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12•UOA DEVELOPMENT BHDAnnualReport2011

1 The Star Step Up Sponsorship Programme

CORPORATESOCIAL RESPONSIBILITY

EDUCATION

Recognising the predominance andimportance of English to our futuregeneration, the Group worked inclose collaboration with The Starnewspaper,Malaysia’sleadingEnglishdaily, to nurture and encourage thelearningofEnglishlanguageamongstvernacularschoolstudents.In line with its aspiration to helpstudentsto improvetheirproficiencyin the international language, theGroupsponsoredRM50,000forStepUp, The Star’s education pullout– a segment dedicated to helpingstudents inYearsFour, FiveandSix

to effectively improve their Englishlanguage skills through interestinglanguage strengthening exercisesandfunsyllabus-basedcontents.

Thepulloutisintendedtoinspireandcultivate a genuine interest in theEnglish language amongst today’syouth, thus laying down the solidgroundworkfortheirfuturesuccess.

COMMUNITYACTIVITIES

The Group also supports sociallyresponsible initiatives undertaken bySuria Bangsar South, a communitycentre operated by SoroptimistInternationalClubofBangsar (SICB)andsponsoredbytheGroup.

Suria Bangsar South - a jointinitiative of SICB and the Group -offers educational support and skilldevelopmentprogrammesforwomenandyounggirlslivinginthelowcostflats.

Thecommunitycentrerunsintandemwith four programme focus goalsnamelyequityandequalityforwomenand girls, living in safe and healthyenvironments, access to education,and development of leadership andpracticalskills.

• The Group introduced an on-going community programme,Caring For The Young by SuriaBangsar South, held in supportof theMinistryofHealth’s (MOH)effort to educate the publicabout the potential danger ofBisphenol-A(BPA),whichisusedin polycarbonate to make infantmilkbottles.

For UOA Development Bhd (the “Group”), CorporateSocialResponsibility(CSR)playsanintegralpartofthecompany’scorecultureinbuildingexcellence.In2011,the Group focused its CSR initiatives in the areas ofeducationandcommunityactivities.

1

UOA DEVELOPMENT BHDAnnualReport2011•13

Theprogrammewasinitiatedtopromoteawarenessonchildren’swell being through educationaltalks and activities for motherswithyoungchildren.

A total of 150 children, aged 2and below, received hamperscomprising BPA-free infantmilk bottles and baby toiletriescourtesyoftheGroup.Insupportof the community initiative,families of the recipients alsobroughtintheiroldbabybottlesinexchange for thesafe-to-usenewones.

• InconjunctionwiththeHariRayafestive celebration, an annualMajlis Hari Raya at BangsarSouth was held to add somecheer to 120 single mothersand their children from theneighbouring community in thetruespiritofsharingandgiving.

The event also served as anideal platform to introducevarious new skill developmentprogrammes including sewing,cooking and beading classesofferedbySuriaBangsarSouthto the single mothers andencouragetheirparticipationforthebettermentoftheirlivelihood.

• A book collection drive wasorganisedinsupportoftheSuriaBangsar South Mini Libraryproject to promote educationaspartof theskilldevelopmentprogramme.

Morethan200children’sbooksinMalayandEnglish–pre-school,primary and secondary schoolbooks, picture dictionaries,encyclopedias, how-to booksaswellasfictionalstorybooks–werecollectedfromthestaffforthecampaign.

All the collected books wereplaced at the Suria BangsarSouth library for the children’sperusal. In the near future,SICB intends to conduct storytelling sessions, arts and craftsclasses to benefit childrenfrom low income families in theneighbourhood.

• SuriaBangsarSouthconductedaPersonalSafetyWorkshopforchildrenbelow13yearsold.Thechildren were taught the FiveGoldenRulesofPersonalSafetyto recognise possible dangersigns and unsafe situations.Theworkshopwasheldwiththeobjective to provide practicaladviceonkeepingchildrensafefromharm,whetheritisathome,in school,or in thesurroundingneighbourhoods.

TheGroupsupportstheimportanceof such engaging initiatives asthey form the basis of a caringcommunitywiththeaimtoimprovethesocietyandenvironmentwithintheKampungKerinchivicinity.

CorporateSocialResponsibilities(Cont’d)

2

3

4

2 Caring For The Young Programme3 & 4 Majlis Hari Raya

14 • UOA DEVELOPMENT BHD Annual Report 2011

CORPORATEINFORMATION

BOARD OF DIRECTORS

Tan Sri Dato’ Alwi bin Jantan (Chairman/Independent Non-ExecutiveDirector)

Kong Chong Soon @ Chi Suim (ManagingDirector/ Non-IndependentDirector)

Kong Pak Lim (ExecutiveDirector/ Non-IndependentDirector)

Tan Chok Kian Alphonsus (IndependentNon-ExecutiveDirector)

Alan Charles Winduss (Non-Independent Non-ExecutiveDirector)

AUDIT COMMITTEE

Tan Chok Kian Alphonsus (Chairman,Independent Non-ExecutiveDirector)

Tan Sri Dato’ Alwi bin Jantan (IndependentNon-ExecutiveDirector)(Resignedon28March2012)


NOMINATION AND REMUNERATION COMMITTEE

Tan Chok Kian Alphonsus (Chairman,Independent Non-ExecutiveDirector)

Tan Sri Dato’ Alwi bin Jantan (IndependentNon-ExecutiveDirecctor)


SECRETARIES

Yap Kai Weng (MAICSANo:74580)

Wong Yoke Leng (MAICSANo:7032314)

REGISTERED OFFICE

No. 9, Jalan Indah 16Taman Cheras Indah56100 Kuala LumpurTel No: +603-9287 1000Fax No: +603-9287 2000

SHARE REGISTRAR

Symphony Share Registrars Sdn BhdLevel 6, Symphony HousePusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangorTel No: +603-7841 8000Fax No: +603-7841 8151

PRINCIPAL PLACEOF BUSINESS

Wisma UOA Bangsar SouthTower 1, Avenue 3The Horizon, Bangsar SouthNo. 8, Jalan Kerinchi59200 Kuala LumpurTel No: +603-2245 9188Fax No: +603-2245 9198

AUDITORS

Mazars (AF: 1954)Wisma Selangor Dredging7th Floor, South Block142-A, Jalan Ampang,50450 Kuala LumpurTel No: +603-2161 5222Fax No: +603-2161 3909

PRINCIPAL BANKERS

AmBank BerhadHSBC Bank Malaysia BerhadRHB Bank BerhadUnited Overseas Bank (M) Bhd

STOCK EXCHANGE LISTING

Bursa Malaysia Securities Berhad

STOCK CODE

5200

WEBSITE

www.uoadev.com.my

INVESTOR RELATIONS

Email: [email protected] No: 1-300-88-6668


FINANCIALCALENDAR

FINANCIALYEAR

1Januaryto31December2011

LISTEDONBURSAMALAYSIA 8June2011

ANNOUNCEMENTOFQUARTERLYRESULTS 23August2011–announcementofunauditedconsolidatedresult for

thesecondquarterended30June2011

23November2011–announcementofunauditedconsolidatedresultforthethirdquarterended30September2011

23February2012–announcementofunauditedconsolidatedresultforthefourthquarterended31December2011

ANNUALREPORT&ANNUALGENERALMEETING

7May2012–dateofnoticeof8thAnnualGeneralMeetinganddateofissuanceofAnnualReport2011

29May2012–dateof8thAnnualGeneralMeeting

DIVIDEND Tobeapprovedatthe8thAnnualGeneralMeeting


SubsidiaryLegend:

Associate Company

CORPORATESTRUCTURE

100%

100%

54%

60%

70%

60%

100%

100%

100%

100%

100% 100%

100%

60%

100%

100%

100%

85%

100%

100%

100%

100%

100%

85%

100%

UOA Development Bhd

Magna Tiara Development Sdn Bhd

IDP Industrial Development Sdn Bhd

Sunny Uptown Sdn Bhd

Peninsular Home Sdn Bhd

Magna Kelana Development Sdn Bhd

Scenic Point Development Sdn Bhd

Ceylon Hills Sdn Bhd

Allied Engineering Construction Sdn Bhd

UOA Hospitality Sdn Bhd

Everise Project Sdn Bhd

Windsor Triumph Sdn Bhd

Saujanis Sdn Bhd

Everise Tiara (M) Sdn Bhd

Paramount Hills Sdn Bhd

Sagaharta Sdn Bhd

Paramount Properties Sdn Bhd

Seri Tiara Development Sdn Bhd

UOA Properties Sdn Bhd

Dynasty Portfolio Sdn Bhd

Lencana Harapan Sdn Bhd

Bangsar South City Sdn Bhd

Nasib Unggul Sdn Bhd

Enchant Heritage Sdn Bhd

Tunjang Idaman Sdn Bhd

100%

39%

URCEngineeringSdnBhd

KumpulanSejahteraSdnBhd

TiarawoodsSdnBhd


BOARD OFDIRECTORS

KongChongSoon@ChiSuim(ManagingDirector/Non-IndependentDirector)

AlanCharlesWinduss(Non-IndependentNon-ExecutiveDirector)

TanChokKianAlphonsus(IndependentNon-ExecutiveDirector)

TanSriDato’AlwibinJantan(Chairman/IndependentNon-ExecutiveDirector)

KongPakLim(ExecutiveDirector/Non-IndependentDirector)

from right to left


PROFILE OF BOARD OF DIRECTORS

Tan Sri Dato’ Alwi bin Jantangraduated from University Malayawith a Bachelor of Arts (Honours)degree in 1958. While in the publicservice, he also obtained a diplomafromtheStateTechniqueInternationald’Archives, Paris and an honorarydegree from the University of Romein 1966 and 1979 respectively. In1980, he attended the AdvancedManagement Programme at theHarvardGraduateSchoolofBusiness.Tan Sri Dato’ Alwi bin Jantan was aUNESCOFellowaswellasa formerPresident of the Harvard BusinessSchoolAlumniClubofMalaysia.

He does not have any familyrelationshipwithanyDirectorand/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.

KongChongSoon@ChiSuim(ManagingDirector/Non-IndependentDirector)

Kong Chong Soon @ Chi Suim,Malaysian, aged 70, was appointedDirector of UOA on 27 May 2004.He is responsible for the overallgroup management and strategydevelopment.Hehasover30yearsexperience in the construction andproperty development industries,both inSingaporeandMalaysia.HeplayedakeyroleasProjectAdvisortotheHarapangroupofcompanieswhere he was instrumentalin overseeing the successfulconstructionofthreeinternationally-ratedhotelsinSingapore,namelytheHotelMeridien,theGlassHotelandtheChangiMeridienHotel,valuedinexcess of SGD866.0 million, duringthe1970sand1980s.

In 1987, he co-founded UOA andspearheaded our Parent Group’srapid growth in Malaysia. Overthe last 21 years, our ParentGroup together with our Grouphas successfully completednumerous residential, industrial andcommercialdevelopmentsinvariouspartsofKualaLumpur.Hehasinthepast served in various capacities inseveralpublic-listedcompaniesbothin Malaysia and Singapore whichincluded Raleigh Bhd, Town andCity Properties Ltd and Tuan SingHoldingsLtd.

HegraduatedwithanAssociateshipin Civil Engineering from the thenPerthTechnicalCollege(nowknownasCurtinUniversity)in1964andisamemberof theCharteredEngineersofAustralia.

He does not have any familyrelationship with any Director and/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.

TANSRIDATO’ALWIBINJANTAN(Chairman/IndependentNon-ExecutiveDirector)

Tan Sri Dato’ Alwi bin Jantan,Malaysian,aged76, istheChairmanand Independent Non-ExecutiveDirector. He was appointed on24 January 2011 and is also amember of the Nomination andRemuneration Committee. He hashad a distinguished career in publicserviceinMalaysiaculminatingastheDirectorGeneralofPublicService,apositionheheld forover threeyearsuntilhis retirement inApril1990.Hisother notable appointments wereas Secretary General, Ministry ofAgriculture (1984 – 1987), DeputySecretary General, Prime Minister’sDepartment(1981–1984),SecretaryGeneral, Ministry of Health (1977 –1981), Secretary General, Ministryof Local Government and FederalTerritory (1976 – 1977), StateSecretary, Selangor (1972 – 1976)and Director General of NationalArchives and Library (1966 – 1971).He concurrently served as PrivateSecretary toHisRoyalHighness theTimbalan Yang di Pertuan Agongbetween1961and1962andin1965.

Uponhisretirementafter32yearsinthepublicservice,hejoinedGentingMalaysiaBerhad (formerlyknownasResorts World Bhd) as an ExecutiveVice President – Public Affairs andHuman Resources in 1990. He wasredesignated as Executive Directorin 2007 and is currently a Non-IndependentNon-ExecutiveDirector.HealsositsontheboardofHiapTeckVentureBhd,acompanylistedontheMainMarketofBursaSecurities.


ProfileofBoardofDirectors(Cont’d)

TanChokKianAlphonsus(IndependentNon-ExecutiveDirector)

Tan Chok Kian Alphonsus, aSingaporean, aged 80, is theIndependent Non-Executive Directorand was appointed as Directoron 24 January 2011. He is alsothe Chairman of both the AuditCommittee and Nomination andRemuneration Committee. He hasheld various senior appointments intheSingaporecivilservicefrom1956untilhis retirement in1986 includingthepositionsofPermanentSecretaryintheMinistryofFinance,theMinistryof Social Affairs and the Ministryof National Development. He wasChairman of the Central ProvidentFundBoardandwasappointedtothepositionsofActingVice-Chancellor/DirectorGeneral,NanyangUniversityand Chairman of the Post OfficeSavingsBankofSingapore.

Followinghisretirementfromthecivilservice,hewasappointedExecutiveChairman of the Stock Exchange ofSingaporeLimitedbetween1987and1989andservedasSingapore’straderepresentative to Taipei between1988and1991.MrTanpresentlysitsas Non-Executive Chairman of TatHongHoldingsLtd,acompanylistedon the Main Board of the SGX-STwhichspecialisesintheinternationalsupply of heavy machinery andequipment as well as Asia PacificInvestmentCompanyLtd,apropertyinvestmentcompanyassociatedwiththe Lend Lease Group of Australia.Hewasappointedthenon-executiveChairmanof theSecurities InvestorsAssociationofSingaporein2007.

He graduated with a Bachelor ofArts degree with Honours from theUniversityofMalayain1955.


AlanCharlesWinduss(Non-IndependentNon-ExecutiveDirector)

Alan Charles Winduss, Australian,aged 70, was appointed Directorof UOA on 24 January 2011 andmember of Audit Committee andNomination and RemunerationCommitteeofUOA.HeisaDirectorofWinduss&AssociatesPtyLtd.Hehasbeeninvolvedintheprofessionalaccounting public practice for over25 years, specialising in mattersrelating to corporate management,restructuring, corporate financeand company secretarial mattersincluding the Australian SecuritiesExchange (“ASX”) and theAustralian Securities Exchangeand Investments Commissioncompliance.TheaccountingpracticeofWinduss&AssociatesPtyLtdlistsamong itsfieldofexpertisemattersrelating to property development,management and ownership. HesitsontheBoardoffourcompanieslisted on the ASX including asNon-Executive Chairman of QuestMinerals Limited and serves on theBoard of Australian incorporatedprivatelistedcompanies.

Mr Winduss graduated from PerthTechnical College (now known asCurtin University) with a Diplomain Accounting in 1963. He is amember of various professionalbodies including the Instituteof Chartered Accountants inAustralia and the Certified PublicAccountants Australia. In addition,he is an Associate Fellow of theAustralian Institute of Management,a Fellow of the Taxation Institute ofAustralia, a Fellow of the AustralianInstitute of Company Directors andis a registered Australian CompanyAuditor.

He does not have any familyrelationship with any Director and/ormajorshareholder,noranyconflictofinterestwiththeCompany.Hehasnoconvictionsforanyoffencesoverthepast10years.

KongPakLim(ExecutiveDirector/Non-IndependentDirector)

Kong Pak Lim, Malaysian, aged 59,wasappointedDirectorofUOAon27May2004.Heoverseestheplanningand designs of our commercialand residential projects and is alsoresponsible for the identificationand negotiations of all new landacquisitions.

He has over 20 years of experiencein the construction, mining andproperty development industriesin both Malaysia and Australia. Hehas worked extensively in variouscapacities in Australia, among themasaProjectEngineerinDavisWemcoin charge of mining design andconstruction and material handlingandasaDirectorofFerroEngineeringPtyLtdresponsibleforstructuralandmechanicalfabricationofoilandgasandminingequipment.

He co-founded UOA with Mr KongChongSoon@ChiSuimandplayedan integral part in spearheading theParentGroup’sandtheGroup’srapidgrowthovertheyears.

He graduated with a Bachelor ofEngineeringdegreewithHonoursfromtheUniversityofWesternAustraliain1975.HeisamemberoftheInstituteofEngineersAustralia,theAustralianInstituteofManagement,theInstituteof Engineers Malaysia and theAssociationofProfessionalEngineersMalaysia.



Thekeymanagementteamisresponsiblefortheday-to-daymanagementandoperations.Thekeymanagementteamconsistsofexperiencedpersonnelinchargeofmattersrelatedtoconstruction,humanresource,corporateaffairs,riskmanagement,legalandcorporatesecretariat,financeandadministration.

Themembersofthekeymanagementteam,asat31December2011,areasfollows:

Name Nationality Age Designation

KongChongSoon@ChiSuim Malaysian 70 ManagingDirector

KongPakLim Malaysian 59 ExecutiveDirector

CeceliaChan Singaporean 57 PropertyDirector

TongEePing Malaysian 53 ChiefOperatingOfficer(Construction)

KhorSooBeng Malaysian 48 ChiefOperatingOfficer(Development)

AngKhengIm Malaysian 46 ChiefFinancialOfficer

TongEePing(ChiefOperatingOfficer-Construction)

Tong Ee Ping, aged 53, whois our Chief Operating Officer(Construction) has been with ourParent Group since 1988 and hasbeen responsible for overseeingour Parent Group’s constructionactivities undertaken through AlliedEngineering Construction Sdn Bhdand URC Engineering Sdn Bhd.FollowingtheReorganisation,hewastransferred to our Company. Priorto joining our Parent Group and ourGroup, he was Senior Site Foremanat Progressive Builders Pte Ltdbetween 1985 and 1988 where hesupervisedbuildingworks.HeholdsaBachelorofScienceinBioChemistrydegree with Honours from PunjabAgricultural University where hegraduatedin1981.

CeceliaChan(PropertyDirector)

CeceliaChan,aged57,wasappointedasPropertyDirectorofUOAHoldingsSdn Bhd since 1989, a position sheheld until the establishment of UOAReal Estate Investment Trust (UOAREIT) in 2005 where she was thenappointedasChiefExecutiveOfficerof UOA Asset Management SdnBhd (Asset Manager for UOA REIT)in2005,apositionshehelduntilherresignationon14January2011.WhilstatUOAAssetManagementSdnBhd,sheoversawthepropertyleasingandbuilding management activities ofUOAREIT.Priortothis,sheheldthepositionofPropertyDirectoratUOAHoldings Sdn Bhd between 1989and 2004 and was responsible forleadingandformulatingitsmarketingand sales strategies. Following theReorganisation, she was transferredtoourCompanyandredesignatedasour Property Director. Before joiningour Parent Group, she held variouspositions in a number of privateproperty development companiesin Singapore. She graduated fromYMCA in 1974 with a Diploma inMarketingManagement.

KEY MANAGEMENTTEAM


AngKhengIm(ChiefFinancialOfficer)

Ang Kheng Im, aged 46, has beenthe Finance Director and ChiefFinancial Officer of our ParentGroup since 1994. She is not onlyresponsible for our finance andaccounts departments but alsooverseestheinternalcontrolfunction,company secretarial compliance,tax compliance, managementinformationsystemandlegalmatters.Following the Reorganisation, shewas transferred to our Company.Prior to this, she spent four yearsas a Senior Auditor at Khoo Wongand Chan. She completed the finalyear of professional education atEmile Woolf College, London, UK in1992 and obtained her professionalqualification from the Association ofChartered Certified Accountants inLondon,UKinthesameyear.Sheisa Chartered Accountant of Malaysiaand is a member of the MalaysianInstituteofAccountants.

KeyManagementTeam(Cont’d)

KhorSooBeng(ChiefOperatingOfficer-Development)

Khor Soo Beng, aged 48, whois our Chief Operating Officer(Development) has been with theParent Group since 1994 and hasbeenresponsibleforprojectplanningand development and overseeingour Parent Group’s contracts, M&Etechnical,facilitiesmanagementandsecuritydepartments. Following theReorganisation, he was transferredto our Company. Prior to joiningourParentGroup,hewasaProjectManageratHCProjectManagementConsultants between 1993 and1994. Prior to that, between 1990and1993,hewasaProjectManagerand Project Quantity Surveyor forMCB Management Services SdnBhd.Currently,he isalsoadirectorofUOAAssetManagementSdnBhd,theAssetManagerofUOAREIT.HegraduatedwithaBachelorofScienceinBuildingdegreewithHonoursfromtheUniversityofUlster,UKin1990.He is alsoan incorporatedmember(ICIOB)of theChartered InstituteofBuilding,UK.


