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12•UOA DEVELOPMENT BHDAnnualReport2011
1 The Star Step Up Sponsorship Programme
CORPORATESOCIAL RESPONSIBILITY
EDUCATION
Recognising the predominance andimportance of English to our futuregeneration, the Group worked inclose collaboration with The Starnewspaper,Malaysia’sleadingEnglishdaily, to nurture and encourage thelearningofEnglishlanguageamongstvernacularschoolstudents.In line with its aspiration to helpstudentsto improvetheirproficiencyin the international language, theGroupsponsoredRM50,000forStepUp, The Star’s education pullout– a segment dedicated to helpingstudents inYearsFour, FiveandSix
to effectively improve their Englishlanguage skills through interestinglanguage strengthening exercisesandfunsyllabus-basedcontents.
Thepulloutisintendedtoinspireandcultivate a genuine interest in theEnglish language amongst today’syouth, thus laying down the solidgroundworkfortheirfuturesuccess.
COMMUNITYACTIVITIES
The Group also supports sociallyresponsible initiatives undertaken bySuria Bangsar South, a communitycentre operated by SoroptimistInternationalClubofBangsar (SICB)andsponsoredbytheGroup.
Suria Bangsar South - a jointinitiative of SICB and the Group -offers educational support and skilldevelopmentprogrammesforwomenandyounggirlslivinginthelowcostflats.
Thecommunitycentrerunsintandemwith four programme focus goalsnamelyequityandequalityforwomenand girls, living in safe and healthyenvironments, access to education,and development of leadership andpracticalskills.
• The Group introduced an on-going community programme,Caring For The Young by SuriaBangsar South, held in supportof theMinistryofHealth’s (MOH)effort to educate the publicabout the potential danger ofBisphenol-A(BPA),whichisusedin polycarbonate to make infantmilkbottles.
For UOA Development Bhd (the “Group”), CorporateSocialResponsibility(CSR)playsanintegralpartofthecompany’scorecultureinbuildingexcellence.In2011,the Group focused its CSR initiatives in the areas ofeducationandcommunityactivities.
1
UOA DEVELOPMENT BHDAnnualReport2011•13
Theprogrammewasinitiatedtopromoteawarenessonchildren’swell being through educationaltalks and activities for motherswithyoungchildren.
A total of 150 children, aged 2and below, received hamperscomprising BPA-free infantmilk bottles and baby toiletriescourtesyoftheGroup.Insupportof the community initiative,families of the recipients alsobroughtintheiroldbabybottlesinexchange for thesafe-to-usenewones.
• InconjunctionwiththeHariRayafestive celebration, an annualMajlis Hari Raya at BangsarSouth was held to add somecheer to 120 single mothersand their children from theneighbouring community in thetruespiritofsharingandgiving.
The event also served as anideal platform to introducevarious new skill developmentprogrammes including sewing,cooking and beading classesofferedbySuriaBangsarSouthto the single mothers andencouragetheirparticipationforthebettermentoftheirlivelihood.
• A book collection drive wasorganisedinsupportoftheSuriaBangsar South Mini Libraryproject to promote educationaspartof theskilldevelopmentprogramme.
Morethan200children’sbooksinMalayandEnglish–pre-school,primary and secondary schoolbooks, picture dictionaries,encyclopedias, how-to booksaswellasfictionalstorybooks–werecollectedfromthestaffforthecampaign.
All the collected books wereplaced at the Suria BangsarSouth library for the children’sperusal. In the near future,SICB intends to conduct storytelling sessions, arts and craftsclasses to benefit childrenfrom low income families in theneighbourhood.
• SuriaBangsarSouthconductedaPersonalSafetyWorkshopforchildrenbelow13yearsold.Thechildren were taught the FiveGoldenRulesofPersonalSafetyto recognise possible dangersigns and unsafe situations.Theworkshopwasheldwiththeobjective to provide practicaladviceonkeepingchildrensafefromharm,whetheritisathome,in school,or in thesurroundingneighbourhoods.
TheGroupsupportstheimportanceof such engaging initiatives asthey form the basis of a caringcommunitywiththeaimtoimprovethesocietyandenvironmentwithintheKampungKerinchivicinity.
CorporateSocialResponsibilities(Cont’d)
2
3
4
2 Caring For The Young Programme3 & 4 Majlis Hari Raya
14 • UOA DEVELOPMENT BHD Annual Report 2011
CORPORATEINFORMATION
BOARD OF DIRECTORS
Tan Sri Dato’ Alwi bin Jantan (Chairman/Independent Non-ExecutiveDirector)
Kong Chong Soon @ Chi Suim (ManagingDirector/ Non-IndependentDirector)
Kong Pak Lim (ExecutiveDirector/ Non-IndependentDirector)
Tan Chok Kian Alphonsus (IndependentNon-ExecutiveDirector)
Alan Charles Winduss (Non-Independent Non-ExecutiveDirector)
AUDIT COMMITTEE
Tan Chok Kian Alphonsus (Chairman,Independent Non-ExecutiveDirector)
Tan Sri Dato’ Alwi bin Jantan (IndependentNon-ExecutiveDirector)(Resignedon28March2012)
Alan Charles Winduss (Non-Independent Non-ExecutiveDirector)
NOMINATION AND REMUNERATION COMMITTEE
Tan Chok Kian Alphonsus (Chairman,Independent Non-ExecutiveDirector)
Tan Sri Dato’ Alwi bin Jantan (IndependentNon-ExecutiveDirecctor)
Alan Charles Winduss (Non-Independent Non-ExecutiveDirector)
SECRETARIES
Yap Kai Weng (MAICSANo:74580)
Wong Yoke Leng (MAICSANo:7032314)
REGISTERED OFFICE
No. 9, Jalan Indah 16Taman Cheras Indah56100 Kuala LumpurTel No: +603-9287 1000Fax No: +603-9287 2000
SHARE REGISTRAR
Symphony Share Registrars Sdn BhdLevel 6, Symphony HousePusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangorTel No: +603-7841 8000Fax No: +603-7841 8151
PRINCIPAL PLACEOF BUSINESS
Wisma UOA Bangsar SouthTower 1, Avenue 3The Horizon, Bangsar SouthNo. 8, Jalan Kerinchi59200 Kuala LumpurTel No: +603-2245 9188Fax No: +603-2245 9198
AUDITORS
Mazars (AF: 1954)Wisma Selangor Dredging7th Floor, South Block142-A, Jalan Ampang,50450 Kuala LumpurTel No: +603-2161 5222Fax No: +603-2161 3909
PRINCIPAL BANKERS
AmBank BerhadHSBC Bank Malaysia BerhadRHB Bank BerhadUnited Overseas Bank (M) Bhd
STOCK EXCHANGE LISTING
Bursa Malaysia Securities Berhad
STOCK CODE
5200
WEBSITE
www.uoadev.com.my
INVESTOR RELATIONS
Email: [email protected] No: 1-300-88-6668
UOA DEVELOPMENT BHDAnnualReport2011•15
FINANCIALCALENDAR
FINANCIALYEAR
1Januaryto31December2011
LISTEDONBURSAMALAYSIA 8June2011
ANNOUNCEMENTOFQUARTERLYRESULTS 23August2011–announcementofunauditedconsolidatedresult for
thesecondquarterended30June2011
23November2011–announcementofunauditedconsolidatedresultforthethirdquarterended30September2011
23February2012–announcementofunauditedconsolidatedresultforthefourthquarterended31December2011
ANNUALREPORT&ANNUALGENERALMEETING
7May2012–dateofnoticeof8thAnnualGeneralMeetinganddateofissuanceofAnnualReport2011
29May2012–dateof8thAnnualGeneralMeeting
DIVIDEND Tobeapprovedatthe8thAnnualGeneralMeeting
16•UOA DEVELOPMENT BHDAnnualReport2011
SubsidiaryLegend:
Associate Company
CORPORATESTRUCTURE
100%
100%
54%
60%
70%
60%
100%
100%
100%
100%
100% 100%
100%
60%
100%
100%
100%
85%
100%
100%
100%
100%
100%
85%
100%
UOA Development Bhd
Magna Tiara Development Sdn Bhd
IDP Industrial Development Sdn Bhd
Sunny Uptown Sdn Bhd
Peninsular Home Sdn Bhd
Magna Kelana Development Sdn Bhd
Scenic Point Development Sdn Bhd
Ceylon Hills Sdn Bhd
Allied Engineering Construction Sdn Bhd
UOA Hospitality Sdn Bhd
Everise Project Sdn Bhd
Windsor Triumph Sdn Bhd
Saujanis Sdn Bhd
Everise Tiara (M) Sdn Bhd
Paramount Hills Sdn Bhd
Sagaharta Sdn Bhd
Paramount Properties Sdn Bhd
Seri Tiara Development Sdn Bhd
UOA Properties Sdn Bhd
Dynasty Portfolio Sdn Bhd
Lencana Harapan Sdn Bhd
Bangsar South City Sdn Bhd
Nasib Unggul Sdn Bhd
Enchant Heritage Sdn Bhd
Tunjang Idaman Sdn Bhd
100%
39%
URCEngineeringSdnBhd
KumpulanSejahteraSdnBhd
TiarawoodsSdnBhd
UOA DEVELOPMENT BHDAnnualReport2011•17
BOARD OFDIRECTORS
KongChongSoon@ChiSuim(ManagingDirector/Non-IndependentDirector)
AlanCharlesWinduss(Non-IndependentNon-ExecutiveDirector)
TanChokKianAlphonsus(IndependentNon-ExecutiveDirector)
TanSriDato’AlwibinJantan(Chairman/IndependentNon-ExecutiveDirector)
KongPakLim(ExecutiveDirector/Non-IndependentDirector)
from right to left
18•UOA DEVELOPMENT BHDAnnualReport2011
PROFILE OF BOARD OF DIRECTORS
Tan Sri Dato’ Alwi bin Jantangraduated from University Malayawith a Bachelor of Arts (Honours)degree in 1958. While in the publicservice, he also obtained a diplomafromtheStateTechniqueInternationald’Archives, Paris and an honorarydegree from the University of Romein 1966 and 1979 respectively. In1980, he attended the AdvancedManagement Programme at theHarvardGraduateSchoolofBusiness.Tan Sri Dato’ Alwi bin Jantan was aUNESCOFellowaswellasa formerPresident of the Harvard BusinessSchoolAlumniClubofMalaysia.
He does not have any familyrelationshipwithanyDirectorand/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.
KongChongSoon@ChiSuim(ManagingDirector/Non-IndependentDirector)
Kong Chong Soon @ Chi Suim,Malaysian, aged 70, was appointedDirector of UOA on 27 May 2004.He is responsible for the overallgroup management and strategydevelopment.Hehasover30yearsexperience in the construction andproperty development industries,both inSingaporeandMalaysia.HeplayedakeyroleasProjectAdvisortotheHarapangroupofcompanieswhere he was instrumentalin overseeing the successfulconstructionofthreeinternationally-ratedhotelsinSingapore,namelytheHotelMeridien,theGlassHotelandtheChangiMeridienHotel,valuedinexcess of SGD866.0 million, duringthe1970sand1980s.
In 1987, he co-founded UOA andspearheaded our Parent Group’srapid growth in Malaysia. Overthe last 21 years, our ParentGroup together with our Grouphas successfully completednumerous residential, industrial andcommercialdevelopmentsinvariouspartsofKualaLumpur.Hehasinthepast served in various capacities inseveralpublic-listedcompaniesbothin Malaysia and Singapore whichincluded Raleigh Bhd, Town andCity Properties Ltd and Tuan SingHoldingsLtd.
HegraduatedwithanAssociateshipin Civil Engineering from the thenPerthTechnicalCollege(nowknownasCurtinUniversity)in1964andisamemberof theCharteredEngineersofAustralia.
He does not have any familyrelationship with any Director and/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.
TANSRIDATO’ALWIBINJANTAN(Chairman/IndependentNon-ExecutiveDirector)
Tan Sri Dato’ Alwi bin Jantan,Malaysian,aged76, istheChairmanand Independent Non-ExecutiveDirector. He was appointed on24 January 2011 and is also amember of the Nomination andRemuneration Committee. He hashad a distinguished career in publicserviceinMalaysiaculminatingastheDirectorGeneralofPublicService,apositionheheld forover threeyearsuntilhis retirement inApril1990.Hisother notable appointments wereas Secretary General, Ministry ofAgriculture (1984 – 1987), DeputySecretary General, Prime Minister’sDepartment(1981–1984),SecretaryGeneral, Ministry of Health (1977 –1981), Secretary General, Ministryof Local Government and FederalTerritory (1976 – 1977), StateSecretary, Selangor (1972 – 1976)and Director General of NationalArchives and Library (1966 – 1971).He concurrently served as PrivateSecretary toHisRoyalHighness theTimbalan Yang di Pertuan Agongbetween1961and1962andin1965.
Uponhisretirementafter32yearsinthepublicservice,hejoinedGentingMalaysiaBerhad (formerlyknownasResorts World Bhd) as an ExecutiveVice President – Public Affairs andHuman Resources in 1990. He wasredesignated as Executive Directorin 2007 and is currently a Non-IndependentNon-ExecutiveDirector.HealsositsontheboardofHiapTeckVentureBhd,acompanylistedontheMainMarketofBursaSecurities.
UOA DEVELOPMENT BHDAnnualReport2011•19
ProfileofBoardofDirectors(Cont’d)
TanChokKianAlphonsus(IndependentNon-ExecutiveDirector)
Tan Chok Kian Alphonsus, aSingaporean, aged 80, is theIndependent Non-Executive Directorand was appointed as Directoron 24 January 2011. He is alsothe Chairman of both the AuditCommittee and Nomination andRemuneration Committee. He hasheld various senior appointments intheSingaporecivilservicefrom1956untilhis retirement in1986 includingthepositionsofPermanentSecretaryintheMinistryofFinance,theMinistryof Social Affairs and the Ministryof National Development. He wasChairman of the Central ProvidentFundBoardandwasappointedtothepositionsofActingVice-Chancellor/DirectorGeneral,NanyangUniversityand Chairman of the Post OfficeSavingsBankofSingapore.
Followinghisretirementfromthecivilservice,hewasappointedExecutiveChairman of the Stock Exchange ofSingaporeLimitedbetween1987and1989andservedasSingapore’straderepresentative to Taipei between1988and1991.MrTanpresentlysitsas Non-Executive Chairman of TatHongHoldingsLtd,acompanylistedon the Main Board of the SGX-STwhichspecialisesintheinternationalsupply of heavy machinery andequipment as well as Asia PacificInvestmentCompanyLtd,apropertyinvestmentcompanyassociatedwiththe Lend Lease Group of Australia.Hewasappointedthenon-executiveChairmanof theSecurities InvestorsAssociationofSingaporein2007.
He graduated with a Bachelor ofArts degree with Honours from theUniversityofMalayain1955.
He does not have any familyrelationshipwithanyDirectorand/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.
AlanCharlesWinduss(Non-IndependentNon-ExecutiveDirector)
Alan Charles Winduss, Australian,aged 70, was appointed Directorof UOA on 24 January 2011 andmember of Audit Committee andNomination and RemunerationCommitteeofUOA.HeisaDirectorofWinduss&AssociatesPtyLtd.Hehasbeeninvolvedintheprofessionalaccounting public practice for over25 years, specialising in mattersrelating to corporate management,restructuring, corporate financeand company secretarial mattersincluding the Australian SecuritiesExchange (“ASX”) and theAustralian Securities Exchangeand Investments Commissioncompliance.TheaccountingpracticeofWinduss&AssociatesPtyLtdlistsamong itsfieldofexpertisemattersrelating to property development,management and ownership. HesitsontheBoardoffourcompanieslisted on the ASX including asNon-Executive Chairman of QuestMinerals Limited and serves on theBoard of Australian incorporatedprivatelistedcompanies.
Mr Winduss graduated from PerthTechnical College (now known asCurtin University) with a Diplomain Accounting in 1963. He is amember of various professionalbodies including the Instituteof Chartered Accountants inAustralia and the Certified PublicAccountants Australia. In addition,he is an Associate Fellow of theAustralian Institute of Management,a Fellow of the Taxation Institute ofAustralia, a Fellow of the AustralianInstitute of Company Directors andis a registered Australian CompanyAuditor.
He does not have any familyrelationship with any Director and/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.
KongPakLim(ExecutiveDirector/Non-IndependentDirector)
Kong Pak Lim, Malaysian, aged 59,wasappointedDirectorofUOAon27May2004.Heoverseestheplanningand designs of our commercialand residential projects and is alsoresponsible for the identificationand negotiations of all new landacquisitions.
He has over 20 years of experiencein the construction, mining andproperty development industriesin both Malaysia and Australia. Hehas worked extensively in variouscapacities in Australia, among themasaProjectEngineerinDavisWemcoin charge of mining design andconstruction and material handlingandasaDirectorofFerroEngineeringPtyLtdresponsibleforstructuralandmechanicalfabricationofoilandgasandminingequipment.
He co-founded UOA with Mr KongChongSoon@ChiSuimandplayedan integral part in spearheading theParentGroup’sandtheGroup’srapidgrowthovertheyears.
He graduated with a Bachelor ofEngineeringdegreewithHonoursfromtheUniversityofWesternAustraliain1975.HeisamemberoftheInstituteofEngineersAustralia,theAustralianInstituteofManagement,theInstituteof Engineers Malaysia and theAssociationofProfessionalEngineersMalaysia.
He does not have any familyrelationshipwithanyDirectorand/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.
20•UOA DEVELOPMENT BHDAnnualReport2011
Thekeymanagementteamisresponsiblefortheday-to-daymanagementandoperations.Thekeymanagementteamconsistsofexperiencedpersonnelinchargeofmattersrelatedtoconstruction,humanresource,corporateaffairs,riskmanagement,legalandcorporatesecretariat,financeandadministration.
Themembersofthekeymanagementteam,asat31December2011,areasfollows:
Name Nationality Age Designation
KongChongSoon@ChiSuim Malaysian 70 ManagingDirector
KongPakLim Malaysian 59 ExecutiveDirector
CeceliaChan Singaporean 57 PropertyDirector
TongEePing Malaysian 53 ChiefOperatingOfficer(Construction)
KhorSooBeng Malaysian 48 ChiefOperatingOfficer(Development)
AngKhengIm Malaysian 46 ChiefFinancialOfficer
TongEePing(ChiefOperatingOfficer-Construction)
Tong Ee Ping, aged 53, whois our Chief Operating Officer(Construction) has been with ourParent Group since 1988 and hasbeen responsible for overseeingour Parent Group’s constructionactivities undertaken through AlliedEngineering Construction Sdn Bhdand URC Engineering Sdn Bhd.FollowingtheReorganisation,hewastransferred to our Company. Priorto joining our Parent Group and ourGroup, he was Senior Site Foremanat Progressive Builders Pte Ltdbetween 1985 and 1988 where hesupervisedbuildingworks.HeholdsaBachelorofScienceinBioChemistrydegree with Honours from PunjabAgricultural University where hegraduatedin1981.
CeceliaChan(PropertyDirector)
CeceliaChan,aged57,wasappointedasPropertyDirectorofUOAHoldingsSdn Bhd since 1989, a position sheheld until the establishment of UOAReal Estate Investment Trust (UOAREIT) in 2005 where she was thenappointedasChiefExecutiveOfficerof UOA Asset Management SdnBhd (Asset Manager for UOA REIT)in2005,apositionshehelduntilherresignationon14January2011.WhilstatUOAAssetManagementSdnBhd,sheoversawthepropertyleasingandbuilding management activities ofUOAREIT.Priortothis,sheheldthepositionofPropertyDirectoratUOAHoldings Sdn Bhd between 1989and 2004 and was responsible forleadingandformulatingitsmarketingand sales strategies. Following theReorganisation, she was transferredtoourCompanyandredesignatedasour Property Director. Before joiningour Parent Group, she held variouspositions in a number of privateproperty development companiesin Singapore. She graduated fromYMCA in 1974 with a Diploma inMarketingManagement.
KEY MANAGEMENTTEAM
UOA DEVELOPMENT BHDAnnualReport2011•21
AngKhengIm(ChiefFinancialOfficer)
Ang Kheng Im, aged 46, has beenthe Finance Director and ChiefFinancial Officer of our ParentGroup since 1994. She is not onlyresponsible for our finance andaccounts departments but alsooverseestheinternalcontrolfunction,company secretarial compliance,tax compliance, managementinformationsystemandlegalmatters.Following the Reorganisation, shewas transferred to our Company.Prior to this, she spent four yearsas a Senior Auditor at Khoo Wongand Chan. She completed the finalyear of professional education atEmile Woolf College, London, UK in1992 and obtained her professionalqualification from the Association ofChartered Certified Accountants inLondon,UKinthesameyear.Sheisa Chartered Accountant of Malaysiaand is a member of the MalaysianInstituteofAccountants.
KeyManagementTeam(Cont’d)
KhorSooBeng(ChiefOperatingOfficer-Development)
Khor Soo Beng, aged 48, whois our Chief Operating Officer(Development) has been with theParent Group since 1994 and hasbeenresponsibleforprojectplanningand development and overseeingour Parent Group’s contracts, M&Etechnical,facilitiesmanagementandsecuritydepartments. Following theReorganisation, he was transferredto our Company. Prior to joiningourParentGroup,hewasaProjectManageratHCProjectManagementConsultants between 1993 and1994. Prior to that, between 1990and1993,hewasaProjectManagerand Project Quantity Surveyor forMCB Management Services SdnBhd.Currently,he isalsoadirectorofUOAAssetManagementSdnBhd,theAssetManagerofUOAREIT.HegraduatedwithaBachelorofScienceinBuildingdegreewithHonoursfromtheUniversityofUlster,UKin1990.He is alsoan incorporatedmember(ICIOB)of theChartered InstituteofBuilding,UK.
22•UOA DEVELOPMENT BHDAnnualReport2011
TheBoardofDirectors (“theBoard”)ofUOADevelopmentBerhadfullyappreciatesthe importanceofadoptingtheprinciplesandbestpracticesoftheMalaysianCodeonCorporateGovernance(“theCode”).TheBoardundertakesfullaccountabilityandtransparencyofactionstowardscreationofwealthinachievingtheshorttermandlongtermshareholders’value.
Assuch,theBoardstrivestoadoptthesubstancebehindcorporategovernanceprescriptionsandnotmerelytheform.TheBoardispleasedtoprovideanarrativestatementontheapplicationofthePrinciplesandtheextentofcompliancewiththeBestPracticesassetoutinParts1and2oftheCodeaswellastherelevantprovisionsintheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“ListingRequirements”).
A. BOARD OF DIRECTORS Board Responsibilities
The Board is responsible for the overall corporate governance of the Group, including its strategic direction,overseeingtheproperconductoftheGroup’sbusiness,identifyingprincipalrisksandensuringtheimplementationof systems to manage risks, succession planning, developing an investor relations program, reviewing theadequacyandintegrityoftheGroup’sinternalcontrolsystemsandmanagementinformationsystems,establishinggoalsformanagementandmonitoringtheachievementofthesegoals.
