historical and prospective financial information.

If such indication exists, the recoverable amounts of these investments are estimated based on sourcesof information available to Directors, to determine the allowance for diminution in value of these investments.

(iv) Measurement of impairment loss on investments in subsidiaries and associates

Investments in subsidiaries and associates are assessed at each balance sheet date to determinewhether there is any indication of impairment. If such an indication exists, an estimation of the investment’s recoverable amount is required.

Estimating the recoverable amount requires management to make an estimate of the expected futurecash flows from the subsidiaries and associates and also choose a suitable discount rate in order tocalculate the present value of those cash flows.

(d) Subsidiaries

A subsidiary is an entity controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits fromits activities. The existence and effect of potential voting rights that are currently exercisable or convertible,are considered when assessing whether the Company has the power to govern the financial and operatingpolicies of another entity.

In the Company’s separate financial statements, investments in subsidiaries are stated at cost lessimpairment losses. Impairment losses are charged to the income statement.

On disposal, the difference between the net disposal proceeds and the carrying amount of the subsidiarydisposed of is taken to the income statement.




(e) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and of all itssubsidiaries made up to the end of the financial year. The consolidated financial statements are preparedusing uniform accounting policies for like transactions in similar circumstances.

All intra-group balances, transactions, income and expenses are eliminated in full on consolidation and theconsolidated financial statements reflect external transactions only.

All subsidiaries are consolidated on the purchase method of accounting from the date of acquisition, beingthe date on which the Group obtains control, and continue to be consolidated until the date such controlceases.

Under the purchase method of accounting, the cost of an acquisition is measured as the aggregate of thefair values of the assets acquired, liabilities incurred or assumed and equity instruments issued at the dateof exchange, plus any costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed are measured at their fair values at the acquisition date.

The excess of the acquisition cost over the fair values of the identifiable assets, liabilities and contingentliabilities acquired is retained in the balance sheet as goodwill. Discount on acquisition is immediately credited to the consolidated income statement.

After initial recognition, goodwill is measured at cost less impairment loss, if any. Goodwill is tested forimpairment annually or more frequently if events or changes in circumstances indicate that the carryingvalues may be impaired.

Minority interests represent the portion of the profit or loss and net assets of subsidiary companies notheld by the Group.

(f) Associates

An associate is an entity in which the Group has significant influence and that is neither a subsidiary nor ajointly controlled entity. Significant influence is the power to participate in the financial and operating policydecisions of the investee, but is not control or joint control over those policies. The existence and effect ofpotential voting rights that are currently exercisable or convertible are considered when assessing whetherthe Group has significant influence.

In the Company’s separate financial statements, investment in associates are stated at cost less impairmentlosses. Impairment losses are charged to the income statement.

On disposal, the difference between the net disposal proceeds and the carrying amount of the associatedisposed of is taken to the income statement.

Investment in associates are accounted for in the consolidated financial statements by the equity methodof accounting. Under the equity method, investments in associates are initially recognised at cost and adjusted thereafter for post-acquisition changes in the Group’s share of net assets of the associates.

The Group’s share of net profits or losses and changes recognised directly in the equity of the associatesare recognised in the consolidated income statement and consolidated statement of changes in equity,respectively.

An investment in an associate is accounted for using the equity method from the date on which the Groupobtains significant influence until the date the Group ceases to have significant influence over the associate.

Premium on acquisition is included in the carrying value of the investment and it is not tested for impairmentseparately. Instead, the entire carrying amount of the investment is tested for impairment in accordancewith the accounting policy set out in 1(p) below.




(f) Associates (Cont’d)

Discount on acquisition is excluded from the carrying amount of the investment and is instead included asincome in the determination of the Group’s share of the associate’s profit or loss in the period in which theinvestment is acquired.

Unrealised gains on transactions between the Group and its associates are eliminated to the extent of theGroup’s interest in the associates. Unrealised losses are also eliminated unless the transaction providesevidence of impairment of the asset transferred.

Equity accounting is discontinued when the Group’s share of losses in an associate diminishes by virtue oflosses to zero unless the Group has incurred legal or constructive obligations or made payments on behalfof the associate.

The results and reserves of associates are accounted for in the consolidated financial statements basedon audited and/or unaudited management financial statements made up to the end of the financial yearand prepared using accounting policies that conform to those used by the Group for like transactions insimilar circumstances.

(g) Jointly controlled entities

A joint venture is a contractual arrangement whereby two or more parties undertake an economic activitythat is subject to joint control. A jointly controlled entity is a joint venture that involves the establishmentof a separate entity in which each venturer has an interest.

Investments in jointly controlled entities are accounted for in the consolidated financial statements by theequity method of accounting.

In the Company’s separate financial statements, investments in jointly controlled entities are stated at costless impairment losses. Impairment losses are charged to the income statement.

On disposal, the difference between the net disposal proceeds and the carrying amount of the jointly controlled entity disposed of is taken to the income statement.

(h) Other investments

Long term investments are stated at cost. An allowance for diminution in value is made if the Directors areof the opinion that there is a decline in the value of such investments which is other than temporary. Thediminution in value is charged to the income statement.

On disposal, the difference between the net disposal proceeds and the carrying amount of the investmentdisposed of is taken to the income statement.

(i) Property, plant and equipment

(i) Measurement basis

All items of property, plant and equipment are initially recorded at cost. Subsequent costs are includedin 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 ofthe item can be measured reliably. The carrying amount of the replaced part is derecognised. All otherrepairs and maintenance are charged to the income statement during the financial year in which theyare incurred.

Subsequent to initial recognition, property, plant and equipment are stated at cost less accumulateddepreciation and any impairment losses except for certain properties which are stated at valuation carried out in 1993, less accumulated depreciation and impairment losses.




(i) Property, plant and equipment (Cont’d)

(i) Measurement basis (Cont’d)

The Group has applied the transitional provision of FRS 116 Property, Plant and Equipment, to retainthe revalued amount as if it is at the cost basis. It is not the Group’s policy to carry out regular valuationsof its property, plant and equipment. The revaluation carried out in 1993 was a one-off exercise, andthe carrying amount of the revalued properties has been retained on the basis of their previous revaluation as surrogate cost. Accordingly, this valuation has not been updated.

An item of property, plant and equipment is derecognised upon disposal or when no future economicbenefits are expected from its use or disposal. The difference between the net disposal proceeds andthe net carrying amount is recognised in the income statement.

(ii) Depreciation

Freehold land is not depreciated.

Depreciation is calculated to write off the cost of other property, plant and equipment on the straightline basis to their residual values over their expected economic useful lives at the following annualrates:

The principal annual rates used for this purpose are:

Buildings 2%Equipment, plant and machinery 10% - 20%Motor vehicles 20%Office equipment 10% - 33 1/3%Furniture and fittings 10%

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

(j) Investment properties

Investment properties are properties held to earn rental income or for capital appreciation or both ratherthan for use in the production or supply of goods and services or for administrative purposes, or sale in theordinary course of business.

Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that costs is incurred ifthe recognition criteria are met; and excludes the costs of day-to-day servicing of an investment property.

Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the balance sheet date. Gains or losses arising from changes in the fair values of investmentproperties are included in the income statement in the year in which they arise.

Investment properties are derecognised upon disposal or when they are permanently withdrawn from useand no future economic benefits are expected from their disposal. On disposal, the difference betweenthe net disposal proceeds and the carrying amount is recognised in the income statement.




(k) Leases

A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments for the right to use an asset for an agreed period of time.

(i) Finance lease

A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownershipof an asset. Title may or may not eventually be transferred.

Property, plant and equipment acquired by way of finance leases are stated at amounts equal to thelower of their fair values and the present value of minimum lease payments at the inception of theleases, less accumulated depreciation and any impairment losses.

In calculating the present value of the minimum lease payments, the discount rate is the interest rateimplicit in the lease, if this is determinable; if not, the Group’s incremental borrowing rate is used.

(ii) Operating leases

An operating lease is a lease other than a finance lease.

Operating lease income or operating lease rentals are credited or charged to the income statement ona straight-line basis over the period of the lease.

(l) Prepaid lease payments

Leasehold land that has an indefinite economic life and title that is not expected to pass to the Group bythe end of the lease term is classified as operating lease. The up-front payments for right to use the leasehold land over a predetermined period are accounted for as prepaid lease payments and are stated atcost less amounts amortised.

The prepaid lease payments are amortised on a straight-line basis over the remaining period of the lease.

(m) Land held for property development

Land held for property development consists of land where no development activities have been carriedout or where development activities are not expected to be completed within the normal operating cycle.Such land is classified under non-current assets and is stated at cost less accumulated impairment loss.The policy for the recognition and measurement of impairment loss is in accordance with Note 1(p).

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 activitiescan be completed within the normal operating cycle.

(n) Construction contracts

The Group’s construction contracts are all fixed price contracts and where their outcome can be reasonablyestimated, revenue is recognised on the percentage of completion method. The stage of completion is determined by the proportion that costs incurred to-date bear to estimated total costs, and for this purpose,only those costs that reflect actual contract work performed are included as costs incurred.

When the outcome of a construction contract cannot be reasonably estimated, revenue is recognised onlyto the extent of contract costs incurred that are expected to be recoverable. At the same time, all contractcosts incurred are recognised as an expense in the period in which they are incurred.

Costs that relate directly to a contract and which are incurred in securing the contract are also included aspart of contract costs if they can be separately identified and measured reliably and it is probable that thecontract will be obtained.




(n) Construction contracts (Cont’d)

Where it is probable that the total costs will exceed total revenue, the foreseeable loss is immediatelyrecognised in the income statement irrespective of whether contract work has commenced or not, or thestage of completion of contract activity, or the amounts of profits expected to arise on other unrelated contracts.

On the balance sheet, contracts work-in-progress are reflected either as gross amounts due from or dueto customers, where a gross amount due from customers is the surplus of (i) costs incurred plus profitsrecognised under the percentage of completion method over (ii) recognised foreseeable losses plusprogress billings. A gross amount due to customers is the surplus of (ii) over (i).

(o) Receivables

Receivables are stated at anticipated realisable values. Known bad debts are written off and an estimate ismade for doubtful debts based on a review of all outstanding amounts at the balance sheet date.

