A N N U A L R E P O RT - E&O Berhad...P ro p e r ty Development Berhad, P u t r a j a ya Perdana Berhad, M u l t i - P u r pose Holdings Berhad, Magnum Corp o r a tion Berhad and Mimaland

e a s t e rn & oriental berh a d (5 5 5- k)

L evel A (Annex e ) , Menara Milenium, 8 Jalan Damanlela Damansara Heights, Kuala Lumpur

Tel Fax

A N N U A LR E P O R T

“ENRICHED BY OUR HERITAG E ,BUILDING A LEGACY FOR THE FUTURE”

vision statementE voking old traditions with new directions, to enrich lifestyle

and experiences globally

mission statementTo contin u o u s l y achieve and maintain the highest degree of prestige,

r e l i a bility and quality

C o rp o r ate Inform at i o n

3 G roup Stru c t u re

‒ 1 0 - Year Group Financial Highlights

‒ D i re c t o rs ’ P ro fil e

‒ C o rp o r ate Gove rnance Stat e m e n t

D i re c t o rs ’ Responsibility Stat e m e n t

‒ I n t e rnal Control Stat e m e n t

‒ Audit Committee Report

‒ Other Inform at i o n

‒ C h a i rm a n ’s Stat e m e n t

‒ D i re c t o rs ’ R e p o rt

S t atement by Dire c t o rs

— c o n t e n ts —

annual re p o rt

S t at u t o ry Declarat i o n

R e p o rt of the Au d i t o rs to the Members of E a s t e rn & Oriental Berhad

Income Stat e m e n t s

‒ Balance Sheets

C o n s o l i d ated Statement of Changes in Equity

S t atement of Changes in Equity

‒ C o n s o l i d ated Cash Flow Stat e m e n t

‒ Cash Flow Stat e m e n t

‒ Notes to the Financial Stat e m e n t s

G ro u p ’s Pro p e rt i e s

‒ S t atistics of Stock h o l d i n g s

‒ Notice of Annual General Meeting

S t atement A c c o m p a nying Notice of Annual General Meeting

‒ Fo rm of Prox y

‒ N o t e s

corporate inform a t i o n

D atuk Azizan bin Abd Rahman C h a i rm a nD at o ’ Tham Ka Hon M a n aging Dire c t o rD atuk Henry Chin Poy WuA l oysius Choong Kok SinKamil Ahmad Meri c a nMr Vi j eya r atnam a/l V. Thamotharam Pillay

Fam Chai Hing

A f fin Bank Berhad

Alliance Merchant Bank Berhad

A m M e r chant Bank Berhad

AmBank Berhad

EON Bank Berhad

OCBC Bank (Malaysia) Berhad

S o u t h e rn Bank Berhad

Utama Merchant Bank Berhad

— main bankers —

— company secre t a ry —

— d i re c t o rs —

E rnst & Yo u n gL evel 23A, Menara Milenium, Jalan Damanlela P u s at Bandar Damansara Kuala LumpurTel - Fax -

Metra Management Sdn Bhd3 0 . 0 2 , 30th Floor, Menara Multi-Purp o s eCapital Square N o. 8 , Jalan Munshi A b d u l l a h Kuala LumpurTel - Fax -

L evel 3A (Annexe ) , Menara Milenium 8 Jalan Damanlela Damansara Heights Kuala LumpurTel - Fax -

The Main Board of Bursa Malaysia Securities Berhad

— stock exchange listing —

— re g i s t e red off i ce —

— registrar and transfer off i ce —

— a u d i t o rs —

g roup stru c t u reAs at 29 Ju ly 2005

e a s t e rn & oriental berhad

E a s t e rn & O riental Hotel Sdn Bhd • 10 0%

E & O Cruises Sdn Bhd • 1 0 0%

E & O E x p ress Sdn Bhd • 10 0%

E & O L e i s u re Sdn Bhd • 10 0%

E & O Limousine Services Sdn Bhd • 1 0 0%

E & O Restaurants Sdn Bhd • 10 0%

Lone Pine Hotel (Pe n a ng) Sdn Bhd • 1 0 0%

Eminent Pedestal Sdn Bhd • 7 0%

Dynamic Degree Sdn Bhd • 5 1%

E & O Ve n t u res Sdn Bhd • 5 1%

E & O Pro p e rty Development Berhad • 4 5 . 1 0%(18.61% held by Dynamic Degree Sdn Bhd)

E & O D eve l o p e rs Sdn Bhd • 10 0%

Radiant Kiara Sdn Bhd • 1 0 0%

Te r atak Wa risan (M) Sdn Bhd(held by E & O Deve l o p e rs Sdn Bhd) • 5 0%

R e n own Heritage Sdn Bhd(held by Te r atak Wa risan (M) Sdn Bhd) • 5 0%

— p ro p e rty development/i n v e s t m e nt —

— hotel and others —

10-year group financial highlights

— re v e n ue —

— p rofit/(loss) before tax —

— p rofit/(loss) after tax & mi —

— s h a reholders’ fund —

— net earnings per stock u n it —

balance sheet

20 0 5 20 0 4 20 0 3 2 0 0 2 2 0 0 1 2 0 0 0 19 9 9 19 9 8 19 9 7 19 9 6

R eve n u e 2 1 , 1 3 0 117,882 33,449 9 1 , 1 5 6 79 , 3 9 8 1 4 1 , 4 0 5 1 27 , 8 5 9 1 3 0 , 5 8 6 11 3 , 075 5 2 , 5 0 1

P ro fit/(Loss) before tax 1 6 , 77 1 17 , 707 ( 3 2 , 5 0 5 ) ( 2 1 , 2 5 4 ) 1 3 , 2 2 6 1 3 , 8 0 6 1 9 , 1 2 3 1 9 , 2 47 4 8 , 3 5 9 8 , 6 3 9

Ta x at i o n ( 2 , 5 0 9) ( 2 , 8 1 5) 3 , 4 27 5 , 2 6 3 5 , 4 5 8 6 , 1 0 9 1 , 76 3 1 3 , 0 8 2 17 , 0 4 5 5 , 174

P ro fit/(L o s s) after tax & M I 1 5 , 3 4 1 2 0 , 5 5 3 ( 3 2 , 2 6 9 ) ( 2 4 , 3 8 8 ) 8 , 779 7 , 6 97 17 , 3 6 0 6 , 1 6 5 3 1 , 3 1 4 3 , 4 11

D i v i d e nd – N e t * * 3 , 3 4 8 1 , 674 1 , 674 2 , 5 11 2 , 5 9 2 2 , 5 9 2 2 , 5 9 2 5 , 1 0 9 2 , 4 5 1 7 11

Issued and Paid-up Capital 2 3 2 , 472 2 3 2 , 472 2 3 2 , 472 2 3 2 , 472 1 2 2 , 3 5 3 1 0 2 , 8 4 1 1 0 2 , 8 4 1 1 0 2 , 8 4 1 1 0 2 , 8 4 1 1 0 0 , 0 2 1

Weighted Average No of Stock Units 2 2 9 , 3 8 4 2 3 2 , 472 2 3 2 , 472 2 2 2 , 274 1 0 6 , 8 5 0 1 0 2 , 8 4 1 1 0 2 , 8 4 1 1 0 2 , 8 4 1 1 0 2 , 1 3 6 4 2 , 2 67

S h a re h o l d e rs ’ F u n d * * 3 8 8 , 17 1 3 9 1 , 8 1 6 373 , 5 1 5 4 0 5 , 8 9 4 374 , 0 9 8 3 2 4 , 2 8 6 3 1 9 , 2 1 2 3 0 4 , 4 4 4 3 0 8 , 4 9 8 273 , 72 9

Net Earnings per stock unit (s en) 6 . 7 8 . 8 ( 1 3 . 9 ) ( 11 . 0 ) 8 . 2 7. 5 1 6 . 9 6 . 0 3 0 . 7 8 . 1

Net Dividend per s t o ck unit (s e n)* * * 1 . 4 0 . 7 0 . 7 2 . 1 2 . 5 2 . 5 2 . 5 5 . 0 2 . 5 2 . 4

N TA per stock unit 1 . 77 * 1.69 1.61 1 . 75 3.06 3.15 3 . 1 0 2 . 9 6 3 . 0 0 2 . 74

* In view of the share buy back during the financial ye a r, N TA is computed based on the number of ordinary stock units in issue at 31.03.05: 2 1 9 , 4 5 7 , 0 0 0 .

* * Dividends which we re prev i o u s ly accrued upon proposal by Dire c t o rs are now only recognised upon approval by share h o l d e rs at the Annual General Meeting, in compliance with FRS110 “ E vents after the balance sheet dat e ” .

*** In line with FRS110 “Events after the balance sheet date”,net dividends per stock unit for the year relates to net dividends approved by share h o l d e rs in respect of the preceding financial ye a r. The ratio is hence calculated based on the preceding ye a r ’s s h a re capital.

income statement

r a t i o s

— 10-year group financial highlights —

( rm ’ 0 0 0)

D ATO’ THAM KA HON

Managing Director

D at o ’ Tham Ka Hon, a Malay s i a n , aged 52 was appointed a Director and Managing Director of Eastern & Oriental Berhadon M ay . He curre n t ly sits on the boards of E & OP ro p e rty Development Berhad, P u t r a j aya Perdana Berhad,M u l t i - P u rpose Holdings Berhad, Magnum Corp o r ation Berhadand Mimaland Berhad. He is also the Managing Director of E & O Pro p e rty Development Berhad and the Chairman ofMagnum Corp o r ation Berhad.

D at o ’ Tham started his career as a Trainee A c t u a ry withA m e rican Intern ational Assurance in Kuala Lumpur. He has widee x p e rience in pro p e rty development and investment since the1980s when he completed one of the pioneer low and medium-cost housing schemes in Kuala Lumpur. His vast practicalk n owledge coupled with his skilled pro p e rty expertise becamei n c re a s i n g ly apparent with the development of the highlyp ro fit a ble Sri Damansara Project when he was heading thep ro p e rty development division in Land & General Berhad.

In , he took over Ja ck Chia Enterp rise Berhad which was later renamed Eastern & Oriental Berhad. He successfullycompleted several projects including the pre s t i gious D e s aC a h aya at Jalan A m p a n g, Kampung Wa risan at Jalan Je l at e k ,S ri Se-ekar (a luxurious condominium project) at Jalan U-Thant,whilst Desa Aman Puri (a part of Sri Damansara Project) isalmost completed. Dua Residency at Jalan Tun Razak, S eve n t yDamansara at Jalan Jelutong and Idamansara at Changkat are stillongoing pro j e c t s. He was also re s p o n s i ble for the conservat i o n ,re s t o r ation and refurbishment of the Lone Pine Hotel, the oldesthotel along the Batu Fe rringhi beach f ront and the historical 120ye a rs old E & O Hotel in Pe n a n g.

D at o ’ Tham is married to Datin Chua Cheng Boon and they a re both substantial share h o l d e rs of the Company. Other than as disclosed above, D at o ’ Tham is not re l ated to any Dire c t o rand/or other major shareholder of the Company, has no confli c tof interest with the Company and has had no conviction foroffences within the past 10 ye a rs.

D ATUK AZIZAN BIN ABD RAHMAN

Independent non-executive Director/Chairman

YBhg Datuk Azizan bin Abd Rahman, DMSM, aged , a Malaysian,was appointed as Chairman of Eastern & Oriental Berhad on November .

He started his career as a Shipping Executive in Harper Gilfillan(M) Sdn Bhd after graduating from University of Malaya in

with a degree in Bachelor of Arts. In , he joined Pernas MISCShipping Agencies Sdn Bhd as its first Branch Manager in the newJohor Port. He later became Penang Branch Manager and MISCMarketing Manager based in Kuala Lumpur. In , he wasattached to Panocean Limited in London in their CharteringDepartment.

He left MISC to join JF Apex Securities Berhad in as Director and launched his career in stockbroking and finance.As a stockbroker, he was an active member of the stockbrokersfraternity and had held the post of President of the Association ofStockbroking Companies of Malaysia until he left the industry. In, he was appointed to the Board of Tongkah Holdings Berhadand also the Kedah State owned Bina Darulaman Berhad to assistthose companies in their debt restructuring plans and to identifynew business strategies.

d i rectors’ profile

Datuk Azizan thus brought with him vast experience instockbroking and corporate finance. He joined the MBf Group in to help in the restructuring of the MBf Group and wassubsequently appointed the Managing Director of MBf CapitalBerhad in . Upon completion of the exercise, Datuk Azizanstepped down as Managing Director and was appointed as thenon-executive Chairman of MBf Corporation Berhad.He is alsoa Director of MBf Holdings Berhad,Apex Equity HoldingsBerhad, Ekowood International Berhad, Commerce AssetVentures Sdn Bhd, Ayer Hitam Tin Dredging Malaysia Berhadand TH Plantations Berhad. Datuk Azizan is currently theexecutive Deputy Chairman of TSH Resources Berhad.He isalso a member of the Investment Panel of Lembaga Tabung Haji.

Datuk Azizan has no family relationship with any Directorand/or major shareholder of the Company, has no conflict ofinterest with the Company and has had no conviction foroffences within the past 10 years.

D ATUK HENRY CHIN POY WU

Senior Independent non-executive Director

D atuk Henry Chin Poy Wu , a Malay s i a n , aged , wa sappointed to the Board of Eastern & Oriental Berhad as anIndependent non-exe c u t i ve Director on A p ril . He isalso the Chairman of the Audit Committee. He also sits on theboard of several public listed companies, n a m e ly, M a l ay s i a nMosaics Berhad, Kilang Papan Seri bu Daya Berhad, J. T.I n t e rn ational Berhad, N a nyang Press Holdings Berhad, G l e n e a lyP l a n t ations Malaysia Berhad, Magnum Corp o r ation Berhad andHap Seng Consolidated Berhad.

D atuk Henry spent over ye a rs of his career with The R oyal Malaysian Police and was holding the position of Chief of Po l i c e, Kuala Lumpur when he re t i red in f ro mg ove rnment serv i c e. After his re t i re m e n t , D atuk Henrycontinues to be active ly invo l ved in communal serv i c e sworking for the benefit of education and we l fa re, and is a Boardmember of Unive rsity Malaysia Sabah and a member of theSabah State Pardon Board.

D atuk Henry has no fa m i ly re l ationship with any Dire c t o ra n d/or major shareholder of the Company, has no conflict ofi n t e rest with the Company and has had no conviction foroffences within the past 10 ye a rs.

MR ALOYSIUS CHOONG KOK SIN

Executive Director

Mr A l oysius Choong Kok Sin, a Malay s i a n , aged , was appointedExecutive Director of Eastern & Oriental Berhad on October . He is also the Exe c u t i ve Director of E & O Pro p e rt yD evelopment Berhad. Mr Choong holds a Masters Degree inUrban Land Appraisal from Reading Unive rsity United Kingdom.He is a Fe l l ow of the Royal Institution of Chart e red Surveyo rs andthe past President of the Institution of Surveyo rs ,M a l ay s i a . He isalso a former member of the Board of Va l u e rs ,A p p r a i s e rs andE s t ate A g e n t s ,M a l ay s i a . He joined the gove rnment serv i c ec u l m i n ating as the Deputy Director General in Ja b atan Pe n i l a i a ndan Pe r k h i d m atan Hart a , Ke m e n t e rian Kewa n g a n ,w h e re hes e rved from to b e f o re joining Eastern & Ori e n t a lBerhad to head the projects division in the Gro u p. He hase x t e n s i ve experience in pro p e rty consultancy and va l u at i o n .

Mr Choong has no fa m i ly re l ationship with any Director and/o rmajor shareholder of the Company, has no conflict of interest with the Company and has had no conviction for offences within the past 10 ye a rs.

ENCIK KAMIL AHMAD MERICAN

Non-independent non-executive Director

Encik Kamil Ahmad Meri c a n , a Malay s i a n , aged ,a non-independent non-exe c u t i ve Director was appointed to the Board of Eastern & Oriental Berhad on A p ril and is a member of the Audit Committee. He also sits on the board of E & O Property Development Berhad and Putrajaya Perdana Berhad.

Encik Kamil graduated in Architecture from Universiti TeknologiM a l aysia and the A r chitectural A s s o c i ation in London. He haswo r ked in va rious architectural firms in London and Malaysia andpossesses vast experience in the architectural fie l d . He is curre n t lythe Chief Exe c u t i ve Officer of G D P A r chitects Sdn Bhd. He hasbeen an external examiner for Unive rsiti Te k n o l o gi Malaysia andU n i ve rsiti Malaya for the past 7 ye a rs.

Encik Kamil has no fa m i ly re l ationship with any Director and/ormajor shareholder of the Company, has no conflict of interest withthe Company and has had no conviction for offences within the past10 ye a rs.

MR VIJEYA R ATNAM A/L V. THAMOTHARAM PILLAY

Independent non-executive Director

Mr Vi j eya r atnam a/l V. Thamotharam Pillay, a Malay s i a n ,aged , an Independent non-exe c u t i ve Director was appointed to the Board of Eastern & Oriental Berhad on J u ly .Mr Vi j eya r atnam is a Fe l l ow of the Institute of Chart e re dAccountants in England and Wales and a member of the Malay s i a nInstitute of A c c o u n t a n t s. He has more than ye a rs post qualifyinge x p e rience cove ring auditing, financial planning, general managementand corp o r ate adv i s o ry. He is curre n t ly the Managing Director of an adv i s o ry and consultancy firm .

C u rre n t ly, Mr Vi j eya r atnam also sits on the Board of Multi-P u rpose Holdings Berhad, Bandar Raya Developments Berhad,F u t u t e ch Berhad and several other pri vate limited companies.

Mr Vi j eya r atnam has no fa m i ly re l ationship with any Dire c t o ra n d/or major shareholder of the Company, has no conflict ofi n t e rest with the Company and has had no conviction for offenceswithin the past 10 ye a rs.

corporate Governance Statement

1. D I R E C T O R S

b o a rd of dire c t o r s

E&O is headed by an effective board which leads and controls theGroup.The Board acknowledges its key responsibilities in directingthe strategic plans, development and control of the Group and hastaken steps to adopt the specific responsibilities listed by the code,which facilitates the discharge of the Board’s stewardshipresponsibilities

b o a rd balance

The Board has six () members, comprising of two () ExecutiveDirectors,three () Independent Non-Executive Directors andOne () Non-Executive Director.The current Board compositionis in compliance with paragraph 15.02 of Bursa Malaysia SecuritiesBerhad’s (“Bursa Securities”) Listing Requirements.The non-executive Directors are independent of management and theyexercise independent and objective judgement in Board decisions.

The Board is of the view that its current board size provides aneffective blend of entrepreneurship, business and professionalexpertise sufficient to discharge the responsibilities and performthe functions of an effective Board. Datuk Henry Chin has beenidentified as the Senior Independent Director to whom concernsmay be conveyed if necessary.

The roles of the Chairman and Managing Director are distinct andseparate with their responsibilities clearly defined to ensure abalance of power and authority.

The Board of Eastern & Oriental Berhad (“Board”) supportsthe Malaysian Code on Corporate Governance (“the Code”)which companies should adopt to raise the standards ofcorporate governance.

Eastern & Oriental Berhad (“E&O”) acknowledges thatcorporate governance is an on-going process that requiresreassessment and refinement of management practices andsystems. The Board is committed to ensuring thatappropriate standards of corporate governance are practicedthroughout the Group. Set out below is a statement of howthe Group has applied the principles of the Code andcompliances with the best practices provisions.

b o a rd meetings

The Board meets at least four times a year with additionalmeetings whenever necessary. During the year ended

March , five Board Meetings were held.

The following is the record of attendance of the Directorsat Board Meetings:

no. of board names of directors meetings attended

1 . D atuk Azizan bin Abd Rahman 5

2 . D at o ’ Tham Ka Hon 5

3 . D atuk Henry Chin Poy Wu 4

4 . M r. A l oysius Choong Kok Sin 5

5 . Encik Kamil Ahmad Merican 4

6 . Mr Vi j eya r atnam a/l V.Thamotharam Pillay 5

7 . D at o ’ S i ew Ka Wei ( resigned on August ) 1

supply of inform a t i o n

All the Directors have access to the advice and services of theCompany Secretary and other Management Staff of the Group.They may also take independent advice, at the Company’sexpense, in furtherance of their duties if so required.

Prior to each Board meeting, all the Directors are providedwith the meeting’s agenda, the necessary board papers andappropriate supporting documents for a focused discussion atthe Board meeting. All the Directors have the right and duty tomake further enquires when they consider necessary.

Re-election of dire c t o r s

The Articles of Association of the Company provides that atleast one third ( ⁄ ) or the number nearest to one third ( ⁄ )

of the directors, including the Managing Director be subject toretirement by rotation once in every three () years and shallbe eligible for re-election.

d i rectors’ training

All the Directors had attended and successfully completed the Mandatory Accreditation Programme conducted inaccordance with the Bursa Securities Listing Requirements.Majority of the Directors have completed the ContinuingEducation Programme (“CEP”) prescribed by Bursa Securitiesand the Directors who have not completed the CEP have until December to do so.

2. BOARD COMMITTEES

The following Committees have been set up to assist theBoard to discharge its responsibilities effectively.

i . Audit Committee

The Audit Committee, headed by a capable independentDirector, is governed by its written terms of reference.TheAudit Committee ensures that the information disclosed inrelation to the financial statements and internal controls areaccurate and adequate.

The composition, terms of reference and the activities of theAudit Committee are set out in the Audit Committee Reportin this Annual Report.

i i . N o m i n ation Committee

The Nomination Committee was set up on February

and comprises of four () Non-Executive Directors, three ()of whom are independent.The Nomination Committeemembers are:

Datuk Henry Chin Poy Wu(independent and non-executive)

D atuk Azizan bin Abd Rahman (independent and non-exe c u t i ve )

Mr Vi j eya r atnam a/l V. Thamotharam Pillay(independent and non-executive)

Encik Kamil Ahmad Merican (non-independent and non-executive)

The responsibilities of the Nomination Committee includerecommending to the Board, candidates for directorships in theCompany and directors to fill the seats on board committees ofthe Company. A process is in place for assessing the effectivenessof the Board members and the board committees.Their rolesand responsibilities and the powers of the NominationCommittee is set out in its terms and reference.

i i i . R e mu n e r ation Committee

The Remuneration Committee was set up on February

and comprises of the following members who are majority Non-Executive Directors.

Mr Vi j eya r atnam a/l V. Thamotharam Pillay(independent and non-executive)

Encik Kamil Ahmad Meri c a n(non-independent and non-executive)

Mr A l oysius Choong Kok Sin(executive)

The responsibilities of the Remuneration Committee include the reviewing and recommending to the Board the remunerationpackages of the executive directors.The RemunerationCommittee is empowered by its terms of reference, which isapproved by the Board.

The remuneration packages of executive directors and non-executive directors of the Company are decided by theBoard as a whole, with the director concerned abstaining fro mp a rt i c i p at i n g in decision in respect of his individual re mu n e r at i o n .

The directors’ fees are determined by the full Board andapproved by the stockholders of the Company at its annualgeneral meetings.

The aggre g ate re mu n e r ation of Dire c t o rs for the financial year ended M a r ch a re as follow s :

bonuses & b e n e fit ss a l a r i e s / f e e s others i n c e n t i v e s in kind t o t a l

’ 0 0 0 ’ 0 0 0 ’ 0 0 0 ’ 0 0 0 ’ 0 0 0

E xe c u t i ve Dire c t o rs . . . . . . . . . . . . . . . . . . . . . 1,060 – 527 21 1,608N o n - E xe c u t i ves Dire c t o rs . . . . . . . . . . . . . . . . . 156 240 – – 396Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 , 0 0 4

The range of remuneration for the Directors is disclosed in Note of the Financial Statements in this Annual Report.

3. S H A R E H O L D E R S

In line with good corporate governance, the Groupencourages the adoption of an open and transparent policyin respect of its re l ationship with its stock h o l d e rs and inve s t o rs.The Board acknowledges the need for stockholders to bei n f o rmed of all mat e rial business mat t e rs affecting the Gro u p.

The Group conducts dialogues with investors from time totime as a means of effective communication that enables theBoard and Management to convey information about theCompany’s performance, corporate strategies and othermatters affecting stockholders’ interests.