TheBoardofDirectors (“theBoard”)ofUOADevelopmentBerhadfullyappreciatesthe importanceofadoptingtheprinciplesandbestpracticesoftheMalaysianCodeonCorporateGovernance(“theCode”).TheBoardundertakesfullaccountabilityandtransparencyofactionstowardscreationofwealthinachievingtheshorttermandlongtermshareholders’value.

Assuch,theBoardstrivestoadoptthesubstancebehindcorporategovernanceprescriptionsandnotmerelytheform.TheBoardispleasedtoprovideanarrativestatementontheapplicationofthePrinciplesandtheextentofcompliancewiththeBestPracticesassetoutinParts1and2oftheCodeaswellastherelevantprovisionsintheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“ListingRequirements”).

A. BOARD OF DIRECTORS Board Responsibilities

The Board is responsible for the overall corporate governance of the Group, including its strategic direction,overseeingtheproperconductoftheGroup’sbusiness,identifyingprincipalrisksandensuringtheimplementationof systems to manage risks, succession planning, developing an investor relations program, reviewing theadequacyandintegrityoftheGroup’sinternalcontrolsystemsandmanagementinformationsystems,establishinggoalsformanagementandmonitoringtheachievementofthesegoals.

Supply of Information

TheBoardrecognisesthatthedecisionmakingprocessishighlydependentonthequalityofinformationfurnished.Assuch,theBoardhasunrestrictedaccesstoanyinformationpertainingtotheCompany.Updatesonoperational,financial,corporateissuesandstrategicmattersaswellascurrentdevelopmentoftheGroupwhichrequiretheBoardmembers’attentionaredisseminatedwithoutdelay.

AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretaryinensuringtheeffectivefunctioningof the Board, management representatives and, if deemed necessary, other independent professionals at theexpenseoftheCompanyinthedischargeoftheirduties.

Board Balance

TheBoardatthedateofthisstatementcomprisingfive(5)memberscomprisingtwo(2)ExecutiveDirectorsandthree(3)Non-ExecutiveDirectors.Two(2)outofthree(3)Non-ExecutiveDirectorsareindependentwhichfulfillstheprescribedrequirementforat least2Directorsor1/3oftheBoardareindependentasstatedinParagraph15.02oftheBursaSecuritiesListingrequirements.

ThereisaclearsegregationofresponsibilitiesbetweentheChairmanandtheManagingDirectortoensurebalanceofpowerandauthority.TheChairmanisresponsibleforconductingmeetingsoftheBoardandshareholdersandensuringallDirectorsareproperlybriefedduringBoarddiscussionandshareholdersareinformedofthesubjectmattersrequiringtheirapproval.TheManagingDirectorisresponsibleforthemanagementandoperationsoftheCompany.TheBoardundertheleadershipoftheChairmanandtheManagingDirectorhastheoverallresponsibilityforthestrategicdirectionoftheCompany.

CORPORATE GOVERNANCE STATEMENT

UOA DEVELOPMENT BHD Annual Report 2011 • 23

Meetings

TheBoardmeetsat leastonceeveryquarterandadditionalmeetingsareconvenedasandwhennecessary.The Board is provided in advance with the Agenda together with reports and supporting documents for theBoardMeetings.Allproceedingsof theBoardMeetingsaredulyminutedandsignedby theChairmanof themeeting.DuringthefinancialyearunderreviewandsubsequenttothelistingoftheCompanyontheMainBoardofBursaMalaysiaon8June2011,theBoardmettwo(2)timesandtheattendancerecordforeachDirectorisasfollows:-

Name of Director Total Meetings Attended Percentage of Attendance (%)

TanSriDato’AlwibinJantan 1/2 50

KongChongSoon@ChiSuim 2/2 100

KongPakLim 2/2 100

TanChokKianAlphonsus 2/2 100

AlanCharlesWinduss 2/2 100

Allthedirectorshavecompliedwiththeminimum50%attendancerequirementinrespectofBoardmeetingsasstipulatedbytheListingRequirements.

Board Committees

TheBoarddelegatesspecificresponsibilitiestovariouscommitteessuchasAuditCommittee,NominationandRemunerationCommittee toassist indischarging theirduties.Allcommitteeshavewritten termsof referenceandtheBoardreceivesreportsoftheirproceedingsanddeliberations,whereappropriate.TheChairmanofthevariouscommitteeswillreporttotheBoardtheoutcomeofthecommitteemeetingsandtheminutesofmeetingsarecirculatedtotheBoard.Thesecommitteesareformedinordertoenhancebusinessandoperationalefficiencyaswellasefficacy.

The Nomination and Remuneration Committee was established on 25 January 2011 and comprises entirelyNon-Executive Directors, majority of whom are independent. The Nomination and Remuneration Committeeisempoweredby theBoardand its termsof referenceare tobring to theBoard recommendationsas to theappointmentsofnewDirectors.TheCommitteealsokeepsunderreviewtheBoardStructure,sizeandcomposition.

The Nomination and Remuneration Committee systematically assesses the effectiveness of the Board, thecommitteesoftheBoardandthecontributionofeachindividualDirectoronanannualbasis.AllassessmentsandevaluationscarriedoutbytheNominationandRemunerationCommitteeinthedischargeofallitsfunctionsaredocumented.

The Nomination and Remuneration Committee held two (2) meetings during the financial year ended31December2011.

CorporateGovernanceStatement(Cont’d)


A. BOARD OF DIRECTORS (Cont’d)

Appointment and Re-election to the Board

TheNominationandRemunerationCommitteehasbeengiventheresponsibilitiestorecommendnewappointmentstotheBoard.InaccordancewiththeCompany’sArticlesofAssociation,allDirectorswhoareappointedbytheBoardaresubjecttoretirementandre-electionbyshareholdersatthenextannualgeneralmeetingsubsequenttotheirappointments.TheArticlesofAssociationalsoprovidethatone-third(1/3)oftheDirectorsshallsubjecttoretirementbyrotationandbeeligibleforre-electionateachannualgeneralmeetingprovidedthatallDirectorsshallretirefromoffice,onceatleastineverythreeyears.AretiringDirectorshallretainofficeuntilthecloseofthemeetingatwhichheretires.

Directors over seventy (70) years of age are required to submit themselves for re-appointment annually inaccordancewithSection129(6)oftheCompaniesAct,1965.

Directors’ Training

AllDirectorshavecompletedtheMandatoryAccreditationProgrammeasprescribedbytheListingRequirements.During the financial year, Directors and Senior Management attended the following training programmes andseminarstofurtherbroadentheirskills,knowledgeandperspectiveandkeepthemabreastwithnewandrelevantdevelopmentspertainingtochangesinlegislationandregulations:

Training Attendedby

ProposedchangestocodeofCorporateGovernanceandListingRules TanChokKianAlphonsus

SustainabilityProgrammeforCorporateMalaysiabyBursaMalaysia TanSriDato’AlwibinJantan

NavigatingaChangingAnti-CorruptionLandscape TanSriDato’AlwibinJantan (UKBriberyAct)byNortonRose

B. DIRECTORS’ REMUNERATION

The Nomination and Remuneration Committee which comprises entirely Non-Executive Directors, majorityof whom are independent, recommends to the Board the remuneration package for the Executive Directors,The remuneration package for Executive Directors is structured on the basis of linking rewards to corporateand individualperformance.Performance ismeasuredagainst theresultachievedbytheGroupand individualachievementagainsttargetsset.ItistheultimateresponsibilityoftheentireBoardtoapprovetheremunerationoftheseDirectorswiththeExecutiveDirectorsconcernedabstainingfromdeliberationsontheirownremuneration.




B. DIRECTORS’ REMUNERATION (Cont’d)

TheremunerationpackageforNon-ExecutiveDirectorsaredeterminedbytheBoardasawhole,withtheNon-ExecutiveDirectorsabstainingfromdiscussionontheirownremuneration.

Non-Executive Directors Executive Directors Total

RM’000 RM’000 RM’000

Salary - 1,152 1,152

Bonus - 96 96

Fees 90 - 90

Otheremoluments - - -

Benefit-in-kind - 44 44

Total 90 1,292 1,382 Remuneration paid to Directors during the year analysed into bands of RM50,000, which complies with the

disclosurerequirementsunderBursaMalaysiaListingRequirementsisasfollows:

Non-Executive Directors Executive Directors

UptoRM50,000 3 -

FromRM600,001toRM650,000 - 2

C. SHAREHOLDERS

TheBoardacknowledgestheneedforshareholderstobekeptinformedofallmaterialbusinessmattersaffectingtheGroup.ShareholdersareprovidedwithanoverviewoftheGroup’sperformanceandoperationsthroughthetimely releaseoffinancial resultsonaquarterlybasis.Timelyannouncementsarealsomadeto thepubliconcorporateproposalsandotherrequiredannouncementstoensureaffectivedisseminationofinformationrelatingtotheCompany.

TheCompany’sAGMremainstheprincipalforumfordialogueandcommunicationwithshareholders,inparticularprivateinvestors.Shareholdersareencouragedtoaskquestionsabouttheresolutionsbeingproposedandtheoperationsof theGroup.Thecompany’swebsite,www.uoadev.com.myprovidesacomprehensiveavenueforinformationdissemination.


D. ACCOUNTABILITY AND AUDIT

Financial Reporting Inpresentingtheannualreportsandauditedfinancialstatementsandquarterlyannouncementtoshareholders,

theBoardaimstoprovideandpresentanaccurate,balancedandmeaningfulassessmentoftheGroup’sfinancialperformance and prospects. The Board is assisted by the Audit Committee to oversee the Group’s financialreportingprocessesandthequalityofitsfinancialreporting.

Directors’ Responsibility Statement in Respect of the Preparation of the Audit Financial Statements

TheDirectorsare responsible forensuring that thefinancialstatementsof theGroupgivea trueand fairviewof the state of affairs of the Group and of the Company as at the end of the financial year and the financialperformanceandcashflowsoftheGroupandoftheCompanyforthefinancialyearthenended.Inpreparingthefinancialstatements,theDirectorshaveensuredthatapplicableapprovedaccountingstandardsinMalaysiaandtheprovisionsoftheCompaniesAct,1965havebeenapplied.Inpreparingthefinancialstatements,theDirectorshaveselectedandappliedconsistentlysuitableaccountingpoliciesandmadejudgementsandestimatesthatarereasonableandprudent.

State of Internal Control ThestatementofInternalControlfurnishedonpage30oftheAnnualReportprovidesanoverviewonthestateof

internalcontrolswithintheGroup.

Relationship with External Auditors

Key featuresunderlying the relationshipof theAuditCommitteewith theexternalauditorsare included in theAuditCommittee’stermsofreferencesassetoutintheAuditCommitteeReport.TheAuditCommitteehasalwaysmaintainedatransparentrelationshipwith itsauditors inseekingprofessionaladviceandensuringcompliancewiththeappropriateaccountingstandards.

Compliance with the Best Practices of the Code

TheBoardofDirectorshas takenmeasures toensure thatGroup fullycomplieswithall thebestpracticesofcorporategovernanceasidentifiedintheCodethroughoutthefinancialyearended31December2011.

ThedisclosureofthisStatementonCorporateGovernancehasbeenapprovedbytheBoardduringtheBoard

Meetingheldon28March2012.



AUDIT COMMITTEE REPORT

FORMATION

TheAuditCommitteewasformedbytheBoardpursuanttoitsmeetingon25January2011.ItsprimaryresponsibilityistoprovideassistancetotheBoardofDirectorsinfulfillingitscorporategovernanceresponsibilitiesinrelationtoourfinancialreporting,internalcontrolstructure,relatedpartytransactionsandexternalandinternalauditfunctions.TheAuditCommitteemayinviteanyofthekeymanagementoremployeestoparticipateinitsmeetingsandtoappointanyrelevantconsultantsorprofessionalstoassistittodischargeitsfunctions.

COMPOSITION

The Audit Committee consists of two (2) Independent Non-Executive Directors and one (1) Non-IndependentNon-ExecutiveDirector:

TanChokKianAlphonsus(Chairman/IndependentNon-ExecutiveDirector)TanSriDato’AlwibinJantan(IndependentNon-ExecutiveDirector)(Resignedon28March2012)AlanCharlesWinduss(Non-IndependentNon-ExecutiveDirector)

TanSriDato’AlwibinJantanhasresignedasamemberoftheAuditCommitteeon28March2012andtheCompanyisinthemidstofidentifyingasuitablecandidatetobeappointedtofillthevacancyandtocomplywiththerequirementonthecompositionoftheAuditCommitteeinparagraph15.09(1)(a)and(b)oftheMainMarketListingRequirements.

SUMMARY OF TERMS OF REFERENCE

1. COMPOSITION

TheACshallbeappointedbytheBoardwiththefollowingrequirements:• Compriseatleastthree(3)members• Allmembersmustbenon-executiveDirectors• AllmembersshouldbefinanciallyliterateandatleastonemembermustbeamemberofMIAoraccounting

associationorbody• TheChairmanshallbeanIndependentDirector

2. FREQUENCY AND ATTENDANCE OF MEETINGS

Aminimumoffour(4)meetingsayearshallbeplannedandanyadditionalmeetingswillbeonaneedbasis.

TheACshouldmeetwiththeExternalAuditorswithoutExecutiveBoardmemberspresentatleasttwiceayear.

TheACshouldmeetregularly,withduenoticeofissuestobediscussed,andshouldrecorditsconclusionsindischargingitsdutiesandresponsibilities.

The Chairman of the AC should engage on a continuous basis with Senior Management, such as the ChiefOperatingOfficer,theChiefFinancialOfficer,theHeadofInternalAuditandtheExternalAuditorsinordertokeepabreastofmattersaffectingtheGroup.

TheChiefFinancialOfficer,Headof InternalAuditanda representativeof theExternalAuditor shall normallyattendmeetings.


2. FREQUENCY AND ATTENDANCE OF MEETINGS (Cont’d)

OtherBoardmembersandemployeesmayattendanyparticularACmeetingonlyupontheinvitationoftheACspecifictotherelevantmeeting.

TheACheldtwo(2)meetingsduringthefinancialyearended31December2011.ThedetailsofattendanceoftheACareasfollows:

Name of Director Total Meetings Attended

TanChokKianAlphonsus 2/2

TanSriDato’AlwibinJantan(Resignedon28March2012) 1/2

AlanCharlesWinduss 2/2

3. KEY FUNCTIONS & RESPONSIBILITY

ThekeyfunctionsandresponsibilityoftheCommitteeshallbe:

External Audit

i. TorecommendtotheBoardanymatterrelatingtotheappointmentofexternalauditors,thefeesandanymatterinrelationtoresignationordismissaloftheexternalauditors;and

ii. Toreviewanddiscusswiththeexternalauditorsitsscopeanduponcompletionoftheauditassessment,topresenttheauditfindingsandrecommendationsoftheexternalauditorstotheBoard

Internal Audit

i. Toreviewtheinternalauditplan,considerthemajorfindingsofinternalauditsandmanagement’sresponsesandensurecoordinationbetweentheinternalandexternalauditors

ii. Toreviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunctionsandthatithasthenecessaryauthoritytocarryoutitswork

iii. Toreviewtheauditreports;andiv. Todirectinternalauditorstoanyspecificareaorprocedurewherenecessary

Financial reporting review Toreviewwithourmanagementthequarterlyresultsandyear-endfinancialstatementspriortotheapprovalby

ourBoard.

Related party transactions ToreviewanyrelatedpartytransactionsandconflictofinterestsituationthatmayariseintheGroup.

Internal control systems To keep under review the effectiveness of internal control systems and the internal and/or external auditors’

evaluationofthesesystems.

AuditCommitteeReport(Cont’d)


3. KEY FUNCTIONS & RESPONSIBILITY (Cont’d)

Other matters

i. Todiscussproblemsandreservationarisingfromtheinternalaudit,interimandfinalaudits,andmatterstheinternalandexternalauditorsmaywishtodiscuss(intheabsenceofthemanagementwherenecessary);

ii. WheretheAuditCommitteeisoftheviewthatamatterreportedbyittotheBoardhasnotbeensatisfactorilyresolvedresultinginabreachofBursaSecuritiesListingRequirements,theAuditCommitteemustpromptlyreportsuchmattertoBursaSecurities;and

iii. CarryingoutanyotherfunctionsthatmaybemutuallyagreeduponbytheAuditCommitteeandtheBoard.

4. SUMMARY OF ACTIVITIES OF THE COMMITTEE DURING THE YEAR TheACmettwo(2) timesduringthefinancialyearended31December2011.TheactivitiesoftheACforthe

financialyearwereasfollows:

i. Review the quarterly financial results announcements and year end financial statements of the Group,focusingparticularlyon:

• theoverallperformanceoftheGroup • theprospectsfortheGroup • theimplementationofmajoraccountingpoliciesandpractices • compliancewithaccountingstandardsandotherlegalrequirementsii. DiscussedsignificantauditfindingsinrespectofthefinancialstatementsoftheGroupwithExternalAuditorsiii. ReviewedandapprovedtheInternalAuditDepartmentresourcerequirements,programmesandplansfor

thefinancialyeartoensureadequotecoverageovertheactivitiesoftherespectivesubsidiaries.iv. ReviewedanddiscussedwiththeInternalAuditorsonkeyriskssummarisedintheRiskProfileonthecontrols

andmanagementactionplansarefunctioningeffectivelytomitigatetherisks.v. ReviewedtherelatedpartytransactionsenteredintobytheCompanyandtheGroup.

AuditCommitteeReport(Cont’d)


STATEMENT OF INTERNAL CONTROL

ThisStatementonInternalControlismadepursuanttotheListingRequirementsofBursaMalaysiaSecuritiesBerhadandincompliancewiththeMalaysianCodeofCorporateGovernance.

TheBoardiscommittedtomaintainasoundsystemofinternalcontrolandispleasedtoprovidethisStatementonInternalControlwhichoutlinesthenatureandscopeofinternalcontroloftheGroupduringtheyearunderreview.

BOARD RESPONSIBILITY

TheBoardisultimatelyresponsiblefortheGroup’soverallsystemofcorporategovernanceincludingriskmanagementandinternalcontrols,financialorotherwisewhich:

- ProvidesreasonableassuranceontheachievementoftheGroup’sobjectives;and- Ensurestheeffectivenessandtheefficiencyofoperations,reliabilityoffinancialinformationandcompliancewith

lawsandregulations.

TheBoard recognises that reviewing theGroup’ssystemof internalcontrols isaconcertedandongoingprocess,designedtomanage,ratherthaneliminatetheriskoffailuretoachievecorporateobjectives.Accordingly,itcanprovideonly reasonablebutnotabsoluteassuranceagainstmaterialmisstatementor loss.Thesystemof internalcontrolsinclude,inter-alia,financial,budgetary,organizational,operationalandcompliancecontrols.

Internal Audit Function

The internalaudit function isundertakenby the InternalAuditDepartmentof theultimateholdingcompanyof theManager,UnitedOverseasAustraliaLimited(“UOALIA”).TheAuditCommitteeassistedbyUOALIA,providestheBoardwiththeassuranceitrequiresontheadequacyandintegrityofthesystemofinternalcontrol.TheAuditCommitteehasanoversightfunctionofallactivitiescarriedoutbyUOALIA.TheprincipalroleofUOALIAistoindependentlyreviewtheinternalcontrolsoftheGroupareappropriateforitsbusinessandoperatingasintended,aframeworkofcontrolsareinplacetomanagerisksandmanagementresponsestotheserisksareacceptable.

UOALIAengagesinregularcommunicationwiththemanagementteamandvariousdepartmentswithintheorganisationinrelationtoitsinternalauditactivitiesandeffortsforcontinuousimprovementinoperationsandsystems.ScheduledinternalauditsarecarriedoutbytheinternalauditorsbasedontheauditplanpresentedtoandapprovedbytheAuditCommittee.Duringinternalauditassignments,theInternalAuditDepartmentalsoundertook,whereverrelevant,thefollowing:

- Assessmentofoperatingefficiencies;- Regularandcomprehensiveinformationprovidedtomanagement,coveringfinancialandoperationalperformance

andkeybusinessindicators,foreffectivemonitoringanddecisionmaking;and- EnsuringcompliancewiththeGroup’spoliciesandrelevantlegislations.

Onaquarterlybasis,theinternalauditorsreporttotheAuditCommitteeonareasforimprovementandwillsubsequentlyfollowuptodeterminetheextentoftheirrecommendationsthathavebeenimplemented.

The Board’s Commitment

TheBoardiscommittedtowardsmaintainingasoundsystemofinternalcontrolandisoftheviewthatthecurrentsystemof internalcontrol isresponsivetothebusinessenvironmentoftheGroup. Inaddition,theBoardisoftheviewthattheGroupcouldattainitsbusinessobjectiveandoperationalefficiencybycontinuouscommitmenttowardsasoundsystemofinternalcontrol.TheBoardcontinuestotakemeasurestoenhancethesystemofinternalcontrol.


