Laporan Tahunan 2013 Annual Report - ECM Libra

Laporan Tahunan 2013 Annual Report

ECM Libra Financial Group Berhad (713570-K)

3 CorporateInformation

4 Directors’Profile

8 GroupChiefExecutiveOfficer

9 BoardAudit&RiskManagement CommitteeReport

11 CorporateGovernanceStatement

18 Chairman’sStatement

20 NoticeofAnnualGeneralMeeting

24 StatementAccompanying NoticeofAnnualGeneralMeeting

26 Directors’Report

32 StatementbyDirectors

32 StatutoryDeclaration

33 Auditors’Report

35 StatementsofFinancialPosition

38 StatementsofComprehensive Income

40 StatementsofChangesinEquity

44 StatementsofCashFlows

48 NotestotheFinancialStatements

144 OtherInformation

FormofProxy

contents

corporate information

DIRECTORSDato’SeriKalimullahbinMasheerulHassan(Chairman)Dato’Ab.HalimbinMohyiddin(ViceChairman)MrLimKianOnnDatukKamarudinbinMdAliDato’OthmanbinAbdullahEnMahadzirbinAzizanMrLumSingFai

SECRETARIESMsIreneLowYuetChunMsChanSoonLee

AUDITORSMessrsErnst&YoungCharteredAccountantsLevel23A,MenaraMileniumJalanDamanlelaPusatBandarDamansara50490KualaLumpurTel :03-74958000Fax:03-20959076

REGISTRARTricorInvestorServicesSdnBhdLevel17,TheGardensNorthTowerMidValleyCityLingkaranSyedPutra59200KualaLumpurTel :03-22643883Fax :03-22821886

REGISTERED OFFICE2ndFloor,WestWing,BangunanECMLibra8JalanDamansaraEndahDamansaraHeights50490KualaLumpurTel :03-20891888Fax :03-20961188

BUSINESS ADDRESSGroundFloor,EastWing,BangunanECMLibra8JalanDamansaraEndahDamansaraHeights50490KualaLumpurTel :03-20891888Fax :03-20961188

WEBSITEwww.ecmlibra.com

LISTINGMainMarketofBursaMalaysiaSecuritiesBerhad

ECMLibraFinancialGroupBerhadANNUALREPORT20133

directors’ profile

Dato’SeriKalimullahbinMasheerulHassanChairman/Non-IndependentNon-Executive

Dato’SeriKalimullahbinMasheerulHassan,aMalaysian,aged55,beganhiscareerinjournalismin1979andmovedontothecorporatesector in1995.Hehasgainedvastcorporateexperience,havingheldkeypositions invariousMalaysianlistedcorporations.InSeptember2002,Dato’SeriKalimullahwasappointedaschairmanofthenationalnewsagency,Bernama,foratwo-yeartermbyDYMMYangdi-PertuanAgongbutresignedtotakeonhispositionasGroupEditor-in-ChiefinTheNewsStraitsTimesPress(M)Bhd(“NSTP”)on1January2004.HeleftasGroupEditor-in-Chiefon31December2005uponexpiryofhiscontractandreturnedtohis financialservicesbusiness.HewasappointedDeputyChairmanofNSTPon1January2006andresignedon31December2008.Dato’SeriKalimullahwasappointedbytheFederalGovernmentasamemberoftheNationalUnityAdvisoryPanelon1January2005foratwo-yearterm.Hewasre-appointedforanothertwo-yeartermon1January2007.

Dato’SeriKalimullahwasappointedChairmanoftheBoardofDirectors(“Board”)ofECMLibraFinancialGroupBerhad(“ECMLFG”or“Company”)on16June2006.Hewasre-designatedExecutiveChairman&CEOwitheffectfrom1May2007,apositionheheldtill5February2010.On6February2010,hewasre-designatedChairmanoftheCompany.HeattendedsixoftheeightBoardmeetingsheldduringthefinancialyearended31January2013.

Dato’SeriKalimullahisalsoadirectorofAirAsiaXBerhadandatrusteeofECMLibraFoundation.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.

Dato'Ab.HalimbinMohyiddinViceChairman/IndependentNon-Executive

Dato’ Ab. Halim bin Mohyiddin, a Malaysian, aged 67, serves on the Board of Amway (Malaysia) Holdings Berhad, Digi.ComBerhad, HeiTech Padu Berhad, Idaman Unggul Berhad, KNM Group Berhad, Kumpulan Perangsang Selangor Berhad, UtusanMelayuMalaysiaBerhad,IdrisHydraulic(Malaysia)Berhad,TahanMalaysiaBerhad,AmcorpPropertiesBerhad,RCECapitalBerhadandPetronasGasBerhad.

Dato’Ab.HalimgraduatedwithaBachelorofEconomics(Accounting)degreefromUniversityofMalayain1971andthereafterjoinedUniversitiKebangsaanMalaysiaasaFacultymemberoftheFacultyofEconomics.HeobtainedhisMastersofBusinessAdministrationdegreefromUniversityofAlberta,Canadain1973.

Dato’Ab.Halimretired fromKPMGMalaysia inOctober2001,a firmhe joined in1977andhadhisearlyaccountingtraininginMalaysiaandtheUnitedStates.Hewasmadepartnerofthefirmin1985.Atthetimeofhisretirement,hewasthepartnerin-charge of the Assurance and Financial Advisory Services Divisions of the firm and was also looking after the Securede-CommercePracticeofthefirm.

Dato’Ab.HalimwasappointedViceChairmanofECMLFGon26March2007.HeattendedalleightBoardmeetingsheldduringthefinancialyearended31January2013.HeisamemberoftheBoardNominationCommittee(“BNC”)andBoardRemunerationCommittee(“BRC”)ofECMLFG. HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.

4ECMLibraFinancialGroupBerhadANNUALREPORT2013

directors’ profile continued

DatukKamarudinbinMdAliIndependentNon-Executive

Datuk Kamarudin bin Md Ali, a Malaysian, aged 63, is a retired police commissioner. He holds a Masters in Science(Engineering)fromUniversityofBirmingham,UnitedKingdomandBachelorofScience(Honours)(MechanicalEngineering)fromUniversityofStrathclyde,Glasgow,Scotlandandhasattendedspecialisedcoursesat theRoyalCollegeofDefenseStudies, United Kingdom and University of Pittsburgh in the United States. Datuk Kamarudin retired from the RoyalMalaysiaPolice(“RMP”)on4May2006withmorethan30years’experiencewithextensiveknowledgeandskillsinlogisticsandfinancialmanagement,manpowerdevelopment,strategicplanning,trainingandcrimesuppressionandprevention,gainedthroughawiderangeofcommandpostsandmanagerialcapacitiesheldduringhistenureintheRMP.HeisactivelyinvolvedinNGOsandisnotedforhiscontributiontotheMalaysianCrimePreventionFoundationofwhichheisoneofthethreeViceChairmen.

DatukKamarudinwasappointedtotheBoardofECMLFGon16June2006. HeattendedalleightBoardmeetingsheldduringthefinancialyearended31January2013.HeistheChairmanoftheBoardAudit&RiskManagementCommittee(“BARMC”)andamemberoftheBNCofECMLFG.

DatukKamarudin isalsoadirectorofAnnJooResourcesBerhad,MasterskillEducationGroupBerhad,GabunganAQRSBerhadandLibraInvestBerhad.HeresignedfromtheBoardofECMLIBon14December2012.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.

MrLimKianOnnNon-IndependentNon-Executive

MrLimKianOnn,aMalaysian,aged56,isamemberoftheInstituteofCharteredAccountantsinEngland&WalesandtheMalaysianInstituteofAccountants.HeservedhisarticleshipwithKMGThomsonMcLintockinLondonforfouryearsandwasaconsultantwithAndersenConsultingfrom1981to1984.Between1984and1993,hewaswithHongLeongGroup,MalaysiaasanExecutiveDirectorinthestockbrokingarmresponsibleforcorporatefinance,researchandinstitutionalsales.MrLimfoundedtheLibraCapitalGroupin1994andco-foundedtheECMLibraGroupin2002.

