incorporated in malaysia statement by directors … statutory declaration chin suan yong ......

46

Ann

ual R

epor

t 201

6

Malayan United Industries Berhad3809-W

Incorporated in Malaysia

STATEMENT BY DIRECTORS

Tan Sri Dato' Paduka Dr Mazlan bin Ahmad

Dr Wong Hong Meng

STATUTORY DECLARATION

Chin Suan Yong

Before me

P.ValliamahCommissioner for Oaths

Pursuant to Section 169 (15) of the Companies Act, 1965

Subscribed and solemnly declared by the abovenamed Chin Suan Yong at Kuala Lumpur in the FederalTerritory on 24 October 2016.


We, Tan Sri Dato' Paduka Dr Mazlan bin Ahmad and Dr Wong Hong Meng, being two of the Directors ofMalayan United Industries Berhad, state that in the opinion of the Directors, the financial statements set out onpages 49 to 135 have been drawn up in accordance with the Financial Reporting Standards and therequirements of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial positionof the Group and of the Company as at 30 June 2016 and of their financial performance and cash flows for thefinancial period then ended.

I, Chin Suan Yong, being the officer primarily responsible for the financial management of Malayan UnitedIndustries Berhad, do solemnly and sincerely declare that the financial statements set out on pages 49 to 136are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiouslybelieving the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

24 October 2016

Signed on behalf of the Board in accordance with a resolution by the Directors.

In the opinion of the Directors, the information set out in Note 37 on page 136 to the financial statements hasbeen compiled in accordance with the Guidance on Special Matter No.1, Determination of Realised and UnrealisedProfits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements , issued bythe Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa MalaysiaSecurities Berhad.

1

S T a T E m E N T b Y d i r E C T O r S

Pursuant To Section 169 (15) Of The Companies Act, 1965



Dr Wong Hong Meng


Chin Suan Yong

Before me







24 October 2016



1

S T a T u T O r Y d E C l a r a T i O N

Pursuant To Section 169 (16) Of The Companies Act, 1965

47

Ann

ual R

epor

t 201

6





Dr Wong Hong Meng


Chin Suan Yong

Before me







24 October 2016



1



Dr Wong Hong Meng


Chin Suan Yong

Before me







24 October 2016



1

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF

Report on the Financial Statements

Directors' Responsibility for the Financial Statements

Auditors' Responsibility

Opinion

MALAYAN UNITED INDUSTRIES BERHAD (3809-W)

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted ouraudit in accordance with approved standards on auditing in Malaysia. Those standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

We have audited the financial statements of Malayan United Industries Berhad, which comprise the statements offinancial position as at 30 June 2016 of the Group and of the Company, and the statements of profit or loss,statements of other comprehensive income, statements of changes in equity and statements of cash flows of theGroup and of the Company for the financial period then ended, and a summary of significant accounting policiesand other explanatory information, as set out on pages 49 to 135.

In our opinion, the financial statements give a true and fair view of the financial position of the Group and of theCompany as of 30 June 2016 and of their financial performance and cash flows for the financial period thenended in accordance with Financial Reporting Standards and the requirements of the Companies Act, 1965 inMalaysia.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on our judgement, including the assessment of risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, we consider internal control relevant to the entity’s preparation of financial statements that give atrue and fair view in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates madeby the Directors, as well as evaluating the overall presentation of the financial statements.

The Directors of the Company are responsible for the preparation of financial statements so as to give a true andfair view in accordance with Financial Reporting Standards and the requirements of the Companies Act, 1965 inMalaysia. The Directors are also responsible for such internal control as the Directors determine is necessary toenable the preparation of financial statements that are free from material misstatement, whether due to fraud orerror.

1

i N d E p E N d E N T a u d i T O r S ’ r E p O r T

To The Members Of Malayan United Industries Berhad

48

Ann

ual R

epor

t 201

6



i N d E p E N d E N T a u d i T O r S ’ r E p O r T ( C o n t ’ d )

49

Ann

ual R

epor

t 201

6



S T a T E m E N T S O f p r O f i T O r l O S S

For The Financial Period From 1 January 2015 To 30 June 2016

50

Ann

ual R

epor

t 201

6



S T a T E m E N T S O f O T h E r C O m p r E h E N S i v E i N C O m E


51

Ann

ual R

epor

t 201

6



S T a T E m E N T S O f f i N a N C i a l p O S i T i O N

As At 30 June 2016

52

Ann

ual R

epor

t 201

6



S T a T E m E N T S O f f i N a N C i a l p O S i T i O N ( C o n t ’ d )

53

Ann

ual R

epor

t 201

6


Incorporated in MalaysiaST

ATEM

ENTS

OF

CHAN

GES I

N E

QUI

TY

Non

-co

ntro

lling

Total

Inter

ests

Equi

ty D

istrib

utab

leEx

chan

geAv

ailab

le-Sh

are

Shar

eRe

valu

ation

Tran

slatio

nCa

pital

for-s

aleGe

nera

lAc

cum

ulate

dCa

pital

Prem

ium

Rese

rveRe

serve

Rese

rveRe

serve

Rese

rveLo

sses

Total

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0

At 1.

1.201

4-A

s prev

iously

repo

rted

2,932

,561

22

0,305

19

,304

65,47

1

3,204

4,4

03

25

,257

(2,49

2,832

)

777,6

73

247,9

05

1,025

,578

-Effe

ct of

prior

year

adjus

tmen

t (No

te 35

)-

-

-

-

-

-

-

3,020

3,0

20

1,5

99

4,6

19

-A

s Res

tated

2,932

,561

22

0,305

19

,304

65,47

1

3,204

4,4

03

25

,257

(2,48

9,812

)

780,6

93

249,5

04

1,030

,197

Loss

after

taxati

on, a

s res

tated

-

-

-

-

-

-

-

(1,

243)

(1,24

3)

(1,32

8)

(2,57

1)

Fair

value

gain

on av

ailab

le-fo

r-sale

fina

ncial

asse

ts, ne

t of t

ax-

-

-

-

-

4,727

-

-

4,727

1,163

5,890

Forei

gn cu

rrenc

y tran

slatio

ns, n

et of

tax

-

-

-

23,44

2

-

-

-

-

23

,442

(70

8)

22

,734

Sh

are of

othe

r com

preh

ensiv

e gain

/(los

s) of

asso

ciates

, net

of ta

x-

-

-

2,5

41

-

-

-

(20,46

0)

(17

,919)

-

(17

,919)

To

tal co

mpreh

ensiv

e inc

ome/

(loss)

-

-

-

25,98

3

-

4,7

27

-

(21

,703)

9,007

(873)

8,134

Tran

sactio

ns w

ith ow

ners:

- L

oss o

n acc

retion

of in

teres

t in a

subs

idiary

-

-

-

-

-

-

-

(5,

599)

(5,59

9)

(7,75

7)

(13,35

6)

Divid

end p

aid to

non-

cont

rollin

g sha

rehold

ers of

subs

idiari

es-

-

-

-

-

-

-

-

-

(5,73

5)

(5,73

5)

-

-

-

-

-

-

-

(5,

599)

(5,59

9)

(13,49

2)

(19,09

1)

At 31

.12.20

142,9

32,56

1

220,3

05

19,30

4

91

,454

3,2

04

9,130

25,25

7

(2,

517,1

14)

78

4,101

23

5,139

1,0

19,24

0

The a

ttache

d note

s form

an in

tegral

part

of the

se fin

ancia

l state

ments

.

31.12

.2014

Grou

p

For t

he fin

ancia

l peri

od fro

m 1 J

anua

ry 20

15 to

30 Ju

ne 20

16

Attri

butab

le to

Own

ers o

f the

Com

pany

Non

-Dist

ribut

able

12

ST

aT

Em

EN

TS

Of

Ch

aN

gE

S i

N E

Qu

iTY

For Th

e Fin

ancia

l Per

iod

From

1 Ja

nuar

y 201

5 To

30

June

201

6

STA

TE

ME

NT

S O

F C

HA

NG

ES

IN E

QU

ITY

Non

-co

ntro

lling

Tota

lIn

tere

sts

Equ

ity D

istri

buta

ble

Exc

hang

eAv

aila

ble-

Shar

eSh

are

Rev

alua

tion

Tran

slatio

nCa

pita

lfo

r-sal

eG

ener

alAc

cum

ulat

edCa

pita

lPr

emiu

mR

eser

veR

eser

veR

eser

veR

eser

veR

eser

veLo

sses

Tota

lR

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00

At 1

.1.2

014

-As p

revi

ously

repo

rted

2,93

2,56

1

22

0,30

5

19

,304

65

,471

3,20

4

4,

403

25

,257

(2

,492

,832

)

777,

673

24

7,90

5

1,

025,

578

-Eff

ect o

f prio

r yea

r adj

ustm

ent (

Not

e 35

)-

-

-

-

-

-

-

3,

020

3,02

0

1,59

9

4,61

9

-As R

esta

ted

2,93

2,56

1

22

0,30

5

19

,304

65

,471

3,20

4

4,

403

25

,257

(2

,489

,812

)

780,

693

24

9,50

4

1,

030,

197

Loss

afte

r tax

atio

n, a

s res

tate

d-

-

-

-

-

-

-

(1

,243

)

(1

,243

)

(1

,328

)

(2

,571

)

Fa

ir va

lue

gain

on

avail

able

-for-s

ale fi

nanc

ial a

sset

s, ne

t of t

ax-

-

-

-

-

4,72

7

-

-

4,72

7

1,16

3

5,89

0

Fore

ign

curr

ency

tran

slatio

ns, n

et o

f tax

-

-

-

23,4

42

-

-

-

-

23,4

42

(7

08)

22

,734

Shar

e of

oth

er c

ompr

ehen

sive

gain

/(lo

ss) o

f ass

ociat

es, n

et o

f tax

-

-

-

2,54

1

-

-

-

(2

0,46

0)

(17,

919)

-

(1

7,91

9)

To

tal c

ompr

ehen

sive

inco

me/

(loss

)-

-

-

25

,983

-

4,72

7

-

(21,

703)

9,

007

(8

73)

8,

134

Tran

sact

ions

with

ow

ners

: - L

oss o

n ac

cret

ion

of in

tere

st in

a su

bsid

iary

-

-

-

-

-

-

-

(5,5

99)

(5,5

99)

(7,7

57)

(13,

356)

Div

iden

d pa

id to

non

-con

trolli

ng sh

areh

olde

rs o

f sub

sidiar

ies

-

-

-

-

-

-

-

-

-

(5

,735

)

(5

,735

)

-

-

-

-

-

-

-

(5

,599

)

(5

,599

)

(1

3,49

2)

(1

9,09

1)

At 3

1.12

.201

42,

932,

561

220,

305

19,3

04

91,4

54

3,

204

9,13

0

25,2

57

(2,5

17,1

14)

78

4,10

1

235,

139

1,01

9,24

0

The a

ttach

ed n

otes f

orm

an in

tegra

l par

t of t

hese

finan

cial s

tatem

ents.

