Annual Report 2007: IGB Corporation Berhad

IGB Corporation Berhad (5745-A)
Annual Report 2007

Level 32, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur
Tel: (603) 2289 8989 Fax: (603) 2289 8802 Web: www.igbcorp.com Annual Report 2007
Contents
Notice of Annual General Meeting 2-4
Corporate Information 5
Profile of the Board of Directors 6-8
Chairman’s Statement 9
Review of Operations 10 - 12
Corporate Governance Statement 13 - 21
Audit Committee Report 22 - 24
Statement of Internal Control 25
Analysis of Shareholdings 26 - 28
List of Major Properties 29
Five-Year Group Financial Highlights 30
Reports and Financial Statements 31 - 110
Proxy Form
IGB Corporation Berhad
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Forty-Fourth (‘44th’) Annual General Meeting of IGB Corporation Berhad (‘IGB’
or ‘the Company’) will be held at Bintang Ballroom, Level 5, Cititel Mid Valley, Mid Valley City, Lingkaran Syed Putra,
59200 Kuala Lumpur on Wednesday, 28 May 2008 at 3.00 p.m. to transact the following business:
AS ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the year ended 31 December 2007 and the
Reports of the Directors and Auditors thereon. (Resolution 1)
2. To re-elect the following Directors who retire pursuant to Article 85 of the Company’s Articles of
Association:

(a) Tan Sri Abu Talib bin Othman (Resolution 2)
(b) Robert Tan Chung Meng (Resolution 3)
(c) Yeoh Chong Swee (Resolution 4)
3. To re-appoint Messrs. PricewaterhouseCoopers as auditors of the Company and to authorise the

Directors to fix their remuneration. (Resolution 5)
4. To approve the Directors’ fees of RM280,000 per annum. (Resolution 6)
AS SPECIAL BUSINESS
5. To consider and if thought fit, pass the following resolution in accordance with Section 129(6) of
the Companies Act, 1965 (‘Act’):
“THAT Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman, a Director who retires pursuant to Section
129(2) of the Act be and is hereby re-appointed as Director of the Company to hold office until
the conclusion of the next annual general meeting of the Company.” (Resolution 7)
6. To consider and if thought fit, pass the following ordinary resolutions:
(a) Authority to issue shares pursuant to Section 132D of the Act
“THAT pursuant to Section 132D of the Act, the Directors be and are hereby empowered to
issue shares in the Company from time to time and upon such terms and conditions and for
such purposes as the Directors may deem fit provided that the aggregate number of shares
issued pursuant to this resolution does not exceed 10% of the issued share capital of the
Company for the time being.” (Resolution 8)
(b) Renewal of shareholders’ mandate for share buy-back
“THAT subject to the Act, the Company’s Memorandum and Articles of Association and the
Listing Requirements of Bursa Malaysia Securities Berhad (‘Bursa Securities’), approval be
and is hereby given to the Company to purchase at any time such amount of ordinary shares
of RM0.50 each in the Company as may be determined by the Directors of the Company
from time to time through Bursa Securities upon such terms and conditions as the Directors
in their absolute discretion deem fit and expedient in the interest of the Company (‘Share
Buy-Back Mandate’) provided that:
(i) the aggregate number of shares which may be purchased by the Company at any point
of time pursuant to the Share Buy-Back Mandate shall not exceed 10% of the total
issued and paid-up share capital of the Company;
(ii) the amount of funds to be allocated by the Company pursuant to the Share Buy-Back
Mandate shall not exceed the retained earnings and share premium of the Company as
at 31 December 2007; and
Annual Report 2007
Notice of Annual General Meeting (cont’d)
(iii) the shares so purchased by the Company pursuant to the Share Buy-Back Mandate to
be cancelled and/or retained as treasury shares and distributed as dividends or resold
on Bursa Securities.

AND THAT such authority shall commence upon passing of this resolution until the
conclusion of the next annual general meeting of the Company, or the expiry of the period
within which the next annual general meeting is required to be held pursuant to Section
143(1) of the Act (but shall not extend to such extensions as may be allowed pursuant to
Section 143(2) of the Act), at which time the resolution shall lapse, or until the authority is
revoked or varied by a resolution passed by shareholders in a general meeting, whichever
occurs first;
AND THAT the Directors of the Company be and are hereby authorised to complete and
do all such acts and things as they may consider expedient or necessary to give effect to the
Share Buy-Back Mandate.” (Resolution 9)
(c) Renewal of shareholders’ mandate for recurrent related party transactions of a revenue
or trading nature
“THAT the Company and/or its subsidiaries (‘the Group’) be and is/are hereby authorised
to enter into all arrangements and/or transactions involving the interests of Directors, major
shareholders or persons connected with the Directors and/or major shareholders of the
Group (‘Related Parties’) as specified in Section 2.2.1 of the Statement/Circular dated 6
May 2008, provided that such arrangements and/or transactions are:
(i) recurrent transactions of a revenue or trading nature;
(ii) necessary for the day-to-day operations;
(iii) carried out in the ordinary course of business on normal commercial terms which are
not more favourable to Related Parties than those generally available to public; and
(iv) are not to the detriment of minority shareholders
(the ‘RRPT Mandate’);
AND THAT the RRPT Mandate, unless revoked or varied by a resolution passed by
shareholders in a general meeting, shall continue in force until the conclusion of the next
annual general meeting of the Company, or the expiry of the period within which the next
annual general meeting is required to be held pursuant to Section 143(1) of the Act (but
shall not extend to such extensions as may be allowed pursuant to Section 143(2) of the
Act);
AND THAT the Directors of the Company be and are hereby authorised to complete and
do all such acts and things as they may consider expedient or necessary to give effect to the
RRPT Mandate.” (Resolution 10)
By Order of the Board
Tina Chan
MAICSA 7001659
Company Secretary
Kuala Lumpur
6 May 2008
Notice of Annual General Meeting (cont’d)
Notes:
(1) Appointment of proxy
A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Act shall not apply
to the Company. A member shall be entitled to appoint more than one proxy to attend and vote at the meeting, provided
that the provisions of Section 149(1)(c) of the Act are complied with. Where a member appoints more than one proxy, the
appointment shall be invalid unless the member specifies the proportions of holdings to be represented by each proxy. In
the case of a corporate member, the proxy form must be either under its common seal or under the hand of its attorney. The
proxy form must be deposited at the Registered Office at Level 32, The Gardens South Tower, Mid Valley City, Lingkaran
Syed Putra, 59200 Kuala Lumpur, not less than 48 hours before the time set for the meeting.
(2) Re-election and re-appointment of Directors
The particulars of all Directors including those seeking re-election (Resolutions 2, 3, 4 and 7) and their securities holdings in
the Company and related corporation are contained in the Annual Report 2007.
(3) Explanatory notes on Special Business:
(a) Re-appointment of Director under Section 129(6) of the Act
The re-appointment of Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman, a person over the age of 70 years as Director of
the Company to hold office until the conclusion of the next annual general meeting of the Company shall take effect
if Resolution 7 has been passed by majority of not less than 3/4 of such members as being entitled to vote in person
or, where proxies are allowed, by proxy, at a general meeting of which not less than 21 days’ notice specifying the
intention to propose the resolution has been duly given.
(b) Authority to issue shares under Section 132D of the Act
Resolution 8, if approved, will renew the authorisation obtained at the last annual general meeting, pursuant to Section
132D of the Act, for issuance of up to 10% of the issued share capital of the Company for such purposes as the
Directors deem fit and in the interest of the Company. This authority, unless revoked or varied at a general meeting,
will expire at the conclusion of the next annual general meeting of the Company.
(c) Share Buy-Back Mandate
Resolution 9, if approved, will empower the Directors of the Company to purchase the Company’s shares up to 10%
of the issued and paid-up share capital of the Company by utilising the funds allocated which shall not exceed the
retained earnings and share premium of the Company. This authority, unless revoked or varied at a general meeting,
will expire at the conclusion of the next annual general meeting of the Company.
(d) RRPT Mandate
Resolution 10, if approved, will allow the Group to enter into recurrent transactions involving the interests of Related
Parties, which are of a revenue or trading nature and necessary for the Group’s day-to-day operations.

Further information on the renewal of Share Buy-Back Mandate and RRPT Mandate is set out in the Statement/Circular dated
6 May 2008 which is despatched with the Annual Report 2007.
Annual Report 2007
Corporate Information
BOARD OF DIRECTORS
Independent Non-Executive Chairman Non-Independent Non-Executive Directors
Tan Sri Abu Talib bin Othman Tan Lei Cheng
Pauline Tan Suat Ming
Managing Director
Tony Tan @ Choon Keat
Robert Tan Chung Meng
Datuk Abdul Habib bin Mansur
Executive Directors
Tan Boon Seng Alternate to Managing Director
Tan Boon Lee Chua Seng Yong
Independent Non-Executive Directors

Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman
Tan Kai Seng
Yeoh Chong Swee
COMPANY SECRETARY PRINCIPAL BANKERS

Tina Chan Lai Yin HSBC Bank Malaysia Berhad
Malayan Banking Berhad
AUDITORS RHB Bank Berhad
PricewaterhouseCoopers United Overseas Bank (Malaysia) Bhd
Level 10, 1 Sentral
Jalan Travers, Kuala Lumpur Sentral REGISTRAR
50706 Kuala Lumpur IGB Corporation Berhad
Telephone : 603-21731188 (Share Registration Department)
Telefax : 603-21731288 Level 32, The Gardens South Tower
Mid Valley City
REGISTERED OFFICE Lingkaran Syed Putra
Level 32, The Gardens South Tower 59200 Kuala Lumpur
Mid Valley City Telephone : 603-22898989
Lingkaran Syed Putra Telefax : 603-22898802
59200 Kuala Lumpur
Telephone : 603-22898989 STOCK EXCHANGE LISTING
Telefax : 603-22898802 Bursa Malaysia Securities Berhad
Main Board (10 September 1981)
Profile of the Board of Directors
TAN SRI ABU TALIB BIN OTHMAN
Tan Sri Abu Talib, aged 69, is an Independent Non-Executive Chairman of IGB. He joined the Board on 18 July 1995 and
was appointed Chairman on 30 May 2001. He is also the Chairman of the Nomination and Remuneration Committees.
He qualified as a Barrister-at-law from Lincoln’s Inn, United Kingdom and has served in various capacities in the judicial
and legal service of the Malaysian Government. He was the Attorney-General of Malaysia from 1980 until his retirement
in October 1993.
He is presently the Chairman of British American Tobacco (Malaysia) Berhad, CYL Corporation Berhad and MUI
Continental Insurance Berhad. He is also a director of Alliance Investment Management Berhad.
ROBERT TAN CHUNG MENG
Mr Robert Tan, aged 55, was appointed Joint Managing Director of IGB on 18 December 1995 and subsequently re-
designated as Managing Director on 30 May 2001. He is also a member of Exco, Remuneration, Risk Management and
Share & ESOS Committees.
He has vast experience in the property and hotel industry. After studying Business Administration in the United Kingdom,
he was attached to a Chartered Surveyor’s firm for a year. He has also developed a housing project in Central London
before returning to Malaysia. He has been involved in various development projects carried out by IGB and Tan & Tan
Developments Berhad, in particular the Mid Valley City project.
He is presently the Chairman of Wah Seong Corporation Berhad, the Group Managing Director of KrisAssets Holdings
Berhad and a director of Tan & Tan Developments Berhad.
TAN BOON SENG
Mr Tan Boon Seng, aged 52, joined IGB in 1980 as General Manager. He was appointed to the Board on 20 December
1990, Managing Director in 1991, re-designated to Joint Managing Director in 1995, and subsequently re-designated as
Executive Director on 30 May 2001. He is the Chairman of Exco, and a member of Risk Management and Share & ESOS
Committees.
He holds a Master of Arts from Cambridge University, United Kingdom.
He is presently the Chairman and Managing Director of Lee Hing Development Limited, and a director of Wo Kee Hong
(Holdings) Limited and Star Cruises Limited, all of which are listed on The Stock Exchange of Hong Kong Limited.
TAN BOON LEE
Mr Tan Boon Lee, aged 44, joined the Board of IGB on 10 June 2003 as Executive Director. He is also a member of Exco,
Risk Management and Share & ESOS Committees.
He holds a Bachelor of Economics from Monash University, Australia and a Masters in Business Administration from
Cranfield School of Management, United Kingdom. He has 20 years experience in the property and hotel industry,
providing management and technical assistance to hotel and hospitality projects in Malaysia and Asia. He was the
President of the Malaysian Association of Hotel Owners from 2002 to 2004.
He is also a director of KrisAssets Holdings Berhad, Goldis Berhad, Macro Kiosk Berhad and Tan & Tan Developments
Berhad of which he is presently the Chief Executive Officer.
Annual Report 2007
Profile of the Board of Directors (cont’d)
TAN SRI DATO’ SERI KHALID AHMAD BIN SULAIMAN
Tan Sri Dato’ Seri Khalid Ahmad, aged 72, is the Senior Independent Non-Executive Director. He was appointed to the
Board of IGB on 18 June 1982. He is the Chairman of Audit Committee, and a member of Nomination Committee.
He studied at the University of Leicester, England and was called to the Bar at Middle Temple in 1964. He worked as
Legal Advisor to a statutory body (‘MARA’) for 3 years prior to setting up his own practice in Penang in 1969. He was
also a senior member of the Penang State Executive Councillor from 1974 to 1982. Presently, he is the Chairman of the
Advocates & Solicitors Disciplinary Board.
He is also a director of Hong Leong Financial Group Berhad and HLG Capital Berhad.
TAN LEI CHENG
Mdm Tan Lei Cheng, aged 51, is a Non-Independent Non-Executive Director. She was appointed to the Board on 10
June 2003.
She holds a Bachelor of Commerce from the University of Melbourne, Australia and a Bachelor of Law from King’s
College, London (LLB Hons.), England. She is also a member of Lincoln’s Inn and was admitted to the English Bar in
1983.
She has 26 years of experience in the property industry and the corporate sector. She was the Chief Executive Officer of
Tan & Tan Developments Berhad from March 1995, a property development company that was listed on Bursa Malaysia
Securities Berhad until Goldis Berhad took over its listing on 8 May 2002, following the completion of the merger
between IGB, Tan & Tan Developments Berhad and Goldis Berhad. She is presently the Executive Chairman and Chief
Executive Officer of Goldis Berhad. She also sits on the Boards of KrisAssets Holdings Berhad, Tan & Tan Developments
Berhad and Macro Kiosk Berhad. She is a member of the World Presidents’ Organisation, Malaysia Chapter. She is also
a board member of the Kuala Lumpur Business Club.
PAULINE TAN SUAT MING
Mdm Pauline Tan, aged 62, is a Non-Independent Non- Executive Director. She was appointed to the Board on 10 June
2003. She is also a member of Exco, Risk Management and Nomination Committees.
She holds a Bachelor of Science (Honours) in Biochemistry from the University of Sussex, England and is a Fellow of
the Chartered Institute of Secretaries and Administrators. She worked as a chemist in Malayan Sugar Manufacturing Co.
Berhad from 1969 to 1972. She joined Tan Kim Yeow Sdn Bhd as an Executive Director in 1976 and Wah Seong Group
of Companies in 1983.
She is also a director of Wah Seong Corporation Berhad and Goldis Berhad.
TONY TAN @ CHOON KEAT
Mr Tony Tan, aged 59, is a Non-Independent Non- Executive Director. He was appointed to the Board on 15 July 2003,
and is a member of Audit Committee.
He holds a Bachelor of Chemical Engineering from the University of Surrey, England and a Masters in Business
Administration from the University of California, Berkeley, USA. He was the founding Managing Director of Parkway
Holdings Limited, Singapore until 2000 and Deputy Chairman until 2005.
Profile of the Board of Directors (cont’d)
TAN KAI SENG
Mr Tan Kai Seng, aged 56, is an Independent Non- Executive Director. He was appointed to the Board on 15 July 2003
and is a member of Audit Committee.
He is a Certified Public Accountant, Singapore and a Fellow Member of the Association of Chartered Certified Accountants,
United Kingdom. He started his career with Price Waterhouse, Singapore, and was Finance Director of Parkway Holdings
Limited from 1988 until his retirement in 2005.
DATUK ABDUL HABIB BIN MANSUR
Datuk Abdul Habib, aged 64, is a Non-Independent Non-Executive Director. He was appointed to the Board on 13 June
2003, and represents Permodalan Nasional Berhad, a shareholder of IGB.
He holds a Bachelor of Arts (Honours) from the University of Malaya, Malaysia, an Advance Diploma in Development
Administration from the University of Manchester, England and a Masters in Public Policy and Administration from the
University of Wisconsin, USA. He garnered 31 years experience in both State and Federal levels of administration when
he joined the Administrative and Diplomatic Service. His last posting was the State Secretary of Perak from 1995 to 1999
before he retired.
YEOH CHONG SWEE
Mr Yeoh Chong Swee, aged 64, is an Independent Non-Executive Director. He was appointed to the Board on 1 June
2004, and is a member of Audit and Remuneration Committees.
He is a Chartered Secretary and a Fellow of the Australian and Malaysian Institute of Taxation and a Fellow of the
Association of Accounting Technicians, United Kingdom. He was the Managing Director and Chief Executive Officer of
Deloitte KassimChan Tax Services Sdn Bhd and Deloitte Touche Tohmatsu Tax Services Sdn Bhd from 1977 to 2004.
CHUA SENG YONG
Mr Chua Seng Yong, aged 45, is the Executive Assistant to the Managing Director. He joined IGB as Financial Controller
in 1994 and has more than 21 years experience in the property and hotel industry. He was appointed the alternate
director to the Managing Director on 30 November 1999.
He graduated with an Economics degree from Monash University, Australia in 1984 and attained his Masters in Business
Administration from Cranfield School of Management, United Kingdom in 1992.
Notes:
1. All Directors are Malaysian except Mr Tan Kai Seng, who is a Singaporean.
2. All Directors do not have any family relationships with other Directors and/or major shareholders of the Company
save for Robert Tan Chung Meng, Tan Boon Seng, Tan Lei Cheng, Tan Boon Lee, Pauline Tan Suat Ming and Tony
Tan @ Choon Keat.
3. None of the Directors has any personal interests in any business arrangement involving the Company.
4. All Directors have not been convicted of any offence.
Annual Report 2007
Chairman’s Statement
Dear Shareholders,
On behalf of the Board, I am pleased to present
the Annual Report and the Audited Financial
Statements of the Group for the financial year
ended 31 December 2007.
Financial Results
For the year in review, the Group registered revenue of RM673.9 the signing of a Build-Operate-Transfer agreement with the
million, a slight dip of 6.3% from RM719.0 million in 2006. Sabah Economic Development Corporation for a proposed
However, pre-tax profit increased by 1.1% to RM204.2 million, Cititel Express hotel in Kota Kinabalu. Overseas, the St Giles
from RM202.0 million. Revenue recorded by the three major brand is expanding into Asia with the construction of St Giles
operating divisions were Property Development, RM262.0 Makati Hotel in Manila, Philippines. The Property Management
million; Property Investment & Management, RM252.9 million; portfolio quadrupled with the completion and opening of Mid
and Hotel, RM136.8 million. Valley City’s Centrepoint North and South Towers, both of
which quickly achieved 100% occupancy. The Gardens’ North
Dividend and South Towers office space launched in late-2007 also
achieved good take-up rates. Existing properties also continued
I am pleased to announce the Board has declared an interim to enjoy healthy occupancy rates in the mid to high nineties
dividend of 2.5% tax exempt and 2.5% less tax for the financial range.
year ended 31 December 2007. This dividend will be paid on
23 May 2008. Prospects
Operational Highlights The Group’s outlook for the coming year remains positive,
supported by the launch of new developments and with the
The Gardens Mall in Mid Valley City opened its doors amidst final phase of Mid Valley City poised to come on-stream in
fierce competition in September 2007, providing shoppers late 2008. With this, Mid Valley City’s fully-integrated mixed
and visitors with an upscale retail option within the integrated development of commercial, residential and hotel units
development’s enclave. The Megamall meanwhile, remains a will make the IGB Group the largest owner and manager of
top destination as evidenced by the increase in visitor numbers commercial properties in Malaysia with over four million sq ft
to approximately 30 million. In Property Development, two of office and retail space. The anticipated continued growth in
new projects were launched – the twin 30-storey Hampshire these sectors will contribute towards sustaining and increasing
Place and the upper mid-end One Jelatek condominium – with land value.
excellent market response. For existing developments, Laman
Sierramas West expanded the Sierramas footprint with choices Acknowledgement & Appreciation
of tropical courtyard terraces and semi-detached homes while
remaining units for U-Thant Residences, Cendana on Jalan During the year in review, Encik Harun bin Hashim Mohd
Sultan Ismail, Seri Maya’s Savanna and Sierramas West’s stepped down as Non-Executive Director. On behalf of the
Phase 2D were all taken up. IGB also clinched the No 2 spot Board, I would like to express our appreciation for his support
in The Edge’s Top Property Developers Awards 2007, the fifth and guidance during his tenure.
consecutive year the Group’s performance in this sector has
been acknowledged. I would also like to record my thanks and appreciation to
the relevant authorities for their continued cooperation and
With the many in-house projects on hand; from the commercial, assistance, and to the management and staff for their dedication
retail and residential spaces within Mid Valley City to the and contributions. To my fellow Board members, thank you for
various residential undertakings around the Klang Valley, the your continuous support and counsel.
Construction division remained active throughout the year.
Also performing above expectations was the Hotel division.
The Cititel Express brand was launched with the opening of TAN SRI ABU TALIB BIN OTHMAN
Cititel Express (formerly Stanford Hotel) in Kuala Lumpur and Chairman
10 IGB Corporation Berhad
Review of Operations
Dear Shareholders,
Financial year ended 31 December 2007 saw

Group revenue at RM673.9 million, down
6.3% from the previous year’s RM719.0
million but with a higher pre-tax profit of
RM204.2 million, compared with RM202.0
million in 2006.
The Directors have declared an interim

dividend of 2.5% tax exempt and 2.5% less
tax for the year in review. This dividend will
be paid on 23 May 2008.
Property Development
The division’s contribution to Group turnover was RM262.0 soft-launched in March 2007. Construction activities have since
million or 32% lower than the previous year. Segment results been accelerated to expedite the second tranche of sales.
before finance costs and tax were also lower by 38% at
RM52.5 million. The dip in earnings was partially attributed For our other developments, all remaining units at Seri Maya’s
to the Board’s decision to keep the commercial property Savanna and Sierramas West’s Phase 2D (launched 2004),
in Jalan Jelatek for better future value realisation. The delay Cendana on Jalan Sultan Ismail (launched 2005) and U-Thant
in the completion of the sale of Kundang lands was another Residences (launched 2006) have been taken up. While
contributing factor. Savanna and Sierramas have been completed and handed over,
delivery for the latter two developments is targeted for 2008
Key activities during the year included the launch of two new and 2009 respectively.
condominium developments and another gated residential
community at Sierramas. The latest joint-venture to come The year saw IGB again nominated runner-up in The Edge’s
on stream is Hampshire Place, a twin 30-storey mixed-use Top Ten Property Developers Awards, the fifth year in a row
development of high-end luxury residential, office and retail the Group’s achievements in this sector have been recognised.
space in Kuala Lumpur’s Golden Triangle. The first 186 This accolade acknowledges IGB’s commitment to quality
residences was launched in March 2007 and recorded more deliverables to our customers, and return on investment to our
than 50% in sales. A second tranche in December 2007 pushed shareholders.
the take-up rate to 75% and enjoyed a 30% price appreciation
at RM950 psf. Higher premiums are also expected for the Retail
penthouses which are slated at over RM1,200 psf.
KrisAssets Holdings Berhad reported a pretax profit of RM107.0
The second project, One Jelatek, a 20-storey upper mid-end million (excluding the fair value gain on investment property of
condominium, received overwhelming response at its October RM70.0 million), an 11% increase compared with 2006, on
2007 sales preview with eager purchasers snapping up 90% of the back of a 9% increase in turnover to RM207.1 million.
the 90 units available. It is gratifying to note that in this market
segment, we have achieved a new average price of RM420 psf. The Mid Valley Megamall retained its position as one of the top
One Jelatek will pave the way for more projects in the upper destinations in the Klang Valley with visitor numbers touching
market segment of the Setiawangsa-Ampang-Desa Pandan the 30 million mark. Occupancy remained at 100% with 131
neighbourhood. tenancies renewed and 34 new tenants secured. The latter
included international names such as Crocs, LeSportsac, Carl’s
The introduction of Laman Sierramas West, a gated and guarded Jr, Amuleto by Crystal Jade and Home & Cook’s first concept
residential community of 47 tropical courtyard terraces and 2 store in Asia, and home-grown brands Vincci+, D’lish and TA
semi-detached homes received muted response when it was Sin Guan Tin, amongst others.
Annual Report 2007 11
Review of Operations (cont’d)

A major factor to The Megamall’s continued popularity is its At year-end, the five-star Gardens Hotel soft-opened in
easy access. The KTM and shuttle bus services alone brought in December 2007 while we bade farewell to MiCasa All-Suite
an estimated 2.6 million and 500,000 visitors respectively. Hotel, Kuala Lumpur’s first hotel apartments, when the last
guest checked out on 31 December 2007. The property will
In view of the current competitiveness in the retail market, now undergo a massive renovation programme expected to
emphasis continued to be placed on strong in-house and take about 18 months.
thematic marketing and promotional campaigns throughout
the mall. Supporting this is an ongoing improvement and Moving offshore, our properties also enjoyed brisk business,
enhancement programme for the mall’s environment to ensure turning in commendable performances, in particular our
an enjoyable experience for our visitors. At the same time, we associate in Ho Chi Minh City in view of heightened economic
also continued investing in a comprehensive staff training and interests and activities in Vietnam. Understandably, the
skills development programme aimed at equipping staff with performance of the Yangon property was impacted by the
both soft and hard skills to better enable them carry out their public protests that took place in the last quarter of the year.
responsibilities.
In November 2007, the St Giles group broke ground for the
The year ended on a high note for The Megamall with its receipt 500-room St Giles Makati Hotel in Manila, Philippines. Valued
of the Best Decorated Mall award for Christmas 2007 organised at RM120 million, the development is the Group’s first venture
by the Ministry of Tourism Malaysia in conjunction with the in Philippines.
Malaysia Year-End Sale 2007.
September 2007 saw the opening of Mid Valley City’s higher Property Investment & Management
mid-market lifestyle shopping destination, The Gardens Mall,
the first component of The Gardens which will also comprise The division’s performance exceeded expectations with an
the five-star Gardens Hotel & Residences and two premium all-time high occupancy rate in excess of 91% (excluding The
office towers, The Gardens South Tower and The Gardens Gardens North Tower). An expanded portfolio now includes
North Tower. This high-end project aptly complements the eight office buildings under its management with a total net
ongoing success of The Megamall but taps into different market lettable area of 2.2 million square feet. The ‘newcomers’ are
segments, thus extending Mid Valley City’s shopping reach to a Centrepoint’s North and South Towers which were completed
larger and more significant market. The Gardens Mall’s upscale in August 2007 and January 2007 respectively and have
retail offer, anchored by the Isetan and Robinsons department quickly achieved 100% occupancy. The Gardens South Tower,
stores, is primarily ‘fashion focused’, complemented by launched in October 2007, saw occupancy reaching 80%. The
exclusive lifestyle shopping precincts and some of the city’s Gardens North Tower commenced letting in March 2008 and
finest dining offerings. is expected to achieve good occupancy.
Hotel Construction
The Hotel division continued to perform above expectations for For the year in review, the Construction division chalked up
financial year ended 31 December 2007. revenue in excess of RM300 million. The slew of in-house
projects around the Klang Valley made for a busy year. Over
Our local properties were beneficiaries of the very successful at Mid Valley City, projects included The Gardens Mall which
Visit Malaysia Year 2007 which recorded arrivals of 29.97 opened in September 2007, Centrepoint North Office which
million and total tourist receipts of RM46.1 billion. Higher was completed in August 2007, and the impending opening
room and occupancy rates contributed to the division’s growth of The Gardens Hotel & Residences, The Gardens North and
in revenue by 13% to RM136.8 million, from RM120.7 million South Office Towers.
for the same period last year.
Other on-going projects include the condominium
In May 2007, Cititel Express, the second brand under Cititel developments at Cendana on Jalan Sultan Ismail and
Hotel which was conceived to bring another new dimension to U-Thant Residences on Jalan Taman U-Thant in Kuala Lumpur’s
those preferring basic comfort with limited frills, was officially Embassy Row.
launched with the opening of the 245-room Cititel Express
(formerly the Stanford Hotel) in Kuala Lumpur. More Cititel
Express properties are in the pipeline following the signing of
a Built-Operate-Transfer agreement with the Sabah Economic
Development Corporation for a 300-room hotel in Kota
Kinabalu and a proposed 500-room Cititel Express Penang.
Review of Operations (cont’d)
Corporate Social Responsibility (“CSR”)

