Enriching Lives

JohorLandBERHAD 12379-K

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Laporan Tahunan 2007 Annual Report

Johor Land Berhad

Kompleks Mutiara Johor LandJalan Bukit MutiaraBandar Dato’ Onn81100 Johor BahruJohor Darul Ta’zimMalaysia

Tel : +60 (7)356 4888Fax : +60 (7)356 4889

www.jland.com.my

Sustaining Momentum...Enriching Lives

1 Corporate VisionVisi Korporat

2 Corporate ProfileProfil Korporat

3 2007 Financial CalendarKalendar Kewangan 2007

4 Corporate InformationMaklumat Korporat

6 Board of DirectorsLembaga Pengarah

8 Profile of the Board ofDirectorsProfil Lembaga Pengarah

18 Corporate StructureStruktur Korporat

19 Teraju CommitteeJawatankuasa Teraju

20 Statement to ShareholdersPenyata Kepada Para Pemegang Saham

44 Corporate Diary 2007Diari Korporat 2007

46 Audit Committee Report50 Statement on Corporate

Governance56 Statement on Internal

Control60 Statement on Directors’

Responsibility61 Additional Disclosure

Information64 Financial Statements123 Location of Land Bank and

Projects

124 List of Properties131 Shareholdings Statistics133 Notice of Annual General

Meeting135 Notis Mesyuarat Agung

Tahunan137 Statement Accompanying

The Notice of AnnualGeneral Meeting

138 Penyata Bersama Notis Mesyuarat Agung Tahunan

139 Corporate Directory• Proxy Form

Borang Proksi

ContentsKandungan

Sustaining Momentum...Enriching Lives

Johor Land Berhad


JOHOR LAND BERHAD


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Corporate VisionVisi Korporat

To be the leading property companyMenjadi syarikat peneraju di sektor hartanah

JOHOR LAND BERHAD


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Corporate ProfileProfil Korporat

Johor Land Berhad (JLand) isa successful propertydeveloper listed on the MainBoard of Bursa MalaysiaSecurities Berhad with astrong track record of buildingthriving communities in Johorgoing back to 1972. One of itskey achievements is thedevelopment of residentialneighbourhoods in theTownship of Pasir Gudang.

JLand’s long termcommitment to sustainabledevelopment and its ability torespond to the needs of thelocal market has made JLanda dominant property developerin Johor. This commitment andthis ability is made possiblethrough understandinghomeowners’ need for quality

and functionality. Our successis in giving our customersvalue for their money andassets with potential forappreciation.

The company currently has aprime land bank of over 3,000acres in Johor. In itsendeavour to be a premierproperty company in thecountry, it intends to expandits presence throughoutMalaysia and the region andto widen its involvement inother sectors of the propertyindustry. JLand is prepared todevelop viable parcels of landin areas outside its presentarea of operation and toparticipate in acquiring,developing and owninginvestment properties.

Johor Land Berhad (JLand)merupakan pemaju hartanahberjaya yang disenaraikan diPapan Utama Bursa MalaysiaSecurities Berhad danmempunyai rekod pencapaianyang kukuh dalammembangunkan komuniti yangberkembang di Johor sejaktahun 1972. Salah satupencapaian utamanya adalahpembangunan kediamanperjiranan di Perbandaran PasirGudang.

Komitmen jangka panjangJLand untuk pembangunanyang berterusan dankeupayaannya bertindak balasterhadap keperluan pasarantempatan menjadikan JLandsebuah pemaju hartanah yangterutama di Johor. Komitmendan keupayaan ini tercapaimelalui kefahaman terhadapkehendak pemilik kediamanuntuk kualiti dan fungsi

kediaman. Kejayaan kamiadalah dalam memberipulangan nilai wang danpotensi peningkatan nilai asetkepada pelanggan-pelanggankami.

Syarikat kini mempunyai lebihdari 3,000 ekar simpanantanah utama di Johor. Dalamusahanya untuk menjadisyarikat hartanah yang ungguldi negara ini, JLand berhasratuntuk memperluaskanaktivitinya ke seluruh Malaysia dan rantau ini serta memperluaskanpenglibatannya dalam sektor-sektor lain dalam industrihartanah. JLand bersediauntuk membangunkan tanah-tanah yang berdaya maju diluar kawasan operasi sediaada dan untuk melibatkan diridalam mengambil alih,membangun dan memilikipelaburan hartanahnya sendiri.

JOHOR LAND BERHAD


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2007 Financial CalendarKalendar Kewangan 2007

28/02/2007

Quarterly report on consolidatedresults for the financial periodended 31/12/2006

Laporan suku tahun kewanganyang disatukan bagi tempohberakhir 31/12/2006

10/04/2007

Declaration of final dividend forfinancial year 2006

Pengisytiharan dividen akhir bagitahun kewangan 2006

25/04/2007

Notice of 32nd Annual GeneralMeeting and ExtraordinaryGeneral Meeting

Notis Mesyuarat Agung Tahunankali ke-32 dan Mesyuarat AgungLuarbiasa

21/05/2007

32nd Annual General Meeting &Extraordinary General Meeting

Mesyuarat Agung Tahunan kalike-32 & Mesyuarat AgungLuarbiasa

21/05/2007



25/05/2007

Date of entitlement for finaldividend 2006

Tarikh kelayakan menerimadividen akhir 2006

29/06/2007

Date of payment of finaldividend for financial year 2006

Tarikh bayaran dividen akhir bagitahun kewangan 2006

27/08/2007



27/11/2007



13/12/2007

Declaration of interim dividendfor financial year 2007

Pengisytiharan dividen interimbagi tahun kewangan 2007

31/12/2007

Date of entitlement for interimdividend 2007

Tarikh kelayakan menerimadividen interim 2007

JOHOR LAND BERHAD


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BOARD OF DIRECTORS

LEMBAGA PENGARAH

TAN SRI DATO’ MUHAMMAD ALI

HASHIM

Chairman / PengerusiNon Independent Non ExecutiveChairmanPengerusi Bukan Bebas Bukan Eksekutif

MOHD TALHAR BIN

ABDUL RAHMAN

Deputy Chairman /Timbalan PengerusiNon Independent Non ExecutiveDeputy ChairmanTimbalan Pengerusi Bukan BebasBukan Eksekutif

A.F.M SHAFIQUL HAFIZ

Managing Director /Pengarah Urusan

KUA HWEE SIM •

Independent Non Executive DirectorPengarah Bebas Bukan Eksekutif

DATO HJ HASSAN BIN

HJ MOHD YUNOS •


LUKMAN BIN

HJ ABU BAKAR •

Non Independent Non ExecutiveDirectorPengarah Bukan Bebas Bukan Eksekutif

ABDUL MALEK BIN TALIB


YUSOF BIN RAHMAT


DR MOHD HAFETZ BIN AHMAD


• Audit Committee / Jawatankuasa Audit

REGISTERED OFFICE

PEJABAT BERDAFTAR

13th FloorMenara Johor CorporationKOTARAYA, 80000 Johor BahruJohor, MalaysiaTel : 07-223 2692Fax : 07-223 3175

SHARE REGISTRAR

PENDAFTAR SAHAM

Pro-Corporate Management ServicesSdn. Bhd.(Company No. 349501-M)Suite 2, 17th FloorKompleks Tun Abdul RazakJalan Wong Ah Fook80000 Johor Bahru, JohorTel : 07-222 5044Fax : 07-222 3044E-mail : [email protected]

STOCK EXCHANGE LISTING

PENYENARAIAN BURSA SAHAM

Main Board of Bursa Malaysia SecuritiesBerhadPapan Utama Bursa Malaysia SecuritiesBerhad

AUDITORS

JURUAUDIT

KPMG

PRINCIPAL BANKERS

BANK-BANK UTAMA

Malayan Banking BerhadBank Muamalat Malaysia BerhadBank Islam Malaysia BerhadAffin Bank Berhad

Corporate InformationMaklumat Korporat

COMPANY SECRETARIES / SETIAUSAHA-SETIAUSAHA SYARIKAT

JAMALLUDIN BIN KALAM

LS 02710

IDHAM JIHADI BIN ABU BAKAR

ACIS (MAICSA 7007381)

JOHOR LAND BERHAD


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JOHOR LAND BERHAD


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Board of DirectorsLembaga Pengarah

JOHOR LAND BERHAD


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Standing from left/Berdiri daripada kiri

Kua Hwee Sim | Dato Hj Hassan Bin Hj Mohd Yunos | Lukman Bin Hj Abu Bakar | Dr Mohd Hafetz Bin Ahmad | Abdul Malek Bin Talib | Yusof Bin Rahmat

Sitting from left/Duduk daripada kiri

A.F.M Shafiqul Hafiz (Managing Director / Pengarah Urusan) | Tan Sri Dato’ Muhammad Ali Hashim (Chairman / Pengerusi) |Mohd Talhar Bin Abdul Rahman (Deputy Chairman / Timbalan Pengerusi)

JOHOR LAND BERHAD


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Profile of the Board of DirectorsProfil Lembaga Pengarah

Tan Sri Dato’ Muhammad Ali Hashim,aged 61, a Malaysian, is a NonIndependent Non Executive Chairmanof JLand. Tan Sri was appointed to theBoard on 1 January 2006.

Tan Sri is the Group Chief Executive ofJohor Corporation (JCorp), the ultimateholding corporation of JLand, sinceJanuary 1982. He graduated from theUniversity of Malaya with a Bachelor ofEconomics (Honours) degree in 1969and participated in the Senior ExecutiveProgramme, Stanford University, USAin 1985. Tan Sri was conferred theHonorary Doctorate of Management byUniversiti Teknologi Malaysia (UTM) on19 August 2000; Honorary Doctorate in Entrepreneurship by UniversitiTeknologi Mara (UiTM) on 24 May2007; and Honorary Doctorate inTechnology Management by UniversitiTun Hussien Onn Malaysia (UTHM) on2 September 2007 and was awardedthe prestigious Maal Hijrah 1428HAppreciation Award by Duli Yang MahaMulia Seri Paduka Baginda YangDiPertuan Agong on 20 January 2007.

Tan Sri’s tenacity, business acumen andentrepreneurial leadership has enabledJCorp to grow into one of Malaysia’sleading conglomerates with more than250 companies, 8 of which are listedon Bursa Malaysia Securities Berhadand another on the London StockExchange. This highly diversified Groupoffers meaningful career opportunitiesto more than 50,000 employees.

As CEO of JCorp Group, Tan Sri hadalso successfully steered the Groupthrough extreme business challenges,especially when the JCorp Group washard hit by the 1997 Asian Crisis. In2006-2007, JCorp through Kulim(Malaysia) Berhad had also successfullyacquired two PLC’s namely QSRBrands Bhd and KFC Holdings(Malaysia) Berhad, overcoming aprotracted hostile challenge. This hadled to the exercise becoming one ofMalaysian landmark corporateacquisitions.

JCorp has also successfully managedMalaysia’s one and only ‘market-driven’local authority, namely the PasirGudang Local Authority (PGLA), withTan Sri as President with mayorialresponsibilities since January 1982.JCorp was the single most importantagency responsible for Pasir Gudang’sdevelopment into one of Malaysia’svibrant and dynamics industrialtownships. PGLA made history bybecoming the first business-drivenLocal Authority in Malaysia to issue aMudharabah Bond rated triple ‘A’ byRatings Agency Malaysia (RAM).

Tan Sri sits as Chairman of Kulim(Malaysia) Berhad, KPJ HealthcareBerhad, QSR Brands Bhd, KFCHoldings (Malaysia) Bhd and SindoraBerhad which are JCorp’s subsidiarieslisted on the Main Board of the BursaMalaysia Securities Berhad. Tan Sri alsosits as Chairman of Damansara RealtyBerhad, an associate company of JCorplisted on the Main Board of the BursaMalaysia Securities Berhad.

Tan Sri is also active as a CouncilMember of Malaysian IndustrialDevelopment Authority (MIDA),President of the Johor FootballAssociation, President of the MalaysianKite Council, Vice President of theMalaysian Islamic Chamber ofCommerce (MICC), Chairman of theMICC Corporate Bureau and Chairmanof Kumpulan Waqaf An-Nur Berhad, anIslamic endowment institution thatspearheads JCorp Group’s CSRprograms, including the uniqueCorporate Waqaf Concept initiated byJCorp. He is the Chairman ofDamansara REIT Managers Sdn Bhdand also the Chairman and/or Directorof several other companies within theJCorp Group.

Other than as disclosed, he does nothave any family relationship with anydirector and/or major shareholder ofJLand. He has no personal interest inany business arrangement involvingJLand. He has not been convicted forany offences. He attended all four (4)Board of Directors’ Meetings of the Company in the financial yearended 31 December 2007.

Tan Sri Dato’ Muhammad Ali HashimChairman / Pengerusi

JOHOR LAND BERHAD


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Tan Sri Dato’ Muhammad Ali Hashim,berusia 61 tahun, warganegara Malaysia,merupakan Pengerusi Bukan BebasBukan Eksekutif JLand. Tan Sri telahdilantik ke Lembaga Pengarah pada 1 Januari 2006.

Tan Sri adalah Ketua Eksekutif KumpulanJohor Corporation (JCorp), perbadananinduk JLand, sejak Januari 1982. Beliauberkelulusan Ijazah Sarjana MudaEkonomi (Kepujian) dari Universiti Malayapada tahun 1969 dan telah menyertaiProgram Eksekutif Kanan, StanfordUniversity, Amerika Syarikat pada tahun1985. Tan Sri telah dianugerahkan IjazahKehormat Doktor Pengurusan dariUniversiti Teknologi Malaysia (UTM) pada19 Ogos 2000; Ijazah Kehormat DoktorKeusahawanan dari Universiti TeknologiMara (UiTM) pada 24 Mei 2007; danIjazah Kehormat Doktor FalsafahPengurusan Teknologi dari Universiti Tun Hussien Onn Malaysia (UTHM) pada 2 September 2007 dan telahdianugerahkan Penghargaan Maal Hijrah1428H oleh Duli Yang Maha Mulia SeriPaduka Baginda Yang DiPertuan Agongpada 20 Januari 2007.

Berkeperibadian gigih dan cekal, tinggisemangat keusahawanan serta berdayakepimpinan berwawasan, Tan Sri telahmembina JCorp sehingga menjadi sebuahkonglomerat Malaysia yang unggul yangmemiliki lebih dari 250 buah syarikat,dengan 8 buah tersenarai di BursaMalaysia Securities Berhad dan sebuahlagi di Bursa Saham London. KumpulanJCorp yang unggul yang menerajui

kepelbagaian bidang telah dapatmemberikan peluang pekerjaan kepadalebih 50,000 orang anggota pekerja.

Sebagai Ketua Eksekutif JCorp, Tan Sritelah berjaya mengemudikan Kumpulandalam menghadapi cabaran bisnesterutama ketika JCorp dilanda KrisisEkonomi Asia pada tahun 1997. Padatahun 2006-2007, JCorp melalui Kulim(Malaysia) Berhad telah berjayamengambilalih dua syarikat tersenaraiiaitu QSR Brands Bhd dan KFC Holdings(Malaysia) Bhd, berjaya mengatasitentangan yang hebat yang juga telahmenjadi satu mercu tanda di dalampengambilalihan korporat di Malaysia.

JCorp telah berjaya menguruskan satu-satunya pihak berkuasa tempatanMalaysia yang diuruskan berteraskanprinsip swasta, iaitu Pihak BerkuasaTempatan Pasir Gudang (PBTPG), denganTan Sri selaku Presiden yangbertanggungjawab sebagai Datuk Bandarsejak Januari 1982. JCorp merupakanagensi utama yang bertanggungjawab keatas pembangunan Pasir Gudangsehingga berjaya dimajukan menjadisebuah bandar perindustrian yang ungguldan dinamik di Malaysia. PBTPG telahmenempa sejarah dengan menjadi PihakBerkuasa Tempatan di Malaysia yangpertama menerbitkan Bon Mudharabahdengan penarafan tiga ‘A’ oleh RatingsAgency Malaysia (RAM).

Tan Sri adalah Pengerusi Kulim (Malaysia)Berhad, KPJ Healthcare Berhad, QSRBrands Bhd, KFC Holdings (Malaysia)

Bhd dan Sindora Berhad, syarikat-syarikatdi dalam Kumpulan JCorp yang tersenaraidi Papan Utama Bursa MalaysiaSecurities Berhad. Tan Sri juga adalahPengerusi Damansara Realty Berhad,syarikat sekutu JCorp yang tersenarai diPapan Utama Bursa Malaysia SecuritiesBerhad.

Tan Sri juga aktif sebagai Ahli MajlisLembaga Pembangunan Industri Malaysia(MIDA), Presiden Persatuan BolasepakJohor, Presiden Majlis Pelayang Malaysia,Naib Presiden Dewan Perdagangan IslamMalaysia (DPIM), Pengerusi Biro KorporatDPIM dan Pengerusi Kumpulan WaqafAn-Nur Berhad, sebuah institusi waqafIslam yang menerajui program “CSR”Kumpulan JCorp, termasuk KonsepWaqaf Korporat yang unik yangdimulakan oleh JCorp. Beliau adalahPengerusi Damansara REIT ManagersSdn Bhd dan juga Pengerusi dan/atauPengarah di dalam beberapa buahsyarikat lain dalam Kumpulan JCorp.

Selain daripada yang telah dimaklumkan,beliau tidak mempunyai sebaranghubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegangsaham utama JLand. Beliau juga tidakmempunyai sebarang kepentinganperibadi di dalam sebarang urusanperniagaan yang melibatkan JLand. Beliautidak pernah dijatuhkan hukuman atassebarang kesalahan. Beliau telahmenghadiri kesemua empat (4)Mesyuarat Lembaga Pengarah Syarikatbagi tahun kewangan berakhir 31 Disember 2007.

Mohd Talhar Bin Abdul RahmanDeputy Chairman / Timbalan Pengerusi

Mohd Talhar Bin Abdul Rahman, aged 68, a Malaysian, is a NonIndependent Non Executive Director and also the DeputyChairman of JLand. He was appointed as a Director of JLand on15 April 1996. On 1 February 2001, he was appointed as theChairman and with effect from 1 January 2006, he resigned asthe Chairman and was re-appointed as the Deputy Chairman on6 January 2006. He is a Chartered Surveyor by profession andwas made a Fellow of the Royal Institution of CharteredSurveyors in 1973. He became a Fellow of the Institution ofSurveyors (Malaysia) in 1985.

He served in both the State and Malaysian Civil Services; in theLocal Government and Housing Department, Johor from 1964 to1967, and as Director of Valuation in the Ministry of Finance from1968 to 1972. In 1974, he co-founded C H Williams Talhar &Wong (WTW), a Valuation and Property Consultancy Firm andbecame the Group Chairman of WTW since 1982. He sits on theBoard of Pelaburan Johor Berhad, a public company.

Other than as disclosed, he does not have any family relationshipwith any director and/or major shareholder of JLand. He has nopersonal interest in any business arrangement involving JLand.He has not been convicted for any offences. He attended three(3) Board of Directors’ Meetings of the Company in the financialyear ended 31 December 2007.

Mohd Talhar Bin Abdul Rahman, berusia 68 tahun, warganegaraMalaysia, merupakan Pengarah Bukan Bebas Bukan Eksekutifdan juga sebagai Timbalan Pengerusi JLand. Beliau telah dilantiksebagai Pengarah JLand pada 15 April 1996. Pada 1 Februari2001, beliau telah dilantik sebagai Pengerusi dan berkuatkuasadaripada 1 Januari 2006, beliau meletakkan jawatan sebagaiPengerusi dan dilantik semula sebagai Timbalan Pengerusi pada6 Januari 2006. Beliau ialah seorang “Chartered Surveyor” dantelah menjadi “Fellow of the Royal Institution of CharteredSurveyor” pada tahun 1973. Beliau merupakan “Fellow of theInstitution of Surveyors” (Malaysia) pada tahun 1985.

Beliau telah berkhidmat di Perkhidmatan Awam Peringkat Negeridan Malaysia; di Jabatan Perumahan dan Kerajaan Tempatan,Johor dari tahun 1964 hingga 1967 dan sebagai PengarahPenilaian di Kementerian Kewangan dari tahun 1968 hingga1972. Pada tahun 1974, beliau telah bersama-sama menubuhkanC H Williams Talhar & Wong (WTW), sebuah Firma Penilaian danPerunding Hartanah dan menjadi Pengerusi Kumpulan WTWsejak tahun 1982. Beliau adalah Pengarah Pelaburan JohorBerhad, sebuah syarikat awam.

Selain daripada yang dimaklumkan, beliau tidak mempunyaisebarang hubungan kekeluargaan dengan mana-mana pengarahdan/atau pemegang saham utama JLand. Beliau juga tidakmempunyai kepentingan peribadi dalam sebarang urusanperniagaan yang melibatkan JLand. Beliau juga tidak pernahdijatuhkan hukuman atas sebarang kesalahan. Beliau telahmenghadiri tiga (3) Mesyuarat Lembaga Pengarah Syarikat bagitahun kewangan berakhir pada 31 Disember 2007.

JOHOR LAND BERHAD


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A.F.M Shafiqul HafizManaging Director / Pengarah Urusan

A.F.M Shafiqul Hafiz, aged 61, a Bangladeshi and MalaysianPermanent Resident, was appointed to the Board and asManaging Director of JLand since 1 May 1988. Mr Shafiqulgraduated with a Bachelor of Science Degree majoring in CivilEngineering from East Pakistan University of Engineering andTechnology, Dhaka in 1967. He also holds a Master of ScienceDegree in Civil Engineering from Middle East TechnicalUniversity of Ankara, Turkey which he obtained in 1971. He isalso registered with the Institute of Engineers, Australia, as aChartered Professional Engineer. In 1992, he attended a SeniorManagement Program on Public Enterprise at Harvard, USA.

He has been a National Council Member of International RealEstate Federation (FIABCI) Malaysian Chapter since 2000. Hehas also been elected as Vice President by FIABCI Internationalfor its Asia Pacific Regional Committee for the term 2007 till 2009.

He began his career as an Engineer in Dhaka, East Pakistan in1968. His career in Malaysia dates back to 1974 when he joinedPublic Works Department of Malaysia as a Project Engineer.

Later he joined Johor Corporation in 1983 and has held variouspositions within the Group before being appointed as theManaging Director of JLand in 1988 and as the Chief Executiveof the Property Development Division of Johor Corporation since1991. In addition, he is the Chairman of Hotel Selesa Sdn Bhd(PG), Hotel Selesa (JB) Sdn Bhd, Sibu Island Resorts Sdn Bhdand TPM Technopark Sdn Bhd. Besides that, he is the DeputyChairman of Puteri Hotels Sdn Bhd and also Chairman andDirector of several other companies within the JohorCorporation Group.

Other than as disclosed, he does not have any familyrelationship with any director and/or major shareholder of JLand.He has no personal interest in any business arrangementinvolving JLand. He has not been convicted for any offences. Heattended all four (4) Board of Directors’ Meetings of theCompany in the financial year ended 31 December 2007.

A.F.M Shafiqul Hafiz, berusia 61 tahun, warganegara Bangladeshdengan taraf Penduduk Tetap Malaysia, telah dilantik ke LembagaPengarah dan sebagai Pengarah Urusan JLand sejak 1 Mei 1988.En. Shafiqul memiliki Ijazah Sarjana Muda Sains denganpengkhususan dalam Kejuruteraan Awam dari East PakistanUniversity of Engineering and Technology, Dhaka pada tahun1967. Beliau juga memegang Ijazah Sarjana Sains denganpengkhususan dalam Kejuruteraan Awam dari Middle EastTechnical University of Ankara, Turki yang telah diperolehinya padatahun 1971. Beliau juga berdaftar dengan “Institute of Engineers”Australia sebagai “Chartered Professional Engineer”. Pada tahun1992, beliau telah menghadiri Program Pengurusan Atasanmengenai Perusahaan Awam di Harvard, Amerika Syarikat.

Beliau adalah Ahli Majlis Kebangsaan “International Real EstateFederation” (FIABCI) Bahagian Malaysia sejak tahun 2000. Beliaujuga telah dipilih sebagai Timbalan Presiden oleh FIABCIAntarabangsa untuk Jawatankuasa Rantau Asia Pasifik bagitempoh 2007 hingga tahun 2009.

Beliau memulakan kerjayanya sebagai Jurutera di Dhaka,Pakistan Timur pada tahun 1968. Kerjaya beliau di Malaysiabermula sejak tahun 1974 apabila beliau menyertai Jabatan KerjaRaya Malaysia sebagai Jurutera Projek.

Beliau kemudian telah berkhidmat dengan Johor Corporationpada tahun 1983 dan telah memegang pelbagai jawatan didalam Kumpulan sebelum dilantik sebagai Pengarah UrusanJLand pada tahun 1988 dan sebagai Ketua Eksekutif BahagianPembangunan Hartanah, Johor Corporation sejak tahun 1991.Sebagai tambahan, beliau merupakan Pengerusi Hotel SelesaSdn Bhd (PG), Hotel Selesa (JB) Sdn Bhd, Sibu Island ResortsSdn Bhd dan TPM Technopark Sdn Bhd. Selain daripada itu,beliau merupakan Timbalan Pengerusi Puteri Hotels Sdn Bhd danjuga Pengerusi dan Pengarah di beberapa buah syarikat dalamKumpulan Johor Corporation.

Selain dari yang dimaklumkan, beliau tidak mempunyai sebaranghubungan kekeluargaan dengan mana-mana pengarah dan/ataupemegang saham utama JLand. Beliau juga tidak mempunyaikepentingan peribadi dalam sebarang urusan perniagaan yangmelibatkan JLand. Beliau juga tidak pernah dijatuhkan hukumanatas sebarang kesalahan. Beliau telah menghadiri kesemuaempat (4) Mesyuarat Lembaga Pengarah Syarikat bagi tahunkewangan berakhir pada 31 Disember 2007.

JOHOR LAND BERHAD


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Kua Hwee SimDirector / Pengarah

Kua Hwee Sim, aged 55, a Malaysian, is an Independent NonExecutive Director. She was first appointed to the Board of JLandon 1 May 1996. She is also the Chairman of the AuditCommittee. She is a Fellow of the Association of CharteredCertified Accountant, United Kingdom and a RegisteredAccountant of Malaysia and Singapore. She has more than thirtyyears of corporate and financial experience in several industrieswithin Malaysia and overseas.

She is currently a Director of QSR Brands Bhd and KFC Holdings(Malaysia) Bhd, Kulim (Malaysia) Berhad and Sindora Berhadwhich are Johor Corporation’s subsidiaries listed on the MainBoard of the Bursa Malaysia Securities Berhad. She is also theChairman of Audit Committee of QSR Brands Bhd and KFCHoldings (Malaysia) Bhd and a member of the Audit Committeeof Kulim (Malaysia) Berhad and Sindora Berhad. As a professionalAccountant, she also provides financial training for companieswithin Malaysia.

Other than as disclosed, she does not have any familyrelationship with any director and/or major shareholder of JLand.She has no personal interest in any business arrangementinvolving JLand. She has not been convicted for any offences.She attended all four (4) Board of Directors’ Meetings of theCompany in the financial year ended 31 December 2007.

Kua Hwee Sim, berusia 55 tahun, warganegara Malaysia,merupakan Pengarah Bebas Bukan Eksekutif. Beliau telahdilantik ke dalam Lembaga Pengarah JLand pada 1 Mei 1996.Beliau juga adalah Pengerusi Jawatankuasa Audit. Beliaumerupakan “Fellow of the Association of Chartered CertifiedAccountant”, United Kingdom dan merupakan seorang AkauntanBerdaftar di Malaysia dan Singapura. Beliau memiliki pengalamandi dalam kewangan korporat selama lebih daripada tiga puluhtahun di dalam beberapa industri di Malaysia dan luar negara.

Beliau kini adalah Pengarah QSR Brands Bhd dan KFC Holdings(Malaysia) Bhd, Kulim (Malaysia) Berhad dan Sindora Berhadyang merupakan syarikat-syarikat anak Johor Corporation yangtersenarai di Papan Utama Bursa Malaysia Securities Berhad.Beliau juga adalah Pengerusi Jawatankuasa Audit QSR BrandsBhd dan KFC Holdings (Malaysia) Bhd dan Ahli JawatankuasaAudit Kulim (Malaysia) Berhad dan Sindora Berhad. SebagaiAkauntan profesional, beliau juga memberikan latihan kewangankepada syarikat-syarikat di Malaysia.

Selain daripada yang dimaklumkan, beliau tidak mempunyaisebarang hubungan kekeluargaan dengan mana-mana pengarahdan/atau pemegang saham utama JLand. Beliau juga tidakmempunyai kepentingan peribadi dalam sebarang urusanperniagaan yang melibatkan JLand. Beliau juga tidak pernahdijatuhkan hukuman atas sebarang kesalahan. Beliau telahmenghadiri kesemua empat (4) Mesyuarat Lembaga PengarahSyarikat bagi tahun kewangan berakhir pada 31 Disember 2007.

JOHOR LAND BERHAD


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Dato Hj Hassan Bin Hj Mohd YunosDirector / Pengarah

Dato Hj Hassan Bin Hj Mohd Yunos, aged 72, a Malaysian, is anIndependent Non Executive Director. He was appointed to theBoard of JLand on 1 August 2005. He is also a member of theAudit Committee. Dato Hj Hassan is a Barrister-at-Law fromLincoln’s Inn and was called to the Malaysian Bar in 1965. Hehad served in the Malaysian Judicial and Legal Services forseveral years. Currently he is in legal practice, a senior partnerof the firm of Hassan Yunos & Co. He is principally in corporateand real property and was involved at inception and in the earlystages of the development of Johor Corporation.


Dato Hj Hassan Bin Hj Mohd Yunos, berusia 72 tahun,warganegara Malaysia, merupakan Pengarah Bebas BukanEksekutif. Beliau telah dilantik ke dalam Lembaga PengarahJLand pada 1 Ogos 2005. Beliau juga merupakan AhliJawatankuasa Audit. Dato Hj Hassan merupakan Barrister-at-Lawdaripada Lincoln’s Inn dan diterima serta diperakui sebagaiPeguambela dan Peguamcara Malaysia pada tahun 1965. Beliaupernah berkhidmat di Badan Kehakiman dan PerkhidmatanPerundangan selama beberapa tahun. Kini, beliau terlibat dalambidang guaman dan merupakan Rakan Kongsi Kanan di firmaHassan Yunos & Co. Beliau terlibat dalam bidang korporat danhartanah dan turut terlibat dalam pembangunan JohorCorporation di awal penubuhannya.


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Lukman Bin Hj Abu BakarDirector / Pengarah

Lukman Bin Hj Abu Bakar, aged 48, a Malaysian, is a NonIndependent Non Executive Director of JLand. He was appointedto the Board of JLand on 1 August 2006. He is also a memberof the Audit Committee. He graduated with a Bachelor of Urbanand Regional Planning from the University of Technology Malaysiain 1982 before joining Johor Corporation as a Town PlanningOfficer in the same year. He also holds a Post Graduate Diploma(Housing, Building and Planning) from Institute for HousingStudies, Rotterdam, Holland in 1985.

He has held various positions in subsidiary companies within theJCorp Group. He was a Deputy Manager of JCorp in the year of1989. Then, he was appointed as a Manager in 1992 and wasalso appointed as the Deputy Secretary of Pasir Gudang LocalAuthority.