MrLimwasappointedtotheBoardofECMLFGon16June2006andre-designatedManagingDirectorwitheffectfrom1May2007,apositionheheldtill5August2010.On6August2010,hewasre-designatedNon-ExecutiveDirectoroftheCompany.HeattendedalleightBoardmeetingsheldduringthefinancialyearended31January2013.

MrLimisalsothenon-executiveChairmanofPlatoCapitalLimited,acompanylistedontheStockExchangeofSingapore,adirectorofAirAsiaXBerhadandatrusteeofECMLibraFoundation.HeresignedfromtheBoardofECMLibraInvestmentBankBerhad(“ECMLIB”)on14December2012.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.


directors’ profilecontinued

EnMahadzirbinAzizanIndependentNon-Executive

EnMahadzirbinAzizan,aMalaysian,aged64,isaBarrister-At-LawfromLincoln’sInn,London,UnitedKingdomandwascalledtotheEnglishBarin1978.

EnMahadzirhasheldkeypositionsbothintheprivateandpublicsectors.Aftergraduation,hejoinedtheJudicialandLegalServiceoftheMalaysianGovernmentasaDeputyPublicProsecutorandFederalCounselandsubsequentlyventuredintotheprivatesectorandservedMalaysianInternationalShippingCorporationBerhadandIsland&PeninsularBerhad,thepropertyarmofPermodalanNasionalBerhad. Whilst intheprivatesector,healsoservedasAhliMajlisMARA,directorofAmanahRayaBerhadandTabungHajigroupofcompaniesaswellasvariousotherdirectorshipsingovernment-linkedcompanies.

EnMahadzirwasappointedtotheBoardofECMLFGon16June2006.HeattendedalleightBoardmeetingsheldduringthefinancialyearended31January2013.HeistheChairmanoftheBRC,amemberoftheBARMCandBNCofECMLFG.

EnMahadzir isalsoadirectorofSyarikatTakafulMalaysiaBerhadandLibraInvestBerhad.HeresignedfromtheBoardofECMLIBon14December2012.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.

Dato'OthmanbinAbdullahIndependentNon-Executive

Dato’OthmanbinAbdullah,aMalaysian,aged64, isanaccountantbyprofessionwithextensive financialknowledgeandskills.Hebeganhiscareerin1977asTreasuryAccountantattheAccountantGeneral’sDepartmentandheldvariouspositions intheDepartment.HewassecondedtoSabahElectricityBoardasDeputyGeneralManager (Finance) from1987to1993andsubsequentlywastransferredbacktotheDepartmentandwasappointedasAccountantGeneralofMalaysiafrom2003to2005.

Dato’OthmanwasappointedtotheBoardofECMLFGon16June2006.HeattendedalleightBoardmeetingsheldduringthefinancialyearended31January2013.HeistheChairmanoftheBNCandamemberoftheBARMCofECMLFG.

Dato’OthmanisalsoadirectorofSyarikatPerumahanNegaraBerhadandSyarikatTakafulMalaysiaBerhad.Heresignedfrom the Board of ECMLIB on 14 December 2012. He has no family relationship with the other directors or majorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.


directors’ profilecontinued

MrLumSingFaiNon-IndependentNon-Executive

MrLumSingFai,aMalaysian,aged48,istheManagingDirectorofCapitalMarketsforAmcorpGroupBerhad.

MrLum,agraduateofUniversityofMalayawithaBachelorofEconomics(Honours)inBusinessAdministration,hasover25yearsofextensiveexperienceinbankingandfinance.AsManagingDirectoroftheCapitalMarketsdivisionofAmcorpGroupBerhad,hehassuccessfully ledabroadrangeoffinancialserviceendeavoursduringhis18years’tenure. Priorto joiningAmcorpGroupBerhad,MrLumwasattachedtoSouthernBankBerhadfrom1987to1994workinginvariouscapacitiesfromoperationstocorporatebanking.HealsositsontheBoardofthecompanieswithintheAmcorpGroupBerhad.

MrLumwasappointedtotheBoardofECMLFGon6February2008.HeattendedalleightBoardmeetingsheldduringthefinancialyearended31January2013.HeisamemberoftheBNCandBRCofECMLFG.

MrLumresignedfromtheBoardofECMLIBon14December2012.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.


group chief executive officer

MsAzlinbintiArshadMsAzlinbintiArshad,aMalaysian,aged40,holdsaBachelor’sDegreeinAccounting&Finance(Hons.)fromUniversityofGlamorgan,SouthWales,TheUnitedKingdom.

MsAzlinhasextensiveexperienceinCorporateFinancespanning16years,havingbeenattachedtotheCorporateFinancedepartmentofthethenAmanahMerchantBankBerhad(nowAllianceInvestmentBankBerhad)andsubsequentlythethen Aseambankers Malaysia Berhad (now Maybank Investment Bank Berhad). She left Maybank Investment BankBerhadin2009tojoinECMLibraInvestmentBankBerhadasHeadofCorporateFinance&Director,InvestmentBanking,andsubsequentlyassumedthepostofDeputyChiefExecutiveOfficerinDecember2010tillDecember2012.ShewasaQualifiedSeniorPersonnelregisteredwiththeSecuritiesCommission.ShehasextensiveCorporateFinanceexperiencewhereshehasbeendirectlyinvolved,atvariouslevels,ininitialpublicofferings,secondaryofferings,reversetake-overs,mergersandacquisitions, listingofRealEstate InvestmentTrusts,generaloffers,andprivatedebtsecurities,amongstothers. Her experience and network also extends into the private equity arena where she has worked with local andinternationalfirmsinstructuringdeals.

MsAzlinwasappointedGroupChiefExecutiveOfficerofECMLibraFinancialGroupBerhad(“ECMLFG”)on22January2013. She has no interest in the securities of ECMLFG or its subsidiaries, no family relationship with the directors orsubstantialshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.


board audit & risk management committee report

Constitution

TheBoardAudit&RiskManagementCommittee(“BARMC”)wasestablishedon28June2006bytheBoardofDirectors.

Composition

ThemembersoftheBARMCduringthefinancialyearended31January2013were:

Chairman : DatukKamarudinbinMdAli (IndependentNon-ExecutiveDirector)

Members : Dato’OthmanbinAbdullah (IndependentNon-ExecutiveDirector)

EnMahadzirbinAzizan (IndependentNon-ExecutiveDirector)

Functions and Responsibilities of the BARMC

ThekeyfunctionsandresponsibilitiesoftheBARMCare:

(i) to review and approve the internal and statutory audit plans and the audit reports, and evaluate internal controls, including risk management andcompliancematters;

(ii) toreviewthequarterlyfinancialresultsandyear-endfinancialstatementsoftheGroupandtheCompany;

(iii) toconsiderrelatedpartytransactionsandconflictofinterestsituationsthatmayarisewithinthecompaniesintheGroup;and

(iv) to review the appointment/re-appointment of the external auditors and their fees, and the scope, competency and resources of the internal audit function.

Activities

Duringthefinancialyearended31January2013,seven(7)meetingswereheldwhichwereattendedbyallBARMCmembers.

TheBARMCreviewedthequarterlyfinancialstatementsandauditedfinancialstatementsoftheCompanyandGrouppriortosubmissiontoBankNegaraMalaysia (“BNM”) for approval and its subsequent release to Bursa Malaysia Securities Berhad (“Bursa Securities”). In reviewing the quarterly financialstatementsandauditedfinancialstatementsoftheCompanyandGroup,theBARMCensuredfairandtransparentreportingandpromptpublicationofthesaidstatements.

TheBARMCalsoreviewedtheexternalauditors’scopeofworkandauditplanfortheGroup,consideredsignificantchangesinstatutoryandaccountingrequirements and auditing issues, reviewed the management letter and management’s response and discussed applicable accounting and auditingstandards.TheBARMCmetwith theexternalauditors twiceduringthe financialyearwithout thepresenceof theotherDirectorsormanagement. TheBARMCalsoreviewedandapprovedtheresourcerequirementsoftheinternalauditfunction,therisk-basedstrategicinternalauditplan,auditprogrammesandreviewedtheauditfindings/recommendations.

