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KELAB GOLF SARAWAK

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CONTENTSNotice of the 27th KGS Annual General Meeting 2

Message from the Deputy President 3

Kelab Golf Sarawak Management Committee Term 2016-2017 5

Message from the Secretary 6

Minutes of the 26th KGS Annual General Meeting 7

Attendance List of the 26th KGS Annual General Meeting 18

Report of Captain’s Committee 19

Report of the Membership and Establishment Committee 28

Report of the House and Development Committee 30

Report of the Entertainment and Members Relation Committee 31

Report of the Catering Committee 33

Report of the Safety and Security Committee 36

Statement by the Members of the Management Committee 37

Independent Auditors’ Report 38

KELAB GOLF SARAWAK

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NOTICE OF THE 27TH KGS ANNUAL GENERAL MEETING

The 27th KGS Annual General Meeting 2017 will be held as follows :

Date : 02nd December 2017 (Saturday) Time : 10:00 a.m. Venue : KGS Banquet Hall

Agenda :

1. Chairman’s Address.

2. ConfirmationoftheMinutesofthe26th KGS Annual General Meeting held on 10th December 2016

3. ToreceivetheAnnualReportandtheAccountsfortheprecedingfinancialyearforconfirmation.

4. To elect the Vice-President, the Secretary, the Treasurer, the Captain and nine (9) Committee Members who shall be elected biennially.

5. To appoint Auditors for the period of two (2) years. 6. To transact any other business of which due notice has been given.

Ting Kee SuenClub SecretaryKelab Golf Sarawak

Date : 09.11.2017

Note : Members are reminded to bring along their membership cards for registration. The golf courses will be closed in the morning until 12:30 p.m.

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As another year comes to an end, it gives me great pleasure to welcome all of you to our 27th Annual General Meeting on Saturday 2nd December 2017. I anticipate an overwhelming attendance in this forthcoming AGM as it is an election year and Members will come forward to exercise their voting rights.

I would like to thank the Management Committee Members and the Management Staff for their invaluable contributions and efforts to meet the high expectation of our Members.

Infrastructures and our facilities underwent an extensive facelift and development in 2017. With the assistance of YBhg Dato Patrick Liew Chin Joon, President of Sarawak Lawn Tennis Association, KGS Tennis Courts1and2havebeenrefurbishedtoattractmemberstofullyutilizethenon-golfingfacilities.Wehaveattendedtoleakage issues inourbadmintonhall roofing, clubhousebalcony,gymstaircase,Siol starter shedand rainshelters.TheChildrenPlaygroundflooringwasreplaced,newHonourBoardspurchasedandanewbannerpostattheentranceconstructed. Some of these were performed by our in-house Maintenance staff.

Raising the standard of our golf course has always been our priority so that it will further open the door of opportunities for the Club to be chosen as the preferred venue for golf tournaments of the highest level.

We have employed Mr T. Puvanaendran s/o A. Tharummadurai as Golf Course Superintendent on 11th September 2017.

There was remedial work performed on the Golf Course as well. Following the much appreciated analysis and recommendations of Mr Chok Moi Soon, Director of the Department of Irrigation and Drainage, we have addressed drainage issues which include dredging and removal of weirs in Sungai Siol Kiri, construction of underground drains in Demak Hole 10 and outlets in Siol Hole 3 and Demak Hole 12.

Tree cutting and trimming were performed to reduce risk of danger of damage during heavy rain and strong winds.

The year 2017 also witnessed a change in the Presidency of KGS. In accordance with the constitution of Kelab Golf Sarawak, by virtue of his appointment as new Chief Minister, YAB Datuk Patinggi (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg is our new President.

MESSAGE FROM THE DEPUTY PRESIDENT

ANNUAL REPORT 2016-2017

Tan Sri Datuk Amar Haji Mohamad Morshidibin Abdul GhaniDeputy President

KELAB GOLF SARAWAKKELAB GOLF SARAWAK

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I would like to take this opportunity to thank and pray for our former President and Chief Minister, Allahyarham Pehin Sri Haji Adenan bin Haji Satem for his great contributions to the club, as well as the State over the years. We pray that Allahyarham will be blessed and placed among His beloveds.

I would like to extend a very warm welcome to our new President Datuk Patinggi (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg. I believe that with Datuk Patinggi Abang Haji Abdul Rahman Zohari’s wisdom and interest, we will succeed in making Sarawak become a most memorable tourism destination and KGS become a well-knownandpopulargolfingdestinationinSarawak.

I would like to express my profound appreciation and thanks to all the Members for your generosity especially in sponsoring Club events and contribution in many various ways. I would like to thank YBhg Datuk Patinggi Tan Sri Dr. George Chan, YB Tan Sri William Mawan, SGA President, Mr Hoan Kee Hock and especially the Sarawak Timber Industry Development Corporation (STIDC) General Manager, YBhg. Datu Hj. Sarudu bin Hj. Hoklai for his kind and generous sponsorship of bagdrop,payment,registrationandActivityOfficecounters.Allyourkindcontributionshavebenefitedandareappreciatedby the Club Members.

Finally, I would like to once again take this opportunity to thank all Members of the Management Committee and sub-committees for their tireless efforts, full support and cooperation throughout their term.

As we approach the end of the year and look forward to 2018, I would like to take this opportunity to wish “A Very Merry Christmas” to all our Christian members; “Gong Xi Fa Chai” to all our Chinese members and a Happy New Year 2018 to all members and staff of KGS.

Thank you.

Tan Sri Datuk Amar Haji Mohamad Morshidi bin Abdul GhaniDeputy President

MESSAGE FROM THE DEPUTY PRESIDENT (cont’d)


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DEPUTY PRESIDENT YB TAN SRI DATUK AMAR HAJI MOHAMAD MORSHIDI B ABDUL GHANIPSM, DA, PGBK, JSM, PPC, PPB, PCE

SECRETARYMR. TING KEE SUEN

PRESIDENTYAB DATUK PATINGGI (DR) ABANG HAJI ABDUL RAHMAN ZOHARI BIN TUN DATUK ABANG HAJI OPENGDP, DA, PNBS, JBS

COMMITTEE MEMBERS

MR. DEREK CHEE HUONG XING

ENCIK KASIM GANI TUAN HAJI MAZLAN BIN MOHAMAD

SALLEH

ENCIK BAJURI JAUJI SR. LAU CHAI SENG MS. PAULINE GAN GUET BENG

MR. LEO MAMBA AK. SIMPANG

MR. HENRY CHUO KUONG HANG

KELAB GOLF SARAWAK MANAGEMENT COMMITTEE TERM 2016-2017

VICE-PRESIDENTIR. GANI BIN MATAHIR

TREASURERMR. NG LIANG YEW

CLUB CAPTAINDR. DAVID SYLVESTER LING SHENG TEE

KELAB GOLF SARAWAK

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IhavethepleasuretopresentKGS’s2016-2017annualreportwhichreflectsthetrueandamazingjourneywehadgonethrough together for the past one year. I wish to take this opportunity to thank the present MC members especially our Deputy President Tan Sri Datuk Amar Haji Morshidi bin Abdul Gani who has been the main driving force behind KGS, not forgetting the retiring club Captain Dr David Ling Sheng Tee, both have contributed their precious time and effort immensely for the betterment of KGS, the premier golf club in Sarawak.

Under the present MC line up, KGS continued to be managed well, tireless effort were put in to ensure the club’s limited resourceswerespenteffectivelyandefficiently.Similartopreviousyears,majorcostswerestilltheoverallstaffoverheadsandmaintenanceofthecourse&ground.Wehavealsoupgradedsomenongolfingfacilities,whichincludetenniscourt,badminton&squashcomplex’sroofing,detailsofwhichcanbefoundintheCaptain’sreportandtheauditedfinancials. Many of our club’s facilities have been around for more than 20 years, therefore, some major upgrading and repairs are required. These include generator set, Siol Demak buggy path, trees trimming, main road repairs, centralized air-conditioningand theclub’sperimeter fencing just tonamea few.Theclub isalsoconsideringbuyingdefibrillators,alife saving equipment in case of heart attack incident, as suggested by some of the senior club members. KGS being a membership club, its major revenue is mainly derived from members’ monthly subscription fees. This year, the club was still able to make small operating surpluses of approximately RM400,000.00 as some repairs and replacement were held back. In view of the escalating costs & overheads, present members’ fee structure and other sources of income need to be reviewed, which were highlighted during the last AGM.

Another major item that club needs to invest over the next two years is the aging batteries of our 140 buggies. The buggies were bought four years ago and the batteries can usually last 3 to 4 years only. Each battery costs around RM800.00 one buggy needs 6 batteries, therefore, total replacement costs for 140 buggies is estimated to be RM670,000.00 excluding GST. KGS is a premier golf club that we are all proud of, it has become a second home to many club members and staff. Thus, your continuous support as well as timely feedback and constructive suggestions through various chat groups, emails and suggestion book are very much appreciated.

Once again, I would like to express my appreciation to everyone who has contributed directly and indirectly in making KGS to what we are today. As 2017 is an election year for KGS, the club needs more volunteers to offer themselves as MC members in the coming AGM which is scheduled on 2nd December 2017. Merry Christmas and A Happy New Year 2018.

Ting Kee SuenSecretary

MESSAGE FROM SECRETARY

Ting Kee SuenClub Honorary Secretary

KELAB GOLF SARAWAK

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MINUTES OF THE 26TH KGS ANNUAL GENERAL MEETING

Present:

Deputy President/Chairman

YB Tan Sri Datuk Amar Haji Mohamad Morshidi Bin Abdul Ghani

Vice President

Ir. Gani Bin Matahir @ Abdul Ghanie Tahir

Club Secretary

Mr. Ting Kee Suen Club Treasurer

Mr. Richard Chai Shak Foo

Club CaptainDr. David Sylvester Ling Sheng Tee

Committee Members

En. Bajuri Jauji Sr. Lau Chai Seng Ms. Pauline Gan Guet Beng Mr. Leo Mamba Ak Simpang Mr. Henry Chuo Kuong HangEn. Kasim GaniTuan Haji Mazlan Bin Mohamad SallehMr. Ng Liang Yew

No. Of Members Present : 60 Members inclusive of Management Committee (As per Attendance Register)

In Attendance

Mr. K.R. Devindran - General ManagerMr. Henry Ng Lip Ching - Golf Course SuperintendentMs. Shirleyna Kim Dupo - Activities ManagerMs.Audery Edwin - Assistant Finance ManagerMr. Joeshawa Lajang - Security ChiefMr. Chok Moi Soon - Director of Drainage& IrrigationMr. Mark Voon Wui Tat - Legal AdvisorMr. Philip Tong Hie Tung - AuditorMr. Lai Jiun Kong - Auditor

Absent With Apology

Mr. Derek Chee Huong Xing - Committee Member

1. Chairman’s Address

The Deputy President YB Tan Sri Datuk Amar Haji Mohamad Morshidi bin Abdul Ghani welcomed and thanked all members who attended the meeting and called the meeting to order at 10.40 a.m.

YB Tan Sri Chairman commented as in the past years during the non-election years, as per club’s constitution, it’s noteasytogathersufficientquorumtoproceedwiththeAGM.

KELAB GOLF SARAWAK

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MINUTES OF THE 26TH KGS ANNUAL GENERAL MEETING (cont’d)

He informedmembers that the latestfinancialstatusandprogressof theKGS(Club) ismentioned in theClubTreasurer’sfinancialreportandClubSecretary’sreport.HebrieflyrecalledthehistoryofKGSwhichstartedwithonly 9 holes in 1990’s and with the support from the state government, KGS became an 18-holes golf course comprising Santubong & Matang Nines. Later, KGS had enhanced its facilities further and developed to a 36-holes golf course with further strong support from Sarawak state government.

He assured members that the present Management Committee (MC) has been working hard for the best interest of KGS. The Committee is also committed in coming up with various solutions to make KGS a playable golf course during most time of the year.

The Chairman recalled that he has been a KGS member for a long time and even served as MC Member under the leadership of many Captains and he himself also served as Club Captain once and hence, he is well aware of the challenges,issuesandproblemsfacedbyKGS.Headdedthatgettingfinancialresourcesisthemainchallengeasthe maintenance costs has been increasing over the past years. He hoped that members can understand and offer their help and be part of the solutions.

The Chairman informed the members that the MC has invited the Director from The Department of Irrigation and Drainage Sarawak, Mr. Chok Moi Soon to present an overall perspective presentation to assist KGS to address drainage and irrigation issues for better understanding & possible solutions. He also hoped that members can also provide some inputs along the way.

He cautioned that there is a high possibility that KGS may need to raise the subscription fees, which he personally disliked this option since it will burden the members, for now, the club will try to reduce the expenditure, though it is only a temporary measure. He said, for a 30 years’ old club, maintenance costs such as roof repairs and other wear and tear repair works cannot be avoided.

Chairman concluded his welcoming speech by thanking the members for attending this Annual General Meeting.

2. Confirmation of Minutes of the 25th KGS Annual General Meeting Held on 5th December 2015

2.1 Deputy President reported the following amendment in the Annual Report 2015-2016:-

i. Page 7 – First sentence under the Chairman’s Address, The President should read as “The Deputy President”

Further to the above, the following amendments were made during the 26th Annual General Meeting.

2.2 Mr. Stephen Kong Swee Meng (K0823) highlighted that under the Report of the Catering Committee:-

i. Page 29 – last sentence on item No. 3, the new contract shall expire on or before should read as “The new contract shall expire on”

ii. Page 29 – last sentence on item No. 5, the rental per month is RM 200.00 exclusive of 6% GST and the existing contract shall expire on or before should read as “The rental per month is RM 200.00 exclusive of 6% GST and the existing contract shall expire on”

iii. Under Finance Committee report – Second last sentence on item 3) Philip and Jackson of Philip Tong & Co for helping to settle the slight blemish should read as “Philip and Jackson of Philip Tong & Co for helping to settle the slight infraction”.

2.3 Tuan Haji Sophii highlighted that under Finance Committee Report paragraph 6, Samarahan Golf Club should read as “Samarahan Country Club”

Allthereportsweretabledandconfirmed.