The Annual Report and Notice of Annual General Meeting(“AGM”) are sent out to all stockholders at least twenty-one() days before the date of the meeting. The AGM is theprincipal forum for dialogue with all the Company’sstockholders and they are encouraged to participate in thequestion and answer session. The Directors are available atthe meeting to respond to the questions raised.

4. A C C O U N TABILITY AND AUDIT

Financial re p o rt i n g

In presenting the annual financial statements and quarterlyannouncements to stockholders, the Board aims to present afair assessment on the Group’s position and prospects. TheBoard ensures that the Group’s financial statements aredrawn up in accordance with the provisions of theCompanies Act, and applicable approved accountingstandards in Malaysia. This also applied to other price-sensitive public reports and reports to regulators.

i n t e rnal contro l s

The Board acknowledges its responsibility for the Group’ssystem of internal controls covering not only financialcontrols but also operational and compliance controls as well

as risk management to safeguard the stockholders’investment and the Group’s assets. This system, by itsnature, can only provide reasonable but not absoluteassurance against misstatements or losses.

The Internal Audit function of the Group has been outsourced.Reviews of internal controls have been performed in stagesand is an on-going process. The Group Internal Audit isindependent of the activities they audit and is impartial withdue professional care. Findings of the Group Internal Auditare reported regularly to the Audit Committee. The Boardhas implemented a framework for the identification,evaluation and management of significant risks.

The Group’s Statement on Internal Control is set out in thisAnnual Report

relationship with the auditors

The Board maintains a formal and transparent relationshipwith the Auditors.The Audit Committee meets with theAuditors whenever necessary.

d i rectors’ re s p o n s i b i l i t ystatement for preparing theaudited financial statements

The Dire c t o rs are re q u i red by the Companies A c t , t op re p a re the financial statements for each financial year whichh ave been made out in accordance with applicable approve daccounting standards and gi ve a true and fair view of the stat eof affa i rs of the Company and the Group as at the end offinancial year and of the results and cash flows of the Companyand the Group for the financial year then ended.

The Dire c t o rs are sat i s fied that in pre p a ring the fin a n c i a ls t atements of the Group and the Company for the year ended M a r ch , the Group and the Company have used anda p p l i e d , on consistent basis, the appro p ri ate accounting policiesand practices under the applicable approved accountingstandards in Malay s i a .

i n t e rnal control statement

I N T R O D U C T I O N

The Board is pleased to present its Statement on InternalControl which has been prepared pursuant to paragraph 15.27of Bursa Malaysia Securities Berhad (“Bursa Securities”) ListingRequirements and formulated in accordance with the Statementon Internal Control: Guidance for Directors of Public ListedCompanies (“the Guidance”).The statement below outlines thenature and scope of internal controls of the Group during thefinancial year under review.

BOARD’S RESPONSIBILITIES

The Board is cognizant of the importance of sound internal control and effective risk management practices for goodcorporate governance and continued enhancement of theGroup’s internal control and risk management system.TheBoard acknowledges its responsibility for the Group’s system ofinternal control and risk management to safeguard shareholdersinvestments and the assets of the Group, and for reviewing theadequacy and integrity of the Group’s system of internalcontrol. However, due to the inherent limitations in any systemof internal control, the system put in place within the Group canonly manage rather than eliminate the risk that may impede theachievement of the Group’s business objectives. Accordingly, theinternal control system established can only provide reasonablebut not absolute assurance against material misstatement or loss.

RISK MANAGEMENT FRAMEWORK

During the year under review, Executive Directors and SeniorManagement,with the assistance of the external consultants,completed the development of the Group’s key risk profile.Significant risks were identified and they were assessed in termsof the possibility of occurrence and the impact to the Group ifthe risk materializes.The finalized Group key risk profile was

deliberated at the Audit Committee meeting and wassubsequently presented to the Board for adoption.

On a day to day basis,the management of risks at the Group’sindividual operating units is assigned to local management whois accountable for the conduct and performance of theirbusinesses within the ag reed business strategy.The Board will inturn monitor the performances and profitability of theseoperating units through Executive Directors and SeniorManagement,who are involved in operational and strategicmeetings and received reports on the performance of thebusiness units on a regular basis.

INTERNAL CONTROL MECHANISM

The Board has delegated the responsibility for reviewing theadequacy and integrity of the internal control system to theAudit Committee. In turn,the Audit Committee assesses theadequacy and integrity of the systems of internal controlsthrough independent reviews conducted on reports it receivesfrom Management,internal audit function and external auditors.

The external auditors provided assurance in the form of theirannual statutory audit of the financial statements of the Group.Any areas for improvement identified during the course of thestatutory audit are brought to the attention of the AuditCommittee through management letters or are articulated at theAudit Committee meetings.

During the financial year, the Group outsourced its internalaudit function to a professional internal audit service providerfirm whose remit is to the Audit Committee.The outsourcedinternal audit function has determined the areas of internal auditfocus after considering the significant risks of the Group.Theinternal audit areas identified were incorporated into an internal

audit plan, which was subsequently approved by the AuditCommittee.

Since the establishment of the internal audit function, periodicinternal audit visits have been carried out in accordance with theapproved internal audit plan.The reviews conducted were toassess the operational and financial controls as well as to monitorcompliance with the Group’s policies and procedures.The resultsof the internal audit reviews,including the recommendations forimprovement, were formally tabled at the quarterly AuditCommittee meetings.

The principal features of the Group’s system of internal controlcan be summarised as follows:

I. C o n t rol enviro n m e n t

Acknowledging the importance of delegating appropriate a u t h o rity to Management, the Board, with the assistance of t h e outsourced internal audit function,has conducted a review of transactions of a major business unit with the objective of determining the level of authority for delegation.

Based on the results of the review, a DiscretionaryAuthority Limits (“DAL”) and its authorization procedureshave been established to govern significant facets of theGroup’s business.The DAL was tabled for the Board’sdeliberation and has been approved for implementationduring the financial year under review.

The DAL and its authorisation procedures facilitate sounddecision making at the appropriate level in theorganisation’s hierarchy.This compliments the existingorganisational structure and provides delineated reportinglines to support the Group’s review and approval process.

II. I n f o rmation and communication

Financial and operational systems are in place to capture

and present timely and pertinent internal and externalbusiness information. Clearly defined reporting structureensure financial and operational reports are periodicallyprepared and presented to Management and the Board fordiscussion and review on a timely basis. Schedule and ad-hoc meetings are held at operational and managementlevels to identify, discuss and resolve business andoperational issues.

III.Human re s o u rce policies

Proper guidelines on the employment and retention ofstaff, formal training programmes, annual/semi-annualperformance appraisals and other relevant procedures arein place within the Group to ensure that employees arecompetent and adequately trained in carrying out theirresponsibilities.

C O N C L U S I O N

During the year under review, the Board is not aware of anyissues which would result in any material losses, contingencies oruncertainties that would require separate disclosure in thisannual report.The Board is of the view that the system ofinternal controls is adequate and is committed to ensure that thesystem of internal controls will continuously evolve to supportthe Group’s operations. In this regard, ongoing reviews ofcontrol procedures will be carried out to assess the adequacy andeffectiveness of the Group’s system of internal controls, andwhere necessary, appropriate action plans will be carried out toensure that the Group’s system of internal control remainadaptive to prevail in the changing and challenging businessenvironment.

audit committee re p o rt

D atuk Henry Chin Poy WuSenior Independent Director (C h a i rm an)

D atuk Azizan bin Abd RahmanIndependent non-exe c u t i ve Dire c t or/ C h a i rman of the Board (Member)

Kamil Ahmad Meri c a nNon-independent non-exe c u t i ve Director (M e m b er)

Vi j eya r atnam a/l V. Thamotharam PillayIndependent non-exe c u t i ve Director (M e m b er)

STRUCTURE OF THE AUDIT COMMITTEE

The Audit Committee shall be appointed by the Board and shallcomprise at least three Directors with the majority of the membersto be independent directors. The Chairman of the Committee shallbe an independent director and be elected from amongst theirmembers. All members of the Committee, including theChairman, will hold office until otherwise determined by theBoard. In the event of any vacancy in the Committee resulting inthe non-compliance with the Bursa Malaysia Securities Berhad(“Bursa Securities”) Listing Requirements, the Board of Directorsshall within three months of that event appoint such newmember(s) as may be required to comply with the Bursa SecuritiesListing Requirements.

O B J E C T I V E S

The objective of the Committee is to assist the Board in fulfilling itsfiduciary responsibilities relating to internal controls, corporateaccounting and reporting practices of the Group. The Committeewill endeavour to adopt certain practices aimed at maintainingappropriate standards of responsibility, integrity and accountabilityto the Company’s shareholders.

A U T H O R I T Y

The Committee is authorised by the Board to:i. investigate any matter within its terms of reference;

ii. have the resources which are required to perform its duties;

iii. have full and unrestricted access to any information pertaining to the Company;

iv. have direct communication channels with the external auditorsand person(s) carrying out the internal audit function activity (if any);

v. obtain independent professional or other adv i c e ; a n d

v i . c o nvene any meetings with the external auditors , e x c l u d i n gthe attendance of the exe c u t i ve members of the Au d i tC o m m i t t e e, w h e n ever deemed necessary.

F U N C T I O N S

1 . To rev i ew the following and re p o rt the same to the Board ofD i re c t o rs of the Company :a . with the external auditor, the audit plan;

b. with the external auditor, his eva l u ation of the system ofi n t e rnal contro l s ;

— t e rms of re f e rence of the —audit committee

— composition of the audit committee —

c. with the external auditor, his audit re p o rt ;

d . the assistance gi ven by the employees of the Company tothe external auditor;

e. the adequacy of the scope, functions and resources of thei n t e rnal audit functions and that it has the necessarya u t h o rity to carry out its wo r k ;

f . the internal audit pro gr a m m e, p ro c e s s e s , the results ofthe internal audit pro gr a m m e, p rocesses ori nve s t i g ations undert a ken and whether or nota p p ro p ri ate action is taken on the re c o m m e n d ations ofthe internal audit function;

g. the quart e r ly results and year end stat e m e n t s , p rior to the approval of the Board of Dire c t o rs , focusing p a rt i c u l a r ly on:

i . changes in or implementation of majoraccounting policy ;

i i . s i g n i ficant and unusual events ari s i n g ; and

i i i . compliance with accounting standards, re g u l at o ryand other legal re q u i re m e n t s.

h . a ny re l ated party transaction and conflict of intere s ts i t u ation that may arise within the Company or Gro u pincluding any transaction, p ro c e d u re or course ofconduct that raises questions of management integri t y ;

i . a ny letter of re s i g n ation from the external auditors of the Company ;

j . whether there is reason (supported by grounds) tob e l i eve that the Company ’s external auditors is nots u i t a ble for re - a p p o i n t m e n t .

2 . To recommend the nomination of a person or persons as external auditors.

3 . To carry out such other functions as may be agreed to by the Audit Committee and Board of Dire c t o rs.

MEETINGS AND REPORTING PROCEDURES

The Committee shall meet at least four times a year and to form a quorum for any meeting the majority of membersp resent must be independent dire c t o rs. The Managi n gD i rector and the Finance Director shall be invited to attend all meetings of the Committee and the internal and extern a la u d i t o rs will be invited to attend when appro p ri at e.

The Company Secre t a ry shall be the secre t a ry of theCommittee and as a re p o rting pro c e d u re, the minutes of the meeting shall be circulated to all members of the Board.

The Audit Committee met five times during the financial ye a rended M a r ch and the record of the attendance of theAudit Committee Members are as follow s :

no of names of members meetings attended

1 . D atuk Henry Chin Poy Wu 4

2 . D atuk Azizan bin Abd Rahman 5

3 . Encik Kamil Ahmad Meri c a n 4

4 . Vi j eya r atnam a/l V. Thamotharam Pillay 5

INTERNAL AUDIT FUNCTION

The Board had appointed an independent professional servicesf i rm to assist the Audit Committee in the rev i ew on the adequacyand effectiveness of the internal control system of the Group.

During the year, the outsourced internal audit function assistedthe committee in discharging its duties and responsibilities byexecuting independent review on the Group’s system of internalcontrol. Periodic activities were carried out to provide theCommittee with reasonable assurance that such systems continueto operate satisfactorily and effectively.

Summary of activities that were carried out include:i . Formulated annual audit plan that focuses on controls

managing the principal risk of the group and reviews the resource requirements for audit executions;

i i . Internal audit reviews executed in accordance with the approved annual audit plan;

i i i . Reports on the results of internal audit reviews to the Committee on a periodic basis;

i v. Follow-up on the implementation of audit recommendations and Management’s agreed upon action plans; a n d

v. Ensured satisfactory closure of previous internal auditfindings.

The internal audit reviews conducted did not reveal weaknesseswhich would result in material losses, contingencies oruncertainties that would require disclosure in the annual report.

ACTIVITIES OF THE YEAR

A summary of the activities of the Audit Committee indischarging its functions and duties included the following:i. review of the quarterly financial statements before its

announcements;

ii. review of the external auditors’ reports in relation to audit,accounting and internal control issues arising from the audit and updates of the developments on accounting standards issued by the Malaysian Accounting Standards Board;

iii. review of the audit plan of the external auditors;

iv. review of internal audit plans and reports; and

v. review of related party transactions.

The Audit Committee through discussions with management andthe executive directors, reviews of quarterly financialperformance and input from the internal and external auditorshad discharged its functions effectively during the year.

other information

1. U T I L I S ATION OF PROCEEDS

The Company had announced on 2 June 2005 that the Company would not be proceeding with the Proposed Share Disposal andtherefore there would be no further proceeds arising from the Proposed Share Disposal.

2. SHARE BUYBACKS

For the financial year under review, the details of the share buy-backs are as follows:

m o n t h u n i t s l o w e s t h i g h e s t a v e r a g e Cost of c o n s i d e r a t i o np r i c e p r i c e p r i c e s h a re s p a i d

R M ’ R M ’ R M ’ R M ’ R M ’ R M ’

December 2004 . . . . . . . . . . . . . . . . . . . 541,900 0.720 0.850 0.7640 414,032.22 417,114.60January 2005 . . . . . . . . . . . . . . . . . . . . . . 9,939,900 0.680 0.800 0.7537 7,492,014.92 7,517,922.31February 2005 . . . . . . . . . . . . . . . . . . . . . 2,526,800 0.785 0.800 0.7994 2,019,890.08 2,028,685.51March 2005 . . . . . . . . . . . . . . . . . . . . . . . 6,000 0.675 0.700 0.6792 4,075.20 4,106.29

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,014,600 9,930,012.42 9,967,828.71

3. OPTIONS OR WA R R A N T S

During the financial year under review, no warrants were exercised.

On 20 November 2003, the Company granted options over 12.486 million stock units to eligible employees of the Group under itsEmployees Share Option Scheme. The exercise price per stock unit has been fixed at RM1.05. There was a total of 679,100 lapsedoptions due to resignation of employees during the year. No options have been exercised and no allocation of options was made duringthe financial year.

4. AMERICAN DEPOSITORY RECEIPT (“ADR”) OR GLOBAL DEPOSITORY RECEIPT (“GDR”) PROGRAMME.

During the financial year under review, the Company did not sponsor any ADR or GDR programme.

5. SANCTIONS AND/OR PENALT I E S

During the financial year under review, there was no sanction and/or penalty imposed on the Company and its subsidiaries, Directors ormanagement by the relevant regulatory bodies.

6. NON-AUDIT FEES

During the financial year under review, the Company did not pay any non-audit fees to the external auditor.

7. VA R I ATION IN RESULT S

There were no variances of 10% or more between the results for the financial year under review and the unaudited results previouslyannounced.

8. PROFIT FORECAST/PROFIT GUARANTEE

The Company did not issue any Profit Forecast/Profit Guarantee during the financial year under review.

9. M ATERIAL CONTRACTS

There was no material contract entered into by the Company or its subsidiaries involving the interests of Directors and substantialshareholders during the financial year under review.

1 0 . R E VA L U ATION POLICY

The Group does not have a revaluation policy on landed properties.

1 1 . RECURRENT RELATED PA RTY TRANSACTIONS OF A REVENUE OR TRADING NATURE (“RRPT”)

There was no recurrent related party transaction entered into during the financial year under review.

Dear Valued Share h o l d e rs ,

On behalf of the Board of Directors, it is with great pleasurethat I present the Annual Report and the Audited FinancialStatements of Eastern & Oriental Berhad (EOB) for the financialyear ended March .

The Group registered a profit before tax of RM16.8 million onthe back of a RM21.1 million revenue for the financial yearended March .The lower revenue in comparison withthe previous financial year was due to the absence ofcontribution from its property related subsidiaries,which weredisposed of in November 2003. During this financial year,revenue from hotel operations and related hospitality businessesincreased by 27 percent to RM20.6 million compared to theprevious financial year.

On May , EOB had announced a Voluntary General Offerto acquire the remaining shares and warrants of its associatecompany, E & O Property Development Berhad (E&OPROP),that it does not already own. Following that, on August ,EOB had served a Notice of Conditional Mandatory Offer onthe board of E&OPROP to acquire the remaining shares andwarrants.

Since March , EOB group has purchased 41,127,300E&OPROP shares amounting to 3.6 percent of E&OPROP’spresent issued and paid-up share capital. [In accordance to theMalaysian Code On Take-Overs and Mergers 1998,any share acquisitionabove 2 percent of a company’s paid-up capital within a 6 months

period will trigger a Mandatory General Offer (MGO).This is applicableto an acquirer who already holds more than 33 percent but less than 50percent of the voting shares]

As of August , EOB group held a 47.3 percent stake inE&OPROP shares and 47.1 percent stake in E&OPROPwarrants.

It is EOB’s intention to consolidate assets and earnings of itsassociate company into one entity, paving way for thestreamlining of shareholders’interests and creating astrengthened base for long-term growth.The enlarged EOBgroup will eventually emerge as a premier property group withbusiness interests in property development, propertyinvestment,construction and hospitality.

In relation to the offer, EOB has obtained approvals from theEquity Compliance Unit of the Securities Commission andEOB’s shareholders (via an Extraordinary General Meeting on15 July 2005). With the support of EOB’s shareholders and uponreceipt of all necessary approvals from regulatory authorities, weenvisage that the corporate exercise will be completed beforethe end of this financial year.

Malaysia’s hospitality sector enjoyed a commendable overalloccupancy of up to 72 percent in the past year, which wasprimarily contributed by an upward trend in tourist arrivals. Uptill June this year, the average monthly arrivals to Malaysia stoodat 1.37 million and is expected to reach the 1.4 million mark byend-2005. Overall tourists arrivals in Malaysia for 2005 is

— H O S P I TALITY INDUSTRY: TRENDS AND PROSPECTS—

— corporate development —

— financial perf o rm a n ce —

c h a i rm a n ’s statement

estimated to reach 16.8 million, as tourists arrivals historicallyshow an increase in the second half of the year. As a matter ofinterest,the Malaysian Association of Hotel Owners predicted atthe end of 2004 that five-star hotel rates would increase bybetween RM40 and RM100 per night, providing yet anotherstrong sign of confidence in the hospitality industry.

In Penang, overall tourist arrivals increased 2.9 percent to 3.5million in 2004.In 2004, occupancy rates for both city andbeach hotels on Penang Island surpassed those of the previousyear and stood in excess of 60 percent.

The tsunami,which took place at the end of 2004, hastemporarily affected the island’s hospitality industry to a certainextent,as evidenced by the cancellations of room bookings fromboth the domestic and international tourists. However, it wasobserved that the cancellations were less significant compared tothat during which the Severe Acute Respiratory Syndrome(SARS) crisis dominated the headlines. Following that,a quickrebound was observed within the overall hospitality industry.

In the Ninth Malaysia Plan, the State of Penang has proposedseveral key projects involving beautifications and expansion oftourist attractions as well as upgrading of tourism facilities. Inaddition,The Malaysian Association of Hotels (Penang chapter)together with the Penang Tourism Action Council (PeTac) havebeen evaluating proposals to re-position Penang Island in linewith the Visit Malaysia programme scheduled for 2006 or 2007.

In 2005,occupancy rates are expected to increase in tandemwith the uptrend in tourist arrivals. In the first half of the year,tourists arrivals from South Korea, India and Thailand increasedby more than 25 percent, compared with the correspondingperiod in the previous year. On the other hand, the drop intourists from China, Taiwan and Hong Kong has been offset by

an expected surge of tourists from the Middle East. Keen to tapthe increasingly lucrative Middle East market, 10 airlinescollectively increased up to 135,000 seats for Arab touristsvisiting Malaysia during the year.

Eastern & Oriental Hotel (E & O Hotel) registered a 34.4percent increase in revenue to RM14.9 million for the yearended March .The operating profit margin increasedsignificantly to 24.0 percent,as compared to 14.9 percentrecorded for a similar period in the last financial year.

As brand loyalty has been identified as the key business driverfor E & O Hotel, this continues to be nurtured via long-termrelationship-building initiatives and the highest standards ofcustomer service.

Repeat business contributed more than 35 percent of the overallrevenue for the 101-suite hotel, mainly through overseas agentsas well as via customised packages for both the loyalty corporateand leisure segments. E & O Hotel also increased membershipbenefits for its loyalty programme, ‘The Oval’, focusing especiallyon the food and beverages (F & B) segment. In line with thehospitality industry, E & O Hotel increased its room rates, butthis was also accompanied by a 7.6 percent increase in thenumber of service staff to 183 to enhance the quality and levelof customer service.

Year 2005 also marked the 120th year anniversary of E & OHotel. Indeed, ever since it was established by the famousSarkies Brothers back in 1885, E & O Hotel has charmedtravellers from near and far, creating a reputation to match TheRaffles in Singapore and The Oriental Hotel in Bangkok.

— E & O Hotel—

— review of operations —

Another hotel in EOB’s portfolio is the 50-room Lone PineHotel located along the famous stretch of beach known as BatuFerringhi.Revenue for Lone Pine Hotel grew 13.8 percent toapproximately RM3.0 million for the financial year ended

March . Over a similar corresponding period, its profitmargin increased from 18.5 percent to 23.1 percent.

Lone Pine Hotel has benefited greatly from cross-selling with E & O Hotel, and vice versa,both generating increase in reve n u efor room rentals as well as F& B.With its shady conifers andnearness to the beach,Lone Pine has also become a popularvenue for weddings, a segment which has contributedsignificantly to revenue.

As with the E & O Hotel,Lone Pine Hotel’s key business driverstems from the loyal guests who keep returning after itsrefurbishment in 2001.As the first hotel to be built on BatuFerringhi,Lone Pine Hotel continues to draw locals andreturning expatriates who nurture fond memories of the hotelover the years.

On behalf of the Board of Directors, I would like to thank allour stakeholders for making the year an invigorating one for theGroup. In particular, let me extend my appreciation to themanagement team, who spearheaded our endeavour towardsexcellence;our employees,for their hard work andcommitment; our valued customers who continue to believe inour brands and services;and finally, business associates andstakeholders,for their continued support of EOB. I would alsolike to extend my congratulations to the management and staffof the E & O Hotel, for their celebration of the hotel’s 120thyear anniversary. Its journey for over a century may have beenlong and arduous, but it has emerged with grace and distinctionas one of the world’s finest grand hotels today.

D atuk Azizan bin Abdul Rahman

C h a i rm a n

E a s t e rn & Oriental Berhad

August

— a c k n o w l e d g e m e n ts —— Lone Pine Hotel —

financial statements I

The directors are pleased to present their re p o rt together with the audited financial statements of

the Group and of the Company for the financial year ended 31 March 2005.

P R I N C I PAL ACTIVITIES

The principal activities of the Company are investment holding and provision of management services to its subsidiary companies.The principal activities of the subsidiary and associated companies are disclosed in Notes and to the financial stat e m e n t sre s p e c t i ve ly.

T h e re have been no significant changes in the nat u re of these activities during the financial ye a r.

R E S U LT S

g ro u p c o m p a n y

’ 0 0 0 ’ 0 0 0

P ro fit after taxat i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 , 2 6 2 4 , 2 4 0

M i n o rity interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 079 –

Net pro fit for the ye a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 , 3 4 1 4 , 2 4 0

T h e re we re no mat e rial transfers to or from re s e rves or provisions during the financial year other than as disclosed in thes t atements of changes in equity.