He was appointed as the Deputy General Manager of SindoraBerhad on 1 September 1993 and promoted as the GeneralManager of Sindora Berhad in 1995. He became the Secretaryof Pasir Gudang Local Authority on 1 April 2004. On 1 January2006, he was promoted to Senior General Manager of JCorpcum the Secretary of Pasir Gudang Local Authority and holds theposts until today. He also sits as a Director of Damansara RealtyBerhad, a public listed company within JCorp Group and as aDirector of Syarikat Pengangkutan Maju Berhad, PenawarEkspress Line Berhad and various companies within the JCorp Group.

Other than as disclosed, he does not have any family relationshipwith any director and/or major shareholder of JLand. He has nopersonal interest in any business arrangement involving JLand.He has not been convicted for any offences. He attended all four(4) Board of Directors’ Meetings of the Company in the financialyear ended 31 December 2007.

Lukman Bin Hj Abu Bakar, berusia 48 tahun, warganegaraMalaysia, merupakan Pengarah Bukan Bebas Bukan EksekutifJLand. Beliau telah dilantik sebagai Lembaga Pengarah JLandpada 1 Ogos 2006. Beliau juga merupakan Ahli JawatankuasaAudit. Beliau berkelulusan Ijazah Sarjana Muda Perancang Bandardan Wilayah dari Universiti Teknologi Malaysia pada tahun 1982sebelum berkhidmat di Johor Corporation sebagai PegawaiPerancang Bandar pada tahun yang sama. Beliau juga memilikiDiploma Lepasan Ijazah (Perumahan, Pembinaan dan Perancang)daripada Institute for Housing Studies, Rotterdam Holland padatahun 1985.

Beliau telah memegang pelbagai jawatan di syarikat-syarikatsubsidiari dalam Kumpulan JCorp. Beliau merupakan TimbalanPengurus di JCorp pada tahun 1989. Kemudian, beliau dilantiksebagai Pengurus pada tahun 1992 dan juga dilantik sebagaiTimbalan Setiausaha Pihak Berkuasa Tempatan Pasir Gudang.

Beliau dilantik sebagai Timbalan Pengurus Besar Sindora Berhadpada 1 September 1993 dan dilantik sebagai Pengurus BesarSindora Berhad pada tahun 1995. Beliau seterusnya menjadiSetiausaha Pihak Berkuasa Tempatan Pasir Gudang pada 1 April2004. Pada 1 Januari 2006, beliau dinaikkan pangkat sebagaiPengurus Besar Kanan JCorp merangkap Setiausaha PihakBerkuasa Tempatan Pasir Gudang dan memegang jawatan-jawatan tersebut sehingga kini. Beliau juga adalah PengarahDamansara Realty Berhad, sebuah syarikat tersenarai dalamKumpulan JCorp dan sebagai Pengarah Syarikat PengangkutanMaju Berhad, Penawar Ekspress Line Berhad dan beberapasyarikat-syarikat lain dalam Kumpulan JCorp.

Selain daripada yang dimaklumkan, beliau tidak mempunyaisebarang hubungan kekeluargaan dengan mana-mana pengarahdan/atau pemegang saham utama JLand. Beliau juga tidakmempunyai kepentingan peribadi dalam sebarang urusanperniagaan yang melibatkan JLand. Beliau tidak pernahdijatuhkan hukuman atas sebarang kesalahan. Beliau telahmenghadiri kesemua empat (4) Mesyuarat Lembaga PengarahSyarikat bagi tahun kewangan berakhir pada 31 Disember 2007.

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Abdul Malek Bin TalibDirector / Pengarah

Abdul Malek Bin Talib, aged 45, a Malaysian, is a NonIndependent Non Executive Director of JLand. He wasappointed to the Board of JLand on 1 January 2007. He isProfessional Engineer and obtained his Bachelor of Sciencemajoring in Civil Engineering from the Michigan State University,USA. He also holds a Master in Business Administration fromHenley Management College, London.

He commenced his career in 1985 as a Civil Engineer in theTechnical Department prior to his appointment as the Secretaryof the Executive Committee of Johor Corporation. In 1991, hewas transferred to JCorp subsidiary companies; PembinaanPrefab Sdn Bhd and JLand and held various managerialpositions. He was the General Manager of JLand in 1996 andlater he was promoted as the Chief Operating Officer in 2004till 2007. Effective 1 January 2008, he was appointed as theManaging Director of Damansara Assets Sdn. Bhd. He is alsothe Chairman and Director of several other companies withinthe Johor Corporation Group.


Abdul Malek Bin Talib, berusia 45 tahun, warganegara Malaysia,merupakan Pengarah Bukan Bebas Bukan Eksekutif JLand.Beliau telah dilantik ke dalam Lembaga Pengarah JLand pada 1 Januari 2007. Beliau merupakan seorang Jurutera Profesionaldan memperolehi Ijazah Sarjana Muda Sains denganpengkhususan dalam Kejuruteraan Awam daripada MichiganState University, Amerika Syarikat. Beliau juga memiliki Sarjanadalam Pengurusan Perniagaan daripada Henley ManagementCollege, London.

Beliau memulakan kerjayanya pada tahun 1985 sebagai JuruteraAwam di Jabatan Teknikal sebelum dilantik sebagai SetiausahaJawatankuasa Eksekutif Johor Corporation. Pada tahun 1991,beliau ditempatkan ke syarikat anak JCorp; Pembinaan PrefabSdn Bhd dan JLand dan memegang pelbagai jawatanpengurusan. Beliau adalah Pengurus Besar JLand pada tahun1996 dan kemudiannya dilantik sebagai Ketua Pegawai Operasipada tahun 2004 hingga tahun 2007. Berkuatkuasa 1 Januari2008, beliau dilantik sebagai Pengarah Urusan DamansaraAssets Sdn Bhd. Beliau juga adalah Pengerusi dan Pengarah dibeberapa buah syarikat dalam Kumpulan Johor Corporation.


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Yusof Bin RahmatDirector / Pengarah

Yusof Bin Rahmat, aged 50, a Malaysian, is a Non IndependentNon Executive Director. He was appointed to the Board of JLandon 1 January 2007. He graduated with Bachelor of CivilEngineering (Honours) from the University of Sheffield, UnitedKingdom in 1980 before joining Johor Corporation in the sameyear. He has held various positions in subsidiary companieswithin the Corporation. In January 1997, he was appointed as theChief Executive of the Project Development Division, JohorCorporation. He was appointed as the Managing Director of TPMTechnopark Sdn Bhd, a company within the Johor CorporationGroup since January 2002.

Other than as disclosed, he does not have any family relationshipwith any director and/or major shareholder of JLand. He has nopersonal interest in any business arrangement involving JLand.He has not been convicted for any offences. He attended all four(4) Board of Directors’ Meetings of the Company in the financialyear ended 31 December 2007.

Yusof Bin Rahmat, berusia 50 tahun, warganegara Malaysia,merupakan Pengarah Bukan Bebas Bukan Eksekutif. Beliau telahdilantik ke dalam Lembaga Pengarah JLand pada 1 Januari 2007.Beliau memiliki Ijazah Sarjana Muda Kepujian dalam KejuruteraanAwam daripada University of Sheffield, United Kingdom padatahun 1980 sebelum berkhidmat dengan Johor Corporation padatahun yang sama. Beliau memegang pelbagai jawatan dalamsyarikat-syarikat anak dalam Perbadanan. Pada Januari 1997,beliau dilantik sebagai Ketua Eksekutif, Bahagian PembangunanProjek, Johor Corporation. Beliau dilantik sebagai PengarahUrusan TPM Technopark Sdn Bhd, sebuah syarikat dalamKumpulan Johor Corporation sejak Januari 2002.


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Dr Mohd Hafetz Bin AhmadDirector / Pengarah

Dr Mohd Hafetz Bin Ahmad, aged 57, a Malaysian, is anIndependent Non Executive Director, appointed to the Board ofJLand on 22 May 2007.

He graduated with an MBBS from the University of Malaya in1975. In 1982, he obtained his specialist degree, MRCOG, fromthe Royal College of Obstetricians and Gynaecologists, London,United Kingdom. He was admitted as a Fellow of the RoyalCollege of Obstetricians and Gynaecologists in 2001.

Dr Hafetz did his housemanship in 1975-1976 at HospitalSultanah Aminah, Johor Bahru. Subsequently he worked in thesame hospital in the Outpatients Department, and theDepartment of Obstetrics and Gynaecology. From 1978 till 1983,he worked initially as a Trainee Lecturer, then as Lecturer in theDepartment of Obstetrics and Gynaecology, Medical Faculty,University of Malaya.

He joined Johor Specialist Hospital as a Consultant Obstetricianand Gynaecologist in June 1983 and is still in full time clinicalpractice. Since September 1994 till present, he concurrentlyholds the post of Medical Director of the hospital. He sits onthe Board of Directors of KPJ Johor Specialist Hospital,Kumpulan Waqaf An-Nur Berhad and Damansara REIT ManagersSdn Bhd.

In 2004-2005, Dr Hafetz was the President of the Obstetricaland Gynaecological Society of Malaysia (OGSM).

Other than as disclosed, he does not have any familyrelationship with any director and/or major shareholder of JLand.He has no personal interest in any business arrangementinvolving JLand. He has not been convicted for any offences. Heattended one (1) Board of Directors’ Meetings of the Companyin the financial year ended 31 December 2007.

Dr Mohd Hafetz bin Ahmad, berumur 57 tahun, warganegaraMalaysia, merupakan Pengarah Bebas Bukan Eksekutif, dilantikke dalam Lembaga Pengarah JLand pada 22 Mei 2007.

Beliau memiliki Ijazah Perubatan (MBBS) daripada UniversitiMalaya pada tahun 1975. Pada tahun 1982, beliau memperolehiIjazah Kepakaran, MRCOG daripada “Royal College ofObstetricians and Gynaecologists” London, United Kingdom.Beliau dikurniakan “Fellow of the Royal College Obstetriciansand Gynaecologists”, pada tahun 2001.

Dr Hafetz memulakan kerjayanya sebagai Doktor Pelatih padatahun 1975 hingga tahun 1976 di Hospital Sultanah Aminah,Johor Bahru. Beliau meneruskan perkhidmatannya sebagaiPegawai Perubatan di hospital yang sama di Jabatan PesakitLuar dan Jabatan Perbidanan dan Sakit Puan. Daripada tahun1978 hingga 1983, beliau bertugas sebagai Pensyarah Pelatih,kemudiannya sebagai Pensyarah di Jabatan Perbidanan dan SakitPuan, Fakulti Perubatan di Universiti Malaya.

Beliau menyertai Hospital Pakar Johor sebagai Pakar PerundingPerbidanan dan Sakit Puan sejak Jun 1983 dan masihberkhidmat sepenuh masa dalam bidang tersebut. DariSeptember 1994 hingga kini, beliau juga memegang jawatanPengarah Perubatan di hospital berkenaan.

Beliau adalah Ahli Lembaga Pengarah KPJ Hospital Pakar Johor,Kumpulan Waqaf An-Nur Berhad dan Damansara REIT ManagersSdn Bhd.

Pada tahun 2004 hingga tahun 2005, Dr Hafetz telah memegangjawatan Presiden Persatuan Perbidanan dan Sakit Puan Malaysia(OGSM).

Selain daripada yang dimaklumkan, beliau tidak mempunyaisebarang hubungan kekeluargaan dengan mana-mana pengarahdan/atau pemegang saham utama JLand. Beliau tidakmempunyai kepentingan peribadi dalam sebarang urusanperniagaan yang melibatkan JLand. Beliau juga tidak pernahdijatuhkan hukuman atas sebarang kesalahan. Beliau telahmenghadiri satu (1) Mesyuarat Lembaga Pengarah Syarikat bagitahun kewangan berakhir pada 31 Disember 2007.

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100%

ADVANCE DEVELOPMENT SDN BHD 13974-A

Property DevelopmentPembangunan Hartanah

100%

PEMBINAAN PREFAB SDN BHD 30936-A

Property DevelopmentPembangunan Hartanah

100%

JOHOR LAND MANUFACTURING SDN BHD 301430-D

Manufacturer of metal door frames and trading of building materialsIt ceased operation during the year and remains dormantPengeluar kerangka pintu besi dan berniaga bahan-bahan binaanTelah memberhentikan operasi pada tahun semasa dan tidak aktif

30.07%

REVERTEX (MALAYSIA) SDN BHD 13437-V

Manufacturer of Specialty Latex Concentrate & Industrial ChemicalsPengeluar Pati Susu Getah Asli dan Bahan Kimia Industri

JOHOR LAND BERHAD 12379-K

Property Development, Construction,Property Investment and Investment HoldingPembangunan Hartanah, Pembinaan,Pelaburan Hartanah dan Pegangan Pelaburan

Corporate StructureStruktur Korporat

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Teraju CommitteeJawatankuasa Teraju

89

7

2

654

1 3

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1. A.F.M SHAFIQUL HAFIZ

Managing DirectorPengarah Urusan

2. MARIANA BINTI SIDI

Senior General Manager (Finance)Pengurus Besar Kanan (Kewangan)

3. MOHD RAZIF

BIN AB. RAHIM

General Manager, Bandar Dato’ Onn DivisionPengurus Besar, Bahagian Bandar Dato’ Onn

4. SHEIKH BAHNAN

BIN SHEIKH BAKIR

Deputy General Manager,Quality Assurance DepartmentTimbalan Pengurus Besar,Jabatan Jaminan Mutu

5. SETH BIN JAMALUDDIN

Deputy General Manager,Marketing DivisionTimbalan Pengurus Besar,Bahagian Pemasaran

6. AZIZUL BIN KATAN

Deputy General Manager,Johor Bahru Division/Quality DepartmentTimbalan Pengurus Besar,Bahagian Johor Bahru/Jabatan Kualiti

7. MOHD HIZAM BIN

ABDUL RAUF

Deputy General Manager,Sales Documentation DepartmentTimbalan Pengurus Besar,Jabatan Dokumentasi Jualan

8. NORFAZAHAH

BINTI AHMAD

Deputy General Manager,Managing Director’s OfficeTimbalan Pengurus Besar,Pejabat Pengarah Urusan

9. FADZILAH BINTI

MOHD OTHMAN

Manager, Human Resource &Administration DepartmentPengurus, Jabatan SumberManusia & Pentadbiran

Statement to ShareholdersPenyata kepada Para Pemegang Saham

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ON BEHALF OF THE BOARD OF DIRECTORS, IT ISOUR GREAT PLEASURE TO PRESENT THE ANNUALREPORT AND FINANCIAL STATEMENTS OF JOHORLAND BERHAD (“JLAND”) FOR THE FINANCIALYEAR ENDED 31 DECEMBER 2007 (“FY 2007”).

PARA PEMEGANG SAHAM,BAGI PIHAK LEMBAGA PENGARAH, KAMI DENGANSUKACITANYA MEMBENTANGKAN LAPORANTAHUNAN DAN PENYATA KEWANGAN JOHOR LANDBERHAD (“JLAND”) BAGI TAHUN KEWANGANBERAKHIR 31 DISEMBER 2007 (“TK 2007”).

OPERATING ENVIRONMENT

In 2007, the global economy experienced volatility largely due tothe fallout from the US sub-prime crisis. Despite the challengingbusiness environment, Bank Negara Malaysia (“the Central Bankof Malaysia”) reported that Malaysia’s economy emerged moreresilient with gross domestic product (“GDP”) growth expandingto 6.3% from 5.9% in 2006. Malaysia’s higher growth wasmainly attributable to a stronger domestic economy and highertrade with the stronger Asian economies.

The country’s economic expansion continued to be driven byrobust domestic demand and a strong increase in public sectorspending. Growth was broad-based with strong growth recordedin all economic sectors. While the construction sector expandedby 5.2% in 2007, the property market, however, remained softdue to cautious consumer sentiment arising from higher fuelprices, increased interest rates and stricter consumer financingcriteria by financial institutions.

As a result of this weaker operating environment, JLandexperienced another challenging year. However, we focused ourefforts on facing these challenges head on, once againdemonstrating our resilience and ability to adapt to changingbusiness conditions. Our efforts saw us proactively working totap new opportunities aimed at sustaining the Group’s growthand propelling us forward. We also strived to contain operatingcosts and reposition our products in an effort to remaincompetitive.

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PERSEKITARAN OPERASI

Pada tahun 2007, ekonomi global telah berhadapan denganketidakstabilan yang sebahagian besarnya disebabkan oleh kesankrisis subprima Amerika Syarikat. Biarpun persekitaran perniagaannyata mencabar, Bank Negara Malaysia (“Bank Pusat Malaysia”)telah melaporkan bahawa ekonomi Malaysia tampil lebihmemberangsangkan dengan pertumbuhan keluaran dalam negarakasar (“KDNK”) berkembang kepada 6.3% dari 5.9% pada tahun2006. Pertumbuhan yang lebih tinggi di Malaysia disumbangkanoleh ekonomi domestik yang kukuh serta nilai dagangan yangtinggi dengan ekonomi Asia yang utuh.

Pertumbuhan ekonomi negara terus dipacu oleh permintaandomestik yang memberangsangkan dan peningkatan yangketara dalam perbelanjaan sektor awam. Pertumbuhan adalahmenyeluruh dengan lonjakan yang kukuh dicatatkan dalamsemua sektor ekonomi. Biarpun sektor pembinaanberkembang sebanyak 5.2% pada tahun 2007, namun pasaranhartanah agak perlahan akibat daripada sentimen berhati-hatipara pengguna berikutan daripada peningkatan harga bahanapi, peningkatan kadar faedah serta kriteria pembiayaanpengguna yang lebih ketat oleh institusi kewangan.

Kesan daripada persekitaran operasi yang lemah ini, JLand telahberhadapan dengan satu lagi tahun yang mencabar. Namundemikian, kami telah menumpukan usaha untuk mengatasi danberhadapan dengan masalah ini, dengan sekali lagimemperlihatkan ketahanan dan keupayaan kami untukmenyesuaikan diri dengan keadaan perniagaan yang berubah.Usaha ini telah menyaksikan kami bekerja secara proaktif untukmencari peluang baru bagi tujuan mengekalkan pertumbuhanKumpulan serta mendorong kami bergerak ke hadapan. Kamiturut berusaha mengawal kos operasi dan menyusun semulaproduk-produk kami dalam usaha untuk mengekalkan daya saing.

DEAR SHAREHOLDERS,

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We continued with our multi-pronged strategy that focused onadopting the right property mix and competitive pricing in all ourprojects while undertaking aggressive marketing and promotionalactivities. We also intensified our market research efforts tobetter understand the needs of the property market and meetcustomer expectations. We believe that these initiatives will notonly help us ride out the cyclical downturn, they will provide usa solid platform to launch out from when market conditionschange for the better.

FINANCIAL PERFORMANCE

In FY 2007, the Group’s revenue declined by 15.13% to RM63.36million from RM74.66 million in the preceding year while profitbefore tax (“PBT”) decreased to RM8.27 million in comparisonto PBT of RM22.10 million in 2006. The lower financialperformance was attributable to delays in the commencement ofprojects as well as lower property sales. However, this willchange in 2008 as the projects have been launched andconstruction has started.

The quality of JLand’s balance sheet remains fundamentallystrong as net tangible assets increased by RM0.5 million toRM640.47 million in 2007 over RM639.96 in 2006. JLand’s basicearnings per share, however fell to RM5.53 from RM14.66 lastyear. Our gearing to date remains at a minimal level and isrelatively the same as last year’s ratio (0.22 in 2007 against 0.16in 2006).

Kami meneruskan pelbagai strategi dengan tumpuan utamauntuk menyediakan hartanah bercampur yang tepat denganharga yang kompetitif dalam semua projek kami di sampingmelaksanakan aktiviti pemasaran dan promosi yang agresif.Kami turut mempertingkatkan usaha mengkaji pasaran bagimemahami dengan lebih mendalam keperluan pasaranhartanah dan memenuhi harapan para pelanggan. Kami yakinbahawa inisiatif ini bukan sahaja dapat membantu kami keluardari kitaran kemelesetan, malah ia turut menyediakan kamilandasan yang kukuh untuk melonjak naik apabila keadaanpasaran berubah lebih baik.

PRESTASI KEWANGAN

Bagi TK 2007, perolehan Kumpulan menurun sebanyak 15.13%kepada RM63.36 juta dari RM74.66 juta pada tahun sebelumnyasementara keuntungan sebelum cukai merosot kepada RM8.27juta berbanding dengan keuntungan sebelum cukai berjumlahRM22.10 juta pada tahun 2006. Prestasi kewangan yang perlahanadalah berpunca dari kelewatan memulakan projek serta jualanhartanah yang rendah. Namun begitu, keadaan ini akan berubahpada tahun 2008 memandangkan projek telah dilancarkan danpembinaan telah pun bermula.

Kualiti lembaran imbangan JLand pada asasnya kekal teguhdengan aset ketara bersih meningkat sebanyak RM0.5 jutakepada RM640.47 juta pada tahun 2007 berbanding RM639.96pada tahun 2006. Namun, pendapatan asas sesaham JLand jatuhkepada RM5.53 dari RM14.66 tahun lalu. Penggearan kamisehingga kini tetap di tahap minimum dan secara relatifnya masihsama seperti nisbah tahun lalu (0.22 pada tahun 2007 berbanding0.16 pada tahun 2006).


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DIVIDENDS

At JLand we are mindful of the support and loyalty shown byour shareholders and are consistently looking for ways to createvalue for them. For the year under review, the Board of Directorsis pleased to recommend a final dividend of 3% gross (lessMalaysian income tax at 26%) in respect of the financial year ended 31 December 2007, subject to shareholders’ approval atthe forthcoming Annual General Meeting. We value theconfidence our shareholders have placed in us and ask that youcontinue to have unwavering faith in us so that we can weatherany storm together.

CORPORATE DEVELOPMENTS

On 6 February 2008, the Company entered into a Sale andPurchase Agreement-cum-Subscription of Sale Agreement withWindsor Trade Holdings Sdn Bhd (“WTHSB”) for a 50.98%equity interest in WTHSB for a cash consideration of RM15million. WTHSB, through its 80% owned company Windsor TradeSdn Bhd, has been granted a 30-year concession for theoperation of Sandakan Integrated Trade Exchange Terminal(“SITExT”) under the “build, operate, own and transfer” concept.The remaining 20% is in the hands of the Sabah EconomicDevelopment Corporation. The acquisition is expected to becompleted by the second quarter of 2008.

The development cost of SITExT is estimated at RM315.0 million.It includes land cost, pre-development cost, construction ofinfrastructure and buildings and equipments. The barter terminalwill be equipped with facilities such as cargo and ferry jetties,CIQS Complex, storage facilities, bunkering, transit centre, hoteland Duty Free Complex, commercial and administration centre.

DIVIDEN

Di JLand, kami menyedari akan sokongan serta kesetiaan yangditunjukkan oleh para pemegang saham dan kami berterusanmencari jalan untuk menghasilkan nilai buat mereka. Pada tahundi bawah kajian, Lembaga Pengarah dengan sukacitanyamencadangkan dividen akhir sebanyak 3% kasar (ditolak 26%cukai pendapatan Malaysia) bagi tahun kewangan berakhir 31 Disember 2007, tertakluk kepada kelulusan para pemegangsaham pada Mesyuarat Agung Tahunan yang akan datang. Kamiamat menghargai keyakinan yang diberikan oleh para pemegangsaham kepada kami dan harapan kami agar anda terus memberisepenuh keyakinan kepada kami agar kita dapat bersama-bersama mengatasi sebarang rintangan.

PERKEMBANGAN KORPORAT

Pada 6 Februari 2008, Syarikat telah memeterai Perjanjian JualBeli merangkap Perjanjian Langganan Jualan dengan WindsorTrade Holdings Sdn Bhd (“WTHSB”) untuk 50.98%kepentingan ekuiti dalam WTHSB dengan pertimbanganbayaran sebanyak RM15 juta. WTHSB, menerusi WindsorTrade Sdn Bhd, iaitu 80% syarikat miliknya, telah diberikankonsesi 30 tahun untuk operasi “Sandakan Integrated TradeExchange Terminal” (“SITExT”) di bawah konsep “bina,operasi, milik dan pindah”. Baki 20% lagi berada di tanganPerbadanan Kemajuan Ekonomi Negeri Sabah. Pengambilalihanini dijangka selesai menjelang suku kedua tahun 2008.

Kos pembangunan SITExT dianggarkan berjumlah RM315.0 juta.Ini termasuk kos tanah, kos pra-pembangunan, pembinaanprasarana dan bangunan serta peralatan. Terminal barter ini akandilengkapi dengan kemudahan seperti pengkalan jeti kargo danferi, Kompleks CIQS, kemudahan penyimpanan, bunker, pusatpersinggahan, hotel dan Kompleks Bebas Cukai, pusat komersildan pentadbiran.


JOHOR LAND BERHAD


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The proposed development is endorsed by the StateGovernment as a major component of the Sabah DevelopmentCorridor initiative which was launched on 29 January 2008. The SITExT development is scheduled to be completed in 3years time.

Not only will this acquisition enable JLand to further broaden ourcurrent revenue, earnings and customer base, it positions us totap into the existing growth potential of logistics and barter tradeactivities within the fast-growing Sabah Development Corridor.

It is also in line with JLand’s strategy for earnings enhancementand stability by increasing the economic benefit fromcommercialisation of the barter trade operation as well as towiden and strengthen its regional footprint in Malaysia. It isexpected that the acquisition would increase the JLand Group’searnings per share in the near term and enhance its growth profile.

Due to the present political crisis affecting economic conditionsin Bangladesh we were forced to terminate our Marketing andTechnical Advice Agreement with Home Solution Ltd and AmicusProperties and Development Ltd. Similarly, our subsidiary JohorLand Manufacturing Sdn Bhd has also terminated its joint venture agreement with Metal Door Frame Co. Ltd for thesame reason.

Pembangunan yang dicadangkan ini telah disokong oleh KerajaanNegeri sebagai komponen terbesar inisiatif Koridor PembangunanSabah yang telah dilancarkan pada 29 Januari 2008.Pembangunan SITExT ini dijadualkan siap dalam tempoh 3 tahun.

Pengambilalihan ini bukan sekadar membolehkan JLandmemperluaskan lagi perolehan semasa, pendapatan dan asaspelanggan, ia turut memberi peluang kepada kami untukmeneroka potensi pertumbuhan aktiviti logistik dan perdaganganbarter yang tersedia dalam Koridor Pembangunan Sabah yangsedang pesat membangun ini.

Ia juga adalah selaras dengan strategi JLand untuk menambahdan memantapkan perolehan dengan meningkatkan faedahekonomi dari pengkomersilan operasi perdagangan barter disamping meluas dan memperkukuhkan jangkauan kawasan diMalaysia. Pengambilalihan ini dijangka dapat menaikkan perolehansesaham Kumpulan JLand dalam tempoh terdekat sertameningkatkan profil pertumbuhannya.

Akibat daripada krisis politik semasa yang menjejaskan keadaanekonomi di Bangladesh, kami terpaksa menamatkan PerjanjianKhidmat Nasihat Pemasaran dan Teknikal kami dengan HomeSolution Ltd dan Amicus Properties and Development Ltd. Atassebab yang sama juga, subsidiari kami iaitu Johor LandManufacturing Sdn Bhd turut menamatkan perjanjianusahasamanya dengan Metal Door Frame Co. Ltd.

020304

17.418.6

36.201 9.6

060705 22.3

22.18.3

989900

3.210.19.2

JOHOR LAND BERHAD


25Group Profit Before Taxation/Keuntungan Sebelum Cukai Kumpulan

RM million/RM juta


JOHOR LAND BERHAD


26

OPERATIONAL HIGHLIGHTS

CORE BUSINESS – PROPERTY DEVELOPMENT

JLand’s operating philosophy calls for us to place a high priorityon meeting the needs of our customers. We never forget whowe are working for. At JLand, the customer always comes first.Where other developers merely build houses, we create homes,sustain communities and enrich lives. We believe in holisticapproach in all that we do. Quality is a top priority and creativityis our forte. With a number of community projects taking centrestage, we are pleased to present these latest updates for theyear in focus.

PASIR GUDANG DIVISION

Taman Bukit Dahlia

Taman Bukit Dahlia, a 417-acre development, is our premierproject in Pasir Gudang. This development, once completed bythe end of 2009 will house 4,114 units of various types, includingterraced houses, semi-detached houses, bungalows andcommercial complexes. Taman Bukit Dahlia is strategicallylocated between Masai and Pasir Gudang. The many amenitiesin the vicinity include the landscaped Tasik Perdana, schools, apolytechnic, a police station, a hospital, banks, hypermarkets,racing tracks, a sports complex and Bukit Layang-Layang wherethe Annual International Kites Festival is held.

The year saw several new projects at Taman Bukit Dahlia beinglaunched or undergoing construction. Phase 1 and 2 of the 260units of single storey Kristal terraced houses were launched inMarch and October 2007 respectively while the Phase 2 of the120 units of double storey Serene terraced houses was launchedin November 2007. The take-up on these houses is proceedingsmoothly as is sales for our 14 units of double storey shop officedevelopment launched in July 2007. In early 2008, 190 units ofdouble storey Damai terraced houses were launched while 46units of the double storey Perdana Phase 2 semi-detachedhouses as well as 114 units of double storey Prima terracedhouses are scheduled for launch in the second quarter of 2008.

TINJAUAN OPERASI

BISNES TERAS – PEMBANGUNAN HARTANAH

Falsafah operasi JLand adalah meletakkan keutamaan yang tinggidalam memenuhi keperluan para pelanggan. Kami tidak pernahlupa untuk siapa kami bekerja. Di JLand, pelanggan sentiasa ditangga teratas. Di mana para pemaju lain sekadar membinarumah, kami mencipta kediaman, mengekalkan komuniti danmemperkayakan kehidupan. Kami percaya dengan pendekatanholistik dalam setiap apa yang kami lakukan. Kualiti adalahkeutamaan kami dan kreativiti merupakan kepakaran kami.Dengan beberapa projek komuniti yang menjadi tumpuan, kamidengan sukacitanya membentangkan perkembangan terkini bagitahun di bawah kajian.

BAHAGIAN PASIR GUDANG

Taman Bukit Dahlia

Pembangunan seluas 417 ekar di Taman Bukit Dahlia merupakanprojek utama kami di Pasir Gudang. Pembangunan ini, apabilasiap menjelang akhir 2009, akan mengandungi 4,114 unit rumahpelbagai jenis, termasuk rumah teres, rumah berkembar, banglodan kompleks komersil. Taman Bukit Dahlia terletak di kedudukanstrategik di antara Masai dan Pasir Gudang. Pelbagai kemudahanyang tersedia di kawasan sekitarnya merangkumi Tasik Perdanayang berlanskap, sekolah-sekolah, politeknik, balai polis, hospital,bank-bank, pasar raya besar, litar perlumbaan, kompleks sukandan Bukit Layang-Layang di mana Festival Layang-LayangAntarabangsa Tahunan diadakan.

Tahun ini telah menyaksikan beberapa projek baru di Taman BukitDahlia dilancarkan atau sedang dalam pembinaan. Fasa 1 dan 2bagi 260 unit rumah teres satu tingkat Kristal, masing-masingtelah dilancarkan pada Mac dan Oktober 2007, sementara Fasa 2bagi 120 unit rumah teres dua tingkat Serene telah dilancarkanpada November 2007. Kadar pembelian rumah-rumah ini adalahmenggalakkan dan begitu juga dengan jualan 14 unit kedaipejabat dua tingkat yang dilancarkan pada Julai 2007. Pada awaltahun 2008, 190 unit rumah teres dua tingkat Damai telahdilancarkan manakala 46 unit rumah berkembar dua tingkatPerdana Fasa 2 serta 114 unit rumah teres dua tingkat Primadijadual akan dilancarkan pada suku kedua tahun 2008.