(p) Impairment of non-financial assets

The carrying amounts of non-financial assets are reviewed at each balance sheet date to determine whetherthere is any indication of impairment. If such an indication exists, the asset’s recoverable amount is estimated. For goodwill that has an indefinite useful life, the recoverable amount is estimated at each balance sheet date or more frequently when indicators of impairment are identified.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds itsrecoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cashflows that largely are independent from other assets and groups. Impairment losses are charged to the income statement. Impairment losses recognised in respect of cash-generating units are allocated to firstreduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amountof the other assets in the unit or groups of units on a pro rata basis.

The recoverable amount of an asset or cash-generating unit is the higher of its value in use and its fair valueless costs to sell. In assessing value in use, the estimated future cash flows are discounted to their presentvalue using a pre-tax discount rate that reflects current market assessments to the time value of moneyand the risks specific to the asset.

Impairment losses in respect of goodwill is not reversed. In respect of other assets, impairment lossesrecognised in prior periods are assessed at each balance sheet date for any indications that the loss hasdecreased or no longer exists. An impairment loss is reversed if there has been a change in the estimatesused to determine the recoverable amount. Reversals of impairment losses are credited to the incomestatement in the year in which the reversals are recognised.

Any subsequent increase in recoverable amount of an asset is recognised as reversal of previous impairment loss and should not exceed the carrying amount that would have been determined (net of amortisation or depreciation, if applicable) had no impairment loss been previously recognised for the asset.

(q) Share capital

Ordinary shares are recorded at the nominal value and proceeds received in excess of the nominal valueof shares issued, if any, are accounted for as share premium. Both ordinary shares and share premium areclassified as equity. Cost directly attributable to the issuance of the shares is accounted for as a deductionfrom share premium, otherwise, it is charged to the income statement.

Dividends on ordinary shares, when declared or proposed by the Directors of the Company are disclosedin the notes to the financial statements. When paid, such dividends will be accounted for in the shareholders’ equity as an appropriation of unappropriated profit in the financial year in which the dividendsare paid.




(r) Payables

Payables are stated at cost and are recognised when there is a contractual obligation to deliver cash or another financial asset to settle the obligation.

(s) Revenue recognition

(i) Construction contracts

Revenue from construction contracts is recognised on the percentage of completion method wherethe outcome of the contracts can be reliably estimated.

Revenue from construction contracts represents the proportionate contract value on construction contracts attributable to the percentage of contract work performed during the financial year.

(ii) Hiring and rental income

Hiring and rental income are recognised on a time proportion basis over the lease term.

(iii) Dividend income

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

(iv) Interest income

Interest income is recognised on a time proportion basis using the effective interest rate applicable.

(t) Employee benefits

(i) Short term employee benefits

Salaries, wages, bonuses, allowances and non-monetary benefits are recognised as an expense in theperiod in which the services are rendered by employees.

(ii) Defined contribution plan

As required by law, companies in Malaysia make contributions to the Employees Provident Fund(“EPF”). Such contributions are recognised as an expense in the income statement in the period towhich they relate.

(iii) Termination benefits

Employee termination benefits are recognised only either after an agreement is in place with the appropriate employee representatives specifying the terms of redundancy or after individual employeeshave been advised of the specific terms.

(u) Borrowing costs

All interest and other costs incurred in connection with borrowings are expensed as incurred as part of finance costs. Finance costs comprise interest paid and payable on borrowings. The interest component ofhire purchase payments is charged to the income statement over the hire purchase periods so as to givea constant periodic rate of interest on the remaining hire purchase liabilities.




(v) Taxation

The tax expense in the income statement comprises current tax and deferred tax included in the determination of profit or loss for the financial year.

On the balance sheet, a deferred tax liability is recognised for taxable temporary differences while a deferredtax asset is recognised for deductible temporary differences and unutilised tax losses only to the extentthat is probable that taxable profit will be available in future against which the deductible temporary differences and tax losses can be utilised.

No deferred tax is recognised for temporary differences arising from the initial recognition of:

(i) goodwill; or

(ii) an asset or liability which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferred tax assets and liabilities are measured based on tax consequences that would follow from themanner in which the asset or liability is expected to be recovered or settled, and based on tax rates enactedor substantively enacted by the balance sheet date that are expected to apply to the period when the assetis realised or when the liability is settled.

Current tax and deferred tax are charged or credited directly to equity if the tax relates to items that arecredited or charged, whether in the same or a different period, directly to equity.

(w) Cash and cash equivalents

Cash and cash equivalents comprise cash and bank balances, bank overdrafts, fixed deposits (but excludethose pledged to secure banking facilities) and other short-term, highly liquid investments that are readilyconvertible to known amounts of cash, and which are subject to insignificant risk of changes in value.

(x) Financial instruments

A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financialliability or equity instrument of another enterprise.

(i) Financial instruments recognised in the balance sheets

The recognised financial instruments of the Group comprise cash and cash equivalents, other investments, receivables, payables, bank borrowings, hire purchase liabilities as well as ordinary sharecapital.

These financial instruments are recognised when a contractual relationship has been established. All the financial instruments are denominated in Ringgit Malaysia, unless otherwise stated. The accounting policies and methods adopted, including the basis of measurement applied are disclosedabove.

The information about the extent and nature of these recognised financial instruments, including significant terms and conditions that may affect the amount, timing and certainty of future cash flowsare disclosed in the respective notes below.

(ii) Financial instruments not recognised in the balance sheets

The Company has provided corporate guarantees to banks for credit facilities granted to subsidiarieswhich represent present obligations existing at the balance sheet date. The corporate guarantees arenot recognised in the financial statements at inception because it is not probable that an outflow ofeconomic benefits will be required to settle the obligations.



2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s overall financial risk management objectives and policies are to ensure that the Group createsvalue and maximises returns to its shareholders.

Financial risk management is carried out through risk review, internal control systems, benchmarking the industry’s best practices and adherence to Group’s financial risk management policies.

The Group has been financing its operations mainly from internally generated funds and bank borrowings. TheGroup does not find it necessary to enter into derivative transactions based on its current level of operations.

The main risks arising from the financial instruments of the Group are stated below. Management monitors theGroup’s financial position closely with an objective to minimise potential adverse effects on the financial performance of the Group. Management reviews and agrees on policies for managing each of these risks andthey are summarised below. These policies have remained unchanged during the financial year.

(i) Credit risk

Credit risk arises when progress billings on contract works are raised and services are rendered on deferredcredit terms.

The entire financial assets of the Group are exposed to credit risk except for cash and bank balances andfixed deposits which are placed with licensed banks in Malaysia.

The Group’s exposure to credit risk is monitored on an ongoing basis. The Group has credit risk policies inplace to manage credit risk exposure. The risk is managed through the application of the Group’s creditmanagement procedures which include regular monitoring and follow up procedures.

The Group carefully selects the projects in which it intends to participate. The selection is based on criteriathat are reviewed periodically to take into account developments in the market. The Group also managesits credit risk exposure by maintaining good business relationship with its customers. This approach hasenabled the Group to manage its credit risk more effectively in addition to the above credit risk managementprocedures.

The Group invests its surplus cash by depositing them with licensed financial institutions.

The Group does not consider it necessary to require collateral in respect of its financial assets.

(ii) Interest rate risk

The Group is exposed to interest rate risk which is the risk that a financial instrument’s value will fluctuateas a result of changes in market interest rates.

Exposure to interest rate risk relating to the Group’s investment in redeemable preference shares (whichcarry a fixed dividend rate of 8% per annum) is managed by thorough viability studies prior to undertakingthe investment. As the redeemable preference shares earn a cumulative dividend over a tenure of 20 years,the Group expects that increases in market interest rates to be effectively mitigated by decreases in interestrate during the tenure of the investment.

Exposure to interest rate risk also relates the Group’s fixed deposits and interest-bearing borrowings.

Surplus funds are placed with licensed financial institutions to earn interest income based on prevailingmarket rates. The Group manages its interest rate risk by placing such funds on short tenures of 12 monthsor less.

The Group’s policy is to borrow principally on a floating rate basis but to retain a proportion of fixed ratedebt. The objective of a mix of fixed and floating rate borrowings is to reduce the impact of a rise in interestrates and to enable savings to be enjoyed if interest rates fall. The Group does not generally hedge interest rate risk.



2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

(iii) Market risk

The Group is exposed to market risk, which is the risk that a financial instrument’s value will fluctuate as aresult of changes in market prices.

The Group’s exposure to market risk is in respect of its quoted investments. The investments are monitoredregularly and subject to periodic review. The investments are assessed for any diminution in their carryingvalues and allowances are made for such diminution in value, if any, which is other than temporary.

Common to all business, the overall performance of the Group’s quoted investments is also driven externallyby global and domestic economies that are largely unpredictable and uncontrollable.

(iv) Liquidity and cash flow risk

The Group manages its debt maturity profile, operating cash flows and the availability of funding so as toensure that all financing, repayment and funding needs are met. As part of its overall prudent liquidity management, the Group maintains sufficient levels of cash to meet its working capital requirements. Inaddition, the Group aims to maintain available banking facilities of a reasonable level to its overall debt position.



