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    2009

    annualr

    eport

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    Notice o Annual General Meeting

    Corporate Inormation

    Prole o Directors

    Chairmans Statement

    Managing Directors Review o Operations

    Corporate Governance Statement

    Audit Committee Report

    Statement o Internal Control

    Analysis o Shareholdings

    List o Top Ten Major Properties by Value

    Cott

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    2 I G B C o r p o r a t i o n B e r h a d

    NOTICE IS HEREBY GIVEN THAT the Forty-Sixth Annual General Meeting (46th AGM) o IGB Corporation Berhad at Bintang Ballroom, Level 5, Cititel Mid Valley, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur on Weor the ollowing purposes:

    AGENDA

    Ordinary Business

    1. To receive the Audited Financial Statements or the year ended 31 December 2009 and Reports o the Directors an

    2. To re-elect the ollowing Directors who retire pursuant to Article 85 o the Companys Articles o Association:

    (a) Tan Lei Cheng(b) Tan Boon Lee(c) Tony Tan @ Choon Keat(d) Tan Kai Seng

    3. To re-appoint Messrs. PricewaterhouseCoopers as auditors or the nancial year ending 31 December 2010 aDirectors to x their remuneration.

    4. To approve Directors ees o RM340,000 per annum.

    Special Business

    5. To consider and i thought t, to pass the ollowing resolution pursuant to Section 129(6) o the Companies Ac

    THAT Tan Sri Abu Talib bin Othman, who is over the age o seventy years, be re-appointed a Director o theoce until the conclusion o the next annual general meeting.

    6. To consider and i thought t, to pass the ollowing ordinary resolutions:

    (a) Authority to issue shares pursuant to Section 132D o the Act

    THAT pursuant to Section 132D o the Act, the Directors be and are hereby authorised to issue shares in ttime until the conclusion o the next annual general meeting and upon such terms and conditions and othe Directors may, in their absolute discretion deem t, provided that the aggregate number o shares issresolution does not exceed 10% o the issued and paid-up share capital o the Company or the time bein

    (b) Renewal o shareholders mandate or share buy-back

    THAT subject to the Act, the Companys Memorandum and Articles o Association and Bursa Malaysia(Bursa Securities) Main Market Listing Requirements, the Company be and is hereby authorised to puro ordinary shares o RM0.50 each in the Company as may be determined by the Directors rom time toSecurities upon such terms and conditions as the Directors may deem t in the interest o the CompanMandate) provided that:

    (i) the aggregate number o shares purchased pursuant to the Share Buy-Back Mandate shall not

    Notice o Annual General Meeting

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    Notice o Annual General Meeting (continued)

    (c) Renewal o shareholders mandate or recurrent related party transactions

    THAT the Company and/or its subsidiaries (the Group) be and is/are hereby authorised to enteand/or transactions involving the interests o Directors, major shareholders or persons connectemajor shareholders o the Group (Related Parties) as specied in Section 2.2.1 o the Statement/Cdated 30 April 2010, provided that such arrangements and/or transactions are:

    (i) recurrent transactions o a revenue or trading nature;(ii) necessary or the Groups day-to-day operations;

    (iii) carried out in the ordinary course o business on normal commercial terms not more avouthan those generally available to the public; and

    (iv) not detrimental to minority shareholders

    (RRPT Mandate);

    AND THAT the RRPT Mandate, unless revoked or varied by a resolution passed by shareholdershall continue in orce until the conclusion o the next annual general meeting o the Company, or within which the next annual general meeting is required to be held pursuant to Section 143(1) extend to such extensions as may be allowed pursuant to Section 143(2) o the Act);

    AND THAT the Directors be and are hereby authorised to complete and do all such acts and thingexpedient or necessary to give eect to the RRPT Mandate.

    By Order o the Board

    Tina ChanMAICSA 7001659Company Secretary

    Kuala Lumpur30 April 2010

    Notes:

    (1) Appointment o proxy

    A proxy may but need not be a member o the Company and the provisions o Section 149(1)(b) o the Act shall not apply appoint more than one proxy to attend and vote at the meeting, provided that the provisions o Section 149(1)(c) o the Actmore than one proxy, the appointment shall be invalid unless the member species the proportions o holdings to be represmember, the proxy orm must be either under seal or under the hand o an attorney duly authorised. The proxy orm must 32, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, not less than 48 hours beore

    (2) Registration o members/proxies

    Registration o members/proxies attending the 46th AGM will start at 1.00 pm. Members/proxies are required to produ

    (3) Re-election and re-appointment o Directors

    The particulars o all Directors including those seeking re-election/re-appointment (Resolutions 2, 3, 4, 5 and 8) and trelated corporation are set out in IGB Annual Report 2009

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    4 I G B C o r p o r a t i o n B e r h a d

    (c) Renewal o shareholders mandate or share buy-back

    Resolution 10, i approved, will empower the Directors to purchase IGB shares through Bursa Securities up to 10% othe Company. The authorisation, unless revoked or varied at a general meeting, will expire at the next AGM.

    (d) Renewal o shareholders mandate or recurrent related party transactions

    Resolution 11, i approved, will allow the Group to enter into recurrent transactions involving the interests o Related Pnature and necessary or the Groups day-to-day operations. The authorisation, unless revoked or varied at a gene

    Detailed inormation on the renewal o shareholders mandate or share buy-back and recurrent related party transaction

    Shareholders dated 30 April 2010, which is circulated together with IGB Annual Report 2009.

    Notice o Annual General Meeting (continued)

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    Corporate Inormation

    BOARD OF DIRECTORS

    Independent Non-Executive ChairmanTan Sri Abu Talib bin Othman

    Managing DirectorRobert Tan Chung Meng

    Executive DirectorsTan Boon SengTan Boon Lee

    Independent Non-Executive DirectorsTan Sri Dato Seri Khalid Ahmad bin SulaimanTan Kai SengYeoh Chong Swee

    Non-Independent Non-Executive Directors

    Tan Lei ChengPauline Tan Suat MingTony Tan @ Choon KeatDatuk Abdul Habib bin Mansur

    Alternate to Managing DirectorChua Seng Yong

    COMPANY SECRETARYTina Chan Lai Yin

    AUDITORSPricewaterhouseCoopersLevel 10, 1 SentralJalan TraversKuala Lumpur Sentral50706 Kuala LumpurTelephone : 603-21731188Teleax : 603-21731288

    REGISTERED OFFICELevel 32, The Gardens South TowerMid Valley City, Lingkaran Syed Putra59200 Kuala LumpurTelephone : 603-22898989Teleax : 603-22898802

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    Prole o Directors (continued)

    TAN LEI CHENG

    Mdm Tan Lei Cheng, aged 53, is a Non-Independent Non-Executive Director. She was appointed to the Board o

    She holds a Bachelor o Commerce rom the University o Melbourne, Australia and a Bachelor o Law rom KingsShe is also a member o Lincolns Inn and was admitted to the English Bar in 1983.

    She has 28 years o experience in the property industry and the corporate sector. She was the CEO o Tan & Tan rcompany that was listed on Bursa Securities until Goldis took over its listing on 8 May 2002, ollowing the complTan and Goldis. She is presently the Executive Chairman and CEO o Goldis. She also sits on the Boards o KrShe is a member o the World Presidents Organisation, Malaysia Chapter and a board member o Kuala Lumpu

    PAULINE TAN SUAT MING

    Mdm Pauline Tan, aged 64, is a Non-Independent Non-Executive Director. She was appointed to the Board on the Exco, Risk Management and Nomination Committees.

    She holds a Bachelor o Science (Honours) in Biochemistry rom the University o Sussex, England and is a Fello

    Chartered Secretaries and Administrators. She worked as a chemist in Malayan Sugar Manuacturing Co. BerhadYeow Sdn Bhd as an Executive Director in 1976 and Wah Seong group o companies in 1983.

    She is also a director o Wah Seong Corporation Berhad and Goldis.

    TONY TAN @ CHOON KEAT

    Mr Tony Tan, aged 61, is a Non-Independent Non-Executive Director. He was appointed to the Board on 15 JCommittee.

    He holds a Bachelor o Chemical Engineering rom the University o Surrey, England and a Masters in BusineCaliornia, Berkeley, USA. He was the ounding Managing Director o Parkway Holdings Limited, Singapore uretirement in 2005. He is the Chairman o Island Hospital Sdn Bhd and an Executive Director o Napier Propertie

    TAN KAI SENG

    Mr Tan Kai Seng, aged 58, is an Independent Non-Executive Director. He was appointed to the Board on 15 JCommittee.

    He is a Certied Public Accountant, Singapore and a Fellow Member o the Association o Chartered Certied Ahis career with Price Waterhouse, Singapore, and was Finance Director o Parkway Holdings Limited rom 1988

    YEOH CHONG SWEE

    Mr Yeoh Chong Swee, aged 66, is an Independent Non-Executive Director. He was appointed to the Board on 1 and Remuneration Committees.

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    8 I G B C o r p o r a t i o n B e r h a d

    Prole o Directors (continued)

    CHUA SENG YONG

    Mr Chua Seng Yong, aged 47, is the Executive Assistant to the Managing Director. He joined IGB as Financial Contyears experience in the property and hotel industry. He was appointed the alternate Director to the Managing Directo

    He graduated with an Economics degree rom Monash University, Australia in 1984 and attained his Masters in BusSchool o Management, United Kingdom in 1992.

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    10 I G B C o r p o r a t i o n B e r h a d

    ACKNOWLEDGEMENT

    On behal o the Board, I wish to express our thanks and appreciation to the management and sta or their dedication o their duties during the year, to the relevant authorities or their continuing cooperation and assistance and to our shpartners or their support and contributions to the Groups achievements. I wish also to record my thanks to my support.