31.1

2.20

14

Gro

up

For t

he fi

nanc

ial p

eriod

from

1 Ja

nuar

y 201

5 to

30 Ju

ne 2

016

Attri

buta

ble

to O

wne

rs o

f the

Com

pany

Non

-Dis

tribu

tabl

e

12

54

Ann

ual R

epor

t 201

6


Incorporated in MalaysiaST

ATEM

ENTS

OF

CHAN

GES I

N E

QUI

TY (C

ont'd

)

Non

-co

ntro

lling

Total

Inter

ests

Equi

ty D

istrib

utab

leEx

chan

geAv

ailab

le-Sh

are

Shar

eRe

valu

ation

Tran

slatio

nCa

pital

for-s

aleGe

nera

lAc

cum

ulate

dCa

pital

Prem

ium

Rese

rveRe

serve

Rese

rveRe

serve

Rese

rveLo

sses

Total

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0

At 1.

1.201

5: (A

s res

tated

)2,9

32,56

1

220,3

05

19,30

4

91,45

4

3,204

9,1

30

25

,257

(2,51

7,114

)

784,1

01

235,1

39

1,019

,240

(Los

s)/Pr

ofit

after

taxati

on

-

-

-

-

-

-

-

(136,5

37)

(13

6,537

)

13

,457

(12

3,080

)

Fa

ir va

lue lo

ss on

avail

able-

for-s

ale fi

nanc

ial as

sets,

net o

f tax

-

-

-

-

-

(1,66

7)

-

-

(1,

667)

(3

48)

(2,01

5)

Forei

gn cu

rrenc

y tran

slatio

ns, n

et of

tax

-

-

-

63,73

8

-

-

-

-

63

,738

34

0

64

,078

Ca

pital

reserv

es of

wind

ing up

a su

bsidi

ary de

recog

nised

-

-

-

-

30

0

-

-

-

30

0

-

300

Reali

sation

of re

serv

es on

disso

lved a

ssocia

te-

-

-

(3

97)

(3,88

7)

-

-

4,284

-

-

-

Sh

are of

othe

r com

preh

ensiv

e (los

s)/ga

in of

asso

ciates

, net

of ta

x-

-

-

(4

,584)

5,6

26

-

-

-

1,042

-

1,0

42

To

tal co

mpreh

ensiv

e inc

ome/

(loss)

-

-

-

58,75

7

2,039

(1,

667)

-

(132,2

53)

(7

3,124

)

13,44

9

(59,6

75)

Tr

ansac

tions

with

owne

rs: -

Cap

ital d

istrib

ution

paid

to no

n-co

ntro

lling s

hareh

olders

of a

subs

idiary

-

-

-

-

-

-

-

-

-

(19

,614)

(19

,614)

Di

viden

d paid

to no

n-co

ntro

lling s

hareh

olders

of su

bsidi

aries

-

-

-

-

-

-

-

-

-

(4

,614)

(4

,614)

-

-

-

-

-

-

-

-

-

(2

4,228

)

(24,2

28)

At 30

.6.20

162,9

32,56

1

220,3

05

19,30

4

150,2

11

5,243

7,4

63

25

,257

(2,64

9,367

)

71

0,977

22

4,360

93

5,337

The a

ttache

d note

s form

an in

tegral

part

of the

se fin

ancia

l state

ments

.

30.6.

2016

Attri

butab

le to

Own

ers o

f the

Com

pany

Grou

p

For t

he fin

ancia

l peri

od fro

m 1 J

anua

ry 20

15 to

30 Ju

ne 20

16

Non

-Dist

ribut

able

13

STA

TE

ME

NT

S O

F C

HA

NG

ES

IN E

QU

ITY

(Con

t'd)

Non

-co

ntro

lling

Tota

lIn

tere

sts

Equ

ity D

istri

buta

ble

Exc

hang

eAv

aila

ble-

Shar

eSh

are

Rev

alua

tion

Tran

slatio

nCa

pita

lfo

r-sal

eG

ener

alAc

cum

ulat

edCa

pita

lPr

emiu

mR

eser

veR

eser

veR

eser

veR

eser

veR

eser

veLo

sses

Tota

lR

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00R

M'0

00

At 1

.1.2

015:

(A

s res

tate

d)2,

932,

561

220,

305

19,3

04

91

,454

3,20

4

9,

130

25

,257

(2

,517

,114

)

784,

101

23

5,13

9

1,01

9,24

0

(Los

s)/P

rofit

afte

r tax

atio

n -

-

-

-

-

-

-

(1

36,5

37)

(136

,537

)

13,4

57

(1

23,0

80)

Fa

ir va

lue

loss

on

avail

able

-for-s

ale fi

nanc

ial a

sset

s, ne

t of t

ax-

-

-

-

-

(1,6

67)

-

-

(1

,667

)

(3

48)

(2

,015

)

Fo

reig

n cu

rren

cy tr

ansla

tions

, net

of t

ax-

-

-

63

,738

-

-

-

-

63

,738

340

64,0

78

Ca

pita

l res

erve

s of w

indi

ng u

p a

subs

idiar

y de

reco

gnise

d-

-

-

-

300

-

-

-

300

-

300

Re

alisa

tion

of re

serv

es o

n di

ssol

ved

asso

ciat

e-

-

-

(3

97)

(3

,887

)

-

-

4,

284

-

-

-

Sh

are

of o

ther

com

preh

ensiv

e (lo

ss)/

gain

of a

ssoc

iates

, net

of t

ax-

-

-

(4

,584

)

5,

626

-

-

-

1,

042

-

1,04

2

Tota

l com

preh

ensiv

e in

com

e/(lo

ss)

-

-

-

58,7

57

2,

039

(1,6

67)

-

(1

32,2

53)

(73,

124)

13,4

49

(5

9,67

5)

Tran

sact

ions

with

ow

ners

: - C

apita

l dist

ribut

ion

paid

to n

on-c

ontro

lling

shar

ehol

ders

of a

subs

idiar

y-

-

-

-

-

-

-

-

-

(19,

614)

(19,

614)

Div

iden

d pa

id to

non

-con

trolli

ng sh

areh

olde

rs o

f sub

sidiar

ies

-

-

-

-

-

-

-

-

-

(4

,614

)

(4

,614

)

-

-

-

-

-

-

-

-

-

(2

4,22

8)

(2

4,22

8)

At 3

0.6.

2016

2,93

2,56

1

22

0,30

5

19

,304

150,

211

5,24

3

7,

463

25

,257

(2

,649

,367

)

710,

977

22

4,36

0

935,

337

The a

ttach

ed n

otes f

orm

an in

tegra

l par

t of t

hese

finan

cial s

tatem

ents.

30.6

.201

6

Attri

buta

ble

to O

wne

rs o

f the

Com

pany

Gro

up

For t

he fi

nanc

ial p

eriod

from

1 Ja

nuar

y 201

5 to

30 Ju

ne 2

016

Non

-Dis

tribu

tabl

e

13

ST

aT

Em

EN

TS

Of

Ch

aN

gE

S i

N E

Qu

iTY

(C

on

t’d

)

55

Ann

ual R

epor

t 201

6


Incorporated in Malaysia S

TA

TE

ME

NT

S O

F C

HA

NG

ES

IN E

QU

ITY

(Con

t'd)

Com

pany

Shar

eSh

are

Rev

alua

tion

Accu

mul

ated

Capi

tal

Prem

ium

Res

erve

Loss

esTo

tal

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

At 1

.1.2

014

2,93

2,56

1

220,

305

26

,264

(1

,034

,340

)

2,14

4,79

0

Loss

afte

r tax

atio

n/To

tal c

ompr

ehen

sive

loss

for t

he fi

nanc

ial y

ear

-

-

-

(1,0

03,3

86)

(1

,003

,386

)

At 3

1.12

.201

42,

932,

561

22

0,30

5

26,2

64

(2,0

37,7

26)

1,

141,

404

At 1

.1.2

015

2,93

2,56

1

22

0,30

5

26,2

64

(2

,037

,726

)

1,14

1,40

4

Loss

afte

r tax

atio

n/To

tal c

ompr

ehen

sive

loss

for t

he fi

nanc

ial p

erio

d-

-

-

(1

98,7

07)

(198

,707

)

At 3

0.6.

2016

2,93

2,56

1

22

0,30

5

26,2

64

(2

,236

,433

)

942,

697

The a

ttach

ed n

otes f

orm

an in

tegra

l par

t of t

hese

finan

cial s

tatem

ents.

30.6

.201

6

31.1

2.20

14

Non

-Dis

tribu

tabl

e

For t

he fi

nanc

ial p

eriod

from

1 Ja

nuar

y 201

5 to

30 Ju

ne 2

016

14

ST

AT

EM

EN

TS

OF

CH

AN

GE

S IN

EQ

UIT

Y (C

ont'd

)

Com

pany

Shar

eSh

are

Rev

alua

tion

Accu

mul

ated

Capi

tal

Prem

ium

Res

erve

Loss

esTo

tal

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

At 1

.1.2

014

2,93

2,56

1

220,

305

26

,264

(1

,034

,340

)

2,14

4,79

0

Loss

afte

r tax

atio

n/To

tal c

ompr

ehen

sive

loss

for t

he fi

nanc

ial y

ear

-

-

-

(1,0

03,3

86)

(1

,003

,386

)

At 3

1.12

.201

42,

932,

561

22

0,30

5

26,2

64

(2,0

37,7

26)

1,

141,

404

At 1

.1.2

015

2,93

2,56

1

22

0,30

5

26,2

64

(2

,037

,726

)

1,14

1,40

4

Loss

afte

r tax

atio

n/To

tal c

ompr

ehen

sive

loss

for t

he fi

nanc

ial p

erio

d-

-

-

(1

98,7

07)

(198

,707

)

At 3

0.6.

2016

2,93

2,56

1

22

0,30

5

26,2

64

(2

,236

,433

)

942,

697

The a

ttach

ed n

otes f

orm

an in

tegra

l par

t of t

hese

finan

cial s

tatem

ents.

30.6

.201

6

31.1

2.20

14

Non

-Dis

tribu

tabl

e

For t

he fi

nanc

ial p

eriod

from

1 Ja

nuar

y 201

5 to

30 Ju

ne 2

016

14

56

Ann

ual R

epor

t 201

6



S T a T E m E N T S O f C a S h f l O W S


57

Ann

ual R

epor

t 201

6



58

Ann

ual R

epor

t 201

6



S T a T E m E N T S O f C a S h f l O W S ( C o n t ’ d )

59

Ann

ual R

epor

t 201

6



N O T E S T O T h E f i N a N C i a l S T a T E m E N T S

As At 30 June 2016

60

Ann

ual R

epor

t 201

6



N O T E S T O T h E f i N a N C i a l S T a T E m E N T S ( C o n t ’ d )

61

Ann

ual R

epor

t 201

6



62

Ann

ual R

epor

t 201

6




3. Financial Risk Management Objectives and Policies (Cont'd)(e)

30.6.2016 31.12.2014Loss after tax RM'000 RM'000- increase by 5% (31.12.2014: 5%) 2 13 - decrease by 5% (31.12.2014: 5%) (2) (13)

Other comprehensive (loss)/income- increase by 5% (31.12.2014: 5%) 384 510 - decrease by 5% (31.12.2014: 5%) (384) (510)

4. Significant Accounting Policies

(a) Basis of Preparation and Accounting

(i)

(ii)

FRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) 1 January 2018FRS 14 Regulatory Deferral Accounts 1 January 2016Amendments to FRS 2: Classification and Measurement of Share-based Payment Transactions 1 January 2018Amendments to FRS 10 and FRS 128: Sale or Contribution of Assets between an Investor and Deferred until its Associate or Joint Venture further noticeAmendments to FRS 11 : Accounting for Acquisitions of Interests in Joint Operations 1 January 2016Amendments to FRS 10, FRS 12 and FRS 128: Investment Entities – Applying the 1 January 2016 Consolidation ExceptionAmendments to FRS 101: Disclosure Initiative 1 January 2016Amendments to FRS 107: Disclosure Initiative 1 January 2017Amendments to FRS 112: Recognition of Deferred Tax Assets for Unrealised Losses 1 January 2017Amendments to FRS 116 and FRS 138: Clarification of Acceptable Methods of Depreciation and 1 January 2016 AmortisationAmendments to FRS 127: Equity Method in Separate Financial Statements 1 January 2016Annual Improvements to FRSs 2012 – 2014 Cycle 1 January 2016

The Group's exposure to equity price risk arises from quoted investments held by the Group. The Group manages its price riskarising from the investments in equity securities by diversifying its portfolio. Quoted equity investments are in Malaysia and listedon the Bursa Securities.