3. PROPERTY, PLANT AND EQUIPMENT

Group Freehold Equipment, land and plant and Motor Office Furniture 2010 buildings machinery Vehicles equipment and fittings Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost/Valuation

At 1 JulyCost 64,622 16,784 19,238 4,395 1,791 106,830Valuation 6,382 - - - - 6,382

71,004 16,784 19,238 4,395 1,791 113,212Additions - - 944 41 46 1,031Disposals - (1,738) (1,418) - - (3,156)Write off - - - (5) - (5)

At 30 JuneCost 64,622 15,046 18,764 4,431 1,837 104,700Valuation 6,382 - - - - 6,382 71,004 15,046 18,764 4,431 1,837 111,082

Accumulated depreciation

At 1 July 1,976 16,579 14,898 4,037 1,714 39,204Charge for the year 116 143 1,175 76 18 1,528Disposals - (1,701) (1,328) - - (3,029)Write off - - - (5) - (5) At 30 June 2,092 15,021 14,745 4,108 1,732 37,698

Net carrying amountAt 30 June

Cost 64,622 25 4,019 324 106 69,094 Valuation 4,290 - - - - 4,290

68,912 25 4,019 324 106 73,384



3. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Group Freehold Equipment, land and plant and Motor Office Furniture 2009 buildings machinery Vehicles equipment and fittings Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost/Valuation

At 1 JulyCost 54,624 17,602 19,855 4,129 1,743 97,953Valuation 6,382 - - - - 6,382

61,006 17,602 19,855 4,129 1,743 104,335Additions 9,998 - 1,686 266 48 11,998Disposals - (178) (252) - - (430)Write off - (640) (2,051) - - (2,691)

At 30 JuneCost 64,622 16,784 19,238 4,395 1,791 106,830Valuation 6,382 - - - - 6,382

71,004 16,784 19,238 4,395 1,791 113,212

Accumulated depreciation

At 1 July 1,860 17,211 16,666 3,939 1,699 41,375Charge for the year 116 186 1,462 98 15 1,877Overprovision in prior year - - (928) - - (928)Disposals - (178) (252) - - (430)Write off - (640) (2,050) - - (2,690)

At 30 June 1,976 16,579 14,898 4,037 1,714 39,204


Cost 64,622 205 4,340 358 77 69,602Valuation 4,406 - - - - 4,406

69,028 205 4,340 358 77 74,008




Company Freehold Equipment, land and plant and Motor Office Furniture 2010 buildings machinery Vehicles equipment and fittings Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost/Valuation

At 1 JulyCost 145 14,569 13,067 3,056 1,652 32,489Valuation 6,382 - - - - 6,382

6,527 14,569 13,067 3,056 1,652 38,871Additions - - 852 24 2 878Disposals - (1,549) (953) - - (2,502)Write off - - - (5) - (5)

At 30 JuneCost 145 13,020 12,966 3,075 1,654 30,860Valuation 6,382 - - - - 6,382

6,527 13,020 12,966 3,075 1,654 37,242

Accumulateddepreciation

At 1 July 1,976 14,532 10,595 2,996 1,593 31,692Change for the year 116 12 852 31 9 1,020Disposals - (1,549) (946) - - (2,495)Write off - - - (5) - (5)

At 30 June 2,092 12,995 10,501 3,022 1,602 30,212


Cost 145 25 2,465 53 52 2,740Valuation 4,290 - - - - 4,290

4,435 25 2,465 53 52 7,030




Company Freehold Equipment, land and plant and Motor Office Furniture 2009 buildings machinery Vehicles equipment and fittings Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost/Valuation

At 1 JulyCost 145 15,387 14,421 3,026 1,606 34,585Valuation 6,382 - - - - 6,382

6,527 15,387 14,421 3,026 1,606 40,967Additions - - 557 30 46 633Disposals - (178) - - - (178)Write off - (640) (1,911) - - (2,551)

At 30 JuneCost 145 14,569 13,067 3,056 1,652 32,489Valuation 6,382 - - - - 6,382

6,527 14,569 13,067 3,056 1,652 38,871

Accumulateddepreciation

At 1 July 1,860 15,338 12,228 2,954 1,583 33,963Change for the year 116 12 786 42 10 966Overprovision in prior years - - (509) - - (509)Disposals - (178) - - - (178)Write off - (640) (1,910) - - (2,550)

At 30 June 1,976 14,532 10,595 2,996 1,593 31,692


Cost 145 37 2,472 60 59 2,773Valuation 4,406 - - - - 4,406

4,551 37 2,472 60 59 7,179




Details of land and buildings are as follows: Net Net Cost/ Accumulated carrying carrying Valuation depreciation amount amount 2010 2010 2010 2009 RM’000 RM’000 RM’000 RM’000

Group

Freehold land, at cost 64,622 - 64,622 64,622

Freehold - land, at valuation 568 - 568 568 - building, at valuation 5,814 2,092 3,722 3,838

6,382 2,092 4,290 4,406

71,004 2,092 68,912 69,028

Company

Freehold land, at cost 145 - 145 145

Freehold - land, at valuation 568 - 568 568 - building, at valuation 5,814 2,092 3,722 3,838

6,382 2,092 4,290 4,406

6,527 2,092 4,435 4,551

The Directors valued the freehold land and building of the Company based on valuation carried out by an independent firm of professional valuers on the open market value basis in 1992 which was approved and revised by the Securities Commission using the comparison method of valuation in 1993.

The net carrying amount of the revalued freehold land and building of the Company that would have been included in the financial statements had the property been carried at cost less accumulated depreciation isRM2,523,702 (2009 : RM2,591,636).

Included in the cost of property, plant and equipment are fully depreciated property, plant and equipment asfollows:


Equipment, plant and machinery 15,879 16,571 14,509 15,149Motor vehicles 11,038 12,327 8,725 9,135Office equipment 3,889 3,690 2,950 2,808 Furniture and fittings 1,658 1,644 1,568 1,555

32,464 34,232 27,752 28,647




Included in the net carrying amounts of property, plant and equipment are the following:


Motor vehicles acquired under hire purchase 3,704 3,400 2,202 1,944

Property, plant and equipment registered in the names of third parties holding in trust for the Group Equipment, plant and machinery - 169 - -Motor vehicles 76 106 - -

Freehold land charged to licensed banks for banking facilities granted to the Group 56,415 56,415 - -

4. PREPAID LEASE PAYMENTS


Cost

At 30 June / 1 July 15,992 15,992 1,364 1,364

Accumulated amortisation

At 1 July 1,664 1,464 38 19Charge for the year 200 200 19 19

At 30 June 1,864 1,664 57 38

Net carrying amountAt 30 June 14,128 14,328 1,307 1,326

Prepaid lease payments of the Group include an amount of RM12,821,869 (RM13,002,459) which is chargedto a licensed bank for banking facilities granted to the Group.



5. INVESTMENT PROPERTIES


At fair value

At 1 July 20,428 20,645 15,335 15,335Addition 7,202 - - -Disposal (102) (97) - -Changes in fair value 891 (120) 705 -

At 30 June 28,419 20,428 16,040 15,335

Investment properties comprise:

Freehold land and commercial buildings 1,495 1,588 620 868Short term leasehold land and buildings 300 400 300 400Long term leasehold land and buildings/ apartments 26,624 18,440 15,120 14,067

28,419 20,428 16,040 15,335

The title deeds of the freehold building and long term leasehold land and buildings/apartments have yet to beissued by the relevant authorities.

6. LAND HELD FOR PROPERTY DEVELOPMENT

Development Land rights Freehold land expenditure at cost at cost at cost Total RM RM RM RM

Group

At 1 July 2008 4,961 12,490 - 17,451Additions - - 156 156

At 30 June 2009 4,961 12,490 156 17,607

At 1 July 2009 4,961 12,490 156 17,607Additions - 854 329 1,183

At 30 June 2010 4,961 13,344 485 18,790

The land rights represent rights to develop parcels of land via a Power of Attorney granted to the Group pursuantto a joint venture agreement entered into between the Group and a third party.

The freehold land is charged to a licensed bank for banking facilities granted to the Group.



7. INVESTMENTS IN SUBSIDIARIES

2010 2009 RM’000 RM’000

Unquoted shares, at cost 20,997 20,997Less: Accumulated impairment losses (2,851) (1,051)

18,146 19,946

The subsidiaries, which are all incorporated in Malaysia, are as follows:

Equity interest Principal activities 2010 2009 % %

Binawani Sdn Bhd 100 100 Civil engineering and building worksMilan Resources Sdn Bhd 100 100 Civil engineering and building worksEkovest Construction Sdn Bhd 100 100 Civil engineering and building worksEkovest Project Management Sdn Bhd 100 100 Project management for construction worksEkovest Land Sdn Bhd 100 100 Investment holdingSaujarena Bina Sdn Bhd 100 100 Property investmentEkovest-Faber Sdn Bhd 60 60 Design, construction and maintenance of the Natural Institute for Natural Products Vaccines and Biology Ekovest Brunsfield Holdings Sdn Bhd 51 51 Investment holdingPrompt Capital Sdn Bhd 100 100 InactiveEkovest Properties Sdn Bhd 100 100 InactiveTimur Terang Sdn Bhd 100 100 InactiveEkovest Oil & Gas Sdn Bhd 50 50 InactiveMilan Energy Sdn Bhd 100 100 InactiveMilan Ventures Sdn Bhd 100 100 InactiveMilan Prestasi Sdn Bhd 100 100 InactiveEkofield Danga Cove Sdn Bhd 100 100 InactiveEkofield Property Sdn Bhd 100 100 InactiveEkofield Projects Sdn Bhd 100 100 Inactive

8. INVESTMENTS IN ASSOCIATES


Unquoted shares, at cost 600 600 600 600Group’s share of post-acquisition results 102 102 - -

702 702 600 600



8. INVESTMENTS IN ASSOCIATES (CONT’D)

The associates, which are all incorporated in Malaysia, are as follows:

Equity interest Principal activities 2010 2009 % %

Peremba Ekovest Sdn Bhd 49 49 Management and development of construction projectsSyabas Hakikat Sdn Bhd 40 40 Management and development of construction projects

The financial year ends of the above associates are not co-terminous with that of the Company.

Financial year end

Peremba Ekovest Sdn Bhd 31 DecemberSyabas Hakikat Sdn Bhd 31 December

For the purpose of applying the equity method of accounting, the latest audited financial statements of theabove associates and their management financial statements made up to 30 June have been used.

The summarised financial information of the associates at 30 June 2010 are as follows:

Group 2010 2009 RM’000 RM’000

Assets and liabilities

Non-current assets - - Current assets 1,780 1,778

Total assets 1,780 1,778

Non-current liabilities - - Current liabilities 46 37

Total liabilities 46 37

Results Revenue - - Profit/(Loss) for the year (1) (2)

9. INVESTMENT IN JOINTLY CONTROLLED ENTITY

The jointly controlled entity was ECSB-JSR Constructions (JV) Private Limited, a company incorporated in Indiain which the Group had a 70% (2009 : 70%) equity interest. The jointly controlled entity had completed thesingle project for which it was established. Accordingly, in 2009, the Company had written off the remainingcarrying value of the investment of RM6,000 in jointly controlled entity.