The year in review saw the Group continue with their respective With the year past witnessing several new retail competitors
on-going CSR calendar including company-wide healthy launch into the market, the retail industry is likely to undergo a
lifestyle and safety & security programmes for staff and an active period of stablisation and consolidation. Against this backdrop,
recycling effort to encourage everyone to play their role; no Mid Valley City will work aggressively to increase its market
matter how small, in cutting down waste within the Group. The presence. The Megamall will aim to maintain its growth
Group’s annual scholarship and bursary programme under the
while The Gardens Mall will complement The Megamall’s
Dato’ Tan Chin Nam Foundation and IGB Corporation Berhad
ongoing success by tapping into the upscale market segment,
Scholarship Awards turned 10 years with more recipients given
scholarships or cash grants to assist them financially. Students enabling Mid Valley City to provide a comprehensive shopping
in the programme are assisted by senior IGB management staff experience of choices and options.
for mentoring, career guidance and educational support until
they graduate. Many of the sponsored students later move on In hospitality, we will continue to explore opportunities and
in their career either within the IGB Group, or outside, playing avenues to build on and strengthen our Cititel and St Giles
a role as good citizens of Malaysia. hotel brands. Our investment in St Giles Hotel Makati in
Philippines and Cititel Express Penang and Cititel Express Kota
Cititel Mid Valley also sponsored the 4th IGB Dato’ Arthur Tan Kinabalu reflects the Group’s strategy of continuing to explore
Malaysia Open 2007 and 27th IGB-ASTRO Merdeka Team opportunities to expand our footprint both at home and abroad,
Open Chess Championship 2007 in memory of the Group’s to further contribute to the Group’s recurring income base.
late director and to promote chess, at its premises in August
2007. Overall, we are confident the Group’s operational results will
be satisfactory in the new financial year, with the launch of
December 2007 saw The Gardens Mall launch ‘2201 Fashion
Avenue’, a project aimed at helping young and aspiring local new developments and the final phase of Mid Valley City on
designers showcase their designs and creativity. Through 2201 the drawing board. The completion of The Gardens North
Fashion Avenue, these talented Malaysians are given a strategic and South Office Towers will make the IGB Group one of the
retail area to display and sell their products. The talented largest owners and managers of commercial properties in the
designers are also taught entrepreneurial skills required to country, with a total area in excess of 4 million sq ft of office
open and operate their own business effectively such as and retail space. Without doubt, the continued growth in the
human resource management, warehousing, inventory control, retail, commercial, hospitality and residential sectors will help
budgeting and sourcing of materials for production. It is hoped sustain and increase land value.
2201 Fashion Avenue will be a springboard for them to grow
into the international fashion arena. Given Malaysia’s growing reputation as a shopping destination,
having the right regulatory incentives to attract and encourage
And for its year-end celebration, Mid Valley City hosted two gala
top foreign brands to invest in the sector and the industry’s
dinners featuring Russell Thompkins Jr and The Stylistics and a
street party to usher in 2008. Funds raised from the dinners, commitment to continue investing in upgrading human capital
plus a cash donation, went to the Women’s Aid Organisation, skills, maintenance and service, will go some ways towards
a non-governmental organisation that actively advocates law fuelling further growth in the retail property sector. This in turn,
and policy reforms to promote and protect the rights of women bodes well for the IGB Group as we have the expertise in retail
in Malaysia. property management and marketing to expand our influence
in this arena.
The Year Ahead

Thanks & Appreciation
In the near-term, Kuala Lumpur is likely to remain the focal
point of real estate development with demand in the high-end I would like to add my thanks and appreciation to Encik
and niche sectors still bullish as the Government continues Harun bin Hashim Mohd for his service on the Board and
to ease restrictions on foreign ownership of local residential to wish him success in his future endeavours. To my fellow
property.
Board members, I extend sincere gratitude for their continued
The Group’s strategy will be to continue strengthening our guidance and support and to the management and staff, my
premium branding with high quality products that provide value deepest appreciation for their determination, dedication and
and security in the mid to high-end segments, in particular in untiring efforts towards achieving the Group’s goals.
growth areas such as the KLCC, Ampang Hilir, Wangsa Maju,
Desa Pandan, Sungai Buloh and of course, Mid Valley City.
ROBERT TAN CHUNG MENG

Managing Director
Corporate Governance Statement
The Malaysian Code on Corporate Governance (‘Code’) sets out principles and best practices on structures and
processes that companies may use in their operations towards achieving the optimal governance framework.
The Board of Directors (‘Board’) of IGB is supportive of the adoption of the principles and best practices as enshrined
in the Code throughout the Group. It is recognised that high standards of corporate governance are imperative to
safeguard the interests of all stakeholders and to enhance shareholders’ value.
The Board is pleased to report to shareholders on the manner the Group has applied the principles, and the extent
of compliance with the best practices of good governance as set out in the Code pursuant to Paragraph 15.26 of
the Listing Requirements of Bursa Securities. These principles and best practices have been applied throughout the
financial year ended 31 December 2007 (‘FY2007’).
I. BOARD
(1) Board responsibility
The Board has the overall responsibility for corporate governance, strategic direction, formulation of policies
and overseeing the investment and business of the Company. An indication of the Board’s commitment is
reflected in the conduct of regular Board meetings and the incorporation of various processes and systems
as well as the establishment of relevant Board Committees which also meet regularly.
(2) Board balance
The Board, led by an Independent Non-Executive Chairman, has 11 members, comprising 8 Non-Executive
Directors and 3 Executive Directors, with 4 of the 8 Non-Executive Directors being Independent Directors.
Together, the Directors with their wide experience in both the public and private sectors and diverse academic
backgrounds provide a collective range of skills, expertise and experience which is vital for the successful
direction of the Group. The profile of each Director is set out in the Profile of the Board of Directors.
The roles of the Chairman and the Managing Director are distinct and separate. The Chairman is responsible
for ensuring Board effectiveness and conduct, whilst the Managing Director has overall responsibility for
the day-to-day management of the Group and together with the Executive Directors ensure that strategies,
policies and matters approved by the Board and/or the Executive Committee are effectively implemented.
The presence of Independent Directors fulfils a pivotal role in corporate accountability. Essentially,
Independent Directors provide independent and constructive views in ensuring that the strategies proposed
by the management are fully studied and deliberated in the interest of the Group and the stakeholders.
Any queries or concerns regarding the Group may be conveyed to Tan Sri Dato’ Seri Khalid Ahmad bin
Sulaiman, the Senior Independent Non-Executive Director of the Company.
(3) Board meetings
The Board meets at least 4 times a year, with additional meetings convened as and when necessary. During
FY2007, 4 Board meetings were held.
The attendance record of each Director was as follows:
Number of meetings attended Percentage
Tan Sri Abu Talib bin Othman 4 100

Robert Tan Chung Meng 4 100
Tan Boon Seng 4 100
Tan Boon Lee 4 100
Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman 4 100
Corporate Governance Statement (cont’d)
Number of meetings attended Percentage
Tan Kai Seng 4 100

Yeoh Chong Swee 3 75
Tan Lei Cheng 4 100
Pauline Tan Suat Ming 4 100
Tony Tan @ Choon Keat 3 75
Datuk Abdul Habib bin Mansur 4 100
Harun bin Hashim Mohd (resigned on 31 May 2007) 1 25
Chua Seng Yong (alternate to Robert Tan) 4 100
(4) Supply of information
Board reports include, among others, information on the Group’s operational, financial and corporate issues,
divisional performance, minutes of Board Committees, statistics of shareholdings, securities transaction of
the Directors and major shareholders, are circulated to all Directors ahead of the scheduled meetings to
enable the Directors to obtain further explanation/clarification, where necessary.
The Directors are also notified of any corporate announcement released to Bursa Securities and the impending
restriction in dealing with the securities of the Company prior to the announcement of the financial results
or corporate proposals. The Directors are also kept informed of the various requirements and updates issued
by the various regulatory authorities.
All Directors have access to the advice and services of the senior management and the company secretary in
furtherance of their duties.
(5) Board Committees
The Board delegates certain responsibilities to several Board Committees that operate within clear defined
terms of reference. The Chairmen of the various committees report the outcomes of their committee meetings
to the Board, and any further deliberation is made at Board level if required.
(a) Executive Committee (‘Exco’)
The Exco comprises 2 Executive Directors, the Managing Director and a Non-Independent Non-
Executive Director, namely Tan Boon Seng (Chairman), Robert Tan Chung Meng, Tan Boon Lee and
Pauline Tan Suat Ming. The Exco has full authority as delegated by the Board to oversee the conduct of
the Group’s core businesses or existing investments and to review and/or implement strategic plan for
the Group with restricted authority given by way of limits determined by the Board, and to undertake
such function and all matters as may be approved or delegated by the Board from time to time.
The Exco meets regularly to review the management’s reports on progress of business operations as
well as to assess and approve the management’s proposal that require Exco’s approval. Special Exco
meetings are also held on an ad hoc basis to review the Company’s quarterly results or matters that
require Exco’s approval.
The Exco met 9 times in FY2007 which were attended by all members.
(b) Audit Committee (‘AC’)
The AC comprises 3 Independent Non-Executive Directors and a Non-Independent Non-Executive

Director, namely Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman (Chairman), Yeoh Chong Swee, Tan
Kai Seng and Tony Tan @ Choon Keat. With an independent component of 75%, the composition of AC
is fully compliant with the Code and the Listing Requirements, which require the majority of Directors
on AC to be independent.
The Board receives reports on all audits performed via AC. AC meetings are scheduled prior to Board
meetings and the minutes of AC proceedings are presented to the Board for notification. Any issue
raised or recommendation made by AC is tabled for the Board’s deliberation and approval.
Further details of the terms of reference and activities of AC during FY2007 are set out in the Audit
Committee Report.
(c) Nomination Committee (‘NC’)
The NC comprises 2 Independent Non-Executive Directors and a Non-Independent Non-Executive

Director, namely Tan Sri Abu Talib bin Othman (Chairman), Tan Sri Dato’ Seri Khalid Ahmad bin
Sulaiman and Pauline Tan Suat Ming. The NC recommends suitable candidates for appointments to the
Board of the Company, including Committees of the Board. In addition, NC assesses the effectiveness
of the Board as a whole, the Committees of the Board and the contribution of each individual Director
on an annual basis as well as reviews succession plans for members of the Board. The NC meets as and
when required. The NC met thrice in FY2007 which were attended by all members.
(d) Remuneration Committee (‘RC’)
The RC comprises 2 Independent Non-Executive Directors and the Managing Director, namely
Tan Sri Abu Talib bin Othman (Chairman), Yeoh Chong Swee and Robert Tan Chung Meng. The RC
recommends to the Board the policy framework on terms of employment of and on all elements of the
remuneration of the Managing Director, Executive Directors and senior executives of the Company.
The RC is authorised to review and approve the annual salary increments and bonuses of the Managing
Director, Executive Directors and senior executives of the Company. The RC meets as and when
required. The RC met once in FY2007 which was attended by all members.
(e) Risk Management Committee (‘RMC’)
The RMC comprises the members of Exco. The RMC is to review and articulate the strategies and
policies relating to the management of the Group risk and ensure that risk policies and procedures are
aligned to the business strategies and risk return directions of the Board are properly implemented.
(f) Share & ESOS Committee (‘SEC’)
The SEC comprises the Managing Director and 2 Executive Directors, namely Robert Tan Chung Meng,
Tan Boon Seng and Tan Boon Lee. The SEC is responsible for regulating and approving securities
transactions and registrations, and for implementing and administering the ESOS and the Share Buy-
Back of the Company.
(6) Appointments to the Board and Re-election of Directors
The NC is responsible for making recommendations to the Board on the appointment of new Directors to
the Board as well as the re-appointment or re-election of Directors seeking re-appointment or re-election at
the Annual General Meeting (‘AGM’).
The Articles of Association (‘Articles’) provides that all Directors should submit themselves for re-election
at least every 3 years in compliance with the Listing Requirements. The Articles also provide that 1/3 of the
Board shall retire from office and be eligible for re-election at every AGM.
Directors over 70 years of age are required to submit themselves for re-appointment annually in accordance
with Section 129(6) of the Act.
Directors standing for re-election at the 44th AGM of the Company to be held on 28 May 2008 are
Tan Sri Abu Talib bin Othman, Robert Tan Chung Meng and Yeoh Chong Swee, who retire by rotation under
Article 85 of the Articles. Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman, who is over the age of 70 years, is
seeking for reappointment under Section 129(6) of the Act.
(7) Directors’ Training
All Directors have attended the Directors’ Mandatory Accreditation Programme conducted by Bursa
Securities and are aware of the requirement of the Continuing Education Programme set by Bursa Securities.
During FY2007, all Directors have attended a number of training and seminar programmes which they have
individually or collectively considered as relevant and useful in contributing to the effective discharge of
their duties as Directors.
II. DIRECTORS’ REMUNERATION
The Company has adopted the objective as recommended by the Code to determine the remuneration of
the Directors so as to ensure that the Company attracts and retains Directors of the calibre needed to run the
Group efficiently. In the case of the Managing Director and Executive Directors, the components of Directors’
remuneration are structured so as to link rewards to corporate and individual performance. Performance is
measured against profits and other targets set from the Company’s annual budget and plans. In the case of
Non-Executive Directors, the level of remuneration reflects the experience and level of responsibilities undertaken
by the individual Non-Executive Director concerned.
The RC reviews annually the remuneration policy for the Managing Director and Executive Directors to ensure
that they are rewarded appropriately for their contributions to the Group’s growth and profitability.
The fees payable to Non-Executive Directors are determined by the Board with the approval of shareholders
at AGM. All Non-Executive Directors are paid meeting allowances for attending each Board or Committee
Meeting.
The aggregate remuneration of Directors categorised into appropriate components during the year is as follows:
Salaries Fees *Other Emoluments **Benefits-in-kind Total

RM RM RM RM RM
Executive Director 1,546,000 - 866,722 196,635 2,609,357
Non-Executive Director 84,000 240,000 66,000 9,690 399,690
Total 1,630,000 240,000 932,722 206,325 3,009,047
Notes:
* Other emoluments include: bonuses, incentives, retirement benefits, provisions for leave and allowances.
** Benefits-in-kind include: rental payments, motor vehicle, club membership and personal expenses.
The aggregate remuneration of Directors in respective bands of RM50,000 during the year is as follows:
Range of Remuneration Executive Director Non-Executive Director
Below RM50,000 8
RM100,001 to RM150,000 1
RM250,001 to RM300,000 1
RM400,001 to RM450,000 1
RM450,001 to RM500,000 1
RM1,400,001 to RM1,450,000 1
Notes:
1. For security and confidentiality reasons, the details of Directors’ remuneration are not shown with reference to Directors
individually. The Board is of the view that the transparency and accountability aspects of the corporate governance on
Directors’ remuneration are appropriately served by the band disclosure made.
2. Remuneration paid to an alternate Director who is a full time employee of the Group has been placed according to the
classification of the principal Director.
III. INVESTOR RELATIONS AND SHAREHOLDERS COMMUNICATION
The Board acknowledges the need for shareholders to be informed of all material business matters affecting the
Company. The Group has a Corporate Affairs Division which provides a platform for two-way communication
between the Company and shareholders and investors. In addition to various announcements made during the
year, the timely release of financial results on a quarterly basis provides shareholders and investing public with
an overview of the Group’s performance and operations.
AGM, usually held in May each year, is the principal forum for dialogue with shareholders. At each AGM, the
Board encourages shareholders to participate in the question and answer session. The Chairman and/or the
Managing Director respond to shareholders’ questions, where appropriate, during the meeting. The external
auditors also present to provide their professional and independent view, if required, on issues or concern
highlighted by shareholders. A press conference is normally held after AGM.
The Group also conducts road shows and investor briefings with financial analysts, institutional investors and fund
managers from time to time as a means of effective investors relationship. In addition, shareholders can obtain
up-to-date information on the Company and the Group’s activities, press releases, corporate announcements and
the latest quarterly result announcement by accessing its website at www.igbcorp.com.
IV. ACCOUNTABILITY AND AUDIT
(1) Financial reporting
In presenting the annual financial statements and quarterly results to shareholders, the Board aims to present
a balanced and understandable assessment of the Group’s financial position and prospects.
(2) Directors’ Responsibility Statement
The Directors are required by the Act to prepare the financial statements for each financial year in accordance
with the applicable approved accounting standards to give a true and fair view of the state of affairs of the
Group and the Company at the end of the financial year and of the results of the Group and the Company
for the financial year.
The Directors consider that in preparing Financial Statements FY2007, the Group has adopted appropriate
accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates.
The Directors have responsibility for ensuring that the Group and the Company keep accounting records
which disclose with reasonable accuracy the financial position of the Group and the Company which enable
them to ensure that the Financial Statements comply with the Act.
(3) Internal control
The Code requires the Board to maintain a sound system of internal controls to safeguard shareholders’
investment and the Group’s assets. The Group’s inherent system of internal control is designed to provide
reasonable assurance but not absolute assurance against the risk of material errors, fraud or losses
occurring.
An overview of the state of internal control of the Group is set out on in the Statement of Internal Control.
(4) Relationship with the auditors
The Board maintains a formal and transparent professional relationship with the Group’s auditors, both
external and internal, through AC.
V. OTHER INFORMATION
(1) Material contracts
Save as disclosed below, neither the Company nor any of its subsidiaries had entered into any material
contract which involved Directors’ and/or major shareholders’ interests, either still subsisting at the end of
the financial year or which was entered into since the end of the previous financial year:
Mode of
Transacting Nature of Consideration settlement of Nature of
Date Parties transaction RM consideration relationship
07.05.07 IGB and MVC IT Payment to IGB shall be based Cash 
Fiberlynx Sdn Infrastructure on 65% of Fiberlynx’s profit
Bhd Management before tax (PBT) until such
(Fiberlynx) Agreement time that the full investment
cost on the IT infrastructure
has been recouped;
the amount payable shall be
then reduced to 50% of
Fiberlynx’s PBT
11.09.97 Cititel Hotel Renewal of Management Fee: 3% of gross Cash ≈
Management Management, operating revenue or
Sdn Bhd (CHM) Marketing RM80,000 per month,
and and whichever is higher;
Cahaya Utara Reservations Marketing Fee: 1.5% gross
Sdn Bhd (CUSB) Agreement operating revenue or RM1.00
per available room night,
whichever is higher.
Notes:
 Fiberlynx is a wholly-owned subsidiary of Macro Lynx Sdn Bhd (ML), in turn a wholly-owned subsidiary of Goldis
Berhad (Goldis), the latter is a major shareholder of IGB. Robert Tan Chung Meng (RTCM), Pauline Tan Suat Ming
(PTSM), Tony Tan @ Choon Keat (TTCK), Dato’ Tan Chin Nam (DTCN), Tan Chin Nam Sdn Bhd (TCNSB), Tan Kim
Yeow Sdn Bhd (TKYSB) and Wah Seong (Malaya) Trading Co Sdn Bhd (WSTSB) are/were directors and/or major
shareholders of IGB and Goldis.
≈ CHM is 60%-owned by IGB. CUSB is the owner of Cititel Penang and 50%-owned by WSTSB.
(2) Recurrent related party transactions of a revenue or trading nature (‘RRPTs’)
At the last AGM held on 31 May 2007, the Company obtained a shareholders’ mandate to allow the Group
to enter into RRPTs.
In accordance with Section 4.1.5 of Practice Note No. 12/2001 issued by Bursa Securities, the details of the
RRPTs conducted during FY2007 pursuant to the shareholders’ mandate are as follows:
Aggregate Value
Nature of RRPTs Transacting Parties Interested Related Parties RM
 Lease/tenancy of properties/assets KrisAssets RTCM a 9,665,261-53
& related facilities to/from related Holdings Berhad Tan Boon Seng b (‘TBS’)
parties for no more than 3 years group of Tan Lei Cheng c (‘TLC‘)
nor payment in lump sum companies Tan Boon Lee d (‘TBL‘)
 Provision/receipt of management (‘Kris Group’) PTSM e
& consultancy services including TTCK f
but not limited to project DTCN g
development, sales & marketing, Daniel Yong Chen-I h (‘DYCI‘)
hotel, construction, engineering, Elizabeth Tan Hui Ning i
landscaping, advertising, (‘ETHN‘)
maintenance, security and Goldis j
support services TCNSB k
 Purchase/supply of building TKYSB l
materials and related products WSTSB m
Aggregate Value
 Purchase/procurement of Goldis group of RTCM a 1,367,588-21
information technology relating companies TBS b
to products and consultancy (‘Goldis Group’) TLC c
services TBL d
 Lease/tenancy of properties/assets PTSM e
& related facilities to/from related TTCK f
parties for no more than 3 years DTCN g
nor payment in lump sum DYCI h
 Provision/receipt of management ethn i
& consultancy services including Goldis j
but not limited to project TCNSB k
development, sales & marketing, TKYSB l
hotel, construction, engineering, WSTSB m
landscaping, advertising,
maintenance, security and
support services
 Sale of land or land based
properties in the ordinary

course of business of not more
than 10% of any one of the
percentage ratios in the Listing
Requirements
 Lease/tenancy of properties/assets WSTSB group of RTCM a 4,516,193-60
& related facilities to/from related companies TBS b
parties for no more than 3 years (‘WSTSB Group’) TLC c
nor payment in lump sum TBL d
 Provision/receipt of management PTSM e
& consultancy services including TTCK f
but not limited to project DTCN g
development, sales & marketing, DYCI h
hotel, construction, engineering, ethn i
landscaping, advertising, Goldis j
maintenance, security and TCNSB k
support services TKYSB l
 Sale of land or land based WSTSB m
Requirements
 Purchase/supply of building Wah Seong RTCM a 778,106-75
materials and related products Corporation TBS b
 Sale of land or land based Berhad group of TLC c
properties in the ordinary companies TBL d
course of business of not more (‘WSCB Group’) PTSM e
than 10% of any one of the TTCK f
percentage ratios in the Listing DTCN g
Requirements DYCI h
ethn i
Goldis j
TCNSB k
TKYSB l
WSTSB m
Aggregate Value
 Lease/tenancy of properties/assets TCNSB TBS b 6,841-00
& related facilities to/from related TLC c
parties for no more than 3 years TBL d
nor payment in lump sum DTCN g
 Provision/receipt of management Goldis j
& consultancy services including TCNSB k
but not limited to project wSTSB m
development, sales & marketing,
hotel, construction, engineering,
support services
 Sale of land or land based

Requirements
 Legal advisory and consultancy Jeyaratnam & TBS b 308,219-59
services by solicitors Chong (‘J&C’) TLC c
 Lease/tenancy of properties/assets TBL d
& related facilities to/from related DTCN g
parties for no more than 3 years
nor payment in lump sum
 Provision/receipt of management Mayside Antony Patrick Barragry n 120,000-00
& consultancy services including Engineering S.A.
but not limited to project (‘ME’)
development, sales & marketing,
hotel, construction, engineering,
support services
 Lease/tenancy of properties/assets Lamanila Café Yeoh Chong Swee o 115,584-00
& related facilities to/from related Sdn Bhd (‘LM’)
parties for no more than
3 years nor payment in lump
sum
 Lease/tenancy of properties/assets Subsidiaries of IGB RTCM a 16,998,630-87
& related facilities to/from related  CHM TBS b
parties for no more than 3 years  Tan & Tan Realty TLC c
nor payment in lump sum Sdn Bhd (‘TTR’) TBL d
 Provision/receipt of management  Technoltic PTSM e
& consultancy services including Engineering TTCK f
but not limited to project Sdn Bhd (‘TE’) DTCN g
development, sales & marketing, DYCI h
hotel, construction, engineering, ethn i
landscaping, advertising, Goldis j
maintenance, security and TCNSB k
support services TKYSB l
WSTSB m
Nature of Interest:
a
RTCM is a Director of IGB Group, Kris Group, WSCB Group, WSTSB Group, TKYSB Group and CUSB. He is a major shareholder
of IGB, Kris, Goldis, WSCB and TKYSB. He is the father of Elizabeth Tan Hui Ning and a brother of PTSM & TTCK.
b
TBS is a Director of IGB. He is a major shareholder of Goldis. He is a son of DTCN and a brother of TLC & TBL; and a brother-in-
law to Chong Kim Weng (CKW), a senior partner of J&C.
c
TLC is a Director of IGB Group, Kris Group, Goldis Group, TCNSB and WSTSB. She is a daughter of DTCN and a sister of TBS &
TBL; and the spouse of CKW.
d
TBL is a Director of IGB Group, Kris, Goldis Group, TCNSB and WSTSB Group. He is a son of DTCN and a brother of TBS & TLC;
and a brother-in-law to CKW.
e
PTSM is a Director of IGB, Goldis, WSCB, WSTSB Group, CUSB and TKYSB Group. She is a major shareholder of IGB, Kris,
Goldis, WSCB and TKYSB. She is the mother to Daniel Yong Chen-I and a sister of RTCM & TTCK.
f
TTCK is a Director of IGB and TKYSB. He is a major shareholder of IGB, Kris, Goldis, WSCB and TKYSB. He is a brother of RTCM
& PTSM.
g
DTCN is a Director of TCNSB and WSTSB Group. DTCN is the father of TBS, TLC & TBL; and the father–in-law to CKW.
h
Daniel Yong Chen-I is a Director of IGB Group and Kris Group. He is a son of PTSM.
i
Elizabeth Tan Hui Ning is alternate to RTCM on the Board of Kris. She is a daughter to RTCM.
j
Goldis is a major shareholder of IGB and Kris and a person connected to RTCM, TBS, DTCN, PTSM, TTCK, TKYSB, TCNSB and
WSTSB.
k
TCNSB is a major shareholder of IGB, Kris, Goldis, WSCB and WSTSB and a person connected to DTCN.
l
TKYSB is a major shareholder of IGB, Kris, Goldis, WSCB and WSTSB and a person connected to RTCM, PTSM and TTCK.
m
WSTSB is a major shareholder of IGB, Kris, Goldis, WSCB, CHM, CUSB, TTR and TE and a person connected to RTCM, DTCN,
PTSM, TTCK, TCNSB and TKYSB.
n
Antony Patrick Barragry is a Director of IGB Group and Kris Group. He is also a Director and major shareholder of ME.
o
Yeoh Chong Swee is a Director of IGB. He is the spouse of Yik Lian Ing, a Director and major shareholder of LM.
Audit Committee Report
The Audit Committee (‘AC’) of IGB is pleased to present the AC Report for FY2007
The AC was established by the Board on 12 April 1994 to assist the Board to carry out its responsibilities. The AC is
governed by its terms of reference.
I. MEMBERS
The members of AC comprises 3 Independent Non-Executive Directors and a Non-Independent Non-Executive

Director as follows:

 Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman, AC Chairman (Senior Independent Non-Executive Director)
 Tan Kai Seng (Independent Non-Executive Director)
 Yeoh Chong Swee (Independent Non-Executive Director)
 Tony Tan @ Choon Keat (Non-Independent Non-Executive Director)
II. MEETINGS
The AC met on 4 occasions during FY2007 and the attendance of each member of AC was as follows:
Number of meetings attended
Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman 4

Tan Kai Seng 4
Yeoh Chong Swee 3
Tony Tan @ Choon Keat (appointed on 23 October 2007) 1
Robert Tan Chung Meng (resigned on 1 October 2007) 3
III. SUMMARY OF ACTIVITIES
A summary of the activities performed by AC during FY2007 were as follows:

(1) Financial Reporting
Reviewed, deliberated and recommended for Board approval the quarterly financial result announcements
and the year end financial statements of the Group.
(2) External Audit
(a) Recommended to the Board the appointment and remuneration of the external auditors.
(b) Reviewed the audit strategy and plan with the external auditors.
(c) Reviewed and directed follow-up action, when needed, the findings of the external auditors on the
results of the external audits.
(d) Discussed matters arising with the external auditors on their audit of the Group without the presence of
the management.
(3) Internal Audit
(a) Reviewed and approved the annual audit plan proposed by the Group Internal Audit (‘GIA’) which
covered projects and entities across all levels of operations within the Group.
(b) Reviewed and directed follow-up action, when needed, on GIA reports on the Group and ad hoc
assignments.
(c) Reviewed GIA reports on the effectiveness and adequacy of internal controls, risk management,
compliance and governance processes.
(4) Related Party Transactions
Reviewed the disclosure of related party transactions of the Group and the reporting procedures for related
party transactions.
Audit Committee Report (cont’d)
IV. INTERNAL AUDIT FUNCTION
The Group’s internal audit function is carried out by GIA Division, which reports to AC on its activities based on
the approved annual internal audit plan.
The GIA Division adopts a risk-based auditing approach taking into account global best practices and industry
standards. The main role of GIA Division is to provide AC with independent and objective reports on the
effectiveness of the system of internal control within the Group.
GIA reports arising from assignments were issued to management for their response on their proposed corrective
actions and/or status of implementation of audit recommendations. GIA reports were subsequently tabled to AC
for their deliberation.
Further details of the activities of GIA are set out in the Statement of Internal Control.
V. TERMS OF REFERENCE
(1) Membership
The members of AC shall be appointed by the Board upon the recommendations of the Nomination
Committee and shall consist of not less than 3 members, a majority of whom shall be independent Directors
and at least one of whom shall be a member of the Malaysian Institute of Accountants or fulfils such other
requirements as prescribed in Chapter 15.10 of the Listing Requirements. The AC Chairman shall be an
independent non-executive Director. No alternate Director shall be appointed to AC.
(2) Objectives
The primary objectives of AC are:
(a) ensure transparency, integrity and accountability in the Group’s activities so as to safeguard the rights
and interests of shareholders;
(b) provide assistance to the Board in discharging its responsibilities relating to the Group’s management of
principal risks, internal controls, financial reporting and compliance of statutory and legal requirements;
and
(c) maintain through regularly scheduled meetings, a direct line of communication between the Board,
senior management, internal and external auditors.
(3) Authorities
The AC has the following authorities as empowered by the Board:

(a) investigate any activity within its terms of reference or as directed by the Board;
(b) obtain the resources required to perform its duties;
(c) full and unrestricted access to any information pertaining to the Group;
(d) direct communication channels with external and internal auditors; and
(e) obtain independent professional advice as necessary.
(4) Functions and Responsibilities
The functions and responsibilities of AC are as follows:
(a) review the quarterly results and year end financial statements before submission to the Board for
approval, focusing primarily on:
 going concern assumptions;

 changes in existing or implementation of new accounting policies;
 major judgemental areas, significant and unusual events; and
 compliance with accounting standards, regulatory and other legal requirements.
Audit Committee Report (cont’d)
(b) review and discuss with external auditors of the following:
 external audit plans and scope of work;

 external audit reports, management’s response and actions taken;
 external audit evaluation of the system of internal controls; and
 problems and reservations arising out of external audits and any matters external auditors may wish
to discuss, in the absence of management, if necessary.
(c) review the following in respect of internal auditors:
 adequacy of the audit scope and resources of GIA function and that it has the necessary authority to
carry out their work;
 GIA audit plan and programme;
 GIA programme, processes and results of GIA audit reviews or investigation, and ensure that
appropriate actions are taken by management on the recommendations of GIA function;
 effectiveness of the system of internal controls;
 major findings of GIA investigations and management’s response and actions;
 appraisal or assessment of the performance of GIA staff;
 approve any appointment or termination of senior staff member of GIA function; and
 note resignations of GIA staff and provide the resigning staff an opportunity to submit his/her reason
for resignation.
(d) review related party transactions and situations where a conflict of interest may arise within the Group
including any transaction, procedure or course of conduct that raises questions of management integrity,
and to ensure that Directors report such transactions annually to shareholders via annual report.
(e) consider and recommend the nomination and appointment, the audit fee and any questions of
resignation, dismissal or re-appointment of external auditors.
(f) report promptly to Bursa Securities on any matter reported by it to the Board which has not been
satisfactorily resolved resulting in breach of the Listing Requirements.
(g) review all prospective financial information provided to the regulators and/or public.
(h) prepare reports, if the circumstances arise or at least once a year, to the Board summarising the work
performed in fulfilling AC’s primary responsibilities.
(i) act on any matters as may be directed by the Board.
(5) Meetings
The AC meets on a quarterly basis with the objective of reviewing the Group’s financial reporting. The AC
complements this through regular meetings with senior management and both internal and external auditors
to review the Group’s overall state of governance and internal controls. To ensure that critical issues are
highlighted to all Board members in a timely manner, where possible, AC meetings are convened before
Board meetings. The minutes of AC are tabled to the Board where issues can be further deliberated, if
necessary.
Unless otherwise determined by AC members, 3 days’ notice specifying the place, date and time of AC
meeting and the matters to be discussed thereat shall be given to all AC members. The external and internal
auditors may request a meeting by notifying the company secretary if deemed necessary.
The quorum for each meeting shall be 2 members present in person, of whom 2 must be independent
Directors. In the absence of the Chairman, the members present shall elect a Chairman for the meeting
amongst the members present.
TAN SRI DATO’ SERI KHALID AHMAD BIN SULAIMAN

Chairman of Audit Committee
Statement of Internal Control
RESPONSIBILITY
The Board of Directors recognises the importance of maintaining a sound system of internal control and risk
management practices to safeguard shareholders’ investment and the company’s assets. Therefore, the Board
affirms its overall responsibility for the Group’s approach to assessing risk and the systems of internal control, and
for reviewing the adequacy and effectiveness of the Group’s internal control systems and management information
systems, including compliance with applicable laws, regulations, rules, directives and guidelines. The review covers
financial, operational and compliance controls, and risk management procedures of the Group, except for associates
and joint ventures. However, such procedures are designed to manage rather than eliminate the risk of failure to
achieve business objectives and can only provide reasonable and not absolute assurance against material errors,
misstatement, losses or fraud.
The role of executive management is to implement the Board’s policies on risk and control and present assurance
on compliance with these policies. Further independent assurance is provided by an internal audit function, which
operates across the Group, and the external auditors. All employees are accountable for operating within these
policies.
RISK MANAGEMENT
The RMC comprised members of the Exco with the Managing Director as the advisor. Risk management is an ongoing
process for identifying, evaluating, managing and reviewing significant risks faced by the businesses in the Group.
The risk management process involved all business and functional units of the Group in identifying significant risks
impacting the achievement of business objectives of the Group. It also involved the assessment of the impact and
likelihood of such risks and of the effectiveness of controls in place to manage them.
Steps are being taken to embed internal control and risk management further into the operations of the business and
to deal with areas of improvement which come to the management’s and the Board’s attention.
INTERNAL CONTROL
Whilst the Board maintains full control and direction over appropriate strategic, financial, organisational and
compliance issues, it has delegated to executive management the implementation of the systems of internal control.
The main elements in the internal control framework include:
 An organisational structure with formally defined lines of responsibility and delegation of authority;
 Established procedures for planning, capital expenditure, information and reporting systems, and for monitoring
the Group’s businesses and their performances;
 Review by operating divisions of their annual operating budgets with the executive management prior to
submission to the Board for approval;
 Quarterly comparison of operating divisions’ actual financial performance with budget;
 Operating policies and procedures which are subject to review and improvement;
 Regular reporting of accounting and legal developments to Exco and Board;
 Limits of Authority, which provides a framework of authority and accountability within the Group, and which
facilitates timely corporate decision making at the appropriate levels in the Group; and
 Appointment of employees of the necessary caliber to carry out the assigned responsibilities.
The GIA function monitors compliance with policies and standards and the effectiveness of internal controls in the
Group. The work of the internal audit function is focused on areas of priority as identified by risk analysis and in
accordance with an annual audit plan approved each year by AC. The head of this function reports to AC. The AC
receives reports on the function’s work and findings and regular updates on specific issues.
The external auditors are engaged to express an opinion on the financial statements. They review and test the systems
of internal control and the data contained in the financial statements to the extent necessary to express their audit
opinion. Findings arising from the audit are discussed with management and reported to AC.
The Board, through AC, has reviewed the effectiveness of the Group’s system of internal control. Some minor internal
control weaknesses were identified during the period, all of which have been, or are being addressed. None of the
weaknesses have resulted in any material losses, contingencies, or uncertainties that would require disclosure in the
Group’s annual report.
Analysis of Shareholdings
as at 10 April 2008
Authorised Share Capital : RM1,200,000,000

Issued and Paid-up Share Capital : RM744,982,003.50
Class of Shares : Ordinary shares of RM0.50 each
Voting Rights : On show of hands – 1 vote
On a poll – 1 vote for each share held
Size of shareholdings
Number Percentage of
of Shareholders Size of Shareholdings Number of Shares Issued Capital #
441 Less than 100 15,687 0.00
2,881 100 – 1,000 2,307,824 0.16
10,308 1,001 – 10,000 41,239,832 2.78
2,514 10,001 – 100,000 66,806,755 4.51
469 100,001 – less than 5% of issued shares 1,045,285,385 70.61
1 5% and above of issued shares 324,754,224 21.94
16,614 1,480,409,707 100.00
REGISTER OF SUBSTANTIAL SHAREHOLDERS
Number of Shares
Percentage of Deemed Percentage of
Name of Shareholders Direct Issued Capital # Interest Issued Capital #
Goldis Berhad 378,409,224 25.56 27,715,575 1.87

Robert Tan Chung Meng 3,915,562 0.26 504,067,678 34.05
Pauline Tan Suat Ming 996,777 0.07 504,067,678 34.05
Tony Tan @ Choon Keat - - 504,067,678 34.05
Tan Chin Nam Sdn Bhd 52,016,945 3.51 476,670,746 32.20
Tan Kim Yeow Sdn Bhd 30,855,682 2.08 473,211,996 31.96
Wah Seong (Malaya) Trading Co. Sdn Bhd 43,285,359 2.92 428,106,387 28.92
Employees Provident Fund Board 76,513,590 5.17 - -
THIRTY LARGEST SHAREHOLDERS

Percentage of
Number of Shares Issued Capital #

1. Goldis Berhad 324,754,224 21.94
2. Public Invest Nominees (Asing) Sdn Bhd 44,900,000 3.03
- Exempt AN for Public Bank (Nominees) Limited
3. Amanah Raya Nominees (Tempatan) Sdn Bhd 38,000,000 2.57
- Skim Amanah Saham Bumiputera
4. Tan Chin Nam Sendirian Berhad 37,676,070 2.54
5. Wah Seong (Malaya) Trading Co. Sdn Bhd 35,888,059 2.42
6. HSBC Nominees (Asing) Sdn Bhd 34,757,975 2.35
- Exempt AN for Credit Suisse (SG BR-TST-Asing)
- HPBS SG for Kenderlay Ltd
8. Multistock Sdn Bhd 27,715,575 1.87
9. Employees Provident Fund Board 27,409,990 1.85
10. Cartaban Nominees (Asing) Sdn Bhd 26,871,000 1.82
- SSBT Fund KG67 for AIM International Emerging Growth Fund
Analysis of Shareholdings (cont’d)

as at 10 April 2008
THIRTY LARGEST SHAREHOLDERS

Percentage of
Number of Shares Issued Capital #

11. Tan Kim Yeow Sendirian Berhad 25,871,432 1.75
12. Permodalan Nasional Berhad 25,183,075 1.70
13. HSBC Nominees (Tempatan) Sdn Bhd 24,724,900 1.67
- Nomura Asset Management Malaysia for Employees Provident Fund
- Exempt AN for JPMorgan Chase Bank, National Association (U.K.)
15. M & A Nominee (Asing) Sdn Bhd 17,689,150 1.19
- Montego Assets Limited
- Exempt AN for HSBC Private Bank (Suisse) S.A. (Nassau AC CL)
- Exempt AN for Morgan Stanley & Co. International PLC
(IPB Client ACCT)
18 Citigroup Nominees (Asing) Sdn Bhd 13,975,400 0.94
- Chase Manhattan Trustees Limited for Pacific Trust (CBLDN)
- CS (Lux) S.A. for Credit Suisse Equity Fund (Lux) – Asian Property
- Exempt AN for the HongKong and Shanghai Banking Corporation
Limited (HBFS-I CLT ACCT)
21. Tan Chin Nam Sendirian Berhad 11,900,000 0.80
- Government of Singapore Investment Corporation Pte Ltd
for Government of Singapore (C)
23. Citigroup Nominees (Asing) Sdn Bhd 11,062,600 0.75
- CBNY for DFA Emerging Markets Fund
- TNTC for Saudi Arabian Monetary Agency
- Investors Bank and Trust Company for Ishares, Inc
- SSBT Fund C021 for College Retirement Equities Fund
27. M & A Nominees (Asing) Sdn Bhd 9,750,000 0.66
- Dawnfield Pte Ltd
28. Wah Seong Enterprises Sdn Bhd 9,551,714 0.65
29. Citigroup Nominees (Asing) Sdn Bhd 9,513,400 0.64
- CBLDN for Standard Life International Trust
30. Mayban Nominees (Asing) Sdn Bhd 9,334,900 0.63
- DBS Bank for Ripley Services Limited (200932)
Total 912,636,564 61.64

Analysis of Shareholdings (cont’d)

as at 10 April 2008
Register of DIRECTORS’ SHAREHOLDINGS IN IGB CORPORATION BERHAD

Number of Shares
Percentage of Percentage of
Name of Directors Direct Issued Capital # Deemed Issued Capital #
Tan Sri Abu Talib bin Othman 1,385,000 0.09 - -
Robert Tan Chung Meng 3,915,562 0.26 504,067,678 34.05
Tan Boon Seng - - 12,891,975 0.87
Tan Boon Lee 2,895,574 0.20 - -
Tan Lei Cheng 1,962,667 0.13 1,690,137 0.11
Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman 560,316 0.04 187,875 0.01
Tan Kai Seng 92,750 0.01 - -
Yeoh Chong Swee - - 53,500 negligible
Datuk Abdul Habib bin Mansur - - - -
Chua Seng Yong 51,006 negligible - -
Register of DIRECTORS’ SHAREHOLDINGS IN KRISASSETS HOLDINGS BERHAD
Number of Shares
Name of Directors Direct Issued Capital * Deemed Issued Capital *
Tan Sri Abu Talib bin Othman - - - -
Robert Tan Chung Meng - - 247,529,056 74.92
Tan Boon Seng - - - -
Tan Boon Lee 1,100 negligible - -
Tan Lei Cheng - - - -
Pauline Tan Suat Ming - - 247,529,056 74.92
Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman 29,864 0.01 10,013 negligible
Tan Kai Seng 4,743 negligible - -
Yeoh Chong Swee - - - -
Chua Seng Yong 20,012 negligible - -
Register of DIRECTORS’ WARRANTHOLDINGS IN KRISASSETS HOLDINGS BERHAD
Number of Warrants
Outstanding Outstanding
Name of Directors Direct Warrants Deemed Warrants
Tan Sri Abu Talib bin Othman 66 negligible - -
Robert Tan Chung Meng 662,730 0.60 86,216,077 78.28
Tan Boon Seng - - - -
Tan Boon Lee - - - -
Tan Lei Cheng 44,045 0.04 39,916 0.04
Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman - - - -
Tan Kai Seng - - - -
Yeoh Chong Swee - - - -
Chua Seng Yong 87 negligible - -
Notes:
# Issued and paid-up share capital of RM740,204,853.50 comprising 1,480,409,707 ordinary shares excluding 9,554,300
treasury shares.
* Issued and paid-up share capital of RM330,420,500 comprising 330,420,500 ordinary shares excluding 100,000 treasury shares.
List of Major Properties

held by IGB Group as at 31 December 2007
Age of Date of Net Book

Land Building Description/ Acquisition/ Value
Location / Address Tenure (Years) Existing use Revaluation RM million
1 Mid Valley City, Leasehold 8 Shopping complex 17-12-1999 562,514
Lingkaran Syed Putra, expiring known as Mid Valley
59200 Kuala Lumpur 2103 Megamall together with
approximately 6,500 car
parking bays
2 Mid Valley City, Leasehold 1 Shopping complex 28-12-2004 442,366
Lingkaran Syed Putra, expiring known as The Gardens
59200 Kuala Lumpur 2103 Mall together with
approximately 4,300 car
parking bays
3 Part of Lot PT 13 HS(D) Leasehold - The Gardens Hotel 28-12-2004 167,853
105026 Section 95A expiring and Residences under
Kuala Lumpur 2103 construction at Mid
Valley City
4 Lot 15256 Freehold - 344.0 hectares approved 31-1-2002 123,846
Mukim of Labu, mixed development
District of Seremban, for residential and
Negeri Sembilan commercial use and
unsold completed units
5 Part of Lot PT 13 HS(D) Leasehold - Office space at The 28-12-2004 118,913
105026 Section 95A expiring Gardens South Tower
Kuala Lumpur 2103 under construction at
Mid Valley City
6 Part of Lot PT 13 HS(D) Leasehold - Office space at The 28-12-2004 111,559
105026 Section 95A expiring Gardens North Tower
Kuala Lumpur 2103 under construction at
Mid Valley City
7 Mid Valley City, Leasehold 8 646 rooms hotel known 27-3-2006 97,391
Lingkaran Syed Putra, expiring as Cititel Hotel Mid
59200 Kuala Lumpur 2103 Valley
8 386 Jalan Tun Razak Freehold 18 242 rooms all-suite 31-1-2002 97,310
Kuala Lumpur hotel known as MiCasa
Hotel Apartments
9 207 Jalan Tun Razak Freehold 14 339,000 sq ft office 31-1-2002 86,749
Kuala Lumpur space at Menara Tan &
Tan
10 Teluk Belaga, Freehold 22 259 rooms resort hotel 24-12-2006 86,106
Pangkor Island known as “Pangkor
Island Beach Resort”
Five-Year Group Financial Highlights
2003 2004 2005 2006 2007

REVENUE RM ‘000 532,166 504,558 619,677 718,961 673,931
PROFIT BEFORE TAX1 RM ‘000 184,358 141,742 173,357 202,028 204,189
PROFIT ATTRIBUTABLE
TO EQUITY HOLDERS RM ‘000 147,533 101,123 105,458 135,915 136,851
ISSUED SHARE CAPITAL (RM0.50) RM ‘000 581,805 706,937 730,277 732,523 744,862
SHAREHOLDERS’ FUNDS RM ‘000 2,098,803 2,292,083 2,382,386 2,477,603 2,639,601
TOTAL ASSETS RM ‘000 3,228,158 3,460,427 3,696,304 3,861,714 4,342,096
EARNINGS PER SHARE (Basic) sen 12.9 8.2 7.2 9.3 9.3
NET ASSETS PER SHARE RM 1.9 1.7 1.7 1.8 1.8
GROSS DIVIDENDS PER SHARE sen 5.0 2.5 2.5 2.5 2.5
DIVIDEND RATE % 10.0 5.0 5.0 5.0 5.0
Note 1
With effect from financial year 2006, profit before tax includes share of results of associates net of tax.
Associates’ tax amounted to RM8.1 million for financial year 2006.
Associates’ tax amounted to RM12.6 million for financial year 2007.
Revenue (RM’000)
2007 673,931
2006 718,961
2005 619,677
2004 504,558
2003 532,116
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000
PROFIT BEFORE TAXATION (RM’000)

2007 204,189
2006 202,028
2005 173,357
2004 141,742
2003 184,358
0 50,000 100,000 150,000 200,000
sHAREHOLDERS’ FUNDS (RM’000)

2007
2,639,601
2006
2,477,603
2005
2,382,386
2004 2,292,083
2003 2,098,803
0 50,000 100,000 150,000 200,000 250,000
Contents
Reports and Financial Statements
Directors’ report 32 - 37
Income statements 38
Balance sheets 39 - 40
Consolidated statement of changes in equity 41 - 44
Company statement of changes in equity 45 - 46
Cash flow statements 47 - 48
Notes to the financial statements 49 - 107
Statement by Directors 108
Statutory Declaration 109
Report of the auditors 110

Directors’ report
for the financial year ended 31 December 2007
The Directors have pleasure in submitting their report to the members together with the audited financial statements
of the Group and Company for the financial year ended 31 December 2007.
Principal activities and corporate information
The principal activities of the Company during the financial year are those of investment holding and property
development. The principal activities of the Group mainly consist of property development, property investment and
management, hotel operation, construction and investment holding. There have been no significant changes in the
nature of these activities during the financial year.
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and listed on the Main
Board of Bursa Malaysia Securities Berhad.
The address of the principal place of business and registered office of the Company is as follows:
Penthouse, Menara IGB

No. 1, The Boulevard, Mid Valley City
Lingkaran Syed Putra, 59200 Kuala Lumpur
Financial results
Group Company
RM ‘000 RM ‘000

Profit for the financial year 147,719 216,387
Dividends
Dividends paid, declared or proposed since the end of the Company’s previous financial year are as follows:
RM ‘000
(i) In respect of the financial year ended 31 December 2006 :

(a) A final dividend of 5.0% tax exempt paid on 13 July 2007. 37,168
(b) An Irredeemable Convertible Preference Shares (‘ICPS 2002/2007’) dividend
of 1% less tax paid on 15 March 2007. 195
(ii) In respect of the financial year ended 31 December 2007 :

(a) An interim dividend of 2.5% less tax and 2.5% tax exempt was declared on
28 February 2008 and will be paid on 23 May 2008. 32,208
Reserves and provisions
All material transfers to or from reserves or provisions during the financial year have been disclosed in the financial
statements.
Directors’ report (continued)

Issue of shares
(a) Ordinary shares of RM0.50 each (‘IGB Shares’)
During the financial year, the Company’s issued and fully paid-up share capital was increased from RM732,523,126
to RM744,862,004 by way of the following issue of shares:
Issue of shares No of Nominal

shares value
‘000 RM’000

Exercise of ICPS 2002/2007 21,255 10,627

Exercise of ESOS (exercise prices RM0.93 – RM1.05) 3,423 1,712

24,678 12,339
The newly issued shares rank pari passu in all respects with the existing issued shares of the Company except
that they are not entitled to any dividends, rights, allotments and/or other distributions unless the allotment of
the new IGB Shares is made on or prior to the entitlement date of such dividends, rights, allotments and/or other
distributions.
(b) Treasury shares
In the current financial year, shareholders of the Company, by an ordinary resolution passed at the Annual
General Meeting on 31 May 2007, renewed the approval of the Company’s plan to purchase its own shares. The
Directors of the Company are committed to enhancing the value of the Company to its shareholders and believe
that the repurchase plan can be applied in the best interest of the Company and its shareholders.
During the financial year, the Company repurchased 6,253,900 of its own shares from the open market for
RM13,971,021. The average purchase price for the shares repurchased was RM2.23 per share. The repurchase
transaction was financed by internally generated funds. The shares repurchased are being held as treasury shares
in accordance with Section 67A of the Companies Act, 1965 and carried at historical cost of repurchase. The
Company has the right to distribute these shares as dividends to reward shareholders and/or resell the shares. As
treasury shares, the rights attached as to voting, dividends and participation in other distribution are suspended.
During the financial year, the Company sold 14,675,100 treasury shares in the open market for RM38,127,537.
The average selling price for the shares sold was RM2.60 per share.
At the balance sheet date, the number of outstanding ordinary shares in issue after setting off treasury shares
against equity is 1,480,815,407.
(c) IGB Group Employees Share Option Scheme (“ESOS”)
On 15 August 2003 and 10 June 2004, the Company granted 40,742,000 and 2,406,000 new ESOS to eligible
employees at an exercise price of RM0.93 per share and RM1.05 per share respectively.
Details of the ESOS are set out in note 12(d) to the financial statements.
The Company has been granted exemption by the Companies Commission of Malaysia vide its letter dated
14 November 2007 from having to disclose the list of option holders and their holdings pursuant to Section
169(11) of the Companies Act, 1965 except for information of employees who were granted 500,000 options
and above.
Other than the Directors’ options disclosed under the Directors’ interests below, there were no employees of the
Company and its subsidiaries who were granted 500,000 options and above under the ESOS during the financial
year.
There were no new options granted since the end of the previous financial year.

Directors
The Directors in office since the date of the last report are:
Tan Sri Abu Talib Bin Othman

Tan Boon Seng
Tan Boon Lee
Tan Lei Cheng
Tan Sri Dato’ Seri Khalid Ahmad Bin Sulaiman
Datuk Abdul Habib Bin Mansur
Tan Kai Seng
Yeoh Chong Swee
Harun Bin Hashim Mohd (resigned on 31 May 2007)
Chua Seng Yong (alternate to Robert Tan Chung Meng)
In accordance with Article 85 of the Company’s Articles of Association, Tan Sri Abu Talib Bin Othman, Robert Tan
Chung Meng and Yeoh Chong Swee retire by rotation at the forthcoming Annual General Meeting and, being eligible,
offer themselves for re-election.
Tan Sri Dato’ Seri Khalid Ahmad Bin Sulaiman, being over seventy years of age, retires in accordance with Section
129(6) of the Companies Act, 1965 and offers himself for re-appointment to hold office until the conclusion of the
next Annual General Meeting.
Directors’ interests
According to the Register of Directors’ shareholdings, the interests of Directors in office at the end of the financial year
in shares, ICPS 2002/2007, share options and warrants in the Company and its related corporations are as follows:
In the Company Number of ordinary shares of RM0.50 each

1 January Addition Disposal 31 December
Direct 1,385,000 0 0 1,385,000
Direct 3,915,562 0 0 3,915,562
Indirect 493,612,678 450,000 0 494,062,678
Tan Boon Seng
Direct 0 1,000,000 (1,000,000) 0
Indirect 3,731,100 200,000 (3,778,225) 152,875
Tan Boon Lee
Direct 2,895,574 0 0 2,895,574
Direct 560,316 0 0 560,316
Indirect 187,875 0 0 187,875
Tan Lei Cheng
Direct 1,812,667 0 0 1,812,667
Indirect 1,690,137 0 0 1,690,137
Direct 996,777 0 0 996,777
Indirect 493,612,678 450,000 0 494,062,678
Indirect 493,612,678 450,000 0 494,062,678

Directors’ interests (continued)
In the Company Number of ordinary shares of RM0.50 each

1 January Addition Disposal 31 December
Tan Kai Seng
Direct 89,000 3,750 0 92,750
Yeoh Chong Swee
Indirect 121,500 0 (68,000) 53,500
Chua Seng Yong
Direct 232 174 0 406
In the Company Number of ICPS 2002/2007 (expired on 17 April 2007)

Disposal
1 January Addition Conversion 31 December
Tan Kai Seng
Direct 5,000 0 (5,000) 0
Chua Seng Yong
Direct 232 0 (232) 0
In the Company Number of options (ESOS) over ordinary shares of RM0.50 each
1 January Granted Exercised 31 December
Tan Boon Seng 1,000,000 0 (1,000,000) 0
In KrisAssets Holdings Berhad Number of ordinary shares of RM1.00 each

(subsidiary) 1 January Addition Disposal 31 December

Indirect 247,529,056 0 0 247,529,056
Tan Boon Lee
Direct 1,100 0 0 1,100
Direct 29,864 0 0 29,864
Indirect 0 10,013 0 10,013
Indirect 247,529,056 0 0 247,529,056
Indirect 247,529,056 0 0 247,529,056
Tan Kai Seng
Direct 4,743 0 0 4,743
Chua Seng Yong
Direct 1,424 0 0 1,424
In KrisAssets Holdings Berhad Number of warrants 2006/2011


Direct 66 0 0 66
Direct 662,730 0 0 662,730
Indirect 86,216,077 0 0 86,216,077
Tan Boon Lee
Direct 81,130 0 (81,130) 0
Tan Lei Cheng
Direct 44,045 0 0 44,045
Indirect 39,916 0 0 39,916

Directors’ interests (continued)
In KrisAssets Holdings Berhad Number of warrants 2006/2011


Direct 16,268 0 0 16,268
Indirect 86,216,077 0 0 86,216,077
Indirect 86,216,077 0 0 86,216,077
Chua Seng Yong
Direct 87 0 0 87
By virtue of Robert Tan Chung Meng, Pauline Tan Suat Ming and Tony Tan @ Choon Keat holding more than 15%
interests in shares in the Company, they are deemed to have interest in the shares in all the subsidiaries to the extent
the Company has an interest.
Other than as disclosed above, none of the other Directors in office at the end of the financial year held any interests
in the shares, ICPS 2002/2007, share options and warrants in the Company or its related corporations during the
financial year.
Directors’ benefits
Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other
than the fees and other emoluments paid as disclosed in note 7 to the financial statements) by reason of a contract
made by the Company or by a related corporation with the Director or with a firm of which he is a member, or with a
company in which he has a substantial financial interest, except as disclosed in note 36 to the financial statements.
Except as disclosed above, neither during nor at the end of the financial year was the Company a party to any
arrangement whose object or objects was to enable the Directors of the Company to acquire benefits by means of the
acquisition of shares in, or debentures of, the Company or any other body corporate.
Statutory information on the financial statements
Before 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 off of bad debts and the making of
allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that
adequate allowance had been made for doubtful debts; and
(b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of
business their values as shown in the accounting records of the Group and Company had been written down to
an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
(a) which would render the amounts written off for bad debts or the amount of the allowance for doubtful debts in
the financial statements of the Group and Company inadequate to any substantial extent; or
(b) which would render the values attributed to current assets in the financial statements of the Group and Company
misleading; or
(c) which have arisen which would render adherence to the existing method of valuation of assets or liabilities of
the Group and Company misleading or inappropriate.

