crest builder holdings berhad -...

CR

EST BU

ILDER

HO

LDIN

GS B

ERH

AD

An

nu

al R

ep

ort 2

01

2

AddressPenthouse, The Crest 3 Two Square No. 2, Jalan 19/1 46300 Petaling Jaya Selangor Darul Ehsan, Malaysia

www.crestbuilder.com.myEmail : [email protected]

ContactTel : 603 7841 6000 Fax : 603 7841 6088

CREST BUILDER HOLDINGS BERHAD (573382-P)

A n n u a l R e p o r t 2 0 1 2

C.BuildArCov7k_FINAL.indd 1 5/22/13 5:25 PM

Contents

• CorporateProfile_2• Noticeof11thAnnualGeneralMeeting_3• StatementAccompanyingNoticeof11thAnnualGeneralMeeting_7• CorporateInformation_9• FinancialHighlights_10• Director’sProfile_12• Chairman’sStatement_14• ManagementReview_16• CorporateStructure_20• ReportoftheAuditCommittee_21• StatementonCorporateGovernance_25• StatementonRiskManagementandInternalControl_32• CorporateSocialResponsibility_34• StatementonDirectors’Responsibility_36• FinancialStatements_37• ListofTopTenPropertiesbyValue_131• AnalysisofShareholdings_132• ProxyForm[Enclosed]


[2]

CBHBwasincorporatedinMalaysiaundertheCompaniesAct,1965on9thMarch2002asapubliclimitedcompany.CBHBisprincipallyaninvestmentholdingcompanyandhadsuccessfullyundertakenaCorporateandDebtRestructuringSchemewhichinvolvedtakingoverthelistingstatusofMGRCorporationBerhad.CBHBwaslistedontheMainBoardofBursaMalaysiaon12thJune2003.

TheCBHBGroupwasfoundedin1985byMrYongSoonChow.Whatstartedoutasasmalltimeroflessthan10staffshasgrowntoastrongcorporationofover500staffsunderitsstable.Overthepast25years,theCBHBGrouphascarvedastrongfootholdinthelocalconstructionindustry.Within-depthindustryexperience,theCBHBgrouphasaproventrackrecordinthesector–especiallyinthecommercial,residentialandinstitutionalbuildingconstruction.TheGroupcountstopbrandeddevelopersandinternationalpropertyplayersamongstitsclientele.

Withangoodblendofexperienceandvibrantprotégésinitsmanagementteam,theCBHBGrouphasmovedalongthesupplychainanddiversifiedbeyondpurelyconstructionintootherconstruction-relatedactivities,suchaspropertydevelopment,M&Eservicesandprojectmanagement–andmostrecently,uponcompletionofourRM300millionmaidendevelopment3TwoSquare,theGrouphasalsodiversifiedintopropertymanagementaswellascarparkmanagement.

Withthevisiontobethe‘Preferred’organizationofchoicebythepartnersandcustomers,theGroupaspirestoachievedistinctionintheindustrythroughprudentcostmanagement,higheststandardsofqualityandcompletecustomersatisfaction.

BRINGINGA VISIONTO REALITY

CORPORATEPROFILE

ANNUALREPORT2012

[3]

NOTICE is hereby given that the 11th annual general meeting will be held

Venue SimeDarbyConventionCentre 1A,JalanBukitKiara1 60000KualaLumpur

Day,dateandtime Tuesday,25June2013at3.00p.m.

AGENDA

Ordinary business

1. Laying of audited accounts

Toreceiveandadoptthedulyauditedaccountsconsistingoftheconsolidatedstatementofcomprehensiveincome,theconsolidatedstatementoffinancialposition,thereportsoftheDirectorsandauditorsforthefinancialyearended31December2012,incompliancewithSection169(1)andSection174(1)oftheCompaniesAct,1965(“Act”)respectively.

Resolution 1

2. Declaration of dividend

THATthepaymentforafirstandfinaldividendof5%less25%taxationpershareinrespectofthefinancialyearended31.12.2012beherebyapproved.

Resolution 2

3. Election of director

THAT re-electionoftheManagingDirector,Mr.YongSoonChowwhoretiresinaccordancewithArticle80oftheCompany’sArticlesofAssociation,beherebyapproved.

Resolution 3

4. Election of director

THAT re-electionof the IndependentNon-ExecutiveDirector, EncikMohdKhasanBinAhmadwhoretiresinaccordancewithArticle80oftheCompany’sArticlesofAssociation,beherebyapproved.

Resolution 4

5. Appointment of auditors

THAT theappointmentofMessrsBakerTillyMonteiroHeng,CharteredAccountants,astheauditorsinaccordancewithArticle57oftheCompany’sArticlesofAssociationandpursuanttoSection172(2)oftheActfortheensuingfinancialyearending31December2013beconfirmedand that thedirectorsbeauthorised to fix the remunerationof theauditorspursuanttoSection172(16)(a)oftheAct,beherebyapproved.

Resolution 5

Special business

6. Approval for payment of directors’ fees

THATthepaymentofRM180,000asdirectors’feefortheyearended31December2012(2011:RM250,000)inaccordancewithArticle88oftheCompany’sArticlesofAssociationbeherebyapproved.

Resolution 6

NOTICE OF 11TH

ANNUAL GENERAL MEETING


[4]

7. Authority for issue of shares pursuant to Section 132D of the Act.

THAT pursuant toSection132Dof theAct and subject to theapproval of all relevantauthoritiesbeingobtained,theDirectorsbeempoweredtoissuesharesintheCompanyatanytimeanduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmay,intheirabsolutediscretiondeemfit,providedthattheaggregatenumberofsharesissuedpursuanttothisresolutiondoesnotexceed10%oftheissuedandpaidupcapitaloftheCompanyforthetimebeingandthatsuchauthorityshallcontinueinforceuntiltheconclusionofthenextannualgeneralmeetingbeherebyapproved.

Resolution 7

8. Proposed renewal of shareholders’ mandate for existing recurrent related party transactions of a revenue or trading nature and mandate for additional recurrent related party transactions of a revenue or trading nature

THAT the shareholders’mandategrantedby the shareholdersof theCompanyon20

June2012pursuanttoparagraph10.09oftheListingRequirementsoftheBursaMalaysiaSecuritiesBerhad,authorizingtheCompanyanditssubsidiaries(the“CBHBGroup”),toenterintotheRecurrentRelatedPartyTransactionsofarevenueortradingnaturewhicharenecessaryfortheCBHBGroup’sday-to-dayoperationsassetoutinparagraph4.3of theCircular toShareholdersdated3 June2013 (“Circular”)with the relatedpartiesmentionedtherein,beandisherebyrenewedandTHATapprovalbeandisherebygiventotheCompanytoenterintoadditionalRecurrentRelatedPartyTransactionsofarevenueortradingnaturewiththerelatedpartiesmentionedtherein,providedthat:-

(i) thetransactionsareintheordinarycourseofbusinessandonnormalcommercialtermswhich are notmore favourable to the relatedparties than thosegenerallyavailabletothepublicandarenottothedetrimentoftheminorityshareholdersoftheCompany;and

(ii) thedisclosureofthebreakdownaggregatevalueofthetransactionsconductedduring

afinancialyearwillbedisclosedintheannualreportforthesaidfinancialyearbasedonthefollowinginformation:-

i. thetypeoftheRecurrentRelatedPartyTransactionsmade;

ii. thenamesoftherelatedpartiesinvolvedineachtypeoftheRecurrentRelatedPartyTransactionsmadeandtheirrelationshipwiththeCompany.

AND THAT theauthorityconferredbysuchrenewedandgrantedmandateshallcontinue

tobeinforceuntil:-

(i) theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompanyfollowingtheforthcomingAGMatwhichtheProposalisapproved,atwhichtimeitwilllapse,unlessbyaresolutionpassedattheAGM,themandateisagainrenewed;and

(ii) revokedorvariedbyresolutionpassedbytheshareholdersingeneralmeeting,

whicheveristheearlier;

AND THAT theDirectorsoftheCompanybeandareherebyauthorisedtocompleteanddoallsuchactsandthingsastheymayconsiderexpedientornecessarytogiveeffecttotheProposal.

Resolution 8

NOTICEOF11THANNUALGENERALMEETING(CONT’D)

ANNUALREPORT2012

[5]

9. Proposed renewal of share buy-back authority of up to ten percent (10%) of the issued and paid-up share capital

THAT subjecttotheCompaniesAct,1965(“theAct”),rulesandregulationsandordersmadepursuant to theAct, provisionsof theCompany’sMemorandumandArticles ofAssociation(“Articles”)andtherequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)andanyotherrelevantauthorities,theDirectorsoftheCompanybeandareherebyauthorisedtomakepurchasesofordinarysharescomprisedintheCompany’sissuedandpaid-upordinarysharecapital,suchpurchasestobemadethroughBursaSecuritiessubjectfurthertothefollowing:-

(i) theaggregatenumberofordinarysharesofRM1/-eachinCBHB(“CBHBShares”)

whichmaybepurchasedorheldbytheCompanyshallnotexceedtenpercent(10%)oftheissuedandpaid-upordinarysharecapitaloftheCompany(“ProposedShareBuy-Back”),subjecttotherestrictionthattheissuedandpaid-upordinarysharecapitalofCBHBdoesnotfallbelowtheminimumsharecapitalrequirementsoftheListingRequirementsofBursaSecurities(“ListingRequirements”)applicabletoacompanylistedontheMainBoardofBursaSecuritiesandthatthelistedissuercontinuestomaintainashareholdingspreadthatisincompliancewiththerequirementsoftheListingRequirementsafterthesharepurchase;

(ii) themaximumfundstobeallocatedbytheCompanyforthepurposeofpurchasing

theCBHBSharesundertheProposedShareBuy-Backshallnotexceedtheretainedprofitsand/orsharepremiumaccountoftheCompanyforthetimebeingwhichstoodatRM20,884,735/-andRMnilrespectivelyasat31December2012basedonthelatestauditedfinancialstatementsofCBHBforthefinancialyearended31December2012;

(iii) theauthorityconferredbythisresolutiontofacilitatetheProposedShareBuy-Back

willcommenceimmediatelyuponpassingofthisordinaryresolutionandwillcontinuetobeinforceuntil;

i. theconclusionofthenextannualgeneralmeeting(“AGM”)oftheCompanyat

whichsuchresolutionwaspassedatthewhichtimetheauthoritywouldlapseunlessrenewedbyordinaryresolution,eitherunconditionallyorconditionally;or

ii. theexpirationoftheperiodwithinthenextAGMoftheCompanyafterthatdate

isrequiredbylawtobeheld;oriii. the authority is revoked or varied by ordinary resolution passed by the

shareholdersoftheCompanyinageneralmeeting,

whicheveroccursfirst,butnotsoastoprejudicethecompletionofpurchase(s)bytheCompanyoftheCBHBSharesbeforetheaforesaidexpirydateand,madeinanyevent,inaccordancewiththeprovisionsoftheguidelinesissuedbyBursaSecuritiesandanyprevailinglaws,rules,regulations,orders,guidelinesandrequirementsissuedbyanyrelevantauthorities;and

Resolution 9

(iv) upon completion of the purchase(s) of theCBHBShares by theCompany, theDirectorsoftheCompanybeandareherebyauthorisedtoretaintheCBHBSharessopurchasedastreasuryshares,whichmaybedistributedasdividendstoshareholders,canceland/orresoldonBursaSecurities,inthemannerasprescribedbytheAct,rules,regulationsandordersmadepursuanttotheActandtherequirementsofBursaSecuritiesandanyotherrelevantauthorityforthetimebeinginforce,

AND THAT theDirectorsoftheCompanybeandherebyauthorisedtotakeallsuchstepsasarenecessaryorexpedienttoimplement,finalise,completeortoeffecttheProposedShareBuy-Backwithfullpowerstoassenttoanyconditions,modifications,resolutions,variationsand/oramendments(ifany)asmaybeimposedbytherelevantauthoritiesandtodoallsuchactsandthingsasthesaidDirectorsmaydeemfitandexpedientinthebestinterestoftheCompanytogiveeffecttoandtocompletethepurchaseofCBHBShares.



[6]

10. Continuing in Office as Independent Non-Executive Directors

10.1 THAT,approvalbeandisherebygiventoMr.KeongChoonKeatwhohasservedasanIndependentNon-ExecutiveDirectoroftheCompanyforacumulativetermofmorethannineyears,tocontinuetoactasanIndependentNon-ExecutiveDirectoroftheCompany

10.2 THAT,approvalbeandisherebygiventoEncikMohd.KhasanBinAhmadwhohasservedasanIndependentNon-ExecutiveDirectoroftheCompanyforacumulativetermofmorethannineyears,tocontinuetoactasanIndependentNon-ExecutiveDirectoroftheCompany

10.3 THAT,approvalbeandisherebygiventoMr.KamYongKanwhohasservedasanIndependentNon-ExecutiveDirectoroftheCompanyforacumulativetermofmorethannineyears,tocontinuetoactasanIndependentNon-ExecutiveDirectoroftheCompany

Resolution 10

Resolution 11

Resolution 12

NOTICE OF DIVIDEND ENTITLEMENT

Further NOTICEisherebygiventhatafirstandfinaldividendof5%less25%taxationpershareinrespectofthefinancialyearended31December2012ifapprovedbyshareholders,willbepaidon1August2013todepositorsregisteredintheRecordofDepositorsatthecloseofbusinesson10July2013.

Adepositorshallqualifyforentitlementonlyinrespectof:-

(a) sharetransferredintothedepositor’ssecuritiesaccountbefore4:00noonon10July2013inrespectofordinarytransfers;and

(b) sharesboughtontheBursaMalaysiaSecuritiesBerhadonacumentitlementbasisaccordingtotheRulesoftheBursaMalaysiaSecuritiesBerhad.

ByorderoftheBoard

Company SecretariesHengChiangPoohFCIS(MAICSA7009923)ChiamHanTweeFCIS(MAICSA7009910)

Dated:3June,2013

Notes :-

1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than two proxies to attend and vote on in his stead. A proxy may but need not be a member of the Company. A member may appoint any person to be his proxy without limitation and the provisions of Section 149(1)(a) and Section 149(1)(b) of the Companies Act, 1965 shall not apply.

2. Shareholders’ attention is hereby drawn to the Listing Requirements of the Bursa Malaysia Securities Berhad, which allows a member of the Company who is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, to appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities.

3. Where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy.

4. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or, if the appointer is a corporation, either under its Common Seal or under the hand of a officer or attorney duly authorised.

5. The instrument appointing a proxy must be deposited at No. 14-2, Jalan 4A/27A, Section 2, Wangsa Maju, 53300 Kuala Lumpur not less than 48 hours before the time set for holding for the meeting or any adjournment thereof.

6. In respect to the deposited securities, only members whose name appear in the Record of Depositors on 18 June 2013 shall be eligible to attend the meeting or to appoint proxy to attend and/or vote on his behalf.


ANNUALREPORT2012

[7]

1. ORDINARY BUSINESS – RESOLUTION 2

TheDirectorsnowrecommendafirstandfinaldividendof5%or5sen(RM0.05)less25%incometaxpereachordinaryshareheldinrespectofthefinancialyearended31December2012,givingrisetototalnetdividendforthefinancialyearof3.75senperordinaryshareheld.

2. ORDINARY BUSINESS – RESOLUTION 3 & 4

TheparticularsoftheretiringDirectorswhoarestandingforre-electionaresetoutintherelevantpagesoftheAnnualReportasfollows:-

Name of Directors Directors’ Profile Directors’ Shareholdings

YongSoonChow Page12 Page43,44&138

MohdKhasanBinAhmad Page12 Page43,44&138

DetailsofDirectors’attendanceatBoardMeetingsaresetoutintheStatementonCorporateGovernanceonPage25oftheAnnualReport.

3. SPECIAL BUSINESS – RESOLUTION 6

Thisauthorisationbythegeneralmeetingwouldenablethepaymentofdirectors’remunerationinaccordancewithArticle88oftheCompany’sArticlesofAssociationasfollows:-

Article 88 Directors’ Remuneration The Directors shall be paid by way of remuneration for their services such fixed sums (if any) as shall from time

to time be determined by the company in general meeting, and such remuneration shall be divided among the Directors in such proportion and manner as the Directors may determine. Provided always that:-

(a) fees payable to Directors who hold no executive office in the company shall be paid by a fixed sum and not by a commission on or percentage of profits or turnover;

(b) salaries payable to Directors who do hold an executive office in the Company may not include a commission on or percentage of turnover;

(c) fees payable to Directors shall not be increased except pursuant to a resolution passed at a general meeting, where notice of the proposed increase has been given in the notice convening the meeting;

(d) any fee paid to an Alternate Director shall be such as agreed between himself and the Director nominating him shall be paid out of the remuneration of the latter.


TheCompanyhadduring its10thAnnualGeneralMeetingheldon20June2012,obtaineditsshareholders’approvalforthegeneralmandateforissuanceofsharespursuanttoSection132DoftheCompaniesAct,1965.TheCompanyhad25June2012issued11,300,000Sharesunderthesaidmandate.

ThisProposedResolutionNo.7whichisanOrdinaryResolution,ifpassed,willgrantarenewedgeneralmandatewhichwillprovideflexibilityfortheCompanyandwillempowertheDirectorstoallotandissuenewsharesintheCompanyuptoanamountnotexceedingintotal10%oftheissuedsharecapitaloftheCompanyforthepurposeoffundingcurrentand/orfutureinvestmentprojects,workingcapital,and/orstrategicdevelopmentoftheGroup.Thiswouldeliminateanydelayarisingfromandcostinvolvedinconveningageneralmeetingtoobtainapprovaloftheshareholdersforsuchissuanceofshares.Thisauthority,unlessrevokedorvariedatageneralmeeting,willbevaliduntiltheconclusionofthenextannualgeneralmeeting.

Atthisjuncture,thereisnodecisiontoissuenewshares.Ifthereshouldbeadecisiontoissuenewsharesafterthegeneralmandateissought,theCompanyshallmakeanannouncementinrespectthereof.

STATEMENT ACCOMPANYINGNOTICE OF 11TH ANNUAL GENERAL MEETING


[8]


TheProposedShareholders’Mandate,ifapprovedbytheshareholdersoftheCompany,andtherenewalthereofonanannualbasis,willeliminatetheneedbytheCompanytoannounceand/orconveneseparategeneralmeetingsfromtimetotimetoseekshareholders’approvalfortheGrouptoenterintotheRecurrentRelatedPartyTransactionswithFarimaSdnBhd.Thiswouldreducesubstantialadministrativetime,inconvenienceandexpensesassociatedwiththeconveningofsuchmeetings,withouthowevercompromisingthecorporateobjectivesoftheGrouporadverselyaffectingthebusinessopportunitiesavailabletotheGroup.FurtherinformationcanbeobtainedinPartAoftheaccompanyingcirculardated3June2013.


TheProposedSharebuy-backofuptotenpercent(10%)oftheissuedandpaid-upsharecapital,ifapprovedbytheshareholdersoftheCompany,willenabletheCompanytomakepurchasesofordinarysharescomprisedintheCompany’sissuedandpaid-upordinarysharecapital.FurtherinformationcanbeobtainedinPartBoftheaccompanyingcirculardated3June2013.

7. SPECIAL BUSINESS – RESOLUTION 10, 11 & 12

PursuanttotheMalaysianCodeonCorporateGovernance2012,theBoardofDirectorshasviatheNominationCommitteeassessedtheIndependenceofMr.KeongChoonKeat,EncikMohdKhasanBinAhmadandMr.KamYongKanwhoeachhasservedasanIndependentNon-ExecutiveDirectoroftheCompanyforacumulativetermofmorethannineyears,andrecommendedthemtocontinuetoactasIndependentNon-ExecutiveDirectorsoftheCompanybasedonthefollowingjustifications:-

(i) eachofthemfulfillsthecriteriaofanIndependentDirectorpursuanttotheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad;

(ii) eachofthemisfamiliarwiththeCompany’sbusinessoperationsaseachhasbeenwiththeCompanyformorethan9years;

(iii) eachof themhasdevotedsufficient timeandattention tohis responsibilitiesasan IndependentNon-ExecutiveDirectoroftheCompany;and

(iv) eachofthemhasexercisedduecareduringhistenureasanIndependentDirectoroftheCompanyandcarriedouthisdutyintheinterestoftheCompanyandshareholders.

TheproposedResolutions10,11and12,ifpassed,willenableMr.KeongChoonKeat,EncikMohdKhasanBinAhmadandMr.KamYongKantocontinueinofficeasIndependentNon-ExecutiveDirectors.

STATEMENTACCOMPANYINGNOTICEOF11THANNUALGENERALMEETING(CONT’D)

ANNUALREPORT2012

CORPORATEINFORMATION

REGISTERED OFFICE

No.14-2,Jalan4A/27ASection2,WangsaMaju53300KualaLumpurTel : 03-41498128Fax : 03-41423128

PRINCIPAL PLACE OF BUSINESS

Penthouse,TheCrest3TwoSquareNo.2,Jalan19/146300PetalingJayaSelangorDarulEhsanTel : 03-78416000Fax : 03-78416088Email : [email protected]

SHARE REGISTRAR

ShareWorksSdnBhdNo.10-1,JalanSriHartamas8,SriHartamas50480KualaLumpurTel : 03-62011120Fax : 03-62013121

AUDITORS

BakerTillyMonteiroHengBakerTillyMHTowerLevel10,Tower1Avenue5BangsarSouthCity59200KualaLumpurMalaysiaTel : 03-22971000Fax : 03-22829980

PRINCIPAL BANKERS

HongLeongBankBerhadAmBankBerhadCIMBBankMayBankBerhadBankIslamMalaysiaBerhad

STOCK EXCHANGE LISTING

BursaMalaysiaSecuritiesBerhad-MainMarketSector:Construction

BOARD OF DIRECTORS

TengkuDato’SulaimanShah binTengkuAbdulJalilShah-Non-ExecutiveChairman

YongSoonChow-ManagingDirector

KohHuaLan(f)-ExecutiveDirector

YongShangMing-ExecutiveDirector

KeongChoonKeat-SeniorIndependentNon-ExecutiveDirector

MohdKhasanbinAhmad-IndependentNon-ExecutiveDirector

KamYongKan-IndependentNon-ExecutiveDirector

YongTiokKeng(f)-ExecutiveDirector,AlternatetoKohHuaLan

AUDIT COMMITTEE

MohdKhasanbinAhmad,ChairmanKeongChoonKeatKamYongKan

REMUNERATION COMMITTEE

YongSoonChow,ChairmanKeongChoonKeatMohdKhasanbinAhmad

NOMINATION COMMITTEE

KamYongKan,ChairmanKeongChoonKeatMohdKhasanbinAhmad

OPTION COMMITTEE

KeongChoonKeat,ChairmanMohdKhasanbinAhmadYongSoonChow

COMPANY SECRETARIES

HengChiangPoohFCIS(MAICSA7009923)ChiamHanTweeFCIS(MAICSA7009910)

[9]


[10]

Financial Year End2008

RM2009

RM2010

RM2011

RM2012

RM

Revenue 270,275,129 329,563,766 460,078,516 441,501,420 565,717,350

Profit Before Taxation 18,607,593 17,564,685 20,120,723 37,350,323 47,486,047

Profit After Taxation[Pre-acquisition loss/(profit)]

12,343,260 10,986,558 13,913,915 29,414,961 39,574,569

Profit Attributable to Shareholdersafter deduction/(addition) of pre-acquisition profit/(loss)]

12,343,260 10,986,558 13,938,701 30,423,570 39,929,590

Total Equity Attributable to Owners of the Company

222,541,616 230,781,043 240,823,111 267,531,117 315,974,933

Net Assets Per Share (sen) 1.79 1.86 1.94 2.16 2.30

Total Number of Shares 124,089,450 124,089,450 124,089,450 124,089,450 138,010,450

Basic Earnings per Share (sen) 9.95 8.85 11.23 24.56 30.65

Diluted Earnings per Share(after full conversion of Warrants)

9.95 8.85 11.23 24.56 30.65

Gross Dividend (%) 3.0 4.0 4.0 5.0 5.0

REVENUE (RM) PROFIT BEFORE TAXATION (RM)

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

02008 2009 2010 2011 2012

270,275,129

329,563,766

460,078,516

441,501,420

565,717,350 35,000,000

40,000,000

45,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

02008 2009 2010 2011 2012

18,607,593

17,564,685

20,120,723

37,350,323

47,486,047FINANCIALHIGHLIGHTS

ANNUALREPORT2012

[11]

40,000,000

30,000,000

20,000,000

10,000,000

02008 2009 2010 2011 2012

12,343,260

10,986,558

13,913,915

29,414,961

39,574,569

40,000,000

30,000,000

20,000,000

10,000,000

2008 2009 2010 2011 2012

12,343,260

10,986,558

13,938,701

30,423,570

39,929,590

2.50

2.00

1.50

1.00

0.50

02008 2009 2010 2011 2012

1.79

1.86

1.94

2.16

2.30

35.00

30.00

25.00

20.00

15.00

10.00

5.00

02008 2009 2010 2011 2012

9.95

8.85

11.23

24.56

30.65

PROFIT AFTER TAXATION (RM)

NET ASSETS PER SHARE (SEN)

PROFIT ATTRIBUTABLE TO SHAREHOLDERS (RM)

BASIC EARNINGS PER SHARE (SEN)

FINANCIALHIGHLIGHTS(CONT’D)


[12]

TENGKU DATO’ SULAIMAN SHAH BIN TENGKU ABDUL JALIL SHAH[Non-ExecutiveChairman],aged57,wasappointedtotheBoardon26February2003asExecutiveChairmanandhewasre-designatedastheNon-ExecutiveChairmanwitheffectfrom1March2005.TengkuDato’SulaimanShahhasover20yearsofexperienceintheconstruction,printing,advertising,freightindustriesandhealthproducts.Hewasappointedthe“OrangBesarIstana”intheyear1996withthebestowedtitleof“TengkuSetiaSelangor”.Inthefollowingyear,hewasalsoconferred“DatoDiRajaSelangor”.Intheyear2007,hewasawarded“DatoSultanSharafuddinIdrisShah”(D.S.I.S).HeisprimarilyresponsiblefortheorderlyconductandworkingoftheBoardandthepublicrelationandcommunicationaffairsoftheGroup.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

YONG SOON CHOW*[ManagingDirector],aged61,wasappointedtotheBoardon26February2003.MrYongistheco-founderofCrestBuilderSdnBhdandisthedrivingforcebehindtheGroup.MrYongstartedhiscareerasanengineerwithJabatanKerjaRayafrom1977to1981. Inyear1983,heformedCrestBuilderSdnBhdandhassuccessfullyturneditintoaprofitableconcern.Overtheyears,hehasaccumulatedinvaluableexperienceandindepthknowledgeofcivilengineeringandconstructionindustryingeneralfromonthejobtraining.HeisresponsiblefortheoverallbusinessoperationsandtheimplementationofpoliciesandstrategiesoftheGroup.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

KOH HUA LAN (F)[ExecutiveDirector],aged61,wasappointedtotheBoardon26February2003.MadamKohisaco-founderofCrestBuilderSdnBhdandshehasmorethan20yearsofexperienceinfinancialandadministrationmanagement.Sheisprincipallyresponsiblefortheadministration,humanresourceandmanagementsupportservicesoftheGroup.Sheattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

YONG SHANG MING[ExecutiveDirector],aged30wasappointedtotheBoardon31January2008.HegraduatedfromCityUniversity,LondonwithaHonoursDegreeinCivilEngineering.HejoinedtheGroupinJune2003astheSpecialAssistanttotheGroupManagingDirector.HeisinvolvedintheprojectprocurementandimplementationaswellasthebusinessdevelopmentventuresoftheGroup.Heisalsoinvolvedintheprojectplanning,developmentandmarketingoperationsoftheGroup’spropertydevelopmentprojects.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

KEONG CHOON KEAT[SeniorIndependentNon-ExecutiveDirector],aged68,wasappointedtotheBoardon25February2003andisamemberoftheAuditCommittee.HeisamemberoftheMalaysianInstituteofAccountantsandaFellowMemberoftheInstituteofCharteredAccountantsinEnglandandWales.HewasattachedtoBristolMyers&CompanyLtd.inEnglandasanAccountantin1968.HethenleftandjoinedMalaysianTobaccoCompanyBerhadasanAccountantin1969.From1974to1999hewasattachedtoUMWHoldingsBhdwhereheheldvariousmanagementpositionsinthegroupbeforebeingpromotedtothepositionofanExecutiveDirectorin1988.Uponretirementin1999,hejoinedaconsultancyfirmprovidingoutplacementandcareermanagementconsultancyservicesinMalaysia.HealsoservesontheBoardofJTInternationalBerhad,ChinTeckPlantationsBerhadandNegeriSembilanOilPalmsBerhad.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

MOHD KHASAN BIN AHMAD*[IndependentNon-ExecutiveDirector],aged52,wasappointedtotheBoardon25February2003andistheChairmanoftheAuditCommittee.HegraduatedfromUniversitiTeknologiMARAwithadegreeinAccountancy.HeisamemberoftheMalaysianInstituteofAccountants.HeservedinBankNegaraMalaysiaforaperiodofabout7years,thelast2yearsofwhichhewassecondedtothethenCapitalIssuesCommitteeasitsPrincipalAssistantSecretary.Subsequently,hejoinedtheSecuritiesCommissionforaperiodofabout6yearsandhislastcapacitywasasanAssistantManagerinitsIssuesandInvestmentDivision.Duringthetenureofhisaboveappointments,hewasinvolvedinvariouscorporateexercisesrangingfrominitialpublicofferings,mergersandacquisitions,reversetake-overs,issuanceofbondsandothercapitalraisingexercises.Hethenjoinedtheprivatesectorin1997andheldvariousseniormanagementpositions.HeisalsotheDirectorofTaWinHoldingsBerhad,FarmBestBerhadandHomeritzCorporationBerhad.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

DIRECTOR’SPROFILE

ANNUALREPORT2012

[13]

KAM YONG KAN[IndependentNon-ExecutiveDirector],aged54,wasappointedtotheBoardon26February2003andalsoamemberoftheAuditCommittee.Heisanex-fellowmemberoftheAssociationofCharteredCertifiedAccountants,UnitedKingdom,anex-memberoftheMalaysianInstituteofAccountantsandanAssociatememberoftheMalaysianInstituteofTaxation.Hehasover25yearsexperienceinaudit,finance,corporatefinance,taxandtreasuryfunctionsinpropertyrelatedindustries.Hewasattachedtoalistedpropertygroupfrom1991to2000andheldthepositionofaFinanceDirectorduringthelast4yearsofhistenureinthepropertygroup.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

YONG TIOK KENG (F) [ExecutiveDirector,AlternatetoKohHuaLan(f)],aged34,wasappointedtotheBoardon25May2009.SheholdsaB.ScinAccounting&FinancefromLondonSchoolofEconomicsin2001.Shehasover11yearsofexperienceinthefieldsofaccountingandcorporatefinanceactivitiesandsheiscurrentlytheCorporateAffairsManagerofCBHB.SheisprincipallyresponsiblefortheCorporateAffairsandfinancialpoliciesoftheGroup.Sheattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended31December2012.

Further informationAlltheDirectorsareMalaysian.

ExceptforcertainrecurrentrelatedpartytransactionofrevenuenatureortradingnaturewhicharenecessaryforthedaytodayoperationoftheGroupandforwhichTengkuDatoSulaimanShahBinTengkuAbdulJalilShahisdeemedtobeinterestedasdisclosedinpage31.

YongSoonChowandKohHuaLanarehusbandandwife.YongShangMingisthesontoYongSoonChowandKohHuaLan.YongTiokKengisthedaughtertoYongSoonChowandKohHuaLan.YongTiokChin(amajorshareholder)isthedaughtertoYongSoonChowandKohHuaLanandsiblingtoYongShangMingandYongTiokKeng.Savedasdisclosedherein,therearenofamilyrelationshipsbetweentheDirectorsand/ormajorshareholdersoftheCompany,oranypersonalinterestorconflictofinterestinanybusinessarrangementinvolvingtheGroup.

ThesecuritiesholdingsoftheDirectorsaredisclosedonpage138.ByvirtueoftheirinterestinsharesoftheCompanyandunderSection6AoftheCompaniesAct1965,YongSoonChowandKohHuaLanaredeemedtobeinterestedinthesharesofallthesubsidiariestotheextenttheCompanyhasaninterest.

NoneoftheDirectorshasbeenconvictedofanyoffencewithinthepasttenyearsotherthantrafficoffencesifany.

Note :

* Indicates Directors who retire according to the Articles of Association of the Company and are eligible to offer themselves for re-election.

DIRECTOR’SPROFILE(CONT’D)


[14]

Dear Shareholders,

On behalf of the Board of Directors of Crest Builder Holdings Berhad (“CBHB” or the “Company”), it is with great pleasure to present the Annual Report and Financial Statement of the Company for the financial year ended 31 December 2012. (FY2012)

FINANCIAL REVIEW FY2012

2012hadtheMalaysianmarketswarmedwithaseriousoftougheconomicconditionsasaresultofthecontinuedfinancialcrisisintheWestandfluctuatingpropertyspeculationsfrominvestorsduetodomesticsupplyanddemand.However,despitethemacroeconomicuncertaintiesCBHBcontinuestodeliverastrongfinancialyearwitharevenueofRM565.72million,atoplineincreaseof28.14%ascomparedtoRM441.50millionreportedinourpreviousyear.TheCompanyreportedanincreaseinProfitbeforeTax(‘PBT’)of27.15%(RM47.49millioninFY2012ascomparedtoRM37.35millioninFY2011).

IntermsofoursegmentalincomeforFY2012,ourconstructionsegmentremainstobetheleadingcontributorreportingarevenueofRM428.30million,followedbyourpropertysegmentwitharevenueofRM52.74million;representinganincreaseof8.45%and14.63%,respectively.

IbelievethattheCompany’scontinuedpositivefinancialgrowthandresilienceisaresultofourmanagement’smindfulandstrategicallystructuredbusinessplansandoperations.

CORPORATE DEVELOPMENTS

Suffice to say, this year has been quite an eventful and fulfilling year fortheCompany. In our first quarter,we secured a sizable joint developmentprojectwithSyarikatPrasaranaNegaraBhd(“Prasarana”)withatotalGrossDevelopmentValue(GDV)ofRM1.04billionwhichmarkstheCompany’sfirstbillion-ringgitpropertydevelopmentprojectintheheartofKualaLumpur.Thismixed-developmentproject,comprisingaretailmall,servicedresidentialsuites,hotelandofficeslocatedatDangWangiLRTStationisexpectedtocommencephysicalworksinthesecond-halfofFY2013withaconstructiontime-lineoffive(5)years.TheBoardisgratifiedwithsuchadealaswearenotboggeddownbyhugelandcostorinitialhugecapitalrequirements,aspaymentstoPrasaranawillbemadebywayofacombinationofcashandpaymentinkindoverthelifeoftheproject.InJune,theCompany’shardworkcontinuedtopayoffwhenwesecuredoursecondbillion-ringgitpropertydevelopmentprojectwithMalaysiaRubberBoard(“MRB”).ThisjointdevelopmentprojectwithaGDV

ofRM1.3billionandalandsizeof2.2hainJalanAmpangisexpectedtostartphysicalworksinparallelwithourDangWangiprojectduringthesecond-halfofFY2013.Securingtwobillion-ringgitprojectswithinayearforCBHBisevidencethatthemanagementissteeringtheCompanyintherightdirectioninbuildingsuccessfulgrowthanditisaddingtotheCompany’sdrivingforcetoexpandanddiversifyitsbusinessblueprintbothintheconstructionandpropertydevelopmentindustries.