Proposed by : Mr. Jackson Lim Kim Boon(L3381) Seconded by : Tuan Haji Sophii Bin Haji Nawi (S1281)


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2.4 Matters Arising

2.4.1 Buggy Fee

Mr. Sylvester Ajah Subah (S0329) questioned the Club Secretary why the resolution on buggy fee passed in the 2013 AGM was not carried out. The Secretary replied that the matter was addressed during the last AGM. Mr. Sylvester Ajah then commented that the statement made by the secretary on item 2.5.1 was not correct and that in any organization the AGM is regarded as the highest decisionauthority.ResolutionspassedintheAGMarefinal,conclusiveandsupreme.Theycanonlybe challenged in the court of law. The MC has no power or authority to veto or interfere with the resolutions passed. In this respect the MC had been acting unlawfully in suppressing the fundamental rights and interests of the members. He stressed that his statement on this matter should be accurately recorded.

The Club Secretary explained that in the last AGM it had already been mentioned that if the buggy feewastobefixedatRM50.00theClubwouldincurlossesinitsoperation.Heagreedthatsomeoneshould second the Chairman’s statement that the matter be put to rest.

Mr. Sylvester Ajah pointed out that what the Secretary said was irrelevant. It is not a matter of questioning the authority of the MC to make rules under the Constitution but once a resolution has been passed in an AGM the MC would have no alternative but to implement it. It is irrelevant whether the Club is going to incur losses or not.

TuanHajiSophiibinHajiNawi(S1281)thensoughtclarificationfromtheLegalAdvisoronRule24ofthe Constitution which deals with the powers of the MC.

The Legal Advisor, Mr. Mark Voon Wui Tat (V1433) explained that although there was a motion in

the 2013 AGM which was properly circulated, tabled, debated and a resolution passed calling for theCommittee tofix theBuggy feeatRM50.00, the resolution fall shortofanamendment to theConstitution which requires the Management Committee to levy the Buggy fee at RM 50.00 like the provision in the Constitution relating to the subscription fee and entrance fee. Without any amendment totheConstitution,theissueoffixingtheamountofbuggyfeeremainsamatterfortheManagementCommittee to decide in the day to day running of the Club. The resolution passed in 2013 remains just an opinion of the members as explained during the 2014 AGM even though it was raised again in 2014, 2015 and 2016. And Mr. Mark Voon Wui Tat further commented that the Management Committee had explained the reason why the buggy fee stays at RM 60.00 in the previous AGM.

Mr. Sylvester Ajah Subah (S0329) pointed out that when the matter had been brought up in the AGM andwasdiscussedandbeingputtotheboard,thematterisfinal.Hefurthermentionedthatthemotiondoes not question on the authority of the Management Committee to make rules and the statement thatwasmadeisnotfactual.ThedecisionoftheManagementCommitteeisfinalonanymatterandif the Committee thinks that the matter is not proper, they should not have allowed the matter to be broughtupintheAGM.AnythingthathasbeendiscussedintheAGMisfinalandconclusive.

Mr. Mark Voon Wui Tat advised that there is no need for another motion and as the composition of the Committee changes every 2 years and members would have a chance to elect a new Management CommitteethatmaybeagreeabletofixthebuggyfeeatRM50.00.

Mr. Sylvester Ajah Subah (S0329) replied to the Legal Advisor’s explanation by saying that the motion does not question the Committee to make rules and further commented that any decision made in the AGMshouldbefinalandconclusive.

Mr. Jackson Lim Kim Boon (L3381) commented that the matter of buggy fee has nothing to do with the Constitution amendment. It does not warrant an amendment to the Constitution to decide on the rate of buggy fee. To solve the problem, he suggested that the MC put up a motion to declare null and void the resolution passed in 2013 AGM and call for an EGM to decide the matter.

KELAB GOLF SARAWAK

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TanSriChairmanclarifiedthatthebuggyfeeissuewasinfactdiscussedinthelastAGM.HoweverMr.JacksonpointedoutthattherewasnoofficialmotionputforwardinthelastAGMtodeclarethe2013resolution as null and void.

Mr. Chin Chia Chau (C2023) said that the reason for the AGM was called is to get the views of KGS members. He further mentioned that the Committee was elected to execute the views of members because they were elected to serve members. He explained that the underlining principle in any AGM is that the majority of members had voiced out a certain desire then the Management Committee should revert to members on the reason why certain decision cannot be carried out and then members can make a decision whether to agree not to pursue the matter. The fact that this was past decision and therefore if the members are still adamant about the buggy fee and insist that the matter be brought up again in this AGM, then the Management Committee has no choice but to address this issue, as KGS is a members’ Club and members have the authority or rights to pursue this matter. Should the Management Committee cannot convince members that RM 50.00 per buggy is not viable, then Management Committee just have carried out the decision as indicated by Mr. Jackson Lim Kim Boon earlier. Besides that, maybe the next step the Management Committee should do is to amend KGS’sConstitutioninordertofulfillmembers’desire.HestressedthatthereisnopointhavinganAGMif members’ opinion and decision are not respected. He would like the Management Committee to look at the underline principle of the whole decision.

The Club Treasurer explained that he agreed with Mr. Mark Voon. He stated that being elected here is to make the best decision for KGS. As such as the majority of members who wish to have RM 50.00 for the buggy fee, it is not practical.

Mr. Sylverster Ajah Subah (S0329) sought explanation from the Club Treasurer and said that in KGS’s Constitution, the Management Committee has the prerogative power. He also commented that the Committee has been abusing the power by suppressing the decision of the AGM. If the decision of the AGM was not implemented, meaning that the Committee veto and suppressed it.

TheClubTreasurerexplainedtoMr.SylvesterAjahSubahthathehadclarifiedtotheManagementCommittee in the MC meetings that the Management Committee should not abuse their prerogative power. What the Committee had done is fair and reasonable; members must also be reasonable and understanding.

Mr. Mark Voon Wui Tat (V1433) further commented that the Management Committee has no prerogative

power. The power of the Management Committee came from KGS’s Constitution. It is the constitutional power. They run and manage the Club in accordance to the Constitution which is stated in Rule 24.

TanSriChairmanstressedthatifmembersdonotwanttheManagementCommitteetofixthebuggy

fee, members would have to propose in the coming AGM to amend the Constitution. Member should lookattheClubTreasurer’sreportonthefinancialpositionoftheClubwhenquestioningwhetherthebuggy fee should be RM50.00 or RM60.00

Mr. Sylvester Ajah Subah (S0329) further commented that it is not about the fees but a matter of principle that the Committee has been acting unlawfully, to veto, and not to implement the decision of AGM which is the highest authority of the Club.

TanSriChairmanclarifiedthattheMCisguidedbytheviewsoftheClub’sLegalAdvisor. Mr. Chin Chia Chau (C2023) argued that the principle is very important. He said that if that principle is

not being followed, as the basis of making decision, then in future anybody can come out and overrule the AGM decision. Eventually, AGM will be irrelevant and there is no need for members to attend the AGM as any opinion or resolution passed would be futile. Whether AGM decision is supreme or it is irrelevant and that the Management Committee can overrule the decision made in AGM.


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Tuan Haji Sophii Bin Haji Nawi (S1281) commented that he did not recall there was a statement from members that the Committee shall look and decide further into the matter as it was not reported in theminutes.HeagreedwithMr.SylvesterAjahSubahontheresolution.Ifitcomesfromthefloor,thenthe Committee will have to look into it, into the relevancy.

Tan Sri Chairman replied that he thought it has been agreed upon in the previous AGM that this matter beputtorestasthereasonfornotfilingthebuggyfeeatRM50.00hasbeenexplained.

Tuan Haji Sophii Bin Haji Nawi (S1281) highlighted on the Constitution item no. 24 (c) on the authority of the Committee.

The Captain responded by saying that the Constitution rules supreme and the Management Committee managedKGSbytheConstitution.Anyotherreasoning,prerogativemustbewithintheconfineoftheConstitution and the Constitution clearly states that the Management Committee has management control over the Club which includes full power to decide all issues relating to the Management of the Club. He commented that the resolution that was proposed should not be entertained because members are removing the power of the Committee to have control over the Management of KGS. He pointed out that he need to check on what has been recorded and documented at the subsequent minutes of meeting. He further mentioned that whatever the AGM decided, Management Committee need to look into again as there is a Constitution to be followed and unless there is a need to change the Club’s Constitution and for the betterment of the Club, then the current procedures need to be followed.

TheClubSecretaryelaborated for thebenefitof theMembers,by referring to theAnnualGeneralMeeting 2014-2015, page 10 on item 3.6, Minutes of the 24th KGS Annual General Meeting;

Mr. Sylvester Ajah denied that the motion on buggy fee was a public opinion instead it was just trying to counter on the buggy fee.

The Club Secretary responded that the Management Committee in their meetings had debated amongst themselves on the matter. Finally, the matter was left to Club Treasurer to work out on the cashflowwhetherthebuggyfeeshouldbefixedatRM50.00/RM55.00/RM60.00.Forthebestinterestof KGS, the Club treasurer then recommended that the buggy fee should be maintained at RM60.00.

The statement above was made in the Minutes of Meeting of the 24th KGS Annual General Meeting and was reported in last year’s AGM.

Mr. Stephen Kong Swee Meng (K0823) stated that he would like to see this buggy fee issue settled once and for all, as there will be no end to it if we keep arguing on principles and technicalities.

The power of the MC is clearly stated in the Constitution. In fact the MC had the power not to allow themotionofthebuggyfeetobeputupin2013sincethefixingofthebuggyfeeisanadministrativeissue. It was a mistake to allow the motion to be put up which was subsequently carried. According to the universal principle once a resolution is passed in an AGM the MC would have no choice but to implement it. He added that as human beings we all make mistakes so let us put it behind us and move forward. He felt that all members would be happy to see this issue settled.

Mr. Chin Chia Chau (C2023) commented on the principle that the Constitution can be changed as it is not cast in stone and it can be changed according to members’ desire. To use the Constitution to overrule the desire of members is not the principle how the whole thing operates. He felt that if the suggestion is not in accordance to the Constitution, the Committee has the right to stop, but that actually denied the fact that the Constitution can be changed. So, if the members desire the constitution be changed, the constitution needs to be changed. So, that is the principal. Management committee should not use the Constitution to overrule any decision in the AGM which mean to say that members have no rights to raise any issue at all. If the majority of members have an opinion that requested changes in the Constitution then the changes need to be made because the Constitution can be amended.

KELAB GOLF SARAWAK

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The Captain explained that when the Committee performs their function in accordance to the Constitution it does not implied that KGS’s Constitution is cast in stone. There is proper procedure to change the Constitution. If the members think that the power of the Management Committee needs to be reduced, the members shall have to pass the motion to change the Constitution but until then the Constitution shall have to be followed.

Mr. Chin Chia Chau (C2023) further mentioned that when an AGM is held and a majority decision is made, that decision is passed to the Management Committee to be implemented but should Management Committee is unable to implement that decision, then the members need be informed as they have the right to know the reason why it cannot be implemented. The Committee has to explain clearly the reasons and convince members that the matter should not be pursued. He further commented that this argument is necessary because of the process that has taken place is not to the satisfaction of members, who were not consulted. It is not about the authority of the Committee, he added.

The Club Secretary commented that the matter had indeed been discussed during last year AGM and the reason had also been explained to the members.

The Vice President commented that in last year’s AGM, it was agreed that this issue to be looked into again by the Management Committee. He mentioned that it had been explained and reference should be made to this year’s Club Treasurer’s Report whether RM 50.00 is viable. He commented that it is not that Management Committee disagree or throw out the resolution given during the AGM, management committee also needs to look into the overall budget of the club.

Tan Sri Chairman commented that this argument is basically on the technical ground whether the members who has attended the AGM have full power to decide whatever members proposed from the floor;theManagementCommitteeindeedhasbeenempoweredundertheConstitutiontocarryouttheir functions unless they have abused the power.

If the argument is about the technicalities, then there is no need for another resolution. And he referred to Mr Stephen Kong’s suggestion and mentioned that the matter should put to rest and members should agree to move forward. The members of the Management Committee will go for re-election every 2 years. He further advised members to put the matter to rest. If any of the provision in the Constitution need to be changed, members can bring it up in the next AGM and put it as a resolution to amend or vote in new Management Committee members.

TuanHajiSophiicommentedandsharedhislegalexperiencethatmotiononthefloorisnotabsolute

and can be overruled in any society. It is not an absolute rule. The committee can still deliberate on the matter.

Club Secretary expressed his assurance to all members that any motion and opinion stated in the AGM will be looked into diligently.

Tan Sri Chairman and Club Secretary then expressed their words of thanks to Stephen Kong, Jackson Lim, Chin Chia Chau and Sylvester Ajah Subah for their views. Tan Sri Chairman concluded that this AGM agreed to put this buggy fee matter to rest. Members are free to bring it up in a motion to amend theconstitutionifneededto.TanSriChairmanthenreconfirmedwithallmemberspresentwhetherthey all agree to put the matter to rest and all members present agreed accordingly.

2.4.2 Bankruptcy Member

Tuan Haji Sophii Bin Haji Nawi commented that there are members who are bankrupt and continue to use the facilities of the Club on their spouse membership. If the Club would like to make a search of the bankruptcy members it will be costly, as it will cost RM10.00 per member. He suggested that every new members and current members to give an undertaking that they are not a bankrupt and this will prevent unnecessary issue in the next year election.


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He also suggested that Rules to be inserted in the Constitution that would deprive bankrupt members from utilizing the facilities. Based on the normal law practice, those who are sued bankrupt should be in the Insolvency list. He further commented that the Club can recover the money owed by members byreportingtotheInsolvencyDeptandfileinthedebtrecoveryformtorecoverthemoneyowedbymembers.

Tan Sri Chairman further suggested the Mangement Committee to look into the whole Constitution again which is already very old and may need latest updates.

2.4.3. Usage of the Driving Range by Non-Members

Tuan Haji Sophii Bin Haji Nawi (S1281) congratulated the Management Committee and Activities Staff for doing a good job. He noticed that the Club Captain, Club Secretary, Activities Manager and General Manager did come to the Driving Range to check the usage of driving range. He noticed that there is an overwhelming respond with 32 non members being listed on the notice board and charged RM30.00 for 3 months or RM50.00 for 6 months for utilizing the Driving Range facilities.