JOHOR LAND BERHAD


27

BANDAR TIRAM DIVISION

Bandar Tiram and Taman Bukit Tiram

Bandar Tiram is one of JLand’s ongoing development project inUlu Tiram. This development measures 1,200 acres will consistof 12,300 units of houses, neighbourhood and town centre shopunits upon its completion in 2020. The entire project has a totalgross development value (“GDV”) of RM2.6 billion and aprojected gross profit of RM800 million. The first phase ofBandar Tiram comprises 1,574 residential and commercial unitswith an estimated GDV of RM200 million. Come the secondquarter of 2008, 83 units of single storey terraced houses pricedfrom RM143,000 onwards will be launched.

Currently, JLand through its subsidiary, Advance Development SdnBhd is also developing Taman Bukit Tiram 3, which is a mixeddevelopment project comprising 505 units. In 2007, 195 units ofdouble storey Tulip terraced houses and 18 units of double storeyLavender terraced houses within Taman Bukit Tiram 3, werecompleted and the CFOs received.

378 units of single storey Daisy terraced homes in Taman BukitTiram 2 were launched in December 2007. Several other newprojects are underway or scheduled to be launched in 2008. Theyinclude 14 units of double storey shop offices at Taman BukitTiram 2 as well as 11 units of three storey shop offices and 20units of two storey semi-detached at Taman Bukit Tiram 3.

BAHAGIAN BANDAR TIRAM

Bandar Tiram dan Taman Bukit Tiram

Bandar Tiram merupakan salah satu projek pembangunan JLandyang sedang dilaksanakan di Ulu Tiram. Pembangunan yangberkeluasan 1,200 ekar ini akan merangkumi 12,300 unit rumah,kawasan perjiranan dan unit-unit kedai pusat bandar apabila iasiap pada tahun 2020. Keseluruhan projek ini mempunyai nilaipembangunan kasar (“GDV”) berjumlah RM2.6 bilion dan unjurankeuntungan kasar berjumlah RM800 juta. Fasa pertama BandarTiram merangkumi 1,574 unit kediaman dan komersil dengananggaran GDV RM200 juta. Menjelang suku kedua tahun 2008,83 unit rumah teres satu tingkat yang berharga RM143,000 keatas akan dilancarkan.

Kini, JLand menerusi subsidiarinya, Advance Development SdnBhd turut membangunkan Taman Bukit Tiram 3, iaitu projekpembangunan bercampur yang merangkumi 505 unit. Pada tahun2007, 195 unit rumah teres dua tingkat Tulip dan 18 unit rumahteres dua tingkat Lavender dalam kawasan Taman Bukit Tiram 3,telah disiapkan dan menerima Sijl Layak Menduduki (CFO).

Sebanyak 378 unit rumah teres satu tingkat Daisy di Taman BukitTiram 2 telah dilancarkan pada Disember 2007. Beberapa projekbaru lain sedang dibangunkan atau dijadual akan dilancarkan padatahun 2008. Ia termasuk 14 unit kedai pejabat dua tingkat diTaman Bukit Tiram 2 serta 11 unit kedai pejabat tiga tingkat dan20 unit rumah berkembar dua tingkat di Taman Bukit Tiram 3.

JOHOR LAND BERHAD


28


989900

38.351.9

45.9

02030405

62.472.4

108.488.840.0

0607

88.874.7

63.401

JOHOR LAND BERHAD


29

BANDAR DATO’ ONN DIVISION

Bandar Dato’ Onn

JLand has grown to be a dominant player in the propertybusiness in Johor. Our strategy of offering innovative andattractive products continues to hold us in good stead. BandarDato’ Onn is one such offering. Comprising 1,514 acres offreehold land, this premier development which is located only 12km from the Johor Bahru city centre, has been planned as aself-contained city and a place for more than 90,000 residentsto call home. The township is scheduled to be completed overa 10 to 15-year period and will feature some 17,800 propertieswith expected gross sales and gross profit of RM4.0 billion andRM1.2 billion respectively.

Featuring exclusive neighbourhoods and a vibrant commercialhub, Bandar Dato’ Onn is set to be one of the most beautifuland modern townships in Southern Malaysia to live in. TheBandar Dato’ Onn township is being developed based on aneighbourhood concept and is accessible via a dedicatedinterchange that provides direct uninterrupted access to thetownship. There will be 19 exclusive neighbourhoods eachcarefully planned to bring out the finest aspects of communityliving. One of the most distinctive features of the township isthe emphasis on green areas, with linear and recreational parksplanned throughout. Within the township, a regional commercialhub of 118 acres is set to become the nerve centre of BandarDato’ Onn.

BAHAGIAN BANDAR DATO’ ONN

Bandar Dato’ Onn

JLand telah berkembang menjadi pemaju paling unggul dalambisnes hartanah di Johor. Strategi kami dalam menawarkanproduk yang inovatif dan menarik terus memberi kelebihankepada kami dan Bandar Dato’ Onn merupakan salah satuseumpamanya yang kami tawarkan. Merangkumi 1,514 ekartanah berpegangan bebas, pembangunan utama yang terletakhanya 12 km dari Bandaraya Johor Bahru ini telah dirancangsebagai sebuah bandar serba lengkap dan menjadi tumpuan bagilebih 90,000 penduduk yang akan menjadikannya kediaman.Perbandaran ini dijadualkan siap dalam tempoh 10 hingga 15tahun akan datang dan akan turut menyediakan lebih kurang17,800 hartanah dengan jangkaan jualan kasar dan keuntungankasar, masing-masing sebanyak RM4.0 bilion dan RM1.2 bilion.

Dengan menampilkan perjiranan yang eksklusif dan hab komersilyang meriah, Bandar Dato’ Onn bakal menjadi salah sebuahperbandaran yang paling indah serta moden untuk didiami diSelatan Malaysia. Kawasan perbandaran Bandar Dato’ Onnsedang dibina berdasarkan konsep perjiranan dan boleh diaksesmelalui persimpangan bertingkat yang menyediakan laluan terustanpa gangguan ke bandar. Sejumlah 19 perjiranan eksklusif yangmana setiap satunya telah dirancang dengan teliti bagimenyerlahkan aspek terhebat dalam kehidupan berkomuniti.Salah satu ciri tersendiri yang paling ketara bagi perbandaran iniialah penekanan terhadap kawasan hijau, dengan taman-tamanlinear dan taman rekreasi dirancang disekitarnya. Di dalamperbandaran ini pula, hab komersil wilayah seluas 118 ekar bakalmenjadi nadi penggerak kepada Bandar Dato’ Onn.

Group Revenue/Perolehan Kumpulan

RM million/RM juta

JOHOR LAND BERHAD


30


Over 2007, JLand completed several show houses at BandarDato’ Onn making them available for public viewing as well aslaunched different phases of distinctively-styled properties, all ofthem receiving strong interest. Neighbourhood 10 is the firstphase in Bandar Dato’ Onn. It consists of 662 units of doublestorey terraced and double storey semi-detached houses with anestimated GDV of RM178 million. Phase 1a launched in February2007, comprises 181 units of the double storey Celocia 1 & 3and Cleome 1 & 3 terraced houses with an estimated GDV ofRM40 million. Phase 1b launched in September 2007 consists of36 units of the Emerald double storey semi-detached houseswith land area of 40’ x 80’ and 78 units of double storey Celocia2 & Cleome 2 terraced houses with an estimated GDV of RM36million. Phase 2 saw another 250 units of double storey terracedhouses valued at RM60 million being launched in January 2008.

The six types of double storey terraced houses that have beenlaunched at Bandar Dato’ Onn to date come with land areas of20’ x 70’ and 24’ x 70’ and built-up areas range from 1,600 sq.ft. to 2,400 sq. ft. The selling price per unit starts fromRM183,650 for Bumiputra lots. The built-up area of the doublestorey semi-detached house is 2,955 sq. ft. with the selling pricestarting from RM378,250 for Bumiputra lots. Another 95 units ofdouble storey terraced houses and 22 units of double storeysemi-detached houses are scheduled to be launched in July2008. To date, a total of 509 units of double storey terraced and36 units of double storey semi-detached properties with GDV of RM136 million have been launched at Bandar Dato’ Onn.

Sepanjang tahun 2007, JLand telah menyiapkan beberaparumah contoh di Bandar Dato’ Onn untuk dilawati oleh orangramai dan juga pelancaran fasa-fasa hartanah yang berbezadengan ciri-ciri tersendiri, yang mana kesemuanya berjayamenarik minat orang ramai. Perjiranan 10 merupakan fasapertama di Bandar Dato’ Onn. Ia terdiri daripada 662 unitteres dua tingkat dan rumah berkembar dua tingkat dengananggaran GDV RM178 juta. Fasa 1a yang dilancarkan padaFebruari 2007, merangkumi 181 unit rumah teres dua tingkatCelocia 1 & 3 dan Cleome 1 & 3 dengan anggaran GDVRM40 juta. Fasa 1b yang dilancarkan pada September 2007terdiri daripada 36 unit rumah berkembar dua tingkat Emeralddengan keluasan tanah 40’ x 80’ dan 78 unit rumah teres duatingkat Celocia 2 & Cleome 2 dengan anggaran GDV RM36juta. Fasa 2 telah menyaksikan 250 unit lagi rumah teres duatingkat bernilai RM60 juta dilancarkan pada Januari 2008.

Enam jenis rumah teres dua tingkat yang telah dilancarkan diBandar Dato’ Onn sehingga kini, dibina dengan keluasan tanah20’ x 70’ dan 24’ x 70’ dan keluasan binaan dari 1,600 kakipersegi hingga 2,400 kaki persegi. Harga jualan seunitbermula dari RM183,650 untuk lot Bumiputera. Keluasanbinaan rumah berkembar dua tingkat ialah 2,955 kaki persegidengan harga jualan bermula dari RM378,250 untuk lotBumiputera. 95 unit lagi rumah teres dua tingkat dan 22 unitrumah berkembar dua tingkat dijadual akan dilancarkan padaJulai 2008. Sehingga kini, sejumlah 509 unit rumah teres duatingkat dan 36 unit rumah berkembar dua tingkat dengan GDVRM136 juta telah dilancarkan di Bandar Dato’ Onn.

JOHOR LAND BERHAD


31

OTHER BUSINESSES

2007 also saw us garnering rental of some RM1,941,952 fromseveral development projects including properties at TamanKenanga and Taman Cendana and shop offices at TebrauBusiness Park, Senai Commercial Park and a factory as well asKompleks Mutiara Johor Land which provides recreational andsport facilities.

We currently hold a 30.07% stake in Revertex (Malaysia) SdnBhd (“Revertex”) one of the world’s largest producers ofspeciality natural rubber latex concentrates and industrialchemicals. For 2007, both Revertex’s revenue and PBT improvedto RM531.00 million and RM41.71 million respectively againstrevenue of RM470.20 million and PBT of RM38.37 million in 2006.

HUMAN CAPITAL DEVELOPMENT

At JLand, we view our people as one of our greatest assets andare committed to developing the full potential of our humancapital. The basic job requirement at JLand calls for theemployment of support staff with a SPM certificate, juniorexecutives with a diploma whilst executives and above with abasic degree. Management level personnel are also encouragedto have an MBA. Excellent performers without the requiredacademic background may also be promoted depending onperformance, vacancies, recommendations from their superiorsand approval from top management. At every step of the waywe are continuously looking out for the people that make usproud to do what we do. Our human capital developmentsystem is a two-way relationship. We provide the opportunity forall our employees to develop to their highest potential andcherish the input, hard work, knowledge and skills brought to usby every individual working hand in hand with JLand. We like tothink of it as a meeting of minds and are proud to say that wehave managed to establish a powerful, self motivated andindependent thinking workforce that is robust and competitive.The way we achieve this is through well-planned trainingprogrammes that aim to enhance the competencies of JLand’shuman capital.

BISNES-BISNES LAIN

Tahun 2007 turut menyaksikan kami memperolehi pendapatansewa berjumlah RM1,941,952 daripada beberapa projekpembangunan termasuk hartanah di Taman Kenanga dan TamanCendana serta kedai pejabat di Tebrau Business Park, SenaiCommercial Park dan kilang serta Kompleks Mutiara Johor Landyang menyediakan kemudahan sukan dan rekreasi.

Buat masa ini, kami memiliki 30.07% kepentingan di dalamRevertex (Malaysia) Sdn Bhd (“Revertex”), iaitu salah sebuahpengeluar pati susu getah asli dan bahan kimia industri terbesardi dunia. Bagi tahun 2007, perolehan Revertex dan keuntungansebelum cukai telah meningkat, masing-masing kepadaRM531.00 juta dan RM41.71 juta berbanding perolehan sebanyakRM470.20 juta dan keuntungan sebelum cukai RM38.37 jutabagi tahun 2006.

PEMBANGUNAN TENAGA INSAN

Di JLand, kami meletakkan anggota pekerja kami sebagai asetterpenting dan kami komited terhadap membangunkansepenuhnya potensi tenaga insan kami. Kelayakan kerja asas diJLand memerlukan pengambilan anggota pekerja sokongandengan sijil SPM, Penolong Eksekutif dengan diploma, manakalajawatan eksekutif dan ke atas memerlukan ijazah asas. Anggotapekerja peringkat pengurusan turut digalakkan memiliki MBA.Anggota pekerja yang cemerlang walaupun tanpa memiliki latarbelakang akademik yang dikehendaki boleh dipertimbangkanuntuk kenaikan pangkat bergantung kepada prestasi, kekosonganjawatan, sokongan dari Ketua dan kelulusan dari pengurusanatasan. Dalam setiap langkah yang diambil, kami terus mencariindividu yang boleh membuatkan kami berbangga dengan apayang kami lakukan. Sistem pembangunan tenaga insan kamimerupakan perhubungan dua hala. Kami menyediakan peluanguntuk semua anggota pekerja mengembangkan potensi terbaikmereka dan kami menghargai segala input, kegigihan,pengetahuan dan kemahiran yang dibawakan kepada kami olehsetiap individu yang berganding bahu bersama JLand. Kamimenganggapnya sebagai suatu persepakatan yang utuh dandengan bangganya kami menyatakan bahawa kami berjayamewujudkan anggota pekerja yang berkeupayaan, memilikimotivasi diri dan tajam fikiran serta teguh dan berdaya saing.Kami mencapai semua ini melalui program latihan yangterancang dengan mensasarkan peningkatan kecekapan tenagainsan di JLand.

JOHOR LAND BERHAD


32


2007 saw us offering all levels of employees several public andin-house training programmes to equip them with newknowledge and skills as well as to upgrade existingcompetencies. These training programmes focused on the issuesof leadership, project management, customer focus andteamwork. Among the many special programmes organised in2007 was an extensive effective presentation skills programmefor our senior management and extensive follow-throughsessions. This programme will be extended to middlemanagement and senior executive employees in 2008. Ourprogrammes also focused on addressing the issues ofcompetency management, customer service and the concept of“Kerja Sebagai Ibadah” – work and career as a means of doinggood and attain spiritual fulfilment. A more technical-orientedprogramme, which sought to tackle quality and productivityissues at project sites served as a refresher course for ourtechnical personnel.

The year saw us investing on human capital training with anaverage of 50.2 training hours per person for all 143 of ouremployees. JLand’s Social and Recreation Club also undertookvarious fun-filled and family-oriented activities over the course ofthe year.

Tahun 2007 telah menyaksikan kami menawarkan kepada semuaperingkat anggota pekerja beberapa program latihan luaran dandalaman bagi memperlengkapkan mereka dengan pengetahuanserta kemahiran baru di samping memantapkan lagi kecekapanyang sedia ada. Program latihan ini memfokuskan kepada isu-isukepimpinan, pengurusan projek, tumpuan pelanggan dankerjasama berpasukan. Di antara program-program khas yangdikendalikan pada tahun 2007 ialah program kemahiranpersembahan berkesan untuk pihak pengurusan kanan dan sesilanjutan yang menyeluruh. Program ini akan diperluaskan ke pihakpengurusan pertengahan serta para eksekutif kanan pada tahun2008. Program kami turut memfokuskan kepada isu-isupengurusan kecekapan, khidmat pelanggan serta konsep “KerjaSebagai Ibadah” – iaitu kerja dan kerjaya sebagai wadahmembuat kebaikan dan mendapat kepuasan rohaniah. Programyang lebih berorientasikan teknikal dan penyelesaian kepada isu-isu kualiti dan produktiviti di tapak projek telah dijadikansebagai kursus peningkatan kefahaman untuk anggota pekerjateknikal kami.

Tahun ini juga menyaksikan kami melabur dalam latihantenaga insan dengan purata 50.2 jam latihan setiap seoranguntuk kesemua 143 orang anggota pekerja kami. KelabKebajikan dan Rekreasi JLand turut melaksanakan pelbagaiaktiviti yang menyeronokkan dan berbentuk kekeluargaan disepanjang tahun.

9899

1.210.3

989900

1.210.3

5.6

020304

11.514.9

26.301 6.9

060705 13.7

14.75.5

JOHOR LAND BERHAD


33Group Basic Earning Per Share/Pendapatan Asas Sesaham Kumpulan

Sen/Sen

QUALITY IMPROVEMENT INITIATIVES

JLand’s quality management initiatives form an integral part ofour business and underscore our commitment to seekingcontinuous improvement in all aspects of business performance.As we focus on being quality-inclined and integrating this in keybusiness processes, our internal work culture is strengthenedand we are able to effectively monitor and measure results. Weare committed to realising the highest standards of quality in theproducts and services we deliver and our quality managementsystem ensures that our focus on competitive pricing, highquality products, on-time delivery and excellent customer serviceis maintained throughout the length and breadth of our organisation.

Even as we actively pursue our quality agenda, we bring intoplay JLand’s Innovative Creative Circle (ICC) and SuggestionScheme. On top of this, the Quality Programme with coachingsessions for ICC groups is held twice a year. These sessionsfocus on the use of up-to-date decision-making tools and techniques.

Our quality improvement initiatives have not only helped us todeliver better quality products and services, they have helpedelevate the confidence and esteem of JLand’s staff and havecontributed significantly to building a stronger team of high-achievers. Over 2007, our ICC teams continued to give of theirbest at national-level quality convention with five of our teamsreceiving the Three Gold Star Awards at the 2007 National ICC Convention.

JOHOR LAND BERHAD


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INISIATIF KECEMERLANGAN KUALITI

Inisiatif pengurusan kualiti JLand membentuk sebahagian pentingbisnes kami dan kami sentiasa komited untuk mencaripembaikan yang berterusan dalam semua aspek prestasiperniagaan. Sedang kami memberikan penumpuan kepadakecenderungan terhadap kualiti dan menyerapkannya ke dalamproses bisnes utama, budaya kerja dalaman kami turutdiperkukuhkan dan kami berupaya memantau serta mengukurhasilnya dengan berkesan. Kami komited dalam merealisasikanstandard kualiti tertinggi di dalam produk dan perkhidmatan yangkami berikan dan sistem pengurusan kami memastikan bahawatumpuan kami terhadap penetapan harga yang kompetitif, produkberkualiti tinggi, penghantaran yang tepat pada masanya sertaperkhidmatan pelanggan yang cemerlang dikekalkan di setiapaspek organisasi.

Kami secara aktif meneruskan agenda kualiti seperti InnovativeCreative Circle (ICC) dan Skim Cadangan. Selain itu, programkualiti dengan sesi bimbingan untuk kumpulan ICC diadakan duakali setahun. Sesi tersebut menumpukan kepada penggunaanperalatan serta teknik membuat keputusan yang terkini.

Inisiatif penambahbaikan kualiti kami bukan sekadar membantukami memberikan kualiti produk serta perkhidmatan yang lebihbaik, malah ia telah membantu meningkatkan keyakinan dansaling menghargai sesama anggota pekerja seterusnya dapatmenyumbang kepada pembinaan sebuah pasukan mantap yangterdiri daripada mereka yang berjaya meraih kejayaan cemerlang.Sepanjang tahun 2007, pasukan ICC kami terus memberikan yangterbaik dalam konvensyen kualiti di peringkat kebangsaan denganlima daripada pasukan kami menerima Anugerah Emas TigaBintang di Konvensyen ICC Kebangsaan 2007.

COMMITMENT TO CORPORATE SOCIAL RESPONSIBILITY

JLand takes its commitment to corporate social responsibility(“CSR”) seriously. Even as we reach out to the communityaround us and the nation at large through contributing to socialand charitable projects, we in turn are touched by the many liveswe have impacted and have become a better company becauseof this. The year 2007 saw us undertaking several impactful CSRactivities. Our efforts included the donation of RM120,000.00 tothe Darul Hanan Orphanage in Pasir Gudang which houses 33boys and 23 girls. To date we have contributed more than RM1.7million to the orphanage home since its establishment. Inaddition, we have also donated RM35,000.00 to the TabungTijarah Ramadan Session 3 for “Tijarah Ramadan”. JohorCorporation and Jabatan Kemajuan Islam Malaysia are behind thisTV programme which is aired during the Ramadan fasting monthto help the poor and less privileged in the community.

As a major sponsor for Tunas Bistari in 2007 we providedRM150,000.00 to “The Entrepreneurs Programme” which hasbeen organised by Johor Corporation together with the EducationDepartment of Johor since 1992. This programme sees studentsfrom secondary schools throughout Johor coming together to setup their own companies and acquire the requisite knowledgeand experience to become good entrepreneurs. To date, JLandhas contributed more than RM1.0 million to this programmesince 2001. We also supported the International Kites FestivalLayang-Layang in Pasir Gudang and a golf tournament for thePasir Gudang Charity Fund in aid of the needy and less fortunategroups in the community, among numerous other activities.

JOHOR LAND BERHAD


35

KOMITMEN TERHADAP TANGGUNGJAWAB SOSIAL

KORPORAT

JLand memandang serius komitmennya terhadap tanggungjawabsosial korporat (“CSR”). Biarpun kami menyumbang kepadakomuniti dan negara secara amnya melalui projek-projek sosialdan kebajikan, kami juga amat berbesar hati dengan sumbanganyang telah kami hulurkan dalam kehidupan begitu ramai insandan kerananya, kami telah menjadi sebuah syarikat yang lebihprihatin. Tahun 2007 menyaksikan kami melaksanakan beberapaaktiviti CSR yang meninggalkan kesan mendalam. Usaha kamitermasuk sumbangan RM120,000.00 kepada Rumah Anak YatimDarul Hanan di Pasir Gudang yang menempatkan seramai 33kanak-kanak lelaki dan 23 kanak-kanak perempuan. Sejakpenubuhannya dan sehingga kini, kami telah menyumbang lebihdari RM1.7 juta kepada rumah anak-anak yatim. Malah kami jugatelah menyumbang RM35,000.00 kepada Tabung TijarahRamadan Sesi 3 untuk “Tijarah Ramadan”. Johor Corporation danJabatan Kemajuan Islam Malaysia adalah mereka yang berada dibelakang tabir program televisyen yang disiarkan sepanjang bulanRamadan ini bagi membantu golongan miskin dan tidakberkemampuan dalam komuniti.

Sebagai penaja utama Tunas Bistari pada tahun 2007, kamitelah menyumbang RM150,000.00 kepada ProgramPembangunan Usahawan yang dianjurkan oleh JohorCorporation dengan kerjasama Jabatan Pelajaran Johor sejaktahun 1992. Program ini menyaksikan para pelajar dari sekolahmenengah di seluruh Johor bekerjasama menubuhkan syarikatmereka sendiri dan meraih pengetahuan serta pengalamanyang diperlukan untuk menjadi usahawan berjaya. Sejak tahun2001 dan sehingga kini, JLand telah menyumbang lebih dariRM1.0 juta kepada program tersebut. Selain daripada itu, kamiturut menyokong Festival Layang-layang Antarabangsa di PasirGudang serta kejohanan golf untuk Dana Bakti Pasir Gudangbagi membantu golongan yang memerlukan dan kurangbernasib baik dalam komuniti.

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OUTLOOK AND PROSPECTS

OPERATING ENVIRONMENT

In spite of the uncertainties clouding the global economy, theCentral Bank of Malaysia forecasts that growth prospects for theMalaysian economy will remain favourable in 2008. The Malaysianeconomy is expected to register robust GDP growth in 2008 andto expand between 6% and 6.5%. The Malaysian Government’sinitiatives to develop the many economic corridors such as theIskandar Malaysia in the South, the Northern Corridor EconomicRegion (“NCER”) in the North, the East Coast Economic Region(“ECER”) in the East and the Sabah Development Corridor(“SDC”) and Sarawak Corridor of Renewable Energy (“SCORE”)in East Malaysia, show its commitment to make Malaysia anattractive investment destination. Under the Iskandar Malaysia,various mega projects are expected to kick off while theeconomy and the construction sector are expected to continuereaping the benefits of Ninth Malaysia Plan (“9MP”)infrastructure roll-out.

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PROSPEK DAN MASA DEPAN

PERSEKITARAN OPERASI

Biarpun suasana ketidakpastian menyelubungi ekonomi global, namun Bank Pusat Malaysia meramalkan prospek pertumbuhan Ekonomi Malaysia akan kekalmemberangsangkan bagi tahun 2008. Ekonomi Malaysiadijangka mencatatkan pertumbuhan KDNK yang teguh padatahun 2008 dan akan berkembang antara 6% dan 6.5%.Usaha Kerajaan Malaysia untuk membangunkan beberapakoridor ekonomi seperti Iskandar Malaysia di Selatan, WilayahEkonomi Koridor Utara (“NCER”) di Utara, Wilayah EkonomiPantai Timur (“ECER”) di Timur dan Koridor PembangunanSabah (“SDC”) serta Koridor Pembaharuan Tenaga Sarawak(“SCORE”) di Malaysia Timur memperlihatkan komitmennyauntuk menjadikan Malaysia destinasi pelaburan yang menarik.Di bawah Iskandar Malaysia, pelbagai projek mega dijangkaakan dimulakan manakala ekonomi dan sektor pembangunanpula dijangka akan terus meraih faedah dari pelancaranprasarana Rancangan Malaysia Kesembilan (“RMK9”).

While the credit crunch stemming from the US sub-primemortgage crisis impacted negatively on Malaysia’s propertymarket in 2007, going forward, the prospects for the Malaysianproperty market remain optimistic. The Government has put inplace various measures for the property market and announceda series of financial incentives and system enhancements thatwill enhance the property market as well as contribute to morestable property prices. The construction sector is expected to bestimulated by incentives such as the build-and-sell concept aswell as establishment of One Stop Centres (“OSCs”) for buildingand development planning approval. Given the abundance ofincentives, the construction sector is expected to expand by6.3% in 2008. On top of this, members of the EmployeesProvident Fund are now allowed to make a withdrawal everymonth to reduce their monthly installments or finance theirhousing loans. Also, with the removal of the Real Property GainsTax (“RPGT”) in early 2007, foreign home buyers can nowpurchase as many properties as they want be it for investmentor other purposes. These and other conditions are expected tohave a direct positive effect on our business.

ISKANDAR MALAYSIA STIMULUS

The launch of the Iskandar Malaysia and the investment of morethan RM4 billion under planned 9MP infrastructural projects forthe Iskandar Malaysia will help ensure strong and sustainableeconomic growth for the region in which JLand operates. TheIskandar Malaysia advocates the growth of six core sectors,namely tourism, education, healthcare, logistics, creativeindustries and financial services and has as its key selling pointits strategic location. Located midway between the twoemerging economic powers of China and India, the IskandarMalaysia is expected to benefit from a catchment area thatincludes the Asia-Pacific and Middle East regions as well as theIndian sub-continent. Some 800,000 jobs are expected to becreated in the Iskandar Malaysia over the next 20 years as theIskandar Malaysia is turned into a logistics hub and a centre forthe development of service industries including the medical,financial and recreational sectors.

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Sungguhpun situasi kritikal kredit yang berpunca dari krisis gadaijanji subprima Amerika Syarikat memberi kesan negatif kepadapasaran hartanah Malaysia pada tahun 2007, namun dalammelangkah ke hadapan, prospek bagi pasaran hartanah Malaysiakekal optimistik. Kerajaan telah mewujudkan pelbagai langkahbagi pasaran hartanah dan mengumumkan beberapa siri insentifkewangan dan pemantapan sistem yang akan menyuburkanpasaran hartanah serta menyumbang kepada kestabilan hargahartanah. Sektor pembinaan dijangka akan dirangsang oleh usaha-usaha seperti konsep bina dan jual serta penubuhan PusatSehenti (“OSC”) untuk kelulusan perancangan pembinaan danpembangunan. Bersandarkan kepada pelbagai bentuk insentifinilah, sektor pembinaan dijangka berkembang sebanyak 6.3%pada tahun 2008. Selain itu, para pencarum Kumpulan WangSimpanan Pekerja kini dibenarkan membuat pengeluaran setiapbulan untuk mengurangkan bayaran ansuran bulanan ataupembiayaan pinjaman perumahan mereka. Malah, denganpenghapusan Cukai Keuntungan Hartanah (“RPGT”) pada awal2007, pembeli rumah warga asing kini boleh membeli sebanyakmana hartanah yang diingini sama ada untuk pelaburan atautujuan lain. Situasi ini dan perkara-perkara lain dijangka memberikesan positif kepada bisnes kami.

RANGSANGAN ISKANDAR MALAYSIA

Pelancaran Iskandar Malaysia serta pelaburan yang melebihi RM4bilion di bawah projek prasarana RMK9 untuk Iskandar Malaysiaakan membantu memastikan pertumbuhan ekonomi yang teguhserta mapan bagi kawasan di mana JLand beroperasi. IskandarMalaysia mendorong pertumbuhan enam sektor teras, khususnyapelancongan, pendidikan, kesihatan, logistik, industri kreatif danperkhidmatan kewangan dan faktor utamanya, ialah kedudukannyayang strategik. Terletak di tengah-tengah, antara dua kuasaekonomi yang sedang pesat membangun, iaitu China dan India,Iskandar Malaysia dijangka meraih manfaat dari kawasan tadahanyang merangkumi rantau Asia Pasifik dan Timur Tengah sertasubbenua India. Anggaran 800,000 peluang pekerjaan dijangkaakan diwujudkan di Iskandar Malaysia sepanjang 20 tahun akandatang apabila Iskandar Malaysia bertukar menjadi hab serta pusatpembangunan industri perkhidmatan, termasuk sektor perubatan,kewangan dan rekreasi.

The primary focus of development in the Iskandar Malaysia willbe concentrated in five nodes or flagship areas, namely theJohor Bahru City Centre, Nusajaya, Western Gate Development(Tanjung Pelepas/Second Link), Eastern Gate Development(Tanjung Langsat/Pasir Gudang) and Senai-Skudai. These flagshipsareas are intended to create the right kind of spillover activitiesfor the region. The Johor Bahru City Centre flagship area coversJLand’s three major land banks located at Tebrau, Ulu Tiram andPasir Gudang.

As a result of these initiatives, Johor will be transformed into aworld-class community and Johor’s property market will bestimulated, benefiting JLand altogether. Similarly, the migration ofpeople from other states to Johor Bahru in search of jobopportunities will also significantly boost residential demand inJohor Bahru. Based on the Ministry of Finance’s Property MarketReport, for the first half of 2007 the number of overhang unitsin Malaysia had inched up to 26,432 units compared to 22,185units in the first half of 2006. Although for some areas in Johor,particularly the medium-cost housing market are still facing asupply overhang, demand will continue to remain strong instrategic locations and we believe that our projects will benefitfrom this. As we also firmly believe that only the right productsshould be developed at the right locations and at the right time,we envisage that any overhang will pose a minimal threat toJLand’s operations.

