Malaysia legislation
Section 33
of Mengikut peraturan Bilangan 34 Peraturan-Peraturan Tanah Tahun 1966, adalah
Seksyen 33
SIGNIFICANT EVENTS DURING THE YEAR
During the financial year,
(i)
The Company disposed off its 35% equity interest in Saint Gobain
Terreal (Malaysia) Sdn. Bhd. to Terreal France for a cash consideration of RM1,837,500.
(ii)
A Bridging Finance-I facility of RM59 million was approved by a local bank to be granted to a subsidiary company. This facility is to be secured by certain land held for future development of the subsidiary company with carrying amount of RM4,267,390 and guaranteed by the Company.
As of the date of report, the subsidiary company is in the process of registering the charge of these land held for future development.
STATEMENT BY DIRECTORS
The directors of Johor Land Berhad state that, in their opinion, the accom-panying balance sheets and the related statements of income, cash flows and changes in equity are drawn up in accordance with the provisions of the Com-panies Act, 1965 and the applicable MASB approved accounting standards in
Malaysia so as to give a true and fair view of the state of affairs of the Group and the Company as of 31 December 2005 and of the results of their businesses and the cash flows of the Group and of the Company for the year ended on that date.
Signed in accordance with a resolution of the Directors,
TAN SRI DATO’ MUHAMMAD ALI HASHIM
A.F.M. SHAFIQUL HAFIZ
Johor Bahru 6 March 2006
DECLARATION BY THE OFFICER PRIMARILY RESPONSIBLE FOR THE FINANCIAL
MANAGEMENT OF THE COMPANY
I, Mariana binti Sidi, the officer primarily responsible for the financial management of Johor Land Berhad, do solemnly and sincerely declare that the accompa-nying balance sheets and the related statements of income, cash flows and changes in equity are, in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.
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Subscribed and solemnly declared by )
the abovenamed Mariana binti Sidi
)
at Johor Bahru in the State of
)
Johor on 6 March 2006
)
Before me,
Commissioner For Oaths
HAJI A. HAMID BIN HAJI HASSAN
Pesuruhjaya Sumpah
AUDITORS’ REPORT PURSUANT TO REGULATION 12 OF THE HOUSING
DEVELOPERS’ (HOUSING DEVELOPMENT ACCOUNT) REGULATIONS 1991 FINAN-CIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005.
In the course of our audit as external auditors of Johor Land Berhad for the year ended 31 December 2005, we have audited the Housing Development
Account required to be opened and maintained pursuant to the Housing
Developers (Housing Development Account) Regulations 1991.
The audit involves the examination of withdrawals from the Housing
Development Account maintained. The account maintained is for the following projects:
i.
Taman Bukit Dahlia, Pasir Gudang;
- 131 units terrace houses type Indah at Taman Bukit Dahlia
- 96 units terrace houses type Pesona at Taman Bukit Dahlia
- 142 units terrace houses type Harum at Taman Bukit Dahlia
- 120 units terrace houses type Serene at Taman Bukit Dahlia
- 36 units semi detached houses type Perdana at Taman Bukit Dahlia
- 126 units terrace houses type Pristine at Taman Bukit Dahlia
- 24 units semi detached houses type Perdana at Taman Bukit Dahlia
- 103 units and 94 units terrace houses type Mekar at Taman Bukit
Dahlia
- 60 units and 60 units terrace houses type Pesona at Taman Bukit
Dahlia
- 26 units, 24 units and 22 units terrace houses at Taman Indah
Dahlia ii.
58 units lotus apartment at Taman Melor, Mukim Tebrau; and iii.
9 units shophouses at RPK Tampoi, Mukim Tebrau.
Based on our work done, nothing has come to our attention that causes us to believe that the monies in the Housing Development Account have not been withdrawn in accordance with the Regulations.
Chartered Accountants
Partner
Johor Bahru,
6 March 2006
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[22hb Jun 2006
No. 1489.
ADVANCE DEVELOPMENT SDN. BHD.
(Incorporated in Malaysia)
AUDITORS REPORT PURSUANT TO SECTION 9 OF THE HOUSING DEVELOPERS’
(CONTROL AND LICENSING) ACT, 1966
We have audited the accompanying balance sheet as of 31 December 2005 and the related statements of income, cash flows and changes in equity for the year then ended. These financial statements are the responsibility of the Company’s directors. It is our responsibility to form an independent opinion, based on our audit, on these financial statements and to report our opinion to you, as a body, in accordance with section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility towards any other person for the content of this report.