10. OTHER INVESTMENTS

Group Note 2010 2009 RM’000 RM’000

At cost

Unquoted redeemable preference shares - Wira Kristal Sdn. Bhd. 28,000 28,000 - Konsortium Lebuhraya Utara-Timur (KL) Sdn. Bhd. 40.2 136,500 136,500

164,500 164,500Shares quoted in Malaysia - 279

164,500 164,779

At market valueShares quoted in Malaysia - 1,367

The salient features of the redeemable preference shares (“RPS”) are as follows:

(i) the RPS holders have the rights to a fixed cumulative gross dividend rate of 8% per annum, to be calculatedbased on issue price per RPS. Any unpaid dividends shall be charged a compound interest rate of 8% perannum;

(ii) the RPS does not carry any rights to participate in the profits or surplus assets of the investee company;

(iii) the RPS holders have the rights on a winding-up or other return of capital to payment, prior to all othershares;

(iv) the RPS shall be redeemed partially or in full on a RPS redemption date, at the option of the investee company. RPS redemption date is defined as RPS Dividend date. At the maturity date, which is 20 yearsfrom the first subscription date, any RPS not redeemed shall be automatically redeemed; and

(v) the holders do not have any right to vote at the investee company’s General Meeting other than as conferredby Section 148(2) of the Companies Act 1965.

The redeemable preference shares are charged to a licensed financial institution for banking and other creditfacilities granted to the Group.

11. AMOUNT OWING BY/TO SUBSIDIARIES

Amount owing by subsidiaries included under non-current assets comprise:

2010 2009 RM’000 RM’000

Advances 125,334 165,785Allowance for doubtful debts (416) (416)

124,918 165,369

The amount owing by subsidiaries under non-current assets represents unsecured advances which are interestfree and not repayable within the next 12 months except for an amount of RM83,620,978 (2009 :RM135,460,250) which bears interest at 2.1% (2009 : 2%) per annum.

Amount owing by subsidiaries included under current assets represents unsecured advances which are interestfree and payable on demand.



11. AMOUNT OWING BY/TO SUBSIDIARIES (CONT’D)

The amount owing to subsidiaries comprises:

2010 2009 RM’000 RM’000

Trade payables 2,949 8,857Advances 478 482

3,427 9,339

The amount due to subsidiaries which are trade in nature is subject to normal trade terms.

The advances are unsecured, interest free and payable on demand.

12. DEFERRED TAX ASSET

Group

2010 2009 RM’000 RM’000

At 1 July - 39Reversed during the year - (39)

At 30 June - -

At 30 June 2010, the Group has not recognised deferred tax assets arising from the following temporary differences as it is not probable that future taxable profit will be available against which the assets can beutilised.

Group RM’000 RM’000

Deductible temporary differences on - unused tax losses 8,053 8,020 - unabsorbed capital allowances 177 223

8,230 8,243Taxable temporary differences between net carrying amount and tax written down value of property, plant and equipment (80) (2)

8,150 8,241



13. GROSS AMOUNT DUE FROM/(TO) CUSTOMERS


Cost of contracts 1,550,318 1,863,200 418,501 362,872Cost of contracts written off (3,221) - - -Attributable profit less foreseeable losses recognised to-date 178,652 192,117 69,607 65,470

1,725,749 2,055,317 488,108 428,342Progress billings (1,789,892) (2,107,778) (491,103) (430,755)

(64,143) (52,461) (2,995) (2,413)

Represented by:

Gross amount due from customers 3,188 11,238 - -Gross amount due to customers (67,331) (63,699) (2,995) (2,413)

(64,143) (52,461) (2,995) (2,413)

Retention sums receivable from customers (included in trade receivables, Note 14) 9,731 12,967 8,064 8,064

Advances received (included in other payables, Note 21) - 20,000 - -

14. TRADE AND OTHER RECEIVABLES


Gross trade receivables 116,704 114,443 13,553 16,114Allowance for doubtful debts (527) (527) (91) (91)

116,177 113,916 13,462 16,023Other receivables 6,959 27,131 1,017 830Sundry deposits and prepayments 1,615 1,154 642 673

124,751 142,201 15,121 17,526

Trade receivables comprise amounts receivable from progress billings made to customers on contract workperformed, retention sums receivable and services rendered to customers. Customers are granted normalcredit periods of between 30 and 90 days and may be extended at the discretion of the management, while retention sums are receivable upon the expiry of the defect liability periods of the respective construction contracts. The defect liability periods of the construction contracts are between 12 and 24 months.



14. TRADE AND OTHER RECEIVABLES (CONT’D)

Included in trade receivables are:


Amounts owing by companies in which certain Directors have financial interests 57,177 46,275 723 1,154

The trade receivables are unsecured and interest free.

Included in other receivables are the following:


Amounts owing by companies in which certain Directors have financial interests 3,078 932 1,080 380

The other receivables represent unsecured advances which are interest free and payable on demand.

15. FIXED DEPOSITS

The fixed deposits are placed with licensed banks and earned interest at between 1.0% and 2.2% (2009 : 1.5%and 1.78%) per annum. The fixed and time deposits have maturity periods of less than one year.

Fixed deposits amounting to RM51,693,000 (2009 : RM51,693,000) have been pledged to secure banking andother credit facilities granted to the Group.

16. SHARE CAPITAL

2010 2009 Number Nominal Number Nominal

of shares value of shares value ‘000 RM’000 ‘000 RM’000

Authorised Ordinary shares of RM1 each 200,000 200,000 200,000 200,000

Issued and fully paid

Ordinary shares of RM1 each At 1 July 141,701 141,701 141,388 141,388 Issue of shares - exercise of warrants 1,188 1,188 313 313

At 30 June 142,889 142,889 141,701 141,701



16. SHARE CAPITAL (CONT’D)

At 30 June 2010, there were 36,307,500 (2009 : 37,495,100) unexercised warrants in issue which entitle theregistered holders to subscribe for one new ordinary share of RM1 each for every warrant held. The salientterms of the warrants 2005/2010 are as follows:

(a) The warrants are issued in registered form and constituted by a Deed Poll dated 26 August 2005 and entitle the registered holders to subscribe for one (1) new ordinary share of RM1 each in the Company at an exercise price of RM1 per ordinary share for every warrant held.

(b) The warrants may be exercised at any time during the exercise period of five (5) years from the date ofissue of the warrants on 10 November 2005.

(c) Upon exercise of the warrants into new ordinary shares, such shares shall rank pari passu in all respectswith the existing ordinary shares of the Company in issue at the date of allotment of the new ordinaryshares except that the new ordinary shares shall not be entitled to dividends, rights, allotments and/orother distributions, the entitlement date of which precedes or falls on the relevant exercise date of the warrants and will be subject to all the provisions of the Deed Poll and further that fractions of a share arisingfrom the exercise of the warrants are to be dealt with in such manner as the Directors may in their absolutediscretion deem fit in their interest.

(d) The exercise price and/or number of unexercised warrants shall be adjusted in the event of alteration to the share capital, capital distribution or issue of shares in accordance with the provisions of the Deed Poll.

17. RESERVES


Non-distributable Share premium 46,978 46,978 46,978 46,978 Asset revaluation reserve 398 450 398 450

47,376 47,428 47,376 47,428Distributable Unappropriated profit 122,886 118,053 57,470 60,847

170,262 165,481 104,846 108,275



18. HIRE PURCHASE LIABILITIES


Outstanding hire purchase instalments due: - not later than one year 1,437 1,447 930 749 - later than one year and not later than five years 1,710 2,423 1,225 1,475

3,147 3,870 2,155 2,224Unexpired term charges (213) (287) (151) (162)

2,934 3,583 2,004 2,062

Outstanding principal due - not later than one year (included in current liabilities) 1,315 1,297 845 664

- later than one year and not later than five years 1,619 2,286 1,159 1,398

2,934 3,583 2,004 2,062

The effective interest rates of the hire purchase liabilities are between 2.23% and 5.10% (2009 : 2.23% and4.85%) per annum.

19. BANK TERM LOANS

Group 2010 2009 RM’000 RM’000

Bank term loan bearing interest rate at 1.00% above base lending rate [effective rate 7.05% (2009 : 6.55%)] repayable by 120 monthly instalments commencing August 2007 2,732 3,023

Bank term loan bearing interest rate at 1.00% above base lending rate [effective rate 6.74% (2009 : 6.80%) ] repayable by 120 monthly instalments commencing October 2006 4,278 5,354

7,010 8,377Repayments due within 12 months (included in current liabilities, Note 23) 1,077 1,087

Repayments due after 12 months 5,933 7,290

The bank term loans are secured by a first party legal charge over the freehold land of the Group and a deed ofassignment of rental proceeds. They are also guaranteed by the Company.



20. DEFERRED TAX LIABILITIES


At 1 July 168 96 141 2,595Originated/(Reversed) during the year 183 72 147 (2,454)

At 30 June 351 168 288 141

The deferred tax liabilities comprise:

Taxable/(Deductible) temporary differences - relating to revaluation of properties 84 87 84 87 - between net carrying amount and tax written down value of property, plant and equipment 267 97 204 70 - unabsorbed capital allowance - (16) - (16)

351 168 288 141

21. TRADE AND OTHER PAYABLES


Trade payables 46,203 49,208 9,044 9,383Other payables 19,215 23,526 1,099 146Deposits 644 462 - -Accruals 859 899 422 477 66,921 74,095 10,565 10,006

Trade payables comprise amounts outstanding from trade purchases, sub-contractors claims on contract worksperformed and retention sums payable. The normal credit periods granted by trade suppliers and sub-contractorsrange from 30 to 90 days whereas retention sums are payable upon the expiry of the defect liability periods ofthe respective construction contracts. The defect liability periods of the construction contracts are between 12and 24 months.

Included in trade payables are :Group Company

2010 2009 2010 2009 RM’000 RM’000 RM’000 RM’000

Amounts owing to companies in which certain Directors have financial interests 1,100 2,258 - 2

The trade payables are unsecured and interest free. Included in other payables are :


Amounts owing to companies in which certain Directors have financial interests 283 483 - -

The other payables represent unsecured advances which are interest free and payable on demand.



22. AMOUNT OWING TO ASSOCIATES

The amount owing to the associates represent unsecured advances which are interest free and repayable ondemand.