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Fokus utama pembangunan di Iskandar Malaysia akan tertumpukepada lima kawasan penting, khasnya Bandaraya Johor Bahru,Nusajaya, “Western Gate Development” (Tanjung Pelepas/LinkKedua), “Eastern Gate Development” (Tanjung Langsat/PasirGudang) dan Senai-Skudai. Kawasan-kawasan utama inidiwujudkan bertujuan untuk menyediakan aktiviti limpahan yangsewajarnya bagi wilayah ini. Kawasan Bandaraya Johor Bahrumerangkumi tiga kawasan simpanan tanah utama JLand yangterletak di Tebrau, Ulu Tiram dan Pasir Gudang.

Kesan daripada inisiatif ini, Johor akan berubah menjadi sebuahkomuniti bertaraf dunia dan pasaran hartanah Johor akan turutdirangsang, secara tidak langsung akan memberi manfaat kepadaJLand. Begitu juga dengan penghijrahan penduduk dari negeri-negeri lain ke Johor Bahru bagi mencari peluang pekerjaan akanturut melonjakkan permintaan kediaman di Johor Bahru.Berdasarkan Laporan Pasaran Hartanah Kementerian Kewanganbagi setengah tahun pertama 2007, bilangan unit siap yang tidakterjual telah meningkat kepada 26,432 unit berbanding dengan22,185 unit pada setengah tahun pertama 2006. Sungguhpununtuk beberapa kawasan di Johor, khususnya bagi pasaran rumahkos sederhana masih lagi berhadapan dengan penawaran yangtidak terjual, permintaan akan terus kekal teguh bagi lokasi-lokasistrategik dan kami yakin bahawa projek kami akan meraih faedahdarinya. Kami percaya bahawa hanya produk-produk yang tepatsahaja yang akan dibangunkan di lokasi yang tepat dan padawaktu yang tepat, kami menjangkakan bahawa sebaranghartanah tidak terjual hanya akan memberi tekanan yangminimum kepada operasi JLand.

GOING FORWARD

Going forward into 2008, we expect all the abovementionedmarket conditions to have a direct positive effect on JLand’sbusinesses. Although the challenge of continuously risingbuilding material costs is very real, we expect to register arebound in 2008 supported by higher margin property launchessuch as the ones at Bandar Dato’ Onn. Development work atBandar Dato’ Onn has been progressing according to scheduleand we anticipate strong interest for our innovative offerings. Inaddition, launches in our other main projects in Bandar Tiramand Taman Bukit Dahlia will contribute to the company’s revenuein 2008.

We believe in our products and will continue to offer innovative,quality and value-for-money products in all our strategically-located projects. We will continue to look for opportunities toundertake new projects while continuing to develop our existingland banks in Tebrau, Ulu Tiram and Pasir Gudang. We will alsofocus our efforts on building the JLand brand and developinginnovative development concepts, while delivering quality homesand distinctive neighbourhoods for our customers in ourestablished townships.

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MELANGKAH KE HADAPAN

Melangkah ke tahun 2008, kami menjangkakan kesemuakeadaan pasaran yang dinyatakan di atas mempunyai kesanlangsung yang positif terhadap bisnes JLand. Biarpun cabaranberterusan dalam peningkatan kos bahan binaan adalah ketara,namun kami menjangka akan mencatatkan kebangkitansemula pada tahun 2008 yang didorong oleh pelancaranhartanah dengan margin yang lebih tinggi seperti yangterdapat di Bandar Dato’ Onn. Pembinaan di Bandar Dato’ Onnsedang dilaksanakan mengikut jadual dan kami meramalkanminat yang mendalam terhadap tawaran kami yang inovatif.Selain itu, pelancaran projek penting yang lain di Bandar Tiramserta Taman Bukit Dahlia akan turut menyumbang kepadaperolehan syarikat bagi tahun 2008.

Kami yakin terhadap produk kami dan akan terus menawarkanproduk-produk yang inovatif dan berkualiti dengan nilai untukwang bagi kesemua projek kami yang terletak di lokasi yangstrategik. Kami akan terus mencari peluang melaksanakanprojek-projek baru sementara meneruskan pembangunansimpanan tanah yang ada di Tebrau, Ulu Tiram serta PasirGudang. Kami akan turut menumpukan usaha untuk membinajenama JLand dan membangunkan konsep pembangunaninovatif, sambil menyediakan rumah berkualiti dan kawasanperjiranan yang beridentiti tersendiri khusus untuk para pelanggan kami di bandar-bandar yang telah siap kami majukan.

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For 2008, JLand will develop residential and commercial unitswith an estimated GDV of more than RM400 million. Werecognise the fact that today’s discerning buyers have higherexpectations and are more sophisticated in their requirements.As such, we need to consistently strive to improve our productsthrough bringing into play creativity and innovation to satisfy theneeds of our customers. Our business strategies have beenformulated based on market demand in the geographical areasof Tebrau, Ulu Tiram and Pasir Gudang. Each area will adopt adifferent business strategy depending on its market demand. Forexample, products at Bandar Dato’ Onn will incorporatedifferential features and concepts in terms of layout planning,design and finishes.

Our strategically located land banks in the Iskandar Malaysia havesignificant potential, with estimated GDV of more than RM7billion when they are eventually developed within the next 10 to15 years.

JLand will continue to explore new business ventures andmarkets and expand our business portfolio. The recent proposedacquisition of 50.98% interest in WTHSB for RM15 million cashshows our willingness to venture into new areas and explorerevenue streams that will complement our core propertydevelopment operations. To maintain sustainable long-termgrowth, JLand will continue to consider acquiring additional landin prime areas within strategic locations in the Klang Valley andother localities. Rest assured that we will undertake thenecessary feasibility studies and due diligence to ensure that anypotential venture will generate strong revenue streams andshareholder returns.

Bagi tahun 2008, JLand akan membangunkan unit kediaman dankomersil dengan anggaran GDV melebihi RM400 juta. Kamimenyedari hakikat bahawa para pembeli hari ini mempunyaipengharapan yang tinggi serta keperluan yang lebih sofistikated.Justeru itu, kami perlu berusaha secara konsisten untukmemperbaiki dan menghasilkan produk yang lebih kreatif daninovatif bagi memuaskan kehendak pelanggan. Strategiperniagaan kami telah direka berdasarkan permintaan pasaran dikawasan berdasarkan lokasi geografi iaitu Tebrau, Ulu Tiram danPasir Gudang. Setiap kawasan akan menggunapakai strategiperniagaan yang berbeza, bergantung kepada permintaanpasaran. Contohnya, produk di Bandar Dato’ Onn akanmenerapkan ciri serta konsep yang berbeza dari segiperancangan susun atur, reka bentuk serta kemasan.

Tanah simpanan kami yang terletak di lokasi strategik di IskandarMalaysia mempunyai potensi yang besar, dengan anggaran GDVmelebihi RM7 bilion apabila ia selesai dibangunkan dalamtempoh 10 hingga 15 tahun akan datang.

JLand akan terus meneroka usahasama bisnes dan pasaran baruserta mengembangkan portfolio bisnes kami. Cadanganpengambilalihan baru-baru ini sebanyak 50.98% kepentingandalam WTHSB untuk RM15 juta tunai, menunjukkankesanggupan kami mencuba bidang baru dan meneroka alirankeuntungan yang akan melengkapkan operasi teras kami dalampembangunan hartanah. Bagi mengekalkan pertumbuhan jangkapanjang yang mapan, JLand akan terus mempertimbangkanpemilikan tanah tambahan di kawasan-kawasan penting di sekitarlokasi strategik di Lembah Klang serta kawasan-kawasan lain.Kami pastinya akan melakukan kajian kemungkinan dan akangigih berusaha bagi memastikan usaha yang berpotensi akanmenghasilkan perolehan yang teguh serta pulangan buat parapemegang saham.

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APPRECIATION

Over the years, we at JLand have been blessed with a resilientand committed network of support. No words can truly expresshow indebted we are to our shareholders, customers, financiers,business associates, and consultants as well as the manygovernment departments who have supported us and stood byus. Our appreciation also goes to the thousands of home buyerswho have shown their confidence in our houses andneighbourhoods.

Needless to say, we would not have come this far were it notfor our dedicated and hard working management and staff. Lastbut not least, we wish to thank our esteemed colleagues on theBoard of Directors for their guidance and counsel. We expressour appreciation to Tn Hj Mahlil Bin Omar who resigned from theBoard effective 1 May 2007. We would also like to take thisopportunity to welcome on Board, our new Director, Dr MohdHafetz bin Ahmad who joined us on 22 May 2007. JLand will nodoubt benefit from this new addition to our family.

As we set our sights on becoming the leading property companyin this part of the world, we seek the continued support of allour stakeholders to maintain the success and accomplishmentswe have achieved thus far. We trust that you will all continue tolend us your unwavering commitment as we continue ourjourney forward.

PENGHARGAAN

Selama ini, kami di JLand telah mendapat sokongan yangkukuh dan semangat kental yang komited. Tiada perkataanyang benar-benar dapat menyatakan betapa kami terhutangbudi kepada para pemegang saham, pelanggan, pembiaya,rakan perniagaan, konsultan serta jabatan-jabatan kerajaanyang telah menyokong dan berdiri di sisi kami. Penghargaanini turut kami tujukan kepada ribuan pembeli rumah yang telahmemperlihatkan keyakinan mereka terhadap kediaman dankawasan perjiranan kami.

Kami tidak akan mampu berada sejauh ini jika bukan kerana pihakpengurusan serta anggota pekerja kami yang komited danberdedikasi. Akhir kata, kami ingin mengucapkan terima kasihkepada rakan sekerja yang dihormati di dalam Lembaga Pengarahdi atas panduan serta nasihat mereka. Kami juga inginmenyampaikan penghargaan kepada Tn Hj Mahlil Bin Omar yangtelah bersara dari Lembaga Pengarah berkuatkuasa 1 Mei 2007.Kami turut mengambil kesempatan ini untuk mengalu-alukankehadiran Pengarah baru kami, Dr Mohd Hafetz bin Ahmad kedalam Lembaga Pengarah, di mana beliau telah menyertai kamipada 22 Mei 2007. JLand pastinya akan meraih manfaat darikehadiran ahli lembaga pengarah baru dalam keluarga kami.

Dalam usaha kami menumpukan perhatian untuk menjadi sebuahsyarikat hartanah terulung di rantau ini, kami mengharapkansokongan yang berterusan dari semua pihak yang berkepentinganuntuk mengekalkan kejayaan serta pencapaian yang telah diraihsehingga kini. Kami pasti akan terus memberikan komitmen yangteguh dalam mengorak langkah ke hadapan.

TAN SRI DATO’ MUHAMMAD ALI HASHIM

Chairman / PengerusiA.F.M SHAFIQUL HAFIZ

Managing Director / Pengarah Urusan

Corporate Diary 2007Diari Korporat 2007

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5 JANUARY / JANUARI

Pedoman Meeting was held atTanjung Puteri 303, Persada JohorInternational Convention Centre,Johor Bahru

Mesyuarat Pedoman diadakan diTanjung Puteri 303, PusatKonvensyen Antarabangsa PersadaJohor, Johor Bahru

10-11 FEBRUARY / FEBRUARI

Pre-Launching Festival of BandarDato’ Onn was held at KompleksMutiara Johor Land, Bandar Dato’Onn, Johor Bahru

Festival Pra-Pelancaran Bandar Dato’Onn diadakan di Kompleks MutiaraJohor Land, Bandar Dato’ Onn, JohorBahru

13 FEBRUARY / FEBRUARI

Launching Ceremony of Dato’ OnnInterchange officiated by DYAM TunkuIbrahim Ismail Ibni Sultan Iskandar,Tunku Mahkota Johor

Majlis Perasmian PersimpanganBertingkat Dato’ Onn disempurnakanoleh DYAM Tunku Ibrahim Ismail IbniSultan Iskandar,Tunku Mahkota Johor

16 FEBRUARY / FEBRUARI

Official Launching & OrientationProgram of Tunas Bistari 2007. JLandcontributed RM150,000.00 to theprogram

Majlis Pelancaran & PerasmianProgram Orientasi Tunas Bistari 2007.JLand menyumbang RM150,000.00untuk program berkenaan

21 MARCH / MAC

JLand participated in “Maulidur Rasul2007” at Masjid Jamek, PasirGudang

JLand menyertai Majlis MaulidurRasul 2007 di Masjid Jamek, PasirGudang

24 MARCH / MAC

Sales launching of single storeyterraced “Kristal” at Taman BukitDahlia, Pasir Gudang

Pelancaran jualan rumah teres satutingkat, Kristal di Taman Bukit Dahlia,Pasir Gudang

5 MAY / MEI

JLand participated in PropertyExhibition in conjunction with OfficialLaunching of Persada JohorInternational Convention Centre,Johor Bahru

JLand menyertai Pameran Hartanahsempena Perasmian PusatKonvensyen Antarabangsa PersadaJohor, Johor Bahru

6 MAY / MEI

“Family Ceria” JLand was held atKompleks Mutiara Johor Land,Bandar Dato’ Onn, Johor Bahru

Family Ceria JLand diadakan diKompleks Mutiara Johor Land,Bandar Dato’ Onn, Johor Bahru

19 & 26 MAY / MEI

“Come Home Party” with customersat Show Houses, Bandar Dato’ Onn,Johor Bahru

“Come Home Party” bersama parapelanggan di Rumah Contoh, BandarDato’ Onn, Johor Bahru

21 MAY / MEI

The 32nd Annual General Meetingand Extraordinary General Meeting ofJLand was held at Tanjung Puteri305, Persada Johor InternationalConvention Centre, Johor Bahru

Mesyuarat Agung Tahunan kali ke 32dan Mesyuarat Agung LuarbiasaJLand diadakan di Tanjung Puteri 305,Pusat Konvensyen Antarabangsa,Persada Johor, Johor Bahru

29 JULY / JULAI

Merdeka Carnival with customers atSales Office, Tiram

Karnival Merdeka bersama parapelanggan di Pejabat Jualan, Tiram

4 AUGUST / OGOS

“Hari Mesra” JLand for staff andfamily was held at Selesa Hotel,Port Dickson, Negeri Sembilan

Hari Mesra JLand untuk anggotapekerja dan keluarga diadakan diHotel Selesa, Port Dickson, NegeriSembilan

12 SEPTEMBER / SEPTEMBER

Official launching of Tijarah Ramadan2007 was held at Hall 10, PutrajayaInternational Convention Centre.JLand contributed RM30,000.00 tothe program

Pelancaran Tijarah Ramadan 2007diadakan di Dewan 10, PusatKonvensyen Antarabangsa Putrajaya.JLand menyumbang RM30,000.00untuk program berkenaan

10 OCTOBER / OKTOBER

The ICC Convention JLand 2007 washeld at Kompleks Mutiara JohorLand, Bandar Dato’ Onn, Johor Bahru

Konvensyen ICC JLand 2007diadakan di Kompleks Mutiara JohorLand, Bandar Dato’ Onn, Johor Bahru

27 OCTOBER / OKTOBER

“Riang Ria Aidilfitri” Carnival withcustomers at Taman Bukit Dahlia,Pasir Gudang

Karnival Riang Ria Aidilfitri bersamapara pelanggan di Taman Bukit Dahlia,Pasir Gudang

2 NOVEMBER / NOVEMBER

JLand participated in “Hari Mekar”Johor Corporation, which was held at Persada Johor InternationalConvention Centre, Johor Bahru

JLand menyertai Hari Mekar JohorCorporation yang diadakan di PusatKonvensyen Antarabangsa, PersadaJohor, Johor Bahru

TERMS OF REFERENCE

The Audit Committee was established on September 2, 1996 to actas a Committee for the Board of Directors.

COMPOSITION OF MEMBERS

Audit Committee Report

Members No. of meetings attended Percentage

Kua Hwee Sim (Chairman) 4 out of 4 100%Independent Non Executive Director(appointed as Chairman w.e.f 15 February 2007)Dato Hj Hassan Bin Mohd Yunos 3 out of 3 100%Independent Non Executive Director(appointed as Member w.e.f 1 May 2007)Lukman Bin Hj Abu Bakar 4 out of 4 100%Non Independent Non Executive Director(appointed as Member w.e.f 1 August 2006)Mahlil Bin Omar 1 out of 1 100%Independent Non Executive Director(resigned as Member w.e.f 1 May 2007)

OBJECTIVES

The objectives of the Audit Committee are:-

1. To ensure compliance with Paragraph 15, Part C of theListing Requirements of Bursa Malaysia Securities Berhad.

2. To ensure the independence of the External Auditors, theintegrity of management and the adequacy of disclosures toshareholders.

3. To assist the Board of Directors in fulfilling its fiduciaryresponsibilities by ensuring that the results of internal andexternal audit findings are fully considered and properlyresolved.

COMPOSITION

The Board shall elect an Audit Committee, comprising not fewerthan three (3) members of whom the majority must beIndependent Directors. The Chairman of the Audit Committeeshall be appointed by the Board.

MEETINGS OF THE AUDIT COMMITTEE

1. The Audit Committee is to meet not less than four (4) timesa year.

2. The quorum for each meeting shall be two (2) members ofthe Audit Committee both of whom shall be IndependentDirectors.

3. The Audit Committee may regulate its own procedures inrespect of the convening of meetings, the notice to begiven of such meetings, the voting and proceedings thereof,the keeping of minutes and the custody, production andinspection of such minutes.

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4. The Chairman of the Audit Committee shall submit a reportof each meeting to the Board.

5. The Managing Director, the Group Financial Controller andthe Head of Internal Audit attended all meetings. Othermembers of senior management attended some of themeetings upon invitation by the Audit Committee. TheCompany Secretaries are the Secretaries to the AuditCommittee.

6. During the financial year ended 31 December 2007 theAudit Committee held a total of four (4) meetings. Thedetails of attendance of the Audit Committee Members areas per table above.

AUTHORITY

The Audit Committee is authorised by the Board:-

1. To investigate any matters within its terms of reference;

2. To have the resources which are required to perform itsduties;

3. To have full and unrestricted access to any informationpertaining to the listed issuer;

4. To have direct communication channels with the externalauditors and person(s) carrying out the internal audit functionor activity (if any);

5. To be able to obtain independent professional or otheradvice;

6. To be able to convene meetings with the External Auditors,the Internal Auditor or both, excluding the attendance ofother directors and employees of the company, wheneverdeemed necessary.

FUNCTIONS

Pursuant to Paragraph 15.13 of the Listing Requirements ofBursa Malaysia Securities Berhad, the Audit Committee amongstothers, shall review, appraise and report to the Board on:-

1 The appointment of the External Auditors, their audit feesand in the event of their resignation or dismissal with fullexplanatory statements.

2. The adequacy of the scope, functions, competency andresources of the internal audit function and results of theinternal audit procedures.

3. The quality and effectiveness of the entire accounting andinternal control system of the Group.

4. The adequacy of the audit effort by both the External andInternal Auditors.

5. The adequacy of the disclosures of information essential togive a true and fair presentation of the financial affairs of theGroup.

6. Any material discoveries of adjustments made by theExternal or Internal Auditors.

7. The quarterly results and yearly financial statements, prior tothe approval by the Board, focusing particularly on:-

(i) Changes in major accounting policies and theirimplementation and the effects of such changes;

(ii) Significant and unusual events; and

(iii) Compliance with stated accounting standards and otherlegal requirements.

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47

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48

Audit Committee Report

8. Any related party transactions and conflict of interestsituation that may arise, including any transactions,procedures or course of conduct that raise question ofmanagement integrity.

9. The assistance given by the employees to the ExternalAuditors.

10. Any such other functions as may be agreed to by the AuditCommittee and the Board.

SUMMARY OF ACTIVITIES

The Audit Committee has during the financial year ended 31 December 2007 discharged the following functions:-

1. Reviewed the unaudited quarterly results and financialstatements of the Company and its subsidiaries.

2. Reviewed the financial statements of the Group andCompany for the financial year ended 31 December 2007with the External Auditors and discussed before it wasapproved by the Board.

3. Reviewed and endorsed the Audit Plan of the Group for thefinancial year ended 31 December 2007.

4. Deliberated Audit Report on audit assignments.

5. Reviewed and discussed recent developments onaccounting and auditing standards issued by the MalaysianAccounting Standards Board.

6. Reviewed the related party transactions entered into by theCompany and JCorp Group of Companies.

7. Met with the External Auditors without the presence of theManagement, pursuant to the Best Practices of MalaysianCode of Corporate Governance.

STATEMENT ON INTERNAL AUDIT FUNCTION

The Internal Audit Function of the Company is to independentlyperform all the planned activities with impartiality, proficiencyand due professional care. The Internal Audit Function is performin-house and to provide independent assurance on the efficiencyand effectiveness of the internal control implemented byManagement. In this context, the Internal Audit Function formsan integral part of the management process.

The Internal Audit has performed twelve (12) normal auditreviews and assisted the Board in drafting the Statement ofCorporate Governance and Statement on Internal Control duringthe financial year 2007. The Head of the Internal Audit will reportdirectly to the Audit Committee and administratively to theManaging Director. The cost incurred for Internal Audit Functionfor the financial year 2007 was RM249,909 which includetraining to enhance the skills and competency of the internalauditors.

In carrying out the scope of their duties, the Audit Committeeupdates the Board from time to time on the issues andconcerns discussed during the Audit Committee Meetingsincluding those advised by the External Auditors and whereappropriate, made the necessary recommendations to the Board.

50 Statement on Corporate Governance56 Statement on Internal Control60 Statement on Directors’ Responsibility61 Additional Disclosure Information

corporategovernance

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Statement on Corporate Governance

THE BOARD OF DIRECTORS

1. Board Composition

The Board composition is reviewed on a regular basis. Thecompany is controlled and led by a Board who is responsibleto the shareholders for the management of the Company.

2. Responsibility of the Board

The Board is responsible for the Company’s overall Groupstrategy and objectives, its major capital expenditure projectsand the consideration of significant financial matters.

At the same time, the Board also ensures the sustenanceof a dynamic and robust corporate climate focused onstrong ethical values. This emphasises active participationand dialogues on a structured basis involving key people atall levels, as well as ensuring accessibility to information andtransparency on all executive action. The corporate climate isalso continuously, nourished by value-centred programmesfor team-building and active subscription to core values.

3. Board Meeting

During the financial year under review, the Board conductedfour (4) meetings to review and discuss the Group’soperations, approved quarterly reports and annual financialstatements. At every meeting, the Board papers weredelivered in advance to facilitate informed decision making.The Board also discussed reports from Audit Committee andproposals by the Management that require Board’s approval.

The Board of Directors (“the Board”) of Johor Land Berhad (“JLand” or “the Company”) fullyappreciates the importance of exercising high standards of corporate governance in theconduct of the Company’s business and affairs through transparency, accountability andcorporate governance.

The Board continues to apply the principles and best practices as governed by the ListingRequirements of Bursa Malaysia Securities Berhad to undertake additional measures, principlesand recommendation embodied in Malaysia Code on Corporate Governance and strive to adoptthe substance and not merely the form behind the corporate governance prescription.

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Directors No. of meetings attended Percentage

Tan Sri Dato’ Muhammad Ali Hashim 4 out of 4 100%(Non Independent Non Executive Chairman)Mohd Talhar Bin Abdul Rahman *3 out of 4 75%(Non Independent Non Executive Deputy Chairman)A.F.M Shafiqul Hafiz 4 out of 4 100%(Managing Director)Kua Hwee Sim 4 out of 4 100%(Independent Non Executive Director)Dato Hj Hassan Bin Mohd Yunos 4 out of 4 100%(Independent Non Executive Director)Lukman Bin Abu Bakar 4 out of 4 100%(Non Independent Non Executive Director) Abdul Malek Bin Talib 4 out of 4 100%(Executive Director (appointed w.e.f 1 January 2007)(redesignated to Non Independent Non Executive Director w.e.f 1 January 2008)Yusof bin Rahmat 4 out of 4 100%(Non Independent Non Executive Director)(appointed w.e.f 1 January 2007)Dr Mohd Hafetz Bin Ahmad 1 out of 2 50%(Independent Non Executive Director)(appointed w.e.f 22 May 2007)Mahlil Bin Omar 1 out of 1 100%(Independent Non Executive Director)(resigned w.e.f 1 May 2007)

* Overseas

The attendance record for each Director is as follows:-

4. Board Balance

The Board presently consists of nine (9) members,comprising the Managing Director, the Executive Director,three (3) Independent Non Executive Directors, and four (4)Non Independent Non Executive Directors including theChairman, as required by the Listing Requirements of BursaMalaysia Securities Berhad.

The Managing Director has the principal responsibility ofreporting, clarifying and communicating matters to theBoard. The Board has also appointed Dato Hj Hassan Bin HjMohd Yunos as the Senior Independent Non ExecutiveDirector, to whom concerns may be conveyed.

5. Supply of Information

The Board has a formal schedule of matters reservedspecifically for the Board’s consideration in ensuring theeffectiveness of its decisions. The Board is supplied withinformation in a timely manner and appropriate quality toenable them to discharge their duties and due notice isgiven to Directors with regards to issues to be discussed.All resolutions are recorded and thereafter circulated to theDirectors for comments before minutes of proceedings arefinalised and confirmed.

Directors are given access to any information within theCompany and are free to seek independent professionaladvice at a the Company’s expenses, if necessary, infurtherance of their duties. Directors are also entitled tohave access to the advice and services of the CompanySecretaries.

6. Directors’ Training

The Board is committed to continuous training to enable thedirectors to effectively discharge their duties. All Directorshad attended and successfully completed the MandatoryAccreditation Programme as prescribed by Bursa Malaysia.

The Board had participated in training programmes to keepabreast with the current developments in the industry aswell as changes in laws and regulations.

7. Appointments to the Board

In the event of a need to appoint new member(s) of theBoard, the actual decision as to who shall be nominated isthe responsibility of the full Board after considering therecommendations by the Nomination and RemunerationCommittee (“NRC”) of Johor Corporation (“JCorp”). TheNRC is responsible for proposing respective new nomineesfor the Board and for assessing Directors on a regular basisto ensure the effectiveness of the Board for the long terminterest of the Company by considering the skills,knowledge, expertise and experience, professionalism andintegrity of the candidates.

8. Re-Election

In accordance with the Company’s Articles of Association,any Director so appointed shall hold office only until the nextfollowing Annual General Meeting, and shall then be eligiblefor re-election.

In addition at every succeeding Annual General Meeting,one-third (1/3) of the Directors, or, if their number is not amultiple of three (3), the number nearest to, but notexceeding one-third (1/3), shall retire from office. AllDirectors shall retire from office once at least in each three(3) years and can offer himself for re-election at the AnnualGeneral Meeting.

The Managing Director shall subject to provisions of anycontract between him and the Company be subject to thesame provisions as to resignation and removal as the otherDirectors of the Company and if he ceases to hold the officeof Director for any cause he shall ipso facto and immediatelycease to be a Managing Director.

9. Directorship in Other Companies

In ensuring continuous commitment from the Directors todischarge their duties effectively, none of the Directors ofthe Company holds more than 10 directorships in publiclisted companies and more than 15 in non-public listedcompanies.

JOHOR LAND BERHAD


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10. Board Committees

The Board has delegated certain specific responsibilities totwo (2) committees which operate within clearly definedterm of references, with the main objective to assist theBoard in discharging its duties and responsibilities.

i. Tender Board Committee

The Tender Board Committee is chaired by Dato HjHassan Bin Hj Mohd Yunos. Its deliberation includesscope of work, tender estimate, period of completionand recommendations by Tender Evaluation Committee.

ii. Audit Committee

The Audit Committee (“AC”) is currently chaired by KuaHwee Sim and comprises three (3) members, of whichtwo (2) members are independent Directors. AC meetsregularly at least four (4) times a year. The ManagingDirector, Chief Operating Officer, Chief Finance Officer,Head of Internal Audit and external auditors attend suchmeetings by invitation. The function and activities carriedout by AC during the year under review are contained inthe Audit Committee Report as presented on page 46 to48 of this Annual Report.

11. Board’s Effectiveness

The Board forms an important structure/platform of theoverall sound internal control system. A streamlined formatfor the Board of Directors’ evaluation forms is distributedevery year to fulfil the substantive requirement of Paragraph15.26 and 15.27 of the Listing Requirement of BursaMalaysia Securities Berhad. The evaluation covers areas onStrategy and Planning; Risk Management; Tone at the Top;Measuring and Monitoring Performance; TransformationalTransactions; Management Evaluation; Compensation andSuccession Planning; Transparency; and Board Dynamics.

NOMINATION AND REMUNERATION COMMITTEE

In line with Johor Corporation’s (JCorp’s) Group-wide corporatepractice, the functions and responsibilities of JLand’s Nominationand Remuneration Committees (“NRC”) are vested with theGroup Nomination and Remuneration Committees of JCorp(“JCorp Group NRC”). JLand is directly represented at theJCorp Group NRC by its Chairman and Managing Director whoare respectively the Chairman and official member of the JCorpGroup NRC.

The prime consideration of centralising NRC function at theGroup’s centre is the strategic advantage that the Centreprovides by allowing wider access and greater reach to a muchlarger pool of talent, skills and expertise as well as tobenchmark remunerations on a Group-wide basis.

DIRECTORS’ REMUNERATION

As indicated in Paragraph 9 above, the JCorp Group NRC is alsoresponsible for making recommendations on the framework,policy and procedures in reviewing and determining the specificremuneration package of the Directors in JLand.

The objectives of the remuneration policy are:

• to ensure that individual rewards and incentives fairly relateto the performance of the individual, the Company and theinterests of shareholders; and

• to attract and retain the most qualified and experiencedsenior executives.

The Committee, where appropriate, seeks independent adviceand also has access to pooled information on the latestremuneration and compensation packages practised in the market.

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Basic Fees & Bonuses Benefits-

Salary Allowances & Others in-kind Total

Directors (RM) (RM) (RM) (RM) (RM)

Tan Sri Dato’ Muhammad Ali Hashim — 54,000 — — 54,000(Non Independent Non Executive Chairman)

Mohd Talhar Bin Abdul Rahman — 27,000 — — 27,000(Non Independent Non Executive Deputy Chairman)

A.F.M Shafiqul Hafiz 240,000 118,500 192,166 51,053 601,719(Managing Director)

Kua Hwee Sim — 27,000 — — 27,000(Independent Non Executive Director)

Dato Hj Hassan Bin Hj Mohd Yunos — 27,000 — — 27,000(Independent Non Executive Director)

Lukman bin Abu Bakar — 27,000 — — 27,000(Non Independent Non Executive Director)

Abdul Malek Bin Talib 181,830 76,600 140,448 8,800 407,678(Executive Director)(appointed w.e.f 1 January 2007)(redesignated to Non Independent Non Executive Director w.e.f 1 January 2008)

Yusof Bin Rahmat — 27,000 — — 27,000(Non Independent Non Executive Director)(appointed w.e.f 1 January 2007)

Dr Mohd Hafetz Bin Ahmad — 17,000 — — 17,000(Independent Non Executive Director)(appointed w.e.f 22 May 2007)

Mahlil Bin Omar — 6,000 — — 6,000(Independent Non Executive Director) (resigned w.e.f 1 May 2007)

Details of the remuneration paid/payable to each Director for the financial year are as below:-

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55

SHAREHOLDERS

(a) Relationship with Shareholders and Investors

The Board acknowledges the need for shareholders andinvestors to be informed of all material business mattersaffecting the Group. The timely release financial results onquarterly basis provide the shareholders with an overview ofthe Group’s performance and operations. In addition, toensure that shareholders and investors are well informed ofmajor developments of the Group, information isdisseminated to shareholders and investors through variousdisclosures and announcements to Bursa Malaysia as wellas through the annual report and where appropriate,circulars and press releases. However, any information thatmay be regarded as undisclosed material information aboutthe Group will be safeguarded.