    TAN SRI ABU TALIB BIN OTHMAN

    Chairman

    Chairmans Statement (continued)

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    Dear Shareholders,

    Financial year ended 31 December 2009 saw Group rev

    RM642.4 million and RM221.5 million, down 7% and up

    previous years RM688.2 million and RM208.4 million.

    Managing Directors Review o Operations

    PROPERTY DEVELOPMENT

    The divisions contribution to Group turnover was RM85.6 million or 52% lower than the previous year. Segment rsignicantly higher at RM33.3 million. This is mainly attributable to provisions or impairment o certain properties

    not required in the current nancial year.

    During the year in review, Laman Sierramas West was successully re-launched with all 47 tropical courtyard tsold. Equally well-received during its rst exclusive preview days was the Garden Manors 41 units o three anvillas. Following the handing over o U-Thant Residences, the 77-unit low-rise development has established itsediplomatic community in the Ampang U-Thant neighbourhood.

    IGB was again honoured in The Edges Top Ten Property Developers Awards 2009, the seventh consecutiveindustry have been acknowledged.

    RETAILKrisAssets Holdings Berhad registered a 56.5% increase in consolidated pre-tax prot o RM180.6 million on thRM227.9 million.In its 10th year, Mid Valley Megamall remained a popular liestyle destination or shoppers and tourists recordingMid Valley KTM Komuter station was approximately 4.1 million commuters; up an astounding 86% rom 2.2 millioncomplimentary shuttle services grew 16% to 580,000 commuters. Occupancy was 100% with 156 tenancies renlatter included Charles & Keith, Krispy Kreme Doughnuts & Coee, Pumpkin Patch, Swarovski and Tissot as wel

    in Malaysia such as CHALA-moda Espanola, Fabulous Tan, Ice Dress me, Just Curtain, Logitech, SILKYGIRL aor the Megamalls North Courts First Floor was also completed, adding eight new outlets and a new access In addition, the Megamall received recognition or its versatile marketing and merchandising concepts with theor Visual Merchandising or its Hari Raya Aidiltri 2008 promotion themed Cherish the Good Old Days in a BrAwards organised by the International Council o Shopping Centers, Inc. (ICSC), the global trade association or thexcellence in shopping centre marketing. On the home ront, the Megamall won two awards or Best PromotionCategory) - the Malaysia Mega Sale Carnival Awards 2009 and the Malaysia Year End Sales Awards 2009 or its

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    12 I G B C o r p o r a t i o n B e r h a d

    Managing Directors Review o Operations (continued)

    PROPERTY INVESTMENT & MANAGEMENTContribution rom Property Investment & Management exceeded RM90.0 million or the year in review, compared agapproximately RM60.0 million. Despite a subdued market environment and strong competition rom new oce buildian average occupancy rate o above 90% or most properties under its management. The Gardens North Tower achietenancy rom leading multinational and local corporations. On November 25, 2009, Mid Val ley City MSC One-Stop Ceaim o encouraging existing MSC companies to take up space in the Gardens oce towers. MSC tenants were invservices at the opening ceremony ociated by Datuk Badlisham Ghazali, CEO o the Malaysia Multimedia Developm

    CONSTRUCTIONRefecting the bearish economy, construction activities slowed or the year in review, with the division reporting reverom the RM154.6 million a year earlier. Three projects completed during the year were U-Thant Residences on Jalan and G-Six Club at Mid Valley City, Kuala Lumpur. On-going major projects include Mid Valley Citys The Gardens RMenara Tan & Tan on Jalan Tun Razak, Kuala Lumpur.

    CORPORATE SOCIAL RESPONSIBILITY (CSR)

    The economic slowdown did not deter the Group rom assisting and encouraging more bright students rom undedreams o obtaining a university degree. Through the IGB Corporation Berhad and Dato Tan Chin Nam Foundatioscholarships and cash grants were disbursed. In the meantime, senior management continued to mentor the scholand support throughout the course o their tertiary education and ater they embark on their career. The year also programme. O these, some are now sharing their talent and skills in companies within the IGB Group ollowing permKicking o the Megamalls CSR calendar was a Chinese New Year 2009 celebration or 25 senior ci tizens rom the SSociety to welcome the year o the Ox. The elderly guests were pampered with a host o relaxing activities; rom bstyled, to a Chinese New Year loh sang (mixing or prosperity) lunch. For Hari Raya Aidiltri, 51 children rom Rahoma Darul Fakir Malaysia and Persatuan Ibu Tunggal PPR Jelatik were treated to an outing and berbuka puasa Boulevard Hotel Mid Valley and Cititel Mid Valley. Both the Chinese New Year and Hari Raya Aidiltri easts were tenants o the Megamall. Closing the year was the annual Christmas charity outing and Come-Meet-Santa und raThe Stepping Stones Living Centre in Taman Seputeh, Kuala Lumpur, the beneciary o this eort.

    For The Gardens Mall, breast cancer was the platorm or an awareness campaign with media partners and tenants iLauder.

    THE YEAR AHEAD

    The overall economic landscape o 2009, compounded by the H1N1 outbreak, saw a sotening in the IGB Groups busperormance across the board, the various divisions have held up and remain resilient. The Mid Valley City Phase 3, been re-planned as a commercial development and will proceed upon receipt o the requisite approvals. Two residenJelatek which enjoys easy access to LRT services and the newly-opened DUKE (Damansara-Ulu Kelang ExpresswayPlace, which also boasts 240,000 sq t o prime oce and retail space or leasing, will be ready or vacant possessionrespectively ater an acceleration in construction activities.

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    Corporate Governance Statement

    The Malaysian Code on Corporate Governance (Code) sets out principles and best practices on structures antheir operations towards achieving the optimal governance ramework.

    The Board o Directors (Board) o IGB is supportive o the adoption o the principles and best practices as enshIt is recognised that high standards o corporate governance are imperative to saeguard the interests o all stavalue.

    The Board is pleased to report to shareholders on the manner the Group has applied the principles, and the extengood governance as set out in the Code pursuant to Paragraph 15.25 o Bursa Securities Main Market Listing Rand best practices have been applied throughout the nancial year ended 31 December 2009 (FY2009).

    I. BOARD

    (1) Board responsibility

    The Board has the overall responsibility or corporate governance, strategic direction, ormulation oand business o the Company. An indication o the Boards commitment is refected in the condincorporation o various processes and systems as well as the establishment o relevant Board Co

    (2) Board balance

    The Board, led by an Independent Non-Executive Chairman, has 11 members, comprising 8 NExecutive Directors (EDs), with 4 o the 8 NEDs being Independent Directors. Together, the Directpublic and private sectors and diverse academic backgrounds provide a collective range o skills, ethe successul direction o the Group. A brie description o the background o each Director is pres

    The roles o the Chairman and the Managing Director (MD) are distinct and separate to ensureChairman is responsible or ensuring Board eectiveness and conduct, whilst the MD has overall respo the Group and together with the EDs ensure that strategies, policies and matters approved by th(Exco) are eectively implemented. The presence o Independent Directors ulls a pivotal role Independent Directors provide independent and constructive views in ensuring that the strategiesstudied and deliberated in the interest o the Group and the stakeholders.

    Tan Sri Dato Seri Khalid Ahmad bin Sulaiman is the Senior Independent NED to whom concerns reconveyed.

    (3) Board meetings and access to inormation

    The Board meets at least 4 times a year, with special meetings convened as warranted by specic meetings were held and all Directors have complied with the requirements in respect o board meetio Association (Articles). The attendance record o each Director was as ollows:

    Number o meetings

    Tan Sri Abu Talib bin Othman 4

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    Corporate Governance Statement (continued)

    to be deliberated. In most instances, senior management o the Company as well as external adviserBoard meetings to provide insight and to urnish clarication on issues that may be raised by the Boardinterest, the Director in such a position will make a declaration in the meeting. The Director concerned making process in which he or she has interest in. A record o the Boards deliberations o the issues didischarging its duties and responsibilities is captured in the minutes o each meeting.

    The Directors are also notied o any corporate announcement released to Bursa Securities and the impsecurities o the Company prior to the announcement o the nancial results or corporate proposals. Ththe various requirements and updates issued by regulatory authorities.

    Directors have access to all inormation and records o the Company and also the advice and services oSecretary in urtherance o their duties. They are also permitted to seek independent proessional advicdischarge o their responsibilities as they may deem necessary and appropriate.

    (4) Board Committees

    The Board has entrusted specic responsibilities to several Board Committees, which operate withinAt each Board meeting, the minutes o the Board Committees are presented to the Board or inorm

    chairmen will also report to the Board on the key issues deliberated by the Board Committees at its meCommittees, their attendance at the Committees meetings and terms o reerence were as ollows:

    (a) Exco

    The Exco comprises 2 EDs, the MD and a Non-Independent NED, namely Tan Boon Seng (CTan Boon Lee and Pauline Tan Suat Ming. Exco has ull authority as delegated by the Board to businesses or existing investments and to review and/or implement strategic plans or the Groway o limits determined by the Board, and to undertake such unctions and all matters as maBoard rom time to time.

    Exco meets regularly to review the managements reports on progress o business operationsmanagements recommendations on key issues including acquisitions, divestments, restructuriMajor investment decisions and managements proposals above certain limits are reserverecommendation o Exco. Special Exco meetings are also held on an ad hoc basis to review matters that require Excos approval. In attendance are the Heads o Divisions, Chie Financial O

    Exco met 4 times in FY2009 which was attended by all members.

    (b) Audit Committee (AC)

    The AC comprises 3 Independent NEDs and a Non-Independent NED, namely Tan Sri Dato(Chairman), Tan Kai Seng, Yeoh Chong Swee and Tony Tan @ Choon Keat. With an independeno NEDs, the composition o AC is ully compliant with the Code and the MMLR.