Supply of Information
TheBoardrecognisesthatthedecisionmakingprocessishighlydependentonthequalityofinformationfurnished.Assuch,theBoardhasunrestrictedaccesstoanyinformationpertainingtotheCompany.Updatesonoperational,financial,corporateissuesandstrategicmattersaswellascurrentdevelopmentoftheGroupwhichrequiretheBoardmembers’attentionaredisseminatedwithoutdelay.
AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretaryinensuringtheeffectivefunctioningof the Board, management representatives and, if deemed necessary, other independent professionals at theexpenseoftheCompanyinthedischargeoftheirduties.
Board Balance
TheBoardatthedateofthisstatementcomprisingfive(5)memberscomprisingtwo(2)ExecutiveDirectorsandthree(3)Non-ExecutiveDirectors.Two(2)outofthree(3)Non-ExecutiveDirectorsareindependentwhichfulfillstheprescribedrequirementforat least2Directorsor1/3oftheBoardareindependentasstatedinParagraph15.02oftheBursaSecuritiesListingrequirements.
ThereisaclearsegregationofresponsibilitiesbetweentheChairmanandtheManagingDirectortoensurebalanceofpowerandauthority.TheChairmanisresponsibleforconductingmeetingsoftheBoardandshareholdersandensuringallDirectorsareproperlybriefedduringBoarddiscussionandshareholdersareinformedofthesubjectmattersrequiringtheirapproval.TheManagingDirectorisresponsibleforthemanagementandoperationsoftheCompany.TheBoardundertheleadershipoftheChairmanandtheManagingDirectorhastheoverallresponsibilityforthestrategicdirectionoftheCompany.
CORPORATE GOVERNANCE STATEMENT
UOA DEVELOPMENT BHD Annual Report 2011 • 23
Meetings
TheBoardmeetsat leastonceeveryquarterandadditionalmeetingsareconvenedasandwhennecessary.The Board is provided in advance with the Agenda together with reports and supporting documents for theBoardMeetings.Allproceedingsof theBoardMeetingsaredulyminutedandsignedby theChairmanof themeeting.DuringthefinancialyearunderreviewandsubsequenttothelistingoftheCompanyontheMainBoardofBursaMalaysiaon8June2011,theBoardmettwo(2)timesandtheattendancerecordforeachDirectorisasfollows:-
Name of Director Total Meetings Attended Percentage of Attendance (%)
TanSriDato’AlwibinJantan 1/2 50
KongChongSoon@ChiSuim 2/2 100
KongPakLim 2/2 100
TanChokKianAlphonsus 2/2 100
AlanCharlesWinduss 2/2 100
Allthedirectorshavecompliedwiththeminimum50%attendancerequirementinrespectofBoardmeetingsasstipulatedbytheListingRequirements.
Board Committees
TheBoarddelegatesspecificresponsibilitiestovariouscommitteessuchasAuditCommittee,NominationandRemunerationCommittee toassist indischarging theirduties.Allcommitteeshavewritten termsof referenceandtheBoardreceivesreportsoftheirproceedingsanddeliberations,whereappropriate.TheChairmanofthevariouscommitteeswillreporttotheBoardtheoutcomeofthecommitteemeetingsandtheminutesofmeetingsarecirculatedtotheBoard.Thesecommitteesareformedinordertoenhancebusinessandoperationalefficiencyaswellasefficacy.
The Nomination and Remuneration Committee was established on 25 January 2011 and comprises entirelyNon-Executive Directors, majority of whom are independent. The Nomination and Remuneration Committeeisempoweredby theBoardand its termsof referenceare tobring to theBoard recommendationsas to theappointmentsofnewDirectors.TheCommitteealsokeepsunderreviewtheBoardStructure,sizeandcomposition.
The Nomination and Remuneration Committee systematically assesses the effectiveness of the Board, thecommitteesoftheBoardandthecontributionofeachindividualDirectoronanannualbasis.AllassessmentsandevaluationscarriedoutbytheNominationandRemunerationCommitteeinthedischargeofallitsfunctionsaredocumented.
The Nomination and Remuneration Committee held two (2) meetings during the financial year ended31December2011.
CorporateGovernanceStatement(Cont’d)
24•UOA DEVELOPMENT BHDAnnualReport2011
A. BOARD OF DIRECTORS (Cont’d)
Appointment and Re-election to the Board
TheNominationandRemunerationCommitteehasbeengiventheresponsibilitiestorecommendnewappointmentstotheBoard.InaccordancewiththeCompany’sArticlesofAssociation,allDirectorswhoareappointedbytheBoardaresubjecttoretirementandre-electionbyshareholdersatthenextannualgeneralmeetingsubsequenttotheirappointments.TheArticlesofAssociationalsoprovidethatone-third(1/3)oftheDirectorsshallsubjecttoretirementbyrotationandbeeligibleforre-electionateachannualgeneralmeetingprovidedthatallDirectorsshallretirefromoffice,onceatleastineverythreeyears.AretiringDirectorshallretainofficeuntilthecloseofthemeetingatwhichheretires.
Directors over seventy (70) years of age are required to submit themselves for re-appointment annually inaccordancewithSection129(6)oftheCompaniesAct,1965.
Directors’ Training
AllDirectorshavecompletedtheMandatoryAccreditationProgrammeasprescribedbytheListingRequirements.During the financial year, Directors and Senior Management attended the following training programmes andseminarstofurtherbroadentheirskills,knowledgeandperspectiveandkeepthemabreastwithnewandrelevantdevelopmentspertainingtochangesinlegislationandregulations:
Training Attendedby
ProposedchangestocodeofCorporateGovernanceandListingRules TanChokKianAlphonsus
SustainabilityProgrammeforCorporateMalaysiabyBursaMalaysia TanSriDato’AlwibinJantan
NavigatingaChangingAnti-CorruptionLandscape TanSriDato’AlwibinJantan (UKBriberyAct)byNortonRose
B. DIRECTORS’ REMUNERATION
The Nomination and Remuneration Committee which comprises entirely Non-Executive Directors, majorityof whom are independent, recommends to the Board the remuneration package for the Executive Directors,The remuneration package for Executive Directors is structured on the basis of linking rewards to corporateand individualperformance.Performance ismeasuredagainst theresultachievedbytheGroupand individualachievementagainsttargetsset.ItistheultimateresponsibilityoftheentireBoardtoapprovetheremunerationoftheseDirectorswiththeExecutiveDirectorsconcernedabstainingfromdeliberationsontheirownremuneration.
CorporateGovernanceStatement(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 25
CorporateGovernanceStatement(Cont’d)
B. DIRECTORS’ REMUNERATION (Cont’d)
TheremunerationpackageforNon-ExecutiveDirectorsaredeterminedbytheBoardasawhole,withtheNon-ExecutiveDirectorsabstainingfromdiscussionontheirownremuneration.
Non-Executive Directors Executive Directors Total
RM’000 RM’000 RM’000
Salary - 1,152 1,152
Bonus - 96 96
Fees 90 - 90
Otheremoluments - - -
Benefit-in-kind - 44 44
Total 90 1,292 1,382 Remuneration paid to Directors during the year analysed into bands of RM50,000, which complies with the
disclosurerequirementsunderBursaMalaysiaListingRequirementsisasfollows:
Non-Executive Directors Executive Directors
UptoRM50,000 3 -
FromRM600,001toRM650,000 - 2
C. SHAREHOLDERS
TheBoardacknowledgestheneedforshareholderstobekeptinformedofallmaterialbusinessmattersaffectingtheGroup.ShareholdersareprovidedwithanoverviewoftheGroup’sperformanceandoperationsthroughthetimely releaseoffinancial resultsonaquarterlybasis.Timelyannouncementsarealsomadeto thepubliconcorporateproposalsandotherrequiredannouncementstoensureaffectivedisseminationofinformationrelatingtotheCompany.
TheCompany’sAGMremainstheprincipalforumfordialogueandcommunicationwithshareholders,inparticularprivateinvestors.Shareholdersareencouragedtoaskquestionsabouttheresolutionsbeingproposedandtheoperationsof theGroup.Thecompany’swebsite,www.uoadev.com.myprovidesacomprehensiveavenueforinformationdissemination.
26•UOA DEVELOPMENT BHDAnnualReport2011
D. ACCOUNTABILITY AND AUDIT
Financial Reporting Inpresentingtheannualreportsandauditedfinancialstatementsandquarterlyannouncementtoshareholders,
theBoardaimstoprovideandpresentanaccurate,balancedandmeaningfulassessmentoftheGroup’sfinancialperformance and prospects. The Board is assisted by the Audit Committee to oversee the Group’s financialreportingprocessesandthequalityofitsfinancialreporting.
Directors’ Responsibility Statement in Respect of the Preparation of the Audit Financial Statements
TheDirectorsare responsible forensuring that thefinancialstatementsof theGroupgivea trueand fairviewof the state of affairs of the Group and of the Company as at the end of the financial year and the financialperformanceandcashflowsoftheGroupandoftheCompanyforthefinancialyearthenended.Inpreparingthefinancialstatements,theDirectorshaveensuredthatapplicableapprovedaccountingstandardsinMalaysiaandtheprovisionsoftheCompaniesAct,1965havebeenapplied.Inpreparingthefinancialstatements,theDirectorshaveselectedandappliedconsistentlysuitableaccountingpoliciesandmadejudgementsandestimatesthatarereasonableandprudent.
State of Internal Control ThestatementofInternalControlfurnishedonpage30oftheAnnualReportprovidesanoverviewonthestateof
internalcontrolswithintheGroup.
Relationship with External Auditors
Key featuresunderlying the relationshipof theAuditCommitteewith theexternalauditorsare included in theAuditCommittee’stermsofreferencesassetoutintheAuditCommitteeReport.TheAuditCommitteehasalwaysmaintainedatransparentrelationshipwith itsauditors inseekingprofessionaladviceandensuringcompliancewiththeappropriateaccountingstandards.
Compliance with the Best Practices of the Code
TheBoardofDirectorshas takenmeasures toensure thatGroup fullycomplieswithall thebestpracticesofcorporategovernanceasidentifiedintheCodethroughoutthefinancialyearended31December2011.
ThedisclosureofthisStatementonCorporateGovernancehasbeenapprovedbytheBoardduringtheBoard
Meetingheldon28March2012.
CorporateGovernanceStatement(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 27
AUDIT COMMITTEE REPORT
FORMATION
TheAuditCommitteewasformedbytheBoardpursuanttoitsmeetingon25January2011.ItsprimaryresponsibilityistoprovideassistancetotheBoardofDirectorsinfulfillingitscorporategovernanceresponsibilitiesinrelationtoourfinancialreporting,internalcontrolstructure,relatedpartytransactionsandexternalandinternalauditfunctions.TheAuditCommitteemayinviteanyofthekeymanagementoremployeestoparticipateinitsmeetingsandtoappointanyrelevantconsultantsorprofessionalstoassistittodischargeitsfunctions.
COMPOSITION
The Audit Committee consists of two (2) Independent Non-Executive Directors and one (1) Non-IndependentNon-ExecutiveDirector:
TanChokKianAlphonsus(Chairman/IndependentNon-ExecutiveDirector)TanSriDato’AlwibinJantan(IndependentNon-ExecutiveDirector)(Resignedon28March2012)AlanCharlesWinduss(Non-IndependentNon-ExecutiveDirector)
TanSriDato’AlwibinJantanhasresignedasamemberoftheAuditCommitteeon28March2012andtheCompanyisinthemidstofidentifyingasuitablecandidatetobeappointedtofillthevacancyandtocomplywiththerequirementonthecompositionoftheAuditCommitteeinparagraph15.09(1)(a)and(b)oftheMainMarketListingRequirements.
SUMMARY OF TERMS OF REFERENCE
1. COMPOSITION
TheACshallbeappointedbytheBoardwiththefollowingrequirements:• Compriseatleastthree(3)members• Allmembersmustbenon-executiveDirectors• AllmembersshouldbefinanciallyliterateandatleastonemembermustbeamemberofMIAoraccounting
associationorbody• TheChairmanshallbeanIndependentDirector
2. FREQUENCY AND ATTENDANCE OF MEETINGS
Aminimumoffour(4)meetingsayearshallbeplannedandanyadditionalmeetingswillbeonaneedbasis.
TheACshouldmeetwiththeExternalAuditorswithoutExecutiveBoardmemberspresentatleasttwiceayear.
TheACshouldmeetregularly,withduenoticeofissuestobediscussed,andshouldrecorditsconclusionsindischargingitsdutiesandresponsibilities.
The Chairman of the AC should engage on a continuous basis with Senior Management, such as the ChiefOperatingOfficer,theChiefFinancialOfficer,theHeadofInternalAuditandtheExternalAuditorsinordertokeepabreastofmattersaffectingtheGroup.
TheChiefFinancialOfficer,Headof InternalAuditanda representativeof theExternalAuditor shall normallyattendmeetings.
28•UOA DEVELOPMENT BHDAnnualReport2011
2. FREQUENCY AND ATTENDANCE OF MEETINGS (Cont’d)
OtherBoardmembersandemployeesmayattendanyparticularACmeetingonlyupontheinvitationoftheACspecifictotherelevantmeeting.
TheACheldtwo(2)meetingsduringthefinancialyearended31December2011.ThedetailsofattendanceoftheACareasfollows:
Name of Director Total Meetings Attended
TanChokKianAlphonsus 2/2
TanSriDato’AlwibinJantan(Resignedon28March2012) 1/2
AlanCharlesWinduss 2/2
3. KEY FUNCTIONS & RESPONSIBILITY
ThekeyfunctionsandresponsibilityoftheCommitteeshallbe:
External Audit
i. TorecommendtotheBoardanymatterrelatingtotheappointmentofexternalauditors,thefeesandanymatterinrelationtoresignationordismissaloftheexternalauditors;and
ii. Toreviewanddiscusswiththeexternalauditorsitsscopeanduponcompletionoftheauditassessment,topresenttheauditfindingsandrecommendationsoftheexternalauditorstotheBoard
Internal Audit
i. Toreviewtheinternalauditplan,considerthemajorfindingsofinternalauditsandmanagement’sresponsesandensurecoordinationbetweentheinternalandexternalauditors
ii. Toreviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunctionsandthatithasthenecessaryauthoritytocarryoutitswork
iii. Toreviewtheauditreports;andiv. Todirectinternalauditorstoanyspecificareaorprocedurewherenecessary
Financial reporting review Toreviewwithourmanagementthequarterlyresultsandyear-endfinancialstatementspriortotheapprovalby
ourBoard.
Related party transactions ToreviewanyrelatedpartytransactionsandconflictofinterestsituationthatmayariseintheGroup.
Internal control systems To keep under review the effectiveness of internal control systems and the internal and/or external auditors’
evaluationofthesesystems.
AuditCommitteeReport(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 29
3. KEY FUNCTIONS & RESPONSIBILITY (Cont’d)
Other matters
i. Todiscussproblemsandreservationarisingfromtheinternalaudit,interimandfinalaudits,andmatterstheinternalandexternalauditorsmaywishtodiscuss(intheabsenceofthemanagementwherenecessary);
ii. WheretheAuditCommitteeisoftheviewthatamatterreportedbyittotheBoardhasnotbeensatisfactorilyresolvedresultinginabreachofBursaSecuritiesListingRequirements,theAuditCommitteemustpromptlyreportsuchmattertoBursaSecurities;and
iii. CarryingoutanyotherfunctionsthatmaybemutuallyagreeduponbytheAuditCommitteeandtheBoard.
4. SUMMARY OF ACTIVITIES OF THE COMMITTEE DURING THE YEAR TheACmettwo(2) timesduringthefinancialyearended31December2011.TheactivitiesoftheACforthe
financialyearwereasfollows:
i. Review the quarterly financial results announcements and year end financial statements of the Group,focusingparticularlyon:
• theoverallperformanceoftheGroup • theprospectsfortheGroup • theimplementationofmajoraccountingpoliciesandpractices • compliancewithaccountingstandardsandotherlegalrequirementsii. DiscussedsignificantauditfindingsinrespectofthefinancialstatementsoftheGroupwithExternalAuditorsiii. ReviewedandapprovedtheInternalAuditDepartmentresourcerequirements,programmesandplansfor
thefinancialyeartoensureadequotecoverageovertheactivitiesoftherespectivesubsidiaries.iv. ReviewedanddiscussedwiththeInternalAuditorsonkeyriskssummarisedintheRiskProfileonthecontrols
andmanagementactionplansarefunctioningeffectivelytomitigatetherisks.v. ReviewedtherelatedpartytransactionsenteredintobytheCompanyandtheGroup.
AuditCommitteeReport(Cont’d)
30•UOA DEVELOPMENT BHDAnnualReport2011
STATEMENT OF INTERNAL CONTROL
ThisStatementonInternalControlismadepursuanttotheListingRequirementsofBursaMalaysiaSecuritiesBerhadandincompliancewiththeMalaysianCodeofCorporateGovernance.
TheBoardiscommittedtomaintainasoundsystemofinternalcontrolandispleasedtoprovidethisStatementonInternalControlwhichoutlinesthenatureandscopeofinternalcontroloftheGroupduringtheyearunderreview.
BOARD RESPONSIBILITY
TheBoardisultimatelyresponsiblefortheGroup’soverallsystemofcorporategovernanceincludingriskmanagementandinternalcontrols,financialorotherwisewhich:
- ProvidesreasonableassuranceontheachievementoftheGroup’sobjectives;and- Ensurestheeffectivenessandtheefficiencyofoperations,reliabilityoffinancialinformationandcompliancewith
lawsandregulations.
TheBoard recognises that reviewing theGroup’ssystemof internalcontrols isaconcertedandongoingprocess,designedtomanage,ratherthaneliminatetheriskoffailuretoachievecorporateobjectives.Accordingly,itcanprovideonly reasonablebutnotabsoluteassuranceagainstmaterialmisstatementor loss.Thesystemof internalcontrolsinclude,inter-alia,financial,budgetary,organizational,operationalandcompliancecontrols.
Internal Audit Function
The internalaudit function isundertakenby the InternalAuditDepartmentof theultimateholdingcompanyof theManager,UnitedOverseasAustraliaLimited(“UOALIA”).TheAuditCommitteeassistedbyUOALIA,providestheBoardwiththeassuranceitrequiresontheadequacyandintegrityofthesystemofinternalcontrol.TheAuditCommitteehasanoversightfunctionofallactivitiescarriedoutbyUOALIA.TheprincipalroleofUOALIAistoindependentlyreviewtheinternalcontrolsoftheGroupareappropriateforitsbusinessandoperatingasintended,aframeworkofcontrolsareinplacetomanagerisksandmanagementresponsestotheserisksareacceptable.
UOALIAengagesinregularcommunicationwiththemanagementteamandvariousdepartmentswithintheorganisationinrelationtoitsinternalauditactivitiesandeffortsforcontinuousimprovementinoperationsandsystems.ScheduledinternalauditsarecarriedoutbytheinternalauditorsbasedontheauditplanpresentedtoandapprovedbytheAuditCommittee.Duringinternalauditassignments,theInternalAuditDepartmentalsoundertook,whereverrelevant,thefollowing:
- Assessmentofoperatingefficiencies;- Regularandcomprehensiveinformationprovidedtomanagement,coveringfinancialandoperationalperformance
andkeybusinessindicators,foreffectivemonitoringanddecisionmaking;and- EnsuringcompliancewiththeGroup’spoliciesandrelevantlegislations.
Onaquarterlybasis,theinternalauditorsreporttotheAuditCommitteeonareasforimprovementandwillsubsequentlyfollowuptodeterminetheextentoftheirrecommendationsthathavebeenimplemented.
The Board’s Commitment
TheBoardiscommittedtowardsmaintainingasoundsystemofinternalcontrolandisoftheviewthatthecurrentsystemof internalcontrol isresponsivetothebusinessenvironmentoftheGroup. Inaddition,theBoardisoftheviewthattheGroupcouldattainitsbusinessobjectiveandoperationalefficiencybycontinuouscommitmenttowardsasoundsystemofinternalcontrol.TheBoardcontinuestotakemeasurestoenhancethesystemofinternalcontrol.
UOA DEVELOPMENT BHD Annual Report 2011 • 31
ADDITIONAL COMPLIANCE INFORMATION
Utilisation of Proceeds from Initial Public Offering (IPO) is as follows:
Expected Time Frame Proposed Actual for Utilisation from Date Utilisation Utilisation Purpose of Listing RM’000 RM’000
Repaymentofintercompanyborrowings Within12months 365,911 365,334
Repaymentofbankborrowings Within12months 95,059 86,367
Workingcapitalrequirementsand generalcorporatepurposes Within12months 260,230 272,265
Estimatedlistingexpenses Within12months 25,000 22,234
746,200 746,200
Share Buy Backs
TheCompanydidnotcarryoutanysharebuybackexercisesduringthefinancialyearended31December2011.
Options, Warrants or Convertible Securities
Therewerenooptionsgrantedandconvertiblesecuritiesissuedduringthefinancialyearended31December2011.
American Depository Receipts (ADR) or Global Depository Receipts (GDR)
TherewerenoADRorGDRsponsoredbytheCompanyduringthefinancialyearended31December2011.
Sanctions and/or Penalties
There were no public sanctions and/or penalties imposed on the Company and its subsidiaries, Directors andManagementbytherelevantregulatorybodiesduringthefinancialyearended31December2011.
Non-Audit Fees
Non-auditfeespaid/payabletoExternalAuditorsoftheCompanyanditssubsidiariesforthefinancialyearended31December2011amountedtoRM180,000inrespectofservicesfortheInitialPublicOfferingoftheCompany.
Theprovisionofnon-auditservicesbytheExternalAuditorstotheGroupisbothcosteffectiveandefficientduetotheirknowledgeandunderstandingoftheoperationsoftheGroup,anddidnotcompromisetheirindependenceandobjectivity.
Variation in Results
Therewerenoprofitestimations,forecastsandprojectionsmadeorreleasedbytheCompanyduringthefinancialyearended31December2011.
32•UOA DEVELOPMENT BHDAnnualReport2011
Profit Guarantee
There were no profit guarantees given by the Company and its subsidiaries during the financial year ended31December2011.
Material Contracts
Therewerenomaterial contractsentered intoby theCompanyand itssubsidiaries involvingdirectors’andmajorshareholders’interestwhichwerestillsubsistingasattheendofthefinancialyearunderrevieworwhichwereenteredintosincetheendofthepreviousfinancialyearexceptasdisclosedinProspectusdated18May2011andnote42ofthefinancialstatements.
Statement on Employees Share Option Scheme (“ESOS”)
TheCompanydidnothaveanyESOSinplacefortheyearended31December2011.
Recurrent Related Party Transactions
BursaSecuritieshadviaaletterdated21June2011grantedtheCompanyextensionoftimefrom8June2011,beingthedateofadmissionofUOADevelopmenttotheOfficialListofBursaSecurities,tothenextannualgeneralmeetingorextraordinarygeneralmeetingoftheCompanytoobtainshareholders’ratificationandshareholders’mandateforRecurrentRelatedPartyTransactionsenteredandtobeenteredintobytheCompanyanditssubsidiariespursuanttoParagraph10.09oftheBursaSecuritiesMainMarketListingRequirements.