ThekeyactivitiesoftheBARMCduringthefinancialyearunderreviewwereasfollows:

(i) Internal Audit

TheBARMCreviewedtheauditsundertakenbyGroupInternalAudit,reportingontheoutcomeoftheoperationsandsystemsauditsconducted,theeffectivenessoftheriskmanagementandinternalcontrolsimplementedandhighlightingkeycontrolissuesimpactingtheoperationsoftheGroup.Indischargingitsrole,GroupInternalAudit:


board audit & risk management committee reportcontinued

(i) Internal Audit(continued)

•evaluateswhethertheGroupisincompliancewithinternalpoliciesandprocedures,applicablelaws,guidelinesanddirectivesissuedbyregulatory authoritiesinrespectoftheGroup’sbusinesses;

•evaluatesthequalityandappropriatenessofmanagement’sapproachtoriskandcontrol intheir frameworkobjectivesandeffectivenessofrisk managementpracticesandrobustnessofstresstestingprocedures;

•assessestheadequacyandeffectivenessofinternalcontrolsystemsandgovernanceprocessesimplemented,i.e.,accounting,systemandoperational controls,bygivingopinionsontheeffectivenessofthesaidcontrols,continuityandreliabilityofinformationsystemsandprovideassurancethat sufficientcontrolsareinplacetosafeguardassets;

•assesses the adequacy of controls to ensure the reliability (including accuracy and completeness), integrity and timeliness of the regulatory reporting,accountingrecords,financialreportsandmanagementinformation;and

•assists the management to review and strengthen the control features to prevent recurrence of fraud, errors, lapses and omissions and other significantcontrolweaknesses.

TheseenabledtheBARMCtoexecuteitsoversightfunctionandformanopinionontheadequacyofmeasuresundertakenbymanagement.

Incarryingoutitsduties,GroupInternalAuditreliedontheInternationalStandardsfortheProfessionalPracticeof InternalAuditing,RulesofBursa Securities(Rule510.2),BNMGuidelinesonInternalAudit(GP10)andrelevantSecuritiesCommissiondirectivesasauthoritativeguidingprinciplesfor internalauditing.

ThetotalcostincurredfortheinternalauditfunctionfortheGroupduringthefinancialyearwasaboutRM1.2million.

(ii) Risk Management

TheBARMCoverseestheestablishmentofa robust riskmanagement infrastructure, reviewstheadequacyand integrityof internalcontrolsystemsandensuresthatGroupRiskManagementperformsitsdutiesindependentlyoftherisktakingactivities.GroupRiskManagementprovidesthecentralresourcefordevelopingtoolsandmethodologiesfortheidentification,quantification,andmanagementoftheportfolioofriskstakenbytheGroupasawhole.

(iii) Compliance

The BARMC reviews the reports of Group Compliance on compliance of the Stockbroking, Options & Futures, Fund Management, Collective InvestmentSchemes,Research,offshoreoperationsandAnti-MoneyLaunderingandCounterFinancingofTerrorismmatters.

Theinternalaudit,riskmanagementandcompliancefunctionswereorganisedonaGroupbasiswiththerespectivedepartmentsestablishedatECMLibraInvestmentBankBerhad(“ECMLIB”)upto14December2012.SubsequenttothedisposalofECMLIBonthesaiddate,theBARMChasconsideredvariousproposals from professional service providers and has approved the outsourcing of the internal audit function. As the asset management subsidiaryis regulated by the Securities Commission (“SC”), the outsource arrangement is subject to the approval of the SC in accordance with the Guidelines onOutsourcingforCapitalMarketIntermediaries.ThecompliancefunctionhassincebeenestablishedattheassetmanagementsubsidiarywhilsttheGroupChiefExecutiveOfficeroverseesriskmanagementonaGroupbasis.

Therewasnoallocationofoptionsforthefinancialyearended31January2013pursuanttotheEmployees’ShareOptionSchemeoftheCompany.

ThisReportwasapprovedbytheBoardofDirectorson20March2013.


corporate governance statement

TheBoardofDirectors(“Board”)ofECMLibraFinancialGroupBerhad(“ECMLFG”or“Company”)iscommittedtomanagetheECMLFGGroupinlinewithcorporate governance practices as set out in the Malaysian Code on Corporate Governance 2012 (“Code”). The Board firmly believes that corporateaccountabilitycomplementsbusinesspracticesthatwillfacilitatetheachievementoftheCompany’sgoalsandobjectives.

Inpreparingthisstatement,theBoardispleasedtoreportthattheGrouphasappliedtheprinciplesandcompliedwiththerecommendationsassetoutintheCodethroughoutthefinancialyearended31January2013exceptasotherwisestated.

A. DIRECTORS

(i) The Board

TheCompanyisledbyaproactiveBoardwithablendofgoodmanagementandentrepreneurialskills,supportedbyindependentDirectorswho bringtotheBoardtheirdiversefieldsoftrainingandexperiences.

TheBoardisprimarilyentrustedwiththeresponsibilityofsettingthegoals,strategiesandthebusinessandorganisationalpoliciesoftheGroup.ItalsooverseestheconductoftheGroup’sbusinesses,ensuringvariouscontrolsystemsareinplaceaswellasregularlyevaluatingsuchsystemsto ensure its integrity. The Board Charter approved by the Board on 22 November 2012 and made available on the Company’s website, hasestablishedthefunctions,rolesandresponsibilitiesoftheBoardwhichalsosetsoutthecodeofconductforDirectorsandemployeesoftheGroup.InformulatingthegoalsandstrategiesoftheGroup,theBoardensuresthatparticularattentionisgiventopromotesustainability. TheGrouphasbeenactivelyinvolvedinpromotingsocialresponsibilitythroughtheECMLibraFoundation,withitsactivitieselaboratedintheChairman’sStatementonpages18to19.

The Chairman of the Board leads the Directors in the performance of the Board’s responsibilities and oversight of management whilst theresponsibility of managing the Group’s business activities, implementing the Board’s policies and overseeing the day-to-day management isdelegatedtotheChiefExecutiveOfficer(“CEO”),whoisaccountabletotheBoard.

ToensurethattheECMLFGGroup isefficientlymanaged,theBoardmeetsonaquarterlybasisandadditionallyasandwhenrequired,withaformalscheduleofmattersspecificallyreservedforitsdeliberationanddecision.Duringthefinancialyearunderreview,eight(8)Boardmeetingswere held and all the Directors had complied with the requirements in respect of Board meeting attendance as provided in the Articles ofAssociation.AllDirectorsattendedtheeight(8)meetingsexceptforDato’SeriKalimullahbinMasheerulHassanwhoattendedsix(6)meetingsheldduringthefinancialyearended31January2013.

TheBoardcollectively reviewsandconsidersallcorporateproposalsprior to their implementation. Corporateproposalsareput tovoteaftercarefuldeliberation.TheChairmanofthemeetingshallhaveasecondorcastingvoteintheeventofatieinvotesfororagainstanyparticularproposal,exceptwhenonlytwoDirectorsarecompetenttovoteonthequestioninissue.

The Directors are updated on ECMLFG Group’s affairs at Board meetings.The Directors are encouraged to obtain information on the Group’sactivitiesatanytimebyconsultationwithseniormanagement.ThisistoenabletheBoardmemberstodischargetheirdutiesandresponsibilitiescompetentlyandinaninformedmanner.

TheChairmanoftheBoard,Dato’SeriKalimullahbinMasheerulHassan,isanon-independentnon-executivemember. IncompliancewiththeCode,theBoardcomprisedamajorityofindependentDirectors.ThepositionofGroupCEOisheldbyMsAzlinbintiArshad,whowasappointedon22January2013.PriortoMsAzlin’sappointment,thepositionofCEOwasleftvacant.

(ii) Board Balance

For the financialyearended31January2013, theBoardcomprisedseven (7)Directors, four (4)ofwhomare independent. AllDirectorsholdpositionsinanon-executivecapacity.ThereisacleardivisionofresponsibilitiesattheheadoftheCompanytoensureabalanceofauthorityandpower.Thewidespectrumofknowledge,skillsandexperienceoftheBoardmembersgivesaddedstrengthtotheleadershipwhichisnecessaryfortheeffectivestewardshipoftheGroup.


corporate governance statementcontinued

A. DIRECTORS (continued)

(ii) Board Balance (continued)

TheBoardrecognisestheimportanceandcontributionof its independentnon-executiveDirectors. Theyrepresenttheelementofobjectivity,impartialityandindependentjudgmentoftheBoard.ThisensuresthatthereisadequatecheckandbalanceattheBoard.Thefour(4)independentDirectorsoftheCompanyprovidetheBoardwithvastandvariedexposure,expertiseandbroadbusinessandcommercialexperiences.