The Group also maintains a website www.jland.com.my forshareholders and public to access corporate information andevents related to the Group.

(b) Annual General Meeting

The Annual General Meeting (“AGM”) is the principal forumfor dialogue with shareholders. The Company values feedbackfrom its shareholders and encourages them to activelyparticipate in discussion and deliberations. Members of theBoard and Senior Management are present and available torespond to shareholders’ questions during the meeting. Itemof special business included in the notice of the meeting willbe accompanied by a full explanation of the effects of aproposed resolution.

ACCOUNTABILITY AND AUDIT

(a) Financial Reporting

The Board acknowledges and accepts full responsibility forpreparing a balanced and comprehensive assessment of theGroup’s operation and prospects each time it releases itsquarterly reports and annual financial statements toshareholders. On this matter, the Board is assisted by theAudit Committee, whose terms and reference are defined inthe Audit Committee Report published in this Annual Report.

(b) Internal Control

The Statement on Internal Control is set out in page 56 to59 of this Annual Report provides an overview of theGroup’s approach in maintaining a sound system of internalcontrol to safeguard shareholders’ investment and theGroup’s assets.

(c) Relationship with the Auditors

The Board on its own and through the Audit Committee hasa formal and transparent management for maintainingappropriate relationship with the External Auditors. There isa formal and transparent arrangement in the review of theExternal Auditors’ audit plan, report, internal control issuesand procedures. Representatives from the External Auditorswere also invited to attend every Audit Committee Meeting.

(d) Audit Committee

The Audit Committee Report for the financial year isprovided in page 46 to 48 of this Annual Report.

COMPLIANCE TO THE CODE

JLand Group was in compliance with the principles of and bestpractices in corporate governance throughout the financial yearended 31 December 2007.

Signed on behalf of the Board of Directors in accordance withtheir resolution dated 26 February 2008.

TAN SRI DATO’ MUHAMMAD ALI HASHIM A.F.M SHAFIQUL HAFIZ

Chairman Managing Director

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Statement on Internal Control

The Board acknowledges its ultimate responsibilities in reviewingthe adequacy and the integrity of internal control systems andmanagement information systems of JLand Group, includingsystems for compliance with applicable laws, regulations, rules,directives and guidelines as well as identifying principal risks andensures the implementation of appropriate systems to managethe risks. The Group’s internal control system is designed tomanage rather than eliminate risk of failure to achieve businessobjectives and can only provide reasonable assurance and notabsolute assurance against material misstatement or loss.

In providing the Statement on Internal Control for the Group,pursuant to Para 46 of the “Statement on Internal Control –Guidance for Directors of Public Listed Companies” (“theGuidance”), the Board wishes to inform that it has excluded the

assessment of controls on associated company i.e. Revertex (M)Sdn Bhd (“Revertex”), where the assurance on internal controlof the company is obtained through JLand’s representation onthe board of Revertex.

JLand has adopted COSO Internal Control Framework since2001. This is in line with the Guidance. Internal control is definedas a process, effected by JLand’s Board of Directors andManagement, designed to provide reasonable assuranceregarding the achievement of the company’s objectives. In thisregard, JLand has conducted annual survey based on the fiveCOSO elements among the employees.

The key elements of the Group’s system of internal control aredescribed below:

The Board of Directors (“the Board”) of Johor Land Berhad (“the Company” or “JLand”) ispleased to provide the Statement on Internal Control pursuant to paragraph 15.27 (b) of theListing Requirements of Bursa Malaysia Securities Berhad.

The Board recognizes and accepts its responsibility in ensuring and maintaining a sound systemof internal control to safeguard shareholders’ investment and the company’s assets.

CONTROL

ENVIRONMENT

RISK

ASSESSMENT

CONTROL

ACTIVITIES

MONITORING

INFORMATION &

COMMUNICATION

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CONTROL ENVIRONMENT

The Board and the Senior Management set the tone of theorganisation by demonstrating to staff and stakeholders, throughwords and actions, that integrity and ethical values cannot becompromised. Factors influencing the control environmentinclude the management’s philosophy and operating style, themanner in which management assigns authority andresponsibility, and the attention and direction provided by theBoard.

RISK ASSESSMENT

The Board acknowledges its responsibilities in identifyingprincipal risks and ensuring the implementation of appropriatesystems to manage these risks. The Board has clear strategiesfor dealing with the significant risks that have been identified.

For the financial year under review, the Board is satisfied thatthe Group’s objectives are adequately supported by strategicplanning, business plan and budgets. In addition, two (2) RiskManagement Reports have been deliberated to the Board.

The Risk Management function is led by the Chief Risk Officerwho oversees the overall risk management activities of theCompany.

The Board confirms that there is an on-going process ofidentifying, evaluating, managing and monitoring the significantrisks affecting the achievement of its business objectivesthroughout the period.

RISK

OFFICER

CHIEF RISK

OFFICER

JOHOR BAHRU PASIR GUDANG TIRAM TEBRAU

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CONTROL ACTIVITIES

An organizational structure, formally defined lines ofresponsibility and delegation of authority is in place. A processof hierarchical reporting has been established which provides fordocumented and auditable trail of accountability. In addition, adocumented delegation of authority is established setting outthe decisions that need to be taken and the appropriateapproving authority at various levels of management includingmatters that requires Board approval.

Internal control procedures are documented in comprehensiveISO 9001:2000 standard operating procedures manuals.

INFORMATION AND COMMUNICATION

The Board receives sufficient and timely information to allowthem to fulfill their responsibilities. Management commits theappropriate human and financial resources to develop thenecessary information systems, and ensures and monitorsusers’ involvement in the development. Managementcommunicates employees’ duties and responsibilities in aneffective manner. The Group has established procedures forreporting immediately to appropriate levels of management anysignificant control failings or weaknesses that are identifiedtogether with details of corrective actions being undertaken.

Statement on Internal Control

MONITORING

Management (1) implement internal control recommendationsmade by internal and independent auditors, (2) corrects knowndeficiencies on a timely basis, and (3) responds appropriately toreports and recommendations from regulators.

1. Internal Audit The internal audit function of the Group complies with therequirements of Bursa Malaysia that emphasizes the internalauditors’ independence, objectivity and professionalproficiency. Currently, a Certified Internal Auditor heads theinternal audit function. The core function of the internalauditors is to perform independent appraisal of the Group’sactivity, to provide assurance on the adequacy andeffectiveness of controls particularly on: • Reliability and integrity of financial and operational

information• Effectiveness and efficiency of operations• Safeguarding of assets• Compliance with laws, regulations and contracts.

The internal audit reports are deliberated by the AuditCommittee and forwarded to management for attention andnecessary corrective actions as recommended.

2. External AuditorsThe External Auditors are engaged to express an opinion onthe financial statements. The External Auditors shall report tothe Management any material deficiencies which come totheir attention during the audit review. The External Auditorshave reviewed this Statement pursuant to Paragraph 15.24of the Listing Requirements and in accordance withRecommended Practice Guides (“RPG”) 5, Guidance for Auditors on the Review of Directors’ Statement onInternal Control.

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The Audit Committee held a total of two (2) meetings withthe External Auditors without the presence of the management of the Company during the financial yearended 31 December 2007.

3. Governance CommitteesAt the management level, various committees have beenformed to ensure that decisions are made collectively andafter thorough discussion. JLand has established fifteen (15)Governance Committees to facilitate the operations.

THE BOARD’S CONCLUSION

The Board is pleased to disclose that the state of the Group’sInternal Control System is generally adequate, effective, and inline with best practices. The Group has maintained a soundinternal control system for the financial year under review whichprovides reasonable but not absolute assurance that the Groupwill not be hindered in achieving their business or be affectedby any circumstances which may reasonably foreseen.




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Statement on Directors’ Responsibility

Pursuant to Paragraph15.27(a) of the Listing Requirements of Bursa Malaysia SecuritiesBerhad

The Directors consider that, in preparing the financial statementsof the Group and of the Company for the financial year ended31 December 2007, the Group and the Company have usedappropriate accounting policies, consistently applied andsupported by reasonable and prudent judgements andestimates. The Directors also consider that all applicableapproved accounting standards in Malaysia have been followedand confirm that the financial statements have been preparedon a going concern basis.

The Directors are responsible for ensuring that the Companyand its subsidiaries keep accounting records which disclose withreasonable accuracy at any time the financial position of theGroup and of the Company and which enable them to ensurethat the financial statements comply with the provisions of theCompanies Act, 1965. The Directors are also responsible fortaking such steps as are reasonably open to them to safeguardthe assets of the Group and to prevent and detect fraud andother irregularities.




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Additional Disclosure Information

UTILIZATION OF PROCEEDS

The company did not implement any fund raising exerciseduring the financial year.

SHARE BUY-BACK

There were no shares buy-back during the financial year.

As at 31 December 2007, the Company repurchased 951,800units of its issued shares from the open market.

The total shares repurchased are being held as treasury sharesand carried out as cost in accordance with the requirement ofSection 67A of Companies Act 1965. None of the treasureshares has been resold, cancelled or distributed as sharedividends as at the date of this report.

OPTION, WARRANTS OR CONVERTIBLE SECURITIES

No options, warrants or Convertible Securities were exercisedduring the financial year.

AMERICAN DEPOSITORY RECEIPT ("ADR") OR GLOBAL

DEPOSITORY RECEIPT ("GDR")

The Company did not sponsor any ADR or GDR programmeduring the financial year.

SANCTIONS AND/OR PENALTIES

There were no public sanctions and/or penalties imposed on theCompany and its subsidiaries, Directors or management by anyregulatory bodies during the financial year.

NON-AUDIT FEES

The amount of non-audit fees payable to the External Auditorsby the Group for the financial year ended 31 December 2007 isas follows:

Auditors Services RM

KPMG Professional fee for services 5,000rendered in relation with the reviewof Statement on Internal Control

VARIATION IN RESULTS

There was no material variation between the audited results forthe financial year ended 31 December 2007 and the unauditedresults previously released for the financial quarter ended 31December 2007.

PROFIT GUARANTEE

The Company did not make any arrangement during the financialyear which requires profit guarantee.

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Additional Disclosure Information

MATERIAL CONTRACTS

There was no other material contracts entered into by theCompany and/or its subsidiaries involving Directors and majorshareholders’ interests subsisting at 31 December 2007 orentered into since the end of the previous financial year ended31 December 2006.

At an Extraordinary General Meeting held on Monday, 21 May 2007 the Company obtained a Shareholders’ mandateto allow the Group to enter into Recurrent Related PartyTransaction of a revenue or trading nature with the followingparties:-

Actual Value ofTransaction from1 January to 31

Relationship of December 2007Company Transacting Party Nature of Transaction transacting party (RM’000)

JLand and/or Kulim Sale of fresh fruit bunches through A subsidiary owned by Subsidiaries (Malaysia) KMB: JCorp, a Major Shareholder of

Berhad (KMB) – sales value JLand, by virtue of Section 6A 4,330– commission payable to KMB of the Companies Act 1965^ *2,063

6,393JLand and/or Teraju Fokus Security and related services provided An associate company of *556subsidiaries Sdn Bhd to the JLand Group JCorp, a Major Shareholder of

JLand, by virtue of Section 6Aof the Companies Act 1965^

JLand and/or Damansara Rental of office space to JLand Wholly-owned subsidiary of *422subsidiaries Assets and other related expenses Ω JCorp, a Major Shareholder of

Sdn. Bhd. JLand, by virtue of Section 6Aof the Companies Act 1965^

JLand and/or Pro Advertising and promotion services A subsidiary of JCorp via *2subsidiaries Communication provided to the JLand Group Tajasukan Sdn Bhd^

Services Sdn. Bhd.

JLand and/or JCorp Miscellaneous services rendered by JCorp is a Major Shareholder *11subsidiaries JCorp to the JLand Group of JLand by virtue of Section

(for example secretarial services, 6A of the Companies staff training, legal advisory, Act 1965^internal audit services)

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Actual Value ofTransaction from1 January to 31

Relationship of December 2007Company Transacting Party Nature of Transaction transacting party (RM’000)

JLand and/or JCorp Group Sale of houses, shops, shop offices JCorp is a Major Shareholder 542subsidiaries and other types of development on of JLand by virtue of

land registered in the name of Section 6A of the JCorp Group for which JLand has Companies Act 1965^acquired from JCorp Group the said land. The entire proceeds of the sale accrue to JLand

* Denotes amounts payable by JLand to transacting parties

^ Interested directors, Major shareholders and persons connected are as follows:-

(i) Tan Sri Dato’ Muhammad Ali Hashim is the Chairman of JLand and Chief Executive of JCorp. He is also the Chairman of various other companies within the JCorpGroup.

(ii) Mohd Talhar bin Abdul Rahman is a Non Independent Non Executive Deputy Chairman of JLand and is a partner of a firm of professional valuers, Messrs C H WilliamsTalhar & Wong Sdn. Bhd. that provides professional services to JLand via the JCorp Group.

(iii) A.F.M Shafiqul Hafiz is the Managing Director of JLand and also holds directorships in various other companies within the JCorp Group.

(iv) Lukman Bin Abu Bakar is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group.

(v) Abdul Malek Bin Talib is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group.

(vi) Yusof Bin Rahmat is a Non Independent Non Executive Director of JLand. He also holds directorships in various other companies within the JCorp Group.

Ω In compliance with paragraph 4.2(c) of Practice Note 12/2001 of the Listing Requirement of Bursa Malaysia Securities Berhad, in that the lease period is not made on lumpsum basis (i.e it is made on an equal pro-rated monthly basis).

financialstatements65 Directors’ Report70 Statement by Directors70 Statutory Declaration71 Report of the Auditors72 Balance Sheets73 Income Statements74 Statement of Changes in Equity76 Cash Flow Statements78 Notes to the Financial Statements

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Directors’ ReportFor the year ended 31 December 2007

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Companyfor the year ended 31 December 2007.

PRINCIPAL ACTIVITIES

The principal activities of the Company consist of the housing development and investment holdings. The principal activities ofits subsidiaries are disclosed in Note 5 to the financial statements. There has been no significant change in the nature of theseactivities during the financial year.

RESULTS

Group Company

RM RM

Profit for the year 6,689,841 19,523,511

RESERVES AND PROVISIONS

There were no material transfers to or from reserves and provisions during the financial year under review.

DIVIDENDS

Since the end of the previous financial year, the Company paid:

(i) a final dividend of 3 sen per ordinary share less tax 27% totalling RM2,650,951 (2.19 sen net per ordinary share) inrespect of the year ended 31 December 2006 on 29 June 2007; and

(ii) an interim dividend of 4 sen per ordinary share less tax 27% totalling RM3,534,609 (2.92 sen net per ordinary share) inrespect of the year ended 31 December 2007 on 25 January 2008.

The final dividend recommended by the Directors in respect of the year ended 31 December 2007 is 3% per ordinary shareless tax at 26% totalling RM2,687,270 (2.22 net per ordinary share).

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DIRECTORS OF THE COMPANY

Directors who served since the date of the last report are:

Tan Sri Dato’ Muhammad Ali HashimMohd Talhar bin Abd RahmanA.F.M Shafiqul HafizKua Hwee SimDato Hj Hassan bin Hj Mohd YunosLukman bin Hj Abu BakarYusof bin RahmatAbdul Malek bin TalibDr Mohd Hafetz bin Ahmad (appointed on 22 May 2007)Mahlil bin Omar (resigned on 1 May 2007)

DIRECTORS’ INTERESTS

The interests and deemed interests in the shares of the Company and of its related corporations (other than wholly-ownedsubsidiaries) of those who were Directors at year end (including the interests of the spouses or children of the Directors whothemselves are not Directors of the Company) as recorded in the Register of Directors’ Shareholdings are as follows:

Number of ordinary shares of RM1.00 each

At At

1 January 31 December

Name of Directors Interest 2007 Bought Sold 2007

Company

Tan Sri Dato’ Muhammad Ali Hashim Direct 100,360 — — 100,360Deemed 4,300 — — 4,300

A.F.M Shafiqul Hafiz Direct 67,800 — — 67,800Kua Hwee Sim Direct 9,000 — — 9,000Mohd Talhar bin Abd Rahman Direct 7,920 — — 7,920Dr Mohd Hafetz bin Ahmad Direct 4,160 — (2,160) 2,000

Deemed 4,770 — — 4,770

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DIRECTORS’ INTERESTS (CONT’D.)

Number of ordinary shares of RM1.00 each

At At

1 January 31 December

Name of Directors Interest 2007 Bought Sold 2007

Related Companies

– Kulim (Malaysia) Berhad*


A.F.M Shafiqul Hafiz Direct 1,000 — — 1,000Dr Mohd Hafetz bin Ahmad Direct 11,250 — (11,250) —

Deemed 14,470 — (2,450) 12,020Abdul Malek bin Talib Direct 100 — — 100

– KPJ Healthcare Berhad


Dr Mohd Hafetz bin Ahmad Direct 40,000 — (32,000) 8,000

– Sindora Berhad

Tan Sri Dato’ Muhammad Ali Hashim Direct 72,765 1,212 — 73,977Dr Mohd Hafetz bin Ahmad Direct 1,050 17 — 1,067Abdul Malek bin Talib Direct 105 1 — 106

– QSR Brands Bhd

A.F.M Shafiqul Hafiz Direct 1,000 — — 1,000

– Sergam Berhad

A.F.M Shafiqul Hafiz Direct 1 — — 1

* The ordinary share is RM0.50 each.

None of the other Directors holding office at 31 December 2007 had any interest in the ordinary shares of the Company andof its related corporations during the year.

JOHOR LAND BERHAD


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DIRECTORS’ BENEFITS

Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive anybenefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors asshown in the financial statements) by reason of a contract made by the Company or a related corporation with the Directoror with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest.

There were no arrangements during and at the end of the financial year which had the object of enabling Directors of theCompany to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other bodycorporate.

ISSUE OF SHARES

There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.

OPTIONS GRANTED OVER UNISSUED SHARES

No options were granted to any person to take up unissued shares of the Company during the financial year.

OTHER STATUTORY INFORMATION

Before the balance sheets and income statements of the Group and of the Company were made out, the Directors tookreasonable steps to ascertain that:

(i) all known bad debts have been written off and adequate provision has been made for doubtful debts, and

(ii) all current assets have been stated at the lower of cost and net realisable value.

At the date of this report, the Directors are not aware of any circumstances:

(i) that would render the amount written off for bad debts, or the amount of the provision for doubtful debts in the Groupand in the Company inadequate to any substantial extent, or

(ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Companymisleading, or

(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group andof the Company misleading or inappropriate, or

(iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financialstatements of the Group and of the Company misleading.

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OTHER STATUTORY INFORMATION (CONT’D.)

At the date of this report, there does not exist:

(i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and whichsecures the liabilities of any other person, or

(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.

No contingent liability or other liability of any company in the Group has become enforceable, or is likely to becomeenforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, willor may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due.

In the opinion of the Directors, the results of the operations of the Group and of the Company for the year ended 31 December 2007 have not been substantially affected by any item, transaction or event of a material and unusual naturenor has any such item, transaction or event occurred in the interval between the end of that financial year and the date ofthis report.

AUDITORS

The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.

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

Tan Sri Dato’ Muhammad Ali Hashim A.F.M Shafiqul Hafiz

Johor Bahru,Date: 14 April 2008

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Statement by DirectorsPursuant to Section 169(15) of the Companies Act, 1965

Statutory DeclarationPursuant to Section 169(16) of the Companies Act, 1965

In the opinion of the Directors, the financial statements set out on pages 72 to 122, are drawn up in accordance with theprovisions of the Companies Act, 1965 and applicable approved Financial Reporting Standards issued by the MalaysianAccounting Standards Board so as to give a true and fair view of the state of affairs of the Group and of the Company at 31 December 2007 and of the results of their operations and cash flows for the financial year ended on that date.

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

Tan Sri Dato’ Muhammad Ali Hashim A.F.M Shafiqul Hafiz


I, Mariana binti Sidi, the officer primarily responsible for the financial management of JOHOR LAND BERHAD, do solemnlyand sincerely declare that the financial statements set out on pages 72 to 122 are, to the best of my knowledge and belief,correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions ofthe Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed in Johor Bahru in the State of Johor on 14 April 2008.

Mariana binti Sidi

Before me:

R. Ramasamy

P.I.S.Commissioner for OathsJ058

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Report of the Auditors To the members of Johor Land Berhad

We have audited the financial statements set out on pages 72 to 122. The preparation of the financial statements is theresponsibility of the Company’s Directors.

It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report ouropinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do notassume responsibility to any other person for the content of this report.

We conducted our audit in accordance with approved Standards on Auditing in Malaysia. Those standards require that we planand perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimates made by the Directors,as well as evaluating the overall financial statements presentation. We believe our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 andapplicable approved Financial Reporting Standards issued by the Malaysian Accounting Standards Board so as to give atrue and fair view of:

(i) the state of affairs of the Group and of the Company as at 31 December 2007 and of the results of their operationsand cash flows for the financial year ended on that date; and

(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of theGroup and of the Company; and

(b) the accounting and other records and the registers required by the Companies Act, 1965 to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of thesaid Act.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financialstatements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financialstatements and we have received satisfactory information and explanations required by us for those purposes.

The audit reports on the financial statements of the subsidiaries were not subject to any qualification and did not include anycomment made under sub-section (3) of Section 174 of the Act.

KPMG Ang Ah Leck

Firm Number: AF 0758 PartnerChartered Accountants Approval Number: 1991/09/09 (J)


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Balance SheetsAs at 31 December 2007

Group CompanyNote 2007 2006 2007 2006

RM RM RM RM

AssetsProperty, plant and equipment 3 2,766,340 3,782,524 2,017,940 2,269,524Investment properties 4 29,034,339 3,184,538 28,384,339 —Investments in subsidiaries 5 — — 19,548,000 19,548,000Investments in associates 6 46,527,112 40,463,832 37,188,721 37,188,721Land held for future development 7 493,689,381 500,009,076 483,596,620 487,977,226Deferred tax assets 8 16,123,294 15,786,251 15,533,251 15,787,251

Total non-current assets 588,140,466 563,226,221 586,268,871 562,770,722

Property development projects 9 135,376,499 102,060,655 102,672,690 63,513,070Inventories 10 35,840,865 48,231,686 18,300,904 44,940,628Trade and other receivables 11 45,193,287 38,338,015 49,991,372 46,209,770Short term investments 12 117,250 176,462 117,250 176,462Tax recoverable 2,136,672 — 2,136,672 —Cash and cash equivalents 13 3,081,871 5,332,139 2,393,669 2,540,653

Total current assets 221,746,444 194,138,957 175,612,557 157,380,583

Total assets 809,886,910 757,365,178 761,881,428 720,151,305

EquityShare capital 122,000,000 122,000,000 122,000,000 122,000,000Reserves 369,115,511 369,115,511 369,115,511 369,115,511Retained earnings 149,350,826 148,846,545 129,588,938 116,250,987

Total equity attributable to shareholders of theCompany/Total equity 14 640,466,337 639,962,056 620,704,449 607,366,498

LiabilitiesLoans and borrowings/Total non-current liabilities 15 60,645,064 61,142,084 35,717,064 52,462,084

Trade and other payables 16 21,465,396 15,380,467 22,574,434 23,665,157Loans and borrowings 15 83,350,872 40,573,684 79,350,872 36,573,684Dividend payable 3,534,609 — 3,534,609 —Taxation 424,632 306,887 — 83,882

Total current liabilities 108,775,509 56,261,038 105,459,915 60,322,723

Total liabilities 169,420,573 117,403,122 141,176,979 112,784,807

Total equity and liabilities 809,886,910 757,365,178 761,881,428 720,151,305

The accompanying notes form an integral part of the financial statements.

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Income StatementsFor the year ended 31 December 2007

Group Company

Note 2007 2006 2007 2006

RM RM RM RM

Revenue 17 63,356,305 74,660,253 89,239,069 78,689,709Cost of goods sold (42,367,011) (43,354,848) (37,736,246) (37,698,051)

Gross profit 20,989,294 31,305,405 51,502,823 40,991,658Other income 4,000,673 1,901,947 2,656,310 1,645,512Distribution expenses (4,896,683) (2,655,941) (4,099,306) (2,628,775)Administrative expenses (11,775,663) (11,183,645) (10,717,439) (9,701,152)Other expenses (1,418,043) (358,423) (2,219,620) (1,110)

Results from operating activities 6,899,578 19,009,343 37,122,768 30,306,133Interest income 141,471 281,807 62,021 38,678Finance costs 18 (7,975,449) (6,068,490) (7,489,919) (5,858,784)

Operating profit 19 (934,400) 13,222,660 29,694,870 24,486,027Share of profit after tax and minority interest

of equity accounted associates 9,202,021 8,876,148 — —

Profit before tax 8,267,621 22,098,808 29,694,870 24,486,027

Tax expense 20 (1,577,780) (4,423,519) (10,171,359) (7,353,612)

Profit for the year 6,689,841 17,675,289 19,523,511 17,132,415

Attributable to:

Shareholders of the Company 6,689,841 17,747,702 19,523,511 17,132,415Minority interest — (72,413) — —

Profit for the year 6,689,841 17,675,289 19,523,511 17,132,415

Basic earnings per ordinary share (sen) 21 5.53 14.66

Diluted earnings per ordinary share (sen) 21 1.98 4.42


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Statement of Changes in EquityFor the year ended 31 December 2007

Attributable to shareholders of the Company

Non-distributable

Convertible

unsecured

Share loan stocks Distributable

Share premium -equity Treasury Retained Minority Total

Note capital reserve portion shares earnings Total interest equity

RM RM RM RM RM RM RM RM

Group

At 1 January 2006 122,000,000 78,581,839 291,388,446 (760,158) 140,693,324 631,903,451 72,413 631,975,864Profit for the year — — — — 17,747,702 17,747,702 (72,413) 17,675,289Treasury shares acquired — — — (94,616) — (94,616) — (94,616)Dividends to shareholders 22 — — — — (9,594,481) (9,594,481) — (9,594,481)

At 31 December 2006 122,000,000 78,581,839 291,388,446 (854,774) 148,846,545 639,962,056 — 639,962,056Profit for the year — — — — 6,689,841 6,689,841 — 6,689,841Dividends to shareholders 22 — — — — (6,185,560) (6,185,560) — (6,185,560)

At 31 December 2007 122,000,000 78,581,839 291,388,446 (854,774) 149,350,826 640,466,337 — 640,466,337


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Statement of Changes in EquityFor the year ended 31 December 2007

Non-distributable

Convertible

unsecured

Share loan stocks- Distributable

Share premium equity Treasury Retained Total

Note capital reserve portion shares earnings equity

RM RM RM RM RM RM

Company

At 1 January 2006 122,000,000 78,581,839 291,388,446 (760,158) 108,713,053 599,923,180Profit for the year — — — — 17,132,415 17,132,415Treasury shares acquired — — — (94,616) — (94,616)Dividends to shareholders 22 — — — — (9,594,481) (9,594,481)

At 31 December 2006 122,000,000 78,581,839 291,388,446 (854,774) 116,250,987 607,366,498Profit for the year — — — — 19,523,511 19,523,511Dividends to shareholders 22 — — — — (6,185,560) (6,185,560)

At 31 December 2007 122,000,000 78,581,839 291,388,446 (854,774) 129,588,938 620,704,449


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Cash Flow StatementsFor the year ended 31 December 2007

Group Company

2007 2006 2007 2006

RM RM RM RM

Cash flows from operating activities

Profit before tax 8,267,621 22,098,808 29,694,870 24,486,027

Adjustments for:-Impairment losses:– Investment in a subsidiary — — 30,000 —– Goodwill 30,000 — — —Change in fair value on investment properties (2,251,139) 276,920 (2,251,139) —Depreciation 495,301 565,037 392,036 463,295Finance costs 7,975,449 6,068,490 7,489,919 5,858,784(Gain)/Loss on disposal of:– Property, plant and equipment (18,181) 14,159 (18,181) —– Quoted shares (108,027) (3,018) (108,027) (3,018)– Investment properties (465,462) — — —

Write off:– Property, plant and equipment 690,038 8,844 1,585 1,109– Investment in associate 131,750 — — —Gross dividends from quoted shares (7,502) (2,371) (7,502) (2,371)Interest income (141,471) (281,807) (62,021) (38,678)Share in results of associate (9,202,021) (8,876,148) — —

Operating profit before changes in working capital 5,396,356 19,868,914 35,161,540 30,765,148Changes in working capital:

Inventories 12,390,821 (934,580) 26,639,724 811,767Trade and other receivables (6,855,272) 2,349,208 (3,781,602) 4,622,069Trade and other payables 6,084,929 (6,889,439) (1,090,723) 2,448,294Property development projects (16,028,895) (19,708,172) (23,811,760) (5,397,963)

Cash generated from/(used in) operations 987,939 (5,314,069) 33,117,179 33,249,315Interest received 141,471 281,807 62,021 38,678Dividend received 3,006,993 10,825,175 — —Interest paid (4,920,469) (3,000,198) (4,434,939) (2,790,492)Tax paid (3,933,750) (5,711,238) (12,137,913) (8,036,277)

Net cash (used in)/from operating activities (4,717,816) (2,918,523) 16,606,348 22,461,224


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Cash Flow StatementsFor the year ended 31 December 2007

Group Company

2007 2006 2007 2006

RM RM RM RM

Cash flows from investing activities

Acquisition of:-– Property, plant and equipment (665,224) (146,081) (638,106) (26,802)– Investment in associate — (131,750) — —– Quoted investments (562,935) (422,353) (562,935) (422,353)– Investment properties (25,637,199) — (25,637,199) —– Additional investment in a subsidiary (30,000) — (30,000) —Land held for future development (10,967,254) (1,090,411) (10,967,254) (1,090,411)

Proceeds from disposal of:-– Property, plant and equipment 18,249 59,438 18,249 —– Investment properties 3,000,000 — — —– Quoted investments 730,172 363,528 730,174 363,527Dividends received 7,502 2,371 7,502 2,371

Net cash used in investing activities (34,106,689) (1,365,258) (37,079,569) (1,173,668)

Cash flows from financing activities

Payment of finance lease liabilities (59,737) (284,465) (59,737) (259,450)Net proceeds from borrowings 4,881 16,414 4,881 16,414Drawdown of bridging loan 16,248,000 8,680,000 — —Dividends paid to shareholders of the Company (2,650,951) (9,594,481) (2,650,951) (9,594,481)Interest paid on convertible unsecured loan stocks (19,800,000) (4,023,288) (19,800,000) (4,023,288)Treasury shares — (94,616) — (94,616)

Net cash used in financing activities (6,257,807) (5,300,436) (22,505,807) (13,955,421)

Net (decrease)/increase in cash and cash equivalents (45,082,312) (9,584,217) (42,979,028) 7,332,135

Cash and cash equivalents at 1 January (26,120,364) (16,536,147) (28,911,850) (36,243,985)

Cash and cash equivalents at 31 December (71,202,676) (26,120,364) (71,890,878) (28,911,850)

Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts:

Cash and bank balances 3,081,871 3,611,550 2,393,669 2,540,653Fixed deposits with a licensed banks — 1,720,589 — —Bank overdrafts (74,284,547) (31,452,503) (74,284,547) (31,452,503)

(71,202,676) (26,120,364) (71,890,878) (28,911,850)


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Notes to the Financial Statements

Johor Land Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Boardof Bursa Malaysia Securities Berhad. The addresses of the principal place of business and registered office of the Companyare as follows:

Principal place of business

Kompleks Mutiara Johor LandJalan Bukit MutiaraBandar Dato Onn81100 Johor BahruJohor Darul Takzim

Registered office

13th Floor, Menara Johor CorporationKOTARAYA80000 Johor BahruJohor Darul Takzim

The consolidated financial statements of the Company as at and for the year ended 31 December 2007 comprise the Companyand its subsidiaries and the Group’s interest in associates.

