Laporan Tahunan 2008 Annual Report - BIMB Holdings

Laporan Tahunan 2008 Annual Report

STRENGTH, STABILITY and UNITY set the platform for BIMB Holdings Berhad in its move towards becoming the preferred Regional Islamic Financial Services group. STRENGTH, STABILITY and UNITY are achieved through harmonised teamwork and strategic efforts, bringing about enhanced shareholder value and returns.

The art of weaving on this year’s cover is symbolic of the interwoven initiatives of the company and its subsidiaries to lay the foundation of STRENGTH, STABILITY and UNITY for the Group. The woven motif has been carefully chosen as a creatively bold approach to depict the synergistic relationship between the company, its shareholders and stakeholders through various initiatives, in preparation for challenges that the future holds.

KETEGUHAN, KESTABILAN dan KESEPADUAN adalah landasan kepada BIMB Holdings Berhad dalam usaha untuk menjadi sebuah kumpulan Perkhidmatan Kewangan Islam Serantau yang utama. KETEGUHAN, KESTABILAN dan KESEPADUAN dicapai melalui semangat kerja berpasukan yang harmoni serta usaha strategik bagi menjana peningkatan nilai dan pulangan kepada pemegang saham.

Seni anyaman yang dipaparkan di muka hadapan laporan tahunan ini adalah simbolik kepada gandingan usaha syarikat dan subsidiari dalam usaha untuk membina satu landasan kukuh berteraskan KETEGUHAN, KESTABILAN dan KESEPADUAN untuk Kumpulan. Motif anyaman ini telah dipilih dengan teliti sebagai pendekatan kreatif dan berani bagi memaparkan hubungan sinergistik di antara syarikat, pemegang saham dan pihak berkepentingan melalui pelbagai inisiatif untuk menghadapi cabaran masa hadapan.

Rasional KulitCover Rationale

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Notis Mesyuarat Agung Tahunan Kesebelas

Penyata Mengiringi Notis Mesyuarat Agung Tahunan

Profil Korporat

Maklumat Korporat

Struktur Korporat Kumpulan

Profil Pengarah

Ketua-ketua Pegawai Eksekutif dalam Kumpulan

Majlis Syariah

Perutusan Pengerusi

Ulasan Operasi Pengarah Urusan Kumpulan

Paparan Kewangan 5 Tahun Kumpulan

Tanggungjawab Sosial Korporat

Sorotan 2007/2008

Penyata Tadbir Urus Korporat

Penyata Kawalan Dalaman

Maklumat Pematuhan Tambahan

Penyata Kewangan

Harta Tanah Milik Kumpulan BHB

Statistik Pemegangan Saham

Rangkaian Kumpulan Serantau

Borang Proksi

Notice of the Eleventh Annual General Meeting

Statement Accompanying Notice of Annual General Meeting

Corporate Profile

Corporate Information

Group Corporate Structure

Directors’ Profile

CEOs in the Group

Shariah Council

Chairman’s Statement

Group Managing Director’s Review of Operations

5-Year Group Financial Highlights

Corporate Social Responsibility

2007/2008 Highlights

Statement of Corporate Governance

Statement on Internal Control

Additional Compliance Information

Financial Statements

Properties Owned by BHB Group

Shareholding Statistics

Regional Group Network

Proxy Form

KandunganContentsg h

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008

009

010

012

014

023

024

026

032

046

048

052

061 / 062

081 / 082

085 / 086

093

168

178

181

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BIMB HOLDINGS BERHAD (423858-X) • Laporan Tahunan 2008 Annual Report


NOTIS DENGAN INI DIBERI bahawa MESYUARAT AGUNG TAHUNAN yang kesebelas BIMB Holdings Berhad akan diadakan di Tun Rahah 1 & 2, Aras 1, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur pada hari Rabu, 17 Disember 2008 pada jam 10.00 pagi untuk tujuan-tujuan berikut:

SEBAGAI URUSAN BIASA

1. Untuk menerima Akaun Beraudit bagi tahun kewangan berakhir 30 Jun 2008 berserta dengan Laporan Pengarah dan Juruaudit mengenainya.

2. Untuk mengisytiharkan dividen pertama dan akhir sebanyak 1.45% ditolak cukai sebanyak 26% bagi tahun kewangan berakhir 30 Jun 2008.

3. Untuk memilih semula para pengarah berikut yang bersara selaras dengan Artikel 61 Tataurusan Persatuan Syarikat dan oleh kerana layak, telah menawarkan diri mereka untuk pemilihan semula:

a) Dato’ Dr. Abdul Halim bin Ismail b) Datuk Ismee bin Ismail c) Puan Zaiton binti Mohd Hassan 4. Untuk memilih semula Encik Johan bin Abdullah yang bersara menurut Artikel 66 Tataurusan

Persatuan Syarikat dan oleh kerana layak, menawarkan diri beliau untuk pemilihan semula.

5. Untuk meluluskan yuran para Pengarah bagi tahun kewangan berakhir 30 Jun 2008.

6. Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Luar Syarikat sehingga tamat Mesyuarat Agung Tahunan akan datang pada tahun 2009 dan untuk memberi kuasa kepada para Pengarah untuk menetapkan imbuhan mereka.

SEBAGAI URUSAN KHAS

7. Resolusi Biasa Cadangan Pembaharuan Mandat Pemegang Saham bagi Urusniaga Berulang Pihak Berkaitan

Berbentuk Hasil atau Perdagangan.

“Bahawa tertakluk kepada Akta Syarikat 1965, Memorandum dan Tataurusan Persatuan Syarikat serta Keperluan Penyenaraian Bursa Malaysia Securities Berhad, kelulusan adalah dan dengan ini diberikan kepada BIMB Holdings Berhad dan subsidiari-subsidiarinya untuk memeterai kategori urusniaga berulang pihak berkaitan yang berbentuk hasil atau perdagangan dengan pihak-pihak berkaitan sebagaimana yang dinyatakan di dalam Seksyen 2.2, Pekeliling kepada Pemegang Saham bertarikh 25 November 2008 yang perlu bagi operasi harian Kumpulan, tertakluk kepada perkara-perkara berikut:-

i. Urusniaga yang dijalankan adalah menurut perniagaan biasa dan berdasarkan terma komersial biasa yang tidak lebih memihak kepada pihak-pihak berkaitan berbanding pihak awam;

ii. Tidak memudaratkan para pemegang saham minoriti Syarikat; dan

iii. Akan diumumkan dalam laporan tahunan dengan pecahan nilai agregat urusniaga yang telah dijalankan sepanjang tahun kewangan menurut mandat pemegang saham (Mandat).

(Resolusi 1)

(Resolusi 2)

(Resolusi 3)(Resolusi 4)(Resolusi 5)

(Resolusi 6)

(Resolusi 7)

(Resolusi 8)

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g hNotice of the Eleventh Annual General Meeting

NOTICE IS HEREBY GIVEN that the eleventh ANNUAL GENERAL MEETING of BIMB Holdings Berhad will be held at Tun Rahah 1 & 2, Level 1, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur on Wednesday, 17 December 2008 at 10.00 a.m for the following purposes:

AS ORDINARY BUSINESS

1. To receive the Audited Accounts for the financial year ended 30 June 2008 together with the Reports of the Directors and Auditors thereon.

2. To declare a first and final dividend of 1.45% less 26% tax in respect of the financial year ended 30 June 2008.

3. To re-elect the following directors who are retiring in accordance with Article 61 of the Company’s Articles of Association and being eligible, have offered themselves for re-election :

a) Dato’ Dr. Abdul Halim bin Ismailb) Datuk Ismee bin Ismailc) Puan Zaiton binti Mohd Hassan

4. To re-elect Encik Johan bin Abdullah, a director who is retiring in accordance with Article 66 of the Company’s Articles of Association and being eligible, has offered himself for re-election.

5. To approve the Directors’ fees for the financial year ended 30 June 2008.

6. To re-appoint Messrs. KPMG Desa Megat & Co. as External Auditors of the Company until the conclusion of the next Annual General Meeting in year 2009 and to authorise the Directors to fix their remuneration.

AS SPECIAL BUSINESS

7. Ordinary ResolutionProposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature.

“That subject to the Companies Act 1965, Memorandum and Articles of Association of the Company and the Listing Requirements of Bursa Malaysia Securities Berhad approval be and is hereby given to BIMB Holdings Berhad and its subsidiaries to enter into the category of recurrent related party transactions of a revenue or trading nature with those related parties as specified in Section 2.2 of the Circular to Shareholders dated 25 November 2008 which are necessary for the Group’s day to day operations subject to the following:-

i. The transactions carried out are in the ordinary course of business and on normal commercial terms that do not favour the related parties more than the general public;

ii. Are not detrimental to the minority shareholders of the Company; and

iii. Will be disclosed in the annual report with the breakdown of the aggregate value of transaction conducted during the financial year pursuant to the shareholders’ mandate during the financial year (Mandate).

(Resolution 1)

(Resolution 2)

(Resolution 3)(Resolution 4)(Resolution 5)

(Resolution 6)

(Resolution 7)

(Resolution 8)

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Dan bahawa Mandat yang diberikan melalui resolusi ini hendaklah berkuatkuasa serta merta selepas Resolusi ini diluluskan;

Dan bahawa Mandat tersebut hendaklah terus berkuatkuasa sehingga:-

a. tamatnya mesyuarat agung tahunan Syarikat akan datang, di mana ia akan luput, melainkan kuasa tersebut diperbaharui melalui satu resolusi yang diluluskan pada mesyuarat berkenaan;

b. tamat tempoh di mana Mesyuarat Agung Tahunan yang akan datang selepas tarikh tersebut perlu diadakan menurut Seksyen 143(1) Akta Syarikat, 1965 (tetapi hendaklah tidak dilanjutkan sehingga tarikh lanjutan yang dibenarkan menurut Seksyen 143(2) Akta Syarikat 1965); atau

c. dibatalkan atau diubah oleh satu resolusi yang diluluskan oleh para pemegang saham dalam satu mesyuarat agung.

mana-mana yang terdahulu.”

8. Resolusi Biasa Kuasa Kepada Lembaga Pengarah Untuk Menerbitkan Saham Menurut Seksyen 132D, Akta

Syarikat, 1965

“BAHAWA menurut Seksyen 132D Akta Syarikat, 1965, Lembaga Pengarah dengan ini diberikan kuasa untuk menerbitkan saham Syarikat ini, pada bila-bila masa dan berdasarkan terma dan syarat dan bertujuan sebagaimana Lembaga Pengarah, dalam pertimbangan mutlak mereka fikirkan sesuai, tertakluk pada bilangan agregat saham yang diterbitkan menurut resolusi ini dalam mana-mana tahun kewangan tidak melebihi sepuluh peratus (10%) daripada modal terbitan Syarikat pada waktu itu DAN BAHAWA Lembaga Pengarah juga diberi kuasa untuk mendapatkan kelulusan bagi penyenaraian dan sebut harga untuk saham-saham tambahan yang diterbitkan di Bursa Malaysia Securities Berhad dan kuasa tersebut akan berkuatkuasa sehingga selesai Mesyuarat Agung Tahunan Syarikat akan datang.”

9. Untuk melaksanakan sebarang urusan biasa lain yang mana notis sewajarnya telah diberikan selaras dengan Akta Syarikat 1965.

(Resolusi 9)

(Resolusi 10)

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005



And that the Mandate conferred by this resolution shall commence immediately upon the passing of this Resolution;

And that such Mandate shall continue to be in force until:-

a. the conclusion of the next annual general meeting of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is renewed;

b. the expiration of the period within which the next Annual General Meeting after the date is required to be held pursuant to Section 143(1) of the Companies Act, 1965 (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of Companies Act 1965); or

c. it is revoked or varied by a resolution passed by the shareholders in a general meeting.

whichever is the earlier.”

8. Ordinary Resolution Authority To Issue Shares Pursuant to Section 132D of the Companies Act, 1965

“THAT pursuant to Section 132D of the Companies Act, 1965, the Board of Directors be and is hereby empowered to issue shares in the Company, at any time and upon such terms and conditions and for such purposes as the Board of Directors may, in their absolute discretion, deem fit provided that the aggregate number of shares issued pursuant to this resolution in any one financial year does not exceed ten percent (10%) of the issued capital of the Company for the time being AND THAT the Board of Directors be and is also empowered to obtain approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company”.

9. To transact any other ordinary business of which due notice shall have been given in accordance with the Companies Act 1965.

(Resolution 9)

(Resolution 10)

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NOTIS PENUTUPAN BUKU

NOTIS DENGAN INI DIBERI BAHAwA daftar ahli akan ditutup dari 23 Disember 2008 hingga 24 Disember 2008 (termasuk kedua-dua tarikh tersebut) untuk menentukan kelayakan para pemegang saham bagi pembayaran dividen.

Dividen tersebut, jika diluluskan, oleh para pemegang saham pada Mesyuarat Agung Tahunan kesebelas, akan dibayar pada 31 Disember 2008 kepada para pemegang saham yang mana nama mereka tersenarai di dalam daftar ahli atau rekod pendeposit pada 22 Disember 2008.

NOTIS SETERUSNYA DENGAN INI DIBERI bahawa seorang pendeposit adalah layak untuk menerima dividen bagi:

a) Saham-saham yang dipindahkan kepada akaun sekuriti pendeposit sebelum jam 4.00 petang pada 22 Disember 2008 berkenaan dengan pindah milik biasa.

b) Saham yang dibeli di Bursa Malaysia Securities Berhad berasaskan kelayakan menurut peraturan Bursa Malaysia Securities Berhad.

Dengan Perintah Lembaga Pengarah

SAIFUL NIZAM BIN YASIN (LS 08955)Setiausaha Syarikat

Kuala Lumpur25 November 2008

Nota :1. Seorang ahli Syarikat yang layak menghadiri dan mengundi di mesyuarat tersebut boleh melantik seorang proksi atau lebih dari seorang

proksi untuk hadir dan mengundi bagi pihaknya.

2. Suratcara pelantikan seorang proksi hendaklah:-i) dalam hal individu, hendaklah ditandatangani oleh pelantik atau oleh peguam beliau; danii) dalam hal sebuah perbadanan, hendaklah di bawah meterai rasmi atau ditandatangani oleh peguamnya atau oleh seorang pegawai

bagi pihak perbadanan tersebut.

3. Jika seorang ahli melantik lebih daripada satu (1) proksi, pelantikan tersebut hendaklah menyatakan bahagian pegangan sahamnya yang akan diwakili oleh setiap proksi.

4. Semua borang-borang proksi hendaklah didepositkan ke Pejabat Berdaftar Syarikat di Aras 18, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur tidak kurang dari empat puluh lapan jam sebelum masa yang ditetapkan untuk mengadakan mesyuarat tersebut atau sebarang penangguhannya.

5. Nota Penerangan kepada Urusan Khasi) Resolusi Biasa 9, sila rujuk kepada Pekeliling kepada Pemegang Saham bertarikh 25 November 2008.ii) Resolusi Biasa 10, jika diluluskan, akan memberi kuasa kepada Lembaga Pengarah untuk menerbitkan saham dalam Syarikat

sehingga satu jumlah yang tidak melebihi sepuluh peratus (10%) daripada modal terbitan Syarikat untuk tujuan yang difikirkan demi kepentingan Syarikat bagi mengelak sebarang penangguhan dan kos pembiayaan dalam menjalankan mesyuarat agung untuk meluluskan penerbitan saham-saham berkenaan. Kuasa ini, kecuali dibatalkan, atau dipinda di mesyuarat agung, akan tamat tempohnya pada akhir Mesyuarat Agung Tahunan Syarikat yang akan datang.

g hNotis Mesyuarat Agung Tahunan Kesebelas

007


NOTICE OF BOOKS CLOSURE

NOTICE IS HEREBY GIVEN THAT the register of members will be closed from 23 December 2008 to 24 December 2008 (both dates inclusive) to determine shareholders entitlement to the dividend payment.

The dividend, if approved, by the shareholders at the eleventh Annual General Meeting, will be paid on 31 December 2008 to shareholders whose names appear in the register of members or record of depositors on 22 December 2008.

FURTHER NOTICE IS HEREBY GIVEN that a depositor shall qualify for dividend entitlement only in respect of:

a) Shares transferred to the depositor’s securities account before 4.00 p.m. on 22 December 2008 in respect of ordinary transfer.

b) Shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of Bursa Malaysia Securities Berhad.

By Order of the Board

SAIFUL NIZAM BIN YASIN (LS 08955)Company Secretary

Kuala Lumpur25 November 2008

Notes :

1. A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him.

2. The instrument appointing a proxy shall:-

i) in case of individual, be signed by the appointer or by his attorney; and

ii) in case of a corporation be either under its common seal or signed by its attorney or by an officer on behalf of the corporation.

3. Where a member appoints more than one (1) proxy the appointment shall specify the proportions of his holdings to be represented by each

proxy.

4. All proxy forms should be deposited at the Company’s Registered Office, Level 18, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang,

55100 Kuala Lumpur not less than forty-eight hours before the time fixed for holding of the meeting or any adjournment thereof.

5. Explanatory Note to the Special Business

i) The Ordinary Resolution 9, please refer to the Circular to Shareholders dated 25 November 2008.

ii) The Ordinary Resolution 10, if passed, will empower the Directors to issue shares in the Company up to an amount not exceeding

in total ten percent (10%) of the issued capital of the Company for such purposes as they consider would be in the interest of

the Company in order to avoid any delay and cost involved in convening a general meeting to approve such issue of shares. This

authority, unless revoked or varied at a general meeting, will expire at the conclusion of the next Annual General Meeting of the

Company.


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g hStatement Accompanying Notice of Annual General Meeting

Penyata Menurut Perenggan 8.28(2) Keperluan Penyenaraian Bursa Malaysia Securities Berhad

1. Para Pengarah yang bersedia untuk pemilihan semula pada Mesyuarat Agung Tahunan kesebelas Syarikat

• Bahawa Dato’ Dr. Abdul Halim bin Haji Ismail bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan memohon pemilihan semula.

• Bahawa Datuk Ismee bin Ismail bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan memohon pemilihan semula.

• Bahawa Puan Zaiton binti Mohd Hassan bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan memohon pemilihan semula.

• Bahawa Encik Johan bin Abdullah yang dilantik pada tahun kewangan, bersara menurut Artikel 66 Tataurusan Persatuan Syarikat dan oleh kerana layak, telah menawarkan diri beliau untuk pemilihan semula.

Butiran para Pengarah di atas disediakan dalam Profil yang dibentangkan di muka surat 014 hingga 022 dalam Laporan Tahunan ini.

Penyata Mengiringi Notis Mesyuarat Agung Tahunan

Statement Pursuant to Paragraph 8.28(2) of the Listing Requirements of Bursa Malaysia Securities Berhad 1. Directors who are standing for re-election at the eleventh Annual General Meeting of the Company

• That Dato’ Dr. Abdul Halim bin Haji Ismail, retires by rotation pursuant to Article 61 of the Company’s Articles of Association and is seeking re-election.

• That Datuk Ismee bin Ismail, retires by rotation pursuant to Article 61 of the Company’s Articles of Association and is seeking re-election.

• That Puan Zaiton binti Mohd Hassan, retires by rotation pursuant to Article 61 of the Company’s Articles of Association and is seeking re-election.

• That Encik Johan bin Abdullah, who was appointed during the financial year, retires pursuant to Article 66 of the Company’s Articles of Association and being eligible, has offered himself for re-election.

The details of the above Directors are set out in the Profile which appear on pages 014 to 022 of this Annual Report.

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Profil KorporatCorporate Profileg h

KeteguhanKestabilanKesepaduan

Strength

Stability

Unity

BIMB Holdings Berhad (BHB) merupakan sebuah syarikat pemegangan pelaburan yang operasinya berlandaskan prinsip Islam. Reputasi BHB yang berdasarkan amalan perniagaan yang beretika telah menarik pelabur dan pelanggan untuk berurusan dengannya. BHB diperbadankan di Malaysia pada 20 Mac 1997 dan disenaraikan di Papan Utama Bursa Saham Kuala Lumpur (kini Bursa Malaysia) pada 16 September tahun yang sama. Modal dibenarkan bagi BHB ialah RM2 bilion sementara modal berbayarnya pula ialah RM891,389,896.

Anak-anak syarikat teras Kumpulan BHB merupakan peneraju dalam pelbagai aktiviti perkhidmatan kewangan Islam termasuk perbankan, takaful, broker saham dan perkhidmatan berkaitan yang lain.

BIMB Holdings Berhad (BHB) is an investment holding company which operates along Islamic principles. It holds broad appeal for investors and customers because of its reputation for ethical practices. BHB was incorporated in Malaysia on 20 March 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange (now Bursa Malaysia) on 16 September in the same year. The authorised capital of BHB is RM2 billion while its paid-up capital is RM891,389,896.

The core subsidiaries of the BHB Group are leaders in various Islamic financial service activities including banking, takaful, stockbroking, and other related services.

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Maklumat Korporat Corporate Informationg h

LEMBAGA PENGARAH BOARD OF DIRECTORS

Tan Sri Samsudin bin OsmanPengarah Bukan Bebas Bukan Eksekutif/PengerusiNon-Independent Non-Executive Director/Chairman Encik Johan bin AbdullahPengarah Urusan Kumpulan/Ketua Pegawai EksekutifPengarah Eksekutif Bukan BebasGroup Managing Director/Chief Executive OfficerExecutive Director Non-Independent

Dato’ Dr Abdul Halim bin IsmailPengarah Bukan Bebas Bukan EksekutifNon-Independent Non-Executive Director

Dato’ Mohd Bakke bin SallehPengarah Bebas Bukan EksekutifIndependent Non-Executive Director

Encik Zahari @ Mohd Zin bin IdrisPengarah Bebas Bukan EksekutifIndependent Non-Executive Director

Encik Salih Amaran bin JamiaanPengarah Bukan Bebas Bukan EksekutifNon-Independent Non-Executive Director

Puan Zaiton binti Mohd HassanPengarah Bebas Bukan EksekutifIndependent Non-Executive Director

Datuk Ismee bin IsmailPengarah Bukan Bebas Bukan EksekutifNon-Independent Non-Executive Director

Dato’ Hairuddin bin MohamedPengarah Bebas Bukan EksekutifIndependent Non-Executive Director

MAJLIS PENGAWASAN SYARIAHSHARIAH SUPERVISORY COUNCILBANK ISLAM MALAYSIA BERHAD

Ustaz Mohd Bakir bin Haji MansorDr Ahmad Shahbari @ Sobri bin SalamonDato’ Daud bin MuhammadDr Abdullah bin Haji IbrahimDr Yusof bin RamliDr Asmak binti Ab Rahman

BADAN PENASIHAT SYARIAHSHARIAH ADVISORY BODYSYARIKAT TAKAFUL MALAYSIA BERHAD

Datuk Abdul Hamid bin SaidUstaz Mohd Bakir bin Haji MansorDr Ahmad Shahbari @ Sobri bin SalamonDr Aida binti Othman

JAWATANKUASA PENAMAAN DAN PENILAIAN NOMINATION AND ASSESSMENT COMMITTEE

Pengerusi | ChairmanDato’ Mohd Bakke bin Salleh Ahli-ahli | MembersEncik Zahari @ Mohd Zin bin IdrisPuan Zaiton binti Mohd HassanDatuk Ismee bin Ismail

JAWATANKUASA GANJARAN REMUNERATION COMMITTEE

Pengerusi | ChairmanDato’ Mohd Bakke bin SallehAhli-ahli | MembersEncik Zahari @ Mohd Zin bin IdrisPuan Zaiton binti Mohd HassanDatuk Ismee bin Ismail

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g hMaklumat Korporat • Corporate Information

JAWATANKUASA KHAS LEMBAGA PENGARAH SPECIAL BOARD COMMITTEE

Pengerusi | ChairmanDato’ Hairuddin bin MohamedAhli-ahli | MembersEncik Zahari @ Mohd Zin bin IdrisDato’ Zukri bin Samat

JAWATANKUASA AUDIT DAN PEMERIKSAAN AUDIT AND EXAMINATION COMMITTEE

Pengerusi | ChairmanEncik Zahari @ Mohd Zin bin IdrisAhli-ahli | MembersEncik Salih Amaran bin JamiaanPuan Zaiton binti Mohd HassanDato’ Hairuddin bin Mohamed

KETUA-KETUA EKSEKUTIF DALAM KUMPULAN CEOS IN THE GROUP

Encik Johan bin AbdullahPengarah Urusan Kumpulan/Ketua Pegawai EksekutifGroup Managing Director/Chief Executive Officer(Dilantik pada 15 Mei 2008/Appointed on 15 May 2008)

Dato’ Zukri bin SamatPengarah Urusan/Managing DirectorBank Islam Malaysia Berhad

Dato’ Mohamed Hassan bin Md KamilPengarah Urusan Kumpulan/Group Managing DirectorSyarikat Takaful Malaysia Berhad

Dato’ Idris bin Md TahirPengarah Eksekutif/Executive DirectorBIMB Securities Sdn. Bhd.

Encik Mohd Takyuddin bin YahyaPemangku Pengurus Besar/Acting General ManagerBIMB Venture Capital Sdn. Bhd.

SETIAUSAHA SYARIKAT COMPANY SECRETARY

Encik Saiful Nizam bin Yasin (LS 08955)

JURUAUDIT AUDITORS

KPMG Desa Megat & Co (AF 0759)Level 10, KPMG Tower8 First Avenue, Bandar Utama47800 Petaling Jaya, Selangor

PEJABAT BERDAFTARREGISTERED OFFICE

Level 18, Menara Yayasan Tun Razak200 Jalan Bukit Bintang55100 Kuala LumpurTel: +603 2781 2999Fax: +603 2781 2998

PENDAFTAR SAHAM SHARE REGISTRAR

Symphony Share Registrars Sdn BhdLevel 26 Menara Multi-PurposeCapital SquareNo 8, Jalan Munshi Abdullah50100 Kuala Lumpur

PENYENARAIAN BURSA SAHAMSTOCK EXCHANGE LISTING

Papan Utama Bursa Malaysia Securities Berhad /Main Board of Bursa Malaysia Securities Berhad16 September 1997

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Struktur Korporat KumpulanGroup Corporate Structure g h

Pada 30 Jun 2008 • As at 30 June 2008

Perbankan • Banking

51% Bank Islam Malaysia Berhad

100% Al-Wakalah Nominees (Tempatan) Sdn. Bhd.

100% BIMB Unit Trust Management Berhad

100% BIMB Foreign Currency Clearing Agency Sdn. Bhd.

100% BIMB Trust Company (Labuan) Ltd

100% BIMB Offshore Bank Management Services

Sdn. Bhd.100% Bank Islam (L) Ltd (Dorman | Dormant)

65.72% Syarikat Takaful Malaysia Berhad

63.09% ASEAN Retakaful International (L) Ltd

56.00% P.T. Syarikat Takaful Indonesia

Takaful • Takaful

100% BIMB Securities (Holdings) Sdn. Bhd.

51% BIMB Securities Sdn. Bhd.

100% BIMSEC Nominees (Asing) Sdn. Bhd.

100% BIMSEC Nominees (Tempatan) Sdn. Bhd.

100% BIMSEC Asset Management Sdn. Bhd.

Pembrokeran Stok & Saham • Stock & Share Broking

Pajakan • Leasing of Assets

100% Syarikat Al-Ijarah Sdn. Bhd.

Pegangan Pelaburan – Modal Teroka •Investment Holding – Venture Capital

100% BIMB Venture Capital Sdn. Bhd.

100% BIMB Musyarakah Satu Sdn. Bhd.

Lain-lain • Others

51% Pembiayaan Perumahan Nasional Sdn. Bhd. (Dorman | Dormant)48% Islamic Banking & Finance Institute Malaysia Sdn. Bhd. *

* Syarikat Bersekutu / Associate Company

013


KeteguhanStrength

g h

014


Tan Sri Samsudin bin Osman

Tan Sri Samsudin, warganegara Malaysia, berusia 61 tahun, adalah Pengarah Bukan Bebas Bukan Eksekutif dan Pengerusi BIMB Holdings Berhad (“BHB” atau “Kumpulan”). Beliau telah dilantik menganggotai Lembaga Pengarah pada 1 Februari 2007. Beliau berkelulusan Sarjana Pentadbiran Awam dari Pennsylvania State University (A.S.), Ijazah Sarjana Muda Sastera (Kepujian) dan Diploma Pengurusan Awam dari Universiti Malaya. Dari tahun 2001 hingga 2006, Tan Sri Samsudin merupakan Ketua Setiausaha Negara, Kerajaan Malaysia.

Pada masa ini, Tan Sri Samsudin menyandang jawatan Presiden Perbadanan Putrajaya. Beliau juga merupakan Pengerusi Lembaga Kumpulan Wang Simpanan Pekerja (“KWSP”), Panel Pelaburan KWSP dan Universiti Utara Malaysia.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB atau mempunyai sebarang konflik kepentingan dengan BHB kecuali sebagai pengarah nomini Lembaga Tabung Haji. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh sepuluh (10) tahun lepas.

Beliau telah menghadiri 9 daripada 10 Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan ini.

Profil PengarahDirectors’ Profileg h

Tan Sri Samsudin, a Malaysian, aged 61, is a Non-Independent Non-Executive Director and the Chairman of BIMB Holdings Berhad (“BHB” or “the Group”). He was appointed to the Board on 1 February 2007. He holds a Masters in Public Administration from Pennsylvania State University (USA), a Bachelor of Arts (Honours) and a Diploma in Public Administration from University of Malaya. From 2001 to 2006, Tan Sri Samsudin was the Chief Secretary to the Government of Malaysia.

Tan Sri Samsudin is presently the President of Perbadanan Putrajaya. He is also the Chairman of the Employees Provident Fund (“EPF”) Board, EPF Investment Panel and University Utara Malaysia.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of Lembaga Tabung Haji. He has not been convicted of any offence within the past ten (10) years.

He attended 9 out of 10 Board Meetings held in the financial year.

015


Encik Johan bin Abdullah

Encik Johan, a Malaysian, aged 52, is the Group Managing Director/Chief Executive Officer and Non-Independent Executive Director of BHB. He was appointed to the Board on 15 May 2008 and holds a Masters in Business Administration (Finance) from Morehead State University (USA), a Bachelor of Business Administration (Finance) from Eastern Michigan University (USA) and a Diploma in Banking from University Technology MARA.

Encik Johan started his professional career in 1987 with Kuala Lumpur Stock Exchange (currently known as Bursa Malaysia Berhad) as Listing Officer. In 1989, he joined the Corporate Finance Division of Bumiputra Merchant Bankers Berhad and left the Bank in early 1995 as Senior Manager. Later he joined Damansara Realty Berhad as General Manager, Corporate Planning. Subsequently in the year 1999, he re-joined Bursa Malaysia Berhad and took up various senior positions including that of Deputy Chief Regulatory Officer/Group Regulation. In May 2008, he joined BIMB Holdings Berhad as Group Managing Director/Chief Executive Officer.

Encik Johan is a director of Bank Islam Malaysia Berhad, Syarikat Takaful Malaysia Berhad and BIMB Securities (Holdings) Sdn. Bhd.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past ten (10) years.

He attended 1 out of 1 Board Meetings held in the financial year since his appointment.

g hProfil Pengarah • Directors’ Profile

Encik Johan, warganegara Malaysia, berusia 52 tahun, adalah Pengarah Urusan Kumpulan/Ketua Pegawai Eksekutif dan Pengarah Eksekutif Bukan Bebas BHB. Beliau telah dilantik menganggotai Lembaga Pengarah pada 15 Mei 2008 dan berkelulusan Sarjana Pentadbiran Perniagaan (Kewangan) dari Morehead State University (AS), Ijazah Sarjana Muda Pentadbiran Perniagaan (Kewangan) dari Eastern Michigan University (AS) dan Diploma Perbankan dari Universiti Teknologi MARA.

Encik Johan memulakan kerjaya profesionalnya pada tahun 1987 dengan Bursa Saham Kuala Lumpur (kini dikenali sebagai Bursa Malaysia Berhad) sebagai Pegawai Penyenaraian. Pada 1989, beliau menyertai Bahagian Pembiayaan Korporat Bumiputra Merchant Bankers Berhad dan meninggalkan bank tersebut pada awal tahun 1995 sebagai Pengurus Kanan. Selepas itu, beliau menyertai Damansara Realty Berhad sebagai Pengurus Besar Perancangan Korporat. Pada tahun 1999, beliau kembali menyertai Bursa Malaysia Berhad dan menyandang pelbagai jawatan penting termasuk Timbalan Ketua Pegawai Penguatkuasa/Penguatkuasaan Kumpulan. Pada Mei 2008, beliau menyertai BIMB Holdings Berhad sebagai Pengarah Urusan Kumpulan/Ketua Pegawai Eksekutif.

Encik Johan adalah pengarah Bank Islam Malaysia Berhad, Syarikat Takaful Malaysia Berhad dan BIMB Securities (Holdings) Sdn. Bhd.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB atau mempunyai konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh sepuluh (10) tahun lepas.

Beliau telah menghadiri 1 daripada 1 Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan sejak pelantikan beliau.

016



Dato’ Dr. Abdul Halim bin Ismail

Dato’ Dr. Abdul Halim, warganegara Malaysia, berusia 69 tahun, adalah Pengarah Bukan Bebas Bukan Eksekutif. Beliau dilantik menganggotai Lembaga Pengarah BHB pada 21 Ogos 1998. Beliau berkelulusan Ijazah Sarjana Muda Sastera (Kepujian) dari Universiti Malaya dan Kedoktoran (DPhil) Ekonomi dari Oxford University, England. Dato’ Abdul Halim adalah mantan Pengarah Urusan Bank Islam Malaysia Berhad.

Pada masa ini, beliau menyandang jawatan Pengarah Eksekutif BIMB Securities Sdn. Bhd. Beliau juga merupakan Pengerusi BIMB Unit Trust Management Berhad dan Pengarah Institut Kefahaman Islam Malaysia (IKIM), SIME Darby Berhad serta ahli Majlis Penasihat Syariah Suruhanjaya Sekuriti dan Bank Negara Malaysia.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB atau mempunyai konflik kepentingan dengan BHB kecuali sebagai pengarah nomini Permodalan Nasional Berhad. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh sepuluh (10) tahun lepas.

Beliau telah menghadiri 8 daripada 10 Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

Dato’ Dr. Abdul Halim, a Malaysian, aged 69, is a Non-Independent Non-Executive Director. He was appointed a Director of BHB on 21 August 1998. He holds a Bachelor of Arts (Honours) from University of Malaya and a Doctor of Philosophy (DPhil) in Economics from Oxford University, England. Dato’ Dr Abdul Halim was formerly the Managing Director of Bank Islam Malaysia Berhad.

He is presently the Executive Director of BIMB Securities Sdn. Bhd. He is also the Chairman of BIMB Unit Trust Management Berhad and a Director of Institut Kefahaman Islam Malaysia (IKIM), SIME Darby Berhad as well as a member of the Shariah Advisory Councils of both the Securities Commission and Bank Negara Malaysia.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of Permodalan Nasional Berhad. He has not been convicted of any offence within the past ten (10) years.


017



Dato’ Mohd Bakke bin Salleh

Dato’ Mohd Bakke, warganegara Malaysia, berusia 54 tahun, adalah Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik menganggotai Lembaga Pengarah pada 3 Jun 2002. Beliau berkelulusan Ijazah Sarjana Muda Sains (Ekonomi) dari London School of Economics and Political Science dan merupakan Felo Institute of Chartered Accountants, England and Wales. Beliau juga adalah ahli Institut Akauntan Malaysia.

Pada masa ini, Dato’ Mohd Bakke memegang jawatan sebagai Pengarah Urusan Kumpulan Felda Holdings Berhad dan adalah mantan Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif Lembaga Tabung Haji.

Kini, Dato’ Mohd Bakke adalah Pengerusi Bank Islam Malaysia Berhad dan ahli Suruhanjaya Sekuriti. Di BHB, Dato’ Mohd Bakke menyandang jawatan Pengerusi Jawatankuasa Penamaan dan Penilaian dan Jawatankuasa Ganjaran Lembaga Pengarah.

Beliau tidak mempunyai sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB atau mempunyai konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh sepuluh (10) tahun lepas.


Dato’ Mohd Bakke, a Malaysian, aged 54, is an Independent Non-Executive Director. He was appointed to the Board on 3 June 2002. He holds a Bachelor of Science (Economics) degree from the London School of Economics and Political Science and is a Fellow of the Institute of Chartered Accountants in England and Wales. He is also a member of the Malaysian Institute of Accountants.

He is presently the Group Managing Director of Felda Holdings Berhad and was formerly the Group Managing Director and Chief Executive Officer of Lembaga Tabung Haji.

Currently, Dato’ Mohd Bakke is the Chairman of Bank Islam Malaysia Berhad and a Commission Member of the Securities Commission. In BHB, Dato’ Mohd Bakke serves as Chairman of the Nomination and Assessment Committee and Remuneration Committee of the Board.



018


Encik Zahari @ Mohd Zin bin Idris

Encik Zahari, warganegara Malaysia, berusia 65 tahun, adalah Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik menganggotai Lembaga Pengarah pada 20 September 2002. Beliau berkelulusan Senior Cambridge Certificate.

Beliau memulakan kerjaya di Malayan Banking Berhad (Maybank), di mana antara tahun 1962 hingga 1996, beliau pernah menyandang pelbagai jawatan kanan di Maybank, termasuk Pengurus Besar, Bahagian Perbankan Komersial (jawatan terakhir yang disandang beliau). Dari tahun 2000 hingga 2005, Encik Zahari merupakan Pengarah Urusan Inter-City MPC (M) Sdn. Bhd.

Kini, Encik Zahari ialah pengarah Bank Islam Malaysia Berhad. Beliau juga adalah Pengerusi Jawatankuasa Audit dan Pemeriksaan dan ahli Jawatankuasa Penamaan dan Penilaian, Jawatankuasa Ganjaran dan Jawatankuasa Khas Lembaga Pengarah.



Encik Zahari, a Malaysian, aged 65, is an Independent Non-Executive Director. He was appointed to the Board on 20 September 2002. He holds a Senior Cambridge Certificate.

He started his career at Malayan Banking Berhad (Maybank), where between 1962 to 1996, he held various senior positions in Maybank, including that of General Manager, Commercial Banking Division (last position held). From 2000 to 2005, Encik Zahari was the Managing Director of Inter-City MPC (M) Sdn Bhd.

Encik Zahari is presently a director of Bank Islam Malaysia Berhad. He is also the Chairman of the Audit and Examination Committee, a member of the Nomination and Assessment Committee, Remuneration Committee and Special Board Committee of the Board.




019


Encik Salih Amaran bin Jamiaan

Encik Salih Amaran, warganegara Malaysia, berusia 68 tahun, adalah Pengarah Bukan Bebas Bukan Eksekutif. Beliau telah dilantik ke Lembaga Pengarah pada 18 Februari 2005. Beliau berkelulusan Ijazah Sarjana Pentadbiran Perniagaan dari Wharton, University of Pennsylvinia (A.S.), Diploma Pentadbiran Awam dari Victoria University, Wellington, dan Ijazah Sarjana Muda Sains (Ekonomi) dari London School of Economics, University of London. Beliau adalah ahli Jawatankuasa Audit dan Pemeriksaan Lembaga Pengarah.

Beliau pernah berkhidmat sebagai Timbalan Setiausaha, Bahagian Kewangan di Kementerian Kewangan, Malaysia; Pengurus Besar, Bahagian Perbankan Antarabangsa Malayan Banking Berhad; Penasihat Khas (Ekonomi) Sekretariat Komanwel, London; dan Timbalan Pengarah, Jabatan Pembiayaan dan Penggalakkan Perdagangan Bank Pembangunan Islam (IDB) di Jeddah. Dari tahun 2000 hingga 2002, beliau menyandang jawatan Wakil Serantau IDB bagi Brunei, Indonesia dan Malaysia yang berpusat di Kuala Lumpur.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB atau mempunyai konflik kepentingan dengan BHB melainkan sebagai pengarah nomini Permodalan Nasional Berhad. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh sepuluh (10) tahun lepas.


Encik Salih Amaran, a Malaysian, aged 68, is a Non-Independent Non-Executive Director. He was appointed to the Board on 18 February 2005. He holds a Masters in Business Administration from Wharton, University of Pennsylvania (USA), a Diploma in Public Administration from Victoria University, Wellington and a Bachelor of Science (Economics) from London School of Economics, University of London. He is a member of the Audit and Examination Committee of the Board.

He has served as the former Deputy Secretary, Finance Division at the Malaysian Ministry of Finance; General Manager, International Banking Division of Malayan Banking Berhad; Special Advisor (Economics) of the Commonwealth Secretariat, London; and Deputy Director, Trade Finance and Promotion Department of the Islamic Development Bank (IDB) in Jeddah. From 2000 to 2002, he was the Regional Representative of IDB for Brunei, Indonesia and Malaysia based in Kuala Lumpur.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of Permodalan Nasional Berhad. He has not been convicted of any offence within the past ten (10) years.



020


Puan Zaiton binti Mohd Hassan

Puan Zaiton, warganegara Malaysia, berusia 51 tahun, adalah Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik menganggotai Lembaga Pengarah pada 2 Februari 2006. Puan Zaiton adalah Felo Association of Chartered Certified Accountants dan ahli Malaysian Institute of Certified Public Accountants.

Pada masa ini, Puan Zaiton menyandang jawatan Pengarah Urusan Capital Intelligence Advisors Sdn Bhd. Beliau merupakan mantan Presiden/Pengarah Eksekutif Malaysian Rating Corporation Berhad (MARC). Sebelum menyertai MARC, Puan Zaiton telah berkhidmat selama 12 tahun dengan Maybank dan pernah menyandang pelbagai jawatan kanan termasuk Pengurus Besar, Perancangan Strategik Kumpulan sehingga beliau meletakkan jawatan pada tahun 1996.

Puan Zaiton adalah pengarah Bank Islam Malaysia Berhad, Malaysian Industrial Development Finance Berhad, Credit Guarantee Corporation Malaysia Berhad dan ahli Suruhanjaya Syarikat Malaysia. Puan Zaiton merupakan ahli Jawatankuasa Audit dan Pemeriksaan, Jawatankuasa Penamaan dan Penilaian dan Jawatankuasa Ganjaran Lembaga Pengarah.


Beliau telah menghadiri kesemua 10 Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

Puan Zaiton, a Malaysian, aged 51, is an Independent Non-Executive Director. She was appointed to the Board on 2 February 2006. Puan Zaiton is a Fellow of the Association of Chartered Certified Accountants and a member of the Malaysian Institute of Certified Public Accountants.