NoneoftheindependentDirectorshasservedacumulativeperiodofnine(9)yearswiththeCompany.

The Board has identified Datuk Kamarudin bin Md Ali, the Chairman of the Board Audit & Risk Management Committee (“BARMC”), as theindependentnon-executiveDirectortowhomconcernsmaybeconveyed,whowouldbringthesametotheattentionoftheBoard.

AbriefprofileoftheDirectorsissetoutonpages4to7.

(iii) Supply of information

Boardmembersareprovidedwiththenotice,settingouttheagendaandthecomprehensiveBoardpapers inatimelymannerpriortoBoardmeetings.ThisistoensureandenablethemembersoftheBoardtodischargetheirdutiesandresponsibilitiescompetentlyandinawell-informedmanner. All members of the Board have access to the advice and support of suitably qualified Company Secretaries, and where necessary,independentprofessionaladvisersattheexpenseoftheCompany.TheBoardwilldiscussandcollectivelydecideonseekingsuchindependentadvice when the need arises. They also have unlimited access to all information with regard to the activities of the ECMLFG Group duringdeliberationsattheBoardmeetingsaswellasthroughregularinteractionwiththemembersoftheseniormanagement.

(iv) Appointments to the Board

The Board Nomination Committee (“BNC”), set up on 27 September 2006, comprised four (4) independent non-executive Directors and one(1) non-independent non-executive Director during the financial year ended 31 January 2013. The BNC is responsible for proposing andrecommendingnewnomineestotheBoardaswellasDirectorstofillseatsonBoardcommittees;assessingtheeffectivenessoftheBoardandtheBoardcommittees;andreviewtherequiredmixofskills,experienceandotherqualitieswhichDirectorsshouldbringtotheBoard.TheBNCisalsoresponsibleforassessingandrecommendingtheappointmentofthekeyseniormanagementoftheGroup.

The assessment of the Board and Board Committees based on, amongst others, their skills, experience, contribution and commitment, isundertakenannuallyandisformallydocumented.TheBNChasalsoestablishedthecriteriaforandundertakenanassessmentoftheindependentDirectors forthefinancialyearunderreview. Whilst theDirectorsrecognisethecontributionthatwomencouldbringtotheBoard, ithasnotestablishedapolicyorspecifictargetfortheappointmentofwomencandidatesinitsrecruitmentofdirectors.InconsideringappointmentstotheBoard,dueregardwouldbegiventotheskills,experience,contributionandcommitmentthatapersonwouldbringtotheBoard.

TheDirectorswillinformtheBoardontheirappointmentasdirectorinothercompanies.

TheBNChasassessedtheperformanceoftheBoardandBoardCommitteesandissatisfiedwithitscurrentcompositionandthatexpectationshavebeenmet.TherewasnonewappointmentmadetotheBoardduringthefinancialyear.

TheBNCduringthefinancialyearended31January2013comprised:

-Dato’OthmanbinAbdullah(Chairman)

-DatukKamarudinbinMdAli

-EnMahadzirbinAzizan

-Dato’Ab.HalimbinMohyiddin

-MrLumSingFai



A. DIRECTORS (continued)

(v) Re-election

TheArticlesofAssociationoftheCompanyprovidethatatleastone-thirdoftheDirectorsaresubjecttoretirementbyrotationateachAnnualGeneralMeeting(“AGM”)andthatallDirectorsshallretireatleastonceineverythreeyears.TheArticlesofAssociationalsoprovidethataDirectorwhoisappointedbytheBoardinthecourseoftheyearshallbesubjecttore-electionatthenextAGMtobeheldfollowinghisappointment.

Directors over seventy years of age are required to submit themselves for re-appointment annually in accordance with Section 129(6) of theCompaniesAct,1965.

(vi) Directors’ Training

All Directors of the Company have completed the Mandatory Accreditation Programme. The Company does not have a formal trainingprogrammefornewDirectorsbuttheyreceiveregularbriefingsandupdatesontheGroup’sbusinesses,operations,riskmanagement,internalcontrols, finance and changes to relevant legislation, rules and regulations. The Directors are encouraged to attend courses, briefings andseminars tokeepthemselvesabreastwith latestdevelopments inthe industry, regulatoryupdatesorchangesandtoenhancetheirskillsandknowledge.

During the financial year under review, a Board member attended the Financial Institution Directors Education (“FIDE”) Programme, aprogrammedevelopedbyBankNegaraMalaysia incollaborationwithPerbadanan InsuransDepositMalaysiaandthe InternationalCentre forLeadershipinFinance.AllDirectorsoftheCompanyhavecompletedtheFIDEProgrammewhichisaimedatpromotinghighimpactboardsinfinancial institutions. In addition, individual Board members have also participated in the following external training courses, briefings orseminarstokeepupdatedonlatestdevelopmentsandtoenhancetheirknowledge:

-FIDEElectiveProgrammeonInternalCapitalAdequacyAssessmentProcessManagement

-EffectiveDisputeResolutionforCorporateMalaysia

-RoleofAuditCommitteeinAssuringAuditQuality

-SeminaronMalaysianCodeonCorporateGovernance2012

-Governance,RiskManagementandCompliance:WhatDirectorsShouldKnow

-SeminarontheNewCorporateGovernanceBlueprintandRegulatoryUpdate

-TheBuzanTechniques:MindMappingandCreativity

-AmendmenttoListingRequirementsofBursaSecurities–NewCorporateGuideandCorporateGovernanceBlueprint2011

-ConcentrationonConvergenceofInternationalFinancialReportingStandardsandMalaysianFinancialReportingStandards

-TheMalaysianCodeonCorporateGovernance–TheImplicationandChallengestoPublicListedCompanies

-DisclosureObligationsofDirectorsandSubstantialShareholders

-ICAA-MICPAAuditForum–RoleofAuditCommittee

-Director:AnImpossibleTask?ImpactofRecentDevelopmentsontheRoleofDirectors

-TaxForum:TimeforActionDrivingTransformationTowardsDevelopedNation

-SeminaronMalaysianFinancialReportingStandardsUpdate2012/2013

-OptimisingIFRSConvergence

-InternationalAccountantsConferenceECMLibraFinancialGroupBerhadANNUALREPORT201313


B. DIRECTORS’ REMUNERATIONThe Board Remuneration Committee (“BRC”), set up on 27 September 2006, comprised two (2) independent non-executive Directors and one (1)non-independentnon-executiveDirectorduringthefinancialyearended31January2013.ThemembersoftheBRCwere:

-EnMahadzirbinAzizan(Chairman)

-Dato’Ab.HalimbinMohyiddin

-MrLumSingFai

TheBRCisresponsibleforassessingandrecommendingtotheBoardtheremunerationofDirectors,keyseniormanagementofficers,andthepaymentofperformancebonusandsalaryincrementsforemployeesoftheGroup.TheDirectorsdonotparticipateinthediscussionandvotingondecisionsregardingtheirownremuneration.TheaggregateannualDirectors’feesasrecommendedbytheBoardareapprovedbyshareholdersattheAGM.

ECMLFG has an established framework to evaluate performance and reward for executive Directors and all employees. Remuneration packagesfor theexecutiveDirectorsandemployeesare formulatedtobecompetitive,withemphasisbeingplacedonperformanceof theGroupaswellastheindividual,whichaimstoattract,motivateandretainall levelsofstafftomanagetheECMLFGGroup. Fornon-executiveDirectors,thelevelofremunerationwouldcommensuratewiththeexperienceandlevelofresponsibilitiesundertakenbythem.TheDirectorsarepaidannualfeesandanallowanceofRM1,000foreveryBoardandBoardCommitteemeetingattended.

ThedetailsoftheremunerationoftheDirectorsofECMLFGaresetoutintheauditedfinancialstatementsonpage101.