The principal activities of the Company consist of the housing development and investment holdings. The principal activities ofits subsidiaries are disclosed in Note 5.

The holding and ultimate holding corporation during the financial year is Johor Corporation, a body corporate established underthe Johor Corporation Enactment (No. 4 of 1968) (as amended by Enactment No. 5 of 1995).

The financial statements were approved by the Board of Directors on 14 April 2008.

1. BASIS OF PREPARATION

(a) Statement of compliance

The financial statements of the Group and of the Company have been prepared in accordance with applicableapproved Financial Reporting Standards (FRS) issued by the Malaysian Accounting Standards Board (MASB), theprovisions of the Companies Act, 1965 and accounting principles generally accepted in Malaysia.

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1. BASIS OF PREPARATION (CONT’D.)

(a) Statement of compliance (Cont’d.)

The MASB has also issued the following FRSs and Interpretations that are effective for annual periods beginningafter 1 January 2007 and that have not been applied in preparing these financial statements:

FRSs / Interpretations Effective date

FRS 107, Cash Flow Statements 1 July 2007FRS 111, Construction Contracts 1 July 2007FRS 112, Income Taxes 1 July 2007FRS 118, Revenue 1 July 2007FRS 120, Accounting for Government Grants and

Disclosure of Government Assistance 1 July 2007Amendment to FRS 121, The Effects of Changes in Foreign

Exchange Rates – Net Investment in a Foreign Operation 1 July 2007FRS 134, Interim Financial Reporting 1 July 2007FRS 137, Provisions, Contingent Liabilities and Contingent Assets 1 July 2007FRS 139, Financial Instruments: Recognition and Measurement To be announcedIC Interpretation 1, Changes in Existing Decommissioning,

Restoration and Similar Liabilities 1 July 2007IC Interpretation 2, Members’ Shares in Co-operative

Entities and Similar Instruments 1 July 2007IC Interpretation 5, Rights to Interests arising from

Decommissioning, Restoration and Environmental Rehabilitation Funds 1 July 2007

IC Interpretation 6, Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment 1 July 2007

IC Interpretation 7, Applying the Restatement Approach under FRS 129, Financial Reporting in Hyperinflationary Economies 1 July 2007

IC Interpretation 8, Scope of FRS 2 1 July 2007

The Group and the Company plan to apply the abovementioned FRSs and Interpretations for the annual periodbeginning 1 January 2008, except for FRS 139 which its effective date has yet to be announced.

The impact of applying FRS 139 on the financial statements upon first adoption as required by paragraph 30(b) ofFRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of theexemption given in FRS 139.103AB.

The initial application of the other FRSs and Interpretations are not expected to have any material impact on thefinancial statements of the Group and of the Company.

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1. BASIS OF PREPARATION (CONT’D.)

(b) Basis of measurement

The financial statements have been prepared on the historical cost except for investment properties in Note 2(g).

(c) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. Allfinancial information are presented in RM, unless otherwise stated.

(d) Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions thataffect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognised in the period in which the estimate is revised and in any future periods affected.

There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies thathave significant effect on the amounts recognised in the financial statements other than those disclosed in thefollowing notes:

Note 2(g) – valuation of investment propertiesNote 2s(iii) – revenue recognition on property development

2. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to the periods presented in these financialstatements, and have been applied consistently by Group entities, unless otherwise stated.

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities, including unincorporated entities, controlled by the Group. Control exists when theGroup has the ability to exercise its power to govern the financial and operating policies of an entity so as toobtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable aretaken into account. Subsidiaries are consolidated using the purchase method of accounting.

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2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

(a) Basis of consolidation (Cont’d.)

(i) Subsidiaries (Cont’d.)

Under the purchase method of accounting, the financial statements of subsidiaries are included in theconsolidated financial statements from the date that control commences until the date that control ceases.

Investments in subsidiaries are stated in the Company’s balance sheet at cost less impairment losses, unlessthe investment is classified as held for sale unless the investment is classified as held for sale (or included ina disposal group that is classified as held for sale).

(ii) Associates

Associates are entities, including unincorporated entities, in which the Group has significant influence, but notcontrol, over the financial and operating policies.

Associates are accounted for in the consolidated financial statements using the equity method unless it isclassified as held for sale (or included in a disposal group that is classified as held for sale). The consolidatedfinancial statements include the Group’s share of the profit or loss of the equity accounted associates, afteradjustments to align the accounting policies with those of the Group, from the date that significant influencecommences until the date that significant influence ceases.

When the Group’s share of losses exceeds its interest in an equity accounted associate, the carrying amountof that interest (including any long-term investments) is reduced to nil and the recognition of further losses isdiscontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.

Investments in associates are stated in the Company’s balance sheet at cost less any impairment losses, unlessthe investment is classified as held for sale (or included in a disposal group that is classified as held for sale).

(iii) Changes in Group composition

Where a subsidiary issues new equity shares to minority interest for cash consideration and the issue pricehas been established at fair value, the reduction in the Group’s interests in the subsidiary is accounted for asa disposal of equity interest with the corresponding gain or loss recognised in the income statements.

When the Group purchases a subsidiary’s equity shares from minority interest for cash consideration and thepurchase price has been established at fair value, the accretion of the Group’s interests in the subsidiary isaccounted for as a purchase of equity interest for which the acquisition method of accounting is applied.

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(a) Basis of consolidation (Cont’d.)

(iii) Changes in Group composition (Cont’d.)

The Group treats all other changes in group composition as equity transactions between the Group and itsminority shareholders. Any difference between the Group’s share of net assets before and after the change,and any consideration received or paid, is adjusted to or against Group reserves.

(iv) Minority interest

Minority interest at the balance sheet date, being the portion of the net identifiable assets (excluding goodwill)of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectlythrough subsidiaries, are presented in the consolidated balance sheet and statement of changes in equity withinequity, separately from equity attributable to the equity shareholders of the Company. Minority interest in theresults of the Group are presented on the face of the consolidated income statement as an allocation of thetotal profit or loss for the year between minority interest and the equity shareholders of the Company.

Where losses applicable to the minority exceed the minority’s interest in the equity of a subsidiary, the excess,and any further losses applicable to the minority, are charged against the Group’s interest except to the extentthat the minority has a binding obligation to, and is able to, make additional investment to cover the losses. Ifthe subsidiary subsequently reports profits, the Group’s interest is allocated with all such profits until theminority’s share of losses previously absorbed by the Group has been recovered.

(v) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-grouptransactions, are eliminated in preparing the consolidated financial statements.

Unrealised gains arising from transactions with equity accounted investees are eliminated against theinvestment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the sameway as unrealised gains, but only to the extent that there is no evidence of impairment.

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(b) Foreign currency

Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchangerates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at thebalance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetaryassets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to thefunctional currency at the exchange rate at the date that the fair value was determined. Foreign currency differencesarising on retranslation are recognised in the income statements.

(c) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are stated at cost less any accumulated depreciation and anyaccumulated impairment losses.

Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costsdirectly attributable to bringing the asset to working condition for its intended use, and the costs of dismantlingand removing the items and restoring the site on which they are located. The cost of self-constructed assetsalso includes the cost of materials and direct labour and, for qualifying assets, borrowing costs are capitalisedin accordance with the Group’s accounting policy. Purchased software that is integral to the functionality of therelated equipment is capitalised as part of that equipment.

The cost of property, plant and equipment recognised as a result of a business combination is based on fairvalue at acquisition date. The fair value of property is the estimated amount for which a property could beexchanged between a willing buyer and a willing seller in an arm’s length transaction after proper marketingwherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value of otheritems of plant and equipment is based on the quoted market prices for similar items.

When significant parts of an item of property, plant and equipment have different useful lives, they areaccounted for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing theproceeds from disposal with the carrying amount of property, plant and equipment and are recognised netwithin “other income” or “other expenses” respectively in the income statements.

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(c) Property, plant and equipment (Cont’d.)

(ii) Reclassification to investment property

Property that is being constructed for future use as investment property is accounted for as property, plant andequipment until construction or development is complete, at which time it is remeasured to fair value andreclassified as investment property. Any gain or loss arising on remeasurement is recognised in the incomestatements.

(iii) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount ofthe item if it is probable that the future economic benefits embodied within the part will flow to the Groupand its cost can be measured reliably. The carrying amount of those parts that are replaced is derecognised.The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statementas incurred.

(iv) Depreciation

Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives ofeach part of an item of property, plant and equipment. Long and short leasehold land is amortised based onstraight-line basis over the leasehold periods of 30 to 90 years respectively. Freehold land is not depreciated.

The estimated useful lives for the current and comparative periods are as follows:

Buildings 10 – 50 yearsPlant and machinery 5 – 8.3 yearsFurniture, fittings and equipment 4 – 5 years and replacement basisMotor vehicles 5 years

Depreciation methods, useful lives and residual values are reassessed at the balance sheet date.

(d) Leased assets

(i) Finance lease

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classifiedas finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of itsfair value and the present value of the minimum lease payments. Subsequent to initial recognition, the assetis accounted for in accordance with the accounting policy applicable to that asset.

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(d) Leased assets (Cont’d.)

(i) Finance lease (Cont’d.)

Minimum lease payments made under finance leases are apportioned between the finance expense and thereduction of the outstanding liability. The finance expense is allocated to each period during the lease term soas to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent leasepayments are accounted for by revising the minimum lease payments over the remaining term of the leasewhen the lease adjustment is confirmed.

(ii) Operating lease

Other leases are operating leases and, except for property interest held under operating lease, the leasedassets are not recognised on the Group’s balance sheet. Property interest held under an operating lease, whichis held to earn rental income or for capital appreciation or both, is classified as investment property.

Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee bythe end of the lease term is treated as an operating lease. The payment made on entering into or acquiring aleasehold land is accounted for as prepaid lease payments, except for leasehold land classified as investmentproperty, land held for future development and property development projects.

Payments made under operating leases are recognised in the income statements on a straight-line basis overthe term of the lease. Lease incentives received are recognised as an integral part of the total lease expense,over the term of the lease.

(e) Intangible assets

Goodwill

Goodwill arises on business combinations and is measured at cost less any accumulated impairment losses.

Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of theidentifiable assets, liabilities and contingent liabilities of the acquiree.

Any excess of the Group’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingentliabilities over the cost of acquisition is recognised immediately in income statements.

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(f) Investments in debt and equity securities

Investments in debt and equity securities are recognised initially at fair value plus attributable transaction costs.

Subsequent to initial recognition, all current investments are carried at the lower of cost and market value,determined on an individual investment basis by category of investments.

On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognisedin the income statements.

(g) Investment properties

(i) Investment property carried at fair value

Investment properties are properties which are owned or held under a leasehold interest to earn rental incomeor for capital appreciation or for both. These include land held for a currently undetermined future use.Properties that are occupied by the companies in the Group are accounted for as owner-occupied rather thanas investment properties.

Investment property are measured initially at cost and subsequently at fair value with any change thereinrecognised in the income statements.

(ii) Reclassification to / from investment property

When an item of property, plant and equipment is transferred to investment property following a change in itsuse, any difference arising at the date of transfer between the carrying amount of the item immediately priorto transfer and its fair value is recognised directly in equity as a revaluation of property, plant and equipment.However, if a fair value gain reverses a previous impairment loss, the gain is recognised in the incomestatements. Upon disposal of an investment property, any surplus previously recorded in equity is transferredto retained earnings; the transfer is not made through the income statements.

When an item of inventory or property development is transferred to investment property following a changein its use, any difference arising at the date of transfer between the carrying amount of the item immediatelyprior to the transfer and its fair value is recognised in the income statements.

When the use of a property changes such that it is reclassified as property, plant andequipment/inventories/property development, its fair value at the date of reclassification becomes its cost forsubsequent accounting.

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(g) Investment properties (Cont’d.)

(iii) Determination of fair value

An external, independent valuation firm, having appropriate recognised professional qualifications and recentexperience in the location and category of property being valued, values the Group’s investment propertyportfolio every annually.

The fair values are based on market values, being the estimated amount for which a property could beexchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s lengthtransaction after proper marketing wherein the parties had each acted knowledgeably, prudently and withoutcompulsion.

In the absence of current prices in an active market, the valuations are prepared by considering the aggregateof the estimated cash flows expected to be received from renting out the property. A yield that reflects thespecific risks inherent in the net cash flows then is applied to the net annual cash flows to arrive at theproperty valuation.

Valuations reflect, where appropriate: the type of tenants actually in occupation or responsible for meeting leasecommitments or likely to be in occupation after letting vacant accommodation, and the market’s generalperception of their creditworthiness; the allocation of maintenance and insurance responsibilities between theGroup and the lessee; and the remaining economic life of the property. When rent reviews or lease renewalsare pending with anticipated reversionary increases, it is assumed that all notices and where appropriatecounter-notices have been served validly and within the appropriate time.

Significant assumptions in arriving at the fair value of investment properties are disclosed in Note 4.

(h) Inventories

Inventories of completed houses are stated at the lower of cost and net realisable value. Cost is mainly determinedon specific identification basis and includes the cost of freehold/leasehold land and construction, and the appropriatedevelopment overheads.

Inventories, other than completed houses, are stated at the lower of cost (determined on the ‘first-in, first-out’ basisand the weighted-average method) and net realisable value. The cost of raw materials, consumables and otherinventories comprise the original cost of purchase plus the cost of bringing the inventories to their present location.Net realisable value represents the estimated selling price in the ordinary course of business less selling anddistribution costs and all other estimated costs of completion and the estimated costs necessary to make the sale.

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(i) Property development projects

Property development projects consist of land held for future development and current development expenditurewhich comprise construction and other related development costs including borrowings costs, is stated at cost lessany accumulated impairment losses.

The Group and the Company consider as current asset that proportion of property development projects on whichsales have been launched and/or the project is expected to be completed within the normal operating cycle of twoto three years. Cost of property development projects classified as current assets are stated at the lower of costand net realisable value.

When the outcome of a property development project cannot be estimated reliably, property development revenueis recognised to the extent of property development costs incurred that is probable of recovery.

Any anticipated loss on a property development project (including costs to be incurred over the defects liabilityperiod), is recognised as an expense immediately.

Accrued billings represent the excess of property development revenue recognised in the income statements overbillings to purchasers while progress billings represent the excess of billings to purchasers over propertydevelopment revenue recognised in the income statements.

(j) Receivables

Receivables are initially recognised at their cost when the contractual right to receive cash or another financial assetfrom another entity is established.

Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts.

Receivables are not held for the purpose of trading.

(k) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investmentswhich have an insignificant risk of changes in value. For the purpose of the cash flow statement, cash and cashequivalents are presented net of bank overdrafts and pledged deposits, if any.

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(l) Impairment of assets

The carrying amounts of assets except for financial assets, inventories, deferred tax assets, and investment propertythat is measured at fair value, non-current assets (or disposal groups) classified as held for sale are reviewed at eachreporting date to determine whether there is any indication of impairment. If any such indication exists, then theasset’s recoverable amount is estimated. For goodwill the recoverable amount is estimated at each reporting date.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value lesscosts to sell. In assessing value in use, the estimated future cash flows are discounted to their present value usinga pre-tax discount rate that reflects current market assessments of the time value of money and the risks specificto the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assetsthat generates cash inflows from continuing use that are largely independent of the cash inflows of other assets orgroups of assets (the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose ofimpairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds itsrecoverable amount. Impairment losses are recognised in the income statements. Impairment losses recognised inrespect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to theunits and then to reduce the carrying amount of the other assets in the unit (groups of units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognisedin prior periods are assessed at each reporting date for any indications that the loss has decreased or no longerexists. An impairment loss is reversed if there has been a change in the estimates used to determine therecoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does notexceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairmentloss had been recognised. Reversals of impairment losses are credited to the income statements in the year inwhich the reversals are recognised.

(m) Share capital

(i) Shares issue expenses

Incremental costs directly attributable to issue of shares and share options classified as equity are recognisedas a deduction from equity.

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(m) Share capital (Cont’d.)

(ii) Repurchase of share capital

When share capital recognised as equity is repurchased, the amount of the consideration paid, including directlyattributable costs, is recognised as a deduction from equity and is not re-valued for subsequent changes in thefair value or market price of shares. Repurchased shares are classified as treasury shares and are presentedas a deduction from total equity.

Where treasury shares are distributed as share dividends, the cost of the treasury shares is applied in thereduction of the share premium account or distributable reserves, or both.

Where treasury shares are reissued by re-sale in the open market, the difference between the salesconsideration net of directly attributable costs and the carrying amount of the treasury shares is recognised inequity.

(n) Compound financial instruments

Compound financial instruments issued by the Group comprise convertible Notes that can be converted to sharecapital at the option of the holder, and the number of shares to be issued does not vary with changes in their fair value.

The liability component of a compound financial instrument is recognised initially at the fair value of a similar liabilitythat does not have an equity conversion option. The equity component is recognised initially at the differencebetween the fair value of the compound financial instrument as a whole and the fair value of the liability component.Any directly attributable transaction costs are allocated to the liability and equity components in proportion to theirinitial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instruments is measured atamortised cost using the effective interest method. The equity component of a compound financial instruments isnot remeasured subsequent to initial recognition.

(o) Loans and borrowings

Loans and borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the income statements over the period of the loans and borrowings using the effective interest method.

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(p) Employee benefits

Short term employee benefits

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave aremeasured on an undiscounted basis and are expensed as the related service is provided.

A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans ifthe Group has a present legal or constructive obligation to pay this amount as a result of past service provided bythe employee and the obligation can be estimated reliably.

The Group’s contribution to statutory pension funds are charged to the income statements in the year to which theyrelate. Once the contributions have been paid, the Group has no further payment obligations.

(q) Payables

Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractualobligation to deliver cash or another financial asset to another entity.

(r) Revenue recognition

(i) Goods sold

Revenue from the sale of goods is measured at fair value of the consideration received or receivable, net ofreturns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risksand rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, theassociated costs and possible return of goods can be estimated reliably, and there is no continuingmanagement involvement with the goods.

(ii) Rental income

Rental income from investment property is recognised in the income statement on a straight-line basis overthe term of the lease. Lease incentives granted are recognised as an integral part of the total rental income,over the term of the lease.

(iii) Revenue from property development

Revenue from property development activities is recognised based on the stage of completion measured byreference to surveys of work performed.

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(r) Revenue recognition (Cont’d.)

(iii) Revenue from property development (Cont’d.)

Where the financial outcome of a property development activity cannot be reliably estimated, propertydevelopment revenue is recognised only to the extent of property development costs incurred that is probablewill be recoverable, and property development costs on the development units sold are recognised as anexpense in the period in which they are incurred.

Any expected loss on a development project, including costs to be incurred over the defects liability period, isrecognised immediately in the income statement.

(iv) Dividend income

Dividend income is recognised when the right to receive payment is established.

(s) Interest income and borrowing costs

Interest income is recognised as it accrues, using the effective interest method.

All borrowing costs are recognised in the income statements using the effective interest method, in the period inwhich they are incurred except to the extent that they are capitalised as being directly attributable to the property development projects which necessarily takes a substantial period of time to be prepared for its intendeduse or sale.

The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for theasset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset forits intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantiallyall the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed.

(t) Tax expense

Tax expense comprises current and deferred tax. Tax expense is recognised in the income statements except to theextent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantivelyenacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

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(t) Tax expense (Cont’d.)

Deferred tax is recognised using the balance sheet method, providing for temporary differences between thecarrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes.Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initialrecognition of assets or liabilities in a transaction that is not a business combination and that affects neitheraccounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be appliedto the temporary differences when they reverse, based on the laws that have been enacted or substantively enactedby the balance sheet date.

Deferred tax liability is recognised for all taxable temporary differences.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available againstwhich temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reducedto the extent that it is no longer probable that the related tax benefit will be realised.

(u) Earnings per share

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculatedby dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average numberof ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or lossattributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effectsof all dilutive potential ordinary shares, which comprise convertible notes.

(v) Segment reporting

A segment is a distinguishable component of the Group that is engaged either in providing products or services(business segment), or in providing products or services within a particular economic environment (geographicalsegment), which is subject to risks and rewards that are different from those of other segments.

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3. PROPERTY, PLANT AND EQUIPMENT

Office

Land equipment,

and Plant and furniture Motor

buildings machinery and fittings vehicles Total

RM RM RM RM RM

Group

Cost

At 1 January 2006 3,818,075 1,047,289 1,260,244 1,994,278 8,119,886Additions — — 103,081 43,000 146,081Disposals/Written off — (62,000) (83,570) (101,813) (247,383)Transfer to investment properties (1,256,466) — — — (1,256,466)

At 31 December 2006/1 January 2007 2,561,609 985,289 1,279,755 1,935,465 6,762,118Additions — — 665,224 — 665,224Disposals/Written off — (985,289) (250,883) — (1,236,172)Transfer to investment properties (496,001) — — — (496,001)

At 31 December 2007 2,065,608 — 1,694,096 1,935,465 5,695,169

Depreciation

At 1 January 2006 540,012 322,244 853,259 1,193,530 2,909,045Depreciation charge 80,642 — 188,187 296,208 565,037Disposals/Written off — (19,080) (71,197) (74,665) (164,942)Transfer to investment properties (329,546) — — — (329,546)

At 31 December 2006/1 January 2007 291,108 303,164 970,249 1,415,073 2,979,594Depreciation charge 68,972 — 193,761 232,568 495,301Disposals/Written off — (303,164) (242,902) — (546,066)

At 31 December 2007 360,080 — 921,108 1,647,641 2,928,829

Carrying amounts

At 31 December 2007 1,705,528 — 772,988 287,824 2,766,340

At 31 December 2006 2,270,501 682,125 309,506 520,392 3,782,524

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3. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

Office

Land equipment,

and furniture Motor

buildings and fittings vehicles Total

RM RM RM RM

Company

Cost

At 1 January 2006 1,766,790 1,056,930 1,872,206 4,695,926Additions — 26,802 — 26,802Written off — (9,600) — (9,600)

At 31 December 2006/1 January 2007 1,766,790 1,074,132 1,872,206 4,713,128Transfer to investment property (496,001) — — (496,001)Additions — 638,106 — 638,106Disposal/Written off — (209,394) — (209,394)

At 31 December 2007 1,270,789 1,502,844 1,872,206 4,645,839

Depreciation

At 1 January 2006 145,116 741,886 1,101,798 1,988,800Depreciation charge 15,444 161,286 286,565 463,295Written off — (8,491) — (8,491)

At 31 December 2006/1 January 2007 160,560 894,681 1,388,363 2,443,604Depreciation charge 15,448 152,620 223,968 392,036Disposal/Written off — (207,741) — (207,741)

At 31 December 2007 176,008 839,560 1,612,331 2,627,899

Carrying amounts

At 31 December 2007 1,094,781 663,284 259,875 2,017,940

At 31 December 2006 1,606,230 179,451 483,843 2,269,524

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3. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

Group Company

2007 2006 2007 2006

RM RM RM RM

Carrying amounts of land and buildings

At cost

Freehold land 893,924 1,380,027 498,574 984,677Buildings 811,604 890,474 596,207 621,553

1,705,528 2,270,501 1,094,781 1,606,230

4. INVESTMENT PROPERTIES

Group Company

2007 2006 2007 2006

RM RM RM RM

At fair value

At 1 January 3,184,538 2,534,538 — —Additions 25,637,199 — 25,637,199 —Transfer from property, plant and equipment 496,001 926,920 496,001 —Disposal (2,534,538) — — —Change in fair value 2,251,139 (276,920) 2,251,139 —

At 31 December 29,034,339 3,184,538 28,384,339 —

Included in the above are:

Leasehold land with unexpired lease period of:– less than 50 years 93,600 93,600 — —– more than 50 years — 2,021,261 — —Factory buildings 556,400 1,069,677 — —Sports complex 8,820,000 — 8,820,000 —Freehold land 19,564,339 — 19,564,339 —

29,034,339 3,184,538 28,384,339 —

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4. INVESTMENT PROPERTIES (CONT’D.)

The Group’s and the Company’s investment properties were revalued in December 2007 by independent professionalqualified valuers using open market value method. Certain freehold land with fair value of RM1,250,000 are currently vacant.

5. INVESTMENTS IN SUBSIDIARIES

Company

2007 2006

RM RM

Unquoted investment – at cost 21,078,000 21,048,000Less: Impairment losses (1,530,000) (1,500,000)

19,548,000 19,548,000

The subsidiaries, all incorporated in Malaysia are as follows:

Effective

ownership

Name of Company Principal activities interest

2007 2006

% %

Advance Development Sdn. Bhd. Property developer 100 100

Pembinaan Prefab Sdn. Bhd. Property developer 100 100

Johor Land Manufacturing Sdn. Bhd. Manufacturer of metal door frames 100 75and trading of building materials.It ceased operation during the yearand remains dormant.

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6. INVESTMENTS IN ASSOCIATES

Group Company

2007 2006 2007 2006

RM RM RM RM

Unquoted shares, at cost 45,712,420 45,844,170 45,712,420 45,712,420Dividend received out of pre-acquisition profits (8,523,699) (8,523,699) (8,523,699) (8,523,699)Share of post-acquisition results of associates 9,338,391 3,143,361 — —

46,527,112 40,463,832 37,188,721 37,188,721

Summary financial information on the associates:

Effective

Name of company Country ownership Profit/ Total Total

incorporation interest Revenue (Loss) assets liabilities

(%) (100%) (100%) (100%) (100%)

RM’000 RM’000 RM’000 RM’000

2007

Revertex (Malaysia) Sdn. Bhd. Malaysia 30.07 531,003 29,748 277,888 (169,918)

During the year, an associate, Malaya Bangla Metal Fabricators Joint Venture Company Limited, ceased its operationand remained dormant thereon.

2006

Revertex (Malaysia) Sdn. Bhd. Malaysia 30.07 470,200 29,904 254,529 (166,695)Malaya Bangla Metal

Fabricators Joint Venture Company Limited Bangladesh 50.00 — (232) 166 (123)

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6. INVESTMENTS IN ASSOCIATES (CONT’D.)

Group

2007 2006

RM’000 RM’000

Contingent liabilities

Share of associates contingent liabilities incurred jointly with other investors– Bank guarantees for trade financing to suppliers (unsecured) 1,041 1,122

7. LAND HELD FOR FUTURE DEVELOPMENT

Group Company

2007 2006 2007 2006

RM RM RM RM

At cost

Freehold land 468,077,902 466,442,798 456,046,052 454,410,948Long leasehold land 31,931,174 32,475,867 31,931,174 32,475,867

At 1 January 500,009,076 498,918,665 487,977,226 486,886,815Additions 10,967,254 2,068,027 10,967,254 2,068,027Disposal (807,632) (977,616) (807,632) (977,616)

510,168,698 500,009,076 498,136,848 487,977,226

Transfer to land and development expenditure– Freehold land (13,222,967) — (11,283,878) —– Leasehold land (3,256,350) — (3,256,350) —At 31 December– Freehold land 465,822,189 468,077,902 455,729,428 456,046,052– Leasehold land 27,867,192 31,931,174 27,867,192 31,931,174

493,689,381 500,009,076 483,596,620 487,977,226

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7. LAND HELD FOR FUTURE DEVELOPMENT (CONT’D.)

Group Company

2007 2006 2007 2006

RM RM RM RM

The status of the land titles are as follows:– registered in the name of the holding corporation 25,057,922 19,305,914 25,057,922 19,305,914– in the process of being transferred to the name

of the Company 342,910,792 351,655,144 342,910,792 350,226,969– in the progress of being issued 18,799,722 20,026,457 18,799,722 20,026,457

Security

Development lands of the Company with carrying amount of RM21,114,866 (2006: RM22,595,412) are charged to thebank as security for borrowings as disclosed in Note 15.

Freehold land of a subsidiary consisting of 642 (2006: 731) pieces of land with carrying value of RM2,328,303 (2006:RM2,825,961) are charged to the bank for bridging loan facilities granted to that subsidiary as disclosed in Note 15.

8. DEFERRED TAX ASSETS

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities attributable to the following:

Group Company

2007 2006 2007 2006

RM RM RM RM

Property, plant and equipment (113,000) (74,000) (112,000) (73,000)Investment properties (585,000) — (585,000) —Convertible unsecured loan stocks (“CULS”) 16,178,251 15,860,251 16,178,251 15,860,251Others 643,043 — 52,000 —

16,123,294 15,786,251 15,533,251 15,787,251

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8. DEFERRED TAX ASSETS (CONT’D.)

Movement in temporary differences during the year.

At Recognised At 31 Recognised At 31

1 January in income December in income December

2006 statement 2006 statement 2007

RM RM RM RM RM

Group

Property, plant and equipment (82,000) 8,000 (74,000) (39,000) (113,000)Changes in fair value of investment properties — — — (585,000) (585,000)Convertible unsecured loan stocks 15,588,251 272,000 15,860,251 318,000 16,178,251Others — — — 643,043 643,043

15,506,251 280,000 15,786,251 337,043 16,123,294

Company

Property, plant and equipment (81,000) 8,000 (73,000) (39,000) (112,000)Changes in fair value of investment properties — — — (585,000) (585,000)Convertible unsecured loan stocks 15,588,251 272,000 15,860,251 318,000 16,178,251Others — — — 52,000 52,000

15,507,251 280,000 15,787,251 (254,000) 15,533,251

9. PROPERTY DEVELOPMENT PROJECTS

Property development projects comprise the following:

Group Company

2007 2006 2007 2006

RM RM RM RM

Land– Freehold land 1,582,983 2,401,040 — —– Long leasehold land 4,822,012 8,586,316 4,822,012 8,586,316Development cost 120,331,158 111,741,677 74,863,006 62,465,197

126,736,153 122,729,033 79,685,018 71,051,513

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9. PROPERTY DEVELOPMENT PROJECTS (CONT’D.)

Group Company

2007 2006 2007 2006

RM RM RM RM

Add: Costs incurred during the year– Development costs 41,990,775 60,189,936 30,094,281 38,011,638Transfer from land held for property development 16,479,317 — 14,540,228 —

185,206,245 182,918,969 124,319,527 109,063,151

Less: Costs recognised as an expense in income statement– Previous year (24,675,500) (40,376,550) (16,171,949) (12,936,406)– Current year (18,587,876) (21,633,793) (5,474,888) (16,171,947)

Sub-total 141,942,869 120,908,626 102,672,690 79,954,798Transfer to inventories (6,566,370) (18,847,971) — (16,441,728)

135,376,499 102,060,655 102,672,690 63,513,070

The title to the long leasehold land is held in escrow by the holding corporation.

In addition, 381 (2006: 75) pieces of freehold land in a subsidiary with carrying value of RM1,939,089 (2006:RM1,441,429) are charged to the bank for bridging loan facilities granted to that subsidiary as disclosed in Note 15.