Puan Zaiton is presently the Managing Director of Capital Intelligence Advisors Sdn Bhd. She was formerly the President/Executive Director of Malaysian Rating Corporation Berhad (MARC). Prior to joining MARC, Puan Zaiton served 12 years with Maybank in various senior positions including that of General Manager, Group Strategic Planning, a post she held until her resignation in 1996.

Puan Zaiton is presently a director of Bank Islam Malaysia Berhad, Malaysian Industrial Development Finance Berhad, Credit Guarantee Corporation Malaysia Berhad and a Commission Member of the Companies Commission of Malaysia. Puan Zaiton is a member of the Audit and Examination Committee, Nomination and Assessment Committee and Remuneration Committee of the Board. She does not have any family relationship with any director and/or major shareholder of BHB nor does she have any conflict of interest with BHB. She has not been convicted of any offence within the past ten (10) years.

She attended all the 10 Board Meetings held in the financial year.


021


Datuk Ismee bin Ismail

Datuk Ismee, warganegara Malaysia, berusia 43 tahun, adalah Pengarah Bukan Bebas Bukan Eksekutif. Beliau dilantik menganggotai Lembaga Pengarah pada 9 Oktober 2006. Beliau adalah ahli bersekutu Chartered Institute of Management Accountants dan ahli Institut Akauntan Malaysia.

Pada masa ini, Datuk Ismee adalah Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif Lembaga Tabung Haji. Sebelum itu, beliau merupakan Ketua Pegawai Eksekutif ECM Libra Securities dan Pengarah ECM Libra Capital Sdn Bhd. Beliau juga pernah berkhidmat dengan beberapa organisasi antaranya selaku Pengurus Besar Kanan Kewangan, Lembaga Tabung Haji; Ketua Akauntan di Pengurusan Danaharta Nasional Berhad; Pengurus Besar Pembangunan Perniagaan di Arab Malaysian Development Berhad dan beberapa jawatan berkaitan kewangan di Shell Malaysia.

Datuk Ismee adalah pengarah Bank Islam Malaysia Berhad dan TH Plantations Berhad. Beliau adalah ahli Jawatankuasa Penamaan dan Penilaian dan Jawatankuasa Ganjaran Lembaga Pengarah.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB atau mempunyai konflik kepentingan dengan BHB melainkan sebagai pengarah nomini Lembaga Tabung Haji. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh sepuluh (10) tahun lepas.


Datuk Ismee, a Malaysian, aged 43, is a Non-Independent Non-Executive Director. He was appointed to the Board on 9 October 2006. He is an associate member of the Chartered Institute of Management Accountants and a member of the Malaysian Institute of Accountants.

Datuk Ismee is presently the Group Managing Director and Chief Executive Officer of Lembaga Tabung Haji. Prior to that, he was the Chief Executive Officer of ECM Libra Securities and a Director of ECM Libra Capital Sdn Bhd. He has also served several organisations namely as Senior General Manager of Finance, Lembaga Tabung Haji; Chief Accountant at Pengurusan Danaharta Nasional Berhad; General Manager of Business Development at Arab Malaysian Development Berhad and has held several finance-related positions at Shell Malaysia.

Datuk Ismee is a director of Bank Islam Malaysia Berhad and TH Plantations Berhad. He is a member of the Nomination and Assessment Committee and Remuneration Committee of the Board.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of Lembaga Tabung Haji. He has not been convicted of any offence within the past ten (10) years.



022


Dato’ Hairuddin bin Mohamed

Dato’ Hairuddin, warganegara Malaysia, berusia 58 tahun, adalah Pengarah Bebas Bukan Eksekutif. Beliau telah dilantik menganggotai Lembaga Pengarah pada 9 Oktober 2006. Beliau berkelulusan Sarjana Muda Sains Sosial (Kepujian) dari Universiti Sains Malaysia. Beliau merupakan Pengerusi Jawatankuasa Khas Lembaga Pengarah dan ahli Jawatankuasa Audit dan Pemeriksaan Lembaga Pengarah.

Dato’ Hairuddin adalah mantan Komisioner Polis di Jabatan Siasatan Jenayah Komersial. Sepanjang 36 tahun berkhidmat, beliau telah memegang beberapa jawatan kanan dalam pasukan Polis, antaranya termasuk Timbalan Komisioner Polis (Ketua Polis Kedah), Penolong Komisioner Kanan I (Timbalan Pengarah Pentadbiran (Latihan) dan Penolong Komisioner Kanan II (Jabatan Siasatan Jenayah, Sarawak).



Dato’ Hairuddin, a Malaysian, aged 58, is an Independent Non-Executive Director. He was appointed to the Board on 9 October 2006. He holds a Bachelor of Social Science (Honours) from University Sains Malaysia. He is the Chairman of the Special Board Committee and a member of the Audit and Examination Committee of the Board.

Dato’ Hairuddin was formerly the Commissioner of Police at the Commercial Crimes Investigation Department. During his 36 years of tenure, he held several senior positions in the Force, amongst which were Deputy Commissioner of Police (Chief, Police Officer of Kedah), Senior Assistant Commissioner I (Deputy Director of Administration (Training) and Senior Assistant Commissioner II (Crime Investigation Department, Sarawak).




023


Ketua-ketua Pegawai Eksekutif dalam KumpulanCEOs in the Groupg h

Encik Johan bin Abdullah

Pengarah Urusan Kumpulan /Ketua Pegawai Eksekutif(Dilantik pada 15 Mei 2008)Group Managing Director /Chief Executive Officer(Appointed w.e.f 15 May 2008)BIMB Holdings Berhad

Dato’ Zukri bin Samat

Pengarah UrusanManaging Director Bank Islam Malaysia Berhad

Dato’ Mohamed Hassan bin Md. Kamil

Pengarah Urusan KumpulanGroup Managing DirectorSyarikat Takaful Malaysia Berhad

Dato’ Idris bin Md Tahir

Pengarah Eksekutif (Operasi)Executive Director (Operations)BIMB Securities Sdn Bhd

Encik Mohd Takyuddin bin Yahya

Pemangku Pengurus BesarActing General ManagerBIMB Venture Capital Sdn Bhd

Setiausaha SyarikatCompany Secretaryg h

Encik Saiful Nizam bin Yasin

024


Majlis SyariahShariah Councilg h

Ustaz Mohd Bakir bin Haji Mansor

Pengerusi MPS/ Chairman of SSCBank Islam Malaysia Berhad

Ahli BPS/ Member of SABSyarikat Takaful Malaysia Berhad

Dato’ Daud bin Muhammad

Ahli MPS/ Member of SSCBank Islam Malaysia Berhad

Dr Asmak binti Ab Rahman


Dr Abdullah bin Haji Ibrahim


Dr. Aida binti Othman


Datuk Abdul Hamid bin Said

Pengerusi BPS/ Chairman of SABSyarikat Takaful Malaysia Berhad

Dr Ahmad Shahbari @ Sobri bin Salamon



Dr Yusof bin Ramli


Panduan/Legend:

MPS - Majlis Pengawasan Syariah

SSC - Shariah Supervisory Council

BPS - Badan Penasihat Syariah

SAB - Shariah Advisory Body

025


KestabilanStability

g h

026


Perutusan PengerusiChairman’s Statementg h

“Saya, bagi pihak Lembaga PengarahBIMB Holdings Berhad, dengansukacitanyamembentangkanLaporanTahunan dan Penyata Kewangansyarikat bagi tahun kewangan yangberakhirpada30Jun2008.

On behalf of the Board of Directors of BIMB Holdings Berhad, I am pleased to present the Annual Report and Financial Statements for the financial year ended 30 June 2008. ”

Tan Sri Samsudin bin OsmanPengerusi | Chairman

027


Dear Shareholders,

I am delighted to report that BIMB Holdings Berhad (“BHB” or “the Group”) made strides on the financial and operational fronts for the year under review. The smooth implementation of our turnaround plans, an improved operating environment, as well as lower financing loss provisioning, all contributed to our improved financial performance. On behalf of the Board of Directors, I am pleased to present the Annual Report and Financial Statements of BHB for the financial year ended 30 June 2008.

Financial Performance

For the year under review, BHB turned in a revenue of RM1.43 billion and posted a profit before zakat and tax (“PBZT”) of RM379.6 million. This was a 16.3% increase in revenue and 36.7% increase in PBZT over revenue of RM1.23 billion and PBZT of RM277.6 million registered in the previous financial year. The RM1.23 billion revenue and RM277.6 million PBZT in FY2007 exclude a non-distributable exceptional gain of RM631.5 million derived from the dilution of BHB’s shareholding in subsidiary Bank Islam Malaysia Berhad (“Bank Islam” or “the Bank”).

Para Pemegang Saham,

Saya dengan sukacitanya melaporkan prestasi kewangan dan operasi cemerlang yang telah dicatat oleh BIMB Holdings Berhad (“BHB” atau “Kumpulan”) bagi tahun ulasan. Pelaksanaan rancangan pemulihan Kumpulan, persekitaran operasi yang bertambah baik serta pengurangan peruntukan kerugian pembiayaan, telah menyumbang kepada pencapaian prestasi kewangan yang kian teguh. Oleh yang demikian, saya bagi pihak ahli Lembaga Pengarah dengan sukacitanya membentangkan Laporan Tahunan dan Penyata Kewangan BHB bagi tahun kewangan berakhir 30 Jun 2008.

Prestasi Kewangan

Bagi tahun ulasan, BHB menjana perolehan sebanyak RM1.43 bilion dan mencatat keuntungan sebelum zakat dan cukai (“KSZC”) sebanyak RM379.6 juta. Pencapaian ini adalah peningkatan perolehan pada kadar 16.3% dan peningkatan KSZC pada kadar 36.7% di atas perolehan sebanyak RM1.23 bilion dan KSZC sebanyak RM277.6 juta yang dicatat pada tahun kewangan yang lalu. Perolehan sebanyak RM1.23 bilion dan KSZC sebanyak RM277.6 juta pada tahun kewangan 2007 tidak termasuk keuntungan berkecuali tidak boleh agih sebanyak RM631.5 juta yang diraih berikutan pengurangan pegangan saham BHB di dalam subsidiari iaitu Bank Islam Malaysia Berhad (“Bank Islam” atau “Bank”).

Perutusan Pengerusi • Chairman’s Statementg h

028



Higher operating income from both Bank Islam and Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) also contributed to our improved financial performance.

In line with the improvement in our financial performance, shareholders’ funds rose 9.1% to RM1.01 billion in FY2008, while total assets expanded by 22.3% to RM27.6 billion. The Group’s net tangible assets per share grew 9.7% to 113 sen (FY2007: 103 sen), while we posted return on assets of 1.51% and return on equity of 39.4% respectively.

Strategic Initiatives

Over the course of the year, the Banking and Takaful & Retakaful operations undertook several initiatives in line with the Group’s objective of growing its business, both locally and internationally.

On the Banking front, Bank Islam initiated a re-branding exercise in August 2007 to enhance the Bank’s image and infuse a more customer-centric and performance-driven culture within the Bank. The aggressive marketing of highly popular core products,

Pendapatan operasi yang lebih tinggi dari Bank Islam dan Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) juga telah menyumbang kepada prestasi kewangan yang memberangsangkan ini.

Sejajar dengan peningkatan prestasi kewangan, dana pemegang saham juga telah meningkat pada kadar 9.1% kepada RM1.01 bilion pada TK2008, sementara jumlah aset meningkat pada kadar 22.3% kepada RM27.6 bilion. Aset ketara bersih Kumpulan turut meningkat pada kadar 9.7% kepada 113 sen (TK2007 : 103sen) disamping pulangan ke atas aset pada kadar 1.51% dan pulangan ke atas ekuiti pada kadar 39.4%.

Inisiatif Strategik

Sepanjang tahun yang lepas ini, operasi Perbankan dan Takaful & Retakaful telah mengambil beberapa inisiatif yang sejajar dengan objektif pengembangan perniagaan Kumpulan, sama ada di dalam mahupun di luar negara.

Di sektor Perbankan, Bank Islam telah melaksanakan program penjenamaan semula pada Ogos 2007 di mana objektif utama adalah untuk menambahkbaik budaya kerja para kakitangan Bank serta fokus mereka terhadap khidmat pelanggan. Inisiatif seperti aktiviti pemasaran yang lebih agresif terhadap produk utama Bank Islam, pengenalan produk baru yang inovatif dan berlandaskan Syariah serta menambahbaik jualan bersama dan pengelompokkan produk adalah antara langkah yang telah diambil untuk memacu pertumbuhan perniagaan Bank Islam. Bank Islam juga telah menjalin kerjasama strategik dengan, antaranya, Lembaga Tabung Haji, Amanah Raya Berhad dan Kementerian Kewangan untuk mengembangkan portfolio pelanggan dan penawaran produk Perbankan kepada kumpulan pelanggan yang berbeza.

Berkenaan subsidiari Takaful dan Retakaful, perbincangan telah dilakukan dengan dua pelabur institusi luar negara iaitu Islamic Arab Insurance Company dan Abu Dhabi-Kuwait-Malaysia Strategic Investment Corporation, untuk mendapatkan rakan strategik Takaful Malaysia. Takaful Malaysia juga bercadang untuk mengukuhkan struktur modal dan menambahbaik pertumbuhan perniagaannya di Indonesia sejajar dengan pelan pengembangan serantau. Unit Takaful Kumpulan juga telah melakukan penyepaduan cawangan, melakukan penelitian kepada model jualan dan pengedaran serta menambahbaik model bancatakaful dengan Bank Islam.

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Langkah Tadbir Urus Korporat

BHB komited untuk melaksanakan langkah tadbir urus korporat yang teguh bagi melindungi serta menambahbaik nilai pemegang saham. Atas dasar itu, kami telah melaksanakan kawalan dalaman yang teguh serta memastikan agar laporan Kumpulan adalah telus dan bertanggungjawab dan ianya dijadikan amalan budaya korporat kami. Berikutan semakan terhadap proses dalaman dan risiko Kumpulan, Lembaga Pengarah telah menyokong pelaksanaan Rangkakerja Pengurusan Risiko Enterprise untuk memformalkan proses mengenalpasti, menilai, mengurus dan mengawal risiko yang dihadapi oleh Kumpulan. Subsidiari kami juga akan terus mengguna-pakai kawalan dalaman lain, antaranya, batas bidang kuasa dan kod kelakuan dan etika yang bertujuan untuk menjaga kepentingan stakeholders.

Komitmen kepada Tanggungjawab Sosial Korporat (“CSR”)

Sebagai sebuah syarikat induk pelaburan yang beroperasi mengikut lunas-lunas Syariah, Kumpulan terus komited dalam menunaikan tanggungjawab terhadap pembangunan dan pemerkasaan masyarakat melalui amalan CSR yang baik. Bagi tujuan itu, subsidiari Kumpulan telah menyumbang kepada kumpulan masyarakat yang memerlukan melalui tabung Zakat. Selain daripada itu, sumbangan turut dihulurkan melalui pelbagai pendekatan dan antaranya adalah inisiatif pendidikan dan kebajikan. Butiran lanjut mengenai inisiatif CSR tahun ini dipaparkan dengan jelas di Bahagian CSR Laporan Tahunan ini.

the introduction of innovative new Shariah-based products and enhanced cross-selling and bundling of products, all played a part in driving the Bank’s business growth. Bank Islam also entered into strategic partnerships with Lembaga Tabung Haji, Amanah Raya Berhad and the Ministry of Finance, among others, to expand its customer base and increase the Bank’s range of offerings to different groups.

With regard to our Takaful & Retakaful subsidiary, negotiations were initiated with two foreign institutional investors, namely the Islamic Arab Insurance Company and the Abu Dhabi-Kuwait-Malaysia Strategic Investment Corporation, to attain a strategic partner for Takaful Malaysia. Takaful Malaysia also intends to strengthen its capital structure and enhance business growth of its Indonesia operations in line with its regional expansion plans. Our Takaful arm also undertook branch consolidation, made refinements to its sales and distribution model, as well as enhanced its bancatakaful model with Bank Islam.

Corporate Governance Measures

BHB is committed to pursuing strong corporate governance measures that safeguard and enhance shareholder value. We have implemented strong internal controls and are ensuring that transparent and accountable reporting is deeply embedded within our corporate culture. Following a review of the Group’s risks and internal processes, the Board has endorsed the implementation of an Enterprise Risk Management Framework to formalise the process of identifying, evaluating, managing and monitoring the significant risks faced by the Group. Our subsidiaries too, continue to employ other forms of internal control such as limits of authority and codes of conduct and ethics, among other practices, to safeguard stakeholders’ interests.

Commitment to Corporate Social Responsibility (“CSR”)

As an investment holding company operating along Shariah principles, we remain committed to fulfilling our responsibility of enriching and developing communities through good CSR practices. Our subsidiaries contribute to the needy through their Zakat (tithes) funds and give back to the communities in which they operate by contributing to educational initiatives and charitable causes. Details of the year’s CSR initiatives can be found in the CSR section in this Annual Report.

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Tinjauan Pasaran

Bank Negara Malaysia (“BNM”), baru-baru ini telah menyatakan bahawa walaupun persekitaran kewangan global adalah mencabar, pertumbuhan di dalam sektor kewangan Islam, pada dasarnya kekal positif. Ini adalah kerana prinsip yang diamalkan oleh kewangan syariah yang menitikberatkan perkongsian-keuntungan dan perlunya aset ketara yang diletak di bawah transaksi yang menyebabkan sektor ini tidak merasai kesan krisis yang melanda sistem perbankan konvensional sepenuhnya. Menurut injuksi berlandaskan Syariah juga, transaksi kewangan adalah beriring oleh aktiviti sandaran produktif, oleh itu ianya memberi peningkatan kepada jalinan rapat di antara kewangan dan aliran produktif. Oleh kerana hukum syariah melarang struktur pembiayaan yang kompleks dan tidak jelas (umpama pinjaman subprime yang menyebabkan kejatuhan pasaran perumahan Amerika Syarikat), industri kewangan Islam semakin dianggap pilihan yang lebih baik.

Walau bagaimanapun, keadaan tidak menentu di pasaran global dan pertumbuhan keseluruhan yang lemah telah memberi kesan kepada urusniaga secara Islam serta nilai dan aktiviti beberapa segmen pasaran. Kewangan Islam juga dijangka mengekalkan pertumbuhan pasaran kerana bilangan pasaran yang belum diteroka dan potensi sumber modal baru.

Market Outlook

Bank Negara Malaysia (“BNM”), recently highlighted that in spite of the challenging global financial environment, developments in Islamic finance have, thus far, remained positive. As a result of the profit-sharing principles of the Shariah financing structure and the requirement that tangible assets underlie transactions, the sector has not felt the full brunt of the crisis that has shaken the conventional banking system. Shariah-based injunctions dictate that financial transactions are accompanied by underlying productive activities, thus giving rise to a close link between financial and productive flows. As Shariah forbids complex, opaque financing structures (akin to the subprime loans that set off the US housing market collapse), the global Islamic finance industry is increasingly regarded as a safer alternative.

Still, uncertainties in global markets and slower overall growth are having an impact on Islamic transactions with pricing and activities in certain market segments being affected. Despite such challenges, Islamic finance is expected to remain a growing market with many untapped markets and potential new sources of funds.

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Menuju ke hadapan

Ketika Kumpulan melangkah ke hadapan untuk merebut pelbagai peluang perniagaan, kami akan berusaha gigih untuk mengukuhkan landasan sedia ada dan berhati-hati terhadap cabaran yang terdapat di dalam persekitaran operasi. Oleh itu, kami juga akan memberi tumpuan yang lebih ke atas strategi yang akan diambil serta melaksanakan proses seliaan yang lebih ketat.

Kami menjangkakan persekitaran perniagaan yang lebih mencabar dan pengurangan ke atas margin pendapatan bersih berikutan ekonomi global yang tidak menentu serta harga komoditi dan tenaga yang dijangka melembabkan penumbuhan di rantau ini. Bagi mengatasi kesan ini dan mengekalkan perolehan, Kumpulan akan mengekalkan kualiti aset yang teguh, memastikan kos operasi yang efisyen bagi mensasarkan pertumbuhan mampan.

Beberapa inisiatif utama akan dilaksanakan untuk menyokong objektif perniagaan. Bagi memastikan keberkesanan kos yang optimum, kami akan menggunakan teknologi, memperbaiki proses dan sistem, menambahbaik produktiviti dan mengekang risiko melalui pengukuhan rangka kerja pengurusan risiko. Kami juga akan memberi tumpuan terhadap penambahbaikan kualiti modal insan di mana Kumpulan akan memastikan kejayaan inisiatif strategik jangka panjang BHB.

Penghargaan

Saya bagi pihak Lembaga Pengarah BHB, ingin menyampaikan ucapan penghargaan setulus ikhlas kepada para pemegang saham, pelanggan dan rakan niaga di atas sokongan dan keyakinan yang telah diberikan kepada Kumpulan. Ucapan terima kasih juga diberikan kepada pihak Kerajaan dan badan kawalselia, terutama sekali kepada Bank Negara Malaysia, Suruhanjaya Sekuriti dan Bursa Malaysia Securities Berhad, di atas nasihat dan sokongan yang berterusan.

Saya juga ingin mengucapkan terima kasih kepada rakan-rakan Lembaga Pengarah di atas dedikasi dan komitmen berterusan mereka dalam memacu pertumbuhan Kumpulan. Saya berharap akan terus menerima pandangan bernas dari semua pihak dalam usaha Kumpulan mengerakkan rancangan untuk meraih pertumbuhan di masa hadapan. Kepada kumpulan pengurusan dan kakitangan BHB di semua peringkat, ucapan terima kasih dari kami ahli Lembaga Pengarah di atas usaha gigih anda semua dalam memastikan Kumpulan terus maju.

Dalam pada kita semua memacu Kumpulan ke hadapan, kami percaya bahawa para pemegang saham dan pihak yang berkepentingan akan terus memberi sokongan yang padu.

Terima kasih.

Going Forward

As the Group moves forward to take advantage of the opportunities before us, we will work to strengthen our foundations while being mindful of the challenges in today’s operating environment. In view of this, we will also place more emphasis on the type of strategy to employ as well as ensuring a stringent monitoring process is in place.

With the turbulent global economy as well as volatile energy and commodity prices likely to slow growth within the region, we anticipate the emergence of an increasingly competitive environment and narrower net income margins. To mitigate these effects and sustain our bottom line, the Group will pursue strong volume growth, ensure operational cost efficiency and maintain strong asset quality.

Several key initiatives will be implemented to support our business objectives. To ensure that cost efficiency is optimised, we will leverage on technology, improve our systems and processes, enhance productivity and mitigate risk through a strong risk management framework. We will also focus on enhancing the quality of our human capital which will ensure the success of BHB’s strategic initiatives over the long-term.

In Appreciation

On behalf of the Board of Directors of BHB, I wish to convey my heartfelt appreciation to our shareholders, customers and business associates for your steadfast support of BHB and your confidence in the Group. Our thanks to the Government and regulators, in particular Bank Negara Malaysia, the Securities Commission and Bursa Malaysia Securities Berhad, for their continuing guidance and support.

I also wish to thank my fellow members on the Board for their dedication and continuous commitment to the Group’s growth. I look forward to your invaluable insights even as we roll out the plans to secure the future growth of the Group. To the BHB management team and staff at all levels, please accept the Board’s gratitude for your hard work in ensuring that the Group continues to improve.

As we drive the Group forward to new heights of success, we trust that all our stakeholders will continue to give us their unwavering support.

Thank you.

TAN SRI SAMSUDIN OSMANPengerusi/Chairman

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Ulasan Operasi Pengarah Urusan KumpulanGroup Managing Director’s Review of Operationsg h

Johan AbdullahPengarah Urusan Kumpulan | Ketua Pegawai EksekutifGroup Managing Director | Chief Executive Officer

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Dear Shareholders,

It is indeed a privilege and an honour to lead the experienced and dedicated team at BIMB Holdings Berhad (“BHB” or “the Group”). Since I came on board BHB on 15 May 2008, the team has extended me their full support and together we have put several key initiatives in place.

Growth Initiatives

We recognise that in order to play a more significant role and move closer towards global market leadership in Islamic Finance in these challenging economic times, we need to reinvent and position ourselves strategically to stay ahead of our competitors. In line with this, we have taken the initiative of placing experienced individuals in key positions at our operating subsidiaries. These individuals, coming from diverse cultures and backgrounds, possess the right blend of expertise and a keen understanding of Islamic Finance and its role in the capital and financial markets. We also recognise that only by continuously offering innovative products and services in line with market expectations, can we win and retain customers’ hearts and minds. Whilst we remain a source of reference for Shariah-compliant products and services, we will need to further develop our capabilities to become the one-stop reference centre for wider-ranging Islamic financial services.

In positioning the Group as a local as well as a cross-border champion, we can no longer rely solely on organic growth for value enhancement. Considering the pace at which our industry is moving today, it is inevitable that we need to collaborate with the right strategic partners and explore market-driven mergers and acquisitions (“M&As”) which fit in with our vision and aspirations for the Group.

Para Pemegang Saham Sekelian,

Saya bersyukur dan amat berbesar hati kerana telah dilantik untuk mengetuai kumpulan pengurusan BIMB Holdings Berhad (“BHB” atau “Kumpulan”) yang berpengalaman dan berdedikasi. Semenjak saya menyertai BHB, sokongan penuh telah diberikan kepada saya untuk bersama-sama melaksanakan beberapa inisiatif utama.

Arah Aliran Perniagaan

Kami mengakui bahawa untuk memainkan peranan yang lebih penting dan mencapai sasaran untuk menjadi peneraju pasaran global Kewangan Islam di dalam suasana ekonomi yang mencabar ini, kami perlu memperbaharui dan meletakkan diri pada kedudukan yang strategik agar dapat mendahului para pesaing. Sejajar dengan itu, kami telah mengambil inisiatif dengan melantik para pegawai yang berpengalaman bagi mengisi jawatan penting di subsidiari kami. Individu yang dipilih pula adalah mencakupi pelbagai latar belakang, pengalaman dan mempunyai gabungan kepakaran dan pendedahan serta kefahaman mendalam mengenai Kewangan Islam dan peranannya dalam pasaran modal dan kewangan.

Kami turut percaya bahawa hanya dengan terus berusaha secara inovatif untuk menawarkan produk dan perkhidmatan sejajar dengan kehendak pasaran, barulah kami dapat menambat hati dan mengekalkan para pelanggan kami. Walaupun kami merupakan sumber rujukan bagi produk dan perkhidmatan yang mematuhi kehendak Syariah, namun kami masih perlu mempertingkatkan kemampuan untuk menjadi pusat rujukan bagi perkhidmatan kewangan Islam yang lebih luas.

Bagi menempatkan Kumpulan sebagai peneraju di dalam dan di luar negara, kita tidak lagi boleh bergantung kepada pertumbuhan lazim semata-mata untuk mencapai peningkatan nilai. Berdasarkan kepada kepesatan kemajuan industri hari ini, kita perlu bekerjasama dengan rakan perniagaan strategik dan menerokai penggabungan dan pengambilalihan (“M&A”) yang didorong oleh pasaran yang sesuai dengan wawasan dan aspirasi Kumpulan.

g hUlasan Operasi Pengarah Urusan Kumpulan • Group Managing Director’s Review of Operations

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Prestasi Kewangan

Bagi tahun kewangan berakhir 30 Jun 2008 (“TK2008”), BHB mencatatkan perolehan sebanyak RM1.43 bilion, meningkat 16.3% berbanding RM1.23 bilion yang dicatatkan pada tahun kewangan 2007 (“TK2007”). Keuntungan sebelum cukai dan zakat (“KSZC”) Kumpulan pula meningkat sebanyak 36.7% kepada RM379.6 juta berbanding RM277.6 juta sebelumnya. Perolehan sebanyak RM1.23 bilion dan KSZC yang berjumlah RM277.6 juta pada TK2007 tidak termasuk keuntungan terkecuali tidak boleh diagih sebanyak RM631.5 juta, terhasil daripada pengurangan pegangan BHB dalam subsidiarinya iaitu Bank Islam Malaysia Berhad (“Bank Islam” atau “Bank”).

Prestasi kewangan kami yang teguh ini terhasil daripada pendapatan operasi yang lebih tinggi daripada Bank Islam dan Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) berikutan dengan pencapaian positif yang ditampilkan oleh pelan pemulihan kami, persekitaran operasi yang semakin menggalakkan dan kerugian peruntukan pembiayaan yang lebih rendah. Bank Islam yang kini memasuki tahun ke 26 operasinya, menyumbangkan 82.4% daripada jumlah perolehan BHB hasil daripada dorongan permintaan teguh terhadap produk dan perkhidmatan berasaskan Syariah. Perniagaan Takaful dan Retakaful pula menyumbang sebanyak 16.9% kepada perolehan BHB dengan baki sumbangan diperolehi daripada perniagaan bahagian pembrokeran saham dan perniagaan-perniagaan kami yang lain.

Financial Performance

For the financial year ended 30 June 2008 (“FY2008”), BHB registered revenue of RM1.43 billion, a 16.3% increase over revenue of RM1.23 billion registered in the 2007 financial year (“FY2007”). The Group recorded a 36.7% increase in profit before zakat and tax (“PBZT”) with PBZT rising to RM379.6 million against RM277.6 million previously. The revenue of RM1.23 billion and the RM277.6 million PBZT in FY2007 excludes a non-distributable exceptional gain of RM631.5 million derived from the dilution of BHB’s shareholding in its subsidiary Bank Islam Malaysia Berhad (“Bank Islam” or “the Bank”).

Our healthy financial performance comes on the back of higher operating income from both Bank Islam and Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) as a result of the positive progress of our turnaround plans, an improved operating environment and lower financing loss provisioning. Now into its 26th year of operations, Bank Islam contributed 82.4% of BHB’s total revenue due to strong demand for its Shariah-based products and services. The Takaful and Retakaful business contributed 16.9% to BHB’s total revenue with the remaining contributions coming from our stockbroking arm and other businesses.


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Pada akhir TK2008, pembiayaan dan pendahuluan kasar BHB adalah sebanyak RM667.5 juta. Pembiayaan bagi pembelian hartanah kediaman, kenderaan pengangkutan dan kredit kepenggunaan yang berjumlah RM6.4 bilion adalah 60.8% daripada jumlah portfolio pembiayaan dan pendahuluan kasar Kumpulan pada 30 Jun 2008.

Selaras dengan prestasi kewangan positif kami, dana pemegang saham telah meningkat sebanyak 9.1% atau RM84.1 juta, daripada RM0.92 bilion pada TK2007 kepada RM1.01 bilion pada TK2008. Jumlah aset asas BHB pula berkembang sebanyak 22.3% kepada RM27.6 bilion tahun ini berbanding RM22.6 bilion pada TK2007. Ini adalah didorong, terutamanya, oleh pertumbuhan aset berasaskan Perbendaharaan. Aset ketara bersih sesaham Kumpulan meningkat sebanyak 9.7% kepada 113 sen (TK2007: 103 sen), sementara pulangan ke atas aset (“ROA”) pula adalah 1.51% dan pulangan ke atas ekuiti (“ROE”) sebanyak 39.4%.

Pada masa hadapan, kami berpandangan optimistik namun berhati-hati dalam mencapai kemajuan serta kejayaan di dalam bidang perbankan dan kewangan Islam yang semakin mencabar dan berciri global. Untuk meneruskan pertumbuhan perniagaan, kami akan bekerjasama dengan subsidiari kami dan melaksanakan pelbagai perubahan strategik bagi memastikan agar kami mampu untuk bersaing sama ada dari dalam mahu pun luar negara.

Perbankan Islam

Bank Islam mencatatkan KSZC yang disatukan berjumlah RM316.9 juta, melonjak 49.5% atau RM104.9 juta daripada RM212.0 juta pada TK2007. Perolehan pula bertambah sebanyak 15.9% atau RM161.7 juta kepada RM1.18 bilion pada TK2008. Jumlah tersebut merupakan sumbangan sebanyak 82.4% kepada jumlah perolehan BHB. Ini adalah petunjuk jelas bahawa strategi yang dilaksanakan oleh Bank Islam untuk memanfaatkan permintaan terhadap produk dan perkhidmatan berasaskan Syariah yang semakin meningkat

At the end of FY2008, BHB’s gross financing and advances had increased by RM667.5 million. Financing for the purchase of residential property, transportation vehicles and consumption credit amounted to RM6.4 billion, representing 60.8% of the total gross financing and advances portfolio as at 30 June 2008.

Concurrent with our positive f inancial performance, shareholders funds rose by 9.1% or RM84.1 million, from RM0.92 billion in FY2007 to RM1.01 billion in FY2008. BHB’s total assets base expanded by 22.3% to RM27.6 billion this year in comparison to FY2007’s RM22.6 billion, mainly as the result of growth in Treasury-based assets. The Group’s net tangible assets per share grew by 9.7% to 113 sen (FY2007: 103sen), while we posted a return on assets (“ROA”) of 1.51% and a return on equity (“ROE”) of 39.4%.

Moving forward, we are cautiously optimistic of continuing the progress and success of our performance in the increasingly globalised Islamic banking and finance landscape. To drive business growth, we will continue to work closely with

our subsidiaries and make the necessary strategic changes to ensure that, together, we can compete both locally and globally.

Islamic Banking

Bank Islam posted a consolidated PBZT of RM316.9 million in FY2008, a 49.5% or RM104.9 million jump against the RM212.0 million achieved in FY2007. Its revenue increased by 15.9% or RM161.7 million to RM1.18 billion in FY2008, contributing 82.4% of BHB’s total revenue. This is a clear indication that the strategies Bank Islam has set in place to capitalise on the increasing demand for Shariah-based products and services in Malaysia, are bearing fruit. All Bank Islam’s divisions performed


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di Malaysia, kian membuahkan hasil. Kesemua bahagian Bank Islam menampilkan prestasi teguh, dengan bahagian Perbankan Pengguna kekal sebagai penyumbang terbesar, meliputi 64.3% daripada jumlah aset pembiayaan kasar Bank.

Berikutan pelaksanaan Rangka Kerja Kecukupan Modal bagi Bank-bank Islam (“CAFIB”) baharu yang berkuatkuasa pada 1 Januari 2008, Bank Islam telah mencatatkan Nisbah Modal Berwajaran Risiko (“RWCR”) sebanyak 13.15% (TK2007: 12.07%). Selaras dengan pengukuhan prestasi ini, pendapatan sesaham Bank Islam telah meningkat kepada 22.6 sen berbanding 14.4 sen pada TK2007 dan jumlah aset meningkat sebanyak 23.6% atau RM4.5 bilion kepada RM23.6 bilion.

Bank Islam telah mempergiatkan usaha dalam memperbaiki profil risiko dan kualiti asetnya melalui pengandaan kutipan semula yang lebih berkesan serta pengurusan kredit yang lebih efektif. Hasilnya, nisbah pembiayaan tidak berbayar bersih (“NPF”) bertambah baik daripada 11.4% kepada 7.8% sementara liputan kerugian pembiayaan meningkat daripada 63.0% kepada 71.6%, kadar yang semakin hampir dengan purata industri.

Keteguhan prestasi Bank Islam juga dirangsang oleh strateginya untuk memanfaatkan langkah penjenamaan semulanya yang berkesan, kedudukan sebagai peneraju pasaran dan produk kewangan Islam yang semakin popular. Pemasaran dan promosi agresif produk-produk teras yang terkenal turut membantu menghasilkan tahap keuntungan yang lebih tinggi. Bank Islam juga memperkenalkan beberapa produk pembiayaan, deposit dan pelaburan berinovasi yang mematuhi Syariah untuk para pelanggan runcit dan perniagaan.

well, with the Consumer Banking division remaining the largest contributor, comprising 64.3% of the total gross financing assets of the Bank.

Following the implementation of the new Capital Adequacy Framework for Islamic Banks (“CAFIB”) effective 1 January 2008, Bank Islam, registered a Risk Weighted Capital Ratio (“RWCR”) of 13.15% (FY2007: 12.07%). With the improved performance, the Bank’s earnings per share improved to 22.6 sen from 14.4 sen in FY2007 and total assets increased by 23.6% or RM4.5 billion to RM23.6 billion.

Bank Islam went all out to improve its risk profile and asset quality through intensified recovery efforts and effective credit management. As a result, its net non-performing financing (“NPF”) ratio improved further from 11.4% to 7.8%, while its financing loss coverage rose from 63.0% to 71.6%, closer to the industry average.

Bank Islam’s strong performance is also attributable to its strategy of leveraging on its strong rebranding, market leadership position and the increasing popularity of Islamic financial products. Aggressive marketing and promotion of highly popular core products also helped pave the way to higher profits. Bank Islam also introduced several innovative Shariah-compliant financing, deposit and investment products for retail and business customers.


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Melalui perkongsian strategik dengan Lembaga Tabung Haji (“LTH”) dan beberapa pemaju hartanah, Bank Islam telah menambah jenis produknya dan memperluaskan asas pelanggannya. Bank Islam turut menjalin permuafakatan dengan Kementerian Kewangan dan Amanah Raya Berhad untuk menyediakan perkhidmatan yang berkaitan dengan kumpulan sasaran tertentu. Sebagai sebahagian daripada usaha untuk mengekalkan kelebihan teknologinya, Bank Islam telah melaksanakan hubungan ATM serantau antara Bank Islam, MEPS dan Arta Jasa dari Indonesia bagi menyediakan liputan ATM yang lebih meluas di Indonesia. Ia juga melaksanakan langkah penggabungan perkhidmatan ATM dan CDM dengan LTH.

Jualan bersama dan penggabungan produk antara jenis-jenis perniagaan juga bertambah, berserta dengan usaha berterusan untuk memulihkan pembiayaan lapuk dan memperolehi aset yang kualitinya lebih baik telah menyaksikan nisbah NPF bersih berkurangan kepada 7.8% daripada 11.4% sebelumnya. Bank juga berjaya mengendalikan urusniaga Tawaran Mandatori Awam, menjadikan Bank Islam sebagai bank komersil yang pertama (samada berlandaskan syariah mahupun konvensional) yang berbuat demikian.

Through strategic partnerships with Lembaga Tabung Haji (“LTH”) and several property developers, Bank Islam increased its product range and expanded its customer base. The Bank also entered into partnerships with the Ministry of Finance and Amanah Raya Berhad to provide services relevant to specific target groups. As part of its efforts to keep its technological edge, Bank lslam implemented a regional ATM link between Bank Islam, MEPS and Arta Jasa of Indonesia to provide wider ATM coverage in Indonesia. It also undertook the integration of ATM and CDM services with LTH.

There was also more cross-selling and bundling of products between business lines, while continuous efforts to recover bad financing and acquire better quality assets saw its net NPF ratio successfully drop to 7.8% from 11.4% previously. The Bank achived a significant milestone when it acted as advisor for a Mandatory General Offer, making Bank Islam the first commercial bank (Islamic or conventional) to do so.


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Takaful & Retakaful

Perniagaan Takaful dan Retakaful menyumbangkan 16.9% daripada jumlah perolehan BHB dengan Takaful Malaysia mencatatkan pertumbuhan prestasi memberangsangkan sebanyak 25.1%. Jumlah aset Takaful Malaysia meningkat pada kadar 16.2% kepada RM4.0 bilion berbanding RM3.5 bilion dalam TK2007, sementara ROE bersih menurun sedikit kepada 7.3% berbanding 7.6% sebelumnya. Pertumbuhan ini terhasil daripada peningkatan perolehan operasi sebanyak 6.1% kepada RM1.12 bilion berbanding dengan RM1.06 bilion yang dicatat pada tahun kewangan yang lepas.

Penambahan pendapatan pelaburan sebanyak 18.1%, sebahagian besarnya adalah daripada Takaful Malaysia, telah menyumbang kepada prestasi keuntungan keseluruhan yang lebih baik pada tahun ini. Peningkatan dalam sumbangan kasar adalah berikutan daripada penyusunan semula strategi terhadap kelas Takaful Keluarga yang tidak menguntungkan. Sementara itu, subsidiari Takaful Malaysia di Indonesia iaitu Syarikat Takaful Indonesia, telah mencatatkan peningkatan sumbangan kasar sebanyak dua kali ganda.

Lanjutan kepada perkara tersebut di atas, Keuntungan Sebelum Cukai (“KSC”) bagi tahun berakhir 30 Jun 2008 meningkat dengan ketara kepada RM33.8 juta berbanding RM21.6 juta pada tahun kewangan sebelumnya. Ianya dapat diraih walaupun terdapat peruntukan rosot nilai aset pegangan untuk jualan berjumlah RM20.3 juta yang telah di buat terhadap subsidiari yang akan dijual, yang telah diperuntukkan di dalam laporan kewangan Kumpulan Takaful Malaysia. Sekiranya peruntukan ini tidak diambilkira, KSC dijangka berjumlah RM54.1 juta, dua kali ganda pencapaian pada tahun kewangan sebelumnya.

Takaful & Retakaful

The Takaful and Retakaful business contributed 16.9% of BHB’s total revenue with Takaful Malaysia registering a 25.1% growth in performance. Takaful Malaysia’s total assets grew 16.2% to RM4.0 billion against RM3.5 billion in FY2007, while its net ROE slightly decreased to 7.3% against 7.6% previously. This growth emanated from a 6.1% increase in operating revenue of RM1.12 billion compared to RM1.06 billion achieved in the last financial year.

Increase in investment income of 18.1%, largely from Takaful Malaysia, has contributed to overall better profit performance this year. The improvement in gross contribution resulted from the realignment of strategy on non-profitable classes of Family Takaful, while on the other hand its Indonesian subsidiary, Syarikat Takaful Indonesia, experienced a two-fold increase in gross contribution.

Arising from the above, Profit Before Taxation (“PBT”) for the financial year ended 30 June 2008, significantly increased to RM33.8 million compared to RM21.6 million in the previous financial year. This was achieved in spite of a RM20.3 million provision for impairment of asset held for sale made in respect of the subsidiary to be disposed, which had been accounted for in the Takaful Malaysia group results. Excluding this provision, PBT would have been RM54.1 million, doubling the achievement of the previous financial year.


039


Prestasi menggalakkan ini dicapai dengan hasil pindahan yang lebih tinggi daripada perniagaan Takaful Am dan pendapatan lain juga telah membantu mengendurkan kesan perbelanjaan operasi yang tinggi sebanyak 45% (tidak termasuk peruntukan rosot nilai aset yang dinyatakan di atas). Walaubagaimanapun perbelanjaan pengurusan berkurangan sedikit pada kadar 2.2%.