AdditionalComplianceInformation(Cont’d)
FINANCIALSTATEMENTS34 CorporateInformation
35 Directors’Report
40 IndependentAuditor’sReport
42 StatementsofFinancialPosition
44 Statementsof ComprehensiveIncome
45 StatementsofChangesinEquity
47 StatementsofCashFlows
50 Notestothe FinancialStatements
103 StatementbyDirectors
104 StatutoryDeclaration
34•UOA DEVELOPMENT BHDAnnualReport2011
DOMICILE Malaysia
LEGAL FORM AND PubliccompanylimitedbywayofsharesPLACE OF INCORPORATION incorporatedinMalaysiaundertheCompaniesAct,1965
REGISTERED OFFICE No.9,JalanIndah16 TamanCherasIndah 56100KualaLumpur
PRINCIPAL PLACE OF BUSINESS WismaUOABangsarSouth Tower1,Avenue3,TheHorizon BangsarSouth No.8,JalanKerinchi 59200KualaLumpur
CORPORATEINFORMATION
UOA DEVELOPMENT BHD Annual Report 2011 • 35
Thedirectorshavepleasure insubmittingtheir reportandtheauditedfinancialstatementsof theGroupandof theCompanyforthefinancialyearended31December2011.
PRINCIPAL ACTIVITIES
TheprincipalactivityoftheCompanyisinvestmentholding.Theprincipalactivitiesofthesubsidiarycompaniesareindicatedinnote5tothefinancialstatements.
Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.
RESULTS
Group Company RM’000 RM’000
ProfitattributabletoshareholdersoftheCompany 384,806 8,363
DIVIDENDS
NodividendwaspaidbytheCompanyduringthefinancialyear.
Thedirectorsnowrecommendafirstandfinalsingletierdividendinrespectofthefinancialyearended31December2011,of10senperordinaryshare,amountingtoRM119,586,000basedonthepaid-upsharecapitalasat31December2011,forshareholders’approvalattheforthcomingAnnualGeneralMeeting.
Thefinancialstatementsforthecurrentfinancialyeardonotreflectthisproposeddividend.Suchdividend,ifapprovedbytheshareholders,willbeaccountedforinthestatementsofchangesinequityasanappropriationofretainedprofitsinthefinancialyearending31December2012.
RESERVES AND PROVISIONS
Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearexceptasdisclosedonpages45and46ofthefinancialstatements.
ISSUE OF SHARES AND DEBENTURES
Duringthefinancialyear,theCompanyundertookthefollowing:
(a) On26April2011,theCompanyincreaseditsissuedandpaid-upsharecapitalbytheissuanceof1,688,180newordinarysharesofRM1.00eachatanissuepriceofRM11.00persharetosatisfythetotalpurchaseconsiderationof RM18,569,980 payable by the Company for the acquisition of 195,000 ordinary shares of RM1.00 each inEveriseProjectSdnBhdrepresenting39%oftheissuedandpaid-upsharecapitalofEveriseProjectSdnBhd.
(b) On 26 April 2011, the Company cancelled its entire authorised share capital of RM50,000,000 comprising50,000,000sharesofRM1.00each.Accordingly,theCompanyreplacedRM50,000,000comprising1,000,000,000sharesofRM0.05each.
In addition to the above, the Company created new authorised share capital of RM50,000,000 comprising1,000,000,000sharesofRM0.05each.
DIRECTORS’REPORT
36•UOA DEVELOPMENT BHDAnnualReport2011
Directors’Report(Cont’d)
ISSUE OF SHARES AND DEBENTURES (Cont’d)
(c) Accordingly,theissuedandpaid-upsharecapitaloftheCompanycomprising45,443,000shareswithparvalueRM1.00eachwascancelledandreplacedwith908,860,000shareswithparvalueRM0.05eachon26April2011.
(d) InconjunctionwiththeInitialPublicOffering(IPO),apublicissueof287,000,000newordinarysharesofRM0.05wasissuedatanissuepriceofRM2.60.
Therewerenodebenturesissuedduringtheyear.DIRECTORS
Thedirectorsinofficesincethedateofthelastreportare:TanSriDato’AlwibinJantan KongChongSoon@ChiSuim KongPakLimTanChokKianAlphonsus AlanCharlesWinduss
DIRECTORS’ INTERESTS IN SHARES
ThefollowingdirectorshadaninterestinsharesintheCompanyanditsrelatedcorporationsrequiredtobedisclosedinaccordancewithSection169(6)(g)oftheCompaniesAct,1965,asfollows:
Number of ordinary shares At Share 1.1.2011 split @ RM0.05 each @ RM1.00 @ RM0.05 AtThe Company each each Acquired Disposed 31.12.2011
Direct interest
-TanSriDato’AlwibinJantan - - 700,000 - 700,000
-AlanCharlesWinduss - - 100,000 - 100,000
-TanChokKianAlphonsus - - 300,000 - 300,000
Indirect interest
-KongChongSoon@ChiSuim 2,187,740 43,754,772 760,186,568 - 803,941,340
-KongPakLim 2,187,739 43,754,771 760,091,549 - 803,846,320
UOA DEVELOPMENT BHD Annual Report 2011 • 37
DIRECTORS’ INTERESTS IN SHARES (Cont’d)
Number of ordinary shares United Overseas Australia Ltd At At(Holding company) 1.1.2011 Acquired Disposed 31.12.2011
Direct interest
-KongPakLim 354,876 15,025 - 369,901
-TanSriDato’AlwibinJantan 5,059,667 214,223 - 5,273,890
-AlanCharlesWinduss 13,065 554 - 13,619
-TanChokKianAlphonsus 319,359 93,522 - 412,881
Indirect interest
-KongChongSoon@ChiSuim 669,823,266 28,347,466 - 698,170,732
-KongPakLim 514,438,505 21,461,941 - 535,900,446
-AlanCharlesWinduss 1,440,281 60,980 - 1,501,261
Byvirtueoftheabovedirectors’interestinsharesinUnitedOverseasAustraliaLtd,theyaredeemedtobeinterestedinsharesinallthesubsidiarycompaniesofUnitedOverseasAustraliaLtdtotheextentthatUnitedOverseasAustraliaLtdhasaninterest.
DIRECTORS’ BENEFITS
Sincetheendofthepreviousfinancialyear,nodirectoroftheCompanyhasreceivedorbecomeentitledtoreceiveanybenefitbyreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterestexceptforanybenefitswhichmaybedeemedtohavearisenfromthefollowingtransactionswhichwerecarriedoutintheordinarycourseofbusiness:
(a) SalesofpropertiesbysubsidiarycompaniestotalingtoRM3,429,769toKongPakLim;(b) SalesofpropertiesbysubsidiarycompaniestotalingtoRM2,012,492toKongChongSoon@ChiSuim;and(c) SalesofpropertiesbysubsidiarycompanytotalingtoRM398,398toTransmetroSdnBhd,acompanyinwhich
KongChongSoon@ChiSuimhassubstantialfinancialinterest.
NeitherduringnorattheendofthefinancialyearwastheCompanyapartytoanyarrangementswhoseobjectistoenablethedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesin,ordebenturesof,theCompanyoranyotherbodycorporate.
Directors’Report(Cont’d)
38•UOA DEVELOPMENT BHDAnnualReport2011
OTHER STATUTORY INFORMATION
(a) Beforethestatementsofcomprehensive incomeandstatementsoffinancialpositionoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablesteps:
(i) toascertaintheactiontakeninrelationtothewritingoffofbaddebtsandthemakingofallowancefordoubtful
debtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandadequateallowancehadbeenmadefordoubtfuldebts;and
(ii) toensurethatanycurrentassetswhichwereunlikelytorealiseintheordinarycourseofbusinesstheirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.
(b) Atthedateofthisreport,thedirectorsarenotawareofanycircumstances:
(i) whichwouldrendertheamountwrittenoffforbaddebtsortheamountoftheallowancefordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent,or
(ii) whichwouldrenderthevaluesattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading,or
(iii) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.
(c) Atthedateofthisreport,theredoesnotexist:
(i) anychargeontheassetsoftheCompanyoritssubsidiarycompanieswhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson,or
(ii) anycontingentliabilityoftheCompanyoritssubsidiarycompanieswhichhasarisensincetheendofthefinancialyear.
(d) NocontingentorotherliabilityoftheCompanyoritssubsidiarycompanieshasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,intheopinionofthedirectors,willormayaffecttheabilityoftheCompanyoritssubsidiarycompaniestomeettheirobligationsasandwhentheyfalldue.
(e) Atthedateofthisreport,thedirectorsarenotawareofanycircumstances,nototherwisedealtwithinthisreportor the financial statements of the Group and of the Company which would render any amount stated in therespectivefinancialstatementsmisleading.
(f) Intheopinionofthedirectors:
(i) theresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;and
(ii) therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.
Directors’Report(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 39
ULTIMATE HOLDING COMPANY
The directors regard United Overseas Australia Ltd, a company incorporated in Australia, as the ultimate holdingcompany.
AUDITORS
Theauditors,Mazars,CharteredAccountants,haveexpressedtheirwillingnesstocontinueinoffice.
Signedbythedirectorsinaccordancewithadirectors’resolutiondated28March2012
KONG PAK LIM KONG CHONG SOON @ CHI SUIM Director Director
Directors’Report(Cont’d)
40•UOA DEVELOPMENT BHDAnnualReport2011
Report on the Financial Statements
We have audited the financial statements of UOA Development Bhd, which comprise the statements of financialpositionasat31December2011oftheGroupandoftheCompany,andthestatementsofcomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages42to102.
Directors’ Responsibility for the Financial Statements
ThedirectorsoftheCompanyareresponsibleforthepreparationofthesefinancialstatementsthatgiveatrueandfairviewinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysia,andforsuchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.
Auditors’ Responsibility
Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.
Anaudit involvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements. The procedures selected depend on our judgement, including the assessment of risks of materialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivesatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelieve that theauditevidencewehaveobtained issufficientandappropriate toprovideabasis forourauditopinion.Opinion
Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof31December2011andoftheirfinancialperformanceandcashflowsfortheyearthenended.
INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF UOA DEVELOPMENT BHD (Incorporated in Malaysia)
UOA DEVELOPMENT BHD Annual Report 2011 • 41
Report on Other Legal and Regulatory Requirements
InaccordancewiththerequirementsoftheCompaniesAct1965inMalaysia,wealsoreportthefollowing:
(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiariesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.
(b) WearesatisfiedthatthefinancialstatementsofthesubsidiariesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.
(c) Our auditors’ reports on the financial statements of the subsidiaries did not contain any qualification or anyadversecommentmaterialtotheconsolidatedfinancialstatementsanddidnotincludeanyadversecommentrequiredtobemadeunderSection174(3)oftheAct.
Other Reporting Responsibilities
ThesupplementaryinformationsetoutinNote50isdisclosedtomeettherequirementofBursaMalaysiaSecuritiesBerhadandisnotpartofthefinancialstatements.TheDirectorsoftheCompanyareresponsibleforthepreparationof thesupplementary information inaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements, as issued by the Malaysian Institute of Accountants (“MIA Guidance”) and the directive of BursaMalaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.
Other Matters
ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.
MAZARS YAP CHING SHIN No.AF:1954 No.2022/03/12(J)CharteredAccountants CharteredAccountant
Kuala LumpurDate:28March2012
IndependentAuditors’Report(Cont’d)
42•UOA DEVELOPMENT BHDAnnualReport2011
Group Company Note 2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
ASSETS
Non-current assets
Property,plantandequipment 2 56,647 50,932 2,376 -
Investmentproperties 3 647,062 354,783 - -
Landheldforpropertydevelopment 4 81,962 78,343 - -
Investmentinsubsidiarycompanies 5 - - 49,019 48,171
Investmentinanassociatecompany 6 19,052 - 18,570 -
Amountowingbyanassociatecompany 7 3,111 - 3,111 -
Available-for-salefinancialassets 8 21,651 26,797 - -
Deferredtaxassets 9 15,544 8,929 - -
Total non-current assets 845,029 519,784 73,076 48,171
Current assets
Propertydevelopmentcosts 10 420,445 335,192 - -
Inventories 11 332,686 184,069 - -
Accruedbillings 12 111,021 69,114 - -
Tradeandotherreceivables 13 144,152 119,275 10,526 170
Amountowingbyimmediateholdingcompany 14 - 22,036 - 9,970
Amountsowingbysubsidiarycompanies 15 - - 679,476 96,308
Amountsowingbyrelatedcompanies 16 - 2,465 - 7
Currenttaxasset - - 65 -
Shortterminvestments 17 165,631 1,423 151,311 -
Fixeddepositswithlicensedfinancialinstitutions 18 68,184 12,517 4,503 3,500
Cashandbankbalances 19 53,629 24,256 894 43
Total current assets 1,295,748 770,347 846,775 109,998
TOTAL ASSETS 2,140,777 1,290,131 919,851 158,169
STATEMENTS OF FINANCIAL POSITIONAS AT 31 DECEMBER 2011
UOA DEVELOPMENT BHD Annual Report 2011 • 43
EQUITY AND LIABILITIES Group Company Note 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Equity
Sharecapital 20 59,793 43,755 59,793 43,755
Sharepremium 21 726,498 - 726,498 -
Mergerreserve 22 2,252 2,252 - -
Fairvaluereserve 23 3,557 5,895 - -
Unappropriatedprofit 1,013,814 629,008 122,402 114,039
EquityattributabletoownersoftheCompany 1,805,914 680,910 908,693 157,794
Non-controllinginterests 39,317 21,059 - -
Total equity 1,845,231 701,969 908,693 157,794
Non-current liabilities
Amountsowingtonon-controllingshareholdersofsubsidiarycompanies 24 57,997 36,948 - -
Hirepurchaseandfinanceleaseliabilities 25 5,791 2,540 990 -
Longtermborrowing 26 2,065 2,065 - -
Deferredtaxliability 27 20,450 10,498 - -
Total non-current liabilities 86,303 52,051 990 -
Current liabilities
Progressbillings 12 20,823 20,385 - -
Tradeandotherpayables 28 171,707 139,690 7,858 375
Amountowingtoimmediateholdingcompany 14 1,795 211,638 1,795 -
Amountsowingtorelatedcompanies 16 129 10,124 129 -
Hirepurchaseandfinanceleaseliabilities 25 3,299 2,374 386 -
Shorttermborrowings 29 5,307 149,432 - -
Currenttaxliabilities 6,183 2,468 - -
Total current liabilities 209,243 536,111 10,168 375
Total liabilities 295,546 588,162 11,158 375
TOTAL EQUITY AND LIABILITIES 2,140,777 1,290,131 919,851 158,169
Notestoandformingpartofthefinancialstatementsaresetoutonpages50to102Auditors’Report-Pages40to41
StatementsofFinancialPosition(Cont’d)
44•UOA DEVELOPMENT BHDAnnualReport2011
STATEMENTS OFCOMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2011
Group Company Note 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Revenue 30 613,596 375,229 6,667 33,188
Costofsales 31 (297,870) (196,545) - -
Grossprofit 315,726 178,684 6,667 33,188
Fairvalueadjustmentoninvestmentproperties 205,136 178,250 - -
Otherincome 35,445 21,444 25,334 4
Administrativeandgeneralexpenses (63,968) (39,248) (20,790) (691)
Otherexpenses (6,725) (3,946) - -
Financecosts 32 (4,038) (2,762) (871) -
Shareofresultsofassociate 222 - - -
Profitbeforetax 33 481,798 332,422 10,340 32,501
Taxexpense 34 (78,887) (52,785) (1,977) (3,034)
Profitfortheyear 402,911 279,637 8,363 29,467
Othercomprehensiveincome,netoftax
Fairvalueadjustmentonavailable-for-salefinancialassets(Loss)/Gainonfairvaluechanges (1,906) 3,930 - -
Transfertoprofitorlossupondisposal (432) - - -
Totalcomprehensiveincomefortheyear 400,573 283,567 8,363 29,467
Profitattributableto:
OwnersoftheCompany 384,806 272,491
Non-controllinginterests 18,105 7,146
402,911 279,637
Totalcomprehensiveincomeattributableto:
OwnersoftheCompany 382,468 276,421
Non-controllinginterests 18,105 7,146
400,573 283,567
Basicearningperordinaryshare(RM) 35 0.36 0.36
Notestoandformingpartofthefinancialstatementsaresetoutonpages50to102Auditors’Report-Pages40to41
UOA DEVELOPMENT BHD Annual Report 2011 • 45
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46•UOA DEVELOPMENT BHDAnnualReport2011
Unappro- Share Share priated Note capital premium profit TotalCompany RM’000 RM’000 RM’000 RM’000
Balanceat1January2010 37,737 - 87,202 124,939
Issuanceofsharesforacquisitionofsubsidiarycompanies 20 6,018 - - 6,018
Totalcomprehensiveincomefortheyear - - 29,467 29,467
Dividends 35 - - (2,630) (2,630)
Balanceat31December2010 43,755 - 114,039 157,794
Issuanceofshares 20 16,038 726,498 - 742,536
Totalcomprehensiveincomefortheyear - - 8,363 8,363
Balanceat31December2011 59,793 726,498 122,402 908,693
Notestoandformingpartofthefinancialstatementsaresetoutonpages50to102Auditors’Report-Pages40to41
StatementsofChangesinEquity(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 47
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profitbeforetax 481,798 332,422 10,340 32,501
Adjustmentsfor:
Fairvalueadjustmentoninvestmentproperties (205,136) (178,250) - -
Badanddoubtfuldebts (2,429) 7,930 - -
Depreciation 6,355 5,054 316 -
Gainondisposalofproperty,plantandequipment (210) (205) - -
Property,plantandequipmentwrittenoff 4 2 - -
Discountonacquisitionofadditionalsharesinasubsidiarycompany - (1) - -
Discountonacquisitionofsharesinanassociatedcompany (260) - - -
Lossondisposalofsubsidiarycompanies - 998 - 629
Gainondisposalofavailable-for-salefinancialassets (546) (34) - -
Impairmentlossonavailable-for-salefinancialassets - 3,552 - -
DistributionfromUOAREIT (1,617) (1,950) - -
Distributionincomefromshortterminvestments (3,650) (493) (3,419) (1)
Dividendincome - - (6,667) (33,188)
Interestincome (6,983) (3,807) (1,014) (3)
Interestexpense 4,038 2,762 871 -
Shareofprofitofassociate (222) - - -
Operatingprofit/(loss)beforeworkingcapitalchanges 271,142 167,980 427 (62)
Netchangesinreceivables (261,036) (201,842) (18,690) (167)
Netchangesinpayables 26,513 69,518 9,407 (214)
Cashgeneratedfrom/(usedin)operations 36,619 35,649 (8,856) (443)
Interestreceived 643 526 - -
Dividendreceived - - 5,000 30,155
Taxpaid (71,835) (52,677) (375) -
Cash(usedin)/generatedfromoperatingactivities (34,573) (16,502) (4,231) 29,712
STATEMENTS OFCASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2011
48•UOA DEVELOPMENT BHDAnnualReport2011
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM INVESTING ACTIVITIES
Additionstoinvestmentproperties(see note 37) (83,451) (88,052) - -
Purchaseofproperty,plantandequipment(see note 38) (5,379) (3,332) (1,010) -
Purchaseoflandheldforpropertydevelopment (42,325) (20,656) - -
Proceedsfromdisposalofproperty,plantandequipment 525 233 - -
Acquisitionofsharesinexistingsubsidiarycompanies 153 (10) (848) (250)
Netcashoutflowfromdisposalofsubsidiarycompanies (see note 39) - (874) - -
Proceedsfromdisposalofavailable-for-salefinancialassets 3,354 192 - -
Repaymentfrom/(Advancesto)immediateholdingcompany 22,036 (22,035) 9,970 (9,970)
(Advancesto)/Repaymentfromsubsidiarycompanies - - (574,671) 4,576
Repaymentfrom/(Advancesto)relatedcompanies 2,465 (89) 7 (7)
Advancestoanassociatedcompany (3,781) - (3,781) -
Distributionreceivedfromshortterminvestments 3,616 509 3,419 1
DistributionfromUOAREIT 1,617 1,950 - -
Interestreceived 1,160 113 703 3
Netcashusedininvestingactivities (100,010) (132,051) (566,211) (5,647)
StatementsofCashFlows(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 49
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM FINANCING ACTIVITIES
Drawdownonbanktermloans 46,169 214,802 - -
Repaymentofbanktermloans (190,294) (102,060) - -
Fixeddepositpledgedtosecurebankloan(see note 29) (9) (354) - -
Repaymentofhirepurchaseandfinanceleaseliabilities (3,216) (2,232) (306) -
Repaymenttoultimateholdingcompany - (360) - -
(Repaymentto)/Advancesfromimmediateholdingcompany (202,898) 64,001 - -
Repaymenttorelatedcompanies (10,124) (34,668) - (18,651)
Advancesfromnon-controllingshareholdersofsubsidiarycompanies 23,319 12,495 - -
Interestpaid (3,091) (4,611) (53) -
DividendpaidtoownersoftheCompany - (29,630) - (2,630)
Dividendspaidtonon-controllingshareholdersofsubsidiarycompanies - (13,985) - -
ProceedsfromInitialPublicOfferingnetoflistingexpenses 723,966 - 723,966 -
Netcashgeneratedfrom/(usedin)financingactivities 383,822 103,398 723,607 (21,281)
NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS 249,239 (45,148) 153,165 2,784
CASHANDCASHEQUIVALENTSBROUGHTFORWARD 37,842 82,990 3,543 759
CASHANDCASHEQUIVALENTSCARRIEDFORWARD 287,081 37,842 156,708 3,543
Representedby:Shortterminvestments 165,631 1,423 151,311 -
Fixeddepositswithlicensedfinancialinstitutions 68,184 12,517 4,503 3,500
Cashandbankbalances 53,629 24,256 894 43
287,444 38,196 156,708 3,543
Fixeddepositpledgedtosecurebankborrowings (363) (354) - -
287,081 37,842 156,708 3,543
Notestoandformingpartofthefinancialstatementsaresetoutonpages50to102Auditors’Report-Pages40to41
StatementsofCashFlows(Cont’d)
50•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation ThefinancialstatementscomplywithapplicableapprovedFinancialReportingStandards(“FRSs”),issued
bytheMalaysianAccountingStandardsBoard(“MASB”)andwiththeprovisionoftheCompaniesAct,1965.
Themeasurementbasesappliedinthepreparationofthefinancialstatementsincludecost,recoverablevalue,realisablevalue,revaluedamountandfairvalue.Estimatesareusedinmeasuringthesevalues.
TheconsolidatedfinancialstatementsarepresentedinRinggitMalaysia(“RM”),whichisalsotheGroup’sfunctionalcurrency.Unlessotherwise indicated, theamounts in thesefinancial statementshavebeenroundedtothenearestthousand.