C. ACCOUNTABILITY AND AUDIT

(i) Financial Reporting

TheBoardisresponsibletopresentabalancedandcomprehensiveassessmentofECMLFGGroup’sfinancialpositiontoshareholdersbymeansof the annual and quarterly reports and other published information. In this regard, the Board is responsible for the preparation of financialstatementsthatpresentafairandbalancedreportofthefinancialstateofaffairsoftheECMLFGGroup.

TheBoardhasdelegatedtheresponsibilityofreviewingandensuringthatthefinancialstatementscomplywithapplicablefinancialreportingstandardstotheBARMC.TheBARMChasensuredthatthefinancialstatementsareareliablesourceoffinancialinformationoftheGroupandCompany.

(ii) Risk Management & Internal Control

TheStatementonRiskManagement&InternalControlassetoutbelowprovidesanoverviewofthemanagementofrisksandstateofinternalcontrolswithintheGroup.

(iii) Relationship with Auditors

The Company, through the BARMC, has an appropriate and transparent relationship with the external auditors. Key features underlying therelationshipoftheBARMCwiththeexternalauditorsareincludedintheBARMCReportassetoutonpages9and10.

TheBARMCundertakesanannualassessmentofthesuitabilityandindependenceoftheGroup’sexternalauditorsbeforerecommendingtheirre-appointmenttotheDirectorsandshareholdersforapproval. Inundertakingtheassessment,dueconsiderationisgiventotheadequacyofresourcesoftheexternalauditortomanageandundertaketheaudit,thelevelandqualityofserviceprovidedbytheauditteamaswellasthecompetence,knowledge,experienceandindependenceofadviceprovidedbytheengagementpartner.



D. CORPORATE DISCLOSURESTheCompanyiscommittedtoprovideallstakeholderswithtimelyandequitableaccesstomaterialinformationthatiscomprehensiveandaccuratetoensure itscompliancewith thedisclosure requirementsassetout in theMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)andotherapplicablelaws.Inlinewiththiscommitmentandfortransparencyandaccountability,materialcorporatedisclosuresaredeliberatedbytheBoardbeforebeingreleasedtothepublic.

Tomaintaintransparencyandtopromotethetimelydisseminationofcorporatedisclosures,allinformationmadepublictoBursaSecurities,suchastheCompany’sAnnualReport,thequarterlyfinancialresults,allcorporateannouncements,circulartoshareholdersandothercorporateinformationaremadeavailableontheGroup’swebsite,www.ecmlibra.com,atthededicatedsectiononInvestorRelations.

E. SHAREHOLDERSTheCompany’sgeneralmeetingsserveasaforumfordialoguewithshareholders.Atthegeneralmeetings,shareholdersareencouragedtoparticipateinthequestionandanswersession.TheBoardmembersandmanagementwillclarifyandelaborateonanyissueraisedbyshareholdersatthemeeting.InaccordancewiththeCompany’sArticlesofAssociation,votingatgeneralmeetingsareconductedbyshowofhandsorbypollifsodemandedbytheshareholdersortheChairmanofthemeeting.VotingonresolutionsbywayofpollwillalsobeconductedifrequiredbytheListingRequirementsofBursaSecurities.TheresultofallresolutionsproposedatgeneralmeetingsissubmittedtoBursaSecuritiesattheendofthemeetingday.

Otherthancontactsatgeneralmeetings,thereisnoformalprogrammeorscheduleofmeetingswithinvestors,shareholdersorthepublicgenerally.However,themanagementhastheoptionofcallingformeetingswithinvestors/analystsifitisdeemednecessary.Thusfar,theBoardisoftheopinionthatthisarrangementhasbeensatisfactorytoallparties.

F. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL

Responsibility

TheBoardisresponsibleformanagingrisksoftheGroupanditssystemofinternalcontrolaswellasreviewingitsadequacyandintegrity.TheBoardrecognisesthattheGroup’ssystemofinternalcontrolisdesignedtomanageandnoteliminatetheriskoffailuretoachievetheGroup’sobjectives.Hence,itcanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementofmanagementandfinancialinformationoragainstfinanciallossesandfraud.

Key Processes

Thereisanon-goingprocessforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroup,andthesaidprocessisreviewedbytheBoardandaccordswiththeStatementonRiskManagement&InternalControl:GuidelinesforDirectorsofListedIssuers.

The Board has appointed the BARMC comprising independent Directors to examine the effectiveness of the Group’s risk management policies,processes and infrastructure which are established to manage various types of risks and to ensure an effective internal audit function. This isaccomplishedthroughthereviewoftheworkoftheGroupRiskManagementDepartment,GroupComplianceDepartmentandGroupInternalAuditDepartment,whichfocusonareasofpriority identifiedthroughriskassessmentandinaccordancewiththeplansapprovedbytheBARMC.GroupRiskManagementcoverscreditriskmanagement,marketriskmanagementandoperationalriskmanagement,andthedepartmentisheadedbytheHeadofRiskManagement.Whilebusiness/operatingunitshavetheprimaryresponsibilityformanagingspecificrisksassumedbythem,GroupRiskManagementprovidesthecentralresourcefordevelopingtoolsandmethodologiesfortheidentification,quantification,monitoringandmanagementoftheriskstakenbytheGroupasawhole.


F. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL (continued)In carrying out its responsibilities, the BARMC relies on the support of Group Compliance Department and Group Internal Audit Department inprovidingassuranceontheadequacyofinternalcontrols.GroupComplianceDepartmentprovidestheBARMCperiodicreportsoncompliancewithrelevantregulatoryandstatutoryrequirementswhilstGroupInternalAuditDepartmentprovidesBARMCwithperiodicreportshighlightingonanynon-complianceaswellasrecommendationsandmanagementactionplanstoimprovethesystemofinternalcontrols.

TheframeworkoftheGroup’ssystemofinternalcontrolandkeyproceduresinclude:

-Amanagementstructurewithclearlydefinedlinesofresponsibilityandappropriatelevelsofdelegation.

-Keyfunctionssuchasfinance,creditcontrol,treasury,humanresourcesandlegalmattersarecontrolledcentrally.

-Themanagementdeterminestheapplicabilityofriskmonitoringandreportingproceduresandisresponsiblefortheidentificationandevaluation ofsignificantrisksapplicabletotheirareasofbusinesstogetherwiththedesignandoperationofsuitableinternalcontrols.

-CleardefinitionsoflimitsofauthorityandresponsibilitieshavebeenapprovedbytheBoardandsubjecttoregularreviewsandenhancements.

-PoliciesandprocedureswithembeddedinternalcontrolsaredocumentedinaseriesofPoliciesandProcedures,whicharesubjectedtoannual reviewforupdatingofanychangesinoperationalprocessesorregulatoryrequirements.BusinessandsupportunitsintheGroupmustensure compliancewiththePoliciesandProcedures.

-Corporatevalues,whichemphasiseonethicalbehaviourandqualityservices,are formalised intoaCodeofConduct incorporatingaWhistle BlowingPolicy,issetoutintheGroup’sEmployeeHandbookandtheBoardCharter.

Onayearlybasis,all thebusinessunitswithintheGroupdrawuptheirbusinessplanandbudget for theBoard’sapprovalandtheperformance istrackedonamonthlybasis.

Duringthefinancialyearupto14December2012,theGroupRiskManagementDepartment,theGroupComplianceDepartmentandGroupInternalAuditDepartmentwereorganisedattheinvestmentbankingsubsidiary.Subsequenttothedisposaloftheinvestmentbankon14December2012,theComplianceDepartmentisorganisedattheassetmanagementsubsidiarywhilsttheGroupCEOoverseesriskmanagementfortheGroup.TheBARMChasconsideredandapprovedtheoutsourcingoftheinternalauditfunctiontoanindependentprofessionalfirm.AstheassetmanagementsubsidiaryisregulatedbytheSecuritiesCommission(“SC”),theoutsourcearrangementissubjecttotheapprovaloftheSCinaccordancewiththeGuidelinesonOutsourcingforCapitalMarketIntermediaries.