He hope the club can check the list again as some of the non members did not register themselves after 6 months.

He praised the Activities Manager referring to an incident where she pointed out to one of the outsider that he was not allowed to utilize the Driving Range even-though he is a member of the Senior Society from another Club and further mentioned that this is a private property and only members can utilize the facilities.

Tuan Haji Sophii would like the Club Legal Advisor to check the way RM30.00 and RM50.00 members are being termed. There is no provision for this type of Members in the club. There are only 3 types of Members which are welcomed. He also commented that there are outsiders selling fruits in the Club premise. He emphasized that the Club encourage outsiders to utilize the facilities but they need to follow the Club rules and regulations, the Club Management is entrusted to implement it. He hope that the club management can look into this matter.

Club Captain explained to Haji Sophii that these driving range users are not called KGS members but they are termed as KGS Driving Range members. We need to encourage people to register and utilize the Driving Range.

Tan Sri Chairman commented that the best solution to the issue is to control at the Main Gate and only memberscanenter.ForNon-members,theyhavetoleavetheiridentificationcardandtheirdetailstobe recorded at the Main Gate but this would discourage outsiders patronizing our F&B outlets.

2.4.4. Usage of the Golf Course

Mr. Jackson Lim commented on Captain’s Report, page 17, item No. 1.2 on the Golf Course usage. He mentioned that the month of February, there is a drop of 50% compared to the rest of the months. There has never been such a great drop in terms of course usage. He hoped the Captain’s Committee can look into this and further mentioned that the drop in golf course usage should be during Ramadan month.

Captain explained that there has been an appreciable drop about 10% in the number of usage on the golf course due to heavy rain in the month of February.

Tan Sri Chairman commented further that this percentage of usage is not too bad compared to previous years. There is slight increase in the usage of golf course in 2016.

KELAB GOLF SARAWAK

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2.4.5 Security & Safety of the Club

Tuan Haji Sophii (S1281) expressed his concerned on the Security & Safety aspects of the Club and would like Management to look into the matter seriously.

He highlighted that at Hole 14 Santubong surrounding the collar of the pond the bushes are thick and there could be possibility of crocodile hiding area. Golfers and Caddies are fond to look for golf balls in that hazard area and there are high possibilities that they may be attacked by crocodile hiding in the bushes. The present signage is too small as they are in A4 size paper and worded in black and would not be clear enough to warn Golfers or Caddies looking for golf balls surrounding the pond.

Tan Sri Chairman agreed to Tuan Haji Sophii’s comment and mentioned that new warning notice would be placed appropriately.

3. To receive the Annual Report and the Accounts for the preceding financial year for confirmation

The Treasurer briefed the members on the Club’s financial reports for the year ended 30.06.2016 includingexplanations on the followings:

a) Operating Revenue for 2016 b) Operating Expenditure on 2016 c) Operating Surplus

Allthereportsweretabledandconfirmed.

Proposed by : Tuan Haji Sophii Bin Haji Nawi (S1281) Seconded by : Datuk Haji Mazelan Bugo (M1190)

4. Presentation on KGS Course Drainage

4.1 Presentation by the Director of Drainage & Irrigation Department

Mr. Chok Moi Soon briefed and presented on the Club’s drainage issues as follows:

4.1.1 KGS’s limitation and Issues

i. Rainstormhitcatchmentareaduringhightide,waterwillaccumulateatthelowerareaofthefloodplainuntil the tide recedes;

ii. Storage mainly within river channel;

iii. Increasing water discharge from nearby new housing development;

iv. Weirs/Check Dams within KGS area;

v. Siltation and vegetation within the drainage and river.

4.1.2 Course issues

i. Original soil within KGS are mainly clay and silt with some sandy clay on the higher ground;

ii. Clay and silt are of low permeability compared with sandy textured soils;

iii. Golf Course shaped and contoured from soil of low permeability;

iv. Siol, Demak and part of Santubong are low-lying ground with high water table;

v. Cohesive soil have strength characteristic highly dependent on soil moisture, when it’s wet they are prone to compaction due to reduce strength;

vi. Drainage outlet issue for Matang 9.


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4.1.3 Recommendations by the DID:

i. Removal/modify Weirs in Sungai Siol Kiri;

ii. Dredging and widening of Sungai Siol Kiri (DID);

iii. Lower the water level at some of the ponds;

iv. Inventory mapping of existing surface and subsurface drainage system;

v. Explore option of extensive sand capping for low lying area especially in Siol, Demak and Santubong in addition to more surface and subsurface drainage improvement;

vi. Prepare an overall drainage master plan for KGS.

4.2 Presentation by Club Captain

Captain, Dr. David Sylvester Ling Sheng Tee briefed and presented KGS’s Drainage challenges and recommended some strategies moving forward:

i. Drainage out of the course

Captainmentionedthatthegolfcoursedrainagedependsonwaterflowingoutofthecourseandaswellaswaterflowingintothecourse.Hefurthermentionedthattoimprovetheoutflowofthewater,he would like to thank the DID who comes in every 2 years to dredge the river to make it deeper and cleaned the debris. This year, they have done a massive job near tee box Demak hole 12 to clear a bigchannelto improvethewateroutflowfromKGS.MatangishigherthanSantubong/Siol/Demak.MatangCoursehasits’ownlakesandpondwherebythereisnoplaceforthewatertoflowoutsidethecourse. All ponds at Matang end up at the pond near Tan Sri George Chan’s house. The only way out for the water @ Matang course is to go through 2 small drains behind Hole 5 Blue tee through Tan Sri George Chan’s fairway villa.

ii. Drainage within the course

Drainage within the course is a very delicate balance for a golf course to maintain the balance between the wet and dry season. He mentioned that during wet season, problem with the drainage and during dry season, problem with the irrigation. He mentioned that it is advisable that the course to be wet than dry because irrigation can be more expensive during dry season. Damage may just be as bad or worse. According to Mr. Chok, Kuching has one of the highest rainfalls in Malaysia. On 31st December 2015,itwasreportedthatSiolKirihasfloodedbeyondtheriverbank.

iii. Explanation on how the courses dry up

Captain mentioned the course dries up by evaporation, the water running through the surface or seeping through the soil and lastly drain through the subsurface pipes to the pond. He further elaborated that sunlight is crucial to enhance evaporation and we need to prevent greens from the shade. In January, Kuching only produce 3-7 hours of sunshine a day.

iv. Surface runoff

For the surface run off, it depends on gradient, height of grass and water table. KGS has suboptimal gradient & contouring and very high water table. The Surface run off depends on the natural contour andKGScontourisveryflat.Thecoursedesignhasalotofmoundsandvalleys.ItwasadoptedbytheCourse Designer during the reconstruction of Matang & Santubong back then in 2004. It also needs surface open drains such as monsoon drain or temporary surface drain during the wet season, keeping the rough short and some buggy tracks also form a very good channel to channel out the excess water. Santubong Hole 12 Sumps is lowered from the surrounding area. During Sermsak time, he has built a lot of mounds/berms to divert the rain water. The golf superintendent will arrange a temporary open drain which can help to identify wet areas. The level of the pond is lowed by breaking down few inches of the outlet. The subsoil drainage consists of seepage water of the soil in shallow drain called French

KELAB GOLF SARAWAK

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drain and into the sump and to the main subsoil drain. The subsoil drainage depends on the gradient andpermeabilityofthesoilandthatchliesonthesurfacetopreventthedownflowofthewater.KGShas clay based subsoil, poor sand capping and high water table. The drain should be ideally 0.75 m below surface of clay. Other factor which is affecting the water level is the soil. The soil can suck up water from underground.

In designing subsoil drains, if the fairway is good then natural system of drains will be used and if KGSislikeafootballfieldthenHerringbonesystemofdrainswillbeused.KGShavealotofsubsoildrainage work which started by Mr. Sermsak Vijitrat in May 2013 to November 2013 and took over by Mr. Paramjit Singh in May 2014 to January 2016 and continue after by Mr. Henry Ng starting in March 2016 and including coring. The result of the subsoil drainage at Matang Hole 8 shows some improvement.

To tackle the system in KGS, listed below are the strategies:

i) Surface run off ii) Evaporation iii) Subsoil drainage iv) Sand capping v) Water table vi) OutflowfromtheCourse vii) Maintenance of drainage systems and pond dredging

CaptainmentionedthatAustralianConsultantMr.KeithMcAuliffewouldliketohaveafullsandprofilebut not all Clubs have the budget to build a course to the Rolls Royce standard.

Captain mentioned that to keep the shape of Matang/Santubong and raise it by 3 feet of sand for 18 holesisamountingtoRM15million.TheballparkfigurewouldbeRM5-9millionfor18holes.Besidesthe cost of the drain there are also considerations for full sand capping where there is a need to reconstructthesubsoildrainage,reconstructthesprinklersystem,buildretentionwalls,re-turfingthefairways and greens, closure of courses, environment impact study is also required on Siol/Demak and the surrounding areas outside KGS. Full sand capped golf course will incur higher cost on irrigation system during dry weather.

There is suggestion by members on Segmental Sand capping on landing areas. Even though the sand capping improves the landing area, the intervening areas became worse of. The sand topping/dressing or partial height sand capping effectiveness has to be analysed. It helps with improvement of soil quality and helps with contouring over small areas. The most effective method is likely to be a combination of surface shaping with collection sumps and a close-spaced sub-surface drainage system.

Captain further mentioned that there is a need to get expertise a Drainage Consultant to plan the golf course drainage project as stated below.

i) Identificationofwetareasgenerallyandoneachhole ii) Surface collection areas iii) Seepage (Subsoil) Drainage needed iv) Selection of drainage system (pipes, siphon drains, pumps) v) Cost and labour estimates

Captain mentioned that it’s a monumental challenge for the Course and Ground Committee and Golf Maintenance team to handle KGS drainage system. There will be different view and criticism from members but all must work together to solve the challenges.


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Tan Sri Chairman mentioned that majority of KGS course is made out of clay, came in the water catchment area and industrial Drainage is not there and compare to Damai Golf Club is a sand base course. He further mentioned that to form a Committee who are a drainage expertise in the drainage system and if appoint a consultant will be costly. He also mentioned the Committee will try to resolve the immediate ways of resolving the problem with the assistant of Mr. Chok and Captain. If you want a permanent solution at the same time don’t want to spend that much then we have to look for another alternative. He mentioned that the Committee need to do a clear study on the matter.

5. Any Other Business

As there was no other business, the Chairman adjourned the meeting at 1.00 p.m. and wishing all members Merry Christmas and A Happy New Year 2017.

Chairman,YB Tan Sri Datuk Amar Haji Mohamad Morshidi Bin Abdul Ghani

KELAB GOLF SARAWAK

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ATTENDANCE LIST OF THE 26TH KGS ANNUAL GENERAL MEETING

Seq. No. Member ID Name1 A0025 AHMAD FAIZAL B. KHAIRUL ANUAR

2 A0802 ABDUL GHANIE TAHIR

3 A3621 ABANG IBRAHIM ABANG SALLEH

4 B1787 STEVEN BONG JAT SHIN

5 B1812 BAKHTIAR B. HJ SABRI

6 B2936 BAJURI JAUJI

7 B7488 BONG TEE YEN

8 C0159 RICHARD CHAI SHAK FOO

9 C0709 CHONG BOON KHIUN

10 C0754 BASIL CHAI

11 C0967 CLEMENT CHIEW PANG MING

12 C1023 CHAN TAI LONG

13 C2023 CHIN CHIA CHAU

14 C2315 CHUA NGIN HING

15 C2382 HENRY CHUO KUONG HANG

16 C2587 CHEW PO VUN BOB

17 C3105 CHIN HAU SHIN

18 C7089 PETER CHIA YUN LING

19 D3630 DILLAH BIN AHMAD

20 F0779 CELINE FOO

21 G2515 TERENCE GOH YIH HOCK

22 G2861 PAULINE GAN GUET BENG

23 H0666 GILBERT HO LEE SENG

24 H0903 HII POH HIENG

25 H1000 HOAN KEE HOCK

26 H1330 HSIUNG KWO HWA

27 J0564 JOE LANDAU JIKA

28 K0391 KASIM GANI

29 K0823 STEPHEN KONG SWEE MENG

30 K1335 BERNARD KIEW CHIONG TING @ C.T. KIU

31 L0074 LAU KAH LAY

32 L0734 JOSEPH LAU KA HOO

33 L1054 DR. DAVID SYLVESTER LING SHENG TEE

34 L2311 LAU CHAI SENG

35 L2399 BERNARD LEE MENG HOCK

36 L2860 MICHAEL LEE JOON KIONG

37 L3089 LEE MIEW JIN

38 L3381 JACKSON LIM KIM BOON

39 L7487 LIEW MIANG FONG, DAVID

Seq. No. Member ID Name40 M0617 TAN SRI DATUK AMAR HAJI

MOHAMAD MORSHIDI BIN ABDUL GHANI

41 M1190 DATUK HJ MAZELAN BUGO

42 M1894 HJ MAZLAN HJ MOHAMAD SALLEH

43 M3014 HJ MOHD SPERI BIN ABD KARIM

44 M7057 HJ MOHD NASIR BIN HJ HUSSAIN

45 N2714 NOAH BIN HASSAN

46 N7170 NG LIANG YEW

47 O0344 BASIL ONG HOCK JEE

48 S0329 SYLVESTER AJAH SUBAH

49 S1281 HJ SOPHII BIN HJ NAWI

50 S2618 SIA CHUI SENG

51 T0129 MICHAEL TAN KOK PENG

52 T1394 SAMUEL TIEW SII MEW

53 T1482 TING KEE SUEN

54 T2566 TENG TUNG KONG @ TANG TUNG KONG ANDREW

55 T2895 JIMMIE TEO

56 T2961 TING HOUNG SUNG

57 V1433 VOON WUI TAT, MARK

58 W1919 WONG TING KANG

59 W2386 VINCENT WONG SIEW SIENG

60 W2422 DANNY WEE BEE SOON


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REPORT OF CAPTAIN’S COMMITTEE

1. Overview2. Course and Grounds 3. Tournament 4. Junior Development Program 5. Rules 6. Handicap 7. Ladies 8. CaddyandCourseTraffic9. Swimming and Non Golf Sports