CHAIRMAN’SSTATEMENT

ANNUALREPORT2012

[15]

AddingastrongpositivecontributiontoourbooksforFY2012isourTierraCrestpropertyinKelanaJaya,whichwesuccessfullysignedandsecuredanine-year(3+3+3years)tenancyagreementwithUnitarInternationalUniversity(“Unitar”),wherebytheUniversitywillbeoccupyingthetwoofficetowersastheirheadquarters.Unitar’soccupancyoverthenextnineyearswillgenerateannualrevenueofapproximatelyRM6.0millionforCBHB.TierraCrestisstrategicallylocatedattheheartofKelanaJayawithaccesstoandfromallsurroundingmajorhighways,thusprovidingastrongattractionforourthree-levelretailpodiumuponcompletionin2013.Lastyear,wehadbrieflyhighlightedourUNITAPAHConcessionProjectwiththeMinistryofHigherEducationwhichseesCBHBdevelopingacampustoundertakeacapacityof5,000students.TheprogressofthisprojectisonscheduleforitstargetedcompletiondateofJanuary2014.Duringthelastquarteroftheyear,CBHBhadalsocompleteda10%placementwhichwasfullytakenupbyvariousinstitutionalinvestors.Simultaneously,abonusissueofnewwarrantswasalsoexecutedwithaswapratioofthree(3)newwarrantsforeveryten(10)existingordinaryshares.DIVIDENDTheBoardbelievesinbuildingshareholder’sinterestandsharingoursuccessbyrewardingourshareholderswhileatthesametimemaintainingsufficientfundstoinvestintheCompany’slongtermgrowth.ForFY2012,theBoardhasrecommendedafirstandfinalgrossdividendof5.0senpershare,lessincometaxof25%atthisAnnualGeneralMeeting.MARKET OUTLOOK AND FUTURE PROSPECTSDespitetheglobalwhirlwindeffectsfromtheon-goingEuropeanFinancialCrisis,Malaysiahasmaintainedahealthygrowthof5.6%for2012,placingMalaysiaasoneofthebestregionalperformers.Accordingtoreports,Malaysia’sresilienteconomyischaracterisedbycrediblegrowth,lowinflation,fullemployment,risinginvestmentfrombothforeignanddomesticinvestors,healthyforeignreservesandstrongforeigninterestonthelocalbourse.Positivegrowthandincreasingmarketinvestmentsfrom2012areexpectedtospilloverandcontinuefor2013.ThepositiveoutlookissupportedbyanumberofnationalprojectsandinitiativessuchasTheEconomicTransformationProgramme(ETP), theNationalKeyResultsAreas (NKRAs), theNationalKeyEconomicAreas (NKEAs)andsoon.ThesenationalprojectsareleadingtothehigherinvestmentsandinfrastructuredevelopmentprojectssuchastheMRTProject,henceincreasingprojectopportunitiesfortheindustry.OneofMalaysia’sVision2020keyinitiativesistodriveMalaysiaintoadevelopedandhighincomenationby2020.Thuswithreferencetorecentrecords,theaveragehouseholdincomehasbeenontherisewithanannualincreaseof7.2%p.a.overthelastthreeyears.Withthesestatisticsinsight,webelievethatitwillincreasethepropertymarketandhousingdemandsgoingforward.MOVING FORWARD AsatthecloseofFY2012,theGroup’sorderbookstoodatahealthyRM1.9billionwithanunbilledorderbookofRM1.26billion.TheGroupiscontinuouslybiddingforprojectstoensurethatwemaintainastrongfinancialstreaminthelongterm.ThuswithatenderbookofapproximatelyRM6.0billioninthepipeline,theGroupisanticipatinginmaintainingasteadygrowthfortheGroup’srevenuestream.WiththeGroup’sportfolionowreinforcedwithourtwobillion-ringgitprojects,webelievethatwehaveachievedinbringingCBHBtothenextstageandwehopetocontinuouslybuildourportfoliowithsuchprojects.Therefore,wearealwayscommittedtoon-goingadvancementofourprofessionalexpertiseandtechnicalcapabilitiessothatwearealwaysinastrongpositionforprojectopportunitiesthatarisesandlinedwithacompetitiveedge.APPRECIATIONOnbehalfoftheBoardofDirectors,Iwishtoexpressourheart-feltappreciationtoallourcustomers,vendors,suppliers,consultants,associates,bankersandbusinesspartnersfortheirbusiness,support,loyalty,advice,cooperationandtrust.OnbehalfoftheBoard,IalsowishtoexpressourthanksandappreciationtoourmanagementandstafffortheircontinuedhardworkanddedicationtotheCompany.ToourvaluedShareholders,theBoardofDirectorsandIthankyouforyourcontinuedsupport,confidenceandtrustinus.WewillcontinuetoworkhardforthecreationandpreservationofshareholdervalueintheGroup.

CHAIRMAN’SSTATEMENT(CONT’D)


[16]

MANAGEMENTREVIEW

Crest Builder Holdings Berhad (“CBHB”orthe“Group”) isprincipally involvedingeneralconstructionworksandconstruction-related activities. TheGroup is a registeredClassAContractorwith theMinistry of EntrepreneurialDevelopmentandaCategoryG7withtheConstructionIndustryDevelopmentBoard.SecuringtheseregistrationshasenabledtheGrouptotenderandcarryoutallcategoriesofbothgovernmentandprivateconstructioncontracts.Wepossessthenecessaryexpertiseandcapabilitytocovervariousareasofconstruction-relatedservicesincludingpropertydevelopment,propertymanagement,M&Eservices,projectmanagementandcarparkmanagement.TheconstructionbusinessoftheGroupfocusesontheinfrastructureandbuildingworksofresidentialdevelopments,healthcare amenities, infrastructure, leisure and education amenities, education facilities etc.with regards to ourinfrastructureworks,weprovideacomprehensiveservicethatincludesthedesign,construction,finalcompletionandmaintenanceofroads,bridgesandotherbasicfacilities.Ourproperty development iscomprehensivelysupportedbyourconstructiondivision inprovidingCBHBwithanintegratedoperationbenefitunderoneroof.Equippedwithourownin-houseexpertise,weareinvolvedinallaspectsoftherealestatebusiness,fromplanningsubmissiontothecompletionofinteriorfurnishingofourowndevelopments.

CBHBmaidenpropertydevelopmentprojectwhich launched in2007–3TwoSquare,PetalingJaya– isamixeddevelopmentwheretheGroup’sheadquartersarecurrentlylocated.CBHBistheassetowner,andproperty and car park managementofthe13-storeyCorporateTowerandattachedcarparklots,forwhichtherentalcontributesanannualincomeofapproximatelyRM8.85million.

FINANCIAL PERFORMANCE

Fortheyearended31December2012,theGroupreporteda12-monthrevenueofRM565.72million,givinga28.14%increaseascomparedtothepreviousyearofRM441.50million.Withregardstoourprofitfortheperiod(‘PAT’),RM39.57millionwasreportedforFY2012,translatingtoearningspershareof30.65sen,a34.55%increasefromtheprofitofRM29.41millionreportedinFY2011.TheGroup’sbusinessoperationsandfinancialactivitiesaremanagedandreportedseparatelyininthreedivisionswhichenablestheimplementationofastreamlinedmanagementstructure.

Construction

TheGroup’sfoundingdivisioncontinuestobetheleadingcontributortoCBHB’sprofitforFY2012,witharevenueofRM428.30million, representing75.71%of theGroup’stotal revenue.FY2012earningsbefore interestandtaxation(“EBIT”)reportedasumofRM30.55million.Theincreaseinthedivision’sprofitsforFY2012wasmainlyduetoprogressiveincomethatwasrecognisedduringtheyearforafewofourcompletedconstructionprojects,namelyVerticasResidensi,MenaraBinjai,SkyResidenceandUiTMTapahIIBranchCampus.(‘Unitapah’).

Property Development

ForFY2012,thepropertydevelopmentdivisionrecordedarevenueofRM52.74million,showinganincreaseof14.63%comparedtoitspreviousyearofRM46.01millionandanEBITofRM9.12million.

Therewasarespectiveincreaseinourfourthquarterperformanceduetoprogressiveprofitsrecognised,suchasthe25%salesofournewdevelopmentproject,AvenueCrestOfficeSuites.AvenueCrestisa24-storeycommercialbuildingcomprising495unitsofboutiqueofficesuitesandSOFOsuiteslocatedinBatuTiga,ShahAlam.AlsocontributingtoourprofitsforFY2012isPhase3ofourBatuTigaresidentialdevelopment,AlamIdaman,whichsuccessfullysaw100%sales,translatingtoatotalof326unitssold.

ANNUALREPORT2012

[17]

MANAGEMENTREVIEW(CONT’D)

Investment

ForFY2012,theGroup’sinvestmentdivisionrecordedarevenueofRM9.02millionandanEBITofRM38.24million.Theinvestments’EBITcomparedtoourtoplinewashugelyskewedasprofitswereduetothefairvaluegainfromourinvestmentproperties,namelyTheCrestCorporateToweranditsattachedcarparklots,andashopunitslocatedinTamanMegah,whichamountedtoRM19.62million.

PROJECT DEVELOPMENTS

2012wasafruitfulyearfortheGroupwhichsawastrongstarttothefirstquarterwhenwesecuredajointdevelopmentprojectwithSyarikatPrasaranaNegaraBhdpertainingatotalGDVvalueofRM1.04billion.Thismixeddevelopmentproject, locatedatDangWangiLRTStationattheheartofKualaLumpur,encompassesaretailmall,SOFOsuites,offices,apartmentunitsandahotel.Themixeddevelopmentproject,code-named“The Bank”,isexpectedtostartitsphysicalworksduringthesecondhalfof2013withatargetedcompletiondateof2018.ThesuccessofsecuringaprojectsuchasDangWangicontinuedwhenweprocuredoursecondmajordevelopmentprojectfortheyearwiththeMalaysiaRubberBoard(‘MRB’),withatotalGDVofRM1.33billion.Thisjointdevelopment,code-named“The Galleria”,islocatedonJalanAmpangandsitson2.2haoflandinthecentreofKualaLumpur.Theproposeddevelopmentwillcomprisea28-storeyapartmenttower,SOHOtowers,a33-storeycorporatetoweranda6-storeyboutiqueretailmall.PhysicalworksforTheGalleriaisexpectedtostartonacorrespondingtimelinewiththeDangWangiproject–duringthesecondhalfof2013withanexpectedconstructiontimelineofsixyears.In termsof initial financial requirementsandcommitments for theabovementionedprojects,CBHB isgrateful andfortunate tohavesecuredsuchprojectswhereby theGroup isnotconstrainedbysubstantial landcostsnor initialcapitalrequirementstosupporttheseprojects.ThesefavourabletermsaremadepossiblebecauseCBHB’sjointprojectpartnersareprovidingtherespectivelandasequityandCBHBprojectcapitalrequirementswillbemadebywayofacombinationofcashandpaymentinkindoverthelifeoftheproject.TheGalleriaandTheBankareexpectedtoprovidepositivecontributionstotheGroupsometimeinFY2014.OneofourkeypropertydevelopmentprojectswhichhasstartedtocontributetoourincomeforFY2012isTierra CrestlocatedinKelanaJaya,whichisthenewUNITARheadquarters.Wesuccessfullysecuredanine-years(3+3+3)tenancyagreementwithUNITARon18October2012.UNITARwillbeoccupyingtheentiretyofthetwoofficetowers,makingupapproximately85%ofthetotallettableareaof280,000squarefeet.TierraCrestisstrategicallylocatedinKelanaJayawithdirectaccessfromallthemajorhighwaysintheareasuchastheFederalHighway,LDPandSprint,andisalreadysurroundedbywell-knownuniversitiessuchasKDUUniversity,SunwayUniversity,TaylorsandUNITAR’sexistingcampus.TierraCrestisa16-storeydevelopmentconstructedonalandareaofapproximately1.82acres,withtwoofficetowersanda3-storeyretailpodium.ThisRM130-millionprojectconsistsofonlytwounitsperfloorintheofficetowerswithabuilt-upareaofapproximately8,000squarefeetperunit,towhichUNITARarecommittinganannualrentalofRM6.0million.ThisthuscontributesanadditionalrecurringincomestreamforCBHBforthetermofthetenancycontractperiod.TheGroupisretainingandengagingthepropertymanagementoftheretailpodium,whichsetsusontrackandprovidesthemanagementwiththenecessaryexperiencegoingforwardwiththeupcomingMRBandDangiprojects.WithKelanaJayabeinggrantedthe“CITY”statusandconsideringthecatchmentpopulationofapproximately250,000withina3-kmradius,themanagementbelievesthatitsstrategiclocationwillstronglyattractretailersandpotentialinvestors.

UiTM Tapah II Campusproject,whichwassecuredin2010,istheGroup’sfirstconcessionprojectattachedtoa23-yearsagreementwiththeMinistryofEducationandUniverstiTeknologiMaratobuildandmaintainthecampusfacilitiesforthecourseoftheconcessionperiod.Theproject,whichcarriesacontractsumofRM292.71millionandaconstructioncostofRM284.89million,willgenerateanannualcashflowofapproximatelyRM45.25millionuntiltheyear2034,beingtheendoftheconcessionperiod.Thefullycompletedcampus,builton75acresoflandwillcaterforacapacityofupto5,000students.UNITAPAH’s75acresissittingononlyasmallfractionofatotallandmassof1,200acres,whichhasthecapacitytoaccommodateupto50,000students.Wethereforehavereasontobelievethatthereisstrongpotentialforustobeengagedforfurtherexpansioninthedevelopmentofthisland.Ourportfolioofnewpropertydevelopments isoneofourkeystrategicplans forenhancingandstrengthening theGroup’searningsbybuildingastableandrecurringincomeplatformthatwillenableustoensuresustainablegrowthtomoveforward.


[18]

CORPORATE ACTIVITIES

On30October2012,CBHBcompleteda10%placementwhichwasfullytakenupbyvariousinstitutionalinvestors.ThisraisedatotalofRM11.3million,aresultthatbuilttheGroup’sconfidenceandsupportedinvestors’confidenceinCBHB.Postthe10%placement,abonusissueofnewwarrantswasalsoexecutedwithaswapratioofthree(3)newwarrantsforeveryten(10)existingordinaryshares.TheBoardofCBHBbelieves insharingthefruitsof itssuccesswith itsshareholderswhileconsciouslymaintainingstructuredinvestmentrequirementsfortheGroup’slong-termgrowth.Thus,inachievingthisbalanceandincontinuingtodeliverandbuildourshareholders’interestforFY2012,theBoardhasrecommendedafirstandfinalgrossdividendof5.0senpershare,lessincometaxof25%atthisAnnualGeneralMeeting.

MOVING FORWARD

FloatingwithahealthyorderbookofRM1.9billionandanunbilledorderbookofRM1.26billion,weareconfidentthattheseprojectswillcarryusforwardforanother5years.Asadrivenandgrowingbusiness,theGroupiscontinuouslybiddingforprojectstoensurethatwemaintainastrongfinancialincomestreamandgearingforlongtermsustainablegrowth.WearecurrentlybiddingonatenderbookofapproximatelyRM6.0billion,andwiththis,weareconfidentthatwewillbeabletomaintainasteadygrowthforFY2013,barringanyunforeseencircumstances.ForFY2013,theGroupwillbekeptonabusyschedulewiththecommencementoftheMRBandDangWangidevelopmentprojectsandsecuringfulloccupationoftheretailpodiumofTierraCrest,tohaveitrunningatfullcapacity.ThisaddstotheGroup’srevenuestreamforFY2013.TheseprojectswillbethekeydriverstoourpropertydevelopmentandinvestmentdivisionandinlaunchingtheGrouponitsnextlevelofgrowth.Forourpropertydevelopment,wewillfocusonmatureareasandpocketlands,mainlyintheKlangValley.Developmentprojectswithinmatureareasprovideareadypopulation,advancedinfrastructure,keyaccessroutesandotherservingamenitiesandhencereducesmarketingcostsandthewaitingperiodfortheareacapacitytodevelop.Themanagementbelievesthatfocusingonpocketlanddevelopmentsthatreducesinitialfinancialrequirementsanddevelopmentrisksinthelongterm–ascomparedtothedevelopmentoflargetownshipsperse–willprovideastrongstablegrowthfortheGroup.Fortheconstructiondivision,wewillcontinuetofocusonapartments,corporateofficesandretaildevelopmentsasthemanagementforeseesagrowingdemandinthesemarketsgoingforward.Withrespecttothecorporateoffices,themarketisdrivingthedemandformoreadvanced,high-techandGradeAoffices.Theworkingclassandtheyounger,upcominggenerationaredrivingthedemandforthesupplyofnewhomes.As the industryexperiencescontinuousgrowth inbuildingmaterialand technologyadvancements, theGroupalsoworkscontinuouslytoensurethatweareequippedinallrequiredaspectsinordertomaintainacompetitiveedge.Inourindustry,professional,technicalandfieldexpertiseareaconstantdemand,andwethereforecommittoprovidingon-goingtrainingandknowledgeadvancementforourteamofexpertsandconsultants.

INDUSTRY OUTLOOK AND FUTURE PROSPECTS

Inspiteofthevariouseconomicconditionsandtheon-goingEuropeanFinancialCrisis,Malaysia’seconomyhasremainedresilienttoallthenegativemarketeffectsandcontinuedtodeliverapositivegrowthof5.6%.2012’spositivegrowthandincreasingmarketinvestmentsareexpectedtocontinuefor2013andthepropertymarketisexpectedtodeliverfurthergrowthascomparedto2012.Accordingtoreports, resources, thepropertymarketcorrelatestoeconomicgrowth.Malaysia’sresidentialsector isalsodrivenbyhighhousehold formationstemmingfromMalaysia’srelativelyyoungpopulationwithrisingincomes.Asresidentialpropertiesaremainlyowner-occupied,thereisaconstant,growingdemandforresidentialpropertiesasMalaysia’syoungpopulationcontinuestoincrease.


ANNUALREPORT2012

[19]

Malaysia’spropertymarketiscurrentlyintheearlystagesofapromisinggrowthspurt.Duetoitsstrongeconomicclimateandgovernmentinitiatives,thisgrowthnotonlyencourageslocal investmentsbutalsoattractsforeigninvestments.Forexample,thepromisingIskandardevelopmentiscurrentlyattractingforeigninvestments,especiallyfromSingaporeastheirownpropertymarketisbecomingsaturated.Asmoreandmoreforeigninvestmentsenter,Malaysia’smarketdemandandpricingwillbeboostedinthelongterm.NationalinitiativesandprojectssuchastheETPProgramme,theNKEA,theGreaterKLProgrammeetc.areresultingin the increased investments in infrastructuredevelopmentssuchas theKlangValleyMRTProject.Malaysia’sETPProgrammeissettospendasurplusofRM100billionoverthenextfivetosixyearsindevelopingandadvancingtherailwayinfrastructure–i.e.theMRT,LRT,Monorail,andElectrifiedDoubleRailwayProject(EDTP)–andinvestingintonewbuildingsinKLCitythroughtheGreaterKLprogramme.Asaresultoftheadvancingrailwaysystems,thedevelopmentimpactwillspillovertoitssurroundingareasandothersectors,especiallythepropertysector.DrivingMalaysiaintoadevelopednationandahigh-incomenationbytheyear2020isoneofthekeyaspectsoftheGovernment’sVision2020.Thus,thedevelopmentandadvancementofitstransitandGreaterKLinfrastructureisoneofitsmainfocusesinmeetingthisgoal.Hence,asanadvancedconstructionandpropertydevelopmentcompany,withover30yearsofexperienceunderourbelt,webelievethatweareinastrongpositiontobenefitfromtheincreasingprojectopportunitiesintheindustry.


100%

51%

51%

51%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Investment Holding

CRESTLAND DEVELOPMENT SDN BHD316852-A

Property Investment

LANDASAN BAYU SDN BHD978758-T


CREST BUILDER SDN BHD110330-K

Construction

CBTECH (M) SDN BHD508386-M

Mechanical & Electrical Engineering Services

3 TWO SQUARE SDN BHD617273-X

Property Investment

CB LAND SDN BHD658719-D


NEPFIELD SDN BHD592256-M


VERTICAL SUCCESS SDN BHD691623-V

Property Investment

CRESTLAND PROJECTMANAGEMENT SDN BHD

659478-VProject Management

CREST BUILDERINTERNATIONAL SDN BHD

644441-TInvestment Holding

DAMANSARA ONE SDN BHD669184-V


UNITAPAH SDN BHD846665-X

Concession holder

INTAN SEKITAR SDN BHD985063-T



[20]

CORPORATESTRUCTURE

100%

51%

51%

51%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Investment Holding

CRESTLAND DEVELOPMENT SDN BHD316852-A

Property Investment

LANDASAN BAYU SDN BHD978758-T


CREST BUILDER SDN BHD110330-K

Construction

CBTECH (M) SDN BHD508386-M

Mechanical & Electrical Engineering Services

3 TWO SQUARE SDN BHD617273-X

Property Investment

CB LAND SDN BHD658719-D


NEPFIELD SDN BHD592256-M


VERTICAL SUCCESS SDN BHD691623-V

Property Investment

CRESTLAND PROJECTMANAGEMENT SDN BHD

659478-VProject Management

CREST BUILDERINTERNATIONAL SDN BHD

644441-TInvestment Holding

DAMANSARA ONE SDN BHD669184-V


UNITAPAH SDN BHD846665-X

Concession holder

INTAN SEKITAR SDN BHD985063-T


ANNUALREPORT2012

[21]

REPORT OF THEAUDIT COMMITTEE

COMPOSITION AND MEMBERS

The currentAuditCommittee comprises three (3)members of theBoardwho are all IndependentNon-ExecutiveDirectors.AlltheIndependentNon-ExecutiveDirectors,MohdKhasanBinAhmad,KeongChoonKeatandKamYongKanaremembersoftheMalaysianInstituteofAccountants.BelowarethemembersoftheAuditCommitteeduringthefinancialyear:-

Directors Status1. MohdKhasanBinAhmad-Chairman IndependentNon-ExecutiveDirector2. KeongChoonKeat SeniorIndependentNon-ExecutiveDirector3. KamYongKan IndependentNon-ExecutiveDirector

TERMS OF REFERENCE

TheAuditCommitteeisgovernedbythefollowingtermsofreference:-

1. Composition

(i) TheCommitteeshallbeappointedbytheBoardfromamongsttheDirectorsexcludingAlternateDirectors;shallconsistofnotlessthanthreemembers,allcurrentmembersareindependantnon-executiveDirectors;andatleastonememberoftheauditcommittee:-

(a) mustbeamemberoftheMalaysianInstituteofAccountants;or

(b) ifheisnotamemberoftheMalaysianInstituteofAccountants,hemusthaveatleast3years’workingexperienceand:-

(aa) hemusthavepassedtheexaminationsspecifiedinPart1ofthe1stScheduleoftheAccountantsAct1967;or

(bb) hemustbeamemberofoneoftheassociationsofaccountantsspecifiedinPart11ofthe1stScheduleoftheAccountantsAct1967.

(c) fulfilssuchotherrequirementsasprescribedbyBursaMalaysiaSecuritiesBerhad or approved bytheSecuritiesCommission

TheChairmanshallbeanindependentnon-executiveDirectorelectedbythemembersoftheCommittee.

(ii) IntheeventofanyvacancyintheCommitteeresultinginthenon-complianceofparagraph(i)above,theBoardmustfillthevacancywithin3months.

(iii) ThetermofofficeandperformanceoftheCommitteeandeachofitsmembersshallbereviewedbytheBoardatleastonceevery3yearstodeterminewhethertheCommitteeanditsmembershavecarriedouttheirdutiesinaccordancewiththeirtermsofreference.

2. Authority

TheCommitteeisgrantedtheauthoritytoinvestigateanyactivityoftheCompanyanditssubsidiarieswithinitstermsofreference,andallemployeesaredirectedtoco-operateasrequestedbymembersoftheCommittee.TheCommitteeisempoweredtoobtainindependentprofessionalorotheradviceandretainpersonshavingspecialcompetenceasnecessarytoassisttheCommitteeinfulfillingitsresponsibility.


[22]

3. Responsibility

TheCommitteeistoserveasafocalpointforcommunicationbetweennon-CommitteeDirectors,theexternalauditors,internalauditorsandtheManagementonmattersinconnectionwithfinancialaccounting,reportingandcontrols.TheCommitteeistoassisttheBoardinfulfillingitsfiduciaryresponsibilitiesastoaccountingpoliciesandreportingpracticesoftheCompanyandallsubsidiariesandthesufficiencyofauditingrelativethereto.ItistobetheBoard’sprincipalagentinassuringtheindependenceoftheCompany’sexternalauditors,theintegrityofthemanagementandtheadequacyofdisclosurestoshareholders.

IftheCommitteeisoftheviewthatamatterreportedtotheBoardhasnotbeensatisfactorilyresolvedresultinginabreachoftheBursaMalaysiaSecuritiesBerhad’s(“BursaSecurities”)ListingRequirements,theCommitteeshallpromptlyreportsuchmattertotheExchange.

4. Functions

ThefunctionsoftheCommitteeareasfollows:-

(i) reviewwiththeexternalauditors,theirauditplan;

(ii) reviewwiththeexternalauditors,theirevaluationofthesystemofinternalcontrols;

(iii) reviewwiththeexternalauditors,theirauditreport;

(iv) reviewtheassistancegivenbytheCompany’sofficerstotheexternalauditors;

(v) reviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunctionsandthatithasthenecessaryauthoritytocarryoutitswork;

(vi) reviewtheinternalauditprogramme,processes,theresultsoftheinternalauditprogramme,processesorinvestigationundertakenandwhetherornotappropriateactionistakenontherecommendationsoftheinternalauditfunction;

(vii) reviewthequarterlyresultsandyearendfinancialstatements,priortotheapprovalbytheBoard,focusingparticularlyon:-

(a) changesinorimplementationofmajoraccountingpolicychanges;(b) significantandunusualevents;(c) significantadjustmentsarisingfromtheaudit;(d) compliancewithaccountingstandardsandotherlegalrequirements;(e) compliancewithBursaMalaysiaSecuritiesBerhad;and(f) thegoingconcernassumption.

(viii) reviewanyrelatedpartytransactionandconflictofinterestsituationthatmayarisewithintheCompanyorGroupincludinganytransaction,procedureorcourseofconductthatraisesquestionsofmanagementintegrity;

(ix) considerthenomination,appointmentandre-appointmentofexternalauditors;theirauditfees;andanyquestionsonresignationorremoval;and

(x) reviewtheallocationofoptionsduringtheyearundertheCompany’sEmployeesShareOptionScheme(“ESOS”)toensurethatitisinaccordancewiththecriteriadeterminedbytheOptionCommitteeandincompliancewiththeESOSby-laws.

REPORTOFTHEAUDITCOMMITTEE(CONT’D)

ANNUALREPORT2012

[23]

5. Meetings

(i) TheCommitteeistomeetatleastfourtimesayearandasmanytimesastheCommitteedeemsnecessary.

(ii) InordertoformaquorumforanymeetingoftheCommittee,two(2)ofthemembersmustbepresentandallpresentmustbeNon-ExecutiveDirectorsandmajoritymustbeIndependentDirectors.

(iii) ThemeetingsandproceedingsoftheCommitteearegovernedbytheprovisionsoftheArticlesofAssociationoftheCompanyregulatingthemeetingsandproceedingsoftheBoardsofarasthesameareapplicable.

(iv) Thedirector/person responsible for thefinancialmanagementof theparentcompanyand theheadofinternalauditshallnormallyattendmeetingsoftheCommittee.Thepresenceofarepresentativeoftheexternalauditorswillberequestedifrequired.

(v) Uponrequestbytheexternalauditors,theChairmanoftheCommitteeshallconveneameetingoftheCommitteetoconsideranymatterstheexternalauditorsbelieveshouldbebroughttotheattentionoftheDirectorsormembersoftheCompany.

(vi) Atleasttwiceayear,theCommitteeshallmeetwiththeexternalauditorswithoutthepresenceofotherdirectors,andemployeesofthelistedissuerwheneverdeemednecessary.

6. Secretary and minutes

ThesecretaryoftheCommitteeshallbetheCompanySecretary.MinutesofeachmeetingaretobepreparedandsenttotheCommitteemembers,andtheCompany’sDirectorswhoarenotmembersoftheCommittee.

MEETINGS

TheAuditCommitteeconvenedfive(5)meetingsinrespectforfinancialyearended31December2012.Theattendanceforthemeetingswereasfollows:

No. of Meetings No. of Meetings HeldMembers Attended During Tenure

1. MohdKhasanBinAhmad-Chairman 5 52. KeongChoonKeat 5 53. KamYongKan 5 5

SUMMARY OF ACTIVITIES

Forthefinancialyearunderreview,theAuditCommitteecarriedoutitsdutiesassetoutinthetermsofreference.TheCommitteeconvenedfive(5)meetingstoreviewthefollowing:-

• TheannualfinancialstatementspriortosubmissiontotheBoardofDirectorsforconsiderationandapproval;• TheunauditedQuarterlyFinancialResultsforfourquartersinyear2012forthereleasetotheBursaMalaysia

SecuritiesBerhad;• TheRecurrentRelatedPartyTransactionsandRelatedPartyTransactionsoftheCompany;• TheStatementofCorporateGovernanceandInternalControlStatementfordisclosureinAnnualReportyear

2011;• Reviewoftheinternalauditreportforfinancialyear2011&2012includinginternalcontrols;andimplementation

ofrecommendations;• TheinternalandexternalauditplanningmemorandumsandprogrammesoftheInternalandExternalAuditorsfor

thefollowingyearaswellastherecommendationoftheirrespectivefeestotheBoard;• ConsiderandrecommendtotheBoardofDirectorstheappointmentofexternalandinternalauditors;• Therecommendationsbytheexternalauditorsinrespectofcontrolweaknessesnotedduringthecourseoftheir

audit;and• TheallocationofoptionsundertheCompany’sESOSschemetoensureitscompliancewithBy-laws.

Themeetingswereappropriatelystructuredthroughtheuseofagendasandmeetingpapers,whichweredistributedtomemberswithsufficientnotification.



[24]

INTERNAL AUDIT FUNCTION

TheCompanyhasanout-sourcingarrangementwithanindependentprofessionalfirmtoprovideinternalauditserviceswhichassiststheAuditCommitteeinthedischargeofitsfunctions.TheInternalAuditoristoprovideindependentandobjective reportson theorganization’smanagement records,accountingpoliciesandcontrolsdirectly to theAuditCommittee.Suchaudits/reviewsalsoensureinstitutedcontrolsareappropriateandareeffectivelyappliedtoachieveacceptablerisksexposures.

Duringthefinancialyear,theInternalAuditorconductedindependentreviewsandevaluatedriskexposuresrelatingtotheGroup’sgovernance,operationsandinformationsystemasfollows:-

• Reliabilityandintegrityoffinancialandoperationalinformation.• Effectivenessandefficiencyofoperations.• Safeguardingofassets.• Compliancewithpoliciesandprocedures,laws,regulationsandcontractsi.e.reasonablyensuringconformity

andadherencetothesematters.

TheInternalAuditoralsoestablishedfollow-upaudits/reviewstomonitorandtoensurethatinternalaudit’srecommendationshavebeeneffectivelyimplemented.Reports,includingwhererelevant,actionplansagreedwiththeoperationallevelmanagement,arecirculatedtoSeniorManagementandaretabledattheAuditCommitteeMeeting.InternalauditfeesofRM65,000waspaidtotheoutsourcedinternalauditorsforthefinancialyearended31December2012.

Duringthefinancialyear,theinternalauditactivitieshavebeencarriedoutaccordingtotheinternalauditplanwhichhasbeenapprovedbytheAuditCommittee.


ANNUALREPORT2012

[25]

STATEMENT ONCORPORATE GOVERNANCE

TheBoardofDirectorsremainscommittedtoachievingandmaintainingthehigheststandardsofcorporategovernancethroughout theGroup. TheBoard views corporate governance as synonymouswith four key concepts; namelytransparency,accountability,integrityaswellascorporateperformance.

MeasuresandeffortshaveandshallbetakentoensureasfaraspracticabletheadoptionandimplementationofthePrinciplesandRecommendationssetoutintheMalaysianCodeonCorporateGovernance(“theCode”)andintheMainMarketListingRequirements(“MMLR”)oftheBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).

SetoutbelowisadescriptionofhowtheGrouphasappliedthePrinciplesoftheCodeandhowtheBoardofDirectorshascompliedwiththeRecommendationssetoutintheCodethroughoutthefinancialyearended31December2012.

SECTION A - BOARD OF DIRECTORS

The Board

TheGroup recognizes the important role playedby theBoardofDirectors in the stewardship of its direction andoperationsandultimatelytheenhancementoflongtermshareholdervalue.Tofulfillthisrole,theBoardisresponsiblefortheoverallcorporategovernanceoftheGroup,includingitsstrategicdirection,establishinggoalsformanagementandmonitoringtheachievementofthesegoals.

TheBoardhasaformalscheduleofmattersreservedtoitselffordecision,whichincludestheoverallGroupstrategyanddirection,acquisitionanddivestmentpolicy,approvalofmajorcapitalexpenditureprojectsandsignificantfinancialmatters.ThescheduleensuresthatthegovernanceoftheGroupisinitshands.

Duties and Responsibilities of the Board

TheresponsibilitiesoftheBoardofDirectorsoftheCompanyareasfollows:-• ReviewingandadoptingastrategicplanfortheCompanywhichwillenhancethefuturegrowthoftheCompany;• OverseeingtheconductoftheCompany’sbusinesstoevaluatewhetherthebusinessisbeingproperlymanaged;• Identifyingprincipalrisksofthebusinessandensuretheimplementationofappropriatesystemstomanagethese

risks;• Successionplanning;• OverseeingthedevelopmentandimplementationofshareholdercommunicationspolicyfortheCompany;and• ReviewingtheadequacyandtheintegrityoftheCompany’sinternalcontrolsystemsandmanagementinformation

systems,includingsystemsforcompliancewithapplicablelaws,regulations,rules,directivesandguidelines.

Board Balance & Independence Of Directors

AsatthedateofthisstatementtheBoardhaseight(8)members,comprisingfour(4)Non-ExecutiveDirectorsandfour(4)ExecutiveDirectors.Three(3)oftheeight(8)DirectorsareIndependentNon-ExecutiveDirectors.AbriefprofileofeachDirectorispresentedonpages12and13ofthisAnnualReport.

ThereisacleardivisionofresponsibilitybetweentheChairmanandtheManagingDirectoroftheGroupinordertoprovide forbalanceofpowerandauthority.TheChairman is responsible forensuring theBoardeffectivenessandconductwhilsttheManagingDirectorhasanoverallresponsibilityovertheoperatingunits,organizationaleffectivenessandimplementationoftheBoard’spoliciesanddecisions.

AlltheIndependentNon-ExecutiveDirectorsareindependentofManagementandarefreefromanybusinessorotherrelationshipthatcouldmaterially interferewiththeexerciseof their independent judgment.TheyhavethecalibretoensurethatthestrategiesproposedbytheManagementarefullydeliberatedandexaminedinthelong-terminterestoftheGroup,aswellasshareholders,employeesandcustomers.

OneoftherecommendationsoftheCodestatesthatthetenureofanindependentdirectorshouldnotexceedacumulativetermof9years.However,theNominationCommitteeandtheBoardhaveupontheirannualassessment,concludedthateachofthe3IndependentNon-ExecutiveDirectors,MrKeongChoonKeat,EncikMohdKhasanBinAhmadandMrKamYongKancontinuetodemonstrateconductandbehaviourthatareessentialindicatorsofindependence,andthateachofthemcontinuestofulfillthedefinitionofindependenceassetoutintheMMLR.ThelengthoftheirserviceontheBoarddoesnotinanywayinterferewiththeirexerciseofindependentjudgementandabilitytoactinthebestinterestofCrestBuilderHoldingsBerhad.


[26]

Directors’ Code of Conduct

TheDirectorsobserveacodeofethicsinaccordancewiththecodeofconductexpectedofDirectorsintheCompanyDirectors’CodeofEthicsestablishedbytheCompaniesCommissionofMalaysia.

Board Meetings

TheBoardordinarilymeetsatleastfour(4)timesayearatquarterlyintervalswithadditionalmeetingsconvenedwhenurgentandimportantdecisionsneedtobetakenbetweenthescheduledmeetings.Duringthefinancialyear,theBoardmetonfive(5)occasions,whereitdeliberateduponandconsideredavarietyofmattersincludingtheGroup’sfinancialresults,majorinvestmentsandstrategicdecisions,thebusinessdirectionoftheGroupandcorporategovernancematters.

DetailsoftheattendanceoftheDirectorsattheBoardMeetingsareasfollows:-

Directors Number of meetings attended

(i) TengkuDato’SulaimanShahBinTengkuAbdulJalilShah 5/5

(ii) YongSoonChow 5/5

(iii) KohHuaLan 4/5

(v) YongShangMing 5/5

(vi) KeongChoonKeat 5/5

(vii) MohdKhasanBinAhmad 5/5

(viii) KamYongKan 5/5

(ix) YongTiokKeng(AlternatetoKohHuaLan) 5/5

WhereapotentialofconflictariseintheGroup’sinvestment,projectsoranytransactionsinvolvingDirector’sinterest,suchDirectorisrequiredtodeclarehisinterestandabstainfromfurtherdiscussionandthedecisionmakingprocess.

Board Committees

Whereappropriate,mattershavebeendelegatedtoBoardCommittees,allofwhichhavewrittenconstitutionsandtermsofreferencetoassisttheBoardindischargingitsdutiesandresponsibilities.TheBoardwillthenreceivethereportsoftheirproceedingsanddeliberationsinitsscheduledBoardmeetings.

(i) Audit Committee

TheAuditCommitteewhosecompositionmeetstherevisedListingRequirementsofBursaMalaysiaSecuritiesBerhad,i.e.AllmembersareNon-ExecutiveDirectorsandatleastonememberisaqualifiedaccountant.TheprimaryobjectiveoftheAuditCommitteeistoassisttheBoardofDirectorsinfulfillingitsresponsibilitiesrelatingtoaccountingandreportingpracticesoftheGroup.TheAuditCommitteeReportissetoutonpage21.TheAuditCommitteeisempoweredtoobtainexternalprofessionaladviceandtoinviteoutsiderswithrelevantexperiencetoattenditsmeetingwhennecessary.

(ii) Nomination Committee

TheNominationCommitteehasbeenchargedwithidentifyingandrecommendingnewnomineestotheBoardaswellascommitteesoftheBoardofCrestBuilderHoldingsBerhad.However,theBoardmakesalldecisionsonappointmentsafterconsideringtherecommendationsoftheCommittee.

TheCommitteewillreviewtherequiredmixofskills,experienceandotherqualitiesincludingcorecompetencieswhichNon-ExecutiveDirectorsshouldbringtotheBoard.

STATEMENTONCORPORATEGOVERNANCE(CONT’D)

ANNUALREPORT2012

[27]

ThemembersoftheNominationCommittee,allofwhomareIndependentNon-ExecutiveDirectorsareasfollows:-

(i)KamYongKan(Chairman)(ii)KeongChoonKeat(iii)MohdKhasanbinAhmad

Duringthefinancialyear,one(1)meetingwasheldandwasattendedbyallmembersoftheNominationCommittee.

(iii) Remuneration Committee

TheRemunerationCommitteeisresponsiblefordevelopingtheGroup’sremunerationpolicyanddeterminingtheremunerationpackagesoftheExecutiveDirectorsoftheGroup.TheRemunerationCommitteeproposes,subjecttotheapprovaloftheBoard,theremunerationandtermsandconditionsofserviceandtheremunerationtobepaidtoeachDirectorforhisservicesasamemberoftheBoardaswellasCommitteeoftheBoard.

ThemembersoftheRemunerationCommitteeareasfollows:-

(i)YongSoonChow(Chairman)(ii)KeongChoonKeat(iii)MohdKhasanbinAhmad

During the financial year, one (1)meetingwasheld andwasattendedby allmembersof theRemunerationCommittee.