In the opinion of the dire c t o rs , the results of the operations of the Group and of the Company during the financial year we re nots u b s t a n t i a l ly affected by any item, transaction or event of a mat e rial and unusual nat u re.

D I V I D E N D S

The dividends paid by the Company since March were as follows: ’ 0 0 0

In respect of the financial year ended M a r ch as re p o rted in the dire c t o rs ’ re p o rt of that financial ye a r:

F i rst and final dividend of 2.0% less 28% income tax, on 232,471,492 ordinary stock units, d e c l a red on September and paid on N ovember 3 , 3 4 8

At the forthcoming Annual General Meeting, a first and final dividend in respect of the financial year ended March , of 2.0%less 28% income tax on 219,456,892 ordinary stock units,amounting to a dividend payable of RM3,160,179 (1.44 sen net perordinary stock unit) will be proposed for stockholders’approval.The financial statements for the current financial year do not reflectthis proposed dividend. Such dividend,if approved by the stockholders, will be accounted for in equity as an appropriation of retainedprofits in the financial year ending March .

d i rectors’ re p o rt For the financial year ended 3 1 March 2 0 0 5

D I R E C T O R S

The names of the dire c t o rs of the Company in office since the date of the last re p o rt and at the date of this re p o rt are :

D atuk Azizan bin Abd Rahman

D at o ’Tham Ka Hon

D atuk Henry Chin Poy Wu

A l oysius Choong Kok Sin

Kamil Ahmad Meri c a n

Vi j eya r atnam a/l V. Thamotharam Pillay

D at o ’S i ew Ka Wei (resigned on August )

DIRECTORS’ BENEFITS

Neither at the end of the financial ye a r, not at any time during that ye a r, did there subsist any arrangement to which the Companywas a part y, w h e re by the dire c t o rs might acquire benefits by means of the acquisition of shares in or debentures of the Company ora ny other body corp o r at e, other than those arising from the share options granted under the Employe e s ’ S h a re Option Sch e m e.

Since the end of the previous financial ye a r, no director has re c e i ved or become entitled to re c e i ve a benefit (other than benefit sincluded in the aggre g ate amount of emoluments re c e i ved or due and re c e i va ble by the dire c t o rs as shown in Note to the fin a n c i a ls t atements or the fixed salary of a full-time employee of the Company) by reason of a contract made by the Company or a re l at e dc o rp o r ation with any director or with a firm of which the director is a member, or with a company in which the director has asubstantial financial intere s t , except as disclosed in Note to the financial stat e m e n t s.

DIRECTORS’ INTERESTS

According to the re gister of dire c t o rs' share h o l d i n g s , the interests of dire c t o rs in office at the end of the financial year in stock unitsand options over stock units in the Company during the financial year we re as follow s :

number of ord i n a ry stock units of rm1 eachthe company 1 . 4 . 2 0 0 4 a c q u i re d s o l d 3 1 . 3 . 2 0 0 5

– direct intere s tD at o ’Tham Ka Hon 4 , 6 9 9 , 5 8 6 – – 4 , 6 9 9 , 5 8 6

– indirect intere s tD at o ’Tham Ka Hon 5 4 , 6 1 4 , 0 67 – – 5 4 , 6 1 4 , 0 67

DIRECTORS’ INTERESTS (CONTINUED)

w a rrants 2001 / 2011 of rm1 eachthe company 1 . 4 . 2 0 0 4 a c q u i re d e x e rc i s e d 3 1 . 3 . 2 0 0 5

– direct intere s tD at o ’ Tham Ka Hon 6 , 6 9 9 , 5 8 6 – – 6 , 6 9 9 , 5 8 6

– indirect intere s tD at o ’ Tham Ka Hon 6 , 6 0 0 , 0 0 0 – – 6 , 6 0 0 , 0 0 0

number of options over ord i n a ry stock units of rm1 eachthe company 1 . 4 . 2 0 0 4 g r a n t e d e x e rc i s e d 3 1 . 3 . 2 0 0 5

D at o ’ Tham Ka Hon 4 , 5 0 0 , 0 0 0 _ – 4 , 5 0 0 , 0 0 0

A l oysius Choong Kok Sin 4 , 5 0 0 , 0 0 0 – – 4 , 5 0 0 , 0 0 0

D ato' Tham Ka Hon by virtue of his interest in ordinary stock units in the Company is also deemed interested in shares of all theC o m p a ny's subsidiary and associated companies to the extent the Company has an intere s t .

None of the other dire c t o rs in office at the end of the financial year had any interest in stock units in the Company or its re l at e dc o rp o r ations during the financial ye a r.

WA R R A N T S

In conjunction with the rights issue of 61,176,623 new ordinary stock units of RM1 each that we re allotted on M ay ,61,176,623 free detach a ble wa rrants 2001/2011 we re issued.The exercise price of wa rrants 2001/2011 is RM1.03 per wa rr a n t .

D u ring the financial ye a r, no wa rrants we re conve rted into ordinary stock units.The number of outstanding wa rrants as at M a r ch was 61,176,298.

T R E A S U RY STOCK UNITS

D u ring the financial ye a r, the Company re p u r chased 13,014,600 of its issued ordinary stock units from the open market at an average price of RM0.77 per stock unit.The total consideration paid for the re p u r chase including transaction costs was RM9,967,829. The re p u r chase transactions we re financed by intern a l ly generated funds and borrow i n g s. The stock units re p u r chased are being held as tre a s u ry stock units in accordance with Section 67A of the Companies A c t , .

The is no disposal of tre a s u ry stock units during the ye a r. F u rther re l evant details are disclosed in Note and (ii) to the financial stat e m e n t s.

EMPLOYEES’ SHARE OPTION SCHEME

The Employees' Share Option Scheme ("Scheme") was approved by the stock h o l d e rs at an Extraordinary General Meeting conve n e don N ovember .

The salient feat u res of the Scheme are :

a . the number of new stock units to be offered under the Scheme shall be subject to a maximum of ten percent ( %) of the issued and paid-up share capital of the Company at any time during the existence of the Sch e m e ;

b. a ny employee shall be eligi ble to part i c i p ate in the Scheme if the following conditions are sat i s fie d :

i . the employee must be a confirmed employee of the Company or of an eligi ble subsidiary and not be on pro b at i o n ;

i i . the employee must have served the Company or an eligi ble subsidiary for a period of at least six () continuous months; a n d

i i i . the employee must have attained the age of eighteen ( ) ye a rs.

An Exe c u t i ve Director of the Company is eligi ble to part i c i p ate in the Scheme if the Exe c u t i ve Director is invo l ved in the d ay - t o - d ay management of the Company, on the pay roll of the Company, and the allotment to be made to the Exe c u t i ve D i rector has been approved by the Company in general meeting.

c. the option price shall be based on a discount of not more than 10% of the five days weighted average market price at the d ate on which the options are offere d . Notwithstanding this, the exercise price per new stock unit shall in no event be less than its par va l u e ;

d . the new stock units to be allotted upon exercise of an option will upon allotment rank pari passu in all respects with the thenexisting issued stock units save and except that they will not be entitled to any dividends, ri g h t s , allotment or any distri bu t i o nd e c l a re d , made or paid to stock h o l d e rs in respect of which the entitlement date precedes the allotment date of the afore s a i ds t o ck units;

e. the Scheme shall be in force for a period of five ye a rs and may be extended for another five ye a rs subject to the approval of the stock h o l d e rs and re l evant authori t i e s ; a n d

f . the options granted may be exercised at any time from the date of offer of the options up to five years from the date of implementation of the scheme on April .

EMPLOYEES’ SHARE OPTION SCHEME (CONTINUED)

As at March , the total number of options granted, which is at the option price of RM1.05 each, and the movements in the option to take up the unissued ordinary shares of RM1 each of the Company are as follows:

Number of

o rd i n a ry stock

units under options

At A p ril . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 , 4 8 6 , 0 0 0

L e s s : Lapsed due to re s i g n at i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 679 , 1 0 0 )

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 , 8 0 6 , 9 0 0

OTHER STAT U T O RY INFORMAT I O N

a . B e f o re the income statements and balance sheets of the Group and of the Company we re made out, the dire c t o rs took re a s o n a ble steps:

i . to ascertain that proper action had been taken in re l ation to the writing off of bad debts and the making of provision fordoubtful debts and sat i s fied themselves that there we re no known bad debts and that adequate provision had been madefor doubtful debts; a n d

i i . to ensure that any current assets which we re unlike ly to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to re a l i s e.

b. At the date of this re p o rt , the dire c t o rs are not awa re of any circumstances which would re n d e r:

i . it necessary to write off any bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; a n d

i i . the values at t ri buted to the current assets in the financial statements of the Group and of the Company misleading.

c. At the date of this re p o rt , the dire c t o rs are not awa re of any circumstances which have arisen which would render adherence to the existing method of va l u ation of assets or liabilities of the Group and of the Company misleading or inappro p ri at e.

d . At the date of this re p o rt , the dire c t o rs are not awa re of any circumstances not otherwise dealt with in this re p o rt or fin a n c i a ls t atements of the Group and of the Company which would render any amount stated in the financial statements misleading.

e. As at the date of this re p o rt , t h e re does not exist:

i. a ny charge on the assets of the Group or of the Company which has arisen since the end of the financial year whichs e c u res the liabilities of any other pers o n ; o r

OTHER STAT U T O RY INFORMATION (CONTINUED)

ii. a ny contingent liability of the Group or of the Company which has arisen since the end of the financial ye a r.

f . In the opinion of the dire c t o rs :

i. no contingent or other liability has become enforceable or is like ly to become enforceable within the period of twe l vemonths after the end of the financial year which will or may affect the ability of the Group or of the Company to meettheir obl i g ations when they fall due; a n d

ii. no item, transaction or event of a mat e rial and unusual nat u re has arisen in the interval between the end of the fin a n c i a lyear and the date of this re p o rt which is like ly to affect substantially the results of the operations of the Group or of theC o m p a ny for the financial year in which this re p o rt is made.

SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

S i g n i ficant events during the financial year are disclosed in Note to the financial stat e m e n t s.

SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE

S i g n i ficant events subsequent to the balance sheet date are disclosed in Note to the financial stat e m e n t s.

A U D I T O R S

The auditors , E rnst &Yo u n g, h ave expressed their willingness to continue in offic e.

Signed on behalf of the Board in accordance with a resolution of the dire c t o rs.

D at o ’ Tham Ka Hon A l oysius Choong Kok Sin

Kuala Lumpur, M a l ay s i a

J u ly

S TATEMENT BY DIRECTORS PURSUANTTO SECTION 169(15) OF THEC O M PANIES ACT, 1965

We, DATO ’THAM KA HON and A L OYSIUS CHOONG KO KS I N, being two of the dire c t o rs of EASTERN & ORIENTA LB E R H A D, do here by state that , in the opinion of the dire c t o rs ,the accompanying financial statements set out on pages to

a re drawn up in accordance with the provisions of the CompaniesA c t , and applicable MASB A p p roved Accounting Standardsin Malaysia so as to gi ve a true and fair view of the fin a n c i a lposition of the Group and of the Company as at M a r ch

and of the results and the cash flows of the Group and of theC o m p a ny for the year then ended.

Signed on behalf of the Board in accordance with a resolution ofthe dire c t o rs.

DATO ’THAM KA HON A L OYSIUS CHOONG KOK SIN

Kuala Lumpur, M a l ay s i a J u ly

S TAT U T O RY DECLARATION PURSUANTTO SECTION 169(16) OF THEC O M PANIES ACT, 1 9 6 5

I, KOK MENG CHOW, being the officer primarily responsible forthe financial management of EASTERN & ORIENTAL BERHAD,do solemnly and sincerely declare that the accompanying financialstatements set out on pages to are in my opinion correct,and I make this solemn declaration conscientiously believing thesame to be true and by virtue of the provisions of the StatutoryDeclarations Act, .

KOK MENG CHOW

S u b s c ribed and solemnly declared by the abovenamed KO KMENG CHOW at Kuala Lumpur in the Federal Te rri t o ry on J u ly .

B e f o re me,

Soh Ah Kau

N o. W 3 1 5

Commissioner for Oaths

We have audited the financial statements set out on pages to .These financial statements are the responsibility of the Company’s directors.

It is our responsibility to form an independent opinion,based onour audit,on the financial statements and to report our opinion toyou,as a body, in accordance with Section 174 of the CompaniesAct, and for no other purpose.We do not assumeresponsibility to any other person for the content of this report.

We conducted our audit in accordance with applicable ApprovedStandards on Auditing in Malaysia.Those standards require that weplan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement.An audit includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used andsignificant estimates made by the directors,as well as evaluatingthe overall presentation of the financial statements.We believe thatour audit provides a reasonable basis for our opinion.

IN OUR OPINION:

a . the financial statements have been properly drawn up inaccordance with the provisions of the Companies Act,

and applicable MASB Approved Accounting Standards inMalaysia so as to give a true and fair view of:

i . the financial position of the Group and of the Company asat M a r ch and of the results and the cash flows ofthe Group and of the Company for the year then ended;and

i i . the mat t e rs re q u i red by Section 169 of the CompaniesA c t , to be dealt with in the financial stat e m e n t s ; a n d

b. the accounting and other records and the re gi s t e rs re q u i red by the Act to be kept by the Company and by its subsidiaries of w h i ch we have acted as auditors have been pro p e r ly kept in accordance with the provisions of the A c t .

We are sat i s fied that the financial statements of the subsidiari e st h at have been consolidated with the financial statements of theC o m p a ny are in form and content appro p ri ate and proper for thep u rposes of the pre p a r ation of the consolidated fin a n c i a ls t atements and we have re c e i ved sat i s fa c t o ry inform ation ande x p l a n ations re q u i red by us for those purp o s e s.

The auditors ’ re p o rts on the financial statements of thes u b s i d i a ries we re not subject to any qualific ation mat e rial to thec o n s o l i d ated financial statements and did not include anycomment re q u i red to be made under Section 174(3) of the A c t .

E rnst & Yo u n g Yeo Eng SengA F : 0 0 3 9 N o. 1212/12/06 (J)C h a rt e red A c c o u n t a n t s Pa rt n e r

Kuala Lumpur, M a l ay s i a J u ly

re p o rt of the auditors to the members ofe a s t e rn & oriental berhad

( I n c o r p o rated in Malay s i a )

income statementsFor the financial year ended 3 1 March 2 0 0 5

’0 0 0


n o t e 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

R eve n u e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 21,130 117 , 8 8 2 6 , 0 57 8 3 , 5 9 2

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ( 11 , 77 1 ) ( 8 5 , 8 4 0 ) – –

G ross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,359 3 2 , 0 4 2 6 , 0 57 8 3 , 5 9 2

Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,058 1 2 , 8 8 6 1 0 , 1 6 3 1 0 , 3 0 0

Selling and marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . ( 9 4 8) ( 1 , 1 3 2) – –

A d m i n i s t r at i ve expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 8 , 74 1) ( 7 , 9 07) ( 5 , 2 2 6) ( 2 , 1 3 1)

Other operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 5 , 1 3 3) ( 11 , 879) ( 1 , 8 3 0) ( 4 1 , 3 4 2)

Gain/(loss) on disposal of discontinuing operat i o n s . . . . . . . . – 8 , 70 5 – ( 7 , 3 8 6)

P ro fit from operat i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 , 5 9 5 3 2 , 7 1 5 9,164 4 3 , 0 3 3

Finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ( 1 0 , 2 9 6) ( 2 0 , 670) ( 6 , 1 3 0) ( 7 , 6 3 3)

S h a re of results of associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 , 472 5 , 6 6 2 – –

P ro fit before taxat i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 , 77 1 17 , 707 3,034 3 5 , 4 0 0

Ta x at i o n– Company and subsidiari e s . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 , 174 ( 4 0 3) 1 , 2 0 6 ( 2 1 , 3 9 5)

– A s s o c i at e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 ( 3 , 6 8 3) ( 2 , 4 1 2) – –

( 2 , 5 0 9) ( 2 , 8 1 5) 1 , 2 0 6 ( 2 1 , 3 9 5)

P ro fit after taxat i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 , 2 6 2 1 4 , 8 9 2 4 , 2 4 0 1 4 , 0 0 5

M i n o rity intere s t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 079 5 , 6 6 1 – –

Net pro fit for the ye a r 1 5 , 3 4 1 2 0 , 5 5 3 4 , 2 4 0 1 4 , 0 0 5

S E N S E NE a rnings per stock unit (sen)– Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 6 . 7 8 . 8

– Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 – 8 . 4

Net dividends per ordinary stock unit in respect ofthe year (sen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . 4 4 1 . 4 4 1 . 4 4 1 . 4 4

The accompanying notes form an integral part of the financial stat e m e n t s.

balance sheets As at 31 March 2005

’0 0 0 g ro u p c o m p a n y

n o t e 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

N ON CURRENT ASSETS

P ro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . 11 1 2 0 , 8 4 0 1 2 4 , 3 4 8 40 6 2

Real pro p e rty assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 5 5 , 6 8 8 5 5 , 6 8 8 – –

I nvestment pro p e rties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 – 1 9 , 0 0 0 – –

I nvestments in subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . 14 – – 67,253 6 8 , 9 97

I nvestments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 323,008 3 11 , 76 0 1 4 3 , 2 97 1 4 2 , 6 9 3

Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 16,935 1 8 , 6 94 7 , 6 67 9 , 4 1 9

5 1 6 , 471 5 2 9 , 49 0 2 1 8 , 2 57 2 2 1 , 17 1

CURRENT ASSETS

Amounts due from subsidiary companies . . . . . . . . . . . . . . . 17 – – 359,861 3 2 1 , 5 9 0

I nve n t o ries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 6 47 5 3 0 – –

R e c e i va bles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 21,436 2 1 , 2 2 8 14,610 1 3 , 9 8 8

Tax re c ove r a ble . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 2 , 73 0 2,033 3 , 8 0 1

Deposits with licensed banks and financial institutions . . . 2 0 1,150 1 2 , 5 0 0 – 11 , 5 0 0

Cash and bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3,442 1 4 , 4 3 8 50 1 3 , 5 2 0

2 6 , 675 5 1 , 4 2 6 376,554 3 6 4 , 3 9 9

CURRENT LIABILITIES

Amounts due to subsidiary companies . . . . . . . . . . . . . . . . . 22 – – 120,029 94 , 3 8 5

Paya bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 13,382 6 8 , 8 9 0 2,252 49 , 72 0

P rovision for re t i rement benefits . . . . . . . . . . . . . . . . . . . . . 24 4 2 4 – –

B o rrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 42,230 6 9 , 9 1 9 25,994 4 2 , 0 2 8

Tax Paybale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 – – –

5 5 , 675 1 3 4 , 8 3 3 1 4 8 , 275 1 8 6 , 1 3 3

NET CURRENT (LIABILITIES)/ ASSETS ( 2 9 , 0 0 0) ( 8 3 , 4 07) 2 2 8 , 279 178 , 2 6 6

4 87 , 471 4 4 6 , 0 8 3 4 4 6 , 5 3 6 3 9 9 , 4 37

BALANCE SHEETS (CONTINUED)


n o t e 2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

FINANCED BY:

S h a re capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2 3 2 , 472 2 3 2 , 472 2 3 2 , 472 2 3 2 , 472

Tre a s u ry stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 ( 9 , 9 6 8) – ( 9 , 9 6 8) –

R e s e rves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8 1 6 5 , 6 67 1 5 9 , 3 4 4 144,032 1 4 3 , 1 4 0

3 8 8 , 17 1 3 9 1 , 8 1 6 3 6 6 , 5 3 6 375 , 6 1 2

M i n o rity interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 ( 1 3 , 0 47) ( 1 0 , 5 49) – –

P rovision for re t i rement benefits . . . . . . . . . . . . . . . . . . . . . 24 76 6 6 – –

B o rrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 111,424 6 3 , 9 3 4 8 0 , 0 0 0 2 3 , 8 2 5

D e f e rred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 8 47 8 1 6 – –

4 87 , 471 4 4 6 , 0 8 3 446,536 3 9 9 , 4 37

NET TANGIBLE ASSETS PER STOCK UNIT (RM) 1 . 77 1 . 6 9


consolidated statement of changes in equity For the financial year ended 31 March 2005

’0 0 0

non-distributable distributables h a re s h a re t re a s u ry re v a l u a t i o n re t a i n e d

n o t e c a p i t a l p re m i u m Stock Units re s e rv e p ro fit s t o t a l

At A p ril . . . . . . . . . . . . . . . . . . . . 2 3 2 , 472 1 2 8 , 0 0 4 – 9 , 1 8 8 3 , 8 5 1 373 , 5 1 5

P ro fit for the year . . . . . . . . . . . . . . . . . . – – – – 2 0 , 5 5 3 2 0 , 5 5 3

Tr a n s f e rred to deferred taxation . . . . . . . – – – ( 578) – ( 578)

D i v i d e n d . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 – – – – ( 1 , 674) ( 1 , 674)

At M a r ch . . . . . . . . . . . . . . . . . . 2 3 2 , 472 128,004 – 8,610 2 2 , 730 3 9 1 , 8 1 6

P u r chase of tre a s u ry stock units . . . . . . . 27 – – ( 9 , 9 6 8) – – ( 9 , 9 6 8)

P ro fit for the year . . . . . . . . . . . . . . . . . . – – – – 1 5 , 3 4 1 1 5 , 3 4 1

S h a re of associat e ’s re s e rves . . . . . . . . . . – – – – ( 5 , 3 9 8) ( 5 , 3 9 8)

G o o dwill written off . . . . . . . . . . . . . . . – – – – ( 272) ( 272)

Dividend . . . . . . . . . . . . . . . . . . . . . . . . . . 10 – – – – ( 3 , 3 4 8) ( 3 , 3 4 8)

At M a r ch . . . . . . . . . . . . . . . . . . 2 3 2 , 472 128,004 ( 9 , 9 6 8) 8 , 6 1 0 29,053 3 8 8 , 17 1


’0 0 0

statement of changes in equity For the financial year ended 31 March 2005

non-distributable distributables h a re s h a re Tre a s u ry re t a i n e d

n o t e c a p i t a l p re m i u m Stock Units p ro fit s t o t a l

At A p ril . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 2 , 472 1 2 8 , 0 0 4 – 2,805 3 6 3 , 2 8 1

P ro fit for the ye a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 14,005 1 4 , 0 0 5

D i v i d e n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 – – – ( 1 , 674) ( 1 , 674)

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 2 , 472 128,004 – 15,136 375 , 6 1 2

P u r chase of tre a s u ry stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 – – ( 9 , 9 6 8) – ( 9 , 9 6 8)

P ro fit for the ye a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 4,240 4 , 2 4 0

Dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 – – – ( 3 , 3 4 8) ( 3 , 3 4 8)

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 2 , 472 128,004 ( 9 , 9 6 8) 16,028 3 6 6 , 5 3 6


consolidated cash flow statement For the financial year ended 31 March 2005

n o t e 2 0 0 5 2 0 0 4

CASH FLOWS FROM OPERATING ACTIVITIES

P ro fit before taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 , 77 1 17 , 707

Adjustment for:P rovision for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 –

D e p re c i ation of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 5 4 5 4 , 576

Gain on disposal of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2) ( 8 6)

Gain on disposal of quoted inve s t m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 0 , 1 5 9) ( 1 0 , 72 8)

Loss on disposal of investment pro p e rties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 0

Gain on disposal of real pro p e rty assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 2 4 , 3 3 9)

Gain on disposal of discontinuing operat i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 8 , 70 5)

P ro p e rt y, plant and equipment written off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 6

P rovision for re t i rement benefit s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1 8

A m o rt i s ation of other investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8

I m p a i rment of investment pro p e rties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 , 9 9 3

I m p a i rment of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 57

C a p i t a l i s ation of unrealised gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 3 , 1 8 8

R e a l i s ation of unrealised gain from disposal of land and subsidiary companies to an associated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 673) –

I n t e rest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 , 2 9 6 2 0 , 670

I n t e rest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 2) ( 2 4 4)

Dividend income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 5 87) ( 572)

S h a re of results of associat e s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 0 , 472) ( 5 , 6 6 2)

G o o dwill written off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 272) –

P ro fit accrued based on percentage of completion method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 2 , 5 5 1)

O p e r ating loss before working capital ch a n g e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 , 5 5 1) ( 4 , 5 1 4)

’0 0 0


’0 0 0

n o t e 2 0 0 5 2 0 0 4

CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUED)

Working capital ch a n g e s :D evelopment expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 7 , 2 97

R e c e i va bles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 27) ( 17 , 8 1 2)

I nve n t o ri e s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 11 8) ( 6 3)

Paya bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 1 , 0 37) 2 2 1 , 747

Cash (used in)/generated from operat i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 2 , 9 3 3) 2 0 6 , 6 5 5

I n t e rest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 9 , 6 5 6) ( 2 0 , 670)

Payment for re t i rement benefit s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 27) ( 4)

Income tax refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 1 5 8 78 6

Income tax paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 1 , 377)

Net cash (used in)/generated from operating activities . . . . . . . . . . . . . . . . . . . . ( 4 8 , 4 5 8) 1 8 5 , 3 9 0

CASH FLOWS FROM INVESTING ACTIVITIES

P u r chase of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( a) ( 37) ( 4 2 6)

P u r chase of real pro p e rty assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 1 8 4)

P u r chase of other inve s t m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 1 9 9) ( 11 6 , 0 0 0)

Additional investment in associated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 6 0 4) ( 1 6 4 , 1 9 3)

P roceeds from disposal of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . 2 1 9 8

P roceeds from disposal of real pro p e rty assets . . . . . . . . . . . . . . . . . . . . . . . . . . . – 9 0 , 9 5 0

P roceeds from disposal of investment pro p e rties . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 , 0 0 0 5 6 0

P roceeds from disposal of other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 07 , 1 6 4

P roceeds from disposal of shares in associated company . . . . . . . . . . . . . . . . . . . . – 3 1 , 8 0 0

P roceeds from disposal of subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . – 74 , 6 4 3

Dividends re c e i ve d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 3 5 0 4

I n t e rest re c e i ve d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 2 4 4

Net cash generated from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 , 6 27 2 5 , 2 6 0


n o t e 2 0 0 5 2 0 0 4

CASH FLOWS FROM FINANCING ACTIVITIES

D r aw d own of borrow i n g s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 0 , 0 0 0 3 , 0 0 0

P roceeds from margin financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 , 0 57

R e p ayment of borrow i n g s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 73 , 0 5 8) ( 1 6 5 , 470)

R e p ayment of long term paya ble . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 370)

R e p ayment to affil i ated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 2 6 , 8 0 0)

Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 3 4 8) ( 1 , 674)

Deposits released as security for borrowings and bank guarantees . . . . . . . . . . . – 1 0 0

P u r chase of tre a s u ry stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 9 , 9 6 8) –

Net cash generated from/(used in) financing activities . . . . . . . . . . . . . . . . . . . . . 3 , 6 2 6 ( 1 8 6 , 1 57)

NET (DECREASE)/INCREASE IN CASH AND

CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29,205) 2 4 , 49 3

CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 , 3 9 3 ( 1 5 , 1 0 0)


END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( b ) (19,812) 9 , 3 9 3

’0 0 0 ’0 0 0



n o t e s :

( a ) P u r chase of pro p e rt y, plant and equipment during the year was fully paid for in cash.