AnassociatedcompanywhichislistedontheStockExchangeofSingaporehasnotbeendealtwithaspartoftheGroupforpurposesofapplyingthisguidance.However,astheassociatedcompanyoperateswithinahighlyregulatedbusinessenvironmentandthroughperiodicreportingtotheGroup,theBoardbelievesthattheriskmanagementand internalcontrolpracticesofthisassociatedcompanyhadbeeneffectivelycarriedoutby itsownboardandmanagement.

AnotherassociatedcompanywhichisanindirectsubsidiaryofacompanylistedontheStockExchangeofSingaporehasalsonotbeendealtwithaspartoftheGroupforpurposesofapplyingthisguidanceonthesamepremisethatitsriskmanagementandinternalcontrolpracticeshadbeencarriedoutbyitsownboardandmanagement.

TheBoardhasreceivedassurancefromtheGroupCEOandChiefFinancialOfficerthattheGroup’sriskmanagementandinternalcontrolsystemisoperatingadequatelyandeffectively,inallmaterialaspects,basedontheriskmanagementandinternalcontrolsystemoftheGroup.



G. DIRECTORS’ RESPONSIBILITY IN FINANCIAL REPORTINGTheBoardisrequiredbytheListingRequirementsofBursaSecuritiestopreparefinancialstatementsforeachfinancialyearwhichgiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyasattheendofthefinancialyearandoftheresultsandcashflowsfortheyearthenended.TheDirectorsaresatisfiedthatinpreparingthefinancialstatementsoftheGroupforthefinancialyearended31January2013,theGrouphadadoptedandappliedconsistentlyappropriateaccountingpolicies,supportedbyreasonableandprudentjudgmentsandestimates.TheDirectorsalsoconsiderthatallapplicableapprovedaccountingstandardsinMalaysiahadbeenfollowedandthefinancialstatementshadbeenpreparedonagoingconcernbasis.

The Directors are responsible for ensuring that the Company maintains sufficient accounting records that disclose with reasonable accuracy thefinancialpositionoftheGroupandtheCompany,andwhichenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct,1965.

TheDirectorsalsohavegeneralresponsibilityfortakingsuchstepsthatarereasonablyexpectedofthemtosafeguardtheassetsoftheGroupandtheCompany,andtakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

ThisStatementwasapprovedbytheBoardofDirectorson20March2013.



chairman’s statement

DearShareholders,

On behalf of the Board of Directors, I am pleased to present the Annual Report and audited financial statements for the financial year ended 31January2013.

Financial and Business Review

Theyearunder reviewmarkedasignificantmilestone in thecorporatehistoryof theGroupwith thedisposalof theentireequity interest inECMLibraInvestmentBankBerhad(“ECMLIB”).ECMLIB,beingtheinvestmentbankingsubsidiaryoftheGroup,representedamajorcomponentoftheGroup.Arisingfromthedisposal,theGrouphasahealthycashpositionandalsodoesnotcarryanylongtermliabilities.

TheGrouphadon15June2012enteredintoaconditionalsharepurchaseagreementwithKenangaInvestmentBankBerhad(“KIBB”)andK&NKenangaHoldingsBerhad(“KNKH”)forthedisposaloftheentireequityinterestinECMLIBtoKIBBforatotaldisposalconsiderationofRM875.11millioncomprisingRM659.61millioncash,RM95.50millionnominalvalueredeemablenon-convertibleunsecuredloanstocktobeissuedbyKNKH(“RULS”)and120millionKNKHsharestobeissuedatpar.ThedisposalofECMLIBwascompletedon14December2012andthefinancialresultsofECMLIBupto13December2012havebeenconsolidatedintothegroupresultsforthefinancialyearended31January2013.

Intermsofthebusinessoperations,theGroupreportedaprofitbeforetaxofRM34.65millionandprofitaftertaxofRM26.52millionforthefinancialyearended31January2013.However,theoverallfinancial impactfromthedisposalofECMLIBandtheconsequentialgoodwillwrite-offresultedinalossofRM68.65million.AfteraggregatingthelossondisposalofECMLIBofRM68.65million,theGroupreportedalossaftertaxofRM42.13million.

UponcompletionofthedisposalofECMLIBon14December2012,theCompanyisconsideredaPracticeNote17(“PN17”)companypursuanttoParagraph8.04andParagraph2.1(g)ofPN17oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad.TheCompanytriggeredParagraph2.1(g)ofthePN17criteriabyvirtueofthedisposalofitsinvestmentbankingbusinesswhichcontributedmorethan70%ofthegrouprevenue.TheBoardwishestoemphasisethattheCompanyisnotafinanciallydistressedcompanyasithashealthycashreserveswithnoborrowings.TheBoardisevaluatingvariousoptionsinitsendeavourtoformulateaplantoregularisetheCompany’sfinancialconditiontoupliftthePN17status.

ConsequenttothedisposalofECMLIB,theCompanyhadproceededwithacapitalrestructuringexercisetoreturnexcesscapitaltoshareholders.TheissuedcapitaloftheCompanywasreducedfromRM828.82milliontoRM268.22millionon28February2013tocommensuratewiththereducedscaleofbusinessafterthesaiddisposal.Thecapitalrepaymenttoshareholderswascompletedon4April2013andinvolvedthedistributionofRM442.65millioncashandthedistribution-in-specieof120millionKNKHsharesandRULSwithnominalvaluetotallingRM47.75million.

After thecapital repaymentexercise, theCompanyand itssubsidiariescontinuetohavethe financialandoperational resources tocarryontheGroup’sremainingbusinessoperations.TheGrouphasexistinglicencesthatenabletheGrouptocontinuetooperatefinancialservicesrelatedbusinesses.OvertimetheBoardintendstousetheGroup’sresourcestogrowthebusiness.TheGroupwillcontinuetonurtureitsfundmanagementbusinesswhichisoperatedunder Libra Invest Berhad.The Group has reactivated its structured financing activity and has started to generate loan income.The Group also derivesincomefromits investmentportfolioandproperty.Additionally,theGroupwillcontinuetoget involvedinareasrelatingtofinancialserviceswheretheGrouphasexpertise.

Corporate Social Responsibility

IamhonouredtosharewithyouthatECMLibraFinancialGroupwasconferredthePrimeMinister’sCorporateSocialResponsibility(“CSR”)Award2011intheEducationCategoryinOctober2012basedontheworkdonethroughECMLibraFoundation.Wewereadjudgedtheoutrightwinnercompetingwithmanylargecorporatenamesincludingmajorgovernmentlinkedcompaniesandprivateenterprises,allfocusedonCSRineducation.Webelieveweedgedouttheothercompetitorsbecauseourprogrammesaremulti-yearandhavedeliveredclearoutcomeswhichhaveapositiveimpactonthecommunitiesweareworkingwith.


chairman’s statementcontinued

Corporate Social Responsibility (continued)

OurCSRworkineducationisfocusedonhelpingchildrenofpoorcommunitiesstayinschool,aswecontinuetobelievethateducationisthebestmeansforbreakingthepovertycycle.Wesponsorsupplementalprogrammessuchaspre-schoolreadingandwritingprogrammesandtuitionprogrammestoensurepoorchildrenwhocannotaffordprivatetuitionhaveanequalopportunitytosucceedthroughtheirprimaryandsecondaryeducation.ThisStay-in-SchoolProgramme isspreadoutacross theOrangAslicommunities, the Indiancommunities inplantationsaswellas themulti-racialurbanpoor inPeninsularMalaysia. In the Orang Asli community, our programme now covers 7 villages benefiting about 290 children. In plantations and for the urban poor, weprovidetuitionfor180childreninKaparandthesurroundingplantations.InSabahandSarawakwesponsorprogrammesacross8villagesbenefitingabout200studentswhoaremainlynatives.Thesemulti-yearprogrammesaremonitoredthroughschoolandpublicexaminationresultsallowingustoseetheimpactofourinterventions.