Tahun ini menyaksikan Takaful Malaysia melaksanakan beberapa inisiatif untuk kekal sebagai peneraju industri. Ini meliputi kejayaan pelancaran Sistem Takaful PREMIA untuk kegunaan perniagaan Takaful Am dan dua produk baharu di bawah perniagaan Takaful Keluarga. Takaful Malaysia juga melaksanakan langkah memperkukuh dan mempertingkatkan cawangan model bancatakaful dengan Bank Islam, serta memperkemaskan model jualan dan pengedarannya.

The favourable performance was achieved as a result of higher transfer from General Takaful business and other income has also helped to cushion the impact of other higher operating expenses of 45% (excluding provision for impairment of asset mentioned earlier). The management expenses however, reduced slightly by 2.2%.

The year saw Takaful Malaysia undertaking several initiatives to stay at the forefront of the industry. This included the successful launch of the new PREMIA Takaful System for use by the General Takaful business and two new products under the Family Takaful business. Takaful Malaysia undertook branch consolidation and enhancement of the bancatakaful model with Bank Islam, as well as made refinements to its sales and distribution model.


040


Pembrokeran Saham

Pendapatan bahagian pembrokeran saham Kumpulan, BIMB Securities Sdn Bhd (“BIMBSEC”), dihasilkan terutamanya daripada pendapatan yuran pembrokeran daripada pasaran ekuiti. Bagi TK2008, Kumpulan BIMBSEC mencatatkan KSZC sebanyak RM3.2 juta, berkurangan 40.5% daripada RM5.5 juta sebelumnya. Di peringkat syarikat, KSZC BIMBSEC menurun 28.7% kepada RM3.6 juta pada TK2008 berbanding RM5.0 juta setahun sebelumnya.

Pajakan (Ijarah)

Syarikat Al-Ijarah Sdn Bhd, bahagian Pajakan aset Kumpulan, mencatat KSZC berjumlah RM19.5 juta bagi tahun ini, meningkat 8.9% daripada RM17.9 juta setahun sebelumnya.

Modal Teroka

Bagi tahun yang ditinjau, Kumpulan Modal Teroka mencatatkan hasil yang kecil sebanyak RM0.54 juta dan kerugian sebelum zakat dan cukai sebanyak RM0.1 juta.

Stockbroking

The Group’s stockbroking arm, BIMB Securities Sdn Bhd (“BIMBSEC”), derives its earnings mainly in the form of brokerage fee income from the equity market. The BIMBSEC Group recorded a PBZT of RM3.2 million for FY2008, a reduction of 40.5% from RM5.5 million previously. At company level, BIMBSEC’s PBZT decreased by 28.7% to RM3.6 million in FY2008 compared to RM5.0 million the year before.

Leasing (Ijarah)

Syarikat Al-Ijarah Sdn Bhd, the Leasing arm of the Group, turned in a PBZT of RM19.5 million for the year, an increase of 8.9% from RM17.9 million the year before.

Venture Capital

For the year under review, the Venture Capital Group recorded marginal revenue of RM0.5 million and a loss before zakat and tax (“LBZT”) of RM0.1 million.


041


Suasana dan Cabaran Masa Hadapan

Meninjau masa hadapan, Kumpulan menjangka keadaan ekonomi dunia yang tidak menentu dan pertumbuhan serantau yang lembap akan menampilkan suatu persekitaran yang lebih mencabar bagi kami pada TK2009. Di Malaysia, Kerajaan telah menyemak semula pertumbuhan ekonomi bagi tahun 2009 daripada unjuran asal iaitu 5.4% kepada 3.5%. BHB bersiap sedia untuk mengharungi tempoh mencabar ini walaupun kemajuan dalam kewangan Islam sehingga kini kekal positif di sebalik pergolakan sektor kewangan global.

Sungguhpun Kumpulan berusaha untuk memperkukuhkan kedudukannya bagi memanfaatkan pelbagai peluang dalam pasaran kewangan dan modal Islam, kami akan terus berhati-hati sambil menangani secara berkesan cabaran dalam persekitaran operasi kami.

Sebagai sebahagian daripada tindak balas strategik untuk mengekalkan tahap keuntungan, terutamanya apabila margin pendapatan bersih terus menyusut akibat persaingan, kami akan meluaskan skala dan skop perniagaan berasaskan yuran atau bisnes yang berteraskan urusniaga. Langkah yang diambil untuk memenuhi matlamat ini akan meliputi pembinaan infrastruktur yang diperlukan untuk membantu mempertingkatkan aliran hasil berasaskan yuran untuk jangkamasa lebih panjang serta tahap

Outlook and Challenges

Looking ahead, the Group anticipates that the volatile global economy and slowing regional growth will present us with a more challenging outlook in FY2009. On the Malaysian front, the Government has revised economic growth for 2009 to 3.5% from an earlier projection of 5.4%. While developments in Islamic finance have, to date, remained generally positive in spite of the turbulence in the global financial environment, BHB is gearing up to face more challenging times ahead.

Even as the Group aspires to be in a stronger position to take advantage of opportunities in the Islamic financial and capital markets, we will continue to be vigilant whilst effectively addressing the challenges of our operating environment.

As part of our strategic response to sustaining profitability, especially where net income margins continue to contract as a result of competition, we will expand the scale and scope of our fee-based or transactional-based businesses. This will include building an underlying infrastructure that will help enhance longer-term fee-based revenue flows and profitability.


042


keuntungan. Kami juga akan terus meneroka pelbagai peluang untuk menjalin permuafakatan bagi menjalankan usahaniaga di peringkat global. Bagi mencapai matlamat ini, kami perlu memastikan terlebih dahulu kedudukan kami di peringkat tempatan lebih kukuh dengan memastikan infrastruktur serta kepakaran yang diperlukan telah tersedia.

Bagi menyokong semua inisiatif kami dalam jangka masa panjang, kami akan terus memfokus untuk mempertingkatkan kualiti modal insan kami. Warga kerja sentiasa menjadi aset kami yang paling bernilai dan kami komited untuk memanfaatkan dan membangunkan setiap potensi dan agar mereka dapat melaksanakan tugas mereka dengan berkesan. Untuk membantu kakitangan kami mencapai kemajuan peribadi dan profesional, kami akan terus melaksanakan dasar, program dan insentif yang akan merangsang produktiviti dan kreativiti yang tinggi; menyediakan keseimbangan antara kehidupan dan pekerjaan; dan membantu mewujudkan persekitaran kerja yang kondusif.

BHB juga akan berusaha untuk mengoptimum kecekapan yang melibatkan kos melalui penggunaan teknologi, sistem dan proses yang lebih baik serta tahap produktiviti yang lebih tinggi. Sistem Pengurusan Risiko Perniagaan akan membantu kami mengenalpasti risiko semasa dan masa depan serta mengurus risiko sedemikian secara lebih cekap di seluruh Kumpulan. Dengan mengerah usaha secara jitu dan tidak berbelah bahagi untuk melaksanakan semua strategi ini secara berkesan dalam jangkamasa pendek, akan membolehkan BHB merealisasi wawasannya menjadi peneraju yang lebih kukuh dalam bidang kewangan Islam.

We will also continue to explore opportunities for collaboration to venture into the global arena. To achieve this, we must first ensure we are stronger locally by ensuring that the right infrastructure and expertise are in place.

To support all our initiatives over the longer-term, we will continue to focus on enhancing the quality of our human capital. Our employees remain our most prized asset and we are committed to continually harnessing and developing every individual’s potential and empowering them to do their jobs effectively. To help our people grow personally and professionally, we will continue to implement policies, programmes and incentives that encourage high productivity and creativity; provide a good work-life balance; and help create a conducive working environment.

BHB will also work to optimise cost efficiency through the use of technology; better systems and processes, as well as via higher productivity levels. The Enterprise Risk Management system will help us identify current and future risk as well as manage such risk more effectively across the Group. Only by making a concerted and unwavering effort to implement all these strategies effectively in the short term, can BHB realise its vision of becoming a stronger player in the Islamic financial landscape.


043


Dalam bidang Perbankan Islam yang beroperasi dalam suasana

perniagaan yang semakin bersaingan dan persekitaran ekonomi

yang semakin tidak menentu berikutan kelembapan ekonomi

global semasa, Bank Islam akan menumpukan perhatian

untuk meluaskan liputannya dengan memfokus usaha bagi

mempertingkatkan keteguhan daya saing dan meneruskan usaha

memperkenalkan lebih banyak produk pengguna dan pengurusan

harta yang lebih inovatif. Pertumbuhan perolehan akan diberi

keutamaan berbanding pengembangan aset Bank, sementara

aktiviti perbankan pelaburan korporat, perbendaharaan dan

pengurusan harta akan diberi pendekatan baru bagi melonjakkan

pendapatan berasaskan bukan dana. Sebahagian daripada strategi

untuk mempertingkatkan ketrampilan di pasaran perdagangan

yang semakin berkembang, Bank Islam merancang untuk

membuka dua puluh lima cawangan baru sepanjang tempoh tiga

tahun akan datang di serata Malaysia. Bank Islam juga akan

berusaha secara aktif untuk menggerakkan pertumbuhannya

melalui Penggabungan & Pengambilalihan bank-bank Islam lain

di Malaysia dan di luar negara.

Syarikat subsidiari Takaful kami berhasrat untuk merebut

semula kedudukannya sebagai peneraju di pasaran takaful

pada tahun kewangan akan datang dan akan berusaha untuk

mempertingkatkan portfolio produknya. Berikutan kelulusan

yang diberikan oleh Bank Negara Malaysia untuk penubuhan

Unit Perniagaan Matawang Antarabangsa (“ICBU”), Takaful

Malaysia akan meneroka peluang untuk memperkenalkan

pelbagai produk berkaitan ICBU. Takaful Malaysia sedang dalam

usaha mempertingkatkan keupayaan pengedarannya dengan

menambah saluran pengedaran runcitnya. Ini akan meliputi

usaha memanfaatkan sinergi dalam BHB dengan membuka lebih

banyak pusat di cawangan Bank Islam dan LTH. Selain itu,

Takaful Malaysia juga komited untuk mempertingkatkan kualiti

perkhidmatannya supaya mampu meluaskan pasarannya. Takaful

Malaysia juga sedang berusaha memperbaharui jenamanya untuk

menjadikan jenama Takaful Malaysia yang lebih bertenaga, fokus

terhadap khidmat pelanggan, cergas, mesra serta fleksibel.

On the Islamic Banking front, as business becomes more competitive and the economic environment becomes ever more uncertain under the current global economic slowdown, Bank Islam will concentrate on extending its reach by focusing on its competitive strengths and continuing with the introduction of more innovative consumer and wealth management products. Revenue growth will take precedence over asset expansion at the Bank, while there will be a renewed focus on corporate investment banking, treasury and wealth management activities to boost non-fund based income. As part of its strategy to enhance its presence in thriving commercial markets, Bank Islam is set to open twenty five new branches over the next three years throughout Malaysia. Bank Islam will also actively pursue its strategy of growing via M&As with other Islamic banks in Malaysia and abroad.

Our Takaful subsidiary intends to recapture the leadership position in the Takaful market in the next financial year and will be looking to revamp its product portfolio. Pursuant to Bank Negara Malaysia’s approval on the establishment of its International Currency Business Unit (“ICBU”), Takaful Malaysia will be exploring opportunities to introduce relevant products in relation to the ICBU. Takaful Malaysia is also in the midst of enhancing its distribution capability by increasing its retail distribution channels. This will include leveraging on the synergies within BHB to open more centres at the branches of Bank Islam and LTH. Apart from this, Takaful Malaysia is committed to enhancing the quality of its service delivery so as to expand its market share. Takaful Malaysia is also exploring a rebranding exercise to make the Takaful Malaysia brand a more energetic, customer-centric, vibrant, friendly and flexible brand.


044


Penghargaan

Bagi pihak pengurusan, saya ingin merakamkan setinggi-tinggi penghargaan kepada Kerajaan Malaysia dan badan kawalselia, khususnya Bank Negara Malaysia, Suruhanjaya Sekuriti dan Bursa Malaysia Securities Berhad, atas sokongan padu mereka terhadap Kumpulan. Penghargaan tulus ikhlas juga ditujukan kepada para pemegang saham BHB yang dihargai, para pelanggan dan rakan perniagaan atas keyakinan tidak berbelah bahagi mereka terhadap BHB.

Saya juga ingin mengucapkan penghargaan tidak terhingga kepada seluruh warga kerja kami atas usaha gigih, dedikasi dan kesetiaan mereka selama ini untuk terus mendorong Kumpulan ke hadapan. Tidak ketinggalan, saya ingin menyampaikan ucapan terima kasih yang tulus ikhlas kepada ahli Lembaga Pengarah dan ahli Majlis Penasihat Syariah atas kebijaksanaan, bimbingan dan panduan tidak ternilai yang mereka berikan. Saya percaya dengan sokongan daripada para pemegang kepentingan BHB dan sinergi baharu yang wujud, keyakinan dan keutuhan yang sedang dialami oleh seluruh Kumpulan, akan membolehkan kita berada pada landasan yang tepat untuk melaksanakan strategi dan mengharungi cabaran mencapai pertumbuhan di pasaran masa hadapan.

Acknowledgements

On behalf of management, I wish to record my deepest appreciation and gratitude to the Government of Malaysia and regulators, in particular Bank Negara Malaysia, the Securities Commission and Bursa Malaysia Securities Berhad, for their staunch support rendered to the Group. My sincere appreciation also goes to BHB’s valued shareholders, customers and business associates for their unwavering faith in BHB.

I also wish to convey my deepest gratitude to all our employees for their continuous hard work, dedication and loyalty in driving the Group forward. On the same note, I would also like to record my sincere thanks to the Board of Directors and the Shariah Supervisory Council members for their wisdom, guidance and invaluable insights. I believe that with the support of all BHB’s stakeholders and the renewed sense of synergy, confidence and vitality that we are currently experiencing throughout the Group, we will be well positioned to implement our strategies and meet the challenges of the marketplace going forward.

JOHAN ABDULLAHPengarah Urusan Kumpulan/Ketua Pegawai Eksekutif

Group Managing Director/Chief Executive Officer


045


KesepaduanUnity

g h

046


Paparan Kewangan 5 Tahun Kumpulan 5-Year Group Financial Highlightsg h

30 Jun | 30 June 2004 2005 2006 2007 2008 RM’000 RM’000 RM’000 RM’000 RM’000 Restated

Modal Saham 562,965 562,965 562,965 891,390 891,390Share Capital

Dana Pemegang Saham 1,581,922 1,086,537 (145,890) 921,118 1,005,284Shareholders’ Funds

Deposit daripada Pelanggan 11,809,842 13,238,227 14,148,593 17,388,633 20,535,907Deposits from Customers

Dana Takaful 1,941,564 2,172,424 2,445,551 2,635,212 3,197,799Takaful Funds

Pembiayaan Pelanggan 8,778,174 9,096,791 8,601,387 8,403,285 9,055,028Financing of Customers

Pelaburan 4,872,749 4,742,913 2,622,481 4,002,831 3,734,094Investments

Jumlah Aset 16,891,527 18,507,972 17,742,000 22,551,201 27,582,097Total Assets

Perolehan 866,639 1,087,432 1,115,953 1,858,669 1,426,814Revenue

Keuntungan/(Kerugian)Sebelum Zakat dan Cukai 118,476 (400,489) (1,177,939) 909,105 379,615Profit/(Loss) before Zakat and Taxation

Keuntungan/(Kerugian)Bersih 85,748 (456,851) (1,230,008) 787,762 236,198Net Profit/(Loss)

Dividen tolak Cukai 34,453 10,133 – 13,193 9,564*Dividend less Taxation

Nisbah Pembiayaan kepada Deposit (%) 74.32 68.72 60.79 48.33 44.09Financing to Deposit Ratio (%)

Pembiayaan Tak Berbayar Bersih (%) 10.30 12.53 9.35 11.44 7.82Net Non-Performing Financing (%)

Perolehan/(Kerugian) sesaham (sen) 15.23 (81.15) (218.49) 97.86 26.50Earnings/(Loss) per share (sen)

Aset Ketara Bersih sesaham (RM) 2.81 1.93 (0.26) 1.03 1.13Net Tangible Assets per share (RM)

Dividen Kasar sesaham (%) 8.50 2.50 – 2.00 1.45Gross Dividend per share (%)

Dividen Bersih sesaham (%) 6.12 1.80 – 1.48 1.07Net Dividend per share (%)

* Cadangan dividen 1.45% ditolak cukai sebanyak 26% tertakluk kepada kelulusan pemegang saham pada Mesyuarat Agung Tahunan akan datang. Proposed dividend of 1.45% less 26% tax subject to shareholders’ approval at the forthcoming Annual General Meeting.

047


RM

Bili

on |

RM

Bill

ion

Dana Pemegang SahamShareholders’ Funds

2.0

1.8

1.6

1.4

1.2

1.0

1.58

1.09

(0.1

5) 1.00

0.92

#

04 05 06 07 08

Deposit daripada PelanganDeposit from Customers

22.0

18.0

14.0

10.0

6.0

2.0

04 05 06 07 08

Pembiayaan PelanganFinancing of customers

12.0

10.0

8.0

6.0

4.0

2.0

04 05 06 07 08

Keuntungan/(Kerugian)Sebelum Zakat dan CukaiProfit/(Loss) beforeZakat and Taxation

1200

1000

800

600

400

200

04 05 06 07 08

Dana TakafulTakaful Funds

3.5

3.0

2.5

2.0

1.5

1.0

04 05 06 07 08

Jumlah AsetTotal Assets

30.0

26.0

22.0

18.0

14.0

10.0

6.0

2.0

04 05 06 07 08

Pendapatan/(Kerugian)sesaham (sen)Earnings/(Loss)per share (sen)

04 05 06 07 08

Aset Ketara Bersih sesaham (RM)Net Tangible Assets per share (RM)

4.0

3.0

2.0

1.0

04 05 06 07 08

RM

Bili

on |

RM

Bill

ion

11.8

0

13.2

4

14.1

5

20.5

4

17.3

9 #

RM

Bili

on |

RM

Bill

ion

8.78 9.

10

8.60 9.

06

8.40

#

RM

Bili

on |

RM

Bill

ion 16

.90 18

.51

17.7

4

27.5

8

22.5

5 #

RM

Bili

on |

RM

Bill

ion

1.94

2.17

2.45

3.20

2.64

#

RM

Mill

ion

| R

M M

illio

n

118.

48

(400

.49)

(1,1

77.9

4)

379.

62

909.

11#

Sen|

Sen

15.2

3

(81.

15)

(218

.49)

26.5

0

97.8

6 #

RM

Bili

on |

RM

Bill

ion

2.81

1.93

(0.2

6) 1.13

1.03

#

100.0

80.0

60.0

40.0

20.0

# Dinyatakan semula / Restated

Paparan Kewangan 5 Tahun Kumpulan • 5-Year Group Financial Highlightsg h

048


Tanggungjawab Sosial KorporatCorporate Social Responsibility g h

Syarikat-syarikat kumpulan BHB (“BHB” atau “Kumpulan”) komited untuk melaksanakan amalan Tanggungjawab Sosial Korporat (“CSR”) yang baik. Kami akan melaksanakan tanggungjawab ini sambil memenuhi tuntutan prinsip Islam serta mendokong misi Kumpulan untuk menawarkan produk kewangan berasaskan Syariah sebagai alternatif kepada produk kewangan konvensional kepada semua pengguna pelbagai anutan agama. Sebagai sebuah syarikat induk pelaburan beroperasi mengikut landasan Syariah, kami kekal komited untuk menunaikan tanggungjawab kami bagi memperkasa serta menbangunkan masyarakat. Kami amat yakin terhadap keperluan menyumbang kembali kepada masyarakat di mana kami beroperasi dengan membantu usaha-usaha pendidikan dan kebajikan.

Bank Islam

Pada tahun kewangan ulasan, Bank Islam menyumbang kepada golongan yang memerlukan melalui tabung Zakat. Bank menyalur sumbangan bagi pelbagai tujuan yang meliputi “Program Perumahan Rakyat Termiskin” di Kelantan dan Terengganu dan pembelian mesin haemodialisis untuk para pesakit buah pinggang. Zakat juga disalurkan kepada kumpulan yang kurang bernasib baik termasuk ibu tunggal, anak-anak yatim, mualaf dan orang kurang upaya. Zakat turut digunakan untuk menyokong tabung pendidikan di universiti tempatan serta membantu pelbagai Organisasi Bukan Kerajaan (”NGO”) membina serta menaiktaraf masjid dan sekolah agama di seluruh negara.

The BHB group of companies (“BHB” or “the Group”) is committed to undertaking good Corporate Social Responsibility (“CSR”) practices. We will do this while honouring Islamic principles and upholding the Group’s mission of offering consumers of all faiths a viable Shariah-based alternative to conventional financial products. As an investment holding company operating along Shariah principles, we remain committed to fulfilling our responsibility of enriching and developing communities. We strongly believe in giving back to the communities in which we operate by contributing to educational initiatives and charitable causes.

Bank Islam

During the financial year under review, Bank Islam contributed to the needy through its Zakat (tithes) fund. The Bank made several contributions to various causes which included the “Program Perumahan Termiskin” in Kelantan and Terengganu and the purchase of haemodialysis machines for kidney patients. Zakat was also channelled to underprivileged groups including single mothers, orphanages, muallaf (new converts to Islam) and the disabled. Zakat was also utilised to support education funds at local universities and to help various NGOs build and upgrade mosques and religious schools throughout the country.

049


Sebagai sebahagian daripada sumbangannya kepada pembangunan sosio ekonomi, Bank Islam komited untuk mempertingkat taraf pendidikan di kalangan belia Malaysia. Sehubungan itu, Bank Islam menaja usaha-usaha pendidikan di Universiti Teknologi MARA (“UiTM”), terutamanya Hari Matematik UiTM, Hari Kualiti dan Anugerah Ciptaan, Inovasi & Rekabentuk UiTM. Dalam bidang pembangunan Syariah pula, Bank Islam menaja Anugerah Pelajar Terbaik di Universiti Islam Antarabangsa Malaysia dan program “Graduan Pengajian Islam”, dan pada masa yang sama, membangunkan kandungan program Kewangan Islam Pusat Pendidikan Antarabangsa.

Sebagai sebuah organisasi yang menyokong inisiatif Bank Negara Malaysia (“BNM”) untuk memupuk tabiat perancangan kewangan yang baik di kalangan pelajar sekolah, Bank Islam meneruskan penyertaannya dalam inisiatif “duitsaku.com” di bawah program “Program Sekolah Angkat” anjuran BNM. Program sekolah angkat tersebut sehingga kini telah mengambil 318 sekolah di seluruh negara. Ia bertujuan menyediakan pemahaman yang kukuh tentang kepentingan perancangan dan pengurusan kewangan kepada para pelajar.

Sebagai sokongan terhadap program PINTAR Syarikat-syarikat Berkaitan Kerajaan (“GLC”) di bawah Khazanah Nasional Berhad, Bank Islam telah menyuarakan komitmennya untuk mengambil 13 sekolah angkat di seluruh negara sepanjang tempoh tiga tahun. PINTAR adalah program pendidikan yang menggalakkan semua GLC menjadikan sekolah luar bandar sebagai sekolah angkat dengan tujuan menggalakkan serta meningkatkan penggunaan Bahasa Inggeris di kalangan pelajar.

As part of its contribution to the nation’s socio-economic development, Bank Islam is committed to elevating the standard of education among Malaysian youth. To this end, the Bank Islam sponsored various educational initiatives at Universiti Teknologi MARA (“UiTM”), notably UiTM’s Maths Day, its Quality Day and the UiTM Invention, Innovation & Design Award. In the field of Syariah development, Bank Islam sponsored the Best Student Award at the International Islamic University of Malaysia and the “Graduan Pengajian Islam” programme, while developing content for the International Centre for Education in Islamic Finance’s (“INCEIF”)programme syllabus.

As an organisation supporting Bank Negara Malaysia’s (“BNM”) initiative to inculcate good financial planning habits among school children, Bank Islam continues to participate in the “duitsaku.com” initiative under BNM’s “Program Sekolah Angkat”. This school adoption programme which has to date adopted 318 schools nationwide, aims to provide school children a solid grasp of the importance of planning and managing their personal finances.

In support of Khazanah Nasional Berhad’s Government Linked Companies (“GLC”) PINTAR programme, Bank Islam has committed to adopting 13 schools nationwide over a three-year period. PINTAR is an education programme that encourages all GLCs to adopt rural schools with the aim of promoting and increasing the use of English language among students.

Tanggungjawab Sosial Korporat • Corporate Social Responsibilityg h

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Bank Islam, dengan kerjasama Lembaga Tabung Haji (“LTH”), turut terlibat dalam sebuah program tahunan yang dikenali sebagai “Sahabat Korporat Tabung Haji”. Di bawah program ini, Bank Islam menyumbang bantuan kewangan kepada LTH bagi mempermudah program mengerjakan ibadah Haji semasa musim Haji.

Takaful Malaysia

Takaful Malaysia juga memainkan peranan penting dalam melaksanakan pelbagai program CSR sepanjang tahun ulasan. Dalam menyahut seruan Kerajaan untuk meningkatkan taraf pendidikan di kawasan luar bandar, Takaful Malaysia telah mengambil Sekolah Kebangsaan Permatang Binjai di Pulau Pinang sebagai sekolah angkat di bawah Program PINTAR. Penyediaan bantuan oleh Takaful Malaysia dalam bentuk kewangan dan barangan melibatkan penajaan buku latihan untuk pelajar Tahun 4, 5, dan 6 serta program motivasi untuk para pelajar ini, terutamanya mereka yang menduduki peperiksaan UPSR.

Di bawah usaha masyarakat penyayang Takaful Malaysia, kami menyediakan bantuan kepada mangsa banjir di Johor dan Pahang. Keluarga penduduk kampung yang terjejas akibat banjir di Johor menerima sumbangan sebanyak RM500 setiap keluarga daripada tabung Zakat syarikat. Sebagai bantuan kepada mangsa banjir di Pahang, Takaful Malaysia menderma 600 kotak berisi barangan keperluan asas yang meliputi gula, beras dan makanan dalam tin.

Bank Islam, in collaboration with Lembaga Tabung Haji (“LTH”), is also involved in an annual programme called “Sahabat Korporat Tabung Haji”. This collaboration sees, Bank Islam contributing financial aid to LTH to facilitate pilgrimage programmes during the Hajj season.

Takaful Malaysia

Takaful Malaysia was also instrumental in carrying out CSR programmes throughout the year under review. In heeding the Government’s call to raise the level of education in rural areas, Takaful Malaysia adopted Sekolah Kebangsaan Permatang Binjai in Penang under the PINTAR Programme. Takaful Malaysia’s provision of financial assistance and in kind involved the sponsorship of exercise books for Year 4, 5, and 6 students as well as a motivational programme for these students, particularly those sitting for their UPSR examinations.

Takaful Malaysia’s community care efforts also saw it providing assistance to flood victims in Johor and Pahang. Families of villages affected by floods in Johor received RM500 each from the company’s Zakat fund. In aid of flood victims in Pahang, Takaful Malaysia donated 600 boxes of basic necessities that included sugar, rice and canned food.


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Pada bulan Jun 2008, Takaful Malaysia menyumbang sebanyak RM19,000 kepada 38 penerima di bawah naungan Mini Baitulmal, Hulu Langat di Selangor dalam satu majlis pembayaran zakat. Acara tersebut disaksikan oleh YB Dr. Che Rosli Che Mat, Ahli Parlimen Hulu Langat, sementara Puan Noraini Yusof, Penolong Pengurus Besar Bahagian Operasi Cawangan / Perbendaharaan menyampaikan sumbangan bagi pihak Takaful Malaysia.

Masa Depan

BHB komited untuk memastikan supaya amalan CSR terbaik kekal menjadi sebahagian daripada falsafah dan budaya korporat kami. Kami akan terus berusaha mencari kaedah baru yang berkesan untuk melaksanakan pelbagai aktiviti kebajikan dan pendidikan berkaitan CSR sebagai usaha untuk menyumbang dalam pembangunan ummah. Matlamat jangka panjang kami akan tercapai apabila kami berjaya menjalin perhubungan teguh dengan para pemegang berkepentingan kami yang terdiri daripada para pemegang saham, kakitangan, rakan niaga dan badan kawalselia. Matlamat kami adalah untuk mewujudkan kesetaraan dalam masyarakat di mana kami beroperasi dengan mempertingkatkan aspek struktur, pendidikan dan kerohanian ahli masyarakat tersebut. Dengan memastikan masyarakat berkembang untuk merealisasi potensi penuh mereka, kami juga akan berkembang bersama-sama mereka.

In June 2008, Takaful Malaysia contributed a total of RM19,000 to 38 recipients under the patronage of Mini Baitulmal, Hulu Langat in Selangor during a zakat payment ceremony. The event was witnessed by YB Dr. Che Rosli Che Mat, the Member of Parliament for Hulu Langat, while Puan Noraini Yusof, the Assistant General Manager of Branch Operations/Treasury Division, gave away the contributions on behalf of Takaful Malaysia.

The Future

BHB is committed to ensuring that good CSR practices remain an integral part of our corporate philosophy and culture. We will continue to look for new and effective ways of implementing welfare and education-related CSR activities in our efforts to contribute in the development of the ummah. Our long-term goals will bear fruit when we successfully forge strong relationships with our key stakeholders that include our shareholders, employees, business partners and the regulators. Our aim is to make a tangible difference in the communities we operate in through improving the structural, educational and spiritual aspects of these communities. By ensuring that these communities grow to realise their full potential, we too will grow with them.


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Sorotan 2007/20082007/2008 Highlightsg h

MOU untuk Premia System Bulan September 2007 merupakan tarikh yang bermakna kepada Takaful Malaysia berikutan perjanjian yang telah dimeterai dengan sebuah syarikat berstatus MSC, 3i Infotech Sdn Bhd, bagi pelaksanaan Sistem Pengurusan Insurans Bersepadu yang dikenali sebagai PREMIA™. Dalam usahanya untuk menyediakan integrasi di seluruh bahagian utama aktiviti Takaful, PREMIA™ dipilih untuk menyempurnakan operasi perniagaan, berikutan satu proses penilaian menyeluruh yang melibatkan syarikat-syarikat terkemuka industri Teknologi Maklumat (IT) di dalam dan luar negara. Pelaksanaan system baru ini merupakan salah satu daripada pelbagai langkah yang dilaksanakan oleh Takaful Malaysia untuk mempertingkatkan kecekapan operasi perniagaannya dan menyediakan perkhidmatan yang lebih berkesan kepada para pelanggannya.

Takaful Malaysia Invites Orphans for Buka Puasa Event

In conjunction with the holy month of Ramadhan 1428H, Takaful Malaysia organized a ‘buka puasa’ event inviting around 100 orphans from Kompleks Anak Yatim Darul Kifayah on 1 October 2007. In the spirit of giving and sharing, the management of Takaful Malaysia handed over ‘duit raya’ to add more cheer to the underprivileged especially during the festive season.

Sep 2007 • Sep 2007

MOU Premia System September 2007 marked a significant development for Takaful Malaysia as it signed an agreement with an MSC status company, 3i Infotech Sdn Bhd, to implement a new award-winning Integrated Insurance Management System known as PREMIA™. In its pursuit to provide seamless integration across all major heads of Takaful activities, PREMIA™ was chosen to complete the business operations, following a thorough evaluation process involving well known local and international

players from the Information Technology (IT) industry. The implementation of the new system is one of many steps taken by Takaful Malaysia to enhance the efficacy of its business operations and to better serve its customers.

Takaful Malaysia Mengundang Anak-Anak Yatim ke Majlis Buka Puasa

Bersempena dengan Ramadhan Al-Mubarak 1428H, Takaful Malaysia menganjurkan majlis berbuka puasa dengan menjemput lebih kurang 100 orang anak yatim dari Kompleks Anak Yatim Darul Kifayah pada 1 Oktober 2007. Dalam menghayati semangat memberi dan berkongsi, Takaful Malaysia menghulur duit raya untuk menambahkan keceriaan kepada golongan kurang bernasib baik khususnya di musim perayaan ini.

Okt 2007 • Oct 2007

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Nov 2007 • Nov 2007g h

Bank Islam Membiayai RM30 juta Ladang Kelapa Sawit di Kelantan

Bank Islam mendatangani Memorandum Persefahaman (“MOU”) dengan Syarikat Ladang Sungai Terah Sdn Bhd (“SLST”), sebuah syarikat milik kerajaan Kelantan, untuk memeterai Perjanjian Jualan Aset (“PJA”) dan Perjanjian Pembelian Aset (“PPA”) dengan kemudahan pembiayaan Bai Bithaman Ajil berjumlah RM30 juta. Bank Islam membiayai sebahagian daripada pembangunan fasa 1 SLST projek Perladangan Kelapa Sawit Secara Ladang Rakyat untuk Negeri Kelantan.

Bank Islam Funds RM30 million Oil Palm Venture in Kelantan

Bank Islam signed a Memorandum of Understanding (“MOU”) with Syarikat Ladang Sungai Terah Sdn Bhd (“SLST”), a Kelantan government-linked company, for the execution of Asset Sale Agreement (“ASA”) and Asset Purchase Agreement (“APA”) for Bai Bithaman Ajil financing facility of RM30 million. Bank Islam partly finances for SLST the phase 1 development of the Perladangan Kelapa Sawit Secara Ladang Rakyat project for the State of Kelantan.

Mesyuarat Agung Tahunan 2007 Takaful Malaysia Takaful Malaysia mengadakan Mesyuarat Agung Tahunan pada 5 Disember 2007 untuk mengumumkan keputusan kewangannya kepada para pemegang saham. Semasa mesyuarat berkenaan, para pemegang saham berpeluang untuk mengemukakan isu dan masalah mereka kepada syarikat yang dijawab oleh Pengerusi, Pengarah Urusan Kumpulan dan Ahli Lembaga Pengarah yang lain.

Takaful Malaysia Annual General Meeting 2007

Takaful Malaysia held its Annual General Meeting on 5 December 2007 to announce its financial results to the shareholders. During the meeting, shareholders had the opportunity to raise issues and concerns that they have towards the company to be answered by the Chairman, Group Managing Director and other Members of the Board.

Dis 2007 • Dec 2007g h

Sorotan 2007/2008 • 2007/2008 Highlights

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Jan 2008 • Jan 2008g h

Pelancaran Skim Pinjaman Perumahan Khas

Bank Islam, Bank Simpanan Nasional (“BSN”), Syarikat Jaminan Kredit Perumahan (“SJKP”) telah melancarkan skim pinjaman perumahan yang sesuai untuk kumpulan yang tidak mempunyai pendapatan tetap atau lebih dikenali sebagai Skim Pembiayaan Perumahan Rakyat (“PPR”), yang telah dirasmikan oleh YB Tan Sri Nor Mohamed Yakcop, Menteri Kewangan II. Melalui skim ini, kumpulan tidak berpendapatan tetap di negara ini kini layak untuk memohon pinjaman perumahan yang akan membolehkan mereka memiliki rumah kos rendah atau kos sederhana. Bank Simpanan Nasional dan Bank Islam telah dilantik sebagai pembiaya oleh kerajaan untuk menyediakan skim ini.

Launch of Special Housing Loan Scheme

Bank Islam, Bank Simpanan Nasional (“BSN”), Syarikat Jaminan Kredit Perumahan (“SJKP”) launched a housing loan scheme suited for the non-fixed income groups or better known as the Skim Pembiayaan Perumahan Rakyat (“PPR”), which was officiated by YB Tan Sri Nor Mohamed Yakcop, Finance Minister II. Through the scheme, non-fixed income groups in the country are now eligible to apply for a housing loan that will enable them to own low or medium cost houses. Bank Simpanan Nasional and Bank Islam have been appointed as the financiers by the government to provide the scheme.

Takaful Malaysia membantu mangsa banjir di Johor dan Pahang

Takaful Malaysia sentiasa prihatin terhadap masyarakat dengan menghulurkan bantuan kepada mangsa banjir di Johor dan Pahang pada bulan Disember 2007. Keluarga-keluarga di kampung yang dilanda banjir di Johor telah menerima bantuan sebanyak RM500 setiap keluarga daripada tabung zakat syarikat. Bagi mangsa banjir di Pahang pula, Takaful Malaysia mendermakan 6000 kotak berisi keperluan asas seperti gula, beras, makanan di dalam tin dan sebagainya.

Takaful Malaysia in aid of flood victims in Johor and Pahang Takaful Malaysia cares for the society as it provided assistance to victims of flood in Johor and Pahang in December 2007. Families of the affected villages in Johor received RM500 each from the company’s zakat funds. In assisting the victims in Pahang, Takaful Malaysia donated 600 boxes full of basic necessities that include sugar, rice, canned food and others.

Dis 2007 • Dec 2007g h

g hSorotan 2007/2008 • 2007/2008 Highlights

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Takaful Malaysia Menyertai Kempen Kewangan Islam Takaful Malaysia menyertai ‘Kempen Kewangan Islam’ yang dianjurkan oleh Jabatan Kemajuan Islam Malaysia (“JAKIM”) dan Bank Negara Malaysia dari 25-26 Januari 2008 di Masjid Negara, Kuala Lumpur.

Takaful Malaysia Participates in Kempen Kewangan Islam

Takaful Malaysia participated in ‘Kempen Kewangan Islam’ organized by Jabatan Kemajuan Islam Malaysia (“JAKIM”) and Bank Negara Malaysia from 25-26 January 2008 at the National Mosque, Kuala Lumpur.

Jan 2008 • Jan 2008g h

Takaful Malaysia Menganjurkan Pertandingan Boling Persahabatan dengan BPP, Putrajaya

Takaful Malaysia menganjurkan pertandingan boling persahabatan untuk Bahagian Pinjaman Perumahan (“BPP”), sebuah jabatan di bawah Perbendaharaan, Kementerian Kewangan Malaysia, pada bulan Februari 2008 di Putrajaya. Dalam pertandingan tersebut, wakil Takaful Malaysia, yang diketuai oleh Pn Noraini Yusof, Penolong Pengurus Besar Operasi Cawangan, telah muncul sebagai juara wanita keseluruhan.

Takaful Malaysia Organised a Friendly Bowling Tournament with BPP, Putrajaya

Takaful Malaysia organized a friendly bowling tournament for the Bahagian Pinjaman Perumahan (“BPP”), a department under Treasury, Ministry of Finance, Malaysia in February 2008 in Putrajaya. Representatives from Takaful Malaysia, led by Pn Noraini Yusof, the Assistant General Manager of Branch Operations emerged the overall female champion in the tournament.

Feb 2008 • Feb 2008g h


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Bank Islam Mencatatkan Keuntungan Setengah Tahun Sebelum Zakat dan Cukai sebanyak RM182.3 juta

Dengan mencatatkan keuntungan sebelum zakat dan cukai yang teguh berjumlah RM182.3 juta untuk tempoh enam bulan berakhir 30 Disember 2007, Bank Islam telah menampilkan petunjuk pertumbuhan agresif dalam bahagian pasaran dengan mencapai KSZC 10% lebih tinggi berbanding RM165.8 juta yang dicapai pada tempoh yang sama tahun lepas. Di peringkat Kumpulan, KSZC meningkat 17.4% kepada RM194.3 juta. Keputusan memberangsangkan ini berpunca daripada pelaksanaan pelan pemulihan untuk kembali mencatatkan keuntungan.

Bank Islam Recorded RM182.3 million in Half Year Profit Before Zakat and Tax

With another strong earnings of RM182.3 million profit before zakat and tax (“PBZT”) for the six months ended 30 December 2007, Bank Islam signaled aggressive growth in market share, posting 10% higher PBZT than the RM165.8 million achieved in the same period last year. At the Group level, PBZT rose 17.4% to RM194.3 million. The commendable results were attributed by the implementation of the turnaround plan to return to profitability.

Mac 2008 • Mar 2008g hMac 2008 • Mar 2008

Pelancaran Pusat Perbankan Elektronik di Masjid Jamiul Badawi, Kepala Batas, Pulau Pinang

Bank Islam, dengan kerjasama KIOS Maju Masjid berjaya melancarkan Pusat Perbankan Elektronik (“EBC”) di Masjid Jamiul Badawi, Kepala Batas, Pulau Pinang. EBC, yang terletak bertentangan dengan kediaman Perdana Menteri, telah dilancarkan oleh Perdana Menteri sendiri dalam sebuah majlis yang dihadiri oleh penduduk tempatan dan VIP lain termasuk Y.Bhg. Datin Seri Jeanne Abdullah, Dato’ Zukri Samat, En. Shabudin Bin Yahya, Y.D.P. Majlis Agama Islam Negeri Pulau Pinang (“MAIPP”) dan Y.Bhg. Dato’ Hj. Subirin Hj. Sahan, Ketua Pegawai Eksekutif, KIOS Maju Masjid.

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Launch of Electronic Banking Center at Masjid Jamiul Badawi, Kepala Batas, Pulau Pinang

Bank Islam, in a joint effort with KIOS Maju Masjid successfully launched its Electronic Banking Centre (“EBC”) at Masjid Jamiul Badawi, Kepala Batas, Pulau Pinang. The EBC, located opposite of the Prime Minister’s home, was launched by the Prime Minister himself in an auspicious event attended by the local people and other VIPs including Y.Bhg. Datin Seri Jeanne Abdullah, Dato’ Zukri Samat, En. Shabudin Bin Yahya, Y.D.P. Majlis Agama Islam Negeri Pulau Pinang (“MAIPP”) and Y.Bhg. Dato’ Hj. Subirin Hj. Sahan, Ketua Pegawai Eksekutif, KIOS Maju Masjid.


057


Takaful Malaysia Menganjurkan Seminar Kesedaran bagi Jabatan Perbendaharaan, Kementerian Kewangan

Takaful Malaysia mengnjurkan seminar kesedaran pada 25 Mac 2008 untuk kakitangan kerajaan yang memfokus terhadap prosedur dan garis panduan baharu berhubung pinjaman/ pembiayaan perumahan kakitangan kerajaan di Intekma Resort and Convention Centre, Shah Alam. Antara peserta yang hadir termasuk kakitangan utama jabatan kerajaan, pembeli prospektif, wakil guaman serta pemaju serta agen hartanah.

Takaful Malaysia Organised an Awareness Seminar for Treasury Department, Ministry of Finance

Takaful Malaysia organized an awareness seminar on 25 March 2008 targeting at government employees to focus on the new procedures and guidelines for government home loans/financing at Intekma Resort and Convention Centre, Shah Alam. The attendees include key personnel from various government departments, prospective buyers, legal representatives as well as property developers and real estate agents.