1. OVERVIEW

1.1 Captain’s Committee: Captain: Dr David Ling Course and Grounds Deputy Captain: Mr Bajuri Jaujie Rules Ladies Captain: Ms Celine Foo Ladies Golf Haji Mazlan Bin Mohamad Salleh Tournament Mr Henry Chuo Junior Development MrLeoMamba CaddyandCourseTraffic Mr Ng Liang Yew Handicap Mr Derek Chee Gym and Non-Golf Sports

1.2 Golf Course Usage

REPORT OF CAPTAIN’S COMMITTEE 2017

1. Overview 2. Course and Grounds 3. Tournament 4. Junior Development Program 5. Rules 6. Handicap 7. Ladies 8. Caddy and Course Traffic 9. Swimming and Non Golf Sports

1. OVERVIEW

1.1 Captain’s Committee:

Captain: Dr David Ling Course and Grounds Deputy Captain: Mr Bajuri Jaujie Rules Ladies Captain: Ms Celine Foo Ladies Golf

Haji Mazlan Bin Mohamad Salleh Tournament Mr Henry Chuo Junior Development Mr Leo Mamba Caddy and Course Traffic Mr Ng Liang Yew Handicap Mr Derek Chee Gym and Non-Golf Sports 1.2 Golf Course Usage

Figure 1: Number of total golfer rounds registered, KGS by year

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KELAB GOLF SARAWAK

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REPORT OF CAPTAIN’S COMMITTEE (cont’d)

1. OVERVIEW (cont’d)

1.2 Golf Course Usage (cont’d)

Figure 2 : Number of KGS member golfer rounds registered, KGS by year

Figure 3: Number of Guest Golf rounds registered, KGS by year

There is a 3.9% drop in total golfer rounds registered for the period January to October in 2017 compared to the corresponding period in 2016. Overall, this represents a decreasing trend over the past 4 years (Figure 1) although the figure seems to be stabilising. The reduction is largely contributed by the decreased usage by members ( Figure 2) while usage by guests have increased ( Figure 3). Strategies adopted by the Club to increase usage include attempts at improving condition and playability period of the course (especially during the wet season), promotional new

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There is a 3.9% drop in total golfer rounds registered for the period January to October in 2017 compared to the corresponding period in 2016. Overall, this represents a decreasing trend over the past 4 years (Figure 1) although the figure seems to be stabilising. The reduction is largely contributed by the decreased usage by members ( Figure 2) while usage by guests have increased ( Figure 3). Strategies adopted by the Club to increase usage include attempts at improving condition and playability period of the course (especially during the wet season), promotional new

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There is a 3.9% drop in total golfer rounds registered for the period January to October in 2017 compared to the corresponding period in 2016.

Overall,thisrepresentsadecreasingtrendoverthepast4years(Figure1)althoughthefigureseemstobestabilising.

The reduction is largely contributed by the decreased usage by members ( Figure 2) while usage by guests have increased ( Figure 3).


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1. OVERVIEW (cont’d)

1.2 Golf Course Usage (cont’d)

Strategies adopted by the Club to increase usage include attempts at improving condition and playability period of the course (especially during the wet season), promotional new and Term membership fees, strengthening participation in the Junior Development Program, organising more tournaments and promotional guest green fees.

1.3 Reciprocal Arrangements

Visits by Reciprocal Clubs: Seletar Golf Club (Singapore) 27/7/17 Monterez Golf Club 17/9/17

Committee Chairperson, Ms Pauline Gan. A total of 46 members participated in the visits. KGS organised anofficial teamvisit to theMinesResort&GolfClubaswellas3 reciprocalClubsnamelySultanAbdulAziz Shah Golf and Country Club, Kelab Rahman Putra Malaysia and Kelab Golf Negara Subang from 12-15/10/17. The trip was organised by Entertainment & Members Relation

2. COURSE AND GROUNDS

2.1. Subcommittee Chairman : Dr David Ling Members : En Bajuri Jaujie Mr Wong Siu Heng En Karim Reduan Mr Ronnie Chong En Kasim Gani Mr Henry Chuo

2.2 Golf Superintendent

Mr T. Puvanaendran s/o A. Tharummadurai was engaged as KGS Golf Course Superintendent on 11/9/17, replacing Mr Henry Ng who had resigned.

2.3 Machinery

The Course & Grounds Mainatinence Department is awaiting the delivery of 2 new machines, namely a tractor (Kubota Tractor LD 4740 DT 4WD costing RM 84,500) and a debris blower (Redexim Turf Tidy Model 2300withScarifiercostingRM95,000).

Repair of presently owned machines are ongoing. Machines beyond repair and boarded out have been sold off as scrap metal to increase storage and parking space in the Maintenance Complex.

2.4 Drainage

The collapsed underground culvert across the fairway of Demak Hole 10 has been replaced by a new drainage pipe system this year. Erosion of earth contributing to drying of the pond in front of Demak hole 18 has been addressed by reclaimation with earth reinforced by geotextile bags.

Recommendations by Mr Chok Mui Soon, the Director of Department of Irrigation & Drainage, Sarawak which was presented at the last AGM have been carried out. These include dredging and removal of weirs in Sungei Siol Kiri and improvement and repair of outlets at Siol Hole 3 and Demak Hole 12.

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2. COURSE AND GROUNDS (cont’d)

2.5 Cultural practices

Regular verticutting / hollowtining / needle tining of greens were performed. Spraying of weedicides were performed in priority areas to control foreign grass invasion. A soil analysis was performed and corrective measures to optimise soil conditions carried out. Tree trimming and cutting were performed in high priority areas where they were deemed in danger of falling during strong winds or heavy rain.

3. TOURNAMENT

3.1 Subcommittee

Chairman : Tuan Hj Mazlan Salleh Members : Mr Sarbjit Singh Mr Stephen Mau Matahary En Abang Ibrahim Bin Abang Salleh En Kasim Gani Mr Derek Chee Huong Xing Mr Tommy Li Chiau Tong

3.2 Tournaments

Tournaments held to date and booked for the rest of the year are:

Chap Goh Mei Golf and Open House DGA Masters Golf Competition KGS Matchplay Competition Sarawak Chinese Golf Association Golf Competition Police Golf Competition P194- Datuk Fadillah Trophy Gawai Golf and Open House Sarawak Classic Tournament Pusaka Golf KGS Captains’ Alumni Golf KGS Club Championship Sarawak Masters Tournament Callaway Golf Tournament Satawak Senior Amateur Closed Tournament Inter-Community Golf Tournament


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3. TOURNAMENT (cont’d)

3.2 Tournaments (cont’d)

UITM Charity Golf Bintulu Port Group vs SS Sarawak Friendly Tournament Chief Minister’s Cup KGS Captain’s/Deputy Captain’s/Lady’s Captain’s Cup Sarawak Junior Open

4. JUNIOR DEVELOPMENT PROGRAM

4.1 Subcommittee

Chairman : Mr Henry Chuo Members : Mr Nazarudy Abdul Wahed Mr Freddy Wong En Al Isham Azahari

4.2 Participants:

There are 105 participants in the program. These include 25 non-KGS members in our effort to introduce the game to the community.

Mr Malkit Singh our Club Teaching Professional is assisted by En Abdul Samad Abu who was seconded by the State Sports Council.

4.3 Activities:

12 coaching sessions are conducted weekly on Fridays, Saturdays and Sundays.

Monthly Medal Competitions/ Ball Sweeps and Short Game Tournaments are held regularly. There will be a KGS Grand Junior Chanpionship to be held on 16/11/17.

A Holiday Camp was held on 30/8/17 and was well received by the Juniors and their parents.

KELAB GOLF SARAWAK

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4. JUNIOR DEVELOPMENT PROGRAM (cont’d)

4.3 Activities (cont’d):

The Junior Development Program supported participation of the members in various Junior Competitions held both at and outside KGS.

5. RULES

5.1 Subcommittee

Chairman : En Bajuri Jaujie Members : Mr Ng Liang Yew En Kasim Gani En Dillah bin Ahmad 5.2 Activities:

3RulesBriefingandOnCoursePracticalTestswereconductedon12/2/17,9/4/17and22/7/17.

There were 33 participants out of which 5 were non-members.

6. HANDICAP

6.1 Subcommittee

Chairman : Mr Ng Liang Yew Members : Mr Lim Lian Heng Ms Celine Foo Mr Cecil Ha Mr Jim ak Neging Mr Andy Lo Mr Masri Juni

6.2 Activities 6 assessment session involving 27 new golfers were conducted so far for this year.

Further assessment sessions will be conducted for 7 more members.


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6. HANDICAP (cont’d)

6.3 Acknowledgement I would like to say a big thank you to all my committee members who have contributed in various ways to the

up keeping of the integrity of the handicapping system.

Your efforts and time are very much appreciated.

7. LADIES GOLF

7.1 Subcommittee

Chairwoman : Ms Celine Foo (Captain) Members : Ms Norzan Bujang ( Deputy Captain) Ms Marana Sahary (Secretary) Ms Noor Aminah Jeraiee (Treasurer) Ms Lee Miew Jin (Rules) Ms Martina Sim (Events) Ms Kim Mi Kyeong ( Korean Ladies Representative)

7.2 Activities

Busy Bee Monthly Medals were held as well as events like Breast Cancer Support Group Charity Golf, Lucky Partnership Pick and Christmas 2016 & New Year 2017 Golf.

The KGS ladies participated in the Borneo Ladies Golf Challenge Trophy which was held in Labuan this year.

8. CADDY AND COURSE TRAFFIC

8.1 Subcommittee

Chairman : Mr Leo Mamba Members : Mr Wilfred Landong Mr William Manggoi @ Mohd Erwan bin Abdullah Ms Celine Foo En Yakob Jalel

8.2 Activities

4CaddyBriefingsandmonthlyStaffCourseTrafficStaffmeetingswereheld.

KELAB GOLF SARAWAK

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8. CADDY AND COURSE TRAFFIC

8.2 Activities (cont’d)

Caddy Shed Gotong Royong sessions were performed in conjunction with Course and Club Maintenance staff.

The Caddies Golf Tournament was held on 6/2/17 and the champions will be invited to participate in the Captain’s/Deputy Captain’s /Lady Captain’s Trophies.

The Caddy booking system was strengthened in it’s implementation and the Caddy Welfare Fund to which this proceeds go stands at RM 5091.38 as at 3/11/17.

9. GYM AND NON-GOLF SPORTS

9.1 Subcommittee

Chairman : Mr Derek Chee Members : Mr Jay Ng Yap Joo Mr Robert Lau (Squash) Mr Yeo Teck Khoon ( Gym) Mr Tommy Lau (Swimming) Mr Dominic Chin (Tennis and Badminton) Mr Francis Foo (Tennis) 9.2 Activities:

2 of the tennis courts were refurbished to international standards with the kind assistance of Dato Patrick Liew, President of the Sarawak Lawn Tennis Association.

The inaugural YB Tan Sri Datuk Amar Hj Mohamad Morshidi Abdul Ghani Cup Tennis Tournament was held on28/10/17 to commemorate theOfficialOpeningof thenewcourts.Theparticipating teamswere theeventual winner PTBS, MAKSAK, Sarawak Club, KGS and SLTA.

Leaks in the badminton courts and faulty gym equipment were repaired.


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10. ACKNOWLEDGEMENTS

The Captain’s Committee would like to record our appreciation to our late Past President Pehin Sri Datuk Patinggi Tan Sri Hj Adenan bin Hj Satem for his support and many contributions to the Club.

We welcome our new President, YAB Chief Minister of Sarawak Datuk Patinggi Abang Haji Abdul Rahman Zohari bin Tun Abang Haji Openg and look forward to his leadership to bring the Club to greater heights.

We would also like to thank our Deputy President Tan Sri Datuk Amar Hj Mohamad Morshidi bin Abdul Gani for his guidance and the rest of the Management Committee for their support and cooperation.

We are grateful for the many kind sponsors and patrons of Club Competitions and activities as well as those who lent their expertise in Club and Course matters. We would like to thank Tan Sri William Mawan Ikom, Tan Sri George Chan, Tan Sri James Masing, the late Tan Sri Dr Wong Soon Kai, Datu Hj. Sarudu bin Hj. Loklai, Dato Patrick Liew, Mr Chok Moi Soon, Mr Then Su Yew, Mr Roland Ling, Mr Lai Cho Sim, Mr Tan Tai Kang, Mr John Jong and many others to whom we are greatly indebted.

We would like to thank Malaysian Golf Association and Sarawak Golf Association for the technical support rendered.

We would like to thank all the Management and Staff of KGS for their support and dedication.

We would like to record our thanks to Ms Christina Foo, Chairperson of Liaison Committee, Mines Resort and Golf Club and her Committee, and the Committees of Sultan Abdul Aziz Shah Golf and Country Club, Kelab Rahman PutraMalaysiaandKelabGolfNegaraSubangfortheirhospitalityduringourofficialvisittotheirClubs.

On a personal note, I would like to express my appreciation to the members of the Captain’s Committee for their dedication and tireless efforts within and outside the scope of the Captain’s Committee during my tenure as Captain.

I take this opportunity to wish all members Merry Christmas and a Happy New Year.

Dr David Sylvester Ling Sheng TeeKGS Captain

KELAB GOLF SARAWAK

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REPORT OF THE MEMBERSHIP & ESTABLISHMENT COMMITTEE

Chairman : Ir.Gani Bin Matahir

Members : Mr Ting Kee Suen Dr.David Sylvester Ling Sheng Tee Mr Ng Liang Yew Encik Kasim Gani

MEMBERSHIP

ThetotalnumberofIndividualTransferableMembershipasattheendoffinancialyearhaddecreasedfrom3081to3062and the non-Transferable Membership decreased from 11 to 9.

Atotalof73individualTransferableMembershiphadbeenapprovedduringthefinancialyearthroughtheTransferableMembership Scheme. Meanwhile, under the Junior Conversion Membership a total of 9 junior members had been approved.