(iv) Option Committee

TheOptionCommitteewasestablishedon15March2007.TheOptionCommitteewasestablishedtoadministertheGroup’sEmployeeShareOptionScheme (“ESOS”) inaccordancewith theBy-Lawsof theESOSand insuchmanneras itshalldeemfitand,withsuchpowersanddutiesasareconferredupon itbytheBoardofDirectors.

ThemembersoftheOptionCommitteeareasfollows:-(i) KeongChoonKeat(Chairman)(ii) MohdKhasanbinAhmad(iii) YongSoonChow

Duringthefinancialyear,one(1)meetingwasheldandwasattendedbyallmembersoftheOptionCommittee.

Supply of Information

AllscheduledmeetingsheldduringthefinancialyearwereprecededwithaformalagendaissuedbytheCompanySecretaryinconsultationwiththeChairmanandtheManagingDirector.TheagendaforeachmeetingwasaccompaniedbytheminutesofprecedingmeetingsoftheBoardandBoardCommittees,reportsonGroupfinancialperformance,industry trends,businessplansandproposals,quarterly resultannouncementsandother relevant information.TheBoardpapersarecomprehensiveandencompassallmaterialaspectsofthemattersbeingconsidered,enablingtheBoardtolookatbothquantitativeandqualitativefactorssothatinformeddecisionsaremade.AllDirectorshaveaccess to theadviceandservicesof theCompanySecretary.Directorsare informedandawarethattheymaytakeindependentprofessionaladvice,ifnecessaryandappropriateinfurtheranceoftheirduties,attheexpenseoftheGroup.

Appointments and Re-elections to the Board

TheNominationCommitteeisresponsibleformakingrecommendationsforanyappointmentstotheBoard.Inmakingthese recommendations, theNominationCommitteeconsiders the requiredmixofskillsandexperiencewhich theDirectorsshouldbringtotheBoard.

InaccordancewiththeCompany’sArticlesofAssociation,allDirectorswhoareappointedbytheBoardaresubjecttore-electionbyrotationbyshareholdersatthefirstopportunityaftertheirappointments.TheArticlesalsoprovidethatatleast1/3oftheremainingDirectorsbesubjecttore-electionbyrotationateachAnnualGeneralMeeting,providedthatallDirectorsincludingtheManagingDirectorshallretirefromofficeatleastonceeverythreeyearsbutshallbeeligibleforre-election.



[28]

Directors Training

AlltheDirectorsoftheCompanyhaveattendedtheMandatoryAccreditionProgramme(MAP)prescribedbyBursaSecuritiesfordirectorsofpubliclistedcompanies.

TheBoardencouragesDirectors toparticipate inongoingeducation,aswellasparticipation inaccrediteddirectoreducationprogrammes.

Duringthefinancialyear2012,allDirectorshadattendedvarioustrainingprogrammes,conferences,seminarsandworkshopswhichtheyhaveindividuallyorcollectivelyconsideredasrelevantandusefulincontributingtotheeffectivedischargeoftheirdutiesasDirectors.TheDirectorshadattended/participatedinoneormoreofthefollowingtrainingprogrammes/conferences/seminars/workshopsin2012:-

• MalaysiaCodeofCorporateGovernance2012• ManagingTalent&SuccessionForBusinessContinuity• CorporateFinancialReportingStandards• ResponsibilitiesofIndependentDirector,AuditandRiskCommittees• TransferPricingDevelopmentinMalaysia• CorporateintegritysystemMalaysia-CEODialogue• CIDBWorkshoponGreenPassGuidelines• TheMiracleProcessOfHotDipGalvanisingandTheHonestyOfTheCorrosionProtection• NIOSHSEMINARMS1722:2011-ImprovingOccupationalSafety&HealthManagementSystemEffectiveness• GovernmentTransformationProgramme• IBSandMechanisation2012• QualityControlofConstructionMaterialsinConstructionIndustry,Malaysia[Act520(Amendment2011)]

TheDirectorsarealsokeptinformedofthevariousrequirementsandupdatesissuedbyregulatoryauthorities.

SECTION B - DIRECTORS’ REMUNERATION

TheobjectiveoftheGroup’sRemunerationPolicyistoattractandretaintheDirectorsrequiredtoleadandcontrolthegroupeffectively.Generally,theremunerationofeachDirectorreflectsthelevelofresponsibilityandcommitmentthatgoeswiththeBoardCommitteemembership.InthecaseofExecutiveDirectors,thecomponentpartsoftheremunerationarestructuredsoastolinkrewardstoindividualandtheGroupperformance.

TheRemunerationCommitteeshallrecommendtotheBoardtheframeworkoftheExecutiveDirectors’remunerationandtheremunerationpackageforeachExecutiveDirectoroftheGroup.TheRemunerationCommitteealsoreviewsandrecommendsfortheBoard’sapprovalallotherDirector’sfees.

Disclosure

TheBoardhasconsidereddisclosureofdetailsoftheremunerationofeachDirector.TheBoardisoftheviewthatthetransparencyandaccountabilityaspectsofcorporategovernanceasapplicabletoDirectors’Remunerationareappropriatelyservedbythe“banddisclosure”asrequiredbytheListingRequirements.

Theremuneration/feesreceivedbytheDirectorsfromtheGroupforthefinancialyearended31December2012asfollows:-

Executive Director Non-Executive DirectorSalary Band (Number of Directors) (Number of Directors)

Lessthan50,000 – 4200,001to250,000 2 –250,000to300,000 1 –850,000to900,000 1 –


ANNUALREPORT2012

[29]

AggregateremunerationofDirectorsiscategorizedintoappropriatecomponents:

Salaries and/or Directors’ Other Fees Emoluments Total (RM) (RM) (RM)

ExecutiveDirectors – 1,595,462 1,595,462Non-ExecutiveDirectors 180,000 – 180,000

Total 180,000 1,595,462 1,775,462

SECTION C - SHAREHOLDERS

Dialogue between the Company and Investors

TheGroupvaluescommunicationwithitsshareholdersandinvestorsanddoesthisthroughtheAnnualReport,AnnualGeneralMeetingandCorporateAnnouncements.Allenquiriesmadearenormallydealtwithaspromptlyaspracticable.

TheCompanyalsoholdsbriefingswithresearchanalysts,fundmanagersandinvestorstoexplaintheGroup’sstrategies,performanceandmajordevelopmentsandtheBoardplanstoconductregulardialogueswithinstitutionalinvestors,fundmanagersandanalystswiththeaimoffosteringmutualunderstandingoftheGroup’sobjectives.

The Annual General Meeting

TheCompanyhasusedtheAnnualGeneralMeetingasaforumofcommunicationwithitsshareholders.TheBoardencouragesparticipation from shareholders by having a question and answer sessionduring theAnnualGeneralMeetingwherebytheDirectorsareavailabletodiscussaspectsoftheGroup’sperformanceanditsbusinessactivities.Eachitemofspecialbusinessincludedinthenoticeofthemeetingisaccompaniedbyafullexplanationoftheeffectsofaproposedresolution.SeparateresolutionsareproposedforsubstantiallyseparateissuesatthemeetingandtheChairmandeclaresthenumberofproxiesreceived,bothforandagainsteachseparateresolution,whereappropriate.

SECTION D - ACCOUNTABILITY AND AUDIT

Financial Reporting

TheBoardaimstoprovideandpresentabalancedandmeaningfulassessmentoftheGroup’sfinancialperformanceandprospectsattheendofthefinancialyear,primarilythroughtheannualfinancialstatements,quarterlyannouncementofresultstoshareholdersaswellastheChairman’sstatementintheAnnualReport.

TheDirectorsconsiderthatinpreparingthefinancialstatements,theGrouphasusedappropriateaccountingpolicies,consistentlyappliedandsupportedbyreasonableandprudentjudgmentsandestimates.AllaccountingstandardswhichtheBoardconsiderstobeapplicablehavebeencompliedwith.

TheBoardisassistedbytheAuditCommitteetooverseetheGroup’sfinancialreportingprocessesandthequalityofitsfinancialreporting.

Internal Control

TheBoardofDirectorsacknowledgesresponsibilityformaintainingasoundsystemofinternalcontrolandforreviewingitsadequacyandintegrity.Thesystemofinternalcontrolisdesignedtosafeguardtheshareholders’investmentsandtheGroup’sassets,byitsnaturecanonlymanageratherthaneliminateriskoffailuretoachievebusinessobjectivesandinherentlycanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.

TheBoardofDirectorsregardriskmanagementasanintegralpartofthebusinessoperations.Duringtheyear,managersintheGroupattendedaseriesofbriefingsonriskmanagementwhichwerefacilitatedbyexternalconsultantstoraisethelevelofknowledgeofriskmanagementamongstmanagerstoenhancetheirunderstandingoftheriskswhichpotentiallyaffecttheachievementoftheirrespectiveoperatingunit’sbusinessobjectives.

InformationontheGroup’sinternalcontrolispresentedintheStatementonInternalControllaidoutonpage32topage33ofthisAnnualReport.



[30]

Relationship with Auditors

ThroughtheAuditCommittee,theGrouphasestablishedatransparentandappropriaterelationshipwiththeGroup’sauditors,bothexternalandinternal,inseekingprofessionaladviceandensuringcompliancewiththeaccountingstandardsinMalaysia.InrelationtotheFinancialStatement,theroleoftheAuditCommitteeinrelationtotheexternalauditorsarecontainedintheAuditCommitteeReportsetoutonpage21topage24ofthisAnnualReport.

ADDITIONAL COMPLIANCE INFORMATION

InconformancewithBursaSecuritiesListingRequirements,thefollowinginformationisprovided:-

1. Utilisation of Proceeds

Duringthefinancialyearended31December2012,therewasaissuanceandplacementof11,300,000shares.TheproceedsofthesaidplacementareutilisedasworkingcapitalfortheGroup.

2. Share Buy-Back

Detailsofthesharespurchasedduringthefinancialyearended31December2012aresetoutbelow:

No. of Shares Highest Price Lowest Price TotalMonth Purchased Paid per Share Paid per Share Consideration (RM) (RM) (RM)

December 487,200 0.860 0.830 413,161.46

Total 487,200 413,161.46

Allthesharespurchasedduringthefinancialyearended31December2012wereheldastreasuryshares.Thereisnoresaleoftreasurysharesmadeduringthefinancialyear

Asat31December2012,724,500shareswereheldastreasuryshares.

3. Exercise of Options, Warrants or Convertible Securities

Duringthefinancialyearended31December2012,2,621,000optionswereexercisedinrelationtotheEmployeesShareOptionScheme.

4. American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme

TheCompanydidnotsponsoranyADRorGDRProgrammeduringfinancialyear.

5. Imposition of Sanctions/Penalties

Therewerenosanctions/penaltiesimposedontheCompanyand/oritssubsidiaries,Directorsormanagementarisingfromanysignificantbreachofrules/guidelines/legislationsbytherelevantregulatoryauthorities.

6. Non-Audit Fees

Non-audit feesamounting toRM13,650/-werepaid to theexternal auditors for the financial yearended31December2012.


ANNUALREPORT2012

[31]

7. Profit Estimate, Forecast or Projection

TheCompanydidnotreleaseanyprofitestimate,forecastorprojectionduringthefinancialyear.

8. Profit Guarantee

TherewasnoprofitguaranteegivenbytheCompanyduringthefinancialyear.

9. Material Contracts (Recurrent Related Party Transactions)

Saveasdisclosedhereunder,therewerenomaterialcontractsenteredintobytheCompanyanditssubsidiarieswhichinvolvedDirectors’andMajorShareholders’interestsduringthefinancialyear.

Recurrent Related Party Transactions

Related Party Contracting PartyNature ofTransaction

Transacted Value for Financial Year

Ended 31.12.2012(RM)

FarimaSdnBhd(personconnectedtoTDSS)

CrestBuilderSdnBhd AwardofContract(Constructionandcompletionofbuildingwork)

9,646,878

GrandlandCorporationSdnBhd(personconnectedtoYSC&KHL)

CrestBuilderSdnBhd Officerental 18,000


3TwoSquareSdnBhd Officerental 60,000


UnitapahSdnBhd Officerental 18,000

10. Revaluation Policy

TherevaluationPolicyonlandedpropertiesoftheCompanyanditssubsidiariesisdisclosedinNote2.3.3totheFinancialStatements.

11. Variation in Results

Therewasnosignificantvariationinresults(differby10%ormore)fromanyprofitestimation/forecast/projection/unauditedresultannounced.



[32]

STATEMENT ON RISK MANAGEMENTAND INTERNAL CONTROL

THE BOARD’S RESPONSIBILITIES

In relation to internal control, pursuant to the requirements under theMalaysianCode ofCorporateGovernancefor companies listedonBursaMalaysiaSecuritiesBerhad [“BursaMalaysia”], theBoardofDirectors (“theBoard”)acknowledgestheirresponsibilityundertheBursaMalaysiaListingRequirementsto:

• Identifyprincipalrisksandensureimplementationofappropriatecontrolmeasurestomanagetherisk.

• Review theadequacyand integrityof the internalcontrolsystemandmanagement informationsystemsandsystemsforcompliancewithapplicablelaws,regulations,rules,directivesandguidelines.

Itshouldbenotedthataninternalcontrolsystemisdesignedtomanagerisksratherthaneliminatethem,andcanprovideonlyreasonablebutnotabsoluteassuranceagainstanymaterialmisstatementorloss.

TheBoardconfirmsthatthereisanongoingriskmanagementprocessestablishedtoidentify,evaluate,andmanagesignificantriskstoeffectivelymitigatetherisksthatmayimpedetheachievementofCrestBuilderGroupofCompanies(“theGroup”)businessandcorporateobjectives.TheBoardreviewstheprocessonaregularbasistoensurepropermanagementofriskandmeasuresaretakentomitigateanyweaknessesinthecontrolenvironment.

RISK MANAGEMENT FRAMEWORK

TheenterpriseriskmanagementframeworkprevalentintheGroupwassetupin2003withtheassistanceofaprofessionalfirmofconsultants.Theformalisationoftheenterpriseriskmanagementframeworkinvolveddevelopingtheriskprofilewhereprincipalbusinessrisks,whichcouldaffecttheachievementofthestrategicbusinessobjectiveoftheGroup,aresystematicallyidentified,evaluatedandmitigated.

Ariskmanagementcommitteewasformalisedin2006.ThecommitteeisdedicatedtomeetitsobligationsandfiduciaryresponsibilitiestostakeholdersoftheGroup.Itisactivelyreviewingtheframeworktoenhancetheidentification,evaluationandcommunicationoftheoverallriskprocesstoensurecriticalrisks(presentandpotential)aremanagedsystematicallyandcommunicatedtotheBoardonatimelybasis.Thecommitteealsowouldensuretheframeworkisrelevantandadaptivetochangesinthebusinessenvironmentfromtimetotime.

INTERNAL CONTROL

Instrivingtooperateasystemof internalcontrol thatwilldrive theGrouptowards itsgoals, theBoardreliesuponbalancedmonitoringandreviewingofthesystembytheManagementCommitteeandAuditCommitteerespectively.

Audit Committee

TheAuditCommitteereceivedreportsfromtheinternalandexternalauditorsonaregularbasis.TheGrouphasanout-sourcingarrangementwithanindependentprofessionalfirminrelationtoitsinternalauditfunction.Theinternalauditfunctionadoptsarisk-basedapproachwhichfocusesontheprincipalrisksaffectingthekeybusinessprocessesoftheGroup.Periodicscheduledinternalauditvisitshavebeencarriedoutinaccordancewiththeapprovedinternalauditplan.

TheinternalauditfunctionisresponsibleforundertakingregularandsystematicreviewoftheinternalcontrolstoprovidetheAuditCommitteeandtheBoardwithsufficientassurancethatthesystemsofinternalcontrolareeffectiveinaddressingtherisksidentified.Onahalfyearlybasis,internalauditorssubmitauditreportsandplanstatusforreviewandapprovalbytheAuditCommittee.Includedinthereportsarerecommendedcorrectivemeasuresonrisksidentified,ifany,forimplementationbytheManagement.

TheexternalauditorsprovideassuranceintheformoftheirannualstatutoryauditofthefinancialstatementsoftheGroup.AnyareasforimprovementidentifiedduringthecourseofstatutoryauditbytheexternalauditorsarebroughttotheattentionoftheAuditCommitteethroughAuditReviewMemorandum,orarearticulatedatAuditCommitteemeetings.

ANNUALREPORT2012

[33]

Management Committee

TheManagementCommitteeoverseestheday-to-dayoperationsandconductoftheGroup’sbusinesses.Scheduledmeetingsareheldatoperationalandmanagementlevelstoidentify,discussandresolvebusinessandoperationalissues.TheseincludescheduledmanagementmeetingsatGroupandindividualsubsidiarylevels,projectmanagersmeetingsandsitemeetings.MinutesofthesemeetingsandmanagementreportsareescalatedtotherelevantExecutiveDirectorsonatimelybasis.PeriodicmeetingsareheldaspartofanongoingprocesstoreviewandassesstheadequacyandeffectivenessoftheGroup’sriskmanagementandcontrolsandtoensurethatanyshortcomingsidentifiedareaddressedonatimelybasis.

Other Features of the Group’s System of Internal Control

OtherfeaturesoftheGroup’ssystemofinternalcontrolincludethefollowing:-:QualityPolicyandQualityObjectiveswhichclearlyoutlinedtheGroup’sdirection:Clearorganisationstructurewithdelineatedreportinglines:ClearlydefinedobjectivesandtermofreferenceofthevariousCommitteesestablishedbytheBoard.:FrequentvisitstothejobsitesbyExecutiveDirectorsandSeniorManagement:ProcessandproceduresinaccordancewiththerequirementsofMSISO9001:2008certification:StaffHandbookavailableforreference:ProjectBudgetandcontrols

TheBoardrecognisesthattheGroupoperatesinadynamicbusinessenvironmentandthattheGroup’sinternalcontrolsystemmustberesponsivetochangesinthebusinessenvironmentandcontinuouslyevolvestosupportitsbusinessobjectives.Thereviewofallcontrolprocedureswerecontinuouslycarriedoutthroughouttheperiodunderreviewtoensureaneffectiveandefficientsystemofinternalcontrol.TheBoardremainscommittedtowardscontinuousimprovementsandenhancementsofitssystemofinternalcontrolandwill,whennecessary,putinplaceactionplanstoensurethatthereisincreasedcertaintyoftheachievementofbusinessobjectives,thusenhancingshareholders’value.

ThisStatementismadeinaccordancewiththeresolutionoftheBoardofDirectorsdated22May2013.

STATEMENTONRISKMANAGEMENTANDINTERNALCONTROL(CONT’D)


[34]

CORPORATE SOCIALRESPONSIBILITY

The Board of Directors of Crest Builder Holdings Berhad acknowledges the significance of Corporate SocialResponsibilities(“CSR”).

EncouragedbythesuccessoftheCSRinitiativesinthepreviousyear,theGroupcontinuestostrengthenitscommitmentinCSRthisyear.

COMMUNITY ENGAGEMENT

TheGroupcontinuetofocusandremaincommittedthroughvariousCSRinitiatives

TheGroupstepsforwardandservesthecommunityinwhichitoperatesandstrivestomakepositivecontrbutiontothecommunityparticularlyinhelpingtheunderprivilegedandthelessfortunate.

TheGroupcontinuetolendssupportintermsoffinancialassistancetothefollowingcharitablebodiessuchasNationalKidneyFoundationofMalaysia,PusatPenjagaanKanak-KanakCacatTamanMegah,MalaysianDiabetesAssociationandBreastCancerWelfareAssociationMalaysia

ANNUALREPORT2012

[35]

CORPORATESOCIALRESPONSIBILITY(CONT’D)

TheGrouphavealsobeentakinginstudentsfromvariousuniversitiesandcollegestoundergopracticaltrainings.Inyear2012,studentsfromthefollowinginstitutionscompletedtheirrespectedtrainingswiththeGroup:-

- UniversitiTunkuAbdulRahman(1student)

- UniversitiTenagaNasional(6students)

- UniversitiTunHusseinOnnMalaysia(1student)

- UniversitiTeknologiMara(3students)

- UniversitiMalaya(3students)

- UniversitiPutraMalaysia(2students)

- SEGiUniversityCollege(1student)

- CurtinUniversity,Sarawak(1student)

- SunwayUniversity(1student)

- NottinghamUniversity(2students)

- UniversityCollegeLondon(1student)

- UniversityPertahananNasionalMalaysia(5students)

- KolejKemahiranTinggiMARA(1student)

- TunkuAbdulRahmanCollege(3students)

- PoliteknikSultanAzlanShah,Behrang(2students)

- PoliteknikUngkuOmar,Ipoh(1student)

- NationalYouthSkillTrainingInstitutKinarut,Sabah(1student)

WORKPLACE DEVELOPMENT

TheGrouprecognisestheimportanceofequippingitsmanagementandstaffwiththerightskillsandknowledgeinordertoperformtheirdutiesprofessionally.TheGroupcontinuedtoprovideemployeeswiththenecessarytraininganddevelopmentbyattendingseminar,coursesofferedbyprofessionalbodiesincludingsubjectsinConstructionTechology,ConstructionManagement,FinanceandAccounting,Management,andMarketing.

TheGroupcontinuetomaintainasafeandhealthyworkingenvironmentforallemployeesandworkersthroughvariousmeasures.TheConstructiondivisionhasrecentlyobtainedtheEnvironmental,Safety&HealthManagementSystemsMSISO14001:2004,BSOHSAS18001:2007andMS1722:Part1:2005Certifications

ENVIRONMENTAL SUSTAINABILITY

Asaconstructionplayerinthecountry,theGroup’sactivitiesareoftenbesubjectedtoadverseenvironmentalimpact.TheGroupismindfulofthedirectimpactourbusinesseshaveonenvironment.Variousenvironmentalbestpracticesandpreservationinitiativesarecontinuallybeingintroducedandcarriedoutatourprojectsites.Throughtheadoptionofinternationallyrecognizedconstructionmethodologyandpractices,theGroupcontinuestooperateinaresponsiblemannerbyoptimizingourresourcesandreducingthegenerationofwaste.


[36]

STATEMENT ONDIRECTORS’ RESPONSIBILITY

As requiredunder theCompaniesAct, 1965 (“Act”), theDirectorsofCrestBuilderHoldingsBerhadhavemadeastatementexpressinganopiniononthefinancialstatements.TheBoardisoftheopinionthatthefinancialstatementshavebeendrawnupinaccordancewithapplicableapprovedaccountingstandardsinMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyforthefinancialyearended31December2012.

Intheprocessofpreparingthesefinancialstatements,theDirectorshavereviewedtheaccountingpoliciesandpracticestoensurethattheywereconsistentlyappliedthroughouttheyear.Incaseswherejudgementandestimatesweremade,theywerebasedonreasonablenessandprudence.

Additionally,theDirectorshavereliedonthesystemofinternalcontrolstoensurethattheinformationgeneratedforthepreparationofthefinancialstatementsfromtheunderlyingaccountingrecordsisaccurateandreliable.

ThisstatementismadeinaccordancewitharesolutionoftheBoardofDirectorsdated22May2013.

FinancialStatements

• Directors’Report_38

• ConsolidatedStatementofFinancialPosition_46

• ConsolidatedStatementofComprehensiveIncome_48

• ConsolidatedStatementofChangesinEquity_49

• ConsolidatedStatementofCashFlows_50

• StatementofFinancialPosition_52

• StatementofComprehensiveIncome_53

• StatementofChangesinEquity_54

• StatementofCashFlows_55

• NotestotheFinancialStatements_57

• SupplementaryInformation_127

• StatementbyDirectors/StatutoryDeclaration_128

• IndependentAuditor’sReport_129


[38]

ThedirectorsherebysubmittheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31December2012.

PRINCIPAL ACTIVITIES

TheCompany is principally engaged as an investment holding company. Theprincipal activities of the subsidiarycompaniesareasdisclosedinNote6tothefinancialstatements.

Therehasbeennosignificantchangeinthenatureoftheseprincipalactivitiesduringthefinancialyear.

RESULTS

Group Company RM RM Netprofitforthefinancialyear 39,574,569 6,022,057Othercomprehensiveincome,netoftax – – Totalcomprehensiveincomeforthefinancialyear 39,574,569 6,022,057 Attributableto:- OwnersoftheCompany 39,929,590 6,022,057Non-controllinginterests (355,021) – 39,574,569 6,022,057 DIVIDENDS

Sincetheendofthepreviousfinancialyear,theCompanypaidafirstandfinaldividendof5senperordinarysharelessincometaxat25%amountingtoRM5,068,190/-inrespectoffinancialyearended31December2011on3August2012.AttheforthcomingAnnualGeneralMeeting,afirstandfinaldividendof5senperordinarysharelessincometaxat25%on137,285,950ordinaryshares(theoutstandingissuedandpaid-upsharecapitaloftheCompanywithvotingrightsasat31December2012,pendinganyconversionofwarrants,exerciseofemployeeshareoptionschemeandrepurchaseofsharesbytheCompanysubsequentto31December2012)ofRM1/-eachamountingtoRM5,148,223/-(3.75sennetperordinaryshare)inrespectofthecurrentfinancialyearended31December2012willbeproposedforshareholders’approval.Thefinancialstatementsforthecurrentfinancialyeardonotreflectthisproposeddividend.Suchdividend,ifapprovedbytheshareholders,willbeaccountedforintheshareholders’equityasanappropriationofretainedearningsinthefinancialyearending31December2013.

RESERVES AND PROVISIONS

Allmaterialtransferstoandfromreservesandprovisionsduringthefinancialyearhavebeendisclosedinthefinancialstatements.

DIRECTORS’REPORT

ANNUALREPORT2012

[39]

DIRECTORS’REPORT(CONT’D)

BAD AND DOUBTFUL DEBTS

BeforethestatementsofcomprehensiveincomeandstatementsoffinancialpositionoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablestepstoascertainthatactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofallowanceforimpairmentlossesonreceivables,andhadsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandadequateallowancehadbeenmadeforimpairmentlossesonreceivables.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesthatwouldrendertheamountwrittenoffforbaddebts,ortheamountoftheallowanceforimpairmentlossesonreceivables,inthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent.

CURRENT ASSETS

BeforethestatementsofcomprehensiveincomeandstatementsoffinancialpositionoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablestepstoensurethatanycurrentassets,otherthandebts,whichwereunlikelytoberealisedintheordinarycourseofbusiness,theirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountthattheymightbeexpectedtoberealised.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesthatwouldrenderthevaluesattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading.

VALUATION METHODS

Atthedateofthisreport,thedirectorsarenotawareofanycircumstanceshavearisenwhichrenderadherencetotheexistingmethodsofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

CONTINGENT AND OTHER LIABILITIES

Atthedateofthisreport,theredoesnotexist:-

(i) anychargeontheassetsoftheGroupandoftheCompanythathasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson,or

(ii) anycontingentliabilitiesinrespectoftheGroupandoftheCompanythathasarisensincetheendofthefinancialyear.

Intheopinionofthedirectors,nocontingentliabilitiesorotherliabilitiesoftheGroupandoftheCompanyhasbecomeenforceable,orislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,willormaysubstantiallyaffecttheabilityoftheGroupandoftheCompanytomeettheirobligationsasandwhentheyfalldueotherthanasdisclosedinNote36tothefinancialstatements.

CHANGE OF CIRCUMSTANCES

Atthedateofthisreport,thedirectorsarenotawareofanycircumstances,nototherwisedealtwithinthisreportorthefinancialstatementsoftheGroupandoftheCompanythatwouldrenderanyamountstatedinthefinancialstatementsmisleading.


[40]

ITEMS OF AN UNUSUAL NATURE

TheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearwerenot,intheopinionofthedirectors,substantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.

Noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.

ISSUE OF SHARES AND DEBENTURES

During the financial year, the issuedandpaid-upordinary sharecapital of theCompanyhasbeen increased fromRM124,089,450/-toRM138,010,450/-bywayoftheallotmentsasfollowing:-

a) 2,621,000newordinarysharesofRM1/-eachforcashpursuanttotheEmployees’ShareOptionScheme(“ESOS”)oftheCompanyatanexercisepriceofRM1/-pershare;and

b) 11,300,000newordinarysharesofRM1/-eachforcashpursuantfortheprivateplacementexerciseatapriceofRM1/-pershare.

ThenewsharesissuedrankparipassuinallrespectswiththethenexistingordinarysharesoftheCompany.

TheCompanydidnotissueanydebenturesduringthefinancialyear.

WARRANTS 2003/2013

On25February2003,theCompanyissuedarenounceablerightsissueof24,000,000warrantswhichentitledshareholdersatanissuepriceofRM0.30perwarrant,onthebasisof1.008Warrants2003/2013foreveryfour(4)existingsharesheldontheentitlementdate.

NoWarrants2003/2013wereconvertedduringthefinancialyear.

Asat31December2012,thetotalnumberofwarrantswhichremainunconvertedamountedto23,999,050units.

DetailsoftheWarrants2003/2013aredisclosedinNote21(a)tothefinancialstatements.

WARRANTS 2012/2015 (“WARRANTS B”)

On18October2012,theCompanyissuedabonusissueof41,331,912warrantswhichentitledshareholdersonthebasisofthree(3)WarrantsBforeveryten(10)existingsharesheldontheentitlementdate.

NoWarrantsBwereconvertedduringthefinancialyear.

Asat31December2012,thetotalnumberofWarrantsBwhichremainsunconvertedamountedto41,331,912units.

DetailsoftheWarrantsBaredisclosedinNote21(b)tothefinancialstatements.


ANNUALREPORT2012

[41]


EMPLOYEE SHARE OPTION SCHEME

On14March2007,approvalwasgrantedbytheshareholdersattheExtraordinaryMeetingheldfortheestablishmentoftheCrestBuilderHoldingsBerhadEmployeeShareOptionScheme(“CBHB–ESOS”).TheCBHB–ESOSisgovernedbytheBy-lawsapprovedbytheshareholdersattheExtraordinaryGeneralMeeting.TheCBHB–ESOSwasimplementedon19April2007andistobeinforceforaperiodoffive(5)yearsandexpiringon18April2012.

On16April2012,theCompanyannouncedtheextensionofCBHB–ESOSwhichisexpiringon18April2012foranotherfive(5)yearsuntil18April2017.TheextensionisinaccordancewiththetermsoftheESOSBy-Laws.

TheESOSCommitteeappointedbytheBoardofDirectorstoadministertheCBHB–ESOS,mayfromtimetotimegrantoptionstoeligibleemployeesoftheGrouptosubscribefornewordinarysharesofRM1/-eachintheCompany.

On19April2012,theESOSCommitteehasmadethedecisiontogrant4,827,000additionalOptionsundertheexistingCBHB–ESOS;atanexercisepriceofRM1/-each.TheOptionsgrantedcanbeexercisedatanytimebutnotlaterthan18April2017.

ThesalientfeaturesoftheESOSareasfollows:-

(a) thetotalnumberofsharestobeofferedshallnotexceedinaggregate15%oftheissuedandfullypaid-upsharecapitaloftheCompanyatanypointofofferduringthedurationoftheCBHB–ESOS;

(b) eligiblepersonsfortheCBHB–ESOSarefulltimeconfirmedemployeesoftheGroupwhohavebeenemployedforaperiodofatleastsix(6)months,anddirectorsoftheGroupwhohavebeenappointedforaperiodofatleastthree(3)monthsandtheentitlementhavebeenapprovedbytheshareholdersoftheCompanyingeneralmeeting;

(c) subjecttoparagraph(d)below,nooptionshallbegrantedforlessthan100shares;

(d) intheeventofanyalterationinthecapitalstructureoftheCompanyexceptforcertainexemptions,adjustmentswillbemadetotheoptionpriceand/orthenumberofsharesinrespectofoptionsgrantedbutnotexercised,suchthatthegranteewillbeentitledtothesameproportionoftheissuedandpaid-upsharecapitaloftheCompanypriortotheeventgivingrisetosuchalteration;

(e) thepriceatwhichthegrantee isentitledtosubscribe foreachnewordinaryshareshallbethehigherof thefollowing:-

(i) atadiscountofnotmorethan10%fromtheweightedaveragemarketpriceoftheordinarysharesforthe5marketdaysasshowninthedailyofficiallistissuedbytheBursaMalaysiaSecuritiesBerhadimmediatelyprecedingthedateofoffer;or

(ii) theparvalueoftheordinaryshares;and

(f) theoptiongrantedmaybeexercisedatanytimewithinaperiodoffive(5)yearsfrom19April2007.On16April2012,theoptionhasfurtherextendedforanotherfive(5)yearsupontheinitialexpirydate.


[42]

EMPLOYEE SHARE OPTION SCHEME (CONT’D)

InformationinrespectofthenumberofshareoptionsgrantedunderCBHB–ESOSisasfollows:- Number of share options

2012 2011

At1January 5,250,000 6,080,000Granted 4,827,000 –Exercised (2,621,000) –Lapsed (755,000) (830,000) At31December 6,701,000 5,250,000

ThemovementsofoptionsunderunissuednewordinarysharesofRM1/-eachoftheCompanygrantedunderCBHB–ESOSduringthefinancialyearareasfollows:-

Number of share optionsDate of offer Option price 1.1.2012 Granted Exercised Lapsed 31.12.2012

19.4.2007 RM1/- 3,635,000 – (1,710,000) (165,000) 1,760,00019.4.2008 RM1/- 585,000 – (475,000) (110,000) –19.4.2009 RM1/- 1,030,000 – – (75,000) 955,00019.4.2012 RM1/- – 4,827,000 (436,000) (405,000) 3,986,000TheCompanyhasbeengrantedexemptionbytheCompaniesCommissionsofMalaysiafromhavingtodisclosethenamesofoptionholderswhohavebeengrantedoptionstosubscribeforlessthan140,000ordinarysharesofRM1/-each,otherthandirectors,asrequiredbySection169(11)oftheCompaniesAct,1965inMalaysia.

Other than thedirectorswhose interestsaredisclosedseparately in theDirectors’ Interests, thenamesofoptionsholdersgrantedoptionstosubscribefor140,000ormoreordinarysharesofRM1/-eachasdisclosedinNote18tothefinancialstatements.

DIRECTORS

Thedirectorsinofficesincethedateofthelastreportare:-

TengkuDato’SulaimanShahBinTengkuAbdulJalilShahYongSoonChowKohHuaLanYongShangMingKeongChoonKeatMohdKhasanBinAhmadKamYongKanYongTiokKeng


ANNUALREPORT2012

[43]


DIRECTORS’ INTERESTS

AccordingtotheRegisterofDirectors’ShareholdingskeptbytheCompanyunderSection134oftheCompaniesAct,1965inMalaysia,theinterestsofthosedirectorswhoheldofficeattheendofthefinancialyearinshares,optionsandwarrantsoftheCompanyduringthefinancialyearended31December2012areasfollows:-

Number of ordinary shares of RM1/- each At At 1.1.2012 Bought Sold 31.12.2012 The Company Crest Builder Holdings Berhad Direct interests YongSoonChow 43,198,000 1,000,000 – 44,198,000KohHuaLan 3,945,500 500,000 – 4,445,500YongShangMing 490,000 560,000 – 1,050,000YongTiokKeng – 500,000 – 500,000KeongChoonKeat 20,000 230,000 – 250,000KamYongKan 30,000 70,000 – 100,000 Indirect interest TengkuDato’SulaimanShah BinTengkuAbdulJalilShah (a) 6,807,939 – – 6,807,939YongSoonChow (b) 12,100,808 1,560,000 (5,000,000) 8,660,808KeongChoonKeat (c) 30,000 110,000 – 140,000 Number of options over ordinary shares of RM1/- each At At 1.1.2012 Granted Exercised 31.12.2012 The Company Crest Builder Holdings Berhad TengkuDato’SulaimanShah BinTengkuAbdulJalilShah 200,000 – – 200,000YongSoonChow 1,000,000 – (1,000,000) –KohHuaLan 500,000 – (500,000) –YongShangMing 500,000 – (500,000) –YongTiokKeng 75,000 425,000 (500,000) –KeongChoonKeat 100,000 – (100,000) –MohdKhasanBinAhmad 100,000 – – 100,000KamYongKan 100,000 – – 100,000 Number of Warrants 2003/2013 At Sold/ At 1.1.2012 Bought Exercised 31.12.2012 The Company Crest Builder Holdings Berhad Direct interest YongSoonChow 7,999,916 – – 7,999,916KohHuaLan 1,400,000 – – 1,400,000 Indirect interest TengkuDato’SulaimanShah BinTengkuAbdulJalilShah (a) 3,000,000 – – 3,000,000YongSoonChow (c) 1,400,000 – – 1,400,000


[44]

DIRECTORS’ INTERESTS (CONT’D)

Number of Warrants B At Sold/ At 1.1.2012 Bought Exercised 31.12.2012 The Company Crest Builder Holdings Berhad Direct interest YongSoonChow – 13,259,400 – 13,259,400KohHuaLan – 1,333,650 – 1,333,650YongShangMing – 315,000 – 315,000YongTiokKeng – 150,000 – 150,000KeongChoonKeat – 412,500 – 412,500KamYongKan – 9,000 – 9,000 Indirect interest TengkuDato’SulaimanShah BinTengkuAbdulJalilShah (a) – 2,042,381 – 2,042,381YongSoonChow (b) – 2,598,242 – 2,598,242KeongChoonKeat (c) – 42,000 – 42,000

(a) Held by a company in which the Director has interest(b) Held by spouse and dependent(c) Held by spouse

Byvirtueofhis interest in thesharesof theCompanyandpursuant toSection6Aof theCompaniesAct,1965 inMalaysia,YongSoonChowisalsodeemedinterestedinthesharesofallthesubsidiarycompaniestotheextenttheCompanyhasaninterest.

Otherthanasdisclosedabove,theotherdirectorsinofficeattheendofthefinancialyearhadnointerestintheshares,optionsoverordinarysharesandwarrantsoftheCompanyanditsrelatedcorporationsduringthefinancialyear.