Mac 2008 • Mar 2008g h Mac 2008 • Mar 2008g h

Takaful Malaysia Menyambut Maulidur Rasul 1429H

Takaful Malaysia merayakan Maulidur Rasul di ibu pejabatnya pada 25 Mac 2008 dengan menunaikan solat Asar Berjemaah dan diikuti dengan ceramah bertajuk “Muhammad SAW Ikutan Sepanjang Zaman” oleh Ustaz Abdul Halim bin Zakaria.

Takaful Malaysia Celebrates Maulidur Rasul 1429H

Takaful Malaysia celebrates Maulidur Rasul (Prophet Muhammad’s birthday) at its head office on 25 March 2008 with Asar Jemaah prayers and followed by a talk by Ustaz Abdul Halim bin Zakaria on “Muhammad SAW Ikutan Sepanjang Zaman”.


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Takaful Malaysia Menyertai Minggu Saham Amanah Malaysia 2008

Takaful Malaysia mengambil bahagian dalam Minggu Saham Amanah Malaysia 2008 dari 19-28 April 2008 di Pusat Dagangan Antarabangsa Melaka, Ayer Keroh, Melaka. Pameran yang dianjurkan oleh Permodalan Nasional Berhad (“PNB”) ini turut menyaksikan pelancaran produk berkaitan pelaburan pertama Takaful Malaysia, myAl-Afdhal. Perdana Menteri, Dato’ Seri Abdullah Ahmad Badawi telah merasmikan pelancaran produk baru tersebut.

Takaful Malaysia Participates in Minggu Saham Amanah Malaysia 2008

Takaful Malaysia took part in the Minggu Saham Amanah Malaysia 2008 from 19-28 April 2008 in Melaka International Trade Centre, Ayer Keroh, Melaka. The exhibition, organized by Permodalan Nasional Berhad (“PNB”) also marked the launch of Takaful Malaysia first investment linked product, myAl-Afdhal. The Prime Minister, Dato’ Seri Abdullah Ahmad Badawi graced the launch of the new product.

April 2008 • April 2008g hApril 2008 • April 2008g h

Penyatuan ATM Bank Islam – Tabung Haji

Penyimpan Tabung Haji kini boleh menggunakan kad ATM Bank Islam mereka untuk menjalankan beberapa urus niaga termasuk urusan berkaitan wang tunai, deposit tunai dan pertanyaan baki di 332 mesin juruwang automatik (“ATM”) Bank Islam dan 113 mesin deposit tunai (“CDM”) di seluruh negara. Untuk menikmati kemudahan ini, penyimpan Tabung Haji yang memiliki kad ATM Bank Islam dinasihati supaya pergi ke cawangan Bank Islam yang terdekat dan mendaftar serta mengaktifkan kad ATM Bank Islam mereka dengan akaun Tabung Haji. Untuk mendaftar, mereka hanya perlu membawa bersama kad pengenalan dan buku Simpanan Tabung Haji mereka.

Bank Islam – Tabung Haji ATM Integration

Tabung Haji depositors can now make use of their Bank Islam ATM cards to execute several banking transactions to include cash transactions, cash depositing and balance enquiries at Bank Islam’s 332 automated teller machines (“ATMs”) and 113 cash deposit machines (“CDMs”) located nationwide. To enjoy this convenience, Tabung Haji depositors with Bank Islam ATM cards are advised to visit the nearest Bank Islam branch to register and activate their Bank Islam ATM cards with their Tabung Haji accounts. To register, they need only bring along their identity card and Tabung Haji Savings Account book.


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Jun 2008 • Jun 2008g h

Bank Islam Bekerjasama dengan Amanah Raya Berhad untuk Perkhidmatan Menulis Wasiat

Bank Islam dengan kerjasama Amanah Raya Berhad (“Amanah Raya”) akan menyediakan perkhidmatan penulisan Wasiat, sebagai sebahagian daripada strateginya untuk mengembangkan perkhidmatan pengurusan kewangan dan harta kepada para pelanggannya. Perkhidmatan tambah nilai ini mengukuhkan lagi kedudukan Bank Islam untuk menjadi sebuah pusat perkhidmatan kewangan serba lengkap dalam industri perbankan Islam.

Bank Islam Collaborates with Amanah Raya Berhad to offer will writing Services

Bank Islam teamed up with Amanah Raya Berhad (“Amanah Raya”) to provide Will writing services, as part of its strategy to expand personal and wealth management financial services to customers. This value-added service enhances the position of Bank Islam to be one-stop financial services centre in the Islamic banking industry.

Jun 2008 • Jun 2008g h

Pelancaran Rasmi Cawangan Baru Kota Kinabalu di Bangunan UMNO

Ketua Menteri Sabah, Datuk Seri Musa Aman merasmikan pelancaran cawangan Bank Islam Kota Kinabalu. Bank Islam sedang berusaha untuk memperkemaskan rangkaian cawangannya sejajar dengan proses penjenamaan semula yang bermula pada bulan Ogos lepas. Ini bertujuan untuk mempertingkatkan kualiti perkhidmatan dan memastikan keselesaan para pengguna apabila mereka menjalankan urusan perbankan mereka.

Official Launch of New Kota Kinabalu Branch in Bangunan UMNO

Sabah Chief Minister Datuk Seri Musa Aman officiated the launching ceremony of Bank Islam’s Kota Kinabalu branch. Bank Islam is making efforts to upgrade its branch network in line with the rebranding process which started last August. This is to improve the quality of services and also ensure convenience for customers when they are carrying out banking business.


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Jun 2008 • Jun 2008

Mini Baitulmal, Hulu Langat, Selangor menerima sumbangan zakat daripada Takaful Malaysia

Takaful Malaysia menyumbangkan sebanyak RM19,000 kepada 38 asnaf di bawah naungan Mini Baitulmal, Hulu Langat, Selangor di majlis sumbangan zakat yang diadakan pada bulan Jun 2008. Pn Noraini Yusof, Penolong Pengurus Besar Operasi Cawangan/Bahagian Perbendaharaan telah menyampaikan sumbangan tersebut bagi pihak Syarikat dengan disaksikan oleh Y.B. Dr. Che Rosli Che Mat, Ahli Parlimen Hulu Langat.

Mini Baitulmal, Hulu Langat, Selangor receives zakat contribution from Takaful Malaysia

Takaful Malaysia contributed a total of RM19, 000 to 38 asnaf under the patronage of Mini Baitulmal, Hulu Langat, Selangor during a zakat payment ceremony that was held in June 2008. Present at the ceremony to give away the contribution on behalf of the company was Pn. Noraini Yusof, the Assistant General Manager of Branch Operations /Treasury Division and witnessed by Y.B. Dr. Che Rosli Che Mat, Member of Parliament for Hulu Langat.

Jun 2008 • Jun 2008

Pembayaran Zakat Perniagaan sebanyak RM1 juta kepada negeri Kelantan

Bank Islam mengeluarkan zakat perniagaan berjumlah RM1 juta kepada negari Kelantan dengan matlamat untuk membantu meninggikan status sosio ekonomi dan tahap pendidikan keluarga berpendapatan rendah di negeri tersebut. Pengeluaran zakat Bank Islam adalah untuk menyokong kos keseluruhan projek pembangunan perumahan Kelantan bagi rakyat miskin yang dikenali sebagai Projek Perumahan Rakyat Miskin (“PPR”) Kelantan, yang disalurkan melalui Majlis Agama Islam Kelantan (“MAIK”). Turut hadir di majlis penyampaian tersebut adalah Menteri Besar Kelantan Yang Amat Berhormat Tuan Guru Dato’ Hj Nik Abdul Aziz b. Nik Mat, Setiausaha Negeri Kelantan Yang Berhormat Dato’ Haji Aiseri Haji Alias dan Yang DiPertua Majlis Agama Islam dan Adat Istiadat Melayu Kelantan, Yang Berbahagia Dato’ Haji Wan Mohamad Wan Konok.

RM1 Million Business Zakat to State of Kelantan

Bank Islam contributed business zakat of RM1 million to the state of Kelantan with the aim to help uplift the State’s social economic status and level of education from low-income families. Bank Islam’s zakat contribution was to support the overall cost for Kelantan’s housing development project for the poor known as the Projek Perumahan Rakyat Miskin (“PPR”) Kelantan, which was channeled through Majlis Agama Islam Kelantan (“MAIK”). Present at the official presentation ceremony were Kelantan Chief Minister Yang Amat Berhormat Tuan Guru Dato’ Hj Nik Abdul Aziz b. Nik Mat to witness the ceremony, Kelantan State Secretary Yang Berhormat Dato’ Haji Aiseri Haji Alias and Majlis Agama Islam dan Adat Istiadat Melayu Kelantan Yang DiPertua Yang Berbahagia Dato’ Haji Wan Mohamad Wan Konok.

g h g h


061


g hPenyata Tadbir Urus Korporat

Kod mengenai Tadbir Urus Korporat Malaysia (“Kod”) menggariskan proses dan struktur amalan terbaik yang boleh diguna pakai oleh syarikat dalam mentadbir dan mengurus operasi mereka dengan matlamat untuk mempertingkatkan kemajuan perniagaan dan akauntabiliti korporat. Objektif utama Kod tersebut adalah untuk membolehkan syarikat-syarikat merealisasi nilai jangka panjang pemegang saham dan pada masa yang sama mengambil kira kepentingan para pemegang kepentingan yang lain.

Lembaga Pengarah BIMB Holdings Berhad (“BHB” atau “Syarikat”) mengiktiraf kepentingan tadbir urus korporat dan benar-benar komited serta menyokong cadangan yang termaktub di dalam Kod. Lembaga Pengarah sentiasa berusaha memastikan tahap tadbir urus korporat yang tinggi diamalkan di seluruh Kumpulan BHB bagi melindungi dan mempertingkatkan nilai pemegang kepentingan serta prestasi Kumpulan.

Selain daripada Kod itu, Lembaga Pengarah juga mengambil kira kesesuaian untuk mengguna pakai syor dan garis panduan tadbir urus korporat yang digariskan oleh badan pengawal selia. Garis panduan berkenaan termasuk Keperluan Penyenaraian Bursa Malaysia Securities Berhad (Bursa Malaysia) dan garis panduan Tadbir Urus Korporat Bank Negara Malaysia (BNM GP1-i).

Lembaga Pengarah dengan sukacita membentangkan laporan mengenai pelaksanaan prinsip dan pematuhan amalan terbaik seperti yang dinyatakan di dalam Kod berkenaan bagi tahun berakhir 30 Jun 2008.

I. LEMBAGA PENGARAH

1) KESEIMBANGAN LEMBAGA PENGARAH

Lembaga Pengarah (pada tarikh penyata ini) terdiri daripada sembilan (9) orang ahli. Lapan (8) adalah Pengarah Bukan Eksekutif (termasuk Pengerusi) dan satu (1) Pengarah Eksekutif. Empat (4) daripada lapan (8) Pengarah adalah Pengarah Bebas seperti yang ditakrif di bawah Keperluan Penyenaraian Bursa Malaysia.

Lembaga Pengarah dibentuk mengikut keseimbangan yang optimum dan mematuhi kriteria Pengarah Bebas seperti yang ditetapkan di bawah Keperluan Penyenaraian Bursa Malaysia. Para Pengarah mempunyai latar belakang dan pengalaman profesional yang pelbagai seperti dalam bidang perbankan dan kewangan, perakaunan, ekonomi dan pengurusan yang membolehkan mereka menyumbang pengetahuan, kepakaran dan perspektif yang tidak ternilai untuk mencapai objektif dan wawasan Kumpulan. Dengan gabungan pengetahuan dan pengalaman mereka, Lembaga Pengarah mempunyai kepakaran untuk mengawalselia prestasi perniagaan; mengkaji dan meluluskan rancangan perniagaan strategik Kumpulan dan mengkaji kecukupan dan kewibawaan sistem kawalan dalaman dan sistem maklumat pengurusan. Profil ringkas setiap Pengarah dibentangkan di muka surat 014 hingga 022.

Terdapat pembahagian tugas dan tanggungjawab yang jelas antara Lembaga Pengarah dan Pengurusan. Lembaga Pengarah bertanggungjawab menggubal rangka kerja dasar mengenai cara Syarikat dan Kumpulan patut beroperasi, sementara Pengurusan bertanggungjawab terhadap unit operasi, keberkesanaan organisasi dan pelaksanaan dasar dan keputusan Lembaga Pengarah. Kehadiran Pengarah Bebas Bukan Eksekutif memenuhi peranan penting dalam akauntabiliti korporat kerana mereka dapat memberi pandangan yang tidak memihak dan bebas, nasihat dan pertimbangan yang turut mengambilkira kepentingan pemegang saham minoriti serta pemegang kepentingan.

2) MESYUARAT LEMBAGA PENGARAH

Kesemua mesyuarat Lembaga Pengarah dijadualkan lebih awal pada permulaan setiap tahun bagi membolehkan para Pengarah membuat perancangan awal dan menyelaraskan jadual mesyuarat tahunan tersebut dengan jadual mereka sendiri. Lembaga Pengarah bermesyuarat secara berjadual sekurang-kurangnya empat (4) kali setahun. Apabila timbul keperluan, mesyuarat Khas Lembaga Pengarah akan diadakan. Kakitangan Pengurusan Kanan atau penasihat luar mungkin dijemput untuk menghadiri mesyuarat Lembaga Pengarah untuk memberi khidmat nasihat kepada Lembaga Pengarah serta menyediakan maklumat dan penjelasan yang diperlukan oleh Lembaga Pengarah berhubung perkara yang berkenaan bagi membolehkan mereka mencapai sesuatu keputusan.

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g h

The Malaysian Code on Corporate Governance (“the Code”) spells out the best practice processes and structures that companies may use in directing and managing their operations with the aim of enhancing business prosperity and corporate accountability. The ultimate objective of the Code is to enable companies to realise long-term shareholder value while taking into account the interest of other stakeholders.

The Board of Directors of BIMB Holdings Berhad (“The Board”) recognises the importance of corporate governance and is fully committed to supporting the recommendations of the Code. The Board constantly strives to ensure high standards of corporate governance are practiced throughout the BHB Group to protect and enhance stakeholder value as well as the performance of the Group.

In addition to the Code, the Board, where appropriate, adopts the recommendations and guidelines on corporate governance outlined by regulatory bodies. Such guidelines include Bursa Malaysia Securities Berhad’s (Bursa Malaysia) Listing Requirements and Bank Negara Malaysia’s guidelines on Corporate Governance (BNM GP1-i).

The Board is pleased to present the following report on the application of best practice principles and compliance as set out in the Code for the year ended 30 June 2008.

I. BOARD OF DIRECTORS

1) BOARD BALANCE

The Board (as at the date of this statement) consists of nine (9) members. Eight (8) are Non-Executive Directors (including the Chairman) and one (1) is an Executive Director. Four (4) of the eight (8) Directors are Independent as defined under the Listing Requirements of Bursa Malaysia.

There is an optimum board balance and compliance with the Independent Directors criteria as set out under the Bursa Malaysia Listing Requirements. The Directors hail from diverse professional backgrounds and experiences including banking and finance, accounting, economics and management. They bring with them invaluable knowledge, expertise and perspectives to achieve the Group’s objectives and vision. With their cumulative knowledge and experience, the Board of Directors has the expertise required to oversee the performance of the respective businesses; to review and approve the strategic business plans of the Group and to review the adequacy and integrity of internal controls and management information systems. A brief profile of each Director is presented on pages 014 and 022.

There is a clear division of duties and responsibilities between the Board and Management. The Board is responsible for setting the policy framework within which the Company and the Group should be operating, while Management is accountable for the operating units, organisational effectiveness and implementation of Board policies and decisions. The presence of Independent Non-Executive Directors fulfils a pivotal role in corporate accountability as they provide unbiased and independent views, advice and judgment that take into account the interests of minority shareholders as well as stakeholders.

2) BOARD MEETINGS

Board meetings are scheduled in advance at the beginning of a new calendar year to enable Directors to plan ahead and fit the year’s meeting into their own schedules. The Board meets on a scheduled basis at least four (4) times a year. When the need arises, Special Board meetings are also convened. Senior management staff or external advisors may be invited to attend the Board meetings to advise the Board and to furnish the Directors with information and clarification needed on relevant items to enable them to arrive at a decision.

Statement of Corporate Governance

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Pada tahun berakhir 30 Jun 2008, terdapat sebanyak lima (5) Mesyuarat Lembaga Pengarah dan lima (5) Mesyuarat Khas Lembaga Pengarah telah diadakan. Berikut adalah maklumat terperinci kehadiran setiap Pengarah ke mesyuarat yang diadakan:

Pengarah Bil. Mesyuarat* Peratus

Tan Sri Samsudin bin Osman (Pengerusi) 9 daripada 10 90%Dato’ Mohd Bakke bin Salleh 7 daripada 10 70%Dato’ Dr. Abdul Halim bin Ismail 8 daripada 10 80%Zahari @ Mohd Zin bin Idris 9 daripada 10 90%Salih Amaran bin Jamiaan 9 daripada 10 90%Zaiton binti Mohd Hassan 10 daripada 10 100%Dato’ Hairuddin bin Mohamed 9 daripada 10 90%Datuk Ismee bin Ismail 8 daripada 10 80%Johan bin Abdullah (dilantik pada 15 Mei 2008) 1 daripada 1 100%

* Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah berkenaan memegang jawatan.

3) BEKALAN MAKLUMAT

Lembaga Pengarah mempunyai akses penuh dan tidak terbatas pada semua maklumat berkaitan dengan urus niaga BHB bagi membolehkan mereka menjalankan tugas dengan berkesan. Semua Pengarah mempunyai akses mendapatkan nasihat dan khidmat Setiausaha Syarikat dan jika perlu, mereka boleh mendapatkan khidmat nasihat profesional bebas. Laporan Lembaga Pengarah menyediakan perkembangan terkini berkenaan operasi, kewangan dan korporat yang diedarkan sebelum mesyuarat Lembaga Pengarah bagi membolehkan mereka mendapat penjelasan atau huraian lanjut sebagai persediaan sebelum menghadiri setiap mesyuarat.

4) PELANTIKAN MENGANGGOTAI LEMBAGA PENGARAH

Lembaga Pengarah telah menetapkan prosedur rasmi dan telus dalam pelantikan ahli baru menganggotai Lembaga Pengarah. Jawatankuasa Penamaan dan Penilaian diberi tanggungjawab untuk mengenal pasti serta membuat cadangan berhubung pelantikan pengarah baru untuk menganggotai Lembaga Pengarah Syarikat selepas mengambilkira keperluan pelbagai kemahiran, pengalaman dan kualiti lain yang dimiliki oleh calon.

5) PEMILIHAN SEMULA

Berdasarkan Tataurusan Persatuan Syarikat, sekurang-kurangnya satu per tiga (1/3) daripada Pengarah dikehendaki bersara mengikut giliran pada setiap tahun kewangan dan mereka boleh menawarkan diri untuk dipilih semula pada Mesyuarat Agung Tahunan (AGM). Pengarah yang dilantik oleh Lembaga Pengarah untuk mengisi kekosongan biasa tertakluk kepada pemilihan oleh pemegang saham pada AGM pertama selepas pelantikan mereka.

Pelantikan semua Pengarah adalah tertakluk kepada kelulusan Bank Negara Malaysia.

Maklumat terperinci mengenai Pengarah yang akan dipilih semula dinyatakan di muka surat 008 Laporan Tahunan ini.

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g hStatement of Corporate Governance

During the year ended 30 June 2008, there were (5) Board meetings and (5) Special Board meetings held. The following are the details of attendance of each Director in respect of meetings held:

Directors No. of meetings attended* Percentage

Tan Sri Samsudin bin Osman (Pengerusi) 9 out of 10 90%Dato’ Mohd Bakke bin Salleh 7 out of 10 70%Dato’ Dr. Abdul Halim bin Ismail 8 out of 10 80%Zahari @ Mohd Zin bin Idris 9 out of 10 90%Salih Amaran bin Jamiaan 9 out of 10 90%Zaiton binti Mohd Hassan 10 out of 10 100%Dato’ Hairuddin bin Mohamed 9 out of 10 90%Datuk Ismee bin Ismail 8 out of 10 80%Johan bin Abdullah (appointed on 15 May 2008) 1 out of 1 100%

* Reflects the number of meetings held during the time the Director held office.

3) SUPPLY OF INFORMATION

The Board of Directors has full and unrestricted access to all information pertaining to BHB businesses and affairs to enable them to discharge their duties effectively. All the Directors have direct access to the advice and services of the Company Secretary and they may also seek independent professional advice where necessary. Board reports providing updates on operational, financial and corporate developments are circulated on a timely basis prior to Board meetings to enable the Directors to obtain further clarification or explanation where necessary in order to adequately appraise matters before each meeting.

4) APPOINTMENT TO THE BOARD

The Board has put in place formal and transparent procedures for the appointment of new members to the Board. The Nomination and Assessment Committee is entrusted with the specific tasks of identifying and making recommendations on the appointments of new directors to the board of the Company and its subsidiaries after taking into account the required mix of skills, experience and other qualities of the appointee.

5) RE-ELECTION

In accordance with the Company’s Articles of Association, at least one third of the Directors are required to retire by rotation each financial year and can offer themselves for re-election at the Annual General Meeting (AGM). Directors who are appointed by the Board to fill a casual vacancy are subject to election by shareholders at the first AGM following their appointment.

All appointments of Directors are subject to the approval of Bank Negara Malaysia.

Details of Directors due for re-election are disclosed on page 008 of this Annual Report.

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6) KEAHLIAN DALAM LEMBAGA PENGARAH SYARIKAT LAIN

Menurut Keperluan Penyenaraian Bursa Malaysia, setiap ahli Lembaga Pengarah dibenarkan menjadi ahli Lembaga Pengarah tidak melebihi sepuluh (10) syarikat awam tersenarai dan tidak melebihi lima belas (15) keahlian dalam Lembaga Pengarah syarikat bukan tersenarai awam.

7) LATIHAN PENGARAH

Semua Pengarah telah menghadiri dan mengikuti dengan jayanya Program Akreditasi Mandatori sebagaimana yang ditetapkan oleh Bursa Malaysia. Mereka juga akan menghadiri pelbagai program latihan dan seminar secara berterusan supaya mereka dapat mengikuti perkembangan dunia perniagaan.

Di samping itu, Syarikat juga mengendalikan program latihan dalaman untuk Pengarah dan Pengurusan Kanan Kumpulan BHB yang dijalankan oleh pakar dalam industri.

Pada tahun ini, Lembaga Pengarah BHB, Pengarah syarikat subsidiari dalam BHB dan Ahli Pengurusan Kanan BHB telah menghadiri pelbagai program latihan, antara lain adalah seperti berikut:

Tajuk Kursus Pelatih

1) Program Latihan Pengarah - Pengemaskinian Mengenai Pindaan Akta Syarikat (Pindaan) dan Kod Tadbir Urus Korporat Malaysia (Semakan Semula 2007) Zaid Ibrahim & Co.

2) Polisi Insurans Pengarah dan Pegawai - Kesan ke atas Pengarah dan Liabiliti Peribadi Mereka Sime Darby Lockton Insurance Brokers

8) GANJARAN PENGARAH

Pengarah Bukan Eksekutif diberi bayaran dalam bentuk yuran pengarah yang diluluskan oleh pemegang saham di Mesyuarat Agung Tahunan. Butiran mengenai ganjaran kepada Pengarah bagi tahun berakhir 30 Jun 2008 dinyatakan dalam Nota 31 pada muka surat 144 dan 145 dalam Laporan Tahunan ini.

II. JAWATANKUASA-JAWATANKUASA LEMBAGA PENGARAH

Jawatankuasa-jawatankuasa Lembaga Pengarah telah ditubuhkan untuk membantu Lembaga Pengarah melaksanakan tugas mereka dengan berkesan. Fungsi dan bidang tugas Jawatankuasa-jawatankuasa Lembaga Pengarah digariskan dengan jelas.


LEMBAGA PENGARAH

JawatankuasaEksekutif

JawatankuasaAudit dan

Pemeriksaan

JawatankuasaPenamaan dan

Penilaian

JawatankuasaGanjaran

JawatankuasaKhas Lembaga

Pengarah

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Statement of Corporate Governanceg h

6) DIRECTORSHIP IN OTHER COMPANIES

Pursuant to the Listing Requirements of Bursa Malaysia, each member of the Board holds not more than ten (10) directorship in public listed companies and not more than fifteen (15) directorships in non-public listed companies.

7) DIRECTORS’ TRAINING

All the Directors have attended and successfully completed the Mandatory Accreditation Programme in the manner prescribed by Bursa Malaysia. They also continue to attend other education programme and seminars to keep abreast with developments in the market place.

In addition, the Company also organises in-house training programme for Directors and Member of the Senior Management of the BHB Group facilitated by industry experts.

During the year, the BHB Board, the Directors of Subsidiaries within BHB and Members of the Senior Management of BHB attended training programmes pertaining to (among others), the following:

Course Title Trainer

1) Directors Training Programme - Updates on The Companies Act (Amendments) and The Malaysian Code on Corporate Governance (Revised 2007) Zaid Ibrahim & Co.

2) Directors and Officers Insurance Policy - The Impact on Directors and Their Personal Liability Sime Darby Lockton Insurance Brokers

8) DIRECTORS’ REMUNERATION

Non-Executive Directors are paid directors’ fees and these are approved by shareholders at the Annual General Meeting. Details of the remuneration of Directors for the year ended 30 June 2008 are set out in Note 31 on pages 144 and 145 of this Annual Report.

II. BOARD COMMITTEES

To assist the Board in discharging its duties, various Board Committees have been established. The functions and terms of references of these Board Committees are clearly defined.

BOARD OF DIRECTORS

Nomination and Assessment

Committee

Audit and Examination Committee

Executive Committee

Special Board Committee

Remuneration Committee

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1) JAwATANKUASA EKSEKUTIF Jawatankuasa Eksekutif diberi kuasa untuk memastikan supaya Syarikat dapat menjalankan aktivitinya dengan lancar dan berkesan sementara menunggu perlantikan Pengarah Urusan Kumpulan (GMD) yang baru. Sejajar dengan perlantikan GMD, Jawatankuasa Eksekutif telah dibubarkan kemudiannya. Jawatankuasa Eksekutif bermesyuarat sekali sepanjang penubuhannya bermula dari bulan November 2007 hingga Ogos 2008. Senarai Ahli Jawatankuasa Eksekutif dan kehadiran mereka di mesyuarat tersebut adalah seperti berikut:

Ahli Bil. Mesyuarat dihadiri Peratus

Tan Sri Samsudin bin Osman (Pengerusi) 1 daripada 1 100%Datuk Ismee bin Ismail 1 daripada 1 100%Zahari @ Mohd Zin bin Idris 1 daripada 1 100%Zaiton binti Mohd Hassan 1 daripada 1 100%Dato’ Hairuddin bin Mohamed 0 daripada 1 -

2) JAwATANKUASA PENAMAAN DAN PENILAIAN

Jawatankuasa ini bertanggungjawab menilai, mempertimbangkan dan mencadangkan kepada Lembaga Pengarah calon untuk memegang jawatan Pengarah dalam Kumpulan. Tanggungjawab lain Jawatankuasa ini adalah seperti berikut:

• Mengesyorkan kepada Lembaga Pengarah, hal-hal yang berkaitan dengan pembaharuan atau pelanjutan pelantikan atau pelantikan semula Pengarah yang bersara.

• Mencadangkan kepada Lembaga Pengarah, perkara-perkara berkaitan dengan Pengarah yang sesuai untuk mengisi kekosongan dalam Jawatankuasa Lembaga Pengarah.

• Mengesyorkan kepada Lembaga Pengarah, perkara berkaitan dengan pelantikan Pengarah Eksekutif serta Pengurusan Kanan.

• Mengkaji dan menilai prestasi Lembaga Pengarah secara keseluruhan dan pelbagai jawatankuasanya serta sumbangan setiap Pengarah.

Jawatankuasa ini terdiri daripada Pengarah Bukan Eksekutif, yang majoritinya adalah Bebas. Mesyuarat diadakan apabila perlu bagi membincangkan hal-hal yang berkaitan. Keahlian Jawatankuasa dan kehadiran mereka adalah seperti berikut:


Dato’ Mohd Bakke bin Salleh 3 daripada 3 100%Zahari @ Mohd Zin bin Idris 3 daripada 3 100%Zaiton binti Mohd Hassan 3 daripada 3 100%Datuk Ismee bin Ismail 2 daripada 2 100%(dilantik sebagai ahli berkuatkuasa dari 26 November 2007)

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1) EXECUTIVE COMMITTEE

The Executive Committee was delegated with such powers as to ensure the smooth and effective running of the Company pending the appointment of the new Group Managing Director (GMD). In line with the appointment of the new GMD, the executive committee was then dissolved. The Executive Committee met once from November 2007 to August 2008. The members of the Executive Committee and their attendance at the meeting are as follows:

Members No. of meetings attended Percentage

Tan Sri Samsudin bin Osman (Chairman) 1 out of 1 100%Datuk Ismee bin Ismail 1 out of 1 100%Zahari @ Mohd Zin bin Idris 1 out of 1 100%Zaiton binti Mohd Hassan 1 out of 1 100%Dato’ Hairuddin bin Mohamed 0 out of 1 -

2) NOMINATION AND ASSESSMENT COMMITTEE

This Committee is responsible for assessing, considering and recommending to the Board, candidates for directorships to be filled in the Group. The other responsibilities of the Committee are as follows:

• To make recommendations to the Board, matters pertaining to the renewal or extension of Directors’ appointments and the reappointment of retiring Directors.

• To make recommendations to the Board, matters relating to appropriate Directors filling the seats on the Board Committees.

• To recommend to the Board, matters relating to the appointment of Executive Director as well as the appointment of Senior Management posts to be filled.

• To annually review and assess the performance of the Board as a whole and its various standing committees, as well as the contribution of each individual Director.

The Committee comprises Non-Executive Directors, the majority of whom are Independent. Meetings are held as and when necessary for the Committee to deliberate on related matters. The members of the Committee and their attendance are as follows:


Dato’ Mohd Bakke bin Salleh 3 out of 3 100%Zahari @ Mohd Zin bin Idris 3 out of 3 100%Zaiton binti Mohd Hassan 3 out of 3 100%Datuk Ismee bin Ismail 2 out of 2 100%(appointed as member with effect from 26 November 2007)

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3) JAwATANKUASA GANJARAN

Jawatankuasa ini berperanan untuk membantu dan menyokong tanggungjawab Lembaga Pengarah berhubung dengan pakej ganjaran Pengarah Syarikat dari segenap sudut. Jawatankuasa ini bertanggungjawab untuk menilai dan mengesyorkan perkara-perkara berikut kepada Lembaga Pengarah:

• Pakej ganjaran Pengarah Eksekutif dalam semua bentuk, berasaskan kepada nasihat profesional bebas jika perlu.

• Pakej ganjaran untuk Pengarah Bukan Eksekutif yang merupakan keputusan Lembaga Pengarah sepenuhnya, melainkan ganjaran yang berkaitan dengan mana-mana ahli Jawatankuasa ini.

Jawatankuasa Ganjaran dianggotai oleh Pengarah Bukan Eksekutif, majoriti daripadanya adalah bebas. Mesyuarat diadakan mengikut keperluan bagi membincangkan hal-hal yang berkaitan. Ahli Jawatankuasa ini dan kehadiran mereka adalah seperti berikut:


Dato’ Mohd Bakke bin Salleh 4 daripada 4 100%Zahari @ Mohd Zin bin Idris 4 daripada 4 100%Zaiton binti Mohd Hassan 4 daripada 4 100%Datuk Ismee bin Ismail 1 daripada 1 100%(dilantik sebagai ahli berkuatkuasa dari 26 November 2007)

4) JAwATANKUASA KHAS LEMBAGA PENGARAH

Jawatankuasa ini ditubuhkan khusus untuk mempertimbangkan dan menyiasat, menilai, menasihati jika difikirkan perlu dan mencadangkan kepada Lembaga Pengarah BHB akan bentuk tindakan yang patut diambil pada mana-mana pegawai, penasihat atau pakar runding syarikat dalam Kumpulan BHB apabila terdapat bukti kukuh yang boleh dipercayai bahawa pegawai, penasihat atau pakar runding berkenaan telah membuat tindakan yang boleh memudaratkan kepentingan entiti tersebut. Tanggungjawab lain Jawatankuasa adalah seperti berikut :

• Untuk mendapatkan khidmat nasihat guaman atau pegawai yang berkaitan dalam Kumpulan BHB tentang sebarang laporan, penemuan, pemerhatian dan cadangan atas perilaku pegawai, penasihat atau pakar runding berkenaan isu yang diputuskan oleh Lembaga Pengarah BHB;

• Untuk menggunakan khidmat penasihat undang-undang bebas, sekiranya perlu, bagi mendapatkan nasihat undang-undang yang bebas mengenai sebarang isu kontroversi yang dianggap kompleks;

• Untuk meminta penjelasan daripada pegawai yang berkaitan tentang pengendalian, pengurusan, keputusan, tindakan atau pengabaian tentang isu berkaitan; dan

• Untuk menubuhkan jawatankuasa kecil yang terdiri daripada pegawai syarikat berkenaan dalam Kumpulan BHB bagi membantu melaksanakan tangggungjawab mereka termasuk menjalankan penyiasatan lanjut bagi mengenal pasti fakta tertentu atau mengumpulkan maklumat lanjut.

Ahli-ahli Jawatankuasa ini adalah Dato’ Hairuddin bin Mohamed (Pengerusi), Encik Zahari @ Mohd Zin bin Idris dan Dato’ Zukri bin Samat.

Mesyuarat Jawatankuasa diadakan mengikut keperluan dan tiada mesyuarat diadakan pada tahun kewangan ini.

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3) REMUNERATION COMMITTEE

This Committee’s role is to assist and support the Board’s responsibility in respect of the remuneration package for Directors of the Company in all forms. The Committee is also responsible for assessing and recommending the following matters to the Board:

• To make recommendations to the Board on matters pertaining to the remuneration package of Executive Directors in all forms, using independent professional advice where necessary.

• To make recommendations to the Board on matters pertaining to the remuneration of Non-Executive Directors which shall be a decision of the Board as a whole, save and except where the remuneration is in respect of any member or members of this Committee.

The Remuneration Committee comprises Non-Executive Directors, the majority of whom are independent. Meetings are held as and when necessary for the Committee to deliberate on related matters. The members of the Committee and their attendance are as follows:


Dato’ Mohd Bakke bin Salleh 4 out of 4 100%Zahari @ Mohd Zin bin Idris 4 out of 4 100%Zaiton binti Mohd Hassan 4 out of 4 100%Datuk Ismee bin Ismail 1 out of 1 100%(appointed as member with effect from 26 November 2007)

4) SPECIAL BOARD COMMITTEE

The Committee is specifically established to consider and if appropriate to inquire into, evaluate, advise and recommend to BHB’s Board on actions to be taken against any officer, adviser or consultants of companies within BHB group where there are sufficient grounds to believe that such officer, adviser or consultant behaved in such manner detrimental to the interests of such entities. The other responsibilities of the Committee are as follows :-

• To consult solicitors or the relevant officers of the companies within BHB Group in relation to any reports, findings, observations and recommendations on the conduct of officers, advisers or consultants in relation to the issue determined by BHB’s Board;

• To engage independent legal advisor, where necessary to provide independent legal advice on any contentious issues that are viewed to be complex in nature;

• To request for explanation or clarification by such relevant officers in relation to the handling, management, decisions, actions or omission relating to the issue; and

• To establish a sub-committee (s) comprising such officers of companies within BHB group to assist it in carrying out its function including carrying out further investigation to establish certain facts or to collate further information.

Members of the Committee are Dato’ Hairuddin bin Mohamed (Chairman), Encik Zahari @ Mohd Zin bin Idris and Dato’ Zukri bin Samat.

Meetings are held as and when necessary and there is no meeting held during the financial year.

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5) JAwATANKUASA AUDIT DAN PEMERIKSAAN

Jawatankuasa Audit dan Pemeriksaan (Jawatankuasa) terdiri daripada (pada tarikh Laporan Tahunan), empat (4) Pengarah Bukan Eksekutif, (tiga (3) daripadanya termasuk Pengerusi, adalah Pengarah Bebas). Komposisi Jawatankuasa dan butiran kehadiran setiap ahli ke mesyuarat Jawatankuasa Audit adalah seperti berikut:


Zahari @ Mohd Zin bin Idris (Pengerusi) 8 daripada 8 100%Zaiton binti Mohd Hassan 8 daripada 8 100%Salih Amaran bin Jamiaan 8 daripada 8 100%Dato’ Hairuddin bin Mohamed 2 daripada 3 70%(dilantik sebagai ahli berkuatkuasa dari 26 Februari 2008)

Bidang Tugas

Bidang tugas Jawatankuasa ini adalah seperti berikut:

• KOMPOSISI

Jawatankuasa ini terdiri daripada sekurang-kurangnya tiga (3) Pengarah Bukan Eksekutif, yang majoritinya merupakan Pengarah Bebas Bukan Eksekutif. Pengerusinya ialah Pengarah Bebas Bukan Eksekutif.

Sekurang-kurangnya satu (1) ahli Jawatankuasa merupakan ahli Institut Akauntan Malaysia atau mempunyai kelayakan yang serupa sebagaimana yang termaktub dalam Bahagian I atau Bahagian II Jadual Pertama Akta Perakaunan 1967, dengan sekurang-kurangnya pengalaman bekerja selama tiga (3) tahun.

Jawatankuasa ini tidak boleh mempunyai Pengarah Gilir sebagai ahli.

• KEKERAPAN MESYUARAT

Mesyuarat perlu diadakan tidak kurang daripada empat (4) kali setahun. Juruaudit luar boleh memohon untuk mengadakan mesyuarat sekiranya difikirkan perlu.

Jawatankuasa ini bermesyuarat sekurang-kurangnya dua kali setahun dengan juruaudit luar tanpa kehadiran Pengarah Eksekutif.

• KORUM

Korum memerlukan dua (2) orang, dengan majoritinya adalah Pengarah Bebas.

Setiausaha Syarikat BHB akan bertindak sebagai Setiausaha kepada Jawatankuasa ini.

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5) AUDIT AND EXAMINATION COMMITTEE

The Audit and Examination Committee (Committee) comprises (as at the date of this Annual Report), four (4) Non-Executive Directors (three (3) of whom, including the Chairman, are Independent Directors). The composition of the Committee and details of attendance of each member at Committee meetings during the period under review are as follows:


Zahari @ Mohd Zin bin Idris (Chairman) 8 out of 8 100%Zaiton binti Mohd Hassan 8 out of 8 100%Salih Amaran bin Jamiaan 8 out of 8 100%Dato’ Hairuddin bin Mohamed 2 out of 3 70%(appointed as member with effect from 26 February 2008)

Terms of Reference

The terms of reference of the Committee are as follows:

• COMPOSITION

The Committee shall comprise at least three (3) Non-Executive Directors, the majority of whom shall be Independent Non-Executive Directors. The Chairman shall be an Independent Non-Executive Director.

At least one (1) member shall be a member of the Malaysian Institute of Accountants or possess similar qualifications as prescribed in Part I or Part II of the First Schedule of the Accountants Act 1967, with at least three (3) years of work experience.

The Committee shall not consist of any Alternate Director of the Company.

• FREQUENCY OF MEETINGS

Meetings shall be held not less than four (4) times a year. The external auditors may request a meeting if they consider that one is necessary.

At least twice a year, the Committee shall meet with the external auditors without executive board members present.

• QUORUM

The quorum shall be two (2) with majority of these being Independent Directors.

The Company Secretary of BHB shall act as Secretary to the Committee.


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• KEHADIRAN KE MESYUARAT

Pengarah Urusan Kumpulan dan Ketua Pegawai Kewangan dipelawa untuk menghadiri mesyuarat. Ahli Lembaga Pengarah yang lain juga berhak untuk hadir ke mesyuarat.

Jawatankuasa ini bermesyuarat sekurang-kurangnya dua kali setahun dengan juruaudit luar tanpa kehadiran Pengarah Eksekutif.

• KUASA

Jawatankuasa ini diberi kuasa oleh Lembaga Pengarah untuk melaksanakan tugas berikut:-

1. Menyiasat sebarang aktiviti atau perkara di dalam bidang tugasnya. 2. Melaporkan dengan segera kepada Bursa Malaysia perkara yang tidak diselesaikan secara memuaskan

sehingga menyebabkan pelanggaran terhadap Keperluan Penyenaraian Bursa Malaysia . 3. Mendapatkan nasihat profesional bebas luar, perundangan atau apa jua yang dianggap perlu.4. Mengekalkan saluran komunikasi langsung dengan juruaudit luar, pihak-pihak yang menjalankan fungsi

audit luar dan pengurusan kanan Syarikat dan syarikat-syarikat subsidiarinya. 5. Mengadakan mesyuarat dengan juruaudit dalaman dan luar, tanpa kehadiran pengurusan, apabila dianggap

perlu.

Dalam menjalankan fungsi di atas, Jawatankuasa ini juga diberi kuasa untuk mempunyai:

1. Sumber diperlukan untuk melaksanakan tugasnya. 2. Akses penuh dan tidak terhad kepada maklumat dan dokumen berkaitan dengan aktivitinya.

• TUGAS DAN TANGGUNGJAwAB

Berikut disenaraikan tugas dan tanggungjawab utama Jawatankuasa:

1. Audit Dalaman

• Mengkaji kecukupan program audit dalaman, penemuan audit dalaman dan mengesyorkan tindakan yang perlu diambil oleh Pengurusan berhubung kekurangan dalam kawalan dan prosedur yang dikenalpasti.

• Mengemukakan syor kepada Lembaga Pengarah tentang perkara berhubung dengan pelantikan atau penamatan khidmat Ketua Audit Dalaman.

• Menilai prestasi juruaudit dalaman dan menentukan serta mengesyorkan ganjaran dan kenaikan tahunan ganjaran juruaudit dalaman.

• Memberi perhatian terhadap peletakan jawatan ahli kakitangan audit dalaman dan memberi peluang kepada ahli kakitangan yang meletak jawatan untuk mengemukakan sebab peletakan jawatan beliau.

2. Kawalan-kawalan Dalaman

• Mengkaji keberkesanan kawalan-kawalan dalaman dan proses-proses pengurusan risiko. • Mengkaji penyata sistem kawalan dalaman sebelum disahkan oleh Lembaga Pengarah.