Statutory information on the financial statements (continued)
No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the
Group or Company to meet their obligations when they fall due.
At the date of this report, there does not exist:
(a) any charge on the assets of the Group or Company which has arisen since the end of the financial year which
secures the liability of any other person; or
(b) any contingent liability of the Group or Company which has arisen since the end of the financial year.
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or
the financial statements which would render any amount stated in the financial statements misleading.
In the opinion of the Directors:
(a) the results of the Group’s and Company’s operations during the financial year were not substantially affected by
any item, transaction or event of a material and unusual nature except as disclosed in the financial statements;
and
(b) except as disclosed in note 41 to the financial statements, there has not arisen in the interval between the end of
the financial year and the date of this report any item, transaction or event of a material and unusual nature likely
to affect substantially the results of the operations of the Group and Company for the financial year in which this
report is made.
Significant post balance sheet event
MiCasa Hotel Apartments, owned by TTD Sdn Bhd, a wholly-owned subsidiary of the Group, temporarily ceased its
hotel operations on 1 January 2008 for the purpose of undergoing an extensive upgrading and refurbishment exercise
for a period of approximately eighteen (18) months.
Auditors
The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office. The Directors had
endorsed the recommendations of the Audit Committee for PricewaterhouseCoopers to be reappointed the Auditors.
Signed in accordance with a resolution of the Directors dated 28 April 2008.

Managing Director

Director
Income statements
Group Company
2007 2006 2007 2006
Note RM ‘000 RM ‘000 RM ‘000 RM ‘000
Revenue 5 673,931 718,961 359,412 98,135

Cost of sales (367,827) (395,068) (84,463) (38,210)

Gross profit 306,104 323,893 274,949 59,925
Other operating income 54,539 37,381 21,151 24,567
Administrative expenses (148,710) (127,490) (18,962) (43,625)
Other operating expenses (24,368) (51,681) (9,320) (16,750)
Profit from operations 6 187,565 182,103 267,818 24,117

Finance cost 8 (41,891) (43,267) (4,554) (3,108)
Share of results of associates 40,115 55,626 0 0
Gain on disposal of an associate 18,400 7,566 22,519 0
Profit before tax 204,189 202,028 285,783 21,009

Tax expense 9 (56,470) (57,361) (69,396) (16,002)
Profit for the financial year 147,719 144,667 216,387 5,007
Attributable to:
Equity holders of the Company 136,851 135,915 216,387 5,007
Minority interests 10,868 8,752 0 0

Profit for the financial year 147,719 144,667 216,387 5,007
Earnings per ordinary share (sen) 10

- Basic 9.26 9.35
- Diluted 9.25 9.34
Gross dividends per ordinary share (sen) 11 2.50 2.50 2.50 2.50
Gross dividends per Irredeemable

Convertible Preference Share (sen) 11 1.00 1.00 1.00 1.00
Balance sheets
as at 31 December 2007
Group Company
2007 2006 2007 2006
Note RM ‘000 RM ‘000 RM ‘000 RM ‘000
Capital and reserves attributable

to equity holders of the company
Share capital 12(a) 744,862 732,523 744,862 732,523
1% Irredeemable Convertible
Preference Shares 12(c) 0 28,340 0 28,340
Share premium 426,974 386,723 426,974 386,723
Revaluation and other reserves 13 266,233 239,519 0 0
Treasury shares 12(b) (17,094) (20,066) (17,094) (20,066)
Retained earnings 14 1,218,626 1,110,564 1,350,793 1,171,769
2,639,601 2,477,603 2,505,535 2,299,289

Minority interests 89,384 90,479 0 0

2,568,082 2,299,289
Total equity 2,728,985 2,505,535
Represented by:
Non-current assets
Property, plant and equipment 17 949,496 1,150,946 4,601 3,264
Land held for property development 18(a) 265,211 212,333 6,552 6,403
Investment properties 19 1,235,097 606,202 0 0
Long term prepaid lease 20 216,840 118,385 0 0
Subsidiaries 21 0 0 1,795,018 1,834,018
Associates 22 574,734 572,329 128,760 161,095
Other investments 23 6,846 8,755 2,062 2,062
Deferred tax assets 16 3,674 2,310 520 520

3,251,898 2,671,260 1,937,513 2,007,362

Current assets
Property development costs 18(b) 148,344 191,788 5,012 20,728
Inventories 24 66,576 87,383 34,235 37,348
Marketable securities 25 73,534 4,543 60,881 4,543
Trade and other receivables 26 200,587 186,754 68,828 37,022
Amounts owing by subsidiaries 27 0 0 963,375 663,182
Amounts owing by associates 28 122,933 118,978 94,545 93,179
Amount owing by a jointly controlled entity 32 18,208 10,837 0 0
Tax recoverable 5,633 14,981 0 0
Deposits with licensed banks 29 335,247 440,512 175,699 139,575
Cash and bank balances 29 119,136 114,679 18,033 22,276

1,090,198 1,170,455 1,420,608 1,017,853
Non-current assets held for sale 30 0 19,999 0 0

1,090,198 1,190,454 1,420,608 1,017,853
Balance sheets (continued)

as at 31 December 2007
Group Company
2007 2006 2007 2006
Note RM ‘000 RM ‘000 RM ‘000 RM ‘000
Less: Current liabilities

Trade and other payables 31 589,046 405,891 25,908 20,538
Amounts owing to subsidiaries 27 0 0 670,781 649,650
Amounts owing to associates 28 27,582 28,739 0 1,469
Borrowings: 15
- Bank overdrafts 1,149 0 1,149 0
- Others 330,988 129,326 100,000 0
Tax 25,606 25,743 4,748 4,269

974,371 589,699 802,586 675,926
600,755 341,927
Net current assets 115,827 618,022
Less: Non-current liabilities

Borrowings – others 15 545,383 604,854 50,000 50,000
Deferred tax liabilities 16 93,357 99,079 0 0

638,740 703,933 50,000 50,000
2,728,985 2,568,082 2,505,535 2,299,289

Attributable to equity holders of the Company
Issued and fully paid 1% Irredeemable
ordinary shares of Convertible Preference
RM0.50 each Treasury shares Shares of RM1.00 each
Revaluation
and other
Number Nominal Number Number Nominal Share reserves Retained Minority Total
Note of shares value of shares of shares value premium (note 13) earnings Total interests equity
Group ‘000 RM’000 ‘000 RM’000 ‘000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2007 1,465,046 732,523 (17,330) (20,066) 28,340 28,340 386,723 239,519 1,110,564 2,477,603 90,479 2,568,082

Acquisition of
additional interests
in subsidiaries 0 0 0 0 0 0 0 0 0 0 (11) (11)
Share buy back 0 0 (6,254) (14,020) 0 0 0 0 0 (14,020) 0 (14,020)
Issue of shares:
- ICPS 2002/2007 12(c) 21,255 10,627 0 0 (28,340) (28,340) 17,713 0 0 0 0 0
- Employees’ share
options 12(d) 3,423 1,712 0 0 0 0 1,528 0 0 3,240 0 3,240
- Redeemable
cumulative non-
voting preference
shares to minority
interests in a
subsidiary 0 0 0 0 0 0 0 0 0 0 857 857
Disposal of
treasury shares 0 0 14,675 16,992 0 0 21,010 0 0 38,002 0 38,002
Redemption of
ICULS from MI 0 0 0 0 0 0 0 0 0 0 (2,000) (2,000)
Consolidated statement of changes in equity
Annual Report 2007
41
42
Revaluation
and other
Currency translation
differences 0 0 0 0 0 0 0 (9,501) 0 (9,501) 467 (9,034)
Share of revaluation
surplus of an associate 0 0 0 0 0 0 0 39,357 0 39,357 0 39,357
Surplus on revaluation
of property, plant and
equipment, net of tax 0 0 0 0 0 0 0 4,359 0 4,359 0 4,359
Creation of a capital
redemption reserve by
a subsidiary 0 0 0 0 0 0 0 43 (43) 0 0 0
Depreciation of revaluation
surplus on property,
plant and equipment,
net of tax 0 0 0 0 0 0 0 (909) 909 0 0 0
Liquidation of a foreign
subsidiary 0 0 0 0 0 0 0 (6,635) 7,708 1,073 0 1,073
Income and expense
recognised directly
in equity 0 0 0 0 0 0 0 26,714 8,574 35,288 467 35,755
Profit for the
financial year 0 0 0 0 0 0 0 0 136,851 136,851 10,868 147,719
Total recognised income
and expenses for the
financial year 0 0 0 0 0 0 0 26,714 145,425 172,139 11,335 183,474
Dividends:
- Ordinary shares 11 0 0 0 0 0 0 0 0 (37,168) (37,168) (11,276) (48,444)
- ICPS 11 0 0 0 0 0 0 0 0 (195) (195) 0 (195)
At 31 December 2007 1,489,724 744,862 (8,909) (17,094) 0 0 426,974 266,233 1,218,626 2,639,601 89,384 2,728,985
Consolidated statement of changes in equity (continued)
Revaluation
and other
At 1 January 2006 1,460,555 730,277 (15,300) (17,412) 32,531 32,531 383,497 248,065 1,005,428 2,382,386 88,638 2,471,024
Acquisition of
additional interests in
a subsidiary 0 0 0 0 0 0 0 0 0 0 (547) (547)
Rights issue of warrants
by a subsidiary 0 0 0 0 0 0 0 0 0 0 1,076 1,076
Share buy back 0 0 (2,030) (2,654) 0 0 0 0 0 (2,654) 0 (2,654)
Issue of shares:
- ICPS 2002/2007 12(c) 3,143 1,572 0 0 (4,191) (4,191) 2,619 0 0 0 0 0

- Employees’ share
options 12(d) 1,348 674 0 0 0 0 607 0 0 1,281 0 1,281
- Redeemable
cumulative non-
voting preference
shares to minority
interests in a
subsidiary 0 0 0 0 0 0 0 0 0 0 924 924
- Disposal of ordinary
shares in a subsidiary 0 0 0 0 0 0 0 0 0 0 11 11
Consolidated statement of changes in equity
Annual Report 2007
43
44
Revaluation
and other
differences 0 0 0 0 0 0 0 714 0 714 575 1,289
Deficit on revaluation
of property, plant &
equipment, net of tax 17 0 0 0 0 0 0 0 (8,718) 0 (8,718) 0 (8,718)
redemption reserve by
a subsidiary 0 0 0 0 0 0 0 200 (200) 0 0 0

Depreciation of
revaluation surplus on
property, plant and
equipment, net of tax 0 0 0 0 0 0 0 (742) 742 0 0 0
Income and expenses
recognized directly
in equity 0 0 0 0 0 0 0 (8,546) 542 (8,004) 575 (7,429)
Profit for the
financial year 0 0 0 0 0 0 0 0 135,915 135,915 8,752 144,667
Total recognised
income and expenses
for the financial year 0 0 0 0 0 0 0 (8,546) 136,457 127,911 9,327 137,238
Dividends:
- Ordinary shares 11 0 0 0 0 0 0 0 0 (31,102) (31,102) (8,950) (40,052)
- ICPS 11 0 0 0 0 0 0 0 0 (219) (219) 0 (219)
At 31 December 2006 1,465,046 732,523 (17,330) (20,066) 28,340 28,340 386,723 239,519 1,110,564 2,477,603 90,479 2,568,082
Consolidated statement of changes in equity (continued)
Note RM0.50 each Treasury shares Shares of RM1.00 each Non-distributable Distributable
Number Nominal Number Number Nominal Share Retained Total
of shares value of shares of shares value premium earnings equity
Company ‘000 RM’000 ‘000 RM’000 ‘000 RM’000 RM’000 RM’000 RM’000

At 1 January 2007 1,465,046 732,523 (17,330) (20,066) 28,340 28,340 386,723 1,171,769 2,299,289
Profit for the financial
year 0 0 0 0 0 0 0 216,387 216,387
Share buy back 0 0 (6,254) (14,020) 0 0 0 0 (14,020)
Disposal of treasury
shares 0 0 14,675 16,992 0 0 21,010 0 38,002
Issue of shares:
- ICPS 2002/2007 12(c) 21,255 10,627 0 0 (28,340) (28,340) 17,713 0 0
- Employees’
share options 12(d) 3,423 1,712 0 0 0 0 1,528 0 3,240
Dividends:
- Ordinary shares 11 0 0 0 0 0 0 0 (37,168) (37,168)
- ICPS 11 0 0 0 0 0 0 0 (195) (195)
At 31 December 2007 1,489,724 744,862 (8,909) (17,094) 0 0 426,974 1,350,793 2,505,535

Company statement of changes in equity
Annual Report 2007
45
46
Note RM0.50 each Treasury shares Shares of RM1.00 each Non-distributable Distributable
Number Nominal Number Number Nominal Share Revaluation Retained Total
of shares value of shares of shares value premium reserves earnings equity
Company ‘000 RM’000 ‘000 RM’000 ‘000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2006 1,460,555 730,277 (15,300) (17,412) 32,531 32,531 383,497 29,258 1,198,083 2,356,234
Profit for the financial year 0 0 0 0 0 0 0 0 5,007 5,007
Share buy back 0 0 (2,030) (2,654) 0 0 0 0 0 (2,654)
Issue of shares:
- ICPS 2002/2007 12(c) 3,143 1,572 0 0 (4,191) (4,191) 2,619 0 0 0

- Employees’
share options 12(d) 1,348 674 0 0 0 0 607 0 0 1,281
Reversal of revaluation
surplus on investment
in an associate 0 0 0 0 0 0 0 (29,258) 0 (29,258)
Dividends:
- Ordinary shares 11 0 0 0 0 0 0 0 0 (31,102) (31,102)
- ICPS 11 0 0 0 0 0 0 0 0 (219) (219)
At 31 December 2006 1,465,046 732,523 (17,330) (20,066) 28,340 28,340 386,723 0 1,171,769 2,299,289
Company statement of changes in equity
Cash flow statements

Group Company
2007 2006 2007 2006
Note RM ‘000 RM ‘000 RM ‘000 RM ‘000
Operating activities
Receipts from customers 672,474 733,771 92,930 24,835
Payment to contractors, suppliers
and employees (221,269) (290,971) (87,775) (44,603)
Cash flow from/(used in) operations 451,205 442,800 5,155 (19,768)

Interest paid (41,230) (41,953) (3,932) (3,108)
Income taxes paid (54,345) (64,828) (1,727) (2,124)
Net cash generated from/(used in)
operating activities 355,630 336,019 (504) (25,000)
Investing activities
Acquisition of additional interests
in subsidiaries 37 (11) (489) 0 0
Proceeds from disposal of an associate 21,200 0 0 0
Proceeds from capital distribution in
an associate 0 4,200 0 0
Proceeds from redemption of
preference shares 3,600 4,688 43,000 0
Proceeds from disposal of subsidiaries 38 2,036 0 0 0
Interest received 16,723 20,525 8,960 8,246
Additions to property, plant and equipment,
investment properties, long term prepaid
lease and land held for property development (657,953) (327,670) (2,328) (730)
Proceeds from sale of property, plant and
equipment 4,562 35 0 0
Acquisition of an associate 0 (50) 0 0
Subscription of additional shares in
an associate 0 (188) 0 0
Acquisition of warrants in a subsidiary 0 0 0 (4,998)
Subscription of additional shares in
subsidiaries 0 0 (4,000) (40,277)
Dividends received from subsidiaries 0 0 19,832 42,840
Dividends received from associates 20,981 3,512 20,590 610
Dividends received from other investments 0 46 0 0
Repayments from subsidiaries 0 0 102,858 205,690
Repayments to subsidiaries 0 0 (437) (5,704)
Advances from subsidiaries 0 0 101,530 43,059
Advances to subsidiaries 0 0 (343,600) (293,796)
Repayments from associates 45 292 45 20
Advances from associates 20 1,127 0 0
Advances to associates (2,632) (617) (1,411) (321)
Return of capital from an associate 15,557 0 0 0
Advances to jointly controlled entity (7,371) (4,055) 0 0
Net cash used in investing activities (583,243) (298,644) (54,961) (45,361)

Cash flow statements (continued)

Group Company
2007 2006 2007 2006
Note RM ‘000 RM ‘000 RM ‘000 RM ‘000
Financing activities
Proceeds from issuance of shares 3,240 1,281 3,240 1,281
Repayments of borrowings (58,184) (59,148) 0 0
Proceeds from borrowings 200,000 32,700 100,000 0
Purchase of treasury shares (13,971) (11,036) (13,971) (11,036)
Proceeds from disposal of treasury shares 38,128 0 38,128 0
Dividends paid (37,363) (31,321) (37,363) (31,321)
Net cash generated from/(used in)
financing activities 131,850 (67,524) 90,034 (41,076)
Foreign currencies exchange
difference on opening balances (6,194) (8,388) (3,837) (5,855)
Net (decrease)/increase in cash and
cash equivalents during the
financial year (101,957) (38,537) 30,732 (117,292)
Cash and cash equivalents at
beginning of financial year 555,191 593,728 161,851 279,143
Cash and cash equivalents at end
29 555,191 161,851
of financial year 453,234 192,583
Notes to the financial statements

1. General information
The principal activities of the Company during the financial year are those of investment holding and property
development. The principal activities of the Group mainly consist of property development, property investment
and management, hotel operation, construction and investment holding. There have been no significant changes
in the nature of these activities during the financial year.
As at 31 December 2007, all monetary assets and liabilities of the Group and Company are denominated in
Ringgit Malaysia except otherwise stated.
2. Summary of significant accounting policies
Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items
that are considered material in relation to the financial statements. These policies have been consistently applied
to all the financial years presented, unless stated otherwise.
2.1 Basis of preparation
The financial statements of the Group and Company have been prepared in accordance with the provisions
of the Companies Act, 1965 and MASB Approved Accounting Standards in Malaysia for Entities Other than
Private Entities.
The financial statements of the Group and Company have been prepared under the historical cost convention
except as disclosed in this summary of significant accounting policies.
The preparation of financial statements in conformity with the MASB Approved Accounting Standards for
Entities Other than Private Entities requires the use of certain critical accounting estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and expenses during the reported
period. It also requires Directors to exercise their judgment in the process of applying the Company’s
accounting policies. Although these estimates and judgment are based on the Directors’ best knowledge of
current events and actions, actual results may differ.
The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in note 4.
(a) Standards, amendments to published standards and interpretations that are applicable to the Group
and are effective
The new accounting standards, amendments to published standards and interpretations to existing
standards effective for the Group’s financial year beginning on or after 1 January 2007 are as
follows:
• FRS 117 Leases

• FRS 124 Related Party Disclosures
All changes in accounting policies have been made in accordance with the transition provisions in the
respective standards, amendments to published standards and interpretations.
A summary of the impact of the new accounting standard, FRS 117 on the financial statements of the
Group is set out in Note 40.
The adoption of FRS 124 did not have a material impact on the financial statements of the Group and
Company. Disclosure requirements under the standard have been adopted retrospectively.
Notes to the financial statements (continued)

2. Summary of significant accounting policies (continued)
2.1 Basis of preparation (continued)
(b) Standards, amendments to published standards and interpretations to existing standards that are
not applicable to the Group but are effective
The new accounting standards, amendments to published standards and interpretations that are
mandatory for the Group’s financial year beginning on or after 1 January 2007 but not applicable to
the Group’s operations are as follows:
• Amendment to FRS 119 Employee Benefits – Actuarial Gains and Losses, Group Plans and
Disclosures (effective for accounting periods beginning on or after 1 January 2007). This
amendment introduces the option of an alternative recognition approach for actuarial gains
and losses. It may impose additional recognition requirements for multi-employer plans where
insufficient information is available to apply defined benefit accounting. It also introduces
additional disclosure requirements. FRS 119 is not relevant to the Group’s operation as the
Group does not have any defined benefit plans.
• FRS 6 Exploration for and Evaluation of Mineral Resources (effective for accounting periods
beginning on or after 1 January 2007). This standard requires limited improvements to existing
accounting practices for exploration and evaluation expenditures. FRS 6 is not relevant to the
Group’s operations as the Group does not carry out exploration for and evaluation of mineral
resources.
• TR i-1 Accounting for Zakat on Business (effective for accounting periods beginning on or after
1 July 2006). This Technical Release prescribes the accounting treatment and presentation for
zakat on business in the financial statements of entities that pay zakat.
• TR i-2 Ijarah (effective for accounting periods beginning on or after 1 July 2006). This Technical
Release provides guidance on the application of MASB approved accounting standards to
transactions and events based on Ijarah.
(c) Standards, amendments to published standards and interpretations to existing standards that are
applicable to the Group but not yet effective
The new and revised standards, amendments to published standards and interpretations that are
applicable to the Group, but have not been early adopted, are as follows:
• FRS 112 - Income Taxes (effective for accounting periods beginning on or after 1 July 2007).
This revised standard removes the requirements that prohibit recognition of deferred tax on
unutilised reinvestment allowances or other allowances in excess of capital allowances. The
Group will apply this standard from financial periods beginning on 1 January 2008. The Group
will adopt the tax base method which has no impact to the financial statements of the Group and
Company upon initial application of this revised standard.
• Amendment to FRS 121 The Effects of Changes in Foreign Exchange Rates – Net Investment in
a Foreign Operations (effective for accounting periods beginning on or after 1 July 2007). This
amendment requires exchange differences on monetary items that form part of the net investment
in a foreign operation to be recognised in equity instead of in profit or loss regardless of the
currency in which these items are denominated in. The Group will apply this amendment from
financial periods beginning on 1 January 2008. There is no significant impact to the financial
statements of the Group and Company upon initial application of this revised standard.

(c) Standards, amendments to published standards and interpretations to existing standards that are
applicable to the Group but not yet effective (continued)
• Other revised standards (effective for accounting periods beginning on or after 1 July 2007) that
have no significant changes compared to the original standards:
- FRS 107 Cash Flow Statements

- FRS 111 Construction Contracts
- FRS 118 Revenue
- FRS 137 Provisions, Contingent Liabilities and Contingent Assets.
The Group will apply these standards from financial periods beginning on 1 January 2008.
• FRS 139 Financial Instruments: Recognition and Measurement (effective date yet to be
determined by Malaysian Accounting Standards Board). The Group will apply this standard
when effective. The Group has applied the transitional provision in FRS 139 which exempts
entities from disclosing the possible impact arising from the initial application of this standard
on the financial statements of the Group and Company.
(d) Standards, amendments to published standards and interpretations to existing standards that are
not applicable to the Group and are not yet effective
• FRS 120 - Accounting for Government Grants and Disclosure of Government Assistance
(effective for accounting periods beginning on or after 1 July 2007). This revised standard allows
the alternative treatment of recording non-monetary government grant at nominal amount on
initial recognition.
• IC Interpretation 1 - Changes in Existing Decommissioning, Restoration and Similar Liabilities

(effective for accounting periods beginning on or after 1 July 2007). This interpretation deals
with changes in the estimated timing or amount of the outflow of resources required to settle the
obligation, or a change in the discount rate.
• IC Interpretation 2 - Members’ Shares in Co-operative Entities and Similar Instruments (effective

for accounting periods beginning on or after 1 July 2007). This interpretation deals with liability
or equity classification of financial instruments which give the holder the right to request
redemption, but subject to limits on whether it will be redeemed.
• IC Interpretation 5 - Rights to Interests arising from Decommissioning, Restoration and

Environmental Rehabilitation Funds (effective for accounting periods beginning on or after 1
July 2007). This interpretation deals with accounting by a contributor for its interests arising from
decommissioning funds.
• IC Interpretation 6 - Liabilities arising from Participating in a Specific Market - Waste Electrical

and Electronic Equipment (effective for accounting periods beginning on or after 1 July 2007).
This interpretation provides guidance on the recognition, in the financial statements of producers,
of liabilities for waste management under the European Union Directive in respect of sales of
historical household equipment.

(d) Standards, amendments to published standards and interpretations to existing standards that are
not applicable to the Group and are not yet effective (continued)
• IC Interpretation 7 - Applying the Restatement Approach under FRS 129 (2004) Financial
Reporting in Hyperinflationary Economies (effective for accounting periods beginning on or
after 1 July 2007). This interpretation provides guidance on how to apply the requirement of
FRS 129 in a reporting period in which an entity identifies the existence of hyperinflation in the
economy of its functional currency, when that economy was not hyperinflationary in the prior
period.
• IC Interpretation 8 - Scope of FRS 2 (effective for accounting periods beginning on or after 1 July
2007). This interpretation clarifies that FRS 2 Share-based Payment applies even in the absence
of specifically identifiable goods or services.
2.2 Economic entities in the Group
(a) Subsidiaries
The consolidated financial statements include the financial statements of the Company and its
subsidiaries made up to the end of the financial year.
Subsidiaries are those corporations, partnerships or other entities (including special purpose entities)
in which the Group has power to exercise control over the financial and operating policies so as to
obtain benefits from their activities, generally accompanying a shareholding of more than one half of
the voting rights. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are consolidated using the purchase method of accounting.
Under the purchase method of accounting, subsidiaries are fully consolidated from the date on which
control is transferred to the Group and are de-consolidated from the date that control ceases. The cost
of an acquisition is measured as fair value of the assets given, equity instruments issued and liabilities
incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair value at the acquisition date, irrespective of the extent of any
minority interest. The excess of the cost of acquisition over the fair value of the Group’s share of
the identifiable net assets acquired at the date of acquisition is reflected as goodwill. See accounting
policy Note 2.5 on goodwill. If the cost of acquisition is less than the fair value of the net assets of the
subsidiary acquired, the difference is recognised directly in the income statement.
Minority interest represent that portion of the profit or loss and net assets of a subsidiary attributable
to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent. It is
measured at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities
at the acquisition date and the minorities’ share of changes in the subsidiaries’ equity since that
date.
Where more than one exchange translation is involved, any adjustment to the fair values of the
subsidiary’s identifiable assets, liabilities and contingent liabilities relating to previously held interests
of the Group is accounted for as revaluation.