ADDITIONAL COMPLIANCE INFORMATION

Utilisation of Proceeds from Initial Public Offering (IPO) is as follows:

Expected Time Frame Proposed Actual for Utilisation from Date Utilisation Utilisation Purpose of Listing RM’000 RM’000

Repaymentofintercompanyborrowings Within12months 365,911 365,334

Repaymentofbankborrowings Within12months 95,059 86,367

Workingcapitalrequirementsand generalcorporatepurposes Within12months 260,230 272,265

Estimatedlistingexpenses Within12months 25,000 22,234

746,200 746,200

Share Buy Backs

TheCompanydidnotcarryoutanysharebuybackexercisesduringthefinancialyearended31December2011.

Options, Warrants or Convertible Securities

Therewerenooptionsgrantedandconvertiblesecuritiesissuedduringthefinancialyearended31December2011.

American Depository Receipts (ADR) or Global Depository Receipts (GDR)

TherewerenoADRorGDRsponsoredbytheCompanyduringthefinancialyearended31December2011.

Sanctions and/or Penalties

There were no public sanctions and/or penalties imposed on the Company and its subsidiaries, Directors andManagementbytherelevantregulatorybodiesduringthefinancialyearended31December2011.

Non-Audit Fees

Non-auditfeespaid/payabletoExternalAuditorsoftheCompanyanditssubsidiariesforthefinancialyearended31December2011amountedtoRM180,000inrespectofservicesfortheInitialPublicOfferingoftheCompany.

Theprovisionofnon-auditservicesbytheExternalAuditorstotheGroupisbothcosteffectiveandefficientduetotheirknowledgeandunderstandingoftheoperationsoftheGroup,anddidnotcompromisetheirindependenceandobjectivity.

Variation in Results

Therewerenoprofitestimations,forecastsandprojectionsmadeorreleasedbytheCompanyduringthefinancialyearended31December2011.


Profit Guarantee

There were no profit guarantees given by the Company and its subsidiaries during the financial year ended31December2011.

Material Contracts

Therewerenomaterial contractsentered intoby theCompanyand itssubsidiaries involvingdirectors’andmajorshareholders’interestwhichwerestillsubsistingasattheendofthefinancialyearunderrevieworwhichwereenteredintosincetheendofthepreviousfinancialyearexceptasdisclosedinProspectusdated18May2011andnote42ofthefinancialstatements.

Statement on Employees Share Option Scheme (“ESOS”)

TheCompanydidnothaveanyESOSinplacefortheyearended31December2011.

Recurrent Related Party Transactions

BursaSecuritieshadviaaletterdated21June2011grantedtheCompanyextensionoftimefrom8June2011,beingthedateofadmissionofUOADevelopmenttotheOfficialListofBursaSecurities,tothenextannualgeneralmeetingorextraordinarygeneralmeetingoftheCompanytoobtainshareholders’ratificationandshareholders’mandateforRecurrentRelatedPartyTransactionsenteredandtobeenteredintobytheCompanyanditssubsidiariespursuanttoParagraph10.09oftheBursaSecuritiesMainMarketListingRequirements.

AdditionalComplianceInformation(Cont’d)

FINANCIALSTATEMENTS34 CorporateInformation

35 Directors’Report

40 IndependentAuditor’sReport

42 StatementsofFinancialPosition

44 Statementsof ComprehensiveIncome

45 StatementsofChangesinEquity

47 StatementsofCashFlows

50 Notestothe FinancialStatements

103 StatementbyDirectors

104 StatutoryDeclaration


DOMICILE Malaysia

LEGAL FORM AND PubliccompanylimitedbywayofsharesPLACE OF INCORPORATION incorporatedinMalaysiaundertheCompaniesAct,1965

REGISTERED OFFICE No.9,JalanIndah16 TamanCherasIndah 56100KualaLumpur

PRINCIPAL PLACE OF BUSINESS WismaUOABangsarSouth Tower1,Avenue3,TheHorizon BangsarSouth No.8,JalanKerinchi 59200KualaLumpur

CORPORATEINFORMATION


Thedirectorshavepleasure insubmittingtheir reportandtheauditedfinancialstatementsof theGroupandof theCompanyforthefinancialyearended31December2011.

PRINCIPAL ACTIVITIES

TheprincipalactivityoftheCompanyisinvestmentholding.Theprincipalactivitiesofthesubsidiarycompaniesareindicatedinnote5tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

RESULTS

Group Company RM’000 RM’000

ProfitattributabletoshareholdersoftheCompany 384,806 8,363

DIVIDENDS

NodividendwaspaidbytheCompanyduringthefinancialyear.

Thedirectorsnowrecommendafirstandfinalsingletierdividendinrespectofthefinancialyearended31December2011,of10senperordinaryshare,amountingtoRM119,586,000basedonthepaid-upsharecapitalasat31December2011,forshareholders’approvalattheforthcomingAnnualGeneralMeeting.

Thefinancialstatementsforthecurrentfinancialyeardonotreflectthisproposeddividend.Suchdividend,ifapprovedbytheshareholders,willbeaccountedforinthestatementsofchangesinequityasanappropriationofretainedprofitsinthefinancialyearending31December2012.

RESERVES AND PROVISIONS

Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearexceptasdisclosedonpages45and46ofthefinancialstatements.

ISSUE OF SHARES AND DEBENTURES

Duringthefinancialyear,theCompanyundertookthefollowing:

(a) On26April2011,theCompanyincreaseditsissuedandpaid-upsharecapitalbytheissuanceof1,688,180newordinarysharesofRM1.00eachatanissuepriceofRM11.00persharetosatisfythetotalpurchaseconsiderationof RM18,569,980 payable by the Company for the acquisition of 195,000 ordinary shares of RM1.00 each inEveriseProjectSdnBhdrepresenting39%oftheissuedandpaid-upsharecapitalofEveriseProjectSdnBhd.

(b) On 26 April 2011, the Company cancelled its entire authorised share capital of RM50,000,000 comprising50,000,000sharesofRM1.00each.Accordingly,theCompanyreplacedRM50,000,000comprising1,000,000,000sharesofRM0.05each.

In addition to the above, the Company created new authorised share capital of RM50,000,000 comprising1,000,000,000sharesofRM0.05each.

DIRECTORS’REPORT


Directors’Report(Cont’d)

ISSUE OF SHARES AND DEBENTURES (Cont’d)

(c) Accordingly,theissuedandpaid-upsharecapitaloftheCompanycomprising45,443,000shareswithparvalueRM1.00eachwascancelledandreplacedwith908,860,000shareswithparvalueRM0.05eachon26April2011.

(d) InconjunctionwiththeInitialPublicOffering(IPO),apublicissueof287,000,000newordinarysharesofRM0.05wasissuedatanissuepriceofRM2.60.

Therewerenodebenturesissuedduringtheyear.DIRECTORS

Thedirectorsinofficesincethedateofthelastreportare:TanSriDato’AlwibinJantan KongChongSoon@ChiSuim KongPakLimTanChokKianAlphonsus AlanCharlesWinduss

DIRECTORS’ INTERESTS IN SHARES

ThefollowingdirectorshadaninterestinsharesintheCompanyanditsrelatedcorporationsrequiredtobedisclosedinaccordancewithSection169(6)(g)oftheCompaniesAct,1965,asfollows:

Number of ordinary shares At Share 1.1.2011 split @ RM0.05 each @ RM1.00 @ RM0.05 AtThe Company each each Acquired Disposed 31.12.2011

Direct interest

-TanSriDato’AlwibinJantan - - 700,000 - 700,000

-AlanCharlesWinduss - - 100,000 - 100,000

-TanChokKianAlphonsus - - 300,000 - 300,000

Indirect interest

-KongChongSoon@ChiSuim 2,187,740 43,754,772 760,186,568 - 803,941,340

-KongPakLim 2,187,739 43,754,771 760,091,549 - 803,846,320


DIRECTORS’ INTERESTS IN SHARES (Cont’d)

Number of ordinary shares United Overseas Australia Ltd At At(Holding company) 1.1.2011 Acquired Disposed 31.12.2011

Direct interest

-KongPakLim 354,876 15,025 - 369,901

-TanSriDato’AlwibinJantan 5,059,667 214,223 - 5,273,890

-AlanCharlesWinduss 13,065 554 - 13,619

-TanChokKianAlphonsus 319,359 93,522 - 412,881

Indirect interest

-KongChongSoon@ChiSuim 669,823,266 28,347,466 - 698,170,732

-KongPakLim 514,438,505 21,461,941 - 535,900,446

-AlanCharlesWinduss 1,440,281 60,980 - 1,501,261

Byvirtueoftheabovedirectors’interestinsharesinUnitedOverseasAustraliaLtd,theyaredeemedtobeinterestedinsharesinallthesubsidiarycompaniesofUnitedOverseasAustraliaLtdtotheextentthatUnitedOverseasAustraliaLtdhasaninterest.

DIRECTORS’ BENEFITS

Sincetheendofthepreviousfinancialyear,nodirectoroftheCompanyhasreceivedorbecomeentitledtoreceiveanybenefitbyreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterestexceptforanybenefitswhichmaybedeemedtohavearisenfromthefollowingtransactionswhichwerecarriedoutintheordinarycourseofbusiness:

(a) SalesofpropertiesbysubsidiarycompaniestotalingtoRM3,429,769toKongPakLim;(b) SalesofpropertiesbysubsidiarycompaniestotalingtoRM2,012,492toKongChongSoon@ChiSuim;and(c) SalesofpropertiesbysubsidiarycompanytotalingtoRM398,398toTransmetroSdnBhd,acompanyinwhich

KongChongSoon@ChiSuimhassubstantialfinancialinterest.

NeitherduringnorattheendofthefinancialyearwastheCompanyapartytoanyarrangementswhoseobjectistoenablethedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesin,ordebenturesof,theCompanyoranyotherbodycorporate.



OTHER STATUTORY INFORMATION

(a) Beforethestatementsofcomprehensive incomeandstatementsoffinancialpositionoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablesteps:

(i) toascertaintheactiontakeninrelationtothewritingoffofbaddebtsandthemakingofallowancefordoubtful

debtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandadequateallowancehadbeenmadefordoubtfuldebts;and

(ii) toensurethatanycurrentassetswhichwereunlikelytorealiseintheordinarycourseofbusinesstheirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.

(b) Atthedateofthisreport,thedirectorsarenotawareofanycircumstances:

(i) whichwouldrendertheamountwrittenoffforbaddebtsortheamountoftheallowancefordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent,or

(ii) whichwouldrenderthevaluesattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading,or

(iii) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

(c) Atthedateofthisreport,theredoesnotexist:

(i) anychargeontheassetsoftheCompanyoritssubsidiarycompanieswhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson,or

(ii) anycontingentliabilityoftheCompanyoritssubsidiarycompanieswhichhasarisensincetheendofthefinancialyear.

(d) NocontingentorotherliabilityoftheCompanyoritssubsidiarycompanieshasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,intheopinionofthedirectors,willormayaffecttheabilityoftheCompanyoritssubsidiarycompaniestomeettheirobligationsasandwhentheyfalldue.

(e) Atthedateofthisreport,thedirectorsarenotawareofanycircumstances,nototherwisedealtwithinthisreportor the financial statements of the Group and of the Company which would render any amount stated in therespectivefinancialstatementsmisleading.

(f) Intheopinionofthedirectors:

(i) theresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;and

(ii) therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.



ULTIMATE HOLDING COMPANY

The directors regard United Overseas Australia Ltd, a company incorporated in Australia, as the ultimate holdingcompany.

AUDITORS

Theauditors,Mazars,CharteredAccountants,haveexpressedtheirwillingnesstocontinueinoffice.

Signedbythedirectorsinaccordancewithadirectors’resolutiondated28March2012

KONG PAK LIM KONG CHONG SOON @ CHI SUIM Director Director



Report on the Financial Statements

We have audited the financial statements of UOA Development Bhd, which comprise the statements of financialpositionasat31December2011oftheGroupandoftheCompany,andthestatementsofcomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages42to102.

Directors’ Responsibility for the Financial Statements

ThedirectorsoftheCompanyareresponsibleforthepreparationofthesefinancialstatementsthatgiveatrueandfairviewinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysia,andforsuchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.

Auditors’ Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements. The procedures selected depend on our judgement, including the assessment of risks of materialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivesatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelieve that theauditevidencewehaveobtained issufficientandappropriate toprovideabasis forourauditopinion.Opinion

Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof31December2011andoftheirfinancialperformanceandcashflowsfortheyearthenended.

INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF UOA DEVELOPMENT BHD (Incorporated in Malaysia)


Report on Other Legal and Regulatory Requirements

InaccordancewiththerequirementsoftheCompaniesAct1965inMalaysia,wealsoreportthefollowing:

(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiariesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

(b) WearesatisfiedthatthefinancialstatementsofthesubsidiariesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

(c) Our auditors’ reports on the financial statements of the subsidiaries did not contain any qualification or anyadversecommentmaterialtotheconsolidatedfinancialstatementsanddidnotincludeanyadversecommentrequiredtobemadeunderSection174(3)oftheAct.

Other Reporting Responsibilities

ThesupplementaryinformationsetoutinNote50isdisclosedtomeettherequirementofBursaMalaysiaSecuritiesBerhadandisnotpartofthefinancialstatements.TheDirectorsoftheCompanyareresponsibleforthepreparationof thesupplementary information inaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements, as issued by the Malaysian Institute of Accountants (“MIA Guidance”) and the directive of BursaMalaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

Other Matters

ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

MAZARS YAP CHING SHIN No.AF:1954 No.2022/03/12(J)CharteredAccountants CharteredAccountant

Kuala LumpurDate:28March2012

IndependentAuditors’Report(Cont’d)


Group Company Note 2011 2010 2011 2010

RM’000 RM’000 RM’000 RM’000

ASSETS

Non-current assets

Property,plantandequipment 2 56,647 50,932 2,376 -

Investmentproperties 3 647,062 354,783 - -

Landheldforpropertydevelopment 4 81,962 78,343 - -

Investmentinsubsidiarycompanies 5 - - 49,019 48,171

Investmentinanassociatecompany 6 19,052 - 18,570 -

Amountowingbyanassociatecompany 7 3,111 - 3,111 -

Available-for-salefinancialassets 8 21,651 26,797 - -

Deferredtaxassets 9 15,544 8,929 - -

Total non-current assets 845,029 519,784 73,076 48,171

Current assets

Propertydevelopmentcosts 10 420,445 335,192 - -

Inventories 11 332,686 184,069 - -

Accruedbillings 12 111,021 69,114 - -

Tradeandotherreceivables 13 144,152 119,275 10,526 170

Amountowingbyimmediateholdingcompany 14 - 22,036 - 9,970

Amountsowingbysubsidiarycompanies 15 - - 679,476 96,308

Amountsowingbyrelatedcompanies 16 - 2,465 - 7

Currenttaxasset - - 65 -

Shortterminvestments 17 165,631 1,423 151,311 -

Fixeddepositswithlicensedfinancialinstitutions 18 68,184 12,517 4,503 3,500

Cashandbankbalances 19 53,629 24,256 894 43

Total current assets 1,295,748 770,347 846,775 109,998

TOTAL ASSETS 2,140,777 1,290,131 919,851 158,169

STATEMENTS OF FINANCIAL POSITIONAS AT 31 DECEMBER 2011


EQUITY AND LIABILITIES Group Company Note 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Equity

Sharecapital 20 59,793 43,755 59,793 43,755

Sharepremium 21 726,498 - 726,498 -

Mergerreserve 22 2,252 2,252 - -

Fairvaluereserve 23 3,557 5,895 - -

Unappropriatedprofit 1,013,814 629,008 122,402 114,039

EquityattributabletoownersoftheCompany 1,805,914 680,910 908,693 157,794

Non-controllinginterests 39,317 21,059 - -

Total equity 1,845,231 701,969 908,693 157,794

Non-current liabilities

Amountsowingtonon-controllingshareholdersofsubsidiarycompanies 24 57,997 36,948 - -

Hirepurchaseandfinanceleaseliabilities 25 5,791 2,540 990 -

Longtermborrowing 26 2,065 2,065 - -

Deferredtaxliability 27 20,450 10,498 - -

Total non-current liabilities 86,303 52,051 990 -

Current liabilities

Progressbillings 12 20,823 20,385 - -

Tradeandotherpayables 28 171,707 139,690 7,858 375

Amountowingtoimmediateholdingcompany 14 1,795 211,638 1,795 -

Amountsowingtorelatedcompanies 16 129 10,124 129 -

Hirepurchaseandfinanceleaseliabilities 25 3,299 2,374 386 -

Shorttermborrowings 29 5,307 149,432 - -

Currenttaxliabilities 6,183 2,468 - -

Total current liabilities 209,243 536,111 10,168 375

Total liabilities 295,546 588,162 11,158 375

TOTAL EQUITY AND LIABILITIES 2,140,777 1,290,131 919,851 158,169

Notestoandformingpartofthefinancialstatementsaresetoutonpages50to102Auditors’Report-Pages40to41

StatementsofFinancialPosition(Cont’d)


STATEMENTS OFCOMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2011

Group Company Note 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Revenue 30 613,596 375,229 6,667 33,188

Costofsales 31 (297,870) (196,545) - -

Grossprofit 315,726 178,684 6,667 33,188

Fairvalueadjustmentoninvestmentproperties 205,136 178,250 - -

Otherincome 35,445 21,444 25,334 4

Administrativeandgeneralexpenses (63,968) (39,248) (20,790) (691)

Otherexpenses (6,725) (3,946) - -

Financecosts 32 (4,038) (2,762) (871) -

Shareofresultsofassociate 222 - - -

Profitbeforetax 33 481,798 332,422 10,340 32,501

Taxexpense 34 (78,887) (52,785) (1,977) (3,034)

Profitfortheyear 402,911 279,637 8,363 29,467

Othercomprehensiveincome,netoftax

Fairvalueadjustmentonavailable-for-salefinancialassets(Loss)/Gainonfairvaluechanges (1,906) 3,930 - -

Transfertoprofitorlossupondisposal (432) - - -

Totalcomprehensiveincomefortheyear 400,573 283,567 8,363 29,467

Profitattributableto:

OwnersoftheCompany 384,806 272,491

Non-controllinginterests 18,105 7,146

402,911 279,637

Totalcomprehensiveincomeattributableto:

OwnersoftheCompany 382,468 276,421

Non-controllinginterests 18,105 7,146

400,573 283,567

Basicearningperordinaryshare(RM) 35 0.36 0.36



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Unappro- Share Share priated Note capital premium profit TotalCompany RM’000 RM’000 RM’000 RM’000

Balanceat1January2010 37,737 - 87,202 124,939

Issuanceofsharesforacquisitionofsubsidiarycompanies 20 6,018 - - 6,018

Totalcomprehensiveincomefortheyear - - 29,467 29,467

Dividends 35 - - (2,630) (2,630)

Balanceat31December2010 43,755 - 114,039 157,794

Issuanceofshares 20 16,038 726,498 - 742,536

Totalcomprehensiveincomefortheyear - - 8,363 8,363

Balanceat31December2011 59,793 726,498 122,402 908,693


StatementsofChangesinEquity(Cont’d)


Group Company 2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIES

Profitbeforetax 481,798 332,422 10,340 32,501

Adjustmentsfor:

Fairvalueadjustmentoninvestmentproperties (205,136) (178,250) - -

Badanddoubtfuldebts (2,429) 7,930 - -

Depreciation 6,355 5,054 316 -

Gainondisposalofproperty,plantandequipment (210) (205) - -

Property,plantandequipmentwrittenoff 4 2 - -

Discountonacquisitionofadditionalsharesinasubsidiarycompany - (1) - -

Discountonacquisitionofsharesinanassociatedcompany (260) - - -

Lossondisposalofsubsidiarycompanies - 998 - 629

Gainondisposalofavailable-for-salefinancialassets (546) (34) - -

Impairmentlossonavailable-for-salefinancialassets - 3,552 - -

DistributionfromUOAREIT (1,617) (1,950) - -

Distributionincomefromshortterminvestments (3,650) (493) (3,419) (1)

Dividendincome - - (6,667) (33,188)

Interestincome (6,983) (3,807) (1,014) (3)

Interestexpense 4,038 2,762 871 -

Shareofprofitofassociate (222) - - -

Operatingprofit/(loss)beforeworkingcapitalchanges 271,142 167,980 427 (62)

Netchangesinreceivables (261,036) (201,842) (18,690) (167)

Netchangesinpayables 26,513 69,518 9,407 (214)

Cashgeneratedfrom/(usedin)operations 36,619 35,649 (8,856) (443)

Interestreceived 643 526 - -

Dividendreceived - - 5,000 30,155

Taxpaid (71,835) (52,677) (375) -

Cash(usedin)/generatedfromoperatingactivities (34,573) (16,502) (4,231) 29,712

STATEMENTS OFCASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2011



CASH FLOWS FROM INVESTING ACTIVITIES

Additionstoinvestmentproperties(see note 37) (83,451) (88,052) - -

Purchaseofproperty,plantandequipment(see note 38) (5,379) (3,332) (1,010) -

Purchaseoflandheldforpropertydevelopment (42,325) (20,656) - -

Proceedsfromdisposalofproperty,plantandequipment 525 233 - -

Acquisitionofsharesinexistingsubsidiarycompanies 153 (10) (848) (250)

Netcashoutflowfromdisposalofsubsidiarycompanies (see note 39) - (874) - -

Proceedsfromdisposalofavailable-for-salefinancialassets 3,354 192 - -

Repaymentfrom/(Advancesto)immediateholdingcompany 22,036 (22,035) 9,970 (9,970)

(Advancesto)/Repaymentfromsubsidiarycompanies - - (574,671) 4,576

Repaymentfrom/(Advancesto)relatedcompanies 2,465 (89) 7 (7)

Advancestoanassociatedcompany (3,781) - (3,781) -

Distributionreceivedfromshortterminvestments 3,616 509 3,419 1

DistributionfromUOAREIT 1,617 1,950 - -

Interestreceived 1,160 113 703 3

Netcashusedininvestingactivities (100,010) (132,051) (566,211) (5,647)

StatementsofCashFlows(Cont’d)



CASH FLOWS FROM FINANCING ACTIVITIES

Drawdownonbanktermloans 46,169 214,802 - -

Repaymentofbanktermloans (190,294) (102,060) - -

Fixeddepositpledgedtosecurebankloan(see note 29) (9) (354) - -

Repaymentofhirepurchaseandfinanceleaseliabilities (3,216) (2,232) (306) -

Repaymenttoultimateholdingcompany - (360) - -

(Repaymentto)/Advancesfromimmediateholdingcompany (202,898) 64,001 - -

Repaymenttorelatedcompanies (10,124) (34,668) - (18,651)

Advancesfromnon-controllingshareholdersofsubsidiarycompanies 23,319 12,495 - -

Interestpaid (3,091) (4,611) (53) -

DividendpaidtoownersoftheCompany - (29,630) - (2,630)

Dividendspaidtonon-controllingshareholdersofsubsidiarycompanies - (13,985) - -

ProceedsfromInitialPublicOfferingnetoflistingexpenses 723,966 - 723,966 -

Netcashgeneratedfrom/(usedin)financingactivities 383,822 103,398 723,607 (21,281)

NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS 249,239 (45,148) 153,165 2,784

CASHANDCASHEQUIVALENTSBROUGHTFORWARD 37,842 82,990 3,543 759

CASHANDCASHEQUIVALENTSCARRIEDFORWARD 287,081 37,842 156,708 3,543

Representedby:Shortterminvestments 165,631 1,423 151,311 -

Fixeddepositswithlicensedfinancialinstitutions 68,184 12,517 4,503 3,500

Cashandbankbalances 53,629 24,256 894 43

287,444 38,196 156,708 3,543

Fixeddepositpledgedtosecurebankborrowings (363) (354) - -

287,081 37,842 156,708 3,543


StatementsofCashFlows(Cont’d)


1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation ThefinancialstatementscomplywithapplicableapprovedFinancialReportingStandards(“FRSs”),issued

bytheMalaysianAccountingStandardsBoard(“MASB”)andwiththeprovisionoftheCompaniesAct,1965.