Included in the development cost of the Group is interest expenses capitalised during the financial year of RM668,000(2006: RM269,000).

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10. INVENTORIES

Group Company

2007 2006 2007 2006

RM RM RM RM

Completed houses 35,822,356 48,224,834 18,282,395 44,933,776Other inventories 18,509 6,852 18,509 6,852

35,840,865 48,231,686 18,300,904 44,940,628

Certain titles of the completed houses of the Group and of the Company with carrying value amounting to RM28,838,200(2006: RM40,493,020) and RM18,282,395 (2006: RM40,493,020) are held in escrow by the holding corporation.

11. TRADE AND OTHER RECEIVABLES

Group Company

2007 2006 2007 2006

RM RM RM RM

Trade receivables 39,770,613 30,981,218 33,127,738 26,012,901Progress billings receivable 244,493 1,551,335 — —Other receivables, deposits and prepayments 3,946,208 4,943,486 915,821 4,715,732Due from holding corporation– non-trade 436,338 563,992 436,338 563,992Due from associates – trade — 68,211 — —Due from subsidiaries– trade — — 12,887,604 12,106,517– non-trade — — 1,828,236 2,580,855

— — 14,715,840 14,687,372

Due from related companies– trade 450 229,773 450 —– non-trade 795,185 — 795,185 229,773

795,635 229,773 795,635 229,773

45,193,287 38,338,015 49,991,372 46,209,770

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11. TRADE AND OTHER RECEIVABLES (CONT’D.)

In prior year, included in deposits of the Group is an amount of RM85,608 paid to a related company to acquire a pieceof land held for property development for a total consideration of RM865,078. The balance of the consideration is paidduring the year.

12. SHORT TERM INVESTMENTS

Group/Company

2007 2006

RM RM

Quoted shares in MalaysiaAt cost 117,250 176,462

Market value 117,250 210,475

13. CASH AND CASH EQUIVALENTS

Group Company

2007 2006 2007 2006

RM RM RM RM

Cash and bank balances 3,081,871 3,611,550 2,393,669 2,540,653Fixed deposits placed with licensed banks — 1,720,589 — —

3,081,871 5,332,139 2,393,669 2,540,653

Included in cash and bank balances of the Group and of the Company is an amount of RM2,661,881 (2006: RM2,913,405)and RM2,281,226 (2006: RM2,453,573), of which the utilisation is subject to the Housing Developers (HousingDevelopment Account) Regulations 2002.

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14. SHARE CAPITAL AND RESERVES

Group/Company

Number of

Group/Company ordinary shares

2007 2006 2007 2006

RM RM

Share capital

Ordinary shares of RM1.00 each:Authorised 500,000,000 500,000,000 500,000,000 500,000,000

Issued and fully paid 122,000,000 122,000,000 122,000,000 122,000,000

Group Company

2007 2006 2007 2006

RM RM RM RM

Reserves

Non-distributable

Share premium reserve 78,581,839 78,581,839 78,581,839 78,581,839CULS (Note 15) 291,388,446 291,388,446 291,388,446 291,388,446Treasury shares (854,774) (854,774) (854,774) (854,774)

369,115,511 369,115,511 369,115,511 369,115,511

Distributable

Retained earnings 149,350,826 148,846,545 129,588,938 116,250,987

518,466,337 517,962,056 498,704,449 485,366,498

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14. SHARE CAPITAL AND RESERVES (CONT’D.)

Share premium

Share premium arose in 1996 from the following:

Group/Company

RM

Special issue of 42,952,000 ordinary shares of RM1.00 each at RM2.20 per share for acquisition of land and landed properties 51,542,400

Restricted public issue of 10,000,000 new ordinary shares of RM1.00 each at RM2.20 per share to the entitled shareholders of Kulim (Malaysia) Berhad 12,000,000

Public issue of 15,000,000 new ordinary shares of RM1.00 each at RM2.20 per share 18,000,000

Less: Listing expenses (2,960,561)

78,581,839

Treasury shares

At the Extraordinary General Meeting held on 21 May 2007, the Company’s shareholders renewed the scheme torepurchase its own shares. The Directors of the Company are committed to enhance the value of the Company to itsshareholders and believe that the repurchase scheme can be applied in the best interest of the Company and itsshareholders.

During the financial year, the Company repurchase in the open market a total of NIL (2006: 118,800) of its issued ordinaryshares. The average repurchase price was NIL (2006: RM0.79) per ordinary share.

The number of outstanding shares in issue after deducting treasury shares held at the financial year end is 121,048,200(2006: 121,048,200) ordinary shares of RM1.00 each.

Treasury shares have no rights to voting, dividends and participation in any other distribution. Treasury shares shall notbe taken into account in calculating the number of percentage of shares or of a class of shares in the Company for anypurposes including substantial shareholding, take-overs, notices, the requisitioning of meetings, the quorum for a meetingand the result of a vote on a resolution at a meeting.

None of the treasury shares has been resold or distributed as share dividends during the financial year.

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14. SHARE CAPITAL AND RESERVES (CONT’D.)

Section 108 tax credit and tax exempt account

Subject to agreement by the Inland Revenue Board, the Company has sufficient Section 108 tax credit and tax exemptaccount to frank the payment of dividends out of its entire distributable reserves at 31 December 2007.

The Finance Act 2007 introduced the single tier company income tax system with effect from year of assessment 2008.Transitional provisions allow companies to stay on the existing imputation system up to 31 December 2013 should theyhave and continue to maintain positive Section 108 credit balances. The Company has decided to remain on theimputation system.

15. LOANS AND BORROWINGS

Group Company

2007 2006 2007 2006

RM RM RM RM

Non-current

Secured

Bridging loan 24,928,000 8,680,000 — —

Unsecured

CULS 35,717,064 52,462,084 35,717,064 52,462,084

60,645,064 61,142,084 35,717,064 52,462,084

Current

Secured

Bank overdrafts 20,093,220 11,457,117 20,093,220 11,457,117Finance lease liabilities — 59,737 — 59,737

20,093,220 11,516,854 20,093,220 11,516,854

Unsecured

Bank overdrafts 54,191,327 19,995,386 54,191,327 19,995,386Revolving credit 9,066,325 9,061,444 5,066,325 5,061,444

63,257,652 29,056,830 59,257,652 25,056,830

83,350,872 40,573,684 79,350,872 36,573,684

143,995,936 101,715,768 115,067,936 89,035,768

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15. LOANS AND BORROWINGS (CONT’D.)

Security

The bridging loan of a subsidiary is secured over 1,076 (2006: 806) pieces of freehold land of that subsidiary with carryingamount of RM4,352,367 (2006: RM4,267,390).

Certain bank overdrafts facilities of the Company are secured by way of fixed charge on a freehold land of the Companyand a corporate guarantee by the holding corporation.

Terms and debt repayment schedule

Year of Carrying Under 1 1 – 2 2 – 5

maturity amount year years years

RM’000 RM’000 RM’000 RM’000

Group

2007

Revolving credits 9,066 9,066 — —Bank overdrafts 74,285 74,285 — —CULS 2009 35,717 — 35,717 —Bridging loan 2010 24,928 — — 24,928

143,996 83,351 35,717 24,928

2006

Revolving credits 9,061 9,061 — —Bank overdrafts 31,453 31,453 — —Finance lease liabilities 2007 60 60 — —CULS 2009 52,462 — — 52,462Bridging loan 2010 8,680 — — 8,680

101,716 40,574 — 61,142

Company

2007

Revolving credits 5,066 5,066 — —Bank overdrafts 74,285 74,285 — —CULS 2009 35,717 — 35,717 —

115,068 79,351 35,717 —

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Terms and debt repayment schedule (Cont’d.)

Year of Carrying Under 1 1 – 2 2 – 5

maturity amount year years years

RM’000 RM’000 RM’000 RM’000

2006

Revolving credits 5,061 5,061 — —Bank overdrafts 31,453 31,453 — —Finance lease liabilities 2007 60 60 — —CULS 2009 52,462 — — 52,462

89,036 36,574 — 52,462

Convertible unsecured loan stocks

Group/Company

2007 2006

RM RM

At 1 January/31 December 330,000,000 330,000,000

The movement of the liability component of the CULS during the year is as follows:

Group/Company

2007 2006

RM RM

At 1 January 52,462,084 53,417,080Interest accrued 3,054,980 3,068,292Interest payment (19,800,000) (4,023,288)

At 31 December 35,717,064 52,462,084

On 15 December 2004, the Company issued 330,000,000 five (5) years Convertible Unsecured Loan Stocks (“CULS”) atnominal value RM1.00 each as part of purchase consideration for the acquisition of freehold agricultural land zoned fordevelopment located at Mukim of Tebrau, Johor Bahru from its holding corporation.

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The salient features of the CULS are as follows:

(a) The total issuance is RM330 million.

(b) The interest rate of CULS is as follows (less any Malaysian income or withholding tax applicable thereto which isrequired to be deducted):

Period (from issue date) Interest rate per annum

First 24 months (Year 1 and 2) 1%Next 36 months (Year 3, 4 and 5) 6%

The interest rate is payable annually in arrears on the last day of every 12 months period commencing from theissue date, 15 December 2004 until the maturity date, 15 December 2009 (‘Interest Payment Date’), calculated onthe basis of a year of 365 days and on the actual number of days elapsed and accrues daily from and including theissue date or the previous Interest Payment Date.

(c) The CULS are redeemable in full or in part at their nominal value, at the option of the Company which will bedetermined by the independent Directors of the Company. The redemption will be dependent on inter-alia, theavailability of profits and cash flows of the Company.

(d) The conversion of the CULS into new ordinary shares of RM1.00 each of the Company at a conversion price ofRM1.00 per share is at the option of the CULS holder and may take place at any time after the second anniversaryfrom the date of issue of the CULS until the maturity date.

(e) The remaining CULS not redeemed or converted on maturity date will be automatically converted into ordinaryshares.

(f) The CULS will not be listed on the Bursa Malaysia Securities Berhad or any other stock exchange.

The CULS have been classified separately into their components parts as liability or as equity on the balance sheetin accordance with FRS 132, Financial Instruments: Disclosure and Presentation. The fair value of the liabilitycomponent calculated using a prevailing market interest rate at the date of issuance for a similar non-convertibleloan stock. The residual amount, representing the fair value of the equity component, including deferred tax asset,is included in shareholders’ equity.

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16. TRADE AND OTHER PAYABLES

Group Company

2007 2006 2007 2006

RM RM RM RM

Trade payables 13,135,660 9,147,642 13,007,899 9,143,814Other payables and accrued expenses 7,183,064 5,837,852 6,591,641 5,634,970Due to holding corporation– non-trade 834,014 185,596 829,164 175,896Due to a subsidiary– trade — — — 8,450,000– non-trade — — 1,833,072 51,100

— — 1,833,072 8,501,100Due to related companies– trade 10,501 10,501 10,501 10,501– non-trade 302,157 198,876 302,157 198,876

312,658 209,377 312,658 209,377

21,465,396 15,380,467 22,574,434 23,665,157

17. REVENUE

Group Company

2007 2006 2007 2006

RM RM RM RM

Property development 53,993,492 55,390,063 43,186,977 44,053,698Sales of land 3,489,614 14,830,531 3,489,614 14,830,531Sales of goods 4,329,626 3,049,805 4,329,626 2,824,033Management fee 189,451 180,849 389,111 737,477Rental income 1,354,122 1,209,005 1,354,122 1,209,005Dividend income — — 36,489,619 15,034,965

63,356,305 74,660,253 89,239,069 78,689,709

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18. FINANCE COSTS

Group Company

2007 2006 2007 2006

RM RM RM RM

CULS 3,054,980 3,068,292 3,054,980 3,068,292Bank overdrafts 4,137,950 2,498,995 4,137,950 2,498,995Other borrowings 782,519 501,203 296,989 291,497

7,975,449 6,068,490 7,489,919 5,858,784

19. OPERATING PROFIT

Group Company

2007 2006 2007 2006

RM RM RM RM

Operating profit is arrived at after charging/(crediting)

Audit fees 104,000 89,000 80,000 70,000Impairment loss on investment in a subsidiary — — 30,000 —Allowance for doubtful debts– third parties 230,839 27,538 230,839 —– a subsidiary — — 1,957,196 —Bad debts written off 75,179 30,961 — —Change in fair value on investment properties (2,251,139) 276,920 (2,251,139) —Depreciation 495,301 565,037 392,036 463,295Direct operating expenses of investment properties 982,444 11,386 897,116 —Property, plant and equipment written off 690,038 8,844 1,585 1,109Personnel expenses (including key management personnel):– Contributions to Employees’

Provident Fund 713,129 638,223 711,996 633,480– Wages, salaries and others 6,159,366 5,397,867 6,152,217 5,357,514Rental expenses 264,247 558,732 264,247 558,732(Gain)/Loss on disposal of:– Property, plant and equipment (18,181) 14,159 (18,181) —– Quoted shares in Malaysia (108,027) (3,018) (108,027) (3,018)– Investment properties (465,462) — — —Investment in associate written off 131,750 — — —Gross dividends from quoted shares in Malaysia (7,502) (2,371) (7,502) (2,371)Rental income (1,941,952) (1,401,005) (1,354,122) (1,209,005)

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19. OPERATING PROFIT (CONT’D.)

Key management personnel compensation

Key management personnel are defined as those persons having authority and responsibility for planning, directing andcontrolling the activities of the Group either directly or indirectly. The key management personnel includes all the Directorsof the Group, and certain members of senior management of the Group.

Key management personnel compensation are as follows:

Group Company

2007 2006 2007 2006

RM RM RM RM

Directors– Fees 285,500 217,000 285,500 217,000– Remuneration 804,584 431,645 804,584 431,645– Contributions to Employees’ Provident Fund 77,460 38,297 77,460 38,297– Monetary value of benefits-in-kind 59,853 51,044 59,853 51,044

Total short-term employee benefits 1,227,397 737,986 1,227,397 737,986

Directors of a subsidiary– Fees 14,000 14,000 — —– Remuneration 105,844 101,427 — —– Contributions to Employees’ Provident Fund 7,675 11,808 — —

Total short-term employee benefits 127,519 127,235 — —

Other key management personnel:– Wages, salaries and others 400,334 467,889 400,334 467,889– Contributions to Employees’ Provident Fund 42,658 64,031 42,658 64,031– Monetary value of benefits-in-kind 11,300 15,600 11,300 15,600

454,292 547,520 454,292 547,520

1,809,208 1,412,741 1,681,689 1,285,506

Other key management personnel comprises persons other than the Directors of Group entities, having authority andresponsibility for planning, directing and controlling the activities of the entity either directly or indirectly.

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20. TAX EXPENSE

Group Company

2007 2006 2007 2006

RM RM RM RM

Tax expense– Current year 1,380,644 5,024,951 9,392,000 7,960,000– Under/(Over) provided in prior years 534,179 (321,432) 525,359 (326,388)

1,914,823 4,703,519 9,917,359 7,633,612

Deferred tax income– Reversal and origination of temporary differences (221,043) (280,000) 370,000 (280,000)– Over provided in prior years (116,000) — (116,000) —

(337,043) (280,000) 254,000 (280,000)

1,577,780 4,423,519 10,171,359 7,353,612

Share of tax of equity accounted associates 3,355,000 2,335,537 — —

4,932,780 6,759,056 10,171,359 7,353,612

RM’000 RM’000 RM’000 RM’000

Reconciliation of effective tax expense

Profit for the year 6,690 17,675 19,524 17,132Total tax expense 4,933 6,759 10,171 7,354

Profit excluding tax 11,623 24,434 29,695 24,486

Tax at Malaysian tax rate of 27% (2006: 28%) 3,138 6,842 8,018 6,856Non-deductible expenses 715 338 1,158 292Effect of change in tax rate* 597 532 597 532Non-taxable income (126) — — —Difference in effective tax rate of equity accounted associates (48) (830) — —Effect of unrecognised deferred tax 251 225 — —Others (12) (27) (11) —

4,515 7,080 9,762 7,680

Under/(Over) provided in prior years 418 (321) 409 (326)

Tax expense 4,933 6,759 10,171 7,354

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20. TAX EXPENSE (CONT’D.)

* The corporate tax rate are at 27% for year of assessment 2007, 26% for year of assessment 2008 and 25% forthe subsequent years of assessment. Consequently, deferred tax assets are measured using these tax rates.

21. EARNINGS PER ORDINARY SHARE

Basic earnings per ordinary share

The calculation of basic earnings per ordinary share at 31 December 2007 was based on the profit attributable to ordinaryshareholders and a weighted average number of ordinary shares outstanding calculated as follows:

Group

2007 2006

RM RM

Profit attributable to ordinary shareholders 6,689,841 17,747,702

Numbers Numbers

Weighted average number of ordinary shares

Number of shares in issue at beginning of year 122,000,000 122,000,000Effect of treasury shares held (951,800) (908,634)

Weighted average number of ordinary shares in issue 121,048,200 121,091,366

Basis earnings per ordinary share (sen) 5.53 14.66

Diluted earnings per ordinary share

The calculation of diluted earnings per ordinary share at 31 December 2007 was based on profit attributable to ordinaryshareholders and a weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutivepotential ordinary shares, calculated as follows:

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21. EARNINGS PER ORDINARY SHARE (CONT’D.)

Diluted earnings per ordinary share (Cont’d.)

Group

2007 2006

RM RM

Profit attributable to ordinary shareholders 6,689,841 17,747,702Add: Assuming savings in interest expense on CULS, net of tax 2,230,135 2,209,170

Adjusted net profit for calculating diluted earnings per ordinary share 8,919,976 19,956,872

Numbers Numbers

Weighted average number of ordinary shares 121,048,200 121,091,366Assuming full conversion of CULS as at the date of issue 330,000,000 330,000,000

Weighted average number of ordinary shares (diluted) at 31 December 451,048,200 451,091,366

Diluted earnings per ordinary share (sen) 1.98 4.42

22. DIVIDENDS

Dividends recognised in the current year by the Company are:

Sen per Total Date of

share amount payment

(net of tax) RM

2007

2006 – Final 2.2 2,650,951 29 June 20072007 – Interim 2.9 3,534,609 25 January 2008

Total amount 6,185,560

2006

2005 – Interim 2.9 3,489,610 21 April 20062005 – Final 2.2 2,618,685 30 June 20062006 – Interim 2.9 3,486,186 21 December 2006

Total amount 9,594,481

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22. DIVIDENDS (CONT’D.)After the balance sheet date the following dividend was proposed by the Directors. This dividend will be recognised insubsequent financial reports upon approval by the shareholders.

Sen per Totalshare amount

(net of tax) RM

2007 – Final 2.22 2,687,270

23. FINANCIAL INSTRUMENTSFinancial risk management objectives and policies

Exposure to credit, liquidity, cash flow and interest rate risks arise in the normal course of the Group’s and of theCompany’s business. The Group and the Company have formulated a financial risk management framework whoseprincipal objective is to minimise the Group’s and the Company’s exposure to risks and/or costs associated with thefinancing, investing and operating activities of the Group and of the Company.

Credit risks

At balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk isrepresented by the carrying amount of each financial asset in the balance sheet.

Liquidity risk

The Group and the Company monitors and maintains a level of cash and cash equivalents deemed adequate bymanagement to finance the operations and to mitigate the effects of fluctuation in cash flow.

Cash flow risk

The Group and the Company review their cash flow position regularly to manage their exposure to fluctuations in futurecash flows associated with their monetary financial instruments.

Interest rate risk

The Group’s and the Company’s investment in fixed-rate debt securities and its fixed rate borrowings are exposed to arisk of change in their fair value due to changes in interest rates. The Group’s and Company’s investments in variable-rateborrowings are exposed to a risk of change in cash flows due to changes in interest rates. Investments in equitysecurities and short term receivables and payables are not exposed to interest rate risk.

There is no formal hedging policy with respect to interest rate exposure. Exposure to interest rate risk is monitored onan ongoing basis and the Group and the Company endeavour to keep the exposure at an acceptable level.

Interest expense on the CULS is calculated on the effective yield basis by applying the effective interest rate 5.745%(2006: 5.745%) for an equivalent non-convertible loan stock to liability component of the CULS.

Effective interest rate and repricing analysis

In respect of interest-earning financial assets and interest-bearing financial liabilities, the following table indicates theiraverage effective interest rates at the balance sheet date and the periods in which they mature, or if earlier, reprice.

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23. FINANCIAL INSTRUMENTS (CONT’D.)

Effective interest rate and repricing analysis (Cont’d.)

Average

effective

interest Less than 1 – 2 2 – 3 4 – 5

rate Total 1 year years years years

% RM’000 RM’000 RM’000 RM’000 RM’000

Group

2007

Fixed rate instruments

CULS – liability 5.7 (35,717) — (35,717) — —Bridging loan 7.3 (24,928) — — — (24,928)

(60,645) — (35,717) — (24,928)

Floating rate instruments

Bank overdrafts 8.0 (74,285) (74,285) — — —Revolving credits 4.4 – 5.6 (9,066) (9,066) — — —

(83,351) (83,351) — — —

2006


CULS – liability 5.7 (52,462) — — (52,462) —Bridging loan 7.3 (8,680) — — — (8,680)Deposits with a licensed bank 2.6 1,721 1,721 — — —

(59,421) 1,721 — (52,462) (8,680)


Bank overdrafts 7.8 (31,452) (31,452) — — —Revolving credits 4.0 – 5.9 (9,061) (9,061) — — —

(40,513) (40,513) — — —

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Effective interest rate and repricing analysis (Cont’d.)

Average

effective

interest Less than 1 – 2 2 – 3

rate Total 1 year years years

% RM’000 RM’000 RM’000 RM’000

Company

2007


CULS – liability 5.7 (35,717) — (35,717) —


Bank overdrafts 8.0 (74,285) (74,285) — —Revolving credits 5.6 (5,066) (5,066) — —

(79,351) (79,351) — —

2006


CULS – liability 5.7 (52,462) — — (52,462)


Bank overdrafts 7.8 (31,453) (31,453) — —Revolving credits 5.7 – 5.9 (5,061) (5,061) — —

(36,514) (36,514) — —

Fair values

Recognised financial instruments

The carrying amounts of current financial assets and liabilities approximate their fair values due to the relatively short termnature of these financial instruments.

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Fair values (Cont’d.)

Recognised financial instruments (Cont’d.)

The Company provides financial guarantees to bank for credit facility extended to a subsidiary. The fair value of suchfinancial guarantee is not expected to be material as the probability of the subsidiary defaulting on the credit line is remote.

The fair value of other financial assets and liabilities, together with the carrying amounts shown in the balance sheets,are as follows:

2007 2006

Carrying Fair Carrying Fair

amount value amount value

RM’000 RM’000 RM’000 RM’000

Short term investment in quoted shares 117 117 176 210Bridging loan (24,928) (24,928) (8,680) (8,680)CULS – liability (35,717) (35,717) (52,462) (52,462)

Estimation of fair values

The following summarises the methods used in determining the fair values of financial instruments reflected in the table.

Fair value of quoted shares is based on quoted market prices at the balance sheet date without any deduction fortransaction costs.

The carrying amount of the bridging loan approximates its fair values as the effective interest rate is comparable to themovements in the market interest rate and there is no material change in the interest charged on similar kind ofborrowings in the market.

The carrying amount of convertible unsecured loan stocks approximates its fair value as the instrument is calculated usinga prevailing market rate at the date of issuance for a similar convertible loan stocks.

24. RELATED PARTIES

For the purposes of these financial statements, parties are considered to be related to the Group or the Company if theGroup or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over theparty in making financial and operating decisions, or vice versa, or where the Group or the Company and the party aresubject to common control or common significant influence. Related parties may be individuals or other entities.

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24. RELATED PARTIES (CONT’D.)

The significant related party transactions of the Group and of the Company are as follows:

Group Company

2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Holding corporation

Interest expense on CULS 20,523 4,023 20,523 4,023Services acquired 34 110 24 100Services rendered 11 30 11 30

Subsidiaries

Management fee receivable — — 200 638Sales of completed houses — — 10,556 —Sales commission income — — — 22Purchase of building materials — — — 89

Related companies

Sales of finished goods 4,330 2,824 4,330 2,824Services acquired 2,210 349 2,210 349Services rendered 48 48 48 48Rental expenses 278 517 278 517Agency fees expenses — 15 — 15Security services acquired 556 1,027 550 1,027Annual report expenses 60 51 60 51Registrar fees expenses 133 98 133 98Insurance expenses 236 — 209 —

Associate

Sale of materials — 112 — —

Related parties

Professional fees paid to a firm in which a Director is a partner 54 13 54 13

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24. RELATED PARTIES (CONT’D.)

Group Company

2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Related parties (Cont’d.)

A charitable organisation in which the spouse of a Director is the Chairman

– Donation 120 120 120 120– Sale of land 2,500 — 2,500 —– Balance outstanding in respect of the sale of land 2,250 — 2,250 —

Donation to a Foundation in which a Director is the Chairman 150 150 150 150

25. SEGMENT REPORTING

There is no segment information presented as the Group is primarily engaged in housing development activities andoperates principally in Malaysia.

26. SUBSEQUENT EVENT

On 6 February 2008 the Company entered into a Sale and Purchase Agreement Cum Subscription of Sale Agreementwith Tengku Shaifful Bahri Bin Tengku Zainal Abidin (the Vendor) and Windsor Trade Holdings Sdn. Bhd. (“WTHSB”) inrespect of the proposed acquisition of 4,000,000 existing ordinary shares of RM1.00 each in WTHSB and subscription of10,000,000 new ordinary shares of RM1.00 each.

The cash consideration of RM15,000,000 to be paid by the Company for the Proposed Acquisition shall be funded viathe Company’s internally generated funds and/or borrowings.

The completion of the acquisition is subject to conditions precedent stated in the sales and purchase agreement.

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Location of Land Bank and Projects

1

23

45

7

8

9

10

11

1213

14

6

DAERAH

SEGAMAT

DAERAH

LEDANG

DAERAH

MUAR

DAERAH

MERSING

DAERAH

KULAIJAYA

DAERAH

PONTIAN

DAERAH

BATU PAHAT

DAERAH

KLUANG

DAERAH

KOTA TINGGI

DAERAH

JOHOR BAHRU

LAND BANK

1 Pagoh Land (55.65 acres)

2 Bandar Dato’ Onn (1,410.11 acres)

3 Bandar Tiram (1,088.55 acres)

4 Inderaputra Land (0.84 acres)

5 Taman Bukit Dahlia (178.17 acres)

PROJECT

6 Taman Komersil Senai7 Tebrau Business Park8 Green Plains9 Taman Bukit Tiram10 Taman Mawar11 Kota Sentral 12 Taman Cendana13 Taman Seroja14 Perumahan Bandar Tenggara

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List of Properties

Revaluation of land and buildings will be carried out only if there are intended sales or when market values have changedmaterially. Details of the landed properties owned by the JLand Group as at 31 December 2007 are as follows:

Net book

value as at

Tenure/Approx. Land area/ 31.12.2007 Acquisition

Title/Location age of building Existing use Built-up area RM’000 Date

A. FIXED ASSETS

Bungalow lot at Green Plains

PTD 57050 HS(D) 187333 Freehold/13 years Double storey 4,411.07 sq metres 891 1998Mukim of Tebrau bungalow 400.00 sq metresDistrict of Johor Bahru

PTD 57049 HS(D) 187332 Freehold/13 years Double storey 4822.60 sq metres 611 2003Mukim of Tebrau bungalow 357.24 sq metresDistrict of Johor Bahru(Owned by ADSB)

Shophouse at Taman Bintang

PTD 22925 HS(D) 13369 Freehold/11 years Double storey 143.00 sq metres 204 1995Mukim of Senai-Kulai shophouse 272.00 sq metresDistrict of Johor Bahru

B. INVESTMENT PROPERTIES

Bungalow lot at Taman Bertam

Lot 4429 – 4431 Freehold 3 vacant 2,222.00 sq metres 750 1995HS(D) 1664 – 1666 bungalow lotsMukim 6, Seberang Prai UtaraPenang

Lot 4453 – 4454 Freehold 2 vacant 1,482.00 sq metres 500 2004HS(D) 5824 – 5825 bungalow lotsMukim 6, Seberang Prai Utara Penang

Factory Building

PTD 110891 HS(D) 212054 60 years lease Factory building 2,559.00 sq metres 650 2006Mukim of Plentong Expiring on 1,004.00 sq metresDistrict of Johor Bahru 27.6.2053/13 years(Owned by PPSB)

JOHOR LAND BERHAD


125

Net book

value as at



B. INVESTMENT PROPERTIES (CONT’D.)

Kompleks Mutiara Johor Land

PTD 84127 HS(D) 281731 Freehold/13 years Sport 24.69 acres 27,134 2007Mukim of Tebrau Complex 357.24 sq metresDistrict of Johor Bahru

C. FUTURE DEVELOPMENT

Bandar Tiram (Phase 1)

PTD 143340 – 143999 Freehold Mixed housing 53.83 acres 16,351 2001HS(D) 443338 – 443988 developmentMukim of Tebrau

PTD 195750 – 196052HS(D) 443040 – HS(D) 443337Mukim of PlentongDistrict of Johor Bahru


PTD 113308 – 113435 Freehold Oil palm estate 76.64 acres 10,213 1995HS(D) 375296 – 375423Mukim of TebrauDistrict of Johor Bahru


PTD 105766 HS(D) 354246 & Freehold Oil palm estate 572.49 acres 42,809 1995PTD 105767 HS(D) 354247Mukim of TebrauDistrict of Johor Bahru

PTD 105769 HS(D) 354249 & Freehold Oil palm estate 170.64 acres 7,764 1995PTD 105770 HS(D) 354250PTD 14616 – 14618 HS(D) 62950 – 62952Mukim of TebrauDistrict of Johor Bahru(Owned by ADSB)

JOHOR LAND BERHAD


126

List of Properties

Net book

value as at



C. FUTURE DEVELOPMENT (CONT’D.)


PTD 105768 HS(D) 354248 Freehold Oil palm estate 97.31 acres 7,277 1995Mukim of TebrauDistrict of Johor Bahru


Lot 12 CT 556, Lot 14 CT 557 Freehold Oil palm estate 117.65 acres 8,798 1995Lot 18 CT 561Lot 860 CT 562Lot 2016 CT 567Part of Lot 1176 CT 565 &Part of Lot 1182 CT 566Mukim of Kota TinggiDistrict of Kota Tinggi

Taman Bukit Tiram (Phase 2)

PTD 144544 – 144557 Freehold 14 vacant 0.61 acres 49 1995HS(D) 449681 – 449694 ShopofficeMukim of TebrauDistrict of Johor Bahru(Owned by ADSB)

PTD 85036 – 85077 Freehold 42 vacant 4.44 acres 353 1995HS(D) 307437 – 307478 bungalow lotsMukim of TebrauDistrict of Johor Bahru(Owned by ADSB)

PTD 85080 – 85139 Freehold Mixed housing 6.43 acres 508 1995HS(D) 307479 – 307538 developmentPTD 85275 – 85533HS(D) 307673 – 307929Mukim of TebrauDistrict of Johor Bahru(Owned by ADSB)

JOHOR LAND BERHAD


127

Net book

value as at




Taman Bukit Tiram (Phase 3)

PTD 88267 – 88273 Freehold 7 vacant 3.37 acres 405 1995HS(D) 302582 – 302588 bungalow lotsMukim of TebrauDistrict of Johor Bahru(Owned by ADSB)

PTD 130271 – 130297 Freehold Mixed housing 4.30 acres 443 1995HS(D) 401455 – 401481 developmentMukim of TebrauDistrict of Johor Bahru(Owned by ADSB)

PTD 138183 – 138387 Freehold Mixed housing 5.04 acres 519 1995HS(D) 427149 – 427350 developmentPTD 138421 – 238443HS(D) 427379 – 427401Mukim of TebrauDistrict of Johor Bahru (Owned by ADSB)

PTD 147315 – 147325 Freehold 11 vacant 0.46 acres 47 1995HS(D) 449814 – 449824 ShopofficeMukim of TebrauDistrict of Johor Bahru (Owned by ADSB)

JOHOR LAND BERHAD


128

List of Properties

Net book

value as at




Taman Bukit Dahlia (Block A)

PTD 155670 – 155715 99 years lease Mixed housing 19.50 acres 4,451 1995HS(D) 317563 – 317609 Expiring on developmentPTD 156278 – 156289 2.6.2100HS(D) 318171 – 318182PTD 156312 – 156335HS(D) 318205 – 318228PTD 156358 – 156381HS(D) 318251 – 318273PTD 156404 – 156415HS(D) 318296 – 318307PTD 156290 – 156311HS(D) 318183 – 318204PTD 156336 – 156357HS(D) 318229 – 318250PTD 156382 – 156403HS(D) 318274 – 318295PTD 156446 – 156473HS(D) 318337 – 318364PTD 156532 – 156559HS(D) 318935 – 318962PTD 156417 – 156445HS(D) 318308 – 318336PTD 156474 – 156500HS(D) 318365 – 318391PTD 156501 – 156531HS(D) 318904 – 318934 PTD 156560 – 156588HS(D) 318963 – 318991PTD 190546 – 190639HS(D) 436699 – 436792PTD 190641 – 190652HS(D) 436793 – 436804PTD 190654 – 190703

JOHOR LAND BERHAD


129

Net book

value as at




Taman Bukit Dahlia (Block A) (Cont’d.)