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• ATTENDANCE AT MEETINGS

The Group Managing Director and Chief Financial Officer are invited to attend the meetings. Other Board members shall have the right to attend.

At least twice a year, the Committee shall meet with the external auditors without executive board members present.

• AUTHORITY

The Committee is empowered by the Board to carry out the following:-

1. Investigate any activity or matter within its terms of reference.2. Promptly report to Bursa Malaysia matters which have not been resolved satisfactorily thus resulting in a

breach of the Bursa Malaysia Listing Requirements.3. Obtain external independent professional advice, legal or otherwise deemed necessary.4. Maintain direct communication channels with external auditors, person(s) carrying out the internal audit

function and Senior Management of the Company and its subsidiaries.5. Convene meetings with internal and external auditors, without the attendance of the management, whenever

deemed necessary.

In discharging the above functions, the Committee is also empowered to have:

1. The necessary resources which are required to discharge its duties.2. Full and unrestricted access to information and documents relevant to its activities.

• DUTIES AND RESPONSIBILITIES

The primary duties and responsibilities of the Committee are as follows:

1. Internal Audit

• Review the adequacy of the internal audit programme, internal audit findings and recommend actions to be taken by Management on deficiencies in controls and procedures that are identified.

• To make recommendations to the Board matters pertaining to the appointment or termination of the Chief Internal Auditor.

• Assess the performance of the internal auditors and determine and recommend the remuneration and annual increment of the internal auditors.

• Take cognisance of resignations of internal audit staff members and provide the resigning staff member an opportunity to submit his reasons for resigning.

2. Internal Controls

• Review the effectiveness of internal controls and risk management processes.• Review the Company’s statement on internal control systems prior to endorsement by the Board of

Directors.


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3. Audit Luar

• Mengkaji skop dan pelan audit juruaudit luar. • Mengkaji pelantikan juruaudit luar dan yuran audit dan sebarang persoalan mengenai peletakan jawatan

atau pemberhentian dan mengsyorkan kepada Lembaga Pengarah. • Memantau keberkesanan prestasi juruaudit luar dan kebebasan serta objektiviti. • Mengkaji surat juruaudit luar kepada Pengurusan dan tindak balas Pengurusan, termasuk syor audit

terdahulu dan mengesyorkan kepada Lembaga Pengarah. .• Meluluskan peruntukan perkhidmatan bukan audit oleh juruaudit luar.

4. Laporan Kewangan

Mengkaji setiap penyata kewangan suku tahun dan akhir tahun Syarikat sebelum diserahkan kepada Lembaga Pengarah, fokus khusus mengenai: • Sebarang perubahan dalam dasar dan amalan perakaunan. • Pelarasan penting yang terhasil daripada audit. • Andaian perniagaan berterusan.• Pematuhan terhadap Piawaian Laporan Kewangan serta pelbagai keperluan perundangan dan peraturan

lain.

5. Urusniaga Pihak Berkaitan

Mengkaji dan melaporkan kepada Lembaga Pengarah sebarang transaksi pihak berkaitan yang mungkin wujud di dalam Syarikat atau Kumpulan.

6. Laporan Tahunan

Laporan tahunan mengandungi aktiviti Jawatankuasa Audit, bilangan mesyuarat audit yang diadakan dalam setahun, maklumat terperinci mengenai kehadiran setiap Pengarah di mesyuarat dan maklumat terperinci mengenai latihan berkaitan yang dihadiri oleh setiap Pengarah.

7. Am

Untuk menjalankan sebarang fungsi lain yang mungkin dipersetujui oleh Lembaga Pengarah.

• FUNGSI AUDIT DALAMAN

Fungsi Audit Dalaman dilaksanakan oleh Jabatan Audit Dalaman Bank Islam Malaysia Berhad (subsidiari BHB) yang melaksanakan fungsi ini bermula dari Julai 2008.

Fungsi Audit Dalaman bagi subsidiari BHB (Perniagaan Perbankan dan Takaful) dijalankan oleh Jabatan Audit Dalaman subsidiari Perbankan dan Takaful.

Juruaudit Dalaman masing-masing menjalankan audit secara kerap ke atas amalan kawalan dalaman dan melaporkan penemuan penting kepada Jawatankuasa Audit dengan syor yang dicadangkan.

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3. External audit

• Review the external auditors’ audit scope and plan.• Review the appointment of external auditors and the audit fee and any question of resignation or dismissal

and to make recommendations to the Board.• Monitor the effectiveness of the external auditors’ performance and their independence and objectivity.• Review the external auditors’ letter to Management and Management’s responses, including the previous

audit recommendations and make recommendations to the Board.• Approve the provision of non-audit service by external auditor.

4. Financial Reporting

Review the quarterly and year-end financial statements of the Company before submission to the Board of Directors, focusing particularly on:• Any changes in accounting policies and practice.• Significant adjustments resulting from the audit.• The going concern assumption.• Compliance with applicable Financial Reporting Standards and other legal and regulatory requirements.

5. Related Party Transactions

Review and report to the Board any related party transactions that may arise within the Company or Group.

6. Annual Report

The annual report contains the Audit Committee’s activities, the number of audit meetings held in a year, details of attendance of each Director in respect of meetings and the details of relevant training attended by each Director.

7. General

To perform any other functions as may be agreed to by the Board.

• INTERNAL AUDIT FUNCTION

The Internal Audit function is carried out by Internal Audit Department of Bank Islam Malaysia Berhad (subsidiary of BHB) to whom the function has been outsourced effective from July 2008.

The Internal Audit function for BHB’s subsidiary (Banking and Takaful business) is carried out by the respective Internal Audit Departments of BHB’s Banking and Takaful subsidiary.

The respective Internal Auditor regularly audits the internal control practices and reports significant findings to their respective Audit Committees with proposed recommendations.


077



Fungsi teras yang jelas Jabatan Audit Dalaman yang berkenaan adalah untuk melaksanakan penilaian bebas aktiviti Kumpulan Bank Islam dan Kumpulan Takaful Malaysia, memberi jaminan bersabit dengan pematuhan kepada kawalan dalaman dan proses pengurusan risiko dan pematuhan pada undang-undang, peraturan dan dasar.

Pengurusan Bank Islam dan Takaful Malaysia bertanggungjawab memastikan tindakan pembetulan terhadap laporan kelemahan yang dilaksanakan dalam tempoh masa yang munasabah.

• AKTIVITI SEPANJANG TAHUN

Berikut adalah ringkasan aktiviti yang dijalankan oleh Jawatankuasa pada tahun kewangan ini:

a) Mengkaji penyata kewangan suku tahun, setengah tahun dan dua belas bulan Kumpulan sebelum diserahkan kepada Lembaga Pengarah untuk pertimbangan dan kelulusan.

b) Mengkaji dan meluluskan skop kerja dan pelan audit juruaudit luar untuk tahun ini.

c) Mengkaji laporan audit bagi Kumpulan yang disediakan oleh Juruaudit Luar dan Dalaman, penemuan mereka dan tindakbalas pengurusan berhubung perkara tersebut.

III. AKAUNTABILITI DAN AUDIT

LAPORAN KEwANGAN

Lembaga Pengarah bertanggungjawab membentangkan penilaian yang seimbang dan komprehensif atas operasi serta prospek Syarikat dan Kumpulan pada setiap hujung tahun kewangan terutamanya melalui penyata kewangan tahunan, pengumuman keputusan suku tahunan dan setiap setengah tahun dan juga pernyataan Pengerusi serta ulasan Operasi dalam Laporan Tahunan.

Penyata kewangan BHB disediakan mengikut keperluan Lembaga Piawaian Perakaunan Malaysia bagi memastikan laporan yang dikemukakan mengenai prestasi Kumpulan adalah betul dan adil. Pernyataan oleh Pengarah menurut Seksyen 169 (15) Akta Syarikat, 1965 dinyatakan pada muka surat 162 Laporan Tahunan ini.

KAwALAN DALAMAN

Lembaga Pengarah menyedari tentang kepentingan sistem kawalan dalaman yang mantap bagi memelihara kepentingan pelaburan pemegang saham dan aset Syarikat. Penyata Kawalan Dalaman dipaparkan pada muka surat 081 dan 083 Laporan Tahunan ini.

HUBUNGAN DENGAN JURUAUDIT LUAR

Lembaga Pengarah telah mewujudkan hubungan yang telus dan wajar dengan Juruaudit Luar melalui Jawatankuasa Audit. Juruaudit Luar mempunyai tanggungjawab untuk mengenengahkan sebarang kepincangan dalam sistem kawalan dalaman dan pematuhan Kumpulan untuk perhatian pihak Pengurusan, Jawatankuasa Audit serta Lembaga Pengarah.

Peranan Jawatankuasa Audit berhubung dengan Juruaudit Luar dinyatakan dalam Laporan Jawatankuasa Audit di muka surat 075 Laporan Tahunan ini.

078


The respective Internal Auditor’s core function is to perform an independent appraisal of the Bank Islam Group and Takaful Malaysia Group activities, to provide assurance on compliance to internal controls and risk management processes, and compliance with laws, regulations and policies.

The management of Bank Islam and Takaful Malaysia are responsible for ensuring that corrective actions on reported weaknesses are undertaken within an appropriate time frame.

• ACTIVITIES DURING THE YEAR

The following is a summary of the activities carried out by the Committee during the financial year:

a) Review of the Group’s quarterly, half-yearly and twelve-monthly financial statements prior to the submission to the Board for consideration and approval.

b) Review and approval of the external auditors’ scope of work and audit plan for the year.

c) Review of the audit report for the Group prepared by both the external and internal auditors, their findings and management responses thereto.

III. ACCOUNTABILITY AND AUDIT

FINANCIAL REPORTING

The Board takes responsibility for presenting a balanced and comprehensive assessment of the Company’s and the Group’s operations and prospects at the end of each financial year primarily through annual financial statements, quarterly and half-yearly announcement of results to shareholders, as well as through the Chairman’s Statement and Review of Operations in the Annual Report.

The financial statements of BHB are prepared in accordance with the Malaysian Accounting Standards Board’s requirements to ensure that the reports present a true and fair view of the Group performance. The Statements by Directors pursuant to Section 169 (15) of the Companies Act, 1965 is set out on page 162 of this Annual Report.

INTERNAL CONTROL

The Board recognises the importance of a sound system of internal control to safeguard shareholders’ investments as well as the Company’s assets. The Statement of Internal Control is set out in pages 082 and 084 of this Annual Report.

RELATIONSHIP wITH AUDITORS

The Board has established a transparent and appropriate relationship with its auditors through the Audit Committee. The External Auditors have an obligation to bring any significant defects in the Group’s system of internal control and compliance to the attention of Management, Audit Committee and the Board.

The role of the Audit Committee in relation to the external auditors is described under the Audit Committee Report on page 076 of this Annual Report.


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IV. PEMEGANG SAHAM

HUBUNGAN DENGAN PEMEGANG SAHAM DAN PELABUR

Lembaga Pengarah sedar akan kepentingan para pemegang saham, pelabur dan masyarakat umum untuk mendapatkan maklumat yang saksama dan tepat pada masanya berhubung prestasi Kumpulan dan hal-hal lain yang menjejaskan kepentingan pemegang saham.

Salah satu cara terpenting penyampaian maklumat kepada pemegang saham adalah melalui Laporan Tahunan yang mengandungi butiran maklumat yang komprehensif mengenai keputusan dan prestasi Syarikat dan Kumpulan.

AGM dianggap sebagai forum utama bagi pemegang saham dan pelabur mendapatkan maklumat tentang perkembangan terkini dalam Syarikat dan Kumpulan. Para pemegang saham dipelawa mengemukakan soalan sewaktu sesi soal jawab sebelum tindakan mendapatkan kelulusan bagi sesuatu resolusi.

Selain itu, Syarikat dari semasa ke semasa membuat pelbagai pengumuman dan penzahiran usul penting korporat kepada Bursa Malaysia (termasuk penzahiran wajib di bawah Keperluan Penyenaraian) supaya pelabur awam dapat mengakses maklumat penting yang mempengaruhi Kumpulan. Syarikat subsidiari utama Kumpulan Bank Islam dan Takaful Malaysia (tersenarai di Papan Utama) dari semasa ke semasa juga membuat penzahiran kepada media tentang pelbagai aktiviti yang berkaitan dengan syarikat yang melibatkan kepentingan awam.


080


IV. SHAREHOLDERS

RELATIONSHIP wITH SHAREHOLDERS AND INVESTORS

The Board recognises the importance of timely and balanced dissemination of information to shareholders, investors and the general public in relation to the Company and Group’s performance and other matters affecting shareholders interest.

One of most important means of communication to shareholders is through the Annual Report which contains comprehensive and sufficient details about the financial results and performance of the Company and the Group.

The AGM is regarded as the principal forum during which shareholders and investors are informed of the current developments of the Company and the Group. Shareholders are invited to ask questions during the question and answer session prior to the motion moving for approval of a particular resolution.

In addition, the Company from time to time makes various announcements and disclosures on material corporate proposals to Bursa Malaysia (including mandatory disclosures under the Listing Requirements) so that the investing public has reasonable access to material information affecting the Group. The Company’s major subsidiaries, Bank Islam and Takaful Malaysia (listed on the Main Board) also make disclosures to the media from time to time on various matters pertaining to their activities that are of public interest.


081


Penyata Kawalan Dalamang h

Lembaga Pengarah sedar akan kepentingan untuk memantapkan sistem kawalan dalaman dan amalan pengurusan risiko yang baik bagi memastikan tadbir urus korporat yang berkesan. Lembaga Pengarah turut mengakui tanggungjawab mereka untuk mengkaji kecukupan dan kewibawaan sistem kawalan dalaman Kumpulan, termasuk mengkaji keberkesanannya.

Seperti mana sistem kawalan dalaman yang lain, sistem kawalan dalaman Kumpulan dijana untuk mengurus dan bukannya untuk menghapuskan risiko kegagalan bagi mencapai objektif perniagaan. Oleh itu, sistem ini hanya boleh menyediakan jaminan berpatutan, bukannya jaminan mutlak terhadap salah nyata atau kerugian ketara.

Proses mengenal pasti, menilai dan mengurus risiko utama yang dihadapi oleh Kumpulan ialah satu proses yang berterusan dan ini termasuk mengkaji dan mengemas kini sistem kawalan dalaman apabila terdapat perubahan pada persekitaran perniagaan, operasi atau garis panduan penguatkuasaan peraturan.

Penyata kawalan dalaman anak-anak syarikat perbankan dan takaful diluluskan oleh Jawatankuasa Audit dan Lembaga Pengarah masing-masing.

PROSES KAwALAN DALAMAN UTAMA

• Pengurusan RisikoBHB telah mendapatkan khidmat profesional bagi membantu pengkajian tersebut daripada rangka kerja pengurusan risiko perniagaan kumpulannya dengan tujuan untuk memformalkan proses mengenal pasti, menilai, mengurus dan memantau risiko utama yang dihadapi di Kumpulan. Pada 26 Mei 2008, Lembaga Pengarah BHB telah meluluskan Rangka Kerja Pengurusan Risiko perniagaan yang kini sedang dalam proses pelaksanaan.

Meskipun demikian, anak-anak syarikat perbankannya mempunyai rangka kerja pengurusan risiko yang kukuh yang menyediakan asas untuk menguruskan risiko yang berkaitan dengan perniagaan perbankan. Ini termasuklah pengurusan risiko kredit, risiko pasaran, risiko operasi, risiko syariah dan risiko kecairan.

Bagi anak syarikat takaful, pihak pengurusan sedang mengambil langkah untuk mempertingkatkan proses pengurusan risikonya dalam bidang operasi, kewangan dan bidang-bidang yang lain. Pengurusan juga mengambil langkah yang perlu untuk menangani isu atau risiko kawalan kewangan, yang meliputi usaha mengukuhkan proses penutupan kewangan dan proses penyesuaian serta membentuk pasukan-pasukan yang berdedikasi bagi menangani bidang perakaunan yang khusus.

• Jawatankuasa AuditJawatankuasa Audit BHB dan anak-anak syarikat utamanya mengkaji sendiri isu-isu kawalan dalaman yang dikenal pasti oleh juruaudit dalaman, juruaudit luar, pihak badan kawalselia dan pihak pengurusan serta membincangkan tindakan yang telah/akan diambil, dan sekiranya perlu, menyarankan tindakan selanjutnya untuk menangani isu-isu kawalan dalaman tersebut. Jika terdapat isu yang khusus, pihak pengurusan anak-anak syarikat akan dijemput menghadiri mesyuarat Jawatankuasa Audit BHB untuk berbincang dan membuat pertimbangan.

• Audit DalamanAudit Dalaman anak syarikat utamanya melapor kepada Jawatankuasa Audit dalam setiap anak syarikat tersebut. Pelan audit dikaji dan diluluskan oleh Jawatankuasa Audit anak syarikat masing-masing dan penemuan audit diserahkan kepada Jawatankuasa Audit untuk dikaji dalam mesyuarat mereka yang diadakan secara berkala.

082


g hStatement on Internal Control

The Board recognises the importance of maintaining a sound system of internal control and risk management practices to ensure good corporate governance. The Board affirms its responsibilities for reviewing the adequacy and integrity of the Group’s system of internal control, including the review of its effectiveness.

As with any internal control system, the Group’s system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives. As such, the system can only provide reasonable but not absolute assurance against material misstatement or loss.

The process of identifying, evaluating and managing the significant risks faced by the Group is an on-going process and includes reviewing and updating the internal controls system when there are changes to business environment, operations or regulatory guidelines.

The banking and takaful subsidiaries’ statement on internal control are approved by their respective Audit Committee and Board.

KEY INTERNAL CONTROL PROCESSES

• Risk ManagementBHB has engaged a professional service provider to assist the review of its group enterprise risk management framework with the objective of formalising the process of identifying, evaluating, managing and monitoring the significant risks faced at the Group. The Board of Directors of BHB had on 26 May 2008 endorsed the Enterprise Risk Management Framework and is currently in the process of implementation.

Notwithstanding the above, its banking subsidiary has an established risk management framework which provides the foundation to manage the risks associated with its banking business. This includes the management of credit risk, market risk, operational risk, syariah risk and liquidity risk.

For the takaful subsidiary, the management is taking steps to improve its risk management process in the areas of operational, financial and other areas. The management is also taking measures to address the financial control issues or risks, which include strengthening the financial closing process and reconciliation process and setting up dedicated teams to address specific accounting areas.

• Audit CommitteeThe Audit Committees of BHB and its major subsidiaries review internal control issues identified by the respective internal auditors, external auditors, regulatory authorities and the management themselves, and deliberate on the actions taken/to be taken, and when necessary, recommend further actions to address the internal control issues. Where there are specific issues, management of the subsidiaries are invited to BHB Audit Committee meeting for discussion and deliberation.

• Internal AuditThe Internal Audit of its major subsidiaries reports to the respective subsidiaries’ Audit Committee. The audit plans are reviewed and approved by the respective subsidiaries’ Audit Committees and the audit findings are submitted to the Audit Committees for review at their periodic meetings.

083


g hPenyata Kawalan Dalaman

• Kawalan Dalaman• BHB dan anak-anak syarikatnya mempunyai struktur organisasi dengan tanggungjawab yang jelas. Pelbagai jawatankuasa

pengurusan dibentuk oleh anak-anak syarikat utamanya bagi membantu Lembaga masing-masing dalam menjalankan urusan syarikat.

• BHB mempunyai wakil Lembaga Pengarah dalam setiap anak syarikat.

• Had kuasa, dasar dan prosedur didokumenkan dengan sewajarnya.

• Pelan perniagaan dan belanjawan anak-anak syarikat utama diluluskan oleh Lembaga Pengarah masing-masing. Prestasi dinilai berdasarkan belanjawan dan penerangan diberikan kepada Lembaga masing-masing dan Lembaga BHB dari semasa ke semasa jika terdapat perbezaan yang ketara.

• Anak-anak syarikat mempunyai garis panduan dalam pengambilan pekerja, pemberhentian, penilaian prestasi dan latihan. Anak-anak syarikat juga mempunyai kod tatacara/etika yang menerangkan perlakuan yang diharapkan daripada pekerja.

• Anak syarikat dalam Kumpulan mengakui bahawa teknologi maklumat adalah penting dalam menyokong kecekapan dan sistem penyediaan perkhidmatan mereka. Sehubungan itu, anak syarikat perbankan dan takaful BHB telah membuat pelaburan besar dalam teknologi bagi mempertingkatkan kecekapan operasi perniagaan dan memudahkan pelaksanaan rangka kerja modal berdasarkan risiko.

• Kumpulan sedang melaksanakan penstrukturan semula operasi dan sedang menyusun inisiatif strategik untuk memperkemaskan perniagaan dan operasi serta memanfaatkan sinergi yang dijangka dalam Kumpulan.

084


Statement on Internal Controlg h

• Internal Control• BHB and its subsidiaries have organisational structures with clear lines of responsibility. Various management committees

are established by the major subsidiaries to assist their respective Boards in the conduct of the companies’ business.

• BHB has Board representations in all the subsidiaries.

• Limits of authority, policies and procedures are documented.

• The major subsidiaries’ business plans and budgets are approved at their respective Boards. The performance is assessed against the budgets and explanations are provided for significant variances on a regular basis to the respective Boards and BHB Board.

• There are guidelines within the subsidiaries for hiring, termination, performance appraisals and training. Subsidiaries also have code of conduct/ethics which express the conduct expected of their employees.

• Subsidiaries within the Group recognise that IT is key to support their service efficiency and delivery system. In this regard, BHB’s banking and takaful subsidiaries have invested substantially in technology in order to enhance the efficiency of their business operations and to facilitate the implementation of their risk-based capital framework.

• The Group is undergoing operational restructuring. It is putting in place strategic initiatives to streamline businesses and operations and to take advantage of anticipated synergies within the Group.

085


Maklumat Pematuhan Tambahang h

1 Pembelian Balik Saham BHB tidak membeli sebarang sahamnya pada tahun kewangan berakhir 30 Jun 2008.

2 Perlaksanaan Opsyen, waran atau Urusan Sekuriti Boleh Tukar BHB tidak menerbitkan sebarang Opsyen, Waran atau sebarang sekuriti boleh ditukar bagi tahun kewangan berakhir

30 Jun 2008.

3 American Depository Receipt (ADR) atau Global Depository Receipt (GDR) BHB tidak menaja sebarang program ADR atau GDR pada tahun kewangan berakhir 30 Jun 2008.

4 Yuran bukan audit Jumlah yuran bukan audit yang telah/perlu dibayar oleh BHB kepada juruaudit luar dan syarikat-syarikat berkaitan

mereka bagi tahun kewangan berakhir 30 Jun 2008 dinyatakan dalam Nota 30 di muka surat 144 dalam Laporan Tahunan ini.

5 Jaminan Keuntungan Tiada jaminan keuntungan telah diberi oleh BHB pada tahun kewangan yang diulas.

6 Senarai Hartanah Senarai hartanah dibentangkan di muka surat 168 hingga 177 dalam Laporan Tahunan ini.

7 Kontrak-kontrak Penting BHB dan kesemua anak syarikatnya tidak memeterai sebarang kontrak penting sepanjang tahun kewangan berakhir

30 Jun 2008 selain daripada yang berkaitan dengan urusan perniagaan mereka yang lazim.

8 Sekatan dan/atau Denda yang Dikenakan Tiada sekatan dan/atau denda yang telah dikenakan oleh badan-badan kawalselia yang berkaitan ke atas Syarikat dan

syarikat-syarikat subsidiari, para Pengarah atau Pengurusannya yang timbul daripada sebarang pelanggaran peraturan/garis panduan/undang-undang pada tahun kewangan yang ditinjau.

9 Perbezaan Keputusan Tiada perbezaan keputusan (perbezaan sebanyak 10% atau lebih) berbanding mana-mana keuntungan ramalan/unjuran

anggaran keputusan tidak diaudit yang diumumkan. 10 Mandat Am

Pada AGM yang lalu, Kumpulan BHB telah mendapat mandat am daripada para pemegang sahamnya untuk membenarkan BHB dan/atau syarikat-syarikat subsidiarinya dalam pengurusan biasa perniagaan, untuk memeterai urusniaga yang berulangan berbentuk hasil atau perdagangan dengan pihak-pihak berkaitan yang perlu untuk operasi hariannya, atas terma yang tidak lebih memihak kepada pihak berkaitan berbanding secara umumnya tersedia kepada orang ramai dan tidak menjejaskan kepentingan para pemegang saham minoriti (RRPTs). Mandat RRPT sah sehingga tamatnya AGM BHB yang akan datang. Lembaga Pengarah bercadang memperbaharui mandat RRPT pada AGM BHB yang akan datang. Mandat ini, jika diluluskan oleh para pemegang saham, akan sah sehingga tamat AGM Syarikat akan datang.

086


g h

1 Share Buybacks BHB did not purchase any of its own shares during the financial year ended 30 June 2008.

2 Options, warrants or Any Convertible Securities BHB has not issued any Options, Warrants or any convertible securities in respect of the financial year ended 30 June 2008.

3 American Depository Receipt (ADR) or Global Depository Receipt (GDR) BHB has not sponsored any ADR or GDR programme in the financial year ended 30 June 2008.

4 Non-Audit Fees The amount of non-audit fees paid/payable to external auditors and their affiliated companies by BHB for the financial

year ended 30 June 2008 is set out in Note 30 on page 144 of this Annual Report.

5 Profit Guarantee There was no profit guarantees given by BHB during the financial year under review.

6 List of Properties The list of properties is set out on page 168 to 177 of the Annual Report.

7 Material Contracts Neither BHB nor its subsidiaries have entered into any contracts which are material, during the financial year ended 30

June 2008, other than contracts entered into in their ordinary course of business.

8 Imposition of Sanctions and/or Penalties There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or Management arising

from any significant breach of rules/guidelines/legislations by the relevant regulatory bodies during the financial year under review.

9 Variation in Results There was no variation in results (differing by 10% or more) from any profit estimation forecast/projection unaudited

results announced. 10 General Mandate BHB Group had, at the last AGM obtained a general mandate from its shareholders to allow BHB and/or its subsidiaries

in their normal course of business, to enter into recurrent transactions of a revenue or trading nature with related parties which are necessary for its day to day operations, on terms not more favourable to the related party than those available to the general public and not to the detriment of the minority shareholders (RRPTs). The RRPTs Mandate is valid until the conclusion of the forthcoming AGM of the Company. The Board proposes to seek renewal of the RRPTs Mandate at the forthcoming AGM of the Company. This Mandate, if approved by shareholders, would be valid until the conclusion of the next AGM of the Company.

Additional Compliance Information

087


11 Urusniaga Pihak Berkaitan yang Berulangan

Bentuk Urusniaga** Pihak Berkaitan/ Pengarah berkepentingan Nilai Urusniaga Aktiviti Utama dan/atau Pemegang Sebenar bagi tahun Saham Utama berakhir 30 Jun 2008 RM’000

Lembaga Tabung Haji (LTH)• Yuran pembrokeran perlu LTH terlibat terutamanya LTH, pemegang saham utama 321.0

dibayar kepada Kumpulan dalam menggalakkan ahli BHB dengan pegangan sahamBHB. menunaikan ibadat haji ke sebanyak 41.92%.

Mekah dan juga menguruskan• Sewa premis pejabat deposit dan pelaburan mereka. Tan Sri Samsudin bin Osman, 2,236.0

daripada Kumpulan BHB, pengarah nomini LTH dalamBIMB Venture Capital Kumpulan BHB.Sdn. Bhd. dan BIMB Musyarakah Satu Sdn. Bhd. Datuk Ismee bin Ismail, Pengarah Urusan Kumpulan dan Ketua

Pegawai Eksekutif LTH dan juga merupakan pengarah BHB (tiada pegangan saham langsung/ tidak langsung di dalam LTH).

Permodalan Nasional Berhad (PNB)• Yuran pembrokeran perlu PNB terlibat terutamanya PNB, pemegang saham utama 116.0

dibayar kepada BIMB dalam pegangan pelaburan BHB dengan pegangan sahamSecurities Sdn. Bhd. dan peruntukan perkhidmatan sebanyak 6.95%.

perundingan pengurusan. Dato’ Dr Abdul Halim bin Ismail dan Encik Salih Amaran bin Jamiaan, para pengarah nomini PNB dalam Kumpulan BHB.

Amanah Saham Bumiputra (ASB)• Yuran pembrokeran perlu ASB adalah skim dana yang ASB, pemegang saham utama 390.0

dibayar kepada BIMB dimulakan di bawah PNB. BHB dengan pegangan sahamSecurities Sdn. Bhd. sebanyak 17.28%, didaftar di bawah Amanah Raya Nominees (Tempatan) Sdn. Bhd.

ASB adalah syarikat subsidiari milik penuh PNB.


088


Additional Compliance Informationg h

11 Recurrent Related Party Transaction

Nature of Transactions** Related Party/ Interested Director and/or Actual Transactions Principal Activities Major Shareholder for the year ended 30 June 2008 RM’000

Lembaga Tabung Haji(LTH)• Brokerage fees LTH is principally involved LTH is a major shareholder 321.0

payable to BHB Group. in promoting members’ of BHB with 41.92% pilgrimage to Makkah, shareholding. as well as managing their

• Rental of office premises deposits and investment. Tan Sri Samsudin bin Osman, 2,236.0payable from BHB Group, being a nominee director ofBIMB Venture Capital LTH in BHB Group.Sdn. Bhd. and BIMBMusyarakah Satu Sdn. Bhd. Datuk Ismee bin Ismail, being the Group Managing Director and

Chief Executive Officer of LTH and also a director of BHB Group (has no direct/indirect shareholdings in LTH).

Permodalan Nasional Berhad (PNB) • Brokerage fees payable to PNB is principally involved PNB, being a major shareholder 116.0

BIMB Securities Sdn. Bhd. in investment holding and of BHB with 6.95% provision of management shareholding. consultancy services.

Dato’ Dr Abdul Halim bin Ismail and Encik Salih Amaran bin Jamiaan, being the nominee directors of PNB in BHB Group.

Amanah Saham Bumiputra (ASB)

• Brokerage fees payable to ASB is a fund scheme ASB is a major shareholder of 390BIMB Securities Sdn. Bhd. initiated under PNB. BHB with 17.28%,

registered under Amanah Raya Nominees (Tempatan) Sdn Bhd.

ASB is a wholly-owned subsidiary of PNB.

089



BIMB Securities Sdn. Bhd. (BSSB)• Yuran pembrokeran perlu BSSB terlibat terutamanya Dato’ Dr Abdul Halim bin Ismail, 47.0

dibayar daripada Kumpulan dalam pembrokeran saham Pengarah BHB dan PengarahBHB, STMB, Al-Wakalah dan aktiviti-aktiviti berkaitan Eksekutif BSSB.Nominees (Tempatan) berdasarkan prinsip Shariah.Sdn. Bhd. dan BIMBMusyarakah Satu Sdn. Bhd.

• Yuran pembrokeran perlu 15.0dibayar daripada BIMBSECAsset Management Sdn. Bhd.

• Yuran pengurusan portfolio 0.4perlu dibayar daripadaBIMBSEC AssetManagement Sdn. Bhd.

Bank Islam Malaysia Berhad (BIMB)• Sewa sistem komputer perlu BIMB terlibat terutamanya Dato’ Mohd Bakke bin Salleh, 28,145.0

dibayar kepada Syarikat dalam peruntukan perbankan Datuk Ismee bin Ismail,Al-Ijarah Sdn.Bhd. Islam dan aktiviti-aktiviti Puan Zaiton binti Mohd Hassan,

berkaitan berdasarkan Encik Zahari @ Mohd Zin• Sewa kenderaan bermotor prinsip Shariah. bin Idris dan Encik Johan bin 50.0

perlu dibayar kepada Abdullah adalah para pengarah Syarikat Al-Ijarah Sdn.Bhd. BHB dan mereka juga merupakan pengarah BIMB. Mereka tiada

• Sewa peralatan pejabat perlu pegangan saham langsung/dibayar kepada Syarikat tidak langsung dalam kumpulan 138.0Al-Ijarah Sdn.Bhd. BHB.

• Sewa premis pejabat 230.0daripada BIMB Unit TrustManagement Berhad danBIMB Foreign CurrencyClearing Agency Sdn. Bhd.


090



BIMB Securities Sdn. Bhd. (BSSB) • Brokerage fees payable BSSB is principally Dato’ Dr Abdul Halim bin Ismail, 47.0

from BHB Group, involved in the provision being a director of BHB GroupSTMB, Al-Wakalah of stock broking and related and also an Executive DirectorNominees (Tempatan) activities based on the principles of BSSB. Sdn. Bhd. and BIMB of Shariah.Musyarakah Satu Sdn. Bhd.

• Management fees payable 15.0from BIMBSEC AssetManagement Sdn. Bhd.

• Portfolio management fees 0.4payable from BIMBSECAsset ManagementSdn. Bhd.

Bank Islam Malaysia Berhad (BIMB)• Leasing of computer system BIMB is principally Dato’ Mohd Bakke bin Salleh, 28,145

payable to Syarikat Al-Ijarah involved in the provision of Datuk Ismee bin Ismail, Sdn.Bhd. Islamic banking and related Puan Zaiton binti Mohd Hassan, activities based on the principles Encik Zahari @ Mohd Zin bin

• Leasing of motor vehicle of Shariah. Idris and Encik Johan bin Abdullah 50.0payable to Syarikat Al-Ijarah are directors of BHB Group and Sdn.Bhd. they are also directors of BIMB. They have no direct/indirect

• Leasing of office equipment shareholding in BHB Group. 138.0payable to Syarikat Al-IjarahSdn.Bhd.

• Rental of office premises 230.0payable from BIMB UnitTrust Management Berhadand BIMB Foreign CurrencyClearing Agency Sdn. Bhd.


091




• Sewa premis pejabat perlu 153.0dibayar kepada SyarikatAl-Ijarah Sdn. Bhd.

• Yuran pengurusan perlu 325.0dibayar daripada SyarikatAl-Ijarah Sdn. Bhd.,Kumpulan BHB danAl-Wakalah Nominees(Tempatan) Sdn. Bhd.

• Keuntungan dari 4,605.0“subordinated” PembiayaianMudharabah perlu dibayar kepada kumpulan BHB.

• Yuran pengurusan portfolio 84.0perlu dibayar kepadaBIMBSEC AssetManagement Sdn. Bhd.

Yuran Pengurusan adalah yuran yang perlu dibayar kepada BIMBSEC Asset Management Sdn Bhd bagi dana yang diletakkan/dilaburkan dengan mereka oleh Syarikat Kumpulan kami khususnya Kumpulan BHB dan BIMB.

** Bentuk urusniaga – urusniaga sedia ada.

092




• Rental of office premises 153.0payable to Syarikat Al-IjarahSdn. Bhd.

• Management fees payable 325.0from Syarikat Al-IjarahSdn. Bhd., BHB Group andAl-Wakalah Nominees(Tempatan) Sdn. Bhd.

• Profit from subordinated 4,605.0Mudharabah Financingpayable to BHB Group.

• Portfolio Management fees 84.0payable to BIMBSEC AssetManagement Sdn. Bhd.

Management fees are fees payable to BIMBSEC Asset Management Sdn Bhd for the fund placed/invested with them by our Group Companies especially BHB Group and BIMB.

** Nature of transactions – existing transaction

Penyata KewanganFinancial Statements

g h

Directors’ Report 094

Balance Sheets 099

Income Statements 100

Consolidated Statement of Changes in Equity 101

Statement of Changes in Equity 103

Cash Flow Statements 104

Notes to the Financial Statements 106

Statement by Directors 162

Report of the Shariah Supervisory Council 163

Statutory Declaration 165

Independent Auditors’ Report 166

094


g hDirectors’ Report

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the year ended 30 June 2008.

PrinciPal activities

The Company is principally engaged as an investment holding company with business transacted in accordance with Islamic principles, whilst the principal activities of the subsidiaries are as stated in Note 14 to the financial statements.

There has been no significant change in the nature of these activities during the financial year.

results Group company rM’000 rM’000Profit for the year attributable to:Shareholders of the Company 236,198 13,087Minority interest 197,584 -

433,782 13,087

reserves and Provisions

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

dividends

Since the end of the previous financial year, the Company paid a final ordinary dividend of 2.0 sen per share less tax at 26% totalling RM13,192,571 (1.48 sen net per share) in respect of the financial year ended 30 June 2007 on 4 January 2008.

The final ordinary dividends recommended by the Directors in respect of the year ended 30 June 2008 is 1.45 sen per share less tax at 26% totalling RM9,564,614 (1.07 sen net per share).

Bad and douBtful financinG

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that actions had been taken in relation to the writing off of bad financing and the making of provisions for doubtful financing, and have satisfied themselves that all known bad financing have been written off and adequate provisions had been made for bad and doubtful financing.

At the date of this report, the Directors are not aware of any circumstances that would render the amount written off for bad financing, or amount of the provision for doubtful financing in the financial statements of the Group and of the Company, inadequate to any substantial extent.

for the financial year ended 30 June 2008

095


g h

current assets

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that any current assets, other than financing, which were unlikely to be realised in the ordinary course of business at their values as shown in the accounting records of the Group and of the Company have been written down to their estimated realisable value.

At the date of this report, the Directors are not aware of any circumstances that would render the values attributed to the current assets in the financial statements of the Group and of the Company to be misleading.

valuation Methods

At the date of this report, the Directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company to be misleading or inappropriate.

continGent and other liaBilities

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

(a) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year and which secures the liabilities of any other person, or

(b) any contingent liabilities in respect of the Group and of the Company that has arisen since the end of the financial year other than those incurred in the ordinary course of the banking business.

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

chanGe of circuMstances

At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in this report or the financial statements that would render any amount stated in the financial statements of the Group and of the Company misleading.

iteMs of an unusual nature

Other than as disclosed in the financial statements, the results of the operations of the Group and of the Company for the financial year were not, in the opinion of the Directors, substantially affected by any item, transaction or event of a material and unusual nature.

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature, likely to affect substantially the results of the operations of the Group and of the Company for the current financial year in which this report is made.

Directors’ Report


096


eMPloyee share oPtion scheMe

The Company’s Employee Share Option Scheme (“ESOS”) is governed by the by-laws which were approved by the shareholders of the Court-convened Extraordinary General Meeting held on 31 May 1997 and became effective on 21 August 1997 for a period of five years. At an Extraordinary General Meeting held on 20 August 2002, the shareholders of the Company approved the extension of the ESOS for a further period of five years. The ESOS has expired on 21 August 2007.

The main features of the ESOS were:

(a) Eligible person are employees of the Company who have been confirmed in writing and are in the employment of the Company including full-time Executive Directors.

(b) The total number of shares to be offered shall not exceed 10% of the issued and paid up share capital of the Company at any point of time during the tenure of ESOS.

(c) The option price for each share shall be the average of the mean market quotation of the shares of the Company in the daily official list issued by Bursa Malaysia for the five trading days preceding the date of the offer, or the par value of the share of the Company of RM1, whichever is higher.

(d) The number of shares under the option, the option price and the method of exercise of the options may be adjusted as a result of any alteration of the capital structure of the Company by way of capitalisation of profits or reserve, right issues or reduction of capital, if any, made by the Company while an option remains unexercised.

(e) The movement in the options to take up unissued new ordinary shares of RM1 each and the option price are as follows:

option price at at rM 1.7.2007 Granted lapsed 30.6.2008

2.13 45,868,500 - (45,868,500) - 2.43 5,044,000 - (5,044,000) -

directors

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

Tan Sri Samsudin bin Osman Johan bin Abdullah (appointed on 15 May 2008) Dato’ Mohd Bakke bin Salleh Dato’ Dr. Abdul Halim bin Ismail Zahari @ Mohd Zin bin Idris Salih Amaran bin Jamiaan Zaiton binti Mohd Hassan Datuk Ismee bin Ismail Datuk Hairuddin bin Mohamed Dato’ Noorazman bin Abd. Aziz (resigned on 31 October 2007) Datuk Burhanuddin bin Ahmad Tajudin (resigned on 1 December 2007)



097


directors (cont’d)

The holdings and deemed holdings in the ordinary shares of the Company and of its related corporations (other than wholly-owned subsidiaries) of those who were Directors at year end as recorded in the Register of Directors’ Shareholdings are as follows:-

number of ordinary shares of rM1 each at at 1.7.2007 acquired sold 30.6.2008

Company Dato’ Dr. Abdul Halim bin Ismail 1,400 - - 1,400

number of options over ordinary shares of rM1 each exercise price at at rM 1.7.2007 Granted lapsed 30.6.2008

Dato’ Dr. Abdul Halim bin Ismail 2.13 250,000 - (250,000) -

None of the other Directors holding office at 30 June 2008 had any interest in the ordinary shares of the Company and of its related corporations during the financial year.

directors’ Benefits

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

There was no arrangement during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate, other than share options granted pursuant to the ESOS.

issue of shares and deBentures

There were no changes in the 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 year.

g hfor the financial year ended 30 June 2008

Directors’ Report

098


auditors

The auditors, Messrs KPMG Desa Megat & Co., 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 samsudin bin osman

…………………………………………………………Johan abdullah

Kuala Lumpur,

Date: 28 October 2008



099


The notes on pages 106 to 161 are an integral part of these financial statements.

as at 30 June 2008

g hBalance Sheets

Group company restated 2008 2007 2008 2007 note rM’000 rM’000 rM’000 rM’000

assetsCash and short term funds 3 9,947,185 6,011,713 46,485 25,146Deposits and placements with financial institutions 4 247,036 287,459 - - Securities: Held-for-trading 5 90,749 361,550 - 20,968 Available-for-sale 6 3,451,374 3,460,097 11,807 11,812 Held-to-maturity 7 191,971 181,184 - - Financing, advances and others 8 9,055,028 8,403,285 100,000 100,000Other assets 10 204,700 156,426 631 243Statutory deposit with Bank Negara Malaysia 11 362,151 396,639 - - Current tax assets 10,676 43,847 - 214Asset classified as held for sale 12 39,364 - - -Deferred tax assets 13 105,785 12,902 1,659 - Investments in subsidiaries 14 - - 1,295,231 1,301,686Investments in associates 15 149 149 149 149Property, plant and equipment 16 189,233 145,896 970 399Prepaid lease payments 17 25,181 25,250 - -General Takaful and Family Takaful assets 18 3,661,515 3,064,804 - -

total assets 27,582,097 22,551,201 1,456,932 1,460,617

liabilitiesDeposits from customers 19 20,535,907 17,388,633 - - Deposits and placements of banks and other financial institutions 20 58,443 33,991 - - Bills and acceptances payable 990,448 109,189 - - Other liabilities 21 379,980 341,372 7,239 9,867Liabilities classified as held for sale 12 3,233 - - -Provision for zakat or tax 13,252 7,285 489 - Deferred tax liabilities 13 - - - 1,435 General Takaful and Family Takaful liabilities 18 463,716 429,592 - - General Takaful and Family Takaful participants’ funds 18 3,197,799 2,635,212 - -

total liabilities 25,642,778 20,945,274 7,728 11,302

equity Share capital 23 891,390 891,390 891,390 891,390 Reserves 113,894 29,798 557,814 557,925

total equity attributable to shareholders of the company 1,005,284 921,188 1,449,204 1,449,315 Minority interests 934,035 684,739 - -

total equity 1,939,319 1,605,927 1,449,204 1,449,315

total equity and liabilities 27,582,097 22,551,201 1,456,932 1,460,617

commitments and contingencies 38 9,342,525 8,367,800 - -

100


g hIncome Statementsfor the year ended 30 June 2008

Group company restated 2008 2007 2008 2007 note rM’000 rM’000 rM’000 rM’000

Income derived from investment of depositors’ funds 24 909,108 830,151 - - Income derived from investment of shareholders’ funds 25 517,706 1,028,518 29,828 30,188Reversal/(Allowance) for losses on financing 26 7,547 (20,184) - - Reversal/(Impairment) losses 27 2,163 75,002 (6,455) - Profit equalisation reserve 8,317 (47,921) - - Direct expenses (11,231) (3,810) - -

Total distributable income 1,433,610 1,861,756 23,373 30,188Income attributable to depositors 28 (415,089) (402,415) - -

Total net income 1,018,521 1,459,341 23,373 30,188Personnel expenses 29 (303,072) (270,168) (3,396) (3,511)Depreciation of property, plant & equipment (47,345) (46,752) (216) - Reversal/(Impairment) losses from property, plant & equipment 2,153 (11,424) - - Other overhead expenses 30 (290,642) (208,522) (2,160) (1,802)

operating profit 379,615 922,475 17,601 24,875Finance cost 33 - (13,370) - -

Profit before zakat and tax 379,615 909,105 17,601 24,875Zakat (13,522) (8,094) - - Tax expense 34 67,689 (8,526) (4,514) (6,522)

Profit for the year 433,782 892,485 13,087 18,353

attributable to:Shareholders of the Company 236,198 787,762 13,087 18,353Minority interests 197,584 104,723 - -

Profit for the year 433,782 892,485 13,087 18,353

Group and company

restated

note 2008 2007

Earnings per share (sen): 35 26.50 97.86

Dividend per ordinary share – net (sen) 36 1.48 -


101


Consolidated Statement of Changes in Equityg hfor the year ended 30 June 2008

The

not

es o

n p

ages

106

to 1

61 a

re a

n in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.