Ontheendingfinancialyear(30th June 2017) the total membership is 3062 as per breakdown below:

Individual 2941

Individual Transferable 2932Individual Non-Transferable 9

Corporate

Corporate Transferable 41 Corporate Non-Transferable 13 54

Term

Government Term Member 56Public Term Member 2Term Membership Malaysia 4 62

Life 2

Honorary 3

VALUE OF MEMBERSHIP

The value of the KGS Membership remain the same

Individual Transferable Membership : RM25,000.00 Corporate Transferable Membership : RM40,000.00

INTRODUCTION NIGHT

One Introduction Night was held this year on 27th October 2017 with the attendance of 33 new Members


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REPORT OF THE MEMBERSHIP & ESTABLISHMENT COMMITTEE (cont’d)

ESTABLISHMENT MATTERS

NEW SALARY SCALE

The implementation of the new salary scale was implemented effective 1st 0ctober 2017 to replace the old salary scale which was introduced on 1st July 2011. The salary scales were revised to meet the Sarawak Labour Ordinance Act A1237 on minimum wage implementation.

GOLF COURSE SUPERINTENDENT

Mr. Henry Ng who joined the Club on 28th March 2016 had resigned on 22nd August 2017. He was replaced by T. Puvanaendran s/o A. Tharummadurai who come on board on 11th September 2017. Puvan, he is called in short hails from KualaLumpur.HestartedhiscarrierinAgricultureandLandscapesectorforthefirst10years.LatermovingontoGolfCourse Constructions and Maintenance. He has 30 years of experience working in various Golf Courses as Golf Course Superintendent. The Club has engaged him for a 2 year tenure with effect from 11th September 2017.

SENIOR COURSE MAINTENANCE EXECUTIVE

Mr. Augustine Jee had resigned effective 30thApril2017andtheaforementionedpositionisyettobefilled.

FINANCE MANAGER

A new Finance Manager Mdm. Go Wan Ying (35 years old) who possesses a MIA, CTIM, FCCA membership was engaged on 1-year contract basis effective 1st February 2017.

STAFF STRENGTH

As of November 2017 the breakdown of staff are as follow :

No. Department Management Staff

Rank & File Staff

Total

1. Admin/HR 1 4 52. Finance 3 6 93. Activities 4 34 384. Operation & Maintenance 1 23 245. Security 1 19 206. Golf Course Maintenance 1 68 69

Grand Total 11 154 165

I would like to take this opportunity to extend my sincere gratitude and appreciation to Members of the Membership & Establishment Committee, General Manager and KGS Staff for their dedication and contribution towards the improvement of the Club.

I wish to all members and KGS Staff, Merry Christmas and a Happy New Year.

Ir. Gani Bin MatahirChairman

KELAB GOLF SARAWAK

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REPORT OF THE HOUSE AND DEVELOPMENT COMMITTEE

Chairman : Sr Lau Chai Seng

Member : Encik Kasim Gani : Tuan Haji Ir Leng Hj Jack : Ms Celine Foo

This Committee’s scope generally cover the usual maintenance and upgrading of club premises and associated facilities.

The repair of roof leakages to the Badminton and Squash Court Building and a few other areas at the Main Club House Building were carried out during the year. Other maintenance works carried out include repair of spalling concrete to staircase near swimming pool of the Main Building and pipe leakages to toilets.

Sr Lau Chai SengChairman


31

REPORT OF THE ENTERTAINMENT & MEMBERS RELATION COMMITTEE

Chairwomen : Ms Pauline Gan Guet Beng

Members : Mr. Eric Kueh How Hua Ms. Teo Whye Jin Ms. Noor Aminah Ms Caroline Seraba

KGS Family Day / Members Ballsweep cum Christmas Party was held on Sunday, 18th December 2016 and as usual for this year we have invited less fortunate children to socialize and participate with KGS Members’ Children in all the games / activities organised on the aforementioned date. We donated RM 2,000.00 each from KGS Members Charity Fund to the following Associations / Societies within Kuching vicinity:-

• Persatuan Ibu-Bapa Kanak-kanak Cacat Sarawak (PIBAKAT)

• Sarawak Hun Nam Siang T’ng

• Malaysia Red Crescent Society, Kuching Chapter

• Persatuan Kanak-kanak Terencat Akal Sarawak

• Persatuan Hospis Sarawak

• Kidney Association of Sarawak

• Kuching Autistic Association

• Ex-Police Association of Malaysia

• The Green Ribbon Association Kuching

• The Society for Critically Sick Children

The Entertainment and Members Relation Committee had successfully organized few activities for Members in 2017 and the events are as follows:-

• KGS Easter Day Celebration was held on 16th April 2017 - Sixty (60), children participated in this year’s event in Egg Hunt Competition, Egg Colouring Contest and Limbo Rock for Children age 10 years & below and between 11 to 15 years old.

• Golfing Trip to West Malaysia from Thursday, 12th October to Sunday, 15th October 2017 - Forty four (44) KGS members participated in this four (4) days Interclub Friendly Matches as follows:-

Day 1 – Thursday, 12th October 2017

Friendly Inter-Club Match against The Mines Resort & Golf Club Day 2 – Friday, 13th October 2017

Friendly Inter-Club Match against LifeLong Prosperity Berhad (formerly known as KGSAS) Day 3 – Saturday, 14th October 2017

Friendly Inter-Club Match against Kelab Rahman Putra Malaysia Day 4 – Sunday, 15th October 2017

Friendly Inter-Club Match against Kelab Golf Negara Subang

KELAB GOLF SARAWAK

32

REPORT OF THE ENTERTAINMENT & MEMBERS RELATION COMMITTEE (cont’d)

• KGSMembers had amemorable and enjoyable Golfing Trip toWest Malaysia with a wonderful gesture andhospitality hosted by Hosting Clubs and we are looking forward to organise more Friendly Interclub matches in near future bonding the relationship among Reciprocal Club Members.

I wish to thank all Members of Kelab Golf Sarawak for being very cooperative, understanding helpful throughout the GolfingTriptoWestMalaysia.

I would like to take this opportunity to extend my sincere gratitude and thanks to KGS Entertainment & Members Relation Committee, our General Manager and Staff for all assistance rendered during my tenure.

Merry Christmas and Happy New Year to all of you.

Pauline GanChairwoman

Inter-Club Friendly Matches 2017 in West Malaysia

KGS Members Charity Fund Donation presented by Captain Dr. David Ling to the Charity Associations / Societies during KGS Family Day / Members Ballsweep cum Christmas Party 2016

KGS Christmas & Children Party and Members Night 2016


33

REPORT OF THE CATERING COMMITTEE

Chairman : En. Kasim Gani

Members : Tuan Hj Sophie Hj Nawi Tuan Hj Zabidi Hj Shabaneh Tuan Hj Musa Hj Ibrahim En. David Liew En. Waili Hj Abang En. William Manggoi

The Catering Committee for the term 2016-2017, comprising of the above members had compiled its own standards operating Manual which had served to guide the appointed Sub-Committee members in exercising their roles, responsibilitiesandexecutestheirtasksclearly(clarityofexpectation),efficientlyandeffectivelytowardsitsobjectiveof“Striving to ensure all the catering providers at KGS deliver excellent products and services to the Club and members all the Times”.

The Sub-Committee Members, Club Management staff and respective Caterers had worked very hard as a team to solve issues and problems related to the delivery of quality products and services to the Club Members in accordance to the above set Objective in line with the Mission and Vision of the Club aiming to be a PREMIER GOLF CLUB in the Region.

However, it is to be reported here that the performances and quality of the products and services of the Caterers especially Thank Food Sdn Bhd during the last one year had deteriorated and had been unsatisfactory.

During this period, the Sub-Committee, Club Management staff and the Caterers had come up with many initiatives and innovationstryingtoimprovetheperformancesoftheCatererswhiletryingtofindouttherootcausesofthepoorandunsatisfactory performances of the Caterers. All the Caterers had indicated that their Revenue had decreased and during the months of December 2016 till March 2017 and as a result the Caterers were operating at a lost.

Thank Food eventually requested for the increase in their food and beverages prices. The Caddy Shed and Halfway House Canteen operators decided to ask for mutual termination of their contract prematurely. The Management Committee had consented to the increase in the Thank Food Sdn Bhd F&B prices and the mutual termination requested by the Caddy Shed and Halfway Houses Caterers.

The Sub-Committee and the Club Management had earlier in the year did our own analysis of the available statistics at the Club and deduced the followings:

i) Thenumbersofgolftraffichadreducedsteadilyoverthelastthreeyearssince2014;

ii) The number of playable days due to high rainfall days in the months of December till March annually had also decreased over the last three years;

iii) TheRevenueoftheCaterershadalsosteadilydecreasedproportionatelywiththedecreaseingolferstrafficoverthe last three years;

The Catering Sub-Committee felt that there is a close and direct co-relation between the weather, the conditions of the golf courses,thegolferstrafficandtherevenueoftheF&BoutletsattheClub.

If this downward trend continues to dip further down over the next few years, the same situations at both Samarahan Country Club and Damai Golf and Country Club will happen to KGS. There will be no more halfway houses canteen or maybe operating during the weekend only and the main Club House Restaurant may be downsized to a canteen standard operation or just having a few stalls selling noodles and rices menus only.

Going forward, the Club Management must come up with lot of efforts, innovations, incentives and creative initiatives toimprovetheconditionsofthecoursesduringthewetweatherperiod,increasethenumberofGolfingmemberswithplayingaffordabilitypolicyandchangethetypeornatureoftheF&BoutletsattheClubthatactuallyfitintotheneedanddemand of the Club members.

KELAB GOLF SARAWAK

34

REPORT OF THE CATERING COMMITTEE (cont’d)

TheCateringSub-Committeehadfulfilledourdutiesandresponsibilitieswithcareandduediligence,tothebestofourabilities so as to ensure we were properly executing our roles, functions and responsibilities under the Statutory Law, members driven and towards the objective and vision of the Club - TO BE A PREMIER CLUB IN THE REGION.

We therefore are glad to report the followings:

1. Thank Food Sdn Bhd.

Thank Food Sdn Bhd contract shall expire on the 31st of March 2019 with the option of another 3-year extension until 31st March 2022.

The performances of Thank Food Sdn Bhd during the year 2016-17 had been considered as not satisfactory in terms of its services.

There had been many complaints made by the members on the poor quality Services provided. The Catering Committee members and the Management staffs had many meetings with Thank Food Management team and followed up with letters to instruct them to improve their menus presentations and to re-train their waitresses or remove and replaced those arrogant and bad attitude staff.

Thank Food Sdn Bhd had on many occasions been instructed to continuously improve their standard of cleanliness, quality of food served, quality of services rendered, staff personal hygiene, staff code of conduct and behavior.

However, after many discussions and brainstorming sessions with them, Thank Food revealed to the Management that theyarerunningata lostduringthe lowtrafficperiodofDecembertillMarchandtheirRevenuehadbeendeclining since the last three (3) years. They had tried to cut their operating cost by minimizing their overhead andreducingthestaffsandtoremovethosemenusthatarenotgeneratinganyprofitwhiletryingtomaintainthestandards of their services. Thank Food decided to request for the increase the prices of their Food and Beverage, which was last increased in 2010. The Management Committee approved this request in its September 2017 Meeting and the members has been duly informed.

The Club Management had been instructed by the MC to closely monitor the performance of Thank Food Sdn Bhd in the next three (3) months and the Management Committee shall determine the Contract thereafter.

2. Halfway House Canteen

The contract shall expire on the 30th June 2018 with a rental of RM3,000.00 per month exclusive of 6% GST.

The performances of HDC Trading Sdn Bhd had been reported as satisfactory to-date.

However,duetothepoorweatherand lowgolferstrafficduringtheDecember2016tillMarch2017period, theoperator was running at a lost. As a result, the Operator was four (4) months behind in their rental payments and lately had requested for a mutual termination of their contract prematurely. This is despite the decrease in the monthlyrentalsinordertohelptheOperatorinitscash-flow.

3. Driving Range café

The contract shall expire on or before 31st March 2018.

The Driving range café, operated by Mdm Wired Ak Opiet since 2002, had provided satisfactory services to-date to members and non members alike patronizing the outlet, especially the Juniors golfers parents.

MdmWiredAkOpietwasalsoaffectedbythelowgolferstrafficduringthewetweatherperiodandhadrequested

for a reduction in their monthly rental which was duly approved by the Management Committee. The new rental rate is RM1,000.00 inclusive of GST as compared to RM1,200.00 per month exclusive of 6% GST previously.

4. Caddy Shed Canteen

The Contract for the Caddy Shed canteen which expired on 30th July 2018 was operated by En. Amirul Fadly for a monthly rental of RM300.00 exclusive of 6% GST.


35

REPORT OF THE CATERING COMMITTEE (cont’d)

However, due to poor patronage by the Caddy themselves during the wet weather period during the December 2016 till March 2017 period, the operator was also running at a lost. As a result, the Operator had requested for a mutual termination of their contract prematurely.

5. Course Maintenance Canteen

The Course Maintenance canteen operated by En Suhaimi Bujang has not been affected by the phenomena that were faced by the other operators. His performances to-date had been reported as satisfactory.

The rental per month is RM200.00, exclusive of 6% GST and the existing contract shall expire on or before 31st December 2017.

6. Revenue from F&B Outlets

a) Thank Food Sdn Bhd

(i) Sales Commission (5%) from Total Sales Revenue RM 92,388.40 of RM 1,847,768.00 for July 2016 to June 2017

(ii) Rental Income @ RM 7,500.00 x 12 months RM 90,000.00

Sub-total RM 182,388.40

b) Halfway House Canteen

(i) Rental Income @ RM 3,000.00 x 12 months RM 36,000.00

c) Driving Range Canteen (i) Rental Income @ RM 1,200.00 x 12 months RM 14,400.00 (July 2016 to June 2017)

d) Caddy Shed Canteen (i) Rental Income @ RM 400.00 x 12 months RM 4,800.00 (July 2016 to June 2017)

Grand total RM 237,588.40

We would like to take this opportunity to extend our sincere thanks and appreciation to the members of the Catering Committee, the General Manager and its staff, Club members for their feedbacks, suggestions and advices and all the Catering operators for their corporation and commitment to ensure all the catering providers at KGS deliver excellent products and services to the Club and members all the times.

To all members and families, we sincerely appreciate your continuous patronage and we gladly welcome any feedback for the continuous improvement of KGS catering services.