DIRECTORS’ BENEFITS

Sincetheendofthepreviousfinancialyear,nodirectorhasreceivedorbecomeentitledtoreceiveanybenefit(otherthanabenefitincludedintheaggregateamountofemolumentsreceivedordueandreceivablebydirectorsasshowninNote33tothefinancialstatements,orthefixedsalaryofafull-timeemployeeoftheCompany)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterestexceptforasdisclosedinNote37tothefinancialstatements.

Neitherduringnorattheendofthefinancialyear,didtheresubsistanyarrangementtowhichtheCompanywasaparty,wherebythedirectorsmightacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate,otherthanthosearisingfromtheshareoptionsgrantedpursuanttotheESOSandwarrants.


ANNUALREPORT2012

[45]


SIGNIFICANT EVENTS

ThesignificanteventsduringthefinancialyeararedisclosedinNote42tothefinancialstatements.

AUDITORS

Theauditors,MessrsBakerTillyMonteiroHeng,haveexpressedtheirwillingnesstocontinueinoffice.

OnbehalfoftheBoard,

TENGKU DATO’ SULAIMAN SHAH BIN TENGKU ABDUL JALIL SHAHDirector

YONG SOON CHOWDirector

KualaLumpur

Date:26April2013


[46]

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ASAT31DECEMBER2012

31.12.2012 31.12.2011 1.1.2011 Note RM RM RM (Restated) (Restated) ASSETS Non-current assets Property,plantandequipment 4 13,127,941 17,987,367 57,697,861Investmentproperties 5 166,918,152 118,479,395 107,339,377Otherinvestments 7 54,000 54,000 4,054,000Goodwill 8 33,604,364 33,604,364 33,604,364Landheldforpropertydevelopment 9 – 10,977,481 12,917,357Operatingfinancialasset 10 264,546,124 50,474,775 –Deferredtaxassets 11 229,747 464,638 –Tradereceivables 12 27,887,703 24,194,771 47,460,911 Total non-current assets 506,368,031 256,236,791 263,073,870 Current assets Propertydevelopmentcosts 13 56,993,016 38,778,384 33,328,348Inventories 14 6,792,870 2,015,000 2,015,000Tradeandotherreceivables 12 207,139,518 139,371,232 110,662,950Amountduefromcontractcustomers 15 117,779,501 176,318,965 167,262,909Taxrecoverable 1,335,401 1,385,857 2,166,630Fixeddepositsplacedwithlicensed banksandshortterminvestmentwith financialinstitution 17 19,479,918 13,121,810 2,846,173Cashandbankbalances 5,266,633 3,595,597 2,632,022 Total current assets 414,786,857 374,586,845 320,914,032 TOTAL ASSETS 921,154,888 630,823,636 583,987,902 EQUITY AND LIABILITIES

Equity attributable to owners of the Company Sharecapital 18 138,010,450 124,089,450 124,089,450Treasuryshares 19 (594,230) (181,069) (181,069)Reserves 20 178,558,713 143,622,736 116,914,730 Shareholders’funds 315,974,933 267,531,117 240,823,111Non-controllinginterests (813,353) (556,332) 452,277 Total equity 315,161,580 266,974,785 241,275,388

ANNUALREPORT2012

[47]

CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION ASAT31DECEMBER2012(CONT’D)

31.12.2012 31.12.2011 1.1.2011 Note RM RM RM (Restated) (Restated)

Non-current liabilities Termloans 22 265,069,159 154,834,188 112,785,552Hirepurchasepayables 23 492,621 2,060,873 4,107,574Deferredtaxliabilities 11 304,855 633,742 361,486Tradepayables 24 26,075,256 21,109,722 17,539,952 Total non-current liabilities 291,941,891 178,638,525 134,794,564 Current liabilities Tradeandotherpayables 24 240,933,282 116,894,872 144,991,297Amountduetocontractcustomers 15 1,592,078 5,386,935 4,152,816Hirepurchasepayables 23 1,510,895 3,271,679 4,209,370Otherbankborrowings 25 69,282,687 58,340,800 54,497,936Taxpayable 732,475 1,316,040 66,531 Total current liabilities 314,051,417 185,210,326 207,917,950 TOTAL LIABILITIES 605,993,308 363,848,851 342,712,514 TOTAL EQUITY AND LIABILITIES 921,154,888 630,823,636 583,987,902

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.


[48]

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FORTHEFINANCIALYEARENDED31DECEMBER2012

2012 2011 Note RM RM (Restated) Revenue 26 565,717,350 441,501,420Costofsales 27 (509,640,709) (395,218,182) Gross profit 56,076,641 46,283,238 Otheroperatingincome 24,669,933 22,583,088 Administrativeexpenses (14,600,315) (17,488,049) Profitfromoperations 66,146,259 51,378,277 Financecosts 28 (18,660,212) (14,027,954) Profit before taxation 29 47,486,047 37,350,323 Taxation 30 (7,911,478) (7,935,362) Profit after taxation 39,574,569 29,414,961 Other comprehensive income, net of taxation – – Total comprehensive income for the financial year 39,574,569 29,414,961 Profit after taxation attributable to:- OwnersoftheCompany 39,929,590 30,423,570 Non-controllinginterests (355,021) (1,008,609) 39,574,569 29,414,961 Total comprehensive income attributable to:- OwnersoftheCompany 39,929,590 30,423,570 Non-controllinginterests (355,021) (1,008,609) 39,574,569 29,414,961 Earnings per share (sen) 31 -basic 30.65 24.56-diluted 30.65 24.56


ANNUALREPORT2012

[49]

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FORTHEFINANCIALYEARENDED31DECEMBER2012

Attributable to Owners of the Parent Non-distributable Distributable Share Non- Share Capital option Treasury Retained controlling Total capital reserve reserve shares earnings Total Interests equity Note RM RM RM RM RM RM RM RM

At 1 January 2011 124,089,450 4,073,619 295,525 (181,069) 112,545,586 240,823,111 452,277 241,275,388 Total comprehensive income for the financial year – – – – 30,423,570 30,423,570 (1,008,609) 29,414,961 Transaction with owners:- Dividendsonordinaryshares 32 – – – – (3,715,564) (3,715,564) – (3,715,564) Totaltransactionwithowners – – – – (3,715,564) (3,715,564) – (3,715,564) At 31 December 2011 124,089,450 4,073,619 295,525 (181,069) 139,253,592 267,531,117 (556,332) 266,974,785

At 1 January 2012 124,089,450 4,073,619 295,525 (181,069) 139,253,592 267,531,117 (556,332) 266,974,785 Total comprehensive income for the financial year – – – – 39,929,590 39,929,590 (355,021) 39,574,569

Transactions with owners:- Acquisitionofsubsidiary companies 6 – – – – – – 98,000 98,000Dividendsonordinaryshares 32 – – – – (5,068,190) (5,068,190) – (5,068,190)Exerciseofemployeeshare options 18 2,621,000 346,058 (346,058) – – 2,621,000 – 2,621,000Issuanceofordinaryshares 18 11,300,000 – – – – 11,300,000 – 11,300,000OptionsgrantedunderESOS 20 – – 74,577 – – 74,577 – 74,577Sharesbuyback 19 – – – (413,161) – (413,161) – (413,161) 13,921,000 346,058 (271,481) (413,161) (5,068,190) 8,514,226 98,000 8,612,226 At 31 December 2012 138,010,450 4,419,677 24,044 (594,230) 174,114,992 315,974,933 (813,353) 315,161,580



[50]

2012 2011 Note RM RM (Restated) CASH FLOWS FROM OPERATING ACTIVITIES:- Profitbeforetaxation 47,486,047 37,350,323 Adjustmentsfor:- Allowanceforimpairmentlossonotherinvestment – 4,000,000 Changeinfairvalueofinvestmentproperties (20,020,000) – Depreciationofproperty,plantandequipment 3,814,739 4,670,771 Gainondisposalofinventories – (220,200) Gainondisposalofproperty,plantandequipment (1,318,274) (18,970,901) Interestexpense 18,660,212 14,027,954 Interestincome (377,770) (335,105) Propertydevelopmentcostwrittenoff – 274,806 Shareoptionsexpenses 20 74,577 – Short-termaccumulatingcompensatedabsences (26,750) (40,123) Operatingprofitbeforeworkingcapitalchanges 48,292,781 40,757,525 Changesinworkingcapital:- Increaseinoperatingfinancialasset (214,071,349) (50,474,775) Propertydevelopmentcosts (7,237,150) (5,724,842) Inventories (4,777,870) - Tradeandotherreceivables (73,319,964) (4,408,101) Accruedbillingsinrespectofpropertydevelopment 1,956,747 (1,034,041) Amountduefromcontractcustomers 58,539,465 (9,056,056) Tradeandotherpayables 134,954,417 (19,447,438) Progressbillingsinrespectofpropertydevelopment (5,923,722) (5,039,094) Amountduetocontractcustomers (3,794,857) 1,234,119 Cashusedinoperations (65,381,502) (53,192,703) Taxpaid (8,665,297) (6,267,727)Taxrefunded 126,713 170,265 NetOperatingCashFlows (73,920,086) (59,290,165)

CASH FLOWS FROM INVESTING ACTIVITIES:- Decreaseindevelopmentexpenditure – 1,939,876 Increaseininvestmentproperties (28,418,758) (11,140,018) Interestreceived 377,770 335,105 Proceedsfromdisposalofproperty,plantandequipment 3,098,304 56,705,594 Proceedsfromdisposalofinventories – 220,200 Purchaseofproperty,plantandequipment 4 (735,343) (1,360,970) Purchaseoftreasuryshares 20 (413,161) – NetInvestingCashFlows (26,091,188) 46,699,787

CONSOLIDATED STATEMENT OF CASH FLOWS FORTHEFINANCIALYEARENDED31DECEMBER2012

ANNUALREPORT2012

[51]

CONSOLIDATEDSTATEMENTOFCASHFLOWS FORTHEFINANCIALYEARENDED31DECEMBER2012(CONT’D)

2012 2011 Note RM RM (Restated)

CASH FLOWS FROM FINANCING ACTIVITIES:- Dividendpaid (5,068,190) (3,715,564) Interestpaid (18,660,212) (14,027,954) Fixeddepositpledged (708) (493) Loanraised 144,836,778 89,662,918 Proceedfrom:- -exerciseofemployeeshareoptions 18 2,621,000 – -issuanceofordinaryshares 18 11,300,000 – Repaymentsoftermloans (7,353,526) (46,225,724) Repaymentsofhirepurchasespayables (3,329,036) (4,318,392) Repaymentsofotherbankborrowing (4,337,412) – NetFinancingCashFlows 120,008,694 21,374,791 NETCHANGEINCASHANDCASHEQUIVALENTS 19,997,420 8,784,413 CASHANDCASHEQUIVALENTSATTHE BEGINNINGOFTHEFINANCIALYEAR (4,816,759) (13,601,172) CASHANDCASHEQUIVALENTSATTHE ENDOFTHEFINANCIALYEAR 15,180,661 (4,816,759) ANALYSIS OF CASH AND CASH EQUIVALENTS:- Shortterminvestmentwithfinancialinstitution 17 61,585 59,725Fixeddepositsplacedwithlicensedbanks 17 19,418,333 13,062,085Cashandbankbalances 5,266,633 3,595,597 24,746,551 16,717,407Bankoverdraft (9,542,534) (21,511,518)Fixeddepositspledgedwithlicensedbanks (23,356) (22,648) 15,180,661 (4,816,759)



[52]

STATEMENT OF FINANCIAL POSITION ASAT31DECEMBER2012

2012 2011 Note RM RM ASSETS Non-current assets Property,plantandequipment 4 965 2,411Investmentinsubsidiarycompanies 6 95,765,270 95,765,270Otherinvestments 7 – – Total non-current assets 95,766,235 95,767,681 Current assets Amountduefromsubsidiarycompanies 16 125,029,852 114,260,337Taxrecoverable 1,063,309 1,385,857Fixeddepositplacedwithlicensedbanks 17 2,766,000 2,766,000Cashandbankbalances 552,587 69,719 Total current assets 129,411,748 118,481,913 TOTAL ASSETS 225,177,983 214,249,594 EQUITY AND LIABILITIES Equity attributable to owners of the Company Sharecapital 18 138,010,450 124,089,450Treasuryshares 19 (594,230) (181,069)Reserves 20 25,328,456 24,300,012 Total equity 162,744,676 148,208,393 Non-current liability Termloan 22 51,562,000 60,274,000 Current liabilities Otherpayablesandaccruals 24 1,736,833 1,510,295Otherbankborrowings 25 9,134,474 4,256,906 Total current liabilities 10,871,307 5,767,201 TOTAL LIABILITIES 62,433,307 66,041,201 TOTAL EQUITY AND LIABILITIES 225,177,983 214,249,594


ANNUALREPORT2012

[53]

STATEMENT OF COMPREHENSIVE INCOME FORTHEFINANCIALYEARENDED31DECEMBER2012

2012 2011 Note RM RM Revenue 26 15,060,409 26,473,661Costofsales – – Gross profit 15,060,409 26,473,661 Administrativeexpenses (1,313,430) (4,702,731) Profitfromoperations 13,746,979 21,770,930 Financecosts 28 (5,279,114) (8,975,118) Profit before taxation 29 8,467,865 12,795,812 Taxation 30 (2,445,808) (4,299,418) Profit after taxation 6,022,057 8,496,394 Other comprehensive income, net of taxation – – Total comprehensive income for the financial year 6,022,057 8,496,394



[54]

STATEMENT OF CHANGES IN EQUITY FORTHEFINANCIALYEARENDED31DECEMBER2012

Attributable to Owners of the Parent Non-Distributable Distributable Share Share Capital option Treasury Retained Total capital reserve reserve shares earnings equity Note RM RM RM RM RM RM RM At 1 January 2011 124,089,450 4,073,619 295,525 (181,069) 15,150,038 143,427,563 Total comprehensive income for the financial year – – – – 8,496,394 8,496,394 Transaction with owners:- Dividendsonordinaryshares 32 – – – – (3,715,564) (3,715,564) Totaltransactionwithowners – – – – (3,715,564) (3,715,564) At 31 December 2011 124,089,450 4,073,619 295,525 (181,069) 19,930,868 148,208,393

At 1 January 2012 124,089,450 4,073,619 295,525 (181,069) 19,930,868 148,208,393 Total comprehensive income for the financial year – – – – 6,022,057 6,022,057 Transactions with owners:-

Dividendsonordinaryshares 32 – – – – (5,068,190) (5,068,190)Exerciseofemployeeshareoptions 18 2,621,000 346,058 (346,058) – – 2,621,000Issuanceofordinaryshares 18 11,300,000 – – – – 11,300,000OptionsgrantedunderESOS 20 – – 74,577 – – 74,577Sharesbuyback 19 – – – (413,161) – (413,161) Totaltransactionswithowners 13,921,000 346,058 (271,481) (413,161) (5,068,190) 8,514,226 At 31 December 2012 138,010,450 4,419,677 24,044 (594,230) 20,884,735 162,744,676


ANNUALREPORT2012

[55]

STATEMENT OF CASH FLOWS FORTHEFINANCIALYEARENDED31DECEMBER2012

2012 2011 Note RM RM CASH FLOWS FROM OPERATING ACTIVITIES:- Profitbeforetaxation 8,467,865 12,795,812 Adjustmentsfor:- Allowanceforimpairmentlossonotherinvestment – 4,000,000 Depreciationofproperty,plantandequipment 1,446 1,446 Dividendincome (10,000,000) (20,000,000) Interestexpense 5,279,114 8,975,118 Interestincome (5,060,409) (6,473,661) Shareoptionsexpenses 20 74,577 –

Operatingprofitbeforeworkingcapitalchanges (1,237,407) (701,285) Changesinworkingcapital:- Receivables – 157,732 Payables 226,538 (1,269,764) Cashusedinoperations (1,010,869) (1,813,317) Taxrefunded 126,740 – NetOperatingCashFlows (884,129) (1,813,317) CASH FLOWS FROM INVESTING ACTIVITIES:- Decreaseinamountduetosubsidiarycompanies – (223,000) Dividendsreceived 7,750,000 15,000,000 Interestreceived 5,060,409 6,473,661 (Increase)/decreaseinamountduefromsubsidiarycompanies (10,769,515) 38,861,683 Purchaseoftreasuryshares (413,161) – NetInvestingCashFlows 1,627,733 60,112,344 CASH FLOWS FROM FINANCING ACTIVITIES:- Dividendpaid 32 (5,068,190) (3,715,564) Interestpaid (5,279,114) (8,975,118) Repaymentsoftermloans (3,603,526) (43,250,000) Proceedfrom -exerciseofemployeeshareoptions 18 2,621,000 – -issuanceofordinaryshares 18 11,300,000 – NetFinancingCashFlows (29,830) (55,940,682)


[56]

2012 2011 Note RM RM

NETCHANGEINCASHANDCASHEQUIVALENTS 713,774 2,358,345 CASHANDCASHEQUIVALENTSATTHE BEGINNINGOFTHEFINANCIALYEAR 2,604,813 246,468 CASHANDCASHEQUIVALENTSATTHE ENDOFTHEFINANCIALYEAR 3,318,587 2,604,813

ANALYSIS OF CASH AND CASH EQUIVALENTS:- Fixeddepositsplacedwithlicensedbank 2,766,000 2,766,000Cashandbankbalances 552,587 69,719 3,318,587 2,835,719Bankoverdraft – (230,906) 3,318,587 2,604,813

STATEMENTOFCASHFLOWS FORTHEFINANCIALYEARENDED31DECEMBER2012(CONT’D)


ANNUALREPORT2012

[57]

1. GENERAL INFORMATION

TheCompanyisprincipallyengagedasaninvestmentholdingcompany.TheprincipalactivitiesofthesubsidiarycompaniesareasdisclosedinNote6tothefinancialstatements.

Therehasbeennosignificantchangeinthenatureoftheseprincipalactivitiesduringthefinancialyear.

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysiaandlistedontheMainMarketofBursaMalaysiaSecuritiesBerhad.

TheregisteredofficeoftheCompanyislocatedat14-2,Jalan4A/27A,Section2,WangsaMaju,53300KualaLumpur.

TheprincipalplaceofbusinessoftheCompanyislocatedatPenthouse,TheCrest,3TwoSquare,2,Jalan19/1,46300PetalingJaya,SelangorDarulEhsan.

ThefinancialstatementsareexpressedinRinggitMalaysia.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorsinaccordancewitharesolutionofthedirectorson26April2013.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewithFinancialReportingStandards(“FRSs”)andtherequirementsoftheCompaniesAct,1965inMalaysia.

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedunderthehistoricalcostbasis,exceptasdisclosedinthesignificantaccountingpoliciesinNote2.3tothefinancialstatements.

ThepreparationoffinancialstatementsinconformitywithFRSsrequirestheuseofcertaincriticalaccountingestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosuresofcontingentassetsandliabilitiesatthedateofthefinancialstatements,andthereportedamountsoftherevenueandexpensesduringthereportedperiod.ItalsorequiresdirectorstoexercisetheirjudgmentsintheprocessofapplyingtheGroup’sandtheCompany’saccountingpolicies.Althoughtheseestimatesandjudgmentsarebasedonthedirectors’bestknowledgeofcurrenteventsandactions,actualresultsmaydiffer.

Theareasinvolvingahigherdegreeofjudgementsorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatementsaredisclosedinNote3tothefinancialstatements.

NOTES TO THEFINANCIAL STATEMENTS


[58]

NOTESTOTHEFINANCIALSTATEMENTS(CONT’D)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

2.2 New and Revised FRSs, Amendments/Improvements to FRSs, New IC Interpretations (“IC Int”), Amendments to IC Int and New Malaysian Accounting Standards Board (“MASB”) Approved Accounting Standards, Malaysian Financial Reporting Standards (“MFRSs”)

2.2.1 Adoption of Revised FRS, Amendments/Improvements to FRSs, New IC Int and Amendments to IC Int

TheGroupandtheCompanyhadadoptedthefollowingrevisedFRS,amendments/improvementstoFRSs,newICIntandamendmentstoICIntthataremandatoryforthecurrentfinancialyear:-

RevisedFRSFRS124 RelatedPartyDisclosures

Amendments/ImprovementstoFRSsFRS1 First-timeAdoptionofFinancialReportingStandardsFRS7 FinancialInstruments:DisclosuresFRS112 IncomeTaxes

NewICIntICInt19 ExtinguishingFinancialLiabilitieswithEquityInstruments

AmendmentstoICIntICInt14 FRS119–TheLimitonaDefinedBenefitAsset,MinimumFundingRequirementsand

theirInteraction

The adoption of the above revised FRS, amendments/improvements to FRSs, new IC Int andamendmentto ICIntdonothaveanyeffectonthefinancialstatementsoftheGroupandoftheCompanyexceptforthoseasdiscussedbelow:-

Revised FRS 124 Related Party Disclosures

TherevisedFRS124simplifiesandclarifiesthedefinitionofrelatedpartyandeliminatesinconsistenciesfromthedefinition.TheRevisedFRS124expandsthedefinitionofarelatedpartyandwouldtreattwoentitiesasrelatedtoeachotherwheneveraperson(oraclosememberofthatperson’sfamily)orathirdpartyhascontrolorjointcontrolovertheentity,orhassignificantinfluenceovertheentity.Therevisedstandardalsointroducedapartialexemptionfromdisclosuresforgovernment-relatedentities.Priortothis,nodisclosureoftransactionsisrequiredinfinancialstatementsofstate-controlledentitiesoftransactionswithotherstate-controlledentities.Theadditionaldisclosuresareintendedtodrawattentiontousersthatsuchrelatedpartytransactionshaveoccurredandtogiveanindicationoftheirextent.Itrequiresdisclosureofrelatedpartytransactionsbetweengovernment-relatedentitiesonlyifthetransactionsareindividuallyorcollectivelysignificant.

Amendments to FRS 7 Financial Instruments: Disclosures

Theseamendments toFRS7 requiresdisclosures forall transferredfinancialassets thatarenotderecognisedandforanycontinuinginvolvementinatransferredasset,existingatthereportingdate,irrespectiveofwhentherelatedtransfertransactionoccurred.Theadditionaldisclosureswillhelpusersoffinancialstatementstoevaluatetheriskofexposuresrelatingtotransferoffinancialassetsandtheeffectofthoserisksonanentity’sfinancialposition.

Amendments to FRS 112 Income Taxes

Thisamendment toFRS112addressesthemeasurementapproach fordeferredtaxassetsandliabilities in respect of investment propertieswhich aremeasured at fair value. The amendmentintroducesarebuttablepresumptionthattheinvestmentpropertyisrecoveredentirelythroughsale.Insuchcases,deferredtaxassetsorliabilitiesareprovidedattaxratesapplicablewhenrecoveringthepropertyentirely throughsale. If thispresumption isrebutted,deferredtaxassetsor liabilitiesareprovidedbasedontaxratesapplicablewhenconsumingsubstantially theeconomicbenefitsembodiedinthepropertyoveraperiodoftime(forexampleviarentalincome).

ANNUALREPORT2012

[59]



2.2 New and Revised FRSs, Amendments/Improvements to FRSs, New IC Interpretations (“IC Int”), Amendments to IC Int and New Malaysian Accounting Standards Board (“MASB”) Approved Accounting Standards, Malaysian Financial Reporting Standards (“MFRSs”) (Cont’d)

2.2.1 Adoption of Revised FRS, Amendments/Improvements to FRSs, New IC Int and Amendments to IC Int (Cont’d)

New IC Int 19 Extinguishing Financial Liabilities with Equity Instruments

ThisInterpretationaddressestheaccountingbyanentitywhenthetermsofafinancialliabilityarerenegotiatedandresultintheentityissuingequityinstrumentstoacreditortoextinguishallorpartofthefinancialliability.Itdoesnotaddresstheaccountingbythecreditor.

IC Int19willstandardisepracticeamongdebtorsapplyingFRSstoadebt forequityswap.Thisinterpretationclarifiesthattheequityinstrumentsissuedshallbemeasuredattheirfairvalue.Ifthefairvaluecannotbereliablymeasured,theequityinstrumentsshallbemeasuredtoreflectthefairvalueofthefinancialliabilityextinguished.Thedifferencebetweenthecarryingamountofthefinancialliability(orpartofafinancialliability)extinguished,andtheconsiderationpaid,shallberecognisedinprofitorloss.Whenonlypartofthefinancialliabilityisextinguishedandifpartoftheconsiderationpaiddoesrelatetoamodificationofthetermsoftheremainingpartoftheliability,theentityshallallocatetheconsiderationpaidbetweenthepartoftheliabilityextinguishedandthepartoftheliabilitythatremainsoutstanding.Asubstantialmodificationofthetermsofanexistingfinancialliabilityorapartofitshallbeaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.

Amendments to IC Int 14 FRS119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

TheamendmentstoICInt14applyinthelimitedcircumstanceswhenanentityissubjecttominimumfundingrequirementandmakesanearlypaymentofcontributionstocoverthoserequirements.Theamendmentspermittheentitytotreatthebenefitofsuchearlypaymentasanasset.

2.2.2 New and Revised FRSs, Amendments/Improvements to FRSs, New IC Int and Amendments

to IC Int that are issued, not yet effective and have not been adopted early

TheGroupandtheCompanyhavenotadoptedthefollowingnewandrevisedFRSs,amendments/improvementstoFRSs,newICIntandamendmentstoICIntthathavebeenissuedasatthedateofauthorisationof these financial statementsbutarenot yeteffective for theGroupand for theCompany:-

Effective for financial periods beginning on or after

NewFRSsFRS9 FinancialInstruments 1January2015FRS10 ConsolidatedFinancialStatements 1January2013FRS11 JointArrangements 1January2013FRS12 DisclosuresofInterestsinOtherEntities 1January2013FRS13 FairValueMeasurement 1January2013 RevisedFRSsFRS119 EmployeeBenefits 1January2013FRS127 SeparateFinancialStatements 1January2013FRS128 InvestmentsinAssociatesandJointVentures 1January2013


[60]




2.2.2 New and Revised FRSs, Amendments/Improvements to FRSs, New IC Int and Amendments to IC Int that are issued, not yet effective and have not been adopted early (Cont’d)

Effective for financial periods beginning on or after

Amendments/ImprovementstoFRSsFRS1 First-timeAdoptionofFinancialReportingStandards 1January2013FRS7 FinancialInstruments:Disclosures 1January2013FRS10 ConsolidatedFinancialStatements 1January2013and 1January2014FRS11 JoinArrangements 1January2013FRS12 DisclosureofInterestsinOtherEntities 1January2013and 1January2014FRS101 PresentationofFinancialStatements 1July2012and 1January2013FRS116 Property,PlantandEquipment 1January2013FRS127 SeparateFinancialStatements 1January2014FRS132 FinancialInstruments:Presentation 1January2013and 1January2014FRS134 InterimFinancialReporting 1January2013

NewICIntICInt20 StrippingCostsintheProductionPhaseofaSurfaceMine 1January2013 AmendmentstoICIntICInt2 Members’SharesinCo-operativeEntities& 1January2013 SimilarInstruments

AbriefdiscussionontheabovesignificantnewandrevisedFRSs,amendments/improvementstoFRSs,newICIntandamendmentstoICIntaresummarisedbelow.Duetothecomplexityofthesenewstandards,thefinancialeffectsoftheiradoptionarecurrentlystillbeingassessedbytheGroupandtheCompany.

FRS 9 Financial Instruments

FRS9specifieshowanentityshouldclassifyandmeasurefinancialassetsandfinancialliabilities.

Thisstandardrequiresallfinancialassetstobeclassifiedbasedonhowanentitymanagesitsfinancialassets(itsbusinessmodel)andthecontractualcashflowcharacteristicsofthefinancialasset.Financialassetsaretobeinitiallymeasuredatfairvalue.Subsequenttoinitialrecognition,dependingonthebusinessmodelunderwhichtheseassetsareacquired,theywillbemeasuredateitherfairvalueoratamortisedcost.

Inrespectofthefinancial liabilities,therequirementsaregenerallysimilartotheformerFRS139.However,thisstandardrequiresthatforfinancialliabilitiesdesignatedasatfairvaluethroughprofitorloss,changesinfairvalueattributabletothecreditriskofthatliabilityaretobepresentedinothercomprehensiveincome,whereastheremainingamountofthechangeinfairvaluewillbepresentedintheprofitorloss.

ANNUALREPORT2012

[61]





FRS 10 Consolidated Financial Statements and FRS 127 Separate Financial Statements (Revised)

FRS10replacestheconsolidationpartoftheformerFRS127ConsolidatedandSeparateFinancialStatements.TherevisedFRS127willdealonlywithaccountingforinvestmentinsubsidiarycompanies,jointventuresandassociatesintheseparatefinancialstatementsofaninvestorandrequiretheentitytoaccountforsuchinvestmentseitheratcost,orinaccordancewithFRS9.

FRS10bringsaboutconvergencebetweenFRS127andICInt12Consolidation-SpecialPurposeEntities,whichinterpretstherequirementsofFRS10inrelationtospecialpurposeentities.FRS10introducesanewsinglecontrolmodeltoidentifyaparent-subsidiaryrelationshipbyspecifyingthat“aninvestorcontrolsaninvesteewhentheinvestorisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee”.Itprovidesguidanceonsituationswhencontrolisdifficulttoassesssuchasthoseinvolvingpotentialvotingrights,orincircumstancesinvolvingagencyrelationships,orwheretheinvestorhascontroloverspecificassetsoftheentity,orwheretheinvesteeentityisdesignedinsuchamannerwherevotingrightsarenotthedominantfactorindeterminingcontrol.

FRS 11 Joint Arrangements

FRS11supersedestheformerFRS131InterestsinJointVentures.UnderFRS11,anentityaccountsfor its interest ina jointlycontrolledentitybasedonthetypeof jointarrangement,asdeterminedbasedonanassessmentofitsrightsandobligationsarisingfromthearrangement.Therearetwotypesofjointarrangementnamelyjointventureorjointoperationasspecifiedinthisnewstandard.Ajointventurerecognisesitsinterestinthejointventureasaninvestmentandaccountforitsusingtheequitymethod.Theproportionateconsolidationmethodisdisallowedinsuchjointarrangement.Ajointoperatoraccountsfortheassets,liabilities,revenueandexpensesrelatedtoitsinterestdirectly.

FRS 12 Disclosures of Interests in Other Entities

FRS12isasingledisclosurestandardforinterestsinsubsidiarycompanies,jointventures,associatedcompaniesandunconsolidatedstructuredentities.ThedisclosurerequirementsinthisFRSareaimedatprovidingstandardisedandcomparableinformationthatenableusersoffinancialstatementstoevaluatethenatureof,andrisksassociatedwith,theentity’sinterestsinotherentities,andtheeffectsofthoseinterestsonitsfinancialposition,financialperformanceandcashflows.

FRS 13 Fair Value Measurement

FRS13defines fair valueandsetsouta framework formeasuring fair value,and thedisclosurerequirements about fair value. This standard is intended to address the inconsistencies in therequirements formeasuring fair value across different accounting standards. As defined in thisstandard,fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.


[62]





FRS 128 Investments in Associates and Joint Ventures (Revised)

ThisrevisedFRS128incorporatestherequirementsforaccountingforjointventuresintothesameaccountingstandardasthatforaccountingforinvestmentsinassociatedcompanies,astheequitymethodwasapplicableforbothinvestmentsinjointventuresandassociatedcompanies.However,therevisedFRS128exemptstheinvestorfromapplyingequityaccountingwheretheinvestmentintheassociatedcompanyorjointventureisheldindirectlyviaventurecapitalorganisationsormutualfundsandsimilarentities.Insuchcases,theentityshallmeasuretheinvestmentatfairvaluethroughprofitorloss,inaccordancewithFRS9.

Amendments to FRS 10, FRS 12 and FRS 127 Investment Entities

Theseamendmentsintroduceanexceptiontoconsolidationforinvestmententities.Investmententitiesareentitieswhosebusinesspurposeistoinvestfundssolelyforreturnsfromcapitalappreciation,investment incomeor both. The amendments require investment entities tomeasure particularsubsidiariesatfairvaluethroughprofitorlossinaccordancewithFRS139FinancialInstruments:RecognitionandMeasurement insteadof consolidating them. Inaddition, theamendmentsalsointroducenewdisclosurerequirementsrelatedtoinvestmententitiesinFRS12DisclosureofInterestsinOtherEntitiesandFRS127SeparateFinancialStatements.

2.2.3 MASB Approved Accounting Standards, MFRSs

InconjunctionwiththeplannedconvergenceofFRSswithInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoardon1January2012,theMASBhadon19November2011issueanewMASBapprovedaccountingstandards,MFRSs(“MFRSsFramework”)forapplicationintheannualperiodsbeginningonorafter1January2012.

TheMFRSsFrameworkismandatoryforadoptionbyallEntitiesOtherThanPrivateEntitiesforannualperiodsbeginningonorafter1January2012,withtheexceptionofentitiessubjecttotheapplicationofMFRS141Agricultureand/orICInt15Agreements for the Construction of Real Estate(“TransitioningEntities”).TheTransitioningEntitiesaregivenanoptiontodeferadoptionoftheMFRSsframeworktofinancialperiodsbeginningonorafter1January2014.TransitioningEntitiesalsoincludesthoseentities that consolidateor equity accountorproportionately consolidateanotherentity thathaschosentocontinuetoapplytheFRSsframeworkforannualperiodsbeginningonorafter1January2012.

Accordingly,theGroupandtheCompanywhichareTransitioningEntitieshavechosentodefertheadoptionoftheMFRSsframeworktofinancialyearbeginningon1January2014.TheGroupandtheCompanywillpreparetheirfirstMFRSsfinancialstatementsusingtheMFRSsframeworkforthefinancialyearending31December2014.

Asat31December2012,allFRSsissuedundertheexistingFRSsframeworkareequivalenttotheMFRSsissuedunderMFRSsframeworkexceptfordifferencesinrelationtothetransitionalprovisions,theadoptionofMFRS141Agriculture andICInt15Agreements for the Construction of Real Estate aswellasdifferencesineffectivedatescontainedincertainoftheexistingFRSs.Assuch,otherthanthoseasdiscussedbelow,themaineffectsarisingfromthetransitiontotheMFRSsFrameworkhasbeendiscussedinNote2.2.2.TheeffectisbasedontheGroup’sandtheCompany’sbestestimatesatthereportingdate.Thefinancialeffectmaychangeoradditionaleffectsmaybeidentified,priortothecompletionoftheGroup’sandtheCompany’sfirstMFRSsbasedfinancialstatements.

ANNUALREPORT2012

[63]




2.2.3 MASB Approved Accounting Standards, MFRSs (Cont’d)

Application of MFRS 1: First-time Adoption of Malaysian Financial Reporting Standards (“MFRS 1”)

MFRS1requirescomparativeinformationtoberestatedasiftherequirementsofMFRSseffectiveforannualperiodsbeginningonorafter1January2014havealwaysbeenapplied,exceptwhenMFRS1allowscertainelectiveexemptionsfromsuchfullretrospectiveapplicationorprohibitsretrospectiveapplicationofsomeaspectsofMFRSs.TheGroupandtheCompanyarecurrentlyassessingtheimpactofadoptionofMFRS1,includingidentificationofthedifferencesinexistingaccountingpoliciesascomparedtothenewMFRSsandtheuseofoptionalexemptionsasprovidedforinMFRS1.Asatthedateofauthorisationofissueofthefinancialstatements,accountingpolicydecisionsorelectionshavenotbeenfinalised.Thus,theimpactofadoptionofMFRS1cannotbedeterminedandestimatedreliablyuntiltheprocessiscompleted.

MFRS 141 Agriculture

MFRS141requiresabiologicalassetshallbemeasuredoninitialrecognitionandattheendofeachreportingperiodatitsfairvaluelesscoststosell,exceptwherethefairvaluecannotbemeasuredreliably.MFRS141alsorequiresagriculturalproduceharvested fromanentity’sbiologicalassetsshallbemeasuredatitsfairvaluelesscoststosellatthepointofharvest.Gainsorlossesarisingoninitialrecognitionofabiologicalassetandtheagriculturalproduceatfairvaluelesscoststosellandfromachangeinfairvaluelesscoststosellofabiologicalassetshallbeincludedintheprofitorlossfortheperiodinwhichitarises.TheGroupdoesnotexpectanyimpactonthefinancialstatementsarisingfromtheadoptionofthisstandard.

IC Int 15 Agreements for the Construction of Real Estate

ICInt15establishesthatthedeveloperwillhavetoevaluatewhethercontrolandsignificantrisksandrewardsoftheownershipofworkinprogress,canbetransferredtothebuyerasconstructionprogressesbeforerevenuecanberecognised.TheGroupdoesnotexpectanyimpactonthefinancialstatementsarisingfromtheadoptionofthisstandard.

2.3 Significant Accounting Policies

Thefollowingaccountingpolicieshavebeenusedconsistentlyindealingwithitemswhichareconsideredmaterialinrelationtothefinancialstatements:-

2.3.1 Basis of Consolidation

(i) Subsidiary Companies

AsubsidiarycompanyisanentityoverwhichtheGrouphastheabilitytocontrolthefinancialandoperatingpoliciessoastoobtainbenefitsfromitsactivities.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

InvestmentsinsubsidiarycompaniesarestatedatcostinthestatementoffinancialpositionoftheCompany,andarereviewedforimpairmentattheendofthereportingperiodifeventsorchangesincircumstancesindicatethatthecarryingvaluesmaynotberecoverable.

Onthedisposaloftheinvestmentsinsubsidiarycompanies,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheinvestmentsisrecognisedinprofitorloss.


[64]



2.3 Significant Accounting Policies (Cont’d)

2.3.1 Basis of Consolidation (Cont’d)

(ii) Business Combination

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyanditssubsidiarycompaniesasattheendofthereportingperiod.Thefinancialstatementsofthesubsidiarycompaniesused in thepreparationof theconsolidatedfinancial statementsarepreparedforthesamereportingperiodastheCompany.Consistentaccountingpoliciesareappliedtoliketransactionsandeventsinsimilarcircumstances.