A

ttri

buta

ble

to s

hare

hold

er o

f the

Com

pany

N

on-d

istr

ibut

able

s

har

e s

har

e s

tatu

tory

tra

nsla

tion

fai

r va

lue

cap

ital

a

ccum

ulat

ed

M

inor

ity

c

apit

al

pre

miu

m

rese

rve

rese

rve

rese

rve

rese

rve

loss

es

tota

l in

tere

sts

tota

l

Gro

up

n

ote

rM

’000

r

M’0

00

rM

’000

r

M’0

00

rM

‘000

r

M’0

00

rM

’000

r

M’0

00

rM

’000

r

M’0

00

at 1

Ju

ly 2

006

56

2,96

5 59

5,50

5 20

0,53

3 15

,535

(6

,110

) 6,

863

(1,5

18,3

17)

(143

,026

) 17

5,38

3 32

,357

Prio

r ye

ar a

dju

stm

ents

46

(i)

- -

- -

- -

(11,

174)

(1

1,17

4)

- (1

1,17

4)

46

(ii)

-

- -

- -

- (1

5,65

1)

(15,

651)

(6

,849

) (2

2,50

0)

At 1

July

200

6, r

esta

ted

562,

965

595,

505

200,

533

15,5

35

(6,1

10)

6,86

3 (1

,545

,142

) (1

69,8

51)

168,

534

(1,3

17)

Fore

ign

exch

ange

tran

slat

ion

dif

fere

nces

- -

- 21

,760

-

- -

21,7

60

16,8

29

38,5

89N

et lo

ss o

n he

dge

of n

et

inve

stm

ent i

n fo

reig

n

oper

atio

n

- -

- (2

1,99

0)

- -

- (2

1,99

0)

- (2

1,99

0)U

nrea

lised

net

gai

n on

reva

luat

ion

of s

ecur

itie

s

avai

labl

e-fo

r-sa

le

-

- -

- 21

,717

-

- 21

,717

11

,020

32

,737

Net

(los

s)/

gain

rec

ogni

sed

dir

ectl

y in

equ

ity

-

- -

(230

) 21

,717

-

- 21

,487

27

,849

49

,336

Profi

t for

the

year

, res

tate

d

-

- -

- -

- 78

7,76

2 78

7,76

2 10

4,72

3 89

2,48

5To

tal r

ecog

nise

d in

com

e

and

exp

ense

for

the

year

- -

- (2

30)

21,7

17

- 78

7,76

2 80

9,24

9 13

2,57

2 94

1,82

1Tr

ansf

er to

sta

tuto

ry

re

serv

e, r

esta

ted

- -

68,6

71

- -

- (1

20,8

43)

(52,

172)

52

,172

-

Tran

sfer

to c

apit

al r

eser

ve

-

-

- -

- 63

1,50

7 (6

31,5

07)

- -

- D

ivid

end

s to

min

orit

y

inte

rest

s

-

- -

- -

- -

- (3

,728

) (3

,728

)M

inor

ity

inte

rest

s’

subs

crip

tion

of s

hare

s

of a

sub

sid

iary

com

pany

- -

- -

- -

- -

387,

019

387,

019

Acq

uisi

tion

of s

hare

s he

ld

by m

inor

ity

inte

rest

s of

a

subs

idia

ry

-

- -

- -

- -

- (5

3,76

6)

(53,

766)

Shar

es is

sued

328,

425

7,47

3 -

- -

- -

335,

898

- 33

5,89

8

at 3

0 Ju

ne

2007

891,

390

602,

978

269,

204

15,3

05

15,6

07

638,

370

(1,5

09,7

30)

923,

124

682,

803

1,60

5,92

7

102


g hConsolidated Statement of Changes in Equity

for the year ended 30 June 2008

The

not

es o

n p

ages

106

to 1

61 a

re a

n in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.

A

ttri

buta

ble

to s

hare

hold

er o

f the

Com

pany

N

on-d

istr

ibut

able

s

har

e s

har

e s

tatu

tory

tra

nsla

tion

fai

r va

lue

cap

ital

a

ccum

ulat

ed

M

inor

ity

c

apit

al

pre

miu

m

rese

rve

rese

rve

rese

rve

rese

rve

loss

es

tota

l in

tere

sts

tota

l

Gro

up

n

ote

rM

’000

r

M’0

00

rM

’000

r

M’0

00

rM

‘000

r

M’0

00

rM

’000

r

M’0

00

rM

’000

r

M’0

00

at 1

Ju

ly 2

007

89

1,39

0 60

2,97

8 32

6,17

7 15

,305

15

,607

63

8,37

0 (1

,476

,146

) 1,

013,

681

645,

681

1,65

9,36

2Pr

ior

year

ad

just

men

ts

46(i

) -

- (5

6,97

3)

- -

- (1

7,29

9)

(74,

272)

44

,270

(3

0,00

2)

46

(ii)

-

- -

- -

- (1

6,28

5)

(16,

285)

(7

,148

) (2

3,43

3)

At 1

July

200

7, r

esta

ted

891,

390

602,

978

269,

204

15,3

05

15,6

07

638,

370

(1,5

09,7

30)

923,

124

682,

803

1,60

5,92

7

Fore

ign

exch

ange

tran

slat

ion

dif

fere

nces

- -

- 9,

090

- -

- 9,

090

8,25

6 17

,346

Net

loss

on

reva

luat

ion

of

sec

urit

ies

av

aila

ble-

for-

sale

- -

- -

(55,

826)

-

- (5

5,82

6)

(53,

633)

(1

09,4

59)

Net

gai

n/(l

oss)

rec

ogni

sed

dir

ectl

y in

equ

ity

-

- -

9,09

0 (5

5,82

6)

- -

(46,

736)

(4

5,37

7)

(92,

113)

Profi

t for

the

year

- -

- -

- -

236,

198

236

,198

19

7,58

4 43

3,78

2To

tal r

ecog

nise

d in

com

e

and

exp

ense

for

the

year

- -

- 9,

090

(55,

826)

-

236,

198

189,

462

152,

207

341,

669

Tran

sfer

to s

tatu

tory

res

erve

- -

97,9

50

- -

- (1

92,0

59)

(94,

109)

94

,109

-

Min

orit

y in

tere

sts’

su

bscr

ipti

on o

f sha

res

of

a

subs

idia

ry c

ompa

ny

-

- -

- -

- -

- 6,

329

6,32

9D

ivid

end

to s

hare

hold

ers

36

- -

- -

- -

(13,

193)

(1

3,19

3)

- (1

3,19

3)D

ivid

end

to m

inor

ity

in

tere

st

-

- -

- -

- -

- (1

,413

) (1

,413

)

at 3

0 Ju

ne

2008

891,

390

602,

978

367,

154

24,3

95

(40,

219)

63

8,37

0 (1

,478

,784

) 1,

005,

284

934,

035

1,93

9,31

9

The

Sta

tuto

ry r

eser

ve is

mai

ntai

ned

in c

ompl

ianc

e w

ith

the

prov

isio

ns o

f the

Isla

mic

Ban

king

Act

, 198

3 an

d is

not

dis

trib

utab

le a

s ca

sh d

ivid

end

s.

The

Cap

ital

res

erve

aro

se o

ut o

f th

e is

suan

ce o

f bo

nus

issu

e in

a s

ubsi

dia

ry o

f R

M6,

863,

000

and

gai

n ar

isin

g fr

om t

he d

iluti

on o

f in

tere

st in

a s

ubsi

dia

ry o

f R

M63

1,50

7,00

0 an

d is

not

dis

trib

utab

le a

s ca

sh d

ivid

end

s.

103


g hStatement of Changes in Equityfor the year ended 30 June 2008

share share fair value accumulated

capital premium reserve losses total

company note rM’000 rM’000 rM’000 rM’000 rM’000

at 1 July 2006 562,965 596,157 290 (63,841) 1,095,571Unrealised net loss on revaluation of securities available-for-sale - - (507) - (507)Net profit for the year - - - 18,353 18,353Total recognised income and expense for the year - - (507) 18,353 17,846Shares issued 23 328,425 7,473 - - 335,898

at 30 June 2007 891,390 603,630 (217) (45,488) 1,449,315Unrealised net loss on revaluation of securities available-for-sale - - (5) - (5)Net profit for the year - - - 13,087 13,087Total recognised income and expense for the year - - (5) 13,087 13,082Dividend to shareholders 36 - - - (13,193) (13,193)

at 30 June 2008 891,390 603,630 (222) (45,594) 1,449,204


104


g hCash Flow Statementsfor the year ended 30 June 2008

Group company restated 2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000

cash flows from operating activities Profit before zakat and taxation 379,615 909,105 17,601 24,875 Adjustments for: Depreciation of property, plant and equipment 47,345 46,752 216 - Amortisation prepaid lease payments 205 - - - (Reversal)/Impairment losses of property, plant and equipment (2,153) 11,424 - - Impairment/(Reversal) losses on securities available-for-sale 10,205 (75,002) - - Reversal of impairment losses on securities held-to-maturity (12,368) - - - Impairment losses on investment in a subsidiary - - 6,455 - Allowance for doubtful debts 1,072 10 - - (Reversal)/Allowance for losses on financing (7,547) 20,184 - - Allowance for diminution in value of investments (580) (1,242) - - Dividend from securities (6,946) (2,408) (23,145) (11,898) Net (gain)/loss on disposal of investments - - (1,652) (1,725) Loss/(gain) on disposal of property, plant and equipment 137 (20) - - Gain on disposal of associate - (950) - - Gain on dilution of interest in a subsidiary - (631,507) - - Net loss/(gain) on sale of securities held-for-trading 7,867 (10,900) - - Net gain on sale of securities available-for-sale (21,504) (2,730) - - Accretion of discount less amortisation of premium (28,272) (71,882) - - Goodwill written off - 2,450 - - Property, plant and equipment written off 896 11,613 - -

Operating profit/(loss) before working capital changes 367,972 204,897 (525) 11,252 Changes in working capital: Deposits and placements of banks and other financial institutions 24,452 (29,037) - - Financing of customers (644,196) 177,918 - - Statutory deposits with Bank Negara Malaysia 34,488 63,217 - - Other receivables (78,429) (69,350) (95) (205) Deposits from customers 3,147,274 3,240,040 - - Other payables 41,841 13,747 (2,192) (3,803) Bills payable 881,259 8,270 - -

Cash generated from/(used in) operations 3,774,661 3,609,702 (2,812) 7,244 Zakat paid (9,620) (4,373) - - Income taxes paid (20,336) (39,001) (6,904) (4,738) Tax refund 24,122 - - -

net cash generated from/(used in) operating activities 3,768,827 3,566,328 (9,716) 2,506

105


g hCash Flow Statements


cash flows from investing activities Acquisition of shares in a subsidiary company - - - (46,942) Net proceeds from disposal/(purchase) of securities 203,930 (1,186,087) 22,620 (3,716) Purchase of property, plant and equipment (98,831) (56,784) (787) (399) Proceeds from disposal of property, plant and equipment 6,406 187 - 667 Proceeds from disposal of associate - 950 - - Dividend from securities 6,946 2,408 23,145 11,898

net cash generated from/(used in) investing activities 118,451 (1,239,326) 44,978 (38,492)

cash flows from financing activities Dividend paid (14,606) (3,728) (13,193) - Proceeds from issuance of new ordinary shares - 335,898 - 328,385 Acquisition of minority shareholders - (56,992) - - Issuance of shares of a subsidiary to minority shareholders 6,329 1,018,526 - - Advances (to)/from subsidiaries - - (730) 142 Repayment of advance from a corporate shareholder - (280,000) - (280,000)

net cash (used in)/generated from financing activities (8,277) 1,013,704 (13,923) 48,527

net increase in cash and cash equivalents 3,879,001 3,340,706 21,339 12,541

cash and cash equivalents at the beginning of year 6,299,172 2,941,854 25,146 12,605

foreign exchange differences 16,048 16,612 - -

cash and cash equivalents at the end of year 10,194,221 6,299,172 46,485 25,146

cash and cash equivalents comprise:

Cash and short term funds 9,947,185 6,011,713 71 92 Deposits and placements with financial institutions 247,036 287,459 46,414 25,054

10,194,221 6,299,172 46,485 25,146

for the year ended 30 June 2008


106


BIMB Holdings Berhad is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board of Malaysia Securities Exchange Berhad. The address of its registered office and principal place of business are as follows:

registered office and principal place of business Level 18, Menara Yayasan Tun Razak,200 Jalan Bukit Bintang,55100 Kuala Lumpur.

The consolidated financial statements as at and for the year ended 30 June 2008 comprise the Company and its subsidiaries (together referred to as the Group) and the Group’s interest in associates. The financial statements of the Company as at and for the year ended 30 June 2008 do not include other entities.

The Company is principally engaged in investment holding activities while the other Group entities are primarily involved in Islamic banking business, provision of stockbroking and managing family and general takaful businesses.

The financial statements were approved by the Board of Directors on 28 Octorber 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 applicable approved Financial Reporting Standards (FRS) issued by the Malaysian Accounting Standards Board (MASB) as modified by Bank Negara Malaysia Guidelines, accounting principles generally accepted in Malaysia, the provisions of the Companies Act, 1965 and Shariah requirements.

The accounting policies adopted by the Group and the Company are consistent with those adopted in the previous year except for adoption of the new and revised FRSs issued by MASB that are effective for the financial period beginning on 1 July 2007 as follows:-

FRS 117, LeasesFRS 124, Related Party Disclosures

Other than the expanded disclosure requirements as shown in Note 17 and Note 37, the adoption of FRS 117 and FRS 124 does not have any significant financial impact on the Group and the Company.

FRS 139, Financial Instruments: Recognition and Measurement, which the effective date is 1 January 2010, has not been adopted by the Group and the Company. The impact of applying FRS 139 on the financial statements upon first adoption as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of the exemption given in FRS 139.103AB.

Notes to the Financial Statementsg h

107


1. Basis of PreParation (cont’d)

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following assets as explained in their respective accounting policy notes:

• Securities held-for-trading• Securities available-for-sale• Derivatives financial instruments

(c) functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated.

(d) use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect 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 are recognised in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following note:

• Note 2 (e) – allowance for bad and doubtful financing• Note 13 – recognition of deferred tax assets

2. siGnificant accountinG Policies

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

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account.

The financial statements of subsidiaries are included in the consolidated 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.

g hNotes to the Financial Statements

108


2. siGnificant accountinG Policies (cont’d)

(a) Basis of consolidation (cont’d)

(ii) Associates

Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies.

Associates are accounted for in the consolidated financial statements using the equity method. The consolidated financial statements include the Group’s share of the profit or loss of the equity accounted associates, after adjustments, if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.

When the Group’s share of losses exceeds its interest in an equity accounted associate, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued 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.

(iii)ChangesinGroupcomposition

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

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

The Group treats all other changes in group composition as equity transactions between the Group and its minority 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)Minorityinterest

Minority interest at the balance sheet date, being the portion of the net identifiable assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and statement of changes in equity within equity, separately from equity attributable to the equity shareholders of the Company. Minority interest in the results of the Group are presented on the face of the consolidated income statement as an allocation of the total 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 extent that the minority has a binding obligation to, and is able to, make additional investment to cover the losses. If the subsidiary subsequently reports profits, the Group’s interest is allocated with all such profits until the minority’s share of losses previously absorbed by the Group has been recovered.


109



(a) Basis of consolidation (cont’d)

(v) Transactionseliminatedonconsolidation

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

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

(b) foreign currency

(i) Foreigncurrencytransactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transaction.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statement.

(ii) OperationsdenominatedinfunctionalcurrenciesotherthanRinggitMalaysia

The assets and liabilities of operations in functional currencies other than RM, including goodwill and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the balance sheet date. The income and expenses of foreign operations are translated to RM at average exchange rates for the year.

All resulting exchange differences are taken to the foreign currency translation reserve within equity. On disposal, accumulated translation differences are recognised in the consolidated income statement as part of the gain or loss on sale.

(iii)Netinvestmentinforeignoperations

Exchange differences arising from monetary items that in substance form part of the Group’s net investment in foreign operations, where that monetary item is denominated in either the functional currency of the reporting entity or the foreign operations are taken to the foreign currency translation reserve within equity in the Group’s financial statements. Exchange differences are only released to the income statement upon disposal of the foreign operations.


110



(c) intangible assets

(i) Goodwill

Goodwill arises on the acquisition of subsidiaries and associates.

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

Goodwill is measured at cost and tested for impairment at least annually or more frequently when there is objective evidence of impairment.

Goodwill is allocated to cash-generating units and is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired.

In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment. The entire carrying amount of the investment is tested for impairment when there is objective evidence of impairment.

(ii) Acquisitionofminorityinterest

Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the cost of the additional investment over the carrying amount of the net assets acquired at the date of exchange.

(d) derivative financial instruments

The Group holds derivative financial instruments to hedge its foreign currency exposure.

Foreign exchange trading positions, including spot and forward contracts, are revalued at prevailing market rates at balance sheet date and the resultant gains and losses for the financial year are recognised in the income statement.

(e) financing

Financing is stated after deducting the allowance for losses on financing.

Allowanceforbadanddoubtfulfinancing

Specific allowances are made for bad and doubtful financing, which have been individually reviewed and specifically identified as bad and doubtful.

A general allowance based on a percentage of the financing portfolio (net of specific allowance for bad and doubtful financing) is also made. These percentages are reviewed annually in the light of past experiences and prevailing circumstances and an adjustment is made to the overall general allowance, if necessary.

An uncollectible financing or portion of a financing classified as bad is written off after taking into consideration the realisable value of collateral, if any, when in the judgement of the management, there is no prospect of recovery.

Allowances for bad and doubtful financing are computed in conformity with BNM GP3 (September 1998).


111



(f) securities

The holdings of the securities portfolio of the Group and the Company are recognised based on the following categories and consequently their valuation methods:

(i) Securitiesheld-for-trading

Securities are classified as held-for-trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term or it is part of a portfolio of identified securities that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. Securities classified as held-for-trading will be stated at fair value and any gain or loss arising from a change in the fair value will be recognised in income statement.

(ii)Securitiesavailable-for-sale

Available-for-sale securities are securities that are not classified as held-for- trading or held-to-maturity and are measured at fair value. Securities in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are stated at cost. Any gain or loss arising from a change in the fair value is recognised directly in equity through the statement of changes in equity until the securities are sold, disposed off or impaired, at which time the cumulative gains or losses previously recognised in equity will be transferred to income statement. Profit from the available-for-sale securities is recognised in the income statement.

(iii)Securitiesheld-to-maturity

Held-to-maturity securities are securities with fixed or determinable payments and fixed maturity that the Company has the positive intention and ability to hold to maturity. These securities are measured at amortised cost using the effective profit method. A gain or loss is recognised in the income statement when the securities are derecognised or impaired, as well as amortisation of premium and accretion of discounts.

(g) Property, plant and equipment

(i) Recognitionandmeasurement

All items of property and equipment are stated at cost less accumulated depreciation and impairment losses, if any.

Property and equipment retired from active use and held for disposal are stated at the carrying amount at the date when the asset is retired from active use, less impairment losses, if any.


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

(i) Recognitionandmeasurement(cont’d)

Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of materials and direct labour. Purchased software that is integral to the functionality of the related 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 fair value at acquisition date. The fair value of property is the estimated amount for which a property could be exchanged between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value of other items of plant and equipment is based on the quoted market prices for similar items.

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

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

(ii) Subsequentcosts

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and 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 statement as incurred.

(iii)Depreciation

Depreciation is recognised in the income statements on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use.

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

• Buildings 99 years• Building improvement and renovations 6 years• Furniture, fixtures and fittings 2 - 6 years• Office equipment 2 - 6 years• Motor vehicles 4 years• Computer equipment and software 2 - 6 years

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


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(h) impairment

The carrying amounts of assets except for financial assets (other than securities held-to-maturity and available-for-sale) are reviewed at each reporting date to determine whether there is any indication of impairment.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statements. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units 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 recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to the income statement in the year in which the reversals are recognised.

(i) Bills and other receivables

Bills and other receivables are stated at cost less allowance for doubtful debts.

(j) cash and cash equivalents

Cash and cash equivalents include cash and short-term funds, and deposits and placements with banks and other financial institutions.

(k) Bills and acceptances payable

Bills and acceptances payable represent the Group’s own bills and acceptances rediscounted and outstanding in the market.

(l) liabilities

Deposits from customers and deposits and placements of banks and financial institutions are stated at placement values.

Other payables are measured initially and subsequently at cost. Other payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity.


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(m) leased assets

Leasehold land that normally has an indefinite economic life and the title is not expected to be passed to the lessee by the end of the lease term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted for as prepaid lease payments.

The Group had previously classified a lease of land as finance lease and had recognised the amount of prepaid lease payments as property and equipment. On adoption of FRS 117, Leases, the Group treats such a lease as an operating lease, with the unamortised carrying amount classified as prepaid lease payments in accordance with the transitional provisions in FRS 117.67A. The prepaid lease payments are amortised on a straight-line basis over the lease term.

(n) family takaful fund Included in Family Takaful Fund is fund arising from:-

i) Family Takaful;ii) Group Family Takaful; andiii) Family Retakaful Funds.

The Family Takaful Fund is maintained in accordance with the requirements of the Takaful (Amendment) Act, 1984 and includes the amounts attributable to participants which represents the participants’ share of the return on the investments and are distributable in accordance with the terms and conditions prescribed by the Group.

The surplus transferable from the Family Takaful Fund to the income statement is based on the surplus determined by an annual actuarial valuation of the long term liabilities to the participants.

Contributions income

Contribution is recognised as soon as the amount of the contribution can be reliably measured. Initial contribution is recognised from inception date and subsequent contribution is recognised when it is due. For Individual family takaful contribution, recognition is up to the extent of one due amount.

At the end of each financial period, all due contributions are accounted for to the extent that they can be reliably measured.

Investment-linked business

Investments of investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue account.


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(n) family takaful fund (cont’d)

Actuarial reserve

Actuarial reserves comprises the unearned contribution reserves and the reserve computed under the net contribution valuation as explained below :

(i) Unearnedcontributionreserve

The Unearned Contributions Reserve (UCR) of group family fund (except for Mortgage Reducing Term Takaful (“MRTT” as detailed below) products) and family retakaful fund represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial year.

In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows:

(a) 1/365th method for all group family takaful business within Malaysia.

(b) A pro-rata basis based on a time apportionment method for family retakaful business. (ii) Netcontributionvaluation

The actuarial liability for MRTT products managed under group family fund and Participants’ Special Account (PSA) are calculated using net contribution method of valuation (“NCV”). The liability is ascertained by deducting the present value of future net contribution from the present value of the future amount-at-risk. As with all projections, there are elements of uncertainty and the projected liability may be different from actual.

These uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.

Provision for outstanding claims

Claims and settlement costs that are incurred during the financial year are recognised when a claimable event occurs and/or the Takaful operator is notified.

Claims and provisions for claims arising on family and group family Takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose; the benefits payable under a family Takaful certificates are recognised as follows:

(i) maturity or other policy benefit payments due on specified dates are treated as claims payable on the due dates; and

(ii) death, surrender and other benefits without due dates are treated as claims payable, on the date of receipt of intimation of death of the participant or occurrence of contingency covered.


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(n) family takaful fund (cont’d)

Provision for outstanding claims (cont’d)

(iii) for group health business, provision is made for the cost of claims, together with related expenses, incurred but not reported (“IBNR”) at balance sheet date, using a mathematical method of estimation by a qualified actuary where historical claims experience are used to project future claims. As with all projections, there are elements of uncertainty and the projected claim may be different from actual.

(o) General takaful fund

The General Takaful Fund is maintained in accordance with the Takaful Act, 1984 (amendment). Included in General Takaful fund is fund arising from:

(i) General Takaful;(ii) Asean Takaful Group (“ATG”) retakaful pool; and(iii) General Retakaful Funds.

The general Takaful underwriting results are determined for each class of Takaful business after taking into account retakaful, unearned contributions, claims incurred and management expenses.

Contributions income

Contributions are recognised in a financial period in respect of risks assumed during that particular financial period based on the inception date. Inward treaty retakaful contributions are recognised on the basis of periodic advices received from ceding takaful operators.

Unearned contributions reserve (“UCR”)

The UCR represents the portion of the net contributions of Takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial year.

In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows:

(i) 1/365th method for all general Takaful business within Malaysia.

(ii) 1/8th method for all classes of General Treaty Inward Takaful business.

Provision for outstanding claims

A liability for outstanding claims is recognised in respect of direct Takaful business. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries, if any, to settle the present obligation at the balance sheet date. Any difference between the current estimated cost and subsequent settlement is dealt with in the Takaful revenue account for the Group in the year in which the settlement takes place.


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(o) General takaful fund (cont’d)

Provision for outstanding claims (cont’d)

Provision is also made for the cost of claims, together with related expenses, incurred but not reported (“IBNR”) at balance sheet date, using a mathematical method of estimation by a qualified independent actuary where historical claims experience are used to project future claims. As with all projections, there are elements of uncertainty and the projected claim may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.

(p) Profit equalisation reserve (“Per”)

PER refers to the amount appropriated out of or written back to the total gross income to reduce the fluctuations in the profit rates payable to the depositors. It is in conformity with ‘The Framework of the Rate of Return’ or BNM/GP2-i issued by Bank Negara Malaysia. PER is reflected under other liabilities of the Bank.

(q) share capital

Ordinary shares are classified as equity in the balance sheet. Cost directly attributable to the issuance of new equity shares are taken to equity as a deduction from the proceeds.

(r) income recognition

Financeincome

Finance income is recognised on an accrual basis.

Income on cash line, house and term financing is accounted for on a constant rate of return basis by reference to the rest periods as stipulated in the financing agreement.

Where a financing account becomes non-performing, profit accrued and recognised as income prior to the date the account is classified as non-performing is reversed out of income. Thereafter, profit on the non-performing financing shall only be recognised as income on a cash basis. Income is not recognised on customers’ accounts where repayments are in arrears for more than six months from the first day of default for financing, cash line and advances; and three months from the first day of default for trade bills, credit cards, bankers acceptances, trust receipts and other instruments of similar nature.

Feeandotherincomerecognition

Financing arrangement, management and participation fees, underwriting commissions and brokerage fees are recognised as income based on contractual arrangements. Guarantee fee is recognised as income upon issuance of the guarantee. Fees from advisory and corporate finance activities are recognised net of service taxes and discounts on completion of each stage of the assignment.

Dividend income from subsidiary and associated companies and other investments are recognised when the Company’s rights to receive payment is established.


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(s) tax expense

Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except to the extent 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 substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying 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 initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by 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 against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Additional taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend is recognised.

(t) Zakat

This represents business zakat. It is an obligatory amount payable by the Group to comply with the principles of Shariah.

(u) employee benefits

Shorttermemployeebenefits

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured 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 if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the 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 they relate. Once the contributions have been paid, the Group has no further payment obligations.


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(u) employee benefits (cont’d)

Share-based payment transactions

The grant date fair value of options granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest.

The fair value of employee share options is measured using a Black Scholes model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value.

(v) non-current assets held for sale

Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with the Group’s accounting policies. Thereafter generally the assets (or disposal group) are measured at the lower of their carrying amount and fair value less cost to sell. Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities on pro rata basis, except that no loss is allocated to financial assets, deferred tax assets and investment property, which continue to be measured in accordance with the Group’s accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in the income statements. Gains are not recognised in excess of any cumulative impairment loss.


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3. cash and short terM funds

Group company 2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000

Cash and balances with banks and other financial institutions 516,929 400,700 46,485 25,146Money at call and interbank placements with remaining maturity not exceeding one month 9,430,256 5,611,013 - -

9,947,185 6,011,713 46,485 25,146

4. dePosits and PlaceMents with financial institutions

Group 2008 2007 rM’000 rM’000

Licensed banks 72,036 187,459Licensed finance companies 175,000 100,000

247,036 287,459

5. securities held-for-tradinG


at fair value:Quoted securities in Malaysia Shares 34,289 63,390 - 20,968

Quoted securities outside Malaysia Shares 2,001 - - -

36,290 63,390 - 20,968

unquoted securities in Malaysia Malaysian Government Investment Issues - 15,231 - - Bank Negara Negotiable Notes - 99,744 - - Islamic Commercial Papers 29,896 - - - Islamic Debt Securities 24,563 16,909 - - Accepted Bills - 166,276 - -

54,459 298,160 - -

90,749 361,550 - 20,968


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6. securities availaBle-for-sale


at fair value:Quoted securities in Malaysia

Unit trust 16,997 25,955 11,807 11,812 Less: Impairment losses (684) - - -

16,313 25,955 11,807 11,812 Shares - 5,448 - -

16,313 31,403 11,807 11,812

at fair value:Quoted securities outside Malaysia

Bond 81,650 17,263 - -

at fair value:unquoted securities in Malaysia

Malaysian Government Investment Issues 825,089 791,304 - - Negotiable Islamic Debt Certificates 339,984 1,385,542 - - Islamic Commercial Papers 201,787 113,715 - - Islamic Debt Securities 1,934,726 827,530 - - Accepted Bills 73,623 233,166 - - Promissory notes 5,604 6,022 - -

3,380,813 3,357,279 - - Less: Impairment losses (45,154) (34,950) - -

3,335,659 3,322,329 - -

at fair value:unquoted securities outside Malaysia

Islamic Development Bank Unit Trust 1,928 1,928 - - Islamic Debt Securities - 69,199 - -

1,928 71,127 - -

at cost:unquoted securities in Malaysia

Unquoted shares 27,525 30,516 - - Less: Impairment losses (14,697) (15,536) - -

12,828 14,980 - -

at cost:unquoted securities outside Malaysia

Unquoted shares 25,858 27,163 - - Less: Impairment losses (22,862) (24,168) - -

2,996 2,995 - -

3,451,374 3,460,097 11,807 11,812


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7. securities held-to-Maturity


at amortised cost:Quoted securities in Malaysia

Islamic Debt Securities - 5,560 - -

unquoted securities in Malaysia Islamic Debt Securities 210,251 206,272 - - Less: Impairment losses (18,280) (30,648) - -

191,971 175,624 - -

191,971 181,184 - -

8. financinG, advances and others

Group restated 2008 2007 rM’000 rM’000

(i) By type Cash line 175,463 135,221 Term financing House financing 5,878,379 5,846,239 Syndicated financing 107,339 162,372 Leasing receivables 208,234 189,640 Bridging financing 242,504 266,224 Personal financing 2,425,401 1,748,069 Other term financing 3,931,500 4,568,644 Staff financing 309,579 295,843 Credit cards 340,100 253,498 Trade bills discounted 1,684,209 1,107,109 Trust receipts 175,518 118,413 Others 452 -

15,478,678 14,691,272 Less: Unearned income (5,026,137) (4,906,263)

10,452,541 9,785,009 Less: Allowance for bad and doubtful financing: - General (169,382) (170,461) - Specific (1,228,131) (1,211,263)

total net financing, advances and others 9,055,028 8,403,285


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8. financinG, advances and others (cont’d)


(ii) By contract Bai’ Bithaman Ajil (deferred payment sale) 5,506,976 5,940,707 Ijarah (operating lease) 243,063 310,177 Ijarah Muntahia Bittamlik/AITAB (finance lease) 30,334 38,891 Mudharabah (profit sharing) 9,249 9,749 Murabahah(cost-plus) 1,848,516 1,219,063 Bai Al-Inah Cash Note 1,583,186 1,261,993 Bai Al-Inah 708,527 442,463 Istisna’ 509,988 545,102 Others 12,702 16,864

10,452,541 9,785,009

(iii) By type of customer Domestic non-bank financial institutions 36,587 25,601 Domestic business enterprise 2,323,618 2,228,181 Small medium industries 1,212,486 1,051,169 Government 108,523 68,135 Individuals 6,739,803 6,380,741 Other domestic entities 29,717 29,521 Foreign entities 1,807 1,661

10,452,541 9,785,009

(iv) By profit rate sensitivity fixed rate House financing 2,895,886 2,464,940 Others 6,896,698 7,320,069

floating rate Others 659,957 -

10,452,541 9,785,009


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8. financinG, advances and others (cont’d)


(v) By sector Agriculture, hunting, forestry and fishing 118,141 227,973 Mining and quarrying 30,679 3,496 Manufacturing 1,166,209 1,265,574 Electricity, gas and water 81,913 87,161 Construction 589,137 678,106 Real estate 51,508 53,835 Purchase of landed property: - Residential 2,863,192 2,822,702 - Non-residential 398,305 444,435 Wholesale, retail trade, restaurants and hotels 519,809 380,842 Transport, storage and communication 82,792 79,096 Finance, insurance and business services 100,227 93,679 Purchase of securities 163,876 213,467 Purchase of transport vehicles 1,505,597 1,767,096 Consumption credit 1,986,070 1,536,369 Community, social and personnel 59,333 59,859 Others 735,753 71,319

10,452,541 9,785,009

company 2008 2007 rM’000 rM’000

Subordinated Mudharabah financing 100,000 100,000

The amount refers to a subordinated Mudharabah financing facility granted to a subsidiary, Bank Islam Malaysia Berhad which is subordinated to all other liabilities of the subsidiary, and matures in year 2010.


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9. non-PerforMinG financinG, advances and others

(i) Movement in the non-performing financing, advances and others


At 1 July 2,192,151 2,302,218 Classified as non-performing during the year 421,526 712,278 Reclassified as performing during the year (67,274) (81,375) Amount recovered (500,307) (392,880) Amount written off (61,403) (307,245) Exchange differences (34,789) (40,845)

At 30 June 1,949,904 2,192,151 Less: Specific allowance (1,228,131) (1,211,263)

Net non-performing financing, advances and others 721,773 980,888

Ratio of net non-performing financing, advances and others to total net financing, advances and others 7.82% 11.44%

(ii) Movement in allowance for bad and doubtful financing


General allowance At 1 July 170,461 168,462 Allowance made during the year - 3,074 Exchange differences (1,079) (1,075)

At 30 June 169,382 170,461

Ratio of net non-performing financing, advances and others to total net financing, advances and others 1.84% 1.99%

specific allowance At 1 July 1,211,263 1,464,594 Allowance made during the year 300,924 270,832 Amount recovered (213,858) (228,208) Amount written off (53,613) (264,230) Exchange differences (16,585) (31,725)

At 30 June 1,228,131 1,211,263


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9. non-PerforMinG financinG, advances and others (cont’d)

(iii) non-performing financing by sector


Agriculture, hunting, forestry and fishing 51,591 74,899 Mining and quarrying 1,959 2,679 Manufacturing 505,000 568,025 Electricity, gas and water 78,507 83,145 Construction 389,522 448,823 Real estate 4,243 4,388 Purchase of landed property: - Residential 257,821 292,072 - Non-residential 150,924 122,426 Wholesale and retail trade and restaurants and hotel 120,835 185,913 Transport, storage and communication 16,091 18,317 Finance, insurance and business services 500 430 Purchase of securities 70,230 181,779 Purchase of transport vehicles 61,019 55,433 Consumption credit 167,252 114,620 Community, social and personal 17,654 19,149 Others 56,756 20,053

At 30 June 1,949,904 2,192,151

10. other assets


Bill receivables 30,056 10,668 - - Clients’ and dealers’ debit balances 6,035 6,858 - - Due from Takaful funds 91,056 36,411 - - Amount due from subsidiaries - - 316 23 Deposits and prepayments 20,260 16,281 315 220Statutory deposits with LOFSA - 100 - - Other receivables* 57,293 86,108 - -

204,700 156,426 631 243

* Other receivables is stated net of allowances for doubtful debts of RM87,148,000 (2007: RM85,871,000).


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11. statutory dePosit with Bank neGara Malaysia

The non-interest bearing statutory deposits are maintained with Bank Negara Malaysia in compliance with Section 37(1)(c) of the Central Bank of Malaysia Act, 1958 (revised 1994), the amount of which are determined as set percentages of total eligible liabilities.

12. disPosal GrouP held for sale

ASEAN Retakaful International (L) Ltd is presented as a disposal group held for sale as efforts to sell the disposal group have commenced. At 30 June 2008, the assets and liabilities of the disposal group are as follows:

Group 2008 note rM’000

assets classified as held for saleProperty, plant and equipment 12.1 210Investments 30,925Receivables, deposits and prepayments 8,229

39,364

liabilities classified as held for salePayables and accruals 3,233

12.1 Property,plantandequipment

Property, plant and equipment held for sale comprise the following: Group 2008 note rM’000

Plant and equipment:Cost 1,654Accumulated depreciation (1,444)

210


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13. deferred tax assets and liaBilities

recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

assets liabilities net 2008 2007 2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Group

Allowances for losses on financing 39,605 - - - 39,605 -Property, plant and equipment - 6,092 (7,528) (2,248) (7,528) 3,844Receivables - 2,996 (14,559) - (14,559) 2,996Tax loss carry-forwards 35,529 1,308 - - 35,529 1,308Unabsorbed capital allowance 20 - - - 20 - Impairment loss 19,059 - - - 19,059 -Provisions 33,659 - - - 33,659 -Other items - 6,174 - (1,420) - 4,754

Tax assets 127,872 16,570 (22,087) (3,668) 105,785 12,902

company

Other items 1,659 - - (1,435) 1,659 (1,435)

unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items:

Group 2008 2007 rM’000 rM’000

Allowances for losses on financing - 170,461Impairment losses 5,542 74,654Unutilised tax losses 109 144,028Unabsorbed capital allowances 11 49,926Other temporary differences 53 7,403

5,715 446,472

The deductible temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is uncertain whether the Group is able to utilise the benefits in the future.


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14. investMents in suBsidiaries

company 2008 2007 rM’000 rM’000

at costQuoted shares in Malaysia 106,986 106,986Unquoted shares in Malaysia 1,351,237 1,351,237

1,458,223 1,458,223Less: Impairment losses (162,992) (156,537)

1,295,231 1,301,686

Market value:Quoted shares in Malaysia 195,784 144,431

Details of the subsidiaries are as follows:

effective ownershipname of company Principal activities interest 2008 2007 % %

Bank Islam Malaysia Berhad Islamic banking 51 51

Subsidiaries of Bank Islam Malaysia Berhad

Bank Islam (L) Ltd Dormant 100 100

BIMB Unit Trust Management Berhad Manager of BIMB Unit Trust Fund 100 100

BIMB Foreign Currency Clearing Foreign currency clearing house 100 100 Agency Sdn. Bhd.

Al-Wakalah Nominees (Tempatan) Sdn. Bhd. Provides nominee services 100 100

BIMB Trust Company (Labuan) Ltd. Provides trust and related services 100 100

Subsidiary of BIMB Trust Company (Labuan) Ltd.

BIMB Offshore Bank Management Dormant 100 100 Services Sdn. Bhd.

Syarikat Takaful Malaysia Berhad Family and general Takaful business 65.72 67.93

Subsidiaries of Syarikat Takaful Malaysia Berhad

ASEAN Retakaful International (L) Ltd^ Offshore retakaful business 42.85 42.85

P.T. Syarikat Takaful Indonesia* # Holding company 38.04 38.04


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14. investMents in suBsidiaries (cont’d)

effective ownershipname of company Principal activities interest 2008 2007 % %

Subsidiaries of P.T. Syarikat Takaful Indonesia

P.T. Asuransi Takaful Umum* # General Takaful business 38.04 38.04

P.T. Asuransi Takaful Keluarga* # Family Takaful business 38.04 38.04

BIMB Securities (Holdings) Sdn. Bhd. Investment holding company 100 100

Subsidiary of BIMB Securities (Holdings) Sdn. Bhd.