( b ) Cash and cash equivalents comprise the follow i n g :

2 0 0 5 2 0 0 4

Cash and bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 4 4 2 1 4 , 4 3 8

Deposits with licensed banks and financial institutions (Note ) . . . . . . . 1 , 1 5 0 1 2 , 5 0 0

Bank overdrafts (Note ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 4 , 4 0 4) ( 17 , 5 4 5 )

( 1 9 , 8 1 2) 9 , 3 9 3


’0 0 0

consolidated cash flow statement For the financial year ended 31 March 2005consolidated cash flow statement For the financial year ended 31 March 2005

n o t e 2 0 0 5 2 0 0 4

CASH FLOWS FROM OPERATING ACTIVITIES

P ro fit before taxat i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 0 3 4 3 5 , 4 0 0

Adjustment for:D e p re c i ation of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 6

P rovision for doubtful debt - intercompany . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 0 , 2 4 2

I m p a i rment of investment in subsidiary companies . . . . . . . . . . . . . . . . . . . . . 1 , 74 4 27 , 2 5 2

Loss on disposal of subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 7 , 3 8 6

Gain on disposal of quoted inve s t m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 0 , 1 5 9) ( 1 0 , 3 0 0)

I n t e rest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 , 1 3 0 7 , 6 3 3

I n t e rest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 5 , 9 4 5) ( 3 , 975)

Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 79 , 4 3 3)

O p e r ating loss before working capital ch a n g e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 5 , 174) ( 5 , 75 9)

R e c e i va bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 6 2 2) 1 , 3 6 3

Paya bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 2 , 3 5 8) 7 , 1 0 6

Changes in intercompany balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 6 , 6 9 0) ( 5 , 5 3 2)

Cash used in operat i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 4 , 8 4 4) ( 2 , 8 2 2)

I n t e rest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 6 , 1 3 0) ( 7 , 6 3 3)

Income tax re f u n d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 , 974 –Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 8 , 0 0 0) ( 1 0 , 4 5 5)

CASH FLOWS FROM INVESTING ACTIVITIES

P roceeds from disposal of shares in associated company . . . . . . . . . . . . . . . . . . . . – 3 1 , 8 0 0

P roceeds from disposal of other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 0 6 , 5 8 1

P roceeds from disposal of subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . – 77 , 2 5 2

P u r chase of other inve s t m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 1 9 9) ( 11 6 , 0 0 0)

Additional investment in subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 4 2 , 1 5 1)

Additional investment in associated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 6 0 4) ( 1 6 4 , 1 9 3)

Dividend re c e i ved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 8 , 2 0 0

I n t e rest re c e i ved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2

Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 79 5) ( 4 8 , 5 0 9)

’0 0 0

cash flow statement For the financial year ended 31 March 2005

’0 0 0 n o t e 2 0 0 5 2 0 0 4

CASH FLOWS FROM FINANCING ACTIVITIES

R e p ayment of borrow i n g s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 5 2 , 3 1 5) ( 1 5 9 , 67 1)

R e p ayment to affil i ated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 2 6 , 8 0 0)

D r aw d own of borrow i n g s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000 –

Net advances from subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 270 , 0 9 0

P roceeds from margin financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 , 0 57

Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 3 4 8) ( 1 , 674)

Deposits released as security for borrowings and bank guarantees . . . . . . . . – 1 0 0

P u r chase of tre a s u ry stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 9 , 9 6 8) –

Net cash generated from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,369 87 , 1 0 2

NET (DECREASE)/INCREASE IN CASH AND

CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 2 , 4 2 6) 2 8 , 1 3 8CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 , 73 2 ( 1 5 , 4 0 6)


END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( a ) ( 1 9 , 6 9 4) 1 2 , 73 2

n o t e s :

( a ) Cash and cash equivalents comprise the follow i n g :

2 0 0 5 2 0 0 4

Cash and bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0 1 3 , 5 2 0

Deposits with licensed banks and financial institutions (Note ) . . . . . . . . . – 11 , 5 0 0

Bank overdrafts (Note ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 9 , 74 4) ( 1 2 , 2 8 8)

( 1 9 , 6 9 4) 1 2 , 73 2


cash flow statement For the financial year ended 31 March 2005

1 . C O R P O R ATE INFORMAT I O N

The principal activities of the Company are investment holding and provision of management services to its subsidiary companies.The principal activities of the subsidiary and associated companies are disclosed in Notes and to the financial stat e m e n t sre s p e c t i ve ly.T h e re have been no significant changes in the nat u re of these activities during the financial ye a r.

The Company is a public limited liability company, i n c o rp o r ated and domiciled in Malay s i a , and is listed on the Main Board of theB u rsa Malaysia Securities Berhad.The re gi s t e red office and principal place of business is located at Level 3A (Annexe ) , M e n a r aM i l e n i u m , 8 Jalan Damanlela, Damansara Heights, 50490 Kuala Lumpur.

The number of employees in the Group and in the Company at the end of the financial year we re 257 (2004: 226) and 5 (2004: 4 )re s p e c t i ve ly.

The financial statement we re authorised for issue by the Board of Dire c t o rs in accordance with a resolution of the dire c t o rs on J u ly .

2 . SIGNIFICANT ACCOUNTING POLICIES

a . Basis of Pre p a r a t i o n

The financial statements of the Group and of the Company have been pre p a red under the historical cost convention modified to include the reva l u ation of certain assets included under pro p e rt y, plant and equipment.

The financial statements comply with the provisions of the Companies A c t , and applicable MASB A p p roved Accounting Standards in Malay s i a .

notes to the Financial Statements 31 March 2005

’0 0 0

2 . SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

b . Basis of Consolidation

i . S u b s i d i a ri e sThe consolidated financial statements include the financial statements of the Company and all its subsidiari e s. S u b s i d i a ri e sa re those entities in which the Group has power to exercise control over the financial and operating policies so as to obtainb e n e fits from their activities.

S u b s i d i a ries are consolidated using the acquisition method of accounting. Under the acquisition method of accounting, the results of subsidiaries acquired or disposed of during the financial year are included in the consolidated income statement f rom the effective date of acquisition or up to the effective date of disposal, as appro p ri at e. The assets and liabilities of the s u b s i d i a ries are measured at their fair values at the date of acquisition. The difference between the cost of an acquisition and the fair value of the Gro u p ’s share of the net assets of the acquired subsidiary at the date of acquisition is included in the consolidated balance sheet as goodwill or negat i ve goodw i l l . G o o dwill or negat i ve goodwill a re written off against retained pro fits in the year of acquisition.

I n t r a - group transactions, balances and resulting unrealised gains are eliminated on consolidation and the consolidated financial statements re flect external transactions only. U n realised losses are eliminated on consolidation unless costs cannot be re c ove re d .

The gain or loss on disposal of a subsidiary company is the difference between net disposal proceeds and the Gro u p ’s share of its net assets and is recognised in the income stat e m e n t s.

M i n o rity interests in the consolidated balance sheet consist of the minori t i e s ’ s h a re of the fair value of the identifia ble assets and liabilities of the acquiree as at acquisition date and the minori t i e s ’ s h a re of movements in the acquire e ’s equity since then.


’0 0 0


b . Basis of Consolidation (continued)

i i . A s s o c i at e s

A s s o c i ates are those entities in which the Group exercises significant influence but not contro l , t h rough part i c i p ation in the financial and operating policy decisions of the entities.

I nvestment in associates are accounted for in the consolidated financial statements by the equity method of accounting based on the audited or management financial statements of the associat e s. Under the equity method of accounting, the G roup's share of pro fits less losses of associates during the financial year is included in the consolidated income s t at e m e n t .The Group's interest in associates is carried in the consolidated balance sheet at cost plus the Group's share of post-acquisition retained pro fits or accumu l ated losses and other re s e rve s , including premium on acquisition. P remium on acquisition of associated companies is not amort i s e d .

U n realised gain on transactions between the Group and the associates are eliminated to the extent of the Group's interest in the associat e s. U n realised losses are eliminated unless cost cannot be re c ove re d .

c . Investments in Subsidiaries and Associates

The Company's investments in subsidiaries and associates are stated at cost less impairment losses.The policy for the recognition and measurement of impairment losses is in accordance with Note 2N.

On disposal of such inve s t m e n t s , the difference between net disposal proceeds and their carrying amounts is recognised in the income stat e m e n t .

d . P ro p e rt y, Plant and Equipment and Depre c i a t i o n

P ro p e rt y, plant and equipment are stated at cost/deemed cost less accumu l ated depre c i ation and impairment losses.The policy for the recognition and measurement of impairment losses is in accordance with Note 2N.

C e rtain freehold land and building and leasehold land are stated at va l u ation less impairment losses. R eva l u ations we re made based on the va l u ation by independent va l u e rs on an open market value basis in . As permitted under the transitional p rovisions of IAS 16 (Rev i s e d ) : P ro p e rt y, Plant and Equipment, these assets are stated at their previous revalued amount (subject to continuity in depre c i ation policy and the re q u i rement to write an asset down to its re c ove r a ble amount) on the basis t h at the reva l u ation carried out then, was a one off isolated event and not intended to be an adoption of a reva l u ation policy in place of historical cost.

Long term leasehold pro p e rties comprise pro p e rties with an unexpired lease period of 50 ye a rs and more. All other leasehold p ro p e rties are classified as short term .


’0 0 0


d . P ro p e rt y, Plant and Equipment and Depreciation (continued)

F reehold land is not depre c i at e d . Leasehold lands are depre c i ated over the period of the re s p e c t i ve leases which range from to ye a rs. D e p re c i ation of other pro p e rt y, plant and equipment is provided for on a straight-line basis to write off the cost of each asset to its residual value over the estimated useful life, at the following annual rat e s :

Buildings 2 %M a ch i n e ry and equipment 12% - 20%F u rn i t u re, fittings and equipment 7.5% - 10%R e n ovations 10% - 20%Motor vehicles 16% - 20%

Upon the disposal of an item of pro p e rt y, plant or equipment, the difference between the net disposal proceeds and the net c a rrying amount is recognised in the income statement and the unutilised portion of the reva l u ation surplus on that item is t a ken dire c t ly to retained pro fit s.

e . Real Pro p e rty Assets

Real pro p e rty assets consist of land and at t ri bu t a ble development costs where development activities are not expected to becompleted within the normal operating cy c l e. Cost consists of land acquisition cost, at t ri bu t a ble development expenditure andb o rrowing costs re l ating to the financing of the land and deve l o p m e n t . S u ch assets are classified within non-current assets anda re stated at cost less impairment losses.The policy for the recognition and measurement of impairment losses is in accordancewith Note 2N.

Real pro p e rty assets are re c l a s s i fied as development pro p e rties at the point when development activities have commenced and where it can be demonstrated that the development activities can be completed within the normal operating cy c l e.

f . Revenue Recognition

R evenue is recognised when it is pro b a ble that the economic benefits associated with the transaction will flow to the enterp ri s eand the amount of the revenue can be measured re l i a bly.

i . Hotel operat i o n sR evenue from rental of hotel rooms are recognised on an accrual basis.

R evenue from sale of food and beverage is recognised based on invoiced value of goods sold.

R evenue from services incidental to the hotel operations is recognised net of service taxes when the services h ave been perform e d .


’0 0 0


F. Revenue Recognition (continued)

i i . Rental incomeRental income from investment pro p e rties is recognised on an accrual basis based on agreed upon rental rat e s.

i i i . Management feesR evenue from management services provided is recognised when service has been re n d e re d .

i v. I n t e rest incomeI n t e rest income is recognised on accrual basis. If the re c overability is in doubt, then the interest income is recognised on cash basis.

v. Dividend income Dividend income is recognised when the stockholder's right to re c e i ve payment has been establ i s h e d .

G . income tax

Income tax on the pro fit or loss for the year comprises current and deferred tax. C u rrent tax is the expected amount ofincome taxes paya ble in respect of the taxable pro fit for the year and is measured using the tax rates that have been enacted at the balance sheet dat e.

D e f e rred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial stat e m e n t s. In pri n c i p l e, d e f e rred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary d i f f e re n c e s , unused tax losses and unused tax credits to the extent that it is pro b a ble that taxable pro fit will be ava i l a ble against which the deductible temporary differe n c e s , unused tax losses and unused tax credits can be utilised. D e f e rred tax is not recognised if the temporary difference arises from goodwill or negat i ve goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting pro fit nor taxable pro fit .

D e f e rred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantive ly enacted at the balance sheet dat e. D e f e rred tax is recognised in the income stat e m e n t , except when it arises from a transaction which is recognised dire c t ly in equity, in w h i ch case the deferred tax is also recognised dire c t ly in equity, or when it arises from a business combination t h at is an acquisition, in which case the deferred tax is included in the resulting goodwill or negat i ve goodw i l l .


’0 0 0


H . I n v e n t o r i e s

I nve n t o ries comprising of food, b everages and consumabl e s , a re stated at the lower of cost and net re a l i s a ble va l u e. Cost is d e t e rmined using the first in, first out method. Net re a l i s a ble value is the estimated selling price in the ordinary course of business less selling expense.

i . P rovisions for Liabilities

P rovisions for liabilities are recognised when the Group has a present obl i g ation as a result of a past event and it is pro b a ble t h at an outflow of resources embodying economic benefits will be re q u i red to settle the obl i g at i o n , and a re l i a ble estimate of the amount can be made. P rovisions are rev i ewed at each balance sheet date and adjusted to re flect the current best e s t i m at e.W h e re the effect of the time value of money is mat e ri a l , the amount of a provision is the present value of the e x p e n d i t u re expected to be re q u i red to settle the obl i g at i o n .

j . F o reign Curre n c i e s

Transactions in foreign currencies are initially conve rted into Ringgit Malaysia at rates of exchange ruling at the date oft r a n s a c t i o n . At each balance sheet dat e, f o reign curre n cy monetary items are translated into Ringgit Malaysia at exchange rat e sruling at that dat e. N o n - m o n e t a ry items which are carried at historical cost are translated using the historical rate as of thed ate of acquisition and non-monetary items which are carried at fair value are translated using the exchange rate that existedwhen the values we re determ i n e d .

All exchange differences are recognised in the income stat e m e n t .

The principal exchange rates used for eve ry unit of foreign curre n cy ruling at the balance sheet date used are as follow s :

F o reign currency 2 0 0 5 2 0 0 4

rm rm

1 US Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.80 3 . 8 0

k . Operating Leases

Lease payments made under operating leases, w h e re substantially all the risks and benefits remain with the lessor, a re charged as expenses in the income statement on a straight-line basis over the term of the lease.


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l . Employee Benefit s

i . S h o rt term benefit sWa g e s , s a l a ri e s , bonuses and social security contri butions are recognised as an expense in the year in which the associated s e rvices are re n d e red by employees of the Gro u p. S h o rt term accumu l ating compensated absences such as paid annual l e ave are recognised when services are re n d e red by employees that increase their entitlement to future compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.

i i . D e fined contri bution plansAs re q u i red by law, companies in Malaysia make contri butions to the Employees Provident Fund ( “ E P F ” ) . S u ch c o n t ri butions are recognised as an expense in the income statement as incurre d .

i i i . D e fined benefit plansOne of the subsidiaries of the Group operates an unfunded, d e fined benefit Retirement Benefit Scheme ("the Scheme") for the eligi ble employees of the subsidiary company. The subsidiary company ’s obl i g ations under the Scheme are determined based on triennial actuarial va l u ation where the amount of benefit that employees have earned in re t u rn for their service in the current and prior ye a rs is estimat e d . T h at benefit is discounted using the Projected Unit Credit Method in order to d e t e rmine its present va l u e. A c t u a rial gains and losses are recognised as income or expense over the expected average remaining working lives of the part i c i p ating employees when the cumu l at i ve unrecognised actuarial gains or losses for the S cheme exceed 10% of the present value of the defined benefit obl i g at i o n . Past service cost is recognised immediat e ly to the extent that the benefits are alre a dy ve s t e d , and otherwise is amortised on a straight-line basis over the average period until the amended benefits become ve s t e d .

The amount recognised in the balance sheet re p resents the present value of the defined benefit obl i g ations adjusted for u n recognised actuarial gains and losses and unrecognised past service cost.

An actuarial va l u ation of the liabilities for the Scheme was carried out on June . Based on the actuarial re p o rt ,t h e re was a deficit re p o rted at balance sheet dat e. The increase in defined benefit liability is recognised as an expense on a straight line basis over 5 ye a rs as permitted by FRS 119-Employee Benefits upon first applicat i o n .The subsidiary company has provided RM16,946 (2004: RM18,217) during the financial year and the balance of the deficit at the financial year end amounts to RM5,084 (2004: R M 6 , 7 7 9 ) .


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i v. Equity compensation benefit sThe Company's Employee Share Option Scheme allows the Gro u p ’s employees to acquire ordinary stock units of the C o m p a ny. No compensation cost or obl i g ation is re c o g n i s e d .When the options are exe r c i s e d , equity is increased by the amount of the proceeds re c e i ve d .

M . Cash and Cash Equivalents

Cash comprises cash and bank balances and deposits with licensed banks and financial institution. Cash equivalents are short t e rm , h i g h ly liquid investments that are re a d i ly conve rt i ble to known amount of cash and which are subject to an insignificant risk of changes in va l u e, net of outstanding bank ove r d r a f t s.

n . I m p a i rment of Assets

At each balance sheet dat e, the Group rev i ews the carrying amounts of its assets to determine whether there is any indication of impairm e n t . If any such indication exists, i m p a i rment is measured by comparing the carrying values of the assets with theirre c ove r a ble amounts. R e c ove r a ble amount is the higher of net selling price and value in use, w h i ch is measured by re f e rence to discounted future cash flow s.

An impairment loss is recognised as an expense in the income statement immediat e ly, unless the asset is carried at a revalued a m o u n t .A ny impairment loss of a revalued asset is tre ated as a reva l u ation decrease to the extent of any unutilised prev i o u s ly recognised reva l u ation surplus for the same asset.

O . Financial Instru m e n t s

Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instru m e n t .

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arr a n g e m e n t .I n t e re s t s , dividends and gains and losses re l ating to a financial instrument classified as a liability, a re re p o rted as expense or i n c o m e. D i s t ri butions to holders of financial instruments classified as equity are recognised dire c t ly in equity. Financial i n s t ruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simu l t a n e o u s ly.

i . Other Non-Current Inve s t m e n tN o n - c u rrent investments other than investments in subsidiaries and associates are stated at cost less impairment losses.On disposal of an inve s t m e n t , the difference between net disposal proceeds and its carrying amount is recognised in the income stat e m e n t .


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O . Financial Instruments (continued)

i i . R e c e i va bl e sR e c e i va bles are carried at anticipated re a l i s a ble va l u e s. Bad debts are written off when identifie d . An estimate is made for doubtful debts based on a rev i ew of all outstanding amounts as at the balance sheet dat e.

i i i . Paya bl e sPayables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received.

i v. I n t e re s t - B e a ring Borrow i n g sI n t e re s t - b e a ring bank loans and overdrafts are recorded at the amount of proceeds re c e i ve d , net of transaction costs.

B o rrowing costs dire c t ly at t ri bu t a ble to the acquisition, c o n s t ruction or production of qualifying assets, w h i ch are assets t h at necessari ly take a substantial period of time to get re a dy for their intended use or sale, a re capitalised as part of the cost of those assets, until such time as the assets are substantially re a dy for their intended use or sale.The amount of b o rrowing costs eligi ble for capitalisation is determined by applying a capitalisation rate which is the weighted average of the borrowing costs applicable to the Gro u p ’s borrowings that are outstanding during the financial ye a r, other than b o rrowings made specific a l ly for the purpose of acquiring another qualifying asset. For borrowings made specific a l ly for the purpose of acquiring a qualifying asset, the amount of borrowing costs eligi ble for capitalisation is the actual b o rrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of funds draw n d own from that borrowing fa c i l i t y.

All other borrowing costs are recognised as an expense in the income statement in the period in which they are incurre d .

v. Equity Instru m e n t sO r d i n a ry stock units are classified as equity. Dividends on ordinary stock units are recognised in equity in the period in which they are approved for pay m e n t .

The consideration paid, including at t ri bu t a ble transaction costs on re p u r chased ordinary stock units of the Company t h at have not been cancelled, a re classified as tre a s u ry stock units and presented as a deduction from equity. No gain or loss is recognised in the income statement on the sale, re-issuance or cancellation of tre a s u ry stock units.When tre a s u ry s t o ck units are reissued by re s a l e, the difference between the sales consideration and the carrying amount is recognised in e q u i t y.