    AC holds quarterly meetings to review matters including the Groups nancial reporting, the au

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    Corporate Governance Statement (continued)

    (d) Remuneration Committee (RC)

    The RC comprises 2 Independent NEDs and the MD, namely Tan Sri Abu Talib bin OthmRobert Tan Chung Meng.

    RC recommends to the Board the policy ramework on terms o employment o and on all and EDs and is also authorised to review and approve the annual salary increments and bmanagement ocers o the Group. RC also reviews NEDs ees, and thereupon recommendin FY2009 which was attended by all members.

    (e) Risk Management Committee (RMC)

    The RMC comprises the members o Exco. RMC is to review and articulate the strategies ao the Group risk and ensure that risk policies and procedures are aligned to the business sBoard are properly implemented.

    () Share & ESOS Committee (SEC)

    The SEC comprises the MD and 2 EDs, namely Robert Tan Chung Meng, Tan Boon Sengor regulating and approving securities transactions and registrations, and or implementingand the Share Buy-Back o the Company.

    (5) Appointment and Re-election o Directors

    Appointments to the Board are the responsibility o the ull Board on the recommendation o NDirectors to the Board as well as the re-appointment/re-election o Directors seeking re-appointme

    The Companys Articles provides that all Directors should submit themselves or re-election at leas

    the MMLR. The Articles also provides that 1/3 o the Board shall retire rom oce and be eligible or70 years o age are required to submit themselves or re-appointment annually in accordance with

    During FY2009, there were no new appointments to the Board. In accordance with the MMLR, eacthan 10 directorships in public listed companies (PLCs) and not more than 15 directorships in non

    The names and details o Directors seeking re-appointment/re-election at the 46th AGM are discloand Prole o Directors.

    (6) Directors Training

    During FY2009, all Directors had attended various training programmes, seminars and conor collectively considered as relevant and useul in contributing to the eective discharge o ththat included corporate governance, relevant industry updates and global business developmenDevelopments, Board Dynamics & Board Improvement Programme, The Global Economy in the Risk Faced by Audit Committee, Pricing Excellence and Updates on Malaysian Securities Law and

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    16 I G B C o r p o r a t i o n B e r h a d

    Corporate Governance Statement (continued)

    Salaries

    RM

    Fees

    RM

    * Other Emoluments

    RM

    ** Bene

    EDsNEDs

    1,818,000-

    -260,000

    1,050,000144,000

    8

    Total 1,818,000 260,000 1,194,000 9

    Notes:

    * Other emoluments include: bonuses, incentives, retirement benets, provisions or leave and allowances.

    ** Benets-in-kind include: rental payments, motor vehicles, club memberships and personal expenses.

    The aggregate remuneration o Directors in respective bands o RM50,000 during the year was as ollows:

    Range o Remuneration EDs

    Below RM50,000

    RM150,001 to RM200,000

    RM350,001 to RM400,000 1

    RM500,001 to RM550,000 1

    RM2,050,000 to RM2,100,000 2

    Notes:

    1 Details o Directors remuneration are not shown with reerence to Directors individually, both or security and condentia

    the transparency and accountability aspects o the corporate governance on Directors remuneration are appropriately s

    2 Remuneration paid to an alternate Director who is a ull time employee o the Group has been placed according to the c

    III. INVESTOR RELATIONS AND SHAREHOLDERS COMMUNICATION

    The Board acknowledges the need or shareholders to be inormed o all material business matters aecting announcements made to Bursa Securities, the timely release o quarterly and annual nancial results providewith an overview o the Groups perormance and operations. The Group has a website at http://www.igbcorpand shareholders can access inormation.

    The Group conducts regular dialogues, briengs and meetings with investors and nancial analysts to providbased on permissible disclosures. However, inormation that is price-sensitive or that may be regarded as undthe Group is not disclosed in these sessions until ater the prescribed announcement to Bursa Securities has b

    AGM, usually held in May each year, is the principal orum or dialogue with shareholders. At each AGM, theparticipate in the proceedings and ask questions about the resolutions being proposed and corporate developEDs respond to shareholders questions, where appropriate, during the meeting. The external auditors also pand independent view, i required, on issues or concern highlighted by shareholders. A press conerence is no

    IV. ACCOUNTABILITY AND AUDIT

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    Corporate Governance Statement (continued)

    To assist the Board in maintaining a sound system o internal control or the purposes o saeguaGroups assets, the Group has in place, an adequately resourced Group Internal Audit (GIA) Depawhich reports to AC provides the Board with much assurance it requires regarding the adequacycontrol. As risk management is a signicant component o a sound system o internal control, the mmanagement process to help the Board in identiying, evaluating and managing risks.

    An overview o the state o internal control o the Group is set out on in the Statement o Internal C

    (3) Relationship with auditors

    The Board maintains a ormal and transparent proessional relationship with the Groups auditors,

    V. ADDITIONAL DISCLOSURES

    (1) Material contracts

    There were no material contracts entered into by the Company or its subsidiaries involving Direceither subsisting as at 31 December 2009 or entered into since the end o the previous nancial ye

    (2) Share Buy-Back

    During FY2009, the Company purchased a total o 8,082,100 o its ordinary shares o RM0.50 eachrom RM1.40 to RM2.03 per share. The total consideration o RM13,469,034-83 were nanced shares so purchased by the Company were retained as treasury shares.

    Details o the Companys share buy-back exercises or the year under review are set out in the Fin

    (3) Recurrent Related Party Transactions (Recurrent RPTs)

    At the last AGM held on 27 May 2009, the Company obtained a shareholders mandate to allow th

    In accordance with Section 3.1.5 o Practice Note No. 12 o the MMLR, the details o Recurrent RPTsmandate during FY2009 were as ollows:

    Related

    Parties Nature o Recurrent RPTs with IGB Group Interested Related PartiesKrisAssetsHoldingsBerhad groupo companies(Kris Group)

    Lease/tenancy o properties/assets & relatedacilities to/rom Related Parties or no morethan 3 years nor payment in lump sumProvision/receipt o management, consultancy& all types o services including but not limitedto project development, property management,

    Robert Tan Chung Meng (RTan Boon Seng (TBS)b

    Tan Lei Cheng (TLC)c

    Tan Boon Lee (TBL)d

    Pauline Tan Suat Ming (PTSTony Tan @ Choon Keat (TT

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    18 I G B C o r p o r a t i o n B e r h a d

    Corporate Governance Statement (continued)

    RelatedParties Nature o Recurrent RPTs with IGB Group Interested Related Parties

    WSTSB groupo companies(WSTSBGroup)

    Lease/tenancy o properties/assets & relatedacilities to/rom Related Parties or no morethan 3 years nor payment in lump sumProvision/receipt o management, consultancy& all types o services including but not limitedto project development, property management,sales & marketing, hotel, construction,mechanical & engineering, landscaping,advertising, maintenance, security & supportservicesPurchase/supply o building materials, electricalequipment/appliances & related products/servicesSale o land or land based properties in theordinary course o business o not more than10% o any o the percentage ratios in theMMLR

    RTCMa

    TBSb

    TLCc

    TBLd

    PTSMe

    TTCK

    DTCNg

    DYCIh

    ETHNi

    Goldisj

    TCNSBk

    TKYSBl

    WSTSBm

    TCNSB Lease/tenancy o properties/assets & relatedacilities to/rom Related Parties or no morethan 3 years nor payment in lump sumProvision/receipt o management, consultancy& all types o services including but not limitedto project development, property management,sales & marketing, hotel, construction,

    mechanical & engineering, landscaping,advertising, maintenance, security & supportservicesSale o land or land based properties in theordinary course o business o not more than10% o any o the percentage ratios in theMMLR

    TBSb

    TLCc

    TBLd

    DTCNg

    Goldisj

    TCNSBk

    WSTSBm

    Wah SeongCorporationBerhad group

    o companies(WSCB Group)

    Lease/tenancy o properties/assets & relatedacilities to/rom Related Parties or no morethan 3 years nor payment in lump sum

    Purchase/supply o building materials, electrical

    equipment/appliances & related products/services

    RTCMa

    TBSb

    TLCc

    TBLd

    PTSMe

    TTCK

    DTCNg

    DYCIh

    ETHNi

    Goldisj

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    Corporate Governance Statement (continued)

    RelatedParties Nature o Recurrent RPTs with IGB Group Interested Related Parties

    Subsidiaries oIGB:

    Cititel HotelManagementSdn Bhd

    (CHM)Tan & TanRealty SdnBhd (TTR)

    Lease/tenancy o properties/assets & relatedacilities to/rom Related Parties or no morethan 3 years nor payment in lump sumProvision/receipt o management, consultancy& all types o services including but not limitedto project development, property management,sales & marketing, hotel, construction,mechanical & engineering, landscaping,advertising, maintenance, security & supportservicesPurchase/supply o building materials, electricalequipment/appliances & related products/services

    RTCMa

    TBSb

    TLCc

    TBLd

    PTSMe

    TTCK

    DTCNg

    DYCIh

    ETHNi

    Goldisj

    TCNSBk

    TKYSBl

    WSTSBm

    Notes:

    a RTCM is a Director o IGB Group, Kris Group, WSCB Group, WSTSB Group and TKYSB GrouKris; a substantial shareholder o Goldis, WSCB and TKYSB. He is the ather o ETHN and a b

    b TBS is a Director o IGB and WSTSB Group. He is a substantial shareholder o Goldis. He is aTBL; and a brother-in-law to Chong Kim Weng (CKW), a senior partner o J&C.

    c TLC is a Director o IGB Group, Kris, Goldis Group, TCNSB and WSTSB. She is a daughter o the spouse o CKW.

    d TBL is a Director o IGB Group, Kris, Goldis Group, TCNSB and WSTSB Group. He is a son oand a brother-in-law to CKW.