2.2 Economic entities in the Group (continued)
(a) Subsidiaries (continued)
Intragroup transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated but considered as an impairment indicator of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and
the Group’s share of its net assets as of the date of disposal including the cumulative amount of
any exchange differences that relate to the subsidiary is recognised in the consolidated income
statement.
(b) Transactions with minority interests
The Group applies a policy of treating transactions with minority interests as transactions with parties
external to the Group. Disposals to minority interests result in gains and losses for the Group that are
recorded in the income statement. Purchases from minority interests result in goodwill, being the
difference between any consideration paid and the relevant share acquired of the carrying value of
net assets of the subsidiary.
(c) Jointly controlled entity
Jointly controlled entity is a corporation over which there is a contractually agreed sharing of control
by the Group with one or more parties where the strategic financial and operating decisions relating
to the entity require unanimous consent of the parties sharing control.
The Group’s interest in jointly controlled entity is accounted for in the financial statements by the
equity method of accounting. Equity accounting involves recognizing the Group’s share of the
post-acquisition results of the jointly controlled entity in the income statement and its share of post-
acquisition movements within reserves in reserves. The cumulative post-acquisition movements are
adjusted against the cost of investment and include goodwill on acquisition (net of accumulated
impairment loss).
The Group recognizes the portion of gains or losses on the sale of assets by the Group to the joint
venture that is attributable to the other venturers. The Group does not recognize its share of profits or
losses from the joint venture that result from the purchase of assets by the Group from the joint venture
until it resells the assets to an independent party. However, a loss on the transaction is recognized
immediately if the loss provides evidence of a reduction in the net realizable value of current assets
or an impairment loss. Where necessary, in applying the equity method, adjustments are made to the
financial statements of the jointly controlled entity to ensure consistency of accounting policies within
those of the Group.
Unrealised gains on transactions between the Group and its jointly controlled entity are eliminated to
the extent of the Group’s interest in the jointly controlled entity; unrealised losses are also eliminated
unless the transaction provides evidence on impairment of the asset transferred. Where necessary, in
applying the equity method, adjustments are made to the financial statements of the jointly controlled
entity to ensure consistency of accounting policies within those of the Group.

2.2 Economic entities in the Group (continued)
(d) Associates
Associates are those corporations, partnerships or other entities in which the Group exercises significant
influence, but which it does not control, generally accompanying a shareholding of between 20% and
50% of the voting rights. Significant influence is the power to participate in the financial and operating
policy decisions of the associates but not the power to exercise control over those policies.
Investments in associates are accounted for by using the equity method of accounting and are initially
recognised at cost. The Group’s investment in associates includes goodwill identified on acquisition
(Note 2.5), net of any accumulated impairment loss (Note 2.7).
The Group’s share of its associates’ post-acquisition profits or losses is recognised in the income
statement, and its share of post-acquisition movements in reserves is recognised in reserves. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate,
including any other unsecured receivables, the Group’s interest is reduced to nil and recognition of
further losses is discontinued except to the extent that the Group has incurred legal or constructive
obligations or made payments on behalf of the associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent
of the Group’s interest in the associates; unrealised losses are also eliminated unless the transaction
provides evidence on impairment of the asset transferred. Where necessary, in applying the equity
method, adjustments are made to the financial statements of associates to ensure consistency of
accounting policies with those of the Group.
Dilution gains and losses in associates are recognised in the income statement.
For incremental interest in an associate, the date of acquisition is purchase date at each stage and
goodwill is calculated at each purchase date based on the fair value of assets and liabilities identified.
There is no “step up to fair value” of net assets of previously acquired stake and the share of profits
and equity movements for the previously acquired stake is recorded directly through equity.
2.3 Property, plant and equipment
Property, plant and equipment are initially stated at cost. Hotel properties (land and buildings) are
subsequently shown at fair value, based on periodic, but at least once every 5 years, valuations by external
independent valuers, less subsequent depreciation and impairment losses. Any accumulated depreciation
at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is
restated to the revalued amount of the asset. All other property, plant and equipment are stated at cost less
accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly
attributable to the acquisition of the items.
A freehold land of a subsidiary was stated at valuation on 8 August 1996 by the Directors based on
valuations carried out by independent professional valuers on a fair market value basis. The Directors
applied the transitional provisions of International Accounting Standard (‘IAS’) No. 16 (Revised) Property,
Plant and Equipment as adopted by the Malaysian Accounting Standards Board which allows these assets
to be stated at their 1996 valuation. Accordingly, these assets have been stated at their existing carrying
amounts less accumulated depreciation and impairment losses.

2.3 Property, plant and equipment (continued)
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and
the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to the income statement during the period in which they are
incurred.
Surpluses arising on revaluation are credited to revaluation reserve. Any deficit arising from revaluation is
charged against the revaluation reserve to the extent of a previous surplus held in the revaluation reserve
for the same asset. In all other cases, a decrease in carrying amount is charged to income statement. Each
period, the difference between the depreciation based on the revalued carrying amount of the asset charged
to the income statement and depreciation based on the asset’s original cost is transferred from ‘revaluation
reserves’ to ‘retained earnings’.
Freehold land is not depreciated as it has an infinite life. Other property, plant and equipment are depreciated
on the straight line basis to write off the cost of the assets, or their revalued amounts, to their residual values
over their estimated useful lives, summarised as follows:

%
• Buildings, including hotel buildings 2

• Plant and machinery 10 – 20
• Motor vehicles 20
• Office furniture, fittings and equipment 12 1/2 – 33 1/3
Depreciation on assets under construction commences when the assets are ready for their intended use.
Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each balance sheet
date. The Group carries out assessment on residual values and useful lives of assets on an annual basis.
There was no adjustment arising from the assessment performed in the financial year.
At each balance sheet date, the Group assesses whether there is any indication of impairment. If such
indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully
recoverable. A write down is made if the carrying amount exceeds the recoverable amount. See accounting
policy Note 2.7 on impairment of assets.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are
included in profit/(loss) from operations. On disposal of revalued assets, amounts in revaluation reserve
relating to those assets are transferred to retained earnings.
2.4 Investment properties
Investment properties, comprising principally land and buildings, are held for long term rental yields or for
capital appreciation or both, and are not substantially occupied by the Group. Plant and equipment that are
attached to the buildings are also classified as investment properties.
Investment properties are stated at cost, including related transaction costs, less any accumulated
depreciation and any accumulated impairment losses.

2.4 Investment properties (continued)
Freehold land is not depreciated as it has an infinite life. Other categories of investment properties are
depreciated on the straight line basis to write off the cost of the assets to their residual values over their
estimated useful lives, summarised as follows:
• Buildings 2
• Plant and machinery 10 – 20
On disposal of an investment property, or when it is permanently withdrawn from use and no future
economic benefits are expected from its disposal, it shall be derecognised (eliminated from the balance
sheet). The difference between the net disposal proceeds and the carrying amount is recognised in profit or
loss in the period of the retirement or disposal.
2.5 Goodwill
Goodwill or reserve on consolidation (formerly known as “negative goodwill”) represents the excess or
deficit of the cost of acquisition of subsidiaries, jointly controlled entities and associates over the fair value
of the Group’s share of the identifiable net assets at the date of acquisition.
Goodwill on acquisition of subsidiaries occurring prior to 1 January 2006 is set off against reserve in
the period of acquisition. Goodwill on acquisitions of subsidiaries occurring on or after 1 January 2007
are included in the balance sheet as intangible asset whereas the reserve on consolidation is recognised
immediately in the income statement.
Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses.
Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is
made to those cash-generating units or groups of cash-generating units that are expected to benefit from
the synergies of the business combination in which the goodwill arose. See accounting policy Note 2.7 on
impairment of assets.
Goodwill on acquisition of associates occurring on or after 1 January 2006 is included in investments in

associates. Such goodwill is tested for impairment as part of the overall balance.
In accordance to the transitional provisions of FRS 3, the application of the policy is applied
prospectively.
2.6 Investments
Investments in subsidiaries and associates are shown at cost. Where an indication of impairment exists, the
carrying amount of the investment is assessed and written down immediately to its recoverable amount.
See accounting policy Note 2.7 on impairment of assets.
Investments in other non-current investments are shown at cost and an allowance for diminution in value
is made where, in the opinion of the Directors, there is a decline other than temporary in the value of such
investments. Where there has been a decline other than temporary in the value of an investment, such a
decline is recognised as an expense in the period in which the decline is identified.

2.6 Investments (continued)
Marketable securities (within current assets) are carried at the lower of cost and market value, determined
on an aggregate portfolio basis by category of investment.
Cost is derived at on the weighted average basis. Market value is calculated by reference to stock exchange
quoted selling prices at the close of business on the balance sheet date. Increases/decreases in the carrying
amount of marketable securities are credited/charged to the income statement.
On disposal of an investment, the difference between net disposal proceeds and its carrying amount is
charged/credited to the income statement.
2.7 Impairment of assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there is separately identifiable
cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at each reporting date.
The impairment loss is charged to the income statement unless it reverses a previous revaluation in which
case it is charged to the revaluation surplus. Impairment losses on goodwill are not reversed. In respect of
other assets, any subsequent increase in recoverable amount is recognised in the income statement unless
it reverses an impairment loss on a revalued asset in which case it is taken to revaluation surplus.
2.8 Leases
Leases of assets where a significant portion of the risk and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases (net of any incentives received
from the lessor) are charged to the income statement on the straight line basis over the lease period.
When an operating lease is terminated before the lease period has expired, any payment required to be
made to the lessor by way of penalty is recognised as an expense in the period in which termination takes
place.
2.9 Prepaid lease assets
Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee
by the end of the lease term is treated as an operating lease. Prepaid lease payments are carried at cost or
surrogate carrying amount and are amortised on a straight line basis over the lease terms in accordance with
the pattern of benefits provided.
2.10 Inventories
Inventories are stated at lower of cost and net realisable value.
Cost is determined using the first in, first out method. The cost of finished goods and work-in-progress
comprises design costs, raw materials, direct labour, other direct costs and related production overheads
(based on normal operating capacity). The cost of unsold properties comprises cost associated with the
acquisition of land, direct costs and an appropriate proportion of allocated costs attributable to property
development activities.
Net realisable value is the estimated selling price in the ordinary course of business, less the costs of
completion and applicable variable selling expenses.

2.11 Construction contracts
A construction contract is a contract specially negotiated for the construction of an asset or a combination
of assets that are closely interrelated or interdependent in terms of their design, technology and functions
or their ultimate purpose or use.
Construction contracts are recognised when incurred. When the outcome of a construction contract can be
estimated reliably, contract revenue are recognised by using the stage of completion method. The stage of
completion is measured by reference to the proportion that contract costs incurred for work perform to date
bear to the estimated total costs for the contract. Cost incurred in the year in connection with future activity
on a contract are excluded from contract costs in determining the stage of completion. They are presented
as inventories, prepayments or other assets, depending on their nature.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised
only to the extent of contract costs incurred that is probable will be recoverable.
Irrespective whether the outcome of a construction contract can be estimated reliably, when it is probable
that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense
immediately.
The aggregate of the costs incurred and the profit/loss recognised on each contract is compared against the
progress billings up to the financial year end. Where costs incurred and recognised profits (less recognised
losses) exceed progress billings, the balance is shown as amounts due from customers on construction
contracts under trade and other receivables (within current assets). Where progress billings exceed costs
incurred plus recognised profits (less recognised losses), the balance is shown as amounts due to customers
on construction contracts under trade and other payables (within current liabilities).
2.12 Property development activities
(a) Land held for property development
Land held for property development consist of land and all cost directly attributable to development
activities on which no significant development work has been undertaken or where development
activities are not expected to be completed within the normal operating cycle. Such land is classified
as non-current asset and is stated at cost less accumulated impairment losses.
Cost associated with the acquisition of land includes the purchase price of the land, professional
fees, stamp duties, commissions, conversion fees and other relevant levies. Where the Group had
previously recorded the land at revalued amount, it continues to retained this amount as its surrogate
costs as allowed by FRS 201. Where an indication of impairment exists, the carrying amount of the
asset is assessed and written down immediately to its recoverable amount. See accounting policy
Note 2.7 on impairment of assets.
Land held for property development is transferred to property development costs (under current assets)
when development activities have commenced and where development activities can be completed
with the Group’s normal operating cycle of 2 to 3 years.
(b) Property development costs
Property development costs comprise costs associated with the acquisition of land and all costs
directly attributable to development activities or that can be allocated on a reasonable basis to these
activities.

2.12 Property development activities (continued)
When the outcome of the development activity can be estimated reliably, property development
revenue and expenses are recognised by using the stage of completion method. The stage of
completion is measured by reference to the proportion that property development costs incurred bear
to the estimated total costs for property development.
When the outcome of a development activity cannot be reliably estimated, property development
revenue is recognised only to the extent of property development costs incurred that is probable will
be recoverable; property development costs on the development units sold are recognised when
incurred.
Irrespective of whether the outcome of a property development activity can be estimated reliably,
when it is probable that total property development costs (including expected defect liability
expenditure) will exceed total property development revenue, the expected loss is recognised as an
expense immediately.
Property development costs not recognised as an expense is recognised as an asset and is stated at the
lower of cost and net realisable value.
Where revenue recognised in the income statement exceed billings to purchasers, the balance is
shown as accrued billings under trade and other receivables (within current assets). Where billings
to purchasers exceed revenue recognised in the income statement, the balance is shown as progress
billings under trade and other payables (within current liabilities).
2.13 Trade receivables
Trade receivables are carried at invoice amount less allowance for doubtful debts. The allowance is
established when there is objective evidence that the Group will not be able to collect all amounts due
according to the original terms of receivables.
2.14 Cash and cash equivalents
For the purpose of cash flow statement, cash and cash equivalents consist of cash on hand, deposits held
at call with banks, other short term, highly liquid investments with original maturity of three months or less
and bank overdrafts. Bank overdrafts are included within borrowings in current liabilities on the balance
sheet.
2.15 Share capital
(a) Classification
Ordinary shares and 1% Irredeemable Convertible Preference Shares (‘ICPS 2002/2007’) with
automatic conversion on maturity date are classified as equity.
The Group has taken advantage of the transitional provisions by FRS 132 ‘Financial Instruments:
Disclosures and Presentation’, which allows financial instruments that contain both a liability and an
equity element issued prior to 1 January 2003 to be stated based on a predominant component part.

2.15 Share capital (continued)
(b) Share issue costs
External costs directly attributable to the issue of new shares are shown as a deduction, net of tax, in
equity from the proceeds.
(c) Dividends to shareholders of the Company
Dividends on redeemable preference shares are recognised as a liability and recognised on an accrual
basis.
Interim dividends are recognised as liabilities when declared before the balance sheet date. Final
dividends are accounted for when they have been approved by the Company’s shareholders.
(d) Purchase of own shares
Where the Company or its subsidiaries purchases the Company’s equity share capital, the consideration
paid, including any directly attributable incremental external costs, net of tax, is deducted from total
shareholders’ equity as treasury shares until they are cancelled, reissued or disposed off. Where such
shares are subsequently sold or reissued, any consideration received, net of any directly attributable
incremental external costs and the related tax effects, is included in shareholders’ equity.
2.16 Borrowings
(a) Classification
Borrowings are initially recognised based on the proceeds received, net of transaction costs incurred.
In subsequent periods, borrowings are stated at amortised cost using the effective yield method. Any
difference between proceeds (net of transaction costs) and the redemption value is recognised in the
income statement over the period of the borrowings.
(b) Capitalisation of borrowing cost
Borrowing costs incurred to finance the construction of property, plant and equipment are capitalised
as part of the cost of the asset during the period of time that is required to complete and prepare
the asset for its intended use. Borrowing costs incurred to finance property development activities
and construction contracts are accounted for in a similar manner. All other borrowing costs are
expensed.
2.17 Tax
Current tax expense is determined according to the tax laws of each jurisdiction in which the Group
operates and include all taxes based upon the taxable profits, including withholding taxes payable by a
foreign subsidiary and associate on distributions of retained earnings to companies in the Group, and real
property gains tax payable on disposal of properties.
Deferred tax is recognised in full, using the liability method, on temporary differences arising between
the amounts attributed to assets and liabilities for tax purposes and their carrying amounts in the financial
statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss.

2.17 Tax (continued)
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences or unused tax losses can be utilised.
Deferred tax is recognised on temporary differences on investments in subsidiaries and associates except
where the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax is determined using tax rates (and tax law) that have been enacted or substantially enacted
by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the
deferred tax liability is settled.
2.18 Employee benefits
(a) Short term employee benefits
Wages, salaries, bonuses, paid annual leave and non-monetary benefits are accrued in the period in
which the associated services are rendered by employees of the Group.
(b) Equity compensation benefits
Details of the Group’s Employees Share Option Scheme are set out in note 12(d) to the financial
statements. The Group does not make a charge to the income statement in connection with share
options granted. When the share options are exercised, the proceeds received, net of any transaction
costs, are credited to share capital and share premium.
(c) Defined contribution plans
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a
separate entity (a fund) and will have no legal or constructive obligations to pay further contributions
if the fund does not hold sufficient assets to pay all employees benefits relating to employee service
in the current and prior periods.
The Group’s contributions to defined contribution plans are charged to the income statement in
the period to which they relate. Once the contributions have been paid, the Group has no further
payment obligations. Prepaid contributions are recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.
2.19 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events, when it is probable that an outflow of resources will be required to settle the obligation, and when
a reliable estimate of the amount can be made.
2.20 Contingent liabilities and contingent assets
The Group does not recognised a contingent liability but discloses its existence in the financial statements.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Group or a present obligation that is not recognised because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in the extremely rare cases where
there is a liability that cannot be recognised because it cannot be measured reliably.

2.20 Contingent liabilities and contingent assets (continued)
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group. The
Group does not recognise contingent assets but discloses its existence where inflows of economic benefits
are probable, but not virtually certain.
In the acquisition of subsidiaries by the Group under business combinations, the contingent liabilities
assumed are measured initially at their fair value at the acquisition date, irrespective of the extent of any
minority interest.

2.21 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns,
rebates and discounts and after eliminating sales within the Group.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of the
Group’s activities as described below. The amount of revenue is not considered to be reliably measurable
until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical
results, taking into consideration the type of customer, the type of transaction and the specifics of each
arrangement.
Income from property development is recognised on the percentage of completion method based on units
sold, and where the outcome of the development projects can be reliably estimated. Anticipated losses are
provided for in full.
Income from construction contracts is recognised on the percentage of completion method in cases where
the outcome of the contract can be reliably estimated. In all cases, anticipated losses are provided for in
full.
Dividend income is recognised as income when the Group’s right to receive payment is established.
Hotel revenue is recognised upon delivery of products and customer acceptance, and performance of
services, net of sales tax and discounts.
Rental income is recognised on accrual basis in accordance with the substance of the relevant agreements
unless collectibility is in doubt in which case the recognition of such income is suspended. Other rent
related and carpark income is recognised upon services being rendered.
Management fees and project management fees are recognised on accrual basis.
Interest income is recognised on a time proportion basis, taking into account the principal outstanding and
the effective rate over the period to maturity, when it is determined that such income will accrue to the
Group.
2.22 Foreign currencies
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (the “functional currency”).
The financial statements are presented in Ringgit Malaysia, which is the Company’s functional and
presentation currency.

2.22 Foreign currencies (continued)
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement.
(c) Group companies
The results and financial position of all the group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date
of that balance sheet;
• income and expenses for each income statement are translated at average rates; and
• all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign
operations are taken to shareholders’ equity. When a foreign operation is partially disposed or sold,
exchange differences that were recorded in equity are recognised in the income statement as part of
the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rates.
2.23 Financial instruments
(a) Description
A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a
financial liability or equity instrument of another enterprise.
A financial assets is any asset that is cash, a contractual right to receive cash or another financial asset
from another enterprise, a contractual right to exchange financial instruments with another enterprise
under conditions that are potentially favourable, or an equity instrument of enterprise.
A financial liability is any liability that is contractual obligation to deliver cash or another financial asset
to another enterprise, or to exchange financial instruments with another enterprise under conditions
that are potentially unfavourable.
(b) Financial instruments recognised on the balance sheet

The particular recognition method adopted for financial instruments recognised on the balance sheet
is disclosed in the individual accounting policy statements associated with each item.

2.23 Financial instruments (continued)
(c) Fair value estimation for disclosure purposes
The fair value of publicly traded securities is based on quoted market prices at the balance sheet date.
In assessing the fair value of non-traded financial instruments, the Group uses a variety of methods
and makes assumptions that are based on market conditions existing at each balance sheet date.
The fair value of financial liabilities is estimated by discounting the future contractual cash flows at the
current market interest rate for each type of the financial liabilities of the Group.
The face values for financial assets (less any estimated credit adjustments) and financial liabilities with
a maturity of less than one year are assumed to approximate their fair values.
2.24 Segment reporting
Segment reporting is presented for enhanced assessment of the Group’s risks and returns. A business
segment is a group of assets and operations engaged in providing products or services that are subject
to risks and returns that are different from those of other business segments. A geographical segment is
engaged in providing products or services within a particular economic environment that is subject to risks
and returns that are different from those components operating in other economic environments.
Segment revenue, expense, assets and liabilities are those amounts resulting from the operating activities of
a segment that are directly attributable to the segment and the relevant portion that can be allocated on a
reasonable basis to the segment. Segment revenue, expense, assets and segment liabilities are determined
before intragroup balances and intragroup transactions are eliminated as part of the consolidation process,
except to the extent that such intragroup balances and transactions are between group enterprises within a
single segment. Inter-segment pricing is based on similar terms as those available to other third parties.
3. Financial risk management objectives and policies

The Group’s activities expose it to a variety of financial risks, including foreign currency exchange risk, interest
rate risk, market risk, credit risk, liquidity and cash flow risk. The Group’s overall financial risk management
objective is to ensure that the Group creates value for its shareholders. The Group focuses on the unpredictability
of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.
Financial risk management is carried out through risk reviews, internal control systems, insurance programmes
and adherence to Group financial risk management policies. The management regularly reviews these risks and
approves the treasury policies, which covers the management of these risks.
(a) Foreign currency exchange risk
The Group operates internationally and is exposed to various currencies. Foreign currency transactions
give rise to foreign currency exchange exposure.
The Group maintains a natural hedge, whenever possible, by borrowing in the currency of the country in
which the property or investment is located or by borrowing in currencies that match the future revenue
stream to be generated from its investments. Foreign exchange exposures in transactional currencies other
than functional currencies of the operating entities are kept to an acceptable level.
(b) Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in market interest
rates. Interest rate exposure arises mainly from the Group’s borrowings and deposits. The Group manages
its interest rate exposure by maintaining a prudent mix of fixed and floating rate borrowings.

3. Financial risk management objectives and policies (continued)
(c) Market risk
The Group faces exposure to the risk from changes in debt and equity prices. However, management
regularly reviews these risks and takes proactive measures to mitigate the potential impact of such risks.
(d) Credit risk
Credit risk arises when sales are made on deferred credit terms. The Group controls these risks by the
application of credit approvals, limits and monitoring procedures. Credit risks are minimised and
monitored by strictly limiting the Group’s associations to business partners with high creditworthiness.
Trade receivables are monitored on an ongoing basis via Group management reporting procedures. The
Group does not have any significant exposure to any individual customer or counterparty nor does it have
any major concentration of credit risk related to any financial instrument.
Concentration of credit risk with respect to trade receivables is limited due to the Group’s large number of
customers, who are dispersed over a broad spectrum of industries and businesses. The Group’s historical
experience in collection of trade receivables falls within the recorded allowances. Due to these factors,
management believes that no additional credit risk beyond amounts allowed for collection losses is inherent
in the Group’s trade receivables.
(e) Liquidity and cash flow risk
The Group actively manages its debt maturity profile, operating cash flows and the availability of funding
so as to ensure that all refinancing, repayment and funding needs are met. As part of its overall prudent
liquidity management, the Group maintains sufficient levels of cash or cash convertible investments to
meet its working capital requirements. In addition, the Group strives to maintain available banking facilities
of a reasonable level to its overall debt position. As far as possible, the Group raises committed funding
from both capital markets and financial institutions and prudently balances its portfolio with some short
term funding so as to achieve overall cost effectiveness.
4. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated by the Directors and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
4.1 Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, seldom equal the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year are as follows:
(i) Valuation of hotel properties
The fair value of each hotel properties is individually determined once every five years by independent
valuers based on a market value assessment. The valuers have relied on the discounted cash flow
analysis and the comparison method. These methodologies are based upon estimates of future results
and a set of assumptions specific to each property to reflect its income and cash flow profile.