Outsidetheclassroom,theFoundationacknowledgesthatsportsandyouthdevelopmentcancontributetomoldabalancedperson.LikeourStay-in-SchoolProgramme,wefocusonprovidingunderprivilegedchildrenanequalopportunity insportsandsocialskillsdevelopment.OurprogrammeincludesthesponsorshipforunderprivilegedbuttalentedchildreninsoccertrainingwiththeRoyalSelangorClubchildren’ssoccerprogramme.TheFoundationhasalsoextendeditshandtoabout83childrenfromvarioushomesnamelyRumahKebajikanAl-Taqwa,ThePureLifeSociety,RumahCharis,RumahHopeandHouseofJoytoattendbadmintontrainingatMichael’sBadmintonAcademyinPuchong.Thechildrenareevaluatedperiodicallyandourprogrammesfine-tunedtoensuretheybenefitthemostdeservingchildren.LikewisewealsosponsorunderprivilegedchildrenfromselectedhomesgivingthemopportunitiestoattendyouthleadershipcampsrunbyLeaderonomics.

Dividends

InAugust2012,theGrouppaidasingletiersharedividendof2.4senperordinaryshareinrespectofthepreviousfinancialyear.TheBoardisnotproposinganyfinaldividendforthefinancialyearended31January2013inviewofthecapitalrepaymentexercisethatwascompletedon4April2013whichreturnedtoshareholderstheequivalentof67.6senperECMshareheld.

Appreciation

On behalf of the Board, I would like to extend our appreciation to the management and staff of the Group for their contributions, commitment anddedication.Dato’AbHalimbinMohyiddinwillbeleavingtheBoardashewillnotbeseekingre-electionatthecomingAnnualGeneralMeetingandweextendourappreciationforhiscontributionandwishhimthebest.Wewouldalsoliketothankourshareholdersfortheircontinuedsupportandconfidenceinus.

Dato’SeriKalimullahbinMasheerulHassan

Chairman

5April2013


notice of annual general meeting

NOTICE IS HEREBY GIVEN thattheEighthAnnualGeneralMeetingofECMLibraFinancialGroupBerhad(“Company”)willbeheldatGroundFloor,EastWing,BangunanECMLibra,8JalanDamansaraEndah,DamansaraHeights,50490KualaLumpuronThursday,23May2013at10.00a.m.inorder:

AGENDA

1. toreceivetheauditedfinancialstatementstogetherwiththereportsoftheDirectorsandAuditorsthereonforthefinancialyearended31January2013;

2. toapprovethepaymentofDirectors’feesofRM300,000.00tobedividedamongsttheDirectorsinsuchmannerastheDirectorsmaydetermine;

3. tore-electEnMahadzirbinAzizanwhoretirespursuanttotheCompany’sArticlesofAssociation;

4. tore-appointMessrsErnst&YoungasAuditorsoftheCompanyandauthorisetheDirectorstofixtheirremuneration;

AS SPECIAL BUSINESS

Toconsiderandifthoughtfit,passthefollowingresolutions:

5. Ordinary Resolution on Authority to Directors to Issue Shares

“THAT pursuant to Section 132D of the Companies Act, 1965, the Directors be and are hereby empowered to issue shares in theCompany,atanytimeanduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmay,intheirabsolutediscretion,deemfit,providedthattheaggregatenumberofsharesissuedpursuanttothisresolutioninanyonefinancialyeardoesnotexceed10%oftheissuedandpaid-upsharecapitaloftheCompanyforthetimebeingandtheDirectorsbeandarealsoempoweredtoobtainapprovalforthelistingofandquotationfortheadditionalsharessoissuedonBursaMalaysiaSecuritiesBerhadANDTHATsuchauthorityshallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”;

6. Special Resolution on Proposed Amendments to the Articles of Association

“THAT theproposedamendmentstotheArticlesofAssociationof theCompanyassetout inAppendix1attachedtothisNoticeofAnnualGeneralMeetingbeandareherebyapprovedandinconsequencethereof,thenewsetofArticlesofAssociationincorporatingtheamendmentsbeadoptedANDTHATtheDirectorsand/orSecretariesbeandareherebyauthorisedtocarryoutallthenecessarystepstogiveeffecttotheamendments.”;

7. toconsideranyotherbusinessofwhichduenoticeshallhavebeengiven.

ByOrderoftheBoard

IRENELOWYUETCHUNCHANSOONLEESecretaries

KualaLumpur30April2013


notice of annual general meetingcontinued

NOTES:

1. OnlyadepositorwhosenameappearsintheRecordofDepositorsoftheCompanyasat17May2013shallberegardedasamemberentitled to attend, speak and vote, and appoint a proxy to attend, speak and vote on his/her behalf, at the Eighth Annual GeneralMeeting.

2. Amemberentitledtoattendandvoteattheabovemeetingisentitledtoappointnotmorethantwo(2)proxiestoattendandvoteinhisstead.WhereamemberoftheCompanyisanexemptauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act1991whichholdsordinarysharesintheCompanyformultiplebeneficialownersinone(1)securitiesaccount(“OmnibusAccount”),thereisnolimittothenumberofproxieswhichtheexemptauthorisednomineemayappointinrespectofeachOmnibusAccountitholds.AproxymaybutneednotbeamemberoftheCompanyandtheprovisionsofSection149(1)(a)and(b)oftheCompaniesAct,1965shallnotapplytotheCompany.

3. Whereamemberappointsmorethanone(1)proxytoattendthemeeting,themembershallspecifytheproportionofhisshareholdingstoberepresentedbyeachproxy.

4. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorofhisattorneydulyauthorisedinwritingoriftheappointerisacorporation,eitherunderitscommonsealorunderthehandofadulyauthorisedofficerorattorneyofthecorporation.

5. TheFormofProxymustbedepositedattheRegisteredOfficeoftheCompanyat2ndFloor,WestWing,BangunanECMLibra,8JalanDamansaraEndah,DamansaraHeights,50490KualaLumpurnotlessthan48hoursbeforethetimeappointedforholdingthemeetingoradjournedmeeting.

6. RetirementofDirectors

Dato’Ab.HalimbinMohyiddinwhoretiresinaccordancewiththeArticlesofAssociationoftheCompanyhasexpressedhisintentionnottoseekre-electionandhence,willretainofficeuntilthecloseoftheEighthAnnualGeneralMeeting.

Explanatory note on special business

1. Ordinary Resolution on Authority to Directors to Issue Shares

Theordinaryresolution,ifpassed,willgivearenewedmandatetotheDirectorsoftheCompanytoissuesharesoftheCompanyfromtimetotimeprovidedthattheaggregatenumberofsharesissuedpursuanttothisresolutioninanyonefinancialyeardoesnotexceed10%oftheissuedcapitaloftheCompanyforthetimebeing(“RenewedMandate”).TheRenewedMandate,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextAnnualGeneralMeetingoftheCompany.

AsatthedateofthisNotice,nonewsharesintheCompanywereissuedpursuanttothemandategrantedtotheDirectorsatthelastAnnualGeneralMeetingheldon31July2012andwhichwilllapseattheconclusionoftheEighthAnnualGeneralMeeting.

In circumstances where an expansion/diversification plan requires the issue of new shares, the Renewed Mandate will enable theDirectorstotakepromptactionandtoavoiddelayandcostinconveninggeneralmeetingstoapprovesuchissueofshares.

2. Special Resolution on Proposed Amendments to the Articles of Association

TheproposedamendmentstotheArticlesofAssociationoftheCompanyaretoaligntheCompany’sArticlesofAssociationwiththeMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad.



Appendix 1

Proposed Amendments to the Articles of Association of ECM Libra Financial Group Berhad

Article No

70

Notice of General Meetings

Every notice calling a general meeting shall appearwith reasonable prominence in every such notice astatementthataMemberentitledtoattendandvoteisentitledtoappointoneormoreproxy/proxiestoattendand vote instead of him and that the proxy need notbeamemberoftheCompany.WhereamemberoftheCompany is an authorized nominee as defined underthe Central Depositories Act, it may appoint at leastoneproxyinrespectofeachsecuritiesaccountitholdswith ordinary shares of the Company standing to thecreditof thesaidsecuritiesaccount.WhereaMemberappoints more than one (1) proxy to attend the samemeeting,theMembershallspecifytheproportionofhisshareholdingstoberepresentedbyeachproxy.