Market risk is the risk that the fair value of future cash flows of the financial instruments of the Group would fluctuate because ofchanges in market prices (other than interest or exchange rates).

These instruments are classified as available-for-sale financial assets.

The following table demonstrates the sensitivity of the profit after tax of the Group if the market price of the quoted investmentshad been 5% higher or lower arising as a result of higher or lower fair value gains on financial assets designated at fair value throughprofit or loss and increase or decrease in the fair values of equity instruments classified as available-for-sale with all other variablesheld constant:

Sensitivity analysis for market price risk

There has been no change to the exposure of the Group to market risks or the manner in which these risks are managed andmeasured.

Effective DateFRSs and/or IC Interpretations (Including The Consequential Amendments)

Market Risk

Group

The financial statements of the Group and of the Company set out on pages 49 to 135 are prepared under the historical costconvention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, andin compliance with Financial Reporting Standards (“FRSs”) and the requirements of the Companies Act, 1965 in Malaysia.However, Note 37 to the financial statements set out on page 136 has been prepared in accordance with Guidance on SpecialMatter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities BerhadListing Requirements , as issued by the Malaysian Institute of Accountants ("MIA Guidance") and the directive of Bursa MalaysiaSecurities Berhad.

No new accounting standards and interpretations (including the consequential amendments) have been adopted by theGroup and of the Company during the current financial period.The Group and the Company has not applied in advance the following accounting standards and/or interpretations(including the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board("MASB") but are not yet effective for the current financial period:

4

63

Ann

ual R

epor

t 201

6



3. Financial Risk Management Objectives and Policies (Cont'd)(e)

30.6.2016 31.12.2014Loss after tax RM'000 RM'000- increase by 5% (31.12.2014: 5%) 2 13 - decrease by 5% (31.12.2014: 5%) (2) (13)

Other comprehensive (loss)/income- increase by 5% (31.12.2014: 5%) 384 510 - decrease by 5% (31.12.2014: 5%) (384) (510)

4. Significant Accounting Policies

(a) Basis of Preparation and Accounting

(i)

(ii)

FRS 9 Financial Instruments (IFRS 9 issued by IASB in July 2014) 1 January 2018FRS 14 Regulatory Deferral Accounts 1 January 2016Amendments to FRS 2: Classification and Measurement of Share-based Payment Transactions 1 January 2018Amendments to FRS 10 and FRS 128: Sale or Contribution of Assets between an Investor and Deferred until its Associate or Joint Venture further noticeAmendments to FRS 11 : Accounting for Acquisitions of Interests in Joint Operations 1 January 2016Amendments to FRS 10, FRS 12 and FRS 128: Investment Entities – Applying the 1 January 2016 Consolidation ExceptionAmendments to FRS 101: Disclosure Initiative 1 January 2016Amendments to FRS 107: Disclosure Initiative 1 January 2017Amendments to FRS 112: Recognition of Deferred Tax Assets for Unrealised Losses 1 January 2017Amendments to FRS 116 and FRS 138: Clarification of Acceptable Methods of Depreciation and 1 January 2016 AmortisationAmendments to FRS 127: Equity Method in Separate Financial Statements 1 January 2016Annual Improvements to FRSs 2012 – 2014 Cycle 1 January 2016

The Group's exposure to equity price risk arises from quoted investments held by the Group. The Group manages its price riskarising from the investments in equity securities by diversifying its portfolio. Quoted equity investments are in Malaysia and listedon the Bursa Securities.

Market risk is the risk that the fair value of future cash flows of the financial instruments of the Group would fluctuate because ofchanges in market prices (other than interest or exchange rates).

These instruments are classified as available-for-sale financial assets.

The following table demonstrates the sensitivity of the profit after tax of the Group if the market price of the quoted investmentshad been 5% higher or lower arising as a result of higher or lower fair value gains on financial assets designated at fair value throughprofit or loss and increase or decrease in the fair values of equity instruments classified as available-for-sale with all other variablesheld constant:

Sensitivity analysis for market price risk

There has been no change to the exposure of the Group to market risks or the manner in which these risks are managed andmeasured.

Effective DateFRSs and/or IC Interpretations (Including The Consequential Amendments)

Market Risk

Group

The financial statements of the Group and of the Company set out on pages 49 to 135 are prepared under the historical costconvention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, andin compliance with Financial Reporting Standards (“FRSs”) and the requirements of the Companies Act, 1965 in Malaysia.However, Note 37 to the financial statements set out on page 136 has been prepared in accordance with Guidance on SpecialMatter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities BerhadListing Requirements , as issued by the Malaysian Institute of Accountants ("MIA Guidance") and the directive of Bursa MalaysiaSecurities Berhad.

No new accounting standards and interpretations (including the consequential amendments) have been adopted by theGroup and of the Company during the current financial period.The Group and the Company has not applied in advance the following accounting standards and/or interpretations(including the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board("MASB") but are not yet effective for the current financial period:

4

64

Ann

ual R

epor

t 201

6




65

Ann

ual R

epor

t 201

6



66

Ann

ual R

epor

t 201

6




67

Ann

ual R

epor

t 201

6



68

Ann

ual R

epor

t 201

6




69

Ann

ual R

epor

t 201

6



70

Ann

ual R

epor

t 201

6




71

Ann

ual R

epor

t 201

6



72

Ann

ual R

epor

t 201

6




73

Ann

ual R

epor

t 201

6



74

Ann

ual R

epor

t 201

6




75

Ann

ual R

epor

t 201

6



76

Ann

ual R

epor

t 201

6




77

Ann

ual R

epor

t 201

6



78

Ann

ual R

epor

t 201

6




79

Ann

ual R

epor

t 201

6



80

Ann

ual R

epor

t 201

6




81

Ann

ual R

epor

t 201

6



82

Ann

ual R

epor

t 201

6




83

Ann

ual R

epor

t 201

6



84

Ann

ual R

epor

t 201

6




85

Ann

ual R

epor

t 201

6



86

Ann

ual R

epor

t 201

6




8. (Loss)/Profit Before Taxation (Cont'd)

1.1.2015 1.1.2014 1.1.2015 1.1.2014to to to to

30.6.2016 31.12.2014 30.6.2016 31.12.2014Note RM'000 RM'000 RM'000 RM'000

(Restated)

(Loss)/Profit before taxation is stated after crediting:

Gain on disposal of:- Property, plant and equipment - 5 - -

Dividend income from investment in:- quoted in Malaysia 634 - 5,990 - - quoted overseas 12 5 - -

Interest income received from: - a subsidiary - - 2,326 1,433 - term deposits 9,883 7,927 - - - others ^ 7,774 1,042 - -

Reversal of inventories previously written down 19 497 - - -

Property rental income 7,657 4,864 - - Writeback of provision for restoration cost 25 1,170 - - - Writeback of employee benefits 26 301 315 - -

^ Included in this amount of the current financial period is interest of RM7,159,000 received from the purchaser for theextension of the Cut-Off Date to fulfill the Condition Precedent in respect of Share Sale Agreement for the proposeddisposal of shares in a subsidiary as disclosed in Note 21 to the financial statements.

Group Company

The estimated monetary value of benefits-in-kind received by the Directors of the Company, otherwise than in cash from theGroup and the Company amounted to RM12,000 and RM Nil (31.12.2014: RM38,000 and RM Nil) respectively.

45

87

Ann

ual R

epor

t 201

6



8. (Loss)/Profit Before Taxation (Cont'd)

1.1.2015 1.1.2014 1.1.2015 1.1.2014to to to to

30.6.2016 31.12.2014 30.6.2016 31.12.2014Note RM'000 RM'000 RM'000 RM'000

(Restated)

(Loss)/Profit before taxation is stated after crediting:

Gain on disposal of:- Property, plant and equipment - 5 - -

Dividend income from investment in:- quoted in Malaysia 634 - 5,990 - - quoted overseas 12 5 - -

Interest income received from: - a subsidiary - - 2,326 1,433 - term deposits 9,883 7,927 - - - others ^ 7,774 1,042 - -

Reversal of inventories previously written down 19 497 - - -

Property rental income 7,657 4,864 - - Writeback of provision for restoration cost 25 1,170 - - - Writeback of employee benefits 26 301 315 - -

^ Included in this amount of the current financial period is interest of RM7,159,000 received from the purchaser for theextension of the Cut-Off Date to fulfill the Condition Precedent in respect of Share Sale Agreement for the proposeddisposal of shares in a subsidiary as disclosed in Note 21 to the financial statements.

Group Company

The estimated monetary value of benefits-in-kind received by the Directors of the Company, otherwise than in cash from theGroup and the Company amounted to RM12,000 and RM Nil (31.12.2014: RM38,000 and RM Nil) respectively.

45

9. Taxation

1.1.2015 1.1.2014 1.1.2015 1.1.2014to to to to

30.6.2016 31.12.2014 30.6.2016 31.12.2014Note RM'000 RM'000 RM'000 RM'000

Current tax expense based on profit for the financial period/year: - Malaysian income tax 10,783 9,422 - - - Foreign income tax 613 2,723 - - Deferred tax 27 (107) (763) - -

11,289 11,382 - - Under/(Over)provision in respect of prior years - Current tax 383 (4,688) - - - Deferred tax 27 (293) (936) - -

Total tax expense 11,379 5,758 - -

1.1.2015 1.1.2014 1.1.2015 1.1.2014to to to to

30.6.2016 31.12.2014 30.6.2016 31.12.2014% % % %

Tax at applicable tax rate on (loss)/profitbefore taxation (24.00) 25.00 (24.00) (25.00)

Tax effects of:-Different tax rates on foreign subsidiaries 0.11 (11.73) - - Tax exempt income 2.20 (113.10) - - Movement in deferred tax assets not recognised

during the financial period/year (8.65) 154.49 - - Crystallisation of revaluation surplus on

property, plant and equipment - (0.98) - - Non-allowable expenses (45.94) 913.13 25.88 25.00 Utilisation of deferred tax assets previously

financial year 0.68 - (1.88) - Income not subject to tax 9.27 (91.50) - - Share of results of associates 8.22 (391.91) - -

(58.11) 483.40 - - Under/Overprovision in respect of prior years (0.08) (243.96) - - Average effective tax rate (58.19) 239.44 - -

A reconciliation between the average effective tax rate and the applicable tax rate to the (loss)/profit before taxation of theGroup and the Company is as follows:-

Group Company

The Malaysian income tax is calculated at the statutory tax rate of 24% of the estimated taxable profit for the fiscal year.