4. Critical accounting estimates and judgements (continued)
4.1 Critical accounting estimates and assumptions (continued)
(ii) Impairment of assets
The Group determines whether an asset is impaired by evaluating the extent to which the recoverable
amount of an asset is less than its cost. This evaluation is subject to changes such as market performance,
economic and political situation of the country. A variety of methods is used to determine the
recoverable amount, such as valuation report and discounted cash flow. For discounted cash flow,
this involves the use of estimated future results and a set of assumptions to reflect its income and cash
flow. Judgement has been used to determine the discount rate for the cash flow and the future growth
of the business.
(iii) Income taxes
Significant judgement is required in determining the provision for income taxes. There are transactions
and calculations for which the ultimate tax determination is uncertain during the ordinary course of
business. The Group recognises liabilities for tax based on estimates of assessment of the tax liability
due. When the final tax outcome is different from the amount that were initially recorded, such
differences will impact the income tax and deferred tax provisions, where applicable, in the period in
which such determination is made.
Recognition of deferred tax assets, which principally relate to tax losses, depends on the expectation
of future taxable profit that will be available against which tax losses can be utilised. The outcome of
their actual utilisation may be different.
(iv) Recognition of revenue from property development
The Group recognises property development revenue based on percentage of completion method.
The percentage of completion is measured by reference to the development costs incurred to date to
the estimated total costs for the development project. Significant judgement is required in determining
the stage of completion, the extent of the development cost incurred, the estimated development
revenue and costs, as well as the recoverability of the contracts. In making the judgement, the Group
relied on past experience and work of specialist.
4.2 Critical judgement in applying the accounting policies
In determining and applying accounting policies, judgement is often required in respect of items where the
choice of specific policy could materially affect the reported results and financial position of the Group.
During the financial year, the Group does not have any material matter which required subjective judgement
by the Directors.
5. Revenue
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
Investment income 4,751 46 248,852 50,375

Rental income from investment properties 241,019 188,420 0 0
Other rental and rent related income 22,694 21,580 2,655 2,494
Sale of properties 17,979 0 0 0
Property development revenue 234,501 370,197 107,905 45,266
Hotel room revenue 109,772 92,744 0 0
Sale of food, beverages and other goods 36,583 27,941 0 0

Rendering of services 6,632 18,033 0 0
673,931 718,961 359,412 98,135


6. Profit from operations

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
Profit from operations is stated after charging:

Allowance for doubtful debts:
- Trade and other receivables 5,114 5,569 0 5,248
- Subsidiaries 0 0 0 21,841
Auditors’ remuneration:
- Current financial year 525 484 127 127
- Other fees 0 30 26 17
Bad debts written off 54 28 5 28
Depreciation:
- property, plant and equipment 29,718 22,850 991 579
- investment properties 35,284 27,233 0 0
- leasehold land 1,418 0 0 0
Hire of plant and equipment 1,300 505 0 0
Operating lease rental 762 762 0 0
Impairment losses:
- Associates 0 18,544 718 7,988
- Marketable securities 0 1,099 0 1,099
- Other investments 1,909 7,055 0 1,838
- Property, plant and equipment 7,020 7,000 0 0
- Land held for property development 800 6,795 0 0
Loss on disposal of property, plant and equipment 4 1 0 0
Non-audit fees 134 262 16 30
Rental of buildings 3,891 3,602 1,075 986
Staff cost (includes Directors’ remuneration as
disclosed in note 7 but excludes defined
contribution plan) 71,942 62,039 13,782 11,686
Defined contribution plan 7,207 6,686 1,700 1,510
Foreign exchange loss 11,480 8,595 5,541 5,824
Write off of property, plant and equipment 1,674 50 0 0
Provision for liquidated damages 2,310 0 2,310 0
Provision for severance payment 3,411 0 0 0

and crediting:
Bad debts recovered 427 183 0 0
Dividends (gross) from:
- Quoted subsidiary in Malaysia 0 0 28,466 47,028
- Unquoted subsidiaries in Malaysia 0 0 192,180 2,500
- Quoted associate in Malaysia 0 0 706 847
- Unquoted associates in Malaysia 0 46 27,500 0
Interest income:
- Subsidiaries 0 0 2,374 8,879
- Others 16,723 20,525 6,586 8,246
Profit on disposal of property, plant and equipment 1,210 13 0 0
Foreign exchange gain 1,717 1,305 0 0
Rental income 1,634 825 0 0
Negative goodwill recognised 0 58 0 0
Reversal of impairment loss
- marketable securities 1,484 0 1,484 0
- investment in associate 37,161 0 6,506 0
- inventories 55 0 0 0
Reversal of amortization of investment
in an associate 6,332 0 0 0

6. Profit from operations (continued)
Direct operating expenses from investment properties that generated rental income of the Group during the
financial year amounted to approximately RM89,412,000 (2006: RM49,830,000).
Direct operating expenses from investment properties that did not generate rental income of the Group during
the financial year amounted to nil (2006: nil).
7. Directors’ remuneration
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
Fees:
- Directors of the Company 240 192 240 192
- Directors of subsidiaries 140 140 0 0
Other emoluments:
- Directors of the Company 2,647 2,349 2,647 2,349
- Directors of subsidiaries 1,869 2,579 0 0
Defined contribution plan 472 523 289 261
Benefits-in-kind 367 108 203 53

5,735 5,891 3,379 2,855
The Directors’ remuneration has been included in staff cost as disclosed in note 6.
Executive Directors of the Company have been granted options under the Employees’ Share Options Scheme on
the same terms and conditions as those offered to other employees of the Group (note 12(d)) as follows:
Number of ordinary shares of RM0.50 each

Exercise At 1 At 31
Grant Expiry price January Granted Exercised Lapsed December
date date RM/share ‘000 ‘000 ‘000 ‘000 ‘000

2007
15.8.2003 24.6.2008 0.93 1,000 0 (1,000) 0 0

Total 1,000 0 (1,000) 0 0

2006
15.8.2003 24.6.2008 0.93 1,000 0 0 0 1,000

Total 1,000 0 0 0 1,000

Details relating to options exercised during the financial year are as follows:

Fair value of
shares at share
issue date Exercise price Number of shares
Exercise date RM/share RM/share 2007 2006
‘000 ‘000

31.1.2007 – 7.2.2007 2.27 to 2.29 0.93 1,000 0

7. Directors’ remuneration (continued)

2007 2006
RM’000 RM’000

Ordinary share capital – at par 500 0
Share premium 430 0

Proceeds received on exercise of share options 930 0

Fair value 2,280 0
8. Finance cost
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Interest expense on borrowings 38,896 38,812 4,554 3,108
Accretion of discount on bonds 1,254 1,254 0 0
Other financing costs 1,741 3,201 0 0

41,891 43,267 4,554 3,108

9. Tax expense
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
Current tax:
- Malaysian tax 63,516 65,486 69,396 16,002
- foreign tax 40 52 0 0
Deferred tax (note 16) (7,086) (8,177) 0 0

56,470 57,361 69,396 16,002
Current tax
Current financial year 67,194 67,067 69,818 16,078
Over accrual in prior financial years (3,638) (1,529) (422) (76)

Deferred tax
Origination and reversal of temporary differences (1,216) (5,385) 0 0
Change in tax rate (5,870) (2,792) 0 0

56,470 57,361 69,396 16,002


9. Tax expense (continued)
The explanation of the relationship between tax expense and profit before tax is as follows:
Group Company
2007 2006 2007 2006
% % % %
Numerical reconciliation between the average
effective tax rate and the Malaysian income tax rate

Malaysian income tax rate 27 28 27 28

- Tax effects of :
- share of results of jointly controlled
operations and associates (5) (9) 0 0
- expenses not deductible for tax purposes 21 20 1 61
- income not subject to tax (11) (7) (4) (13)
- current financial year’s tax loss not recognised 1 1 0 0
- previously unrecognised tax losses (1) (2) 0 0
- tax incentives (2) (1) 0 0
- overaccrual in prior financial years (2) (2) 0 0

Average effective tax rate 28 28 24 76
Tax savings of the Group during the financial year due to the recognition of previously unrecognised tax losses
amounted to RM1,275,291 (2006: RM5,066,714).
10. Earnings per ordinary share
(a) Basic earnings per ordinary share
Basic earnings per ordinary share of the Group is calculated by dividing the profit attributable to equity
holders of the Company for the financial year by the weighted average number of ordinary shares in issue
during the financial year, excluding ordinary shares purchased by the Company and held as treasury shares
(note 12(b)) and assuming the ICPS 2002/2007 have been converted into ordinary shares (note 12(c)).
2007 2006

Profit attributable to the equity holders of the Company (RM’000) 136,851 135,915
ICPS 2002/2007 dividends (RM’000) 0 (219)
Profit adjusted for ICPS 2002/2007 dividend (RM‘000) 136,851 135,696

Weighted average number of ordinary shares in issue (‘000) 1,477,106 1,450,578

Basic earnings per ordinary share (sen) 9.26 9.35


10. Earnings per ordinary share (continued)
(b) Diluted earnings per ordinary share
In the diluted earnings per ordinary share calculation, a calculation is done in respect of share options to
determine the number of ordinary shares that could have been acquired at market price (determined as the
average annual share price of the Company’s share) based on the monetary value of the conversion rights
attached to share options. This calculation serves to determine the ‘bonus’ element to the ordinary shares
outstanding for the purpose of computing the dilution. No adjustment is made to profit for the financial year
for the share options calculation.
2007 2006

Profit for the financial year adjusted for ICPS 2002/2007
dividends( RM’000) 136,851 136,696

Weighted average number of ordinary shares in issue (‘000) 1,477,106 1,450,578
Adjustments for share options (‘000) 1,465 1,355
Weighted average number of ordinary shares for diluted
earnings per ordinary share (‘000) 1,478,571 1,451,933

Diluted earnings per ordinary share (sen) 9.25 9.34

11. Dividends
Dividends paid, declared or proposed since the end of the previous financial year are as follows:
Group and Company

2007 2006
Gross Amount of Gross Amount of
dividend dividend, dividend dividend,
per share net of tax per share net of tax
Sen RM’000 Sen RM‘000
Ordinary shares
Paid final dividend 5.0% tax exempt for
financial year 2006 (2006: final dividend of
2.5% less tax at and 2.5% tax exempt for
financial year 2005) 2.50 37,168 2.50 31,102

ICPS 2002/2007
Paid final dividend of 1% less tax for financial
year 2006 (2006 : 1% less tax for financial
year 2005) 1.00 195 1.00 219
Dividend per share recognised as

distribution to ordinary equity holders
of the Company 2.50 37,168 2.50 31,102
In respect of the financial year ended 31 December 2007, an interim dividend of 2.5% less tax and 2.5% tax
exempt amounting to RM32,208,000 was declared on 28 February 2008 and will be paid on 23 May 2008.

12. Share capital

Group and Company
2007 2006
RM’000 RM‘000
Ordinary shares of RM0.50 each:
Authorised
At 1 January/31 December 1,000,000 1,000,000

1% Irredeemable Convertible Preference Shares of RM1.00 each:
Authorised
At 1 January/31 December 200,000 200,000
(a) Ordinary shares of RM0.50 each (‘IGB Shares’)
During the financial year, the Company’s issued and fully paid-up share capital was increased from
RM732,523,126 to RM744,862,004 by way of the following issue of shares:
Issue of shares No. of Nominal

shares value
‘000 RM’000

Exercise of ICPS 2002/2007 21,255 10,627
Exercise of ESOS (exercise prices RM0.93 – RM1.05) 3,423 1,712

24,678 12,339
The newly issued shares rank pari passu in all respects with the existing issued shares of the Company
except that they are not entitled to any dividends, rights, allotments and/or other distributions unless the
allotment of the new IGB Shares is made on or prior to the entitlement date of such dividends, rights,
allotments and/or other distributions.
(b) Treasury shares
In the current financial year, shareholders of the Company, by an ordinary resolution passed at the Annual
General Meeting on 31 May 2007, renewed the approval of the Company’s plan to purchase its own shares.
The Directors of the Company are committed to enhancing the value of the Company to its shareholders and
believe that the repurchase plan can be applied in the best interest of the Company and its shareholders.
During the financial year, the Company repurchased 6,253,900 of its own shares as follows:
2007 No. of Purchase price Average cost

Monthly shares per share per share Total cost
breakdown purchased RM RM RM
Lowest Highest
June 10,000 2.82 2.82 2.820 28,200

August 5,076,400 2.13 2.49 2.310 11,512,021
November 100,000 2.13 2.13 2.130 213,000
December 1,067,500 2.04 2.35 2.195 2,217,800
Total 6,253,900 2.234 13,971,021
The repurchase transaction was financed by internally generated funds. The shares repurchased are being
held as treasury shares in accordance with Section 67A of the Companies Act, 1965 and carried at historical
cost of repurchase. The Company has the right to reissue these shares at a later date. As treasury shares, the
rights attached as to voting, dividends and participation in other distribution are suspended.

12. Share capital (continued)
(b) Treasury shares (continued)
During the financial year, the Company sold 14,675,100 treasury shares in the open market as follows:
Total
2007 No. of Resale price Average cost consideration
Monthly shares per share per share received
breakdown sold RM RM RM
Lowest Highest
January 1,700,000 2.27 2.28 2.275 3,861,505

February 4,750,000 2.28 2.39 2.335 11,088,512
March 1,417,500 2.46 2.53 2.495 3,530,477
April 3,107,600 2.62 2.86 2.740 8,541,043
May 3,700,000 2.89 3.18 3.035 11,106,000
Total 14,675,100 2.598 38,127,537
At 31 December 2007, a total of 8,908,600 ordinary shares were held as treasury shares.
As at the balance sheet date, the number of outstanding shares in issue after setting off treasury shares
against equity is 1,480,815,407.
(c) 1% Irredeemable Convertible Preference Shares of RM1.00 each (‘ICPS 2002/2007’)
The salient terms of the ICPS 2002/2007 are as follows:
(i) The ICPS 2002/2007 shall be irredeemable;
(ii) The holders of the ICPS 2002/2007 shall have the right to receive to the extent that there is sufficient
profit for the financial year available for distribution for the relevant financial year including retained
earnings and distributable reserves brought forward as determined by the Directors and in priority to
any payment in respect of any other class of shares in the capital of the Company a fixed cumulative
preferential dividend at the rate of one per cent per annum (less any tax liability) and such preferential
dividend to be payable annually in arrears not later than six months from the relevant financial year
end;
(iii) Each ICPS 2002/2007 holder shall have the right at any time between the hours of 9.00 a.m. and
5.00 p.m. on any Market Day commencing from the 18 April 2002 and expiring on 17 April 2007 to
convert the whole of the nominal value of the ICPS 2002/2007 held by him or such part thereof as he
may specify in the Notice of Conversion into ordinary and fully paid-up IGB Shares at the conversion
price of RM1.33 per ordinary IGB Share; and
(iv) During the financial year, the Company’s outstanding ICPS 2002/2007 of RM28,339,683 were fully
converted to ordinary shares:
No of Nominal
shares value
‘000 RM‘000

Conversion of ICPS 2002/2007 28,340 28,340

(d) IGB Group Employee Share Option Scheme (‘ESOS’)
On 15 August 2003 and 10 June 2004, the Company granted 40,742,000 and 2,406,000 new ESOS to
eligible employees at an exercise price of RM0.93 per share and RM1.05 per share respectively.
The salient features of the ESOS are as follows:
(i) The eligibility for participation in the ESOS shall be at the discretion of the ESOS Committee, appointed
by the Board of Directors;
(ii) The total number of IGB Shares to be offered under the ESOS shall not exceed 10% of the total issued
and paid-up share capital of the Company at any point of time during the existence of the ESOS which
shall be in force for a period of five years expiring on 24 June 2008;
(iii) The number of shares under options or option price or both so far as the options remain unexercised
shall be adjusted following any issue of additional shares in the issued share capital of the Company
by way of rights issue, capitalisation of profits or reserves or any sub-division and consolidation of the
Company’s shares;
(iv) The option price at which the employees are offered to take up shares under the ESOS is the weighted
average market price of the shares of the Company as quoted in the Daily Official List issued by
Bursa Securities for the five market days preceding the respective dates of offer of the options with an
allowance for a discount of not more than 10% therefrom at the ESOS Committee’s discretion or the
par value of the shares of the Company of RM0.50, whichever is higher; and
(v) The persons to whom the options have been granted have no right to participate by virtue of the
options in any share issue of any other company.
The movements in the number of options over the shares of the Company during the financial year are as
follows:
No. of shares
Exercise At 1 At 31
price January Granted Exercised Lapsed December
Grant date Expiry date RM/share ‘000 ‘000 ‘000 ‘000 ‘000

2007
15.8.2003 24.6.2008 0.93 3,700 0 (2,953) (46) 701
10.6.2004 24.6.2008 1.05 630 0 (470) (95) 65

Total 4,330 0 (3,423) (141) 766
2006
15.8.2003 24.6.2008 0.93 4,869 0 (1,127) (48) 3,694
10.6.2004 24.6.2008 1.05 903 0 (221) (52) 630

Total 5,772 0 (1,348) (100) 4,324

(d) IGB Group Employee Share Option Scheme (‘ESOS’) (continued)
Details relating to options exercised during the financial year are as follows:
No. of shares issued

Exercise date Fair value of shares Exercise
at share issue date price 2007 2006
RM/share RM/share ‘000 ‘000

31.1.07 – 7.2.07 2.27 to 2.29 0.93 1,708 0
31.1.07 – 7.2.07 2.27 to 2.29 1.05 407 0
30.4.07 – 8.5.07 2.85 to 3.12 0.93 940 0
30.4.07 – 8.5.07 2.85 to 3.12 1.05 27 0
31.7.07 – 6.8.07 2.34 to 2.67 0.93 77 0
31.7.07 – 6.8.07 2.34 to 2.67 1.05 16 0
31.10.07 – 6.11.07 2.46 to 2.58 0.93 228 0
31.10.07 – 6.11.07 2.46 to 2.58 1.05 20 0
2.5.06 – 8.5.06 1.45 to 1.49 0.93 0 858
2.5.06 – 8.5.06 1.45 to 1.49 1.05 0 76
31.7.06 – 4.8.06 1.31 to 1.36 0.93 0 137
31.7.06 – 4.8.06 1.31 to 1.36 1.05 0 108
31.10.06 – 6.11.06 1.50 to 1.63 0.93 0 132
31.10.06 – 6.11.06 1.50 to 1.63 1.05 0 37

3,423 1,348
2007 2006
RM’000 RM’000

Ordinary share capital – at par 1,712 674
Share premium 1,528 607
Proceeds received on exercise of share options 3,240 1,281

Fair value at exercise date of shares issued 8,567 1,966


13. Revaluation and other reserves
Group
The revaluation and other reserves comprise:
Capital
Share of distribution in Capitalisation
Surplus on revaluation -specie of Exchange of revenue Goodwill Capital
revaluation of reserves in KrisAssets fluctuation reserves in arising on redemption
properties an associate shares reserve an associate consolidation reserve Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2007
At 1 January 81,266 29,258 183,019 15,893 686 (70,803) 200 239,519
Surplus on revaluation
of property, plant and
equipment, net of tax 4,359 39,357 0 0 0 0 0 43,716
differences arising
in the financial year 0 0 0 (17,208) 0 0 0 (17,208)
Liquidation of a
foreign subsidiary 0 0 0 0 0 1,072 0 1,072
Depreciation of
revaluation surplus
on property, plant
and equipment (742) (167) 0 0 0 0 0 (909)
redemption reserve
by a subsidiary 0 0 0 0 0 0 43 43
At 31 December 84,883 68,448 183,019 (1,315) 686 (69,731) 243 266,233
2006
At 1 January 90,726 29,258 183,019 15,179 686 (70,803) 0 248,065
Deficit on revaluation
of property, plant
and equipment,
net of tax (8,718) 0 0 0 0 0 0 (8,718)
differences arising in
the financial year 0 0 0 714 0 0 0 714
Depreciation of
revaluation surplus
on property, plant
and equipment (742) 0 0 0 0 0 0 (742)
redemption reserve
in a subsidiary 0 0 0 0 0 0 200 200
At 31 December 81,266 29,258 183,019 15,893 686 (70,803) 200 239,519
14. Retained earnings
Subject to agreement by the Inland Revenue Board, the Company has sufficient tax credits under Section 108
of the Income Tax Act, 1967 to frank the payment of net dividends of approximately RM315,433,000 (2006:
RM115,412,000) out of its retained earnings of RM1,350,793,000 (2006: RM1,171,769,000) as at 31 December
2007 without incurring any additional tax liabilities. The Company also has tax exempt income as at 31 December
2007 amounting to RM43,103,000 (2006: RM80,271,000) available for distribution as tax exempt dividends to
shareholders.

15. Borrowings
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
Current
Unsecured
Term loans 119,988 34,326 0 0
Revolving credits 139,500 40,000 100,000 0
Bank overdrafts 1,149 0 1,149 0
Secured
Term loans 31,500 15,000 0 0
Redeemable secured bonds 40,000 40,000 0 0

332,137 129,326 101,149 0
Non-current
Unsecured
Term loans 9,115 29,841 0 0
Secured
Term loans 50,000 50,000 50,000 50,000
Redeemable secured bonds 290,000 330,000 0 0
Bank guaranteed bonds 196,268 195,013 0 0

545,383 604,854 50,000 50,000
Total repayable 877,520 734,180 151,149 50,000
Currency exposure profile of borrowings is as follows:

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

- US Dollar 11,103 14,667 0 0
- Ringgit Malaysia 866,417 719,513 151,149 50,000
877,520 734,180 151,149 50,000
The revolving credits, term loans, redeemable secured bonds, bank guaranteed bonds and bank overdrafts of the
Group and Company are secured by way of fixed registered charges over certain property, plant and equipment,
land held for property development, investment properties and long term prepaid lease with market value of not
less than the facility amount of the Group as disclosed in notes 17, 18, 19 and 20.
In September 2004, a subsidiary, Mid Valley Capital Sdn Bhd issued 2 classes of RM400 million nominal value
redeemable secured bonds (‘Bonds’). Class 1 Bonds comprises 6 series with issue amount of up to RM285
million and Class 2 Bonds comprises 4 series with issue amount of up to RM115 million.
The Bonds are secured as follows:
a) Legal assignment of all cashflows, tenancy agreements and insurance policies in relation to the Mid Valley
Megamall; and
b) Third party first rank fixed and floating charge over the Mid Valley Megamall (note 19) and by way of
debenture over assets, undertakings and paid-up capital of Mid Valley City Sdn Bhd and Mid Valley Capital
Sdn Bhd; and
c) Power of Attorney granted in favour of the trustee for the Bonds for the sale of Mid Valley Megamall.

15. Borrowings (continued)
In December 2005, a subsidiary, KrisAssets Holdings Berhad issued RM200 million nominal value 7-year
AAA-rated bank guaranteed bonds (‘BG Bonds’) with detachable provisional rights to allot 110,134,166 5-year
warrants of Kris.
The BG Bonds are secured as follows:
a) Third party third legal charge over Mid Valley Megamall (note 19);
b) Third ranking legal assignment created by Mid Valley City Sdn Bhd over all its insurance policies; and
c) Debenture to create a third-ranking fixed and floating charge over all of Mid Valley City Sdn Bhd’s assets
and undertakings, both present and future.
Group Company
2007 2006 2007 2006
% per % per % per R% per
annum annum annum annum
Weighted average effective finance
rates at balance sheet date:
Bank overdrafts 7.50 0 7.50 0
Revolving credits 4.42 4.95 4.36 0
Term loans 5.00 6.09 5.80 5.80
Redeemable secured bonds 5.80 5.80 0 0
Bank guaranteed bonds 4.00 4.00 0 0

Group borrowings: maturity and exposure to finance rate risk

Later than Later than
1 year and 2 years and
not later not later Later
Not later than 2 than 5 than 5
1 year years years years Total
Group RM’000 RM’000 RM’000 RM’000 RM’000

At 31 December 2007
Fixed finance rate:
- Term loans 118,000 50,000 0 0 168,000
- Redeemable secured bonds 40,000 40,000 150,000 100,000 330,000
- Bank guaranteed bonds 0 0 196,268 0 196,268
158,000 90,000 346,268 100,000 694,268

Floating finance rate:
- Term loans 1,988 2,650 6,465 0 11,103
- Revolving credits 171,000 0 0 0 171,000
- Bank overdrafts 1,149 0 0 0 1,149
174,137 2,650 6,465 0 183,252

332,137 92,650 352,733 100,000 877,520



Group RM’000 RM’000 RM’000 RM’000 RM’000
At 31 December 2006
Fixed finance rate:
- Term loans 31,500 18,000 50,000 0 99,500
- Redeemable secured bonds 40,000 40,000 140,000 150,000 370,000
- Bank guaranteed bonds 0 0 0 195,013 195,013

71,500 58,000 190,000 345,013 664,513

- Term loans 17,826 2,120 9,721 0 29,667
- Revolving credits 40,000 0 0 0 40,000

57,826 2,120 9,721 0 69,667
129,326 60,120 199,721 345,013 734,180

Company borrowings: maturity and exposure to finance rate risk

Company RM’000 RM’000 RM’000 RM’000 RM’000
At 31 December 2007
Fixed finance rate:
- Term loan 0 50,000 0 0 50,000
- Revolving credit 100,000 0 0 0 100,000
- Bank overdraft 1,149 0 0 0 1,149
101,149 50,000 0 0 151,149

At 31 December 2006
Fixed finance rate:
- Term loan 0 0 50,000 0 50,000

0 0 50,000 0 50,000

Estimated fair values
The carrying amounts of bank overdrafts, revolving credits and term loans with floating finance rates and the
carrying amount of the borrowings due within one year approximated their fair values at balance sheet date. The
fair values of other borrowings with fixed finance rate and borrowings due after one year are as follows:


Group
2007 2006
Carrying Fair Carrying Fair
amount value amount value
RM’000 RM’000 RM‘000 RM‘000

Term loans 50,000 49,867 68,000 67,121
Redeemable secured bonds 290,000 308,030 330,000 353,000

Bank guaranteed bonds 196,268 192,450 195,013 192,000

536,268 550,347 593,013 612,121
Company
2007 2006
Carrying Fair Carrying Fair
amount value amount value
RM’000 RM’000 RM‘000 RM‘000

Term loan 50,000 49,867 50,000 49,435
16. Deferred taxation
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 taxes relate to the same tax authority. The following amounts,
determined after appropriate offsetting, are shown in the balance sheet:
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Deferred tax assets 3,674 2,310 520 520
Deferred tax liabilities:
- subject to income tax (73,102) (78,804) 0 0
- subject to real property gains tax (20,255) (20,275) 0 0

(93,357) (99,079) 0 0
At 31 December (89,683) (96,769) 520 520
Group Company
2007 2006 2007 2006
Note RM ‘000 RM ‘000 RM ‘000 RM ‘000
At 1 January (96,769) (103,954) 520 520

Credited/(charged) to income statement: 9
- property, plant and equipment 10,967 1,299 0 0
- property development costs 1,934 2,002 0 0
- tax losses (7,157) 4,500 0 0
- others 1,342 376 0 0

7,086 8,177 0 0
Charged to equity:
- revaluation of property,
plant and equipment 0 (992) 0 0
At 31 December (89,683) (96,769) 520 520


16. Deferred taxation (continued)

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
Subject to income tax
Deferred tax assets (before offsetting)
- Property, plant & equipment 522 0 0 0
- Tax losses 1,344 8,501 0 0
- Others 2,207 865 600 600
4,073 9,366 600 600

Offsetting (399) (7,056) (80) (80)
Deferred tax assets (after offsetting) 3,674 2,310 520 520
Deferred tax liabilities (before offsetting)

- Property, plant and equipment (52,033) (62,458) 80 80
- Property development costs (20,478) (22,412) 0 0
- Land held for property development (990) (990) 0 0

(73,501) (85,860) 80 80
Offsetting 399 7,056 (80) (80)

Deferred tax liabilities (after offsetting) (73,102) (78,804) 0 0

Subject to capital gains tax
Deferred tax liabilities
- Property, plant and equipment (19,330) (19,350) 0 0
- Others (925) (925) 0 0

(20,255) (20,275) 0 0

The amount of deductible temporary differences and unused tax losses (both of which have no expiry date) for
which no deferred tax assets are recognised in the balance sheets are as follows:
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Deductible temporary differences 680 801 0 0
Tax losses 62,810 62,704 0 0
No deferred tax assets are recognised in respect of the above deductible temporary differences and unused tax
losses as it is not probable that taxable profit will be available against which the deductible temporary differences
and unused tax losses can be utilised.
82
17. Property, plant and equipment
Group Hotel properties

Office
furniture, Capital
Freehold Freehold Hotel Plant and Motor fittings and work in
land land buildings Buildings machinery vehicles equipment progress Total
2007 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January
At cost 40,131 71,372 289,201 60,468 65,546 6,578 98,447 627,301 1,259,044
At valuation 18,200 15,500 0 0 0 0 0 0 33,700
Additions 0 0 4,627 140 10,794 955 30,816 375,379 422,711

Currency translation differences 0 0 0 (2,460) (1,190) (17) (243) 0 (3,910)
Reclassification of account 0 1,705 (32,533) (1,360) 6,513 0 25,444 231 0
Reclassification to investment
properties 0 0 0 0 0 0 0 (543,750) (543,750)
Reclassification to real property
assets (30,056) 0 0 0 0 0 0 (9,110) (39,166)
Write off 0 0 0 0 (7) (20) (22,978) 0 (23,005)

Disposals 0 0 0 0 (29) (358) (551) 0 (938)
At 31 December 28,275 88,577 261,295 56,788 81,627 7,138 130,935 450,051 1,104,686

Accumulated depreciation
At 1 January 0 0 6,605 12,963 34,139 4,000 64,091 0 121,798
Charge for the financial year 0 0 5,780 1,115 6,938 851 15,034 0 29,718
Currency translation differences 0 0 0 (900) (327) (17) (118) 0 (1,362)
Reclassification of account 0 0 (2,366) (4,953) 1,819 0 5,500 0 0
Write off 0 0 0 0 (7) (20) (21,304) 0 (21,331)
Disposals 0 0 0 0 (24) (156) (473) 0 (653)
At 31 December 0 0 10,019 8,225 42,538 4,658 62,730 0 128,170

Accumulated impairment losses
At 1 January 0 0 6,000 14,000 0 0 0 0 20,000
Charge for the financial year 0 0 0 7,020 0 0 0 0 7,020
At 31 December 0 0 6,000 21,020 0 0 0 0 27,020

Net book value
At 31 December 2007
At cost 10,075 88,577 245,276 27,543 39,089 2,480 68,205 450,051 931,296
At valuation 18,200 0 0 0 0 0 0 0 18,200