BIMB Securities Sdn. Bhd. Stockbroking company 100 100

Subsidiaries of BIMB Securities Sdn. Bhd

BIMSEC Asset Management Sdn. Bhd. Provides investment management 100 100 services

BIMSEC Nominees (Tempatan) Sdn. Bhd Provides nominee services 100 100

BIMSEC Nominees (Asing) Sdn. Bhd. Provides nominee services 100 100

Syarikat Al-Ijarah Sdn. Bhd. Leasing of assets 100 100

Pembiayaan Perumahan Nasional Sdn. Bhd. Dormant 51 51

BIMB Venture Capital Sdn. Bhd. Provides advisory, consultancy 100 100 and related services in investment

BIMB Musyarakah Satu Sdn. Bhd. Venture capital company and 100 100 investment company

* Incorporated in Indonesia. ^ Audited by a firm of auditors affiliated with KPMG Desa Megat & Co.# Audited by a firm of auditors other than KPMG Desa Megat & Co.

During the year, the investment in ASEAN Retakaful International (L) Ltd has been classified as asset held for sale (see note 12).


131


15. investMents in associates


at costUnquoted shares in Malaysia 7,492 7,492 5,019 5,019Less : Share of post-acquisition losses (2,473) (2,473) - - Impairment losses (4,870) (4,870) (4,870) (4,870)

149 149 149 149

The principal activities of the associates, incorporated in Malaysia (unless otherwise stated), and the interest of the Group are as follows:

effective ownershipGroup Principal activities interest 2008 2007 % %

Islamic Banking and Finance Institute Malaysia Sdn. Bhd. Provides training and consultancy services 48.0 48.0

Arabian Malaysian Takaful Company # Health and family Takaful business 17.04 17.04

# Incorporated in Bahrain


132


16. ProPerty, Plant and eQuiPMent

furniture, computerGroup **land fixtures, equipment and and office Motor and building fittings equipment vehicles software totalCost rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

At 1 July 2006 103,314 76,538 126,226 4,068 156,125 466,271Effect of adopting FRS 117 (22,485) - - - - (22,485)

At 1 July 2006, restated 80,829 76,538 126,226 4,068 156,125 443,786Additions 14,029 9,346 22,384 573 10,452 56,784Reclassifications (8,346) 8,916 (2,078) - (2,220) (3,728)Disposals (49) (94) (59) (881) - (1,083) Written off - - (3,969) - (7,644) (11,613)Exchange difference (2,415) (181) 1,075 104 - (1,417)

At 30 June 2007/1 July 2007 84,048 94,525 143,579 3,864 156,713 482,729Additions 18,399 17,515 10,745 179 51,993 98,831Reclassifications (3,234) 21,740 5,257 - (38,459) (14,696)Transfer to assets held for sale (664) (992) - (62) - (1,718)Disposals (391) (5,999) (1,867) (682) - (8,939)Written off (774) (4,490) (494) - - (5,758)Exchange difference 119 (581) (4) (76) - (542)

At 30 June 2008 97,503 121,718 157,216 3,223 170,247 549,907

DepreciationandimpairmentlossAt 1 July 2006 Accumulated depreciation 19,754 45,871 100,838 2,139 111,505 280,107 Accumulated impairment loss 2,153 - - - - 2,153 Effect of adopting FRS 117 (1,049) - - - - (1,049)At 1 July 2006, restated 20,858 45,871 100,838 2,139 111,505 281,211Depreciation of the year, restated 5,890 28,498 11,467 837 60 46,752Impairment loss 11,424 - - - - 11,424Disposals (169) (5) (44) (698) - (916)Exchange difference (2,145) (429) 922 (10) - (1,662)Reclassification 24 - - - - 24

At 30 June 2007/1 July 2007 Accumulated depreciation 22,305 73,935 113,183 2,268 111,565 323,256 Accumulated impairment loss 13,577 - - - - 13,577 35,882 73,935 113,183 2,268 111,565 336,833Depreciation of the year 3,600 20,928 15,164 489 7,164 47,345Reclassification (3,989) 1,111 (3,119) (15) (6,243) (12,255)Transfer to assets held for sale (436) (880) - (62) - (1,378)Reversal of impairment loss (2,153) - - - - (2,153)Disposals (123) - (1,742) (531) - (2,396)Write off (427) (4,073) (362) - - (4,862)Exchange difference - (421) (2) (37) - (460)

At 30 June 2008 Accumulated depreciation 20,930 90,600 123,122 2,112 112,486 349,250 Accumulated impairment loss 11,424 - - - - 11,424 32,354 90,600 123,122 2,112 112,486 360,674


133


16. ProPerty, Plant and eQuiPMent (cont’d)

furniture, computerGroup **land fixtures, equipment and and office Motor and building fittings equipment vehicles software total rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

CarryingamountsAt 1 July 2006 59,971 30,667 25,388 1,929 44,620 162,575

At 30 June 2007/1 July 2007 48,166 20,590 30,396 1,596 45,148 145,896

At 30 June 2008 65,149 31,118 34,094 1,111 57,761 189,233

** land and building Buildings Building improvements freehold leasehold freehold leasehold in and land land building building progress renovations totalcost rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

At 1 July 2006 11,772 15,211 31,577 4,474 16,370 23,910 103,314Reclassification (2,758) - (42) 2,800 - - -Effect of adopting FRS 117 - (15,211) - (7,274) - - (22,485)

At 1 July 2006, restated 9,014 - 31,535 - 16,370 23,910 80,829Additions 454 - - - - 13,575 14,029Reclassifications - - - - 12 (8,358) (8,346)Disposals (49) - - - - - (49)Exchange difference (743) - - - - (1,672) (2,415)

At 30 June 2007/1 July 2007 8,676 - 31,535 - 16,382 27,455 84,048Additions - - 266 - 17,163 970 18,399 Reclassifications 1,831 - (9,760) - 4,995 (300) (3,234) Transfer to asset held for sale - - - - (664) - (664)Disposals - - - - - (391) (391)Write off - - - - - (774) (774)Exchange difference - - 129 - - (10) 119

At 30 June 2008 10,507 - 22,170 - 37,876 26,950 97,503


134



** land and building Buildings Building improvements freehold leasehold freehold leasehold in and land land building building progress renovations total rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Depreciationand impairmentlossAt 1 July 2006Accumulated depreciation - 53 5,899 996 1,289 11,517 19,754 Accumulated impairment loss - - 2,153 - - - 2,153 Effect of adopting FRS 117 - (53) - (996) - - (1,049)

At 1 July 2006, restated - - 8,052 - 1,289 11,517 20,858Depreciation for the year - - 719 - - 5,171 5,890Impairment loss - - - - 11,424 - 11,424Disposals - - (169) - - - (169)Exchange difference - - (20) - - (2,125) (2,145)Reclassification - - - - - 24 24

At 30 June 2007/1 July 2007Accumulated depreciation - - 6,429 - 1,289 14,587 22,305Accumulated impairment loss - - 2,153 - 11,424 - 13,577 - - 8,582 - 12,713 14,587 35,882Depreciation for the year - - 455 - 131 3,014 3,600Reclassification - - (4,020) - 110 (79) (3,989) Transfer to asset held for sale - - - - (436) - (436) Reversal of impairment loss - - (2,153) - - - (2,153) Disposals - - - - - (123) (123)Write off - - - - - (427) (427)

At 30 June 2008Accumulated depreciation - - 2,864 - 1,094 16,972 20,930Accumulated impairment loss - - - - 11,424 - 11,424 - - 2,864 - 12,518 16,972 32,354

Carryingamounts

At 1 July 2006 9,014 - 23,483 - 15,081 12,393 55,971

At 30 June 2007/1 July 2007 8,676 - 22,953 - 3,669 12,868 48,166

At 30 June 2008 10,507 - 19,306 - 25,358 9,978 65,149


135



furniture, officecompany long term fixtures, equipment leasehold and Motor and land fittings renovation vehicles computer totalCost rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

At 1 July 2006 666 - - - - 666Additions - - 352 - 47 399Disposals (666) - - - - (666)

At 30 June 2007/1 July 2007 - - 352 - 47 399Additions - 42 478 169 98 787

At 30 June 2008 - 42 830 169 145 1,186

Depreciation

At 1 July 2007Accumulated depreciation - - - - - -Depreciation of the year - 7 126 39 44 216

At 30 June 2008 - 7 126 39 44 216

Carryingamounts

At 1 July 2006 666 - - - - 666

At 30 June 2007 - - 352 - 47 399

At 30 June 2008 - 35 704 130 101 970


136


17. PrePaid lease PayMents

unexpired unexpired period period less than more thanGroup 50 years 50 years total rM’000 rM’000 rM’000

cost/valuationAt 1 July 2006 - - - Effect of adopting FRS 117 2,800 19,685 22,485

At 1 July 2006, restated 2,800 19,685 22,485 Additions - 3,668 3,668

At 30 June 2007/At 1 July 2007 2,800 23,353 26,153 Exchange difference (196) - (196)

At 30 June 2008 2,604 23,353 25,957

amortisationAt 1 July 2006 - - - Effect of adopting FRS 117 - 1,049 1,049

At 1 July 2006, restated - 1,049 1,049Amortisation 277 (91) 186Exchange difference - (332) (332)

At 30 June 2007/At 1 July 2007 277 626 903Amortisation - 205 205Exchange difference (20) (312) (332)

257 519 776

carrying amountsAt 1 July 2006 2,800 18,636 21,436

At 30 June 2007/1 July 2007 2,523 22,727 25,250

At 30 June 2008 2,347 22,834 25,181


137


18. General takaful and faMily takaful funds’ Balance sheet as at 30 June 2008

2008 2007 restated General family General family takaful takaful takaful takaful fund fund total fund fund total rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

assets Property, plant and equipment 6 261 267 7 7,977 7,984Investment properties 43,052 219,552 262,604 40,376 200,053 240,429Investments 425,104 2,466,908 2,892,012 414,809 2,155,266 2,570,075Investments-linked business - 175,459 175,459 - 37,682 37,682Financing receivables 2,024 19,695 21,719 2,700 6,053 8,753Receivables 81,819 111,969 193,788 70,234 120,488 190,722Cash and bank balances 40,277 106,916 147,193 24,738 53,877 78,615

592,282 3,100,760 3,693,042 552,864 2,581,396 3,134,260

Less: Inter fund balances (31,527) (69,456)

3,661,515 3,064,804

liabilitiesPayables 120,151 129,538 249,689 128,202 116,793 244,995Provision for outstanding claims 185,598 49,547 235,145 164,294 85,190 249,484Investment-linked business liabilities - 10,409 10,409 - 4,569 4,569

305,749 189,494 495,243 292,496 206,552 499,048

Less: Inter fund balances (31,527) (69,456)

463,716 429,592

General Takaful and Family Takaful participants’ funds 286,533 2,911,266 3,197,799 260,368 2,374,844 2,635,212

592,282 3,100,760 3,661,515 552,864 2,581,396 3,064,804


138


19. dePosits froM custoMers

(i) By type of deposit Group 2008 2007 rM’000 rM’000

non-Mudharabah fundDemand deposits 5,842,720 4,555,125Savings deposits 1,899,962 1,589,308Negotiable Islamic Debt Certificates (NIDC) 6,098,744 4,596,717Others 41,464 35,222

13,882,890 10,776,372

Mudharabah fundSavings deposits 521,084 467,390General investment deposits 2,411,039 2,015,116Special investment deposits 3,720,659 4,129,132Others 235 623

6,653,017 6,612,261

20,535,907 17,388,633

(ii) By type of customer

Government and statutory bodies 4,566,889 3,309,885Business enterprises 5,997,473 6,097,683Individuals 5,173,310 2,549,629 Others 4,798,235 5,431,436

20,535,907 17,388,633

20. dePosits and PlaceMents of Banks and other financial institutions

Group 2008 2007 rM’000 rM’000

Mudharabah fund:Licensed banks 58,443 33,991


139


21. other liaBilities

Group company 2008 2007 2008 2007 note rM’000 rM’000 rM’000 rM’000

Clients’ and dealers’ credit balances 4,769 18,306 - - Trust account 559 - - -Sundry payables 313,533 242,231 364 2,556Due to Takaful funds 12,034 23,433 - -Profit equalisation reserve 22 49,085 57,402 - - Amount due to subsidiaries - - 6,875 7,311

379,980 341,372 7,239 9,867

The amount due to subsidiaries are unsecured, not subject to financing charge and has no fixed terms of repayment.

22. Profit eQualisation reserve (“Per”)

Group 2008 2007 rM’000 rM’000

At 1 July 57,402 9,490Recognised in the income statement (8,317) 47,921Exchange difference - (9)

At 30 June 49,085 57,402

23. caPital and reserve

Group and companyshare capital number number

amount of shares amount of shares 2008 2008 2007 2007 rM’000 ’000 rM’000 ’000

Authorised: Ordinary shares of RM1 each 2,000,000 2,000,000 2,000,000 2,000,000 One Special Rights Redeemable Preference Share of RM1 * * * *

2,000,000 2,000,000 2,000,000 2,000,000

Issued and fully paid: Ordinary shares of RM1 each On issue at 1 July 891,390 891,390 562,965 562,965 Issued for cash - - 328,425 328,425

On issue at 30 June 891,390 891,390 891,390 891,390

* Represents RM1


140


24. incoMe derived froM investMent of dePositors’ funds


Income derived from investment of:(i) General investment deposits 112,163 144,812(ii) Other deposits 796,945 685,339

909,108 830,151

(i) income derived from investment of general investment deposits

Group 2008 2007 rM’000 rM’000

financing income and hibahFinancing, advances and others 79,229 111,014Securities:- Held-for-trading 314 46- Available-for-sale 6,331 8,874- Held-to-maturity 262 138Money at call and deposit with financial institutions 23,593 15,951

109,729 136,023Amortisation of premium less accretion of discounts 2,519 8,995

112,248 145,018other dealing incomeNet (loss)/gain from sale of securities held-for-trading (109) (404)Net gain on revaluation of securities held-for-trading (26) 50

112,113 144,664other operating incomeNet gain from sale of securities available-for-sale 7 74Gross dividend income from securities: Quoted in Malaysia 43 74

112,163 144,812


141


24. incoMe derived froM investMent of dePositors’ funds (cont’d)

(ii) income derived from investment of other deposits

Group 2008 2007 rM’000 rM’000

financing income and hibahFinancing, advances and others 559,525 513,481Securities:- Held-for-trading 2,263 306- Held-to-maturity 1,869 854- Available-for-sale 45,646 14,313Money at call and deposit with financial institutions 170,233 97,929

779,536 626,883Amortisation of premium less accretion of discounts 18,130 57,880

797,666 684,763other dealing incomeNet (loss)/gain from sale of securities held-for-trading (781) (268)Net gain on revaluation of securities held-for-trading (179) 348

796,706 684,843Net gain from sale of securities available-for-sale 239 496

796,945 685,339

25. incoMe derived froM investMent of shareholders’ funds

Group restated company

2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000

financing income and hibahFinancing, advances and others 3,929 5,281 3,681 4,605Securities:- Held-for-trading 23 - - - - Available-for-sale 31,675 24,850 - - - Held-to-maturity 786 14,865 - - Money at call and deposit with financial institutions 112,037 55,946 1,319 566

148,450 100,942 5,000 5,171Amortisation of premium less accretion of discounts 7,623 5,007 - -

156,073 105,949 5,000 5,171other dealing income Net gain/(loss) from foreign exchange transactions 9,925 15,572 - - Net gain from sale of securities held-for-trading (6,977) 11,572 - - Net gain on revaluation of securities held-for-trading (53) 7,407 - -

Balance brought forward 158,968 140,500 5,000 5,171


142


25. incoMe derived froM investMent of shareholders’ funds

Group restated company

2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000

Balance brought forward 158,968 140,500 5,000 5,171

other operating incomeNet gain from sale of securities available-for-sale 21,258 2,160 1,652 1,725 Profit on sale of foreign currencies 22,741 - - -Unrealised foreign exchange gain on foreign currency cash balances 14 3,508 - - Reversal of allowance for diminution in value of investments 580 1,242 - - Reversal of allowance for doubtful debts 1,072 - - -Profits from General Takaful and Family Takaful funds attributable - to the Group 169,613 169,904 - - Gross dividend income from securities: Quoted in Malaysia 2,192 1,422 450 907 Unit trust in Malaysia 1,176 164 524 466 Unit trust outside Malaysia 119 122 - - Unquoted in Malaysia 3,459 643 - - Unquoted outside Malaysia - 57 - - Gain on disposal of associate - 950 - - Gross dividend income - subsidiary companies - 1,654 22,171 10,525Fees and commission 126,925 65,762 - - Net (loss)/gain on disposal of property plant and equipment (137) 20 - -Hibah - - 11 6,070Gain from dilution of interest in a subsidiary - 631,507 - - Rental income 2,262 - - -Others 7,464 8,903 20 5,324

517,706 1,028,518 29,828 30,188

26. reversal/(allowance) for losses on financinG


Allowance for bad and doubtful financing: - Specific allowance - Made in the financial year (300,924) (270,834) - Written back 213,858 228,208 - General allowance - Made in the financial year - (3,074)Bad debts and financing - recovered 94,305 21,831Recoverable from Danaharta 257 1,616 Exchange difference 51 2,069

7,547 (20,184)


143


27. reversal/(iMPairMent) losses


Securities: Held-to-maturity 12,368 - - - Available-for-sale (10,205) 75,002 - -

2,163 75,002 - - Investment in a subsidiary - - (6,455) -

2,163 75,002 (6,455) -

28. incoMe attriButaBle to dePositors

Group 2008 2007 rM’000 rM’000

Deposits from customers - Mudharabah Fund 195,996 233,238 - Non-Mudharabah Fund 213,576 163,557Deposits and placements of banks and other financial institutions - Mudharabah Fund 5,517 5,620

415,089 402,415

29. Personnel exPenses


Salaries and wages 186,537 169,643 292 450Allowance and bonuses 59,734 58,168 353 33Employees’ Provident Fund 27,127 25,345 357 71Directors’ remuneration 1,787 2,126 2,173 1,499Others 27,887 14,886 221 1,458

303,072 270,168 3,396 3,511

Share option plan

The Company offers vested share options over ordinary shares to Executive Directors and all employees of the Group who have been confirmed in writing and are in the employment of the Group. The share options have expired on 21 August 2007.

company 2008 2007 rM’000 rM’000

Outstanding at 30 June - 50,913

No share options were granted by the Company or exercised by the option holders during the financial year.


144


30. other overhead exPenses


Promotion 22,855 13,749 12 18Establishment 93,410 87,637 - 228General expenses 174,377 107,227 2,148 1,556

290,642 208,613 2,160 1,802

Included in other overhead expenses are:

Allowance for doubtful debts 1,072 (10) - - Auditors’ remuneration - Audit services Auditors of the Company 776 700 40 30 Other auditors 77 175 - - - Other services by auditors of the Company 148 320 - - Amortisation of prepaid lease payments 205 - - -Goodwill written off - 2,450 - -Impairment loss on asset held for sale 20,038 - - -Rental of properties 31,221 30,518 397 -Property, plant and equipment written off 896 11,613 - -Rental of equipment 10,734 4,741 - -

31. directors’ and shariah suPervisory council MeMBers’ reMuneration

(a) (i) Aggregate remuneration of Directors of the Company categorised into appropriate components are as follows:


executive director:Allowances 48 62 5 - Salaries, bonuses and EPF contributions 887 1,113 886 1,113 Other remuneration - Gratuity - 160 - 160Benefits-in-kind 18 218 18 218

953 1,553 909 1,491

non-executive directors:Fees and allowances 852 791 1,282 226

Total 1,805 2,344 2,191 1,717

Total (excluding benefits-in-kind) 1,787 2,126 2,173 1,499

(ii) shariah supervisory council 374 495 - -


145


31. directors’ and shariah suPervisory council MeMBers’ reMuneration (cont’d)

(b) (i) The number of Directors of the Company, whose remuneration are paid/payable for their services, fall within the following bands:

Group 2008 2007

number of executive directorsRM100,001 and RM150,000 1 -RM750,001 and RM800,000 1 -RM1,450,001 and RM1,500,000 - 1

number of non-executive directorsBelow RM100,000 9 8RM100,001 and RM400,000 - 1

Total 11 10

(ii) number of shariah supervisory council Members 8 9

32. key ManaGeMent Personnel

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

The compensation for key management personnel other than Director’s remuneration is as follows:


Other key management personnel: - Short-term employee benefits 17,545 12,528 332 209 - Benefit in kind 420 347 25 22

17,965 12,875 357 231

33. finance cost

Group 2008 2007 rM’000 rM’000

Hibah - 13,370

Payment made to LTH for Hibah charges in relation to the RM280 million advance made to the Company in the previous year.


146


34. tax exPense (i) Major components of tax expense


Current tax expense: Malaysia - current year 14,502 8,668 7,607 5,087 - prior years 10,792 2,648 - -

25,294 11,316 7,607 5,087Deferred tax expense: Origination and reversal of temporary differences (92,983) (2,790) (3,093) 1,435

(67,689) 8,526 4,514 6,522

(ii) reconciliation of effective tax expense


Profit/(Loss) before tax 379,615 909,105 17,601 24,875

Income tax using Malaysia tax rate of 26% (2007: 27%) 98,700 245,458 4,576 6,716 Utilisation of previously unrecognised deferred tax assets (88,791) (134,683) - - Recognition of previously unrecognised deferred tax assets (86,312) - - - Non-taxable income (13,088) (193,191) (144) (511) Non-deductible expenses 10,737 75,012 90 308 Effect of current year tax loss not recognised - 13,886 - -

Other items 273 (604) (8) 9

(78,481) 5,878 4,514 6,522Under provision in prior years 10,792 2,648 - -

Tax expense (67,689) 8,526 4,514 6,522

With effect from year of assessment 2008, corporate tax rate is at 26%. The Malaysian Budget 2008 also announced the reduction of corporate tax rate to 25% in 2009.


147


35. earninGs Per share

Basic earnings per ordinary share

The calculation of basic earnings per ordinary share at 30 June 2008 was based on the profit attributable to ordinary shareholders and the number of ordinary shares in issue during the year: Group restated

2008 2007 rM’000 rM’000

Profit attributable to ordinary shareholders 236,198 787,762

Weighted average number of ordinary shares

2008 2007 rM’000 rM’000

Issued ordinary shares at 1 July 891,390 562,965Effect of shares issued in 31 March 2008 - 242,039

Weighted average number of ordinary shares at 30 June 891,390 805,004

Group restated 2008 2007

sen sen

Basic earnings per ordinary share 26.50 97.86

36. dividends

Dividends recognised in the current year by the Company are:

sen total per share amount date of payment2008 (net of tax) rM’000

Final 2007 ordinary 1.48 13,193 4 January 2008

After the balance sheet date, the following dividends were proposed by the Directors. These dividends will be recognised in subsequent financial reports upon approval by the shareholders.

sen total per share amount2009 (net of tax) rM’000

Final 2008 ordinary 1.07 9,564


148


37. related Party transactions

(i) identity of related parties

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

The Group has a related party relationship with its subsidiaries (see note 14), associate company (see note 15) and substantial shareholders of the Company. The significant related party transactions of the Group and the Company, other than key management personnel compensation, are as follows:

Group company transactions transactions transactions transactions amount for amount for amount for amount for 2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000

SubsidiariesManagement fees payable - - - 141Income receivable attributable on deposits placed - - 446 446Finance cost receivable - - 3,337 4,255Hibah receivable - - - 13,370

SubstantialshareholdersRental of premises payable 2,236 2,260 - -Brokerage fees receivable 321 383 - -Income receivable from financing, advances and other loans 3,690 85 - -Fees and commission 409 454 - -Income payable attributable on deposits placed 32,227 7,917 - -

Group company net balance net balance net balance net balance outstanding outstanding outstanding outstanding as at 30 June as at 30 June as at 30 June as at 30 June 2008 2007 2008 2007 rM’000 rM’000 rM’000 rM’000

Subsidiariesamounts due fromCurrent account and investment deposits - - 46,490 25,146Subordinated financing - - 100,000 100,000Others - - 279 19

amounts due toOthers - - 36 511

Substantialshareholdersamount due fromFinancing, advances and others 86,385 34,902 - -

amount due toCurrent account and investment deposits 1,518,456 1,120,775 - -


149


37. related Party transactions (cont’d)

(ii) related party transactions

A Director is authorised to trade, under his own discretion, though a trading account co-owned by the Director and a subsidiary. Under the arrangement, any trading loss is borne by the Director, whereas any gain is equally shared by the Director and the subsidiary. Transactions entered into through this trading account are as follows:-

Group 2008 2007 rM’000 rM’000

Sales of securities 2,687 1,967Purchase of securities 3,271 2,211

38. coMMitMents and continGencies

In the normal course of business, Bank Islam Malaysia Berhad and its subsidiaries make various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions.

Risk Weighted Exposure arising from the commitments and contingencies of this subsidiary as at 30 June are as follows:

credit risk Principal equivalent weighted amount amount amount rM’000 rM’000 rM’000

2008Direct credit substitutes 521,235 521,235 317,479Transaction-related contingent items 629,905 314,953 298,150Short term self-liquidating trade related contingencies 514,410 102,882 22,691Assets sold with recourse and commitments with certain drawdown 11,438 11,438 11,438Obligation under underwriting agreement 103,000 51,500 51,500Foreign exchange related contracts 2,892,916 24,336 14,994Miscellaneous 4,669,621 283,007 231,403

9,342,525 1,309,351 947,655

2007Direct credit substitutes 347,830 347,830 334,526Transaction-related contingent items 411,564 205,782 203,861Short term self-liquidating trade related contingencies 708,495 141,699 20,648Assets sold with recourse and commitments with certain drawdown 119 119 119Obligation under underwriting agreement 99,000 49,500 49,500Foreign exchange related contracts 1,965,760 39,315 7,863Miscellaneous 4,835,032 497,218 468,775

8,367,800 1,281,463 1,085,292

* The credit equivalent amount is arrived at using the credit conversion factor as per Bank Negara Malaysia guidelines.

** The risk weighted amount as at 30 June 2008 is computed in accordance with Bank Negara Malaysia’s Capital Adequacy Standard for Islamic Banks: Standardised Approach for Credit and Market Risk, and Basic Indicator Approach for Operational Risk (BASEL II), which is effective from 1 January 2008. The comparative figures have not been adjusted for the effects arising from the adoption of the revised framework.


150


38. coMMitMents and continGencies (cont’d)

2008 2007 credit credit Principal equivalent Principal equivalent amount amount * amount amount * rM’000 rM’000 rM’000 rM’000

Foreign exchange contracts - Forward contracts 1,320,394 11,108 1,522,889 30,458 - Others 1,572,522 13,228 442,871 8,857

Total 2,892,916 24,336 1,965,760 39,315

Foreign exchange related contracts are subject to market risk and credit risk.

Marketrisk

Market risk is the potential change in value caused by movement in market rates or prices. The contractual amounts stated above provide only a measure of involvement in these types of transactions and do not represent the amounts subject to market risk. Exposure to market risk may be reduced through offsetting on and off-balance sheet positions.

Creditrisk

Credit risk is a risk that a counterparty will be unable to meet the terms of a contract in which the Group has a gain position.

39. financial risk ManaGeMent Policies

operational risk

This risk is defined as the risk of loss arising from inadequate or failed internal processes, people and systems and external events. In managing this risk a dedicated team has been established. The team is responsible for identification, assessment and measurement, control framework, monitoring and reporting of operational risks.

credit risk

Credit risk is the potential loss of revenue and principal in the form of specific allowances as a result of defaults by the customers or counter parties through the financing, dealing and investing activities.

The primary exposure to credit risk arises from financing activities. Credit policy to govern the activities is rigorously being enhanced with the objectives of improving and preserving the quality of assets originated. This is in line with the on-going organisation transformation.

Under the credit process flow, credit administration, credit control, review and analysis are performed independently of individuals involved in business origination. In addition, an independent evaluation of credit proposal before approval has been established for all proposal involving corporate and commercial. This function is performed by the risk management division.

Credit risk arising from dealing and investing activities are managed by the establishment of limits which includes counter parties limits and permissible acquisition of not less than A-rated private entities’ instruments. Furthermore, the dealing and investing activities are monitored by an independent middle office unit.


151


39. financial risk ManaGeMent Policies (cont’d)

underwriting risk Underwriting risk includes the risk of incurring higher claims costs than expected owing to the random nature of claims and their frequency and severity and the risk of change in legal or economic conditions or behavioural patterns affecting takaful pricing and conditions of takaful or retakaful cover. This may result in the situation of having either received too little contribution for the risk it has agreed to underwrite and hence has not enough funds to invest and pay claims, or claims are in excess of those expected.

The Group seeks to minimise underwriting risks with a balance mix and spread of business between classes of business and by observing underwriting guidelines and limits, conservative estimation of the claims provisions and high standards applied to security at retakaful.

Market risk

Market risk is the risk of loss arising from the adverse movement in the level of market prices or rates. The market risk components are foreign exchange risk, profit rate risk and equity risk.

i) Foreignexchangerisk

This risk refers to the adverse exchange rate movements on foreign currency positions taken by the Group. Foreign currency open position is monitored against predetermined position limits and cut-loss limits.

ii) Profitraterisk

This risk refers to volatility in the net profit income as a result of changes in the levels of profit rate and shift in the composition of the assets and liabilities. The profit rate risk, however, is self-mitigated when most of the financing assets are based on fixed rate while profit paid to depositors are not contractual.

Profit paid to depositors/investors depends on the profit generated from the Bank’s activities and the profit sharing distribution.

The Group is not exposed directly to interest rate risk because interest is prohibited under Islamic banking. The indirect interest rate risk exists arising from competition with other banks. This is managed by regularly reviewing the Bank profit rates.

iii) Equityrisk

Equity risk refers to the adverse movements in the price of equities on equity positions. Equity position is marked to market and monitored by the Risk Management Division and reported to the Risk Management Committee.

liquidity risk

Liquidity risk is related to the risk arising mainly from withdrawals of deposits. In managing this, the Group is adopting the liquidity framework introduced by Bank Negara Malaysia which ascertain liquidity based on the contractual and behavioural cash flow of assets, liabilities and off-balance sheet commitments.

Notes to the Financial Statementsg h

152


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153


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154


41. fair value of financial assets and liaBilities

Financial instruments comprise financial assets, financial liabilities and off-balance sheet instruments. Fair value is the amount at which the financial assets could be exchanged or a financial liability settled, between knowledgeable and willing parties in an arm’s length transaction. The information presented herein represents the estimates of fair values as at the balance sheet date.

Where available, quoted and observable market prices are used as the measure of fair values. Where such quoted and observable market prices are not available, fair values are estimated based on a range of methodologies and assumptions regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows and other factors. Changes in assumptions could materially affect these estimates and resulting fair value estimates.

Fair value information for non-financial assets and liabilities are excluded as they do not fall within the scope of FRS 1322004, Financial Instruments: Disclosure and Presentation which requires the fair value information to be disclosed.

The following table summarises the carrying and fair values of the financial assets and liabilities on the balance sheet date:

carrying value fair value restated restated 2008 2007 2008 2007Group rM’000 rM’000 rM’000 rM’000

financial assetsCash and short-term funds 9,947,185 6,011,713 9,947,185 6,011,713Deposits and placements with banks and other financial institutions 247,036 287,459 247,036 287,459securitiesHeld-for-trading 90,749 361,550 90,749 361,550Held-to-maturity 191,971 181,184 191,971 172,376Available-for-sale 3,451,374 3,460,097 3,451,374 3,460,097Financing, advances and others 9,055,028 8,403,285 9,225,154 8,603,748

financial liabilitiesDeposits from customers 20,535,907 17,388,633 20,535,907 17,388,633Deposits and placements of banks and other financial institutions 58,443 33,991 58,443 33,991Bills and acceptance payable 990,448 109,189 990,448 109,189


155


41. fair value of financial assets and liaBilities (cont’d)

carrying value fair value 2008 2007 2008 2007company rM’000 rM’000 rM’000 rM’000

financial assetsCash and short-term funds 46,485 25,146 46,485 25,146securitiesHeld-for-trading - 20,968 - 20,968Available-for-sale 11,807 11,812 11,807 11,812Financing, advances and others 100,000 100,000 100,000 100,000

The fair value of the Group’s financial instruments which include cash and short-term funds, deposits and placements with banks and other financial institutions and short-term borrowings are not materially sensitive to shifts in market profit rate because of the limited term to maturity of these instruments.

As such, the carrying value of these financial assets and liabilities at balance sheet date approximate their fair values.

The fair values are based on the following methodologies and assumptions:

deposits and placements with banks and other financial institutions

For deposits and placements with financial instruments with maturities of less than six (6) months, the carrying value is a reasonable estimate of fair values. For deposits and placements with maturities six months and above, the estimated fair values are based on discounted cash flows using prevailing money market profit rates at which similar deposits and placements would be made with financial instruments of similar credit risk and remaining period to maturity.

securities held-for-trading and securities available-for-sale

The estimated fair values are generally based on quoted and observable market prices. Where there is no ready market in certain securities, fair values have been estimated by reference to market indicative yields or net tangible asset backing of the investee.

financing, advances and others

Their fair value is estimated by discounting the estimated future cash flows using the prevailing market rates of financings with similar credit risks and maturities. The fair values are represented by their carrying value, net of specific allowance and income-in-suspense, being the recoverable amount.


156


41. fair value of financial assets and liaBilities (cont’d)

deposits from customers For deposits from customers with maturities of less than six months, the carrying amounts are a reasonable estimate for their fair values. For deposits with maturities of six months or more, the fair values are estimated using discounted cash flows based on prevailing market rates for similar deposits from customers.

deposits and placements of banks and other financial institutions

The estimated fair values of deposits and placements of banks and other financial institutions with maturities of less than six months approximate the carrying values. For deposits and placements with maturities of six months or more, the fair values are estimated based on discounted cash flows using prevailing money market profit rates for deposits and placements with similar remaining period to maturities.

Bills and acceptance payable

The estimated fair values of bills and acceptance payables with maturity of less than six months approximate their carrying values. For bills and acceptance payable with maturities of six months or more, the fair values are estimated based on discounted cash flows using prevailing market rates for borrowings with similar risks profile.

42. caPital coMMitMents

Group 2008 2007 rM’000 rM’000

Property, plant and equipment Contracted but not provided for in the financial statements 107,850 9,845

43. continGent liaBility

Prior to the amendments of Section 60AA of the Income Tax Act 1967 (Section 60AA), capital allowances had been claimed by way of deduction from tax adjusted income in both General and Family Takaful Funds. The amended Section 60AA stipulates that the tax adjusted income of the Shareholders’ Fund shall be ascertained by taking into account the amount of income distributed or credited from Family and General Takaful Funds and as a result both General and Family Takaful Funds would have no adjusted income for tax purposes. As such, capital allowances claimable for the years of assessment from 1997 to 2008 would be lost permanently.

The Malaysian Takaful Association and the Group’s Takaful subsidiary, Syarikat Takaful Malaysia Berhad (“STMB”), are in discussion with the Ministry of Finance (MOF) and Inland Revenue Board for the capital allowances to be deducted from tax adjusted income in Shareholders’ Fund. No provision has been made by STMB for the potential tax liabilities of the previous and current years pending the outcome of the said discussion and future appeals. The potential tax exposure to STMB assuming that the deduction of capital allowances in Shareholders’ Fund is rejected by the MOF is approximately RM11.4 million. In addition, STMB would have to reverse its current balance of deferred tax asset which is in relation to unabsorbed capital allowances brought forward by approximately RM9.0 million.


157


44. caPital adeQuacy Bank Negara Malaysia’s guideline on capital adequacy requires banking institutions to maintain adequate level of capital to withstand losses which may result from credit and risk associated with financing operations. The risk-weighted capital adequacy ratio of a subsidiary, Bank Islam Malaysia Berhad and its subsidiaries is analysed as follows: restated 2008 2007 rM’000 rM’000

tier-i capitalPaid-up share capital 1,725,490 1,725,490Share premium 500,020 500,020(Accumulated losses) (1,390,935) (1,588,477)Other reserves 508,821 316,763Less: Deferred tax assets (86,282) -

total tier-1 capital 1,257,114 953,796

tier-ii capitalRedeemable Subordinated Mudharabah financing 40,000 60,000General allowance for bad and doubtful financing 169,382 170,461

total tier-ii capital 209,382 230,461

total capital 1,466,496 1,184,257less: Investment in Subsidiaries - -

Capital base 1,466,496 1,184,257

Group restated 2008 2007

Core capital ratio 11.27% 9.72%Risk-weighted capital ratio 13.15% 12.07%Core capital ratio after proposed dividends 11.27% 9.72%Risk-weighted capital ratio after proposed dividends 13.15% 12.07%


158


44. caPital adeQuacy (cont’d)

Breakdown of risk weighted assets in the various categories of risk weights:

restated 2008 2007 risk risk Principal weighted Principal weighted rM’000 rM’000 rM’000 rM’000

0% 11,267,196 - 7,622,791 - 10% - - 13,734 1,37320% 2,426,187 485,238 555,881 111,17635% 619,705 216,897 - -50% 918,131 459,066 2,443,545 1,221,77275% 4,807,711 3,605,783 - -100% 3,496,750 3,496,750 8,291,455 8,291,455150% 907,510 1,361,265 - -

Total risk-weighted assets for credit risk 24,443,190 9,624,999 18,927,406 9,625,776Total risk-weighted assets for market risk - 295,715 - 184,730

Total risk-weighted assets for credit and market risk 24,443,190 9,920,714 18,927,406 9,810,506Total risk-weighted assets for operational risk - 1,229,671 - -

Total risk-weighted assets 24,443,190 11,150,385 18,927,406 9,810,506

45. seGMental inforMation

The inter-segment transactions have been entered into in the normal course of business and have been established under negotiated terms.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and expenses.

The Group operates predominantly in Malaysia and accordingly, information by geographical location on the Group’s operation is not presented.

Segment information is presented in respect of the Group’s main business segment.

Business segments

The Group comprises of the following main business segments:

Banking Islamic banking and provision of related services.

Takaful Underwriting of family and general Islamic insurance (“Takaful”).

Others Investment holding, currency trading, ijarah financing, stockbroking.


159


45. seGMental inforMation (cont’d)

2008 Banking offshore domestic takaful others elimination consolidated rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Business segments

Revenue from external customers 26,125 1,150,004 238,610 12,075 - 1,426,814Inter-segment revenue - 3,216 2,648 38,765 (44,629) -

total revenue 26,125 1,153,220 241,258 50,840 (44,629) 1,426,814

segment result

Operating profit 20,597 299,682 35,748 23,588 - 379,615Zakat (13,522)Tax expense 67,689

Profit for the year 433,782

Business segments

Segment assets 525,714 23,030,729 4,045,137 1,676,758 (1,696,390) 27,581,948 Investment in associates - - - 149 - 149

Total assets 525,714 23,030,729 4,045,137 1,676,907 (1,696,390) 27,582,097

Segment liabilities 1,125,972 21,111,202 3,711,264 32,306 (337,966) 25,642,778

Capital expenditure 29 82,002 15,564 1,236 - 98,831

Depreciation 97 21,912 17,716 7,620 - 47,345


160


45. seGMental inforMation (cont’d)

restated Banking2007 offshore domestic takaful others elimination consolidated rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Business segments

Revenue from external customers 30,295 975,810 192,527 28,530 631,507 1,858,669Inter-segment revenue - 8,287 8,884 36,058 (53,229) -

total revenue 30,295 984,097 201,411 64,588 (578,278) 1,858,669

segment result

Operating profit 52,764 176,832 25,444 54,641 612,794 922,475Finance cost (13,370) Zakat (8,094)Tax expense (8,526)

Profit for the year 892,485

Business segments

Segment assets 544,485 18,513,816 3,481,542 1,704,639 (1,693,430) 22,551,052 Investment in Associates - - - 149 - 149

Total assets 544,485 18,513,816 3,481,542 1,704,788 (1,693,430) 22,551,201

Segment liabilities 1,204,065 16,835,127 3,169,642 65,138 (328,698) 20,945,274

Capital expenditure 7 39,742 15,436 1,599 - 56,784

Depreciation 139 20,588 18,187 7,838 - 46,752


161


46. Prior year adJustMents and coMParative fiGures (i) During the year, a subsidiary, Bank Islam Malaysia Berhad, had completed its exercise to identify the adjustments

required to agree the total financing, advances and others balances to its financing systems. These adjustments had been applied retrospectively with the comparative amounts restated.

(ii) During the financial year, there was an adjustment due to revision of reserves for future policies benefits for a subsiadiary in Indonesia arising from external review carried out. The revision in reserves was adjusted against the retained profit of Shareholders’ Fund and accumulated surplus brought forward of Family Fund as at 1 July 2006. These adjustments had been applied retrospectively with the comparative amounts restated.

(iii) Leasehold land and building of the Group amounting to RM19,335,000 in 2007 was reclassified from property, plant and equipment to prepaid lease payments to comply with the requirements of FRS 117, Leases.

The presentation and classification of items for the following comparative figures have been restated as discussed above:

Group as previously Prior years’ adjustments as reported (i) (ii) (iii) restated rM’000 rM’000 rM’000 rM’000 rM’000

income statement for the year ended 30 June 2007

Income derived from investment of depositors’ funds 853,534 (23,383) - - 830,151Income derived from investment of shareholders’ funds 1,029,451 - (933) - 1,028,518Allowance for losses on financing (24,739) 4,555 - - (20,184)Profit for the year 912,246 (18,828) (933) - 892,485

Balance sheet as at 30 June 2007

Financing, advances and other loans 8,433,287 (30,002) - - 8,403,285General Takaful and Family Takaful assets 3,041,371 - 23,433 - 3,064,804Other payables (317,939) - (23,433) - (341,372)General Takaful and Family Takaful participants’ funds (2,611,779) - (23,433) - (2,635,212)Property, plant and equipment 171,146 - - (25,250) 145,896Prepaid lease payments - - - 25,250 25,250

statement of changes in equity as at 30 June 2007

Accumulated losses at 1 July 2006 (1,518,317) (11,174) (15,651) - (1,545,142)Accumulated losses at 1 July 2007 (1,476,146) (17,299) (16,285) - (1,509,730)Minority interest at 1 July 2007 645,681 44,270 (7,148) - 682,803Statutory reserve at 1 July 2007 326,177 (56,973) - - 269,204

earnings per share (sen) 99.29 * * * 97.86

* It is not practical to compute the impact on the loss per share at adjustment level.


162


In the opinion of the Directors, the financial statements set out on pages 099 to 161 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia as modified by Bank Negara Malaysia Guidelines so as to give a true and fair view of the state of affairs of the Group and of the Company as at 30 June 2008 and of the results of their operations and cash flows for the year ended on that date.