(b) Changes in accounting policies
ThesignificantaccountingpoliciesadoptedbytheGroupandtheCompanyareconsistentwiththoseofthepreviousfinancialyearexceptfortheadoptionofthefollowingnew/revisedFRSsandAmendmentstoFRSsandIssuesCommitteeInterpretation(“ICInterpretation”)thatarerelevanttoitsoperations,effectivefromfinancialperiodsbeginningonorafter:
1 March 2010 AmendmentstoFRS132 FinancialInstruments:Presentation 1 July 2010 FRS1 First-timeAdoptionofFinancialReportingStandards FRS3 BusinessCombinations(revised) FRS127 ConsolidatedandSeparateFinancialStatements(revised) AmendmentstoFRS5 Non-currentAssetsHeldforSaleandDiscountedOperations
AmendmentstoFRS138 IntangibleAssets ICInterpretation17 DistributionsofNon-cashAssetstoOwners AmendmentstoICInterpretation9 ReassessmentofEmbeddedDerivatives
1 January 2011 AmendmentstoFRS1 LimitedExemptionfromComparativeFRS7
DisclosuresforFirst-timeAdoptersAmendmentstoFRS1 AdditionalExemptionsforFirst-timeAdopters
AmendmentstoFRS7 ImprovingDisclosureaboutFinancialInstruments AmendmentstoFRSs ImprovementstoFRSs(2010) ICInterpretation4 DeterminingWhetheranArrangementcontainsaLease ICInterpretation18 TransfersofAssetsfromCustomers AmendmentstoICInterpretation13 CustomerLoyaltyProgrammes
NOTES TO THEFINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2011
UOA DEVELOPMENT BHD Annual Report 2011 • 51
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(b) Changes in accounting policies (Cont’d)
Theadoptionoftheabovenew/revisedFRSs,AmendmentstoFRSsandICInterpretationsdidnothavesignificantimpactontheGroupandtheCompanyexceptforthefollowing:
FRS 3 - Business Combinations (revised)
TherevisedFRS3introducestheoptiontomeasurethenon-controllinginterestsinabusinesscombinationeitheratfairvalueoratthenon-controllinginterests’proportionateshareofidentifiableassetsacquired.Goodwill on acquisition will be measured as the difference between the aggregate of fair value ofconsiderationtransferred,anynon-controllinginterestsintheacquireeandthefairvalueattheacquisitiondateofanypreviouslyheldequityinterestintheacquiree(ifacquiredvia“piecemealacquisition”),andthenetidentifiableassetsacquired.Anybargainpurchase(i.e.“negativegoodwill”)willberecogniseddirectlyintheincomestatement.Anyconsiderationtransferredistobemeasuredatfairvalueasoftheacquisitiondate.Allacquisition-relatedcostsareexpensedoffintheincomestatement.
FRS 127 – Consolidated and Separate Financial Statements (revised)
TherevisedFRS127requiresthattotalcomprehensiveincomemustbeproportionatelyallocatedtothenon-controllinginterest,evenifthenon-controllinginterestsareindeficitposition.Changeinownershipinterestwhichdoesnotresultinalossofcontrolisaccountedforwithinequity.Wherethechangesinownershipinterestresultsinlossofcontrol,anyremaininginterestintheformersubsidiaryisremeasuredatfairvalueandagainorlossisrecognisedintheincomestatement.
The changes in the revised FRS 3 and FRS 127 will be applied prospectively and only affect futureacquisitionorlossofcontrolofsubsidiariesandtransactionswithnon-controllinginterest.
(c) Standards issued that are not yet effective TheGroupandtheCompanyhavenotappliedthefollowingnew/revisedFRSs,AmendmentstoFRSsand
ICInterpretationsthathavebeenissuedbyMASBandrelevanttoitsoperationsbutarenotyeteffective:
Effective for financialNew/Revised FRSs, Amendments periods beginning to FRSs and IC Interpretation on or after
FRS124 RelatedPartyDisclosures(revised) 1January2012
AmendmentstoFRS7 Disclosures–TransfersofFinancialAssets 1January2012
AmendmentstoFRS101 PresentationofItemsofOtherComprehensiveIncome 1July2012
AmendmentstoFRS112 Deferredtax:RecoveryofUnderlyingAssets 1January2012
ICInterpretation19 ExtinguishingFinancialLiabilitieswithEquityInstruments 1July2011
NotestotheFinancialStatements(Cont’d)
52•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(c) Standards issued that are not yet effective (Cont’d)
Malaysian Financial Reporting Standards (“MFRS”) On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new MASB
approvedaccountingframework,theMalaysianFinancialReportingStandards(“MFRS”).
TheMFRSistobeappliedbyallEntitiesOtherThanPrivateEntitiesforannualperiodsbeginningonorafter1January2012,withtheexceptionofentitiessubjecttotheapplicationofMFRS141AgricultureandICInterpretation15AgreementsforConstructionofRealEstate,includingitsparent,significantinvestorandventurer(hereinreferredtoas‘TransitioningEntities’).
TransitioningEntitieswillbeallowedtodeferadoptionofthenewMFRSforanadditionaloneyear,i.e.toannualperiodsbeginningonorafter1January2013afterwhichtheMFRSwillbecomemandatory.
TheGroupfallswithinthedefinitionofTransitioningEntitiesandhasoptedtodeferadoptionofthenewMFRS to 1 January 2013. Accordingly, the Group will be required to prepare its first MFRS financialstatements for the year ending 31 December 2013. In presenting its first MFRS financial statements,theGroupwillquantifythefinancialeffectsofthedifferencesbetweenthecurrentFRSandMFRS.Themajorityoftheadjustmentsrequiredontransitionwillbemade,retrospectively,againstopeningretainedprofits.
Accordingly,theconsolidatedfinancialperformanceandfinancialpositionasdisclosedinthesefinancialstatementsfortheyearended31December2011couldbedifferentifpreparedundertheMFRS.
Inaddition to theabove,MASBhas issuedthe followingnewMFRSsthatare relevant to theGroup’soperationsbutarenotyeteffective:
Effective for financial periods beginning New MFRSs on or after
MFRS9 FinancialInstruments 1January2013
MFRS10 ConsolidatedFinancialStatements 1January2013
MFRS11 JointArrangements 1January2013
MFRS12 DisclosuresofInterestsinOtherEntities 1January2013
MFRS13 FairValueMeasurement 1January2013
MFRS119 EmployeeBenefits 1January2013
MFRS127 SeparateFinancialStatements 1January2013
MFRS128 InvestmentsinAssociatesandJointVentures 1January2013
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 53
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (d) Significant accounting judgements and estimates Thepreparationoffinancial statements requiresmanagement toexercise judgement in theprocessof
applyingtheaccountingpolicies.Italsorequirestheuseofaccountingestimatesandassumptionsthataffectreportedamountsofassetsandliabilitiesanddisclosuresofcontingentassetsandliabilitiesatthereportingdateandreportedamountsofincomeandexpensesduringthefinancialyear.
Although theseestimatesarebasedonmanagement’sbest knowledgeof current eventsandactions,historicalexperiencesandvariousotherfactors,includingexpectationsforfutureeventsthatarebelievedtobereasonableunderthecircumstances,actualresultsmayultimatelydifferfromtheseestimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimatesarerecognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.
Critical judgement made in applying accounting policies
ThefollowingarejudgementsmadebymanagementintheprocessofapplyingtheGroup’saccountingpoliciesthathavethemostsignificanteffectonamountsrecognisedinthefinancialstatements:
Classification between investment properties and owner-occupied properties
TheGroupdetermineswhetherapropertyqualifiesasaninvestmentproperty,andhasdevelopedcertaincriteriabasedonFRS 140 Investment Propertyinmakingthatjudgement.
Inmakingitsjudgement,theGroupconsiderswhetherapropertygeneratescashflowslargelyindependently
ofotherassetsheldbytheGroup.Owner-occupiedpropertiesgeneratecashflowsthatareattributablenotonlytotheproperty,butalsotootherassetsusedintheproductionorsupplyprocess.
Somepropertiescompriseaportion that isheld toearn rentalor forcapital appreciationandanotherportionthatisheldforuseintheproductionorsupplyofgoodsandservicesorforadministrativepurposes.
If theseportionscouldbesold separately (or leasedout separatelyundera finance lease), theGroup
accountsfortheseportionsseparately.
If the portions could not be sold separately, the property is accounted for as an investment propertyonly ifan insignificantportion isheld foruse in theproductionorsupplyofgoodsandservicesor foradministrativepurposes.
Judgementismadeonanindividualpropertybasistodeterminewhetherancillaryservicesaresosignificantthatapropertydoesnotqualifyasinvestmentproperty.
Revenue recognition for property development activities and construction contracts
TheGrouprecognisesrevenuefrompropertydevelopmentactivitiesandconstructioncontractsbasedonthepercentageofcompletionmethod.Thestageofcompletionofthepropertydevelopmentactivitiesandconstructioncontractsismeasuredinaccordancewiththeaccountingpoliciessetoutbelow.
NotestotheFinancialStatements(Cont’d)
54•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (d) Significant accounting judgements and estimates (Cont’d) Significant judgement is required in determining the percentage of completion, the extent of the
developmentprojectandcontractcosts incurred, theestimated total revenueand totalcostsand therecoverabilityofthedevelopmentprojectandcontractcost.Inmakingthesejudgements,managementreliesonpastexperienceand,ifnecessary,theworkofspecialists.
Key sources of estimation uncertainty
Thekeyassumptionsconcerningthefutureandotherkeysourcesassociatedwithestimationuncertaintyateachfinancialreportingdatethathasasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:
Depreciation of property, plant and equipment
Property,plantandequipmentaredepreciatedonastraight-linebasis towriteoff theircosts to theirresidualvaluesovertheirestimatedusefullives.Managementestimatestheusefullivesofproperty,plantandequipmenttobebetween5and40years.
Changes intheexpected levelofusage,physicalwearandtearandtechnologicaldevelopmentcouldimpacttheeconomicusefullivesandresidualvaluesoftheseassets,andthereforefuturedepreciationchargescouldberevised.
Impairment loss and write down of inventories
Inventoriesarestatedatthelowerofcostandnetrealisablevalue.TheGroupestimatesthenetrealisablevalueofinventoriesbasedonanassessmentofexpectedsalesprices.
InventoriesarereviewedonaregularbasisandtheGroupwillmakeanimpairmentlossfortheinventoriesbased primarily on historical trends and management estimates of expected and future demand andrelatedpricing.
Demandlevels,technologicaladvancesandpricingcompetitioncouldchangefromtimetotime.IfsuchfactorsresultinanadverseeffectontheGroup’sinventories,theGroupmightberequiredtoreducethevalueofitsinventoriesandadditionalimpairmentlossesforinventoriesmayberequired.
Allowance for doubtful debts
Thecollectibilityofreceivablesisassessedonanongoingbasis.Anallowancefordoubtfuldebtsismadeforanyreceivablesconsideredtobedoubtfulofcollection.
Theallowancefordoubtfuldebtsismadebasedonareviewofalloutstandingamountsasatthefinancialreportingdate.Aconsiderableamountofjudgementisrequiredinassessingtheultimaterealisationofthesereceivables,includingthecreditworthinessandthepastcollectionhistoryofeachcustomer.Ifthefinancialconditionofcustomersweretodeteriorate,resulting inan impairmentoftheirabilitytomakepayments,additionalallowancesmayberequired.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 55
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (d) Significant accounting judgements and estimates (Cont’d) Income taxes
Significant judgement is involved in determining the capital allowances and deductibility of expensesduringtheestimationoftheprovisionforincometax.Therearecertaintransactionsandcomputationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.
TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.
(e) Basis of consolidation
(i) Subsidiaries AsubsidiarycompanyisanentitycontrolledbytheCompany.ControlexistswhentheCompanyhas
thepower,directlyorindirectly,togovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertible,areconsideredwhenassessingwhethertheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofanotherentity.
IntheCompany’sseparatefinancialstatements, investmentinsubsidiarycompaniesarestatedatcostlessimpairmentlosses.Impairmentlossesarechargedtotheincomestatement.
On disposal, the difference between the net disposal proceeds and the carrying amount of the
subsidiarycompany’sconsolidatednetassetsdisposedistakentotheincomestatement.
(ii) Accounting for business combinations
TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandofallitssubsidiarycompaniesmadeuptotheendofthefinancialyear.Theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpoliciesforliketransactionsinsimilarcircumstances.
Allintra-groupbalances,transactionsandincomeandexpensesareeliminatedinfullonconsolidationandtheconsolidatedfinancialstatementsreflectexternaltransactionsonly.
Business combinations are accounted for using the acquisition method from the acquisitiondate,whichisthedateonwhichcontrol istransferredtotheGroup,exceptforAlliedEngineeringConstructionSdnBhd,URCEngineeringSdnBhdandUOAPropertiesSdnBhd(formerly known as UOA Properties Bhd),whichareconsolidatedusingthemergermethodofaccounting.
Underthemergermethodofaccounting,theresultsofentitiesorbusinessesundercommoncontrolareaccountedforasiftheacquisitionhadoccurredatthedatethatcommoncontrolwasestablished.Thecostofanacquisitionismeasuredatthenominalvalueofordinarysharesissuedasconsideration.Theassetsandliabilitiesacquiredareincludedintheconsolidatedstatementoffinancialpositionattheirexistingcarryingamounts.
NotestotheFinancialStatements(Cont’d)
56•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (e) Basis of consolidation (Cont’d)
(ii) Accounting for business combinations (Cont’d)
Thedifferencebetweenthecostofacquisitionandthenominalvalueofsharesacquiredtogetherwithanysharepremiumaretakentomergerreserve(oradjustedagainstasuitablereserve,ifany,inthecaseofdebitdifferences).TheothercomponentsofequityoftheacquiredentitiesareaddedtothesamecomponentswithintheGroup.
Undertheacquisitionmethodofaccounting,thecostofanacquisitionismeasuredastheaggregate
of the fairvaluesof theassetsacquired, liabilitiesassumedandequity instruments issuedat thedateofexchange.Anyconsiderationtransferredistobemeasuredatfairvalueasoftheacquisitiondate. Non-controlling interest that are present ownership interests and entitle their holders to aproportionateshareoftheentity’snetassets intheeventof liquidationmaybe initiallymeasuredeitheratfairvalueoratthenon-controllinginterests’proportionateshareoftherecognizedamountsoftheacquiree’sidentifiablenetassets.Thechoiceofmeasurementbasisismadeonatransaction-by-transactionbasis.Othertypesofnon-controllinginterestsaremeasuredatfairvalueor,whenapplicable,onthebasisspecifiedinanotherFRS.Alltheacquisition-relatedcostsareexpensedofftoincomestatement.
Goodwillonacquisitionwillbemeasuredasthedifferencebetweentheaggregateoffairvalueofconsideration transferred, any non-controlling interests in the acquiree and the fair value at theacquisitiondateof anypreviouslyheldequity interest in theacquiree (if acquiredvia “piecemealacquisition”),andthenetidentifiableassetsacquired.Anybargainpurchase(i.e.“negativegoodwill”)willberecogniseddirectlyintheincomestatement.Goodwillisaccountedforinaccordancewiththeaccountingpolicysetoutinnote(o)below.
Non-controlling interests represent the equity in subsidiaries that are not attributable, directly orindirectly,toownersoftheCompany.Totalcomprehensiveincomeisattributedtonon-controllinginterestsevenifthisresultsinthenon-controllinginterestshavingadeficitposition.
Changeinownershipinterestwhichdoesnotresultinalossofcontrolisaccountedforwithinequity.Wherethechangesinownershipinterestresultsinlossofcontrol,anyremaininginterestintheformersubsidiaryisremeasuredatfairvalueandagainorlossisrecognisedintheincomestatement.
(f) Associate company Anassociatedcompany isanentity inwhich theGrouphassignificant influenceand that isneithera
subsidiarycompanynoraninterestinajointventure.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontroloverthosepolicies.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassignificantinfluence.
IntheCompany’sseparatefinancialstatements,investmentsinassociatedcompaniesarestatedatcostlessimpairmentlosses.Impairmentlossesarechargedtoincomestatement.
Ondisposal,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassociatedcompanydisposedistakentotheincomestatement.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 57
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (f) Associate company (Cont’d) Investment in associated company is accounted for in the consolidated financial statements by the
equitymethodofaccounting.Undertheequitymethod,theinvestmentinassociatedcompanyisinitiallyrecognisedatcostandadjustedthereafterforpost-acquisitionchangesintheGroup’sshareofnetassetsoftheassociatedcompany.
TheGroup’sshareofnetprofitsorlossesandchangesrecogniseddirectlyintheequityoftheassociatedcompanyisrecognisedintheconsolidatedprofitorlossandconsolidatedstatementofchangesinequity,respectively.
AninvestmentinanassociatedcompanyisaccountedforusingtheequitymethodfromthedateonwhichtheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociatedcompany.
Premiumrelatingtoanassociatedcompanyisincludedinthecarryingvalueoftheinvestmentanditisnottestedforimpairmentseparately.Instead,theentirecarryingamountoftheinvestmentistestedforimpairmentinaccordancewiththeaccountingpolicysetoutin(o)below.
DiscountonacquisitionisexcludedfromthecarryingamountoftheinvestmentandisinsteadincludedasincomeinthedeterminationoftheGroup’sshareoftheassociatedcompany’sprofitorlossintheperiodinwhichtheinvestmentisacquired.
UnrealisedgainsontransactionsbetweentheGroupanditsassociatedcompanyareeliminatedtotheextentoftheGroup’sinterestintheassociatedcompany.UnrealisedlossesarealsoeliminatedtotheextentoftheGroup’sinterest,unlessthetransactionprovidesevidenceofimpairmentoftheassettransferred.
Equityaccountingisdiscontinuedwhenthecarryingamountoftheinvestmentinanassociatedcompanydiminishesbyvirtueoflossestozero,unlesstheGrouphasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociatedcompany.
Theresultsandreservesofassociatedcompanyisaccountedforintheconsolidatedfinancialstatementsbased on audited financial statements made up to the end of the financial year and prepared usingaccountingpoliciesthatconformtothoseusedbytheGroupforliketransactionsinsimilarcircumstances.
(g) Property, plant and equipment
Recognition and measurement Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses,
ifany.Thecostofproperty,plantandequipmentincludesexpenditurethatisdirectlyattributabletotheacquisitionofanasset.
Dismantlement, removal or restoration costs are included as part of the cost of property, plant andequipmentiftheobligationfordismantlement,removalorrestorationiscontractedasaconsequenceofacquiringorusingtheasset.
NotestotheFinancialStatements(Cont’d)
58•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(g) Property, plant and equipment (Cont’d)
Recognition and measurement (Cont’d)
Subsequentcostsareincludedintheasset’scarryingamountwhenitisprobablethatfutureeconomicbenefitsassociatedwith theassetwill flow to theGroupand thecostof theassetcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.
Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialyearinwhichthey are incurred. Property, plant and equipment are derecognised upon disposal or when no futureeconomicbenefitsareexpectedfromtheiruseordisposal.Ondisposal,thedifferencebetweenthenetdisposalproceedsandthecarryingamountisrecognisedintheincomestatement.
Depreciation
Freeholdlandisnotdepreciated. Depreciationiscalculatedtowriteoffthedepreciableamountofotherproperty,plantandequipmentona
straight-linebasisovertheirestimatedusefullives.Thedepreciableamountisdeterminedafterdeductingtheresidualvaluefromcost.
Theprincipalannualratesusedforthispurposeare: Buildings 2.5% Plant,machineryandmotorvehicles 10%-20% Furniture,fittingsandequipment 10% Theresidualvalues,usefullivesanddepreciationmethodsarereviewed,andadjustedifappropriate,at
theendofeachreportingperiod.
(h) Investment properties
Investmentpropertiesarepropertiesheldtoearnrentalincomeorforcapitalappreciationorbothratherthanforuseintheproductionorsupplyofgoodsandservicesorforadministrativepurposes,orsaleintheordinarycourseofbusiness.
Investment properties are measured initially at cost and subsequently at fair value with any changerecognisedintheincomestatement.
Investmentpropertiesarederecognisedupondisposalorwhentheyarepermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromtheirdisposal.Ondisposal,thedifferencebetweenthenetdisposalproceedsandthecarryingamountisrecognisedintheincomestatement.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 59
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (i) Leased assets
Finance lease
LeasesinwhichtheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Uponinitialrecognitiontheleasedassetismeasuredatanamountequaltothelowerofitsfairvalueandthepresentvalueoftheminimumleasepayments.
Minimumleasepaymentsmadeunderfinanceleasesareapportionedbetweenthefinanceexpenseandthereductionoftheoutstandingliability.Thefinanceexpenseisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliability.
Operating lease
LeaseswheretheGroupdoesnotassumesubstantiallyalltherisksandrewardsofownershipareclassifiedasoperatingleaseand,exceptforpropertyinterestsheldunderoperatinglease,theleasedassetsarenotrecognisedonthestatementoffinancialposition.Propertyinterestheldunderanoperatingleasewhichisheldtoearnrentalincomeorforcapitalappreciation,orboth,isclassifiedasinvestmentproperty.
Paymentsmadeunderoperatingleasesarerecognisedintheincomestatementonastraight-linebasisoverthetermofthelease.Leaseincentivesreceivedarerecognisedasanintegralpartofthetotalleaseexpense,overthetermofthelease.
(j) Development properties
Developmentpropertiesareclassifiedundertwocategoriesi.e.landheldforpropertydevelopmentandpropertydevelopmentcosts.
Land held for property development is defined as land on which development is not expected to becompletedwithinthenormaloperatingcycle.Usually,nosignificantdevelopmentworkwouldhavebeenundertakenonthese land.Accordingly, landheldforpropertydevelopment isclassifiedasnon-currentassetsonthestatementoffinancialpositionandisstatedatcostplusincidentalexpenditureincurredtoputthelandinaconditionreadyfordevelopment.
Landonwhichdevelopmenthascommencedandisexpectedtobecompletedwithinthenormaloperatingcycleisincludedinpropertydevelopmentcosts.Propertydevelopmentcostscompriseallcoststhataredirectly attributable to development activities or that can be allocated on a reasonable basis to suchactivities.
Where the outcome of a development can be reasonably estimated, revenue is recognised on thepercentageofcompletionmethod.Thestageofcompletion iseitherdeterminedbytheproportionthatcostsincurredtodatebeartoestimatedtotalcostsorsurveysofworkperformed.Inapplyingthecostincurredmethodofdeterminingstageofcompletion,onlythosecoststhatreflectactualdevelopmentworkperformedareincludedascostsincurred.
NotestotheFinancialStatements(Cont’d)
60•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(j) Development properties (Cont’d)
Where the outcome of a development cannot be reasonably estimated, revenue is recognised to theextent of property development costs incurred that is probable will be recoverable, and the propertydevelopmentcostsonthedevelopmentunitssoldshallberecognisedasanexpense in theperiod inwhichtheyareincurred.
When it is probable that total costs will exceed total revenue, the foreseeable loss is immediately
recognisedintheincomestatementirrespectiveofwhetherdevelopmentworkhascommencedornot,orofthestageofcompletionofdevelopmentactivity,oroftheamountsofprofitsexpectedtoariseonotherunrelateddevelopmentprojects.
Theexcessofrevenuerecognisedintheincomestatementoverthebillingstopurchasersofpropertiesisrecognisedasaccruedbillingsundercurrentassets.