Tax expense for other taxation authorities are calculated at the rates prevailing in those respective jurisdictions.

Group Company

4

88

Ann

ual R

epor

t 201

6




89

Ann

ual R

epor

t 201

6



11.

Prop

erty

, Pla

nt A

nd E

quip

men

tFu

rnitu

re,

Cons

truct

ion

Free

hold

Leas

ehol

dPl

ant &

M

otor

Fitti

ngs &

Wor

k-In

Gro

upLa

ndLa

ndBu

ildin

gsM

achi

nery

Vehi

cles

Equ

ipm

ent

Prog

ress

Ren

ovat

ion

30.6

.201

631

.12.

2014

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

RM

'000

RM'0

00C

ost o

r Dee

med

Cos

t

At 1

Janu

ary

2015

/201

430

3,29

7

29

,501

41

4,49

2

53

,908

6,

454

20

7,61

2

85

5

94,3

98

1,

110,

517

1,14

9,00

9

E

xcha

nge

diff

eren

ce(1

,819

)

(1)

(1

,453

)

(6)

35

5

(2

,878

)

-

149

(5,6

53)

1,84

9

301,

478

29,5

00

413,

039

53,9

02

6,80

9

204,

734

855

94

,547

1,10

4,86

4

1,

150,

858

Tran

sfer

from

/(to

):-

Inve

stm

ent P

rope

rties

12-

-

-

-

-

-

-

-

-

25,0

36

-

Disp

osal

Gro

up H

eld

for S

ale

21(1

80)

-

-

(40)

-

(2

27)

40

(22)

(429

)

(82,

044)

A

dditi

ons

-

-

796

1,22

8

476

27,5

31

1,44

2

9,

158

40

,631

25,4

95

D

ispos

als

-

-

-

-

(233

)

(2

2)

-

-

(255

)

(323

)

Writ

ten

off

-

-

-

(9

7)

-

(11,

756)

-

(12,

221)

(24,

074)

(8

,505

)

Re

clas

sific

atio

ns18

1

(4

14)

1,72

5

(711

)

6

(1

,407

)

(2,3

37)

95

0

(2

,007

)

-

At 3

0 Ju

ne 2

016/

31 D

ecem

ber 2

014

301,

479

29,0

86

415,

560

54,2

82

7,05

8

218,

853

-

92,4

12

1,

118,

730

1,11

0,51

7

Acc

umul

ated

Dep

reci

atio

n

At 1

Janu

ary

2015

/201

44,

153

3,

902

10

4,89

7

48

,282

6,

400

18

4,50

8

-

82

,382

434,

524

44

0,66

1

Exc

hang

e di

ffer

ence

(47)

(5)

(6

7)

1

352

(2,0

60)

-

10

8

(1

,718

)

69

3

4,10

6

3,89

7

104,

830

48,2

83

6,75

2

182,

448

-

82,4

90

43

2,80

6

441,

354

Tr

ansf

er fr

om/(

to):

-In

vest

men

t Pro

perti

es12

-

-

-

-

-

-

-

-

-

60

1

-D

ispos

al G

roup

Hel

d fo

r Sal

e21

-

(1

32)

(1,2

89)

(1

9)

-

(189

)

-

(7

9)

(1

,708

)

(2

2,65

3)

Cha

rge

for t

he fi

nanc

ial p

erio

d/ye

ar-

780

4,63

5

1,34

3

194

18,4

09

-

6,53

6

31,8

97

23

,129

Disp

osal

s-

-

-

-

(1

88)

(20)

-

-

(2

08)

(3

23)

W

ritte

n of

f-

-

-

(28)

(69)

(11,

486)

-

(10,

597)

(22,

180)

(7

,584

)

Re

clas

sific

atio

ns52

(4

14)

(16)

(829

)

8

(1

,293

)

-

305

(2,1

87)

-

At 3

0 Ju

ne 2

016/

31 D

ecem

ber 2

014

4,15

8

4,13

1

108,

160

48,7

50

6,69

7

187,

869

-

78,6

55

43

8,42

0

434,

524

Acc

umul

ated

Impa

irmen

t

At 1

Janu

ary

2015

/201

41,

596

-

43,6

18

-

-

-

-

-

45,2

14

73

,179

Exc

hang

e di

ffer

ence

138

-

(3

20)

-

-

2

-

-

(1

80)

11

7

1,73

4

-

43

,298

-

-

2

-

-

45,0

34

73

,296

Tran

sfer

to D

ispos

al G

roup

Hel

d fo

r Sal

e21

(180

)

-

-

-

-

-

-

-

(1

80)

(2

7,33

6)

Reco

gnise

d du

ring

the

finan

cial

per

iod/

year

7(1

,665

)

-

-

-

-

639

-

690

(336

)

(746

)

Recl

assif

icat

ions

180

-

-

-

-

-

180

-

At 3

0 Ju

ne 2

016/

31 D

ecem

ber 2

014

69

-

43

,298

-

-

64

1

-

69

0

44

,698

45,2

14

Car

ryin

g am

ount

At 3

0.6.

2016

297,

252

24,9

55

264,

102

5,53

2

361

30,3

43

-

13,0

67

63

5,61

2

-

At 3

1.12

.201

429

7,54

8

25

,599

26

5,97

7

5,

626

54

23

,104

85

5

12,0

16

-

630,

779

Tot

al

48

90

Ann

ual R

epor

t 201

6




91

Ann

ual R

epor

t 201

6



92

Ann

ual R

epor

t 201

6




93

Ann

ual R

epor

t 201

6



94

Ann

ual R

epor

t 201

6




95

Ann

ual R

epor

t 201

6



96

Ann

ual R

epor

t 201

6




97

Ann

ual R

epor

t 201

6



98

Ann

ual R

epor

t 201

6




99

Ann

ual R

epor

t 201

6



100

Ann

ual R

epor

t 201

6




17. Goodwill On Consolidation

30.6.2016 31.12.2014RM'000 RM'000

Cost 1,267,253 1,267,253 Less: Accumulated impairment losses (1,164,481) (1,085,913)

Carrying amount 102,772 181,340

Accumulated impairment losses:-

At 1 January 2015/2014 1,085,913 1,085,913 Impairment losses during the financial period/year (Note 7) 78,568 -

At 30 June 2016/31 December 2014 1,164,481 1,085,913

30.6.2016 31.12.2014Segment RM'000 RM'000

Retailing 78,160 156,728 Food 24,612 24,612

102,772 181,340

30.6.2016 31.12.2014 30.6.2016 31.12.2014 30.6.2016 31.12.2014% % % % % %

(a) Retailing 22.3 - 22.7 21.7 2.0 - 4.5 7.7 - 9.4 7.3 9.0(b) Food 22.0 22.0 2.0 - 4.0 8.0 10.67 8.0

(a) Retailing(i)

(ii)

(iii)(iv) Pre-tax discount rate of 7.3% (31.12.2014: 9%) estimated based on the weighted average cost of capital of the Group.

(b) Food (i)

(ii)

(iii)

(iv) Assumed disposal of properties at end of year 2021.

Group

In the current financial period, an impairment loss of RM78,568,000 is recognised on certain specialty stores of the Group's retailingsegment under the line item of “Exceptional Items” in the statement of profit or loss which had sustained consecutive losses for a numberof years and the management did not foresee net positive cash flows from these specialty stores in the near future.

Cash flows were projected based on expected future cash flows for a period of up to 5 years (31.12.2014: 5 years) and theassumption that cash flow is subjected to revenue growth rates ranging from 2.0% to 4.5% for the financial years 2017 to 2021;

Discount Rate Growth Rate Gross Margin

Budgeted gross margin which determined at range from 22.3% to 22.7% based on average gross margin achieved in previousfinancial years immediately before the budgeted period;

Group

Goodwill on consolidation arising from business combinations has been allocated to the following individual cash-generating units("CGUs") for impairment testing.

The Group has assessed the recoverable amounts of goodwill of the remaining cash generating units and determined that no impairment isrequired. The recoverable amounts of these cash-generating units are determined using the value in use approach, and this is derived fromthe present value of the future cash flows from each cash-generating unit computed using projections of financial budgets approved bymanagement covering a period of 5 years. The key assumptions used in the determination of the recoverable amounts are as follows:-

Terminal value is based on zero growth of projected present value of the retailing segment from year 2021 until infinity; and

Cash flows were projected based on expected future cash flows for a period of up to 5 years (31.12.2014: 20 years) and theassumption that cash flow is subjected to a growth rate between 2.0% to 4.0% from 2017 to 2021;

A pre-tax discount rate of 11% (31.12.2014: 8%) estimated based on the weighted average cost of capital of the subsidairygroup that operates the food segment; and

Budgeted gross margin which determined at 22% based on average gross margin achieved in previous financial yearsimmediately before the budgeted period;

1

101

Ann

ual R

epor

t 201

6



102

Ann

ual R

epor

t 201

6




103

Ann

ual R

epor

t 201

6



104

Ann

ual R

epor

t 201

6




105

Ann

ual R

epor

t 201

6



106

Ann

ual R

epor

t 201

6




21. Assets and Liabilities Classified as Disposal Group Held For Sale

30.6.2016 31.12.2014Note RM'000 RM'000

Assets

Property, plant and equipment 30,596 32,055 Investment in associate 14 270 105 Other investments 15 872 872 Inventories 19 208 148 Trade and other receivables 18 51,738 51,911 Current tax assets 8 8 Deposits, bank balances, and cash 20 2,154 4,573

Assets classified as held for sale 85,846 89,672

Liabilities

Borrowings 24 18,350 19,646 Deferred tax liabilities 27 1,828 1,878 Trade and other payables 28 3,756 5,085 Employee benefits 26 154 144 Current tax liabilities 16 13

Liabilities classified as held for sale 24,104 26,766

At the end of the current reporting period, the assets and liabilities of PMH Group have been presented in the consolidated statement offinancial position as "Assets of disposal group classified as held for sale" and "Liabilities of disposal group classified as held for sale". Thedisposal is expected to be completed upon fulfillment of conditions precedent.

The assets and liabilities of the disposal group, measured at the lower of their carrying amount and fair value less cost to sell, are as follow:-

The carrying amount of the non-current asset is the same as its carrying value before it was being reclassified to current asset.

The disposal is not completed due to non-fulfillment of conditions precedent, as announced on 14 September 2016.

On 12 December 2014, the Group had entered into a Share Sale Agreement ("SSA") with Dato' Dr Yu Kuan Chon to dispose of642,700,783 ordinary shares representing 69.192% of the issued and paid-up share capital of Pan Malaysia Holdings Berhad ("PMH") for atotal disposal consideration of RM77,124,094 ("Proposed Disposal").