Allintra-groupbalances,transactions,unrealisedgainsandlossesresultingfromintra-grouptransactionsareeliminatedinfullonconsolidationandtheconsolidatedfinancialstatementsreflectexternaltransactionsonly.

Acquisitionsofsubsidiarycompaniesareaccountedforbyapplyingthepurchasemethod.Identifiable assets acquired and liabilities and contingent liabilities assumed in a businesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate.Adjustmentstothosefairvaluesrelatingtopreviouslyheldinterestsaretreatedasarevaluationandrecognisedintheothercomprehensiveincome.Thecostofabusinesscombinationismeasuredastheaggregateofthefairvalues,andequityinstrumentsissued,plusanycostdirectlyattributabletothebusinesscombination.

AnyexcessofthecostofbusinesscombinationovertheGroup’sshareinthenetfairvalueoftheacquiredsubsidiarycompany’sidentifiableassets,liabilitiesandcontingentliabilitiesisrecordedasgoodwillonthestatementoffinancialposition.TheaccountingpolicyforgoodwillissetoutinNote2.3.6.AnyexcessoftheGroup’sshareinthenetfairvalueoftheacquiredsubsidiarycompany’s identifiableassets, liabilitiesandcontingent liabilitiesoverthecostofbusinesscombinationisrecognisedasincomeinprofitorlossonthedateofacquisition.WhentheGroupacquiresabusiness,embeddedderivativesseparatedfromthehostcontractbytheacquirearereassessedonacquisitiondateunlessthebusinesscombinationresultsinachangeinthetermsofthecontractthatsignificantlymodifiesthecashflowsthatwouldotherwiseberequiredunderthecontract.

Anycontingentconsiderationpayableisrecognisedatfairvalueattheacquisitiondate.Ifthecontingentconsiderationisclassifiedasequity,itisnotremeasuredandsettlementisaccountedforwithinequity.Otherwise,subsequentchangestothefairvalueofthecontingentconsiderationarerecognisedinprofitorloss.

Transactioncostsforacquisitionbetween1January2006and1January2011,otherthanthoseassociatedwiththeissueofdebtorequitysecurities,thattheGroupincurredinconnectionwithbusinesscombinationswerecapitalisedaspartofthecostoftheacquisition.

Transactioncostsforacquisitiononorafter1January2011willnolongerbecapitalisedaspartofthecostofacquisitionbutwillbeexpensedimmediately.

Subsidiarycompaniesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatesuchcontrolceases.

Uponthe lossofcontrolofasubsidiarycompany,theGroupderecognisestheassetsandliabilitiesofthesubsidiarycompany,anynon-controllinginterestsandtheothercomponentsofequityrelatedtothesubsidiarycompany.Anysurplusordeficitarisingonthelossofcontrolisrecognisedinprofitorloss.IftheGroupretainsanyinterestintheprevioussubsidiarycompany,thensuchinterestismeasuredatfairvalueatthedatethatcontrol is lost.Subsequently, itisaccountedforasanequity-accountedinvesteeorasanavailable-for-salefinancialassetdependingonthelevelofinfluenceretained.

ANNUALREPORT2012

[65]




2.3.1 Basis of Consolidation (Cont’d)

(iii) Non-controlling Interests

Non-controllinginterestsattheendofthereportingperiod,beingtheequityinasubsidiarycompany not attributable directly or indirectly to the equity holders of theCompany, arepresentedintheconsolidatedstatementoffinancialpositionandconsolidatedstatementofchangesinequitywithinequity,separatelyfromequityattributabletotheownersoftheCompany.Non-controllinginterestsintheresultsoftheGroupispresentedintheconsolidatedstatementofcomprehensiveincomeasanallocationoftheprofitorlossandthecomprehensiveincomeforthefinancialyearbetweennon-controllinginterestsandownersoftheCompany.

Lossesapplicabletothenon-controllinginterestsinasubsidiarycompanyareallocatedtothenon-controllinginterestsevenifdoingsocausesthenon-controllingintereststohaveadeficitbalance.

2.3.2 Property, Plant and Equipment and Depreciation

Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenthecostisincurredanditisprobablethatthefutureeconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Thecarryingamountofpartsthatarereplacedisderecognised.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedinprofitorlossasincurred.CostalsocomprisestheinitialestimateofdismantlingandremovingtheassetandrestoringthesiteonwhichitislocatedforwhichtheGroupisobligatedtoincurwhentheassetisacquired,ifapplicable.

Subsequenttorecognition,property,plantandequipment,exceptforfreeholdland,arestatedatcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.Freeholdlandisstatedatcostlessimpairmentlosses.

Freeholdlandhasanunlimitedusefullifeandthereforeisnotdepreciated.

Building-in-progressisstatedatcostunlessintheopinionoftheDirectorsthereisapermanentdiminution invalue. Inwhichcase,provisionwillbemade.Depreciationonbuilding-in-progresscommenceswhentheassetisreadyforitsintendeduse.

Depreciationiscalculatedunderthestraight-linemethodtowriteoffthedepreciableamountoftheassetsovertheirestimatedusefullives.Thedepreciableamountisdeterminedafterdeductingtheresidualvalue.Depreciationofanassetdoesnotceasewhentheassetbecomesidleorisretiredfromactiveuseunlesstheassetisfullydepreciated.Theprincipalannualratesusedforthispurposeare:-

Buildings 2%Equipment,furnitureandfittings 10–20%Lightequipment 20%Motorvehicles 20%Plantandmachinery 20%


[66]




2.3.2 Property, Plant and Equipment and Depreciation (Cont’d)

Theresidualvalues,usefullifeanddepreciationmethodarereviewed,andadjustedifappropriate,attheendofeachreportingperiodtoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.

Fullydepreciatedproperty,plantandequipmentareretainedinthefinancialstatementsuntiltheyarenolongerinuseandnofurtherchargefordepreciationismadeinrespectoftheseproperty,plantandequipment.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefits are expected from its use.Anygain or loss arising fromderecognition of the asset isrecognisedinprofitorloss.

2.3.3 Investment Properties

Investment properties are propertieswhich are held either to earn rental incomeor for capitalappreciationorforboth.Suchpropertiesaremeasuredinitiallyatcost,includingtransactioncosts.Subsequenttoinitialrecognition,investmentpropertiesarestatedatfairvalue.Fairvalueisarrivedatbyreferencetomarketevidenceoftransactionpricesforsimilarpropertiesandisperformedbyregisteredindependentvaluershavinganappropriaterecognisedprofessionalqualificationandrecentexperienceinthelocationandcategoryofthepropertiesbeingvalued.Alternatively,thefairvalueoftheinvestmentpropertiesareperformedbyusingdiscountedcashflowprojectionsbasedonreliableestimatesoffuturecashflows,supportedbythetermsofanyexistingleaseandothercontractsand(whenpossible)byexternalevidencesuchascurrentmarketrentsforsimilarpropertiesinthesamelocationandcondition,andusingdiscountratesthatreflectcurrentmarketassessmentsoftheuncertaintyintheamountandtimingofthecashflows.

Gainsorlossesarisingfromchangesinfairvalueofinvestmentpropertiesarerecognisedinprofitorlossinthefinancialyearinwhichtheyarise.

Apropertyinterestunderanoperatingleaseisclassifiedandaccountedforasaninvestmentpropertyonaproperty-by-propertybasiswhentheGroupholdsittoearnrentalsorforcapitalappreciationorboth.Anysuchpropertyinterestunderanoperatingleaseclassifiedasaninvestmentpropertyiscarriedatfairvalue.

Investmentpropertiesunderconstruction(“IPUC”)aremeasuredatfairvaluewhenfairvaluecanbereliablydetermined.However,thefairvalueisnotreliablydeterminable,IPUCaremeasuredatcostlessimpairment,ifany.

Investment properties are derecognisedwhen either they havebeendisposedof orwhen the

investment properties are permanentlywithdrawn fromuse and no future economic benefit isexpectedfromtheirdisposal.Anygainsorlossesontheretirementordisposalofaninvestmentpropertyarerecognisedinprofitorlossinthefinancialyearinwhichtheyarise.

Transfersaremadetoorfrominvestmentpropertyonlywhenthereisachangeinuse.Foratransferfrominvestmentpropertytoowner-occupiedproperty,thedeemedcostforsubsequentaccountingisthefairvalueatthedateofchangeinuse.Foratransferfromowner-occupiedpropertytoinvestmentproperty,thepropertyisaccountedforinaccordancewiththeaccountingpolicyforproperty,plantandequipmentsetoutinNote2.3.2uptothedateofchangeinuse.

ANNUALREPORT2012

[67]




2.3.4 Leases

(i) As lessee

Financelease,whichtransfertotheGroupsubstantiallyalltherisksandrewardsincidentaltoownershipoftheleaseditem,arecapitalisedattheinceptionoftheleaseatthefairvalueoftheassetor,iflower,atthepresentvalueoftheminimumleasedpayments.Anyincidentaldirectcostsarealsoaddedtotheamountcapitalised.Leasepaymentsareapportionedbetweenthefinancechargesandreductionoftheleaseliabilitysoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.Financechargesarechargedtoprofitorloss.Contingentrents,arechargedasexpensesintheperiodsinwhichtheyareincurred.

Leasedrentalsaredepreciatedovertheestimatedusefullifeoftheasset.However,ifthereisnoreasonablecertaintythattheGroupwillobtainownershipbytheendoftheleaseterm,theassetisdepreciatedovertheshorteroftheestimatedusefullifeortheleasedterm.

Operatingleasepaymentsarerecognisedasanexpenseinprofitorlossonastraight-linebasisovertheleaseterm.Theaggregatebenefitofincentivesprovidedbythelessorisrecognisedasareductionofrentalexpenseovertheleasetermonastraight-linebasis.

(ii) As lessor

LeaseswheretheGroupretainsalltherisksandrewardsofownershipoftheassetareclassifiedasoperatingleases.Initialdirectcostsincurredinnegotiatingandoperatingleaseareaddedtothecarryingamountoftheleasedassetsandrecognisedovertheleasedtermonthesamebasisasrentalincome.

2.3.5 Other Investment

Otherinvestmentsarestatedatcostlessimpairmentlosses,ifany.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote2.3.15.

Ondisposalofaninvestment,thedifferencesbetweennetdisposalproceedsanditscarryingamountisrecognisedintheprofitorloss.

2.3.6 Goodwill

Goodwillisinitiallymeasuredatcost.Followinginitialrecognition,goodwillismeasuredatcostlessaccumulatedimpairmentlosses,ifany.

Forthepurposeofimpairmenttesting,goodwillacquiredisallocated,fromtheacquisitiondate,toeachoftheGroup’scash-generatingunitsthatareexpectedtobenefitfromthesynergiesofthecombination.

Thecash-generatingunittowhichgoodwillhasbeenallocatedistestedforimpairmentannuallyandwheneverthereisanindicationthatthecash-generatingunitmaybeimpaired,bycomparingthecarryingamountofthecash-generatingunit,includingtheallocatedgoodwill,withtherecoverableamountofthecash-generatingunit.Wheretherecoverableamountofthecash-generatingunitislessthanthecarryingamount,animpairmentlossisrecognisedintheprofitorloss.Impairmentlossesrecognisedforgoodwillarenotreversedinsubsequentperiods.

Wheregoodwill formspartofacash-generatingunitandpartoftheoperationwithinthatcash-generatingunitisdisposedof,thegoodwillassociatedwiththeoperationdisposedofisincludedinthecarryingamountoftheoperationwhendeterminingthegainorlossondisposaloftheoperation.Goodwill disposedof in this circumstance ismeasuredbasedon the relative fair valuesof theoperationsdisposedofandtheportionofthecash-generatingunitretained.


[68]




2.3.7 Impairment of Non-financial Assets

TheGroup and theCompany assess at the endof each reportingperiodwhether there is anindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,orwhenanannualimpairmentassessmentforanassetisrequired,theasset’srecoverableamountisestimatedtodeterminetheamountofimpairmentloss.

Forgoodwillthathasanindefiniteusefullife,therecoverableamountisestimatedattheendofeachreportingperiodormorefrequentlywhenindicatorsofimpairmentareidentified.

Forthepurposeofimpairmenttestingoftheseassets,recoverableamountisdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,recoverableamountisdeterminedforthecash-generatingunit(“CGU”)towhichtheassetbelongsto.Goodwillacquiredinabusinesscombinationis,fromthedateofacquisition,allocatedtoeachoftheGroup’sCGUs,orgroupofCGUs,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupsofunits.

Therecoverableamountofanassetisthehigherofanasset’sorCGU’sfairvaluelesscoststosellanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount, theasset isconsidered impairedand iswrittendownto itsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Animpairmentlossisrecognisedinprofitorlossintheperiodinwhichitarises,unlesstheassetsarepreviouslyrevaluedwheretherevaluationwastakentoothercomprehensiveincome.Inthiscase,theimpairmentisalsorecognisedinothercomprehensiveincomeuptotheamountofanypreviousrevaluation.

Impairmentlossongoodwillisnotreversedinasubsequentperiod.Animpairmentlossofanassetotherthangoodwill isreversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentwasrecognised.Thecarryingamount of an asset other than goodwill is increased to its revised recoverable amount to theextentofthecarryingamountoftheassetthatwouldhavebeendetermined(netofamortisationanddepreciation)hadnoimpairmentlossbeenrecognisedforassetinprioryears.Thereversalisrecognisedinprofitorloss,unlesstheassetiscarriedatrevaluedamount.Areversalofanimpairmentlossonarevaluedassetistreatedasarevaluationincrease.

2.3.8 Land Held for Property Development

Landheldforpropertydevelopmentconsistsoflandwherenodevelopmentactivitieshavebeencarriedoutorwheredevelopmentactivitiesarenotexpectedtobecompletedwithinthenormaloperating cycle. Such land is classifiedwithin non-current assets and is stated at cost lessany accumulated impairment losses.Cost includes cost of land and attributable developmentexpenditures.

Costsassociatedwiththeacquisitionoflandincludethepurchasepriceoftheland,professionalfees,stampduties,commissions,conversionfeesandotherrelevantlevies.Pre-acquisitioncostsarechargedtotheprofitorlossasincurredunlesssuchcostsaredirectlyidentifiabletotheconsequentpropertydevelopmentactivity.

Landheldforpropertydevelopmentisreclassifiedtopropertydevelopmentcost(currentasset)atthepointwhendevelopmentactivitieshavecommencedandwhereitcanbedemonstratedthatthedevelopmentactivitiescanbecompletedwithinthenormaloperatingcycle.

ANNUALREPORT2012

[69]




2.3.9 Operating Financial Asset

TheGroupconstructsorupgradeinfrastructure(constructionorupgradeservices)usedtoprovideapublicserviceandoperatesandmaintainsthatinfrastructure(operationservices)foraspecifiedperiodof time.Thesearrangementsmay include infrastructureused inpublic-to-privateserviceconcessionarrangementforitsentireconcessionperiod.

ThefinancialassetmodelisusedwhentheGrouphasanunconditionalcontractualrighttoreceivecashoranotherfinancialassetfromoratthedirectionofthegrantorfortheconstructionservices.

Inthefinancialassetmodel,theamountduefromthegrantormeetsthedefinitionofareceivablewhichismeasuredatfairvalue.Itissubsequentlymeasuredatamortisedcost.Theamountinitiallyrecognisedplustheinterestincomeonthatamountiscalculatedusingtheeffectiveinterestmethod.

Anyassetcarriedunderconcessionarrangementisderecognisedondisposalorwhennofutureeconomicbenefitsareexpectedfromitsfutureuseordisposalorwhenthecontractualrightstothefinancialassetexpire.

2.3.10 Property Development Costs

Propertydevelopmentcostscompriseallcoststhataredirectlyattributabletodevelopmentactivitiesorthatcanbeallocatedonareasonablebasistosuchactivities.

Whenthefinancialoutcomeofadevelopmentactivitycanbereliablyestimated,propertydevelopmentrevenueandexpensesarerecognisedintheprofitorlossbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatpropertydevelopmentcostsincurredforworkperformedtodatebeartotheestimatedtotalpropertydevelopmentcosts.

When the financial outcomeof a development activity cannot be reliably estimated, propertydevelopmentrevenueisrecognisedonlytotheextentofpropertydevelopmentcostsincurredthatisprobablewillberecoverable,andpropertydevelopmentcostsonpropertiessoldarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

Anyexpectedlossonadevelopmentproject,includingcoststobeincurredoverthedefectsliabilityperiod,isrecognisedasanexpenseimmediately.

Propertydevelopmentcostsnotrecognisedasanexpensearerecognisedasanasset,whichismeasuredatthelowerofcostandnetrealisablevalue.

Theexcessofrevenuerecognisedintheprofitorlossoverbillingstopurchasersisclassifiedasaccruedbillingsinrespectofpropertydevelopmentcostsandtheexcessofbillingstopurchasersoverrevenuerecognisedintheprofitorlossisclassifiedasprogressbillingsinrespectofpropertydevelopmentcosts.

2.3.11 Construction Contracts

Where theoutcomeofaconstructioncontractcanbe reliablyestimated,contract revenueandcontractcostsarerecognisedasrevenueandexpensesrespectivelybyusingthestageofcompletionmethod.Thestageofcompletion ismeasuredby reference to theproportionofcontractcostsincurredforworkperformedtodatetotheestimatedtotalcontractcosts.

Wheretheoutcomeofaconstructioncontractcannotbeestimatedreliably,contractrevenueisrecognisedtotheextentofcontractcostsincurredthatisprobablewillberecoverable.Contractcostsarerecognisedasexpensesintheperiodinwhichtheyareincurred.


[70]




2.3.11 Construction Contracts (Cont’d)

Whenitisprobablethattotalcontractcostswillexceedtotalcontractrevenue,theexpectedlossisrecognisedasanexpenseimmediately.

Contractrevenuecomprisestheinitialamountofrevenueagreedinthecontractandvariationsincontractwork,claimsandincentivepaymentstotheextentthatitisprobablethattheywillresultinrevenueandtheyarecapableofbeingreliablymeasured.

Whenthetotalofcostsincurredonconstructioncontractsplusrecognisedprofits(lessrecognisedlosses)exceedsprogressbillings,thebalanceisclassifiedasamountduefromcontractcustomers.Whenprogressbillingsexceedcostsincurredplusrecognisedprofits(lessrecognisedlosses),thebalanceisclassifiedasamountduetocontractcustomers.

2.3.12 Inventories

Inventoriescomprisingpropertiesheldforsalearevaluedatthelowerofcostandnetrealisablevalue.

Costofunsoldcompletedpropertiescomprisescostsassociatedwiththeacquisitionofland,directconstructioncostsandappropriateproportionsofcommoncost.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.

2.3.13 Financial Assets

Financialassetsarerecognisedinthestatementsoffinancialpositionwhen,andonlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstrument.

Financialassetsareinitiallyrecognisedatfairvalueplustransactioncostsexceptforfinancialassetsatfairvaluethroughprofitorloss,whicharerecognisedatfairvalue.Transactioncostsforfinancialassetsatfairvaluethroughprofitorlossarerecognisedimmediatelyinprofitorloss.

TheGroupandtheCompanydeterminetheclassificationoftheirfinancialassetsatinitialrecognition,andthecategoriesincludefinancialassetsatfairvaluethroughprofitorloss,loansandreceivables,held-to-maturityinvestmentsandavailable-for-salefinancialassets.

(i) Financial assets at fair value through profit or loss

Financialassetsareclassifiedasfinancialassetsatfairvaluethroughprofitorlossiftheyareheldfortradingoraredesignatedassuchuponinitialrecognition.Financialassetsheldfortradingarederivatives(includingseparatedembeddedderivatives)orfinancialassetsacquiredprincipallyforthepurposeofsellinginthenearterm.

Subsequenttoinitialrecognition,financialassetsatfairvaluethroughprofitorlossaremeasuredat fairvalue.Anygainsor lossesarising fromchanges in fairvaluearerecognised inprofitorloss.Netgainsornetlossesonfinancialassetsatfairvaluethroughprofitorlossdonotincludeexchangedifferences,interestanddividendincomeonthefinancialassetsatfairvaluethroughprofitorlossarerecognisedseparatelyintheprofitorlossaspartofotherlossesorotherincome.

Financialassetatfairvaluethroughprofitorlosscouldbepresentedascurrentornon-current.Financialassetsthatareheldprimarilyfortradingpurposesarepresentedascurrentornon-currentbasedonthesettlementdate.

Asattheendofthereportingperiod,therewerenofinancialassetsclassifiedunderthiscategory.

ANNUALREPORT2012

[71]




2.3.13 Financial Assets (Cont’d)

(ii) Loans and receivables

Financialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedasloansandreceivables.

Subsequenttoinitialrecognition,loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.Gainsandlossesarerecognisedinprofitorlosswhentheloansandreceivablesarederecognisedorimpaired,andthroughtheamortisationprocess.

Loansandreceivablesareclassifiedascurrentassets,exceptforthosehavingmaturitydateslaterthan12monthsafterthereportingperiodwhichareclassifiedasnon-current.

(iii) Held-to-maturity investment

Financialassetswithfixedordeterminablepaymentsandfixedmaturityareclassifiedasheld-to-maturitywhentheGrouphasthepositive intentionandability toholdthe investmenttomaturity.

Subsequenttoinitialrecognition,held-to-maturityinvestmentsaremeasuredatamortisedcostusingtheeffective interestmethod.Gainsandlossesarerecognised inprofitor losswhentheheld-to-maturityinvestmentsarederecognisedorimpaired,andthroughtheamortisationprocess.

Held-to-maturity investmentsareclassifiedasnon-currentassets,except for thosehavingmaturitywithin12monthsaftertheendofthereportingperiodwhichareclassifiedascurrent.

Asattheendofthereportingperiod,therewerenofinancialassetsclassifiedunderthiscategory.(iv) Available-for-sale financial assets

Available-for-salearefinancialassetsthataredesignatedasavailableforsaleorarenotclassifiedinanyofthethreeprecedingcategories.

Afterinitialrecognition,available-for-salefinancialassetsaremeasuredatfairvalue.Anygainsorlossesfromchangesinfairvalueofthefinancialassetarerecognisedinothercomprehensiveincome, except that impairment losses, foreign exchange gains and losses onmonetaryinstrumentsandinterestcalculatedusingtheeffectiveinterestmethodarerecognisedinprofitorloss.Thecumulativegainorlosspreviouslyrecognisedinothercomprehensiveincomeisreclassifiedfromequitytoprofitorlossasareclassificationadjustmentwhenthefinancialassetsarederecognised.Interestincomecalculatedusingeffectiveinterestmethodisrecognisedinprofitorloss.Dividendsonanavailable-for-saleequityinstrumentsarerecognisedinprofitorlosswhentheGroup’sandtheCompany’srighttoreceivepaymentisestablished.

Investmentinequityinstrumentswhosefairvaluecannotbereliablymeasuredaremeasuredatcostlessimpairmentloss.

Available-for-salefinancialassetsareclassifiedasnon-currentassetsunlesstheyareexpectedtoberealisedwithin12monthsafterthereportingperiod.

Afinancialassetisderecognisedwherethecontractualrighttoreceivecashflowsfromtheassethasexpired.Onderecognitionofafinancialassetinitsentirety,thedifferencebetweenthecarryingamountandthesumoftheconsiderationreceivedandanycumulativegainorlossthathadbeenrecognisedinothercomprehensiveincomeisrecognisedinprofitorloss.


[72]




2.3.13 Financial Assets (Cont’d)

Regularwaypurchasesor salesarepurchasesor salesof financial assets that requiredeliveryofassetswithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplaceconcerned.Allregularwaypurchasesandsalesoffinancialassetsarerecognisedorderecognisedonthetradedatei.e.,thedatethattheGroupandtheCompanycommittopurchaseorselltheasset.

2.3.14 Cash and Cash Equivalents

Cashandcashequivalentscomprisebankbalances,cashonhand,demanddeposits(otherthandepositspledgedwithfinancialinstitutions),bankoverdraftsandshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.ThesealsoincludebankoverdraftswhicharerepayableondemandthatformsasintegralpartoftheGroup’scashmanagement.

Forthepurposeofthestatementsofcashflows,cashandcashequivalentsarepresentednetofbankoverdraftsandexcludedepositspledgedtosecurebankingfacilities.

2.3.15 Impairment of Financial Assets

TheGroupand theCompanyassessat theendofeach reportingperiodwhether there isanyobjectiveevidencethatafinancialassetisimpaired.

(i) Trade and other receivables and other financial assets carried at amortised cost

Todeterminewhetherthereisobjectiveevidencethatanimpairmentlossonfinancialassetshasbeenincurred,theGroupandtheCompanyconsiderfactorssuchastheprobabilityofinsolvencyorsignificantfinancialdifficultiesof thedebtoranddefaultorsignificantdelay inpayments.Forcertaincategoriesoffinancialassets,suchastradereceivables,assetsthatareassessednot tobe impaired individuallyaresubsequentlyassessed for impairmentonacollectivebasisbasedonsimilarriskcharacteristics.Objectiveevidenceofimpairmentforaportfolioofreceivablescould includetheGroup’sandtheCompany’spastexperienceofcollectingpayments,anincreaseinthenumberofdelayedpaymentsinthepastportfolio,theaveragecreditperiodandobservablechangesinnationalorlocaloreconomicconditionsthatcorrelatewithdefaultonreceivables.

Ifanysuchevidenceexists,theamountofimpairmentlossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset’soriginaleffectiveinterestrate.Theimpairmentlossisrecognisedinprofitorloss.

Thecarryingamountofthefinancialassetisreducedbytheimpairmentlossdirectlyforallfinancialassetswiththeexceptionoftradeandotherreceivables,wherethecarryingamountisreducedthroughtheuseofanallowanceaccount.Whenatradeorotherreceivablebecomesuncollectible,itiswrittenoffagainsttheallowanceaccount.

Ifinasubsequentperiod,theamountoftheimpairmentlossdecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairment loss isreversedtotheextentthatthecarryingamountoftheassetdoesnotexceeditsamortisedcostatthereversaldate.Theamountofreversalisrecognisedinprofitorloss.

ANNUALREPORT2012

[73]




2.3.15 Impairment of Financial Assets (Cont’d)

(ii) Unquoted equity securities carried at cost

Ifthereisobjectiveevidence(suchassignificantadversechangesinthebusinessenvironmentwheretheissueroperates,probabilityofinsolvencyorsignificantfinancialdifficultiesoftheissuer)thatanimpairmentlossonfinancialassetscarriedatcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthecurrentmarketrateofreturnforasimilarfinancialasset.Suchimpairmentlossesarenotreversedinsubsequentperiods.

(iii) Available-for-sale financial assets

Significantorprolongeddeclineinfairvaluebelowcost,significantfinancialdifficultiesoftheissuerorobligor,and thedisappearanceofanactive tradingmarketareconsiderations todeterminewhetherthereisobjectiveevidencethatinvestmentsecuritiesclassifiedasavailable-for-salefinancialassetsareimpaired.

Ifanavailable-for-salefinancialassetisimpaired,anamountcomprisingthedifferencebetweenitscost (netofanyprincipalpaymentandamortisation)and itscurrent fair value, lessanyimpairmentlosspreviouslyrecognisedinprofitorloss,istransferredfromequitytoprofitorloss.

Impairmentlossesonavailable-for-saleequityinstrumentsarenotreversedinprofitorlossinthesubsequentperiods.Increaseinfairvalue,ifany,subsequenttoimpairmentlossisrecognisedinothercomprehensiveincome.Foravailable-for-saledebtinvestments,impairmentlossesaresubsequentlyreversedinprofitorlossifanincreaseinthefairvalueoftheinvestmentcanbeobjectivelyrelatedtoaneventoccurringaftertherecognitionoftheimpairmentlossinprofitorloss.

2.3.16 Financial Liabilities

Financialliabilitiesareclassifiedaccordingtothesubstanceofthecontractualarrangementsenteredintoandthedefinitionofafinancialliability.

Financialliabilities,withinthescopeofFRS139,arerecognisedinthestatementoffinancialpositionwhen,andonlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstrument.Financialliabilitiesareclassifiedaseitherfinancialliabilitiesatfairvaluethroughprofitorlossorotherfinancialliabilities.

(i) Financial liabilities at fair value through profit or loss

Financialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesheldfortradingandfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.

FinancialliabilitiesheldfortradingincludederivativesenteredintobytheGroupandtheCompanythatdonotmeetthehedgeaccountingcriteria.Derivativeliabilitiesareinitiallymeasuredatfairvalueandsubsequentlystatedatfairvalue,withanyresultantgainsorlossesrecognisedinprofitorloss.Netgainsorlossesonderivativesincludeexchangedifferences.

Asat theendof thereportingperiod, therewerenofinancial liabilitiesclassifiedunderthiscategory.


[74]




2.3.16 Financial Liabilities (Cont’d)

(ii) Other financial liabilities

TheGroup’sandtheCompany’sotherfinancialliabilitiesincludetradeandotherpayablesandloansandborrowings.

Tradeandotherpayablesarerecognisedinitiallyatfairvalueplusdirectlyattributabletransactioncostsandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.LoansandborrowingsareclassifiedascurrentliabilitiesunlesstheCompanyhasanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingperiod.

Forotherfinancialliabilities,gainsandlossesarerecognisedinprofitorlosswhentheliabilitiesarederecognised,andthroughtheamortisationprocess.

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisextinguished.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandrecognitionofanewliability,andthedifferenceintherespectivecarryingamountsisrecognisedinprofitorloss.

2.3.17 Financial Guarantee Contracts

Afinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseofaspecifieddebtorfailstomakepaymentwhendue.

Financialguaranteecontractsarerecognised initiallyasa liabilityat fairvalue,netof transactioncosts.Subsequenttoinitialrecognition,financialguaranteecontractsarerecognisedasincomeinprofitorlossovertheperiodoftheguarantee.IfthedebtorfailstomakepaymentrelatingtofinancialguaranteecontractwhenitisdueandtheGroupasissuer,isrequiredtoreimbursetheholderfortheassociatedloss,theliabilityismeasuredatthehigherofthebestestimateoftheexpenditurerequiredtosettlethepresentobligationattheendofthereportingperiodandtheamountinitiallyrecognisedlesscumulativeamortisation.

2.3.18 Provisions for Liabilities

ProvisionsarerecognisedwhentheGrouphasapresentobligationasaresultofpasteventanditisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andwhentheamountoftheobligationcanbeestimatedreliably.

Provisionsarereviewedattheendofeachreportingperiodandadjustedtoreflectthecurrentbestestimate.Ifitisnolongerthatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,theprovisionisreversed.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasfinancecost.

2.3.19 Equity Instruments

AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupandtheCompanyafterdeductingalloftheirliabilities.Ordinarysharesareequityinstruments.

Ordinary shares are recorded at theproceeds received, net of directly attributable incrementaltransaction costs.Ordinary shares are classified as equity. Dividends on ordinary shares arerecognisedinliabilitiesintheperiodinwhichtheyaredeclared.

ANNUALREPORT2012

[75]




2.3.20 Treasury shares

WhensharesoftheCompany,thathavebeencancelled,recognisedasequityarereacquired,theamountoftheconsiderationpaidisrecogniseddirectlyinequity.Reacquiredsharesareclassifiedastreasurysharesandpresentedasadeductionfromtotalequity.Nogainorlossisrecognizedinprofitorlossonthepurchase,sale,issueorcancellationoftreasuryshares.Whenthetreasurysharesarereissuedbyresale,thedifferencebetweenthesalesconsiderationandthecarryingamountisrecognisedinequity.

2.3.21 Revenue Recognition

RevenueisrecognisedwhenitisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflowtotheGroupandtotheCompanyaswellastheamountoftherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:-

(i) Construction contracts

RevenuefromconstructioncontractsisaccountedforbythestageofcompletionmethodasdescribedinNote2.3.11.

ConstructionrevenueinrespectofserviceundertheconcessionarrangementsarerecognisedinaccordancewithFRS111ConstructionContracts.

(ii) Property development

Revenuefromsaleofdevelopmentproperties isaccountedforbythestageofcompletionmethodasdescribedinNote2.3.10.

Revenuerelatingtosaleofcompletedproperties isrecognised,netofdiscounts,uponthetransferofsignificantrisksandrewardsofownershiptothebuyers.

(iii) Rental income

Rentalincomefrominvestmentpropertiesisrecognisedonastraight-linebasisoverthetermofthelease.

(iv) Services

Revenueisrecognisednetofdiscountupontherenderingofservices.

(v) Interest income

Interestincomeisrecognisedasitaccruesusingtheeffectiveinterestmethodinprofitorloss.Thenotionalinterestincomeresultingfromtheaccretionorunwindingitsfinancialassetusingeffectiveinterestmethodisrecognisedintheprofitorloss.

(vi) Dividend income

Dividendincomeisrecognisedinprofitorlosswhentherighttoreceivepaymentisestablished.

(vii) Car park income

Carparkincomeisrecognisedforrentalofcarparkspaces.


[76]




2.3.21 Revenue Recognition (Cont’d)

(viii) Sale of land and completed unsold properties

Revenuefromsaleoflandandcompletedunsoldpropertiesaremeasuredatthefairvalueoftheconsiderationreceivableandarerecognisedinprofitorlosswhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.

(ix) Maintenance revenue

Revenuefrommaintenanceworksisrecognisedbasedonmonthlyfixedfeeandrecognisedwhenearnedoverthetermoftheconcession.

2.3.22 Employee Benefits

(i) Short Term Employee Benefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheyearinwhichtheassociatedservicesarerenderedbyemployeesoftheGroup.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

(ii) Defined Contribution Plans

Asrequiredbylaw,companiesinMalaysiamakecontributionstothestatepensionscheme,EmployeesProvidentFund(“EPF”).Suchcontributionsarerecognisedasanexpenseinprofitorlossasincurred.

(iii) Employee Share Option Scheme

EmployeesoftheGroupreceiveremunerationintheformofshareoptionsasconsiderationforservicesrendered.Thecostoftheseequity-settledtransactionswithemployeesismeasuredbyreferencetothefairvalueoftheoptionsatthedateonwhichtheoptionsaregranted.Thiscostisrecognisedinprofitorloss,withacorrespondingincreaseintheemployeeshareoptionreserveoverthevestingperiod.ThecumulativeexpenserecognisedattheendofeachreportingperioduntilthevestingdatereflectstheextenttowhichthevestingperiodhasexpiredandtheGroup’sbestestimateofthenumberofoptionsthatwillultimatelyvest.Thechargeorcredittoprofitorlossforaperiodrepresentsthemovementincumulativeexpenserecognisedatthebeginningandendofthatperiod.

Noexpenseisrecognisedforoptionsthatdonotultimatelyvest,exceptforoptionswherevesting isconditionaluponamarketornon-vestingcondition,whicharetreatedasvestedirrespectiveofwhetherornotthemarketornon-vestingconditionissatisfied,providedthatallotherperformanceand/orserviceconditionsaresatisfied.Theemployeeshareoptionreserveis transferredto retainedearningsuponexpiryof theshareoptions.Whentheoptionsareexercised,theemployeeshareoptionreserveistransferredtosharecapitalifnewsharesareissued,ortotreasuryshareiftheoptionsaresatisfiedbyreissuanceoftreasuryshares.

ANNUALREPORT2012

[77]




2.3.23 Borrowing Costs

Borrowingcostsarecapitalisedaspartofthecostofaqualifyingassetiftheyaredirectlyattributableto the acquisition, construction or production of that asset.Capitalisation of borrowing costscommenceswhentheactivitiestopreparetheassetforitsintendeduseorsaleareinprogressandtheexpendituresandborrowingcostsareincurred.Capitalisationofborrowingcostsissuspendedduringextendedperiodsinwhichactivedevelopmentisinterrupted.Borrowingcostsarecapitaliseduntiltheassetsaresubstantiallycompletedfortheirintendeduseorsale.Investmentincomeearnedonthetemporaryinvestmentofspecificborrowingspendingtheirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostseligibleforcapitalisation.

Theeffective interestexpenseaccruedarisingfromtheloanobtainedtofinancetheconcessionarrangementisrecognisedinprofitorlossbasedontheeffectiveinterestmethod.

Allotherborrowingcostsarerecognisedinprofitorlossintheperiodtheyareincurred.BorrowingcostsconsistofinterestandothercoststhattheGroupandtheCompanyincurredinconnectionwiththeborrowingoffunds.

2.3.24 Income Taxes

(i) Current tax

Currenttaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenactedbytheendofthereportingperiod.

Currenttaxesarerecognisedinprofitorlossexcepttotheextentthatthetaxrelatestoitemsrecognisedoutsideprofitorloss,eitherinothercomprehensiveincomeordirectlyinequity.

(ii) Deferred tax

Deferredtaxisprovidedusingtheliabilitymethodontemporarydifferencesattheendofthereportingperiodbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

Deferredtaxliabilitiesarerecognisedforalltemporarydifferences,except:-

- wherethedeferredtaxliabilityarisesfromtheinitialrecognitionofgoodwillorofanassetor liability ina transaction that isnotabusinesscombinationand,at the timeof thetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

- in respectof taxable temporarydifferencesassociatedwith investments insubsidiarycompanies,associatesandinterestsinjointventures,wherethetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture.


[78]




2.3.24 Income Taxes (Cont’d)

(ii) Deferred tax (Cont’d)

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardofunusedtaxcreditsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardofunusedtaxlossescanbeutilisedexcept:-

- wherethedeferredtaxassetrelatingtothedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

- inrespectofdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiarycompanies,associatesandinterestsinjointventures,deferredtaxassetsarerecognisedonly to theextent that it isprobable that the temporarydifferenceswill reverse in theforeseeable future and taxable profitwill be available againstwhich the temporarydifferencescanbeutilised.

Thecarryingamountofdeferredtaxassetsisreviewedattheendofeachreportingperiodandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilised.

Unrecogniseddeferredtaxassetsarereassessedattheendofeachreportingperiodandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxassetstobeutilised.