    e PTSM is a Director o IGB, Goldis, WSCB, WSTSB Group and TKYSB Group. She is a major shshareholder o Goldis, WSCB and TKYSB. She is the mother to DYCI and a sister o RTCM an

    TTCK is a Director o IGB, TKYSB Group and WSTSB Group. He is a major shareholder o IGGoldis, WSCB and TKYSB. He is a brother o RTCM and PTSM.

    g DTCN is a Director o TCNSB and WSTSB Group. DTCN is the ather o TBS, TLC and TBL; ah DYCI is a Director o IGB Group and Kris Group. He is a son o PTSM.i ETHN is alternate to RTCM on the Board o Kris. She is a daughter o RTCM.j Goldis is a major shareholder o IGB and Kris and a person connected to RTCM, TBS, DTC

    WSTSB.k

    TCNSB is a major shareholder o IGB and Kris; a substantial shareholder o Goldis, WSCB aDTCN, TBS, TLC and TBL.l TKYSB is a major shareholder o IGB and Kris; a substantial shareholder o Goldis, WSCB a

    RTCM, PTSM and TTCK.m WSTSB is a major shareholder o IGB and Kris; a substantial shareholder o Goldis, WSCB, CH

    RTCM, DTCN, PTSM, TTCK, TBS, TLC, TBL, TCNSB and TKYSB.n Antony Patrick Barragry is a Director o IGB Group. He is also a Director and a substantial shar

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    20 I G B C o r p o r a t i o n B e r h a d

    Audit Committee Report

    I. FORMATION

    The Audit Committee (AC) was established by the Board on 12 April 1994.

    II. OBJECTIVES

    The primary objectives o AC are:

    (a) ensure transparency, integrity and accountability in the Groups activities so as to saeguard the rights

    (b) provide assistance to the Board in discharging its responsibilities relating to the Groups managemennancial reporting and compliance o statutory and legal requirements; and

    (c) maintain through regularly scheduled meetings, a direct line o communication between the Board, senioauditors.

    III. TERMS OF REFERENCE

    AC is governed by the ollowing terms o reerence:

    (1) Membership

    AC members shall be appointed by the Board upon the recommendations o NC and shall consist whom must be NEDs, with a majority o them being Independent Directors. AC members should be nwhom shall be a member o the Malaysian Institute o Accountants or ulls such other requirements aSecurities. AC Chairman shall be an Independent NED. No alternate Director shall be appointed to AC

    (2) Authority

    AC has the ollowing authority as empowered by the Board:

    (a) investigate any activity within its terms o reerence or as directed by the Board;(b) obtain the resources required to perorm its duties;(c) ull and unrestricted access to inormation and documents pertaining to the Group;(d) direct communication channels with the external and internal auditors, as well as all employees(e) obtain independent proessional advice as necessary.

    (3) Responsibilities and Duties

    The responsibilities and duties o AC shall be:

    (a) review the quarterly results and annual nancial statements beore submission to the Board or

    goingconcernassumption;

    changesandimplementationofnewaccountingpoliciesandpractices;

    majorjudgementalareas,signicantandunusualevents;and

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    Audit Committee Report (continued)

    (d) review related party transactions (RPTs) and confict o interest situations that may arisecourse o conduct that raises questions o management integrity.

    (e) consider and recommend the nomination and appointment, the audit ee and any questions o

    o external auditors.

    () report promptly to Bursa Securities on any matter reported by it to the Board which has nobreach o the MMLR.

    (g) review all prospective nancial inormation provided to the regulators and/or the public.(h) prepare reports, i the circumstances arise or at least once a year, to the Board summaris

    primary responsibilities.

    (i) act on any matters as may be directed by the Board rom time to time.

    (4) Meetings

    AC meetings shall be held at least 4 times a year. Other Board members and senior management mAC. At least twice a year, AC shall meet with external auditors without any executive ocer o the Gmay be held upon request by any AC member, internal or external auditors.

    The quorum or AC meeting shall be 2 members present in person and a majority o whom must bAC Chairman, the members present shall elect a Chairman or the meeting amongst AC members to the Board, and AC Chairman shall report on key issues to the Board.

    IV. COMPOSITION

    The members o AC during FY2009 were as ollows:

    Tan Sri Dato Seri Khalid Ahmad bin Sulaiman, AC Chairman (Senior Independent NED)Tan Kai Seng (Independent NED)Yeoh Chong Swee (Independent NED)Tony Tan @ Choon Keat (Non-Independent NED)

    V. MEETINGS AND ATTENDANCE

    AC met on 4 occasions during FY2009 and the attendance o each AC member was as ollows:

    Tan Sri Dato Seri Khalid Ahmad bin Sulaiman

    Tan Kai Seng

    Yeoh Chong Swee

    Tony Tan @ Choon Keat

    22

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    22 I G B C o r p o r a t i o n B e r h a d

    Audit Committee Report (continued)

    (2) External Audit

    (a) Reviewed and approved PwCs audit plan and the scope or the annual audit.(b) Recommended to the Board the appointment and remuneration o PwC.(c) Reviewed and directed ollow-up action, when needed, the ndings o PwC on the results o the(d) Reviewed the extent o assistance rendered by management and issues and reservations arisi

    presence o executive board members and management sta.

    (3) Internal Audit

    (a) Reviewed and approved GIAs annual audit plan which covered projects and entities acrossGroup.

    (b) Reviewed and directed ollow-up action, when needed, on GIA reports on the Group and ad hoc(c) Reviewed GIA reports on the eectiveness and adequacy o internal controls, risk manage

    governance processes.

    (4) RPTs

    Reviewed RPTs that entered into by the Group.

    VII. INTERNAL AUDIT FUNCTION

    The Groups internal audit unction is carried out by GIA Department. It reports to AC on its activities basedGIA Department adopts a risk-based auditing approach, taking into account global best practices and industDepartment is to provide AC with independent and objective reports on the eectiveness o the system oGIA reports arising rom assignments were issued to management or their response, corrective actions anrecommendations. GIA reports were subsequently tabled to AC or their deliberation.

    GIA Department also works collaboratively with Exco and senior management to monitor the risk governance processes o the Group to ensure their adequacy and eectiveness.

    The costs incurred or GIA unction or FY2009 were RM542,000.

    Further details o the activities o GIA are set out in the Statement o Internal Control.

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    Statement o Internal Control

    RESPONSIBILITY

    The Board o Directors recognises the importance o maintaining a sound system o internal control and rishareholders investment and the Companys assets. Thereore, the Board arms its overall responsibil ity or thethe systems o internal control, and or reviewing the adequacy and eectiveness o the Groups internal controsystems, including compliance with applicable laws, regulations, rules, directives and guidelines. The review covecontrols, and risk management procedures o the Group. However, such procedures are designed to manage r

    achieve business objectives and can only provide reasonable and not absolute assurance against material errors

    RISK MANAGEMENT

    The RMC, appointed by the Board, comprised members o the Exco. Risk management is an ongoing process reviewing signicant risks aced by the businesses in the Group. The risk management process involved all businidentiying signicant risks impacting the achievement o business objectives o the Group. It also involved the ao such risks and o the eectiveness o controls in place to manage them. The process also involved the enhancwhen there are changes to business environment or regulatory guidelines.

    The management assists the Board in the implementation o the Boards policies and procedures on risk and risks aced and in the design, operation and monitoring o suitable internal controls to mitigate and control theseoperating within these policies. The GIA unction and the external auditors provide urther independent assuranc

    KEY INTERNAL CONTROL PROCESSES

    Whilst the Board maintained ull control and direction over appropriate strategic, nancial, organisational and management the implementation o the systems o internal control.

    The main elements in the internal control ramework included:

    Anorganisationalstructurewithformallydenedlinesofresponsibilityanddelegationofauthorityforallbu

    the Group; Structuredlimitsofauthority,whichprovidesaframeworkofauthorityandaccountabilitywithintheGrou

    decision making at the appropriate levels in the Group; Preparationofannualoperatingbudgetsandcapital expenditureplansby the businessandfunctiona

    approved by the MD and the Board; Assessmentofquarterlyperformanceofoperatingdepartmentsagainstapprovedbudgetsandreporting

    Establishmentofstandardoperatingpoliciesandprocedurestoensurecompliancewithinternalcontrolsawhich are reviewed regularly and approved by the management;

    RegularreportingofaccountingandlegaldevelopmentsandsignicantissuestotheBoard;and

    Implementationofproperguidelinesforhiringandterminationofstaff,formaltrainingprogrammesforsother procedures in place to ensure that sta are competent and adequately trained in carrying out their r

    The GIA unction monitors compliance with policies and standards and the eectiveness o the internal control

    24 I G B C o r p o r a t i o n B e r h a d

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    24 I G B C o r p o r a t i o n B e r h a d

    Analysis o Shareholdingsas at 6 April 2010

    Authorised Share Capital : RM1,200,000,000Issued and Paid-up Share Capital : RM745,148,003.50*Class o Shares : Ordinary shares o RM0.50 eachVoting Rights : On show o hands - 1 vote

    On a poll - 1 vote or each share held* inclusive o 30,338,200 treasury shares

    I. SIZE OF SHAREHOLDINGS

    Range o Shareholdings No. o Shareholders No. o Issued Sh

    Less than 100 726 1

    100 to 1,000 2,823 2,24

    1,001 to 10,000 9,818 39,26

    10,001 to 100,000 2,270 59,52

    100,001 to less than 5% o issued shares*1 420 965,86

    5% and above o issued shares 2 393,03

    Total 16,059 1,459,95

    *1 excluding 30,338,200 shares bought-back by the Company and retained as treasury shares as at 6 April 2010.