Kasim GaniChairman

KELAB GOLF SARAWAK

36

REPORT OF THE SAFETY AND SECURITY COMMITTEE

Chairman : Mr Ting Kee Suen

Members : Mr Ng Liang Yew Ms. Pauline Gan Encik Kasim Gani Mr Derek Chee Mr George Chapman

We are pleased to report that there wasn’t any incident of security, theft nor safety related incident at the club for the past one year.

Following measures were carried out for the year 2016-2017.

1. CCTV

Additional standalone CCTVs are installed at driving range and club’s main entrance.

2. Warning Lights

Warning lights were installed at swimming pool and driving range to alert members before heavy storm.

3. Illegal Ball Pickers

Police arrested four illegal ball pickers who parked their motorcycles near the fencing of Santubong hole 12. Thereafter, no more intruders were seen at the club’s premise.

4. Emergency Lighting

Additional emergency lights have been installed at registration counter and more will be installed at relevant areas within the club premise.

5. First Aid Course

Annual first aid refresher coursewas conducted for staff ofKGS, in caseof emergencywhereCPRmight beneeded.Theclubisalsoconsideringbuyingdefibrillatorssincethereweresuggestionsfromthemembers.

6. Mosquitoes Fogging

The club continues with the mosquitoes fogging from time to time.

7. Crocodile Warning Signs

Clear warning signs were installed at Santubong Hole 14 (Par 3). There is no further report of crocodile sighting after one small crocodile was caught.

8. Lost and found items

The management committee has decided to donate the lost and found items as prizes to caddies’ tournament if the items are not redeemed after one year.

9. Camcorder for Marshal

Club has also purchased small police portable CCTVs to be worn by Course Marshals and security personnel on duty.

I wish to thank all my committee members, club management and club members for their valuable feedbacks and assistance to make our club a better and safer place.

Ting Kee SuenChairman


37

STATEMENT BY THE MEMBERS OF THE MANAGEMENT COMMITTEE

We, YB TAN SRI DATUK AMAR HAJI MOHAMAD MORSHIDI B ABDUL GHANI and NG LIANG YEW, being the Deputy President and Honorary Treasurer respectively, of the Kelab Golf Sarawak, do hereby state that, in the opinion of theManagementCommittee, thefinancialstatementssetoutonpages41 to64aredrawnup inaccordancewithMalaysian Private Entities Reporting Standard and the Societies Act, 1966 in Malaysia and the rules and regulations of Kelab Golf SarawaksoastogiveatrueandfairviewofthefinancialpositionoftheClubasat30June2017andthefinancialperformanceandcashflowsfortheyearthenended.

Signed on behalf of the Management Committee in accordance with a resolution by the Committee

............................................................................................................................YB TAN SRI DATUK AMAR HAJI MOHAMAD MORSHIDI B ABDUL GHANIDeputy President

............................................................................................................................NG LIANG YEW Honorary Treasurer

Kuching, Malaysia

Date: 10 November 2017

KELAB GOLF SARAWAK

38

Report on the Audit of the Financial Statements

Opinion

WehaveauditedthefinancialstatementsofKelab Golf Sarawak(theClub),whichcomprisethestatementoffinancialposition as at 30 June 2017, and the statement of comprehensive income, statement of changes in accumulated fund and statementofcashflowsfortheyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccounting policies, as set out on pages 41 to 64.

Inouropinion,theaccompanyingfinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheClubasat30June2017,andofitsfinancialperformanceanditscashflowsforthefinancialyearthenendedinaccordancewithMalaysian Private Entities Reporting Standard and the requirements of the Societies Act, 1966 in Malaysia.

Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statementssectionofourreport.Webelievethattheauditevidencewehaveobtainedissufficientandappropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the Club in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants(“IESBACode”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewith the By-Laws and the IESBA Code.

Information other than the Financial Statements and Auditors’ Report Thereon

The Management Committee of the Club are responsible for the other information. The other information comprises the Message from the Deputy President, Club Honorary Secretary, Minutes of General Meeting, Captain’s Committee Report, Report of the Membership & Establishment Committee, Report of the House and Development Committee, Report of the Entertainment & Members Relation Committee, Report of the Catering Committee, Report of the Security and Safety Committee, Report of the Finance Committee and our auditors’ report thereon.

OuropiniononthefinancialstatementsoftheClubdoesnotcovertheotherinformationandwedonotexpressanyformof assurance conclusion thereon. InconnectionwithourauditofthefinancialstatementsoftheClub,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsoftheCluborour knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report the fact. We have nothing to report in this regard.

Responsibilities of the Management Committee for the Financial Statements

TheManagementCommittee of theClub are responsible for the preparation of the financial statements of theClubthat give a true and fair view in accordance with Malaysian Private Entities Reporting Standard and the requirements of the Societies Act, 1966 in Malaysia. The Management Committee are also responsible for such internal control as the ManagementCommitteedeterminearenecessarytoenablethepreparationoffinancialstatementsoftheClubthatarefree from material misstatement, whether due to fraud or error.

InpreparingthefinancialstatementsoftheClub,theManagementCommitteeareresponsibleforassessingtheClub’sability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management Committee either intend to liquidate the Club or to cease operations, or have no realistic alternative but to do so.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KELAB GOLF SARAWAK(Registered in Malaysia)

Registration No: 25/87 (Sarawak)


39

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KELAB GOLF SARAWAK (cont’d)(Registered in Malaysia)


Auditors’ Responsibilities for the Audit of the Financial Statements

OurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsoftheClubasawholearefree from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or intheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• IdentifyandassesstherisksofmaterialmisstatementofthefinancialstatementsoftheClub,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Club’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management Committee.

• Conclude on the appropriateness of the Management Committee’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmaycastsignificantdoubtontheClub’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditors’reporttotherelateddisclosuresinthefinancialstatements of the Club or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Club to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements of the Club, including thedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthat achieves fair presentation.

We communicate with the Management Committee regarding, among other matters, the planned scope and timing of the auditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit. Other Matters

(a) AsstatedinNote2tothefinancialstatements,KelabGolfSarawakadoptedMalaysianPrivateEntitiesReportingStandard on 1 July 2016 with a transition date of 1 July 2015. These standards were applied retrospectively by theManagementCommitteetothecomparativeinformationinthesefinancialstatements,includingthestatementof financial position of theClub as at 30 June 2016, and the statement of comprehensive income, statementofchangesinaccumulatedfundandstatementofcashflowsoftheClubfortheyearended30June2016andrelated disclosures. We were not engaged to report on the restated comparative information and it is unaudited. OurresponsibilitiesaspartofourauditofthefinancialstatementsoftheClubfortheyearended30June2017,inthesecircumstances,includedobtainingsufficientappropriateauditevidencethattheopeningbalancesasat1July2016donotcontainmisstatementsthatmateriallyaffectthefinancialpositionasat30June2017andthefinancialperformanceandcashflowsfortheyearthenended.

KELAB GOLF SARAWAK

40

Other Matters (cont’d)

(b) This report is made solely to the members of the Club, as a body, in accordance with Societies Act, 1966 and for no other purpose. We do not assume responsibility to any other person for the content of this report.

........................................................................... ...........................................................................Philip Tong & Co. Tong Hie Tung @ Tong Hing Yung(AF: 0401) Approval Number – 989/04/18(J/PH)Chartered Accountants Chartered Accountant

Kuching, SarawakDate: 14 November 2017

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KELAB GOLF SARAWAK (cont’d)(Registered in Malaysia)



41

Note 2017 2016 RM RM

ASSETS Non-Current Assets Property, plant and equipment 5 13,215,454 14,443,352 Current Assets Inventories 6 416,585 428,879 Members' accounts 7 1,001,342 1,044,072 Sundry receivables 8 593,322 629,472 Current tax assets 37,910 28,066 Cash and cash equivalents 9 432,488 1,219,329 2,481,647 3,349,818 TOTAL ASSETS 15,697,101 17,793,170 FUNDS AND LIABILITIES Accumulated Fund Balance at 30 June 12,805,220 13,678,543 LIABILITIES Non-Current Liabilities Borrowings 10 276,251 1,147,939 Deferred income 13 204,400 233,600 480,651 1,381,539 Current Liabilities Members' advances 266,209 251,753 Sundry payables and accruals 14 1,273,333 1,486,299 Borrowings 10 871,688 957,829 Current tax liabilities - 37,207 2,411,230 2,733,088 TOTAL LIABILITIES 2,891,881 4,114,627 TOTAL EQUITY AND LIABILITIES 15,697,101 17,793,170

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Theannexednotesformanintegralpartofthesefinancialstatements.

KELAB GOLF SARAWAK

42


IncomeMembership subscriptions 3,751,636 3,824,888Surcharges 252,239 337,422Golf subscription fees 692,335 735,455Green fees 432,487 484,564Rental income 15 324,048 295,315Commission income 16 121,413 139,935Sundry income 17 90,875 59,678Fixed deposit interest 32,371 32,691 5,697,404 5,909,948Surplus/(Deficit) from club activities Swimming 18(a) 107,999 92,619Club functions 18(b) (13,945) (14,007)Golf 18(c) (76,455) (26,399)Tennis, badminton and squash 18(d) (280) 8,316Gymnasium 18(e) 54,425 56,405Buggies rental account 18(f) 837,858 914,097

909,602 1,031,031 Total income 6,607,006 6,940,979

Expenditure Advertisement 5,057 4,224Annual general meeting expenses 4,930 8,037Auditors' remuneration - current year 7,500 7,000 - prior year 500 500Bank overdraft interest, bank charges and credit card commission 71,610 68,638Committee meetings and club jackets 24,800 3,589Contribution to Sarawak Amateur Open 5,000 - Employees' Provident Fund contributions 402,678 370,021Golf course maintenance and expenses 19 788,306 948,447Golf professional fee 28,800 -Hire purchase interest 17,552 27,409House-keeping and cleaning expenses 106,802 138,453Insurance 67,705 66,275Legal and professional fees 13,223 6,953Licence fees 3,704 3,636Medical expenses 46,147 48,884Members' introduction night expenses 2,699 2,724Postage 19,793 14,089Printing, stationery and publications 98,355 122,930Quit rent and assessment 97,331 97,414Refreshment 12,454 18,249Repair and maintenance - Buildings/ Electrical 109,947 97,389 - Computers 33,544 30,677 - Equipment 50,910 70,005 - Motor vehicles 5,596 4,513Salaries, wages and allowances 3,583,942 3,240,077SOCSO contributions 54,579 48,660Staff amenities 20 67,141 55,347Staff bonuses 81,000 110,054Sundry expenses 59,690 47,108Telephone and fax charges 48,520 46,922Travelling and transport expenses 4,196 4,779Water and electricity charges 257,824 290,491

6,181,835 6,003,494 Operatingsurplusforthefinancialyear 425,171 937,485

STATEMENT OF COMPREHENSIVE INCOMEFOR THE FINANCIAL YEAR ENDED 30 JUNE 2017



43

STATEMENT OF COMPREHENSIVE INCOME (cont’d)FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017


Non operating items Depreciation of property, plant and equipment (1,713,787) (1,709,027)Gain on disposal of property, plant and equipment - 5,075Entrance fees 89,736 169,040Transferable membership administrative transfer fees 345,000 310,000 (1,279,051) (1,224,912)Operatingsurplusforthefinancialyear 425,171 937,485 Deficitbeforetaxation (853,880) (287,427)Income tax expense 21 (19,443) (94,344) Netdeficitforthefinancialyear (873,323) (381,771)


STATEMENT OF CHANGES IN ACCUMULATED FUNDFOR THE FINANCIAL YEAR ENDED 30 JUNE 2017

Accumulated Fund RM

At 1 July 2015 14,060,314Deficitfortheyear (381,771) At 30 June 2016 13,678,543Deficitfortheyear (873,323) At 30 June 2017 12,805,220


KELAB GOLF SARAWAK

44

STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 30 JUNE 2017


Cash flows from operating activities Deficitbeforetax (853,880) (287,427)

Adjustments for: Depreciation of property, plant and equipment 1,713,787 1,709,027 Interest expenses 109,117 166,176 Gain on disposal of property, plant and equipment - (5,075)Interest income (32,371) (32,691)Deferred income recognised 13 (29,200) (11,200) Operating surplus before working capital changes 907,453 1,538,810 Decrease in inventories 12,294 75,519 Decrease in members' accounts 42,730 12,767 Decrease in sundry receivables 36,150 43,489 Increase in members' advances 14,456 24,672 (Decrease)/Increase in sundry payables and accruals (212,966) 231,214 Cash from operations 800,117 1,926,471 Interest paid (9,355) (10,672)Interest received 32,371 32,691 Income tax paid (116,042) (69,957)Income tax refund 49,548 - Net cash from operating activities 756,639 1,878,533

Cash flows used in investing activities Purchase of property, plant and equipment (485,889) (875,215)Proceed from disposal of property, plant and equipment - 5,075 Decrease/(Increase)infixeddepositswithoriginalmaturities exceeding three months 89,781 (302,755) Net cash used in investing activities (396,108) (1,172,895)

Cash flows used in financing activities Hire purchase interest paid (99,762) (155,504)Repayment of hire purchase payables (817,710) (761,968) Netcashusedinfinancingactivities (917,472) (917,472) Net decrease in cash and cash equivalents (556,941) (211,834)Cash and cash equivalents at beginning of the year 696,618 908,452 Cash and cash equivalents at end of the year 9 139,677 696,618



45

NOTES TO THE FINANCIAL STATEMENTS30 JUNE 2017

1. GENERAL INFORMATION

The principal objective of Kelab Golf Sarawak (the Club) is to promote and carry on social and sporting activities for its members.

TheregisteredofficeandprincipalplaceofoperationsoftheClubislocatedatPetraJaya,93050Kuching,Sarawak.

ThefinancialstatementsoftheClubarepresentedinRinggitMalaysia.

ThefinancialstatementswereauthorisedforissuebythemembersoftheManagementCommitteeinaccordancewith a resolution by the Committee on 10 November 2017.

2. BASIS OF PREPARATION

ThefinancialstatementshavebeenpreparedinaccordancewiththeMalaysianPrivateEntitiesReportingStandard(MPERS) and the Societies Act, 1966 in Malaysia and the rules of regulations of Kelab Golf Sarawak.