Deferred tax relating to items recognisedoutsideprofitor loss is recognisedoutsideprofitorloss.Deferredtaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinothercomprehensiveincomeordirectlyinequityanddeferredtaxarisingfromabusinesscombinationisadjustedagainstgoodwillonacquisition.

Deferredtaxassetsanddeferredtaxliabilitiesareoffset,ifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.

2.3.25 Earnings Per Share

TheGrouppresentsbasicanddilutedearningspersharedataforitsordinaryshares(“EPS”).

BasicEPSiscalculatedbydividingtheprofitor lossattributabletoordinaryshareholdersoftheCompanybyweightedaveragenumberofordinarysharesoutstandingduringtheperiod,adjustedforownsharesheld.

DilutedEPSisdeterminedbyadjustingtheprofitorlossattributabletoordinaryshareholdersandtheweightedaveragenumberofordinarysharesoutstandingadjustedforownsharesheldfortheeffectsofalldilutivepotentialordinaryshares,whichcompriseconvertiblenotes,bonusissueandshareoptionsgrantedtoemployees.

ANNUALREPORT2012

[79]




2.3.26 Contingent Liabilities

AcontingentliabilityisapossibleobligationthatarisesfrompasteventsandwhoseexistencewillonlybeconfirmedbytheoccurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheGroup.Itcanalsobeapresentobligationarisingfrompasteventsthatisnotrecognisedbecauseitisnotprobablethatanoutflowofeconomicresourceswillberequiredortheamountofobligationcannotbemeasuredreliably.

Acontingent liability isnot recognisedbut isdisclosed in thenotes to thefinancialstatements.Whenachangeintheprobabilityofanoutflowoccurssothattheoutflowisprobable,itwillthenberecognisedasaprovision.

2.3.27 Operating Segment

AnoperatingsegmentisacomponentoftheGroupthatengagesinbusinessactivitiesfromwhichitmayearnrevenuesandincurexpenses,includingrevenuesandexpensesthatrelatetotransactionswithanyoftheGroup’sothercomponents.Anoperatingsegment’soperatingresultsarereviewedregularlybythechiefoperatingdecisionmaker,whichistheGroupExecutiveCommittee,tomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformance,andforwhichdiscretefinancialinformationisavailable.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

ThepreparationoftheGroup’sfinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andthedisclosureofcontingent liabilitiesattheendofthereportingperiod.However,uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountoftheassetorliabilityaffectedinthefuture.

3.1 Judgements Made in Applying Accounting Policies

TherearenosignificantjudgementsmadebythemanagementintheapplicationofaccountingpoliciesoftheCompanythathaveasignificanteffectonthefinancialstatements.

3.2 Key Sources of Estimation Uncertainty

Thekeyassumptionconcerningthefutureandotherkeysourcesofestimationuncertaintyattheendofthereportingperiodthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyearareasstatedbelow:-

3.2.1 Depreciation of Property, Plant and Equipment

TheGroupestimatestheusefullivesofproperty,plantandequipmentbasedontheperiodoverwhichtheassetsareexpectedtobeavailableforuse.Theestimatedusefullivesofproperty,plantand equipment are reviewedperiodically and are updated if expectations differ frompreviousestimatesduetophysicalwearandtear,technicalorcommercialobsolescenceandlegalorotherlimitsontheuseoftherelevantassets.Inaddition,theestimationoftheusefullivesofproperty,plantandequipmentarebasedoninternaltechnicalevaluationandexperiencewithsimilarassets.Itispossible,however,thatfutureresultsofoperationscouldbemateriallyaffectedbychangesintheestimatesbroughtaboutbychangesinfactorsmentionedabove.Theamountsandtimingofrecordedexpensesforanyperiodwouldbeaffectedbychangesinthesefactorsandcircumstances.Areductionintheestimatedusefullivesoftheproperty,plantandequipmentwouldincreasetherecordedexpensesanddecreasethenon-currentassets.


[80]


3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONT’D)

3.2 Key Sources of Estimation Uncertainty (Cont’d)

3.2.2 Impairment of Goodwill

TheGrouptestsgoodwillforimpairmentannuallyinaccordancewithitsaccountingpolicy.Moreregularreviewsareperformedifeventsindicatethatthisisnecessary.

Determiningwhethergoodwill isimpairedrequiresanestimationofthevalue-in-useofthecash-generatingunit towhichgoodwill hasbeenallocated.The value-in-usecalculation requires themanagementtoestimatethefuturecashflowsexpectedtoarisefromthecash-generatingunitandasuitablediscountrateinordertocalculatethepresentvalue.

The carrying amount of goodwill at the endof the reportingperiod isRM33,604,364/- (2011:RM33,604,364/-).Detailsofthe impairmentassessmentaredisclosed inNote8tothefinancialstatements.

3.2.3 Deferred Tax Assets

TheGroup’sdeferredtaxassetsarerecognisedforallunusedtaxlosses,unutilisedcapitalallowancesanddeductible temporarydifferences to theextent that it isprobable that taxableprofitwillbeavailableagainstwhichthelossescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,basedonthelikelytimingandleveloffuturechargeableincometogetherwithfuturetaxplanningstrategies.

AssumptionsaboutgenerationoffuturechargeableincomedependonManagement’sestimatesof future profits. Thesedependon estimates of future revenue from the construction activitiesofthesubsidiarycompanyandhencetheoperatingcosts,capitalexpenditureandothercapitalmanagementtransactionsonthesubsidiarycompany.Judgementisalsorequiredaboutapplicationofincometaxlegislation.Thesejudgementsandassumptionsaresubjecttorisksanduncertainties,hencethereisapossibilitythatchangesincircumstanceswillalterexpectations,whichmayimpacttheamountofdeferredtaxassetsrecognisedinthestatementoffinancialposition.

3.2.4 Construction Contracts and Property Development

TheGrouprecognisesconstructioncontractsandpropertydevelopmentrevenueandexpensesinprofitorlossbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatconstructioncontractsandpropertydevelopmentcostsincurredfortheworkperformedtodatebeartotheestimatedtotalconstructioncontractsandpropertydevelopmentcostsrespectively.Significant judgement is required indeterminingthestageofcompletion, theextent of the construction costs andproperty development costs incurred, the estimated totalconstructioncontractsandpropertydevelopmentrevenueandcosts,aswellastherecoverabilityoftheconstructioncontractsanddevelopmentprojects.Inmakingthejudgement,theGroupevaluatesbasedonpastexperienceandbyrelyingontheworkofspecialists.

ANNUALREPORT2012

[81]


3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONT’D)

3.2 Key Sources of Estimation Uncertainty (Cont’d)

3.2.5 Impairment of Loans and Receivables.

TheGroupassessesattheendofeachreportingperiodwhetherthereisanyobjectiveevidencethatafinancialassetisimpaired.Todeterminewhetherthereisobjectiveevidenceofimpairment,theGroupconsidersfactorssuchastheprobabilityofinsolvencyorsignificantfinancialdifficultiesofthedebtoranddefaultorsignificantdelayinpayments.

Wherethereisobjectiveevidenceofimpairment,theamountandtimingoffuturecashflowsareestimatedbasedonhistoricallossexperienceforassetswithsimilarcreditriskcharacteristics.ThecarryingamountoftheGroup’sloanandreceivablesattheendofthereportingperiodisdisclosedinNote40tothefinancialstatements.

3.2.6 Employee Share Options

TheGroupandtheCompanymeasurethecostofequity-settledtransactionswithemployeesbyreferencetothefairvalueoftheemployeeshareoptionsatthedateatwhichtheyaregranted.Judgementisrequiredindeterminingthemostappropriatevaluationmodelfortheshareoptionsgranted,dependingonthetermsandconditionsofthegrant.Managementisalsorequiredtousejudgementindeterminingthemostappropriateinputstothevaluationmodelincludingvolatilityanddividendyield.TheassumptionsandmodelusedaredisclosedinNote18tothefinancialstatements.

3.2.7 Income Taxes

Judgementisrequiredindeterminingthecapitalallowancesanddeductibilityofcertainexpenseswhenestimatingtheprovisionfortaxation.Thereweretransactionsduringtheordinarycourseofbusinessforwhichtheultimatetaxdeterminationofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

3.2.8 Construction Revenue Recognition in relation to Concession Arrangement

InaccordancewithICInterpretation12ServiceConcessionArrangements,revenueassociatedwithconstructionworkundertheconcessionarrangementsarerecognisedandmeasureinaccordancewith FRS 111ConstructionContracts using the percentage of completionmethod.Revenuegeneratedfromtheconstructionworkismeasuredatthefairvalueoftheconsiderationreceivedorreceivableusingtheeffectiveinterestmethod.Inordertodeterminetheconstructionrevenuetoberecognisedduringthefinancialyear,thedirectorsoftheCompanyisrequiredtousejudgementindeterminingthestageofcompletion,theestimatedtotalconstructioncosts,effectiveinterestrates,aswellastherecoverabilityoftheconstructioncontracts.


[82]


4. PROPERTY, PLANT AND EQUIPMENT

Equipment, Building- Freehold furniture Light Motor Plant and in- Group land Buildings and fittings equipment vehicles machinery progress Total2012 RM RM RM RM RM RM RM RM

CostAt1January2012 3,049,653 2,852,518 4,654,997 6,572,454 9,347,476 21,216,812 648,000 48,341,910Additions – – 190,193 4,750 – – 540,400 735,343Disposals – (774,720) – (822,800) (567,802) (2,580,848) – (4,746,170)

At31December2012 3,049,653 2,077,798 4,845,190 5,754,404 8,779,674 18,635,964 1,188,400 44,331,083

Accumulated depreciationAt1January2012 – 371,513 3,831,889 5,584,218 6,662,233 13,904,690 – 30,354,543Depreciationforthe financialyear – 50,578 251,442 274,111 943,177 2,295,431 – 3,814,739Disposals – (9,038) – (351,060) (315,453) (2,290,589) – (2,966,140) At31December2012 – 413,053 4,083,331 5,507,269 7,289,957 13,909,532 – 31,203,142

Net book value at 31 December 2012 3,049,653 1,664,745 761,859 247,135 1,489,717 4,726,432 1,188,400 13,127,941

Equipment, Building- Freehold Leasehold furniture Light Motor Plant and in- Group land land Buildings and fittings equipment vehicles machinery progress Total2011 RM RM RM RM RM RM RM RM RM

CostAt1January2011 3,049,653 38,307,451 1,295,978 4,527,433 6,432,654 8,688,309 21,717,812 1,394,432 85,413,722Additions – – – 187,564 139,800 887,498 670,000 810,108 2,694,970Disposals –(38,307,451) – (60,000) – (228,331) (1,171,000) – (39,766,782)Reclassification – – 1,556,540 – – – – (1,556,540) –

At31December2011 3,049,653 – 2,852,518 4,654,997 6,572,454 9,347,476 21,216,812 648,000 48,341,910

Accumulated depreciationAt1January2011 – 505,375 345,594 3,641,618 4,961,028 5,852,097 12,410,149 – 27,715,861Depreciationforthe financialyear – 67,383 25,919 250,271 623,190 1,038,467 2,665,541 – 4,670,771Disposals – (572,758) – (60,000) – (228,331) (1,171,000) – (2,032,089)Reclassification – – – – – – – – –

At31December2011 – – 371,513 3,831,889 5,584,218 6,662,233 13,904,690 – 30,354,543

Net book value at 31 December 2011 3,049,653 – 2,481,005 823,108 988,236 2,685,243 7,312,122 648,000 17,987,367

ANNUALREPORT2012

[83]


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

Equipment, furnitureCompany and fittings 2012 RMCostAt1January2012 14,465Additions/Disposals –At31December2012 14,465

Accumulated depreciationAt1January2012 12,054Depreciationforthefinancialyear 1,446Disposals –

At31December2012 13,500

Net book value at 31 December 2012 965

2011

CostAt1January2011 14,465Additions/Disposals –

At31December2011 14,465

Accumulated depreciationAt1January2011 10,608Depreciationforthefinancialyear 1,446Disposals –At31December2011 12,054

Net book value at 31 December 2011 2,411

(a) During thefinancialyear, theGroupacquiredproperty,plantandequipmentwithanaggregatecostofRM735,343/-(2011:RM2,694,970/-)ofwhichRMNil(2011:RM1,334,000/-)wereacquiredbymeansofhirepurchasearrangements.CashpaymentsofRM735,343/-(2011:RM1,360,970/-)wereusedtoacquiretheproperty,plantandequipment.


[84]


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

(b) Thenetbookvalueofproperty,plantandequipmentacquiredunderhirepurchasearrangementsareasfollows:-

Group 2012 2011 RM RM Motorvehicles 1,209,835 1,953,233Plantandmachinery 4,459,350 6,456,367 5,669,185 8,409,600

Theleasedassetsarepledgedassecurityforthehirepurchaseliabilities.

(c) Thebuilding-in-progressoftheGroupisinrespectof2unitscondominiumsunderconstruction.ThebalanceofcapitalcommitmentisdisclosedonNote35tothefinancialstatements.

5. INVESTMENT PROPERTIES

Group 2012 2011 RM RM

At1January 118,479,395 107,339,377Additionsfromsubsequentexpenditure 28,418,757 11,140,018Changeinfairvaluerecognisedinprofitorloss 20,020,000 –

At31December 166,918,152 118,479,395

Representedby:-

Investmentproperties,atfairvalue 103,871,005 83,851,005Investmentpropertyunderconstruction,atcost 63,047,147 34,628,390

At31December 166,918,152 118,479,395

(a) InvestmentpropertieswithanaggregatecarryingvalueofRM100,571,005/-(2011:RM81,951,005/-)areheldunderleasetermsandhaveunexpiredleaseperiodofmorethan50years.

(b) Exceptforinvestmentpropertyunderconstruction,theinvestmentpropertiesarestatedatfairvalue,whichhasbeendeterminedbasedonvaluationsattheendofthereportingperiod.Valuationsareperformedbyaccreditedindependentvaluerswithrecentexperienceinthelocationandcategoryofpropertiesbeingvalued.

(c) Theinvestmentpropertyunderconstructionwhichcompriseoflandandbuildingisbeingvaluedatcostasthedirectorsareoftheopinionthatthefairvalueoftheinvestmentpropertycannotbereliablyandseparatelydeterminedduetothenatureandprojectrisksinvolvedincompletingtheinvestmentproperty.

(d) AlltheinvestmentpropertiesoftheGrouparepledgedforcreditfacilitiesgrantedtotheGroupasdisclosedinNote22andNote25tothefinancialstatements.

ANNUALREPORT2012

[85]


6. INVESTMENT IN SUBSIDIARY COMPANIES

Company 2012 2011 RM RM

Unquotedshares-atcost 95,765,270 95,765,270

Thedetailsofthesubsidiarycompanies,allofwhichareincorporatedinMalaysiaareasfollows:-

Name of Company 2012 2011 Principal activity % %

Held by the Company 3TwoSquareSdn.Bhd. 100 100 Propertyinvestment

CBLandSdn.Bhd. 100 100 Propertyinvestmentandproperty development

CBTech(M)Sdn.Bhd. 100 100 Mechanicalandelectricalengineering services

CrestBuilderInternational 100 100 Investmentholding Sdn.Bhd.*

CrestBuilderSdn.Bhd. 100 100 Construction

CrestlandProjectManagement 100 100 Projectmanagement Sdn.Bhd.*

DamansaraOneSdn.Bhd.* 100 100 Propertyinvestmentandproperty development

NepfieldSdn.Bhd.* 100 100 Propertyinvestmentandproperty development

VerticalSuccessSdn.Bhd. 100 100 Propertyinvestment

Held through Crest Builder Sdn. Bhd.CrestlandDevelopment 100 100 Propertyinvestment Sdn.Bhd.

LandasanBayuSdn.Bhd. 51 – Propertyinvestmentandproperty (Note6(a)) development

Held through Crestland Builder International Sdn. Bhd.UnitapahSdn.Bhd. 51 51 Concessionholder

IntanSekitarSdn.Bhd. 51 – Propertyinvestmentandproperty (Note6(b)) development

* The Auditor’s Report of these subsidiaries contains an emphasis of matter paragraph in relation to the going concern consideration.


[86]


6. INVESTMENT IN SUBSIDIARY COMPANIES (CONT’D)

Acquisition of Subsidiary Companies

(a) On16May2012,CrestBuilderInternationalSdn.Bhd.,awhollyownedsubsidiarycompanyoftheCompanyacquired51,000ordinarysharesofRM1/-eachrepresenting51%oftheissuedandpaid-upsharecapitalofLandasanBayuSdn.Bhd.(“LandasanBayu”)foracashconsiderationofRM51,000/-.Subsequently,LandasanBayuwastransferredtoarelatedcompany,CrestBuilderSdn.Bhd.on22June2012.Asaresult,LandasanBayubecameadirectsubsidiarycompanyoftheGroup;

(b) On1June2012,CrestBuilderInternationalSdnBhd,awhollyownedsubsidiarycompanyoftheCompanyacquired51,000ordinarysharesofRM1/-eachrepresenting51%oftheissuedandpaid-upsharecapitalofIntanSekitarSdn.Bhd.(“IntanSekitar”)foracashconsiderationofRM51,000/-.Asaresult,IntanSekitarbecameadirectsubsidiarycompanyoftheGroup.

Thefairvalueoftheidentifiableassetsandliabilitiesofthesubsidiarycompaniesasatthedateofacquisitionwere:-

Carrying Fair value amount RM RM

Cashandbankbalances 200,000 200,000 Otherpayables – – Netidentifiableassets 200,000 200,000

Theeffectoftheacquisitiononcashflowsisasfollows:- RM

Considerationsettledincash 102,000Less:Cashandcashequivalentofsubsidiarycompaniesacquired (102,000)

Netcashoutflowonacquisition –

Goodwillarisingfromacquisitionofsubsidiarycompanies:-

RM

Fairvalueofnetidentifiableassets 200,000Less:Non-controllinginterest (98,000) Group’sinterestinfairvalueofnetidentifiableassets 102,000Goodwillonacquisition –

Costofbusinesscombination 102,000

TheacquiredsubsidiarycompanieshavecontributedthefollowingresultstotheGroup:-

RM

Revenue –Lossaftertaxation (11,802)

ANNUALREPORT2012

[87]


7. OTHER INVESTMENTS

Group Company 2012 2011 2012 2011 RM RM RM RM

At costUnquotedbonds,inMalaysia 4,000,000 8,500,000 4,000,000 8,500,000Transferableclubmemberships 90,000 90,000 – –

4,090,000 8,590,000 4,000,000 8,500,000Less:Writtenoff (4,036,000) (4,500,000) (4,000,000) (4,500,000)

54,000 4,090,000 – 4,000,000Less: Accumulated impairment lossesAt1January 4,036,000 4,536,000 4,000,000 4,500,000Addition – 4,000,000 – 4,000,000Writtenoff (4,036,000) (4,500,000) (4,000,000) (4,500,000)

At31December – 4,036,000 – 4,000,000

54,000 54,000 – –

8. GOODWILL


At1January/31December 33,604,364 33,604,364

(a) Impairmenttestforgoodwill

GoodwillisarisingfrombusinesscombinationhasbeenallocatedtotheGroup’sCGUsidentifiedaccordingtothebusinesssegmentsasfollows:-

Investment Property Construction holding development Total RM RM RM RM At1January/31December 33,550,094 32,988 21,282 33,604,364


[88]


8. GOODWILL (CONT’D)

(b) Keyassumptionsusedinvalue-in-usecalculations

The recoverable amount of aCGU is determinedbasedon value-in-use calculations using cash flowprojectionsbasedonfinancialforecastsapprovedbythedirectorforthenextfive(5)years.Cashflowsbeyondthenextone(1)yearareextrapolatedusingthegrowthratesasstatedbelow.Thekeyassumptionsusedforvalue-in-usecalculationsare:-

2012 2011 Discount rate Growth rate Discount rate Growth rate % % % % Construction 5 10 8 10Propertydevelopment 11 10 8 10Investmentholding 10 10 – –

Thefollowingdescribeseachkeyassumptiononwhichthedirectorhasbaseditscashflowsprojectionsforthepurposesofimpairmenttestingofgoodwill:-

(i) Discountrate–basedontheweightedaveragecostofcapitaloftheGroup(ii) Growthrate–consistentwiththelongtermaveragegrowthrateoftheGroup

(c) Sensitivitytochangesinassumptions

Withregardtotheassessmentofvalue-in-useoftheconstructionandpropertydevelopmentunits,thedirectorsbelievethatnoreasonablypossiblechange inanyof theabovekeyassumptionswouldhavecausedthecarryingvaluesoftheunitstomateriallyexceedtheirrecoverableamounts.

9. LAND HELD FOR PROPERTY DEVELOPMENT


Freehold lands, at costAt1January 9,071,612 11,188,239Transfertopropertydevelopmentcosts(Note13) (9,071,612) (2,116,627)

At31December – 9,071,612

Development costsAt1January 1,905,869 1,729,118Costsincurredduringthefinancialyear 1,287,267 176,751Transfertopropertydevelopmentcosts(Note13) (3,193,136) – At31December – 1,905,869 At31December – 10,977,481

FreeholdlandamountingtoRM2,871,612/-(2011:RM2,871,612/-)ispledgedforcreditfacilitiestotheGroupas

disclosedinNotes22andNote25tothefinancialstatements.

ANNUALREPORT2012

[89]


10. OPERATING FINANCIAL ASSET

TheGrouphadenteredintoaconcessionagreementwiththeGovernmentofMalaysiaandUniversitiTeknologiMara(“UiTM”)on4May2010todesign,develop,constructoftheFacilitiesandInfrastructureandthemaintenanceworksforaperiodof23yearscomprising3yearsofconstructionworksand20yearsofmaintenanceworks.Uponexpiryoftheconcessionperiod,theGroupisrequiredtohandovertheFacilitiesandInfrastructureatnocosttoUiTMinawellmaintainedcondition,fairwearandtear.

TheoperatingfinancialassetrepresentstheconcessionarrangementforUiTMprojectwhichcarriesinterestratesof9.50%to10.25%perannum.

11. DEFERRED TAX ASSETS/(LIABILITIES)


Deferred tax assetsAt1January 464,638 –Recognisedinprofitorloss (234,891) 464,638

At31December 229,747 464,638

Deferred tax liabilitiesAt1January (633,742) (361,486)Recognisedinprofitorloss 328,887 (272,256)

At31December (304,855) (633,742)

TherecognitionofthedeferredtaxassetsoftheGrouparedependentonfuturetaxableprofitsinexcessofprofitsarisingfromthereversalofexistingtaxabletemporarydifferences.Theevidenceusedtosupportthisrecognitionisthedirectors’budget,whichshowsthatitisprobablethatcertainportionofthedeferredtaxassetswouldberealisedinfutureyears.

Thecomponentsandmovementsofdeferredtaxassetsandliabilitiesduringthefinancialyearpriortooffsettingareasfollows:-

At 1 Recognised At 31 Recognised At 31 January in the profit December in the profit DecemberGroup 2011 or loss 2011 or loss 2012 RM RM RM RM RM

Deferred tax assetsFinancecost – 464,638 464,638 (464,638) –Unabsorbedcapital allowances – 190 190 20,732 20,922Unutilisedtaxlosses – – – 2,484,825 2,484,825

– 464,828 464,828 2,040,919 2,505,747


[90]


11. DEFERRED TAX ASSETS/(LIABILITIES) (CONT’D)

Thecomponentsandmovementsofdeferredtaxassetsandliabilitiesduringthefinancialyearpriortooffsettingareasfollows(Continued):-

At 1 Recognised At 31 Recognised At 31 January in the profit December in the profit DecemberGroup 2011 or loss 2011 or loss 2012 RM RM RM RM RM

Deferred tax liabilitiesProperty,plantand equipment 361,486 272,446 633,932 (319,269) 314,663Financeincome – – – 2,217,941 2,217,941Costructionincome – – – 48,251 48,251

361,486 272,446 633,932 1,946,923 2,580,855

(361,486) 192,382 (169,104) 93,996 (75,108)

Presentedafterappropriateoffsetting:-


Deferredtaxassets 229,747 464,828Deferredtaxliabilities (304,855) (633,932) At31December (75,108) (169,104)

12. TRADE AND OTHER RECEIVABLES


(Restated)

Non-currentTrade receivablesRetentionssums 27,887,703 24,194,771

CurrentTrade receivablesTradereceivables 123,704,719 65,546,959Accruedbillingsinrespectofpropertydevelopment 36,968 1,993,715Retentionssums 53,513,581 58,411,859 177,255,268 125,952,533Less:Allowanceforimpairment (1,997,475) (1,997,475)

Tradereceivables,net(Note12(a)) 175,257,793 123,955,058

ANNUALREPORT2012

[91]


12. TRADE AND OTHER RECEIVABLES (CONT’D)


(Restated)

Other receivablesOtherreceivables 2,184,251 2,075,265Less:Allowanceforimpairment (487,821) (487,821)

Otherreceivables,net 1,696,430 1,587,444Advancesmadetotradepayables 23,700,698 9,445,024Deposits 2,371,246 2,260,657Prepayments 4,113,351 2,123,049

Totalotherreceivables,net(Note12(b)) 31,881,725 15,416,174

Total trade and other receivables 235,027,221 163,566,003

(a) Trade receivables

TheGroup’snormaltradecredittermsrangesfrom14to60days.Othercredittermsareassessedandapprovedonacase-by-casebasis.

IncludedintradereceivablesoftheGroupisanamountofRM21,663,087/-(2011:RM20,456,739/-)duefromacompanywhichadirectorhasinterest.

Ageinganalysisoftradereceivables

TheageinganalysisoftheGroup’stradereceivables(excludedaccruedbillings)areasfollows:-


Neither past due nor impaired 123,568,769 97,870,305

Past due but not impaired1to30dayspastduebutnotimpaired 5,960,012 5,469,53731to60dayspastduebutnotimpaired 18,046,727 3,654,18661to90dayspastduebutnotimpaired 7,512,298 1,184,79491to120dayspastduebutnotimpaired 48,020,722 37,977,292

79,539,759 48,285,809

Impaired 1,997,475 1,997,475

205,106,003 148,153,589


[92]


12. TRADE AND OTHER RECEIVABLES (CONT’D)

(a) Trade receivables (Cont’d)

Tradereceivablesthatareneitherpastduenorimpaired

Tradereceivables thatareneitherpastduenor impairedarecreditworthydebtorswithgoodpaymentrecordswiththeGroup.NoneoftheGroup’stradereceivablesthatareneitherpastduenorimpairedhavebeenrenegotiatedduringthefinancialyear.

Tradereceivablesthatarepastduebutnotimpaired

TheGrouphastradereceivablesamountingtoRM79,539,759/- (2011:RM48,285,809/-) thatarepastdueattheendofthereportingperiodbutnotimpairedbecausetherehavebeennosignificantchangesincreditqualityofthedebtorsandtheamountsarestillconsideredrecoverable.TheGroupdoesnotholdanycollateralorcreditenhancementsoverthesebalances.

Tradereceivablesthatareimpaired

TheGroup’stradereceivablesthatareimpairedattheendofthereportingperiodareasfollows:-


Individually impairedTradereceivables 1,997,475 1,997,475Less:Allowanceforimpairment (1,997,475) (1,997,475)

– –

Tradereceivablesthatareindividuallydeterminedtobeimpairedattheendofthereportingperiodrelatetodebtorsthatareinsignificantfinancialdifficultiesandhavedefaultedonpayments.Thesereceivablesarenotsecuredbyanycollateralorcreditenhancements.

(b) Other receivables

IncludedinotherreceivablesoftheGroupareamountsofRM588,000/-(2011:RM490,000/-)duefromnon-controllingshareholderswhichareunsecured,interestfreeandrepayableondemand.

Otherreceivablesthatareimpaired

Attheendofthereportingperiod,theGrouphasprovidedanallowanceofRM487,821/-(2011:RM487,821/-)forimpairmentoftheotherreceivables.Theseotherreceivablesareinsignificantfinancialdifficultiesandhavedefaultedonpayments.Theseotherreceivablesarenotsecuredbyanycollateralorcreditenhancements.

ANNUALREPORT2012

[93]


13. PROPERTY DEVELOPMENT COSTS


Freehold lands, at costAt1January 19,483,370 17,366,743Transferfromlandheldforpropertydevelopment(Note9) 9,071,612 2,116,627Less:Reversalofcompletedproject (4,046,897) –

At31December 24,508,085 19,483,370

Development costsAt1January 115,006,486 74,869,853Costsincurredduringthefinancialyear 51,315,565 40,136,633Transferfromlandheldforpropertydevelopment(Note9) 3,193,136 –Less:Reversalofcompletedproject (72,165,213) –

At31December 97,349,974 115,006,486

Property development costs at 31 December 121,858,059 134,489,856

Accumulated costs recognised in profit or lossAt1January (95,711,472) (58,908,248)Recognisedduringthefinancialyear (40,587,811) (36,528,418)Writeoff – (274,806)Reversalofcompletedproject 76,212,110 –

At31December (60,087,173) (95,711,472)

Transferofunsoldcompletedpropertiestoinventories (4,777,870) –

Net carrying amount as at 31 December 56,993,016 38,778,384

IncludedindevelopmentcostsincurredduringthefinancialyearisinterestexpensecapitalisedofRM1,225,962/-(2011:RM885,982/-).

ThefreeholdlandispledgedassecurityforcreditfacilitiesfortheGroupasdisclosedinNote22andNote25tothefinancialstatements.

14. INVENTORIES


At costCompleteddevelopmentproperties 6,792,870 2,015,000


[94]


15. AMOUNT DUE FROM/TO CONTRACT CUSTOMERS


(Restated)

Aggregateconstructioncontractcostsincurredto-date 1,925,876,371 1,427,107,991Add:Attributableprofits 250,267,730 210,188,133

2,176,144,101 1,637,296,124Less:Progressbillings (2,059,956,678) (1,466,364,094)

116,187,423 170,932,030

Representedbygrossamounts:--duefromcontractcustomers 117,779,501 176,318,965-duetocontractcustomers (1,592,078) (5,386,935)

116,187,423 170,932,030

Advancesreceivedoncontracts,withinprogressbillings 9,570,873 11,708,293

Thecosts incurredto-dateonconstructioncontracts includethefollowingchargesmadeduringthefinancialyear:-


Hireofplantandmachineries 4,349,038 4,868,239Depreciationofproperty,plantandequipment 2,535,237 3,213,973Rentalofpremises 398,704 437,750

16. AMOUNT DUE FROM SUBSIDIARY COMPANIES

Theamountduefromsubsidiarycompaniesareunsecured,interestfreeexceptforanamountofRM55,376,344/-(2011:RM62,745,478/-)whichbearsaneffectiveinterestrateof8.1%(2011:7.8%)perannumandrepayableondemand.

ANNUALREPORT2012

[95]


17. FIXED DEPOSITS PLACED WITH LICENSED BANKS AND SHORT TERM INVESTMENT WITH FINANCIAL INSTITUION


Fixeddepositsplacedwith licensedbanks 19,418,333 13,062,085 2,766,000 2,766,000Shortterminvestmentwith financialinstitution 61,585 59,725 – –

19,479,918 13,121,810 2,766,000 2,766,000

ThefixeddepositsplacedwithlicensedbanksoftheGroupandoftheCompanyearninterestratesof1.26%to2.85%(2011:1.26%to2.85%)and1.75%(2011:1.75%)perannumrespectively.

Included infixeddepositsof theGroupamounting toRM23,356/- (2011:RM22,648/-),which ispledged forthepurposeofbankguaranteesforperformancebondsissuedinfavourofthirdpartiesinrespectofprojectsundertakenbyasubsidiarycompany.

TheshortterminvestmentoftheGroupisinrespectofinvestmentinunquotedtrustfundandearnsinterestateffectiveinterestrateof2.94%(2011:2.94%)perannum.

18. SHARE CAPITAL

Group and Company 2012 2011

Number Number of Shares of Shares Unit RM Unit RM

OrdinarysharesofRM1/-each

Authorised:-Atthebeginning/endofthe financialyear 500,000,000 500,000,000 500,000,000 500,000,000

Issuedandfullypaid:-

At1January 124,089,450 124,089,450 124,089,450 124,089,450Issuanceofshares:- -arisingfromprivateplacement 11,300,000 11,300,000 – –-exerciseofESOS 2,621,000 2,621,000 – –

At31December 138,010,450 138,010,450 124,089,450 124,089,450


[96]


18. SHARE CAPITAL (CONT’D)

CBHB – ESOS

InformationinrespectofthenumberofshareoptionsgrantedundertheCBHB–ESOSisasfollows:-

Number of share options

2012 2011 RM RM

At1January 5,250,000 6,080,000Granted 4,827,000 –Exercised (2,621,000) –Lapsed (755,000) (830,000)

At31December 6,701,000 5,250,000

ThemovementsofoptionsoverunissuednewordinarysharesofRM1/-eachoftheCompanygrantedundertheCBHB–ESOSduringthefinancialyearareasfollows:-

Number of share optionsDate Option of offer price 1.1.2012 Granted Exercised Lapsed 31.12.2012 19.4.2007 RM1/- 3,635,000 – (1,710,000) (165,000) 1,760,00019.4.2008 RM1/- 585,000 – (475,000) (110,000) –19.4.2009 RM1/- 1,030,000 – – (75,000) 955,00019.4.2012 RM1/- – 4,827,000 (436,000) (405,000) 3,986,000

TheESOS,whichisexpiringon18April2012hasbeengrantedwiththeextensionforanotherfive(5)yearsuntil18April2017.

Asat19April2012,theESOSCommitteehasmadethedecisiontogrant4,827,000newOptionsundertheexistingESOSschemeatanexercisepriceofRM1/-each.ThenewgrantedOptionscanbeexercisedatanytimebutnotlaterthan18April2017.

TheweightedaveragesharepriceatthedateoftheoptionsexercisedduringthefinancialyearwasRM1.05.

TheexercisepricesforoptionsoutstandingattheendofthefinancialyearwasRM1/-(2011:RM1/-).

Fairvalueofshareoptionsgrantedduringthefinancialyearareasfollows:-

ThefairvalueofshareoptionsgrantedduringthefinancialyearwasestimatedusingtheBlackScholesmodel,takingintoaccountthetermsandconditionsuponwhichtheoptionsweregranted.Thefairvalueofshareoptionsmeasuredatgrantdateandtheassumptionsareasfollows:-

19 April 2012Fairvalueofshareoptionsgranted(RM) 0.103Shareprice(RM) 0.780Exercisedprice(RM) 1.000Expectedvolatility(%) 36.00%Expectedlife(years) 5Riskfreerate(%) 3.00%Expecteddividendyield(%) 6.41%

ANNUALREPORT2012

[97]


18. SHARE CAPITAL (CONT’D)

CBHB – ESOS (Cont’d)

Theexpectedlifeofshareoptionsisbasedonhistoricaldataandisnotnecessarilyindicativeofexercisepatternsthatmayoccur.Theexpectedvolatilityreflectstheassumptionthatthehistoricalvolatilityisindicativeoffuturetrends,whichmayalsonotnecessarilybetheactualoutcome.Nootherfeatureoftheoptionwasincorporatedintothemeasurementoffairvalue.

OtherthanthedirectorswhoseinterestsaredisclosedseparatelyintheDirectors’Report,theeligibleemployeesoftheGroupwhoseshareoptionsentitlementsareequaltoormorethan140,000shareoptionsintheCompanypursuanttotheCBHB–ESOSareasfollows:-

Number of options over ordinary shares of RM1/- each 01.01.2012 Granted Exercised Lapsed 31.12.2012 GohSinHuat 75,000 75,000 (10,000) – 140,000HoWanChan 100,000 200,000 – – 300,000KehPeiTian 40,000 460,000 – – 500,000KhooKhengKiat 150,000 350,000 – – 500,000LimSweePeng 50,000 100,000 – – 150,000TehHockHua 190,000 310,000 – – 500,000WanHengLin 75,000 75,000 – – 150,000YongTatYean – 150,000 – – 150,000

19. TREASURY SHARES

Group and Company 2012 2011 RM RM

At1January 181,069 181,069Sharesrepurchasedduringthefinancialyear 413,161 –

At31December 594,230 181,069

Asat31December2012, thenumberofoutstandingshares in issueafterdeducting the treasury shares is137,285,950(2011:123,852,150).

Duringthefinancialyear,theCompanypurchased487,200ofitsissuedordinarysharesfromtheopenmarketonBursaMalaysiaSecuritiesBerhad(“BursaMalaysia”).TheaveragepricepaidforthesharesrepurchasedwasapproximatelyRM0.85share.

Therepurchasedtransactionswerefinancedbyinternallygeneratedfunds.ThesharesrepurchasedarebeingheldastreasurysharesinaccordancewithSection67AofCompaniesAct,1965.TheCompanyhastherighttoreissuethesesharesatlaterdate.Astreasuryshares,therightsattachedastovoting,dividendsandparticipationinotherdistributionaresuspended.Noneofthetreasurysharesrepurchasedhasbeensoldorcancelledasat31December2012and2011.


[98]


20. RESERVES


Non-distributableCapitalreserveAt1January 4,073,619 4,073,619 4,073,619 4,073,619Exerciseofemployeeshareoptions 346,058 – 346,058 –

At31December 4,419,677 4,073,619 4,419,677 4,073,619

ShareoptionreserveAt1January 295,525 295,525 295,525 295,525OptionsgrantedunderESOS 74,577 – 74,577 –Exerciseofemployeeshareoptions (346,058) – (346,058) –

At31December 24,044 295,525 24,044 295,525

4,443,721 4,369,144 4,443,721 4,369,144DistributableRetainedearnings 174,114,992 139,253,592 20,884,735 19,930,868 Total reserves 178,558,713 143,622,736 25,328,456 24,300,012

(a) Capital reserve

CapitalreserveoftheGroupandoftheCompanyarosefromissuanceofwarrantsasdisclosedinNote21(a)tothefinancialstatementsandtransferwithinreserveforCBHB–ESOSexercisedasdisclosedinNote18tothefinancialstatements.