2

107

Ann

ual R

epor

t 201

6



108

Ann

ual R

epor

t 201

6




109

Ann

ual R

epor

t 201

6



110

Ann

ual R

epor

t 201

6




111

Ann

ual R

epor

t 201

6



112

Ann

ual R

epor

t 201

6




113

Ann

ual R

epor

t 201

6



114

Ann

ual R

epor

t 201

6



30.O

pera

ting

Segm

ents

Of T

he G

roup

(Con

t'd)

(i) B

usin

ess s

egm

ent

Fina

ncia

lTo

tal

Reta

iling

Hot

elsFo

od

Serv

ices

Prop

erty

Oth

ers

Elim

inat

ion

Grou

pRM

'000

RM'0

00RM

'000

RM'0

00RM

'000

RM'0

00RM

'000

RM'0

00RE

VEN

UE

Exte

rnal

reve

nue

1,048

,796

292,

058

10

2,45

0

14,4

67

78

,267

21

,225

-

1,557

,263

In

ter-s

egm

ent r

even

ue-

-

-

-

10

8

16,0

88

(1

6,19

6)

-

Le

ss: G

roup

's sh

are o

f ass

ociat

es' r

even

ue(8

35,3

76)

-

-

(14,

467)

-

(2

1,225

)

-

(871

,068

)

Total

reve

nue

213,

420

29

2,05

8

102,

450

-

78

,375

16

,088

(16,

196)

68

6,19

5

RESU

LTS

Segm

ent r

esul

ts (e

xter

nal)

(24,

653)

33

,577

(8

46)

-

11

,037

(31,1

68)

-

(1

2,05

3)

In

tere

st in

com

e1,5

07

85

1,038

-

1,129

13,8

98

-

17

,657

(23,

146)

33

,662

19

2

-

12,16

6

(1

7,27

0)

-

5,60

4

Exce

ptio

nal i

tem

s (ref

er no

te 7)

(2,9

02)

46

1,9

51

-

1,3

03

(7

9,80

5)

-

(79,

407)

(26,

048)

33

,708

2,

143

-

13,4

69

(9

7,07

5)

-

(73,

803)

Fina

nce c

osts

-

(1,9

58)

(40)

-

(3

,791

)

(7

0,34

7)

-

(76,

136)

35,4

24

-

-

-

-

2,81

4

-

38

,238

Prof

it/(L

oss)

befo

re ta

xatio

n9,

376

31,7

50

2,

103

-

9,67

8

(1

64,6

08)

-

(111

,701

)

Taxa

tion

(3,0

13)

(620

)

(973

)

-

(4,15

0)

(2

,623

)

-

(1

1,379

)

Prof

it/(L

oss)

afte

r tax

atio

n6,

363

31,13

0

1,1

30

-

5,

528

(167

,231

)

-

(123

,080

)

afte

r exc

eptio

nal i

tem

s

30.6

.201

6

(Los

s)/Pr

ofit

from

ope

ratio

ns

(Los

s)/Pr

ofit

from

ope

ratio

ns

befo

re ex

cept

iona

l ite

ms

Shar

e of r

esul

ts of

asso

ciate

s

1

NO

TE

S T

O T

hE

fiN

aN

Cia

l S

Ta

TE

mE

NT

S (

Co

nt’

d)

115

Ann

ual R

epor

t 201

6



30.O

pera

ting

Segm

ents

Of T

he G

roup

(Con

t'd)

(i) B

usin

ess s

egm

ent (

Cont'

d)

Fina

ncia

lTo

tal

Reta

iling

Hot

els

Food

Se

rvic

esPr

oper

tyO

ther

sEl

imin

atio

nG

roup

RM'0

00RM

'000

RM'0

00RM

'000

RM'0

00RM

'000

RM'0

00RM

'000

ASSE

TSSe

gmen

t ass

ets

192,

287

80

7,32

3

164,

229

-

27

3,29

3

64,14

8

-

1,5

01,2

80

Inve

stmen

ts in

asso

ciate

s21

7,87

0

-

-

-

-

218,

911

-

43

6,78

1

A

sset

s clas

sified

as d

ispos

al gr

oup

held

for s

ale-

27

,118

-

-

-

58,7

20

-

85,8

38

Una

lloca

ted

corp

orat

e ass

ets

-A

sset

s clas

sified

as d

ispos

al gr

oup

held

for s

ale8

-

Oth

ers

18,4

41

Cons

olid

ated

tota

l ass

ets

2,04

2,34

8

LIAB

ILIT

IES

Segm

ent l

iabili

ties

103,

781

55

,270

12

,209

-

54,10

8

85

1,135

-

1,0

76,5

03

Liab

ilitie

s clas

sified

as d

ispos

al gr

oup

held

for s

ale-

21

,150

-

-

-

2,64

4

-

23

,794

U

nallo

cate

d co

rpor

ate l

iabili

ties

-Li

abili

ties c

lassif

ied as

disp

osal

grou

p he

ld fo

r sale

310

-O

ther

s6,

404

Cons

olid

ated

tota

l liab

ilitie

s1,1

07,0

11

OTH

ER S

EGM

ENT

INFO

RMAT

ION

10,8

49

25

,445

1,8

60

-

66

2

2,47

5

-

41

,291

D

epre

ciatio

n an

d am

ortis

atio

n(9

,038

)

(1

9,92

5)

(2,4

02)

-

(924

)

(634

)

-

(32,

923)

Oth

er m

ater

ial n

on-c

ash

item

s: -G

ain/(

Loss

) in

fore

ign

exch

ange

(unr

ealis

ed)

1,332

-

(845

)

-

-

(3,5

09)

-

(3,0

22)

-G

ain o

n re

dem

ptio

n of

pre

fere

nce s

hare

s of

an

asso

ciate

-

-

-

-

-

7,00

2

-

7,

002

-F

air v

alue g

ain o

n in

vestm

ent p

rope

rties

-

1,927

-

-

-

-

-

1,927

-

--

-

-

-

-

(7

8,56

8)

-

(78,

568)

-oth

er inv

estme

nts (n

on-cu

rrent)

--

-

-

-

-

4,

787

-

4,78

7

-oth

er inv

estme

nts (n

on-cu

rrent)

--

-

-

-

-

(1

,346

)

-

(1

,346

)

-Pro

perty

, plan

t, an

d eq

uipm

ent w

ritte

n of

f(1

,673

)

(2

10)

-

-

-

(1

1)

-

(1,8

94)

-W

riteb

ack

of p

rovi

sion

for r

esto

ratio

n co

st1,1

70

-

-

-

-

-

-

1,1

70

-In

vent

ories

writ

ten

down

(4,7

89)

-

-

-

-

-

-

(4,7

89)

-

Inve

ntor

ies w

ritte

n of

f-

-

(2

,050

)

-

-

-

-

(2

,050

)

-Fa

ir va

lue l

oss o

n in

tere

st ra

te sw

ap-

-

-

-

-

(9

,480

)

-

(9

,480

)

Add

ition

s to

non-

curre

nt as

sets

othe

r tha

n

good

will

on co

nsol

idat

ion

(Impa

irmen

t los

s)/Re

vers

al of

impa

irmen

t los

s on:

-

inve

stmen

t in

pref

eren

ce sh

ares

of a

n as

socia

teot

her i

nves

tmen

t (cu

rrent

)

30.6

.201

6

fina

ncial

instr

umen

ts an

d de

ferre

d ta

x as

sets

74

116

Ann

ual R

epor

t 201

6



30.O

pera

ting

Segm

ents

Of T

he G

roup

(Con

t'd)

(i) B

usin

ess s

egm

ent

Fina

ncia

lTo

tal

Reta

iling

Hot

elsFo

od

Serv

ices

Prop

erty

Oth

ers

Elim

inat

ion

Grou

pRM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RE

VEN

UE

Exte

rnal

reve

nue

755,8

65

189,2

15

68,04

6

-

29

,470

12,07

4

-

1,0

54,67

0

Inter

-segm

ent r

even

ue-

-

-

-

72

12

,717

(12,7

89)

-

Le

ss: G

roup

's sh

are o

f ass

ociat

es' r

even

ue(5

75,17

1)

-

-

-

-

(1

2,069

)

-

(587

,240)

Total

reve

nue

180,6

94

189,2

15

68,04

6

-

29

,542

12,72

2

(1

2,789

)

467,4

30

RESU

LTS

Segm

ent r

esul

ts (e

xter

nal)

958

34

,323

311

-

1,1

93

(1

7,629

)

-

19,15

6

Inter

est i

ncom

e1,4

73

25

581

-

87

6

6,014

-

8,969

2,431

34,34

8

89

2

-

2,069

(11,6

15)

-

28

,125

Ex

cept

iona

l item

s (ref

er no

te 7)

(953

)

(132

)

336

-

63

0

(12,3

19)

-

(1

2,438

)

1,478

34,21

6

1,2

28

-

2,6

99

(2

3,934

)

-

15,68

7

Fina

nce c

osts

-

(1,33

2)

(3

4)

-

(4

35)

(4

7,899

)

-

(49,7

00)

34,66

9

-

-

-

-

2,531

-

37,20

0

Prof

it/(L

oss)

befo

re ta

xatio

n36

,147

32,88

4

1,1

94

-

2,2

64

(6

9,302

)

-

3,187

Taxa

tion

(2,81

8)

(4

0)

(947

)

-

(1,64

0)

(3

13)

-

(5

,758)

Prof

it/(L

oss)

afte

r tax

ation

33,32

9

32

,844

247

-

62

4

(69,6

15)

-

(2

,571)

afte

r exc

eptio

nal it

ems

Shar

e of r

esul

ts of

asso

ciate

s

31.12

.2014

Prof

it/(L

oss)

from

ope

ratio

ns

befo

re ex

cept

iona

l item

s

Prof

it/(L

oss)

from

ope

ratio

ns

75

NO

TE

S T

O T

hE

fiN

aN

Cia

l S

Ta

TE

mE

NT

S (

Co

nt’

d)

117

Ann

ual R

epor

t 201

6



30.O

pera

ting

Segm

ents

Of T

he G

roup

(Con

t'd)

(i) B

usin

ess s

egm

ent (

Cont'

d)

Fina

ncia

lTo

tal

Reta

iling

Hot

elsFo

od

Serv

ices

Prop

erty

Oth

ers

Elim

inat

ion

Grou

pRM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0RM

'000

RM'00

0AS

SETS

Segm

ent a

sset

s34

3,365

58

8,981

18

5,795

-

25

9,468

18

6,813

-

1,5

64,42

2

Inve

stmen

ts in

asso

ciate

s16

7,313

-

-

-

-

238,2

81

-

405,5

94

As

sets

class

ified

as d

ispos

al gr

oup

held

for s

ale-

29

,311

-

-

-

60

,353

-

89,66

4

Una

lloca

ted

corp

orate

asse

ts-

Asse

ts cla

ssifi

ed as

disp

osal

grou

p he

ld fo

r sale

8

-

Oth

ers

14,83

1

Cons

olid

ated

total

asse

ts2,0

74,51

9

LIAB

ILIT

IES

Segm

ent l

iabilit

ies11

5,494

46

1,247

10

,929

-

41,49

0

39

2,189

-

1,0

21,34

9

Liab

ilities

clas

sified

as d

ispos

al gr

oup

held

for s

ale-

23

,738

-

-

-

2,7

20

-

26

,458

U

nallo

cate

d co

rpor

ate li

abilit

ies-

Liab

ilities

clas

sified

as d

ispos

al gr

oup

held

for s

ale30

8

-

Oth

ers

7,164

Cons

olid

ated

total

liab

ilities

1,055

,279

OTH

ER S

EGM

ENT

INFO

RMAT

ION

2,317

22,21

7

75

9

-

151

93

8

-

26,38

2

Dep

recia

tion

and

amor

tisati

on(8

,422)