Themeasurementbasesappliedinthepreparationofthefinancialstatementsincludecost,recoverablevalue,realisablevalue,revaluedamountandfairvalue.Estimatesareusedinmeasuringthesevalues.

TheconsolidatedfinancialstatementsarepresentedinRinggitMalaysia(“RM”),whichisalsotheGroup’sfunctionalcurrency.Unlessotherwise indicated, theamounts in thesefinancial statementshavebeenroundedtothenearestthousand.

(b) Changes in accounting policies

ThesignificantaccountingpoliciesadoptedbytheGroupandtheCompanyareconsistentwiththoseofthepreviousfinancialyearexceptfortheadoptionofthefollowingnew/revisedFRSsandAmendmentstoFRSsandIssuesCommitteeInterpretation(“ICInterpretation”)thatarerelevanttoitsoperations,effectivefromfinancialperiodsbeginningonorafter:

1 March 2010 AmendmentstoFRS132 FinancialInstruments:Presentation 1 July 2010 FRS1 First-timeAdoptionofFinancialReportingStandards FRS3 BusinessCombinations(revised) FRS127 ConsolidatedandSeparateFinancialStatements(revised) AmendmentstoFRS5 Non-currentAssetsHeldforSaleandDiscountedOperations

AmendmentstoFRS138 IntangibleAssets ICInterpretation17 DistributionsofNon-cashAssetstoOwners AmendmentstoICInterpretation9 ReassessmentofEmbeddedDerivatives

1 January 2011 AmendmentstoFRS1 LimitedExemptionfromComparativeFRS7

DisclosuresforFirst-timeAdoptersAmendmentstoFRS1 AdditionalExemptionsforFirst-timeAdopters

AmendmentstoFRS7 ImprovingDisclosureaboutFinancialInstruments AmendmentstoFRSs ImprovementstoFRSs(2010) ICInterpretation4 DeterminingWhetheranArrangementcontainsaLease ICInterpretation18 TransfersofAssetsfromCustomers AmendmentstoICInterpretation13 CustomerLoyaltyProgrammes

NOTES TO THEFINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2011


1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

(b) Changes in accounting policies (Cont’d)

Theadoptionoftheabovenew/revisedFRSs,AmendmentstoFRSsandICInterpretationsdidnothavesignificantimpactontheGroupandtheCompanyexceptforthefollowing:

FRS 3 - Business Combinations (revised)

TherevisedFRS3introducestheoptiontomeasurethenon-controllinginterestsinabusinesscombinationeitheratfairvalueoratthenon-controllinginterests’proportionateshareofidentifiableassetsacquired.Goodwill on acquisition will be measured as the difference between the aggregate of fair value ofconsiderationtransferred,anynon-controllinginterestsintheacquireeandthefairvalueattheacquisitiondateofanypreviouslyheldequityinterestintheacquiree(ifacquiredvia“piecemealacquisition”),andthenetidentifiableassetsacquired.Anybargainpurchase(i.e.“negativegoodwill”)willberecogniseddirectlyintheincomestatement.Anyconsiderationtransferredistobemeasuredatfairvalueasoftheacquisitiondate.Allacquisition-relatedcostsareexpensedoffintheincomestatement.

FRS 127 – Consolidated and Separate Financial Statements (revised)

TherevisedFRS127requiresthattotalcomprehensiveincomemustbeproportionatelyallocatedtothenon-controllinginterest,evenifthenon-controllinginterestsareindeficitposition.Changeinownershipinterestwhichdoesnotresultinalossofcontrolisaccountedforwithinequity.Wherethechangesinownershipinterestresultsinlossofcontrol,anyremaininginterestintheformersubsidiaryisremeasuredatfairvalueandagainorlossisrecognisedintheincomestatement.

The changes in the revised FRS 3 and FRS 127 will be applied prospectively and only affect futureacquisitionorlossofcontrolofsubsidiariesandtransactionswithnon-controllinginterest.

(c) Standards issued that are not yet effective TheGroupandtheCompanyhavenotappliedthefollowingnew/revisedFRSs,AmendmentstoFRSsand

ICInterpretationsthathavebeenissuedbyMASBandrelevanttoitsoperationsbutarenotyeteffective:

Effective for financialNew/Revised FRSs, Amendments periods beginning to FRSs and IC Interpretation on or after

FRS124 RelatedPartyDisclosures(revised) 1January2012

AmendmentstoFRS7 Disclosures–TransfersofFinancialAssets 1January2012

AmendmentstoFRS101 PresentationofItemsofOtherComprehensiveIncome 1July2012

AmendmentstoFRS112 Deferredtax:RecoveryofUnderlyingAssets 1January2012

ICInterpretation19 ExtinguishingFinancialLiabilitieswithEquityInstruments 1July2011

NotestotheFinancialStatements(Cont’d)



(c) Standards issued that are not yet effective (Cont’d)

Malaysian Financial Reporting Standards (“MFRS”) On 19 November 2011, the Malaysian Accounting Standards Board (“MASB”) issued a new MASB

approvedaccountingframework,theMalaysianFinancialReportingStandards(“MFRS”).

TheMFRSistobeappliedbyallEntitiesOtherThanPrivateEntitiesforannualperiodsbeginningonorafter1January2012,withtheexceptionofentitiessubjecttotheapplicationofMFRS141AgricultureandICInterpretation15AgreementsforConstructionofRealEstate,includingitsparent,significantinvestorandventurer(hereinreferredtoas‘TransitioningEntities’).

TransitioningEntitieswillbeallowedtodeferadoptionofthenewMFRSforanadditionaloneyear,i.e.toannualperiodsbeginningonorafter1January2013afterwhichtheMFRSwillbecomemandatory.

TheGroupfallswithinthedefinitionofTransitioningEntitiesandhasoptedtodeferadoptionofthenewMFRS to 1 January 2013. Accordingly, the Group will be required to prepare its first MFRS financialstatements for the year ending 31 December 2013. In presenting its first MFRS financial statements,theGroupwillquantifythefinancialeffectsofthedifferencesbetweenthecurrentFRSandMFRS.Themajorityoftheadjustmentsrequiredontransitionwillbemade,retrospectively,againstopeningretainedprofits.

Accordingly,theconsolidatedfinancialperformanceandfinancialpositionasdisclosedinthesefinancialstatementsfortheyearended31December2011couldbedifferentifpreparedundertheMFRS.

Inaddition to theabove,MASBhas issuedthe followingnewMFRSsthatare relevant to theGroup’soperationsbutarenotyeteffective:

Effective for financial periods beginning New MFRSs on or after

MFRS9 FinancialInstruments 1January2013

MFRS10 ConsolidatedFinancialStatements 1January2013

MFRS11 JointArrangements 1January2013

MFRS12 DisclosuresofInterestsinOtherEntities 1January2013

MFRS13 FairValueMeasurement 1January2013

MFRS119 EmployeeBenefits 1January2013

MFRS127 SeparateFinancialStatements 1January2013

MFRS128 InvestmentsinAssociatesandJointVentures 1January2013



1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (d) Significant accounting judgements and estimates Thepreparationoffinancial statements requiresmanagement toexercise judgement in theprocessof

applyingtheaccountingpolicies.Italsorequirestheuseofaccountingestimatesandassumptionsthataffectreportedamountsofassetsandliabilitiesanddisclosuresofcontingentassetsandliabilitiesatthereportingdateandreportedamountsofincomeandexpensesduringthefinancialyear.

Although theseestimatesarebasedonmanagement’sbest knowledgeof current eventsandactions,historicalexperiencesandvariousotherfactors,includingexpectationsforfutureeventsthatarebelievedtobereasonableunderthecircumstances,actualresultsmayultimatelydifferfromtheseestimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimatesarerecognisedintheperiodinwhichtheestimatesarerevisedandinanyfutureperiodsaffected.

Critical judgement made in applying accounting policies

ThefollowingarejudgementsmadebymanagementintheprocessofapplyingtheGroup’saccountingpoliciesthathavethemostsignificanteffectonamountsrecognisedinthefinancialstatements:

Classification between investment properties and owner-occupied properties

TheGroupdetermineswhetherapropertyqualifiesasaninvestmentproperty,andhasdevelopedcertaincriteriabasedonFRS 140 Investment Propertyinmakingthatjudgement.

Inmakingitsjudgement,theGroupconsiderswhetherapropertygeneratescashflowslargelyindependently

ofotherassetsheldbytheGroup.Owner-occupiedpropertiesgeneratecashflowsthatareattributablenotonlytotheproperty,butalsotootherassetsusedintheproductionorsupplyprocess.

Somepropertiescompriseaportion that isheld toearn rentalor forcapital appreciationandanotherportionthatisheldforuseintheproductionorsupplyofgoodsandservicesorforadministrativepurposes.

If theseportionscouldbesold separately (or leasedout separatelyundera finance lease), theGroup

accountsfortheseportionsseparately.

If the portions could not be sold separately, the property is accounted for as an investment propertyonly ifan insignificantportion isheld foruse in theproductionorsupplyofgoodsandservicesor foradministrativepurposes.

Judgementismadeonanindividualpropertybasistodeterminewhetherancillaryservicesaresosignificantthatapropertydoesnotqualifyasinvestmentproperty.

Revenue recognition for property development activities and construction contracts

TheGrouprecognisesrevenuefrompropertydevelopmentactivitiesandconstructioncontractsbasedonthepercentageofcompletionmethod.Thestageofcompletionofthepropertydevelopmentactivitiesandconstructioncontractsismeasuredinaccordancewiththeaccountingpoliciessetoutbelow.



1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (d) Significant accounting judgements and estimates (Cont’d) Significant judgement is required in determining the percentage of completion, the extent of the

developmentprojectandcontractcosts incurred, theestimated total revenueand totalcostsand therecoverabilityofthedevelopmentprojectandcontractcost.Inmakingthesejudgements,managementreliesonpastexperienceand,ifnecessary,theworkofspecialists.

Key sources of estimation uncertainty

Thekeyassumptionsconcerningthefutureandotherkeysourcesassociatedwithestimationuncertaintyateachfinancialreportingdatethathasasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

Depreciation of property, plant and equipment

Property,plantandequipmentaredepreciatedonastraight-linebasis towriteoff theircosts to theirresidualvaluesovertheirestimatedusefullives.Managementestimatestheusefullivesofproperty,plantandequipmenttobebetween5and40years.

Changes intheexpected levelofusage,physicalwearandtearandtechnologicaldevelopmentcouldimpacttheeconomicusefullivesandresidualvaluesoftheseassets,andthereforefuturedepreciationchargescouldberevised.

Impairment loss and write down of inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.TheGroupestimatesthenetrealisablevalueofinventoriesbasedonanassessmentofexpectedsalesprices.

InventoriesarereviewedonaregularbasisandtheGroupwillmakeanimpairmentlossfortheinventoriesbased primarily on historical trends and management estimates of expected and future demand andrelatedpricing.

Demandlevels,technologicaladvancesandpricingcompetitioncouldchangefromtimetotime.IfsuchfactorsresultinanadverseeffectontheGroup’sinventories,theGroupmightberequiredtoreducethevalueofitsinventoriesandadditionalimpairmentlossesforinventoriesmayberequired.

Allowance for doubtful debts

Thecollectibilityofreceivablesisassessedonanongoingbasis.Anallowancefordoubtfuldebtsismadeforanyreceivablesconsideredtobedoubtfulofcollection.

Theallowancefordoubtfuldebtsismadebasedonareviewofalloutstandingamountsasatthefinancialreportingdate.Aconsiderableamountofjudgementisrequiredinassessingtheultimaterealisationofthesereceivables,includingthecreditworthinessandthepastcollectionhistoryofeachcustomer.Ifthefinancialconditionofcustomersweretodeteriorate,resulting inan impairmentoftheirabilitytomakepayments,additionalallowancesmayberequired.



1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (d) Significant accounting judgements and estimates (Cont’d) Income taxes

Significant judgement is involved in determining the capital allowances and deductibility of expensesduringtheestimationoftheprovisionforincometax.Therearecertaintransactionsandcomputationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.

TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

(e) Basis of consolidation

(i) Subsidiaries AsubsidiarycompanyisanentitycontrolledbytheCompany.ControlexistswhentheCompanyhas

thepower,directlyorindirectly,togovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertible,areconsideredwhenassessingwhethertheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofanotherentity.

IntheCompany’sseparatefinancialstatements, investmentinsubsidiarycompaniesarestatedatcostlessimpairmentlosses.Impairmentlossesarechargedtotheincomestatement.

On disposal, the difference between the net disposal proceeds and the carrying amount of the

subsidiarycompany’sconsolidatednetassetsdisposedistakentotheincomestatement.

(ii) Accounting for business combinations

TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandofallitssubsidiarycompaniesmadeuptotheendofthefinancialyear.Theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpoliciesforliketransactionsinsimilarcircumstances.

Allintra-groupbalances,transactionsandincomeandexpensesareeliminatedinfullonconsolidationandtheconsolidatedfinancialstatementsreflectexternaltransactionsonly.

Business combinations are accounted for using the acquisition method from the acquisitiondate,whichisthedateonwhichcontrol istransferredtotheGroup,exceptforAlliedEngineeringConstructionSdnBhd,URCEngineeringSdnBhdandUOAPropertiesSdnBhd(formerly known as UOA Properties Bhd),whichareconsolidatedusingthemergermethodofaccounting.

Underthemergermethodofaccounting,theresultsofentitiesorbusinessesundercommoncontrolareaccountedforasiftheacquisitionhadoccurredatthedatethatcommoncontrolwasestablished.Thecostofanacquisitionismeasuredatthenominalvalueofordinarysharesissuedasconsideration.Theassetsandliabilitiesacquiredareincludedintheconsolidatedstatementoffinancialpositionattheirexistingcarryingamounts.



1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (e) Basis of consolidation (Cont’d)

(ii) Accounting for business combinations (Cont’d)

Thedifferencebetweenthecostofacquisitionandthenominalvalueofsharesacquiredtogetherwithanysharepremiumaretakentomergerreserve(oradjustedagainstasuitablereserve,ifany,inthecaseofdebitdifferences).TheothercomponentsofequityoftheacquiredentitiesareaddedtothesamecomponentswithintheGroup.

Undertheacquisitionmethodofaccounting,thecostofanacquisitionismeasuredastheaggregate

of the fairvaluesof theassetsacquired, liabilitiesassumedandequity instruments issuedat thedateofexchange.Anyconsiderationtransferredistobemeasuredatfairvalueasoftheacquisitiondate. Non-controlling interest that are present ownership interests and entitle their holders to aproportionateshareoftheentity’snetassets intheeventof liquidationmaybe initiallymeasuredeitheratfairvalueoratthenon-controllinginterests’proportionateshareoftherecognizedamountsoftheacquiree’sidentifiablenetassets.Thechoiceofmeasurementbasisismadeonatransaction-by-transactionbasis.Othertypesofnon-controllinginterestsaremeasuredatfairvalueor,whenapplicable,onthebasisspecifiedinanotherFRS.Alltheacquisition-relatedcostsareexpensedofftoincomestatement.

Goodwillonacquisitionwillbemeasuredasthedifferencebetweentheaggregateoffairvalueofconsideration transferred, any non-controlling interests in the acquiree and the fair value at theacquisitiondateof anypreviouslyheldequity interest in theacquiree (if acquiredvia “piecemealacquisition”),andthenetidentifiableassetsacquired.Anybargainpurchase(i.e.“negativegoodwill”)willberecogniseddirectlyintheincomestatement.Goodwillisaccountedforinaccordancewiththeaccountingpolicysetoutinnote(o)below.

Non-controlling interests represent the equity in subsidiaries that are not attributable, directly orindirectly,toownersoftheCompany.Totalcomprehensiveincomeisattributedtonon-controllinginterestsevenifthisresultsinthenon-controllinginterestshavingadeficitposition.

Changeinownershipinterestwhichdoesnotresultinalossofcontrolisaccountedforwithinequity.Wherethechangesinownershipinterestresultsinlossofcontrol,anyremaininginterestintheformersubsidiaryisremeasuredatfairvalueandagainorlossisrecognisedintheincomestatement.

(f) Associate company Anassociatedcompany isanentity inwhich theGrouphassignificant influenceand that isneithera

subsidiarycompanynoraninterestinajointventure.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontroloverthosepolicies.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassignificantinfluence.

IntheCompany’sseparatefinancialstatements,investmentsinassociatedcompaniesarestatedatcostlessimpairmentlosses.Impairmentlossesarechargedtoincomestatement.

Ondisposal,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassociatedcompanydisposedistakentotheincomestatement.



1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (f) Associate company (Cont’d) Investment in associated company is accounted for in the consolidated financial statements by the

equitymethodofaccounting.Undertheequitymethod,theinvestmentinassociatedcompanyisinitiallyrecognisedatcostandadjustedthereafterforpost-acquisitionchangesintheGroup’sshareofnetassetsoftheassociatedcompany.

TheGroup’sshareofnetprofitsorlossesandchangesrecogniseddirectlyintheequityoftheassociatedcompanyisrecognisedintheconsolidatedprofitorlossandconsolidatedstatementofchangesinequity,respectively.

AninvestmentinanassociatedcompanyisaccountedforusingtheequitymethodfromthedateonwhichtheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociatedcompany.

Premiumrelatingtoanassociatedcompanyisincludedinthecarryingvalueoftheinvestmentanditisnottestedforimpairmentseparately.Instead,theentirecarryingamountoftheinvestmentistestedforimpairmentinaccordancewiththeaccountingpolicysetoutin(o)below.

DiscountonacquisitionisexcludedfromthecarryingamountoftheinvestmentandisinsteadincludedasincomeinthedeterminationoftheGroup’sshareoftheassociatedcompany’sprofitorlossintheperiodinwhichtheinvestmentisacquired.

UnrealisedgainsontransactionsbetweentheGroupanditsassociatedcompanyareeliminatedtotheextentoftheGroup’sinterestintheassociatedcompany.UnrealisedlossesarealsoeliminatedtotheextentoftheGroup’sinterest,unlessthetransactionprovidesevidenceofimpairmentoftheassettransferred.