23. BANK BORROWINGS


Bank overdrafts - secured, bearing interest rates at 1.00% above base lending rate [effective rate between 6.55% and 7.05% (2008 : 6.05% and 7.75%)] 17,152 40,925 - - - unsecured, bearing interest rates at 1.00% above base lending rate [effective rate between 8.25% and 8.50% in prior year] - 13,312 - 13,312 17,152 54,237 - 13,312Unsecured revolving credit bearing interest at fixed rates of between 2.36% and 5.41% (2009 : 2.36% and 5.41%) 24,000 24,165 24,000 24,165

41,152 78,402 24,000 37,477Bank term loans (Note 19) 1,077 1,087 - -

42,229 79,489 24,000 37,477

The secured bank overdrafts are secured as follows:

(a) a first party legal charge over the leasehold land and freehold land of the Group and are also guaranteed by the Company.

(b) a first party legal charge over the freehold land of the Group and a deed of assignment of rental proceeds from the land. It is also guaranteed by the Company.

24. GROSS REVENUE


Contract revenue 216,308 276,574 62,907 55,870Hire of machineries and motor vehicles 1,180 1,047 1,205 1,047Rental income from investment properties 245 138 245 110

217,733 277,759 64,357 57,027



25. COST OF SALES


Contract costs 186,030 252,685 56,310 52,833

Direct operating costs relating to hire of machineries and motor vehicles 147 161 178 161

Direct operating costs relating to investment properties - revenue generating 42 152 48 141 - non revenue generating 134 186 134 186

186,353 253,184 56,670 53,321

26. PROFIT FROM OPERATIONS

Profit from operations is stated after charging:


Allowance for doubtful debts 85 461 - 25Amortisation of prepaid lease payments 200 200 19 19Auditors’ remuneration - current year 104 104 53 53Impairment loss on investment in a subsidiary - - 1,800 1,000Depreciation 1,528 949 1,020 457Directors’ fees - Directors of the Company 40 40 40 40Directors’ remuneration other than fees - Directors of the Company 1,075 1,075 - - - Directors of subsidiaries - 237 - -Hire of motor vehicles 1,493 1,994 - 32Loss on disposal of an associate - - - 49Loss on fair value adjustments on investment property - 120 - -Operating lease - rental of premises 370 621 29 29 - rental of machinery 2,267 549 6 7Tax penalty 1,476 - - -

and crediting:

Dividend income from - a subsidiary - - - 10,404 - other investments - 98 - -Gain on fair value adjustments on investment property 891 - 705 -Gain on disposal of - property, plant and equipment 1,035 236 784 160 - investment properties 9 10 - - - other investments 3,113 - - -Gain arising from disposal of associate - 21 - -Hire of machineries and motor vehicles 1,461 1,329 1,205 1,047



26. PROFIT FROM OPERATIONS (CONT’D)

Profit from operations is stated after charging: (Cont’d)


Interest income - subsidiary - - 3,059 3,476 - fixed and time deposits 694 1,100 - -Rental income from - investment properties 324 402 245 110 - others 544 2,514 348 336

The estimated monetary value of benefits-in-kind received by the Directors otherwise than in cash from theGroup amounted to RM18,000 (2009 : RM18,000).

27. FINANCE COSTS


Finance costs incurred during the year comprise: - hire purchase term charges 180 198 113 119 - interest expenses 3,430 5,552 908 2,221

3,610 5,750 1,021 2,340Finance costs classified in contract costs under cost of sales - hire purchase term charges (118) (128) (113) (119)

3,492 5,622 908 2,221

28. TAX EXPENSE


Malaysian taxation based on result for the year - current 6,513 4,309 1,331 5,448 - deferred 178 100 147 (2,453)

6,691 4,409 1,478 2,995Under/(Over)estimated in prior year - current 3,963 (548) (64) (233) - deferred 5 11 - (1)

10,659 3,872 1,414 2,761



28. TAX EXPENSE (CONT’D)

The numerical reconciliations between the tax expense and the product of accounting profit multiplied by theapplicable tax rate are as follows:


Accounting profit (excluding share of results of associates and jointly controlled entity) 19,567 10,694 3,303 9,310

Tax at the applicable tax rate of 25% (2009 : 25%) 4,892 2,674 826 2,327Tax effect of expenses not deductible in determining taxable profit 2,853 1,794 839 671Tax effect of income not taxable in determining taxable profit (1,029) (19) (184) -Utilisation of deferred tax assets not recognised during the year (22) (37) - -Crystalisation of deferred tax liabilities on amortisation of revalued properties (3) (3) (3) (3)

6,691 4,409 1,478 2,995Current tax expense under/ (over)estimated in prior year 3,963 (548) (64) (233)Deferred tax expense under/ (over)estimated in prior year 5 11 - (1)

Tax expense for the year 10,659 3,872 1,414 2,761

29. EARNINGS PER SHARE

(i) Basic earnings per share

The basic earnings per share have been calculated based on the consolidated net profit for the year attributable to equity holders of the Company of RM10,099,000 (2009 : RM6,826,000) and on 142,889,000(2009 :141,701,000) ordinary shares being the weighted average number of ordinary shares in issue duringthe year, as follows:

2010 2009 ’000 ’000

Number of ordinary shares at 1 July 141,701 141,388Effects of shares issued pursuant to exercise of warrants 1,188 313

Weighted average number of ordinary shares at 30 June 142,889 141,701



29. EARNINGS PER SHARE (CONT’D)

(ii) Diluted earnings per share

The diluted earnings per share have been calculated based on the consolidated net profit for the year attributable to equity holders of the Company of RM10,099,000 (2009 : RM6,826,000) and on the weightedaverage number of ordinary shares that would had been issued upon full exercise of the remaining warrantsand adjusted for the number of shares that would had been issued at fair value as follows:

2010 2009 ’000 ’000

Weighted average number of ordinary shares as in (i) 142,785 141,597Number of unissued shares under warrants - based on exercise price 36,307 37,495 - based on average fair value (24,868) (30,734)

Weighted average number of ordinary shares 154,224 148,358

30. DIVIDEND PAID

2010 2009 RM’000 RM’000

Recognised as distribution to equity holders during the year:

First and final dividend of 5% less 25% tax for the financial year ended 30 June 2009 (2009 : First and final dividend of 5% less 25% tax for the financial year ended 30 June 2008) 5,318 5,314

Net dividend per ordinary share (sen) 3.75 3.75

At the forthcoming annual general meeting, a first and final dividend of 5% less 25% tax amounting toRM5,358,319 (3.75 sen per ordinary share) in respect of the financial year ended 30 June 2010 will be proposedfor approval by shareholders.

31. ANALYSIS OF ACQUISITION OF SUBSIDIARY

In 2009, the Company acquired 50% equity interest, representing 1 ordinary share of RM1 each in EkovestBrunsfield Holdings Sdn Bhd, at a cash consideration of RM1. The principal activity of the newly acquired subsidiary is investment holding.

The effects of acquisition of the subsidiary on the consolidated net profit, the consolidated financial positionand consolidated cash flow statement were as follows:

(i) Effect on consolidated net profit for the year ended 30 June 2009:

RM’000

Gross revenue - Cost of sales -

Loss before tax 15 Tax expense -

Decrease in Group’s net profit 15



31. ANALYSIS OF ACQUISITION OF SUBSIDIARY (CONT’D)

(ii) Effect on consolidated financial position at 30 June 2009:

RM’000

Current assets -Current liabilities 15

Decrease in Group’s share of net assets 15

(iii) Effect on consolidated cash flow statement for the year ended 30 June 2009:

Fair value of net assets acquired:

RM

Current assets 2Current liabilities -Minority interests (1)

Total purchase consideration 1

Less:Cash and cash equivalents -

Net cash flows on acquisition 1

32. EMPLOYEES BENEFITS EXPENSE


Salaries, wages, allowances and bonuses - Executive Directors 960 1,171 - - - Other employees 5,181 4,242 2,401 1,764Defined contribution plan - EPF contributions 656 472 262 175Social security costs - SOCSO contributions 37 26 13 11Other benefits expenses 183 203 112 133

7,017 6,114 2,788 2,083



33. RELATED PARTY DISCLOSURES

The Group has controlling related party relationship with its subsidiaries, associates and companies in whichcertain Directors have financial interests.

Significant transactions with related parties during the financial year were as follows:

(a) Transactions with companies in which certain Directors have financial interest:


Progress billings from sub-contractors 125,955 - - - Progress billings to customers 13,602 182,486 - - Purchases of building/construction materials 1,535 2,195 - - Hire of machineries and motor vehicles expense 3,556 3,192 5 - Office rental expense 141 248 - - Hire of machineries and motor vehicles income 1,303 770 1,045 770 Office rental income 222 186 217 186 Sale of property, plant and equipment 599 26 582 - Purchase of property, plant and equipment 20 - - -

(b) Transactions with other related parties


Sub-contractor claims charged by a subsidiary - - 55,628 39,655Hire of machineries and motor vehicles charged to a subsidiary - - 42 44Rental of premises charged to subsidiaries - - 240 240Interest income from a subsidiary - - 3,059 3,476Repayment of advances from subsidiaries - - 34,539 47,015Advances from subsidiaries - - - 482Advances to subsidiaries - - 24,047 49,690Repayment of advances from associates - - - 73Repayment to an associate 12 - 12 -

Compensation paid to key management personnel during the year comprises:


Short term employee benefits - fees 40 40 40 40 - remuneration (salaries, allowances, bonuses and benefit-in-kind) 960 1,189 - -

Total short term employee benefits 1,000 1,229 40 40Post employment benefits - defined contribution plan 115 141 - -

1,115 1,370 40 40



34. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT


Aggregate cost of property, plant and equipment acquired 1,031 11,998 878 633Financed via hire purchase (761) (1,569) (709) (440) 270 10,429 169 193

35. OPERATING LEASE ARRANGEMENTS

(a) The Group as lessor

The Group has entered into cancellable commercial property leases to earn rental income from its investment properties and certain properties included under property, plant and equipment as well asleasehold land classified as prepaid lease payments. These leases have an average tenure of 1 to 3 yearswith an option to renew. The tenants are required to give 2 months’ notice of the termination of theseagreements. The Group does not have any contingent rental arrangements.

(b) The Group as lessee

The Group leases a number of office premises under cancellable operating leases for its operations. Theseleases have an average tenure of 1 to 3 years, with an option to renew. The Group is required to give 2months’ notice for the termination of the agreements.

The Group also leases certain machinery under cancellable operating lease agreements. The Group is required to give 2 month’s notice for the termination of these agreements.

None of the above leases include any contingent rentals and there are no restrictions placed on the Groupby entering into these leases.