    II. REGISTER OF SUBSTANTIAL SHAREHOLDERS

    Name o Shareholders Direct % o Issued Shares*2 Deem

    Goldis Berhad 381,349,224 26.12 20,23

    Robert Tan Chung Meng 3,915,562 0.27 500,92Pauline Tan Suat Ming 1,000,777 0.07 500,94

    Tony Tan @ Choon Keat - - 500,92

    Tan Chin Nam Sdn Bhd 52,016,945 3.56 473,52

    Tan Kim Yeow Sdn Bhd 30,855,682 2.11 470,06

    Wah Seong (Malaya) Trading Co. Sdn Bhd 45,385,159 3.11 422,86

    Employees Provident Fund Board 146,328,990 10.02

    *2 Based on issued and paid-up share capital o 1,490,296,007 less 30,338,200 shares as at 6 April 2010.

    *3 Deemed to have interests in IGB shares held by other corporations by virtue o Section 6A(4) o the Companies Act 1965 (Act) athe Act.

    III. THIRTY LARGEST SHAREHOLDERS

    No. o Sh

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    Analysis o Shareholdings (continued)as at 6 April 2010

    III. THIRTY LARGEST SHAREHOLDERS (continued)

    No. o

    11. Tan Kim Yeow Sendirian Berhad 2

    12. M & A Nominee (Asing) Sdn Bhd 2

    Montego Assets Limited

    13. Mayban Nominees (Tempatan) Sdn Bhd 2

    Maybank Trustees Berhad or Public Regular Savings Fund (N14011940100)

    14. Multistock Sdn Bhd 2

    15. HSBC Nominees (Asing) Sdn Bhd 1

    Exempt AN or HSBC Private Bank (Suisse) S.A. (Hong Kong AC CL)

    16. Citigroup Nominees (Asing) Sdn Bhd 1

    Chase Manhattan Trustees Limited or Pacic Trust (CBLDN)

    17. Mayban Nominees (Asing) Sdn Bhd 1

    DBS Bank or Ripley Services Limited (200932)

    18. Amanahraya Trustees Berhad 1

    Public Far-East Property & Resorts Fund

    19. HSBC Nominees (Asing) Sdn Bhd 1Exempt AN or HSBC Private Bank (Suisse) S.A. (SPORE TST AC CL)

    20. HSBC Nominees (Asing) Sdn Bhd 1

    Exempt AN or JPMorgan Chase Bank, National Association (Norges BK Lend)

    21. Citigroup Nominees (Asing) Sdn Bhd 1

    CBNY or Dimensional Emerging Markets Value Fund

    22. HSBC Nominees (Asing) Sdn Bhd 1

    BBH and Co Boston or Vanguard Emerging Markets Stock Index Fund

    23. Cartaban Nominees (Asing) Sdn Bhd

    Government o Singapore Investment Corporation Pte Ltd or Government o Singapore (C)24. Cartaban Nominees (Asing) Sdn Bhd

    State Street or Ishares MSCI Emerging Markets Index Fund

    25. Wah Seong Enterprises Sdn Bhd

    26. HSBC Nominees (Asing) Sdn Bhd

    Exempt AN or JPMorgan Chase Bank, National Association (U.A.E.)

    27. SBB Nominees (Tempatan) Sdn Bhd

    Employees Provident Fund Board

    28. BBL Nominees (Tempatan) Sdn Bhd

    Pledged Securities Account or Dato Tan Chin Nam (100171)

    29. Citigroup Nominees (Tempatan) Sdn Bhd

    ING Insurance Berhad (INV-IL PAR)

    30. Mayban Nominees (Asing) Sdn Bhd

    DBS Bank or Timbarra Services Limited (240262)

    Total 98

    26 I G B C o r p o r a t i o n B e r h a d

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    26 I G B C o r p o r a t i o n B e r h a d

    Analysis o Shareholdings (continued)as at 6 April 2010

    V. REGISTER OF DIRECTORS SHAREHOLDINGS IN KRISASSETS HOLDINGS BERHAD

    Name o Directors Direct % o Issued Shares*4 Deeme

    Robert Tan Chung Meng - - 247,529,0

    Pauline Tan Suat Ming - - 247,529,0

    Tony Tan @ Choon Keat - - 247,529,0

    Tan Boon Lee 1,100 negligible

    Tan Sri Dato Seri Khalid Ahmad bin Sulaiman 29,864 0.01 10,0

    Tan Kai Seng 4,743 negligible

    Chua Seng Yong 62,424 0.02

    *4 Based on issued and paid-up share capital o 337,057,630 less 100,000 shares as at 6 April 2010.

    *5 Deemed to have interests in Kris shares held by other corporations by virtue o Section 6A(4) o the Act and/or by reerenc

    VI. REGISTER OF DIRECTORS WARRANTHOLDINGS IN KRISASSETS HOLDINGS BERHAD

    Name o Directors Direct % o Outstanding Warrants*6 Deeme

    Tan Sri Abu Talib bin Othman 66 negligible

    Robert Tan Chung Meng 662,730 0.64 86,216,0

    Pauline Tan Suat Ming 16,268 0.02 86,216,0

    Tony Tan @ Choon Keat - - 86,216,0

    Tan Lei Cheng 44,045 0.04 39,9

    Chua Seng Yong 87 negligible

    *

    6

    Outstanding warrants as at 6 April 2010 was 103,579,036.*7 Deemed to have interests in Kris warrants held by other corporations by virtue o Section 6A(4) o the Act.

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    List o Top Ten Major Properties by Valueheld by IGB Group as at 31 December 2009

    Location/Address Land Tenure

    Age o

    Building

    (Years)

    Description/

    Existing use

    1 Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur

    Leasehold expiring2103

    3 Shopping complex known asThe Gardens Mall together withapproximately 4,300 car parking

    2 Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur

    Leasehold expiring2103

    10 Shopping complex known as MidMegamall together with approxim6,500 car parking bays

    3 Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur

    Leasehold expiring2103

    - 627 keys The Gardens Hotel andResidences at Mid Valley City

    4 Mid Valley City

    Lingkaran Syed Putra59200 Kuala Lumpur

    Leasehold expiring

    2103

    2 420,000 sq. t oce space at The

    Gardens North Tower at Mid Val

    5 Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur

    Leasehold expiring2103

    2 410,000 sq. t oce space at TheGardens South Tower at Mid Va

    6 Lot 15256Mukim o Labu, District o Seremban,

    Negeri Sembilan

    Freehold - 344.0 hectares approved mixeddevelopment or residential and

    commercial use and unsold comunits

    7 368-B Jalan Tun Razak50400 Kuala Lumpur

    Freehold 20 242 keys all-suite hotel known asMiCasa All Suite Hotel

    8 Mid Valley CityLingkaran Syed Putra59200 Kuala Lumpur

    Leasehold expiring2103

    10 646 rooms Cititel Hotel Mid Valle

    9 Teluk Belaga, Pangkor Island Freehold 24 258 rooms resort hotel known asPangkor Island Beach Resort

    10 207 Jalan Tun Razak50400 Kuala Lumpur

    Freehold 16 340,000 sq t oce space at MenTan & Tan

    28 I G B C o r p o r a t i o n B e r h a d

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    Five-Year Group Financial Highlights

    Note 1

    With eect rom nancial year 2006, prot beore tax includes share o results o associates net o tax. Associates tax amyear 2006, RM12.6 million or nancial year 2007, RM14.3 million or nancial year 2008 and RM10.9 million or nancia

    Revenue (RM000)

    PROFIT BeFORe TAX (RM000)

    2005 2006 2007

    REVENUE RM000 619,677 718,961 673,931

    PROFIT BEFORE TAX 1 RM000 173,357 202,028 204,189

    PROFIT ATTRIBUTABLE TO EQUITY HOLDERS RM000 105,458 135,915 136,851

    ISSUED SHARE CAPITAL (RM0.50) RM000 730,277 732,523 744,862

    SHAREHOLDERS FUNDS RM000 2,382,386 2,477,603 2,639,601

    TOTAL ASSETS RM000 3,696,304 3,861,714 4,342,096

    EARNINGS PER SHARE (Basic) sen 7.2 9.3 9.3

    NET ASSETS PER SHARE RM 1.7 1.8 1.8

    GROSS DIVIDENDS PER SHARE sen 2.5 2.5 2.5

    DIVIDEND RATE % 5.0 5.0 5.0

    208,

    204,18

    202,028

    2009

    2008

    2007

    2006

    642,442

    6

    673

    619,677

    0 100,000 200,000 300,000 400,000 500,000 600,000

    2009

    2008

    2007

    2006

    2005

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    Cott

    Directors report

    Financial statements

    Income statements

    Balance sheets

    Consolidated statement o changes in equity

    Company statement o changes in equity

    Cash fow statements

    Notes to the nancial statements

    Rport ad Fiacial statmt

    30 I G B C o r p o r a t i o n B e r h a d

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    The Directors are pleased to present their report to the members together with the audited nancial statements o the Gyear ended 31 December 2009.

    Principal activities and corporate inormation

    The principal activities o the Company during the nancial year are those o investment holding and property developGroup mainly consist o property development, property investment and management, hotel operations, construction been no signicant changes in the nature o these activities during the nancial year.

    The Company is a public limited liability company, incorporated and domiciled in Malaysia, and listed on the Main MBerhad.

    The address o the principal place o business and registered oce o the Company is as ollows:

    Level 32, The Gardens South TowerMid Valley City, Lingkaran Syed Putra59200 Kuala Lumpur

    Financial results

    Prot or the nancial year

    Attributable to:

    Equity holders o the Company

    Minority interest

    Dividends

    On 25 February 2010, the Directors have declared an interim dividend in respect o the nancial year ended 31 Decpaid on 15 April 2010 to every member who is entitled to receive the dividend as at 4.00 pm on 15 March 2010.