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3 R E V E N U E

R evenue of the Group and of the Company consists of the follow i n g :

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

P ro p o rt i o n ate sales value of deve l o p m e n tp ro p e rties at t ri bu t a ble to the work perform e d . . . . . . . . . . . . . . . – 2 , 8 87 – –

Sales of pro p e rt i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 95,153 – –

Hotel operat i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 , 576 16,196 – –

Rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 6 3,644 – –

Management fee from subsidiary companies . . . . . . . . . . . . . . . . . . . . – – 11 2 1 8 4

I n t e rest income fro m :– subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 5 , 9 37 3 , 973

– others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 8 2

G ross dividend income from unquoted investments in subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 79 , 4 3 3

2 1 , 1 3 0 117,882 6 , 0 57 8 3 , 5 9 2

4 COST OF SALES

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

R o o m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 6 2 2 2 , 873 – –

Food and beve r a g e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 , 5 47 6 , 8 87 – –

Other operating depart m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 8 301 – –

P ro p e rty development and sales costs . . . . . . . . . . . . . . . . . . . . . . . . . . – 74,698 – –

Rental cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 1,081 – –

11 , 77 1 85,840 – –


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5 PROFIT FROM OPERAT I O N S

P ro fit from operations is stated after ch a r gi n g / ( c re d i t i n g ) :g ro u p c o m p a n y

2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Au d i t o rs' re mu n e r at i o n :– audit fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9 94 2 5 2 5

– underp rovision in prior year's audit fee . . . . . . . . . . . . . . . . . . . – 2 1 – –

D e p re c i ation of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . 3 , 5 4 5 4 , 576 2 2 3 6

P ro p e rt y, plant and equipment written off . . . . . . . . . . . . . . . . . . . . . – 6 – –

A m o rt i s ation of other investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 – –

Rental for land, buildings and equipment . . . . . . . . . . . . . . . . . . . . . . . 8 3 4 8 5 5 1 4 6 5 6

P rovision for re t i rement benefit s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1 8 – –

I m p a i rment of investment in subsidiary companies . . . . . . . . . . . . . . – – 1 , 74 4 27 , 2 5 2

P rovision for doubtful debts– intercompany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 1 0 , 2 4 2

– others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 – – –

(Gain)/loss on disposal of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . – ( 8 , 70 5) – 7 , 3 8 6

I m p a i rment of investment pro p e rties . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 , 9 9 3 – –

I m p a i rment of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . . . . – 1 57 – –

Loss on disposal of investment pro p e rties . . . . . . . . . . . . . . . . . . . . . . – 5 0 – –


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5 PROFIT FROM OPERATIONS (CONTINUED)

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 470) – –

Management fees re c e i ved from subsidiary companies . . . . . . . . . . . . – – ( 11 2) ( 1 8 4)

I n t e rest income fro m :- subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – ( 5 , 9 37) ( 3 , 973)

- others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 2) ( 2 4 4) ( 8) ( 2)

G ross dividend income fro m :- subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – ( 79 , 4 3 3)

- others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 5 87) ( 572) – –

Realised gain on foreign exch a n g e. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 6) ( 9) – –

Bad debts re c ove red . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 2 2) – –

Gain on disposal of pro p e rt y, plant and equipment . . . . . . . . . . . . . . . ( 2) ( 8 6) – –

Gain on disposal of real pro p e rty assets . . . . . . . . . . . . . . . . . . . . . . . . – ( 2 4 , 3 3 9) – –

Gain on disposal of quoted investments . . . . . . . . . . . . . . . . . . . . . . . . ( 1 0 , 1 5 9) ( 1 0 , 72 8) ( 1 0 , 1 5 9) ( 1 0 , 3 0 0)

* Staff costs:Wages and salari e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 3 3 8 7 , 1 2 8 2 8 0 2 6 5

E m p l oyees Provident Fund contri bu t i o n. . . . . . . . . . . . . . . . . . . . . 4 6 1 8 3 1 4 2 3 9

Pension costs– defined benefit plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1 8 – –

Other staff re l ated expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 574 1 , 4 3 6 5 2 5 2 1 3

6 , 3 9 0 9 , 4 1 3 8 47 5 17

* Staff costs exclude dire c t o rs' re mu n e r at i o n .The dire c t o rs' re mu n e r ation are disclosed in Note to the financial stat e m e n t s.


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6 DIRECTORS' REMUNERAT I O N

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

D i r e c t o r s of the CompanyE xe c u t i ve :

– S a l a ries and other emoluments . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 5 87 998 1 , 5 87 9 9 8

– B e n e fits-in-kind *. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 33 2 1 3 3

1,608 1 , 0 3 1 1,608 1 , 0 3 1

N o n - E xe c u t i ve :– fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 136 1 5 6 1 3 6

– o t h e rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 0 97 2 4 0 97

396 2 3 3 396 2 3 3

To t a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,004 1 , 2 6 4 2,004 1 , 2 6 4

* The estimated monetary value of benefits-in-kind are provided to the dire c t o rs by way of usage of the Group's and the Company's assets such as motor vehicles and the provision of accommodation and other benefits such as dri ve rs.

The number of dire c t o rs of the Company whose total re mu n e r ation (including director's fees) during the financial year fell withinthe following bands is analysed below :

number of dire c t o r s2 0 0 5 2 0 0 4

E xe c u t i ve Dire c t o rsRM400,001 to RM450,000 . . . . . . . . . . . . . . . . . . . . . . . . 1 1

RM600,001 to RM650,000 . . . . . . . . . . . . . . . . . . . . . . . . – 1

A b ove RM1,000,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 –

N o n - E xe c u t i ve Dire c t o rsB e l ow RM50,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4

RM100,001 to RM150,000. . . . . . . . . . . . . . . . . . . . . . . . . – 1

RM250,001 to RM300,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 –


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7 FINANCE COSTS

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

I n t e rest expense on:– revolving cre d i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 1 4,409 37 1 4 , 1 5 7– bank ove r d r a f t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 0 4 4 1,402 9 6 4 9 9 6– term loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 , 5 8 9 11,909 4 , 5 0 3 1 , 7 8 7– others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 2 2,950 2 9 2 6 9 3

1 0 , 2 9 6 20,670 6 , 1 3 0 7 , 6 3 3

8 TA X AT I O N

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

M a l aysian income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 67 – 2 1 , 2 3 3

D e f e rred tax (Note ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1 0 3 – –

Real pro p e rty gains tax on disposal of s u b s i d i a ry companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 9 0 5 – 9 0 5

O ve rp rovision of income tax in prior ye a rs . . . . . . . . . . . . . . . . . . . . . ( 1 , 2 0 5) ( 772) ( 1 , 2 0 6) ( 74 3)

S h a re of taxation of associated companies . . . . . . . . . . . . . . . . . . . . . . 3 , 6 8 3 2,412 – –

2,509 2 , 8 1 5 ( 1 , 2 0 6) 2 1 , 3 9 5

Domestic income tax is calculated at the Malaysian stat u t o ry tax rate of 28% (2004:28%) of the estimated assessable pro fit for the ye a r.


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8 TA X ATION (CONTINUED)

A re c o n c i l i ation of income tax expense applicable to pro fit before taxation at the stat u t o ry income tax rate to income tax expenseat the effective income tax rate of the Group and of the Company is as follow s :

g ro u p

2 0 0 5 2 0 0 4

P ro fit before taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 , 77 1 17 , 707

Ta x ation at Malaysian stat u t o ry tax rate of 28% (2004: 2 8 % ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 6 9 6 4 , 9 5 8

Effect of income not subject to tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 , 8 5 8) ( 9 , 75 2)

Effect of expenses not deductible for tax purp o s e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 4 2 , 5 0 4

U t i l i s ation of prev i o u s ly unrecognised deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 1 5 4)

D e f e rred tax assets not recognised during the ye a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3 9 5 , 0 3 6

Real pro p e rty gains tax on disposal of subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 9 0 5

O ve rp rovision of income tax in prior ye a rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 , 2 0 5) ( 772)

O t h e rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3 9 0

Tax expense for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 , 5 0 9 2 , 8 1 5

c o m p a n y2 0 0 5 2 0 0 4

P ro fit before taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 0 3 4 3 5 , 4 0 0

Ta x ation at Malaysian stat u t o ry tax rate of 28% (2004: 2 8 % ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 5 0 9 , 9 1 2

Effect of income not subject to tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 , 8 4 5) ( 3 , 870)

Effect of expenses not deductible for tax purp o s e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 8 4 4 1 2 , 3 5 1

D e f e rred tax assets not recognised during the financial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 , 8 4 0

Real pro p e rty gains tax on disposal of subsidiary companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 9 0 5

O ve rp rovision of income tax in prior ye a rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 , 2 0 6) ( 74 3)

O t h e rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 5 –

Tax expense for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 , 2 0 6) 2 1 , 3 9 5


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9 EARNINGS PER STOCK UNIT

a . B a s i c

Basic earnings per ordinary stock unit is calculated by dividing the net pro fit for the year by the weighted average number ofo r d i n a ry stock units in issue during the financial ye a r.

g ro u p2 0 0 5 2 0 0 4

Net pro fit for the year (RM'000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 , 3 4 1 ( 2 0 , 5 5 3)

Weighted average number of ordinary stock units in issue ('000) . . . . . . . . . . . . . . . . . . . . . . . . . . 229,384 2 3 2 , 472

Basic earnings per stock unit (sen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . 7 8 . 8

b . D i l u t e d

For the purpose of calculating diluted earnings per stock unit, the net pro fit for the year and the weighted average number ofo r d i n a ry stock units in issue during the financial year is adjusted to assume conve rsion of all dilutive potential ordinary stocku n i t s , i . e. wa rrants and share options granted to employe e s.

D u ring the financial ye a r, no adjustment has been made to the wieghted average number of ordinary stock units in issue in the c a l c u l ation of diluted earnings per stock unit due to the anti dilutive effect of the wa rrants and employe e ’s share options.

The Gro u p ’s diluted earnings per share for the previous financial year is presented as below :

g ro u p

2 0 0 4

Net pro fit for the year (RM'000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 , 5 5 3

Weighted average number of ordinary stock units in issue (‘000) . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 2 , 472

Effect of dilution:

Wa rrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 , 2 2 8

S h a re options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757

Adjusted weighted average number of ordinary

s t o ck units in issue and issuable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 4 , 4 57

Diluted earnings per stock unit (sen) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . 4


’0 0 0

10 D I V I D E N D S

g roup / company2 0 0 5 2 0 0 4

net amount of net amount ofdividend d i v i d e n d dividend d i v i d e n d

per stock net of tax per stock net of taxunit unit

s e n s e n

F i rst and final dividend in respect of previous year 1.44 3,348 0 . 72 1 , 674

At the forthcoming Annual General Meeting, a first and final dividend in respect of the financial year ended M a r ch , o f2.0% less 28% taxation on 219,456,892 ordinary stock units, amounting to a dividend paya ble of RM3,160,179 (1.44 sen net pero r d i n a ry stock unit) will be proposed for stock h o l d e rs ’ a p p rova l .The financial statements for the current financial year do notre flect this proposed dividend. S u ch dividend, if approved by the stock h o l d e rs , will be accounted for in equity as an appro p ri at i o nof retained pro fits in the financial year ending M a r ch .

11 P R O P E RT Y, PLANT AND EQUIPMENT

furniture,land machinery fixtures and and and motor

g ro u p buildings* equipment equipment renovations vehicles total

C o s t

At A p ril . . . . . . . . . . 123,310 2,692 1 2 , 110 1 1,448 1 3 9 , 5 6 1

Additions . . . . . . . . . . . . . . . – 5 32 – – 37

Disposals . . . . . . . . . . . . . . . – – – – ( 2 9) ( 2 9)

At M a r ch . . . . . . . . 123,310 2 , 6 97 12,142 1 1 , 4 1 9 1 3 9 , 5 6 9

R e p re s e n t i n g :At cost . . . . . . . . . . . . . . . . . 1 0 4 , 3 6 1 2 , 6 97 12,142 1 1,419 1 2 0 , 6 2 0

At deemed cost (or va l u ation) . . . . . . . . . 1 8 , 949 – – – – 1 8 , 949

123,310 2 , 6 97 12,142 1 1,419 1 3 9 , 5 6 9


’0 0 0

11 P R O P E RT Y, PLANT AND EQUIPMENT (CONTINUED)


buildings* equipment equipment renovations vehicles total

Accumulated

D e p re c i a t i o n

At A p ril . . . . . . . . . . 8,404 1,161 4,203 1 1,444 1 5 , 2 1 3

Charge for the year . . . . . . . 2 , 1 49 220 1 , 172 – 4 3 , 5 4 5

Disposals . . . . . . . . . . . . . . . – – – – ( 2 9) ( 2 9)

At M a r ch . . . . . . . . 10,553 1,381 5 , 375 1 1,419 1 8 , 72 9

A n a lysed as:A c c u mu l at e d

d e p re c i at i o n . . . . . . . . . . 10,553 1,381 5,218 1 1,419 1 8 , 572

A c c u mu l ated i m p a i rment losses . . . . . – – 1 57 – – 1 57

10,553 1,381 5 , 375 1 1,419 1 8 , 72 9

Net Book Value

At M a r ch :At cost . . . . . . . . . . . . . . . . . 9 5 , 5 94 1,316 6 , 767 – – 1 0 3 , 677

At deemed cost (or va l u ation) . . . . . . . . . 17 , 1 6 3 – – – – 17 , 1 6 3

11 2 , 757 1,316 6 , 767 – – 1 2 0 , 8 4 0


’0 0 0



buildings* equipment equipment renovations vehicles total

net book value

At M a r ch :At cost . . . . . . . . . . . . . . . . . 97 , 6 6 0 1,531 7 , 9 07 – 4 1 07 , 1 0 2

At deemed cost (or va l u ation) . . . . . . . . . 17 , 2 4 6 – – – – 17 , 2 4 6

114,906 1,531 7 , 9 07 – 4 1 2 4 , 3 4 8

D e p re c i ation charge for . . . . . . . 2,358 219 1 , 738 21 240 4 , 576

* land and buildings of the gro u p

s h o rt termlong term s h o rt term f re e h o l d l e a s e h o l d

f re e h o l d l e a s e h o l d leasehold f re e h o l d land and land andland land land b u i l d i n g b u l d i n g b u i l d i n g t o t a l

c o s t

At A p ril / M a r ch . . . . . . . . 1 5 , 2 0 0 363 386 3,000 102,361 2,000 1 2 3 , 3 1 0

R e p re s e n t i n g :At cost . . . . . . . . . . . . . . . . . – – – – 102,361 2,000 1 0 4 , 3 6 1

At deemed cost (or va l u ation) . . . . . . . . . 15,200 363 386 3,000 – – 1 8 , 949

1 5 , 2 0 0 3 6 3 3 8 6 3 , 0 0 0 1 0 2 , 3 6 1 2 , 0 0 0 1 2 3 , 3 1 0


’0 0 0


* land and buildings of the gro u p

s h o rt termlong term s h o rt term f re e h o l d l e a s e h o l d

f re e h o l d l e a s e h o l d leasehold f re e h o l d land and land andland land land b u i l d i n g b u l d i n g b u i l d i n g t o t a l

Accumulated

D e p re c i a t i o n

At A p ril . . . . . . . . . . . – 1 0 8 275 1 , 3 2 0 5 , 5 57 1,144 8 , 4 0 4

Charge for the ye a rAt M a r ch . . . . . . . . – 7 16 60 1 , 8 37 229 2 , 1 49

– 115 2 9 1 1 , 3 8 0 7 , 3 94 1 , 373 1 0 , 5 5 3

Net Book Value

At M a r ch :At cost . . . . . . . . . . . . . . . . . – – – – 94 , 9 67 6 27 9 5 , 5 94

At deemed cost (or va l u at i o n ) . . . . . . . . . 1 5 , 2 0 0 2 4 8 9 5 1 , 6 2 0 – – 17 , 1 6 3

1 5 , 2 0 0 248 9 5 1 , 6 2 0 94 , 9 67 6 27 11 2 , 757

At M a r ch :At cost . . . . . . . . . . . . . . . . . . – – – – 9 6 , 8 0 4 8 5 6 97 , 6 6 0

At deemed cost (or va l u at i o n ) . . . . . . . . . 1 5 , 2 0 0 2 5 5 111 1 , 6 8 0 – – 17 , 2 4 6

1 5 , 2 0 0 255 111 1 , 6 8 0 9 6 , 8 0 4 8 5 6 11 4 , 9 0 6

D e p re c i ation charge for . . . . . . . – 5 13 60 2,051 229 2 , 3 5 8


’0 0 0


F u rn i t u re ,c o m p a n y Fittings and

Equipment renovations t o t a l

c o s t

At A p ril / M a r ch 3 67 2 3 6 9

Accumulated Depre c i a t i o n

At A p ril 305 2 3 07

Charge for the year 22 – 2 2

At M a r ch 3 27 2 3 2 9

net book value

At M a r ch 40 – 4 0

At M a r ch 62 – 6 2

D e p re c i ation charge for 36 – 3 6

a . The Group's pro p e rties we re revalued based on va l u ation by independent va l u e rs on the open market value basis in .As permitted under the transitional provisions of IAS 16 (Rev i s e d ) : P ro p e rt y, Plant and Equipment, these assets are stated at their previous revalued amount (subject to continuity in depre c i ation policy and the re q u i rement to write an asset down to its re c ove r a ble amount) on the basis that the reva l u ation carried out then, was a one off isolated event and not intended to be an adoption of a reva l u ation policy in place of historical cost.

b. Had the revalued fre e h o l d , long and short term leasehold land and freehold building been carried at historical cost, the net book value of the revalued pro p e rties that would have been included in the financial statements of the Group as at balance sheet date would have been as follow s :


’0 0 0


g ro u p2 0 0 5 2 0 0 4

F reehold land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 , 872 5 , 872

Long term leasehold land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 4 11 6

S h o rt term leasehold land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 4 8

F reehold building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 1 6 9 1 , 2 1 4

7,198 7 , 2 5 0

c. The net book value of pro p e rt y, plant and equipment pledged for borrowings (Note 25) are as follow s :g ro u p

2 0 0 5 2 0 0 4

F reehold land and buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 , 1 5 8 11 3 , 6 8 4

Long term leasehold land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 8 2 5 5

S h o rt term leasehold land and building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 5 9 67

99,501 11 4 , 9 0 6

12 REAL PROPERTY ASSETS

g ro u p2 0 0 5 2 0 0 4

At cost:

F reehold land and buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 , 70 0 9 , 70 0

D evelopment expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 , 9 8 8 4 5 , 9 8 8

5 5 , 6 8 8 5 5 , 6 8 8

Real pro p e rty assets amounting to RM55,688,000 (2004: RM55,688,000) have been pledged as security for borrow i n g sas disclosed in Note to the financial stat e m e n t s.

Included in the development expenditure are borrowing costs capitalised of RM18,663,246 (2004: R M 1 8 , 6 6 3 , 2 4 6 ) .


’0 0 0

13 INVESTMENT PROPERT I E S

g ro u p2 0 0 5 2 0 0 4

At cost:

F reehold land and buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 2 0 , 9 9 3

L e s s : A c c u mu l ated impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 1 , 9 9 3)

– 1 9 , 0 0 0

14 INVESTMENTS IN SUBSIDIARIES

c o m p a n y2 0 0 5 2 0 0 4

Unquoted shares at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2 , 6 5 0 11 2 , 6 5 0

L e s s : A c c u mu l ated impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 4 5 , 3 97) ( 4 3 , 6 5 3)

67 , 2 5 3 6 8 , 9 97


’0 0 0

14 INVESTMENTS IN SUBSIDIARIES (CONTINUED)

The details of subsidiary companies, all of which are incorp o r ated in Malay s i a , a re as follow s :

paid-up sharecompany principal activities c a p i t a l equity interest held

R M 2005 2 0 0 4

Subsidiaries % %of the Company

Dynamic Degree Sdn. B h d . I nvestment holding 3,000,000 51 5 1

E & O Deve l o p e rs Sdn.Bhd. I nvestment holding 5,500,000 100 1 0 0

E & O Ve n t u res Sdn. B h d . D o rmant 100 51 5 1

E a s t e rn & Oriental Hotel Sdn. B h d . Hotel owner and operat o r,

p ro p e rty development and

p ro p e rty investment 2 9 , 700,000 100 1 0 0

E & O Leisure Sdn. B h d . P ro p e rty inve s t m e n t 2 100 1 0 0

Radiant Kiara Sdn. B h d . P ro p e rty inve s t m e n t 9 2 0 , 0 0 4 100 1 0 0

True Vitality Sdn. B h d . P ro p e rty investment 8 4 , 0 6 2 , 5 0 0 100 1 0 0


’0 0 0

14 INVESTMENTS IN SUBSIDIARIES (CONTINUED)

paid-up sharecompany principal activities c a p i t a l equity interest held

R M 2005 2 0 0 4

Subsidiaries of % %E a s t e rn & OrientalHotel Sdn. Bhd.

E & O Restaurants Sdn.Bhd. I nvestment holding 2 100 1 0 0

E & O Express Sdn.Bhd. Hotel operat o r 500,000 100 1 0 0

E & O Cruises Sdn. B h d . D o rmant 2 100 –

E & O Limousine Services Sdn. B h d . D o rmant 2 100 –

Subsidiaries of E & ORestaurants Sdn. Bhd.

Eminent Pedestal Sdn.Bhd. O p e r ation of re s t a u r a n t 100 70 7 0

Subsidiaries of E & OE x p ress Sdn. Bhd.

Lone Pine Hotel (Penang) Sdn.Bhd. Hotel management 320,000 100 1 0 0


’0 0 0

15 INVESTMENTS IN ASSOCIAT E S

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

In Malay s i a :Quoted share s , at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 4 , 1 07 2 9 3 , 5 0 3 1 4 3 , 2 97 1 4 2 , 6 9 3

Unquoted share s , at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 4 2 2 3 , 4 2 2 – –

U n realised gain arising from sale of land and subsidiarycompanies to an associated company . . . . . . . . . . . . . . . . . . . . . . . ( 4 , 5 5 4) ( 5 , 2 27) – –

S h a re of post acquisition re s e rve s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 , 0 3 3 20,062 – –

323,008 3 11 , 76 0 1 4 3 , 2 97 1 4 2 , 6 9 3

M a r ket value of quoted shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 6 , 6 37 4 1 5 , 0 4 3 141,859 2 3 8 , 2 97

The Gro u p ’s interests in the associates are analysed as follow s :g ro u p

2 0 0 5 2 0 0 4

U n realised gain arising from sale of land and subsidiarycompanies to an associated company . . . . . . . . . . . . . . . . . . . . . . . ( 4 , 5 5 4) ( 5 , 2 27)

S h a re of net tangi ble assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264,628 2 5 4 , 0 5 3

P remium on acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 , 9 3 4 6 2 , 9 3 4

323,008 3 11 , 76 0


’0 0 0

15 INVESTMENTS IN ASSOCIATES (CONTINUED)

The details of associated companies, all of which are incorp o r ated in Malay s i a , a re as follow s :

g ro u p ’s equityname of company principal activities i n t e rest held

2 0 0 5 2 0 0 4

% %

E &O Pro p e rty Development Berhad

( " E & O P ROP") P ro p e rty 43.81 3 8 . 0 3

Te r atak Wa risan (M) Sdn. B h d . I nvestment holding 50.00 5 0 . 0 0

R e n own Heritage Sdn. B h d . P ro p e rty Inve s t m e n t 25.00 2 5 . 0 0

D u ring the financial ye a r, the Group increased its investment in E&OPROP by acquiring additional 1,198,900 shares of RM0.50e a ch for cash consideration of RM604,053.

D u ring the previous financial ye a r, the Group intended to dispose approx i m at e ly 116,236,000 of the E&OPROP shares to raiseworking capital and re p ay borrow i n g s. A c c o r d i n g ly, the Gro u p ’s equity interest of 38.03% in the previous financial year excludedthe 116,236,000 E&OPROP shares disposed/to be disposed. As at the last balance sheet dat e, the Group had disposed of43,000,000 E&OPROP shares for a gain of approx i m at e ly RM10,300,000.