36. CAPITAL COMMITMENT


Approved capital expenditure in respect of the purchase of properties, approved but not contracted for 24,381 - - -

37. CONTINGENT LIABILITIES

(a) Unsecured guarantees


Guarantees given in favour of financial institutions for credit facilities granted to subsidiaries - - 37,205 49,601



37. CONTINGENT LIABILITIES (CONT’D)

(b) Litigation

A dispute has arisen between the Company and Shapadu Construction Sdn Bhd (“Defendant”) in respectof five (5) packages of sub-contract works under the New North Klang Straits Bypass Highway Project (“theProject”). The employer for the Project is Lebuhraya Shapadu Sdn Bhd (“Lebuhraya Shapadu”), the holdingcompany of Shapadu.

On 1 August 2000, the Company issued a Notice to Arbitrate. An arbitrator was appointed and both theCompany and Shapadu filed their respective claims and defence. Both the Company and Shapadu haveclosed their cases. The hearing for the arbitration has been adjourned to a date to be fixed.

The Company’s claim against Shapadu are, inter alia, the following:

- the sum of RM29,558,721 on quantum meruit for its loss and damage due to the work carried out under the sub-contract; and/or alternatively

- the sum of RM7,459,356 being the value of the work done uncertified and the sum of RM8,217,961 being the amounts retained as retention monies in respect of work executed and value of goods and material delivered under the sub-contract.

Shapadu’s counter claims against the Company are, inter alia, the following:

- the sum of RM33,010,000 allegedly being the liquidated ascertained damages (“LAD”) due to Shapadu; or alternatively

- the sum of RM30,700,000 being LAD due to Lebuhraya Shapadu;

- the sum of RM2,008,869 as an indemnity for failure to carry-out and maintain the work;

- the sum of RM22,189,860 as an indemnity being the cost of completion;

- the sum of RM8,298,456 as indemnity being damages suffered by Lebuhraya Shapadu in completing the work; and

- the sum of RM2,006,101 as an indemnity being the loss and expense suffered by Lebuhraya Shapadu.

Since the Company has sub-contracted all the relevant work to a third party on a “back to back” basis, andthe third party sub-contractor has agreed to indemnify and keep the Company indemnified against anylosses or damages the Company may suffer in the event of Shapadu’s counter claims being allowed by thecourt, the Company’s Directors are of the opinion that the financial impact on the Group is minimal.

The Company has sought legal advice in respect of the counter claims made by Shapadu and the Company’ssolicitors are of the opinion that the Company has reasonable prospects of defending the counter claims.

38. SEGMENT ANALYSIS

No segment analysis is prepared as the Group is principally engaged in construction operations in Malaysia.



39. FINANCIAL INSTRUMENTS

(a) Credit risk

At balance sheet date, the Group did not have any major concentration of credit risk related to any financialassets except for the exposure of credit risk on trade accounts as follows:

Group 2010 2009 RM’000 RM’000

Companies in which a Director has financial interest 55,956,510 45,391,555Other customers 35,016,245 44,768,767

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in thebalance sheet.

(b) Fair values

The carrying amounts of the financial assets and liabilities as at 30 June 2010 approximate their fair valuesexcept as stated below:

Group Company Carrying Fair Carrying Fair amounts values amounts values RM’000 RM’000 RM’000 RM’000

Other investments - Unquoted shares 164,500 * - -Amount owing by subsidiaries - - 41,297 **

* It is not practical to reasonably estimate the fair values of the unquoted shares due to lack of comparable quoted market prices and available market data for valuation. Therefore, these investments are carried at their original costs less any allowance for diminution in value.

** It is not practical to estimate the fair value of the amount owing by subsidiaries due principally to the absence of fixed repayment terms. However, the Company does not anticipate the carrying amount to be significantly different from the value that it would eventually be settled.

40. SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE

On 20 October 2010, an extra ordinary general meeting was held whereby the shareholders have approved thefollowing proposals:

40.1 Cash subscription of up to RM35million in nominal value of Redeemable Secured Junior Bonds to be issued by Konsortium Lebuhraya Utara-Timur (KL) Sdn. Bhd. (“KESTURI”).

40.2 Tenure of the Redeemable Preference Shares (“RPS”) in KESTURI as refer in note 10 to be extended

for an additional period of 4 years such that the expiry date of the RPS Series A is extended from 19 September 2026 to 19 September 2030.

41. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS

The financial statements were authorised for issue by the Directors on 25 October 2010.


STATEMENTBY DIRECTORS

STATUTORYDECLARATION

In the opinion of the directors, the financial statements set out on pages 34 to 78 are drawn up:

(a) so as to give a true and fair view of the state of affairs of the Group and of the Company at 30 June 2010 andof their results and cash flows for the year then ended; and

(b) in accordance with Financial Reporting Standards and the provisions of the Companies Act 1965.

Signed on behalf of the directors in accordancewith a directors’ resolution dated

25 October 2010

Y. BHG DATO LIM KANG HOO CHO JOY LEONG @ CHO YOK LON Director Director

I, Lim Soo San, being the person primarily responsible for the financial management of Ekovest Berhad do solemnlyand sincerely declare that to the best of my knowledge and belief, the financial statements set out on pages 34 to78 are correct.

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions ofthe Statutory Declarations Act 1960.

Subscribed and solemnly declared at )Kuala Lumpur in the Federal Territory ) ) this 25 October 2010 ) ) ) LIM SOO SAN

Before me:

ARSHAD BIN ABDULLAH (W550)Commissioner for Oaths


MATERIAL LITIGATIONAND OTHER INFORMATIONOF EKOVEST BERHAD AND ITS SUBSIDIARIES

* MATERIAL LITIGATION, CLAIMS AND ARBITRATION OF EKOVEST BERHAD AND ITS SUBSIDIARIES

Save as disclosed below, neither the Company nor its subsidiaries is engaged in any material litigation, claimsor arbitration, either as plaintiff or defendant and the Board are not aware and do not have any knowledge of any proceedings, pending or threatened against the Group or any facts likely to give rise to any proceedingswhich might materially and adversely affect the financial position or business of the Company and its subsidiaries :

(i) A dispute has arisen between Ekovest Berhad (“EB”) or (“Plaintiff”) and Shapadu Construction Sdn Bhd(“Shapadu”) or (“Defendant”) in respect of five (5) packages of sub-contract work under the New NorthKlang Straits Bypass Highway Project (“Project”). The employer for the Project is Lebuhraya Shapadu SdnBhd (“Lebuhraya Shapadu”), the holding company of the Defendant. On 1 August 2000, EB issued a Noticeto Arbitrate. An arbitrator has been appointed and both EB and Shapadu has filed in their respective claimsand defence. The hearing for the arbitration has commenced on 14 August 2006 as scheduled. Both thePlaintiff and the Defendant have closed their cases. The hearing for the arbitration has been adjourned to adate to be fixed. The particulars of EB’s claim and Shapadu’s counter claim are as follows:

(a) EB’s claim against Shapadu for, inter alia, the following:

(aa) the sum of RM29,558,720.93 on a quantum meriut for its loss and damage due to the work carriedout under the sub-contract; and/or alternatively

(bb) the sum of RM7,459,356.15 being the value of the work done uncertified and the sum ofRM8,217,960.68 being the amounts retained as retention monies in respect of work executed andvalue of goods and material delivered under the sub-contract.

(b) Shapadu’s counter claims against EB for , inter alia, the following:

(aa) the sum of RM33,010,000.00 allegedly being the liquidated ascertained damages (“LAD”) due toShapadu; or alternatively

(bb) the sum of RM30,700,000.00 being LAD due to Lebuhraya Shapadu;

(cc) the sum of RM2,008,868.93 as an indemnity for failure to carry-out and maintain the work;

(dd) the sum of RM22,189,859.75 as an indemnity being the cost of completion;

(ee) the sum of RM8,298,455.65 as indemnity being damages suffered by the Employer in completingthe work; and

(ff) the sum of RM2,006,101.39 as an indemnity being the loss and expense suffered by the Employer.

Since EB has sub-contracted all the relevant work to a third party on a “back to back” basis, and the thirdparty sub-contractor has agreed to indemnify and keep EB indemnified against any losses of damages EBmay suffer in the event Shapadu’s counter claim is allowed by the court, EB’s Directors are of the opinionthat the financial impact on the Group is minimal.

Further, EB has sought legal advice in respect of the counter claim made by Shapadu and EB’s solicitorsare of the opinion that EB has a reasonable prospects of defending the claim particularly when the Employerhas not taken an action against the Defendant since most of the claims are on indemnity basis. On thatpremises, the arbitration against Shapadu will not potentially have any material adverse impact to the financial position of the Group.


MATERIAL LITIGATION AND OTHER INFORMATIONOF EKOVEST BERHAD AND ITS SUBSIDIARIES (CONT’D)

* MATERIAL CONTRACTS

Save as disclosed below, neither the Company nor its subsidiaries has entered into any material contracts, notbeing contracts entered into in the ordinary course of business, within the two (2) years immediately precedingthe date of this Annual Report:

The Company has announced on 23 July 2010 the following proposal :

Proposed cash subscription of up to RM35 million in nominal value of redeemable secured junior sukuk (“JuniorSukuk”) to be issued by Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (“Kesturi”) (“Proposed Subscription”).

On this date, the Company has entered into a placement agreement with Kesturi and CIMB Investment BankBerhad (“CIMB”) for the Proposed Subscription. Pursuant to the Agreement, the Company will subscribe forJunior Sukuk through CIMB and/or its affiliates who will act as the primary subscribers subject to fulfillment ofcertain conditions. The issuance of the Junior Sukuk and the payment by the Company for the Proposed Subscription thereof, shall be subject to fulfillment of conditions precedent to the satisfaction of CIMB (who isalso the Lead Arranger and Lead Manager for the issuance of the Junior Sukuk) which include, amongst others,the following:

(i) approval from the Securities Commission and, where applicable, all other regulatory authorities for the issuance of the Junior Sukuk;

(ii) confirmation from the Shariah Adviser that the structure and transaction documents are in compliance withShariah principles; and

(iii) such other conditions precedent as advised by the legal counsel of the Lead Manager.

On 15 September 2010, the Company had :-

(i) entered into a supplemental placement agreement with Kesturi and CIMB to replace the Proposed JuniorSukuk Subscription with the Proposed Junior Bonds Subscription; and

(ii) accepted Kesturi’s request for the Proposed Extension on tenure of redeemable preference shares series A (RPS A) of RM1.00 each in Kesturi subject to approval being obtained from the shareholders the Company.