2.1 Transition to the new MPERS Framework

For the current year ended 30 June 2017, the Club has adopted the new Malaysian Private Entities Reporting Standard (MPERS). The date of transition to the new MPERS Framework is 1 July 2015.

AdoptionofthenewMPERSFrameworkrequiresthatalltheStandardsinMPERSbeappliedtothefinancialstatementsforthecurrentyearended30June2017,thecomparativefinancialstatementsfortheyearended30June2016andtotheopeningstatementoffinancialpositionatthedateoftransitiontoMPERS.

TheClubhasconsistentlyappliedthesameaccountingpoliciesinitsopeningMPERSstatementoffinancialpositionasat1July2015andthroughoutallfinancialyearspresented,asifthesepolicieshavealwaysineffect.TheadoptionofMPERShasnoeffectonthefinancialstatementsof theClubfor thecurrentyearended 30 June 2017 and the comparative year ended 30 June 2016.

2.2 Early Adoption of the Amendments to MPERS (2015)

InOctober,2015,MASBissuedAmendmentstoMPERSthatareeffectiveforfinancialstatementsbeginningon or after 1 January 2017, with early application permitted, the Club has opted to early apply the Amendments for the current year ended 30 June 2017. The early adoption of the Amendments to MPERS has no effect on thefinancialstatementsoftheClubforthecurrentyearended30June2017andthecomparativeyearended30 June 2016.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Basis of accounting

ThefinancialstatementsoftheClubhavebeenpreparedunderthehistoricalcostconventionunlessotherwiseindicatedinthesignificantaccountingpolicies.

Management has used estimates and assumptions in measuring the reported amounts of assets and liabilities at the end of the reporting date and the reported amounts of revenue and expenses during the reporting period. Judgements and assumptions are applied in the measurements, and hence, the actual results may not coincide with the reported amounts.

TheareasinvolvingsignificantjudgementsandestimationuncertaintiesaredisclosedinNote4.

KELAB GOLF SARAWAK

46

NOTES TO THE FINANCIAL STATEMENTS30 JUNE 2017 (cont’d)

3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)

3.2 Property, plant and equipment and depreciation

(i) Recognition and measurement

Items of property, plant and equipment are initially measured at cost. Cost includes expenditure that is directly attributable to the acquisition of the asset to working condition for its intended use. The cost of self-constructed assets also included the cost of materials and direct labour.

An item of property, plant and equipment is derecognised upon disposal or when no future economics benefitsareexpectedfromitsuseordisposal.Thedifferencebetweenthenetdisposalproceeds,ifanyandthenetcarryingamountisrecognisedinprofitorloss.

(ii) Subsequent costs

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,onlywhenthecostisincurredanditisprobablethatfutureeconomicbenefitsassociatedwiththeassetwouldflowtotheClubandthecostoftheitemcanbemeasuredreliably.Thecarryingamount of parts that are replaced is derecognised. The costs of the day-to-day servicing of an item of property,plantandequipmentarerecognisedinprofitorlossinwhichthecostsareincurred.

After initial recognition, property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.

(iii) Depreciation

Depreciation is based on the cost of an asset less its residual values. Depreciation is recognised in profitorlossonastraightlinebasisovertheirestimatedusefullivesforeachitemofproperty,plantand equipment from the date they are available for use.

The estimated useful lives for the current and comparative periods are as follows:

Long-term leasehold land 55 years Building and renovation 4% - 20% Machinery 20% Computers 20% Furniture,fittingsandequipment 20% Golf course 50-51 years Motor vehicles and buggies 20% Sports equipment and library books 20% Land and building shall be accounted for separately, even when they are acquired together.

The residual values and useful lives of assets are reviewed at the end of each reporting date and adjusted prospectively if appropriate where expectations differ from previous estimates. Property, plant and equipment arereviewedforimpairmentinaccordancewiththeClub’saccountingpolicyforimpairmentofnon-financialassets.

3.3 Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell with weighted average as its basis for cost.

Cost comprises purchase price and directly attributable costs of bringing the inventories to their present location and condition.


47



3.3 Inventories (cont’d)

Inventories are assessed for impairment at the end of each reporting date by comparing the carrying amount of each item of inventory with its selling price less costs to complete and sell. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognisedimmediatelyinprofitorloss.

3.4 Functional and presentation currency

ThefinancialstatementsoftheClubarepresentedinRinggitMalaysia(RM)whichisthecurrencyofprimaryeconomic environment in which the Club operates (‘the functional currency’).

3.5 Income taxes

Income tax expense represents the aggregate amount of current and deferred taxes.

(i) Current taxes

Current tax for current and prior periods, to the extent unpaid is recognised as a current tax liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as a current tax asset.

Current tax is measured at the amount the Club expects to pay or recover using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

(ii) Deferred tax

Deferred tax is recognised for all temporary differences, unless the deferred tax arises from goodwill or the initial recognition of an asset or liability in a transaction which is not a business combination and atthetimeoftransaction,affectsneitheraccountingnortaxableprofit.

Adeferredtaxassetisrecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitswouldbe available against which the deductible temporary differences, unabsorbed tax losses and unused tax credits can be utilised. The carrying amount of a deferred tax asset is reviewed at the end of each reportingdate.Ifitisnolongerprobablethatsufficienttaxableprofitswouldbeavailabletoallowthebenefitofpartorallofthatrecogniseddeferredtaxassettobeutilised,thecarryingamountofthedeferredtaxassetwouldbereducedaccordingly.Whenitbecomesprobablethatsufficienttaxableprofitswouldbeavailable,suchreductionswouldbereversedtotheextentofthetaxableprofits.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Changes in current or deferred tax balances are recognised as an income tax expense or credit and are recognised in the same component of comprehensive income or equity as the transaction that resulted in the tax expense or credit.

Current tax assets and liabilities or deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes related to the same taxation authority.

KELAB GOLF SARAWAK

48



3.5 Income taxes (cont’d)

(iii) Goods and Services tax (“GST”)

Revenue, expenses and assets are recognised net of GST except:

• where the GST incurred in a purchase of assets or services is not recoverable from the taxation authority, in which case the goods and services tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

• receivables and payables that are stated inclusive of GST.

The net amount of GST refundable from, or payable to, the taxation authority is included as part of receivablesorpayablesinthestatementsoffinancialposition.

3.6 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits and short term, highly liquid investmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantrisk of changes in value with original maturities of three months or less. For the purpose of the statement of cashflows,cashandcashequivalentsarepresentednetofbankoverdrafts.

Thestatementofcashflowsispreparedusingtheindirectmethod.

3.7 Income recognition

(a) Subscription and entrance fees Subscription fees due are accounted for on an accrual basis and entrance fees are taken as income

when members are admitted.

(b) Interest income

Interestincomeonfundsinvestedisrecognisedintheprofitorlossonatimeapportionbasistakingaccount of the principal outstanding and the rate applicable.

(c) Rental income

Rental income is recognised on an accrual basis over the period of the tenancy.

(d) Transferable membership conversion fees and administrative transfer fees Conversion fees and administrative transfer fees on Transferable Membership Scheme are taken into

account as and when received. (e) Buggy rental

Buggyrentalisrecognisedintheprofitorlossasandwhenthebuggyisrentedandonaccrualbasis.

(f) Other income

Other income is taken into account as and when received.


49



3.8 Borrowing costs

Interestexpenseisrecognisedonthebasisoftheeffectiveinterestmethodandisincludedinfinancecosts.Allborrowingcostsarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.

3.9 Hire purchase and finance lease arrangements and operating lease

A lease is recognisedasafinance lease if it transferssubstantially to theCluball therisksandrewardsincidenttoownershipoftheleasedassets.Allotherleasesareclassifiedasoperatinglease.

Assets acquired under hire purchase arrangements are recognised and measured in a similar manner as financeleases.

(i) Assets acquired under finance lease and hire purchase arrangements

Assetsacquiredunderfinanceleaseandhirepurchasearrangementsarestatedattheamountsequalat the inception of the arrangement to the lower of the fair values and the present values of the minimum lease or hire purchase payments. The discount rate used in calculating the present values of the minimum lease or hire purchase payments is the interest implicit in the lease, if it is practicable to determine; if not, the incremental borrowing rate of the Club. Any initial direct costs incurred by the Club are added to the amount recognised as an asset. The assets are capitalised as property, plant andequipmentandthecorrespondingliabilityaretreatedasfinanceleaseorhirepurchaseliabilities.

Theminimum leaseorhirepurchasepaymentsareapportionedbetweenfinancechargesand thereduction of the outstanding liability using the effective interestmethod. The finance charges arerecognisedinprofitorlossovertheperiodofthehirepurchase/leasetermsoastoproduceaconstantperiodic rate of interest on the remaining lease and hire purchase liabilities.

(ii) Operating lease

Operatingleasepaymentsarerecognisedasexpensesinprofitorlossonastraightlinebasisoverthelease term.

3.10 Provisions

A provision is recognised when there is a present obligation, legal or constructive, as a result of a past event, whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation and a reliable estimate can be made of the amount of the obligations.

If the effect of time value of money is material, the amount of a provision is measured at the present value oftheexpenditureexpectedtoberequiredtosettletheobligationusingapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheliability.Wherediscountingisused,theincreaseintheamountofaprovisionduetopassageoftimeisrecognisedasfinancecost.

Provisionsarereviewedattheendofeachreportingdateandadjustedtoreflectthecurrentbestestimate.

3.11 Employee benefits

(i) Short term employee benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Club.

Paid absences (annual leave, maternity leave, paternity leave, sick leave etc) are accrued in each period if they are accumulating paid leaves that can be carried forward, or in the case of non-accumulating paid absences, recognised as an expense as and when the absences occur.

KELAB GOLF SARAWAK

50



3.11 Employee benefits (cont’d)

(ii) Defined contribution plan

As required by law, the Club makes statutory contribution to approved the Employees Provident Funds. Suchcontributionsmadearerecognisedinprofitorlossintheperiodinwhichtheyrelate.

3.12 Impairment of Non-Financial Assets

Thecarryingamountsofnon-financialassetsarereviewedattheendofeachreportingdatetodeterminewhether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generated cash inflows from continuing use that are largely independent of the cash inflows fromotherassets or cash-generating units.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposalanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentofthetimevalueofmoneyandtherisksspecifictotheassetorcash-generatingunit.

An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its estimated recoverable amount.

Impairmentlossesarerecognisedinprofitorloss.Impairmentlossesrecognisedinrespectofcash-generatingunits are allocated to reduce the carrying amounts of the assets in the cash-generating unit (groups of cash-generating units) on a pro rata basis.

Impairment loss recognised in prior periods are assessed at the end of each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have determined, net of depreciation or amortisation, if no impairment loss had been recognised.Areversalofimpairmentlossforanassetisrecognisedinprofitorloss.

3.13 Financial instruments

Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequity instrumentofanotherentity.TheClubrecognisesafinancialassetorfinancial liability.Financialinstrumentsarerecognisedinthestatementoffinancialpositionwhen,andonlywhen,theClubhasbecomea party to the contractual provisions of the instruments.

(i) Basic financial instruments

Basicfinancialinstrumentsincludecash,debtinstruments(receivablesandpayables),commitmentsto receive loans that cannot be settled net in cash, investments in non-convertible preference shares and non-puttable ordinary or preference shares.


51



3.13 Financial instruments (cont’d)

(ii) Initial recognition and measurement

Oninitialrecognition,allfinancialassetsandfinancialliabilitiesaremeasuredatfairvalue,whichisgenerallythetransactionprice,plustransactioncostsifthefinancialassetsorfinancialliabilitiesisnotmeasuredatfairvaluethroughprofitorlossexceptafinancingtransaction.Financingtransactionsaremeasured at the present value of future payments discounted at a market rate of interest for a similar debt instrument. For financial instrumentmeasuredat fair value throughprofit or loss, transactioncostsareexpensedtoprofitorlosswhenincurred.

(iii) Subsequent measurement

Financial assets

Forthepurposeofsubsequentmeasurement,thefairvalueofafinancialassetorafinancialliabilityis determined by reference to a quoted market price in an active market and in the absence of an observable market price, by a valuation technique using reasonable and supportable assumptions. Thechangeinfairvalueisrecognisedinprofitorloss.

Investments in debts instruments, whether quoted or unquoted, are subsequently measured at amortised cost using the effective interest method whilst investments in unquoted equity investments whose value cannot be measured reliably and commitments to receive loans are measured at cost.

Otherthanfinancialassetsmeasuredatfairvaluethroughprofitorloss,allotherfinancialassetsaresubjecttoreviewforimpairmentinaccordancewithClub’saccountingpolicyforimpairmentoffinancialassets.

Financial liabilities

Afterinitialrecognition,allfinancialliabilitiesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

(iv) Derecognition

Financial assets

Afinancialassetisderecognisedwhen,andonlywhen,thecontractualrightstoreceivethecashflowsfromthefinancialassethasexpiredorsettled,orcontroloftheassetisnotretainedorsubstantiallyalloftherisksandrewardsofownershipofthefinancialassetaretransferredtoanotherparty.Onderecognitionofafinancialasset,thedifferencebetweenthecarryingamountofthefinancialassetderecognised and the consideration received, including any newly created rights and obligations, is recognisedinprofitorloss.

Financial liabilities

Afinancialliabilityisderecognisedonlywhenitisextinguished,i.e.whentheobligationspecifiedinthecontract is discharged, cancelled or expires. An exchange between an existing borrower and lender offinancial instrumentswithsubstantiallydifferenttermsareaccountedforasanextinguishmentofthe original financial liability and the recognition of a new financial liability. Similarly, a substantialmodificationof the termsofexistingfinancial liability isaccounted forasanextinguishmentof theoriginalfinancialliabilityandtherecognitionofanewfinancialliability.

Anydifferencebetweenthecarryingamountofafinancialliabilityextinguishedortransferredtoanotherparty and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognisedinprofitorloss.

KELAB GOLF SARAWAK

52



3.14 Impairment of financial assets

TheClubassesseswhetherthereisanyobjectiveevidencethatafinancialassetisimpairedattheendofeach reporting date.