On May , the Group announced its intention to acquire the remaining ordinary shares of RM0.50 each in E&OPRO Pre p resenting 56.13% of the issued and paid-up share capital of E&OPRO P, w h i ch are not alre a dy held by the Group and pers o n sacting in concert with the Gro u p, as disclosed in Note 35 (ii) to the financial stat e m e n t s. A c c o r d i n g ly, the Group's share of pro fit sis based on the equity interest of 43.81% which includes the 116,236,000 E&OPROP shares mentioned above.

The quoted shares in an associated company of RM210,510,577 (2 0 0 4: RM130,107,875) have been pledged as security forb o rrowings as disclosed in Note 25 to the financial stat e m e n t s.

16 OTHER INVESTMENTS

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Quoted shares in Malay s i a , at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 , 0 1 9 2 9 , 8 1 9 1 9 9 –

L e s s :A c c u mu l ated impairment losses . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 1 , 3 2 6) ( 2 1 , 3 2 6) – –

8 , 6 9 3 8 , 493 1 9 9 –


’0 0 0

16 OTHER INVESTMENTS (CONTINUED)

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Quoted shares outside Malay s i a , at cost . . . . . . . . . . . . . . . . . . . . . . . . 5 1 51 – –

Less:Amount written off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3) ( 3) – –

4 8 48 – –

Quoted wa rrants in Malay s i a , at cost 4 , 4 6 8 9 , 4 1 9 4 , 4 6 8 9 , 4 1 9

O t h e rs 3 , 72 6 73 4 3 , 0 0 0 –

Total inve s t m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,935 1 8 , 6 94 7 , 6 67 9 , 4 1 9

At Market Va l u e :Quoted share s :

– in Malay s i a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 , 767 11 , 6 2 8 11 0 –

– outside Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 6 5 3 – –

Wa rrants quoted in Malay s i a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 , 4 6 4 6 3 , 8 4 8 8 , 4 6 4 6 3 , 8 4 8

On M ay , the Company was granted by Alliance Merchant Bank Berhad an unsecured fixed rate term loan facility ofR M 3 0 , 0 0 0 , 0 0 0 . As an integral part of the facility agre e m e n t , the Company was re q u i red to subscribe for a Va ri a ble Rate A s s e tB a cked Subordinated Bonds amounting to RM3,000,000 which shall be redeemed five (5) ye a rs from the date of issue of June .

As at M a r ch , i nvestment in quoted shares in Malaysia with a net book value of RM8,740,000 (2004:RM6,283,000) andm a r ket value of RM10,853,000 (2004: RM8,574,000) have been pledged to va rious financial institutions for credit fa c i l i t i e sgranted to the Group and to the Company, as disclosed in Note 25 to the financial stat e m e n t s.


’0 0 0

17 AMOUNTS DUE FROM SUBSIDIARY COMPA N I E S

c o m p a n y2 0 0 5 2 0 0 4

I n t e rest bearing amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 1 , 8 0 1 3 3 3 , 9 8 5

N o n - i n t e rest bearing amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 4 1 4 3 , 9 5 9

376 , 2 1 5 3 37 , 94 4

L e s s : P rovision for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 1 6 , 3 5 4) ( 1 6 , 3 5 4)

3 5 9 , 8 6 1 3 2 1 , 5 9 0

The amounts due from subsidiary companies are unsecured and re p aya ble on demand. The interest bearing amounts bear intere s tat rates ranging from 0.5% to 5.0% (2004: 0.5% to 7.0%) per annum.

18 I N V E N T O R I E S

g ro u p2 0 0 5 2 0 0 4

At cost:Fo o d , b everages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 9 2 9 9

General supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 8 2 3 1

6 47 5 3 0


’0 0 0

19 R E C E I VA B L E S

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Trade re c e i va bl e s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 27 8 8 0 – –

L e s s : P rovision for doubtful debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 2) ( 1 3) – –

8 9 5 8 67 – –

Amount due from associated company . . . . . . . . . . . . . . . . . . . . . . . . . 8 , 8 8 9 8 , 8 6 9 3 , 8 5 8 3 , 8 5 8

Pe r f o rmance deposit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 , 0 0 0 8 , 0 0 0 8 , 0 0 0 8 , 0 0 0

D e p o s i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 9 3 3 5 3 3 3 3

P re p ay m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 3 27 4 2 9 1 , 1 9 0 2 0 0

Other re c e i va bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 9 6 6 2 , 72 8 1 , 5 2 9 1 , 8 97

2 1 , 4 3 6 2 1 , 2 2 8 1 4 , 6 1 0 1 3 , 9 8 8

The amount due from associated company is unsecure d , i n t e rest free and re p aya ble on demand.

The Group's normal trade credit term is 30 day s. Other credit terms are assessed and approved on a case-by-case basis.

The Group has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors.


’0 0 0

20 DEPOSITS WITH LICENSED BANKS AND FINANCIAL INSTITUTIONS

Deposits with licensed banks and financial institutions of the Group amounting to RM1,000,000 (2004: RM1,000,000) h ave been pledged as security for credit facilities granted to a subsidiary company.

The effective interest rates of deposits during the financial year is 3.0% (2004: 3.2%) per annum.

The average mat u rity of deposits as at the end of the financial year is 30 (2004:30) day s.

21 CASH AND BANK BALANCES

Included in cash and bank balances of the Group are amounts of RM3,110 (2004: RM2,000) held pursuant to Section 7A of theHousing Development (Control and Licensing) A c t , and there f o re re s t ricted from use in other operat i o n s.

22 AMOUNTS DUE TO SUBSIDIARY COMPA N I E S

The amounts due to subsidiary companies re p resent advances from subsidiary companies which are unsecure d , i n t e rest free andre p aya ble on demand.

23 PAYA B L E S

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Trade paya bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 3 4 5 2 , 5 97 – 75

A c c ru a l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 4 9 1 6 , 8 8 0 2 , 2 1 8 1 , 3 0 1

Deposits re c e i ve d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 5 8 0 – –

U n d e r w riting deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 1 5 , 0 0 0 – 1 5 , 0 0 0

A p p l i c ation monies re c e i ved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 2 4 , 9 0 8 – 2 4 , 9 0 8

Amounts due to affil i ated companies. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 , 9 9 8 1 6 , 949 1 2 8 , 2 4 1

Other paya bl e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 273 1 , 976 2 2 1 9 5

1 3 , 3 8 2 6 8 , 8 9 0 2 , 2 5 2 49 , 72 0


’0 0 0

23 PAYABLES (CONTINUED)

The credit terms of trade paya bles ranged from 60 days to 120 day s.

The application monies re c e i ved is in respect of the Renounceable Restricted Offer for Sale ("ROS") of 60,437,000 E&OPRO Pwa rrants to the share h o l d e rs of E&OPROP at an offer price of RM0.25 per share ("Wa rrants Offer"). The Wa rrants Offer wa scompleted on A p ril .The Company had entered into an Underwriting A greement on Ja n u a ry to underwrite theWa rrants Offer.The deposit collected in accordance to the Underwriting A greement was fully refunded on completion ofWa rrants Offer.

A f fil i ated companies re f e rs to subsidiaries of E&OPRO P.

24 PROVISION FOR RETIREMENT BENEFITS

A subsidiary of the Group operates an unfunded, d e fined benefit Retirement Benefit Scheme ("the Scheme") for its eligi bl ee m p l oye e s. Under the Sch e m e, e l i gi ble employees are entitled to re t i rement benefits based on last drawn monthly salary adjustedfor the number of ye a rs of service on attainment of Normal Retirement Age of 55 or Optional Retirement Age of 45.

g ro u p2 0 0 5 2 0 0 4

P resent value of unfunded defined benefit obl i g at i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3 8 9

U n recognised actuarial (loss)/gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3) 1

Net liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 0 9 0

A n a lysed as:– current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 4

– non-curre n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 6 6

8 0 9 0


’0 0 0

24 PROVISION FOR RETIREMENT BENEFITS (CONTINUED)

The amounts recognised in the income statement are as follow s :g ro u p

2 0 0 5 2 0 0 4

C u rrent service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 11

I n t e rest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5

A m o rt i s ation of transition amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2

17 1 8

The entire charge for the year has been included in administrat i ve expenses.

M ovements in the net liability in the current year we re as follow s :

g ro u p2 0 0 5 2 0 0 4

At A p ri l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 0 76

Amount recognised in the income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1 8

C o n t ri butions paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 27) ( 4)

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 0 9 0

g ro u p2 0 0 5 2 0 0 4

P rincipal actuarial assumptions used: % %

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7

Expected rate of average salary increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5


’0 0 0

25 B O R R O W I N G S

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

S h o rt Te rm Borro w i n g s

S e c u re d :

Bank overdrafts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 , 4 0 4 17 , 5 4 5 1 9 , 74 4 1 2 , 2 8 8

R evolving credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 7 , 73 2 – 7 , 73 2

M a r gin financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 , 0 57 – 5 , 0 57

Te rm loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 , 576 3 5 , 5 8 5 5 , 0 0 0 1 6 , 9 5 1

4 0 , 9 8 0 6 5 , 9 1 9 2 4 , 74 4 4 2 , 0 2 8

U n s e c u re d :

R evolving cre d i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 2 5 0 – 1 , 2 5 0 –

4 2 , 2 3 0 6 5 , 9 1 9 2 5 , 9 9 4 4 2 , 0 2 8

Long Te rm Borro w i n g s

S e c u re d :

Te rm loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,424 6 3 , 9 3 4 50,000 2 3 , 8 2 5

81,424 6 3 , 9 3 4 50,000 2 3 , 8 2 5

U n s e c u re d :

Te rm loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 , 0 0 0 – 3 0 , 0 0 0 –

111 , 4 2 4 6 3 , 9 3 4 8 0 , 0 0 0 2 3 , 8 2 5


’0 0 0

25 BORROWINGS (CONTINUED)

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Total Borro w i n g s

Bank ove r d r a f t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 , 4 0 4 17 , 5 4 5 1 9 , 74 4 1 2 , 2 8 8

R evolving cre d i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 2 5 0 7 , 73 2 1 , 2 5 0 7 , 73 2

M a r gin financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 , 0 57 – 5 , 0 57

Te rm loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 8 , 0 0 0 9 9 , 5 1 9 8 5 , 0 0 0 4 0 , 776

1 5 3 , 6 5 4 1 2 9 , 8 5 3 1 0 5 , 9 9 4 6 5 , 8 5 3

M at u rity of borrow i n g s :

Within one ye a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 , 2 3 0 6 5 , 9 1 9 2 5 , 9 9 4 4 2 , 0 2 8

M o re than 1 year and less

than 2 ye a rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 , 2 0 5 2 5 , 479 1 0 , 0 0 0 17 , 575

M o re than 2 ye a rs and less

than 5 ye a rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 , 5 0 0 1 8 , 9 2 4 5 3 , 0 0 0 6 , 2 5 0

5 ye a rs or more. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8 , 7 1 9 1 9 , 5 3 1 17 , 0 0 0 –

1 5 3 , 6 5 4 1 2 9 , 8 5 3 1 0 5 , 9 9 4 6 5 , 8 5 3


’0 0 0

25 BORROWINGS (CONTINUED)

The weighted average effective interest rates at the balance sheet date for borrowings we re as follow s : -

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

% % % %

R evolving cre d i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.51 to 7. 75 5.50 to 8.15 6.51 to 7. 75 5.55 to 8.15

Bank ove r d r a f t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.25 to 7. 5 8 7.65 to 8.15 7. 2 5 7. 6 5

Te rm loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . 75 to 8.00 7.04 to 7. 77 6.15 to 7. 2 5 7.04 to 7. 77

The borrowings are secured against the Group's pro p e rt i e s , deposits with licensed banks and quoted investments as disclosed inNote , , , and to the financial statements and corp o r ate guarantees issued by the Company.

26 SHARE CAPITA L

group / companyNumber of ordinary

stock units of RM1 each amount2005 2004 2005 2004

’ 0 0 0 ’ 0 0 0

Au t h o ri s e d :At A p ril / M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 5 0 0 , 0 0 0 500,000 5 0 0 , 0 0 0

Issued and fully paid:

At A p ril / M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 2 , 472 2 3 2 , 472 2 3 2 , 472 2 3 2 , 472


’0 0 0

27 T R E A S U RY STOCK UNITS

This amount re l ates to the acquisition cost of tre a s u ry stock units net of the proceeds re c e i ved on their subsequent sale ori s s u a n c e.

The stock h o l d e rs of the Company, by a special resolution passed in a general meeting held on September a p p roved theC o m p a ny ’s plan to re p u r chase its own ordinary stock units. The dire c t o rs of the Company are committed to enhancing the va l u eof the Company for its stock h o l d e rs and believe that the re p u r chase plan can be applied in the best interests of the Company andits stock h o l d e rs.

D u ring the financial ye a r, the Company re p u r chased 13,014,600 of its issued ordinary stock units from the open market at anaverage price of RM0.77 per stock unit.The total consideration paid for the re p u r chase including transaction costs wa sR M 9 , 9 6 7 , 8 2 9 . The re p u r chase transactions we re financed by intern a l ly generated funds and borrow i n g s.The stock unitsre p u r chased are being held as tre a s u ry stock units in accordance with Section 67A of the Companies A c t , .

Of the total 232,471,492 (2004: 232,471,492) issued and fully paid ordinary stock units as at M a r ch , 13,014,600 ( 2 0 0 4 : nil) are held as tre a s u ry stock units by the Company. As at M a r ch , the number of outstanding ordinary stock unitsin issue and fully paid is there f o re 219,456,892 ordinary stock units of RM1 each .

28 R E S E RV E S

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

D i s t ri bu t a bl e :Retained pro fit s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 , 0 5 3 2 2 , 73 0 1 6 , 0 2 8 1 5 , 1 3 6

N o n - d i s t ri bu t a bl e :S h a re pre m i u m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 8 , 0 0 4 1 2 8 , 0 0 4 1 2 8 , 0 0 4 1 2 8 , 0 0 4

R eva l u ation re s e rve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 , 6 1 0 8 , 6 1 0 – –

1 3 6 , 6 1 4 1 3 6 , 6 1 4 1 2 8 , 0 0 4 1 2 8 , 0 0 4

1 6 5 , 6 67 1 5 9 , 3 4 4 1 4 4 , 0 3 2 1 4 3 , 1 4 0


’0 0 0

28 R E S E RVES (CONTINUED)

The reva l u ation re s e rve of the Group arose as a result of the reva l u ation of lands and buildings of a subsidiary company, net ofd e f e rred taxation effect.

The Company has sufficient tax credit under Section108 of the Income Tax Act and the balance in the tax-exempt incomeaccount to frank the payment of dividends out of its entire retained pro fits as at M a r ch .

29 MINORITY INTERESTS

The minority interests re flect a net debit balance due to losses borne by a minority share h o l d e r, w h i ch has agreed to take up itss h a re of liabilities arising from the losses incurred by a subsidiary company.

30 DEFERRED TAX LIABILITIES

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

At A p ri l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 6 94 3 – –

Disposal ofs u b s i d i a ry companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 8 0 8) – –

Tr a n s f e rred from reva l u at i o nre s e rve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 578 – –

Recognised in the incomes t atement (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 1 0 3 – –

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 47 8 1 6 – –


’0 0 0

30 DEFERRED TAX LIABILITIES (CONTINUED)

The components and movement of deferred tax assets and liabilities of the Group during the financial year are as follow s :

unutilised property,capital plant and

allowances equipment others total

DEFERRED TAX (ASSETS)/LIABILITIESAt A p ril . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 3 8 9) 4 , 3 6 4 ( 3 2) 94 3

Disposal of subsidiaryc o m p a n i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – ( 8 0 8) – ( 8 0 8)

Recognised in theincome statement . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 5 1) 3 4 3 11 1 0 3

Tr a n s f e rred fro mreva l u ation re s e rve . . . . . . . . . . . . . . . . . . . . . . . . . . – 578 – 578

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 6 4 0) 4 , 477 ( 2 1) 8 1 6

Recognised in theincome statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 – – 3 1

At M a r ch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 3 , 6 0 9) 4 , 477 ( 2 1) 8 47


’0 0 0

30 DEFERRED TAX LIABILITIES (CONTINUED)

D e f e rred tax assets have not been recognised in respect of the following items:

g ro u p c o m p a n y2 0 0 5 2 0 0 4 2 0 0 5 2 0 0 4

Unutilised business losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 , 574 6 1 , 4 0 9 6 8 4 6 8 4

Unabsorbed capital allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 , 4 2 1 1 0 , 8 17 4 9 5 473

Unabsorbed re i nvestment allowa n c e s . . . . . . . . . . . . . . . . . . . . . . . . . . 47 , 75 5 47 , 75 5 – –

P rov i s i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 , 6 5 2 1 6 , 70 2 1 6 , 3 5 4 1 6 , 3 5 4

O t h e rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477 2 0 1 – –

1 3 9 , 879 1 3 6 , 8 8 4 17 , 5 3 3 17 , 5 11

The unutilised business losses, unabsorbed capital allowa n c e s , unabsorbed re i nvestment allowa n c e s , p rovisions and othert e m p o r a ry differences are ava i l a ble indefin i t e ly for offset against future taxable pro fits of the Company and of the re s p e c t i ves u b s i d i a ry companies.

31 O P E R ATING LEASE PAYA B L E S

The future minimum lease paya bles of the Group under non-cancelable operating leases are summarised as follow s :

g ro u p2 0 0 5 2 0 0 4

1 year after balance sheet date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 8 6 5 8

M o re than 1 year but not later than five ye a rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 8 1 9 2 , 477


’0 0 0

32 CONTINGENT LIABILITIES

c o m p a n y2 0 0 5 2 0 0 4

Guarantees gi ven to financial institutions for credit facilities granted to subsidiary companies:– Secured *. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 , 2 1 4 49 , 6 3 9

– Unsecured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 5 6 0

* The secured portion re l ates to term loans secured by legal charges over the Group's pro p e rt y, plant and equipment,i nvestment pro p e rties and pledge of fixed deposits as disclosed in the re s p e c t i ve notes to the financial stat e m e n t s.

33 SIGNIFICANT RELATED PA RTY TRANSACTIONS

g ro u p2 0 0 5 2 0 0 4

E x p e n s e s :Amount paya ble for construction contract performed by WCW Te ch n o l o gies Sdn.Bhd. . . . . . . . . . . . – 1 5 , 2 9 2

P rofessional fees paya ble to GDP A r chitect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 75

The dire c t o rs are of the opinion that all the transactions in the previous year have been entered into in the normal course ofbusiness and have been established on terms and conditions that are not mat e ri a l ly different from those obtainable in transactionswith unre l ated part i e s.

The affil i ated companies and their re l ationships with the Group are as follow s :

A ffiliated companies R e l a t i o n s

WCW Te ch n o l o gies Sdn.Bhd. S u b s i d i a ry company of the associated company, E & O P RO P

GDP A r chitect A company in which a director of the Company is an exe c u t i ve offic e r


’0 0 0

34 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

COMPLETED EVENT

On A p ril , the Group entered in to a Sale and Purchase A greement to dispose of the investment pro p e rties at a total c o n s i d e r ation of RM19,000,000.The transaction was completed on September .

EVENTS PENDING COMPLETION

( i ) On J u ly , the Company proposed to undert a ke a special issue of an aggre g ate of 33,709,000 new ordinary stock units of RM1 each to identified Bumiputra inve s t o rs ("Special Issue Shares") to comply with the 30% Bumiputra equity re q u i rement imposed by the Securities Commission and the Fo reign Investment Committee by August , w h i ch was subsequently extended to December .

The issue price of the Special Issue Shares will be determined at a later dat e, w h i ch will depend on the performance and condition of the stock market of Bursa Malaysia Securities Berhad prior to the re s p e c t i ve pri c e - fixing dates and the performance of the stock units of the Company.

The Securities Commission had vide a letter dated January , approved a further extension of time to December

for the Company to comply with the condition.

( i i ) On August , the Company porposed to purchase up to a maximum of ten per centum (10%) of the issued and paid-up share capital of the Company (“Proposed Share Buyback ” ) , subject to the Companies A c t , , Listing R e q u i rements of the Bursa Malaysia Securities Berhad, a ny prevailing law s , ru l e s , re g u l ation and guidelines issued by re l evant authorities at the time of purch a s e.

As at M a r ch , the Company held as tre a s u ry stock units a total of 13,014,600 of its 232,471,492 issued ordinary s t o ck unit. S u ch tre a s u ry stocks are held at a carrying amount of RM9,967,829.


’0 0 0

35 SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DAT E

i . On A p ril , the Group entered into a conditional Share Sale A greement with E&OPROP for the proposed disposal of 6,000,000 ordinary shares of RM1.00 each re p resenting the entire ordinary share capital of True Vitality Sdn. B h d . to E & O P ROP for a cash consideration of RM6,800,000. The transaction was completed on A p ril and the Group i n c u rred a loss of approx i m at e ly RM80,000.

i i . On M ay , A m M e r chant Bank Berhad (“AmMerchant Bank”) on behalf of the Company announced that the Company s e rved a Notice of Conditional Vo l u n t a ry Offer to the Board of Dire c t o rs of E&OPROP to acquire the follow i n g :

a . 638,291,758 ordinary shares of RM0.50 each in E&OPROP re p resenting 56.13% of the issued and paid-up capital of E&OPROP as at M ay , w h i ch are not alre a dy held by the Company and persons acting in concert with the C o m p a ny, and such number of new E&OPROP shares that may be issued pursuant to the exe rsice of E&OPROP Wa rr a n t s ; a n d

b. all the remaining E&OPROP Wa rrants not alre a dy owned by the Company and persons acting in concert with the Company.

B e t ween M ay to J u ly , EOB acquired an additional 13,988,700 E&OPROP shares which resulted in shares not held by EOB and person acting in concert with EOB to 624,303,058 shares in E&OPRO P.

The offer extended in respect of the Offer Shares shall be re f e rred to as the “ S h a res Offer”, and the offer extended in respect of the Offer Wa rrants shall be re f f e red to as the “ Wa rrants Offer”. The Shares Offer and Wa rrants Offer shall collective ly be re f e rred to as the “ O f f e r ” .

The Shares Offer is conditional upon valid acceptance being re c e i ve d , in respect of the minimum number of Offer Shares w h i ch would result in EOB and all persons acting in concert with EOB, holding in aggre g at e, together with such E&OPROP s h a res that are alre a dy acquire d , held or entitled to be acquired or held by EOB and persons acting in concert with EOB,m o re than 50% of the voting shares of E&OPRO P.

T h e Wa rrants Offer is conditional upon the Shares Offer becoming unconditional as to acceptances.

The Offer is subject to approvals being obtained from the following prior to the posting of the Offer Document:


’0 0 0

35 SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE (CONTINUED)

a . Equity Compliance Unit of the Securities Commission ("SC") pursuant to the Fo reign Investment Committee's Guidelines For The Acquisition Of Intere s t s , M e r g e rs And Ta ke - O ve rs By Local And Fo reign Intere s t s , for the Offer. SC has approved the Offer vide its letter dated June , subject to additional equity conditions which may be imposed;

b. S t o ck h o l d e rs of EOB for the Offer, w h i ch was obtained on J u ly at the EOB Extraordinary General Meeting; a n d

c. SC pursuant to the Policies And Guidelines On Issue/Offer Of Securi t i e s , if re q u i red and for the Offer Document.

36 FINANCIAL INSTRUMENTS

a . Financial Risk Management Objectives and Policies

The Gro u p ’s financial risk management policy seeks to ensure that adequate financial resources are ava i l a ble for thed evelopment of the Gro u p ’s businesses whilst managing its interest rat e, f o reign exch a n g e, liquidity and credit ri s k s.The Group operates within clearly defined guidelines that are approved by the Board and the Gro u p ’s policy is not to engage in speculat i ve transactions.

b . I n t e rest Rate Risk

The Gro u p ’s pri m a ry interest rate risk re l ates to intere s t - b e a ring debt as the Group had no substantial long term intere s t -b e a ring assets as at M a r ch .The investments in financial assets are mainly short term in nat u re and have been mostlyplaced in fixed deposits.

The Group rev i ews its debt port f o l i o, taking into account the investment holding period and nat u re of its assets.This strategy a l l ows it to capitalise on cheaper funding in a low interest rate env i ronment and ach i eve a certain level of protection against r ate hike s.