HS(D) 436805 – 436854Mukim of PlentongDistrict of Johor Bahru

Taman Bukit Dahlia (Block C)

Development land 99 years lease Mixed housing 54.40 acres 5,800 1995Mukim of Plentong (Land titles is developmentDistrict of Johor Bahru yet to be issued)

Taman Bukit Dahlia (Block D)

Development land 99 years lease Mixed housing 40.27 acres 4,947 1995Mukim of Plentong (Land titles is developmentDistrict of Johor Bahru yet to be issued)

Taman Bukit Dahlia (Block E)

PTD 179254 – 179322 99 years lease Mixed housing 16.21 acres 3,640 1995HS(D) 371082 – 371150 Expiring on developmentPTD 179337 – 179348 30.6.2103HS(D) 371165 – 371176PTD 179350 – 179451HS(D) 371177 – 371278PTD 179878 – 180216HS(D) 371705 – 372043 &Mukim of PlentongDistrict of Johor Bahru

Taman Bukit Dahlia (Block F)

PTD 155634 – 155669 99 years lease Mixed housing 3.95 acres 979 1995HS(D) 317527 – 317562 Expiring on developmentMukim of Plentong 2.7.2100District of Johor Bahru

JOHOR LAND BERHAD


130

List of Properties

Net book

value as at




Taman Bukit Dahlia (Block F) (Cont’d.)

PTD 179207 – 179208 Freehold Mixed housing 1.52 acres 352 1995HS(D) 391369 – 391370 & developmentPTD 179223 – 179240HS(D) 391385 – 391402Mukim of PlentongDistrict of Johor Bahru

Development land 99 years lease Mixed housing 42.25 acres 4,157 1995Mukim of Plentong (Land title is developmentDistrict of Johor Bahru yet to be issued)

Bandar Dato’ Onn

PTD 138799 – 139442 Freehold Mixed housing 16.04 acres 11,381 2004HS(D) 424475 – 425098 developmentMukim of Tebrau District of Johor Bahru

Development land Freehold Mixed housing 1,394.07 acres 342,911 2004Mukim of Tebrau (Land titles is development/District of Johor Bahru yet to be issued) oil palm estate

PTD 84126 & 84128 Freehold Vacant land 16.41 acres 8,589 2006HS(D) 281730 & 281732Mukim of TebrauDistrict of Johor Bahru

Inderaputra Land

PTB 21108 HS(D) 380523 Freehold Vacant land 3,409.22 sq metres 7,049 2000Mukim of Bandar Johor BahruDistrict of Johor Bahru

Pagoh Land

Development land Leasehold Mixed housing 55.65 acres 3,896 1998Mukim of Jorak (Land title is developmentDistrict of Muar yet to be issued)

JOHOR LAND BERHAD


131

Shareholdings StatisticsAs at 28 March 2008

Authorised Share Capital : RM500,000,000Issued & Fully Paid-Up Capital : RM122,000,000 less 951,800 Treasury Shares = 121,048,200Class of Shares : Ordinary Share of RM1/= each

VOTING RIGHT OF SHAREHOLDERS

Every member of the Company present in person or by proxy shall have one vote on a show of hand and in the case of apoll shall have one vote for every share of which he/she is the holder.

BREAK DOWN OF SHAREHOLDINGS

Size of Shareholdings No. of Shareholders % No. of Shares %

Less than 100 694 7.44 23,837 0.02100 – 1,000 4,367 46.85 2,497,857 2.061,001 – 10,000 3,552 38.11 13,288,336 10.9810,001 – 100,000 641 6.88 17,337,260 14.32100,001 to less than 5% of Issued Capital 65 0.70 40,538,137 33.495% and above of Issued Capital 2 0.02 47,362,773 39.13

TOTAL 9,321 100.00 121,048,200 100.00

TOP THIRTY SECURITIES ACCOUNT HOLDERS

(Without aggregating the securities from different securities accounts belonging to the same depositor)

Name No. of Shares %

1. Johor Corporation 28,606,390 23.632. Johor Corporation 18,756,383 15.493. Johor Capital Holdings Sdn Bhd 5,071,000 4.194. Johor Ventures Sdn Bhd 4,455,570 3.685. Kumpulan Waqaf An-Nur Berhad 4,318,937 3.576. Amanah Raya Noms (T) Sdn Bhd – A/C Skim Amanah Saham Bumiputera 3,294,580 2.727. Johor Corporation 2,892,270 2.398. Cartaban Noms (A) Sdn Bhd – A/C SBBT Fund C021 for College Retirement Equities Fund 2,001,600 1.659. HSBC Noms (A) Sdn Bhd – A/C TNTC for Utopia Core Fund 1,296,000 1.07

10. HSBC Noms (A) Sdn Bhd – A/C Exempt An for Morgan Stanley & Co. Incorporated 1,075,500 0.8911. Shoptra Jaya (M) Sdn Bhd 980,000 0.8112. Terengganu Incorporated Sdn Bhd 850,060 0.70

JOHOR LAND BERHAD


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Shareholdings StatisticsAs at 28 March 2008

TOP THIRTY SECURITIES ACCOUNT HOLDERS (CONT’D.)

(Without aggregating the securities from different securities accounts belonging to the same depositor)


13. HSBC Noms (A) Sdn Bhd – A/C TNTC for Utopia Growth Fund 730,800 0.6014. HSBC Noms (A) Sdn Bhd – A/C Exempt An for HSBC Private Bank (Suisse) S.A. (SPORE TST ACCL) 698,800 0.5815. Citigroup Noms (A) Sdn Bhd – A/C Exempt An for Citibank NA (Charles Schwab) 669,200 0.5516. TA Noms (T) Sdn Bhd – A/C Chuang Nee Wang Kim Lien 609,300 0.5017. Quah Wee Lai 600,000 0.5018. Zalaraz Sdn Bhd 537,690 0.4419. Wong Soot Yin @ Ong Soot Yin 527,000 0.4420. Johor Ventures Sdn Bhd 496,150 0.4121. HLG Nom (A) Sdn Bhd – A/C Exempt An for UOB Kay Hian Pte Ltd (A/C Clients) 472,640 0.3922. HSBC Noms (A) Sdn Bhd – A/C TNTC for Utopia Yield Income Fund 459,000 0.3823. OSK Noms (T) Sdn Bhd – A/C DMG & Partners Securities Pte Ltd for Tan Hian-Tsin (31-12122) 436,000 0.3624. Tabung Amanah Warisan Negeri Johor 402,950 0.3325. Mayban Noms (T) Sdn Bhd – A/C Liew Kon Sing @ Liew Kong 387,150 0.3226. Chuang Show Chuan 382,100 0.3227. Lee Siew Hoon 380,600 0.3128. Johor Corporation 350,980 0.2929. Philip Goey Soon Loong 305,500 0.2530. Lim Kian Huat 297,600 0.25

SUBSTANTIAL SHAREHOLDERS


1 Johor Corporation – 5 a/cs 50,608,053 41.81– “ – Group – Johor Capital Holdings Sdn Bhd – 3 a/cs 5,263,810

– Johor Ventures Sdn Bhd – 2 a/cs 4,951,720 10,215,530 8.44

ANALYSIS OF SHAREHOLDERS

No. of Shareholders % No. of Shares %

Malaysian – Bumiputra 961 10.31 76,646,920 63.32– Others 7,196 77.20 28,279,034 23.36

Foreigners 1,164 12.49 16,122,246 13.32

TOTAL 9,321 100.00 121,048,200 100.00

JOHOR LAND BERHAD


133

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Thirty Third (33rd) Annual General Meeting of Johor LandBerhad will be held at Main Hall, Kompleks Mutiara Johor Land, Jalan Bukit Mutiara, BandarDato’ Onn, 81100 Johor Bahru, Johor on Wednesday, 21 May 2008 at 12.00 noon for thefollowing purposes:-

AS ORDINARY BUSINESSES:-

1. To receive and adopt the Report and the Audited FinancialStatements for the financial year ended 31 December 2007and the reports of the Directors and Auditors thereon;

Resolution 1

2. To approve final dividend of 3% gross (less Malaysianincome tax at 26%) in respect of the financial year ended 31 December 2007; Resolution 2

3. To re-elect the following Directors who retire in accordancewith the Company’s Articles of Association:-

(i) Dr Mohd Hafetz Bin Ahmad (Article 81) Resolution 3

(ii) Tan Sri Dato’ Muhammad (Article 87) Ali Hashim Resolution 4

(iii) A.F.M Shafiqul Hafiz (Article 87) Resolution 5

(iv) Lukman Bin Hj Abu Bakar (Article 87) Resolution 6

4. To re-elect Dato Hj Hassan Bin Hj Mohd Yunos, who is overthe age of seventy (70) years who retires in accordance withSection 129(6) of the Companies Act, 1965; Resolution 7

5. To approve the payment of Directors’ fees in respect of thefinancial year ended 31 December 2007; Resolution 8

6. To re-appoint Messrs KPMG as Auditors of the Companyand to authorise the Directors to fix their remuneration;

Resolution 9

7. To transact any other business of which due notice shallhave been given;

AS SPECIAL BUSINESS:-

8. To consider, and if thought fit, to pass the followingResolution as Ordinary Resolution:-

“That pursuant to Section 132(D) of the Companies Act,1965, the Directors be and are hereby authorised to allotand issue shares of the Company at any time until theconclusion of the next Annual General Meeting, upon suchterms and conditions and for such purposes as the Directorsmay, in their absolute discretion shall deem fit providedalways that the aggregate number of shares to be allottedand issued shall not exceed ten percent (10%) of the issuedshare capital of the Company for the time being, subjectalways to the approval of all relevant regulatory bodies being obtained for such allotment and issue.” (See note)

Resolution 10

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT NO.15

Subject to approval of Resolution 2, a final dividend of 3% gross(less Malaysian income tax at 26%) in respect of the financialyear ended 31 December 2007 on the entitled issued ordinaryshare capital of the Company payable on 7 July 2008 toshareholders registered in the Register of Members of theCompany with the Registrars, Pro-Corporate ManagementServices Sdn Bhd, Suite 2, 17th Floor, Kompleks Tun AbdulRazak, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor at theclose of business at 5.00 pm on 26 May 2008.

JOHOR LAND BERHAD


134

Notice of Annual General Meeting

Further NOTICE IS ALSO HEREBY GIVEN THAT a depositor shallqualify for entitlement only in respect of:-

a. Shares transferred into the depositor’s securities accounts before 4.00 pm on 26 May 2008 in respect of ordinary transfers;

b. Shares bought on the Bursa Malaysia Securities Berhad ona cum entitlement basis according to the Rules of the BursaMalaysia Securities Berhad.

By Order of the BoardJOHOR LAND BERHAD

JAMALLUDIN BIN KALAM (LS 02710)IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381)Secretaries

Venue: JOHOR BAHRU

Dated: 25 APRIL 2008

EXPLANATORY NOTE ON SPECIAL BUSINESS:-

Resolution 10

Your Board would like to act expeditiously to expand yourGroup’s core business, if and when they arise. Although theinvestment sum involved may not be too substantial to requireshareholders’ approval at an Extraordinary General Meeting, theDirectors may consider it appropriate to finance such potentialbusiness opportunities by the issue of a limited number of newshares. In order to facilitate the process, it is thus appropriatethat the Directors be authorised to issue shares in the Companyup to an amount not exceeding in total 10% of the existingissued capital of the Company for such purpose during theperiod. This authority, unless revoked or varied at a generalmeeting, will take effect until the next Annual General Meetingof the Company pursuant to Section 132(D) of the CompaniesAct, 1965.

Notes:-

1. A member entitled to attend and vote at this meeting is entitled toappoint a proxy and vote instead of him. A proxy may but need notbe a member of the Company.

2. The instrument appointing a proxy shall be in writing under the handof the appointer or his attorney duly authorised in writing or if theappointer is a Corporation/Company either under its common seal orunder the hand of its attorney duly authorised.

3. If a member appoints two proxies to attend at the same meeting,the instrument of proxy must specify the proportion of hisshareholdings to be represented by each proxy.

4. The instrument appointing a proxy must be deposited at theRegistered Office of the Company, at 13th Floor, Menara JohorCorporation, KOTARAYA 80000 Johor Bahru, Johor not less thanforty eight (48) hours before the time appointed for holding themeeting or any adjournment thereof.

JOHOR LAND BERHAD


135

Notis Mesyuarat Agung Tahunan

DENGAN INI DIBERITAHU BAHAWA Mesyuarat Agung Tahunan Johor Land Berhad kali ke TigaPuluh Tiga (33) akan diadakan di Dewan Utama, Kompleks Mutiara Johor Land, Jalan BukitMutiara, Bandar Dato’ Onn, 81100 Johor Bahru, Johor pada hari Rabu, 21 Mei 2008 pada jam12.00 tengahari bagi tujuan-tujuan berikut:-

SEBAGAI URUSAN-URUSAN BIASA:-

1. Menerima dan meluluskan Laporan dan Penyata KewanganBeraudit bagi tahun kewangan berakhir 31 Disember 2007serta Laporan Pengarah-Pengarah dan Juruaudit berkaitandengannya; Resolusi 1

2. Meluluskan dividen akhir sebanyak 3% kasar (ditolak 26%cukai pendapatan Malaysia) bagi tahun kewangan berakhir 31 Disember 2007; Resolusi 2

3. Melantik semula Pengarah-Pengarah berikut yang bersaramengikut Tataurusan Syarikat:-

(i) Dr Mohd Hafetz Bin Ahmad (Artikel 81) Resolusi 3

(ii) Tan Sri Dato’ Muhammad (Artikel 87) Ali Hashim Resolusi 4

(iii) A.F.M Shafiqul Hafiz (Artikel 87) Resolusi 5

(iv) Lukman Bin Hj Abu Bakar (Artikel 87) Resolusi 6

4. Melantik semula Dato Hj Hassan Bin Hj Mohd Yunos yangberumur melebihi tujuh puluh tahun (70) yang bersaramengikut Seksyen 129(6) Akta Syarikat, 1965; Resolusi 7

5. Meluluskan pembayaran yuran Pengarah bagi tahunkewangan berakhir 31 Disember 2007; Resolusi 8

6. Melantik semula Tetuan KPMG sebagai Juruaudit Syarikatdan memberi kuasa kepada Pengarah-pengarah untukmenetapkan bayaran mereka; Resolusi 9

7. Menjalankan sebarang urusan Syarikat yang lain di mananotis yang sewajarnya telah diberi;

SEBAGAI URUSAN KHAS:-

8. Untuk mempertimbangkan dan sekiranya didapati wajar,meluluskan Resolusi Biasa berikut:-

“Bahawa selaras dengan peruntukan Seksyen 132(D) AktaSyarikat 1965, adalah dan dengan ini para Pengarah diberikuasa untuk memperuntukkan dan menerbitkan saham-saham Syarikat pada bila-bila masa sehingga penutupMesyuarat Agung Tahunan yang akan datang, mengikutterma-terma dan syarat-syarat tertentu dan untuk tujuan-tujuan tertentu sebagaimana para Pengarah mungkin,mengikut budibicara mutlak mereka, fikirkan wajar dengansyarat bahawa agregat bilangan saham yang akandiperuntukkan dan diterbitkan tidak melebihi sepuluh peratus(10%) daripada modal saham Syarikat yang diterbitkan buatketika ini, tertakluk sentiasa kepada kelulusan pihak-pihakberkuasa yang berkaitan diperolehi bagi peruntukan danterbitan saham demikian.” (Lihat nota)

Resolusi 10

NOTIS KELAYAKAN DAN PEMBAYARAN DIVIDEN NO. 15

Tertakluk kepada kelulusan Resolusi 2, dividen akhir sebanyak3% kasar (ditolak 26% cukai pendapatan Malaysia) bagi tahunberakhir 31 Disember 2007 ke atas saham-saham biasa Syarikatyang berkelayakan akan dibayar pada 7 Julai 2008 kepadapemegang-pemegang saham berdaftar di Daftar PemegangSaham Syarikat dengan Pendaftar Saham Syarikat, Pro-CorporateManagement Services Sdn Bhd, Suite 2, Tingkat 17, Kompleks Tun Abdul Razak, Jalan Wong Ah Fook, 80000Johor Bahru, Johor pada penutupan urusniaga pada jam 5.00petang pada 26 Mei 2008.

JOHOR LAND BERHAD


136

Notis Mesyuarat Agung Tahunan

DENGAN INI SELANJUTNYA DIBERITAHU BAHAWA pendepositadalah berkelayakan untuk hak dividen hanya dalam keadaan-keadaan berikut:-

a. Saham-saham yang dipindah milik kepada akaun sekuritipendeposit sebelum jam 4.00 petang pada 26 Mei 2008berkaitan dengan pindah milik-pindah milik biasa;

b. Saham-saham yang dibeli di Bursa Malaysia SecuritiesBerhad yang berkelayakan berdasarkan kepada peraturanyang ditetapkan oleh Bursa Malaysia Securities Berhad.

Dengan Perintah Lembaga PengarahJOHOR LAND BERHAD

JAMALLUDIN BIN KALAM (LS 02710)IDHAM JIHADI BIN ABU BAKAR ACIS (MAICSA 7007381)Setiausaha-Setiausaha

Tempat: JOHOR BAHRU

Tarikh: 25 APRIL 2008

NOTA KETERANGAN BAGI URUSAN KHAS:-

Resolusi 10

Lembaga Pengarah perlu bertindak merebut peluang-peluangmemperbesarkan perniagaan utama Kumpulan dengan segera,apabila dan jika peluang-peluang itu muncul. Biarpun jumlahpelaburannya mungkin tidak terlalu besar sehingga perlumendapatkan kelulusan para pemegang saham menerusiMesyuarat Agung Luarbiasa, para Pengarah mungkin perlu untukmembiayai peluang perniagaan yang berpotensi itu denganmenerbitkan sebilangan saham-saham baru. Bagi memenuhiproses ini, adalah wajar para Pengarah diberikan kuasamenerbitkan saham-saham dalam Syarikat dengan jumlahnyatidak melebihi sepuluh peratus (10%) daripada terbitan modalsaham Syarikat sedia ada untuk tujuan itu dalam tempohberkenaan. Kuasa ini kecuali dibatalkan atau diubahsuai dalam

mesyuarat agung, akan berkuatkuasa sehingga tamat MesyuaratAgung Tahunan Syarikat berikutnya menurut Seksyen 132(D)Akta Syarikat, 1965.

Nota:-

1. Seorang ahli yang berhak menghadiri dan mengundi dalamMesyuarat ini berhak melantik seorang proksi untuk menghadiri bagipihak dirinya. Seorang proksi tidak semestinya seorang ahli syarikat.

2. Suratcara perlantikan proksi hendaklah dibuat secara bertulis olehpelantik atau wakil mutlak yang berkuasa atau jika pelantik adalahsebuah Perbadanan/Syarikat suratcara mestilah disempurnakan dibawah meterai Perbadanan/Syarikat atau di dalam bidang kuasa wakilmutlak.

3. Apabila seorang Ahli melantik dua orang proksi dalam mesyuaratyang sama, perlantikan tersebut hendaklah menyatakan bilangansaham yang akan diwakili oleh proksi masing-masing.

4. Suratcara perlantikan proksi hendaklah sampai di Pejabat BerdaftarSyarikat, di Tingkat 13, Menara Johor Corporation, KOTARAYA 80000Johor Bahru, Johor tidak lewat dari empat puluh lapan (48) jamsebelum mesyuarat ditetapkan atau sebarang mesyuaratpenangguhannya.

JOHOR LAND BERHAD


137

Statement Accompanying The Notice of Annual General Meeting

1. Directors who are standing for re-election at the Thirty Third(33rd) Annual General Meeting of the Company scheduled tobe held at Main Hall, Kompleks Mutiara Johor Land, JalanBukit Mutiara, Bandar Dato’ Onn, 81100 Johor Bahru, Johoron Wednesday, 21 May 2008 at 12.00 noon are as follows:-

(i) Dr Mohd Hafetz Bin Ahmad (Article 81) Resolution 3

(ii) Tan Sri Dato’ Muhammad Ali Hashim (Article 87) Resolution 4

(iii) A.F.M Shafiqul Hafiz (Article 87) Resolution 5

(iv) Lukman Bin Hj Abu Bakar (Article 87) Resolution 6

(v) Dato Hj Hassan Bin Hj Mohd Yunos (Section 129(6) of the Companies Act, 1965) Resolution 7

The profiles of the Directors standing for re-election are onpages 8, 9, 11, 13, 14 and 17.

2. The Thirty Second (32nd) Annual General Meeting of theCompany was held at Tanjung Puteri 305, Persada JohorInternational Convention Centre, Jalan Abdullah Ibrahim,80000 Johor Bahru, Johor on Monday, 21 May 2007 at12.00 noon.

3. Four (4) Board of Directors’ meetings were held during thefinancial year ended 31 December 2007.

JOHOR LAND BERHAD


138

Penyata Bersama Notis Mesyuarat Agung Tahunan

1. Para Pengarah yang menawarkan diri untuk dipilih semulapada Mesyuarat Agung Tahunan Syarikat yang ke Tiga PuluhTiga (33) yang dijadualkan akan diadakan di Dewan Utama,Kompleks Mutiara Johor Land, Jalan Bukit Mutiara, BandarDato’ Onn, 81100 Johor Bahru, Johor pada hari Rabu, 21Mei 2008 pada jam 12.00 tengahari adalah seperti berikut:-

(i) Dr Mohd Hafetz Bin Ahmad (Artikel 81) Resolusi 3

(ii) Tan Sri Dato’ Muhammad Ali Hashim (Artikel 87) Resolusi 4

(iii) A.F.M Shafiqul Hafiz (Artikel 87) Resolusi 5

(iv) Lukman Bin Hj Abu Bakar (Artikel 87) Resolusi 6

(v) Dato Hj Hassan Bin Hj Mohd Yunos (Seksyen 129(6) Akta Syarikat, 1965) Resolusi 7

Profil para Pengarah yang menawarkan diri untuk dipilihsemula adalah seperti di muka surat 8, 9, 11, 13, 14, dan 17.

2. Mesyuarat Agung Tahunan Syarikat yang ke Tiga Puluh Dua(32) telah diadakan di Tanjung Puteri 305, Pusat KonvensyenAntarabangsa Persada Johor, Jalan Abdullah Ibrahim, 80000Johor Bahru, Johor pada hari Isnin, 21 Mei 2007 pada jam12.00 tengahari.

3. Empat (4) mesyuarat Ahli Lembaga Pengarah telah diadakanpada tahun kewangan berakhir 31 Disember 2007.

JOHOR LAND BERHAD


139

Corporate Directory

JOHOR LAND BERHAD

(Company No: 12379-K)

Main Office

Kompleks Mutiara Johor LandJalan Bukit MutiaraBandar Dato’ Onn81100 Johor BahruJohor Darul Ta’zimMalaysiaTel : 07-356 4888Fax : 07-356 4889

Johor Bahru Division


Bandar Dato’ Onn Divison/Sales Office


Bandar Tiram Division/Sales Office

Taman Bukit Tiram81800 Ulu TiramJohor Darul Ta’zimMalaysiaTel : 07-863 2692Fax : 07-863 4692

Pasir Gudang Division

No. 58-58AJalan Mawar 46Taman Mawar81700 Pasir GudangJohor Darul Ta’zimMalaysiaTel : 07-251 5692Fax : 07-256 4611

Pasir Gudang Sales Office

Mini Dahlia, Persiaran Dahlia 1Taman Bukit Dahlia81700 Pasir GudangJohor Darul Ta’zimMalaysiaTel : 07-252 2692Fax : 07-252 8108

ADVANCE DEVELOPMENT SDN. BHD.

(Company No: 13974-A)Kompleks Mutiara Johor LandJalan Bukit MutiaraBandar Dato’ Onn81100 Johor BahruJohor Darul Ta’zimMalaysiaTel : 07-356 4888Fax : 07-356 4889

JOHOR LAND MANUFACTURING SDN.

BHD.

(Company No: 301430-D)Kompleks Mutiara Johor LandJalan Bukit MutiaraBandar Dato’ Onn81100 Johor BahruJohor Darul Ta’zimMalaysiaTel : 07-356 4888Fax : 07-356 4889

PEMBINAAN PREFAB SDN. BHD.

(Company No: 30936-A)Kompleks Mutiara Johor LandJalan Bukit MutiaraBandar Dato’ Onn81100 Johor BahruJohor Darul Ta’zimMalaysiaTel : 07-356 4888Fax : 07-356 4889

REVERTEX (MALAYSIA) SDN. BHD.

(Company No: 13437-V)1 1/2 Miles, Jalan Batu Pahat86000 KluangJohor Darul Ta’zimMalaysiaTel : 07-773 1000Fax : 07-772 4669

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Proxy Form

*I/We (BLOCK LETTERS)

of being *a member/members of JOHOR LAND BERHAD hereby appoint the *Chairman of the Meeting or

as *my/our Proxy to vote for *me/us on *my/our behalf at the Thirty Third (33rd) Annual General Meeting of the Company tobe held on Wednesday, 21 May 2008 at 12.00 noon or at any adjournment of such meeting.

Should you desire to direct your Proxy how to vote on the Resolutions set out in the Notice of Meeting and as summarisedbelow, please indicate with an “X” in the appropriate space. If no direction as to voting is given, the Proxy will vote or abstainat his/her discretion.

Signed this day of 2008.

Signature of Member(s)

Notes:-

1. A member entitled to attend and vote at this meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not bea member of the Company.

2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if theappointer is a Corporation/Company either under its common seal or under the hand of its attorney duly authorised.

3. If a member appoints two proxies to attend at the same meeting, the instrument of proxy must specify the proportion of his shareholdingsto be represented by each proxy.

4. The instrument appointing a proxy must be deposited at the Registered Office of the Company, at 13th Floor, Menara Johor Corporation,KOTARAYA 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or anyadjournment thereof.

(*) Please strike out whichever inapplicable.

Number of Shares

RESOLUTION DESCRIPTION FOR AGAINST

1 To receive the report and the Audited Financial Statements

2 To approve final dividend

3 To re-elect Director – Dr Mohd Hafetz Bin Ahmad (Article 81)

4 To re-elect Director – Tan Sri Dato’ Muhammad Ali Hashim (Article 87)

5 To re-elect Director – A.F.M Shafiqul Hafiz (Article 87)

6 To re-elect Director – Lukman Bin Hj Abu Bakar (Article 87)

7 To re-elect Director – Dato Hj Hassan Bin Hj Mohd Yunos (Section 129(6) of the Companies Act, 1965)

8 To approve Directors’ fees

9 To re-appoint Auditors

10 To approve issuance of shares

THE COMPANY SECRETARY

JOHOR LAND BERHAD (12379-K)

13th Floor, Menara Johor Corporation

KOTARAYA, 80000 Johor Bahru, Johor

MALAYSIA

FOLD HERE

STAMP

FOLD HERE

Borang Proksi

*Saya/Kami (HURUF BESAR)

beralamat sebagai *ahli/ahli-ahli JOHOR LAND BERHAD dengan ini melantik *Pengerusi Mesyuarat atau

sebagai Proksi *saya/kami untuk mengundi bagi pihak *saya/kami dalam Mesyuarat Agung Tahunan Syarikat kali Ke Tiga PuluhTiga (33) yang akan diadakan pada hari Rabu, 21 Mei 2008, jam 12.00 tengahari atau di sebarang penangguhannya.

Jika anda ingin mengarahkan Proksi anda mengundi ke atas resolusi-resolusi yang dinyatakan di dalam Notis Mesyuarat danseperti ringkasan di bawah, tandakan dengan “X” dalam ruang yang disediakan. Jika tiada arahan tertentu diberi, Proksi andaakan mengundi atau berkecuali mengikut budi bicaranya sendiri.

Ditandatangani pada haribulan 2008.

Tandatangan Ahli/Ahli-ahli

Nota:-

1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak dirinya.Seorang proksi tidak semestinya seorang ahli Syarikat.

2. Suratcara perlantikan proksi hendaklah dibuat secara bertulis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuahperbadanan/syarikat, suratcara mestilah disempurnakan di bawah meterai perbadanan/syarikat atau di dalam bidang kuasa wakil mutlak.

3. Apabila seorang Ahli melantik dua orang proksi dalam mesyuarat yang sama, perlantikan tersebut hendaklah menyatakan bilangan sahamyang akan diwakili oleh proksi masing-masing.

4. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, di Tingkat 13, Menara Johor Corporation, KOTARAYA 80000 JohorBahru, Johor tidak lewat dari empat puluh lapan (48) jam sebelum mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya.

(*) Sila potong mana-mana yang tidak berkenaan.

Bilangan Saham

RESOLUSI KETERANGAN MENYOKONG MENENTANG

1 Menerima laporan dan Penyata Kewangan Beraudit

2 Meluluskan dividen akhir

3 Melantik semula Pengarah – Dr Mohd Hafetz Bin Ahmad (Artikel 81)

4 Melantik semula Pengarah – Tan Sri Dato’ Muhammad Ali Hashim (Artikel 87)

5 Melantik semula Pengarah – A.F.M Shafiqul Hafiz (Artikel 87)

6 Melantik semula Pengarah – Lukman Bin Hj Abu Bakar (Artikel 87)

7 Melantik semula Pengarah – Dato Hj Hassan Bin Hj Mohd Yunos (Seksyen 129(6) Akta Syarikat 1965)

8 Meluluskan bayaran Yuran Pengarah

9 Melantik semula Juruaudit

10 Meluluskan penerbitan saham-saham

SETIAUSAHA SYARIKAT

JOHOR LAND BERHAD (12379-K)

Tingkat 13, Menara Johor Corporation

KOTARAYA, 80000 Johor Bahru, Johor

MALAYSIA

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