(12,7

65)

(1

,809)

-

(264

)

(749

)

-

(24,0

09)

Oth

er m

ateria

l non

-cas

h ite

ms:

--F

air v

alue g

ain o

n in

vestm

ent p

rope

rties

-

-

873

-

-

-

-

87

3

-G

ain/(

Loss

) in

fore

ign ex

chan

ge (u

nrea

lised

)2

-

(124

)

-

-

(7,55

6)

-

(7

,678)

-

-

other

invest

ments

(non

-curre

nt)-

-

-

-

-

-

(4

,944)

-

(4,94

4)

-(9

79)

(1

48)

(3

28)

-

-

(1

,037)

-

(2,49

2)

--

(1

80)

92

6

-

-

-

-

746

-In

vent

ories

writ

ten

down

(855

)

-

-

-

-

-

-

(8

55)

-In

vent

ories

writ

ten

off

-

-

(1,84

0)

-

-

-

-

(1

,840)

-

Prop

erty

, plan

t, an

d eq

uipm

ent w

ritte

n of

f(5

0)

(576

)

(52)

-

-

(243

)

-

(921

)

prop

erty

, plan

t and

equi

pmen

t

(Impa

irmen

t los

s)/Re

versa

l of i

mpa

irmen

t los

s of:

-co

nver

tible

bond

trade

and

othe

r rec

eivab

les

31.12

.2014

Addi

tions

to n

on-c

urre

nt as

sets

oth

er th

an fi

nanc

ial in

strum

ents

and

defe

rred

tax as

sets

76

118

Ann

ual R

epor

t 201

6




30. Operating Segments Of The Group (Cont'd)

(ii) Geographical segments

1.1.2015 1.1.2014to to

30.6.2016 31.12.2014 30.6.2016 31.12.2014 30.6.2016 31.12.2014RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Malaysia 442,956 310,672 739,348 806,379 17,725 6,284 Asia-Pacific 23,328 14,063 250,945 332,470 240 6 Australia 231 79 5,528 5,664 - - North America 21,225 12,069 365,496 357,636 - - United Kingdom 1,069,523 717,787 681,031 572,370 23,326 20,092

Total 1,557,263 1,054,670 2,042,348 2,074,519 41,291 26,382

associates' revenue (871,068) (587,240) - - - -

686,195 467,430 2,042,348 2,074,519 41,291 26,382

31. Financial Instruments

(a) Capital management

30.6.2016 31.12.2014 30.6.2016 31.12.2014RM'000 RM'000 RM'000 RM'000

Total debts 937,661 898,049 19,000 20,000 Equity attributable to the owners of the Company 710,977 784,101 942,697 1,141,404

Gearing ratio 1.32 1.15 0.02 0.02

(b) Financial instruments(i)

Fair valueLoans and through Available-receivables profit or loss for-sale Total

Financial assets RM'000 RM'000 RM'000 RM'000

Other investments - 45 10,248 10,293 Trade and other receivables 174,605 - 174,605 Deposits, bank balances and cash 313,435 - - 313,435

488,040 45 10,248 498,333

Group Company

30.6.2016

Capital Expenditure Revenue Assets Employed

The primary objective of the capital management of the Group is to ensure that entities of the Group would be able tocontinue as going concerns whilst maximising the return to shareholders through the optimisation of the debt and equityratios. The overall strategy of the Group remains from that in the previous financial year.

Less: Group's share of

Group

The Group and the Company monitors capital using gearing ratio, which is the amount of borrowings (Note 24 to thefinancial statements) divided by equity attributable to owners of the Company. The Group's and the Company's policy isto keep the gearing ratio within manageable levels.

Categories of financial instruments

Capital represents equity attributable to the owners of the Company less the fair value adjustment reserve.

1

119

Ann

ual R

epor

t 201

6



30. Operating Segments Of The Group (Cont'd)

(ii) Geographical segments

1.1.2015 1.1.2014to to

30.6.2016 31.12.2014 30.6.2016 31.12.2014 30.6.2016 31.12.2014RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Malaysia 442,956 310,672 739,348 806,379 17,725 6,284 Asia-Pacific 23,328 14,063 250,945 332,470 240 6 Australia 231 79 5,528 5,664 - - North America 21,225 12,069 365,496 357,636 - - United Kingdom 1,069,523 717,787 681,031 572,370 23,326 20,092

Total 1,557,263 1,054,670 2,042,348 2,074,519 41,291 26,382

associates' revenue (871,068) (587,240) - - - -

686,195 467,430 2,042,348 2,074,519 41,291 26,382

31. Financial Instruments

(a) Capital management

30.6.2016 31.12.2014 30.6.2016 31.12.2014RM'000 RM'000 RM'000 RM'000

Total debts 937,661 898,049 19,000 20,000 Equity attributable to the owners of the Company 710,977 784,101 942,697 1,141,404

Gearing ratio 1.32 1.15 0.02 0.02

(b) Financial instruments(i)

Fair valueLoans and through Available-receivables profit or loss for-sale Total

Financial assets RM'000 RM'000 RM'000 RM'000

Other investments - 45 10,248 10,293 Trade and other receivables 174,605 - 174,605 Deposits, bank balances and cash 313,435 - - 313,435

488,040 45 10,248 498,333

Group Company

30.6.2016

Capital Expenditure Revenue Assets Employed

The primary objective of the capital management of the Group is to ensure that entities of the Group would be able tocontinue as going concerns whilst maximising the return to shareholders through the optimisation of the debt and equityratios. The overall strategy of the Group remains from that in the previous financial year.

Less: Group's share of

Group

The Group and the Company monitors capital using gearing ratio, which is the amount of borrowings (Note 24 to thefinancial statements) divided by equity attributable to owners of the Company. The Group's and the Company's policy isto keep the gearing ratio within manageable levels.

Categories of financial instruments

Capital represents equity attributable to the owners of the Company less the fair value adjustment reserve.

1

120

Ann

ual R

epor

t 201

6




121

Ann

ual R

epor

t 201

6



31.F

inan

cial

Instr

umen

ts (C

ont'd

)

(b)

Fina

ncial

instr

umen

t (Co

nt'd)

(iv)

Leve

l 1Le

vel 2

Leve

l 3To

tal

Leve

l 1Le

vel 2

Leve

l 3To

tal

RM’00

0RM

’000

RM’00

0RM

’000

RM’00

0RM

’000

RM’00

0RM

’000

RM’00

0RM

’000

30.6.

2016

Grou

p

Fina

ncia

l ass

ets

Avai

lable-

for-s

ale in

vestm

ents

- Quo

ted sh

ares i

n M

alays

ia7,9

87

-

-

7,987

-

-

-

-

7,9

87

7,987

- Q

uoted

share

s out

side M

alays

ia1,0

07

-

-

1,007

-

-

-

-

1,0

07

1,007

- U

nquo

ted d

eben

ture

in M

alays

ia#

1,189

- U

nquo

ted sh

ares i

n M

alays

ia#

65

- Con

verti

ble b

ond

outsi

de M

alays

ia-

45

-

45

-

-

-

-

45

45

8,994

45

-

9,0

39

-

-

-

-

9,039

10

,293

Fina

ncia

l lia

bilit

ies

Fina

ncia

l Lia

bilit

y at f

air v

alue t

hrou

gh

pr

ofit

or lo

ss

- Int

eres

t rate

swap

-

-

8,626

8,6

26

-

-

-

-

8,626

8,6

26

Oth

er fi

nanc

ial l

iabi

litie

s- R

etent

ion

sum

-

-

-

-

-

-

-

-

-

-

- Hire

pur

chas

e and

leas

e liab

ilities

-

-

-

-

-

-

3,029

3,0

29

3,029

3,0

29

- Ter

m lo

ans a

nd re

volvi

ng cr

edit

-

-

-

-

-

89

3,949

-

89

3,949

893,9

49

89

3,949

# th

e fair

value

cann

ot b

e reli

ably

mea

sure

d us

ing v

aluati

on te

chni

ques

due

to la

ck o

f mark

etabi

lity o

f the

unqu

oted

share

s and

deb

entu

re.

Dur

ing t

he re

porti

ng p

erio

d en

ded

30 Ju

ne 20

16, t

here

wer

e no

trans

fer b

etwee

n Le

vel 1

and

Leve

l 2 fa

ir va

lue m

easu

rem

ents.

Fair

value

hier

archy

(Con

t'd)

Fair

valu

es of

fina

ncial

instr

umen

ts ca

rried

at fa

ir va

lue

Fair

valu

es of

fina

ncial

instr

umen

ts no

tca

rried

at fa

ir va

lue

Tot

al fa

ir va

lues

C

arry

ing

amou

nt

The

follo

wing

tables

seto

utth

efin

ancia

lins

trum

ents

carri

edat

fairv

alues

and

thos

eno

tcarr

iedat

fairv

alues

forw

hich

fairv

aluei

sdisc

losed

,tog

ether

with

their

fairv

alues

and

carry

ingam

ount

ssho

wnin

the

statem

ent o

f fin

ancia

l pos

ition

.

Fina

ncia

l ass

ets a

t fai

r valu

e thr

ough

prof

it or

loss

80

122

Ann

ual R

epor

t 201

6



31.F

inan

cial

Instr

umen

ts (C

ont'd

)

(b)

Fina

ncial

instr

umen

t (Co

nt'd)

(iv)

Fair

value

hier

archy

(Con

t'd)

Leve

l 1Le

vel 2

Leve

l 3To

tal

Leve

l 1Le

vel 2

Leve

l 3To

tal

RM’00

0RM

’000

RM’00

0RM

’000

RM’00

0RM

’000

RM’00

0RM

’000

RM’00

0RM

’000

31.12

.2014

Grou

p

Fina

ncia

l ass

ets

Avai

lable-

for-s

ale in

vestm

ents

- Quo

ted sh

ares i

n M

alays

ia11

,347

-

-

11

,347

-

-

-

-

11

,347

11

,347

- Q

uoted

share

s out

side M

alays

ia1,0

08

-

-

1,008

-

-

-

-

1,0

08

1,008

- U

nquo

ted d

eben

ture

in M

alays

ia#

1,235

- U

nquo

ted sh

ares i

n M

alays

ia#

46

- Con

verti

ble l

oan

outsi

de M

alays

ia-

343

-

34

3

-

-

-

-

34

3

34

3

12,35

5

343

-

12

,698

-

-

-

-

12

,698

13

,979

Fina

ncia

l lia

bilit

ies

Oth

er fi

nanc

ial l

iabi

litie

s- T

rade p

ayab

les-

-

-

-

-

-

1,5

20

1,520

1,5

20

1,520

- H

ire p

urch

ase a

nd le

ase l

iabilit

ies-

-

-

-

-

-

2,4

61

2,461

2,4

61

2,461

- T

erm

loan

s and

revo

lving

cred

it-

-

-

-

-

857,3

40

-

857,3

40

85

7,340

857,3

40

# th

e fair

value

cann

ot b

e reli

ably

mea

sure

d us

ing v

aluati

on te

chni

ques

due

to la

ck o

f mark

etabi

lity o

f the

unqu

oted

share

s and

deb

entu

re.