28,275 88,577 245,276 27,543 39,089 2,480 68,205 450,051 949,496
17. Property, plant and equipment (continued)
Group Hotel properties
Short Long Office
term term furniture, Capital Restated
Freehold leasehold leasehold Freehold Hotel Plant and Motor fittings and work in
land land land land buildings Buildings machinery vehicles equipment progress Total
2006 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January
At cost 149,404 7,348 116,873 71,372 136,562 616,435 212,014 5,832 82,893 307,817 1,706,550
At valuation 26,999 0 0 16,133 151,294 0 0 0 0 0 194,426
Additions 0 0 0 0 903 1,006 2,509 802 16,143 306,307 327,670
(Deficit)/surplus on
revaluation of property (8,798) 0 0 (633) 442 0 0 0 0 0 (8,989)
Currency translation differences 0 (480) 0 0 0 (2,762) (1,336) (19) (269) 0 (4,866)
Reclassification of account 0 0 0 0 0 (16,583) 1,674 0 0 14,909 0
Transfer to non-current assets
held for sale (1,339) 0 0 0 0 0 0 0 0 (1,732) (3,071)
Reclassification to long
term prepaid lease 0 (6,868) (116,873) 0 0 0 0 0 0 0 (123,741)
properties (107,935) 0 0 0 0 (537,628) (149,312) 0 0 0 (794,875)

Write off 0 0 0 0 0 0 0 (13) (131) 0 (144)
Disposals 0 0 0 0 0 0 (3) (24) (189) 0 (216)

At 31 December 58,331 0 0 86,872 289,201 60,468 65,546 6,578 98,447 627,301 1,292,744
At 1 January 0 1,714 3,011 0 0 75,954 129,027 3,129 55,961 0 268,796
Charge for the financial year 0 514 229 0 7,868 804 3,998 921 8,516 0 22,850
Currency translation differences 0 0 (112) 0 0 (931) (309) (18) (132) 0 (1,502)
Adjustment on revaluation surplus 0 0 0 0 (1,263) 0 0 0 0 0 (1,263)
Reclassification to long term
prepaid lease 0 (2,228) (3,128) 0 0 0 0 0 0 0 (5,356)
properties 0 0 0 0 0 (62,864) (98,576) 0 0 0 (161,440)
Write off 0 0 0 0 0 0 0 (12) (82) 0 (94)
Disposals 0 0 0 0 0 0 (1) (20) (172) 0 (193)
At 31 December 0 0 0 0 6,605 12,963 34,139 4,000 64,091 0 121,798

Accumulated impairment losses

At 1 January 0 0 0 0 6,000 7,000 0 0 0 0 13,000
Charge for the financial year 0 0 0 0 0 7,000 0 0 0 0 7,000
At 31 December 0 0 0 0 6,000 14,000 0 0 0 0 20,000
Net book value

At 31 December 2006
At cost 40,130 0 0 0 78,341 33,505 31,407 2,578 34,356 627,301 847,618
At valuation 18,201 0 0 86,872 198,255 0 0 0 0 0 303,328
Annual Report 2007

58,331 0 0 86,872 276,596 33,505 31,407 2,578 34,356 627,301 1,150,946
83


Office
furniture,
Company Plant and Motor fittings and
Buildings machinery vehicles equipment Total
2007 RM’000 RM’000 RM’000 RM’000 RM’000
At cost
At 1 January 1,932 5,621 1,377 4,130 13,060
Additions 0 0 650 1,678 2,328
Write off 0 0 0 (635) (635)

At 31 December 1,932 5,621 2,027 5,173 14,753

At 1 January 424 5,515 735 3,122 9,796
Charge for the financial year 39 65 278 609 991
Write off 0 0 0 (635) (635)
At 31 December 463 5,580 1,013 3,096 10,152

Net book value
At 31 December 2007 1,469 41 1,014 2,077 4,601

2006
At cost
At 1 January 1,932 5,621 986 3,791 12,330
Additions 0 0 391 339 730
At 31 December 1,932 5,621 1,377 4,130 13,060

At 1 January 386 5,450 569 2,812 9,217
Charge for the financial year 38 65 166 310 579
At 31 December 424 5,515 735 3,122 9,796
Net book value

At 31 December 2006 1,508 106 642 1,008 3,264
(a) Freehold land
A freehold land of a subsidiary was stated at valuation on 8 August 1996 by the Directors based on
valuations carried out by independent professional valuers on a fair market value basis. The Directors
applied the transitional provisions of International Accounting Standard (‘IAS’) No. 16 (Revised) Property,
Plant and Equipment as adopted by the Malaysian Accounting Standards Board which allows these assets
to be stated at their 1996 valuation. Accordingly, these assets have been stated at their existing carrying
amounts less accumulated depreciation and impairment losses.
During the financial year ended 31 December 2006, a valuation was carried out by an independent
qualified valuer, Elvin Fernandez, a member of the Institute of Surveyors, Malaysia, and a partner with
Khong & Jaafar Sdn Bhd, based on market value. Based on this valuation, the value of the freehold land is
RM18,200,000 as compared to its carrying value of RM26,998,000. The deficit of RM8,798,000 had been
accounted for by reversing previous revaluation surplus of RM8,798,000 for the same asset.

(b) Hotel properties
In accordance with the Group’s accounting policy on property, plant and equipment, hotel properties (land
and building) are revalued once every 5 years by external independent valuers. The following were the
valuations performed on hotel properties in previous financial years:
Freehold land
The freehold land of hotel properties of a subsidiary stated at valuation was revalued during the financial
year ended 31 December 2006 by an independent qualified valuer, Elvin Fernandez, a member of the
Institute of Surveyors, Malaysia, and a partner with Khong & Jaafar Sdn Bhd, based on market value.
Based on this valuation, the value of the freehold land is RM15,500,000 as compared to its carrying value
of RM16,133,000. The deficit of RM633,000 has been accounted for by reversing previous revaluation
surplus for the same asset.
Hotel building
(i) An impairment loss of RM7,020,000 (2006: RM7,000,000) is recognised in the income statement
during the financial year in respect of a hotel building in a foreign country, which is impaired. The
amount was derived based on the shortfall between value in use and the net book value of the hotel
building. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset.
(ii) The hotel building of a subsidiary stated at valuation was revalued during the financial year ended 31
December 2006 by an independent qualified valuer, Elvin Fernandez, a member of the Institute of
Surveyors, Malaysia and a partner with Khong & Jaafar Sdn Bhd based on market value.
Base on this valuation, the value of the hotel building was RM50,000,000, as compared to the carrying
value of RM48,295,000. The resultant surplus of RM1,705,000 had been credited to revaluation reserve
and adjusted to the hotel building by eliminating the accumulated depreciation of RM1,263,000.
(iii) A hotel building was revalued on during the financial year ended 31 December 2005 by an independent
qualified valuer, Mr Subramaniam A/L Arumugam, a registered valuer of Colliers, Jordan Lee & Jaafar
Sdn Bhd using the comparison method to reflect the market value of the hotel building. The profits
method was used to counter check the comparison method.
Based on this valuation, the value of the hotel building was RM103,000,000, as compared to its
carrying value of RM32,236,000. The resultant surplus of RM70,764,000 had been credited to
revaluation surplus.
(iv) During the financial year ended 31 December 2005, the Group had written down the carrying
value of a hotel building from RM35,000,000 to RM29,000,000 based on an indicative offer from a
potential buyer. The shortfall of RM6,000,000 had been accounted as impairment loss in the income
statement.

(b) Hotel properties (continued)

Group
2007 2006
RM’000 RM’000
Net book value of revalued property, plant and equipment had
these assets been carried at cost less accumulated depreciation:
- freehold land 1,040 1,040
- hotel properties:
- land 24,462 24,462
- buildings 119,185 133,485

144,687 158,987

Net book value of asset pledged as security for borrowings (note 15):
- long term leasehold land 0 98,459
- hotel properties 65,500 65,500
65,500 163,959
The long-term leasehold land that was pledged as security for borrowings has been reclassified to leasehold
land (note 20) in accordance with FRS 117.
18. Property development activities
(a) Land held for property development
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Land 129,666 129,666 6,345 6,345
Development costs 93,462 93,584 58 45

223,128 223,250 6,403 6,390
Add: Cost incurred during the financial year
- Land 13,698 0 0 0
- Development costs 814 167 149 13
Add: Transfer from property, plant
and equipment
- Land 30,056 0 0 0
- Development costs 9,110 0 0 0

276,806 223,417 6,552 6,403
Less: Development costs written off 0 (289) 0 0
Less: Accumulated impairment losses (11,595) (10,795) 0 0

265,211 212,333 6,552 6,403


18. Property development activities (continued)

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Land 186,383 168,128 9,444 9,444
Development costs 181,665 586,252 69,988 34,677

368,048 754,380 79,432 44,121
Add: Cost incurred during the financial year
- Land cost 40 38,548 0 0
- Development costs 135,976 139,822 64,295 35,311

504,064 932,750 143,727 79,432
Less: Cost recognised as an expense
in income statement
- Previous financial years (180,491) (448,882) (58,704) (22,343)
- Current financial year (175,229) (261,908) (80,011) (36,361)
148,344 221,960 5,012 20,728

Transfer to inventories 0 (30,172) 0 0
148,344 191,788 5,012 20,728

None of the land held for property development and property development costs of the Group (2006:
RM25,960,000) have been charged as security for certain term loan and bank overdraft facilities.
Included in the Group’s property development costs incurred during the financial year is interest capitalised
of RM1,364,000 (2006: RM3,072,000).
19. Investment properties
Group Freehold Plant and

land Buildings machinery Total
RM’000 RM’000 RM’000 RM’000
2007
At cost
At 1 January 107,935 537,628 149,312 794,875
Reclassification from property, plant
and equipment 0 490,731 53,019 543,750
Additions 0 75,461 44,968 120,429
At 31 December 107,935 1,103,820 247,299 1,459,054

At 1 January 0 73,850 114,823 188,673
Charge for the financial year 0 14,818 20,466 35,284

At 31 December 0 88,668 135,289 223,957
Net book value 107,935 1,015,152 112,010 1,235,097


19. Investment properties (continued)
Group Freehold Plant and

land Buildings machinery Total
RM’000 RM’000 RM’000 RM’000
2006
At cost
At 1 January/31 December 107,935 537,628 149,312 794,875

At 1 January/31 December (0) (73,850) (114,823) (188,673)

Net carrying value 107,935 463,778 34,489 606,202

The fair value of the investment properties above were estimated at RM2,506,537,000 (2006: RM1,719,500,000)
based on valuations by management. Valuations were based on current prices in an active market for certain
properties and where appropriate, the investment method reflecting receipt of contractual rentals, expected
future market rentals, current market yields, void periods, sinking funds and maintenance requirements and
approximate capitalisation rates is used. The Group uses assumptions that are mainly based on market conditions
existing at each balance sheet date.
Investment properties with net book value RM385,681,000 (2006: RM411,114,000) have been charged as
security for borrowings as disclosed in note 15.
At 31 December 2007, the Group does not have any unprovided contractual obligations for future repairs and
maintenance.
20. Long term prepaid lease

Group
Restated
2007 2006
RM’000 RM’000
At cost
At 1 January 123,741 0
Additions 100,301 0
Reclassification from property, plant and equipment 0 123,741
Foreign exchange difference (428) 0

At 31 December 223,614 123,741

At 1 January 5,356 0
Reclassification from property, plant and equipment 0 5,356
Additions 1,418 0
At 31 December 6,774 5,356

Net book value
At 31 December 216,840 118,385

Long term prepaid lease with net book value of RM97,429,000 (2006: RM98,459,000) has been charged as
security for borrowings as disclosed in note 15.

21. Subsidiaries
Company
2007 2006
RM’000 RM’000
At cost
- Quoted shares 695,793 738,793
- Quoted warrants 4,998 4,998
- Unquoted shares 1,097,981 1,093,981
Less: Accumulated impairment losses (3,754) (3,754)

1,795,018 1,834,018

Market value of quoted shares 767,340 618,823

Market value of quoted warrants 102,476 32,492

Details of subsidiaries are set out in note 42.
22. Associates
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
At cost
- Quoted shares in Malaysia 0 66,239 0 38,841
- Unquoted shares in Malaysia 279,355 282,280 130,242 130,242
- Unquoted shares outside Malaysia 31,395 31,395 0 0

310,750 379,914 130,242 169,083
Group’s share of revaluation surplus 68,615 29,258 0 0
Group’s share of post acquisition
reserves less losses 196,851 208,132 0 0

576,216 617,304 130,242 169,083
Less: Impairment losses (1,482) (44,975) (1,482) (7,988)
574,734 572,329 128,760 161,095
Market value of quoted shares 0 39,821 0 32,335
During the financial year, the Group reversed an impairment loss of RM37,161,000 due to the disposal of a
quoted associate.
An impairment loss of RM6,332,000 was reversed by the Group during the financial year based on the difference
between the carrying amount and the estimated recoverable value of the Group’s investment in an associate.
The Company’s investment in an associate was revalued by the Directors in 1992 on the basis of its underlying
net assets value. In the preceding financial year, this investment was restated back at cost to be consistent with
other investments in associate and in accordance with the Company’s accounting policy. As such, the investment
amounting to RM20,742,000 had been included in unquoted ordinary shares, at cost.

22. Associates (continued)
The Group’s share of revenue, profit, assets and liabilities of associates is as follows:
Group
2007 2006
RM’000 RM’000
Revenue 247,292 251,755

Profit after tax 40,115 55,626
Non-current assets 795,940 799,792

Current assets 289,342 365,248
Current liabilities (303,497) (315,113)
Non-current liabilities (205,569) (232,623)

Net assets 576,216 617,304
Less: Accumulated impairment losses (1,482) (44,975)
574,734 572,329

Details of associates are set out in note 43.
23. Other investments

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
At cost
Unquoted shares
- In Malaysia 11,784 11,784 3,900 3,900
- Outside Malaysia 46,792 46,792 0 0

58,576 58,576 3,900 3,900
Less: Accumulated impairment losses (51,730) (49,821) (1,838) (1,838)

6,846 8,755 2,062 2,062
24. Inventories
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
At cost
Inventories of unsold properties 63,267 84,635 34,235 37,348
Finished goods 617 559 0 0
Hotel operating supplies 724 1,254 0 0

At net realisable value 64,608 86,448 34,235 37,348
Inventories of unsold properties 1,968 935 0 0
66,576 87,383 34,235 37,348


25. Marketable securities

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
At cost
Quoted shares
- In Malaysia 74,036 6,529 61,383 6,529

Less: Accumulated impairment losses (502) (1,986) (502) (1,986)

73,534 4,543 60,881 4,543
Market value
Quoted shares
- In Malaysia 97,346 4,543 80,428 4,543

26. Trade and other receivables

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Trade receivables 79,443 115,545 6,931 26,698
Less: Allowance for doubtful debts (9,325) (4,211) (1,127) (1,127)

70,118 111,334 5,804 25,571
Other receivables 31,293 53,730 14,323 13,560


25,483 47,920 8,513 7,750
Accrued billings 83,447 19,617 51,869 0
Dividend receivable 0 0 1,825 3,348
Sundry deposits 7,214 3,041 817 353
Prepayments 14,325 4,842 0 0
200,587 186,754 68,828 37,022
The currency exposure profile of

trade receivables is as follows:
- US Dollar 541 450 0 0

70,118 111,334 5,804 25,571

Credit terms of trade receivables of the Group and Company range from payment in advance to 45 days (2006:
payment in advance to 45 days).
The Group’s trade receivables consist of amounts owing by purchasers of property development, office and
commercial building tenants and hotel guests. The concentration of credit risk is limited due to the Group’s
diversified business and large number of customers. The Group’s historical experience in collection of trade
receivables falls within the recorded allowances. Due to these factors, management believes that no additional
credit risk beyond amounts allowed for collection losses is inherent in the Group’s trade receivables.

27. Amounts owing by/to subsidiaries

Company
2007 2006
RM’000 RM’000

Amounts owing by subsidiaries 1,003,790 703,597
Less: Allowance for doubtful debts (40,415) (40,415)

963,375 663,182

Amounts owing to subsidiaries 670,781 649,650

The amounts owing by/to subsidiaries represent advances and are unsecured and have no fixed terms of
repayment. The amounts owing by subsidiaries are interest free (2006: interest free) except for an amount of
RM38,606,000 (2006: RM107,948,000), which carries interest at a rate of 3.75% (2006: 5%) per annum. The
amounts owing to subsidiaries are interest free (2006: interest free) except for an amount of RM97,015,000
(2006: nil), which carries interest at a rate of 3.00% (2006: nil) per annum.
28. Amounts owing by/to associates

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Amounts owing by associates 126,410 122,455 98,022 96,656
122,933 118,978 94,545 93,179
Amounts owing to associates 27,582 28,739 0 1,469

The amounts owing by/to associates represent advances, unsecured, interest free (2006: interest free) and have
no fixed terms of repayment.
29. Cash and cash equivalents
Cash and cash equivalents included in the cash flow statements comprised the following balance sheet
amounts:
Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Deposits with licensed banks 335,247 440,512 175,699 139,575
Cash and bank balances 119,136 114,679 18,033 22,276
Bank overdrafts (1,149) 0 (1,149) 0

453,234 555,191 192,583 161,851


29. Cash and cash equivalents (continued)

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000
The currency exposure profile of cash and
cash equivalents is as follows:
- US Dollar 83,973 73,648 82,199 71,816
- Singapore Dollar 3,112 3,118 0 0
- Hong Kong Dollar 34,247 35,130 0 0
- Australian Dollar 3,468 3,355 0 0
453,234 555,191 192,583 161,851
Included in the above is cash and bank balances amounting to RM37,738,000 (2006: RM60,318,000) and
RM17,570,000 (2006: RM10,157,000) for the Group and Company respectively, which are maintained in
designated Housing Development Accounts pursuant to the Housing Developers (Control and Licensing) Act,
1966 and Housing Regulations, 1991 in connection with the property development projects of the Group and
Company.
Deposits with licensed banks of the Group and Company at the balance sheet date both have an average maturity
period of 31 days (2006: 30 days). Bank balances are deposits held at call with banks and earn no interest except
for bank balances which are maintained in designated Housing Development Accounts. The weighted average
interest rate as at the balance sheet date is 2% (2006: 2%).
The weighted average effective interest rates of deposits with licensed banks as at financial year end are as
follows:
Group Company
2007 2006 2007 2006
% per % per % per % per
annum annum annum annum
Deposits with licensed banks
- Ringgit Malaysia 3.34 3.32 3.23 3.32
- US Dollar 4.31 5.03 4.31 5.03
- Singapore Dollar 1.53 2.95 0 0
- Hong Kong Dollar 4.26 4.00 0 0
- Australian Dollar 5.90 4.75 0 0

30. Non-current assets held for sale

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Associate 0 16,928 0 0
Freehold land 0 3,071 0 0

0 19,999 0 0
In the preceding financial year, the Group’s investment in an associate, SuCasa Sdn Bhd had been presented as
held for sale as the Group had entered into an agreement on 30 August 2006 to dispose its entire 40% interest
in SuCasa Sdn Bhd. The disposal was completed on 28 February 2007.
In the preceding financial year, the Group had presented a freehold land as held for sale following a communication
from a local authority for compulsory acquisition on the land. The disposal was completed on 1 March 2007.

31. Trade and other payables

Group Company
2007 2006 2007 2006
RM ‘000 RM ‘000 RM ‘000 RM ‘000

Trade payables 414,151 289,522 16,672 13,248
Accruals 68,964 56,461 4,222 2,089
Other payables 70,898 44,382 3,813 4,061
Tenants’ deposits received 35,033 15,526 1,201 1,140

589,046 405,891 25,908 20,538
The currency exposure profile of trade

payables is as follows:
- US Dollar 10,734 81 0 0
414,151 289,522 16,672 13,248
Credit terms of trade payables vary from no credit to 30 days (2006: no credit to 30 days).
Included in the trade payables of the Group is retention on contract sum of RM40,889,000 (2006:
RM26,044,000).
32. Amount owing by a jointly controlled entity

Group
2007 2006
RM’000 RM’000

Amount owing by a jointly controlled entity 11,937 7,710
Share of profit from a jointly controlled entity 6,271 3,127

18,208 10,837

The Group has a 50% interest in a Malaysian jointly controlled entity, Shimizu-Ensignia Joint Venture, which is
in the construction industry.
The Group’s share of the assets and liabilities of the jointly controlled entity is as follows:
Group
2007 2006
RM’000 RM’000

Current assets 49,627 34,521
Current liabilities (39,264) (28,325)
Net amount due from joint venture partner 7,845 4,641

18,208 10,837


32. Amount owing by a jointly controlled entity (continued)
The Group’s share of revenue and expenses of the jointly controlled entity is as follows:
Group
2007 2006
RM’000 RM’000

Contract revenue 163,514 102,939
Contract costs (160,370) (100,959)
Profit for the financial year 3,144 1,980
In accordance with the provisions of the Malaysian Income Tax Act, 1967, the partners of the joint venture are
taxed individually on their share of profit arising from the joint venture.
33. Segment reporting – Group
The Group is organised on a worldwide basis into four main business segments:
• Property development - development and sale of condominiums, bungalows,

linked houses, shoplots and office suites
• Property investment and management - rental income and service charge from retail and office building
• Hotel - income from hotel operations
• Construction - civil and building construction
Other operations of the Group mainly comprise hospital, medical centre and investment holding; none of which
are of a significant size to be reported separately.
Inter segment revenues comprise construction work for internal projects and office rental on an arms length basis
under terms, conditions and prices not materially different from transactions with unrelated parties.
Property
investment
Property and
development management Hotel Construction Others Group
2007 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue
Total revenue 457,477 258,224 140,535 319,120 48,025 1,223,381
Intersegment revenue (195,443) (5,298) (3,755) (319,120) (25,834) (549,450)
External revenue 262,034 252,926 136,780 0 22,191 673,931

Results
Segment results (external) 52,480 110,641 35,060 0 (1,846) 196,335
Unallocated corporate
expenses (25,493)
Unallocated income 16,723
Profit from operations 187,565

Finance cost (41,891)
Share of results of associates 1,193 258 34,477 0 4,187 40,115
Gain on disposal of associates 15,119 0 3,281 0 0 18,400
Profit before tax 204,189

Tax expense (56,470)
Profit for the financial year 147,719


33. Segment reporting – Group (continued)

Property
investment
Property and
2007 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Other information
Segment assets 721,031 1,968,591 506,399 49,879 57,983 3,303,883
Associates 130,460 19,369 365,529 0 59,375 574,733
Unallocated assets 463,480
Total assets 4,342,096

Segment liabilities 220,738 298,830 17,236 24,629 49,779 611,212
Unallocated liabilities 1,001,899
Total liabilities 1,613,111

Capital expenditure:
- property, plant and
equipment 206,539 40,855 174,393 909 15 422,711
- investment properties 0 120,429 0 0 0 120,429
- leasehold land 0 100,301 0 0 0 100,301

Depreciation:
equipment 1,734 5,102 21,461 1,374 47 29,718
- leasehold land 16 1,301 101 0 0 1,418

Impairment loss:
equipment 0 0 7,020 0 0 7,020
- land held for property
development 800 0 0 0 0 800
2006
Revenue
Total revenue 437,535 214,491 123,534 132,710 69,472 977,742
Intersegment revenue (54,389) (4,825) (2,849) (132,710) (64,008) (258,781)
External revenue 383,146 209,666 120,685 0 5,464 718,961

Results
Segment results (external) 84,207 101,011 12,013 770 (15,627) 182,374
Unallocated corporate Expenses (22,776)
Unallocated income 20,525
Profit from operations 180,123

Finance costs (43,267)
Share of results of associates 28,202 1,624 29,293 1,984 4,069 65,172
Profit before tax 202,028

Tax expense (57,361)
Profit for the financial year 144,667



Property
investment
Property and
2006 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Other information
Segment assets 773,443 1,386,119 529,739 28,090 14,494 2,731,885
Associates 191,243 19,112 302,178 0 59,796 572,329
Unallocated assets 557,500
Total assets 3,861,714

Segment liabilities 227,937 158,029 23,975 12,114 12,375 434,430
Unallocated liabilities 859,202
Total liabilities 1,293,632

Capital expenditure 208,855 95,335 21,010 2,401 69 327,670
Depreciation:
equipment 1,009 4,470 15,867 1,462 42 22,850
Impairment losses:
- marketable securities 1,099 0 0 0 0 1,099
equipment 0 7,000 0 0 0 7,000
- land held for property
development 6,795 0 0 0 0 6,795
- associate 18,544 0 0 0 0 18,544
- other investments 7,055 0 0 0 0 7,055
Unallocated income represents interest income. Segment assets consist primarily of property, plant and equipment,
property development costs, investments, inventories, receivables, marketable securities and operating cash.
Segment liabilities comprise operating liabilities, taxation and deferred taxation.
Capital expenditure comprises additions to property, plant and equipment (note 17).
(b) Secondary reporting format – geographical segments
Although the Group’s business segments are managed on a worldwide basis, they operate in three main
geographical areas:
• Malaysia * - property development, property investment, and management, hotel operation

and construction
• Asia Pacific - mainly hotel and investment holding
• United Kingdom - mainly hotel operation
* Company’s home country



Total Capital
Revenue assets expenditure
RM’000 RM’000 RM’000
2007
Malaysia 668,044 4,070,684 643,422
Asia Pacific 5,887 116,324 19
United Kingdom 0 155,088 0

673,931 4,342,096 643,441

2006
Malaysia 713,460 3,606,101 327,573
Asia Pacific 5,501 115,577 97
United Kingdom 0 140,036 0
718,961 3,861,714 327,670

34. Contingent liabilities

Company
2007 2006
RM’000 RM’000
Corporate guarantees issued for banking facilities granted to
subsidiaries (unsecured) 200,496 111,359

At the date of these financial statements, no additional payments are anticipated.
The Group’s share of contingent liabilities in associate (unsecured) is Nil (2006: RM737,000).
35. Capital commitment
Capital expenditure not provided for in the financial statements is as follows:

Group
2007 2006
RM’000 RM’000
Authorised by Directors and contracted
- Property, plant and equipment 179,676 790,662
- Investment properties 127,164 1,227
306,840 791,889
Authorised by Directors but not contracted
- Property, plant and equipment 16,622 14,538
323,462 806,427

The Group’s share of capital commitment in associates is nil (2006: RM1,268,000).


36. Significant related party disclosures
In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other
significant related party transactions and balances. The related party transactions described below are carried out
on terms and conditions obtainable in transactions with unrelated parties.
Company
2007 2006
RM’000 RM’000
(a) Associates
Repayments from:
- Great Union Properties Sdn Bhd 0 20
- Istaron Limited 15,557 0
(b) Other related parties Relationship

Wah Seong Corporation Berhad A company in which Robert Tan Chung Meng, Pauline Tan
Suat Ming and Tony Tan @ Choon Keat, Directors of the
Company, are substantial shareholders.

Syn Tai Hung Trading Sdn Bhd A subsidiary of Wah Seong Corporation Berhad and related to
Robert Tan Chung Meng, Pauline Tan Suat Ming and Tony Tan
@ Choon Keat, Directors of the Company who are deemed
majority shareholders of the Company via corporations in
which they have no less than 15% shareholding.

Wah Seong (Malaya) Trading Co. Sdn Bhd A company in which Robert Tan Chung Meng, Pauline Tan
Suat Ming and Tony Tan @ Choon Keat, Directors of the
Company, have substantial financial interest.

Cahaya Utara Sdn Bhd An associate of Wah Seong (Malaya) Trading Co. Sdn Bhd.