Theexcessofbillingstopurchasersofpropertiesoverrevenuerecognisedintheincomestatement is
recognisedasprogressbillingsundercurrentliabilities.
(k) Financial instruments
Afinancial instrument isanycontract thatgives rise tobothafinancialassetofoneenterpriseandafinancialliabilityorequityinstrumentofanotherenterprise.
Initial recognition and measurement
Afinancialinstrumentisrecognisedinthefinancialstatementswhen,andonlywhen,theGroupbecomesapartytothecontractualprovisionsoftheinstrument.
Afinancialinstrumentisrecognisedinitiallyatitsfairvalueplus,inthecaseofafinancialinstrumentnotatfairvaluethroughprofitorloss,transactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialinstrument.
Financial instrument categories and subsequent measurement
Financial assets
Financialassetsareclassifiedasfinancialassetsatfairvaluethroughprofitor lossorheld-to-maturityinvestmentsoravailable-for-salefinancialassetsorloansandreceivables,asappropriate.Managementdeterminestheclassificationofthefinancialassetsassetoutbelowuponinitialrecognition.TheGroupdoesnothaveanyheld-to-maturityfinancialassets.
Financial assets at fair value through profit or loss
Thiscategoryincludesfinancialassetsheldfortrading,includingderivatives(exceptforadesignatedandeffectivehedginginstrument)andfinancialassetsthatarespecificallydesignatedintothiscategoryuponinitialrecognition.Oninitialrecognition,thesefinancialassetsaremeasuredatfairvalue.
Thesubsequentmeasurementoffinancialassetsinthiscategoryisatfairvaluewithchangesinfairvaluerecognisedasgainsorlossesintheincomestatement.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 61
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(k) Financial instruments (Cont’d)
Available-for-sale financial assets
Available-for-salecategorycomprisesinvestmentinequityanddebtsecuritiesinstrumentsthatarenotheldfortrading.
Investments in equity instruments that do not have a quoted market price in an active market andwhosefairvaluecannotbereliablymeasuredaremeasuredatcost.Otherfinancialassetscategorisedasavailable-for-salearesubsequentlymeasuredattheirfairvalueswiththegainor lossrecognisedinothercomprehensiveincome,exceptforimpairmentlosses,foreignexchangegainsandlossesarisingfrommonetaryitemsandgainsandlossesofhedgeditemsattributabletofairvaluehedgeswhicharerecognisedintheincomestatement.Onderecognition,thecumulativegainorlossrecognisedinothercomprehensiveincomeisreclassifiedintoprofitorloss.Interestcalculatedforadebtinstrumentusingtheeffectiveinterestmethodisrecognisedintheincomestatement.
Loans and receivables
This category comprises debt instruments that are not quoted in an active market, trade and otherreceivablesandcashandcashequivalents.Theyare includedincurrentassets,exceptforthosewithmaturitiesgreaterthan12monthswhichareclassifiedasnon-currentassets.
Thesubsequentmeasurementoffinancialassetsinthiscategoryisatamortisedcostusingtheeffectiveinterestmethod,lessallowanceforimpairmentlosses.Anygainsorlossesarisingfromderecognitionor impairment,and through theamortisationprocessof loansandreceivablesare recognised in theincomestatement.
Allfinancialassets,exceptforthosemeasuredatfairvaluethroughprofitorloss,aresubjecttoreviewforimpairment.
Financial liabilities
Financialliabilitiesareclassifiedaseitherfinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesatamortisedcost.
Financialliabilitiesatfairvaluethroughprofitorlosscomprisefinancialliabilitiesthatareheldfortrading,derivatives (except for a designated and effective hedging instrument) and financial liabilities that arespecificallydesignatedintothiscategoryuponinitialrecognition.Thesefinancialliabilitiesaresubsequentlymeasuredattheirfairvalueswiththegainorlossrecognisedintheincomestatement.
All other financial liabilities are subsequently measured at amortised cost using the effective interestmethod.TheGrouponlyhasfinancialliabilitiescategorisedasfinancialliabilitiesatamortisedcostwhicharemeasuredusingtheeffectiveinterestmethod.
NotestotheFinancialStatements(Cont’d)
62•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(k) Financial instruments (Cont’d)
Derecognition of financial assets and liabilities
Afinancialassetorpartofitisderecognisedwhen,andonlywhenthecontractualrightstothecashflowsfromthefinancialassetexpireorthefinancialassetistransferredtoanotherpartywithoutretainingcontrolorsubstantiallyallrisksandrewardsoftheasset.
Onderecognitionofafinancialasset, thedifferencebetweenthecarryingamountandthesumof theconsideration received together with any cumulative gain or loss that has been recognised in othercomprehensiveincomeisrecognisedintheincomestatement.
A financial liability or part of it is derecognised when, and only when, the obligation specified in thecontractisdischargedorcancelledorexpires.
Onderecognitionofafinancialliability,thedifferencebetweenthecarryingamountandtheconsiderationpaid,includinganynon-cashassetstransferredorliabilitiesassumed,isrecognisedintheincomestatement.
(l) Inventories
Inventories are statedat the lowerof cost andnet realisable value.Costof inventoriesof completedhousesheldforsaleisdeterminedbasedonthespecificidentificationmethod.
Netrealisablevaluerepresentstheestimatedsellingpriceintheordinarycourseofbusiness,lesssellinganddistributioncosts.
(m) Share capital
Ordinarysharesarerecordedatnominalvalueandproceedsreceivedinexcessofthenominalvalueofsharesissued,ifany,areaccountedforassharepremium.Bothordinarysharesandsharepremiumareclassifiedasequity.Costsincurreddirectlyattributabletotheissuanceofsharesareaccountedforasadeductionfromsharepremium,ifany,otherwisetheyarechargedtotheincomestatement.
Dividends on the ordinary shares, when declared or proposed by the Directors of the Company aredisclosedinthenotestothefinancialstatements.Uponapprovalandwhenpaid,suchdividendswillbeaccountedforintheshareholders’equityasanappropriationofunappropriatedprofitinthefinancialyearinwhichthedividendsarepaid.
(n) Income recognition
(i) Revenue from the sale of development properties represents the proportionate sales value ofdevelopmentpropertiessoldattributabletothepercentageofdevelopmentworkperformedduringthefinancialyear.
Revenue fromthesaleofcompleteddevelopmentproperties ismeasuredat the fairvalueof the
considerationreceivableandisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.
(ii) Revenue fromconstructioncontracts represents theproportionatecontractvalueofconstructioncontractsattributabletothepercentageofcontractworkperformedduringthefinancialyear.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 63
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(n) Income recognition (Cont’d) (iii) Distribution from short term investments is recognised when the right to receive payment is
established.
(iv) Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.
(v) Interestincomeisrecognisedonatimeproportionbasis.
(vi) Rentalincomeisrecognisedonastraight-linebasisoverthespecifictenureoftherespectiveleases.Leaseincentivesgrantedarerecognisedasanintegralpartofthetotalrentalincome,overthetermofthelease.
(o) Impairment of non-financial assets Goodwill
Goodwill isreviewedannuallyforimpairment,ormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.
Forthepurposeofimpairmenttesting,goodwillisallocatedtoeachoftheGroup’scash-generatingunitsthatareexpectedtobenefitfromsynergiesofthebusinesscombination.
Animpairmentlossisrecognisedintheincomestatementwhenthecarryingamountofthecash-generatingunit,includingthegoodwill,exceedstherecoverableamountofthecash-generatingunit.Therecoverableamountofthecash-generatingunitisthehigherofthecash-generatingunit’sfairvaluelesscosttosellanditsvalueinuse.
Thetotalimpairmentlossisallocatedfirsttoreducethecarryingamountofgoodwillallocatedtothecash-generatingunitandthentotheotherassetsofthecash-generatingunitproportionatelyonthebasisofthecarryingamountofeachassetinthecash-generatingunit.
Impairmentlossrecognisedongoodwillisnotreversedintheeventofanincreaseinrecoverableamountinsubsequentperiods.
Property, plant and equipment, investment properties, land held for development and investment in associate and subsidiaries
Property, plant and equipment, investment properties, land held for development and investment inassociateandsubsidiariesareassessedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.
Ifsuchanindicationexists,theasset’srecoverableamountisestimated.Therecoverableamountisthehigherofanasset’sfairvaluelesscosttosellanditsvalueinuse.Valueinuseisthepresentvalueofthe futurecashflowsexpected tobederived fromtheassets.Recoverableamountsareestimated forindividualassetsor,ifitisnotpossible,forthecash-generatingunittowhichtheassetbelongs.
An impairment loss is recognisedwhenever thecarryingamountofanassetoracash-generatingunitexceedsitsrecoverableamount.Impairmentlossesarechargedtotheincomestatement.
Anyreversalofan impairment lossasa resultofasubsequent increase in recoverableamountshouldnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation,ifapplicable)hadnoimpairmentlossbeenpreviouslyrecognisedfortheasset.
NotestotheFinancialStatements(Cont’d)
64•UOA DEVELOPMENT BHDAnnualReport2011
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(p) Impairment of financial assets
Allfinancialassetsexceptforfinancialassetscategorisedasfairvaluethroughprofitorlossareassessedateachreportingdateforanyobjectiveevidenceofimpairmentasaresultofoneormoreeventshavinganimpactontheestimatedfuturecashflowsoftheasset.Lossesexpectedasaresultoffutureevents,nomatterhowlikely,arenotrecognised.Foranequityinstrument,asignificantorprolongeddeclineinthefairvaluebelowitscostisobjectiveevidenceofimpairment.
Assets carried at amortised cost
Ifthereisobjectiveevidencethatanimpairmentlossonfinancialassetscarriedatamortisedcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset’soriginaleffectiveinterestrate.Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount.Theimpairmentlossisrecognisedintheincomestatement.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can berelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairment loss is reversed to the extent that the carrying amount of the asset does not exceed itsamortisedcostatthereversaldate.Theamountofreversalisrecognisedintheincomestatement.
Assets carried at cost
If there isobjectiveevidence thatan impairment lossonfinancialassetscarriedatcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthecurrentmarketrateofreturnforasimilarfinancialasset.
Suchimpairmentlossesarenotreversedinsubsequentperiods.
(q) Employee benefits
Short-term employee benefits
Wages,salaries,paidannual leave,paidsick leaveandbonusesarerecognisedasanexpense in theperiodinwhichtheassociatedservicesarerenderedbyemployeesotherthanthosethatareattributabletopropertydevelopmentactivitiesorconstructioncontractsinwhichcasesuchexpensesarerecognisedinpropertydevelopmentcosts
Post-employment benefits
TheGrouppaysmonthlycontributionstotheEmployeesProvidentFund(“theEPF”)whichisadefinedcontributionplan.
The legalorconstructiveobligationoftheGroup is limitedtotheamountthat it requirestocontributeto theEPF.Thecontributions to theEPFarecharged to the incomestatement in theperiod towhichtheyrelate.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 65
1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(r) Borrowing costs
Thecapitalisationofborrowingcostsaspartofthecostofaqualifyingassetcommenceswhenborrowingcostsarebeing incurredandactivities that arenecessary toprepare theasset for its intendeduseorsale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially allthe activities necessary to prepare the qualifying asset for its intended use or sale are interrupted orcompleted.
Allotherborrowingcostsarechargedtotheincomestatementintheperiodinwhichtheyareincurred.Theinterestcomponentofhirepurchasepaymentsischargedtotheincomestatementoverthehirepurchaseperiod so as to give a constant periodic rate of interest on the remaining tenure of the hire purchaseliabilities.
Investmentincomeearnedonthetemporaryinvestmentofspecificborrowingspendingtheirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostseligibleforcapitalisation.
(s) Taxation
Thetaxexpenseinthestatementofcomprehensiveincomerepresentstheaggregateamountofcurrenttaxanddeferredtaxincludedinthedeterminationofprofitorlossforthefinancialyear.
Onthestatementoffinancialposition,adeferredtaxliabilityisrecognisedfortaxabletemporarydifferenceswhileadeferredtaxassetisrecognisedfordeductibletemporarydifferencesandunutilisedtaxlossesonlytotheextentthatitisprobablethattaxableprofitwillbeavailableinfutureagainstwhichthedeductibletemporarydifferencesandtaxlossescanbeutilised.
Nodeferredtaxisrecognisedfortemporarydifferencesarisingfromtheinitialrecognitionof:
(i) goodwill,or
(ii) anassetorliabilitywhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.
Deferredtaxassetsandliabilitiesaremeasuredbasedontaxconsequencesthatwouldfollowfromthemanner in which the asset or liability is expected to be recovered or settled, and based on tax ratesenactedorsubstantivelyenactedbythereportingdatethatareexpectedtoapplytotheperiodwhentheassetisrealisedorwhentheliabilityissettled.
Currenttaxanddeferredtaxarechargedorcrediteddirectlytoothercomprehensive incomeif thetaxrelatestoitemsthatarecreditedorcharged,whetherinthesameoradifferentperiod,directlytoothercomprehensiveincome.
(t) Cash and cash equivalents
Cashandcashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoinsignificantriskofchangesinvalue.
NotestotheFinancialStatements(Cont’d)
66•UOA DEVELOPMENT BHDAnnualReport2011
NotestotheFinancialStatements(Cont’d)
2. PROPERTY, PLANT AND EQUIPMENT
Plant, machinery Furniture,Group Leasehold Leasehold andmotor fittingsand 2011 building land vehicles equipment TotalCost RM’000 RM’000 RM’000 RM’000 RM’000
At1.1.2011 38,328 2,294 29,024 529 70,175
Additions - - 11,103 1,286 12,389
Disposals - - (2,311) - (2,311)
Write-offs - - (62) - (62)
At31.12.2011 38,328 2,294 37,754 1,815 80,191
Accumulateddepreciation
At1.1.2011 2,525 93 16,499 126 19,243
Chargefortheyear 958 23 5,202 172 6,355
Disposals - - (1,996) - (1,996)
Write-offs - - (58) - (58)
At31.12.2011 3,483 116 19,647 298 23,544
Netcarryingamountat31.12.2011 34,845 2,178 18,107 1,517 56,647
2010
At1.1.2010 38,328 2,294 25,613 235 66,470
Additions - - 4,316 295 4,611
Disposals - - (873) - (873)
Write-offs - - (32) (1) (33)
At31.12.2010 38,328 2,294 29,024 529 70,175
Accumulateddepreciation
At1.1.2010 1,567 70 13,341 87 15,065
Chargefortheyear 958 23 4,033 40 5,054
Disposals - - (845) - (845)
Write-offs - - (30) (1) (31)
At31.12.2010 2,525 93 16,499 126 19,243
Netcarryingamountat31.12.2010 35,803 2,201 12,525 403 50,932
UOA DEVELOPMENT BHD Annual Report 2011 • 67
2. PROPERTY, PLANT AND EQUIPMENT (cont’d)
Furniture,Company Motor fittingsand2011 vehicles equipment TotalCost RM’000 RM’000 RM’000
At1.1.2011 - - -
Additions 1,709 983 2,692
At31.12.2011 1,709 983 2,692
Accumulateddepreciation
At1.1.2011 - - -
Chargefortheyear 235 81 316
At31.12.2011 235 81 316
Netcarryingamountat31.12.2011 1,474 902 2,376
Includedinproperty,plantandequipmentareassetsacquiredunderunexpiredhirepurchaseandfinanceleasearrangementswithnetcarryingamountsasfollows:
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Plantandmachinery 8,556 5,115 - -
Motorvehicles 2,397 662 1,450 -
10,953 5,777 1,450 -
MotorvehiclesoftheGroupandtheCompanywiththecarryingamountofRM1,156,873(2010:Nil)arevehiclesregisteredinthenameoftheimmediateholdingcompany.ThesemotorvehiclesareheldintrustfortheCompany,byitsimmediateholdingcompany.
NotestotheFinancialStatements(Cont’d)
68•UOA DEVELOPMENT BHDAnnualReport2011
NotestotheFinancialStatements(Cont’d)
3. INVESTMENT PROPERTIES
Atfairvalue Atcost Long Freehold leasehold PropertiesGroup commercial commercial under2011 properties properties development Total RM’000 RM’000 RM’000 RM’000
At1.1.2011 1,185 293,020 60,578 354,783
Additionsfromsubsequentexpenditure 3,768 54,208 25,490 83,466
Transferfrompropertydevelopmentcosts(see note 10) 3,677 - - 3,677
Fairvalueadjustments 28,055 177,081 - 205,136
Reclassifications - 32,811 (32,811) -
At31.12.2011 36,685 557,120 53,257 647,062
2010
At1.1.2010 1,185 82,269 5,011 88,465
Additionsfromsubsequentexpenditure - 25,461 62,607 88,068
Fairvalueadjustments - 178,250 - 178,250
Reclassifications - 7,040 (7,040) -
At31.12.2010 1,185 293,020 60,578 354,783
IncludedunderadditionsduringtheyearareinterestexpensestotalingRM15,272(2010:RM16,029).
Thefairvaluesoftheinvestmentpropertiesarearrivedatbyreferencetovaluationsbyaregisteredindependentvaluerhavingappropriaterecognisedprofessionalqualifications.
4. LAND HELD FOR PROPERTY DEVELOPMENT Group 2011 2010 RM’000 RM’000
Freeholdlandatcost 1,779 1,779
Leaseholdlandatcost 68,271 52,635
Propertydevelopmentcost 8,293 29,091
At1January 78,343 83,505
Purchaseofadditionalleaseholdland 29,488 18,957
Propertydevelopmentcostsincurredduringtheyear 12,837 1,699
Transferredtopropertydevelopmentcosts(see note 10) (38,706) (25,818)
At31December 81,962 78,343
ThetitledeedsforlandwithcarryingamountofNil(2010:RM18,960,000)arependingtransfertotheGroup.
UOA DEVELOPMENT BHD Annual Report 2011 • 69
5. INVESTMENT IN SUBSIDIARY COMPANIES
Company 2011 2010 RM’000 RM’000
Unquotedsharesatcost 49,019 48,171
Thesubsidiarycompanies,allincorporatedinMalaysia,areasfollows:
Equityinterest Principalactivities 2011 2010 % %
IDPIndustrialDevelopmentSdnBhd 100 100 Propertydevelopment
KumpulanSejahteraSdnBhd 100 100 Propertydevelopment
ParamountHillsSdnBhd 100 100 Propertydevelopment
ParamountPropertiesSdnBhd 100 100 Propertydevelopment
SagahartaSdnBhd 100 100 Propertydevelopment
SaujanisSdnBhd 100 100 Propertydevelopment
SunnyUptownSdnBhd 100 100 Propertydevelopment
TiarawoodsSdnBhd 100 100 Propertydevelopment
WindsorTriumphSdnBhd 100 100 Propertydevelopment
MagnaTiaraDevelopmentSdnBhd 100 100 Propertydevelopment
EveriseTiara(M)SdnBhd 60 60 Propertydevelopment
SeriTiaraDevelopmentSdnBhd 85 85 Propertydevelopment
PeninsularHomeSdnBhd 60 60 Propertydevelopment
MagnaKelanaDevelopmentSdnBhd 70 70 Propertydevelopment
CeylonHillsSdnBhd 54 54 Propertydevelopment
ScenicPointDevelopmentSdnBhd 60 60 Propertydevelopment
UOAHospitalitySdnBhd(formerly known as Borderless 100 - ManageandoperatehotelProject Management Sdn Bhd) andserviceapartment
AlliedEngineeringConstructionSdnBhd 100 100 Civilcontractor
URCEngineeringSdnBhd 100 100 Civilcontractor
UOAPropertiesSdnBhd(formerly known as UOA Properties Bhd) 100 100 Investmentholding
-DynastyPortfolioSdnBhd 100 100 Propertyinvestment
-LencanaHarapanSdnBhd 100 100 Propertyinvestment
-BangsarSouthCitySdnBhd 100 100 Propertyinvestment
-NasibUnggulSdnBhd 100 100 Propertyinvestment
-EnchantHeritageSdnBhd 85 85 Propertyinvestment
-TunjangIdamanSdnBhd 100 100 Propertyinvestment
NotestotheFinancialStatements(Cont’d)
70•UOA DEVELOPMENT BHDAnnualReport2011
NotestotheFinancialStatements(Cont’d)
6. INVESTMENT IN THE ASSOCIATE COMPANY Group Company
2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Unquotedordinaryshares 18,830 - 18,570 -
Shareofpost-acquisitionreserves 222 - - -
19,052 - 18,570 -
Thesummarisedfinancialinformationoftheassociatecompanyisasfollows:
2011 2010 RM’000 RM’000
Assets and liabilities
Totalassets 66,448 -
Totalliabilities 17,598 -
Results
Revenue - -
Profitfortheyear 569 -
TheassociatecompanyisEveriseProjectSdnBhd,acompanyincorporatedinMalaysiainwhichtheCompanyholds39%(2010:Nil)oftheequityinterest.
Theprincipleactivityoftheassociatecompanyispropertydevelopment.
7. AMOUNT OWING BY THE ASSOCIATE COMPANY The amount owing by an associate company represents unsecured interest free advances which are not
expectedtoberecalledwithinthenext12months.
8. AVAILABLE-FOR-SALE FINANCIAL ASSETS Group
2011 2010 RM’000 RM’000
Atmarketvalue
InvestmentinUOAREIT(quotedinMalaysia) 21,651 26,797
UOA DEVELOPMENT BHD Annual Report 2011 • 71
9. DEFERRED TAX ASSETS Group
2011 2010 RM’000 RM’000
At1January 8,929 5,581
Originationduringtheyear 6,615 3,348
At31December 15,544 8,929
Temporarydifferencesrecognisedasdeferredtaxassetsarosemainlyfromthedifferencebetweenthemannerinwhichpropertydevelopmentprofitsisrecognisedfortaxandaccountingpurposes.
TheGrouphasrecognisedthedeferredtaxassetasitisprobablethatitsexistingdevelopmentprojectswouldgeneratesufficienttaxableprofitinthefutureagainstwhichthedeferredtaxassetscanbeutilised.
10. PROPERTY DEVELOPMENT COSTS Group
2011 2010 RM’000 RM’000
Freeholdlandatcost 167,188 123,768
Leaseholdlandatcost 15,627 22,911
Propertydevelopmentcost 323,579 201,285
Costrecognisedasexpenseinprioryears (171,202) (133,300)
At1January 335,192 214,664
Costsincurredduringthefinancialyear
-freeholdlandatcost 124,706 43,420
-leaseholdlandatcost 245 -
-developmentandconstructioncosts 377,368 290,924
837,511 549,008
Costsrecognisedasexpenseinincomestatement (259,780) (189,709)
Coststransferredtoinventories (192,315) (49,925)
Coststransferredtoinvestmentproperty(see note 3) (3,677) -
Coststransferredfromlandheldforpropertydevelopment(see note 4) 38,706 25,818
At31December 420,445 335,192
InterestcapitalisedduringthefinancialyearamountedtoRM694,106(2010:RM343,932).