Equityaccountingisdiscontinuedwhenthecarryingamountoftheinvestmentinanassociatedcompanydiminishesbyvirtueoflossestozero,unlesstheGrouphasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociatedcompany.

Theresultsandreservesofassociatedcompanyisaccountedforintheconsolidatedfinancialstatementsbased on audited financial statements made up to the end of the financial year and prepared usingaccountingpoliciesthatconformtothoseusedbytheGroupforliketransactionsinsimilarcircumstances.

(g) Property, plant and equipment

Recognition and measurement Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses,

ifany.Thecostofproperty,plantandequipmentincludesexpenditurethatisdirectlyattributabletotheacquisitionofanasset.

Dismantlement, removal or restoration costs are included as part of the cost of property, plant andequipmentiftheobligationfordismantlement,removalorrestorationiscontractedasaconsequenceofacquiringorusingtheasset.




(g) Property, plant and equipment (Cont’d)

Recognition and measurement (Cont’d)

Subsequentcostsareincludedintheasset’scarryingamountwhenitisprobablethatfutureeconomicbenefitsassociatedwith theassetwill flow to theGroupand thecostof theassetcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.

Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialyearinwhichthey are incurred. Property, plant and equipment are derecognised upon disposal or when no futureeconomicbenefitsareexpectedfromtheiruseordisposal.Ondisposal,thedifferencebetweenthenetdisposalproceedsandthecarryingamountisrecognisedintheincomestatement.

Depreciation

Freeholdlandisnotdepreciated. Depreciationiscalculatedtowriteoffthedepreciableamountofotherproperty,plantandequipmentona

straight-linebasisovertheirestimatedusefullives.Thedepreciableamountisdeterminedafterdeductingtheresidualvaluefromcost.

Theprincipalannualratesusedforthispurposeare: Buildings 2.5% Plant,machineryandmotorvehicles 10%-20% Furniture,fittingsandequipment 10% Theresidualvalues,usefullivesanddepreciationmethodsarereviewed,andadjustedifappropriate,at

theendofeachreportingperiod.

(h) Investment properties

Investmentpropertiesarepropertiesheldtoearnrentalincomeorforcapitalappreciationorbothratherthanforuseintheproductionorsupplyofgoodsandservicesorforadministrativepurposes,orsaleintheordinarycourseofbusiness.

Investment properties are measured initially at cost and subsequently at fair value with any changerecognisedintheincomestatement.

Investmentpropertiesarederecognisedupondisposalorwhentheyarepermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromtheirdisposal.Ondisposal,thedifferencebetweenthenetdisposalproceedsandthecarryingamountisrecognisedintheincomestatement.



1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d) (i) Leased assets

Finance lease

LeasesinwhichtheGroupassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Uponinitialrecognitiontheleasedassetismeasuredatanamountequaltothelowerofitsfairvalueandthepresentvalueoftheminimumleasepayments.

Minimumleasepaymentsmadeunderfinanceleasesareapportionedbetweenthefinanceexpenseandthereductionoftheoutstandingliability.Thefinanceexpenseisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliability.

Operating lease

LeaseswheretheGroupdoesnotassumesubstantiallyalltherisksandrewardsofownershipareclassifiedasoperatingleaseand,exceptforpropertyinterestsheldunderoperatinglease,theleasedassetsarenotrecognisedonthestatementoffinancialposition.Propertyinterestheldunderanoperatingleasewhichisheldtoearnrentalincomeorforcapitalappreciation,orboth,isclassifiedasinvestmentproperty.

Paymentsmadeunderoperatingleasesarerecognisedintheincomestatementonastraight-linebasisoverthetermofthelease.Leaseincentivesreceivedarerecognisedasanintegralpartofthetotalleaseexpense,overthetermofthelease.

(j) Development properties

Developmentpropertiesareclassifiedundertwocategoriesi.e.landheldforpropertydevelopmentandpropertydevelopmentcosts.

Land held for property development is defined as land on which development is not expected to becompletedwithinthenormaloperatingcycle.Usually,nosignificantdevelopmentworkwouldhavebeenundertakenonthese land.Accordingly, landheldforpropertydevelopment isclassifiedasnon-currentassetsonthestatementoffinancialpositionandisstatedatcostplusincidentalexpenditureincurredtoputthelandinaconditionreadyfordevelopment.

Landonwhichdevelopmenthascommencedandisexpectedtobecompletedwithinthenormaloperatingcycleisincludedinpropertydevelopmentcosts.Propertydevelopmentcostscompriseallcoststhataredirectly attributable to development activities or that can be allocated on a reasonable basis to suchactivities.

Where the outcome of a development can be reasonably estimated, revenue is recognised on thepercentageofcompletionmethod.Thestageofcompletion iseitherdeterminedbytheproportionthatcostsincurredtodatebeartoestimatedtotalcostsorsurveysofworkperformed.Inapplyingthecostincurredmethodofdeterminingstageofcompletion,onlythosecoststhatreflectactualdevelopmentworkperformedareincludedascostsincurred.




(j) Development properties (Cont’d)

Where the outcome of a development cannot be reasonably estimated, revenue is recognised to theextent of property development costs incurred that is probable will be recoverable, and the propertydevelopmentcostsonthedevelopmentunitssoldshallberecognisedasanexpense in theperiod inwhichtheyareincurred.

When it is probable that total costs will exceed total revenue, the foreseeable loss is immediately

recognisedintheincomestatementirrespectiveofwhetherdevelopmentworkhascommencedornot,orofthestageofcompletionofdevelopmentactivity,oroftheamountsofprofitsexpectedtoariseonotherunrelateddevelopmentprojects.

Theexcessofrevenuerecognisedintheincomestatementoverthebillingstopurchasersofpropertiesisrecognisedasaccruedbillingsundercurrentassets.

Theexcessofbillingstopurchasersofpropertiesoverrevenuerecognisedintheincomestatement is

recognisedasprogressbillingsundercurrentliabilities.

(k) Financial instruments

Afinancial instrument isanycontract thatgives rise tobothafinancialassetofoneenterpriseandafinancialliabilityorequityinstrumentofanotherenterprise.

Initial recognition and measurement

Afinancialinstrumentisrecognisedinthefinancialstatementswhen,andonlywhen,theGroupbecomesapartytothecontractualprovisionsoftheinstrument.

Afinancialinstrumentisrecognisedinitiallyatitsfairvalueplus,inthecaseofafinancialinstrumentnotatfairvaluethroughprofitorloss,transactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialinstrument.

Financial instrument categories and subsequent measurement

Financial assets

Financialassetsareclassifiedasfinancialassetsatfairvaluethroughprofitor lossorheld-to-maturityinvestmentsoravailable-for-salefinancialassetsorloansandreceivables,asappropriate.Managementdeterminestheclassificationofthefinancialassetsassetoutbelowuponinitialrecognition.TheGroupdoesnothaveanyheld-to-maturityfinancialassets.

Financial assets at fair value through profit or loss

Thiscategoryincludesfinancialassetsheldfortrading,includingderivatives(exceptforadesignatedandeffectivehedginginstrument)andfinancialassetsthatarespecificallydesignatedintothiscategoryuponinitialrecognition.Oninitialrecognition,thesefinancialassetsaremeasuredatfairvalue.

Thesubsequentmeasurementoffinancialassetsinthiscategoryisatfairvaluewithchangesinfairvaluerecognisedasgainsorlossesintheincomestatement.




(k) Financial instruments (Cont’d)

Available-for-sale financial assets

Available-for-salecategorycomprisesinvestmentinequityanddebtsecuritiesinstrumentsthatarenotheldfortrading.

Investments in equity instruments that do not have a quoted market price in an active market andwhosefairvaluecannotbereliablymeasuredaremeasuredatcost.Otherfinancialassetscategorisedasavailable-for-salearesubsequentlymeasuredattheirfairvalueswiththegainor lossrecognisedinothercomprehensiveincome,exceptforimpairmentlosses,foreignexchangegainsandlossesarisingfrommonetaryitemsandgainsandlossesofhedgeditemsattributabletofairvaluehedgeswhicharerecognisedintheincomestatement.Onderecognition,thecumulativegainorlossrecognisedinothercomprehensiveincomeisreclassifiedintoprofitorloss.Interestcalculatedforadebtinstrumentusingtheeffectiveinterestmethodisrecognisedintheincomestatement.

Loans and receivables

This category comprises debt instruments that are not quoted in an active market, trade and otherreceivablesandcashandcashequivalents.Theyare includedincurrentassets,exceptforthosewithmaturitiesgreaterthan12monthswhichareclassifiedasnon-currentassets.

Thesubsequentmeasurementoffinancialassetsinthiscategoryisatamortisedcostusingtheeffectiveinterestmethod,lessallowanceforimpairmentlosses.Anygainsorlossesarisingfromderecognitionor impairment,and through theamortisationprocessof loansandreceivablesare recognised in theincomestatement.

Allfinancialassets,exceptforthosemeasuredatfairvaluethroughprofitorloss,aresubjecttoreviewforimpairment.

Financial liabilities

Financialliabilitiesareclassifiedaseitherfinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesatamortisedcost.

Financialliabilitiesatfairvaluethroughprofitorlosscomprisefinancialliabilitiesthatareheldfortrading,derivatives (except for a designated and effective hedging instrument) and financial liabilities that arespecificallydesignatedintothiscategoryuponinitialrecognition.Thesefinancialliabilitiesaresubsequentlymeasuredattheirfairvalueswiththegainorlossrecognisedintheincomestatement.

All other financial liabilities are subsequently measured at amortised cost using the effective interestmethod.TheGrouponlyhasfinancialliabilitiescategorisedasfinancialliabilitiesatamortisedcostwhicharemeasuredusingtheeffectiveinterestmethod.




(k) Financial instruments (Cont’d)

Derecognition of financial assets and liabilities

Afinancialassetorpartofitisderecognisedwhen,andonlywhenthecontractualrightstothecashflowsfromthefinancialassetexpireorthefinancialassetistransferredtoanotherpartywithoutretainingcontrolorsubstantiallyallrisksandrewardsoftheasset.

Onderecognitionofafinancialasset, thedifferencebetweenthecarryingamountandthesumof theconsideration received together with any cumulative gain or loss that has been recognised in othercomprehensiveincomeisrecognisedintheincomestatement.

A financial liability or part of it is derecognised when, and only when, the obligation specified in thecontractisdischargedorcancelledorexpires.

Onderecognitionofafinancialliability,thedifferencebetweenthecarryingamountandtheconsiderationpaid,includinganynon-cashassetstransferredorliabilitiesassumed,isrecognisedintheincomestatement.

(l) Inventories

Inventories are statedat the lowerof cost andnet realisable value.Costof inventoriesof completedhousesheldforsaleisdeterminedbasedonthespecificidentificationmethod.

Netrealisablevaluerepresentstheestimatedsellingpriceintheordinarycourseofbusiness,lesssellinganddistributioncosts.

(m) Share capital

Ordinarysharesarerecordedatnominalvalueandproceedsreceivedinexcessofthenominalvalueofsharesissued,ifany,areaccountedforassharepremium.Bothordinarysharesandsharepremiumareclassifiedasequity.Costsincurreddirectlyattributabletotheissuanceofsharesareaccountedforasadeductionfromsharepremium,ifany,otherwisetheyarechargedtotheincomestatement.

Dividends on the ordinary shares, when declared or proposed by the Directors of the Company aredisclosedinthenotestothefinancialstatements.Uponapprovalandwhenpaid,suchdividendswillbeaccountedforintheshareholders’equityasanappropriationofunappropriatedprofitinthefinancialyearinwhichthedividendsarepaid.

(n) Income recognition

(i) Revenue from the sale of development properties represents the proportionate sales value ofdevelopmentpropertiessoldattributabletothepercentageofdevelopmentworkperformedduringthefinancialyear.

Revenue fromthesaleofcompleteddevelopmentproperties ismeasuredat the fairvalueof the

considerationreceivableandisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.

(ii) Revenue fromconstructioncontracts represents theproportionatecontractvalueofconstructioncontractsattributabletothepercentageofcontractworkperformedduringthefinancialyear.




(n) Income recognition (Cont’d) (iii) Distribution from short term investments is recognised when the right to receive payment is

established.

(iv) Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

(v) Interestincomeisrecognisedonatimeproportionbasis.

(vi) Rentalincomeisrecognisedonastraight-linebasisoverthespecifictenureoftherespectiveleases.Leaseincentivesgrantedarerecognisedasanintegralpartofthetotalrentalincome,overthetermofthelease.

(o) Impairment of non-financial assets Goodwill

Goodwill isreviewedannuallyforimpairment,ormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.

Forthepurposeofimpairmenttesting,goodwillisallocatedtoeachoftheGroup’scash-generatingunitsthatareexpectedtobenefitfromsynergiesofthebusinesscombination.

Animpairmentlossisrecognisedintheincomestatementwhenthecarryingamountofthecash-generatingunit,includingthegoodwill,exceedstherecoverableamountofthecash-generatingunit.Therecoverableamountofthecash-generatingunitisthehigherofthecash-generatingunit’sfairvaluelesscosttosellanditsvalueinuse.

Thetotalimpairmentlossisallocatedfirsttoreducethecarryingamountofgoodwillallocatedtothecash-generatingunitandthentotheotherassetsofthecash-generatingunitproportionatelyonthebasisofthecarryingamountofeachassetinthecash-generatingunit.

Impairmentlossrecognisedongoodwillisnotreversedintheeventofanincreaseinrecoverableamountinsubsequentperiods.

Property, plant and equipment, investment properties, land held for development and investment in associate and subsidiaries

Property, plant and equipment, investment properties, land held for development and investment inassociateandsubsidiariesareassessedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.

Ifsuchanindicationexists,theasset’srecoverableamountisestimated.Therecoverableamountisthehigherofanasset’sfairvaluelesscosttosellanditsvalueinuse.Valueinuseisthepresentvalueofthe futurecashflowsexpected tobederived fromtheassets.Recoverableamountsareestimated forindividualassetsor,ifitisnotpossible,forthecash-generatingunittowhichtheassetbelongs.

An impairment loss is recognisedwhenever thecarryingamountofanassetoracash-generatingunitexceedsitsrecoverableamount.Impairmentlossesarechargedtotheincomestatement.

Anyreversalofan impairment lossasa resultofasubsequent increase in recoverableamountshouldnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation,ifapplicable)hadnoimpairmentlossbeenpreviouslyrecognisedfortheasset.




(p) Impairment of financial assets

Allfinancialassetsexceptforfinancialassetscategorisedasfairvaluethroughprofitorlossareassessedateachreportingdateforanyobjectiveevidenceofimpairmentasaresultofoneormoreeventshavinganimpactontheestimatedfuturecashflowsoftheasset.Lossesexpectedasaresultoffutureevents,nomatterhowlikely,arenotrecognised.Foranequityinstrument,asignificantorprolongeddeclineinthefairvaluebelowitscostisobjectiveevidenceofimpairment.

Assets carried at amortised cost

Ifthereisobjectiveevidencethatanimpairmentlossonfinancialassetscarriedatamortisedcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset’soriginaleffectiveinterestrate.Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount.Theimpairmentlossisrecognisedintheincomestatement.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can berelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairment loss is reversed to the extent that the carrying amount of the asset does not exceed itsamortisedcostatthereversaldate.Theamountofreversalisrecognisedintheincomestatement.

Assets carried at cost

If there isobjectiveevidence thatan impairment lossonfinancialassetscarriedatcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthecurrentmarketrateofreturnforasimilarfinancialasset.

Suchimpairmentlossesarenotreversedinsubsequentperiods.

(q) Employee benefits

Short-term employee benefits

Wages,salaries,paidannual leave,paidsick leaveandbonusesarerecognisedasanexpense in theperiodinwhichtheassociatedservicesarerenderedbyemployeesotherthanthosethatareattributabletopropertydevelopmentactivitiesorconstructioncontractsinwhichcasesuchexpensesarerecognisedinpropertydevelopmentcosts

Post-employment benefits

TheGrouppaysmonthlycontributionstotheEmployeesProvidentFund(“theEPF”)whichisadefinedcontributionplan.

The legalorconstructiveobligationoftheGroup is limitedtotheamountthat it requirestocontributeto theEPF.Thecontributions to theEPFarecharged to the incomestatement in theperiod towhichtheyrelate.




(r) Borrowing costs

Thecapitalisationofborrowingcostsaspartofthecostofaqualifyingassetcommenceswhenborrowingcostsarebeing incurredandactivities that arenecessary toprepare theasset for its intendeduseorsale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially allthe activities necessary to prepare the qualifying asset for its intended use or sale are interrupted orcompleted.

Allotherborrowingcostsarechargedtotheincomestatementintheperiodinwhichtheyareincurred.Theinterestcomponentofhirepurchasepaymentsischargedtotheincomestatementoverthehirepurchaseperiod so as to give a constant periodic rate of interest on the remaining tenure of the hire purchaseliabilities.

Investmentincomeearnedonthetemporaryinvestmentofspecificborrowingspendingtheirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostseligibleforcapitalisation.

(s) Taxation

Thetaxexpenseinthestatementofcomprehensiveincomerepresentstheaggregateamountofcurrenttaxanddeferredtaxincludedinthedeterminationofprofitorlossforthefinancialyear.

Onthestatementoffinancialposition,adeferredtaxliabilityisrecognisedfortaxabletemporarydifferenceswhileadeferredtaxassetisrecognisedfordeductibletemporarydifferencesandunutilisedtaxlossesonlytotheextentthatitisprobablethattaxableprofitwillbeavailableinfutureagainstwhichthedeductibletemporarydifferencesandtaxlossescanbeutilised.

Nodeferredtaxisrecognisedfortemporarydifferencesarisingfromtheinitialrecognitionof:

(i) goodwill,or

(ii) anassetorliabilitywhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxassetsandliabilitiesaremeasuredbasedontaxconsequencesthatwouldfollowfromthemanner in which the asset or liability is expected to be recovered or settled, and based on tax ratesenactedorsubstantivelyenactedbythereportingdatethatareexpectedtoapplytotheperiodwhentheassetisrealisedorwhentheliabilityissettled.

Currenttaxanddeferredtaxarechargedorcrediteddirectlytoothercomprehensive incomeif thetaxrelatestoitemsthatarecreditedorcharged,whetherinthesameoradifferentperiod,directlytoothercomprehensiveincome.

(t) Cash and cash equivalents

Cashandcashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoinsignificantriskofchangesinvalue.




2. PROPERTY, PLANT AND EQUIPMENT

Plant, machinery Furniture,Group Leasehold Leasehold andmotor fittingsand 2011 building land vehicles equipment TotalCost RM’000 RM’000 RM’000 RM’000 RM’000

At1.1.2011 38,328 2,294 29,024 529 70,175

Additions - - 11,103 1,286 12,389

Disposals - - (2,311) - (2,311)

Write-offs - - (62) - (62)

At31.12.2011 38,328 2,294 37,754 1,815 80,191

Accumulateddepreciation

At1.1.2011 2,525 93 16,499 126 19,243

Chargefortheyear 958 23 5,202 172 6,355

Disposals - - (1,996) - (1,996)

Write-offs - - (58) - (58)

At31.12.2011 3,483 116 19,647 298 23,544

Netcarryingamountat31.12.2011 34,845 2,178 18,107 1,517 56,647

2010

At1.1.2010 38,328 2,294 25,613 235 66,470

Additions - - 4,316 295 4,611

Disposals - - (873) - (873)

Write-offs - - (32) (1) (33)

At31.12.2010 38,328 2,294 29,024 529 70,175


At1.1.2010 1,567 70 13,341 87 15,065

Chargefortheyear 958 23 4,033 40 5,054

Disposals - - (845) - (845)

Write-offs - - (30) (1) (31)

At31.12.2010 2,525 93 16,499 126 19,243

Netcarryingamountat31.12.2010 35,803 2,201 12,525 403 50,932


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

Furniture,Company Motor fittingsand2011 vehicles equipment TotalCost RM’000 RM’000 RM’000

At1.1.2011 - - -

Additions 1,709 983 2,692

At31.12.2011 1,709 983 2,692


At1.1.2011 - - -

Chargefortheyear 235 81 316

At31.12.2011 235 81 316

Netcarryingamountat31.12.2011 1,474 902 2,376

Includedinproperty,plantandequipmentareassetsacquiredunderunexpiredhirepurchaseandfinanceleasearrangementswithnetcarryingamountsasfollows:


Plantandmachinery 8,556 5,115 - -

Motorvehicles 2,397 662 1,450 -

10,953 5,777 1,450 -

MotorvehiclesoftheGroupandtheCompanywiththecarryingamountofRM1,156,873(2010:Nil)arevehiclesregisteredinthenameoftheimmediateholdingcompany.ThesemotorvehiclesareheldintrustfortheCompany,byitsimmediateholdingcompany.