    The Directors do not recommend the payment o any nal dividend or the nancial year ended 31 December 2009.

    Directors Reportor the nancial year ended 31 December 2009

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    Directors

    The Directors in oce since the date o the last report are:

    Tan Sri Abu Talib Bin OthmanRobert Tan Chung MengTan Boon SengTan Boon LeeTan Lei Cheng

    Pauline Tan Suat MingTan Sri Dato Seri Khalid Ahmad Bin SulaimanDatuk Abdul Habib Bin MansurTony Tan @ Choon KeatTan Kai SengYeoh Chong SweeChua Seng Yong (alternate to Robert Tan Chung Meng)

    In accordance with Article 85 o the Companys Articles o Association, Tan Lei Cheng, Tan Boon Lee, Tony Tanby rotation at the orthcoming Annual General Meeting and, being eligible, oer themselves or re-election.

    Tan Sri Abu Talib Bin Othman and Tan Sri Dato Seri Khalid Ahmad Bin Sulaiman, being over seventy years o129(2) o the Companies Act, 1965. Tan Sri Abu Talib Bin Othman oers himsel or re-appointment under Sectiohold oce until the conclusion o the next Annual General Meeting. Tan Sri Dato Seri Khalid Ahmad Bin Sulaimaand shall cease to be Director at the conclusion o the next Annual General Meeting.

    Directors interests

    According to the Register o Directors Shareholdings, the interests o Directors in oce at the end o the nanCompany and its related corporations are as ollows:

    In the Company Number o ordinary sh

    1 January Addition

    Tan Sri Abu Talib Bin Othman

    Direct 1,385,000 -

    Robert Tan Chung Meng

    Direct 3,915,562 -

    Indirect 506,307,678 1,143,900Tan Boon Seng

    Indirect 16,104,975 -

    Tan Boon Lee

    Direct 2,895,574 -

    Tan Sri Dato Seri Khalid Ahmad Bin Sulaiman

    Directors Report (continued)or the nancial year ended 31 December 2009

    32 I G B C o r p o r a t i o n B e r h a d

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    Directors interests (continued)

    In KrisAssets Holdings Berhad Number o ordinary share

    (subsidiary) 1 January Addition

    Robert Tan Chung Meng

    Indirect 247,529,056 -

    Tan Boon Lee

    Direct 1,100 -Tan Sri Dato Seri Khalid Ahmad Bin Sulaiman

    Direct 29,864 -

    Indirect 10,013 -

    Pauline Tan Suat Ming

    Indirect 247,529,056 -

    Tony Tan @ Choon Keat

    Indirect 247,529,056 -

    Tan Kai Seng

    Direct 4,743 -Chua Seng Yong

    Direct 1,424 20,300

    In KrisAssets Holdings Berhad Number o warrants

    (subsidiary) 1 January Addition

    Tan Sri Abu Talib Bin Othman

    Direct 66 -

    Robert Tan Chung Meng

    Direct 662,730 -

    Indirect 86,216,077 -

    Tan Lei Cheng

    Direct 44,045 -

    Indirect 39,916 -

    Pauline Tan Suat Ming

    Direct 16,268 -Indirect 86,216,077 -

    Tony Tan @ Choon Keat

    Indirect 86,216,077 -

    Chua Seng Yong

    Direct 87 -

    Directors Report (continued)or the nancial year ended 31 December 2009

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    Statutory inormation on the nancial statements

    Beore the income statements and balance sheets were made out, the Directors took reasonable steps:

    (a) to ascertain that proper action had been taken in relation to the writing o o bad debts and the making o athemselves that all known bad debts had been written o and that adequate allowance had been made o

    (b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course accounting records o the Group and Company had been written down to an amount which they might be

    At the date o this report, the Directors are not aware o any circumstances:

    (a) which would render the amounts written o or bad debts or the amount o the allowance or doubtul debtsand Company inadequate to any substantial extent; or

    (b) which would render the values attributed to current assets in the nancial statements o the Group and Co

    (c) which have arisen which would render adherence to the existing method o valuation o assets or liabilitieor inappropriate.

    No contingent or other liability has become enorceable or is likely to become enorceable within the period o tweyear which, in the opinion o the Directors, will or may aect the ability o the Group or Company to meet their ob

    At the date o this report, there does not exist:

    (a) any charge on the assets o the Group or Company which has arisen since the end o the nancial yeaperson; or

    (b) any contingent liability o the Group or Company which has arisen since the end o the nancial year.

    At the date o this report, the Directors are not aware o any circumstances not otherwise dealt with in this reportrender any amount stated in the nancial statements misleading.

    In the opinion o the Directors:

    (a) the results o the Groups and Companys operations during the nancial year were not substantially aea material and unusual nature; and

    (b) there has not arisen in the interval between the end o the nancial year and the date o this report any iteunusual nature likely to aect substantially the results o the operations o the Group and Company or the n

    Auditors

    Directors Report (continued)or the nancial year ended 31 December 2009

    34 I G B C o r p o r a t i o n B e r h a d

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    Group

    Note

    2009

    RM000

    2008RM000

    Revenue 5 642,442 688,224

    Cost o sales (281,589) (352,634)

    Gross prot 360,853 335,590

    Other operating income 57,795 55,295

    Administrative expenses (151,432) (171,903)

    Other operating expenses (16,371) (83,244)

    Prot rom operations 6 250,845 135,738

    Finance cost 8 (57,142) (55,823)

    Share o results o associates 27,833 44,859

    Gain on disposal o an associate - 83,589

    Prot beore tax 221,536 208,363

    Tax expense 9 (42,316) (35,495)

    Prot or the nancial year 179,220 172,868

    Attributable to:

    Equity holders o the Company 158,978 154,960

    Minority interests 20,242 17,908

    Prot or the nancial year 179,220 172,868

    Earnings per ordinary share (sen) 10

    - Basic 10.85 10.46

    - Diluted N/A 10.46

    Gross dividends per ordinary share or thenancial year (sen) 11 2.50 2.50

    Income Statementsor the nancial year ended 31 December 2009

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    Note

    Group

    2009

    RM000

    2008RM000

    Capital and reserves attributable to

    equity holders o the Company

    Share capital 12(a) 745,148 745,148

    Share premium 427,221 427,221

    Treasury shares 12(b) (48,474) (35,005)

    Revaluation and other reserves 13 353,451 332,206Retained earnings 14 1,379,147 1,218,811

    2,856,493 2,688,381

    Minority interests 114,908 90,616

    Total equity 2,971,401 2,778,997

    Represented by:

    Non-current assets

    Property, plant and equipment 17 827,683 758,007

    Land held or property development 18(a) 267,152 256,641

    Investment properties 19 1,464,888 1,527,263

    Long term prepaid lease 20 204,401 206,857

    Subsidiaries 21 - -

    Associates 22 550,724 542,348

    Other investments 23 6,212 6,212

    Deerred tax assets 16 14,875 10,5223,335,935 3,307,850

    Current assets

    Property development costs 18(b) 95,769 93,565

    Inventories 24 65,377 67,625

    Marketable securities 25 60,046 37,556

    Trade and other receivables 26 129,099 158,504

    Amounts owing by subsidiaries 27 - -

    Amounts owing by associates 28 121,090 118,920Amount owing by a jointly controlled entity 31 - 5,869

    Tax recoverable 13,606 4,067

    Deposits with licensed banks 29 542,587 528,954

    Cash and bank balances 29 103,666 127,184

    1,131,240 1,142,244

    Balance Sheetsas at 31 December 2009

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    Attributabletoequ

    ityholdersotheCompany

    Issuedandullypa

    idordinary

    sharesoR

    M0.5

    0each

    Number

    oshares

    Nominal

    value

    Share

    premium

    Treasury

    shares

    Revaluation

    andother

    reserves

    (Note13)

    Retained

    earnings

    Total

    Minority

    interests

    Total

    equity

    000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    1,4

    90,2

    96

    745,1

    48

    427,2

    21

    (35,0

    05)

    332,2

    06

    1,2

    18,8

    11

    2,6

    88,3

    81

    90,6

    16

    2,7

    78,9

    97

    -

    -

    -

    (13,4

    69)

    -

    -

    (13,4

    69)

    -

    (13,4

    69)

    -

    -

    -

    -

    -

    -

    -

    416

    416

    -

    -

    -

    -

    -

    -

    -

    14,7

    05

    14,7

    05

    1,4

    90,2

    96

    745,1

    48

    427,2

    21

    (48,4

    74)

    332,2

    06

    1,2

    18,8

    11

    2,6

    74,9

    12

    105,7

    37

    2,7

    80,6

    49

    -

    -

    -

    -

    13,5

    86

    -

    13,5

    86

    694

    14,2

    80

    -

    -

    -

    -

    25

    (25)

    -

    -

    -

    -

    -

    -

    -

    (1,0

    97)

    1,0

    97

    -

    -

    -

    -

    -

    -

    -

    -

    286

    286

    -

    286

    -

    -

    -

    -

    (310)

    -

    (310)

    -

    (310)

    -

    -

    -

    -

    9,0

    41

    -

    9,0

    41

    -

    9,0

    41

    -

    -

    -

    -

    21,2

    45

    1,3

    58

    22,6

    03

    694

    23,2

    97

    -

    -

    -

    -

    -

    158,9

    78

    158,9

    78

    20,2

    42

    179,2

    20

    Consolidated Statement o Changes in Equityor the nancial year ended 31 December 2009

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    Attributabletoequ

    ityholdersotheCompany

    Issuedandullypa

    idordinary

    sharesoR

    M0.5

    0each

    Numbero

    shares

    Nominal

    value

    Share

    premium

    Treasury

    shares

    Revaluation

    andother

    reserves

    (Note13)