The inform ation on mat u rity dates and effective interest rates of financial assets and liabilities are disclosed in their re s p e c t i ve notes.


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36 FINANCIAL INSTRUMENTS (CONTINUED)

c . F o reign Exchange Risk

The Group is not signific a n t ly exposed to foreign curre n cy risk as majority of the Group's transactions, assets and liabilities a re denominated in Ringgit Malay s i a .

The Group does not engage in any hedging transactions.

d . Liquidity Risk

The Group manages its debt mat u rity pro fil e, o p e r ating cash flows and the availability of funding so as to ensure thatre fin a n c i n g, re p ayment and funding needs are met. As part of its overall liquidity management, the Group maintains suffic i e n tl evels of cash or cash conve rt i ble investments to meet its working capital re q u i re m e n t s. In addition, the Group stri ves tomaintain ava i l a ble banking facilities at a re a s o n a ble level to its overall debt position. As far as possibl e, the Group raisescommitted funding from both capital markets and financial institutions and balances its portfolio with some short term fundingso as to ach i eve overall cost effective n e s s.

e . C redit Risk

C redit ri s k s , or the risk of counterp a rties defa u l t i n g, a re controlled by the application of credit approva l s , limits and m o n i t o ring pro c e d u re s. C redit risks are minimised and monitored by limiting the Gro u p ’s associations to business part n e rs with high cre d i t wo rt h i n e s s. Trade re c e i va bles are monitored on an ongoing basis via Group management re p o rting pro c e d u re s.

The Group does not have any significant exposure to any individual customer or counterp a rty nor does it have any major c o n c e n t r ation of credit risk re l ated to any financial instru m e n t s.

f . Fair Va l u e s

The carrying value of the Group's borrowings is considered to be a re a s o n a ble estimate of the fair values as the borrowings will be re p riced immediat e ly in the event of any changes to the market interest rat e s.

The carrying amount of financial assets and liabilities approx i m ate their fair va l u e. For unquoted inve s t m e n t s , it is not practical to estimate the fair value of the unquoted shares because of the lack of quoted market prices and the inability to e s t i m ate fair value without incurring excessive costs. H oweve r, the Group and the Company believe that the carrying amount re p resents the re c ove r a ble va l u e s.


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37 SEGMENT INFORMAT I O N

Business Segments

The Group operates mainly in Malaysia and is organised into the following major business segments:

i . P ro p e rty inve s t m e n t

i i . Hotels operat i o n s

i i i . I nvestment holding

The dire c t o rs are of the opinion that all inter-segment transactions have been entered into in the normal course of business andh ave been established on terms and conditions that are not mat e ri a l ly different from those obtainable in transactions withu n re l ated part i e s.


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37 SEGMENT INFORMATION (CONTINUED)

Business Segments (continued)

p ro p e rty hotel i n v e s t m e n t2 0 0 5 investment operations holding t o t a l elimination c o n s o l i d a t e d

R E V E N U E

E x t e rnal sales . . . . . . . . . . . . 546 2 0 , 575 9 21,130 – 2 1 , 1 3 0

I n t e r-segment sales . . . . . . . – 288 6,048 6,336 ( 6 , 3 3 6) –

Total revenue . . . . . . . . . . . . 546 20,863 6 , 0 57 27,466 ( 6 , 3 3 6) 2 1 , 1 3 0

R E S U LT

Segment results . . . . . . . . . . 9 2 0 ( 371) 9 , 177 9 , 726 ( 3 , 1 3 1) 6 , 5 9 5

Finance costs . . . . . . . . . . . . ( 1 0 , 2 9 6)

S h a re of results of a s s o c i at e s . . . . . . . . . . . . . – – 2 0 , 472 2 0 , 472 – 2 0 , 472

Ta x ation . . . . . . . . . . . . . . . . ( 2 , 5 0 9)

P ro fit after taxation . . . . . . . 1 4 , 2 6 2

M i n o rity interests . . . . . . . . 1 , 079

Net pro fit for the year . . . . . 1 5 , 3 4 1


’0 0 0



p ro p e rty hotel i n v e s t m e n t2 0 0 5 investment operations holding t o t a l elimination c o n s o l i d a t e d

A S S E T S

Segment assets . . . . . . . . . . . . . . . . 1 3 , 792 183,218 23,128 220,138 – 2 2 0 , 1 3 8

I nvestments in associates . . . . . . . . – – 323,008 323,008 – 3 2 3 , 0 0 8

C o n s o l i d ated total assets . . . . . . . . 5 4 3 , 1 4 6

L I A B I L I T I E S

Segment liabilities . . . . . . . . . . . . . 9 5 1 1 4 , 8 8 6 2 2 , 0 2 9 37 , 8 6 6 – 37 , 8 6 6

U n a l l o c ated corp o r ate l i a b i l i t i e s . . . . . . . . . . . . . . . . . . . 1 3 0 , 1 5 6

C o n s o l i d ated total liabilities . . . . . . . . . . . . . . 1 6 8 , 0 2 2

OTHER INFORMAT I O N

D e p re c i ation and amort i s ation . . . . . . . . . . . . – 3,523 30 3,553 – 3 , 5 5 3


’0 0 0



p ro p e rt y p ro p e rty hotel i n v e s t m e n t2 0 0 4 development investment operations holding t o t a l elimination c o n s o l i d a t e d

R E V E N U E

E x t e rnal sales . . . . . . . . . . . . . . . 9 8 , 0 4 0 3,644 16,196 2 117,882 – 117 , 8 8 2

Inter-segment sales . . . . . . . . . . – – 288 83,590 8 3 , 878 ( 8 3 , 878) –

Total reve n u e . . . . . . . . . . . . . . . 98,040 3,644 16,484 83,592 2 0 1 , 760 ( 8 3 , 878) 117 , 8 8 2

R E S U LT

Segment results . . . . . . . . . . . . . 13,660 4 , 721 ( 4 , 2 9 8) 41,583 55,666 ( 3 1 , 6 5 6) 2 4 , 0 1 0

Gain/(loss) on disposal of discontinued operat i o n s . . . . 1 0 , 6 6 6 ( 1 , 9 6 1) – – 8 , 70 5 – 8 , 70 5

Finance costs . . . . . . . . . . . . . . . ( 2 0 , 670)

S h a re of results of associat e s . . . – – – 5,662 5,662 5 , 6 6 2

Ta x ation . . . . . . . . . . . . . . . . . . . ( 2 , 8 1 5)P ro fit after taxation . . . . . . . . . . 1 4 , 8 9 2

M i n o rity interests . . . . . . . . . . . 5 , 6 6 1

Net pro fit for the ye a r . . . . . . . . 2 0 , 5 5 3


’0 0 0



p ro p e rt y p ro p e rty hotel i n v e s t m e n t2 0 0 4 development investment operations holding t o t a l elimination c o n s o l i d a t e d

A S S E T S

Segment assets . . . . . . . . . . . . . . 2 2 8 19,051 184,240 6 2 , 9 07 266,426 2 6 6 , 4 2 6

I nvestments in associates . . . . . . – – – 3 11 , 760 3 11 , 760 3 11 , 76 0

U n a l l o c ated corp o r ate assets . . 2 , 73 0

C o n s o l i d ated total assets . . . . . . 5 8 0 , 9 1 6

L I A B I L I T I E S

Segment liabilities . . . . . . . . . . . 2 5 0 5,824 1 6 , 731 6 3 , 720 86,525 8 6 , 5 2 5

U n a l l o c ated corp o r at eliabilities . . . . . . . . . . . . . . . . 11 3 , 1 2 4

C o n s o l i d ated total liabilities . . . 1 9 9 , 6 49

OTHER INFORMAT I O N

D e p re c i ation and a m o rt i s ation . . . . . . . . . . . . . 276 25 4,239 44 4,584 4 , 5 8 4

I m p a i rment loss . . . . . . . . . . . . . – 2,150 – – 2,150 2 , 1 5 0

N o t e : No geographical segment inform ation is presented as the Group operates pri n c i p a l ly within Malay s i a .


’0 0 0

G ro u p ’s Pro p e rt i e sAs at 3 1 March 2 0 0 5

lo c a t i o n description/ lot number/tenure land are a n e texisting use ( a c re s ) book value

( rm ’ 0 0 0 )

1 0 f a rquhar stre e t Land held under – F re e h o l d . ,

1 0 2 0 0 p e n a n g Lots , , – L e a s e h o l d and Building e x p i ring in .

for hotel use – L e a s e h o l de x p i ring in .

* The last reva l u ation date was in

1 0 f a rquhar stre e t Land held for – F re e h o l d . ,

1 0 2 0 0 p e n a n g d eve l o p m e n t

1 0 f a rquhar stre e t Land held for – F reehold . ,

1 0 2 0 0 p e n a n g d eve l o p m e n t

section 2 Land with – F reehold . ,

town of batu ferr i n g g i building f o r – F re e h o l d .

n o rth east district hotel usep e n a n g

section 2 Land with .

town of batu ferr i n g g i building for Geran No.

n o rth east district, hotel use L e a s e h o l d - e x p i ring inp e n a n g

O R D I N A RY SHARE CAPITA L

Authorised capital : R M 5 0 0 , 0 0 0 , 0 0 0

Issued and paid up capital : R M2 3 2 , 4 7 1 , 4 9 2

Class of shares : Ordinary stock units of R M 1 . 0 0 each

Voting rightsOn show of hands : 1 voteOn a poll : 1 vote for each ordinary stock unit held

Number of stockholders : 3 , 8 1 2Number of treasury stocks held : 1 3 , 0 1 4 , 6 0 0

distribution of stockholders

size of stockholdings no. of stockholders % no. of stock units %

Less than 1 0 0 2 11 5 . 5 4 5,345 0.01

1 0 0 – 1 , 0 0 0 5 94 1 5 . 5 8 3 2 0 , 870 0.14 1 , 0 0 1 – 1 0 , 0 0 0 2 , 5 4 0 6 6 . 6 3 9 , 0 4 2 , 171 3.89

1 0 , 001 – 1 0 0 , 0 0 0 3 8 1 9 . 9 9 9,599,961 4.13 1 0 0 , 001 to less than 5% 8 2 2 . 1 5 1 3 0 , 8 5 2 , 372 56.28 5% and above of issued share capital 4 0 . 11 8 2 , 6 5 0 , 773 35.55

t o t a l 3 , 8 1 2 1 0 0 . 0 0 2 3 2 , 47 1 , 49 2 1 0 0 . 0 0

3 0 l a rgest stockholders

n a m e no. of stock units %

1 . RHB Nominees (Asing) Sdn Bhd (GK Goh SPL for M o n t g o m e ry Intern ational Investments Limited (3K/33948) . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 , 8 8 1 , 1 7 3 1 2 . 8 5

2 . A l l i a n c e G roup Nominees (Te m p atan) Sdn Bhd (Alliance Merchant Nominees

( Te m p atan) Sdn Bhd for Te rra Realty Sdn Bhd (Custodial)) . . . . . . . . . . . . . . . . . . . . . . . 2 0 , 7 5 5 , 0 0 0 8 . 9 3

3 . M u l t i - P u rpose Holdings Berhad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 , 0 0 0 , 0 0 0 8 . 1 7

4 . E a s t e rn & Oriental Berhad (Share Buy-Back A c c o u n t ) . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 , 0 1 4 , 6 0 0 5 . 6 0

5 . Pausini Consulting Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , 5 0 0 , 0 0 0 4 . 9 5

statistics of stockholdingsAs at 2 9 Ju ly 2 0 0 5

6 . A .A .A n t h o ny Nominees (Asing) Sdn Bhd (Pledged securities account for Citibase Limited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 , 4 5 2 , 8 6 4 3 . 6 4

7 . Lembaga Ta bung A n g k atan Te n t e r a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 , 6 0 0 , 0 0 0 3 . 2 7

8 . RHB Merchant Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Devanna Limited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 , 2 2 0 , 0 0 0 3 . 1 1

9 . Amanah Raya Nominees (Te m p atan) Sdn Bhd (Skim Amanah Saham Bumiputera) . . . . . . . . 7 , 0 0 0 , 0 0 0 3 . 0 1

1 0 . M u l t i - P u rpose Insurans Bhd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 , 3 8 6 , 5 0 0 2 . 7 5

1 1 . C i t i c o rp Nominees (Asing) Sdn Bhd (Goldman Sachs Intern at i o n a l ) . . . . . . . . . . . . . . . . . 6 , 3 2 6 , 4 0 0 2 . 7 2

1 2 . Bumiputra-Commerce Nominees (Te m p atan) Sdn Bhd(Pledged securities account for A .A .A n t h o ny Securities Sdn Bhd (2555 PENG)) . . . . . . . . 5 , 8 4 9 , 0 0 0 2 . 5 2

1 3 . Minister of Finance (Akaun Jaminan Pinjaman Kerajaan Pe rs e k u t u a n ) . . . . . . . . . . . . . . . . 5 , 6 0 0 , 0 0 0 2 . 4 1

1 4 . A .A .A n t h o ny Nominees (Te m p atan) Sdn Bhd(MCC Credit Sdn Bhd for Domestic Star Sdn Bhd) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 , 4 7 9 , 4 5 0 2 . 3 6

1 5 . Magnum 4D (Selangor) Sdn Bhd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 8 5 0 , 0 0 0 2 . 0 9

1 6 . A l l i a n c e G roup Nominees (Te m p atan) Sdn Bhd (Alliance Merchant Bank Berhad) . . . . . . . . 4 , 6 9 9 , 5 8 6 2 . 0 2

1 7 . S o u t h e rn Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Domestic Star Sdn Bhd) . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 6 0 0 , 0 0 0 1 . 9 8

1 8 . A l l i a n c e G roup Nominees (Te m p atan) Sdn Bhd(Alliance Merchant Nominees (Te m p atan) Sdn Bhd for Te rra Realty Sdn Bhd) . . . . . . . . . . 4 , 3 2 5 , 0 0 0 1 . 8 6

1 9 . A .A .A n t h o ny Nominees (Te m p atan) Sdn Bhd(Pledged securities account for MCC Credit Sdn Bhd) . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 2 8 9 , 5 0 0 1 . 8 5

2 0 . MWE Holdings Berhad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 1 8 9 , 4 0 0 1 . 3 7

2 1 . A .A .A n t h o ny Nominees (Te m p atan) Sdn Bhd(MCC Credit Sdn Bhd for Soon Seng Kai) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 , 5 3 1 , 6 0 0 1 . 0 9

2 2 . Loo Khee Kwong @ Danny Loo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 , 5 2 5 , 6 0 0 1 . 0 9

2 3 . M ayban Securities Nominees (Te m p atan) Sdn Bhd(Pledged securities account for Raja Zainal Abidin bin Raja Hussin (REM 657)) . . . . . . . . . 2 , 4 3 6 , 7 0 0 1 . 0 5

2 4 . M ayban Nominees (Te m p atan) Sdn Bhd(Pledged securities account for A .A .A n t h o ny Securities Sdn Bhd (507013226474)) . . . . . . 1 , 8 6 0 , 0 0 0 0 . 8 0

2 5 . Magnum 4D (Johor) Sdn Bhd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 7 0 4 , 0 0 0 0 . 7 3

2 6 . A .A .A n t h o ny Nominees (Te m p atan) Sdn Bhd(Pledged securities account for MCC Credit Sdn Bhd (2)) . . . . . . . . . . . . . . . . . . . . . . . 1 , 6 3 3 , 3 0 0 0 . 7 0

2 7 . A l i ya Akbar Khawaja Mohd A k b a r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 1 1 2 , 9 0 0 0 . 4 8

2 8 . Pe rmodalan Nasional Berhad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 0 3 9 , 5 0 0 0 . 4 5

2 9 . HSBC Nominees (Asing) Sdn Bhd (BNY Brussels for Alpine Intern ational Real Estate Equity Fund) . . . . . . . . . . . . . . . . . . . 1 , 0 0 0 , 0 0 0 0 . 4 3

3 0 . Magnum 4D (East Malaysia) Sdn Bhd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4 0 , 0 0 0 0 . 3 6

t o t a l 1 9 6 , 7 0 2 , 0 7 3 8 4 . 6 4

WARRANTS 2001/2011

I s s u e d : 6 1 , 1 7 6 , 6 2 3

O u t s t a n d i n g : 6 1 , 1 7 6 , 2 9 8

Number of wa rrant holders : 1 , 6 5 5

distribution of warr a n t h o l d e r s

size of holdings no. of warr a n t h o l d e r s % no. of warr a n t s %

Less than 1 0 0 5 0 . 3 0 2 57 0 . 0 1

1 0 0 – 1 , 0 0 0 1 4 1 8 . 5 2 11 3 , 1 6 3 0 . 1 8

1 , 0 0 1 – 1 0 , 0 0 0 9 87 5 9 . 6 4 5 , 874 , 79 2 9 . 6 0

1 0 , 001 – 1 0 0 , 0 0 0 47 1 2 8 . 4 6 1 5 , 3 57 , 3 0 0 2 5 . 1 0

1 0 0 , 001 to less than 5% 47 2 . 8 4 1 4 , 178 , 70 0 2 3 . 1 8

5% and above of issued share capital 4 0 . 2 4 2 5 , 6 5 2 , 0 8 6 4 1 . 9 3

t o t a l 1 , 6 5 5 1 0 0 . 0 0 6 1 , 176 , 2 9 8 1 0 0 . 0 0

3 0 l a rgest warr a n t h o l d e r s

n a m e no. of warr a n t s %

1 . Timeless Image Sdn Bhd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 , 0 0 0 , 0 0 0 1 6 . 3 5

2 . A l l i a n c e G roup Nominees (Te m p atan) Sdn Bhd (Alliance Merchant Nominees ( Te m p atan) Sdn Bhd for Te rra Realty Sdn Bhd (Custodial)) . . . . . . . . . . . . . . . . . . . . . . 6 , 6 0 0 , 0 0 0 1 0 . 7 9

3 . A l l i a n c e G roup Nominees (Te m p atan) Sdn Bhd(Alliance Merchant Nominees (Te m p atan) Sdn Bhd for Tham Ka Hon (Custodial)) . . . . . . 5 , 6 9 9 , 5 8 6 9 . 3 2

4 . MWE Holdings Berhad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 , 3 5 2 , 5 0 0 5 . 4 8

5 . RHB Merchant Nominees (Te m p atan) Sdn Bhd(Pledged securities account for Devanna Limited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 9 0 0 , 0 0 0 3 . 1 1

6 . John Jong Khiam Yo n g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 2 9 5 , 4 0 0 2 . 1 2

7 . Soon Seng Kai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 0 2 8 , 0 0 0 1 . 6 8

8 . C h ristina Loh Yo ke Lin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3 0 , 0 0 0 1 . 5 2

9 . Wong Nyook Yi n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3 7 , 6 0 0 1 . 3 7

1 0 . C i t i c o rp Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Kasi a/l K. L Palaniappan (471511)) . . . . . . . . . . . . . . . 5 0 5 , 0 0 0 0 . 8 3

1 1 . Douglas Cheng Heng Lee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0 0 , 0 0 0 0 . 8 2

1 2 . HLB Nominees (Te m p atan) Sdn Bhd(Pledged securities account for Janaki @ Mallika a/p Pa l a n i a p p a n ) . . . . . . . . . . . . . . . . 4 0 9 , 0 0 0 0 . 6 7

1 3 . Lim Thin Pe n g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 8 0 , 0 0 0 0 . 6 2

1 4 . M ayban Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Ch’ng Gim Chew (07246AP3210)) . . . . . . . . . . . . . . . . 3 2 5 , 0 0 0 0 . 5 3

1 5 . Tan Eng Huat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 3 , 5 0 0 0 . 5 0

1 6 . Raja Zainal Abidin bin Raja Hussin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 0 , 6 0 0 0 . 4 8

1 7 . A l l i a n c e G roup Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Chan Lin Oy (100703) . . . . . . . . . . . . . . . . . . . . . . . . 2 5 0 , 0 0 0 0 . 4 1

1 8 . Ho Yoon Choon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 0 , 0 0 0 0 . 3 6

1 9 . M ayban Securities Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Raja Zainal Abidin bin Raja Hussin (REM 657)) . . . . . . . . 2 0 0 , 6 0 0 0 . 3 3

2 0 . Kuala Lumpur City Nominees (Te m p atan) Sdn Bhd(Pledged securities account for Cheong Chen Yu e ) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 0 , 0 0 0 0 . 3 2

2 1 . Ling Hee Leong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 0 , 0 0 0 0 . 3 2

2 2 . Ng Sui Ping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 0 , 0 0 0 0 . 3 2

2 3 . RHB Capital Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Lim Choon T i ew (CEB)) . . . . . . . . . . . . . . . . . . . . . . . 2 0 0 , 0 0 0 0 . 3 2

2 4 . TASec Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Lee Oi Yo ke ) . . . . . 2 0 0 , 0 0 0 0 . 3 2

2 5 . L i ew Lee Yi n g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 0 , 0 0 0 0 . 3 1

2 6 . Lim King Huak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 5 , 4 0 0 0 . 3 0

2 7 . Lim Kiat Lee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 5 , 0 0 0 0 . 3 0

2 8 . Ng Kweng T h e a m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 4 , 0 0 0 0 . 3 0

2 9 . A .A . Assets Nominees (Te m p atan) Sdn Bhd (Pledged securities account for Low Khian Beng) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 8 , 9 0 0 0 . 2 9

3 0 . Lim Say Te o n g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 2 , 2 0 0 0 . 2 8

t o t a l 3 7 , 1 2 2 , 2 8 6 60.67

DIRECTORS’ INTEREST BASED ON THE REGISTER OF DIRECTORS’ STOCKHOLDINGS AS AT 29 JULY 2005

name of dire c t o r d i rect intere s t % i n d i rect intere s t %

o rd i n a ry stock units

no. of stock units

D at o ’ Tham Ka Hon 4 , 6 9 9 , 5 8 6 2 . 1 4 2 5 , 0 8 0 , 0 0 0( 1 ) 11 . 4 3

2 9 , 5 3 4 , 0 67( 2 ) 1 3 . 4 6

w a rrants 2001/2 0 1 1

no. of warr a n t s

D at o ’ Tham Ka Hon 6 , 6 9 9 , 5 8 6 1 0 . 9 5 6 , 6 0 0 , 0 0 0( 1 ) 1 0 . 79

name of dire c t o r options granted e x e rc i s e d balance held

employee share option scheme

no. of stock units

1 . D at o ’ Tham Ka Hon 4 , 5 0 0 , 0 0 0 – 4 , 5 0 0 , 0 0 0

2 . A l oysius Choong Kok Sin 4 , 5 0 0 , 0 0 0 – 4 , 5 0 0 , 0 0 0

(1) Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through his interest in Te rra Realty Sdn Bhd.(2) Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through his indirect interest in Multi-Purpose Holdings Berhad.

S U B S TANTIAL STOCKHOLDERS BASED ON THE REGISTER OF S U B S TANTIAL STOCKHOLDERS AS AT 29 JULY 2005

no. of stock units

name of stockholder d i rect intere s t % i n d i rect intere s t %

1 . Montgomery International Investments Limited 2 9 , 8 8 1 , 173 1 3 . 6 2 – –

2 . Terra Realty Sdn Bhd (“TRSB”) 25,080,000 11.43 – –

3 . Multi-Purpose Holdings Berhad (“MPHB”) 19,000,000 8.66 10,534,067(1) 4.80

4 . Dato’Tham Ka Hon 4,699,586 2.14 54,614,067(2) 24.89

5 . Datin Chua Cheng Boon – – 25,080,000(3) 11.43

6 . Dynamic Icon Sdn Bhd (“DISB”) – – 29,534,067(4) 13.46

7 . Lim Tiong Chin – – 29,534,067(5) 13.46

8 . Quantum Aspects Sdn Bhd (“QASB”) – – 29,534,067(6) 13.46

9 . Datuk Surin Upatkoon – – 29,534,067(7) 13.46

1 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through its interests in Magnum Corporation Berhad which is an associate company of MPHB and in A.A.Anthony Securities Sdn Bhd,a wholly-owned subsidiary of Dynamic Pearl Sdn Bhd which is a wholly-owned subsidiary of MPHB.

2 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through TRSB and DISB which has interest in QASB which in turn has interest in MPHB.