Strass Media Sdn Bhd A subsidiary of Wah Seong (Malaya) Trading Co. Sdn Bhd.
Group
2007 2006
RM’000 RM’000
Light boxes rental, pedestrian bridge and office rental

- Strass Media Sdn Bhd 1,328 1,553

Management/marketing fee income from:
- Cahaya Utara Sdn Bhd 1,330 1,281

Purchases of building materials from:
- Syn Tai Hung Trading Sdn Bhd 778 11,518

36. Significant related party disclosures (continued)
(c) Remuneration of key management personnel compensation for the financial year is as follows:
Group
2007 2006
RM’000 RM’000

Salaries, bonus and allowance 13,182 10,996
Defined contribution plan 1,343 1,144
Share-based payment 320 33
Other short term benefits 2,025 301

16,870 12,474

37. Changes in Group structure
On 8 January 2007, the Group through its wholly-owned subsidiary, Pacific Land Sdn Bhd acquired 100%
interest in Cititel Hotels Pty Ltd, a dormant company incorporated in Australia, for AUD2.
On 12 February 2007, the Company acquired 100% interest in Pesona KL (M) Sdn Bhd (which subsequently
changed its name to IGB Management Services Sdn Bhd on 21 February 2007), a shelf company, for RM2.
On 5 March 2007, the Group through its wholly-owned subsidiary Tan & Tan Developments Berhad, acquired
the remaining 30.6% equity interest in Tanobi Sdn Bhd for a cash consideration of RM11,000.
On 12 April 2007, the Group through its wholly-owned subsidiary, Pacific Land Sdn Bhd acquired a 100%
interest in Lagenda Sutera (M) Sdn Bhd, a shelf company, for RM2.
On 16 April 2007, the Group placed the following six (6) dormant wholly-owned subsidiaries under members’
voluntary liquidation under Section 254(1) of the Companies Act, 1965: City Beauty Sdn Bhd, IGB Credit
Sdn Bhd, IGB Real Estate Sdn Bhd, Kilat Security Sdn Bhd, Lucravest Holdings Sdn Bhd and Mid Valley Food
Management Sdn Bhd.
On 24 April 2007, the Group through its wholly-owned subsidiary Tan & Tan Developments Berhad, entered
into an agreement to dispose of its entire equity interest in MIHR Sdn Bhd. The disposal was completed on 24
August 2007.
On 24 May 2007, the Company entered into a Shareholders’ Agreement to restructure the equity of its 60%-
owned subsidiary, Technoltic Engineering Sdn Bhd (“Technoltic”), such that upon completion of the equity
restructuring, Technoltic would cease to be a subsidiary and the Company would hold 40% equity in Technoltic.
The equity restructuring was completed on 18 February 2008.
On 6 June 2007, the Company acquired a 100% interest in Salient Glory City Sdn Bhd, a shelf company, for
RM2.

37. Changes in Group structure (continued)
Details of net assets acquired of Tanobi Sdn Bhd are as follows:

Acquiree’s
carrying
value
RM’000
Non current assets 4,200

Current liabilities (4,189)
Fair value of net assets acquired 11

Purchase consideration 11
There is no material impact to the Group from the above acquisitions and disposal.
38. Disposal of subsidiary
During the financial year, the Group disposed off its entire interest in MIHR Sdn Bhd for a cash consideration of
RM2,293,000 as follows:
RM’000

Property, plant and equipment 164
Receivables 152
Amount due from holding company 1,736
Tax recoverable 5
Bank balance 257
Payables (15)
Provision for taxation (6)

2,293
The net cash flow on disposal was determined as follows:

Net proceeds from disposal 2,293
Cash and cash equivalents (257)
Net cash inflow 2,036
39. Non-cash transaction
The principal non-cash transaction during the financial year is the conversion of 28,339,683 ICPS 2002/2007
into 21,254,762 new ordinary shares of RM0.50 each at a conversion price of RM1.33 per ordinary share.

40. Change in Accounting Policy
FRS 117 Leases requires the classification of leasehold land as prepaid lease rental. The adoption of FRS 117
has resulted in a retrospective change in the accounting policy relating to the classification of leasehold land. In
previous financial years, leasehold land held for own use was classified as property, plant and equipment and
was stated at cost or valuation less accumulated depreciation and impairment losses, if any. Leasehold land held
for own use is now classified as operating lease and where necessary, the upfront payments made are allocated
between land and building elements in proportion to the relative fair value for leasehold interest in the land
element and building element.
The upfront payments represent prepaid lease payments and are amortized on a straight line basis over the lease
term. As allowed by the transitional provisions of FRS 117 upon its adoption, the unamortized revalued amount
of leasehold land is retained as the surrogate carrying amount of prepaid lease payments. The reclassification
of leasehold land as prepaid lease payment has been accounted for retrospectively and the comparative figures
have been restated accordingly.
The following balance sheet comparative figures of the Group have been restated due to adoption of FRS117:
As previously Effect of adoption

stated of FRS 117 As restated
RM’000 RM’000 RM’000
Property, plant and equipment 1,269,331 (118,385) 1,150,946

Long term prepaid lease 0 118,385 118,385

41. Significant post balance sheet event
MiCasa Hotel Apartments, owned by TTD Sdn Bhd, a wholly-owned subsidiary of the Group, temporarily ceased
its hotel operations on 1 January 2008 for the purpose of undergoing an extensive upgrading and refurbishment
exercise for a period of approximately eighteen (18) months.
42. Subsidiaries
Group’s interest
Place of (%)
Name of company Principal activities incorporation 2007 2006

Abad Flora Sdn. Bhd. 1 Property Investment Malaysia 100.0 100.0
Amanbest Sdn. Bhd. 2 Property Development Malaysia 51.0 51.0
Amandamai Dua Sdn. Bhd. 3 Property Holding Malaysia 100.0 100.0
Amandamai Satu Sdn. Bhd. 4 Property Development Malaysia 100.0 100.0
Angkasa Gagah Sdn. Bhd. 5 Property Development Malaysia 100.0 100.0
* Asian Equity Limited 6 Investment Holding British Virgin 55.0 55.0
Islands
Atar Deras Sdn. Bhd. 7 Property Development Malaysia 100.0 100.0
* Auspicious Prospects Ltd. 8 Investment Holding Liberia 100.0 100.0
Belimbing Hills Sdn. Bhd. 9 Property Development Malaysia 100.0 100.0
* Beswell Limited 10 Investment Holding Hong Kong 100.0 100.0
Bintang Buana Sdn. Bhd. 11 Property Development Malaysia 90.0 90.0
Central Review (M) Sdn. Bhd. 12 Property Investment, Hotel Malaysia 100.0 100.0
Operations and Management
Cipta Klasik (M) Sdn. Bhd. 13 Property Investment Malaysia 100.0 100.0
Cititel Hotel Management Provision of Hotel Malaysia 60.0 60.0
Sdn. Bhd. Management Services
Cititel Hotels Pty Ltd 14 Investment Holding Australia 100.0 0.0

42. Subsidiaries (continued)

Group’s interest
Place of (%)
City Beauty Sdn. Bhd. 15 Landscaping and Its Malaysia 100.0 100.0
(under members’ voluntary Related Business
liquidation)
Corpool Holdings Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
Danau Bidara (M) Sdn. Bhd. 16 Property Holding Malaysia 100.0 100.0
Dian Rezki Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
Earning Edge Sdn. Bhd. 17 Investment Holding Malaysia 65.0 65.0
Ensignia Construction Sdn. Bhd. Investment Holding and Malaysia 100.0 100.0
Construction
Express Management Consultants Dormant Malaysia 100.0 100.0
Sdn. Bhd. 18
* Grapevine Investments Pte. Ltd. Investment Holding Singapore 100.0 100.0
Harta Villa Sdn. Bhd. 19 Property Development Malaysia 100.0 100.0
ICDC Holdings Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
ICDC Management Sdn. Bhd. 20 Property Management Malaysia 100.0 100.0
IGB Credit Sdn Bhd Dormant Malaysia 100.0 100.0
(under members’ voluntary
liquidation)
IGB Management Services Property Management Malaysia 100.0 0.0
Sdn. Bhd. Services
IGB Project Management Project Management Malaysia 100.0 100.0
Services Sdn. Bhd. Services
IGB Properties Sdn. Bhd. Property Investment and Malaysia 100.0 100.0
Management
IGB Real Estate Sdn. Bhd. 21 Dormant Malaysia 100.0 100.0
liquidation)
Innovation & Concept Property Development Malaysia 100.0 100.0
Development Co. Sdn. Bhd. 22
Intercontinental Aviation Services Investment Holding Malaysia 100.0 100.0
Sdn. Bhd.
Ipoh Garden Shopping Complex Property Holding Malaysia 100.0 100.0
Sdn. Bhd.
IST Building Products Sdn Bhd Trading of Building Materials Malaysia 100.0 100.0
IT&T Engineering & Construction Investment Holding Malaysia 100.0 100.0
Sdn. Bhd.
Kemas Muhibbah Sdn. Bhd. 23 Property Development Malaysia 100.0 100.0
KennyVale Sdn. Bhd. 24 Property Development Malaysia 100.0 100.0
Kilat Security Sdn. Bhd. Security Services Malaysia 100.0 100.0
liquidation)
Kondoservis Sdn. Bhd. 25 Provision of Management Malaysia 100.0 100.0
Services to Condominiums
K Parking Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
KrisAssets Holdings Berhad Investment Holding Malaysia 74.9 74.9
Lagenda Sutera (M) Sdn. Bhd. 26 Property Investment Malaysia 100.0 0.0
* Lingame Company Limited Investment Holding Hong Kong 100.0 100.0
Lucravest Holdings Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
liquidation)
* MiCasa Hotel Limited 27 Hotelier Myanmar 65.0 65.0
Mid Valley Capital Sdn Bhd 28 Special Purpose Vehicle for Malaysia 74.9 74.9
Issuance of Bonds


Group’s interest
Place of (%)
Mid Valley City Sdn. Bhd.29 Owner and Operator of Malaysia 74.9 74.9
Mid Valley Megamall
Mid Valley City Convention Property Investment Malaysia 100.0 100.0
Centre Sdn Bhd.
Mid Valley City Developments Property Development Malaysia 100.0 100.0
Sdn. Bhd.
Mid Valley City Enterprise Hotel Operator and Owner Malaysia 100.0 100.0
Sdn. Bhd.
Mid Valley Food Management Dormant Malaysia 100.0 100.0
Sdn. Bhd.
liquidation)
Mid Valley City Gardens Sdn Bhd Property Investment Malaysia 100.0 100.0
Mid Valley City Hotels Sdn Bhd Property Investment Malaysia 100.0 100.0
Mid Valley City North Tower Property Investment Malaysia 100.0 100.0
Sdn. Bhd.
Mid Valley City Residences Property Investment Malaysia 100.0 100.0
Sdn. Bhd.
Mid Valley City South Tower Property Investment Malaysia 100.0 100.0
Sdn. Bhd.
MVC Centrepoint North Sdn Bhd Property Investment Malaysia 100.0 100.0
MVC Centrepoint South Sdn Bhd Property Investment Malaysia 100.0 100.0
Mid Valley City Energy Sdn Bhd Dormant Malaysia 100.0 100.0
Mid Valley MC Sdn. Bhd. 30 Property Management Malaysia 74.9 74.9
liquidation)
Mid Valley Mulia Sdn. Bhd. 31 Property Development Malaysia 74.9 74.9
liquidation)
Mid Valley Properties Sdn. Bhd. 32 Property Development Malaysia 74.9 74.9
liquidation)
MIHR Sdn. Bhd. 33 Provision of Hotel Malaysia 0.0 90.0
Management Consultancy
Services
Murni Properties Sdn. Bhd. Property Investment Malaysia 100.0 100.0
MVEC Exhibition and Event Provision of Exhibition Malaysia 100.0 100.0
Services Sdn. Bhd. Services
Nova Pesona Sdn. Bhd. 34 Property Development Malaysia 50.0 50.0
(+ 1 share) (+ 1 share)
OPT Ventures Sdn. Bhd. 35 Property Development Malaysia 70.0 70.0
Outline Avenue (M) Sdn. Bhd. 36 Property Development Malaysia 89.6 89.6
Pacific Land Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
Pangkor Island Resort Sdn. Bhd. Hotelier Malaysia 100.0 100.0
Pekeliling Land Sdn. Bhd. Property Holding Malaysia 100.0 100.0
Pekeliling Property Sdn. Bhd. Property Management Services Malaysia 100.0 100.0
Penang Garden Sdn. Bhd. Property Development and Malaysia 100.0 100.0
Letting of Properties
Permata Dunia Sdn. Bhd. 37 Investment Holding Malaysia 100.0 100.0
Permata Efektif (M) Sdn. Bhd. 38 Property Development Malaysia 100.0 100.0
Pinex Sdn. Bhd. 39 Property Development Malaysia 100.0 100.0


Group’s interest
Place of (%)
PIR Management Services Provision of Management Malaysia 100.0 100.0

Sdn. Bhd. 40 Services
Plaza Permata Management Property Management Services Malaysia 100.0 100.0
Services Sdn. Bhd.
Prima Condominium Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
Primanah Property Sdn. Bhd. Property Development Malaysia 100.0 100.0
Puncak Megah (M) Sdn. Bhd. Property Investment Malaysia 100.0 100.0
Reka Handal Sdn. Bhd. 41 Property Development Malaysia 75.0 75.0
Riraiance Enterprise Sdn. Bhd. Investment Holding Malaysia 100.0 100.0
Salient Glory City (M) Sdn. Bhd. Property Investment Malaysia 100.0 0.0
Tanah Permata Sdn. Bhd. 42 Hotelier Malaysia 100.0 100.0
Tanobi Sdn. Bhd. 43 Property Holding Malaysia 100.0 69.4
Tan & Tan Developments Berhad Property Development, Malaysia 100.0 100.0
Provision of Project
Management Services and
Investment Holding
Tan & Tan Realty Sdn. Bhd. 44 Property Investment and Malaysia 80.0 80.0
Provision of Related Services
and Operating of Food Court
T-Bond Construction Sdn. Bhd. 45 Building Contractor Malaysia 100.0 100.0
Technoltic Engineering Sdn. Bhd. Servicing, Maintenance and Malaysia 60.0 60.0
Installation of Elevators
Teamwork M&E Sdn. Bhd. 46 Provision of Consultation on Malaysia 100.0 100.0
Mechanical and Electrical
Services to Condominiums
and Apartments
TTD Sdn. Bhd. 47 Hotelier Malaysia 100.0 100.0
X-Speed Sdn. Bhd. Dormant Malaysia 100.0 100.0
X-Speed Skatepark Sdn. Bhd. 48 Management of Skatepark Malaysia 74.9 74.9
liquidation)
Notes:
1-5, 7, 9, 11-13, 15, 16, 19, 24, 25, 33-36, 38, 39, 41, 43-47 - Held by Tan & Tan Developments Berhad.
6 - Held by Pacific Land Sdn. Bhd. and TTD Sdn. Bhd. 35.0% and 20.0% respectively.
8 - Held by Lingame Company Limited.
10, 14, 26, 42 - Held by Pacific Land Sdn. Bhd.
18, 20, 22 - Held by ICDC Holdings Sdn. Bhd.
21 - Held by IT&T Engineering & Construction Sdn. Bhd.
23 - Held by IGB Project Management Services Sdn. Bhd.
27 - Held by Earning Edge Sdn. Bhd.
28, 29 - Held by KrisAssets Holdings Berhad
30-32, 48 - Held by Mid Valley City Sdn Bhd
37 - Held by Corpool Holdings Sdn. Bhd.
40 - Held by Pangkor Island Resort Sdn. Bhd.
+ Companies audited by member firms of PricewaterhouseCoopers International Limited which is a separate

and independent legal entity from PricewaterhouseCoopers Malaysia.
* Companies audited by firms other than member firm of PricewaterhouseCoopers International Limited.

43. Associates
Group’s interest
Place of (%)
* Aroma Laundry and Dry Cleaners Provision of Laundry and Malaysia 20.0 20.0
Sdn. Bhd. 1 Dry Cleaning Services
+ Crystal Centre Properties Investment Holding Hong Kong 45.0 45.0
(International) Ltd. 2
* DMV Sdn. Bhd. 3 Property Development Malaysia 39.0 39.0
Gleneagles Academy of Nursing Nursing Education Malaysia 25.0 25.0
(M) Sdn. Bhd. 4
Gleneagles Hospital (Kuala Investment in and Malaysia 30.0 30.0
Lumpur) Sdn. Bhd. 5 Management of a Private
Hospital
Gleneagles Medical Centre (Kuala Development and Malaysia 30.0 30.0
Lumpur) Sdn. Bhd. 6 Investment in Medical Centres
* Grapevine Investments (Hong Investment Holding Hong Kong 50.0 50.0
Kong) Limited 7
Great Union Properties Sdn. Bhd. Hotelier Malaysia 50.0 50.0
Hampshire Properties Sdn Bhd 8 Property Development and Malaysia 50.0 0.0
Property Investment
* HICOM Tan & Tan Sdn. Bhd. 9 Property Development Malaysia 50.0 50.0
IGB (Thailand) Co Ltd Property Investment Thailand 49.0 0.0
+ Istaron Limited 10 Investment Holding Hong Kong 50.0 50.0
Johan Kekal Sdn. Bhd. Property Development Malaysia 50.0 50.0
Kumpulan Sierramas (M) Property Development Malaysia 50.0 50.0
Sdn. Bhd. 11
Kundang Properties Sdn. Bhd. Property Development Malaysia 50.0 50.0
* Kyami Pty. Ltd. 12 Investment Holding Australia 40.0 40.0
Merchant Firm Limited 13 Investment Holding British Virgin 49.5 49.5
Island
* Negara Properties (M) Berhad 14 Property Development and Malaysia 0.0 24.6
Investment Holding
New Commercial Investments Investment Holding British Virgin 49.6 49.6
Ltd 15 Islands
Oncology Centre (KL) Sdn. Bhd. 16 Provision of Comprehensive Malaysia 30.0 30.0
Professional Oncological
Services
Permata Alasan (M) Sdn. Bhd. 17 Property Development and Malaysia 50.0 50.0
Property Investment
Rapid Alpha Sdn. Bhd. 18 Construction Malaysia 50.0 50.0
Ravencroft Investments Investment Holding British Virgin 49.5 49.5
Incorporated 19 Islands
+ Saigon Inn Hotel Co. 20 Hotelier Vietnam 33.8 33.8
* Sierramas Landscape Services Landscaping and Horticulture Malaysia 50.0 50.0
Sdn. Bhd. 21
* St Giles Hotel Ltd. 22 Hotels and Motels with United Kingdom 49.5 49.5
Restaurants
* St Giles Hotel (Heathrow) Ltd. 23 Hotels and Motels with United Kingdom 49.6 49.6
Restaurants
* SuCasa Sdn. Bhd. 24 Hotelier and Operator of Malaysia 0.0 40.0
Service Apartments
Sukatan Garisan Sdn. Bhd. 25 Property Investment Malaysia 50.0 50.0
* Tentang Emas Sdn. Bhd. 26 Investment Holding Malaysia 49.0 49.0
* Weian Investments Pte. Ltd. 27 Property Development and Singapore 49.0 49.0
(under members’ voluntary Trading
liquidation)

43. Associates (continued)
Notes:
1, 4, 5, 6, 8, 9, 11, 12, 17, 24, 26 - Held by Tan & Tan Developments Berhad.
2 - Held by Istaron Limited.
3- Held by Tan & Tan Developments Berhad and IGB Corporation Berhad 26% and 13% respectively.
7, 27 - Held by Grapevine Investments Pte. Ltd.
10 - Held by Pacific Land Sdn. Bhd.
13 - Held by Ravencroft Investments Incorporated
14 - Held by IGB Corporation Berhad and Intercontinental Aviation Services Sdn. Bhd 20.0% and 4.6%
respectively.
16 - Held by Gleneagles Hospital (Kuala Lumpur) Sdn. Bhd.
18 - Held by Ensignia Construction Sdn. Bhd.
19 - Held by Pacific Land Sdn. Bhd., Beswell Limited and TTD Sdn. Bhd. 27.72%, 7.65% and 14.10%
respectively.
20 - Held by Crystal Centre Properties (International) Ltd.
21 - Held by Kumpulan Sierramas (M) Sdn. Bhd.
22 - Held by Pacific Land Sdn. Bhd., Beswell Limited and TTD Sdn. Bhd 27.72%, 7.65% and 14.10%
respectively.
23 - Held by Pacific Land Sdn. Bhd. and TTD Sdn. Bhd 31.53% and 18.02% respectively.
25 - Held by Johan Kekal Sdn. Bhd.
+ Companies audited by member firms of PricewaterhouseCoopers International Limited which is a separate

and independent legal entity from PricewaterhouseCoopers Malaysia.
* Companies audited by firms other than member firm of PricewaterhouseCoopers International Limited.
44. Comparative information
Certain comparative information have been reclassified to conform with current year’s classification.
45. Approval of financial statements
The financial statements have been approved for issue in accordance with a resolution of the Board of Directors
dated 28 April 2008.
Statement by Directors
pursuant to Section 169(15) of the Companies Act, 1965
We, Robert Tan Chung Meng and Tan Sri Dato’ Seri Khalid Ahmad Bin Sulaiman, being two of the Directors of IGB
Corporation Berhad, do hereby state that, in the opinion of the Directors, the financial statements set out on pages
38 to 107 are drawn up in accordance with the provisions of the Companies Act, 1965 and the MASB Approved
Accounting Standards in Malaysia for Entities Other Than Private Entities so as to give a true and fair view of the state
of affairs of the Group and Company as at 31 December 2007 and of the results and cash flows of the Group and
Company for the financial year ended on that date.
Signed in accordance with a resolution of the Directors dated 28 April 2008.

Managing Director

Director
Statutory Declaration
pursuant to Section 169(16) of the Companies Act, 1965
I, Chai Lai Sim, the officer primarily responsible for the financial management of IGB Corporation Berhad, do solemnly
and sincerely declare that the financial statements set out on pages 38 to 107 are, in my opinion, correct and I make
this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory
Declarations Act, 1960.
Chai Lai Sim
Subscribed and solemnly declared by the abovenamed Chai Lai Sim at Kuala Lumpur on 28 April 2008.
Before me:
Soh Ah Kau
Commissioner for Oaths
Report of the auditors

to the members of IGB Corporation Berhad for the financial year ended 31 December 2007
We have audited the financial statements set out on pages 38 to 107. These financial statements are the responsibility
of the Company’s Directors. It is our responsibility to form an independent opinion, based on our audit, on these
financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies
Act, 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this
report.
We conducted our audit in accordance with approved auditing standards in Malaysia. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made
by the Directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion:
(a) the financial statements have been prepared in accordance with the provisions of the Companies Act, 1965 and
the MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities so as to give a true
and fair view of:
(i) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements;
and
(ii) the state of affairs of the Group and Company as at 31 December 2007 and of the results and cash flows of
the Group and Company for the financial year ended on that date;
and
(b) the accounting and other records and the registers required by the Act to be kept by the Company and by the
subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of
the Act.
The names of the subsidiaries of which we have not acted as auditors are indicated in note 42 to the financial
statements. We have considered the financial statements of these subsidiaries and the auditors’ reports thereon.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s
financial statements are in form and content appropriate and proper for the purposes of the preparation of the
consolidated financial statements and we have received satisfactory information and explanations required by us for
those purposes.
The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not
include any comment made under subsection (3) of Section 174 of the Act.
PricewaterhouseCoopers Shirley Goh

(No. AF: 1146) (No. 1778/08/08(J))
Chartered Accountants Partner of the firm
Kuala Lumpur
28 April 2008
PROXY FORM
I/We (full name in block capitals)

NRIC No. (new)/Company No.
CDS Account No.
of (full address)
being a member of IGB Corporation Berhad hereby appoint (full name as per NRIC in block capitals)
NRIC No. (new) of (full address)
or failing him/her, the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the 44th
Annual General Meeting of the Company to be held at Bintang Ballroom, Level 5, Cititel Mid Valley, Mid Valley
City, Lingkaran Syed Putra, 59200 Kuala Lumpur on Wednesday, 28 May 2008 at 3.00 p.m. and at any adjournment
thereof, in the manner indicated below:
No. Resolutions For Against

1. Receipt of Reports and Audited Financial Statements
2. Re-election of Tan Sri Abu Talib bin Othman
3. Re-election of Robert Tan Chung Meng
4. Re-election of Yeoh Chong Swee
5. Re-appointment of PricewaterhouseCoopers as auditors
6. Approval of Directors’ fees
7. Re-appointment of Tan Sri Dato’ Seri Khalid Ahmad bin Sulaiman
8. Authorisation for Directors to issue shares
9. Renewal of Share Buy-Back Mandate
10. Renewal of RRPT Mandate

Number of shares held Signed (and sealed) this day of 2008
Signature(s)
Notes:
A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Act shall not apply to
the Company. A member shall be entitled to appoint more than one proxy to attend and vote at the meeting, provided that the
provisions of Section 149(1)(c) of the Act are complied with. Where a member appoints more than one proxy, the appointment
shall be invalid unless the member specifies the proportions of holdings to be represented by each proxy. In the case of a corporate
member, the proxy form must be either under its common seal or under the hand of its attorney. The proxy form must be deposited
at the Registered Office at Level 32, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, not
less than 48 hours before the time set for the meeting.
Affix Stamp
Here
The Company Secretary

Level 32, The Gardens South Tower
Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
Malaysia
Annual Report 2007

Level 32, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur
Tel: (603) 2289 8989 Fax: (603) 2289 8802 Web: www.igbcorp.com Annual Report 2007

Annual Report 2007: IGB Corporation Berhad

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IGB Corporation Berhad (5745-A)

Annual Report 2007

IGB Corporation Berhad (5745-A)

Profile of the Board of Directors 6-8

Corporate Governance Statement 13 - 21

Audit Committee Report 22 - 24

Statement of Internal Control 25

List of Major Properties 29

Five-Year Group Financial Highlights 30

Reports and Financial Statements 31 - 110

Notice of Annual General Meeting

3. To re-appoint Messrs. PricewaterhouseCoopers as auditors of the Company and to authorise the

4. To approve the Directors’ fees of RM280,000 per annum. (Resolution 6)

6. To consider and if thought fit, pass the following ordinary resolutions:

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

(b) Renewal of shareholders’ mandate for share buy-back

Notice of Annual General Meeting (cont’d)

(i) recurrent transactions of a revenue or trading nature;

(ii) necessary for the day-to-day operations;

(iv) are not to the detriment of minority shareholders

(the ‘RRPT Mandate’);

By Order of the Board

Notice of Annual General Meeting (cont’d)

(1) Appointment of proxy

(2) Re-election and re-appointment of Directors

(3) Explanatory notes on Special Business:

(a) Re-appointment of Director under Section 129(6) of the Act

(b) Authority to issue shares under Section 132D of the Act

(c) Share Buy-Back Mandate

(d) RRPT Mandate

Independent Non-Executive Directors

COMPANY SECRETARY PRINCIPAL BANKERS

Profile of the Board of Directors

TAN SRI ABU TALIB BIN OTHMAN

ROBERT TAN CHUNG MENG

TAN BOON SENG

He holds a Master of Arts from Cambridge University, United Kingdom.

TAN BOON LEE

Profile of the Board of Directors (cont’d)

TAN SRI DATO’ SERI KHALID AHMAD BIN SULAIMAN

TAN LEI CHENG

PAULINE TAN SUAT MING

TONY TAN @ CHOON KEAT

Profile of the Board of Directors (cont’d)

TAN KAI SENG

DATUK ABDUL HABIB BIN MANSUR

YEOH CHONG SWEE

CHUA SENG YONG

Financial year ended 31 December 2007 saw

The Directors have declared an interim

Review of Operations (cont’d)

Review of Operations (cont’d)

Corporate Social Responsibility (“CSR”)

The Year Ahead

ROBERT TAN CHUNG MENG

Corporate Governance Statement

(1) Board responsibility

(2) Board balance

(3) Board meetings

The attendance record of each Director was as follows:

Number of meetings attended Percentage

Tan Sri Abu Talib bin Othman 4 100