(b) Share option reserve

Theshareoptionreserverepresentstheequity-settledshareoptionsgrantedtoemployees.Thisreserveismade-upofthecumulativevalueofservicesreceivedfromemployeesrecordedongrantshareoptions.

(c) Retained earnings

Priortotheyearofassessment2008,Malaysiancompaniesadoptedthefullimputationsystem.InaccordancewiththeFinanceAct2007,whichwasgazettedon28December2007,companiesshallnotbeentitledtodeduct taxondividendpaid,creditedordistributed to itsshareholders,andsuchdividendswillbeexemptedfromtaxinthehandsoftheshareholders(“singletiersystem”).However,thereisatransitionalperiodofsixyears,expiringon31December2013,toallowcompaniestopayfrankeddividendstotheirshareholdersunderlimitedcircumstances.CompaniesalsohaveanirrecoverableoptiontodisregardthetaxcreditunderSection108oftheIncomeTaxAct,1967andopttopaydividendsunderthesingletiersystem.ThechangeinthetaxlegislationalsoprovidesfortheSection108taxcredittobelocked-inasat31December2007inaccordancewithSection39oftheFinanceAct2007.

TheCompanydidnotelectfortheirrecoverableoptiontodisregardtheSection108balance.Accordingly,duringthetransitionalperiod,theCompanymayutilisedthecreditinSection108balanceasat31December2007todistributecashdividendpaymentstoordinaryshareholdingsasdefinedundertheFinanceAct2007.

SubjecttoagreementwiththeInlandRevenueBoard,theCompanyhas:-

(i) SufficienttaxcreditofRM1,245,332/-underSection108(5)oftheIncomeTaxAct,1967tofrankthepaymentofdividendsoutofitsretainedearnings;and

(ii) ThebalanceofRM200,064/-(2011:RM200,064/-)inthetaxexemptaccounttodeclaretaxexemptdividends.

ANNUALREPORT2012

[99]


21. WARRANTS

(a) WARRANTS 2003/2013

TheWarrants2003/2013representsarenounceablerightsissueof24,000,000warrantstotheentitledshareholdersatanissuepriceofRM0.30perwarrant,onthebasisof1.008warrantsforeveryfour(4)existingsharesheldontheentitlementdate.

TheprincipalobjectiveoftheissuanceofWarrants2003/2013istogeneratecashproceedsofRM7,200,000/-,ofwhichRM7,000,000/-wasissuanceascashpaymenttoMGRCorporationBerhad’screditors.

TheWarrants2003/2013areconvertibleintofullypaid-upordinarysharesofRM1/-eachintheCompanyatanytimeonorbefore29May2013attherateofRM1/-cashperwarrantsubjecttothetermsandconditionssetoutintheDeedPoll.Warrantsnotexercisedduringtheperiodwillthereafterlapseandceasetobevalidforanypurpose.

Asat31December2012,23,999,050(2011:23,999,050)warrantsremainunconverted.

(b) WARRANTS 2012/2015 (“WARRANTS B”)

TheWarrantsBrepresentsabonusissueof41,331,912warrantstotheentitledshareholdersonthebasisofthree(3)warrantsforeveryten(10)existingsharesheldontheentitlementdate.

TheprincipalobjectiveoftheissuanceofWarrantsBistorewardexistingshareholdersoftheCompany.

TheWarrantsareconvertibleintofullypaid-upordinarysharesofRM1/-eachintheCompanyatanytimeonorbefore29October2015attherateofRM1/-cashperwarrantsubjecttothetermsandconditionssetoutintheDeedPoll.Warrantsnotexercisedduringtheperiodwillthereafterlapseandceasetobevalidforanypurpose.

Asat31December2012,41,331,912warrantsremainunconverted.

22. TERM LOANS


Current(Note25)-notlaterthanoneyear 39,422,283 12,356,000 9,134,474 4,026,000

Non-current-laterthanoneyearbutnot laterthantwoyears 28,535,643 29,660,843 8,712,000 8,712,000-laterthantwoyearsbutnot laterthanfiveyears 103,673,130 74,756,097 26,136,000 26,136,000-morethanfiveyears 132,860,386 50,417,248 16,714,000 25,426,000

265,069,159 154,834,188 51,562,000 60,274,000

304,491,442 167,190,188 60,696,474 64,300,000


[100]


22. TERM LOANS (CONT’D)

ThetermloansoftheGroupandoftheCompanyaredenominatedinRinggitMalaysia.

TheinterestratesoftermloansoftheGroupandoftheCompanyarerangingfrom5.85%to10.25%(2011:5.50%to9.27%)and8.10%(2011:8.10%)perannumrespectively.

Thesecuredtermloans,togetherwiththeotherbankborrowingsoftheGroupandoftheCompanyasdisclosedinNote25tothefinancialstatementstotheGroupandtotheCompanyaresecuredbywayof:-

(a) loanagreement, thirdparty first legalchargeover the leasehold landandbuilding, thirdpartyDeedofAssignmentofrentalproceedsandDebtServiceReserveAccountoftheinvestmentpropertyoftheGroupasdisclosedinNote5tothefinancialstatements;

(b) legalchargedandassignmentofallrights,title,interest,benefits,performancebonds,guarantees,securitydeposits,allliquidateddamagespayabletocertainsubsidiarycompanies,presentandfuturerightsinrespectofthedesignatedaccountandallpoliciesofinsurances/takafulaswellasoverthesubsidiarycompany’srevenueandprofitreserveaccounts,firstparty,fixedandfloatinglegalchargeonthepresentandfutureassets,undertakingsandallotherpropertiesofcertainsubsidiarycompanies.

(c) thirdpartyandfirstlegalchargeoveradevelopmentlandcapturedinpropertydevelopmentcostsoftheGroupasdisclosedinandNote13tothefinancialstatements;

(d) firstpartyfirst legalchargeover the freehold landanda limiteddebenturebywayoffixedandfloatingchargeovertheinvestmentpropertyunderconstructionoftheGroupasdisclosedinNote5tothefinancialstatements;

(e) assignmentbywayofchargeoveralltherentsandothermoniespayables,interest,title,rightsremediesandbenefitsunderthetenanciesexecutedand/ortobeexecutedaswellastoallinsuranceandfirstlegalchargeovertherental/carparkproceedsaccounttobeopenedandmaintainedbythesubsidiarycompanyontheinvestmentpropertyunderconstructionasdisclosedinNote5tothefinancialstatements;and

(f) corporate guarantee issued by theCompany, certain subsidiary companies and the non-controllingshareholders.

ANNUALREPORT2012

[101]


23. HIRE PURCHASE PAYABLES

Group 2012 2011 RM RM Minimumhirepurchasepayables:--notlaterthanoneyear 1,651,454 3,547,635-laterthanoneyearbutnotlaterthanfiveyears 551,972 2,272,598

2,203,426 5,820,233

Less:Futurefinancecharges (199,910) (487,681)

Presentvalueofhirepurchasepayables 2,003,516 5,332,552

Representedby:-Current -notlaterthanoneyear 1,510,895 3,271,679Non-current-laterthanoneyearbutnotlaterthanfiveyears 492,621 2,060,873

2,003,516 5,332,552

Hirepurchasefacilitiesbearinterestratesrangingfrom2.45%to3.60%(2011:2.45%to3.60%)perannum.

24. TRADE AND OTHER PAYABLES

Group Company 2012 2011 2012 2011 RM RM RM RM (Restated)

Non-currentTrade payables Retentionsums 26,075,256 21,109,722 – –

CurrentTrade payablesTradepayables 181,142,963 69,572,208 – –Progressbillingsinrespect ofpropertydevelopment 2,103,193 8,026,915 – –Retentionsums 27,307,192 19,143,450 – –

Totaltradepayables 210,553,348 96,742,573 – –

Other payablesOtherpayables 12,316,157 8,333,768 1,532,833 1,229,795Depositsreceived 2,618,006 1,911,152 – –

Accruals 15,445,771 9,907,379 204,000 280,500

Totalotherpayables 30,379,934 20,152,299 1,736,833 1,510,295 Total trade and other payables 267,008,538 138,004,594 1,736,833 1,510,295


[102]


24. TRADE AND OTHER PAYABLES (CONT’D)

(a) Trade payables

TheGroup’snormaltradecredittermsgrantedrangesfrom30to60days.

(b) Other payables

IncludedinaccrualsoftheGroupare:-

(i) anamountofRM7,013,030/-(2011:Nil)whichrepresentsaccrualsinrespectofdevelopmentcostsforadevelopmentprojectclosedoffduringthecurrentfinancialyear;and

(ii) an amount of RM4,359,258/- (2011: RM4,460,879)which represents accruals in respect ofconstructioncostsonaninvestmentproperty.

25. OTHER BANK BORROWINGS


Secured Bankers’acceptances 20,317,870 24,473,282 – –Termloans(Note22) 39,422,283 12,356,000 9,134,474 4,026,000

59,740,153 36,829,282 9,134,474 4,026,000Secured Bankoverdrafts 9,542,534 21,511,518 – 230,906

69,282,687 58,340,800 9,134,474 4,256,906

ThebankborrowingsoftheGroupandoftheCompanyaredenominatedinRinggitMalaysiaandbearinterestratesrangingfrom3.24%to10.25%(2011:3.47%to9.27%)and8.10%(2011:8.10%)perannumfortheGroupandfortheCompanyrespectively.

ThesecuritiesfortheotherbankborrowingsaredisclosedinNote22tothefinancialstatements.

26. REVENUE

Group Company 2012 2011 2012 2011 RM RM RM RM (Restated) Constructionrevenue 503,954,921 386,988,694 – –Salesofdevelopment/ completedproperties 52,738,697 46,012,968 – –Rentalincomefrom investmentproperties 5,014,285 5,122,940 – –Carparkincome 3,904,835 3,328,336 – –Interestincome 104,612 48,482 5,060,409 6,473,661Dividendincome – – 10,000,000 20,000,000

565,717,350 441,501,420 15,060,409 26,473,661

ANNUALREPORT2012

[103]


27. COST OF SALES


(Restated)

Costsofconstructioncontracts 465,758,627 356,735,458Costsofdevelopment/completedpropertiessold 40,587,811 35,487,573Costsofmaintenanceofinvestmentproperties 3,294,271 2,995,151

509,640,709 395,218,182

28. FINANCE COSTS


Bankoverdraftinterest 1,310,081 922,858 156,061 165,072Bankers’acceptanceinterest 1,076,720 1,327,702 – –Hirepurchaseinterest 266,941 369,253 – –Termloaninterest 16,006,470 11,408,141 5,123,053 8,810,046

18,660,212 14,027,954 5,279,114 8,975,118

29. PROFIT BEFORE TAXATION

Profitbeforetaxationisarrived:-


Aftercharging:- Allowanceforimpairment onotherinvestment – 4,000,000 – 4,000,000Auditors’remuneration -statutoryaudit -currentyear 147,000 135,800 24,000 20,000 -prioryear 6,400 – – –-non-statutory 13,650 8,800 11,750 8,800Depreciationofproperty, plantandequipment 3,814,739 4,670,771 1,446 1,446Directoperatingexpenses onincomegenerating investmentproperties 218,352 215,754 – –Employeebenefits expenses(Note33) 15,091,767 14,336,438 180,000 250,000Hireofplantandmachineries 4,349,038 4,906,629 – –Propertydevelopmentcost writtenoff – 274,806 – –Rentalexpense 496,704 514,550 – –


[104]


29. PROFIT BEFORE TAXATION (CONT’D)


Andcrediting:- Changeinfairvalueof investmentproperties 20,020,000 – – –Gainondisposalofproperty, plantandequipment 1,318,274 18,970,901 – –Gainondisposalofinventories – 220,200 – –Interestincome 377,770 286,623 – –Rentalincomefrom investmentproperties 33,960 62,760 – –

30. TAXATION


Income tax-currentyear 7,591,709 7,820,368 2,250,000 4,299,418-prioryear 413,765 307,376 195,808 –

8,005,474 8,127,744 2,445,808 4,299,418

Deferred tax-relatingtooriginationand reversaloftemporarydifferences (93,996) (192,382) – –

7,911,478 7,935,362 2,445,808 4,299,418

Areconciliationof incometaxexpenseapplicabletoprofitbeforetaxationatthestatutory incometaxratetoincometaxexpenseattheeffectiveincometaxrateoftheGroupandoftheCompanyareasfollows:-


Profitbeforetaxation 47,486,047 37,350,323 8,467,865 12,795,812

Taxatapplicablestatutory taxrateof25% 11,871,512 9,337,580 2,116,966 3,198,953

Taxeffectsarisingfrom:--non-taxableincome (5,005,000) (4,468,327) (250,000) –-non-deductibleexpenses 714,359 2,518,277 383,034 1,100,465-deferredtaxassetnotrecognised – 157,950 – –-underaccrualinprioryear 330,607 389,882 195,808 –

7,911,478 7,935,362 2,445,808 4,299,418

ANNUALREPORT2012

[105]


31. EARNINGS PER SHARE

(a) Basic earnings per share

ThebasicearningspershareiscalculatedbydividingtheprofitforthefinancialyearattributabletoordinaryequityholdersoftheCompanybytheweightedaveragenumberofordinaryshares in issueduringthefinancialyear.


Netprofitattributabletoownersoftheparent 39,929,590 30,423,570

Numberofsharesinissueasof1January 124,089,450 124,089,450Effectsof:- -sharesbuyback (256,519) (237,300)-privateplacement 5,851,233 –-exerciseofESOS 605,178 –

Weightedaveragenumberofordinarysharesinissue 130,289,342 123,852,150

Basicearningspershare(sen) 30.65 24.56

(b) Diluted earnings per share

Forthepurposeofcalculatingdilutedearningspershare,theprofitforthefinancialyearattributabletoordinaryequityholdersoftheCompanyandtheweightedaveragenumberofordinarysharesinissueduringthefinancialyearhavebeenadjustedfortheeffectsofdilutivepotentialordinarysharesfromexerciseofESOSandconversionofwarrants.TheadjustedweightedaveragenumberofordinarysharesistheweightedaveragenumberofordinarysharesinissueduringthefinancialyearplustheweightedaveragenumberofordinaryshareswhichwouldbeissuedonthefullconversionoftheoutstandingESOSandwarrantsintoordinaryshares.TheESOSandwarrantsaredeemedtohavebeenconvertedintoordinarysharesatthedateofissueoftheESOSandwarrants.Noadjustmentismadetothenetprofitforthecalculation.


Profitattributabletoownersoftheparent(RM) 39,929,590 30,423,570

Weightedaveragenumberofordinarysharesinissue 130,289,342 123,852,150AdjustmentforESOS * *Adjustmentforassumedconversionofwarrants * *

Adjustedweightedaveragenumberofordinarysharesinissueandissuable 130,289,342 123,852,150

Dilutedearningspershare(sen) 30.65 24.56

* Nottakenintoaccountinthecomputationofdilutedearningspershareastheeffectarisingfromassumedconversionofemployeeshareoptionschemeandwarrantsisanti-dilutive.


[106]


32. DIVIDENDS ON ORDINARY SHARES


Firstandfinaldividendof5senlessincometaxat25%in respectoffinancialyearended31December2011 5,068,190 –Firstandfinaldividendof4senlessincometaxat25%in respectoffinancialyearended31December2010 – 3,715,564

5,068,190 3,715,564

AttheforthcomingAnnualGeneralMeeting,afirstandfinaldividendof5sengrossperordinarysharelessincometaxat25%on137,285,950ordinaryshares(theoutstandingissuedandpaid-upsharecapitaloftheCompanywithvotingrightsasat31December2012,pendinganyconversionofwarrants,exerciseofemployeeshareoptionschemeandrepurchaseofsharesbytheCompanysubsequentto31December2012)ofRM1/-eachamountingtoRM5,148,223/-(3.75sennetperordinaryshare)inrespectofthecurrentfinancialyearended31December2012willbeproposedforshareholders’approval.Thefinancialstatementsforthecurrentfinancialyeardonotreflectthisproposeddividend.Suchdividend,ifapprovedbytheshareholders,willbeaccountedforintheshareholders’equityasanappropriationofretainedearningsinthefinancialyearending31December2013.

33. EMPLOYEE BENEFITS EXPENSES


Salaries,bonus,overtime andallowances 13,153,011 12,601,341 180,000 250,000Definedcontributionplan(“EPF”) 1,582,302 1,409,287 – –Otherstaffrelatedexpenses 356,454 325,810 – –

15,091,767 14,336,438 180,000 250,000

IncludedinemployeebenefitsexpensesareDirectors’remunerationasfollows:-


ExecutiveDirectors -Salariesandotheremoluments (includingestimatedmonetary valueofbenefits-in-kind) 1,595,462 1,509,937 – –-Fees – 80,000 – 80,000

1,595,462 1,589,937 – 80,000Non-ExecutiveDirectors -Fees 180,000 170,000 180,000 170,000

TotalDirectors’remuneration 1,775,462 1,759,937 180,000 250,000

ANNUALREPORT2012

[107]


33. EMPLOYEE BENEFITS EXPENSES (CONT’D)

ThenumberofDirectorsoftheGroupwhosetotalremunerationareanalysedintobandsofRM100,000/-isasfollows:-

Number of Directors 2012 2011 RM RM

ExecutiveDirectors LessthanRM100,000/- – –RM100,001/-toRM200,000/- – 2RM200,001/-toRM300,000/- 3 1RM300,001/-toRM400,000/- – 1RM400,001/-toRM500,000/- – –RM500,001/-toRM600,000/- – 1RM600,001/-toRM700,000/- – –RM700,001/-toRM800,000/- – –RM800,001/-toRM900,000/- 1 –

4 5Non-ExecutiveDirectors LessthanRM100,000/- 4 4

Total 8 9

34. OPERATING LEASE ARRANGEMENTS

(a) The Group as lessee

TheGrouphasenteredintoseveraltenancyagreementsfortherentalofpremises,resultinginfuturerentalcommitmentswhichmay,subjecttocertaintermsintheagreements,berevisedaccordinglyoruponitsmaturitybasedonprevailingmarketrates.

TheGroup also leases variouspremises under cancellable operating lease agreements. TheGroup isrequiredtogiveaone-monthnoticefortheterminationofthoseagreements.

(b) The Group as lessor

TheGrouphas entered into non-cancellable operating lease agreements on its investment propertiesportfolio.Thesesleaseshaveremainingnon-cancellableleasetermsofbetweenonetothreeyears.

Thefutureminimumleasepaymentsreceivableundernon-cancellableoperatingleasecontractedforasattheendofthereportingperiodbutnotrecognisedasreceivablesareasfollows:-


Notlaterthanoneyear 7,472,754 4,851,906Laterthanoneyearandnotlaterthanfiveyears 25,531,879 4,020,634Morethanfiveyears 25,626,031 –

58,630,664 8,872,540


[108]


35. CAPITAL COMMITMENT


Capitalexpenditure Approvedandcontractedfor:- -Building-in-progress 691,600 1,232,000

Approvedbutnotcontractedfor:- -Investmentpropertyunderconstruction 37,927,006 66,677,973

36. CONTINGENT LIABILITIES


Guaranteesgiventofinancialinstitution inrespectoffacilitiesgrantedto subsidiarycompanies – – 414,450,000 361,450,000

Guaranteesissuedinfavourof thirdparties 39,209,341 40,181,738 – –

37. RELATED PARTY TRANSACTIONS

(a) Identification of Related Parties

PartiesareconsideredtoberelatedtotheGroupiftheGrouphastheability,directlyorindirectly,tocontrolthepartyorexercisesignificantinfluenceoverthepartyinmakingfinancialandoperationaldecisions,orviceversa,orwheretheGroupandthepartyaresubjecttocommoncontrol.Relatedpartiesmaybeindividualsorotherentities.

Ingeneral,relatedpartiesoftheGroupinclude:-(i) Subsidiarycompanies;(ii) AcompanyinwhichdirectorsoftheCompanyhaveinterest;(iii) Acorporateshareholderofasubsidiarycompany;and(iv) Keymanagementpersonnel,comprisepersons(includingthedirectorsoftheCompany)whohave

theauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheCompanydirectlyorindirectly.

ANNUALREPORT2012

[109]


37. RELATED PARTY TRANSACTIONS (CONT’D)

(b) Significant related party transactions and balances

Significant relatedparty transactionsother thandisclosedelsewhere in thefinancial statementsareasfollows:-


Transactions with:-SubsidiariesDividendsreceived/receivable – – 10,000,000 20,000,000Interestincomereceived/receivable – – 4,955,797 6,473,661

Companies in which Directors of the Company have interestContractrevenue received/receivable 9,646,878 9,163,166 – –Rentalreceived/receivable 24,000 36,000 – –Rentalpaid (96,000) (96,000) – –

SignificantoutstandingbalanceswithrelatedpartiesattheendofthereportingperiodareasdisclosedinNote12(a),Note16andNote24(b)tothefinancialstatements.

(c) Key management personnel remuneration

Theremunerationofthekeymanagementpersonnelduringthefinancialyearisasfollows:-


Directors of the Company and subsdiary companiesShort-termemploymentbenefits (includingestimated benefits-in-kind) 2,098,670 1,668,878 – 80,000Postemployementbenefits 91,708 76,878 – –

2,190,378 1,745,756 – 80,000

ExecutiveDirectorsoftheGroupandoftheCompanyandothermembersofkeymanagementhavebeengrantedthefollowingnumberofoptionsunderCBHB–ESOS:-


At1stJanuary 2,725,000 2,725,000Granted 1,275,000 –Exercised (2,500,000) –Lapsed (500,000) –

At31stDecember 1,000,000 2,725,000


[110]


38. SEGMENT REPORTING

TheinformationreportedtotheGroupExecutiveCommittee,astheGroup’schiefoperatingdecisionmaker,inmakingdecisionstoallocateresourcestosegmentsandtoassesstheirperformanceisbasedonthenatureoftheindustry(businesssegments)oftheGroup.

Measurement of reportable segments

Segmentinformationispreparedinconformitywiththeaccountingpoliciesadoptedforpreparingandpresentingtheconsolidatedfinancialstatements.

Transactionsbetweenreportablesegmentsaremeasuredonthebasisthatissimilartothoseexternalcustomers.

Segmentstatementsofcomprehensiveincomeareprofitearnedorlossincurredbyeachsegmentwithoutallocationofcentraladministrativecosts,non-operatinginvestmentrevenue,financecostsandincometaxexpense.Therearenosignificantchangesfrompreviousfinancialyearinthemeasurementmethodsusedtodeterminereportedsegmentstatementsofcomprehensiveincome.

AlltheGroup’sassetsareallocatedtoreportablesegmentsotherthanassetsusedcentrallyfortheGroup,currentanddeferred taxassets.Jointlyusedassetsareallocatedon thebasisof the revenuesearnedby individualsegments.

AlltheGroup’sliabilitiesareallocatedtoreportablesegmentsotherthanliabilitiesincurredcentrallyfortheGroup,currentanddeferredtaxliabilities.Jointlyincurredliabilitiesareallocatedinproportiontothesegmentassets.

Business segments

Formanagementpurposes,theGroupisorganisedintobusinessunitsbasedontheirproductsandservicesprovided.TheGroupisorganisedintothree(3)mainbusinesssegmentsasfollows:-

(i) Construction–generalconstruction,mechanicalandelectricalengineeringservices;

(ii) Investmentholding–investmentinshares,propertiesandotherinvestmentactivities;and

(iii) Propertydevelopment–developmentofresidentialandcommercialproperties.

TheDirectorsareoftheopinionthatallinter-segmenttransactionshavebeenenteredintothenormalcourseofbusinessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromthatobtainableintransactionswithunrelatedparties.Inter-segmentpricingisdeterminedbasedonthetermsmutuallyagreedbetweenthecompaniesconcerned.

Managementmonitorstheoperatingresultsofitsbusinessunitsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonoperatingprofitorloss.Groupfinancing(includingfinancecosts)andincometaxesaremanagedonagroupbasisandarenotallocatedtooperatingsegments.

Geographical segments

NoinformationispreparedonthegeographicalsegmentastheGroupprincipallyoperateswithinMalaysia.

ANNUALREPORT2012

[111]


38. SEGMENT REPORTING (CONT’D)

Investment Property Construction holding development Eliminations Group 2012 RM RM RM RM RM

Revenue Externalcustomer 428,299,507 9,023,732 52,738,697 75,655,414 565,717,350 Inter-segment revenue 220,199,324 14,955,797 – (235,155,121) –

Totalrevenue 648,498,831 23,979,529 52,738,697 (159,499,707) 565,717,350

Results Segmentresults 33,470,013 18,864,950 9,153,798 (11,860,310) 49,628,451

Depreciationof property,plant andequipment (3,627,728) (144,396) (42,615) – (3,814,739) Changesinfair valueof investment properties 400,000 19,620,000 – – 20,020,000 Shortterm accumulating compensated absences (56,507) (3,025) (5,691) – (65,223) Financecosts (15,454,359) (5,755,928) (852) 2,550,927 (18,660,212) Interestincome 361,701 2,568 13,501 – 377,770 Taxexpense (4,135,965) (3,705,055) (2,320,458) 2,250,000 (7,911,478)

Consolidated profitaftertaxation 39,574,569

Capitalexpenditures:- Additiontoproperty, plantandequipment 713,083 9,670 12,590 – 735,343Additiontoinvestment properties – 28,750,967 – (332,210) 28,418,757Additiontolandheld forproperty development – – 1,565,288 (278,021) 1,287,267Additiontoproperty developmentcosts – – 53,110,206 (1,794,641) 51,315,565

713,083 28,760,637 54,688,084 (2,404,872) 81,756,932


[112]



Investment Property Construction holding development Eliminations Group2012 RM RM RM RM RM Assets Segmentassets 639,959,061 401,911,584 101,357,695 (257,296,964) 885,931,376Otherinvestments 54,000 4,000,000 – (4,000,000) 54,000Goodwill 30,799,809 2,423,677 380,878 – 33,604,364Deferredtaxassets 229,747 – – – 229,747Taxrecoverable 271,277 1,064,124 – – 1,335,401 Total assets 671,313,894 409,399,385 101,738,573 (261,296,964) 921,154,888 Liabilities Segmentliabilities 321,765,997 60,932,384 59,020,525 (173,118,290) 268,600,616Borrowings 223,510,186 93,365,088 19,480,088 – 336,355,362Deferredtaxliabilities 225,233 77,180 2,442 – 304,855Taxpayable 77,246 102,853 552,376 – 732,475 Total liabilities 545,578,662 154,477,505 79,055,431 (173,118,290) 605,993,308

ANNUALREPORT2012

[113]



Investment Property Construction holding development Eliminations Group 2011 RM RM RM RM RM

Revenue Externalcustomer 394,921,809 8,499,758 46,012,968 (7,933,115) 441,501,420Inter-segment revenue 57,488,126 26,425,179 – (83,913,305) –

Totalrevenue 452,409,935 34,924,937 46,012,968 (91,846,420) 441,501,420

ResultsSegmentresults 46,226,251 26,761,327 8,119,058 (25,384,334) 55,722,302

Depreciationof property,plant andequipment (4,479,197) (144,811) (46,763) – (4,670,771)Shortterm accumulating compensated absences 38,122 2,001 – – 40,123Financecosts (8,313,916) (9,373,891) (2,800) 3,662,653 (14,027,954)Interestincome 258,391 1,707 26,525 – 286,623Taxexpense (5,266,092) (5,517,215) (2,152,055) 5,000,000 (7,935,362)

Consolidated profitaftertaxation 29,414,961

Capitalexpenditures:- Additiontoproperty, plantandequipment 2,582,243 97,680 15,047 – 2,694,970Additiontolandheld forproperty development – – 1,108,646 (931,895) 176,751Additiontoproperty developmentcosts – – 40,742,892 (606,259) 40,136,633


[114]



Investment Property Construction holding development Eliminations Group2011 RM RM RM RM RM

AssetsSegmentassets 419,062,878 324,540,545 119,933,754 (268,222,400) 595,314,777Otherinvestments 54,000 4,000,000 – (4,000,000) 54,000Goodwill 33,550,094 32,988 21,282 – 33,604,364Deferredtaxassets 464,638 – – – 464,638Taxrecoverable – 1,385,857 – – 1,385,857

Total assets 453,131,610 329,959,390 119,955,036 (272,222,400) 630,823,636

LiabilitiesSegmentliabilities 203,875,649 47,643,332 75,327,660 (183,455,112) 143,391,529Borrowings 126,449,541 64,530,906 27,527,093 – 218,507,540Deferredtaxliabilities 546,939 75,194 11,609 – 633,742Taxpayable 881,406 105,125 329,509 – 1,316,040

Total liabilities 331,753,535 112,354,557 103,195,871 (183,455,112) 363,848,851

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

TheGroupandtheCompanyseektomanageeffectivelythevariousrisksnamelycreditrisk,liquidityriskandinterestraterisk,towhichtheGroupandtheCompanyareexposedtointheirdailyoperations.

TheGroup’sandtheCompany’sexposuretothefinancialrisksandtheobjectives,policiesandprocessesputinplacetomanagetheserisksarediscussedbelow:-

(a) Credit Risk

Credit risk is theriskof lossthatmayariseonoutstandingfinancial instrumentsshouldacounterpartydefaultonitsobligations.

TheGroup’sexposuretocreditriskprimarilyarisesfromitstradeandotherreceivableswhiletheCompany’sexposuretocreditriskprimarilyarisesfromamountduefromsubsidiarycompanies.Themaximumriskassociatedwith recognised financial assets is the carrying amounts aspresented in the consolidatedstatementoffinancialpositionandstatementoffinancialpositionrespectively.

CreditriskoftheGroupiscontrolledbytheapplicationofcreditapprovals,limitsandmonitoringprocedures.CreditrisksareminimisedandmonitoredbystrictlylimitingtheGroup’sassociationtobusinesspartnerswithhighcreditworthiness.TradereceivablesaremonitoredonanongoingbasisviatheGroup’smanagementreportingprocedures.

TheGroupdoesnothaveanysignificantexposuretoanyindividualcustomerorcounterpartynordoesithaveanymajorconcentrationofcreditriskrelatedtoanyfinancialinstrumentswhilsttheCompanyhassignificantexposureandmajorconcentrationofcreditriskrelatingtoamountduefromsubsidiarycompanies.

TheGroupandtheCompanymanagetheirdebtmaturityportfolio,operatingcashflowsandtheavailabilityoffundingsoastoensurethatallrefinancing,repaymentandfundingneedsaremet.Aspartofitsoverallprudentliquiditymanagement,theGroupandtheCompanymaintainsufficientlevelsofcashtomeetitsworkingcapitalrequirements.Inaddition,theGroupandtheCompanystrivetomaintainavailablebankingfacilitiesofareasonableleveltotheiroveralldebtposition.

ANNUALREPORT2012

[115]


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

(a) Credit Risk (Cont’d)

(i) Financial assets that are neither past due nor impaired

InformationregardingtradereceivablesthatareneitherpastduenorimpairedaredisclosedinNote12tothefinancialstatements.Fixeddepositsplacedwithlicensedbanksareplacedwithreputablelicensedfinancialinstitutions.

(ii) Financial assets that are past due but not impaired

InformationregardingtradereceivablesthatarepastduebutnotimpairedisdisclosedinNote12tothefinancialstatements.

(iii) Inter-company balances

TheCompanyprovidesadvancestosubsidiarycompanies.ThemaximumexposuretocreditriskisrepresentedbyitscarryingamountsasdisclosedinNote16inthestatementoffinancialpositionasattheendofthefinancialyear.

Asattheendofthereportingperiod,therewasnoindicationthattheadvancestosubsidiarycompaniesare not recoverable. TheCompanydoes not specificallymonitor the ageingof the advances tosubsidiarycompanies.

(iv) Financial guarantees

TheCompanyprovidessecuredcorporateguaranteestobanksinrespectofbankingfacilitiesgrantedtosubsidiarycompaniesandbankguaranteesinfavourofthirdpartiess.

Asattheendofthereportingperiod,thefairvalueofthefinancialguaranteesisnegligibleastheprobabilityofthefinancialguaranteesbeingcalleduponisremoteduetotheoutstandingborrowingsinthesubsidiarycompaniesareadequatelysecuredbyassetsasdisclosedinNote5,Note9andNote13respectively.Shouldthesubsidiarycompaniesdefaultanyloanrepayments,theproceedsfromtherealisationoftheseassetstogetherwiththecorporateguaranteebytheCompanywillbeabletosatisfytheoutstandingdebts.Attheendofthereportingperiod,itwasnotprobablethatthecounterpartytothefinancialguaranteecontractwillclaimunderthecontract.Consequently,thefairvalueforthecorporateguaranteeisRMNil.

(b) Liquidity Risk

LiquidityriskistheriskthattheGrouportheCompanywillencounterdifficultyinmeetingfinancialobligationsduetoshortageoffunds.TheGroup’sandtheCompany’sexposuretoliquidityriskarisesprimarilyfrommismatchesofthematuritiesoffinancialassetsandfinancialliabilities.TheGroup’sandtheCompany’sobjective is tomaintainabalancebetweencontinuityof fundingandflexibility throughuseofstand-byfacilities.

TheGroupandtheCompanymanageitsoperatingcashflowsbymaintainingsufficientlevelofcashtomeetitsworkingcapitalrequirementsandavailabilityoffundingthroughanadequateamountofcreditfacilities.


[116]



(b) Liquidity Risk (Cont’d)

Analysisoffinancialinstrumentsbyremainingcontractualmaturities

ThetablebelowsummarisesthematurityprofileoftheGroup’sandtheCompany’sliabilitiesattheendofthereportingperiodbasedoncontractualundiscountedrepaymentobligations.

Contractual On demand Carrying undiscounted or within One to Over five amount cash flows one year five years yearsGroup RM RM RM RM RM

2012Financial liabilitiesTradeand other payables 267,008,538 267,008,538 240,933,282 26,075,256 –Hirepurchase payables 2,003,516 2,203,426 1,651,477 551,949 –Otherbank borrowings 29,860,404 29,860,404 29,860,404 – –Termloans 304,491,442 472,822,885 39,442,283 179,317,266 254,063,336 603,363,900 771,895,253 311,887,446 205,944,471 254,063,336

2011Financial liabilitiesTrade and other payables 138,004,594 138,004,594 116,894,872 21,109,722 –Hirepurchase payables 5,332,552 5,820,233 3,616,807 2,203,426 –Otherbank borrowings 45,984,800 45,984,800 45,984,800 – –Termloans 167,190,188 219,832,874 12,356,000 105,741,090 101,735,784

356,512,134 409,642,501 178,852,479 129,054,238 101,735,784

ANNUALREPORT2012

[117]



(b) Liquidity Risk (Cont’d)

Analysisoffinancialinstrumentsbyremainingcontractualmaturities(Cont’d)

Contractual On demand Carrying undiscounted or within One to Over five amount cash flows one year five years yearsCompany RM RM RM RM RM

2012Financial liabilitiesOtherpayables andaccruals 1,736,833 1,736,833 1,736,833 – –Termloan 60,696,474 60,696,474 9,134,474 34,848,000 16,714,000Bankoverdraft – – – – –

62,433,307 62,433,307 10,871,307 34,848,000 16,714,000

2011 Financial liabilitiesOtherpayables andaccruals 1,510,295 1,510,295 1,510,295 – –Termloan 64,300,000 64,300,000 4,026,000 34,848,000 25,426,000Bankoverdraft 230,906 230,906 230,906 – –

66,041,201 66,041,201 5,767,201 34,848,000 25,426,000

(c) Interest Rate Risk

InterestrateriskistheriskthatthefairvalueorfuturecashflowsoftheGroup’sandoftheCompany’sfinancialinstrumentswillfluctuatebecauseofchangesinmarketinterestrates.

TheGroup’sandtheCompany’sprimaryinterestrateriskrelatetointerest-bearingfinancialinstrumentswhichincludehirepurchasepayables,bankoverdrafts,otherbankborrowingsandtermloans.Theinvestmentsinfinancialassetsaremainlyshort-terminnatureandhavebeenmostlyplacedinfixeddepositswhichyieldbetterreturnsthancashatbank.

TheGroupandtheCompanymanagetheirinterestrateexposurebymaintainingaprudentmixoffixedandfloatingratesborrowings.TheGroupandtheCompanyactivelyreviewtheirdebtportfolio,takingintoaccounttheinvestmentholdingperiodandnatureoftheirassets.Thisstrategyallowsittocapitaliseoncheaperfundinginalowinterestrateenvironmentandachieveacertainlevelofprotectionagainstratehikes.Asat31December2012,theGroupandtheCompanyhavenotenteredintoanyhedginginstrumentsarrangementtominimisetheirexposuretointerestratevolatility.

Sensitivityanalysisforinterestraterisk

Iftheinterestratehadbeen50basispointhigher/lowerandallothervariablesheldconstant,theGroup’sprofitandtheCompany’sprofitforthefinancialyearended31December2012woulddecrease/increasebyRM1,574,360/-andRM243,980/-respectivelyasaresultofexposuretofloatingrateborrowings.