On 28 October 2010, the Company has completed the subscription of the RM35 million Junior Bonds issuedby Kesturi and the expiry date of the Kesturi RPS A has been extended for an additional period 4 years from 19 September 2026 to 19 September 2030.


MATERIAL LITIGATION AND OTHER INFORMATIONOF EKOVEST BERHAD AND ITS SUBSIDIARIES (CONT’D)

* SHARE BUY-BACK

There was no share buy-back by the Company.

* AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR) PROGRAMME

The Company did not sponsor any ADR or GDR programme.

* SANCTIONS AND/OR PENALTIES IMPOSED

There are no fines or sanctions imposed on the Company and its subsidiaries, directors or management.

* NON AUDIT FEES

There are no non audit fees paid to the external auditors for the financial year ended 30 June 2010.

* PROFIT ESTIMATE, FORECAST OR PROJECTION

The Company did not issue any profit estimate, forecast or projection for the financial year ended 30 June 2010.

* PROFIT GUARANTEE

The Company did not give any profit guarantee.

* OPTIONS, WARRANT OR CONVERTIBLE SECURITIES

On 10 November 2005, 44,799,000 warrants were issued by the Company in conjunctions with the completionof the Right Issue of RM1.00 each in the Company (“Right Shares”) at an issue price of RM1.10 per RightsShare together with 44,799,000 free new detachable warrants (“Warrants”) on the basis of one (1) Rights Sharewith on (1) Warrant for every two (2) existing ordinary shares of RM1.00 each held in the Company. The warrantswere expired on 9 November 2010 and removed from the official list of Bursa Securities on 10 November 2010.The remaining outstanding Warrants which are not exercised by the Expiry Date will lapse and become null andvoid and cease to be exercisable after the Expiry Date. During the financial year ended 30 June 2010, 1,187,600Warrants were converted into ordinary shares of RM1.00 each.

* RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE NATURE OR TRADING NATURE

Pursuant to paragraph 10.09 of the Listing Requirements of Bursa Malaysia Securities Berhad, the Companywill be seeking shareholders’ mandate and additional mandate for the Group to enter into recurrent relatedparty transactions of a revenue or trading nature, at the forthcoming Annual General Meeting of Ekovest Berhadscheduled to be held on 20 December 2010.


ANALYSIS OF SHAREHOLDING

Date of Annual Report : 26 November 2010Statement Date : 11 November 2010

I SUBSTANTIAL SHAREHOLDERS

Direct IndirectNo. Name Shareholdings % Shareholdings %

1. Ekovest Holdings Sdn Bhd 37,250,000 21.51 - -

2. Khoo Nang Seng @ Khoo Nam Seng 17,706,000 10.23 - -

3 Lim Seong Hai Holdings Sdn Bhd 9,836,300 5.68 4,557,300 ^ 2.63

4. Dato’ Lim Kang Hoo 6,757,000 3.90 37,250,000 * 21.51

5. Lim Keng Cheng - - 14,393,600 # 8.31

6. Lim Keng Guan 230,000 0.13 14,393,600 # 8.31

7. Lim Keng Hun - - 14,393,600 # 8.31

8. Lim Pak Lian 504,200 0.29 14,393,600 # 8.31

TOTAL 72,283,500 41.74

II DIRECTORS’ SHAREHOLDINGS

Direct IndirectNo. Name Shareholdings % Shareholdings %

1. Dato’ Lim Kang Hoo 6,757,000 3.90 37,250,000 * 21.51

2. Khoo Nang Seng @ Khoo Nam Seng 17,706,000 10.23 - -

3. Cho Joy Leong @ Cho Yok Lon 246,000 0.14 - -

4. Mohd Salleh Bin Othman - - - -

5. Kang Hui Ling - - - -

TOTAL 24,709,000 14.27

* Deemed interest by virtue of his shareholding in Ekovest Holdings Sdn Bhd

^ Deemed interest by vitue of its shareholding in Fablelite Sdn Bhd

# Deemed interest by virtue of their shareholding in Lim Seong Hai Holdings Sdn Bhd and Fablelite Sdn Bhd


ANALYSIS OF SHAREHOLDING (CONT’D)

Date of Annual Report : 26 November 2010 Statement Date : 11 November 2010

III CLASS OF EQUITY SECURITY

Authorised Share Capital : RM200,000,000

Issued and Fully Paid-up : RM173,132,370

Class of Security : Ordinary Share of RM1.00 each

No. of Shareholders : 3,307

Voting Rights : Each share entitles the holder to 1 vote

IV DISTRIBUTION BY SIZE OF SHAREHOLDINGS

Size of Shareholdings Shareholders % Shareholdings %

Less than 100 22 0.67 715 0.00

100 to 1,000 711 21.50 674,727 0.39

1,001 to 10,000 1,894 57.27 8,561,543 4.95

10,001 to 100,000 570 17.24 17,254,450 9.97

100,001 to less than 5% of issued shares 107 3.24 91,684,935 52.95

5% and above of issued shares 3 0.09 54,956,000 31.74

TOTAL 3,307 100.00 173,132,370 100.00


ANALYSIS OF SHAREHOLDING (CONT’D)

THIRTY (30) LARGEST ORDINARY SHAREHOLDERS

No. Name Shareholdings %

1 Ekovest Holdings Sdn Bhd 23,062,500 13.32

2 Khoo Nang Seng @ Khoo Nam Seng 17,706,000 10.23

3 Ekovest Holdings Sdn Bhd 14,187,500 8.19

4 Dato’ Lim Kang Hoo 6,757,000 3.90

5 Lim Seong Hai Holdings Sdn Bhd 6,121,800 3.54

6 Pembinaan Hamid Abd. Rahman Sdn Bhd 6,005,000 3.47

7 Yap Shing @ Yap Sue Kim 5,471,945 3.16

8 HSBC Nominees (Asing) Sdn Bhd 4,501,800 2.60- Bintang Mas Consulting Ltd

9 OSK Nominees (Tempatan) Sdn Bhd 3,883,950 2.24- Pledged Securities Account for Ngai Sok Fong

10 Lim Seong Hai Holdings Sdn Bhd 3,714,500 2.15

11 Fablelite Sdn Bhd 2,468,600 1.43

12 Fablelite Sdn Bhd 2,088,700 1.21

13 Amanahraya Trustees Bhd 1,931,500 1.12- Public Islamic Opportunities Fund

14 Cimsec Nominees (Tempatan) Sdn Bhd 1,856,600 1.07- CIMB Bank for Mohamad Nor Bin Hamid

15 Koo Siew Yen 1,793,900 1.04

16 Alliancegroup Nominees (Tempatan) Sdn Bhd 1,783,900 1.03- Pheim Asset Management Sdn Bhd for Employees Provident Fund Board

17 Soh Hui Fung 1,783,000 1.03

18 Ekias Sdn Bhd 1,766,800 1.02

19 Tan Lai Leng 1,667,400 0.96

20 Yong Wee Chin 1,653,000 0.95

21 Amsec Nominees (Tempatan) Sdn Bhd 1,595,400 0.92- Pledged Securities Account for Tan Leak Goh

22 Lim Hoe 1,581,000 0.91

23 HLB Nominees (Asing) Sdn Bhd 1,450,000 0.84- Pledged Securities Account for Teo Kok Woon

24 Koh Hong Seng 1,446,700 0.84

25 Lim Lee Suan 1,405,870 0.81

26 Choong Wai Foong 1,376,800 0.80

27 Loh Yu San 1,348,100 0.78

28 ECML Nominees (Tempatan) Sdn Bhd 1,023,200 0.59- Pledged Securities Account for Foo Suet Kum

29 Pembinaan Hamid Abd. Rahman Sdn Bhd 965,600 0.56

30 Tung Foong Ngoh 910,900 0.53


PARTICULARS OFPROPERTIESFOR THE YEAR ENDED 30 JUNE 2010

LAND AREA# (sq.metres)/ NET BUILT-UP COST/ BOOK LAND AREA^ REVALUATION VALUE LOCATION AGE TENURE DESCRIPTION (sq. metres) (RM’000) (RM’000)

Lot 22520 in Taman 24 years Freehold 4 ½ storey office 686# 6,000 3,907Sri Setapak, Kuala Lumpur building know as (DOA: 25-08-1990) Wisma Ekovest(Revalued on 13-04-1992) for own use Lot 14238, 14239, 14250 to N/A Freehold Vacant land 1,120# 382 38214254 in Taman Sri Setapak, used asKuala Lumpur. car park(DOA: 25-08-1990)(Revalued on 15-05-1992) MDLD 1448 Lot 8, Block D, 24 years Leasehold 3-storey light 168# 300 300Hope Ley Light Industrial 60 years industrial shopShophouse in Lahad Datu, Unexpired house useSabah 23 years as branch(DOA: 30-10-1990) office(Revalued on 02-06-1992) Parcel No.8 with accessory 19 years Freehold No.284-06-01 115^ 170 170parcel No.109 of building Heritageerected on part of land held Condominiums,under geran No. 10554 for 3 ½ Mile JalanLot 438 Section 85, Pahang, 53000town of Kuala Lumpur. Kuala Lumpur(DOA: 22-11-1996) Part of lands held under 12 years Freehold 4 storey shop 230# 450 450Grant 157 Lot 3828, office in MukimGrant 29293 Lot 23043, of SenaiCT 1216 Lot 3764 and – Kulai, JohorH.S.(D) 342236 P.T.NO 50687 Mukim Senai – Kulai, District of Johor Bahru, State of Johor.(DOA: 06-12-1996) Part of lands held under 7 years Freehold 8 units of resort 202^ 4,970 4,970Geran 250679 Lot 45370 apartment in Bandar Johor Bahru. Lot 20704, Batu (DOA: 15-01-2001) 4 ½ Jalan Skudai, 80200 Johor Bahru. Part of lands held under 7 years Freehold 3 units of resort 197^ 3,600 3,600Geran 250679 Lot 45370 apartment in Lot Bandar Johor Bahru. 20704, Batu 4 ½(DOA: 07-02-2002) Jalan Skudai, 80200

Johor Bahru.