Dur

ing t

he re

porti

ng p

erio

d en

ded

31 D

ecem

ber 2

014,

ther

e wer

e no

trans

fer b

etwee

n Le

vel 1

and

Leve

l 2 fa

ir va

lue m

easu

rem

ents.

Fina

ncia

l ass

ets a

t fai

r valu

e thr

ough

prof

it or

loss

Car

ryin

g am

ount

The

follo

wing

tables

seto

utth

efin

ancia

lins

trum

ents

carri

edat

fairv

alues

and

thos

eno

tcarr

iedat

fairv

alues

forw

hich

fairv

aluei

sdisc

losed

,tog

ether

with

their

fairv

alues

and

carry

ingam

ount

ssho

wnin

the

statem

ent o

f fin

ancia

l pos

ition

. (Co

nt'd)

Fair

valu

es of

fina

ncial

instr

umen

ts ca

rried

at fa

ir va

lue

Fair

valu

es of

fina

ncial

instr

umen

ts no

tca

rried

at fa

ir va

lue

Tot

al fa

ir va

lues

81

NO

TE

S T

O T

hE

fiN

aN

Cia

l S

Ta

TE

mE

NT

S (

Co

nt’

d)

123

Ann

ual R

epor

t 201

6



32. Capital And Other Commitments

(a)

30.6.2016 31.12.2014RM'000 RM'000

Capital expenditures in respect of purchase of property, plant and equipment: -Approved but not contracted for - 640 Contracted but not provided for - 377

- 1,017

(b) Operating lease commitments

Group as a lessee

30.6.2016 31.12.2014RM'000 RM'000

Non-cancellable operating lease commitments not provided for in the financial statements: - Within 1 year 264 528 Between 1 year to 5 years 68,963 40,811

69,227 41,339

Group as a lessor

30.6.2016 31.12.2014RM'000 RM'000

Less than one year 2,889 433 Between one and five years 1,770 1,902

4,659 2,335

33. Significant Corporate Developments

(a) Significant corporate developments during the financial period(i)

(ii)

(iii)

(iv)

On 30 June 2014, Corus Hotels Sdn Bhd, a wholly-owned subsidiary of Malayan United Industries Berhad ("MUI" or"Company"), had entered into a Share Sale Agreement with Pan Malaysian Industries Berhad to acquire 385,000 ordinaryshares of RM1.00 each representing the entire issued and paid up share capital of Two Holdings Sdn Bhd for a purchaseconsideration of RM26.3 million ("Acquisition"). The Acquisition was completed on 6 February 2015.

Group

Capital commitments Group

Group

The Group lease out their investment properties under operating leases (Note 12). The future minimum lease receivables undernon-cancellable leases are as follows:

Pan Malaysia Holdings Berhad ("PMH") was informed by RHB Investment Bank Berhad on behalf of Dato' Dr YuKuan Chon that Dato' Dr Yu Kuan Chon had on 12 December 2014 entered into a Share Sale Agreement to acquire642,700,783 PMH Shares from the Group for a total cash consideration of RM77,124,094 ("Proposed Disposal"). On 10June 2016, Dato' Dr Yu Kuan Chon and the Group had mutually agreed to extend the Cut-Off Date to fulfill theCondition Precedent for a further period of one month commencing from 12 June 2016 and expiring on 11 July 2016.This is the sixteenth extension for Dato' Dr Yu Kuan Chon and the Group, following the expiry of the first extension on11 April 2015.

On 28 September 2015, the Company announced that Designer Forte Sdn Bhd, a wholly-owned subsidiary of MetrojayaBerhad, has been dissolved on 24 September 2015 pursuant to Section 272(5) of the Companies Act, 1965.

Firstway International Investment Limited, the 25% owned associate of the Group, has been deregistered and dissolvedon 23 October 2015 pursuant to Section 751 of the Companies Ordinance.

An overseas financial institution has granted credit facility of HK$_____ millionOn 28 January 2000, the respective shareholders of Technitone (M) Sdn BhdTechnitone, a 64.1% owned subsidiary company of PM Holdings, had ceased itsOn 2 February 2000 and 10 February 2000, the Kuala Lumpur Stock ExchangePHSB, which proposed scheme of arrangement was not approved by its schemeOn 13 December 2000, PM Capital entered into a sale and purchase agreement withPursuant to the terms of the PME Agreement, upon certification of the financialOn 13 December 2000, PM Capital Has also entered into an agreementPursuant to the Restructuring Agreement, upon the certification of the financialOn 15 December 2000, Label Specialist Industries Sdn Bhd, a 51.25% ownedProceedings have been and will be initiated by PM Securities and PM Equities against On 13 December 2000, PM Capital entered into a sale and purchase agreement withPursuant to the terms of the PME Agreement, upon certification of the financialOn 13 December 2000, PM Capital Has also entered into an agreementPursuant to the Restructuring Agreement, upon the certification of the financialOn 15 December 2000, Label Specialist Industries Sdn Bhd, a 51.25% ownedThe schemes of arrangement of PM Holdings and certain of its subsidiaries ("Scheme"), including PM Capital, PMOn 13 December 2000, PM Capital entered into a sale and purchase agreement withPursuant to the terms of the PME Agreement, upon certification of the financialOn 13 December 2000, PM Capital Has also entered into an agreementPursuant to the Restructuring Agreement, upon the certification of the financialOn 15 December 2000, Label Specialist Industries Sdn Bhd, a 51.25% ownedOn 13 December 2000, PM Capital entered into a sale and purchase agreement withPursuant to the terms of the PME Agreement, upon certification of the financialOn 13 December 2000, PM Capital Has also entered into an agreementPursuant to the Restructuring Agreement, upon the certification of the financialOn 15 December 2000, Label Specialist Industries Sdn Bhd, a 51.25% ownedThe schemes of arrangement of PM Holdings and certain of its subsidiaries ("Scheme"), including PM Capital, PM

82

124

Ann

ual R

epor

t 201

6




33. Significant Corporate Developments (Cont'd)

(a) Significant corporate developments during the financial period (Cont'd)

(v)

(a)

(b)

(c)

(d)

(vi)

(b) Significant corporate developments after the financial period(a)

(b)

On 13 April 2016, PMC announced that the High Court of Malaya has granted an order confirming the Par ValueReduction, Share Premium Reduction and Capital Distribution pursuant to Section 64 of the Companies Act, 1965(“Court Order”).

On 29 April 2016, PMC announced that the entitlement date for the Capital Distribution has been fixed on 16 May2016.On 16 May 2016, an office copy of the Court Order has been lodged with the Companies Commission of Malaysiafor the Par Value Reduction, Share Premium Reduction and Capital Distribution to take effect accordingly.

The payment for the capital distribution has been made to the entitled shareholders of PMC on 26 May 2016. Assuch, the proposals have been fully implemented and completed on 26 May 2016.

On 11 August 2016, Dato' Dr Yu Kuan Chon and the Group had mutually agreed to extend the Cut-Off Date to fulfillthe Condition Precedent for a further period of one month commencing from 12 August 2016 and expiring on 11September 2016. This is the eighteenth extension for Dato' Dr Yu Kuan Chon and the Group, following the expiry ofthe first extension on 11 April 2015.

On 3 March 2016, all the special resolutions for the Proposals as set out in the Notice of Extraordinary GeneralMeeting (“EGM”) of PMC dated 5 February 2016 and tabled at the EGM were approved by the shareholders.

proposed amendments to certain clauses of the Memorandum & Articles of Association of PMC to facilitate theimplementation of the Proposed Par Value Reduction ("Proposed M&A Amendments").(hereinafter collectively referred to as the "Proposals")

Metro-Direct Sdn Bhd and MJ Properties (Komtar) Sdn Bhd, wholly-owned subsidiaries of Metrojaya Berhad, have beendissolved on 10 December 2015 pursuant to Section 272(5) of the Companies Act, 1965.

proposed reduction of RM438.3 million from the share premium reserve of PMC pursuant to Sections 60(2) and 64of the Act ("Proposed Share Premium Reduction"); proposed capital distribution to the shareholders of PMC involving a cash distribution of RM0.08 for each ordinaryshare in PMC pursuant to the Proposed Share Premium Reduction; and

On 27 November 2015, KAF Investment Bank Berhad had, on behalf of the Board of Directors of Pan MalaysiaCorporation Berhad ("PMC"), a partly-owned subsidiary of the Company, announced the following proposals:-

On 13 September 2016, Dato' Dr Yu Kuan Chon and the Group had mutually agreed to terminate the Share SaleAgreement due to the Condition Precedent not being fulfilled by the Cut-Off Date of 12 September 2016.

proposed reduction of the issued and paid-up share capital of PMC pursuant to Section 64 of the Companies Act,1965 ("Act") involving the cancellation of RM0.30 of the par value of each existing ordinary share of RM0.50 eachheld in PMC ("Proposed Par Value Reduction");

On 15 September 2016, Acmes Investment Limited ("Acmes"), a wholly-owned subsidiary of Jaguh Padu Sdn Bhdincorporated in Hong Kong ("HK"), which is in turn a wholly-owned subsidiary of the Pan Malaysia Corporation Berhadwas deregistered and dissolved on 9 September 2016 following an earlier application by Acmes to the CompaniesRegistry in HK for its deregistration in accordance with the Companies Ordinance.

83

125

Ann

ual R

epor

t 201

6



33. Significant Corporate Developments (Cont'd)

(a) Significant corporate developments during the financial period (Cont'd)

(v)

(a)

(b)

(c)

(d)

(vi)

(b) Significant corporate developments after the financial period(a)

(b)

On 13 April 2016, PMC announced that the High Court of Malaya has granted an order confirming the Par ValueReduction, Share Premium Reduction and Capital Distribution pursuant to Section 64 of the Companies Act, 1965(“Court Order”).

On 29 April 2016, PMC announced that the entitlement date for the Capital Distribution has been fixed on 16 May2016.On 16 May 2016, an office copy of the Court Order has been lodged with the Companies Commission of Malaysiafor the Par Value Reduction, Share Premium Reduction and Capital Distribution to take effect accordingly.

The payment for the capital distribution has been made to the entitled shareholders of PMC on 26 May 2016. Assuch, the proposals have been fully implemented and completed on 26 May 2016.

On 11 August 2016, Dato' Dr Yu Kuan Chon and the Group had mutually agreed to extend the Cut-Off Date to fulfillthe Condition Precedent for a further period of one month commencing from 12 August 2016 and expiring on 11September 2016. This is the eighteenth extension for Dato' Dr Yu Kuan Chon and the Group, following the expiry ofthe first extension on 11 April 2015.