We conducted our audit in accordance with approved standards on auditing in
Malaysia. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall financial statements presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a)
the abovementioned financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 and the applicable MASB approved accounting standards in Malaysia so as to give a true and fair view of;
(i)
the state of affairs of the Company as for 31 December 2005 and of the results and the cash flows of the Company fot the year ended on that date; and
(ii)
the matters required by section 169 of the Act to be dealt with the financial statements; and
(b)
the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.
DELOITTE AND TOUCHE
Chartered Accountants
Partner
Johor Bahru 20 February 2006
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005
Note(s)
2005 2004
Revenue 4 & 5 13,363,342 12,694,089
Cost of sales
(6,488,265)
(10,591,991)
Gross Profit 6,875,077 2,102,098
Other operating income 44,220 41,838
Administrative expenses
(1,037,548)
(767,939)
Selling expenses
(13,000)
(12,000)
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INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005—(cont’d)
Note(s)
2005 2004
Profit from operations 6 5,868,749 1,363,997
Finance cost
–interest on revolving credit
(161,884)
(159,904)
Income from other investment
–interest income from deposits 115,183 140,939
Profit before tax 5,822,048 1,345,032
Income tax expense 7
(1,704,174)
(320,374)
Net Profit for the year 4,117,874 1,024,658
The accompanying Notes form an integral part of the Financial Statements.
BALANCE SHEET AS OF 31 DECEMBER 2005
Note(s)
2005 2004
NON-CURRENT ASSETS
Property, plant and equipment 8 798,798 643,508
Land held for future development 9 12,031,850 13,256,555
Deferred tax assets 10
—
—
CURRENT ASSETS
Property development projects 11 24,199,845 13,419,837
Inventories 12 1,366,188 7,346,861
Trade and other receivables 13 6,420,443 6,787,696
Deposits, cash and bank balances 16 8,959,530 5,492,000 40,946,006 33,046,394
CURRENT LIABILITIES
Trade and other payables 17 15,688,014 12,811,025
Borrowing 18 4,000,000 4,000,000
Tax liabilities 633,115
—
20,321,129 16,811,025
NET CURRENT ASSETS
20,624,877 16,235,369
NET ASSETS
33,455,525 30,135,432
REPRESENTED BY:
Issued capital 19 22,160,600 22,160,600
Unappropriated profit 7 11,294,925 7,974,832
SHAREHOLDER’S EQUITY
33,455,525 30,135,432
The accompanying Notes form an integral part of the Financial Statements.
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STATEMENT OF CHANGES IN EQUITY
Distributable
Total/Net
Reserve
Shareholder’s
Note(s)
Issued Capital
Unappropriated
Equity
Profit
Balance as of 1 January 2004 22,160,600 7,428,844 29,589,444
Net profit for the year
—
1,024,658 1,024,658
Dividend paid/payable 20
—
(478,670)
(478,670)
Balance as of 31 December 2004 22,160,600 7,974,832 30,135,432
Net profit for the year
—
4,117,874 4,117,874
Dividend paid/payable 20
—
(797,781)
(797,781)
Balance as of 31 December 2005 22,160,600 11,294,925 33,455,525
The accompanying Notes form an integral part of the Financial Statements.
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 2005 2004
CASH FLOWS FROM (USED IN) OPERATING
Net profit for the year 4,117,874 1,024,658
Adjustments for:
Income tax expense 1,704,174 320,374
Finance cost 161,884 159,904
Depreciation of property, plant and equipment 71,002 28,998
Property, plant and equipment written-off
—
1,504
Interest income
(115,183)
(140,939)
Operating Profit Before Working Capital
Changes 5,939,751 1,394,499
(Increase) Decrease in:
Inventories 5,980,673
(6,474,050)
Property development projects
(9,555,303)
4,008,085
Trade and other receivables 367,253
(4,864,824)
Increase in trade and other payables 2,557,878 5,683,717
Net Cash From (Used In) Operations 5,290,252
(252,573)
Interest paid
(161,884)
(159,904)
Income tax paid
(1,071,059)
(132,990)
Tax refund
—
673,298
Net Cash From Operating
Activities 4,057,309 127,831
CASH FLOWS FROM (USED IN) INVESTING
Interest received 115,183 140,939
Additions to property, plant and equipment
(226,292)
(22,522)
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Net Cash From (Used In) Investing
Activities
(111,109)
118,417
CASH FLOWS FROM FINANCING
ACTIVITY
Dividend paid
(478,670)
—
NET INCREASE IN DEPOSITS, CASH AND
BANK BALANCES
3,467,530 246,248
DEPOSITS, CASH AND BANK BALANCES
AT BEGINNING OF YEAR
5,492,000 5,245,752
DEPOSITS, CASH AND BANK BALANCES AT
END OF YEAR
16 8,959,530 5,492,000
The accompanying Notes form an integral part of the Financial Statements.
NOTES TO THE FINANCIAL STATEMENTS