NotestotheFinancialStatements(Cont’d)
72•UOA DEVELOPMENT BHDAnnualReport2011
NotestotheFinancialStatements(Cont’d)
10. PROPERTY DEVELOPMENT COSTS (Cont’d)
Includedinpropertydevelopmentcostsarethefollowingstatedatcarryingamount:
2011 2010 RM’000 RM’000
LandwithtitledeedswhichareregisteredinthenamesofthirdpartywithwhomtheGrouphasenteredintojointdevelopmentagreements 8,558 8,558
LandwithtitledeedspendingtransfertotheGroup 23,957 5,000
Landchargedtosecurebankborrowingsreferredtoinnote29 79,184 79,184
11. INVENTORIES Group
2011 2010 RM’000 RM’000
Stockofcompleteddevelopmentpropertiesatcost 332,686 184,069
DevelopmentpropertiesforwhichtitledeedshaveyettobeissuedinthenameoftheGroup,atcost 4,707 4,707
12. ACCRUED BILLINGS/(PROGRESS BILLINGS) Group 2011 2010 RM’000 RM’000
Revenuerecognisedtodate 685,485 534,365
Progressbillingstodate (595,287) (485,636)
90,198 48,729
Accruedbillings 111,021 69,114
Progressbillings (20,823) (20,385)
90,198 48,729
13. TRADE AND OTHER RECEIVABLES Group Company
2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Tradereceivables(Note 13.1) 99,546 101,037 - -
Sundryreceivables,depositsandprepayments(Note 13.2) 46,305 22,366 11,826 1,470
145,851 123,403 11,826 1,470
Allowancefordoubtfuldebts (1,699) (4,128) (1,300) (1,300)
144,152 119,275 10,526 170
UOA DEVELOPMENT BHD Annual Report 2011 • 73
13.1 TRADE RECEIVABLES Group
2011 2010 RM’000 RM’000
Progressbillingsreceivable 86,663 78,650
Fundsheldbystakeholders 11,950 14,650
Othergrossreceivables 933 7,737
Totalgrossreceivables 99,546 101,037
Allowancefordoubtfuldebts (158) (82)
99,388 100,955
Theprogressbillingsareduewithin14to90daysasstipulatedinthesaleandpurchaseagreements. Thefundsheldbystakeholdersareduetoberefundedwithin12monthsexceptforamountstotalingRM4,800,000
whicharetoberefundedbetween13and24months.Theseamountsarenotconsideredmaterialtobeclassifiedasnon-currentassets.
Otherreceivablesareduewithin14to45days.
13.2. SUNDRY RECEIVABLES, DEPOSITS AND PREPAYMENTS
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Refundabledepositspaidfortheacquisitionofdevelopmentland 19,173 9,063 - -
AmountsowingbycompaniesinwhichcertaindirectorsoftheCompanyhavesubstantialfinancialinterest - 7 - -
Sundryreceivables 16,418 7,388 11,131 1,467
Depositsandprepayments 10,714 5,908 695 3
46,305 22,366 11,826 1,470
Allowancefordoubtfuldebts (1,541) (4,046) (1,300) (1,300)
44,764 18,320 10,526 170
NotestotheFinancialStatements(Cont’d)
74•UOA DEVELOPMENT BHDAnnualReport2011
14. HOLDING COMPANIES
TheimmediateholdingcompanyisUOAHoldingsSdnBhd,acompanyincorporatedinMalaysiawhichowns67.05%(2010:88.47%)oftheissuedsharecapitaloftheCompany.
TheultimateholdingcompanyisUnitedOverseasAustraliaLtd(“UOA”),acompanyincorporatedinAustralia. Theamountowingbytheimmediateholdingcompanywhichrepresentsunsecuredinterestfreeadvanceswhich
werefullysettledduringthefinancialyear.
Theamountowingtotheimmediateholdingcompanyisunsecuredandanalysedasfollows:
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Interestfreeadvances - 202,930 - -
Managementfeepayable 1,795 8,708 1,795 -
1,795 211,638 1,795 -
Theinterestfreeadvanceswerefullysettledduringthefinancialyear.Themanagementfeepayableisexpectedtobesettledwithinthenormalcreditperiod.
15. AMOUNTS OWING BY SUBSIDIARY COMPANIES
Theamountsowingbysubsidiarycompaniesareunsecuredandanalysedasfollows:
Company 2011 2010 RM’000 RM’000
Interestfreeadvances 670,979 96,308
Managementfeereceivable 8,497 -
679,476 96,308
16. AMOUNTS OWING BY/TO RELATED COMPANIES The amounts owing by the related companies which represent unsecured interest free advances were fully
settledduringthefinancialyear.
Theamountowingtorelatedcompaniesisunsecuredandanalysedasfollows:
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Interestfreeadvances - 10,124 - -
Managementfeereceivable 129 - 129 -
129 10,124 129 -
Theinterestfreeadvanceswerefullysettledduringthefinancialyear.Themanagementfeereceivableisexpectedtobesettledwithinthenormalcreditperiod.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 75
17. SHORT TERM INVESTMENTS Group Company
2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Shorttermfunds,atcost 165,631 1,423 151,311 -
Theshorttermfundsaremanagedandinvestedintofixedincomesecuritiesandmoneymarketinstrumentsbyfundmanagementcompanies.Theshorttermfundsarereadilyconvertibletocash.
18. FIXED DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS Included in fixed deposits is an amount of RM362,803 (2010: RM354,119) charged to obtain a bridging loan
(See note 29).
Theeffective interestratesofthefixeddepositsrangebetween1.80%to3.05%(2010:1.75%to2.65%)perannum.Alldepositshavematuritiesoflessthanoneyear.
19. CASH AND BANK BALANCES CashandbankbalancesoftheGroupincludeanamountofRM38,777,739(2010:RM18,579,707)maintained
intheHousingDevelopmentAccounts.WithdrawalsfromtheHousingDevelopmentAccountsarerestrictedinaccordancewiththeHousingDevelopment(HousingDevelopmentAccount)Regulations1991.
FundsmaintainedintheHousingDevelopmentAccountsearninterestrangingfrom1.65%to2.05%(2010:1.00%to1.75%)perannum.
20. SHARE CAPITAL
2011 2010 No of Noof shares shares (’000) RM’000 (’000) RM’000
Authorised:
OrdinarysharesofRM1.00each
Atbeginningoftheyear 50,000 50,000 50,000 50,000
Cancelledduringtheyear (50,000) (50,000) - -
OrdinarysharesofRM0.05each
Replacementofshares 1,000,000 50,000 - -
Createdduringtheyear 1,000,000 50,000 - -
Atendoftheyear 2,000,000 100,000 50,000 50,000
NotestotheFinancialStatements(Cont’d)
76•UOA DEVELOPMENT BHDAnnualReport2011
20. SHARE CAPITAL (Cont’d)
2011 2010 No of Noof shares shares (’000) RM’000 (’000) RM’000
Issuedandfullypaid:
OrdinarysharesofRM1.00eachAtbeginningoftheyear 43,755 43,755 37,737 37,737
IssuedpursuanttotheacquisitionofEveriseProjectSdnBhd 1,688 1,688 6,018 6,018
45,443 45,443 43,755 43,755
Cancelledduringtheyear (45,443) (45,443) - -
OrdinarysharesofRM0.05each Replacementofshares 908,860 45,443 - -
IssuedpursuanttotheIPO 287,000 14,350 - -
Atendoftheyear 1,195,860 59,793 43,755 43,755
21. SHARE PREMIUM
Company 2011 RM’000
1,688,810ordinarysharesofRM1.00eachatapremiumofRM10.00pershare, ontheacquisitionofEveriseProjectSdnBhd 16,888
287,000,000ordinarysharesatRM0.05eachatapremiumofRM2.55pershare, netoflistingexpensesontheIPO 709,610
726,498
22. MERGER RESERVE Group 2011 2010 RM’000 RM’000
At1January 2,252 -
Arisingfromtheacquisitionof:
-AlliedEngineeringConstructionSdnBhd - (3,523)
-URCEngineeringSdnBhd - 5,320
-UOAPropertiesSdnBhd(formerly known as UOA Properties Bhd) - 455
At31December 2,252 2,252
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 77
23. FAIR VALUE RESERVE
Thefairvaluereservearosefromfairvaluechangesinavailable-for-salefinancialassets.
24. AMOUNTS OWING TO NON-CONTROLLING SHAREHOLDERS OF SUBSIDIARY COMPANIES
Theamountsowingtonon-controllingshareholdersofsubsidiarycompaniesrepresentunsecuredinterestfreeadvanceswhicharenotexpectedtoberecalledwithinthenext12months.
25. HIRE PURCHASE AND FINANCE LEASE LIABILITIES
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Totalfutureinstalmentspayable 10,040 5,379 1,507 -
Unexpiredtermcharges (950) (465) (131) -
Totaloutstandingprincipal 9,090 4,914 1,376 -
Futureinstalmentspayable
-notlaterthanoneyear 3,760 2,665 446 -
-laterthanoneyearbutnotlaterthanfiveyears 6,280 2,714 1,061 -
Totalfutureinstalmentspayable 10,040 5,379 1,507 -
Outstandingprincipal
-notlaterthanoneyear(included under current liabilities) 3,299 2,374 386 -
-laterthanoneyearbutnotlaterthanfiveyears(included under non-current liabilities) 5,791 2,540 990 -
Totaloutstandingprincipal 9,090 4,914 1,376 -
Theeffectiveinterestratesofthehirepurchaseandfinanceleaseliabilitiesarebetween4.30%-8.84%(2010:4.30%-8.84%)perannum.
26. LONG TERM BORROWING Group 2011 2010 RM’000 RM’000
Revolvingloan 2,065 2,065
TherevolvingloanissecuredbyanassignmentofapartmentstobebuiltonadevelopmentprojectcurrentlyundertakenbytheGroup.Theloanispayableonorbefore30July2014.Theinterestischargeableatafixedrateof3%perannumafter30July2011.
NotestotheFinancialStatements(Cont’d)
78•UOA DEVELOPMENT BHDAnnualReport2011
27. DEFERRED TAX LIABILITY Group 2011 2010 RM’000 RM’000
At1January 10,498 553
Originationduringtheyear 9,952 9,945
At31December 20,450 10,498
Representedby:
Taxeffectsofexcessofcapitalallowancesclaimedoveraccumulateddepreciationonproperty,plantandequipment 1,044 675
RealPropertyGainsTax 19,406 9,823
20,450 10,498
28. TRADE AND OTHER PAYABLES Group Company
2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Tradepayables(Note 28.1) 113,597 101,240 - -
Sundrypayables,depositsandaccruals(Note 28.2) 58,110 38,450 7,858 375
171,707 139,690 7,858 375
28.1. TRADE PAYABLES Group 2011 2010 RM’000 RM’000
Sub-contractors’claims 31,679 45,644
Retentionsums 23,622 21,370
Accruedconstructioncosts 51,668 26,648
Othertradepayables 6,628 7,578
113,597 101,240
Thenormalcredittermsextendedbysub-contractorsandsuppliersrangebetween30and60days.
The retentionsumsarepayableupon theexpiryof thedefect liabilityperiodof12 to18monthsexcept foramounttotalingRM6,362,981ispayablewithin13and24months.Thisamountisnotconsideredmaterialtobeclassifiedtonon-currentliabilities.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 79
28.2. SUNDRY PAYABLES, DEPOSITS AND ACCRUALS
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Unpaidconsiderationforproperty,plantandequipmentacquired - 382 - -
AmountsowingtocompaniesinwhichcertaindirectorsoftheCompanyhavesubstantialfinancialinterest - 333 - 333
Sundrypayables 5,069 15,487 93 37
Deposits 8,659 6,739 - -
Interestpayable 167 685 - -
Accruals 44,215 14,824 7,765 5
58,110 38,450 7,858 375
29. SHORT TERM BORROWINGS
Group 2011 2010 RM’000 RM’000
Revolvingcredit 4,047 140,066
Revolvingloan - 9,129
Bridgingloan 1,260 237
5,307 149,432
Therevolvingcreditissecuredbyacorporateguaranteefromtheimmediateholdingcompany.Therevolvingcreditisrepayableondemandandbearsinterestbetween3.00%and5.20%(2010:4.50%to5.20%)perannum.
Therevolvingloanwasfullyrepaidduringthefinancialyear.
Thebridgingloanissecuredasfollows:
(i) achargeoverafixeddepositoftheGroupamountingtoRM362,803(2010:RM354,119)(ii) acorporateguaranteefromtheimmediateholdingcompany(iii) alegalchargeoveravacantcommerciallandincludedunderpropertydevelopmentcosts(see Note 10)at
RM79,184,000.
ThebridgingloanfacilityisRM50million,andbearsinterestat1.5%pluscostoffunds(effectiverate:4.84%)perannum.
NotestotheFinancialStatements(Cont’d)
80•UOA DEVELOPMENT BHDAnnualReport2011
30. REVENUE
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Saleofdevelopmentproperties 490,248 345,377 - -
Saleofinventories 123,348 29,852 - -
Dividendincomefromsubsidiarycompanies - - 6,667 33,188
613,596 375,229 6,667 33,188
31. COST OF SALES
Group 2011 2010 RM’000 RM’000
Costofdevelopmentpropertiessold 259,780 180,682
Costofinventoriessold 38,090 15,863
297,870 196,545
32. FINANCE COSTS
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Amortisationoffinancialliabilities 3,581 1,759 819 -
Interestpayabletorelatedcompany - 571 - -
Hirepurchaseandfinanceleaseinterest 457 430 52 -
Termloaninterest - 2 - -
4,038 2,762 871 -
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 81
33. PROFIT BEFORE TAX
Profitbeforetaxisstatedaftercharging:
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Auditors’remuneration
-currentyear 219 152 60 3
-(over)/underestimatedinprioryear (8) - 2 2
Badanddoubtfuldebts 76 7,930 - -
Depreciation 6,355 5,054 316 -
Property,plantandequipmentwrittenoff 4 2 - -
Impairmentofavailable-for-salefinancialassets - 3,552 - -
Directoperatingexpensesonrevenuegeneratinginvestmentproperties 6,725 3,946 - -
Directors’remuneration
-fee 90 - 90 -
-otherthanfee 1,398 - 1,398 -
Lossondisposalofsubsidiarycompanies - 998 - 629
andcrediting:
Allowancefordoubtfuldebtsnolongerrequired 2,505 - - -
Discountonacquisitionofsharesinanassociatedcompany 260 - - -
Distributionfromshortterminvestments 3,650 493 3,419 1
DistributionfromUOAREIT 1,617 1,950 - -
Interestincome 6,983 3,807 1,014 3
Rentalincome 14,443 11,848 - -
Gainondisposalofavailable-for-salefinancialassets 546 34 - -
Gainondisposalofproperty,plantandequipment 210 205 - -
Gainonredemptiononshortterminvestments - 7 - -
Directors’remunerationdoesnotincludetheestimatedmonetaryvalueofbenefits-in-kindasfollows:
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Directors 44 - 44 -
NotestotheFinancialStatements(Cont’d)
82•UOA DEVELOPMENT BHDAnnualReport2011
34. TAX EXPENSE Group Company
2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Malaysiantaxbasedonresultsfortheyear
-currentincometax 76,152 45,521 1,977 3,034
-deferredincometax (6,355) (4,646) - -
-deferredRealPropertyGainsTax 9,583 11,293 - -
79,380 52,168 1,977 3,034
(Over)/Underestimatedinprioryear
-currenttax (602) 574 - -
-deferredtax 109 43 - -
(493) 617 - -
78,887 52,785 1,977 3,034
Theprovisionfortaxationdiffersfromtheamountoftaxationdeterminedbyapplyingtheapplicablestatutorytaxratetotheprofitbeforetaxasaresultofthefollowingdifferences:
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Accountingprofit 481,798 332,422 10,340 32,501
Taxationatstatutoryrate 120,449 83,105 2,585 8,125
Taxeffectof
-non-deductibleexpenses 1,984 4,955 378 173
-non-taxableincome (3,178) (1,153) (961) (5,264)
Effectofshareofresultsofassociates (56) - - -
Utilisationofdeferredtaxassetpreviouslynotrecognised (623) - (25) -
Deferredtaxassetnotrecognised 62 - - -
DifferencebetweenincometaxrateandRealPropertyGainsTaxrateapplicableonfairvalueadjustmentsoninvestmentproperties (39,258) (34,739) - -
(Over)/Underestimatedinprioryear (493) 617 - -
78,887 52,785 1,977 3,034
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 83
35. EARNINGS PER ORDINARY SHARE
BasicearningspershareiscalculatedbydividingtheGroup’sprofitattributabletoownersoftheCompanyfortheyearbytheweightedaveragenumberofordinarysharesoutstandingduringthefinancialyearheldbytheCompany. Group 2011 2010 ’000 ’000
ProfitattributabletoownersoftheCompany(RM’000) 384,806 272,491
Numberofordinarysharesatbeginningoftheyear 43,755 37,737
Effectofsharesissuedpursuantto:
-issuancetotheacquisitions 23,033 109,241
-replacementofshares 831,341 619,813
-issuancetotheIPO 161,978 -
Weightedaveragenumberofordinaryshares 1,060,107 766,791
Netearningsperordinaryshare(RM) 0.36 0.36
36. DIVIDENDS
2011 2010 RM’000 RM’000
In respect of financial year ended 31 December 2010
Dividends paid by URC Engineering Sdn Bhd
FirstinterimdividendofRM2.56pershareless25%incometax - 13,500
SecondinterimdividendofRM1.92pershare(singletier) - 13,500
Dividends paid by UOA Development Bhd
Firstinterimdividendof2.64senpershare(singletier) - 1,000
Secondinterimdividendof3.97senpershare(singletier) - 1,500
Thirdinterimdividendof0.34senpershare(singletier) - 130
- 29,630
37. ADDITIONS TO INVESTMENT PROPERTY
Group 2011 2010 RM’000 RM’000
Aggregatecostofinvestmentpropertyacquiredand subsequentexpenditure(Note 3) 83,466 88,068
Interestexpensecapitalised (15) (16)
83,451 88,052
NotestotheFinancialStatements(Cont’d)
84•UOA DEVELOPMENT BHDAnnualReport2011
38. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Aggregatecostofproperty,plantand equipmentacquired(see note 2) 12,389 4,611 2,692 -
Cashpaidinrespectofprioryear’sacquisition 382 199 - -
Financedviahirepurchaseandfinancelease (7,392) (1,096) (1,682) -
Unpaidbalancesincludedundersundrypayables, depositsandaccruals(see note 28) - (382) - -
5,379 3,332 1,010 -
39. DISPOSAL OF SHARES IN SUBSIDIARY COMPANIES
Therewasnodisposalof subsidiaryduring theyear.Thesubsidiarycompaniesdisposedduring2010wereFederaya Development Sdn Bhd, Midah Heights Sdn Bhd, Multiplex Strategy Sdn Bhd and PembangunanNovarayaSdnBhd.
Theanalysisofthedisposalofsubsidiarycompaniesisasfollows:
2010 RM’000
Currentassets 1,169
Currentliabilities (78)
Non-controllinginterests (93)
Shareofnetassets 998
Lossondisposalofsubsidiarycompanies (998)
Totalsalesconsideration -*
Less:Cashandcashequivalentsdisposed (874)
Netcashoutflowduringtheyear (874)
* Represent RM157
40. ACQUISITION OF SHARES IN NEW SUBSIDIARY COMPANIES
Detailsofthenewsubsidiarycompaniesacquiredareasfollows:
Group’sNameofsubsidiary Purchase effective Effectivecompaniesacquired consideration interest acquisitiondate RM %
2011
UOAHospitalitySdnBhd(formerly known as Borderless Project Management Sdn Bhd) 2 100.00 19September2011
2010
CeylonHillsSdnBhd 54 54.00 29March2010
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 85
40. ACQUISITION OF SHARES IN NEW SUBSIDIARY COMPANIES (Cont’d)
The revenueandnet (loss)/gain for the year inwhich theacquisitions tookplaceand their post acquisitioncontributionincludedintheconsolidatedincomestatementswereasfollows:
2011 2010 RM’000 RM’000
Revenue
Duringthefinancialyear - -
Pre-acquisition - -
Post-acquisition - -
Net(loss)/gainfortheyear
Duringthefinancialyear (5) 2,698
Pre-acquisition - -
Post-acquisition (5) 2,698
Thenetassetsoftheacquiredsubsidiarycompanyincludedintheconsolidatedstatementoffinancialpositionattheendofthefinancialyearwereasfollows:
2011 2010 RM’000 RM’000
Currentassets - 27,047
Non-currentliabilities - (9,731)
Currentliabilities (5) (14,617)
Non-controllinginterest - (1,241)
Group’sshareofnetassets (5) 1,458
41. EMPLOYEE BENEFITS EXPENSE
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Employeebenefitsexpense 15,784 304 15,420 -
IncludedintheemployeebenefitsexpenseareEPFcontributionsamountingtoRM1,561,379(2010:RM15,916)fortheGroupandRM1,538,765(2010:Nil)fortheCompany.
In2010,theGroupdoesnothaveanyotheremployeeasitobtainsmanagementservicesfromitsimmediateholdingcompany.
NotestotheFinancialStatements(Cont’d)
86•UOA DEVELOPMENT BHDAnnualReport2011
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Tr
ansa
ctio
nva
lue
Bal
ance
out
stan
din
g
G
roup
Com
pan
y
Gro
up
C
omp
any
2011
20
10
2011
20
10
2011
20
10
2011
20
10
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
Tran
sact
ions
with
ulti
mat
e ho
ldin
g co
mp
any
Acq
uisi
tion
of
-A
llied
Eng
inee
ring
Con
stru
ctio
nS
dn
Bhd
-47
,000
-
--
--
-
-U
RC
Eng
inee
ring
Sd
nB
hd
- 8,
500
- -
- -
- -
Tran
sact
ions
with
imm
edia
te h
old
ing
com
pan
y
Acq
uisi
tion
of
-U
RC
Eng
inee
ring
Sd
nB
hd
-10
,200
-
10,2
00
--
--
-U
OA
Pro
per
ties
Sd
nB
hd
(form
erly
kno
wn
as U
OA
Pro
per
ties
Bhd
)
-49
8-
498
--
--
Dis
pos
alo
f
-M
idah
Hei
ghts
Sd
nB
hd
--*
-
-*
--*
-
-*
-M
ultip
lex
Str
ateg
yS
dn
Bhd
-
-*
--*
-
-*
--*
-Fe
der
aya
Dev
elop
men
tS
dn
Bhd
-
-**
--*
*-
-**
--*
*
Man
agem
ent
fee
pai
d/p
ayab
le
5,36
217
,448
1,
795
-1,
795
8,74
01,
795
-
Ren
talr
ecei
ved
1,
207
2,97
6-
--
--
-
Ren
talp
aid
21
63
-
--
10
--
*R
epre
sent
RM
1
**
Rep
rese
ntR
M70
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 87
42.