[118]



(c) Interest Rate Risk (Cont’d)

Attheendofthereportingperiod,theinterestrateprofileoftheinterest-bearingfinancialinstrumentsisasfollows:-

Effective Within 1 - 5 > 5 Group Interest Rate 1 Year Years Years Total % RM RM RM RM

2012Financial assetFixeddeposits placedwith licensed banks 1.26-2.85 19,479,918 – – 19,479,918

Financial liabilitiesHirepurchase payables 2.45-3.60 1,510,895 492,621 – 2,003,516Termloans 5.85-10.25 39,422,283 132,208,773 132,860,386 304,491,442Otherbank borrowings 3.24-8.00 29,860,404 – – 29,860,404

2011 Financial assetFixeddeposits placedwith licensed banks 1.26-2.85 13,121,810 – – 13,121,810

Financial liabilitiesHirepurchase payables 2.45-3.60 3,271,679 2,060,873 – 5,332,552Termloans 5.50-9.27 12,356,000 104,416,940 50,417,248 167,190,188Otherbank borrowings 3.27-8.00 45,984,800 – – 45,984,800

ANNUALREPORT2012

[119]



(c) Interest Rate Risk (Cont’d)

Effective Within 1 - 5 > 5 Company Interest Rate 1 Year Years Years Total % RM RM RM RM

2012Financial assetFixeddeposits placedwith licensed bank 1.75 2,766,000 – – 2,766,000

Financial liabilityTermloan 8.10 9,134,474 34,848,000 16,714,000 60,696,474

2011Financial assetFixeddeposits placedwith licensed bank 1.75 2,766,000 – – 2,766,000

Financial liabilitiesTermloan 8.10 4,026,000 34,848,000 25,426,000 64,300,000Bankoverdraft 8.25 230,906 – – 230,906


[120]


40. FINANCIAL INSTRUMENTS

(a) Classification of Financial Instruments

Financialassetsandfinancialliabilitiesaremeasuredonanongoingbasiseitheratfairvalueoratamortisedcost.Theprincipalaccountingpolicies inNote2.3tothefinancialstatementsdescribehowclassesoffinancialinstrumentsaremeasured,andhowincomeandexpenses,includingfairvaluegainsandlosses,arerecognised.

Thefollowingtableanalysesthefinancialassetsandliabilitiesinthestatementsoffinancialpositionbytheclassoffinancialinstrumentstowhichtheyareassigned,andthereforebythemeasurementbasis.

Financial liabilities Loans and Available at amortised Group receivables for sales cost Total RM RM RM RM

2012Financial assetsOtherinvestment – 54,000 – 54,000Operatingfinancialasset 264,546,124 – – 264,546,124Tradeandotherreceivables* 230,913,870 – – 230,913,870Fixeddepositsplacedwith licensedbanksandshort terminvestmentwith financialinstitution 19,418,333 61,585 – 19,479,918Cashandbankbalances 5,266,633 – – 5,266,633

Total carrying amount 520,144,960 115,585 – 520,260,545

Financial liabilitiesTradeandotherpayables – – 267,008,538 267,008,538Hirepurchasepayables – – 2,003,516 2,003,516Otherbankborrowings – – 29,860,404 29,860,404Termloans – – 304,491,442 304,491,442

Total carrying amount – – 603,363,900 603,363,900

2011 Financial assetsOtherinvestment – 54,000 – 54,000Operatingfinancialasset 50,474,775 – – 50,474,775Tradeandotherreceivables* 161,442,954 – – 161,442,954Fixeddepositsplacedwith licensedbanksandshort terminvestmentwith financialinstitution 13,062,085 59,725 – 13,121,810Cashandbankbalances 3,595,597 – – 3,595,597

Total carrying amount 228,575,411 113,725 – 228,689,136

Financial liabilitiesTradeandotherpayables – – 138,004,594 138,004,594Hirepurchasepayables – – 5,332,552 5,332,552Otherbankborrowings – – 45,984,800 45,984,800Termloans – – 167,190,188 167,190,188 Total carrying amount – – 356,512,134 356,512,134

* excludeprepayment

ANNUALREPORT2012

[121]


40. FINANCIAL INSTRUMENTS (CONT’D)

(a) Classification of Financial Instruments (Cont’d)

Financial liabilities Loans and Available at amortised Company receivables for sales cost Total RM RM RM RM

2012Financial assets Amountduefrom subsidiarycompanies 125,029,852 – – 125,029,852Fixeddepositsplacedwith licensedbanks 2,766,000 – – 2,766,000Cashandbankbalances 552,587 – – 552,587

Total carrying amount 128,348,439 – – 128,348,439

Financial liabilitiesOtherpayables,andaccruals – – 1,736,833 1,736,833Termloan – – 60,696,474 60,696,474Bankoverdraft – – – –

Total carrying amount – – 62,433,307 62,433,307

2011Financial assetsAmountduefromsubsidiary companies 114,260,337 – – 114,260,337Fixeddepositsplacedwith licensedbanks 2,766,000 – – 2,766,000Cashandbankbalances 69,719 – – 69,719 Total carrying amount 117,096,056 – – 117,096,056

Financial liabilitiesOtherpayables,andaccruals – – 1,510,295 1,510,295Termloan – – 64,300,000 64,300,000Bankoverdraft – – 230,906 230,906 Total carrying amount – – 66,041,201 66,041,201

* excludeprepayment


[122]


40. FINANCIAL INSTRUMENTS (CONT’D)

(b) Fair values of Financial Instruments

ThemethodsandassumptionsusedtoestimatefairvalueofthefollowingclassesoffinancialassetsandfinancialliabilitiesoftheGroupandoftheCompanyareasfollows:-

(i) Cashandcashequivalents,tradeandotherreceivables,depositsandprepayment,tradeandotherpayables,depositsreceivedandaccruals,otherbankborrowings,amountduefrom/(to)subsidiarycompanies,amountduefrom/(to)contractcustomers.

Thecarryingamountsapproximate fairvaluesdueto therelativelyshort termmaturitiesof thesefinancialassetsandfinancialliabilities.

(ii) Transferablecontributionrights

Thecarryingamountapproximatesfairvalue.

(iii) Floatingratestermloans

Thecarryingamountoffloatingratestermloansapproximatestheirfairvaluesastheloanswillberepricedtomarketinterestrateonorneartheendofthereportingperiod.

(iv) Hirepurchasepayables

Thefairvalueisestimatedusingdiscountedcashflowanalysis,basedoncurrentlendingratesforsimilartypesofborrowingarrangements.

(c) Fair Values Hierarchy

Thefollowingtableprovidesananalysisoffinancial instrumentsthataremeasuredsubsequenttoinitialrecognitionatfairvalue,groupedintoLevel1to3basedonthedegreetowhichthefairvalueisobservable:-

(i) Level1–Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities;

(ii) Level2–InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asprices)orindirectly(i.e.derivedfromprices);and

(iii) Level3–Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

Asattheendofthereportingperiod,theanalysisofthefairvaluehierarchyoftheGroupisasfollows:-

Level 1 Level 2 Level 3 TotalFinancial assets RM RM RM RM

Group

2012 Available-for-salefinancialassets -unquotedshortterminvestment – 61,585 – 61,585

2011 Available-for-salefinancialassets -unquotedshortterminvestment – 59,725 – 59,725

Duringthefinancialyearended31December2012and2011,therewasnotransferbetweenthefairvaluemeasurementhierarchy.

ANNUALREPORT2012

[123]


41. CAPITAL MANAGEMENT

TheGroupandtheCompanymanagetheircapitalstructureandmakesadjustmenttoit,inlightofchangesineconomicconditions.Tomaintainoradjustcapitalstructure,theCompanyanditssubsidiarycompaniesmayadjustthedividendpaymenttotheshareholders,returncapitaltoshareholdersorissuenewshares.

TheGroupandtheCompanyarenotsubjecttoanyexternallyimposedcapitalrequirements.

TheGroupandtheCompanymonitorcapitalusingagearingratio,whichisnetdebtsdividedbytotalcapitalplusnetdebts.Netdebtscomprisehirepurchasepayables,bankoverdrafts,otherbankborrowingandtermloanslesscashandbankbalanceswhilsttotalcapitalistheshareholders’fundsoftheGroupandoftheCompany.

ThegearingratiofortheGroupandfortheCompanyasat31December2012and2011areasfollows:-


BorrowingsHirepurchasepayables 2,003,516 5,332,552 – –Bankoverdrafts 9,542,534 21,511,518 – 230,906Termloans 304,491,442 167,190,188 60,696,474 64,300,000Otherbankborrowing 20,317,870 24,473,282 – –

336,355,362 218,507,540 60,696,474 64,530,906Less: Cashandbankbalances (5,266,633) (3,595,597) (552,587) (69,719)

Net debts 331,088,729 214,911,943 60,143,887 64,461,187

Equity 315,161,580 266,974,785 162,744,676 148,208,393

Total equity plus net debts 646,250,309 481,886,728 222,888,563 212,669,580

Debt-to-equity ratio 0.51 0.45 0.27 0.30

TheGroupisalsorequiredtocomplywiththedisclosureandnecessarycapitalrequirementsasprescribedintheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad.


[124]


42. SIGNIFICANT EVENTS

(a) On16May2012,CrestBuilderInternationalSdn.Bhd.,awhollyownedsubsidiarycompanyoftheCompanyacquired51,000ordinarysharesofRM1/-eachrepresenting51%oftheissuedandpaid-upsharecapitalofLandasanBayuSdn.Bhd.(“LandasanBayu”)foracashconsiderationofRM51,000/-.Subsequently,LandasanBayuwastransferredtoarelatedcompany,CrestBuilderSdn.Bhd.on22June2012.Asaresult,LandasanBayubecameadirectsubsidiarycompanyoftheGroup;

(b) On1June2012,CrestBuilderInternationalSdn.Bhd.,awhollyownedsubsidiarycompanyoftheCompanyacquired51,000ordinarysharesofRM1/-eachrepresenting51%oftheissuedandpaid-upsharecapitalofIntanSekitarSdn.Bhd.(“IntanSekitar”)foracashconsiderationofRM51,000/-.Asaresult,IntanSekitarbecameadirectsubsidiarycompanyoftheGroup;and

(c) On18October2012,VerticalSuccessSdn.Bhd.,awhollyownedsubsidiarycompanyoftheCompanyhadsignedamemorandumofunderstandingwithUNITARinrelationtotheTenancyatTierraCrest.

43. PRIOR YEAR ADJUSTMENTS

(a) Prioryearadjustments

AsdisclosedinNote10tothefinancialstatements,thesubsidiarycompany,UnitapahSdn.Bhd.(“Unitapah”)hadenteredintoaconcessionagreementwiththeGovernmentofMalaysiaandUniversitiTeknologiMara(“UiTM”)on4May2010.TheconstructionandmaintenanceofthefacilitiesandinfrastructurefallwithinthescopeofICInterpretation12–ServiceConcessionArrangements.Theconstructionworkofthefacilitieshadsubsequentlysubcontractedtoanotherwholly-ownedsubsidiaryoftheCompany,CrestBuilderSdn.Bhd. (“CBSB”).Duringthefinancialyear, themanagementnotedthe followingaccountingerrors in thefinancialstatementsforthefinancialyearended31December2011:-

i. theamountduefromUiTMwaserroneouslyclassifiedasamountduefromcontractcustomerintheconsolidatedstatementoffinancialpositionforthefinancialyearended2011;

ii. theintragrouptransactionsbetweenUnitapahandCBSBwerenoteliminatedduetotheindirectnatureofthetransactionsandtherelevantaccountinginterpretationtobeappliedtothesaidtransactionswereomittedintheconsolidatedstatementofcomprehensiveincomeforthefinancialyearended2011;and

iii certaincomparativefigureshavebeenreclassifiedinordertoconformwiththepresentationinthecurrentfinancialyear.

Accordingly,thefinancialstatementforthefinancialyearended31December2011hasbeenrestatedtocorrecttheerrors.TheeffectsoftheadjustmentsaredisclosedinNote43(b)tothefinancialstatements.

ANNUALREPORT2012

[125]


43. PRIOR YEAR ADJUSTMENTS (CONT’D)

(b) Comparative figures

Thefollowingcomparativefigureshavebeenrestatedtoincorporatetheprioryearadjustments:-

As previously As stated restated 2011 Reclassification 2011Group Note RM RM RM

Consolidated Statement of Financial Position

Non-current assets Operatingfinancialasset 43(a)(i) – 50,474,775 50,474,775Tradereceivables 43(a)(iii) – 24,194,771 24,194,771

Current assets Tradereceivables 43(a)(iii) 161,572,288 (22,201,056) 139,371,232Amountduefromcontract 43(a)(i)and customers 43(a)(iii) 228,787,455 (52,468,490) 176,318,965 Non-current liability Tradepayables 43(a)(iii) – 21,109,722 21,109,722 Current liabilities Tradeandotherpayables 43(a)(iii) 129,977,679 (13,082,807) 116,894,872Amountduetocontract customers 43(a)(iii) 13,413,850 (8,026,915) 5,386,935

Consolidated Statement of Comprehensive IncomeRevenue 43(a)(ii) 499,849,332 (58,347,912) 441,501,420

Costofsales 43(a)(ii) (453,566,094) 58,347,912 (395,218,182)

Consolidated Statement of Cash Flows

Operating activities Operatingfinancialasset 43(a)(i) – (50,474,775) (50,474,775) Accruedbillingsinrespect ofpropertydevelopment 43(a)(iii) – (1,034,041) (1,034,041) Amountduefromcontract 43(a)(i)and customers 43(a)(iii) (61,524,546) 52,468,490 (9,056,056) Progressbillingsinrespect ofpropertydevelopment 43(a)(iii) – (5,039,094) (5,039,094) Amountduetocontract customers 43(a)(iii) (2,845,301) 4,079,420 1,234,119


[126]


43. PRIOR YEAR ADJUSTMENTS (CONT’D)

(b) Comparative figures (Cont’d)

As previously As stated restated 2011 Reclassification 2011Company Note RM RM RM

Statement of Cash Flows

Investing activities Decreaseinamountdue fromsubsidiarycompanies 43(a)(iii) – 38,861,683 38,861,683 Decreaseinamountdue tosubsidiarycompanies 43(a)(iii) – (223,000) (223,000)

Financing activities Decreaseinamountdue fromsubsidiarycompanies 43(a)(iii) 38,861,683 (38,861,683) – Decreaseinamountdue tosubsidiarycompanies 43(a)(iii) (223,000) 223,000 –

(c) ThecomparativefiguresoftheGroupandoftheCompanyhavebeenauditedbyanotherfirmofcharteredaccountantsotherthanMessrsBakerTillyMonteiroHeng.

ANNUALREPORT2012

[127]

SUPPLEMENTARY INFORMATION ON THE DISCLOSURE OF REALISED AND UNREALISED PROFITS OR LOSSES

On25March2010,BursaMalaysiaSecuritiesBerhad(“BursaMalaysia”)issuedadirectivetoalllistedissuerspursuanttoParagraphs2.06and2.23ofBursaMalaysiaMainMarketListingRequirements.Thedirective requiresall listedissuerstodisclosethebreakdownoftheretainedprofitsoraccumulatedlossesasattheendofthereportingperiod,intorealisedandunrealisedprofitsorlosses.

On20December2010,BursaMalaysiafurtherissuedguidanceonthedisclosureandtheformatrequired.

Pursuanttothedirective,theamountsofrealisedandunrealisedprofitsor lossesincludedintheretainedprofitsorlossesoftheGroupandoftheCompanyasat31Decemberareasfollows:-


Total retained profits:-realised 114,285,747 101,297,052 20,884,735 19,930,868-unrealised 58,783,607 38,669,612 – –

173,069,354 139,966,664 20,884,735 19,930,868

Less:Consolidationadjustments 1,045,638 (713,072) – –

Totalretainedearnings 174,114,992 139,253,592 20,884,735 19,930,868

Thedeterminationof realised andunrealisedprofits or losses is basedon theGuidanceofSpecialMatterNo. 1,Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements,issuedbyMalaysianInstituteofAccountantson20December2010.

ThedisclosureofrealisedandunrealisedprofitsorlossesaboveissolelyforcomplyingwiththedisclosurerequirementsstipulatedinthedirectiveofBursaMalaysiaandshouldnotbeappliedforanyotherpurposes.

SUPPLEMENTARYINFORMATION


[128]

We,TENGKU DATO’ SULAIMAN SHAH BIN TENGKU ABDUL JALIL SHAHandYONG SOON CHOW,beingtwoofthedirectorsofCREST BUILDER HOLDINGS BERHAD,statethat,intheopinionofthedirectors,thefinancialstatementssetoutonpages46to126aredrawnupinaccordancewiththeFinancialReportingStandardsandtheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2012andoftheirfinancialperformanceandcashflowsforthefinancialyearthenended.

Thesupplementaryinformationsetoutonpage127havebeenpreparedinaccordancewiththeGuidanceofSpecialMatterNo.1,Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements,issuedbytheMalaysianInstituteofAccountants.

OnbehalfoftheBoard,

TENGKU DATO’ SULAIMAN SHAH BIN TENGKU ABDUL JALIL SHAHDirector

YONG SOON CHOWDirector

KualaLumpur

Date:26April2013

I,GOH SIN HUAT,beingtheofficerprimarilyresponsibleforthefinancialmanagementofCREST BUILDER HOLDINGS BERHAD,dosolemnlyandsincerelydeclarethattothebestofmyknowledgeandbelief,thefinancialstatementssetoutonpages46to126andthesupplementaryinformationsetoutonpage127arecorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,l960.

GOH SIN HUATOfficer

SubscribedandsolemnlydeclaredbytheabovenamedatKualaLumpurintheFederalTerritoryon26April2013.

Beforeme,

Arshad AbdullahCommissionerforOaths(W550)KualaLumpur

STATEMENT BYDIRECTORS

STATUTORYDECLARATION

ANNUALREPORT2012

[129]

INDEPENDENTAUDITOR’S REPORT TOTHEMEMBERSOFCRESTBUILDERHOLDINGSBERHAD

REPORT ON THE FINANCIAL STATEMENTS

WehaveauditedthefinancialstatementsofCrestBuilderHoldingsBerhad,whichcomprisethestatementsoffinancialpositionasat31December2012oftheGroupandoftheCompany,andthestatementsofcomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatory information,assetoutonpages46to126.

Directors’ Responsibility for the Financial Statements

ThedirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementssoastogiveatrueandfairviewinaccordancewiththeFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.Thedirectorsarealsoresponsibleforsuchinternalcontrolsasthedirectorsdeterminearenecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements. The procedures selected depend on our judgement, including the assessment of risks ofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolsrelevanttotheCompany’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrols.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.Opinion

Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2012andoftheirfinancialperformanceandcashflowsforthefinancialyearthenendedinaccordancewiththeFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

InaccordancewiththerequirementsoftheCompaniesAct,1965inMalaysia,wealsoreportthefollowing:-

(a) Inouropinion, theaccountingandother recordsand the registers requiredby theCompaniesAct,1965 inMalaysiatobekeptbytheCompanyanditssubsidiarycompanieshavebeenproperlykeptinaccordancewiththeprovisionsoftheCompaniesAct,1965inMalaysia.

(b) WearesatisfiedthatthefinancialstatementsofthesubsidiarycompaniesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinaformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

(c) OurauditreportsonthefinancialstatementsofthesubsidiarycompaniesdidnotcontainanyqualificationoranyadversecommentmadeunderSection174(3)oftheCompaniesAct,1965inMalaysia.


[130]

OTHER REPORTING RESPONSIBILITIES

Thesupplementaryinformationsetoutonpage127isdisclosedtomeettherequirementofBursaMalaysiaSecuritiesBerhadandisnotpartofthefinancialstatements.ThedirectorsareresponsibleforthepreparationofthesupplementaryinformationinaccordancewiththeGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

OTHER MATTERS

(a) ThefinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31December2011wereauditedbyanotherfirmofcharteredaccountantswhosereportdated25April2012expressedanunmodifiedopiniononthosefinancialstatements.

(b) ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct,1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentsofthisreport.

BAKER TILLY MONTEIRO HENG HENG JI KENGNo.AF0117 No.578/05/14(J/PH)CharteredAccountants CharteredAccountant

KualaLumpur

Date:26April2013

INDEPENDENTAUDITOR‘SREPORT(CONT’D)

ANNUALREPORT2012

[131]

LIST OF TOP TENPROPERTIES BY VALUE

Location Tenure

Approx.Area /

Built-up DescriptionYear ofExpiry

Net Book Value @31.12.12

(RM)

Approx. age

of building(years)

Date ofValuation /Acquisition

TheCrest,3TwoSquare,No.2,Jalan19/1,PetalingJaya,46300,SelangorDarulEhsan

Leasehold 150,522sqft

16storeyofficeblock&parkingbays

2105 108,000,000 6 2012

No.Hakmilik0244869,LotNo.0034701,MukimDamansara,DaerahPetaling,SelangorDarulEhsan

Freehold 7.14acres

ResidentialLand – 7,547,625 – 2005

No.Hakmilik0243082,LotNo.0000232,MukimPetaling,DaerahPetaling,SelangorDarulEhsan

Freehold 1.83acres

CommercialLand – 7,409,705 – 2006

GM1059LotNo.1863MukimBatu,DaerahKualaLumpur

Freehold 2.93acres

CultivationLand – 6,200,000 – 2004

No.28&30,JalanSS24/13,TamanMegah,47301PetalingJaya,SelangorDarulEhsan

Freehold 12,939sqft

2unitsof3-storeyshopoffice/office

– 3,490,501 16 2002

H.S.(D)46981,LotNo.11073,MukimSg.Buloh,DaerahPetaling,NegeriSelangor.

Freehold 9,612sqft

3storeyshopoffice/office

– 3,300,000 12 2012


Freehold 3.82acres



Freehold 2.02acres


Q.T.(R)2006,L.O.No.PJ63/59,TownofPetalingJaya,DistrictofKualaLumpur,StateofSelangor

Leasehold 5,520sqft

Bungalow 2058 920,000 12 2007

P.N19970(OldtitleH.S.(D)44166)P.T.No.16311,MukimSetapak,DaerahWilayahPersekutuan,NegeriWilayahPersekutuan

Leasehold 4,200sqft

3-storeyshopoffice/office

2075 900,000 26 2012


[132]

ANALYSIS OFSHAREHOLDINGSASAT13MAY2013

AuthorisedShareCapital : RM500,000,000.00dividedinto500,000,000ordinarysharesofRM1.00eachIssuedandPaid-upCapital : RM138,010,450.00 ClassofShares : OrdinarySharesofRM1.00each Votingrights : Onevoteperordinaryshare

ANALYSIS BY SIZE OF SHAREHOLDINGS ASAT13MAY2013

No. of No. ofSize of Holdings Shareholders % Shares %

Lessthan100 2,334 33.43 114,742 0.08100to1,000 2,389 34.22 901,987 0.651,001to10,000 1,537 22.01 7,633,067 5.5310,001to100,000 609 8.72 19,924,750 14.44100,001tolessthan5%ofissuedshares 112 1.60 65,237,904 47.275%andaboveofissuedshares 1 0.01 44,198,000 32.03

Total 6,982 100.00 138,010,450 100.00

SUBSTANTIAL SHAREHOLDERS ASAT13MAY2013(InaccordancewiththeRegistermaintainedpursuanttoSection69LoftheCompaniesAct,1965)

Direct Interest Indirect Interest No. of No. ofName Shares % Shares %

YongSoonChow 44,198,000 32.03% 8,660,808 6.28%

THIRTY LARGEST SHAREHOLDERS ASAT13MAY2013(withoutaggregatingsecuritiesfromdifferentsecuritiesaccountsbelongingtothesameperson)

No. of No. Name of Shareholders Shares %

1 YongSoonChow 44,198,000 32.03

2 JFApexNominees(Tempatan)SdnBhd 5,000,000 3.62 PledgedSecuritiesAccountforPertiwiPositifSdnBhd

3 KohHuaLan 4,445,500 3.22

4 HSBCNominees(Asing)SdnBhd 3,862,300 2.80 ExemptAnForJPMorganChaseBank,NationalAssociation(NorgesBK)

5 MaybankNominees(Tempatan)SdnBhd 3,494,000 2.53 PledgedSecuritiesAccountForChuaSaiMen

6 AmanahrayaTrusteesBerhad 3,264,200 2.37 PublicSmallcapFund

7 YongTiokChin 2,658,308 1.93

8 BehEngPar 2,469,700 1.79

9 MaybankNominees(Asing)SdnBhd 2,293,600 1.66 PledgedSecuritiesAccountForSanTuanSam

ANNUALREPORT2012

[133]

THIRTY LARGEST SHAREHOLDERS ASAT13MAY2013(CONT’D)(withoutaggregatingsecuritiesfromdifferentsecuritiesaccountsbelongingtothesameperson)

No. Name of Shareholders No. of Shares %

10 KenangaNominees(Tempatan)SdnBhd 2,150,000 1.56 PledgedSecuritiesAccountForLimHanWeng

11 PertiwiPositifSdnBhd 1,807,939 1.31

12 MalaysiaNominees(Tempatan)SendirianBerhad 1,500,000 1.09 GreatEasternLifeAssurance(Malaysia)Berhad(NonPar1)

13 LembagaTabungHaji 1,451,800 1.05

14 AmanahrayaTrusteesBerhad 1,408,200 1.02 PublicIttikalSequelFund

15 CimsecNominees(Tempatan)SdnBhd 1,211,000 0.88 CIMBForGeneralTechnologySdnBhd

16 KenangaNominees(Asing)SdnBhd 1,200,000 0.87 PledgedSecuritiesAccountForTanChanChai

17 CrestBuilderHoldingsBerhad 1,137,000 0.82 ShareBuy-BackAccount

18 YongShangMing 1,050,000 0.76

19 BehEngSiew 930,000 0.67

20 AmanahrayaTrusteesBerhad 859,400 0.62 PublicStrategicSmallcapfund

21 KongTiam 830,000 0.60

22 LimKhuanEng 667,000 0.48

23 CapaiHasilSdnBhd 650,636 0.47

24 PublicNominees(Tempatan)SdnBhd 595,400 0.43 PledgedSecuritiesA/CForChowSoongMing

25 NgMingKai 550,000 0.40

26 YapHockLee 525,100 0.38

27 LimChinSean 510,000 0.37

28 TanPeckKee 500,000 0.36

29 RHBCapitalNominees(Tempatan)SdnBhd 500,000 0.36 PledgedSecuritiesAccountForFongSiLing(CEB)

30 YongTiokKeng 500,000 0.36

92,219,083 66.82

ANALYSISOFSHAREHOLDINGS(CONT’D)


[134]


ANALYSIS BY SIZE OF WARRANTHOLDINGS (WARRANTS 2003/2013) ASAT13MAY2013

No. of No. of Size of Holdings Warrant Holders % Warrants %

Lessthan100 69 13.40 2,660 0.01100to1,000 220 42.72 171,074 0.711,001to10,000 126 24.47 718,100 2.9910,001to100,000 80 15.53 2,853,600 11.89100,001tolessthan5%ofissuedwarrants 15 2.91 6,518,300 27.165%andaboveofissuedwarrants 5 0.97 13,735,316 57.23

Total 515 100.00 23,999,050 100.00

THIRTY LARGEST WARRANTHOLDERSASAT13MAY2013(withoutaggregatingsecuritiesfromdifferentsecuritiesaccountsbelongingtothesameperson)

No. ofNo. Name of Shareholders Warrants %

1 YongSoonChow 6,499,916 27.08

2 PertiwiPositifSdnBhd 3,000,000 12.50

3 YongShangMing 1,500,000 6.25

4 KohHuaLan 1,400,000 5.83

5 MaybankNominees(Tempatan)SdnBhd 1,335,400 5.56 LimSiewInn

6 NgMingKai 1,130,000 4.71

7 KohChinLiang 970,800 4.05


9 TakrifJayaSdnBhd 720,000 3.00

10 MaidenAbdulKadirBinMohdAli 609,500 2.54

11 TanChanChai 600,000 2.50

12 WongSiewChan 443,300 1.85

13 MakNgiaNgia@MakYokeLum 216,000 0.90


15 ChongNyenThien 149,000 0.62

16 LimFokChou 139,600 0.58

17 MaybankNominees(Tempatan)SdnBhd 116,000 0.48 KohChinLiang

ANNUALREPORT2012

[135]


THIRTY LARGEST WARRANTHOLDERSASAT13MAY2013(CONT’D)(withoutaggregatingsecuritiesfromdifferentsecuritiesaccountsbelongingtothesameperson)


18 LiewSiewChin 110,700 0.46

19 KhooSingKim 109,000 0.45

20 CimsecNominees(Tempatan)SdnBhd 100,500 0.42 PledgedSecuritiesAccountForLooiWaiChong

21 TanPeckKee 100,000 0.42

22 NgKokLoong 100,000 0.42

23 KangKinNgai 100,000 0.42

24 SimChoonSeng 100,000 0.42

25 AffinNominees(Tempatan)SdnBhd 100,000 0.42 PledgedSecuritiesAccountForChongFunnSen

26 AjayKumarA/LPravinKumar 100,000 0.42

27 ChewChinSwee 96,900 0.40

28 HueYuenKeong 93,500 0.39

29 NgChongPuan 90,000 0.38

30 HLBNominees(Tempatan)SdnBhd 69,100 0.29 PledgedSecuritiesAccountForVoonSzeLin(CCTS)

21,203,116 88.35


[136]

ANALYSIS BY SIZE OF WARRANTHOLDINGS (WARRANTS 2012/2015) ASAT13MAY2013

No. of No. of Size of Holdings Warrant Holders % Warrants %

Lessthan100 4,002 60.90 108,496 0.26100to1,000 1,370 20.85 585,988 1.421,001to10,000 944 14.37 3,100,404 7.5010,001to100,000 209 3.18 5,902,431 14.28100,001tolessthan5%ofissuedwarrants 41 0.62 13,004,543 31.465%andaboveofissuedwarrants 5 0.08 18,630,050 45.07Total 6,571 100.00 41,331,912 100.00

THIRTY LARGEST WARRANTHOLDERS ASAT13MAY2013(withoutaggregatingsecuritiesfromdifferentsecuritiesaccountsbelongingtothesameperson)


1 YongSoonChow 13,259,400 32.08

2 JFApexNominees(Tempatan)SdnBhd 1,500,000 3.63 PledgedSecuritiesAccountforPertiwiPositifSdnBhd

3 KohHuaLan 1,333,650 3.23

4 MaybankNominees(Tempatan)SdnBhd 1,299,300 3.14 PledgedSecuritiesAccountForAngPiangKok

5 KoonWoh 1,237,700 2.99

6 MaybankNominees(Tempatan)SdnBhd 1,118,600 2.71 PledgedSecuritiesAccountForChuaSaiMen

7 CimsecNominees(Tempatan)SdnBhd 958,960 2.32 PledgedSecuritiesAccountForTakrifJayaSdnBhd

8 AmanahrayaTrusteesBerhad 900,000 2.18 PublicSmallcapFund


10 KeongChoonKeat 812,500 1.97

11 YongTiokChin 797,492 1.93

12 PertiwiPositifSdnBhd 542,381 1.31

13 HoKamFah 442,000 1.07

14 LembagaTabungHaji 435,540 1.05



ANNUALREPORT2012

[137]


THIRTY LARGEST WARRANTHOLDERS ASAT13MAY2013(CONT’D)(withoutaggregatingsecuritiesfromdifferentsecuritiesaccountsbelongingtothesameperson)


16 CimsecNominees(Tempatan)SdnBhd 329,370 0.80 CIMBForGeneralTechnologySdnBhd

17 YongShangMing 321,000 0.78

18 HDMNominees(Tempatan)SdnBhd 320,000 0.77 PledgedSecuritiesAccountForSeowKahHeng(M03)

19 ChongKow 320,000 0.77

20 ChongKahAn 292,500 0.71

21 MaybankNominees(Asing)SdnBhd 290,250 0.70 PledgedSecuritiesAccountForSanTuanSam

22 BehEngPar 257,910 0.62

23 TanPeckKee 250,000 0.60

24 ShaLaiSing 249,500 0.60

25 KongTiam 249,000 0.60

26 AmanahrayaTrusteesBerhad 221,460 0.54 PublicIttikalSequelFund

27 KehSukLan 200,000 0.48

28 NgMingKai 165,000 0.40

29 MakNgiaNgia@MakYokeLum 160,000 0.39

30 KohChinLiang 150,200 0.36

29,652,243 71.74


[138]


STATEMENT OF DIRECTORS’ INTERESTS IN SHARES AND WARRANTS IN THE COMPANYASAT13MAY2013

DIRECTORS’ SHAREHOLDINGS(InaccordancewiththeRegistermaintainedpursuanttoSection134oftheCompaniesAct,1965)

Direct Interest Indirect Interest No. of No. ofName Shares % Shares % TengkuDato’SulaimanShahbinTengku – – 6,807,939 4.93% AbdulJalilShah YongSoonChow 44,198,000 32.03% 8,660,808 6.28%KohHuaLan 4,445,500 3.22% – –YongShangMing 1,050,000 0.76% – –KeongChoonKeat 250,000 0.18% 80,000 0.06%MohdKhasanbinAhmad – – – –KamYongKan 100,000 0.07% – –YongTiokKeng 500,000 0.36% – –

DIRECTORS’ WARRANTHOLDINGS - WARRANTS 2003/2013(InaccordancewiththeRegistermaintainedpursuanttoSection134oftheCompaniesAct,1965)

Direct Interest Indirect Interest No. of No. ofName Warrants % Warrants % TengkuDato’SulaimanShahbinTengku – – 3,000,000 12.50% AbdulJalilShah YongSoonChow 6,499,916 27.08% 2,900,000 12.08%KohHuaLan 1,400,000 5.83% – –YongShangMing 1,500,000 6.25% – –KeongChoonKeat – – 442,000 1.84%MohdKhasanbinAhmad – – – –KamYongKan – – – –YongTiokKeng – – – –

DIRECTORS’ WARRANTHOLDINGS - WARRANTS 2012/2015(InaccordancewiththeRegistermaintainedpursuanttoSection134oftheCompaniesAct,1965)

Direct Interest Indirect Interest No. of No. ofName Warrants % Warrants % TengkuDato’SulaimanShahbinTengku – – 2,042,381 4.94% AbdulJalilShah YongSoonChow 13,259,400 32.08% 2,602,142 6.30%KohHuaLan 1,333,650 3.23% – –YongShangMing 321,000 0.78% – –KeongChoonKeat 812,500 1.97% 442,000 1.07%MohdKhasanbinAhmad – – – –KamYongKan 9,000 0.02% – –YongTiokKeng 150,000 0.36% – –

$ ................................................................. .................................................................

..........................................................

PROXY FORM

I/We.................................................................................................................................................................................................................................

NRICNo............................................................................................................................... /PassportNo......................................................................

of.....................................................................................................................................................................................................................................

beingamember/membersoftheabovenamedCompanyherebyappoint

...........................................................................................................................................[holdingshares].....................................................................

of......................................................................................................................................................................................................................................


And/orfailinghim/her

...........................................................................................................................................[holdingshares].....................................................................

of......................................................................................................................................................................................................................................


as*my/ourproxytovotefor*me/usandon*my/ourbehalfatthe11thAnnualGeneralMeetingoftheCompany,tobeheldatSimeDarbyConventionCentre,1A,JalanBukitKiara1,60000KualaLumpuronTuesday,25June,2013at3:00p.m.oratanyadjournmentthereof.

Ordinary business For Against

1. To lay the reports of the directors, auditors and the financial statements for the year ended 31December2012.

2. Todeclareafinaldividendof5%less25%taxforthefinancialyearended31December2012.

3. Tore-electtheManagingDirector,YongSoonChow.

4. Tore-electtheIndependentNon-ExecutiveDirector,MohdKhasanBinAhmad.

5. ToappointMessrsBakerTillyMonteiroHeng,CharteredAccountants,asauditors for theensuingfinancialyearending31December2013andauthorisethefixingoftheirremunerationbydirectors.

Special business For Against

6. Toapprovepaymentofdirectors’remunerationsfortheyearended31December2012inaccordancewithArticle88oftheCompany’sArticlesofAssociation.

7. ToempowertheDirectorstoissuesharespursuanttoSection132DoftheCompaniesAct,1965andincompliancewiththeListingRequirementsofBursaSecurities

8. Toapprove the recurrent relatedparty transactionsof a revenueor tradingnature andwhich arenecessaryfortheday-to-dayoperationsuptothenextannualgeneralmeeting

9. Toapprovethemandateforsharebuy-back

10. Tore-electMr.KeongChoonKeatasIndependentDirector

11. Tore-electEn.MohdKhasanBinAhmadasIndependentDirector

12. Tore-electMr.KamYongKanasIndependentDirector

Pleaseindicatewithacross[x]intheboxprovided,howyouwishtocastyourvotes.Ifnospecificinstructionastovotingisgiven,theproxymayvoteorabstainathisdiscretion.

Signatureofmember

Dated:

Notes:-1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than two proxies to attend and vote on in

his stead. A proxy may but need not be a member of the Company. A member may appoint any person to be his proxy without limitation and the provisions of Section 149(1)(a) and Section 149(1)(b) of the Companies Act, 1965 shall not apply.

2. Shareholders’ attention is hereby drawn to the Listing Requirements of the Bursa Malaysia Securities Berhad, which allows a member of the Company who is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, to appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities.

3. Where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy.

4. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or, if the appointer is a corporation, either under its Common Seal or under the hand of a officer or attorney duly authorised.

5. The instrument appointing a proxy must be deposited at No. 14-2, Jalan 4A/27A, Section 2, Wangsa Maju, 53300 Kuala Lumpur not less than 48 hours before the time set for holding for the meeting or any adjournment thereof.

6. In respect to the deposited securities, only members whose name appear in the Record of Depository on 18 June 2013 shall be eligible to attend the meeting or to appoint proxy to attend and/or vote on his behalf.

Commonsealaffixedinthepresenceof

Director Director/Secretary

No. of Ordinary Shares Held

THE CoMPANy SECRETARyCREST BuILDER HOLDINgS BERHAD (573382-P)No. 14-2, JALAN 4A/27A,SECTIoN 2, WANgSA MAJU,53300 KUALA LUMPUR.

AFFIxSTAMP

Foldthisflapforsealing

Thenfoldhere

1stfoldhere

CR

EST BU

ILDER

HO

LDIN

GS B

ERH

AD

An

nu

al R

ep

ort 2

01

2

AddressPenthouse, The Crest 3 Two Square No. 2, Jalan 19/1 46300 Petaling Jaya Selangor Darul Ehsan, Malaysia

www.crestbuilder.com.myEmail : [email protected]

ContactTel : 603 7841 6000 Fax : 603 7841 6088


A n n u a l R e p o r t 2 0 1 2

C.BuildArCov7k_FINAL.indd 1 5/22/13 5:25 PM

crest builder holdings berhad -...

Documents