    Retained

    earnings

    Total

    Minority

    interests

    Total

    equity

    000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    1,489,724

    744,862

    426,974

    (17,094)

    335,964

    1,148,895

    2,639,601

    89,384

    2,728,985

    -

    -

    -

    (17,911)

    -

    -

    (17,911)

    -

    (17,911)

    572

    286

    247

    -

    -

    -

    533

    -

    533

    -

    -

    -

    -

    -

    -

    -

    378

    378

    -

    -

    -

    -

    -

    -

    -

    1,225

    1,225

    -

    -

    -

    -

    -

    -

    -

    (4,000)

    (4,000)

    1,490,296

    745,148

    427,221

    (35,005)

    335,964

    1,148,895

    2,622,223

    86,987

    2,709,210

    Consolidated Statement o Changes in Equity (continuedor the nancial year ended 31 December 2009

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    Attributabletoequ

    ityholdersotheCompany

    Issuedandullypa

    idordinary

    sharesoR

    M0.5

    0each

    Number

    oshares

    Nominal

    value

    Share

    premium

    Treasury

    shares

    Revaluation

    andother

    reserves

    (Note13)

    Retained

    earnings

    Total

    Minority

    interests

    Totalequity

    000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    RM000

    -

    -

    -

    -

    (30,375)

    -

    (30,375)

    (367)

    (30,742)

    -

    -

    -

    -

    -

    -

    -

    (663)

    (663)

    -

    -

    -

    -

    5,579

    -

    5,579

    -

    5,579

    -

    -

    -

    -

    23,025

    (23,025)

    -

    -

    -

    -

    -

    -

    -

    (1,301)

    1,301

    -

    -

    -

    -

    -

    -

    -

    -

    984

    984

    -

    984

    -

    -

    -

    -

    (686)

    -

    (686)

    -

    (686)

    -

    -

    -

    -

    (3,758)

    (20,740)

    (24,498)

    (1,030)

    (25,528)

    -

    -

    -

    -

    -

    154,960

    154,960

    17,908

    172,868

    -

    -

    -

    -

    (3,758)

    134,220

    130,462

    16,878

    147,340

    -

    -

    -

    -

    -

    (64,304)

    (64,304)

    (13,249)

    (77,553)

    1,490,296

    745,148

    427,221

    (35,005)

    332,206

    1,218,811

    2,688,381

    90,616

    2,778,997

    Consolidated Statement o Changes in Equity (continued)or the nancial year ended 31 December 2009

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    Issued and ully paid

    ordinary shares o

    RM0.50 each

    Non-

    Distributable

    Trea

    sh

    Number o

    shares

    Nominal

    value

    Share

    premium

    Company 000 RM000 RM000 RM

    At 1 January 2009 1,490,296 745,148 427,221 (3

    Prot or the nancial year - - -Share buy back - - - (1

    At 31 December 2009 1,490,296 745,148 427,221 (4

    Note

    Issued and ully paid

    ordinary shares o

    RM0.50 each

    Non-

    Distributable

    Trea

    s

    Number o

    shares

    Nominal

    value

    Share

    premium

    Company 000 RM000 RM000 RM

    At 1 January 2008 1,489,724 744,862 426,974 (1

    Prot or the nancial year - - -

    Share buy back - - - (1

    Issue o shares:

    - Employees share options 12(c) 572 286 247Dividends on ordinary shares 11 - - -

    At 31 December 2008 1,490,296 745,148 427,221 (3

    Company Statement o Changes in Equityor the nancial year ended 31 December 2009

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    Group

    Note

    2009

    RM000

    2008RM000

    Operating activities

    Receipts rom customers 689,391 761,763

    Payments to contractors, suppliers and employees (386,407) (545,496)

    Cash fows rom/(used in) operations 302,984 216,267

    Interest paid (57,729) (56,270)Income taxes paid (56,203) (47,961)

    Net cash generated rom/(used in) operating activities 189,052 112,036

    Investing activities

    Acquisition o additional interests in subsidiaries 37 - (45)

    Proceeds rom disposal o an associate 38 - 107,561

    Proceeds rom sale o investment - 17,941

    Proceeds rom redemption o preerence shares - -Interest received 10,765 14,077

    Additions o property, plant and equipment (102,260) (168,602)

    Additions o investment properties (313) (26,584)

    Additions o long term prepaid lease - (659)

    Additions o land held or property development (21,790) (19,879)

    Proceeds rom sale o property, plant and equipment 554 5,920

    Acquisition o an associate - (40)

    Call up capital in a subsidiary - -

    Subscription o additional shares in subsidiaries - -Dividends received rom subsidiaries - -

    Dividends received rom associates 20,409 21,064

    Dividends received rom marketable securities 3,700 141

    Net (advances to)/repayment o advances romsubsidiaries - -

    Net (repayment o advances to)/advances romsubsidiaries - -

    Net repayment o advances rom associates 1,819 1,348

    Repayment o advances to associates (2,106) -Return o capital rom an associate - 3,454

    Net repayment o advances rom jointlycontrolled entity 9,206 12,339

    Net cash (used in)/rom investing activities (80,016) (31,964)

    i i i i i

    Cash Flow Statementsor the nancial year ended 31 December 2009

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    1. General inormation

    The principal activities o the Company during the nancial year are those o investment holding and propeo the Group mainly consist o property development, property investment and management, hotel operatioThere have been no signicant changes in the nature o these activities during the nancial year.

    As at 31 December 2009, all nancial assets and nancial liabilities o the Group and Company are dotherwise stated.

    2. Summary o signicant accounting policies

    Unless otherwise stated, the ollowing accounting policies have been applied consistently to all the nancthat are considered material in relation to the nancial statements.

    2.1 Basis o preparation

    The nancial statements o the Group and Company have been prepared in accordance with the prFinancial Reporting Standards, the MASB Approved Accounting Standards in Malaysia or Entities

    The nancial statements o the Group and Company have been prepared under the historical cossummary o signicant accounting policies.

    The preparation o nancial statements in conormity with the Financial Reporting Standards requiestimates and assumptions that aect the reported amounts o assets and liabilities and disclosuredate o the nancial statements, and the reported amounts o revenues and expenses during the reto exercise their judgement in the process o applying the Companys accounting policies. Althoubased on the Directors best knowledge o current events and actions, actual results may dier.

    The areas involving a higher degree o judgement or complexity, or areas where assumptions and statements are disclosed in Note 4.

    (a) Standards, amendments to published standards and interpretations to existing

    applicable to the Group

    There are no new accounting standards, amendments to published standards and interpeective and are applicable to the Group or the Companys nancial year ended 31 Decem

    (b) Standards, amendments to published standards and interpretations to existing staGroup

    There are no new accounting standards, amendments to published standards and interpretaadopted by the Group.

    Notes to the Financial Statementsor the nancial year ended 31 December 2009

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.1 Basis o preparation (continued)

    (c) Standards, amendments to published standards and interpretations to existing standard

    but are not yet eective (continued)

    Where entities restate or reclassiy comparative inormation, they will be required to presenbeginning comparative period in addition to the current requirement to present balance sh

    and comparative period. It is likely that both the income statement and statement o compas perormance statements.

    FRS7Financialinstruments:Disclosuresprovidesinformationtousersofnancialstate

    risks and how the entity manages those risks. The improvement to FRS 7 claries that enincome and expense as a net amount within nance costs on the ace o the income statem

    FRS123BorrowingcostswhichreplacesFRS1232004

    . The standard requires an entity tattributable to the acquisition, construction or production o a qualiying asset (one that takeready or use or sale) as part o the cost o the asset. The option o immediately expensing

    The improvement to FRS 123 claries that the denition o borrowing costs includes inteective interest method dened in FRS 139.

    FRS139FinancialInstruments:RecognitionandMeasurementestablishesprinciplesfor

    assets, nancial liabilities and some contracts to buy and sell non-nancial items. Hedge circumstances. The amendments to FRS 139 provide urther guidance on eligible hedgeguidance or two situations. On the designation o a one-sided risk in a hedged item, the ameoption designated in its entirety as the hedging instrument o a one-sided risk will not be peinfation as a hedged risk or portion is not permitted unless in particular situations. The im

    the scope exemption in FRS 139 only applies to orward contracts but not options or bucommitted to being completed within a reasonable timerame.

    FRS140Investmentpropertyrequiresassetsunderconstruction/developmentforfutu

    accounted as investment property rather than property, plant and equipment. Where thproperty is measured at air value. However, where air value is not rel iably measurable, ththe earlier o the date construction is completed and air value becomes reliably measurabobtained or an investment property held under lease is net o all expected payments, anback in order to determine the carrying amount o the investment property under the air va

    The amendmentto FRS1 First-time adoptionofnancialreporting standardsandFRnancial statements: Cost o an investment in a subsidiary, jointly controlled entity or assuse a deemed cost o either air value or the carrying amount under previous accounting pinvestments in subsidiaries, jointly controlled entities and associates in the separate nancremoves the denition o the cost method rom FRS 127 and requires investors to present nancial statements.

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.1 Basis o preparation (continued)

    (c) Standards, amendments to published standards and interpretations to existing stand

    but are not yet eective (continued)

    TheamendmenttoFRS107Statementofcashowsclariesthatonlyexpenditure

    categorised as a cash fow rom investing activities.

    TheamendmenttoFRS110Eventsafterthebalancesheetdatereinforcesexisting

    the reporting date is not a liability o an entity at that date given that there is no obligati

    TheamendmenttoFRS116Property,plantandequipments(consequentialamen

    fows) requires entities whose ordinary activities comprise o renting and subsequentlythe sale o those assets as revenue and should transer the carrying amount o the asseheld or sale. A consequential amendment to FRS 107 states that cash fows arising assets are classied as cash fows rom operating activities.