RE
LAT
ED
PA
RT
Y T
RA
NS
AC
TIO
NS
(Co
nt’d
)
(a
)S
igni
fican
tre
late
dp
arty
tra
nsac
tions
dur
ing
the
finan
cial
yea
rw
ere
asfo
llow
s(C
ont’
d):
Tr
ansa
ctio
nva
lue
Bal
ance
out
stan
din
g
G
roup
Com
pan
y
Gro
up
C
omp
any
2011
20
10
2011
20
10
2011
20
10
2011
20
10
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
Tran
sact
ions
with
sub
sid
iary
com
pan
ies
Man
agem
ent
fee
rece
ivab
le
--
20,5
87
--
-8,
497
-
Ren
talp
aid
-
-1,
825
--
--
-
Inte
rest
rec
eive
d
--
-17
-
--
-
Tran
sact
ions
with
rel
ated
com
pan
ies
Man
agem
ent
fee
pay
able
1,
264
-1,
163
-12
9-
129
-
Inte
rest
pai
d
-57
1-
17
--
--
Ren
talr
ecei
ved
12
0-
--
--
--
Ren
talp
aid
31
32
-
--
--
-
Tran
sact
ion
with
an
asso
ciat
ed c
omp
any
Man
agem
ent
fee
pay
able
26
9-
269
-26
9-
269
-
NotestotheFinancialStatements(Cont’d)
88•UOA DEVELOPMENT BHDAnnualReport2011
42.
RE
LAT
ED
PA
RT
Y T
RA
NS
AC
TIO
NS
(Co
nt’d
)
(a
)S
igni
fican
tre
late
dp
arty
tra
nsac
tions
dur
ing
the
finan
cial
yea
rw
ere
asfo
llow
s(C
ont’
d):
Tr
ansa
ctio
nva
lue
Bal
ance
out
stan
din
g
G
roup
Com
pan
y
Gro
up
C
omp
any
2011
20
10
2011
20
10
2011
20
10
2011
20
10
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
Tran
sact
ions
with
dire
ctor
s an
d t
heir
clos
e fa
mily
mem
ber
s
Sal
eso
fpro
per
ties
to
-K
ong
Pak
Lim
3,
430
2,04
6-
--
--
-
-K
ong
Cho
ngS
oon
@C
hiS
uim
2,
012
1,81
0-
--
--
-
-K
ong
AiC
hee,
ac
lose
fam
ilym
emb
ero
f
Kon
gC
hong
Soo
n@
Chi
Sui
m
-86
9-
--
--
-
-A
lan
Cha
rles
Win
dus
s
-
864
--
--
--
Tran
sact
ions
with
dire
ctor
s of
sub
sid
iary
com
pan
y an
d t
heir
clos
e fa
mily
mem
ber
s
Sal
eso
fpro
per
ties
to
-K
hor
Soo
Ben
g
-
613
--
--
--
-To
ngE
eP
ing
902
--
--
--
-
-Li
mB
eng
Hoc
k
1,
001
--
--
--
-
-C
lose
fam
ilym
emb
ers
ofL
imB
eng
Hoc
k
1,13
31,
508
--
--
--
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 89
42.
RE
LAT
ED
PA
RT
Y T
RA
NS
AC
TIO
NS
(Co
nt’d
)
(a
)S
igni
fican
tre
late
dp
arty
tra
nsac
tions
dur
ing
the
finan
cial
yea
rw
ere
asfo
llow
s(C
ont’
d):
Tr
ansa
ctio
nva
lue
Bal
ance
out
stan
din
g
G
roup
Com
pan
y
Gro
up
C
omp
any
2011
20
10
2011
20
10
2011
20
10
2011
20
10
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
Tran
sact
ions
with
dire
ctor
s of
imm
edia
te h
old
ing
com
pan
y an
d t
heir
clos
e fa
mily
mem
ber
s
Sal
eso
fpro
per
ties
to
-C
han
Cec
elia
1,
050
2,05
8-
--
--
-
-C
lose
fam
ilym
emb
ero
fCha
nC
ecel
ia
56
9-
--
--
--
Tran
sact
ions
with
a c
omp
any
in w
hich
dire
ctor
,
Kon
g C
hong
Soo
n @
Chi
Sui
m h
as a
sub
stan
tial fi
nanc
ial i
nter
est
Sal
eso
fpro
per
ties
to
-G
lob
alT
rans
act
Sd
nB
hd
-75
8-
--
--
-
-Tr
ansm
etro
Sd
nB
hd
398
--
--
--
-
NotestotheFinancialStatements(Cont’d)
90•UOA DEVELOPMENT BHDAnnualReport2011
42. RELATED PARTY TRANSACTIONS (Cont’d)
(b) Keymanagementpersonnelcompensation
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Directors
Remuneration 1,338 - 1,338 -
Estimatedmonetaryvalueofbenefits-in-kind 44 - 44 -
Totalshort-termemployeebenefits 1,382 - 1,382 -
Post-employmentbenefits
-EPF 150 - 150 -
1,532 - 1,532 -
Other key management personnel
Salaries,allowancesandbonuses 1,874 - 1,193 -
Estimatedmonetaryvalueofbenefits-in-kind 91 - 46 -
Totalshort-termemployeebenefits 1,965 - 1,239 -
Post-employmentbenefits
-EPF 193 - 111 -
2,158 - 1,350 -
Totalcompensation 3,690 - 2,882 -
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 91
43. OPERATING LEASE COMMITMENT
The Group as lessee
The Group leases premises from various parties under operating leases. These leases are non-cancellableandtypicallyrunforaperiodrangingfrom1to3years,withtheoptiontorenew.Noneoftheleasesincludecontingentrentals.TherearenorestrictionsplacedupontheCompanybyenteringintotheseleases.Thefutureminimumleasepaymentspayableunderthenon-cancellableoperatingleasescontractedforasatthereportingdatenotrecognisedaspayables,areasfollows:
2011 2010As lessee RM’000 RM’000
Notlaterthanoneyear 31 42
Laterthanoneyearbutnotlaterthan5years - -
31 42
The Group as lessor
The Group leases out its investment properties under non-cancellable operating leases. These leases runtypicallyforaperiodrangingfrom1to3years,withtheoptiontorenew.Noneoftheleasesincludecontingentrentals.
Thefutureminimumleasepaymentsreceivableunderthenon-cancellableoperatingleasescontractedforasatthereportingdatenotrecognisedasreceivables,areasfollows:
2011 2010As lessor RM’000 RM’000
Notlaterthanoneyear 14,374 13,561
Laterthanoneyearbutnotlaterthan5years 12,640 7,836
27,014 21,397
NotestotheFinancialStatements(Cont’d)
92•UOA DEVELOPMENT BHDAnnualReport2011
44 . COMMITMENTS Group 2011 2010 RM’000 RM’000
Approvedandcontractedfor
-Purchaseofdevelopmentland 123,121 51,805
-Purchaseofproperty,plantandequipment 1,901 3,180
-Constructionofinvestmentproperties 59,263 -
45. CONTINGENT LIABILITIES
Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000
Corporateguaranteesgiventobankstosecurebankingfacilitiesgrantedtosubsidiarycompanies - - 148,235 -
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 93
46.
SE
GM
EN
TAL
INFO
RM
AT
ION
The
Gro
up’s
op
erat
ions
are
prim
arily
org
anis
edin
Mal
aysi
ain
tot
hefo
llow
ing
bus
ines
sse
gmen
ts:
(i)
Pro
per
tyd
evel
opm
ent
(ii)
Con
stru
ctio
n
P
rop
erty
dev
elop
men
tC
onst
ruct
ion
Oth
ers
Elim
inat
ion
Con
solid
ated
2011
20
10
2011
20
10
2011
20
10
2011
20
10
2011
20
10
Gro
up
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
Ext
erna
lrev
enue
61
3,59
637
5,22
9-
--
--
-61
3,59
637
5,22
9
Inte
rse
gmen
tre
venu
e3,
671
-48
8,44
829
5,96
5-
-(4
92,1
19)
(295
,965
)-
-
Tota
lrev
enue
61
7,26
737
5,22
948
8,44
829
5,96
5-
-(4
92,1
19)
(295
,965
)61
3,59
637
5,22
9
Dep
reci
atio
n
(1,3
05)
(1,1
82)
(4,7
34)
(3,8
72)
(316
)-
--
(6,3
55)
(5,0
54)
Ren
tali
ncom
e12
,713
11
,788
27
60
1,
703
--
-14
,443
11
,848
Fair
valu
ead
just
men
ts
10,5
58
136,
231
--
194,
578
42,0
19
--
205,
136
178,
250
Div
iden
din
com
e-
11
-4
1,61
71,
935
--
1,61
71,
950
Inte
rest
inco
me
5,95
13,
795
97
1,02
35
--
6,98
33,
807
Inte
rest
exp
ense
s(2
,797
)(2
,381
)(3
70)
(381
)(8
71)
--
-(4
,038
)(2
,762
)
Oth
ern
on-c
ash
item
s(4
8)
(11,
769)
-
(77)
(2
8)
(24)
-
-(7
6)
(11,
870)
Pro
fitb
efor
eta
x26
7,37
231
0,22
433
,251
19
,025
20
7,68
976
,692
(2
6,51
4)
(73,
519)
48
1,79
833
2,42
2
NotestotheFinancialStatements(Cont’d)
94•UOA DEVELOPMENT BHDAnnualReport2011
46.
SE
GM
EN
TAL
INFO
RM
AT
ION
(Co
nt’d
)
P
rop
erty
dev
elop
men
tC
onst
ruct
ion
Oth
ers
Elim
inat
ion
Con
solid
ated
2011
20
10
2011
20
10
2011
20
10
2011
20
10
2011
20
10
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
R
M’0
00
RM
’000
Seg
men
tas
sets
1,
484,
169
1,08
6,36
725
,414
27
,193
59
3,99
914
0,84
5-
-2,
103,
582
1,25
4,40
5
Rec
onci
liatio
nof
seg
men
t
oper
atin
gas
sets
to
tota
lass
ets
Seg
men
top
erat
ing
asse
ts
2,10
3,58
21,
254,
405
Ava
ilab
le-f
or-s
ale
finan
cial
ass
ets
21,6
51
26,7
97
Def
erre
dt
axa
sset
s
15
,544
8,
929
Tota
lass
ets
asp
ers
tate
men
tof
fina
ncia
lpos
ition
2,14
0,77
71,
290,
131
Seg
men
tlia
bili
ties
123,
617
281,
010
123,
302
248,
375
21,9
94
45,8
11
--
268,
913
575,
196
Rec
onci
liatio
nof
seg
men
t
op
erat
ing
liab
ilitie
sto
to
tall
iab
ilitie
s
Seg
men
top
erat
ing
liab
ilitie
s
26
8,91
357
5,19
6
Def
erre
dt
axli
abili
ties
20,4
50
2,46
8
Cur
rent
tax
liab
ilitie
s
6,
183
10,4
98
Tota
llia
bili
ties
per
the
sta
tem
ent
offi
nanc
ialp
ositi
on
29
5,54
658
8,16
2
Tran
sact
ions
bet
wee
nse
gmen
tsw
ere
ente
red
in
the
norm
alc
ours
eof
bus
ines
san
dw
ere
esta
blis
hed
on
term
san
dc
ond
ition
sth
ata
ren
otm
ater
ially
d
iffer
ent
from
tha
tob
tain
able
int
rans
actio
nsw
ithu
nrel
ated
par
ties.
The
effe
cts
ofs
uch
inte
r-se
gmen
talt
rans
actio
nsa
ree
limin
ated
on
cons
olid
atio
n.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 95
47. FINANCIAL INSTRUMENTS
(a) Classificationoffinancialinstruments
Thetablebelowprovidesananalysisoffinancialinstrumentscategorisedasfollows:
Loans and Available- Loansand Available receivables for-sale receivables for-sale 2011 2011 2010 2010
Group RM’000 RM’000 RM’000 RM’000
Financial assets
Available-for-salefinancialassets - 21,651 - 26,797
Amountowingbyanassociatecompany 3,111 - - -
Tradeandotherreceivables 143,681 - 119,275 -
Amountowingbyimmediateholdingcompany - - 22,036 -
Amountowingbyrelatedcompanies - - 2,465 -
Shortterminvestments 165,631 - 1,423 -
Depositswithlicensedfinancialinstitutions 68,184 - 12,517 -
Cashandbankbalances 53,629 - 24,256 -
Totalfinancialassets 434,236 21,651 181,972 26,797
Atamortisedcost 2011 2010Group RM’000 RM’000
Financial liabilities
Tradeandotherpayables 171,707 139,690
Amountowingtoimmediateholdingcompany 1,795 211,638
Amountsowingtorelatedcompanies 129 10,124
Amountsowingtonon-controllinginterest 57,997 36,948
Longtermborrowing 2,065 2,065
Hirepurchaseandfinanceleaseliabilities 9,090 4,914
Shorttermborrowings 5,307 149,432
Totalfinancialliabilities 248,090 554,811
NotestotheFinancialStatements(Cont’d)
96•UOA DEVELOPMENT BHDAnnualReport2011
47. FINANCIAL INSTRUMENTS (Cont’d)
(a) Classificationoffinancialinstruments(Cont’d)
Loansandreceivables 2011 2010
Company RM’000 RM’000
Financial assets
Amountowingbyanassociatecompany 3,111 -
Tradeandotherreceivables 10,526 170
Amountowingbyimmediateholdingcompany - 9,970
Amountowingbysubsidiarycompanies 679,476 96,308
Amountsowingbyrelatedcompanies - 7
Shortterminvestments 151,311 -
Fixeddepositswithlicensedfinancialinstitutions 4,503 3,500
Cashandbankbalances 894 43
Totalfinancialassets 849,821 109,998
Atamortisedcost 2011 2010Company RM’000 RM’000
Financial liabilities
Tradeandotherpayables 7,858 375
Amountowingtoimmediateholdingcompany 1,795 -
Amountowingtorelatedcompanies 129 -
Hirepurchaseandfinanceleaseliabilities 1,376 -
Totalfinancialliabilities 11,158 375
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 97
47. FINANCIAL INSTRUMENTS (Cont’d)
(b) The carrying amounts of the financial assets and liabilities of the Group and of the Company at thereportingdateapproximatedtheirfairvaluesexceptforthefollowing:
Group Company 2011 2011 Carrying Fair Carrying Fair Note amount value amount value RM’000 RM’000 RM’000 RM’000
Financial asset
Amountowingbyanassociatecompany 7 3,111 3,111* 3,111 3,111*
Financial liability
Amountsowingtonon-controllingshareholdersofsubsidiarycompanies 24 57,997 57,997* - -
Group Company 2010 2010 Carrying Fair Carrying Fair Note amount value amount value RM’000 RM’000 RM’000 RM’000
Financial liability
Amountsowingtonon-controllingshareholdersofsubsidiarycompanies 24 36,948 36,948* - -
*ThefairvaluesareestimatedbydiscountingexpectedfuturecashflowsateithertheCompany’s,ortheassociate’slendingrateforsimilartypesoflendingarrangementsatthereportingdate.
48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES TheGroup is exposed to a varietyof financial risks, including credit risk, interest rate risk,market risk and
liquidityandcashflowrisksarisinginthenormalcourseofbusiness.
TheGroupmonitorsitsfinancialpositioncloselywithanobjectivetominimisepotentialadverseeffectsonitsfinancialperformance.TheGroup’spoliciesformanagingeachoftheserisksaresummarisedbelow:
(a) Credit risk Credit risk arises from the possibility that a counter party may be unable to meet the terms of a
contract inwhichtheGrouphasagainposition.TheGrouphasnosignificantconcentrationofcreditrisk.Nevertheless,theGroup’smanagementhasacreditpolicyinplacetoensurethattransactionsareconductedwithcreditworthycounterparties.
InrespectoftheGroup’sdevelopmentproperties,mostoftheend-buyersobtainend-financingtofundtheirpurchasesoftheGroup’sproperties.Insuchcases,theGroupmitigatesanycreditriskitmayhavebymaintainingitsnameastheregisteredownerofthedevelopmentuntilfullsettlementbythepurchasersoftheself-financedportionofthepurchaseconsiderationanduponundertakingofend-financingbythepurchaser’send-financier.
NotestotheFinancialStatements(Cont’d)
98•UOA DEVELOPMENT BHDAnnualReport2011
48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
(a) Credit risk (Con’td)
In respect of the Group’s investment properties, the Group customarily obtains three months’ rentaldepositfromtenantsassecurityfortheperformanceoftheirobligationsunderthetenancyagreementstomitigatetheriskofnon-collectabilityofmonthlyrentals.
TheGroupseekstoinvestitssurpluscashsafelybydepositingthemwithlicensedfinancialinstitutions.
Theageinganalysisofreceivablesasatthereportingdatewhicharetradeinnatureisasfollows:
2011 Gross ImpairmentGroup RM’000 RM’000
Notpastdue 88,513 -
Lessthan44dayspastdue 7,144 -
Between44and110dayspastdue 2,864 -
Morethan110dayspastdue 1,025 158
99,546 158
2010 Gross ImpairmentGroup RM’000 RM’000
Notpastdue 86,122 -
Lessthan44dayspastdue 5,184 -
Between44and110dayspastdue 8,769 -
Morethan110dayspastdue 962 82
101,037 82
Movementsintheallowancefordoubtfuldebtsoftradereceivablesareasfollows:
Group 2011 2010 RM’000 RM’000
At1January 82 31
Additionalallowance 76 51
At31December 158 82
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 99
48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
(b) Interest rate risk TheGroupisexposedtointerestrateriskwhichistheriskthatafinancialinstrument’svaluewillfluctuate
asaresultofchangesinmarketinterestrates.
Exposure to interest rate risk related primarily to the Group’s interest-bearing borrowings and fixeddeposits.
TheGroup’spolicy is toborrowprincipallyonafloating ratebasisbut to retainaproportionoffixedratedebt.Theobjectiveofamixoffixedandfloatingrateborrowingsistoreducetheimpactofariseininterestratesandtoenablesavingstobeenjoyedifinterestratesfall.TheGroupdoesnotgenerallyhedgeinterestraterisk.TheGrouphasapolicytoensurethatinterestratesobtainedarecompetitive.
Surplusfundsareplacedwithlicensedfinancialinstitutionstoearninterestincomebasedonprevailing
market rates.TheGroupmanages its interest rate riskbyplacingsuch fundsonshort tenuresof12monthsorless.
AsensitivityanalysishasbeenperformedbasedontheoutstandingfloatingrateborrowingsoftheGroupasat31December2011.Ifinterestratesincreaseordecreaseby50basispoints,withallothervariablesheldconstant,theGroup’sprofitaftertaxwoulddecreaseorincreasebyapproximatelyRM26,535,asaresultofhigherorlowerinterestexpenseontheseborrowings.
(c) Market risk TheGroup’sprincipalexposuretomarketriskarisesfromchanges invaluecausedbymovements in
market prices of its quoted investments. The risk of loss is minimised via thorough analysis beforeinvestingandcontinuousmonitoringoftheperformanceoftheinvestments.TheGroupoptimisesreturnsbydisposinginvestmentsafterthoroughanalysis.
Commontoallbusinesses,theoverallperformanceoftheGroup’sinvestmentsisalsodrivenexternallybyglobalanddomesticeconomiesthatarelargelyunpredictableanduncontrollable.
The Group’s investments currently comprise entirely its investment in UOA REIT which the Groupconsiderstobesubjecttominimalmarketrisk.
(d) Liquidity and cash flow risk
TheGroupseekstoensureallbusinessunitsmaintainoptimumlevelsofliquidityatalltimes,sufficientfortheiroperating,investingandfinancingactivities.
Therefore, the policy seeks to ensure that each business unit, through efficient working capital
management(i.e inventory,accountsreceivableandaccountspayablemanagement),mustbeabletoconvertitscurrentassetsintocashtomeetalldemandsforpaymentasandwhentheyfalldue.
Owingtothenatureofthebusinesses,theGroupseekstomaintainsufficientcreditlinesavailabletomeet
theliquidityrequirementswhileensuringaneffectiveworkingcapitalmanagementwithintheGroup.
NotestotheFinancialStatements(Cont’d)
100•UOA DEVELOPMENT BHDAnnualReport2011
48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
(d) Liquidity and cash flow risk (Cont’d)
ThetablebelowsummarisesthematurityprofileoftheGroup’sfinancialliabilitiesatthereportingdatebasedoncontractualundiscountedcashflows.
Less than 1 to 5 Over 5Group 1 year years years Total2011 RM’000 RM’000 RM’000 RM’000
Tradeandotherpayables 171,707 - - 171,707
Amountowingtoimmediateholdingcompany 1,795 - - 1,795
Amountsowingtorelatedcompanies 129 - - 129
Amountsowingtonon-controllingshareholdersofsubsidiarycompanies - 67,556 - 67,556
Hirepurchaseandfinanceleaseliabilities 3,760 6,280 - 10,040
Bankborrowings 5,307 2,065 - 7,372
182,698 75,901 - 258,599
Lessthan 1to5 Over5 1year years years Total2010 RM’000 RM’000 RM’000 RM’000
Tradeandotherpayables 139,690 - - 139,690
Amountowingtoimmediateholdingcompany 211,638 - - 211,638
Amountsowingtorelatedcompanies 10,124 - - 10,124
Amountsowingtonon-controllingshareholdersofsubsidiarycompanies - 44,237 - 44,237
Hirepurchaseandfinanceleaseliabilities 2,665 2,714 - 5,379
Bankborrowings 151,810 2,251 - 154,061
515,927 49,202 - 565,129
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 101
48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)
(d) Liquidity and cash flow risk (Cont’d)
Lessthan 1to5 Over5Company 1year years years Total2011 RM’000 RM’000 RM’000 RM’000
Tradeandotherpayables 7,858 - - 7,858
Amountowingtoimmediateholdingcompany 1,795 - - 1,795
Amountsowingtorelatedcompanies 129 - - 129
Hirepurchaseandfinanceleaseliabilities 446 1,061 - 1,507
10,228 1,061 - 11,289
2010
Tradeandotherpayables 375 - - 375
49. CAPITAL MANAGEMENT TheGroup’sobjectiveswhenmanagingcapitalistomaintainastrongcapitalbaseandsafeguardtheGroup’s
abilitytocontinueasagoingconcern,soastomaintaininvestor,creditorandmarketconfidenceandtosustainfuturedevelopmentofthebusiness.TheDirectorsmonitoranddetermineanoptimaldebt-to-equityratiothatcomplieswithdebtcovenantsandregulatoryrequirements.
TheGroup’sstrategywastomaintainthedebt-to-equityratiobetween10%to25%.Thedebt-to-equityratioatthereportingdatewasasfollows:
2011 2010 RM’000 RM’000
Totalborrowings 16,462 156,411
Less:Cashandcashequivalents (287,081) (37,842)
Net(cash)/debt (270,619) 118,569
Totalequity 1,805,914 680,910
Debt-to-equityratio(%) - 17.4
TherewerenochangesintheGroup’sapproachtocapitalmanagementduringtheyear.
NotestotheFinancialStatements(Cont’d)
102•UOA DEVELOPMENT BHDAnnualReport2011
50. DISCLOSURE OF REALISED AND UNREALISED RETAINED PROFITS ThedisclosureofrealisedandunrealisedprofitsorlossesiscompiledinaccordancetotheMalaysianInstitute
ofAccountantsGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosuresPursuanttoBursaMalaysiaSecuritiesBerhadListingRequirementsissuedon20December2010.