3. INVESTMENT PROPERTIES

Atfairvalue Atcost Long Freehold leasehold PropertiesGroup commercial commercial under2011 properties properties development Total RM’000 RM’000 RM’000 RM’000

At1.1.2011 1,185 293,020 60,578 354,783

Additionsfromsubsequentexpenditure 3,768 54,208 25,490 83,466

Transferfrompropertydevelopmentcosts(see note 10) 3,677 - - 3,677

Fairvalueadjustments 28,055 177,081 - 205,136

Reclassifications - 32,811 (32,811) -

At31.12.2011 36,685 557,120 53,257 647,062

2010

At1.1.2010 1,185 82,269 5,011 88,465

Additionsfromsubsequentexpenditure - 25,461 62,607 88,068

Fairvalueadjustments - 178,250 - 178,250

Reclassifications - 7,040 (7,040) -

At31.12.2010 1,185 293,020 60,578 354,783

IncludedunderadditionsduringtheyearareinterestexpensestotalingRM15,272(2010:RM16,029).

Thefairvaluesoftheinvestmentpropertiesarearrivedatbyreferencetovaluationsbyaregisteredindependentvaluerhavingappropriaterecognisedprofessionalqualifications.

4. LAND HELD FOR PROPERTY DEVELOPMENT Group 2011 2010 RM’000 RM’000

Freeholdlandatcost 1,779 1,779

Leaseholdlandatcost 68,271 52,635

Propertydevelopmentcost 8,293 29,091

At1January 78,343 83,505

Purchaseofadditionalleaseholdland 29,488 18,957

Propertydevelopmentcostsincurredduringtheyear 12,837 1,699

Transferredtopropertydevelopmentcosts(see note 10) (38,706) (25,818)

At31December 81,962 78,343

ThetitledeedsforlandwithcarryingamountofNil(2010:RM18,960,000)arependingtransfertotheGroup.


5. INVESTMENT IN SUBSIDIARY COMPANIES

Company 2011 2010 RM’000 RM’000

Unquotedsharesatcost 49,019 48,171

Thesubsidiarycompanies,allincorporatedinMalaysia,areasfollows:

Equityinterest Principalactivities 2011 2010 % %

IDPIndustrialDevelopmentSdnBhd 100 100 Propertydevelopment

KumpulanSejahteraSdnBhd 100 100 Propertydevelopment

ParamountHillsSdnBhd 100 100 Propertydevelopment

ParamountPropertiesSdnBhd 100 100 Propertydevelopment

SagahartaSdnBhd 100 100 Propertydevelopment

SaujanisSdnBhd 100 100 Propertydevelopment

SunnyUptownSdnBhd 100 100 Propertydevelopment

TiarawoodsSdnBhd 100 100 Propertydevelopment

WindsorTriumphSdnBhd 100 100 Propertydevelopment

MagnaTiaraDevelopmentSdnBhd 100 100 Propertydevelopment

EveriseTiara(M)SdnBhd 60 60 Propertydevelopment

SeriTiaraDevelopmentSdnBhd 85 85 Propertydevelopment

PeninsularHomeSdnBhd 60 60 Propertydevelopment

MagnaKelanaDevelopmentSdnBhd 70 70 Propertydevelopment

CeylonHillsSdnBhd 54 54 Propertydevelopment

ScenicPointDevelopmentSdnBhd 60 60 Propertydevelopment

UOAHospitalitySdnBhd(formerly known as Borderless 100 - ManageandoperatehotelProject Management Sdn Bhd) andserviceapartment

AlliedEngineeringConstructionSdnBhd 100 100 Civilcontractor

URCEngineeringSdnBhd 100 100 Civilcontractor

UOAPropertiesSdnBhd(formerly known as UOA Properties Bhd) 100 100 Investmentholding

-DynastyPortfolioSdnBhd 100 100 Propertyinvestment

-LencanaHarapanSdnBhd 100 100 Propertyinvestment

-BangsarSouthCitySdnBhd 100 100 Propertyinvestment

-NasibUnggulSdnBhd 100 100 Propertyinvestment

-EnchantHeritageSdnBhd 85 85 Propertyinvestment

-TunjangIdamanSdnBhd 100 100 Propertyinvestment




6. INVESTMENT IN THE ASSOCIATE COMPANY Group Company

2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Unquotedordinaryshares 18,830 - 18,570 -

Shareofpost-acquisitionreserves 222 - - -

19,052 - 18,570 -

Thesummarisedfinancialinformationoftheassociatecompanyisasfollows:

2011 2010 RM’000 RM’000

Assets and liabilities

Totalassets 66,448 -

Totalliabilities 17,598 -

Results

Revenue - -

Profitfortheyear 569 -

TheassociatecompanyisEveriseProjectSdnBhd,acompanyincorporatedinMalaysiainwhichtheCompanyholds39%(2010:Nil)oftheequityinterest.

Theprincipleactivityoftheassociatecompanyispropertydevelopment.

7. AMOUNT OWING BY THE ASSOCIATE COMPANY The amount owing by an associate company represents unsecured interest free advances which are not

expectedtoberecalledwithinthenext12months.

8. AVAILABLE-FOR-SALE FINANCIAL ASSETS Group

2011 2010 RM’000 RM’000

Atmarketvalue

InvestmentinUOAREIT(quotedinMalaysia) 21,651 26,797


9. DEFERRED TAX ASSETS Group

2011 2010 RM’000 RM’000

At1January 8,929 5,581

Originationduringtheyear 6,615 3,348

At31December 15,544 8,929

Temporarydifferencesrecognisedasdeferredtaxassetsarosemainlyfromthedifferencebetweenthemannerinwhichpropertydevelopmentprofitsisrecognisedfortaxandaccountingpurposes.

TheGrouphasrecognisedthedeferredtaxassetasitisprobablethatitsexistingdevelopmentprojectswouldgeneratesufficienttaxableprofitinthefutureagainstwhichthedeferredtaxassetscanbeutilised.

10. PROPERTY DEVELOPMENT COSTS Group

2011 2010 RM’000 RM’000

Freeholdlandatcost 167,188 123,768

Leaseholdlandatcost 15,627 22,911

Propertydevelopmentcost 323,579 201,285

Costrecognisedasexpenseinprioryears (171,202) (133,300)

At1January 335,192 214,664

Costsincurredduringthefinancialyear

-freeholdlandatcost 124,706 43,420

-leaseholdlandatcost 245 -

-developmentandconstructioncosts 377,368 290,924

837,511 549,008

Costsrecognisedasexpenseinincomestatement (259,780) (189,709)

Coststransferredtoinventories (192,315) (49,925)

Coststransferredtoinvestmentproperty(see note 3) (3,677) -

Coststransferredfromlandheldforpropertydevelopment(see note 4) 38,706 25,818

At31December 420,445 335,192

InterestcapitalisedduringthefinancialyearamountedtoRM694,106(2010:RM343,932).




10. PROPERTY DEVELOPMENT COSTS (Cont’d)

Includedinpropertydevelopmentcostsarethefollowingstatedatcarryingamount:

2011 2010 RM’000 RM’000

LandwithtitledeedswhichareregisteredinthenamesofthirdpartywithwhomtheGrouphasenteredintojointdevelopmentagreements 8,558 8,558

LandwithtitledeedspendingtransfertotheGroup 23,957 5,000

Landchargedtosecurebankborrowingsreferredtoinnote29 79,184 79,184

11. INVENTORIES Group

2011 2010 RM’000 RM’000

Stockofcompleteddevelopmentpropertiesatcost 332,686 184,069

DevelopmentpropertiesforwhichtitledeedshaveyettobeissuedinthenameoftheGroup,atcost 4,707 4,707

12. ACCRUED BILLINGS/(PROGRESS BILLINGS) Group 2011 2010 RM’000 RM’000

Revenuerecognisedtodate 685,485 534,365

Progressbillingstodate (595,287) (485,636)

90,198 48,729

Accruedbillings 111,021 69,114

Progressbillings (20,823) (20,385)

90,198 48,729

13. TRADE AND OTHER RECEIVABLES Group Company

2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Tradereceivables(Note 13.1) 99,546 101,037 - -

Sundryreceivables,depositsandprepayments(Note 13.2) 46,305 22,366 11,826 1,470

145,851 123,403 11,826 1,470

Allowancefordoubtfuldebts (1,699) (4,128) (1,300) (1,300)

144,152 119,275 10,526 170


13.1 TRADE RECEIVABLES Group

2011 2010 RM’000 RM’000

Progressbillingsreceivable 86,663 78,650

Fundsheldbystakeholders 11,950 14,650

Othergrossreceivables 933 7,737

Totalgrossreceivables 99,546 101,037

Allowancefordoubtfuldebts (158) (82)

99,388 100,955

Theprogressbillingsareduewithin14to90daysasstipulatedinthesaleandpurchaseagreements. Thefundsheldbystakeholdersareduetoberefundedwithin12monthsexceptforamountstotalingRM4,800,000

whicharetoberefundedbetween13and24months.Theseamountsarenotconsideredmaterialtobeclassifiedasnon-currentassets.

Otherreceivablesareduewithin14to45days.

13.2. SUNDRY RECEIVABLES, DEPOSITS AND PREPAYMENTS


Refundabledepositspaidfortheacquisitionofdevelopmentland 19,173 9,063 - -

AmountsowingbycompaniesinwhichcertaindirectorsoftheCompanyhavesubstantialfinancialinterest - 7 - -

Sundryreceivables 16,418 7,388 11,131 1,467

Depositsandprepayments 10,714 5,908 695 3

46,305 22,366 11,826 1,470

Allowancefordoubtfuldebts (1,541) (4,046) (1,300) (1,300)

44,764 18,320 10,526 170



14. HOLDING COMPANIES

TheimmediateholdingcompanyisUOAHoldingsSdnBhd,acompanyincorporatedinMalaysiawhichowns67.05%(2010:88.47%)oftheissuedsharecapitaloftheCompany.

TheultimateholdingcompanyisUnitedOverseasAustraliaLtd(“UOA”),acompanyincorporatedinAustralia. Theamountowingbytheimmediateholdingcompanywhichrepresentsunsecuredinterestfreeadvanceswhich

werefullysettledduringthefinancialyear.

Theamountowingtotheimmediateholdingcompanyisunsecuredandanalysedasfollows:


Interestfreeadvances - 202,930 - -

Managementfeepayable 1,795 8,708 1,795 -

1,795 211,638 1,795 -

Theinterestfreeadvanceswerefullysettledduringthefinancialyear.Themanagementfeepayableisexpectedtobesettledwithinthenormalcreditperiod.

15. AMOUNTS OWING BY SUBSIDIARY COMPANIES

Theamountsowingbysubsidiarycompaniesareunsecuredandanalysedasfollows:

Company 2011 2010 RM’000 RM’000

Interestfreeadvances 670,979 96,308

Managementfeereceivable 8,497 -

679,476 96,308

16. AMOUNTS OWING BY/TO RELATED COMPANIES The amounts owing by the related companies which represent unsecured interest free advances were fully

settledduringthefinancialyear.

Theamountowingtorelatedcompaniesisunsecuredandanalysedasfollows:


Interestfreeadvances - 10,124 - -

Managementfeereceivable 129 - 129 -

129 10,124 129 -

Theinterestfreeadvanceswerefullysettledduringthefinancialyear.Themanagementfeereceivableisexpectedtobesettledwithinthenormalcreditperiod.



17. SHORT TERM INVESTMENTS Group Company

2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Shorttermfunds,atcost 165,631 1,423 151,311 -

Theshorttermfundsaremanagedandinvestedintofixedincomesecuritiesandmoneymarketinstrumentsbyfundmanagementcompanies.Theshorttermfundsarereadilyconvertibletocash.

18. FIXED DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS Included in fixed deposits is an amount of RM362,803 (2010: RM354,119) charged to obtain a bridging loan

(See note 29).

Theeffective interestratesofthefixeddepositsrangebetween1.80%to3.05%(2010:1.75%to2.65%)perannum.Alldepositshavematuritiesoflessthanoneyear.

19. CASH AND BANK BALANCES CashandbankbalancesoftheGroupincludeanamountofRM38,777,739(2010:RM18,579,707)maintained

intheHousingDevelopmentAccounts.WithdrawalsfromtheHousingDevelopmentAccountsarerestrictedinaccordancewiththeHousingDevelopment(HousingDevelopmentAccount)Regulations1991.

FundsmaintainedintheHousingDevelopmentAccountsearninterestrangingfrom1.65%to2.05%(2010:1.00%to1.75%)perannum.

20. SHARE CAPITAL

2011 2010 No of Noof shares shares (’000) RM’000 (’000) RM’000

Authorised:

OrdinarysharesofRM1.00each

Atbeginningoftheyear 50,000 50,000 50,000 50,000

Cancelledduringtheyear (50,000) (50,000) - -

OrdinarysharesofRM0.05each

Replacementofshares 1,000,000 50,000 - -

Createdduringtheyear 1,000,000 50,000 - -

Atendoftheyear 2,000,000 100,000 50,000 50,000



20. SHARE CAPITAL (Cont’d)

2011 2010 No of Noof shares shares (’000) RM’000 (’000) RM’000

Issuedandfullypaid:

OrdinarysharesofRM1.00eachAtbeginningoftheyear 43,755 43,755 37,737 37,737

IssuedpursuanttotheacquisitionofEveriseProjectSdnBhd 1,688 1,688 6,018 6,018

45,443 45,443 43,755 43,755

Cancelledduringtheyear (45,443) (45,443) - -

OrdinarysharesofRM0.05each Replacementofshares 908,860 45,443 - -

IssuedpursuanttotheIPO 287,000 14,350 - -

Atendoftheyear 1,195,860 59,793 43,755 43,755

21. SHARE PREMIUM

Company 2011 RM’000

1,688,810ordinarysharesofRM1.00eachatapremiumofRM10.00pershare, ontheacquisitionofEveriseProjectSdnBhd 16,888

287,000,000ordinarysharesatRM0.05eachatapremiumofRM2.55pershare, netoflistingexpensesontheIPO 709,610

726,498

22. MERGER RESERVE Group 2011 2010 RM’000 RM’000

At1January 2,252 -

Arisingfromtheacquisitionof:

-AlliedEngineeringConstructionSdnBhd - (3,523)

-URCEngineeringSdnBhd - 5,320

-UOAPropertiesSdnBhd(formerly known as UOA Properties Bhd) - 455

At31December 2,252 2,252



23. FAIR VALUE RESERVE

Thefairvaluereservearosefromfairvaluechangesinavailable-for-salefinancialassets.

24. AMOUNTS OWING TO NON-CONTROLLING SHAREHOLDERS OF SUBSIDIARY COMPANIES

Theamountsowingtonon-controllingshareholdersofsubsidiarycompaniesrepresentunsecuredinterestfreeadvanceswhicharenotexpectedtoberecalledwithinthenext12months.

25. HIRE PURCHASE AND FINANCE LEASE LIABILITIES


Totalfutureinstalmentspayable 10,040 5,379 1,507 -

Unexpiredtermcharges (950) (465) (131) -

Totaloutstandingprincipal 9,090 4,914 1,376 -

Futureinstalmentspayable

-notlaterthanoneyear 3,760 2,665 446 -

-laterthanoneyearbutnotlaterthanfiveyears 6,280 2,714 1,061 -

Totalfutureinstalmentspayable 10,040 5,379 1,507 -

Outstandingprincipal

-notlaterthanoneyear(included under current liabilities) 3,299 2,374 386 -

-laterthanoneyearbutnotlaterthanfiveyears(included under non-current liabilities) 5,791 2,540 990 -

Totaloutstandingprincipal 9,090 4,914 1,376 -

Theeffectiveinterestratesofthehirepurchaseandfinanceleaseliabilitiesarebetween4.30%-8.84%(2010:4.30%-8.84%)perannum.

26. LONG TERM BORROWING Group 2011 2010 RM’000 RM’000

Revolvingloan 2,065 2,065

TherevolvingloanissecuredbyanassignmentofapartmentstobebuiltonadevelopmentprojectcurrentlyundertakenbytheGroup.Theloanispayableonorbefore30July2014.Theinterestischargeableatafixedrateof3%perannumafter30July2011.



27. DEFERRED TAX LIABILITY Group 2011 2010 RM’000 RM’000

At1January 10,498 553

Originationduringtheyear 9,952 9,945

At31December 20,450 10,498

Representedby:

Taxeffectsofexcessofcapitalallowancesclaimedoveraccumulateddepreciationonproperty,plantandequipment 1,044 675

RealPropertyGainsTax 19,406 9,823

20,450 10,498

28. TRADE AND OTHER PAYABLES Group Company

2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Tradepayables(Note 28.1) 113,597 101,240 - -

Sundrypayables,depositsandaccruals(Note 28.2) 58,110 38,450 7,858 375

171,707 139,690 7,858 375

28.1. TRADE PAYABLES Group 2011 2010 RM’000 RM’000

Sub-contractors’claims 31,679 45,644

Retentionsums 23,622 21,370

Accruedconstructioncosts 51,668 26,648

Othertradepayables 6,628 7,578

113,597 101,240

Thenormalcredittermsextendedbysub-contractorsandsuppliersrangebetween30and60days.

The retentionsumsarepayableupon theexpiryof thedefect liabilityperiodof12 to18monthsexcept foramounttotalingRM6,362,981ispayablewithin13and24months.Thisamountisnotconsideredmaterialtobeclassifiedtonon-currentliabilities.



28.2. SUNDRY PAYABLES, DEPOSITS AND ACCRUALS


Unpaidconsiderationforproperty,plantandequipmentacquired - 382 - -

AmountsowingtocompaniesinwhichcertaindirectorsoftheCompanyhavesubstantialfinancialinterest - 333 - 333

Sundrypayables 5,069 15,487 93 37

Deposits 8,659 6,739 - -

Interestpayable 167 685 - -

Accruals 44,215 14,824 7,765 5

58,110 38,450 7,858 375

29. SHORT TERM BORROWINGS

Group 2011 2010 RM’000 RM’000

Revolvingcredit 4,047 140,066

Revolvingloan - 9,129

Bridgingloan 1,260 237

5,307 149,432

Therevolvingcreditissecuredbyacorporateguaranteefromtheimmediateholdingcompany.Therevolvingcreditisrepayableondemandandbearsinterestbetween3.00%and5.20%(2010:4.50%to5.20%)perannum.

Therevolvingloanwasfullyrepaidduringthefinancialyear.

Thebridgingloanissecuredasfollows:

(i) achargeoverafixeddepositoftheGroupamountingtoRM362,803(2010:RM354,119)(ii) acorporateguaranteefromtheimmediateholdingcompany(iii) alegalchargeoveravacantcommerciallandincludedunderpropertydevelopmentcosts(see Note 10)at

RM79,184,000.

ThebridgingloanfacilityisRM50million,andbearsinterestat1.5%pluscostoffunds(effectiverate:4.84%)perannum.