3 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through TRSB.

4 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through QASB which in turn has interest in MPHB.

5 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through QASB which in turn has interest in MPHB.

6 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through MPHB.

7 Deemed interest by virtue of Section 6A(4) of the Companies Act,1965 held through DISB which has interest in QASB which in turnhas interest in MPHB.

N OTICE IS HEREBY GIVEN t h at the Seventy-Eighth (78th) Annual General Meeting of Eastern & Oriental Berhad (“EOB” or “ C o m p a ny”)

will be held at Berjaya Hall, Bukit Kiara Equestrian & Country Resort , Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur,

on We d n e s d ay, September at 9.30 a.m. for the following purp o s e s :

1 . To re c e i ve and adopt the Audited Financial Statements for the year ended M a r ch (Resolution 1)

together with the Reports of the Dire c t o rs and Au d i t o rs there o n .

2 . To re-elect the following Dire c t o rs who re t i re in accordance with A rticle 98 of theC o m p a ny ’s A rticles of A s s o c i at i o n :

– D atuk Henry Chin Poy Wu (Resolution 2)

– Mr A l oysius Choong Kok Sin (Resolution 3)

3 . To approve the payment of Dire c t o rs ’ fees in respect of the year ended M a r ch . (Resolution 4)

4 . To approve a first and final dividend of 2% less income tax for the year ended M a r ch . (Resolution 5)

5 . To re-appoint Messrs Ernst & Young as auditors of the Company and to authorise the Dire c t o rs to (Resolution 6)

fix their re mu n e r at i o n .

6 . To consider and if thought fit , to pass the following resolution as an Ordinary Resolution: (Resolution 7)

A u t h o r ity to allot and issue shares in general pursuant to Section 132D of theCompanies A c t , 1 9 6 5

“ T H A T, subject always to the Companies A c t , , the A rticles of A s s o c i ation of the Company and approvals of the re l evant gove rnmental and /or re g u l at o ry authori t i e s , the Dire c t o rs be and are here by empowe re d ,p u rsuant to Section 132D of the Companies A c t , , to issue shares in the Company from time to time and upon such terms and conditions and for such purposes as the Dire c t o rs may deem fit provided that the a g gre g ate number of shares issued pursuant to this resolution does not exceed ten percent (10%) of the total issued capital of the Company and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company.”

7. To consider and if thought fit , to pass the following resolution as an Ordinary Resolution:

R e n e wal of Shareholder s ’A p p r o val for Proposed Share Buy-Back (Resolution 8)

“ T H A T, subject always to the Companies A c t , , the Memorandum and A rticles of A s s o c i ation of the Company, the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and all other re l evant applicable law s , re g u l ations and guidelines and the approvals of all re l evant authori t i e s ,the approval granted by the stock h o l d e rs of the Company at the Extraordinary General Meeting of the Company

— as special business —

— as ord i n a ry business —

notice of annual general meeting

held on September , a u t h o rizing the Company to purchase and/or hold such amount of ordinary stock units of RM1.00 each (“Stock Units”) in the Company (“Proposed Share Buy-Back”) as may be determined by the Dire c t o rs f rom time to time through Bursa Securities be and is here by re n ewe d , p rovided that : -

i . the aggre g ate number of ordinary Stock Units which may be purchased and/or held by the Company p u rsuant to this resolution shall not exceed ten percent (10%) of the issued and paid-up share capital of the C o m p a ny at the time of purch a s e ; a n d

i i . the maximum funds to be allocated by the Company for the purpose of the Proposed Share Buy-Back shall not exceed the Company ’s retained pro fit and share premium accounts.

T H A T the Dire c t o rs of the Company be and are here by authorised to deal with the Stock Units sop u r chased in their absolute discretion in any of the following manners : -

a . cancel all the Stock Units so purch a s e d ; a n d / o r

b. retain the Stock Units so purchased as tre a s u ry shares for distri bution as dividend to the stock h o l d e rs and/or resell on the market of Bursa Securi t i e s ; a n d / o r

c. retain part thereof as tre a s u ry shares and cancel the re m a i n d e r.

AND T H A T s u ch authority shall commence immediat e ly upon the passing of this re s o l u t i o n ,until the conclusion of the next Annual General Meeting (“AGM”) of the Company or the expiry of the period within which the next AGM is re q u i red by law to be held unless earlier revo ked or va ried by ordinary resolution of the stock h o l d e rs of the Company in general meeting.

AND FURTHER T H AT the Dire c t o rs of the Company be and are here by authorised to take all such steps as are necessary and/or enter into any and all agreements and arrangements with a ny party or parties to implement, finalise and gi ve full effect to the Proposed Share Buy-Back with full power to assent to any conditions, m o d i fic at i o n s , reva l u at i o n s , va ri ations and/or amendments (if any) as may be imposed by the re l evant authorities from time to time to implement or to effect the purchase of its own Stock Units.”

8 . To consider and if thought fit , to pass the following resolutions as Ordinary Resolutions:

i R e n e wal of authority granted on 29th September 2004 for the Proposed Special Issue of an a g gr e g a te of 33,709,000 new ordinary stock units of RM1.00 each in EOB, to identified Bumimputera Inv e s t o r s at an issue price to be determined and announced later (“Proposed Special Issue”) (Resolution 9)

“ T H A T, subject to the approvals of the re l evant authori t i e s , including the approva l - i n - p rinciple of Bursa Malaysia Securities Berhad for the listing of and quotation for the new ordinary stock units of RM1.00 each in EOB to be issued under the Proposed Special Issue, the authority gi ven by the stock h o l d e rs of the Company at the Extraordinary General Meeting of the Company held

on September to the Dire c t o rs of the Company be and is here by re n ewe d , n a m e ly, the a u t h o rity to allot and issue an aggre g ate of 33,709,000 new ordinary stock units of RM1.00 each in EOB (“New Stock Units”), to Bumiputera inve s t o rs at an issue price to be determined later ( w h i ch issue price however will be the higher of the par value of the New Stock Units of RM1.00 or the weighted average market price of the ordinary stock units of RM1.00 each in EOB for the five (5) market days prior to the re s p e c t i ve pri c e - fixing dates with a discount of not more than 15%) AND T H AT s u ch New Stock Units shall, upon issue and allotment, rank pari passu in all respects with the existing ordinary stock units of RM1.00 each in EOB, except that they shall not be entitled to any dividends, ri g h t s , allotments and/or any other distri butions that may be declared by the Company,the entitlement date of which is prior to the date of allotment of the re s p e c t i ve New Stock Units AND FURTHER T H A T the Dire c t o rs be and are here by authorised to do all such acts and to enter into all such agreements and arrangements as they may deem necessary or expedient and in the best i n t e rests of the Company to implement, finalise and to gi ve full effect to the Proposed Special Issue with full power to assent to any conditions, m o d i fic at i o n s , va ri ations and/or amendments as may be imposed or permitted by the re l evant authori t i e s.”

i i R e n e wal of authority granted on 29th September 2004 for the Proposed Allotment and Issuance (as part of the Proposed Special Issue) of such number of New Stock Units not exceeding 5% of the Issued and Paid-Up Share Capital of EOB to Datuk Azizan bin Abd Rahman at an issue price to be determined and announced la t e r (Resolution 10)

“ T H A T, subject to the approvals of the re l evant authorities and to the passing of Ordinary Resolution 9 a b ove and as part of the Proposed Special Issue, the authority gi ven by the stock h o l d e rs of the Company at the Extraordinary General Meeting of the Company held on September to the Dire c t o rs of the Company (save for Datuk Azizan bin Abd Rahman) be and is here by re n ewe d , n a m e ly, the authority for the Dire c t o rs of the Company (save for Datuk Azizan bin Abd Rahman) at any time and from time to time,to allot and issue such number of New Stock Units at an issue price to be determined later (which issue price h owever will be the higher of the par value of the New Stock Units of RM1.00 or the weighted average m a r ket price of the ordinary stock units of RM1.00 each in EOB for the five (5) market days prior to the re s p e c t i ve pri c e - fixing dates with a discount of not more than 15%) to Datuk Azizan bin Abd Rahman,being the Independent and Non-Exe c u t i ve Dire c t o r / C h a i rman of the Company, subject to the total number of the New Stock Units allotted and issued to him under the Proposed Special Issue not exceeding 5% of the issued and paid-up share capital of EOB AND T H A T the Dire c t o rs (save for Datuk Azizan bin Abd Rahman) be and are here by authorised to do all such acts and to enter into all such agreements and arrangements as t h ey may deem necessary or expedient and in the best interests of the Company to implement, finalise and to gi ve full effect to the proposed allotment and issuance to Datuk Azizan bin Abd Rahman with full power to assent to any conditions, m o d i fic at i o n s , va ri ations and/or amendments as may be imposed or permitted by the re l evant authori t i e s.”

i i i R e n e wal of authority granted on 29th September 2004 for the Proposed Allotment and Issuance (as part of the Proposed Special Issue) of such number of New Stock Units not exceeding 5% of the Issued and Paid-Up Share Capital of EOB to Kamil Ahmad Merican at an issue price to be determined and announced la t e r (Resolution 11)

“ T H A T, subject to the approvals of the re l evant authorities and to the passing of Ordinary Resolution 9 a b ove and as part of the Proposed Special Issue, the authority gi ven by the stock h o l d e rs of the Company at the Extraordinary General Meeting of the Company held on September to the Dire c t o rs of the C o m p a ny (save for Kamil Ahmad Merican) be and is here by re n ewe d , n a m e ly, the authority for the D i re c t o rs of the Company (save for Kamil Ahmad Merican) at any time and from time to time, to allot and issue such number of New Stock Units at an issue price to be determined later (which issue price h owever will be the higher of the par value of the New Stock Units of RM1.00 or the weighted average m a r ket price of the ordinary stock units of RM1.00 each in EOB for the five (5) market days prior to the re s p e c t i ve pri c e - fixing dates with a discount of not more than 15%) to Kamil Ahmad Meri c a n ,being the Non-Independent and Non-Exe c u t i ve Director of the Company, subject to the total number of the New Stock Units allotted and issued to him under the Proposed Special Issue not exceeding 5% of the issued and paid-up share capital of EOB AND T H AT the Dire c t o rs (save for Kamil Ahmad Merican) be and are here by authorised to do all such acts and to enter into all such agreements and arrangements as they may deem necessary or expedient and in the best interests of the Company to implement, finalise and to gi ve full effect to the proposed allotment and issuance to Kamil Ahmad Merican with full power to assent to any conditions, m o d i fic at i o n s , va ri ations and/or amendments as may be imposed or permitted by the re l evant authori t i e s.”

9 . To consider and if thought fit , to pass the following resolution as an Ordinary Resolution:

R e n e wal of Shareholder s ’ A p p r o val for the General Mandate for Recurrent Related P a r ty Transactions of a Rev e n ue or Trading Nature (“Proposed General Mandate”) (Resolution 12)

“ T H A T, p u rsuant to paragraph 10.09(1)(b) of the Listing Requirements of Bursa Malaysia Securities B e r h a d , the general mandate for re c u rrent re l ated party transactions of a revenue or trading nat u re gi ven by the stock h o l d e rs of the Company at the Extraordinary General Meeting of the Company held on 29 September 2004 be and is here by re n ewe d , and approval be and is here by gi ven to the Company to continue to enter into and gi ve effect to the re c u rrent re l ated party transactions with the re l ated parties as specified in Section 2.3 of the circular to stock h o l d e rs dated 6 September 2005 (“Circular”) on terms not more favo u r a ble to the re l ated parties than those generally ava i l a ble to the public which re c u rrent re l ated p a rty transactions are necessary for the day to day operations of the Company and are in the ordinary course of business of EOB and/or its subsidiaries and are not detrimental to the minority stock h o l d e rs of the Company ( “ R e c u rrent Tr a n s a c t i o n s ” ) .

T H AT the approval here by gi ven is subject to annual re n ewal and shall continue to be in force until:-

(a) the conclusion of the next annual general meeting (“AGM”) of the Company following the general meeting at which the general mandate was passed, at which time it will lapse, unless by a resolution passed at the meeting,the authority is re n ewe d ;

(b) the expiration of the period within which the next AGM after that date is re q u i red to be held pursuant to section 143(1) of the Companies A c t , 1965 (but shall not extend to such extension as may be allowed p u rsuant to section 143(2) of the Companies A c t , 1 9 6 5 ) ; o r

(c) revo ked or va ried by resolution passed by the stock h o l d e rs in general meeting,

w h i ch ever is the earlier.

AND T H AT d i s c l o s u re on the bre a k d own of the aggre g ate value of the Recurrent Transactions conducted pursuant to theP roposed General Mandate during the financial year based on the following inform ation will be made in the Company ’sAnnual Report and in the Annual Report for the subsequent financial ye a rs that the re n ewed General Mandate continues inf o r c e :

(a) the type of the Recurrent Transactions made; a n d

(b) the names of the re l ated parties invo l ved in each type of the Recurrent Transactions made and their re l ationship with the Company.

AND FURTHER T H A T a u t h o rity be and is here by gi ven to the Dire c t o rs of the Company to do such acts and things( i n c l u d i n g, without limitat i o n , e xecuting all such documents as may be re q u i red) to enter into and to gi ve effect to theR e c u rrent Transactions authorised by this Ordinary Resolution.”

1 0 . To transact any other business for which due notice shall have been gi ven in accordance with the A rticles of A s s o c i ation of the Company and the Companies A c t , .

Subject to the approval of the stock h o l d e rs , a first and final dividend of 2% less income tax in respect of the financial year ended M a r ch , will be paid on N ovember to stock h o l d e rs whose names appear on the Register of Members and Record ofD e p o s i t o rs at the close of business on October .

N OTICE IS HEREBY GIVEN t h at the Share Transfer Books and Register of Members of the Company will be closed on October to determine stock h o l d e rs ’ entitlements to the dividend pay m e n t .

A Depositor shall qualify for the entitlement to the dividend only in respect of:1 . S h a res deposited into the Depositors ’ S e c u rities account before 12.30 p. m . on October (in respect of shares

w h i ch are exempted from mandat o ry deposit);

2 . S h a res transferred to the Depositors ’ S e c u rities account before 4.00 p. m . on October in respect of ordinary transfers ; a n d

3 . S h a res bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of the Bursa Malaysia Securities Berhad.

By Order of the Board

FAM CHAI HINGC o m p a ny Secre t a r y

Kuala LumpurD at e d : September

n o t e s

1 . A member of the Company entitled to attend and vote at this meeting is entitled to appoint one or more proxies to attend and vote in his stead. A proxy may but neednot be a member of the Company

2 . The instrument appointing a proxy shall be in writing under the hand of the appointor or his at t o rn ey duly authorised in writing or if the appointor is a corp o r at i o neither under its common seal or under the hand of an officer or at t o rn ey duly authorised in wri t i n g

3 . The instrument appointing a proxy together with the power of at t o rn ey or other authori t y, if any, under which it is signed, shall be deposited at the re gi s t e red office ofthe Company at Level 3A (Annexe ) , Menara Milenium, 8 Jalan Damanlela, 50490 Kuala Lumpur not later than 48 hours before the time set for the meeting or at anya d j o u rnment there o f .

4 . S t o ck h o l d e rs are reminded that pursuant to the Securities Industry (Central Depositories) (Amendment) (No. 2) A c t , 1998 which came into effect on 1 November 1998,all stock units not deposited with Bursa Malaysia Depository Sdn Bhd by 12.30 p. m . on 1 December 1998 and not exempted from mandat o ry deposit, h ave beent r a n s f e rred to the Minister Of Finance (“MOF”). A c c o r d i n g ly, o n ly the MOF is eligi ble to attend the meeting for such undeposited stock units.

— notice of book closure —

E X P L A N AT O RY NOTES ON SPECIAL BUSINESS

1 . O rd i n a ry Resolution 7 in respect of the authority to allot and issue shares in general pursuant to Section 132D ofthe Companies Act, 1965

O r d i n a ry Resolution 7, if passed, will empower the Dire c t o rs to allot and issue new ordinary stock units in the Company up to ten percent (10%) of the issued sharecapital of the Company for such purposes as they consider would be in the interest of the Company. This authori t y, unless revo ked or va ried at a general meeting, w i l le x p i re at the next Annual General Meeting.

2 . O rd i n a ry Resolution 8 in respect of the Renewal of Shareholders’ Approval for Proposed Share Buy-Back

O r d i n a ry Resolution 8, if passed, will re n ew the authority granted to the Company, at the Extraordinary General Meeting of the Company held on September ,e m p owe ring the Company to purchase and/or hold up to ten percent (10%) of the issued and paid-up share capital of the Company. This authority will, unless revo ke dor va ried by the Company at a General Meeting, e x p i re at the next Annual General Meeting. For further inform ation on the Proposed Share Buy-Back , please refer to theS h a re Buy-Back Statement dated 6 September 2005 accompanying the Notice of Annual General Meeting.

3 . O rd i n a ry Resolution 9, Ord i n a ry Resolution 10 and Ord i n a ry Resolution 11 in respect of the Proposed Special Issue and the Proposed Allotment and Issuance of New Stock Units to the Directors pursuant to the Proposed Special Issue

O r d i n a ry Resolution 9, if passed, will re n ew the authority granted at the Extraordinary General Meeting of the Company held on 29 September 2004 to the Dire c t o rs ofthe Company to allot and issue an aggre g ate of 33,709,000 new ordinary stock units of RM1.00 each in EOB (“New Stock Units”) to Bumiputera inve s t o rs.The OrdinaryResolutions 10 and 11, if passed, will re n ew the authority granted at the Extraordinary General Meeting of the Company held on 29 September 2004 to the Dire c t o rs ofthe Company to allot and issue such number of New Stock Units under the Proposed Special Issue to Datuk Azizan bin Abd Rahman (“AAR”) and Encik Kamil A h m a dM e rican (“KAM”), who are dire c t o rs of the Company (“Proposed A l l o t m e n t ” ) .

Except for the approval from the Ministry of Intern ational Trade and Industry for the allocation of the New Stock Units to the Bumiputera inve s t o rs and the approva l - i n -p rinciple from Bursa Malaysia Securities Berhad for the listing of and quotation of the New Stock Units to be issued pursuant to the Proposed Special Issue, all otherre l evant approvals have been obtained for the Proposed Special Issue and Proposed A l l o t m e n t .

AAR and KAM have abstained and will continue to abstain from all deliberation and voting on the board resolutions pertaining to the proposed allotment and issuance of New Stock Units to the re s p e c t i ve said Dire c t o rs. In addition, AAR and KAM will abstain from and will ensure that all persons connected to them will abstain fro mvoting on the ordinary resolutions pertaining to their re s p e c t i ve allotment and issuuance of New Stock Units under the Proposed A l l o t m e n t .

4 . O rd i n a ry Resolution 12 in respect of the Renewal of Shareholders’ Approval for the Proposed General Mandate

O r d i n a ry Resolution 12, if passed, will authorise the Company and/or its subsidiaries (“EOB Group”) to enter into re c u rrent re l ated party transactions with re l at e dp a rties in the ordinary course of business which are necessary for the EOB Gro u p ’s day - t o - d ay operations and are on terms not more favo u r a ble to the re l ated part i e sthan those generally ava i l a ble to the public and shall lapse at the conclusion of the next Annual General Meeting unless authority for its re n ewal is obtained from thes t o ck h o l d e rs of the Company at a general meeting. For further inform at i o n , please refer to the circular to stock h o l d e rs dated 6 September 2005 accompanying thisAnnual Report .

statement accompanying notice of annual general meeting

1. place, date and time of the seventy–eighth annual general meeting

The Seventy-Eighth Annual General Meeting of the Company will be held at Berjaya Hall, Bukit Kiara Equestrian & C o u n t ry Resort , Jalan Bukit Kiara, Off Jalan Damansara, Kuala Lumpur on We d n e s d ay, September at 9.30 a.m.

2. D i rectors who are standing for re–election at the seventy–eighth annual general meeting

The Dire c t o rs standing for re-election at the Seventy-Eighth Annual General Meeting of the Company pursuant to A rticle 98 of the C o m p a ny ’s A rticles of A s s o c i ation are as follow s :

i. D atuk Henry Chin Poy Wu ; a n di i. Mr A l oysius Choong Kok Sin

Details of the abovementioned dire c t o rs are set out in the Dire c t o rs ’ P ro file in this Annual Report .

3. details of attendance of directors at board meetings

The details of attendance of each Director at Board Meetings are set out in the Corp o r ate Gove rnance Statement in this Annual Report .

n o t e s

1. A member of the Company entitledto attend and vote at this meetingis entitled to appoint one or moreproxies to attend and vote in hisstead. A proxy may but need notbe a member of the Company.

2. The instrument appointing a proxy shall be in writing underthe hand of the appointor or hisa t t o rney duly authorised in writingor if the appointor is a corporationeither under its Common Seal orunder the hand of an officer ora t t o rney duly authorised in writing.

3. The instrument appointing a proxy together with the power of attorney or other authority,if any, under which it is signed,shall be deposited at the Registere dOffice of the Company at Level 3A (Annexe), Menara Milenium, 8 Jalan Damanlela, DamansaraHeights, 50490 Kuala Lumpur notlater than 48 hours before thetime set for the meeting or at any adjournment thereof.

4. Stockholders are reminded that pursuant to the SecuritiesIndustry (Central Depositories)(Amendment) (No. 2) Act, 1998which came into effect on 1November 1998, all stock unitsnot deposited with Bursa MalaysiaDepository Sdn Bhd by 12.30 p.m.on 1 December 1998 and notexempted from mandatory deposit,have been transferred to theMinister of Finance (“MOF”).Accordingly, only the MOF iseligible to attend the meeting for such undeposited Stock Units.

EASTERN & ORIENTAL BERHAD ( 5 5 5 - K )

(I n c o r p o rated in Malaysia under the Companies Enactment,1 9 1 7)

FORM OF PRO X Y

I / We . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NRIC No. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Full Name in Capital Letters )

of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Full A d d re s s )

being a member(s) of EASTERN & ORIENTAL BERHAD ( C O M P ANY NO . : 555-K) h e re by appoint . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(Full Name in Capital Letters )

o f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Full A d d re s s )

or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the Seve n t y -Eighth Annual General Meeting of the Company to be held at Berjaya Hall, Bukit Kiara Equestrian & Country Resort ,Jalan Bukit Kiara, Off Jalan Damansara, Kuala Lumpur on We d n e s d ay, S e p t e m b e r at . a.m or at anya d j o u rnment there o f .The proxy is to vote in the manner indicated below, with an “ X ” in the appro p ri ate spaces. If nos p e c i fic direction as to voting is gi ve n , the proxy will vote or abstain from voting at his/her discre t i o n .

re s o l u t i o n s f o r a g a i n s t . To re c e i ve and adopt the Audited Financial Stat e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍ . To re-elect Datuk Henry Chin Poy Wu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍ . To re-elect Mr A l oysius Choong Kok Sin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍ . To approve the payment of Directors’ fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍. To approve a first and final dividend of 2% less income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍ . To re-appoint Messrs Ernst & Young as Auditors of the Company . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍. To authorise the issue of shares pursuant to Section 132D of the Companies Act, 1965 . . . . . . . . ❍ . . . . . . . . . . . ❍ . To approve the renewal of authority for Proposed Share Buy-Back . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍. To approve the renewal of authority for Proposed Special Issue . . . . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍

. To approve the renewal of authority to allot and issue shares to Datuk Azizan Bin Abd Rahman pursuant to the Proposed Special Issue . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍

. To approve the renewal of authority to allot and issue shares to Encik Kamil Ahmad Merican pursuant to the Proposed Special Issue . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍

. To approve the renewal of authority for Proposed General Mandate . . . . . . . . . . . . . . . . . . . . . . . ❍ . . . . . . . . . . . ❍

Signed this ........................... d ay of .......................... .

Number of stock units held S i g n at u re of m e m b er(s) / S e a l

n o t e s

n o t e s

Documents

A N N U A L R E P O RT - E&O Berhad...P ro p e r ty Development Berhad, P u t r a j a ya Perdana Berhad, M u l t i - P u r pose Holdings Berhad, Magnum Corp o r a tion Berhad and Mimaland