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

…………………………………………………………tan sri samsudin bin osman

…………………………………………………………Johan abdullah

Kuala Lumpur,


Statement by Directorsg hpursuant to section 169(15) of the Companies Act, 1965

163


g h

The Shariah Supervisory Council (“Council”) and Shariah Advisory Body were established at the banking and takaful subsidiary under the provision of Section 3(5)(b) of the Islamic Banking Act 1983 and Section 8 (5) of the Takaful Act 1984 respectively to advise on the operation of their banking and takaful business.

In this regard, we disclose herewith the report of the Council and Shariah Advisory Body of our banking and takaful subsidiary as follows:-

report of the council of Bank islam Malaysia Berhad

In carrying out the roles and responsibilities of the Bank’s Shariah Supervisory Council as prescribed in the Guidelines on the Governance of Shariah Committee for Islamic Financial Institutions issued by Bank Negara Malaysia, we hereby submit the following report for the financial year ended 30 June 2008:

1. The Council held six (6) meetings to review various products, transactions and processes in line with the Shariah requirements and we had also approved the following products:

i. Bank Islam Forward FX-i” (“BIFF-i”) based on Wa’ad and Bai’ Muajjal contractsii. Floating Rate Financing Products based on Bai’ Bithaman Ajil, Murabahah, Ijarah and Istisna’ contractsiii. Capital Protected Structured Investment Product based on restricted Mudharabah contractiv. Floating Rate Negotiable Islamic Debt Certificatev. Bank Islam Card based on Tawarruq conceptvi. Savings mutipliers product based on restricted Mudharabah contractvii. Remittance EZ-REMIT product based on Wakalah contract

2. In addition, the Council in the said meetings also reviewed, adopted and approved several initiatives of the Bank in strengthening the Shariah governance of the Bank which include the following:

i. Mudharabah (Financing) Contract Guidelines (Version 1.0)ii. Wadi’ah Contract Guidelines (Version 2.0)iii. Handling and Reporting on Shariah Non-Compliance Guidelines (Version 1.0)iv. Shariah Compliance Risk Management Policy (Version 2.0)v. Istisna’ Contract Guidelines (Version 1.0)vi. Ijarah and Ijarah Muntahiah Bit-Tamleek (Version 2.0)vii. Mudharabah (Deposit) Contract Guidelines (Version 1.0)viii. Kafalah Contract Guidelines (Version 1.0)ix. Murabahah and Murabahah for Purchase Orderer Contract (Version 2.0)x. Shariah Compliance Manual

3. The Bank during the financial year has tracked non-halal income arising from various sources amounting to RM10,466 to be disposed of to charity upon obtaining the approval of the Council.

4. The Bank carried out Shariah compliance review performed by Internal Audit Division and Shariah Department throughout the organization and the report was deliberated in the Council meeting. The Council hereby confirms that necessary efforts have been taken to rectify the Shariah breaches, and the Bank has also implemented several mechanism(s) to prevent similar Shariah breaches from recurring.

5. During the financial year, more than twenty five (25) Shariah training sessions and courses were organized which mainly aimed at enhancing the level of understanding of Shariah application in the banking business among the staff.

Report of the Shariah Supervisory Council

164


g hReport of the Shariah Supervisory Council

6. The Council reviewed the financial statements of the Bank and confirmed that the financial statements and calculation of Zakat is in compliance with the Shariah requirements.

It is the responsibility of the Bank’s management to ensure that it conducts its business in accordance with Shariah rules and principles as determined by the Shariah regulatory councils and it is our responsibility to form an independent opinion based on our review on the operations of the Bank and to report to you. In performing this, we had obtained all the information and explanations which we considered necessary in order to provide us with sufficient evidences to give reasonable assurance that the Bank has complied with Shariah requirements.

On that note, we, Mohd Bakir haji Mansor and associate Professor dr yusof ramli, being two of the members of the Shariah Supervisory Council of Bank Islam Malaysia Berhad, do hereby confirm on behalf of the Council that in our level best, the operations of the Bank for the financial year ended 30 June 2008 have been conducted in conformity with Shariah requirements. Allah Knows Best.

On behalf of the Shariah Supervisory Council :

…………………………………………………………Dr. Yusof Ramli

…………………………………………………………Mohd. Bakir Mansor

report of the shariah advisory Body of syarikat takaful Malaysia Berhad

We, Datuk Abdul Hamid Said and Mohd Bakir Mansor, being two of the members of Shariah Advisory Body of Syarikat Takaful Malaysia Berhad, do hereby confirm on behalf of the Body, that in our opinion, the operations of the Company for the year ended 30 June 2008 have been conducted in conformity with Shariah requirements.

On behalf of the Shariah Advisory Body :

…………………………………………………….Datuk Abdul Hamid Said

………….................................................................Mohd Bakir Mansor

Kuala Lumpur,Date: 28 October 2008

165


Statutory Declarationg h

I, Mohamad azlan Mohamad alam, the officer primarily responsible for the financial management of BIMB Holdings Berhad, do solemnly and sincerely declare that the financial statements set out on pages 099 to 161 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 of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the above named in Kuala Lumpur on 28 October 2008.

…………………………………………….Mohamad azlan Mohamad alam

Before me:

pursuant to section 169(16) of the Companies Act, 1965

166


g hIndependent Auditors’ Reportto the members of BIMB Holdings Berhad

We have audited the financial statements of BIMB Holdings Berhad, which comprise the balance sheets as at 30 June 2008 of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 099 to 161.

Directors’ Responsibility for the Financial Statements

The Directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 30 June 2008 and of their financial performance and cash flows for the year then ended.

167


g hIndependent Auditors’ Report

report on other legal and regulatory requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

a) In our opinion, the accounting and other records and the registers required by the Act 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 the Act.

b) We have considered the accounts and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 14 to the financial statements.

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

d) The audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act.

other Matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

kPMG desa Megat & co. adrian lee lye wangFirm Number: AF 0759 Approval Number: 2679/11/09(J)Chartered Accountants Chartered Accountant

Petaling Jaya,


to the members of BIMB Holdings Berhad

168


HArtA tAnAH MiliK BAnK islAMProPerties owned By Bank islaM

lokasi/ keterangan kegunaan/ tempoh hak Milik/ keluasan tanah nilai Buku tarikh Pembelian/location description of tenure kawasan Binaan Bersih pada date of existing use (meter persegi)/ 30.06.2008/ acquisition land Built-up area net Book (square metre) value as at 30.06.2008 (rM)

H.S. (D) 80625 Tanah tapak bangunan Pajakan 99 tahun 6,597 13,910,741 30.12.1994P.T. 45 Seksyen 87 Building site berakhir 29.12.2093Jalan Tun Razak Leasehold for 99 yearsBandar Kuala Lumpur expiring on 29.12.2093

No P.T. 1708 & 1709 Tanah tidak digunakan Pajakan 99 tahun 4,443 69,644 03.04.1986H.S. (M) 2660 & 2661 Vacant land berakhir 02.04.2085Batu 5½ Jalan Cheras Leasehold for 99 yearsKuala Lumpur expiring on 02.04.2085

Lot No P.T. 805 Tanah tidak digunakan Pajakan 99 tahun 405,000 629,944 04.02.2002- HSD 1323 Vacant land berakhir 03.02.2101Mukim Nakhoda Omar Leasehold for 99 yearsSabak Bernam expiring on 03.02.2101Selangor Darul Ehsan

HArtA tAnAH syAriKAt Al-ijArAH sdn BHdProPerties owned By syarikat al-iJarah sdn Bhd

lokasi/ keterangan kegunaan/ tempoh hak Milik/ usia Bangunan/ nilai Buku tarikh Pembelian/location description of tenure age of Buildings Bersih pada date of existing use (tahun/year) 30.06.2008/ acquisition net Book value as at 30.06.2008 (rM)

No. P.T. Lot 002600 & Rumah kedai 4 tingkat Pegangan bebas 23 1,081,657.17 30.09.1985H.S. (D) 815 & 816 untuk operasi Bank Islam FreeholdLot 002601. No 71 & 73 4-storey shophouseJalan Taman Selat Off for Bank Islam operationJalan Bagan LuarButterworth

Properties Owned by BHB GroupHarta tanah Milik Kumpulan BHB g h

169


1

2

3

4

5

6

Lot 11 & 12Plaza MelakaJalan Hang Tuah75300 Melaka

Lot 1 & 2Kompleks Perniagaan Fajar91000 TawauSabah

No. 64 & 65Kompleks JitraJalan Sungai Korok06000 JitraKedah Darul Aman

No. 23Medan Istana 3Bandar Ipoh Raya30450 IpohPerak Darul Ridzuan

No. 84Batu 3 ¼Jalan Gombak53000 Kuala Lumpur

Lot 6966, Blok 59Muara TuangJalan Datok Mohd Musa94300 Kota SamarahanSarawak

Dua unit Rumah kedai/Pejabat 4 ½ tingkatTwo units of 4 ½ storeyShophouse/Office

Tiga unit Kompleks Perniagaan/Pejabat 4 tingkat Three units of 4 storey Commercial Complex/ Office

Dua unit Rumah kedai/Pejabat 2 tingkat Two units of 2 storeyShophouse/Office

Satu unit Rumah kedai/Pejabat 3 tingkatOne unit of 3 storeyShophouse/Office


Satu unit Rumah kedai/Pejabat 3 tingkatOne unit of 3 storey Shophouse/Office

Pegangan BebasFreehold

Pajakan bandar 999 tahun berakhir pada31.12.2895999 years townlease expiringon 31.12.2895


Pajakan 99 tahun berakhir pada30.03.208199 years leaseexpiring on30.03.2081


Pajakan 60 tahun berakhir pada31.12.205360 years leaseexpiring on31.12.2053

25

17

22

13

22

13

3,485/14,434

4,025/6,037

3,095/6,935

1,539/4,255

1,883/8,700

1,312/3,750

1,486,314

2,115,000

545,000

450,000

870,000

650,000

03.05.1985

12.07.1991

30.09.1991

20.09.1995

22.12.1995

07.07.1995

no. lokasi/location

Penerangankegunaan/description ofexisting use

hakmilik/tenure

usiaBangunan/age ofBuilding(tahun/years)

keluasan tanah,kawasan Binaan/land, Built-up area(kaki persegi/square feet)

nilai BukuBersih pada/net Bookvalue as at30.06.2008(rM)

tarikhPerjanjianJual Beli/date of sale and Purchase agreement

HArtA tAnAH MiliK syAriKAt tAKAful MAlAysiA BerHAdProPerties owned By syarikat takaful Malaysia Berhad

g hHarta tanah Milik Kumpulan BHB • Properties Owned by BHB Group

170


7

8

9

10

11

12

Lot 54 & 55Bandar Wilayah JasaJalan Bunga Raya91112 Lahad DatuSabah

No. 24Jalan USJ 10/1B47500 Subang JayaSelangor Darul Ehsan

No. 15 & 17Jalan KelibangLangkawi Mall07000 Kuah, LangkawiKedah Darul Aman

No. 26 & 28Jalan Perda BaratBukit MertajamSeberang Prai14000 Penang

Lot 2, 3 & 4Jalan Kulas93400 KuchingSarawak

No. 14 & 16Jalan Ibrahim81900 Kota TinggiJohor Darul Ta’zim

Dua unit Rumah kedai/Pejabat 3 tingkatTwo units of 3 storeyShophouse/Office




Tiga unit Rumah kedai/Pejabat 3 tingkatThree units of 3 storeyShophouse/Office


Pajakan bandar 99 ahun berakhir pada 31.12.209099 years town lease expiring on31.12.2090



Pegangan bebasFreehold


Pajakan 99 tahunLot 14 berakhir pada 08.05.2082Lot 16 berakhir pada 04.12.207899 years leaseLot 14 expiring on 08.05.2082Lot 16 expiring on 04.12.2078

13

14

15

10

13

22

2,400/7,200

3,200/9,600

1,440/7,720

3,293/8,840

4,817/18,892

3,360/8,544

1,312,300

3,564,616

490,000

1,100,000

4,770,259

800,000

27.12.1995

08.06.1996

17.07.1993

04.10.1996

02.01.1996

07.02.1996

no. lokasi/location


hakmilik/tenure






171


13

14

15

16

17

18

19

No. 312Jalan Bandar 13Taman Melawati53100 Kuala Lumpur

Lot 9046, Fasa 1AJalan Haji Manan86000 KluangJohor Darul Ta’zim

No. 64 - DLeboh Bishop10200 Pulau Pinang

Darul TakafulJalan Sultan Ismail50250 Kuala Lumpur

Lot 13 & 14Lazenda Commercial CentreJalan Okk Abdullah87007 Labuan

Lot 6967, Blok 59Muara TuangJalan Datok Mohd Musa 94300 Kota SamarahanSarawak

Lot 28, 30 & 32Jalan 2/3APasar Borong68100 SelayangSelangor Darul Ehsan



Satu unit bangunanPejabat 6 tingkat (9 level)One unit of 6 storeyOffice building (9 level)

Satu unit bangunanPejabat 20 tingkatOne unit of 20 storeyOffice building

Dua unit bangunanPejabat 3 tingkatTwo units of 3 storeyOffice building




Pajakan 99 tahun99 years lease



Pajakan 999 tahun berakhir pada 30.06.2902999 years leaseexpiring on30.06.2902

Pajakan 60 tahunberakhir pada31.12.205360 years leaseexpiring on31.12.2053


14

12

31

20

14

13

21

1,920/7,070

2,658/9,930

3,972/19,630

35,192/98,485

2,504/7,200

1,312/3,750

4,447/16,800

1,245,000

1,850,000

4,950,000

60,000,000

1,709,788

650,000

2,040,000

30.06.1994

27.03.1992

24.04.1996

14.05.1997

14.01.1997

09.04.1996

17.02.1997(Lot No. 28 & 30)

12.05.1997(Lot No. 32)

no. lokasi/location


hakmilik/tenure






172


20

21

22

23

24

25

Dua tingkat bangunanPejabat 13 tingkatTwo floors of 13 storeyOffice building

Satu tingkat bangunanPejabat 13 tingkatOne floor of 13 storeyOffice building

Dua unit Rumah kedai/Pejabat 4 tingkat (kosong)Two units of 4 storeyShophouse/Office (vacant)


Dua unit Rumah kedai/Pejabat 4 tingkatTwo units of 4 StoreyShophouse/Office








10

10

9

21

19

18

9,432/8,354

9,432/6,594

3,300/10,560

3,956/7,044

3,220/12,092

3,200/12,250

2,820,000

1,650,000

900,000

700,000

1,540,000

1,430,000

09.03.1998

06.01.1999

19.12.1996

18.09.1999

18.09.1999

18.09.1999

Lot 12680Level 1 & MezzanineJalan Bukit Timbalan80000 Johor BahruJohor Darul Ta’zim

Lot 12680Level 3Jalan Bukit Timbalan80000 Johor BahruJohor Darul Ta’zim

Lot 14(S1) & 15(S1)Indah Point, Section 12Pulau IndahIndustrial Park42000 Klang, West PortSelangor Darul Ehsan

No. 1 & 2Jalan KelicapTaman Pekan Baru34200 Parit BuntarPerak Darul Ridzuan

No. 46 & 47Darul TakafulJalan Rahmat83000 Batu PahatJohor Darul Ta’zim

No. 180 & 181Jalan Tuan Hitam22000 JertehTerengganu Darul Iman

no. lokasi/location


hakmilik/tenure






173


26

27

28

29

30

31


Satu unit Rumah kedai/Pejabat 2 ½ tingkatOne unit of 2 ½ storeyShophouse/Office



Tiga unit Rumah kedai/Pejabat 2 ½ tingkatThree units of 2 ½ storey Shophouse/Office








9

12

9

8

8

21

6,339/11,309

1,400/3,570

2,001/3,120

3,200/8,019

4,195/15,050

6,383/8,032

2,240,000

260,000

450,000

2,000,000

1,320,000

1,500,000

07.05.1997

15.07.1999

01.07.1997

15.09.2000

02.10.2000

08.09.1999

Lot 82, 84 & 86Jalan Rugbi 13/30Seksyen 1340100 Shah AlamSelangor Darul Ehsan

No. 229, Jalan Shahab 2 Shahab PerdanaJalan Sultanah Sambungan05350 Alor StarKedah Darul Aman

Lot No. 3803Jalan Dato’ Ulu Muar72000 Kuala PilahNegeri SembilanDarul Khusus

No. 45Jalan Teluk Sisek25000 KuantanPahang Darul Makmur

Lot 21, 22, & 23Pusat Komersil Temerloh28000 TemerlohPahang Darul Makmur

No. 2 & 4Jalan 6C/743650 BandarBaru BangiSelangor Darul Ehsan

no. lokasi/location


hakmilik/tenure






174


32

33

34

35

36


Satu tingkat bangunanPejabat 8 ½ tingkatOne floor of 8 ½ storeyOffice building

Satu unit Rumah kedai/Pejabat 3 TingkatOne unit of 3 storeyShophouse/Office







Pajakan kecil 45 tahun berakhir pada 28.02.204745 years sub lease expiring on28.02.2047

12

11

7

23

6

1,500/14,589

7,925*

3,899/10,248

2,800/11,020

3,600/23,637

3,375,000

3,700,000

1,400,000

1,300,000

6,000,000

19.05.2000

08.07.1998

23.03.2002

08.09.1999

29.12.1997

Lot 14Arab Malaysian Business CentreJalan Pasar70000 SerembanNegeri SembilanDarul Khusus

Tingkat Bawah & MezzanineWisma Abrar InternationalLot 54, Seksyen 815350 Kota BharuKelantan Darul Naim

No. 29, Jalan DelimaPusat Perdagangan Pontian80000 PontianJohor Darul Ta’zim

Lot 11 & 12Kompleks Seri TeminJalan Ibrahim08000 Sungai PetaniKedah Darul Aman

Lot 1129 & 1130Bangunan Darul TakafulJalan Sultan Ismail20100 Kuala TerengganuTerengganu Darul Iman

no. lokasi/location


hakmilik/tenure






175


37

38

39

40

41

42



Satu tingkat bangunanPejabat 22 tingkatOne floor of 22 storeyOffice building


Dua unit bangunanPejabat 4 ½ tingkatTwo units of 4 ½ storeyOffice building

Dua unit bangunan PejabatBlok Utama - 26 tingkatBlok Annex - 29 tingkatTwo units of Office buildingMain Block - 26 storeyAnnex Block - 29 storey

Pajakan 99 tahunberakhir pada05.10.208899 year leaseexpiring on05.10.2088

Pajakan 99 tahunberakhir pada08.07.208699 year leaseexpiring on08.07.2086

Pegangan bebasFreehold




16

21

7

27

26

Blok Utama/Main Block - 35Blok Annex/Annex Block - 28

4,498/8,685

1,905/3,508

6,409*

1,600/4,000

3,200/15,200

90,427/393,508

950,000

650,000

5,500,000

560,000

1,700,000

140,000,000

17.09.1999

09.08.2002

26.06.2001

17.09.1999

03.07.2002

08.10.2004

No. 616 & 617Jalan BesarBandar Tampin 73000Negeri SembilanDarul Khusus

No. 6, Jalan 6C/743650 Bandar Baru BangiSelangor Darul Ehsan

Unit 3B/GTingkat BawahBlok 3B, Plaza SentralJalan Stesen Sentral 550470 Kuala Lumpur

No. 26 & 27Jalan TanjungPasar Baru18500 MachangKelantan Darul Naim

No. 330 & 331Jalan Sultan Yahya Petra15720 Kota BharuKelantan Darul Naim

Dataran KewanganDarul TakafulJalan Sultan Sulaiman50000 Kuala Lumpur

no. lokasi/location


hakmilik/tenure






176


43

44

45

46

47

48



Dua unit bangunanPejabat 3 tingkatTwo units of 3 storey Office building


Dua unit bangunan Pejabat 3 tingkatTwo unit of 3 storey Office building

Satu unit bangunan Pejabat 4 tingkatOne unit of 4 storey Office building





Pajakan selama 99 tahun berakhir pada 16.02.2099 99 years lease expiring on 16.02.2099

Pajakan 99 tahun berakhir pada 03.10.208099 years lease expiring on 03.10.2080

12

5

6

6

3

23

2,800/5,300

3,134/18,304

3,852/9,120

8,716/18,440

3,080/ 8,024

1,400/5,510

840,000

1,530,000

1,800,000

3,700,000

1,300,000

650,000

10.08.2004

18.08.2003

03.07.2002

27.07.2002

30.11.2004

11.09.2005

No. 2408Taman Samudera32040 Sri ManjungPerak Darul Ridzuan

No. 76A & 76Pusat PerniagaanJalan Tupai34000 TaipingPerak Darul Ridzuan

No. 10 & 11Jalan Sultan Yahya Petra15200 Kota BharuKelantan Darul Naim

No. 4197Jalan Teluk Wanjah05200 Alor StarKedah Darul Aman

No. 10 & 8Jalan Padi Emas 5/2Bandar Baru UDA 81200 Johor Bahru Johor Darul Ta’zim

No. 4, Kompleks Seri Temin Jalan Ibrahim08000 Sungai Petani Kedah Darul Aman

no. lokasi/location


hakmilik/tenure






177


49

50

51

52

53




Satu unit bangunan Pejabat 4 ½ tingkatOne unit of 4 ½ storey Office building

Dua unit bangunan Pejabat 3 tingkatTwo unit of 3 storey Office building


Pajakan selama 60 tahun berakhir pada 30.09.205260 years lease expiring on 30.09.2052


Pajakan selama 99 tahun99 years lease


9

4

3

15

9

1,600/4,172

1,400/5,500

1,540/4,012

1,470/6,117

3,218/9,280

370,000

1,000,000

650,000

790,000

1,300,000

29.11.2005

20.01.2006

14.02.2006

21.03.2006

27.10.2006

No. 16Jalan Cenderawasih Jalan Kilang Lama 09000 KulimKedah Darul Aman

Lot 1340Miri Waterfront Commercial Centre98000 Miri, Sarawak

No. 6, Jalan Padi Emas 5/2, Bandar Baru UDA, 81200 Johor BahruJohor Darul Ta’zim

No. 148, Kompleks Munshi Abdullah 75200 Melaka

No. 16474 & 16475Pusat PerniagaanInderapura, Jalan TrasRaub, Pahang

no. lokasi/location


hakmilik/tenure






* Kawasan Bina/Built Up Area

178


statistik Pemegangan sahamShareholding Statistics

g h

Modal Saham Dibenarkan / Authorised Share Capital : RM2,000,000,000

Modal Saham Berbayar / Paid-Up Capital : RM891,389,896

Jenis Saham / Class of Share : Saham Biasa Bernilai RM 1.00 Setiap Satu Ordinary Share of RM 1.00 each

Hak Mengundi / Voting Rights : Satu (1) Undi Setiap Saham Biasa One (1) Vote Per Ordinary Share

ANALISIS BERDASARKAN SAIZ PEGANGAN SAHAM / ANALYSIS BY SIZE OF SHAREHOLDINGSPada 30 Oktober 2008 / As at 30 October 2008

Saiz Pegangan Saham Bilangan % Pemegang Bilangan % PemeganganSize of shareholdings Pemegang saham saham saham / saham % of dipegang / % of No of Shareholders No of Shareholdings Shareholders Shares held

Kurang Daripada 100 / Less Than 100 70 1.11 1,409 0.00100 – 1,000 1,079 17.12 932,149 0.101,001 – 10,000 4,020 63.78 18,204,065 2.0410,001 - 100,000 1,005 15.95 28,334,900 3.18100,001 Ke Atas / 100,001 And Above 125 1.98 203,840,468 22.875% Ke Atas / 5% And Above 4 0.06 640,076,905 71.81

Jumlah / total 6,303 100.0 891,389,896 100.00

SENARAI PEGANGAN SAHAM PARA PENGARAH / LIST OF DIRECTORS’ SHAREHOLDINGSPada 30 Oktober 2008 / As at 30 October 2008

No Nama-nama Pemegangan Saham %No Names Shareholdings %

1 Tan Sri Samsudin bin Osman - -2 Encik Johan bin Abdullah - -3 Dato’ Dr Abdul Halim bin Haji Ismail 1,400 0.004 Dato’ Mohd Bakke bin Salleh - -5 Encik Zahari @ Mohd Zin bin Idris - -6 Encik Salih Amaran bin Jamiaan - -7 Puan Zaiton binti Mohd Hassan - -8 Datuk Ismee bin Ismail - -9 Dato’ Hairuddin bin Mohamed - -

179


g h

SENARAI PEGANGAN SAHAM UTAMA (5% DAN KE ATAS) / LIST OF SUBSTANTIAL SHAREHOLDINGS (5% AND ABOVE)Pada 30 Oktober 2008 / As at 30 October 2008


1. Lembaga Tabung Haji 373,667,360 41.922. Amanah Raya Nominees (Tempatan) Sdn Bhd 154,000,000 17.28 A/C skim Amanah saham Bumiputera 3. Permodalan Nasional Berhad 61,931,445 6.954. Employees Provident Fund Board 50,478,100 5.66

PECAHAN PEMEGANGAN SAHAM BUMIPUTERA / BUMIPUTERA SHAREHOLDINGS BREAKDOWNPada 30 Oktober 2008 / As at 30 October 2008

No Jenis hak Milik Bilangan Pemegang saham % Bilangan Saham %No Types of Ownership No of Shareholders % No of Shares %

1 Agensi Kerajaan / Government Agency 35 0.56 751,736,190 84.33

2 Bumiputera / Bumiputra : a) Individu / Individuals 1,364 21.64 9,463,367 1.06 b) Syarikat / Companies 48 0.76 48,313,235 5.42 c) Syarikat Nomini / Nominees Company 441 7.00 22,020,171 2.47

3 Bukan Bumiputera / Non-Bumiputra : a) Individu / Individuals 3,929 62.34 38,126,158 4.28 b) Syarikat / Companies 55 0.87 2,670,350 0.30 c) Syarikat Nomini / Nominees Company 276 4.38 5,720,500 0.64

Jumlah di Malaysia / Malaysian total 6,148 97.55 878,049,971 98.50

4 Asing / Foreign a) Individu / Individuals 91 1.44 7,402,900 0.83 b) Syarikat / Companies 2 0.03 95,000 0.01 c) Syarikat Nomini / Nominees Company 62 0.98 5,842,025 0.66

Jumlah asing / foreign total 155 2.45 13,339,925 1.50

Jumlah Keseluruhan / total 6,303 100.00 891,389,896 100.0

statistik Pemegangan saham • Shareholding Statistics

180


g h

SENARAI TIGA PULUH (30) PEGANGAN SAHAM UTAMA / LIST OF TOP THIRTY (30) SHAREHOLDERSPada 30 Oktober 2008 / As at 30 October 2008


1. Lembaga Tabung Haji 373,667,360 41.922. Amanah Raya Nominees (Tempatan) Sdn Bhd 154,000,000 17.28 A/C skim Amanah saham Bumiputera3. Permodalan Nasional Berhad 61,931,445 6.954. Employees Provident Fund Board 50,478,100 5.665. Lembaga Tabung Angkatan Tentera 41,579,998 4.666. Felda Holdings Bhd 24,947,998 2.807. Majlis Agama Islam dan Adat Melayu Terengganu 10,405,000 1.178. Mayban Nominees (Tempatan) Sdn Bhd 10,318,999 1.16 A/C for Majlis ugama islam sabah 9. Majlis Ugama Islam Sabah 9,178,000 1.0310. Amin Baitulmal Johor 8,316,000 0.9311. Majlis Agama Islam Selangor 5,873,488 0.6612. Majlis Agama Islam Negeri Pulau Pinang 5,544,000 0.6213. Majlis Amanah Rakyat 5,544,000 0.6214. Affin Nominees (Tempatan) Sdn Bhd 5,544,000 0.62 A/C Majlis ugama islam dan Adat resam Melayu Pahang 15. Majlis Agama Islam Negeri Sembilan 5,100,479 0.5716. Saleem Abdul Latif Mustafa 5,020,000 0.5617. Majlis Agama Islam dan Adat Istidat Melayu Kelantan 4,532,799 0.5118. Tabung Warisan Negeri Selangor 4,500,000 0.5019. Harakah Islamiah (HIKMAH) 3,056,000 0.3420. Warisan Harta Sabah Sdn Bhd 2,865,000 0.3221. Lembaga Pemegang-pemegang Amanah Yayasan Negeri Sembilan 2,778,519 0.3122. Yayasan Kelantan Darulnaim 2,412,540 0.2723. Pertubuhan Kebajikan Islam Malaysia (PERKIM) 2,242,294 0.2524. CIMB Trustee Berhad 2,174,750 0.24 A/C Amanah saham darul iman 25. Perbadanan Kemajuan Ekonomi Islam Negeri Perak 2,141,863 0.2426. Pertubuhan Kebajikan Islam Malaysia (PERKIM) 1,979,292 0.2227. Majlis Agama Islam dan Adat Melayu Perak Darul Ridzuan 1,848,000 0.2128. AmSec Nominees (Tempatan) Sdn Bhd 1,814,399 0.20 A/C tabung Baitulmal sarawak (Majlis islam sarawak)29. Citigroup Nominees (Asing) Sdn Bhd 1,544,700 0.17 CBny for dfA emerging Markets fund 30. Majlis Agama Islam Wilayah Persekutuan 1,506,210 0.17

statistik Pemegangan saham • Shareholding Statistics

181


BiMB holdinGs Berhad (423858-x)Aras 18, Menara Yayasan Tun Razak, 200, Jalan Bukit Bintang,55100 Kuala LumpurTel | tel : 03 2781 2999Faks | fax : 03 2781 2998

ANAK-ANAK SYARIKAT | suBsidiAries

Bank islam Malaysia Berhad (98127-x)Tingkat 14, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | tel : 03 2616 8000Faks | fax : 03 2694 7392, 2694 9077

al-wakalah nominees (tempatan) sdn Bhd (122372-P)Tingkat 14, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | tel : 03 2616 8000Faks | fax : 03 2693 7062

BiMB unit trust Management Berhad (276246-x)Tingkat 5, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | tel : 03 2694 6617, 2694 6619, 2616 8000Faks | fax : 03 2694 3516

BiMB foreign currency clearing agency sdn Bhd (507913-v)Tingkat 9, Menara Tun RazakJalan Raja Laut, Peti Surat 1108050734 Kuala LumpurTel | tel : 03 2693 4287, 2693 4297, 2693 4327Faks | fax : 03 2693 4115

syarikat takaful Malaysia Berhad (131646-k)26th Floor, Annex BlockDataran Kewangan Darul TakafulNo 4, Jalan Sultan Sulaiman50000 Kuala LumpurTel | tel : 03 2268 1984Faks | fax : 03 2274 1464

asean retakaful international (l) limited (is 9700061)Aras 14, Blok 4Financial Park OfficeJalan Merdeka87000 Labuan I.O.F.CTel | tel : 087 451 301, 451 302Faks | fax : 087 451 300

rangkaian Kumpulan serantauRegional Group Network

g h

1821234


g h

P.t. syarikat takaful indonesiaGedung Arthaloka, Lantai 14Jalan Jenderal Sudirman Kav 2Jakarta, 10220 IndonesiaTel | tel : 021 251 2345Faks | fax : 021 251 1521

BiMB securities (holdings) sdn Bhd (290167-v)Aras 18, Menara Yayasan Tun Razak200, Jalan Bukit Bintang55100 Kuala LumpurTel | tel : 03 2781 2999Faks | fax : 03 2781 2998

BiMB securities sdn Bhd (290163-x)Tingkat 1 & 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | tel : 03 4043 3533Faks | fax : 03 4041 4159

BiMsec nominees (asing) sdn Bhd (319820-P)Tingkat 1 & 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | tel : 03 4043 3533Faks | fax : 03 4041 4159

BiMsec nominees (tempatan) sdn Bhd (319821-M)Tingkat 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | tel : 03 4043 3533Faks | fax : 03 4041 4159

BiMsec asset Management sdn Bhd (419248-v)Tingkat 1 & 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | tel : 03 4043 3533Faks | fax : 03 4041 8332

syarikat al-ijarah sdn Bhd (112330-P)Aras 18, Menara Yayasan Tun Razak200, Jalan Bukit Bintang55100 Kuala LumpurTel | tel : 03 2781 2999Faks | fax : 03 2781 2998

Pembiayaan Perumahan nasional sdn Bhd (457596-a)Aras 18, Menara Yayasan Tun Razak, 200, Jalan Bukit Bintang, 55100 Kuala LumpurTel | tel : 03 2781 2999Faks | fax : 03 2781 2998

BiMB venture capital sdn Bhd (538666-h)Aras 18, Menara Yayasan Tun Razak, 200, Jalan Bukit Bintang, 55100 Kuala LumpurTel | tel : 03 2781 2999Faks | fax : 03 2781 2998

BiMB Musyarakah satu sdn Bhd (538579-a)Aras 18, Menara Yayasan Tun Razak, 200, Jalan Bukit Bintang, 55100 Kuala LumpurTel | tel : 03 2781 2999Faks | fax : 03 2781 2998

islamic Banking & finance institute Malaysia sdn Bhd (340040-M)Tingkat 3, Dataran Kewangan Darul TakafulJalan Sultan Sulaiman50000 Kuala LumpurTel | tel : 03 2031 1010Faks | fax : 03 2078 5250

rangkaian Kumpulan serantau • Regional Group Network

(Diperbadankan di Malaysia)

BoranG Proksi

Saya / Kami

No KP / No Paspot / No Syarikat

beralamat

no telefon selaku Ahli / Ahli-ahli BIMB Holdings

Berhad (“Syarikat”), dengan ini melantik

bagi jumlah saham

dan/atau bagi jumlah sahamatau sekiranya beliau tidak dapat hadir, Pengerusi Mesyuarat sebagai proksi saya/proksi kami untuk mengundi bagi pihak saya/kami dalam Mesyuarat Agung Tahunan Syarikat yang Kesebelas yang akan diadakan di Tun Rahah 1 & 2, Aras 1, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur, pada hari Rabu, 17 Disember 2008 jam 10.00 pagi atau pada mana-mana tarikh penangguhannya. Saya/kami menandakan dengan tanda “x” dalam ruang yang bersesuaian di bawah tentang bagaimana saya/kami ingin undian saya/kami dibuat:

Nota-nota :1. Ahli Syarikat yang berhak menghadiri dan mengundi di dalam mesyuarat, berhak melantik seorang atau lebih dari seorang proksi untuk hadir dan mengundi bagi pihaknya. 2. Suratcara pelantikan proksi hendaklah:-

i dalam hal seorang individu, ditandatangani oleh pelantik atau oleh wakilnya; danii dalam hal sebuah syarikat, sama ada di bawah meterai rasmi atau ditandatangani oleh wakil atau oleh seorang pegawai bagi pihak syarikat tersebut.

3. Di mana ahli syarikat melantik lebih daripada satu (1) proksi, pelantikan tersebut dikira tidak sah melainkan jika ahli syarikat tersebut menyatakan bahagian pegangan sahamnya yang diwakili oleh setiap proksi.

4. Semua borang-borang proksi hendaklah didepositkan ke Pejabat Berdaftar Syarikat di Aras 18, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur tidak kurang dari empat puluh lapan jam sebelum masa yang ditetapkan untuk mengadakan mesyuarat tersebut atau sebarang penangguhannya.

5. Seorang proksi boleh mengundi dengan secara mengangkat tangan atau pungutan suara. Sekiranya borang proksi dikembalikan tanpa dinyatakan sebarang kaedah bagaimana proksi tersebut perlu mengundi untuk sebarang hal khusus, proksi berkenaan bolehlah menggunakan budi bicara beliau untuk mengundi.

6. Penyerahan borang proksi tidak menghalang seorang ahli untuk hadir sendiri pada mesyuarat sekiranya ahli berkenaan mengambil keputusan untuk hadir.

*Potong jika tidak berkenaan.

Tertakluk pada arahan pengundian yang dinyatakan di atas, proksi saya/ kami boleh mengundi atau mengecualikan diri daripada mengundi mana-mana resolusi sebagaimana yang beliau/ mereka fikirkan sesuai.

Jika pelantikan proksi di bawah meterai

Meterai Rasmi Adalah diturunkan di sini menurut Tataurusan

Pertubuhan Syarikat di hadapan:

Pengarah Pengarah/ Setiausaha

dalam kapasitinya sebagai *ahli/*wakil kepada ahli/*penama yang diberi kuasa oleh

(pemilik benefisial)

Meterai

Bilangan saham yang dipegang :

No Akaun Sekuriti :

Tarikh :

Bilangan saham yang dipegang :

No Akaun Sekuriti :

Tarikh :

Jika pelantikan proksi di bawah kuasa

Ditandatangani oleh ahli individu/ pegawai atau wakil kepada ahli/ penama yang diberi kuasa

(pemilik benefisial)

Resolusi Biasa 1

Resolusi Biasa 2

Resolusi Biasa 3

Resolusi Biasa 4

Resolusi Biasa 5

Resolusi Biasa 6

Resolusi Biasa 7

Resolusi Biasa 8

Resolusi Biasa 9

Resolusi Biasa 10

Menyokong Menentang

Untuk menerima Akaun diaudit bagi tahun kewangan berakhir 30 Jun 2008 beserta dengan Laporan Pengarah dan Juruaudit mengenainya.

Untuk mengisytiharkan dividen pertama dan akhir sebanyak 1.45% ditolak cukai sebanyak 26% bagi tahun kewangan berakhir 30 Jun 2008.

Untuk memilih semula sebagai Pengarah, Dato’ Dr. Abdul Halim bin Ismail yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan oleh sebab layak telah menawarkan diri untuk dipilih semula.

Untuk memilih semula sebagai Pengarah, Datuk Ismee bin Ismail, yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan oleh sebab layak telah menawarkan diri untuk dipilih semula.

Untuk memilih semula sebagai Pengarah, Puan Zaiton binti Mohd Hassan, yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan oleh sebab layak telah menawarkan diri untuk dipilih semula.

Untuk memilih semula Encik Johan bin Abdullah, yang bersara menurut Artikel 66 Tataurusan Persatuan Syarikat.

Untuk meluluskan yuran para Pengarah bagi tahun kewangan berakhir 30 Jun 2008.

Untuk melantik semula Tetuan KPMG Desa Megat & Co sebagai Juruaudit Luar Syarikat sehingga Mesyuarat Agung Tahunan yang akan dating pada tahun 2009 dan juga untuk memberikan kuasa kepada para Pengarah untuk menetapkan imbuhan mereka.

Cadangan Pembaharuan Mandat Pemegang Saham untuk Transaksi Berulang Pihak Berkaitan yang Berbentuk Hasil atau Perdagangan.

Untuk Memberi Kuasa kepada Lembaga Pengarah menerbitkan saham menurut Seksyen 132D Akta Syarikat, 1965.

(Incorporated in Malaysia)

forM of Proxy

I / We

NRIC No. / Passport No. / Company No

of

telephone no being a member / members of BIMB Holdings

Berhad (“the Company”), hereby appoint

in respect of shares of

and/or in respect of shares

of

or failing him/her the Chairman of the meeting as my/our proxy/proxies to vote for me/us and on my/our behalf at the 11th Annual General Meeting of the Company to be held at Tun Rahah 1 & 2, Level 1, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur on Wednesday, 17 December 2008 at 10.00 a.m and at any adjournment thereof. I/We indicate with an “x” in the appropriate spaces below as to how I/we wish my/our vote to be cast:

Notes :1. A member of the Company entitled to attend and vote at this meeting is entitled to appoint one or more proxies to attend and vote for him.2. The instrument appointing a proxy shall :

i in case of an individual, be signed by the appointor or by his attorney; andii in case of a corporation, be either under its common seal or signed by its attorney or by an officer on behalf of the corporation.

3. Where a member appoints more than one (1) proxy the appointment shall specify the proportions of his holdings to be represented by each proxy.4. All proxy forms should be deposited at the Company’s Registered Office, Level 18, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur not less than

forty-eight hours before the time fixed for holding of the meeting or any adjournment thereof. 5. A proxy may vote on a show of hands or a poll. If the form of proxy is returned without an indication as to how the proxy shall vote on any particular matter, the proxy may

exercise his discretion as to whether to vote on such matter.6. The lodging of a form of proxy does not preclude a member from attending and voting in person at the meeting should the member subsequently decides to do so.

*Delete if inappropriate

Subject to the abovestated voting instructions, my/our proxy may vote or abstain from voting on any resolution as *he/*she/*they may think fit.

If appointment of proxy is under seal

The Common Seal of was hereto affixed in accordance with its

Articles of Association in the presence of :-

Director Director/Secretary

In its capacity as *member/*attorney of member/*authorised nominee of

(beneficial owner)

Seal

No. of shares held :

Securities Account No :

Date :

No. of shares held :

Securities Account No :

Date :

If appointment of proxy is under hand

Signed by *individual member/*officer or attorney of member/*authorised nominee of

(beneficial owner)

Ordinary Resolution 1










To receive the Audited Accounts for the financial year ended 30 June 2008 together with the Reports of the Directors and Auditors thereon.

To declare a first and final dividend of 1.45 % less 26% tax in respect of the financial year ended 30 June 2008.

To re-elect Dato’ Dr. Abdul Halim bin Ismail a Director who is retiring by rotation pursuant to Article 61 of the Company’s Articles of Association and being eligible has offered himself for re-election.

To re-elect Datuk Ismee bin Ismail a Director who is retiring by rotation pursuant to Article 61 of the Company’s Articles of Association and being eligible has offered herself for re-election.

To re-elect Puan Zaiton binti Mohd Hassan a Director who is retiring by rotation pursuant to Article 61 of the Company’s Articles of Association and being eligible has offered herself for re-election.

To re-elect Encik Johan bin Abdullah who is retiring pursuant to Article 66 of the Company’s Articles of Association and seeking re-election.

To approve the Directors’ fees for the financial year ended 30 June 2008.

To re-appoint Messrs. KPMG Desa Megat & Co. as External Auditors of the Company until the conclusion of the next Annual General Meeting in year 2009 and to authorise the Directors to fix their remuneration.

Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature.

To authorise the Board of Directors to issue shares pursuant to Section 132D of the Companies Act, 1965.

for against

BIMB Holdings Berhad (423858-X)

Level 18, Menara Yayasan Tun Razak200, Jalan Bukit Bintang

55100 Kuala LumpurTel: +603 2781 2999Fax: +603 2781 2998

Documents

Laporan Tahunan 2008 Annual Report - BIMB Holdings