ThebreakdownofretainedprofitsoftheGroupandtheCompanyasatthereportingdate, intorealisedandunrealisedprofits,pursuanttothedirective,areasfollows:
Group Company 2011 2011 RM’000 RM’000
TotalretainedprofitsoftheCompanyanditssubsidiaries:
-Realised 758,931 122,402
-Unrealised 397,879 -
1,156,810 122,402
Totalshareofretainedprofitsfromassociatedcompany:
-Realised 222 -
-Unrealised - -
222 -
Less:Consolidationadjustments (143,218) -
TotalGroup’sandCompany’sretainedprofitsas
perstatementsoffinancialposition 1,013,814 122,402
51. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS Thesefinancialstatementswereauthorisedforissueon28March2012bytheboardofdirectors.
NotestotheFinancialStatements(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 103
STATEMENT BYDIRECTORSPURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
Intheopinionofthedirectors,thefinancialstatementssetoutonpages42to102havebeendrawnup:
(a) soastogiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyat31December2011andoftheirresultsandcashflowsfortheyearthenended;
(b) inaccordancewithFinancialReportingStandardsandtheprovisionoftheCompaniesAct,1965.
Signedonbehalfofthedirectorsinaccordancewithadirectors’resolutiondated28March2012
KONG PAK LIM KONG CHONG SOON @ CHI SUIM Director Director
KualaLumpur
104•UOA DEVELOPMENT BHDAnnualReport2011
STATUTORYDECLARATIONPURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
I, Kong Chong Soon @ Chi Suim, being the director primarily responsible for the financial management of UOADevelopment Bhd do solemnly and sincerely declare that to the best of my knowledge and belief, the financialstatementssetoutonpages42to102arecorrect.
AndImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.
Subscribedandsolemnlydeclaredat )KualaLumpurintheFederalTerritory ) )this28March2012 ) ) ) KONG CHONG SOON @ CHI SUIM )Beforeme:
KANAPATHYA/LA.MANICKAM,PPNW452CommissionerforOaths
UOA DEVELOPMENT BHD Annual Report 2011 • 105
LIST OF MATERIAL PROPERTIES HELD BY THE GROUPAS AT 31 DECEMBER 2011
Yearof LandArea NetBook Valuation/ (sqm)/ Value Location/Address Description Acquisition* noofbays* Tenure (RM’000)
1 BangsarSouth,No.8 3blocksof 2011 44,424 Leasehold99 273,000 JalanKerinchi,KualaLumpur boutiqueoffices years-expiring 16August2106
2 TheSphere,BangsarSouth, Retailcomplex 2011 28,578 Leasehold99 104,800 No.8JalanKerinchi, years-expiring KualaLumpur 16August2106
3 BangsarSouth,No.8 CarparkPhase 2010 4,152* Leasehold99 83,360 JalanKerinchi,KualaLumpur I&II years-expiring 16August2106
4 Lot2507,KualaLumpur Vacant 2011 16,110 Freehold 63,583 commercialland
5 MukimKualaLumpur, 3-storey 2007* 3,930 Leasehold99 14,471 DaerahKualaLumpur, salesgallery years-expiring KualaLumpur 16August2106
6 MukimBatu, Landheld 2004* 67,467 Leasehold99 48,348 DaerahKualaLumpur, fordevelopment years-expiring KualaLumpur 16August2106
7 BangsarSouth,No.2 3-storey 2011 16,553 Leasehold99 43,623 Jalan1/112H,JalanKerinchi, clubhouse years-expiring KualaLumpur 16August2106
8 Lot3678,KualaLumpur Vacant 2011 11,819 Freehold 38,849 commercialland
9 BangsarSouth,No.8 JalanKerinchi,KualaLumpur 1blockof 2011 7,008 Leasehold99 26,272 boutiqueoffice years-expiring 16August2106
10 TheVertical,BangsarSouth, 4development 2011 5,688 Leasehold99 23,260 No.8JalanKerinchi, parcels years-expiring KualaLumpur 16August2106
106•UOA DEVELOPMENT BHDAnnualReport2011
ANALYSIS OFSHAREHOLDINGSAS AT 6 APRIL 2012
AuthorisedShareCapital : RM100,000,000IssuedShareCapital : 1,195,860,000PaidUpShareCapital : RM59,793,000ClassofShares : OrdinarySharesofRM0.05eachVotingRights : OneVoteperOrdinaryShare
DISTRIBUTION OF SHAREHOLDINGS
SizeofShareholdings No.ofShareholders % No.ofShares %
Lessthan100 24 0.26 658 0.00
100to1,000 1,010 11.07 929,201 0.08
1,001to10,000 5,334 58.48 28,518,681 2.38
10,001to100,000 2,420 26.53 83,709,160 7.00
100,001tolessthan5%ofissuedshares 333 3.65 293,843,300 24.57
5%andaboveofissuedshares 1 0.01 788,859,000 65.97
9,122 100.00 1,195,860,000 100.00
LIST OF THIRTY LARGEST SHAREHOLDERS
NameofShareholders No.ofShares %
1 UOAHoldingsSdnBhd 788,859,000 65.97
2 CitigroupNominees(Tempatan)SdnBhd 45,398,300 3.80 EmployeesProvidentFundBoard
3 AmanahrayaTrusteesBerhad 35,579,700 2.98 SkimAmanahSahamBumiputera
4 AmanahrayaTrusteesBerhad 17,604,700 1.47 AmanahSahamWawasan2020
5 RHBCapitalNominees(Tempatan)SdnBhd 14,958,300 1.25 UOAHoldingsSdnBhd
6 PermodalanNasionalBerhad 14,633,200 1.22
7 AmanahrayaTrusteesBerhad 14,083,900 1.18 AmanahSahamMalaysia
8 KumpulanWangPersaraan(Diperbadankan) 9,600,000 0.80
9 CIMBGroupNominees(Tempatan)SdnBhd 6,827,200 0.57 CIMBBankBerhad(EDP2)
10 CitigroupNominees(Tempatan)SdnBhd 5,470,300 0.46 EmployeesProvidentFundBoard(Nomura)
11 CitigroupNominees(Asing)SdnBhd 5,263,000 0.44 CBLDNforAegonCustodyB.V.
UOA DEVELOPMENT BHD Annual Report 2011 • 107
AnalysisofShareholdings(Cont’d)
LIST OF THIRTY LARGEST SHAREHOLDERS (Cont’d)
NameofShareholders No.ofShares %
12 CimsecNominees(Tempatan)SdnBhd 5,000,000 0.42 CIMBBankforKencanaCapitalPartnersSdnBhd(MY1238)
13 RHBCapitalNominees(Tempatan)SdnBhd 4,788,000 0.40 ChewJuLip
14 CitigroupNominees(Tempatan)SdnBhd 4,000,000 0.33 EmployeesProvidentFundBoard(RHBInv)
15 CitigroupNominees(Tempatan)SdnBhd 3,759,500 0.31 EmployeesProvidentFundBoard(Pheim)
16 CimsecNominees(Tempatan)SdnBhd 3,450,000 0.29 CIMBBankforYeowKhengChew(MY1239)
17 CimsecNominees(Tempatan)SdnBhd 3,000,000 0.25 CIMBBankforNoahFoundation(PB)
18 HSBCNominees(Asing)SdnBhd 2,700,000 0.23 BNYMSA/NVforInvescoAseanEquityFund
19 AmanahrayaTrusteesBerhad 2,023,800 0.17 SekimAmanahSahamNasional
20 HSBCNominees(Asing)SdnBhd 2,020,000 0.17 ExemptAnforJPMorganChaseBank, NationalAssociation(JPMINTLBKLTD)
21 CartabanNominees(Asing)SdnBhd 2,017,400 0.17 SSBTFundJ734forSPDRSandPemergingmarket’ssmallcapETF
22 DB(Malaysia)Nominee(Tempatan)SendirianBerhad 1,718,000 0.14 ExemptAnforKumpulanSentiasaCemerlangSdnBhd(TSTAC/CLNT)
23 KurniaInsurans(Malaysia)Berhad 1,600,000 0.13
24 MuhamadAloysiusHeng 1,598,000 0.13
25 PublicNominees(Tempatan)SdnBhd 1,500,000 0.13 PledgedsecuritiesaccountforPatinasGeneralEnterprise(Sabah)SdnBhd(E-SDK)
26 HSBCNominees(Asing)SdnBhd 1,450,700 0.12 ExemptAnforJPMorganChaseBank,NationalAssociation(U.S.A.)
27 CitigroupNominees(Tempatan)SdnBhd 1,425,000 0.12 EmployeesProvidentFundBoard(AllianceInv)
28 HLQNominee(Tempatan)SdnBhd 1,363,000 0.11 PledgedsecuritiesaccountforYeohEngHua
29 AmsecNominees(Tempatan)SdnBhd 1,324,800 0.11 AmtrusteeBerhadforPacificDividendfund(UT-PM-DIV)
30 MaybanNominess(Tempatan)SdnBhd 1,311,000 0.11 MaybanTrusteesBerhadforMAAKLHDBSFlexiFund
108•UOA DEVELOPMENT BHDAnnualReport2011
SUBSTANTIAL SHAREHOLDERS
No.ofOrdinarySharesHeldName Direct % Indirect %
UOAHoldingsSdnBhd 803,892,300 67.22 20(1) *
UnitedOverseasAustraliaLtd 2,020,000 0.17 803,892,320(2) 67.22
GriyajayaSdnBhd - - 805,912,320(3) 67.39
TransmetroSdnBhd 20 * 805,912,320(4) 67.39
KongChongSoon@ChiSuim - - 806,012,340(5) 67.40
KongPakLim - - 805,912,320(6) 67.39
EmployeesProvidentFund 60,053,100 5.02 - -
Notes: *Negligible
(1) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughLTGDevelopmentSdnBhd).
(2) DeemedinterestedbyvirtueofUnitedOverseasAustraliaLtdbeingentitledtocontroltheexerciseof100%ofthevotesattachedtothevotingsharesinUOAHoldingsSdnBhd.
(3) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughUnitedOverseasAustraliaLtdandasanassociateofKongChongSoon@ChiSuimandKongPakLim)anddeemedinterestedbyvirtueofUnitedOverseasAustraliaLtdbeingentitledtocontroltheexerciseof100%ofthevotesattachedtothevotingsharesofUOAHoldingsSdnBhd.
(4) DeemedinterestedbyvirtueofSection6AoftheAct(throughitsshareholdingsinGriyajayaSdnBhdandTransmetroCorporationSdnBhd,itswhollyownedsubsidiary,inUnitedOverseasAustraliaLtd)andasanassociateofKongChongSoon@ChiSuim.
(5) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociatesGriyajayaSdnBhdandTransmetroSdnBhdinUnitedOverseasAustraliaLtd,andTransmetroSdnBhd,GlobalTransactSdnBhdandhischildrenintheCompany).
(6) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociateGriyajayaSdnBhdinUnitedOverseasAustraliaLtd.)
AnalysisofShareholdings(Cont’d)
UOA DEVELOPMENT BHD Annual Report 2011 • 109
STATEMENT OF DIRECTORS’ INTERESTAS AT 30 MARCH 2012
No.ofOrdinarySharesHeldName Direct % Indirect %
TanSriDato’AlwibinJantan 700,000 0.06 - -
KongChongSoon@ChiSuim - - 806,012,340(1) 67.39
KongPakLim - - 805,912,320(2) 67.39
TanChokKianAlphonsus 300,000 0.03 - -
AlanCharlesWinduss 100,000 0.01 - -
Notes:
(1) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociatesGriyajayaSdnBhdandTransmetroSdnBhdinUnitedOverseasAustraliaLtd,andTransmetroSdnBhd,GlobalTransactSdnBhdandhischildrenintheCompany).
(2) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociateGriyajayaSdnBhdinUnitedOverseasAustraliaLtd).
110•UOA DEVELOPMENT BHDAnnualReport2011
NOTICE OF ANNUAL GENERAL MEETING
AGENDA
AS ORDINARY BUSINESS
1 ToreceivetheAuditedFinancialStatementsforthefinancialyearended31December2011togetherwiththeDirectors’andAuditors’Reportsthereon.
2 ToapproveaFirstandFinalSingleTierDividendof10senpershareforthefinancial
yearended31December2011.
3 ToapprovethepaymentofDirectors’feesamountingtoRM90,000forthefinancialyearended31December2011.
4 Toconsiderandifthoughtfit,topassthefollowingresolution: “THATpursuant toSection129of theCompaniesAct,1965,TanSriDato’Alwibin
Jantan,beandisherebyre-appointedasaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”
5 Toconsiderandifthoughtfit,topassthefollowingresolution: “THATpursuanttoSection129oftheCompaniesAct,1965,MrKongChongSoon@
ChiSuim,beandisherebyre-appointedasaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”
6 Toconsiderandifthoughtfit,topassthefollowingresolution: “THAT pursuant to Section 129 of the Companies Act, 1965, Mr Tan Chok Kian
Alphonsus,beandisherebyre-appointedasaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”
7 Toconsiderandifthoughtfit,topassthefollowingresolution: “THATpursuanttoSection129oftheCompaniesAct,1965,MrAlanCharlesWinduss,
beand isherebyre-appointedasaDirectorof theCompanytoholdofficeuntil theconclusionofthenextAnnualGeneralMeetingoftheCompany.”
8 Tore-appointMessrsMazarsasAuditorsoftheCompanyfortheensuingyearandtoauthorisetheDirectorstofixtheirremuneration.
NOTICE IS HEREBY GIVEN THAT the Eighth Annual General Meeting of UOA Development Bhd will be held atBallroom1,GrandDorsettSubangHotel,JalanSS12/1,47500SubangJaya,SelangorDarulEhsanonTuesday,29May2012at10.00a.m.forthefollowingpurposes:
Resolution1
Resolution2
Resolution3
Resolution4
Resolution5
Resolution6
Resolution7
Resolution8
UOA DEVELOPMENT BHD Annual Report 2011 • 111
NoticeofAnnualGeneralMeeting(Cont’d)
AS SPECIAL BUSINESS
Toconsiderandifthoughtfit,topassthefollowingresolutionasanOrdinaryResolution:
9 Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965
“THAT subject always to the Companies Act, 1965, the Company’s Articles ofAssociationandtheapprovalsoftherelevantgovernmentand/orregulatoryauthorities,theDirectorsbeandareherebyempoweredpursuanttoSection132DoftheCompaniesAct,1965toissueandallotnewsharesintheCompanyatanytimeatsuchprice,uponsuchtermsandconditions,forsuchpurposesandtosuchperson(s)whomsoeverastheDirectorsmay in theirabsolutediscretiondeemfitandexpedient in the interestof the Company, provided that the aggregate number of shares issued pursuant tothisresolutiondoesnotexceed10%ofthetotalissuedsharecapitaloftheCompanyforthetimebeingandTHATtheDirectorsbeandarealsoempoweredtoobtaintheapprovalfromBursaMalaysiaSecuritiesBerhadforthelistingofandquotationfortheadditionalsharessoissuedandTHATsuchauthorityshallcontinuetobeinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”
10 Totransactanyotherbusinessforwhichduenoticehasbeengiven.
ByOrderoftheBoardYAP KAI WENG (MAICSA74580)WONG YOKE LENG (MAICSA7032314)CompanySecretaries
KualaLumpur7May2012
Resolution9
NOTES:
1. Onlydepositorswhosenamesappear intheRecordofDepositorsasat18May2012shallberegardedasmembersandbe
entitledtoattendandvoteattheEighthAnnualGeneralMeeting.AmemberoftheCompanyentitledtoattendandvote,isentitled
toappointaproxyorproxiestoattendandvoteinhisstead.AproxyneednotbeamemberoftheCompany.
2. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorofhisattorneydulyauthorisedinwriting,
oriftheappointerisacorporation,eitherunderthecorporation’sseal,orunderthehandofanofficerorattorneydulyauthorised.
3. Ifamemberappoints2proxies,theappointmentwillbeinvalidunlesshestatesthenumberofsharestoberepresentedbyeach
proxy.
4. Whereamember isanAuthorisedNomineeasdefinedunder theSecurities Industry (CentralDepositories)Act1991, itmay
appointatleast1proxybutnotmorethan2proxiesinrespectofeachSecuritiesAccountitholdswithordinarysharesofthe
CompanystandingtothecreditofthesaidSecuritiesAccount.
5. TheinstrumentappointingaproxymustbedepositedattheShareRegistraratLevel6,SymphonyHouse,PusatDaganganDana
1,JalanPJU1A/46,47301PetalingJaya,SelangorDarulEhsannotlessthan48hoursbeforethetimeappointedforholdingthe
meetingoranyadjournmentthereof.
112•UOA DEVELOPMENT BHDAnnualReport2011
STATEMENT ACCOMPANYINGNOTICE OF ANNUAL GENERAL MEETING
1. Directorswhoarestandingforre-appointmentpursuanttoSection129oftheCompaniesAct,1965are:
a) TanSriDato’AlwibinJantanb) MrKongChongSoon@ChiSuimc) MrTanChokKianAlphonsusd) MrAlanCharlesWinduss
DetailsoftheaforesaidDirectorsaresetoutintheProfileofDirectorsappearingonpages18to19oftheAnnualReport.TheirshareholdingsintheCompany(ifany)aresetoutonpage36oftheAnnualReport.
EXPLANATORY NOTES TO SPECIAL BUSINESS
Ordinary Resolution 9 - Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965
TheproposedOrdinaryResolution9,ifpassed,willgivetheDirectorsoftheCompanytheflexibilitytoissueandallotnewsharesintheCompanyuptoanamountnotexceedingintotal10%oftheissuedsharecapitaloftheCompanyforsuchpurposesastheDirectorsconsiderwouldbeintheinterestoftheCompany.
TheCompanycontinues toconsideropportunities toenhance theearningspotentialof theCompanyand if suchopportunitiesinvolvetheissuanceofnewshares,theDirectorswouldhavetoconveneageneralmeetingtoapprovetheissuanceofnewshareseventhoughthenumberinvolvedmaybelessthan10%oftheissuedcapital.Inordertoavoidanydelayandcostsinvolvedinconveningageneralmeetingtoapprovetheissuanceofnewshares,itisthusconsideredappropriatethattheDirectorsbeempoweredtoissuenewsharesintheCompany,uptoanamountnotexceedingintotal10%oftheissuedsharecapitaloftheCompanyatanytime,forsuchpurposes.
Theauthority for theallotmentof newshareswill provideflexibility to theCompany for anypotential fund raisingactivities,includingbutnotlimitedtoplacementofshares,forpurposeoffundingfutureinvestments,workingcapitaland/oracquisition.ThismandateisobtainedforthefirsttimefromtheshareholdersoftheCompanyafteritslistingon8June2011andunlessrevokedorvariedatageneralmeetingwillexpireattheconclusionofthenextAnnualGeneralMeetingoftheCompany.
NoticeofAnnualGeneralMeeting(Cont’d)
UOA DEVELOPMENT BHD (CompanyNo.654023-V)
(IncorporatedinMalaysiaundertheCompaniesAct,1965)
No. of Shares held
I/We _____________________________________________________NRICNo/CompanyNo._________________________
of _____________________________________________________TelNo________________________________________
beingamemberofUOADevelopmentBhd,herebyappoint
_________________________________________________________________________________________________________(nameofproxyasperNRIC)
NRICNo./IDNo._____________________________________,numberofsharestoberepresented__________________
orfailinghim/her,_________________________________________________________________________________________(nameofproxyasperNRIC)
NRICNo./IDNo._____________________________________,numberofsharestoberepresented__________________
orfailinghim/hertheChairmanoftheMeetingasmy/ourproxytovoteforme/usonmy/ourbehalfattheEighthAnnualGeneralMeetingoftheCompanytobeheldatBallroom1,GrandDorsettSubangHotel,JalanSS12/1,47500SubangJaya,SelangorDarulEhsanonTuesday,29May2012at10.00a.m.,andatanyadjournmentthereofinthemannerindicatedbelow:
(Pleaseindicatewithan“x”inthespaceprovidedhowyouwishyourvotetobecastontheresolutionsspecified.Ifnospecificdirectionastothevotingisgiven,theProxywillvoteorabstainathis/herdiscretion.
SignatureofShareholder(s)/CommonSeal Date:
NOTES:
1. OnlydepositorswhosenamesappearintheRecordofDepositorsasat18May2012shallberegardedasmembersandbeentitledtoattendandvoteattheEighthAnnualGeneralMeeting.AmemberoftheCompanyentitledtoattendandvote,isentitledtoappointaproxyorproxiestoattendandvoteinhisstead.AproxyneednotbeamemberoftheCompany.
2. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorofhisattorneydulyauthorisedinwriting,oriftheappointerisacorporation,eitherunderthecorporation’sseal,orunderthehandofanofficerorattorneydulyauthorised.
3. Ifamemberappoints2proxies,theappointmentwillbeinvalidunlesshestatesthenumberofsharestoberepresentedbyeachproxy.
4. WhereamemberisanAuthorisedNomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act1991,itmayappointatleast1proxybutnotmorethan2proxiesinrespectofeachSecuritiesAccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidSecuritiesAccount.
5. TheinstrumentappointingaproxymustbedepositedattheShareRegistraratLevel6,SymphonyHouse,PusatDaganganDana1,JalanPJU1A/46,47301PetalingJaya,SelangorDarulEhsannotlessthan48hoursbeforethetimeappointedforholdingthemeetingoranyadjournmentthereof.
Resolution1 ToreceivetheAuditedFinancialStatementsforthefinancialyearended31 December 2011 together with the Directors’ and Auditors’ Reportsthereon.
Resolution2 ToapproveaFirstandFinalSingleTierDividendof10senpershareforthefinancialyearended31December2011.
Resolution3 ToapprovethepaymentofDirectors’feesamountingtoRM90,000forthefinancialyearended31December2011.
Resolution4 Tore-appointTanSriDato’AlwibinJantanasDirectoroftheCompany.
Resolution5 To re-appoint Mr Kong Chong Soon @ Chi Suim as Director of theCompany.
Resolution6 Tore-appointMrTanChokKianAlphonsusasDirectoroftheCompany.
Resolution7 Tore-appointMrAlanCharlesWindussasDirectoroftheCompany.
Resolution8 Tore-appointMessrsMazarsasAuditorsoftheCompanyfortheensuringyearandtoauthorisetheDirectorstofixtheirremuneration.
Special Business
Resolution9 Toauthorise theDirectors toallotand issuesharespursuant toSection132DoftheCompaniesAct,1965.
Resolutions Ordinary Business For Against
Thenfoldhere
1stfoldhere
AffixStampHere
SYMPHONY SHARE REGISTRARS SDN BHDLevel6,SymphonyHousePusatDaganganDana1
JalanPJU1A/4647301PetalingJaya
SelangorDarulEhsan
UOA DEVELOPMENT BHD (654023-V)
Wisma UOA Bangsar SouthTower 1, Avenue 3
The Horizon, Bangsar SouthNo. 8, Jalan Kerinchi
59200 Kuala Lumpur, Malaysia
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www.uoadev.com.my
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| Annual R
eport 2011