On 3 March 2016, all the special resolutions for the Proposals as set out in the Notice of Extraordinary GeneralMeeting (“EGM”) of PMC dated 5 February 2016 and tabled at the EGM were approved by the shareholders.

proposed amendments to certain clauses of the Memorandum & Articles of Association of PMC to facilitate theimplementation of the Proposed Par Value Reduction ("Proposed M&A Amendments").(hereinafter collectively referred to as the "Proposals")

Metro-Direct Sdn Bhd and MJ Properties (Komtar) Sdn Bhd, wholly-owned subsidiaries of Metrojaya Berhad, have beendissolved on 10 December 2015 pursuant to Section 272(5) of the Companies Act, 1965.

proposed reduction of RM438.3 million from the share premium reserve of PMC pursuant to Sections 60(2) and 64of the Act ("Proposed Share Premium Reduction"); proposed capital distribution to the shareholders of PMC involving a cash distribution of RM0.08 for each ordinaryshare in PMC pursuant to the Proposed Share Premium Reduction; and

On 27 November 2015, KAF Investment Bank Berhad had, on behalf of the Board of Directors of Pan MalaysiaCorporation Berhad ("PMC"), a partly-owned subsidiary of the Company, announced the following proposals:-

On 13 September 2016, Dato' Dr Yu Kuan Chon and the Group had mutually agreed to terminate the Share SaleAgreement due to the Condition Precedent not being fulfilled by the Cut-Off Date of 12 September 2016.

proposed reduction of the issued and paid-up share capital of PMC pursuant to Section 64 of the Companies Act,1965 ("Act") involving the cancellation of RM0.30 of the par value of each existing ordinary share of RM0.50 eachheld in PMC ("Proposed Par Value Reduction");

On 15 September 2016, Acmes Investment Limited ("Acmes"), a wholly-owned subsidiary of Jaguh Padu Sdn Bhdincorporated in Hong Kong ("HK"), which is in turn a wholly-owned subsidiary of the Pan Malaysia Corporation Berhadwas deregistered and dissolved on 9 September 2016 following an earlier application by Acmes to the CompaniesRegistry in HK for its deregistration in accordance with the Companies Ordinance.

83

126

Ann

ual R

epor

t 201

6




127

Ann

ual R

epor

t 201

6



128

Ann

ual R

epor

t 201

6




129

Ann

ual R

epor

t 201

6



130

Ann

ual R

epor

t 201

6




131

Ann

ual R

epor

t 201

6



132

Ann

ual R

epor

t 201

6




133

Ann

ual R

epor

t 201

6



134

Ann

ual R

epor

t 201

6




135

Ann

ual R

epor

t 201

6



136

Ann

ual R

epor

t 201

6



S u p p l E m E N T a r Y i N f O r m a T i O N O N r E a l i S E da N d u N r E a l i S E d p r O f i T S O r l O S S E S

137

Ann

ual R

epor

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6



PROPERTIES OWNED BY THE MUI GROUP

At 30 June 2016 Location, Description and Usage Approximate

Land Area Sq. Metres

Approximate Age of Building

Years

Net Book Value

RM’000 M A L A Y S I A Federal Territory of Kuala Lumpur 1 lot of freehold land with a 13-storey hotel, known

as Corus hotel Kuala Lumpur, Jalan Ampang, Kuala Lumpur (Date of last valuation: December 1982)

7,289 31 56,676

1 lot of freehold land at Section 43, Jalan Mayang,

Kuala Lumpur, held for development.1,478 - 35,953

3 lots of leasehold land with a 4-storey shoplot each

at nos. 14, 16 & 18, Taman Indrahana, Jalan Kuchai Lama, Kuala Lumpur (Lease expires in 2077) (Date of acquisition: June/November 1990)

468 32 1,176

1 lot of freehold land with two units of double-storey

buildings at 189, Jalan Ampang, Kuala Lumpur (Date of acquisition: August 1991)

3,540 23 7,802

1 lot of freehold land with a 10 units, four storey

residential apartment building at 191, Jalan Ampang, Kuala Lumpur (Date of acquisition: July 2007)

3,056 21 24,092

State of Selangor Darul Ehsan 6 lots of freehold land held for future development at

Seksyen 3, Pekan Batu Tiga, Mukim Damansara, Selangor Darul Ehsan (Date of last revaluation:December 1982)

771 - 165

Balance of freehold land held for residential

development known as Vila Sri Ukay at Mukim Ulu Kelang, Selangor Darul Ehsan (Date of acquisition: April 1995)

2,182 - 430

1 lot of leasehold industrial land with a factory and

office building at Persiaran Raja Muda, Shah Alam, Selangor Darul Ehsan (Lease expires in 2071) (Date of acquisition: September 1996)

10,800 45 8,422

1 lot of leasehold industrial land with a factory and

office building at Lot 614, Tapak Perusahaan Shah Alam, Persiaran Raja Muda, Shah Alam, Selangor Darul Ehsan (Lease expires in 2068) (Date of acquisition: July 2009)

24,295 48 15,591

p r O p E r T i E S O W N E d b Y T h E m u i g r O u p

At 30 June 2016

138

Ann

ual R

epor

t 201

6



Location, Description and Usage Approximate



Years

Net Book Value

RM’000 1 lot of leasehold land with a single storey structure

at Lot 18, Persiaran Selangor, Shah Alam, Selangor Darul Ehsan, currently used as a warehouse. (Lease expires in 2086) (Date of acquisition: August 2007)

8,154 32 2,296

1 lot of leasehold land with a 3 storey office building

at no. 15, Jalan Ragum 15/17, Section 15, Shah Alam, Selangor Darul Ehsan, currently used as a warehouse. (Lease expires in 2086) (Date of acquisition: August 2007)

8,137 32 8,306

State of Pulau Pinang 3 units of leasehold shoplots at 2B 1.02, 1.03 & 2.02,

Komtar, Georgetown (Lease expires in 2080) (Date of acquisition: August 2007)

553 30 1,890

Freehold retail space comprising basement and

ground floor of Kompleks Bukit Jambul, Jalan Rumbia, Penang (Date of acquisition: August 2007)

13,549 19 21,146

1 lot of leasehold land with an office and warehouse

at no. 101-G, Lintang Kampong Jawa, Lot 4, Kawasan MIEL, Bayan Baru, Pulau Pinang (Lease expires in 2041) (Date of acquisition: September 1996)

976 34 1,065

1 unit of residential suite at Lot No. B-31-3,

Southbay Plaza, Pulau Pinang (Date of acquisition: February 2013)

159 - 1,666

State of Johor Darul Takzim 1 lot of freehold land with a warehouse at no. 35,

Jalan Mashyur 3, Taman Perindustrian Cemerlang, Ulu Tiram, Johor Bahru, Johor Darul Takzim (Dateof acquisition: September 1996)

446 22 450

State of Negeri Sembilan Darul Khusus 3 lots of freehold land with a 4-storey hotel building

at 71/2 Mile, Jalan Pantai, Teluk Kemang, Port Dickson, Negeri Sembilan Darul Khusus (Year of last valuation: 1983)

11,892 41 11,519

p r O p E r T i E S O W N E d b Y T h E m u i g r O u p ( C o n t ’ d )

139

Ann

ual R

epor

t 201

6






Years

Net Book Value

RM’000 Balance of freehold land held for township

development known as Bandar Springhill at Mukim of Jimah, District of Port Dickson, Negeri Sembilan Darul Khusus (Date of acquisition: January 1995)

5,218,300 - 133,244

4 lots of leasehold land with a hotel known as Corus

Paradise resort Port Dickson at Lots 286, 288 & 289,PT 5855, Batu 21/2, Jalan Pantai, Port Dickson, Negeri Sembilan Darul Khusus (Lease expires in 2059/2087) (Date of acquisition: September 1996)

55,745 21 25,416

4 lots of freehold land held for future development at

Jalan Tuanku Munawir, Seremban, Negeri Sembilan Darul Khusus (Date of acquisition: November 2005)

19,354 16 29,785

State of Pahang Darul Makmur 4 apartments at Block E Equatorial Hill Resort

Cameron Highlands, Pahang Darul Makmur. (Date of acquisition: May 2009)

583 - 1,112

A U S T R A L I A 1 lot of freehold land with an existing hotel building

at no. 20, Kirby Court, West Hobart, Tasmania (Date of acquisition: October 1996)

24,970 38 4,947

U N I T E D S T A T E S O F A M E R I C A Balance of units in a 110 units, 7-storey, freehold

condominium complex located within the Regent Park Complex in Fort Mill, South Carolina (Date of acquisition: March 1993)

994 21 2,398

H O N G K O N G 1 unit of leasehold warehouse at Block 1, Unit C,

23rd Floor, Kingsford Industrial Building, nos. 26-32 Kwai Hei Street, Kwai Chung, New Territories (Lease expires in 2047) (Date of acquisition: September 1996)

771 37 9,282

S I N G A P O R E 1 unit of leasehold residential apartment at no. 152,

Prince Charles Crescent, Singapore (Lease expires in 2096) (Date of acquisition: July 1999)

194 15 3,888

140

Ann

ual R

epor

t 201

6



Location, Description and Usage Approximate Land Area Sq. Metres


Years

Net Book Value

RM’000

U N I T E D K I N G D O M 1 lot of freehold land with a 66-room hotel known as

Chace Hotel at London Road, Toll Bar End, Coventry CV3 4EQ (Date of acquisition: November 2001)

13,240 164 10,346

1 lot of leasehold land with a 124-room hotel known

as The St James’ Hotel at St James Square, Grimsby DN31 1EP (Leases expires in 2071) (Date of acquisition: November 2001)

3,709 64 873

1 lot of freehold land with a 56-room hotel known as

Imperial Crown Hotel at 42-46 Horton Street, Halifax, West Yorkshire HX1 1QE (Date of acquisition: November 2001)

1,001 264 5,930


Old Golf House Hotel at New Hey Road, Outlane, Near Huddersfield, West Yorkshire HD3 3YP (Date of acquisition: November 2001)

15,040 74 7,747

1 lot of freehold land with a 111-room hotel known

as Corus hotel Solihull at Stratford Road, Shirley, Solihull B90 4EB (Date of acquisition: November 2001)

16,400 64 43,144


Hillcrest Hotel at Cronton Lane, Widness, Cheshire WA8 9AR (Date of acquisition: November 2001)

2,003 64 9,165


The Belsfield Hotel at Kendal Road, Bowness-on-Windermere, Cumbria LA23 3EL (Date of acquisition: November 2001)

28,050 164 41,554


Burnham Beeches Hotel at Grove Road, Burnham,Buckinghamshire SL1 8DP (Date of acquisition: November 2001)

31,830 64 58,018

1 lot of freehold land, a former site of a hotel

building which was demolished, at 1 Ferrymuir Gait, South Queensferry, Edinburgh, West Lothian EH30 9SF (Date of acquisition: November 2001)

40,940 - 22,454

p r O p E r T i E S O W N E d b Y T h E m u i g r O u p ( C o n t ’ d )

141

Ann

ual R

epor

t 201

6






Years

Net Book Value

RM’000

1 lot of freehold land with a 389-room hotel known as Corus hotel Hyde Park at Lancaster Gate, London W2 3LG (Date of acquisition: February 2001)

2,010 114 264,261

1 lot of leasehold land with a 4-storey restaurant at

30 Charlott Street, London W1 1HP (Lease expires in 2019) (Date of acquisition: November 2001)

87 114 1,261

1 lot of leasehold land with a 3-storey restaurant at 2

Greek Street, London W1V 6NB (Lease expires in 2021) (Date of acquisition: November 2001)

36 114 431

142

Ann

ual R

epor

t 201

6



a N a l Y S i S O f S h a r E h O l d i N g S

As At 10 October 2016

143

Ann

ual R

epor

t 201

6



144

Ann

ual R

epor

t 201

6



a N a l Y S i S O f S h a r E h O l d i N g S ( C o n t ’ d )



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