Part of lands held under 6 years Freehold 7 units of resort 376^ 6,550 6,550Geran 250679 Lot 45370 86 years Bandar Johor Bahru. apartment in Lot(DOA: 24-11-2005) 20704, Batu 4 ½ Jalan Skudai. 80200 Johor Bahru


PARTICULARS OF PROPERTIESFOR THE YEAR ENDED 30 JUNE 2010 (CONT’D)


Lot 9762 to 9776 and Lot 9780 N/A Leasehold Vacant Land 1,962# 1,365 1,306 to 9782 Mukim of Setapak, 99 years District of Kuala Lumpur, UnexpiredWilayah Persekutuan 69 years(DOA: 11-04-2007) Lot 14256 to 14259 Mukim of N/A Freehold Vacant Land 208# 151 151Setapak, District of Kuala Lumpur, Wilayah Persekutuan(DOA: 11-04-2007) Lot 41323 PN 35406 * N/A Leasehold Vacant Land 21,010# 14,628 12,822(formerly PT 1569 HSD 40726) 99 years Cheras Mukim & District of UnexpiredKuala Lumpur. 71 years(DOA: 04-02-2000) Geran 9106 Lot 41385, * N/A Freehold Vacant Land 2,642# 4,681 4,681Mukim Kuala Lumpur.(DOA: 31-03-2005) Geran 17376 Lot 51449, * N/A Freehold Vacant Land 4,534# 5,838 5,838Mukim Kuala Lumpur.(DOA: 31-03-2005) Geran 49665 Lot 54972, * N/A Freehold Vacant Land 17,757# 3,839 3,839Mukim Kuala Lumpur.(DOA: 31-03-2005) H.S.(D) 110042 PT 7174 * N/A Freehold Vacant Land 2,460# 674 674Mukim Kuala Lumpur.(DOA: 31-03-2005) Geran 28520 Lot 152 * N/A Freehold Vacant Land 1,372# 1,613 1,613Mukim Kuala Lumpur(DOA: 25-05-2007) Part of lands held under ** 8 years Leasehold 22 units of shop 3,474^ 2,580 2,580H.S. (D) 69562, PT 34444. 99 years office in Mukim (DOA: 01-03-2002) Unexpired of Kajang, Ulu 91 years Langat, Selangor

GM 542, Lot 219, *** N/A Freehold Vacant Land 9,910# 1,854 1,854Mukim Setapak,Setapak Garden, Kuala Lumpur.(DOA: 12-08-2002) Geran 20722 Lot 297, *** N/A Freehold Vacant Land 5,683# 9,695 9,695Geran 20723 Lot 298, Geran 20724 Lot 299, Geran 20725 Lot 300 and Geran 20726 Lot 301 Section 85, town of Kuala Lumpur.(DOA: 14-08-2006)


Lot 9460 to 9578, Mukim *** N/A Freehold Vacant Land 23,472# 20,077 20,077 Setapak, K.L (118 titles)(DOA: 09-07-2007) Geran 57616 Lot 520, *** N/A Freehold Vacant Land 4,658# 9,997 9,997Geran 57617 Lot 521, Section 85, town of Kuala Lumpur.(DOA: 17-12-2007) Geran 43451 Lot 923 **** N/A Freehold Vacant Land 101,606# 6,208 6,208and Geran 94689 Lot 675 Mukim Pulai, Daerah Johor Bahru.(DOA: 03-03-2004) H.S.(D) 30366 ***** 13 years Freehold 6 units of one and 1,690# 875 875 P.T 3920 and H.S.(D) 17868 half story terraceP.T 382 Mukim of Serendah, factories and a District of Ulu Selangor, double story Selangor Darul Ehsan. terrace house in(DOA: 08-01-1997) Mukim of Serendah, Selangor Darul Ehsan Part of lands held ****** 5 years Leasehold 17 units of 1,320^ 1,722 1,722under H.S.(D) 69570, 99 years Medium CostPT 34452, Mukim of Kajang. Unexpired apartment in (DOA: 23-06-2006) 91 years Mukim of Kajang, Ulu Langat, Selangor Darul Ehsan No. G-3, No. 1-3, No. 2-3 ****** 1 year Freehold 3-Storey 305^ 1,150 1,150Block 4, Danga Bay, Jalan Shop OfficeSkudai, 80200 Johor Bahru.(DOA: 25-06-2010)

No. G-12, No. 1-12, 1 year Freehold 3-Storey 305^ 1,096 1,096No. 2-12 ****** Shop OfficeBlock 4, Danga Bay, Jalan Skudai, 80200 Johor Bahru.(DOA: 25-06-2010) No. G-2, No. 1-2, No. 2-2 ****** 1 year Freehold 3-Storey 312^ 1,150 1,150Block 7, Danga Bay, Jalan Shop OfficeSkudai, 80200 Johor Bahru. (DOA: 25-06-2010) No. G-23, No. 1-23, 1 year Freehold 3-Storey 312^ 1,096 1096No. 2-23 ****** Shop OfficeBlock 7, Danga Bay, Jalan Skudai, 80200 Johor Bahru.(DOA: 25-06-2010)






No. G-31, No. 1-31, 1 year Freehold 3-Storey 312^ 1,096 1,096No. 2-31 ****** Shop OfficeBlock 7, Danga Bay, Jalan Skudai, 80200 Johor Bahru.(DOA: 25-06-2010)

No. G-33, No. 1-33, 1 year Freehold 4-Storey 554^ 1,616 1,616No. 2-33, No. 3-33 ****** Shop OfficeBlock 7, Danga Bay, Jalan Skudai, 80200 Johor Bahru.(DOA: 25-06-2010) Geran Mukim 2026 ******* N/A Freehold Vacant Land 7,298# 13,829 13,829 Lot 436, Section 85, town of Kuala Lumpur.(DOA: 13-11-2007)

Note: DOA: Date of Acquisition.-Refers to Sales and Purchase Agreement.

The Group has applied the transitional provision of FRS 116 : Property, Plant and Equipment, to retain the revalued amountas if it is at the cost basis. It is not the Group’s policy to carry out regular valuations of its property, plant and equipment.The revaluation carried out on the first 3 stated properties on 13-04-1992, 15-05-1992 and 02-06-1992 respectively was aone off exercise, and the carrying amount of the revalued properties has been retained on the basis of their previousrevaluation as surrogate cost. Accordingly, this valuation has not been updated. There were no revaluation done on theother properties.

* Registered under Prompt Capital Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.

** Registered under Binawani Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.

*** Registered under Ekovest Properties Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.

**** Registered under Timur Terang Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.

***** Registered under Saujarena Bina Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.

****** Registered under Ekovest Construction Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.

******* Registered under Ekovest Land Sdn Bhd, a wholly owned subsidiary of Ekovest Berhad.


APPENDIX 1

EXISTING ARTICLE

Article 143

Payment by cheque

Any dividend, interest or other money payable incash in respect of shares may be paid by cheque orwarrant, sent through the post directed to the registered address of the holder or to such personand to such address as the holder may in writing direct. Every such cheque or warrant shall be madepayable to the order of the person to whom it is sent,and the payment of any such cheque or warrant shall operate as a good discharge to the Company in respect of the money represented thereby irrespective of any circumstances. Every suchcheque or warrant shall be sent at the risk of the person entitled to the money thereby represented.

NEW ARTICLE

Article 143

Payment of dividend

Subject to the provisions of the Listing Requirements and the Rules, any dividend, interest or other money payable in cash in respect ofshares may be paid via electronic means or bycheque or warrant, sent through the post directed tothe registered address of the holder or to such person and to such address as the holder may in writing direct. Every such cheque or warrant or electronic transfer or remittance shall be madepayable to the order of the person to whom it is sent, and the payment of any such cheque or warrant or via electronic means shall operate as a good discharge to the Company in respect of the money represented thereby irrespective ofany circumstances. Every such cheque or warrant orelectronic transfer or remittance shall be sent atthe risk of the person entitled to the money therebyrepresented.

I/We________________________________________________________________________________________________

of_____________________________________________________________________________________________________

being a member of the abovenamed Company hereby appoint______________________________________________

of____________________________________________________________________________________________or failing

whom,_______________________________________________________________________________________________

of___________________________________________________________________________________________________

or the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the Twenty-Fifth AnnualGeneral Meeting of the Company to be held at Grand Seasons Hotel, 72 Jalan Pahang, 53000 Kuala Lumpur on 20December 2010 at 11.00 a.m. and, at any adjournment thereof.

My/Our proxy is to vote either on a show of hands or on a poll as indicated below with an “X”.

NO. RESOLUTIONS FOR AGAINST

1. Adoption of Audited Financial Statements (Resolution 1)

2. Re-election of En. Mohd Salleh Bin Othman (Resolution 2)

3. Re-election of Mr. Khoo Nang Seng @ Khoo Nam Seng (Resolution 3)

4. Approval of Directors’ Fees (Resolution 4)

5. Declaration of First and Final Dividend (Resolution 5)

6. Appointment of Auditors (Resolution 6)

7. Special Resolution 1Proposed amendments to the Articles of Association (Resolution 7)

Ordinary Resolution 1Authorisation pursuant to Section 132D (Resolution 8)

Ordinary Resolution 2 Proposed Renewal of Shareholders’ Mandate and Additional Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature (Resolution 9)

Dated this _________ day of ________________ 2010.

Number of shares held

____________________________________Signature (s) of Shareholder (s)

Notes:

1. A member shall be entitled to appoint not more than two (2) proxies to attend and vote at the meeting provided that wherea member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportion of his shareholdingsto be represented by each proxy.

2. A proxy may but need not be a member of the Company, and the provisions of Section 149(1)(b) of the Companies Act, 1965shall not apply.

3. If the appointor is a corporation, this proxy form must be executed under its common seal or under the hand of an officer orattorney duly authorised.

4. To be valid, this proxy form, duly completed must be deposited at the Registered Office not less than forty eight (48) hoursbefore the time for holding the meeting or any adjournment thereof.

EKOVEST BERHAD (132493-D)(Incorporated in Malaysia)

FORM OF PROXY

THE COMPANY SECRETARY

EKOVEST BERHAD(132493-D)

33-35, GROUND FLOOR, WISMA EKOVEST,JALAN DESA GOMBAK 6,

TAMAN SRI SETAPAK,OFF JALAN GOMBAK,

53000 KUALA LUMPUR.

AFFIXSTAMP

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