30. REVENUE


Saleofdevelopmentproperties 490,248 345,377 - -

Saleofinventories 123,348 29,852 - -

Dividendincomefromsubsidiarycompanies - - 6,667 33,188

613,596 375,229 6,667 33,188

31. COST OF SALES

Group 2011 2010 RM’000 RM’000

Costofdevelopmentpropertiessold 259,780 180,682

Costofinventoriessold 38,090 15,863

297,870 196,545

32. FINANCE COSTS


Amortisationoffinancialliabilities 3,581 1,759 819 -

Interestpayabletorelatedcompany - 571 - -

Hirepurchaseandfinanceleaseinterest 457 430 52 -

Termloaninterest - 2 - -

4,038 2,762 871 -



33. PROFIT BEFORE TAX

Profitbeforetaxisstatedaftercharging:


Auditors’remuneration

-currentyear 219 152 60 3

-(over)/underestimatedinprioryear (8) - 2 2

Badanddoubtfuldebts 76 7,930 - -

Depreciation 6,355 5,054 316 -

Property,plantandequipmentwrittenoff 4 2 - -

Impairmentofavailable-for-salefinancialassets - 3,552 - -

Directoperatingexpensesonrevenuegeneratinginvestmentproperties 6,725 3,946 - -

Directors’remuneration

-fee 90 - 90 -

-otherthanfee 1,398 - 1,398 -

Lossondisposalofsubsidiarycompanies - 998 - 629

andcrediting:

Allowancefordoubtfuldebtsnolongerrequired 2,505 - - -

Discountonacquisitionofsharesinanassociatedcompany 260 - - -

Distributionfromshortterminvestments 3,650 493 3,419 1

DistributionfromUOAREIT 1,617 1,950 - -

Interestincome 6,983 3,807 1,014 3

Rentalincome 14,443 11,848 - -

Gainondisposalofavailable-for-salefinancialassets 546 34 - -

Gainondisposalofproperty,plantandequipment 210 205 - -

Gainonredemptiononshortterminvestments - 7 - -

Directors’remunerationdoesnotincludetheestimatedmonetaryvalueofbenefits-in-kindasfollows:


Directors 44 - 44 -



34. TAX EXPENSE Group Company

2011 2010 2011 2010 RM’000 RM’000 RM’000 RM’000

Malaysiantaxbasedonresultsfortheyear

-currentincometax 76,152 45,521 1,977 3,034

-deferredincometax (6,355) (4,646) - -

-deferredRealPropertyGainsTax 9,583 11,293 - -

79,380 52,168 1,977 3,034

(Over)/Underestimatedinprioryear

-currenttax (602) 574 - -

-deferredtax 109 43 - -

(493) 617 - -

78,887 52,785 1,977 3,034

Theprovisionfortaxationdiffersfromtheamountoftaxationdeterminedbyapplyingtheapplicablestatutorytaxratetotheprofitbeforetaxasaresultofthefollowingdifferences:


Accountingprofit 481,798 332,422 10,340 32,501

Taxationatstatutoryrate 120,449 83,105 2,585 8,125

Taxeffectof

-non-deductibleexpenses 1,984 4,955 378 173

-non-taxableincome (3,178) (1,153) (961) (5,264)

Effectofshareofresultsofassociates (56) - - -

Utilisationofdeferredtaxassetpreviouslynotrecognised (623) - (25) -

Deferredtaxassetnotrecognised 62 - - -

DifferencebetweenincometaxrateandRealPropertyGainsTaxrateapplicableonfairvalueadjustmentsoninvestmentproperties (39,258) (34,739) - -

(Over)/Underestimatedinprioryear (493) 617 - -

78,887 52,785 1,977 3,034



35. EARNINGS PER ORDINARY SHARE

BasicearningspershareiscalculatedbydividingtheGroup’sprofitattributabletoownersoftheCompanyfortheyearbytheweightedaveragenumberofordinarysharesoutstandingduringthefinancialyearheldbytheCompany. Group 2011 2010 ’000 ’000

ProfitattributabletoownersoftheCompany(RM’000) 384,806 272,491

Numberofordinarysharesatbeginningoftheyear 43,755 37,737

Effectofsharesissuedpursuantto:

-issuancetotheacquisitions 23,033 109,241

-replacementofshares 831,341 619,813

-issuancetotheIPO 161,978 -

Weightedaveragenumberofordinaryshares 1,060,107 766,791

Netearningsperordinaryshare(RM) 0.36 0.36

36. DIVIDENDS

2011 2010 RM’000 RM’000

In respect of financial year ended 31 December 2010

Dividends paid by URC Engineering Sdn Bhd

FirstinterimdividendofRM2.56pershareless25%incometax - 13,500

SecondinterimdividendofRM1.92pershare(singletier) - 13,500

Dividends paid by UOA Development Bhd

Firstinterimdividendof2.64senpershare(singletier) - 1,000

Secondinterimdividendof3.97senpershare(singletier) - 1,500

Thirdinterimdividendof0.34senpershare(singletier) - 130

- 29,630

37. ADDITIONS TO INVESTMENT PROPERTY

Group 2011 2010 RM’000 RM’000

Aggregatecostofinvestmentpropertyacquiredand subsequentexpenditure(Note 3) 83,466 88,068

Interestexpensecapitalised (15) (16)

83,451 88,052



38. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT


Aggregatecostofproperty,plantand equipmentacquired(see note 2) 12,389 4,611 2,692 -

Cashpaidinrespectofprioryear’sacquisition 382 199 - -

Financedviahirepurchaseandfinancelease (7,392) (1,096) (1,682) -

Unpaidbalancesincludedundersundrypayables, depositsandaccruals(see note 28) - (382) - -

5,379 3,332 1,010 -

39. DISPOSAL OF SHARES IN SUBSIDIARY COMPANIES

Therewasnodisposalof subsidiaryduring theyear.Thesubsidiarycompaniesdisposedduring2010wereFederaya Development Sdn Bhd, Midah Heights Sdn Bhd, Multiplex Strategy Sdn Bhd and PembangunanNovarayaSdnBhd.

Theanalysisofthedisposalofsubsidiarycompaniesisasfollows:

2010 RM’000

Currentassets 1,169

Currentliabilities (78)

Non-controllinginterests (93)

Shareofnetassets 998

Lossondisposalofsubsidiarycompanies (998)

Totalsalesconsideration -*

Less:Cashandcashequivalentsdisposed (874)

Netcashoutflowduringtheyear (874)

* Represent RM157

40. ACQUISITION OF SHARES IN NEW SUBSIDIARY COMPANIES

Detailsofthenewsubsidiarycompaniesacquiredareasfollows:

Group’sNameofsubsidiary Purchase effective Effectivecompaniesacquired consideration interest acquisitiondate RM %

2011

UOAHospitalitySdnBhd(formerly known as Borderless Project Management Sdn Bhd) 2 100.00 19September2011

2010

CeylonHillsSdnBhd 54 54.00 29March2010



40. ACQUISITION OF SHARES IN NEW SUBSIDIARY COMPANIES (Cont’d)

The revenueandnet (loss)/gain for the year inwhich theacquisitions tookplaceand their post acquisitioncontributionincludedintheconsolidatedincomestatementswereasfollows:

2011 2010 RM’000 RM’000

Revenue

Duringthefinancialyear - -

Pre-acquisition - -

Post-acquisition - -

Net(loss)/gainfortheyear

Duringthefinancialyear (5) 2,698

Pre-acquisition - -

Post-acquisition (5) 2,698

Thenetassetsoftheacquiredsubsidiarycompanyincludedintheconsolidatedstatementoffinancialpositionattheendofthefinancialyearwereasfollows:

2011 2010 RM’000 RM’000

Currentassets - 27,047

Non-currentliabilities - (9,731)

Currentliabilities (5) (14,617)

Non-controllinginterest - (1,241)

Group’sshareofnetassets (5) 1,458

41. EMPLOYEE BENEFITS EXPENSE


Employeebenefitsexpense 15,784 304 15,420 -

IncludedintheemployeebenefitsexpenseareEPFcontributionsamountingtoRM1,561,379(2010:RM15,916)fortheGroupandRM1,538,765(2010:Nil)fortheCompany.

In2010,theGroupdoesnothaveanyotheremployeeasitobtainsmanagementservicesfromitsimmediateholdingcompany.



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42. RELATED PARTY TRANSACTIONS (Cont’d)

(b) Keymanagementpersonnelcompensation


Directors

Remuneration 1,338 - 1,338 -

Estimatedmonetaryvalueofbenefits-in-kind 44 - 44 -

Totalshort-termemployeebenefits 1,382 - 1,382 -

Post-employmentbenefits

-EPF 150 - 150 -

1,532 - 1,532 -

Other key management personnel

Salaries,allowancesandbonuses 1,874 - 1,193 -

Estimatedmonetaryvalueofbenefits-in-kind 91 - 46 -

Totalshort-termemployeebenefits 1,965 - 1,239 -

Post-employmentbenefits

-EPF 193 - 111 -

2,158 - 1,350 -

Totalcompensation 3,690 - 2,882 -



43. OPERATING LEASE COMMITMENT

The Group as lessee

The Group leases premises from various parties under operating leases. These leases are non-cancellableandtypicallyrunforaperiodrangingfrom1to3years,withtheoptiontorenew.Noneoftheleasesincludecontingentrentals.TherearenorestrictionsplacedupontheCompanybyenteringintotheseleases.Thefutureminimumleasepaymentspayableunderthenon-cancellableoperatingleasescontractedforasatthereportingdatenotrecognisedaspayables,areasfollows:

2011 2010As lessee RM’000 RM’000

Notlaterthanoneyear 31 42

Laterthanoneyearbutnotlaterthan5years - -

31 42

The Group as lessor

The Group leases out its investment properties under non-cancellable operating leases. These leases runtypicallyforaperiodrangingfrom1to3years,withtheoptiontorenew.Noneoftheleasesincludecontingentrentals.

Thefutureminimumleasepaymentsreceivableunderthenon-cancellableoperatingleasescontractedforasatthereportingdatenotrecognisedasreceivables,areasfollows:

2011 2010As lessor RM’000 RM’000

Notlaterthanoneyear 14,374 13,561

Laterthanoneyearbutnotlaterthan5years 12,640 7,836

27,014 21,397



44 . COMMITMENTS Group 2011 2010 RM’000 RM’000

Approvedandcontractedfor

-Purchaseofdevelopmentland 123,121 51,805

-Purchaseofproperty,plantandequipment 1,901 3,180

-Constructionofinvestmentproperties 59,263 -

45. CONTINGENT LIABILITIES


Corporateguaranteesgiventobankstosecurebankingfacilitiesgrantedtosubsidiarycompanies - - 148,235 -



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47. FINANCIAL INSTRUMENTS

(a) Classificationoffinancialinstruments

Thetablebelowprovidesananalysisoffinancialinstrumentscategorisedasfollows:

Loans and Available- Loansand Available receivables for-sale receivables for-sale 2011 2011 2010 2010

Group RM’000 RM’000 RM’000 RM’000

Financial assets

Available-for-salefinancialassets - 21,651 - 26,797

Amountowingbyanassociatecompany 3,111 - - -

Tradeandotherreceivables 143,681 - 119,275 -

Amountowingbyimmediateholdingcompany - - 22,036 -

Amountowingbyrelatedcompanies - - 2,465 -

Shortterminvestments 165,631 - 1,423 -

Depositswithlicensedfinancialinstitutions 68,184 - 12,517 -

Cashandbankbalances 53,629 - 24,256 -

Totalfinancialassets 434,236 21,651 181,972 26,797

Atamortisedcost 2011 2010Group RM’000 RM’000


Tradeandotherpayables 171,707 139,690

Amountowingtoimmediateholdingcompany 1,795 211,638

Amountsowingtorelatedcompanies 129 10,124

Amountsowingtonon-controllinginterest 57,997 36,948

Longtermborrowing 2,065 2,065

Hirepurchaseandfinanceleaseliabilities 9,090 4,914

Shorttermborrowings 5,307 149,432

Totalfinancialliabilities 248,090 554,811



47. FINANCIAL INSTRUMENTS (Cont’d)

(a) Classificationoffinancialinstruments(Cont’d)

Loansandreceivables 2011 2010

Company RM’000 RM’000

Financial assets

Amountowingbyanassociatecompany 3,111 -

Tradeandotherreceivables 10,526 170

Amountowingbyimmediateholdingcompany - 9,970

Amountowingbysubsidiarycompanies 679,476 96,308

Amountsowingbyrelatedcompanies - 7

Shortterminvestments 151,311 -

Fixeddepositswithlicensedfinancialinstitutions 4,503 3,500

Cashandbankbalances 894 43

Totalfinancialassets 849,821 109,998

Atamortisedcost 2011 2010Company RM’000 RM’000


Tradeandotherpayables 7,858 375

Amountowingtoimmediateholdingcompany 1,795 -

Amountowingtorelatedcompanies 129 -

Hirepurchaseandfinanceleaseliabilities 1,376 -

Totalfinancialliabilities 11,158 375



47. FINANCIAL INSTRUMENTS (Cont’d)

(b) The carrying amounts of the financial assets and liabilities of the Group and of the Company at thereportingdateapproximatedtheirfairvaluesexceptforthefollowing:

Group Company 2011 2011 Carrying Fair Carrying Fair Note amount value amount value RM’000 RM’000 RM’000 RM’000

Financial asset

Amountowingbyanassociatecompany 7 3,111 3,111* 3,111 3,111*

Financial liability

Amountsowingtonon-controllingshareholdersofsubsidiarycompanies 24 57,997 57,997* - -

Group Company 2010 2010 Carrying Fair Carrying Fair Note amount value amount value RM’000 RM’000 RM’000 RM’000

Financial liability

Amountsowingtonon-controllingshareholdersofsubsidiarycompanies 24 36,948 36,948* - -

*ThefairvaluesareestimatedbydiscountingexpectedfuturecashflowsateithertheCompany’s,ortheassociate’slendingrateforsimilartypesoflendingarrangementsatthereportingdate.

48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES TheGroup is exposed to a varietyof financial risks, including credit risk, interest rate risk,market risk and

liquidityandcashflowrisksarisinginthenormalcourseofbusiness.

TheGroupmonitorsitsfinancialpositioncloselywithanobjectivetominimisepotentialadverseeffectsonitsfinancialperformance.TheGroup’spoliciesformanagingeachoftheserisksaresummarisedbelow:

(a) Credit risk Credit risk arises from the possibility that a counter party may be unable to meet the terms of a

contract inwhichtheGrouphasagainposition.TheGrouphasnosignificantconcentrationofcreditrisk.Nevertheless,theGroup’smanagementhasacreditpolicyinplacetoensurethattransactionsareconductedwithcreditworthycounterparties.

InrespectoftheGroup’sdevelopmentproperties,mostoftheend-buyersobtainend-financingtofundtheirpurchasesoftheGroup’sproperties.Insuchcases,theGroupmitigatesanycreditriskitmayhavebymaintainingitsnameastheregisteredownerofthedevelopmentuntilfullsettlementbythepurchasersoftheself-financedportionofthepurchaseconsiderationanduponundertakingofend-financingbythepurchaser’send-financier.



48. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)

(a) Credit risk (Con’td)

In respect of the Group’s investment properties, the Group customarily obtains three months’ rentaldepositfromtenantsassecurityfortheperformanceoftheirobligationsunderthetenancyagreementstomitigatetheriskofnon-collectabilityofmonthlyrentals.

TheGroupseekstoinvestitssurpluscashsafelybydepositingthemwithlicensedfinancialinstitutions.

Theageinganalysisofreceivablesasatthereportingdatewhicharetradeinnatureisasfollows:

2011 Gross ImpairmentGroup RM’000 RM’000

Notpastdue 88,513 -

Lessthan44dayspastdue 7,144 -

Between44and110dayspastdue 2,864 -

Morethan110dayspastdue 1,025 158

99,546 158

2010 Gross ImpairmentGroup RM’000 RM’000

Notpastdue 86,122 -

Lessthan44dayspastdue 5,184 -

Between44and110dayspastdue 8,769 -

Morethan110dayspastdue 962 82

101,037 82

Movementsintheallowancefordoubtfuldebtsoftradereceivablesareasfollows:

Group 2011 2010 RM’000 RM’000

At1January 82 31

Additionalallowance 76 51

At31December 158 82




(b) Interest rate risk TheGroupisexposedtointerestrateriskwhichistheriskthatafinancialinstrument’svaluewillfluctuate

asaresultofchangesinmarketinterestrates.

Exposure to interest rate risk related primarily to the Group’s interest-bearing borrowings and fixeddeposits.

TheGroup’spolicy is toborrowprincipallyonafloating ratebasisbut to retainaproportionoffixedratedebt.Theobjectiveofamixoffixedandfloatingrateborrowingsistoreducetheimpactofariseininterestratesandtoenablesavingstobeenjoyedifinterestratesfall.TheGroupdoesnotgenerallyhedgeinterestraterisk.TheGrouphasapolicytoensurethatinterestratesobtainedarecompetitive.

Surplusfundsareplacedwithlicensedfinancialinstitutionstoearninterestincomebasedonprevailing

market rates.TheGroupmanages its interest rate riskbyplacingsuch fundsonshort tenuresof12monthsorless.

AsensitivityanalysishasbeenperformedbasedontheoutstandingfloatingrateborrowingsoftheGroupasat31December2011.Ifinterestratesincreaseordecreaseby50basispoints,withallothervariablesheldconstant,theGroup’sprofitaftertaxwoulddecreaseorincreasebyapproximatelyRM26,535,asaresultofhigherorlowerinterestexpenseontheseborrowings.

(c) Market risk TheGroup’sprincipalexposuretomarketriskarisesfromchanges invaluecausedbymovements in

market prices of its quoted investments. The risk of loss is minimised via thorough analysis beforeinvestingandcontinuousmonitoringoftheperformanceoftheinvestments.TheGroupoptimisesreturnsbydisposinginvestmentsafterthoroughanalysis.

Commontoallbusinesses,theoverallperformanceoftheGroup’sinvestmentsisalsodrivenexternallybyglobalanddomesticeconomiesthatarelargelyunpredictableanduncontrollable.

The Group’s investments currently comprise entirely its investment in UOA REIT which the Groupconsiderstobesubjecttominimalmarketrisk.

(d) Liquidity and cash flow risk

TheGroupseekstoensureallbusinessunitsmaintainoptimumlevelsofliquidityatalltimes,sufficientfortheiroperating,investingandfinancingactivities.

Therefore, the policy seeks to ensure that each business unit, through efficient working capital

management(i.e inventory,accountsreceivableandaccountspayablemanagement),mustbeabletoconvertitscurrentassetsintocashtomeetalldemandsforpaymentasandwhentheyfalldue.

Owingtothenatureofthebusinesses,theGroupseekstomaintainsufficientcreditlinesavailabletomeet

theliquidityrequirementswhileensuringaneffectiveworkingcapitalmanagementwithintheGroup.




(d) Liquidity and cash flow risk (Cont’d)

ThetablebelowsummarisesthematurityprofileoftheGroup’sfinancialliabilitiesatthereportingdatebasedoncontractualundiscountedcashflows.

Less than 1 to 5 Over 5Group 1 year years years Total2011 RM’000 RM’000 RM’000 RM’000

Tradeandotherpayables 171,707 - - 171,707

Amountowingtoimmediateholdingcompany 1,795 - - 1,795

Amountsowingtorelatedcompanies 129 - - 129

Amountsowingtonon-controllingshareholdersofsubsidiarycompanies - 67,556 - 67,556

Hirepurchaseandfinanceleaseliabilities 3,760 6,280 - 10,040

Bankborrowings 5,307 2,065 - 7,372

182,698 75,901 - 258,599

Lessthan 1to5 Over5 1year years years Total2010 RM’000 RM’000 RM’000 RM’000



Amountsowingtorelatedcompanies 10,124 - - 10,124

Amountsowingtonon-controllingshareholdersofsubsidiarycompanies - 44,237 - 44,237

Hirepurchaseandfinanceleaseliabilities 2,665 2,714 - 5,379

Bankborrowings 151,810 2,251 - 154,061

515,927 49,202 - 565,129




(d) Liquidity and cash flow risk (Cont’d)

Lessthan 1to5 Over5Company 1year years years Total2011 RM’000 RM’000 RM’000 RM’000



Amountsowingtorelatedcompanies 129 - - 129

Hirepurchaseandfinanceleaseliabilities 446 1,061 - 1,507

10,228 1,061 - 11,289

2010

Tradeandotherpayables 375 - - 375

49. CAPITAL MANAGEMENT TheGroup’sobjectiveswhenmanagingcapitalistomaintainastrongcapitalbaseandsafeguardtheGroup’s

abilitytocontinueasagoingconcern,soastomaintaininvestor,creditorandmarketconfidenceandtosustainfuturedevelopmentofthebusiness.TheDirectorsmonitoranddetermineanoptimaldebt-to-equityratiothatcomplieswithdebtcovenantsandregulatoryrequirements.

TheGroup’sstrategywastomaintainthedebt-to-equityratiobetween10%to25%.Thedebt-to-equityratioatthereportingdatewasasfollows:

2011 2010 RM’000 RM’000

Totalborrowings 16,462 156,411

Less:Cashandcashequivalents (287,081) (37,842)

Net(cash)/debt (270,619) 118,569

Totalequity 1,805,914 680,910

Debt-to-equityratio(%) - 17.4

TherewerenochangesintheGroup’sapproachtocapitalmanagementduringtheyear.



50. DISCLOSURE OF REALISED AND UNREALISED RETAINED PROFITS ThedisclosureofrealisedandunrealisedprofitsorlossesiscompiledinaccordancetotheMalaysianInstitute

ofAccountantsGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosuresPursuanttoBursaMalaysiaSecuritiesBerhadListingRequirementsissuedon20December2010.

ThebreakdownofretainedprofitsoftheGroupandtheCompanyasatthereportingdate, intorealisedandunrealisedprofits,pursuanttothedirective,areasfollows:

Group Company 2011 2011 RM’000 RM’000

TotalretainedprofitsoftheCompanyanditssubsidiaries:

-Realised 758,931 122,402

-Unrealised 397,879 -

1,156,810 122,402

Totalshareofretainedprofitsfromassociatedcompany:

-Realised 222 -

-Unrealised - -

222 -

Less:Consolidationadjustments (143,218) -

TotalGroup’sandCompany’sretainedprofitsas

perstatementsoffinancialposition 1,013,814 122,402

51. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS Thesefinancialstatementswereauthorisedforissueon28March2012bytheboardofdirectors.



STATEMENT BYDIRECTORSPURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965

Intheopinionofthedirectors,thefinancialstatementssetoutonpages42to102havebeendrawnup:

(a) soastogiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyat31December2011andoftheirresultsandcashflowsfortheyearthenended;

(b) inaccordancewithFinancialReportingStandardsandtheprovisionoftheCompaniesAct,1965.

Signedonbehalfofthedirectorsinaccordancewithadirectors’resolutiondated28March2012

KONG PAK LIM KONG CHONG SOON @ CHI SUIM Director Director

KualaLumpur


STATUTORYDECLARATIONPURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965

I, Kong Chong Soon @ Chi Suim, being the director primarily responsible for the financial management of UOADevelopment Bhd do solemnly and sincerely declare that to the best of my knowledge and belief, the financialstatementssetoutonpages42to102arecorrect.

AndImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

Subscribedandsolemnlydeclaredat )KualaLumpurintheFederalTerritory ) )this28March2012 ) ) ) KONG CHONG SOON @ CHI SUIM )Beforeme:

KANAPATHYA/LA.MANICKAM,PPNW452CommissionerforOaths


LIST OF MATERIAL PROPERTIES HELD BY THE GROUPAS AT 31 DECEMBER 2011

Yearof LandArea NetBook Valuation/ (sqm)/ Value Location/Address Description Acquisition* noofbays* Tenure (RM’000)

1 BangsarSouth,No.8 3blocksof 2011 44,424 Leasehold99 273,000 JalanKerinchi,KualaLumpur boutiqueoffices years-expiring 16August2106

2 TheSphere,BangsarSouth, Retailcomplex 2011 28,578 Leasehold99 104,800 No.8JalanKerinchi, years-expiring KualaLumpur 16August2106

3 BangsarSouth,No.8 CarparkPhase 2010 4,152* Leasehold99 83,360 JalanKerinchi,KualaLumpur I&II years-expiring 16August2106

4 Lot2507,KualaLumpur Vacant 2011 16,110 Freehold 63,583 commercialland

5 MukimKualaLumpur, 3-storey 2007* 3,930 Leasehold99 14,471 DaerahKualaLumpur, salesgallery years-expiring KualaLumpur 16August2106

6 MukimBatu, Landheld 2004* 67,467 Leasehold99 48,348 DaerahKualaLumpur, fordevelopment years-expiring KualaLumpur 16August2106

7 BangsarSouth,No.2 3-storey 2011 16,553 Leasehold99 43,623 Jalan1/112H,JalanKerinchi, clubhouse years-expiring KualaLumpur 16August2106

8 Lot3678,KualaLumpur Vacant 2011 11,819 Freehold 38,849 commercialland

9 BangsarSouth,No.8 JalanKerinchi,KualaLumpur 1blockof 2011 7,008 Leasehold99 26,272 boutiqueoffice years-expiring 16August2106

10 TheVertical,BangsarSouth, 4development 2011 5,688 Leasehold99 23,260 No.8JalanKerinchi, parcels years-expiring KualaLumpur 16August2106


ANALYSIS OFSHAREHOLDINGSAS AT 6 APRIL 2012

AuthorisedShareCapital : RM100,000,000IssuedShareCapital : 1,195,860,000PaidUpShareCapital : RM59,793,000ClassofShares : OrdinarySharesofRM0.05eachVotingRights : OneVoteperOrdinaryShare

DISTRIBUTION OF SHAREHOLDINGS

SizeofShareholdings No.ofShareholders % No.ofShares %

Lessthan100 24 0.26 658 0.00

100to1,000 1,010 11.07 929,201 0.08

1,001to10,000 5,334 58.48 28,518,681 2.38

10,001to100,000 2,420 26.53 83,709,160 7.00

100,001tolessthan5%ofissuedshares 333 3.65 293,843,300 24.57

5%andaboveofissuedshares 1 0.01 788,859,000 65.97

9,122 100.00 1,195,860,000 100.00

LIST OF THIRTY LARGEST SHAREHOLDERS

NameofShareholders No.ofShares %

1 UOAHoldingsSdnBhd 788,859,000 65.97

2 CitigroupNominees(Tempatan)SdnBhd 45,398,300 3.80 EmployeesProvidentFundBoard

3 AmanahrayaTrusteesBerhad 35,579,700 2.98 SkimAmanahSahamBumiputera

4 AmanahrayaTrusteesBerhad 17,604,700 1.47 AmanahSahamWawasan2020

5 RHBCapitalNominees(Tempatan)SdnBhd 14,958,300 1.25 UOAHoldingsSdnBhd

6 PermodalanNasionalBerhad 14,633,200 1.22

7 AmanahrayaTrusteesBerhad 14,083,900 1.18 AmanahSahamMalaysia

8 KumpulanWangPersaraan(Diperbadankan) 9,600,000 0.80

9 CIMBGroupNominees(Tempatan)SdnBhd 6,827,200 0.57 CIMBBankBerhad(EDP2)

10 CitigroupNominees(Tempatan)SdnBhd 5,470,300 0.46 EmployeesProvidentFundBoard(Nomura)

11 CitigroupNominees(Asing)SdnBhd 5,263,000 0.44 CBLDNforAegonCustodyB.V.


AnalysisofShareholdings(Cont’d)

LIST OF THIRTY LARGEST SHAREHOLDERS (Cont’d)

NameofShareholders No.ofShares %

12 CimsecNominees(Tempatan)SdnBhd 5,000,000 0.42 CIMBBankforKencanaCapitalPartnersSdnBhd(MY1238)

13 RHBCapitalNominees(Tempatan)SdnBhd 4,788,000 0.40 ChewJuLip

14 CitigroupNominees(Tempatan)SdnBhd 4,000,000 0.33 EmployeesProvidentFundBoard(RHBInv)

15 CitigroupNominees(Tempatan)SdnBhd 3,759,500 0.31 EmployeesProvidentFundBoard(Pheim)

16 CimsecNominees(Tempatan)SdnBhd 3,450,000 0.29 CIMBBankforYeowKhengChew(MY1239)

17 CimsecNominees(Tempatan)SdnBhd 3,000,000 0.25 CIMBBankforNoahFoundation(PB)

18 HSBCNominees(Asing)SdnBhd 2,700,000 0.23 BNYMSA/NVforInvescoAseanEquityFund

19 AmanahrayaTrusteesBerhad 2,023,800 0.17 SekimAmanahSahamNasional

20 HSBCNominees(Asing)SdnBhd 2,020,000 0.17 ExemptAnforJPMorganChaseBank, NationalAssociation(JPMINTLBKLTD)

21 CartabanNominees(Asing)SdnBhd 2,017,400 0.17 SSBTFundJ734forSPDRSandPemergingmarket’ssmallcapETF

22 DB(Malaysia)Nominee(Tempatan)SendirianBerhad 1,718,000 0.14 ExemptAnforKumpulanSentiasaCemerlangSdnBhd(TSTAC/CLNT)

23 KurniaInsurans(Malaysia)Berhad 1,600,000 0.13

24 MuhamadAloysiusHeng 1,598,000 0.13

25 PublicNominees(Tempatan)SdnBhd 1,500,000 0.13 PledgedsecuritiesaccountforPatinasGeneralEnterprise(Sabah)SdnBhd(E-SDK)

26 HSBCNominees(Asing)SdnBhd 1,450,700 0.12 ExemptAnforJPMorganChaseBank,NationalAssociation(U.S.A.)

27 CitigroupNominees(Tempatan)SdnBhd 1,425,000 0.12 EmployeesProvidentFundBoard(AllianceInv)

28 HLQNominee(Tempatan)SdnBhd 1,363,000 0.11 PledgedsecuritiesaccountforYeohEngHua

29 AmsecNominees(Tempatan)SdnBhd 1,324,800 0.11 AmtrusteeBerhadforPacificDividendfund(UT-PM-DIV)

30 MaybanNominess(Tempatan)SdnBhd 1,311,000 0.11 MaybanTrusteesBerhadforMAAKLHDBSFlexiFund


SUBSTANTIAL SHAREHOLDERS

No.ofOrdinarySharesHeldName Direct % Indirect %

UOAHoldingsSdnBhd 803,892,300 67.22 20(1) *

UnitedOverseasAustraliaLtd 2,020,000 0.17 803,892,320(2) 67.22

GriyajayaSdnBhd - - 805,912,320(3) 67.39

TransmetroSdnBhd 20 * 805,912,320(4) 67.39

KongChongSoon@ChiSuim - - 806,012,340(5) 67.40

KongPakLim - - 805,912,320(6) 67.39

EmployeesProvidentFund 60,053,100 5.02 - -

Notes: *Negligible

(1) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughLTGDevelopmentSdnBhd).

(2) DeemedinterestedbyvirtueofUnitedOverseasAustraliaLtdbeingentitledtocontroltheexerciseof100%ofthevotesattachedtothevotingsharesinUOAHoldingsSdnBhd.

(3) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughUnitedOverseasAustraliaLtdandasanassociateofKongChongSoon@ChiSuimandKongPakLim)anddeemedinterestedbyvirtueofUnitedOverseasAustraliaLtdbeingentitledtocontroltheexerciseof100%ofthevotesattachedtothevotingsharesofUOAHoldingsSdnBhd.

(4) DeemedinterestedbyvirtueofSection6AoftheAct(throughitsshareholdingsinGriyajayaSdnBhdandTransmetroCorporationSdnBhd,itswhollyownedsubsidiary,inUnitedOverseasAustraliaLtd)andasanassociateofKongChongSoon@ChiSuim.

(5) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociatesGriyajayaSdnBhdandTransmetroSdnBhdinUnitedOverseasAustraliaLtd,andTransmetroSdnBhd,GlobalTransactSdnBhdandhischildrenintheCompany).

(6) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociateGriyajayaSdnBhdinUnitedOverseasAustraliaLtd.)

AnalysisofShareholdings(Cont’d)


STATEMENT OF DIRECTORS’ INTERESTAS AT 30 MARCH 2012

No.ofOrdinarySharesHeldName Direct % Indirect %

TanSriDato’AlwibinJantan 700,000 0.06 - -

KongChongSoon@ChiSuim - - 806,012,340(1) 67.39

KongPakLim - - 805,912,320(2) 67.39

TanChokKianAlphonsus 300,000 0.03 - -

AlanCharlesWinduss 100,000 0.01 - -

Notes:

(1) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociatesGriyajayaSdnBhdandTransmetroSdnBhdinUnitedOverseasAustraliaLtd,andTransmetroSdnBhd,GlobalTransactSdnBhdandhischildrenintheCompany).

(2) DeemedinterestedbyvirtueofSection6AoftheAct(shareholdingsheldthroughhisassociateGriyajayaSdnBhdinUnitedOverseasAustraliaLtd).


NOTICE OF ANNUAL GENERAL MEETING

AGENDA

AS ORDINARY BUSINESS

1 ToreceivetheAuditedFinancialStatementsforthefinancialyearended31December2011togetherwiththeDirectors’andAuditors’Reportsthereon.

2 ToapproveaFirstandFinalSingleTierDividendof10senpershareforthefinancial

yearended31December2011.

3 ToapprovethepaymentofDirectors’feesamountingtoRM90,000forthefinancialyearended31December2011.

4 Toconsiderandifthoughtfit,topassthefollowingresolution: “THATpursuant toSection129of theCompaniesAct,1965,TanSriDato’Alwibin

Jantan,beandisherebyre-appointedasaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”

5 Toconsiderandifthoughtfit,topassthefollowingresolution: “THATpursuanttoSection129oftheCompaniesAct,1965,MrKongChongSoon@

ChiSuim,beandisherebyre-appointedasaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”

6 Toconsiderandifthoughtfit,topassthefollowingresolution: “THAT pursuant to Section 129 of the Companies Act, 1965, Mr Tan Chok Kian

Alphonsus,beandisherebyre-appointedasaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”

7 Toconsiderandifthoughtfit,topassthefollowingresolution: “THATpursuanttoSection129oftheCompaniesAct,1965,MrAlanCharlesWinduss,

beand isherebyre-appointedasaDirectorof theCompanytoholdofficeuntil theconclusionofthenextAnnualGeneralMeetingoftheCompany.”

8 Tore-appointMessrsMazarsasAuditorsoftheCompanyfortheensuingyearandtoauthorisetheDirectorstofixtheirremuneration.

NOTICE IS HEREBY GIVEN THAT the Eighth Annual General Meeting of UOA Development Bhd will be held atBallroom1,GrandDorsettSubangHotel,JalanSS12/1,47500SubangJaya,SelangorDarulEhsanonTuesday,29May2012at10.00a.m.forthefollowingpurposes:

Resolution1

Resolution2

Resolution3

Resolution4

Resolution5

Resolution6

Resolution7

Resolution8


NoticeofAnnualGeneralMeeting(Cont’d)

AS SPECIAL BUSINESS

Toconsiderandifthoughtfit,topassthefollowingresolutionasanOrdinaryResolution:

9 Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965

“THAT subject always to the Companies Act, 1965, the Company’s Articles ofAssociationandtheapprovalsoftherelevantgovernmentand/orregulatoryauthorities,theDirectorsbeandareherebyempoweredpursuanttoSection132DoftheCompaniesAct,1965toissueandallotnewsharesintheCompanyatanytimeatsuchprice,uponsuchtermsandconditions,forsuchpurposesandtosuchperson(s)whomsoeverastheDirectorsmay in theirabsolutediscretiondeemfitandexpedient in the interestof the Company, provided that the aggregate number of shares issued pursuant tothisresolutiondoesnotexceed10%ofthetotalissuedsharecapitaloftheCompanyforthetimebeingandTHATtheDirectorsbeandarealsoempoweredtoobtaintheapprovalfromBursaMalaysiaSecuritiesBerhadforthelistingofandquotationfortheadditionalsharessoissuedandTHATsuchauthorityshallcontinuetobeinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”

10 Totransactanyotherbusinessforwhichduenoticehasbeengiven.

ByOrderoftheBoardYAP KAI WENG (MAICSA74580)WONG YOKE LENG (MAICSA7032314)CompanySecretaries

KualaLumpur7May2012

Resolution9

NOTES:

1. Onlydepositorswhosenamesappear intheRecordofDepositorsasat18May2012shallberegardedasmembersandbe

entitledtoattendandvoteattheEighthAnnualGeneralMeeting.AmemberoftheCompanyentitledtoattendandvote,isentitled

toappointaproxyorproxiestoattendandvoteinhisstead.AproxyneednotbeamemberoftheCompany.

2. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorofhisattorneydulyauthorisedinwriting,

oriftheappointerisacorporation,eitherunderthecorporation’sseal,orunderthehandofanofficerorattorneydulyauthorised.

3. Ifamemberappoints2proxies,theappointmentwillbeinvalidunlesshestatesthenumberofsharestoberepresentedbyeach

proxy.

4. Whereamember isanAuthorisedNomineeasdefinedunder theSecurities Industry (CentralDepositories)Act1991, itmay

appointatleast1proxybutnotmorethan2proxiesinrespectofeachSecuritiesAccountitholdswithordinarysharesofthe

CompanystandingtothecreditofthesaidSecuritiesAccount.

5. TheinstrumentappointingaproxymustbedepositedattheShareRegistraratLevel6,SymphonyHouse,PusatDaganganDana

1,JalanPJU1A/46,47301PetalingJaya,SelangorDarulEhsannotlessthan48hoursbeforethetimeappointedforholdingthe

meetingoranyadjournmentthereof.


STATEMENT ACCOMPANYINGNOTICE OF ANNUAL GENERAL MEETING

1. Directorswhoarestandingforre-appointmentpursuanttoSection129oftheCompaniesAct,1965are:

a) TanSriDato’AlwibinJantanb) MrKongChongSoon@ChiSuimc) MrTanChokKianAlphonsusd) MrAlanCharlesWinduss

DetailsoftheaforesaidDirectorsaresetoutintheProfileofDirectorsappearingonpages18to19oftheAnnualReport.TheirshareholdingsintheCompany(ifany)aresetoutonpage36oftheAnnualReport.

EXPLANATORY NOTES TO SPECIAL BUSINESS

Ordinary Resolution 9 - Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965

TheproposedOrdinaryResolution9,ifpassed,willgivetheDirectorsoftheCompanytheflexibilitytoissueandallotnewsharesintheCompanyuptoanamountnotexceedingintotal10%oftheissuedsharecapitaloftheCompanyforsuchpurposesastheDirectorsconsiderwouldbeintheinterestoftheCompany.

TheCompanycontinues toconsideropportunities toenhance theearningspotentialof theCompanyand if suchopportunitiesinvolvetheissuanceofnewshares,theDirectorswouldhavetoconveneageneralmeetingtoapprovetheissuanceofnewshareseventhoughthenumberinvolvedmaybelessthan10%oftheissuedcapital.Inordertoavoidanydelayandcostsinvolvedinconveningageneralmeetingtoapprovetheissuanceofnewshares,itisthusconsideredappropriatethattheDirectorsbeempoweredtoissuenewsharesintheCompany,uptoanamountnotexceedingintotal10%oftheissuedsharecapitaloftheCompanyatanytime,forsuchpurposes.

Theauthority for theallotmentof newshareswill provideflexibility to theCompany for anypotential fund raisingactivities,includingbutnotlimitedtoplacementofshares,forpurposeoffundingfutureinvestments,workingcapitaland/oracquisition.ThismandateisobtainedforthefirsttimefromtheshareholdersoftheCompanyafteritslistingon8June2011andunlessrevokedorvariedatageneralmeetingwillexpireattheconclusionofthenextAnnualGeneralMeetingoftheCompany.

NoticeofAnnualGeneralMeeting(Cont’d)

UOA DEVELOPMENT BHD (CompanyNo.654023-V)

(IncorporatedinMalaysiaundertheCompaniesAct,1965)

No. of Shares held

I/We _____________________________________________________NRICNo/CompanyNo._________________________

of _____________________________________________________TelNo________________________________________

beingamemberofUOADevelopmentBhd,herebyappoint

_________________________________________________________________________________________________________(nameofproxyasperNRIC)

NRICNo./IDNo._____________________________________,numberofsharestoberepresented__________________

orfailinghim/her,_________________________________________________________________________________________(nameofproxyasperNRIC)

NRICNo./IDNo._____________________________________,numberofsharestoberepresented__________________

orfailinghim/hertheChairmanoftheMeetingasmy/ourproxytovoteforme/usonmy/ourbehalfattheEighthAnnualGeneralMeetingoftheCompanytobeheldatBallroom1,GrandDorsettSubangHotel,JalanSS12/1,47500SubangJaya,SelangorDarulEhsanonTuesday,29May2012at10.00a.m.,andatanyadjournmentthereofinthemannerindicatedbelow:

(Pleaseindicatewithan“x”inthespaceprovidedhowyouwishyourvotetobecastontheresolutionsspecified.Ifnospecificdirectionastothevotingisgiven,theProxywillvoteorabstainathis/herdiscretion.

SignatureofShareholder(s)/CommonSeal Date:

NOTES:

1. OnlydepositorswhosenamesappearintheRecordofDepositorsasat18May2012shallberegardedasmembersandbeentitledtoattendandvoteattheEighthAnnualGeneralMeeting.AmemberoftheCompanyentitledtoattendandvote,isentitledtoappointaproxyorproxiestoattendandvoteinhisstead.AproxyneednotbeamemberoftheCompany.

2. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorofhisattorneydulyauthorisedinwriting,oriftheappointerisacorporation,eitherunderthecorporation’sseal,orunderthehandofanofficerorattorneydulyauthorised.

3. Ifamemberappoints2proxies,theappointmentwillbeinvalidunlesshestatesthenumberofsharestoberepresentedbyeachproxy.

4. WhereamemberisanAuthorisedNomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act1991,itmayappointatleast1proxybutnotmorethan2proxiesinrespectofeachSecuritiesAccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidSecuritiesAccount.

5. TheinstrumentappointingaproxymustbedepositedattheShareRegistraratLevel6,SymphonyHouse,PusatDaganganDana1,JalanPJU1A/46,47301PetalingJaya,SelangorDarulEhsannotlessthan48hoursbeforethetimeappointedforholdingthemeetingoranyadjournmentthereof.

Resolution1 ToreceivetheAuditedFinancialStatementsforthefinancialyearended31 December 2011 together with the Directors’ and Auditors’ Reportsthereon.

Resolution2 ToapproveaFirstandFinalSingleTierDividendof10senpershareforthefinancialyearended31December2011.

Resolution3 ToapprovethepaymentofDirectors’feesamountingtoRM90,000forthefinancialyearended31December2011.

Resolution4 Tore-appointTanSriDato’AlwibinJantanasDirectoroftheCompany.

Resolution5 To re-appoint Mr Kong Chong Soon @ Chi Suim as Director of theCompany.

Resolution6 Tore-appointMrTanChokKianAlphonsusasDirectoroftheCompany.

Resolution7 Tore-appointMrAlanCharlesWindussasDirectoroftheCompany.

Resolution8 Tore-appointMessrsMazarsasAuditorsoftheCompanyfortheensuringyearandtoauthorisetheDirectorstofixtheirremuneration.

Special Business

Resolution9 Toauthorise theDirectors toallotand issuesharespursuant toSection132DoftheCompaniesAct,1965.

Resolutions Ordinary Business For Against

Thenfoldhere

1stfoldhere

AffixStampHere

SYMPHONY SHARE REGISTRARS SDN BHDLevel6,SymphonyHousePusatDaganganDana1

JalanPJU1A/4647301PetalingJaya

SelangorDarulEhsan

UOA DEVELOPMENT BHD (654023-V)

Wisma UOA Bangsar SouthTower 1, Avenue 3

The Horizon, Bangsar SouthNo. 8, Jalan Kerinchi

59200 Kuala Lumpur, Malaysia

Telephone: +603 2245 9188 Facsimile: +603 2245 9198

www.uoadev.com.my

UO

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PM

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HD

| Annual R

eport 2011

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