    TheamendmenttoFRS117Leasesclariesthatthedefaultclassicationofthelanno longer an operating lease. As a result, leases o land should be classied as eitheprinciples o FRS 117.

    TheamendmenttoFRS118Revenueprovidesmoreguidancewhendeterminingw

    or as an agent.

    TheamendmenttoFRS119Employeebenetsclariesthataplanamendmentthat

    benet promises are aected by uture salary increases is a curtailment, while an amen

    to past service gives rise to a negative past service cost i it results in a reduction in obligation.

    TheamendmenttoFRS127Consolidated&separatenancialstatementsclariest

    that is accounted or under FRS 139 is classied as held or sale under FRS 5, FRS 13

    TheamendmenttoFRS128Investmentsinassociatesclariesthataninvestmen

    asset or impairment testing purposes. Reversals o impairment are recorded as an ainvestment to the extent that the recoverable amount o the associate increases.

    TheamendmenttoFRS128InvestmentsinassociatesandFRS131Interestsinjoito FRS 132 Financial instruments: Presentation and FRS 7 Financial instruments: Disin associate or joint venture is accounted or in accordance with FRS 139, only certainin FRS 128 or FRS 131 need to be made in addition to disclosures required by FRS 13

    TheamendmentstoFRS132Financialinstruments:PresentationandFRS101(revis

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.1 Basis o preparation (continued)

    (c) Standards, amendments to published standards and interpretations to existing standard

    but are not yet eective (continued)

    ICInterpretation9ReassessmentofEmbeddedDerivativesrequiresanentitytoassess

    required to be separated rom the host contract and accounted or as a derivative when th

    contract. Subsequent reassessment is prohibited unless there is a change in the terms o ththe cash fows that otherwise would be required under the contract, in which case reassessto IC Interpretation 9 (eective rom 1 July 2010) claries that this interpretation does nocontracts acquired in a business combination, businesses under common control or the or

    ICInterpretation10 InterimFinancialReportingandImpairmentprohibitsthe impairm

    period on goodwill and investments in equity instruments and in nancial assets carried at balance sheet date.

    ICInterpretation11FRS2Groupandtreasurysharetransactionsprovidesguidanceo

    involving treasury shares or involving group entities should be accounted or as equity-spayment transactions in the stand-alone accounts o the parent and group companies.

    ICInterpretation13Customerloyaltyprogrammesclariesthatwheregoodsorservice

    loyalty incentive, the arrangement is a multiple-element arrangement and the consideratallocated between the components o the arrangement using air values.

    ICInterpretation14FRS119Thelimitonadenedbenetasset,minimumfundingrequire

    guidance on assessing the limit in FRS 119 on the amount o the surplus that can be recog

    The new accounting standards, amendments to published standards and interpretations to exisannual periods beginning on or ater 1 July 2010 are as ollows:

    TherevisedFRS3 Business combinations.The revisedstandard continues toapply

    combinations, with some signicant changes. For example, all payments to purchase a busat the acquisition date, with contingent payments classied as debt subsequently re-measThere is a choice on an acquisition-by-acquisition basis to measure the non-controlling ivalue or at the non-controlling interests proportionate share o the acquirees net assets. Aexpensed.

    TherevisedFRS127Consolidatedandseparatenancialstatementsrequirestheeffectsointerests to be recorded in equity i there is no change in control and these transactions willand losses. The standard also species the accounting when control is lost. Any remainingto air value, and a gain or loss is recognised in prot or loss.

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.2 Economic entities in the Group (continued)

    (b) Transactions with minority interests

    The Group applies a policy o treating transactions with minority interests as transactions with parto minority interests result in gains and losses or the Group that are recorded in the income sinterests result in goodwill, being the dierence between any consideration paid and the releva

    assets o the subsidiary acquired.

    (c) Jointly controlled entity

    Jointly controlled entity is a corporation over which there is a contractually agreed sharing o coparties where the strategic nancial and operating decisions relating to the entity require unanicontrol.

    The Groups interest in jointly controlled entity is accounted or in the consolidated nancial saccounting. Equity accounting involves recognising the Groups share o the post-acquisition r

    in the income statement and its share o post-acquisition movements within reserves in reservmovements are adjusted against the cost o investment and include goodwill on acquisition (net

    The Group recognises the portion o gains or losses on the sale o assets by the Group to the joother venturers. The Group does not recognise its share o prots or losses rom the joint ventassets by the Group rom the joint venture until it resells the assets to an independent party. Hrecognised immediately i the loss provides evidence o a reduction in the net realisable value o cWhere necessary, in applying the equity method, adjustments are made to the nancial statemeensure consistency o accounting policies with those o the Group.

    Unrealised gains on transactions between the Group and i ts jointly controlled entity are eliminatedin the jointly controlled entity; unrealised losses are also eliminated unless the transaction provasset transerred.

    (d) Associates

    Associates are those corporations, partnerships or other entities in which the Group exercisedoes not control, generally accompanying a shareholding o between 20% and 50% o the votinpower to participate in the nancial and operating policy decisions o the associates but not the p

    policies.

    Investments in associates are accounted or by using the equity method o accounting and aGroups investment in associates includes goodwill identied on acquisition (Note 2.5), net o(Note 2.7).

    N h Fi i l S

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.3 Property, plant and equipment

    Property, plant and equipment are initially stated at cost. Hotel properties (land and buildings) are sbased on periodic valuations by external independent valuers, less subsequent depreciation andepreciation at the date o revaluation is eliminated against the gross carrying amount o the asserevalued amount o the asset. All other property, plant and equipment are stated at cost less accuimpairment losses.

    A reehold land o a subsidiary was stated at valuation on 8 August 1996 by the Directors based oproessional valuers on a air market value basis. The Directors applied the transitional provision(IAS) No. 16 (Revised) Property, Plant and Equipment as adopted by the Malaysian Accountinassets to be stated at their 1996 valuation. Accordingly, the valuation has not been updated.

    Cost includes expenditure that is directly attributable to the acquisition o the items. Subsequent camount or recognised as a separate asset, as appropriate, only when it is probable that uture ecowill fow to the Group and the cost o the item can be measured reliably. The carrying amount o therepairs and maintenance are charged to the income statement during the period in which they are

    Surpluses arising on revaluation are credited to revaluation reserve. Any decit arising rom revalureserve to the extent o a previous surplus held in the revaluation reserve or the same asset. Inamount is charged to income statement. Each period, the dierence between the depreciation bathe asset charged to the income statement and depreciation based on the assets original cost is tretained earnings.

    Freehold land is not depreciated as it has an innite lie. Other property, plant and equipment arewrite o the cost o the assets, or their revalued amounts, to their residual values over their estima

    %

    Buildings,includinghotelbuildings

    Plantandmachinery 102

    Motorvehicles 2

    Ofcefurniture,ttingsandequipment 121/2331/

    Depreciation on assets under construction commences when the assets are ready or their intende

    Residual values and useul lives o assets are reviewed, and adjusted i appropriate, at each balassessment on residual values and useul lives o assets on an annual basis. There was no aperormed in the nancial year.

    At each balance sheet date, the Group assesses whether there is any indication o impairment. perormed to assess whether the carrying amount o the asset is ully recoverable. A write down is

    48 I G B C o r p o r a t i o n B e r h a d

    N t t th Fi i l St t t

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.4 Investment properties (continued)

    Freehold land is not depreciated as it has an innite l ie. Other categories o investment properties are dto write o the cost o the assets to their residual values over their estimated useul lives, summarised

    %

    Buildings 2

    Buildingttings 1020

    On disposal o an investment property, or when it is permanently withdrawn rom use and no uture ecodisposal, it shall be derecognised (eliminated rom the balance sheet). The dierence between the netamount is recognised in prot or loss in the period o the retirement or disposal.

    2.5 Goodwill

    Goodwill or negative goodwill represents the excess or decit o the cost o acquisition o subsidi

    associates over the air value o the Groups share o the identiable net assets at the date o acquisitio

    Goodwill on acquisition o subsidiaries are included in the balance sheet as intangible assets whereimmediately in the income statement.

    Goodwill is tested annually or impairment and is carried at cost less accumulated impairment losses. Imreversed. Gains and losses on the disposal o an entity include the carrying amount o goodwill relating

    Goodwill is allocated to cash-generating units or the purpose o impairment testing. The allocation is mor groups o cash-generating units that are expected to benet rom the synergies o the business comSee accounting policy Note 2.7 on impairment o assets.

    Goodwill on acquisition o jointly controlled entities and associates is included in investments in jointly cassociates. Such goodwill is tested or impairment as part o the overall balance.

    2.6 Investments

    Investments in subsidiaries, associates and jointly controlled entities are shown at cost. Where an carrying amount o the investment is assessed and written down immediately to its recoverable amoun

    impairment o assets.

    Investments in other non-current investments are shown at cost and an allowance or diminution in valueDirectors, there is a decline other than temporary in the value o such investments. Where there has bethe value o an investment, such a decline is recognised as an expense in the period in which the declin

    Notes to the Financial Statements

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    Notes to the Financial Statements (continued)or the nancial year ended 31 December 2009

    2. Summary o signicant accounting policies (continued)

    2.8 Leases

    Leases o assets where a signicant portion o the risk and rewards o ownership are retained bleases. Payments made under operating leases (net o any incentives received rom the lessor) arstraight line basis over the lease period.

    When an operating lease is terminated beore the lease period has expired, any payment required tois recognised as an expense in the period in which termination takes place.

    2.9 Prepaid lease payments

    Leasehold land that normally has a denite economic lie and title is not expected to pass to the lessas an operating lease. Prepaid lease payments are carried at cost or surrogate carrying amount aover the lease terms in accordance with the pattern o benets provided.

    2.10 Inventories

    Inventories are stated at the lower o cost and net realisable value.

    (a) Unsold properties

    The cos