TheClubcollectivelyconsidersfactorssuchastheprobabilityofbankruptcyorsignificantfinancialdifficultiesofthereceivable,anddefaultorsignificantdelayinpaymentsbythereceivable,todeterminewhetherthereisobjective evidence that an impairment loss on loans and receivables has occurred. Other objective evidence of impairment include historical collection rates determined on an individual basis and observable changes in national or local economic conditions that are directly co-related with the historical default rates of receivables.

If any such objective evidence exists, the amount of impairment loss is measured as the difference between thefinancialasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset’soriginaleffectiveinterestrate.Theimpairmentlossisrecognisedinprofitorloss.

The carrying amount of loans and receivables are reduced through the use of an allowance account.

If in a subsequent period, the amount of the impairment loss decreases and it objectively relates to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extentthatthecarryingamountofthefinancialassetdoesnotexceeditsamortisedcostatthereversaldate.Theamountofimpairmentreversedisrecognisedinprofitorloss.

3.15 Government grants

Government grants are not recognised until there is reasonable assurance that all conditions attaching to the grants will be complied with and the grants will be received.

Grantsrelatedtoassetsaresetupasdeferredincomeandrecognisedasincomeintheprofitorlossonasystematic basis over the estimated useful lives of the assets. Grants related to expenses are recognised as income in the period the grants become receivable.

4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS

4.1 Changes in estimates

Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

TheManagementCommitteeareof theopinion that therearenosignificantchanges inestimatesat thereporting date.

4.2 Critical judgements made in applying accounting policies

In the process of applying the Club’s accounting policies, the Management Committee are of the opinion thatanyinstancesofapplicationofjudgementarenotexpectedtohaveasignificanteffectontheamountrecognisedinthefinancialstatements,apartfromthoseinvolvingestimationswhicharedealtwithinNote4.3below.


53

4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (cont’d)

4.3 Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,thatmayhaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

(i) Depreciation of plant and equipment

The cost of plant and equipment is depreciated on a straight-line basis over their estimated useful lives. Management estimates the useful lives of these plant and equipment to be within 5 years. Changes in the expected level of usage and technological developments could impact the economic useful lives and residual values of the property, plant and equipment, therefore the future depreciation charges could be revised.

Theactualconsumptionoftheeconomicbenefitsoftheproperty,plantandequipmentmaydifferfromthe estimates applied and this may lead to a gain or loss on an eventual disposal of an item of property, plant and equipment.

(ii) Impairment of property, plant and equipment

The Club assesses impairment of property, plant and equipment when the events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. In assessing such impairment, the recoverable amount of the assets is estimated using the latest available fair value after taking into account the costs to sell or expected value in use of the relevant assets.

(iii) Impairment of loans and receivables

The Club assesses at the end of each reporting date whether there is any objective evidence that a financialassetisimpaired.Todeterminewhetherthereisobjectiveevidenceofimpairment,theClubconsidersfactorssuchastheprobabilityofinsolvencyorsignificantfinancialdifficultiesofthedebtoranddefaultorsignificantdelayinpayments.

Where there is objective evidence of impairment, the amount and timing of future cash flows areestimated based on historical loss experience for assets with similar credit risk characteristics.


KELAB GOLF SARAWAK

54


5.

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55


5. PROPERTY, PLANT AND EQUIPMENT (cont’d)

Included in the property, plant and equipment of the Club are the following assets acquired under hire purchase arrangements:

Net Carrying Amount 2017 2016 RM RM

Buggies 833,000 1,832,600 Machinery 188,680 283,020 1,021,680 2,115,620

6. INVENTORIES

2017 2016 RM RM At cost: Golf course maintenance materials 320,266 289,422 Detergents 20,003 34,038 Stationery 20,537 34,457 KGS buttons 338 338 Consumable hardware 55,441 68,944 T-shirt and umbrellas - 1,680 416,585 428,879

7. MEMBERS’ ACCOUNTS

Members’ accounts are stated after allowance for doubtful debts:

2017 2016 RM RM

Members’ account 1,104,342 1,147,072 Deduct : Allowance for doubtful debts (103,000) (103,000)

1,001,342 1,044,072

Members’ accounts comprise amount receivable from members for subscription fees, sales of food and drink and activities’ services provided.

The credit period granted to members is 30 days (2016: 30 days).

The Management Committee are of the opinion that no bad debts are to be written off and that allowance for doubtful debts is adequate.

KELAB GOLF SARAWAK

56


8. SUNDRY RECEIVABLES

2017 2016 RM RM

Sundry receivables 380,756 374,085 Sundry deposits 7,284 7,284 Prepaid expenses 41,166 18,735 Prepayment of hire purchase instalments 164,116 229,368 593,322 629,472 9. CASH AND CASH EQUIVALENTS

2017 2016 RM RM Fixed deposits with original maturities not exceeding three months 54,026 773,773 Fixed deposits with original maturities exceeding three months 292,811 382,592 Bank and cash balances 85,651 62,964 Asperstatamentoffinancialposition 432,488 1,219,329 Less: Fixed deposits with original maturities exceeding three months (292,811) (382,592) Less: Bank overdrafts - (140,119) Asperstatementofcashflows 139,677 696,618 Bank balances are deposits held at call with banks.

10. BORROWINGS

2017 2016 RM RM Current liabilities Bank overdrafts - secured (Note 11) - 140,119 Hire purchase payables (Note 12) 871,688 817,710

871,688 957,829 Non-current liabilities

Hire purchase payables (Note 12) 276,251 1,147,939 Total borrowings

Bank overdrafts - secured (Note 11) - 140,119 Hire purchase payables (Note 12) 1,147,939 1,965,649 1,147,939 2,105,768


57

10. BORROWINGS (cont’d)

2017 2016 RM RM

Weighted average effective interest rate per annum: Bank overdrafts 7.60% 7.85%

11. BANK OVERDRAFTS - SECURED

The bank overdraft facility is secured by a negative pledge on the Club’s assets and bears weighted average effectiveinterestrateof7.60%(2016:7.85%)perannumattheendofthefinancialyear.

12. HIRE PURCHASE PAYABLES

2017 2016 RM RM Minimum hire-purchase payments: - not later than one year 917,472 917,472 -laterthanoneyearbutnotlaterthanfiveyears 280,072 1,197,544 1,197,544 2,115,016 Less:Futurefinancecharges (49,605) (149,367) Present value of hire-purchase liabilities 1,147,939 1,965,649

Repayable as follows:

Current liabilities: - not later than one year 871,688 817,710

Non-current liabilities -laterthanoneyearbutnotlaterthanfiveyears 276,251 1,147,939 1,147,939 1,965,649


KELAB GOLF SARAWAK

58

13. DEFERRED INCOME

Deferred income is in relation to grant received from Sarawak State Government for the Club’s construction of the liftfacilities.Thegrantshallberecognisedasincomeinprofitorlossovertheestimatedusefullivesoftheassetstomatch the related construction cost in which the grant is intended to compensate.

The movements in deferred income are as follows:

2017 2016 RM RM As at 1 July 233,600 244,800 Less: Deferred income recognised to date (29,200) (11,200) As at 30 June 204,400 233,600

Movement in deferred income recognised to date is as follows:

As at 1 July 56,400 45,200 Recognisedinprofitorloss 29,200 11,200 As at 30 June 85,600 56,400 14. SUNDRY PAYABLES AND ACCRUALS

2017 2016 RM RM

Sundry payables 694,172 779,997 Goods and Services tax payable 24,162 23,942 Accrued expenses 196,861 260,330 Refundable deposits received 68,530 68,730 Fees received in advance 18,608 127,300 Members’ deposits 271,000 226,000 1,273,333 1,486,299

15. RENTAL INCOME

2017 2016 RM RM

Driving range 72,000 48,000 Proshop 81,600 75,200 Restaurant 90,000 90,000 Others 80,448 82,115

324,048 295,315



59


16. COMMISSION INCOME

2017 2016 RM RM

Sales commission - Coffee House and Restaurant 92,388 109,174 - Pro Shop 11,617 12,072 104,005 121,246 Sundry commission - Golfers’ Insurance 12,944 13,430 - Golf coaching/lesson fees 4,464 5,259 17,408 18,689 121,413 139,935

17. SUNDRY INCOME

2017 2016 RM RM

Advertisement fee received - 60 Car sticker 610 1,379 Deferred income recognised 29,200 11,200 Insurance compensation received 9,807 - Library membership subscription fee 13,428 14,768 Group term life insurance claim received - 10,000 Others 37,830 22,271 90,875 59,678

18. CLUB ACTIVITIES

Cost of club activities are made up as follows:

(a) SWIMMING 2017 2016 RM RM RECEIPTS

Coaching/ Lesson fees 229,918 231,471 Swimming pool guests 92,028 85,669 321,946 317,140 Deduct: DIRECT EXPENSES

Coaching/ Lesson fees 172,438 173,603 Swimming pool water analysis 315 1,860 Swimming pool chemical 41,194 49,058 213,947 224,521 Surplus for the year 107,999 92,619

KELAB GOLF SARAWAK

60


18. CLUB ACTIVITIES (cont’d)

Cost of club activities are made up as follows (cont’d):

(b) CLUB FUNCTIONS 2017 2016 RM RM RECEIPTS

Members’ night and ballsweep 1,597 - KGS Family Day - 2,349

1,597 2,349 Deduct: DIRECT EXPENSES

Children activities 4,463 - Members’ night and ballsweep 11,079 9,991 KGS Family Day - 6,365

15,542 16,356 Deficitfortheyear (13,945) (14,007)

(c) GOLF

2017 2016 RM RM RECEIPTS

Golf competition fees 78,580 89,646 Sponsorship 123,822 133,409 Sundry income 1,040 - 203,442 223,055

Deduct: DIRECT EXPENSES

Allowance 6,029 4,000 Banners and advertisement 2,244 1,951 Buggy rental 8,316 6,646 Entry fee for golf competition 4,840 3,200 Lion dance 688 688 Refreshment 62,471 51,652 Souvenirs 13,173 24,236 Sundry expenses 14,901 12,537 Tournament travelling expenses 9,922 8,083 Trafficcaddyfee 2,280 - Trophies/Prizes 145,543 129,385 T-shirt 9,490 7,076 279,897 249,454 Deficitfortheyear (76,455) (26,399)


61


Cost of club activities are made up as follows (cont’d): (d) TENNIS, BADMINTON AND SQUASH

2017 2016 Tennis Badminton Total Total RM RM RM RM RECEIPTS

Booking fee received 110 2,070 2,180 10,940 Coaching fee - 4,240 4,240 2,886 110 6,310 6,420 13,826

Deduct: DIRECT EXPENSES

Coaching fee - 4,200 4,200 4,200 Badminton shuttlecock - 2,500 2,500 1,310

- 6,700 6,700 5,510 (Deficit)/Surplusfortheyear 110 (390) (280) 8,316

(e) Gymnasium

2017 2016 RM RM RECEIPTS Subscription fees 54,425 56,405 Deduct: DIRECT EXPENSE - - Surplus for the year 54,425 56,405


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Cost of club activities are made up as follows (cont’d): (f) Buggies rental account

2017 2016 RM RM RECEIPTS Buggies rental income 1,127,395 1,234,960 Deduct: DIRECT EXPENSES

Employees’ Provident Fund contributions 17,564 15,502 Hire purchase interest 82,210 128,095 Insurance 11,394 11,965 Repair and maintenance 984 18,863 Salaries, wages and allowance 167,970 137,923 SOCSO contributions 2,967 2,391 Staff bonus 4,000 4,804 Uniform 2,448 1,320 289,537 320,863 Surplus for the year 837,858 914,097

19. GOLF COURSE MAINTENANCE AND EXPENSES

2017 2016 RM RM Improvement and development 83,123 108,834 Sand, wood, stone, cement and concrete 65,584 120,141 Chemicals and fertilizers 295,334 216,362 Other expenses 43,040 55,246 Spare parts 166,188 284,504 Petrol and lubricant 133,477 148,242 Tyres 1,560 15,118 788,306 948,447

20. STAFF AMENITIES

2017 2016 RM RM

Rental 6,000 6,000 Staff welfare 3,550 3,659 Training and recruitment expenses 3,630 3,284 Uniform 53,961 42,404 67,141 55,347


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21. INCOME TAX EXPENSE

2017 2016 RM RM Income tax expense for the year comprises:

Current tax - Malaysia 10,998 60,526 Under-provision in prior year 8,445 33,818 19,443 94,344 Income from buggy rental and other investments of the Club is taxable at personal scale rates under Schedule I,

Income Tax Act 1967 while income derived from its members is not taxable. The tax expense was in respect of interest income, rental income and income generated from activities with non-members.

As at 30 June 2017, subject to agreement by Inland Revenue Board, the estimated unabsorbed capital allowances andunusedtaxlossesavailableforset-offagainstfuturetaxableprofitsforwhichnodeferredtaxassetisrecognisedinthestatementoffinancialpositionareasfollows:

2017 2016 RM RM

Unabsorbed capital allowances 317,568 67,900 Unused tax losses 460,870 460,870 778,438 528,770 22. CAPITAL COMMITMENT 2017 2016 RM RM

As at year end, the Club has the following capital expenditures in respect of: Authorised but not contracted for - 217,936 Analysed as follows: - Property, plant and equipment - 217,936

23. EMPLOYEE BENEFITS EXPENSE 2017 2016 RM RM

Salaries, wages and allowances 3,583,942 3,240,077 Bonuses 81,000 110,054 Amountcontributedunderdefinedcontributionplan: - Employees’ Provident Fund Contribution 402,678 370,021 Social Security Organisation Contribution 54,579 48,660 4,122,199 3,768,812


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24. FINANCIAL INSTRUMENTS

Categories of financial instruments

2017 2016 RM RM (i) Financial assets

Financial assets measured at amortised cost

Members’ account 1,001,342 1,044,702 Sundry receivables 388,040 381,369 Cash and cash equivalents 432,488 1,219,329 1,821,870 2,645,400 (ii) Financial liabilities

Financial liabilities measured at amortised cost

Borrowings 1,147,939 2,105,768 Members’ advance 266,209 251,753 Sundry payables and accruals 1,249,171 1,462,357 2,663,319 3,819,878

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