EverynoticecallingageneralmeetingshallappearwithreasonableprominenceineverysuchnoticeastatementthataMemberentitledtoattendandvote,other than an exempt authorised nominee,isentitledtoappointone or more proxy/proxies not more than two (2) proxiestoattendandvoteinsteadofhim.andthattheproxyneednotbeamemberof theCompany.Wherea member of the Company is an authorized nomineeas defined under the Central Depositories Act, it mayappointatleastoneproxyinrespectofeachsecuritiesaccount itholdswithordinarysharesof theCompanystanding to the credit of the said securities account.Where a Member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) securities account (“Omnibus Account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each Omnibus Account it holds.

An exempt authorised nominee refers to an authorised nominee defined under the Central Depositories Act which is exempted from compliance with the provisions of subsection 25A(1) of the Central Depositories Act.

WhereaMemberappointsmorethanone(1)proxytoattendthesamemeeting,theMembershallspecifytheproportion of his shareholdings to be represented byeachproxy.

Existing Article Proposed Amendments to Existing Article



Article No

88

95

Vote of Members

Subjecttoanyrightsorrestrictionsforthetimebeingattachedtoanyclassorclassesofshares,atmeetingsofMembersorclassesofMembers,eachMembershallbe entitled to be present and to vote at any generalmeetingoftheCompanyeitherpersonallyorbyproxyor by attorney and to be reckoned in a quorum inrespectofsharesfullypaidandinrespectofpartlypaidshareswherecallsarenotdueandunpaid.

On a poll votes may be given either personally or byproxy or attorney and a member entitled to morethanonevoteneednot,ifhevotes,useallhisvotesorcastallthevotesheusesinthesameway.AproxyorattorneyoradulyauthorisedrepresentativeneednotbeaMemberandtheprovisionsofSection149(1)(b)oftheActneednotapply.

Subjecttoanyrightsorrestrictionsforthetimebeingattachedtoanyclassorclassesofshares,atmeetingsof Members or classes of Members, each Membershall be entitled to be present and to vote at anygeneral meeting of the Company either personally orbyproxyorbyattorney or by other duly authorised representative and to be reckoned in a quorum inrespectofsharesfullypaidandinrespectofpartlypaidshareswherecallsarenotdueandunpaid.

A proxy or attorney or other duly authorised representative appointed to attend and vote at any general meeting of the Company shall have the same rights as the Member to speak at the meeting.

On a poll votes may be given either personally or byproxy or attorney or duly authorised representativeand a member entitled to more than one vote neednot, if he votes, use all his votes or cast all the votesheusesinthesameway.Aproxyorattorneyoradulyauthorised representative need not be a Member of the Company. There shall be no restriction as to the qualification of the proxy and the provisions ofSection149(1)(b)oftheActneednotapply.

Existing Article Proposed Amendments to Existing Article

Appendix 1 (continued)

Proposed Amendments to the Articles of Association of ECM Libra Financial Group Berhad



statement accompanyingnotice of annual general meeting

Details of persons who are standing for election as Directors

NoindividualisseekingelectionasaDirectorattheEighthAnnualGeneralMeetingoftheCompany.

(PursuanttoParagraph8.27(2)oftheListingRequirementsofBursaMalaysiaSecuritiesBerhad)


financialstatements

directors’ report

ThedirectorsherebysubmittheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31January2013.

Principal activities

TheprincipalactivitiesoftheCompanyareinvestmentholdingandprovisionofmanagementservices.TheprincipalactivitiesofthesubsidiarycompaniesaresetoutinNote13tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringtheyear,exceptasstatedbelow:

PursuanttoParagraph8.04andParagraph2.1(g)ofPracticeNote17(“PN17”)oftheMainMarketListingRequirements(“MMLR”)ofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”),theCompany,on14December2012announced(“FirstAnnouncement”)thattheCompanyisconsideredaPN17Company.

PursuanttoParagraph8.04(3)oftheMMLRofBursaSecurities,aPN17Companymustregulariseitsconditioninthefollowingmanner:

(i) within12monthsfromthedateoftheFirstAnnouncement:

(a) submitaregularisationplantotheSecuritiesCommission(“SC”)iftheplanwillresultinasignificantchangeinthebusinessdirectionorpolicyoftheCompany;or

(b) submitaregularisationplantoBursaSecuritiesiftheplanwillnotresultinasignificantchangeinthebusinessdirectionorpolicyoftheCompany,andobtainBursaSecurities’approvaltoimplementtheplan;and

(ii) implementtheplanwithinthetimeframestipulatedbytheSCorBursaSecurities,asthecasemaybe.

Further,PN17oftheMMLRofBursaSecuritiesstatesthataPN17CompanymustannouncetoBursaSecurities:

(i) withinthree(3)monthsfromthisFirstAnnouncement,onwhethertheregularisationplanwillresultinasignificantchangeinthebusinessdirectionorpolicyoftheCompany;

(ii) thestatusofitsregularisationplanandthenumberofmonthstotheendoftherelevanttimeframesreferredtoinParagraphs5.1or5.2ofPN17oftheMMLRofBursaSecurities,asmaybeapplicable,onamonthlybasisuntilfurthernoticefromBursaSecurities;

(iii) itscomplianceornon-compliancewithaparticularobligationimposedpursuanttoPN17oftheMMLRofBursaSecurities,onanimmediatebasis;

(iv) detailsoftheregularisationplan(“RequisiteAnnouncement”)andsufficientinformationtodemonstratethattheCompanyisabletocomplywithalltherequirementssetoutinParagraph3.1ofPN17oftheMMLRofBursaSecuritiesafterimplementationoftheregularisationplan,whichshallincludeatimelineforthecompleteimplementationoftheregularisationplan.TheRequisiteAnnouncementmustbemadebytheCompany’sPrincipalAdviser;and


directors’ report continued

Principal activities (continued)

(v) where the Company fails to regularise its condition, the dates of suspension and de-listing of its listed securities immediately upon notification ofsuspensionandde-listingbyBursaSecurities.

IntheeventtheCompanyfailstocomplywiththeobligationstoregulariseitscondition,allitslistedsecuritieswillbesuspendedfromtradingonthenextmarketdayafterfive(5)marketdaysfromthedateofnotificationofsuspensionbyBursaSecuritiesandde-listingproceduresshallbetakenagainsttheCompany,subjecttotheCompany’srighttoappealagainstthede-listing.

Results Group Company RM’000 RM’000

(Loss)/profitattributabletoownersoftheCompany (42,131) 83,770

Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthanasdisclosedinthefinancialstatements.

Dividends

ThedividendpaidbytheCompanysincetheendofthepreviousfinancialyearisasfollows: RM’000In respect of the financial year ended 31 January 2012: Finalsingle-tierdividendof2.4senperordinaryshareofRM1.00eachper ordinarysharecomputedbasedon828,819,091ordinaryshares(excluding 2,082,862treasurysharesheldbytheCompany)paidon14August2012 19,892

Thedirectorsdonotproposeanyfinaldividendforthecurrentfinancialyearended31January2013.

Share buy-back and share capital

Duringthefinancialyear,theCompanycancelled2,082,862treasuryshareswithacarryingamountofRM1,578,943oranaveragepriceofRM0.7581pershare.TheamountofthesharecapitalcancelledwastransferredtocapitalredemptionreserveinaccordancewiththerequirementofSection67AoftheCompaniesAct,1965.

Asat31January2013,theCompanydoesnotholdanytreasuryshares.


Directors

ThedirectorsoftheCompanyinofficesincethedateofthelastreportandatthedateofthisreportare:

Dato’SeriKalimullahbinMasheerulHassanDato’AbHalimbinMohyiddinMrLimKianOnnDatukKamarudinbinMdAliDato’OthmanbinAbdullahEnMahadzirbinAzizanMrLumSingFai

InaccordancewithArticle103oftheArticlesofAssociationoftheCompany,Dato’AbHalimbinMohyiddinandEnMahadzirbinAzizanwillretireattheforthcomingAnnualGeneralMeetingandbothareeligibleforre-election.EnMahadzirbinAzizanoffershimselfforre-electionwhilstDato’AbHalimbinMohyiddindoesnotwishtoseekre-election.

Directors’ interests

Thedirectorsholdingofficeat theendof the financialyearwhohadbeneficial interests in theordinaryshares/options*of theCompanyand/or relatedcorporationsduringthefinancialyearended31January2013,asrecordedintheRegisterofDirectors’ShareholdingskeptbytheCompanyunderSection134oftheCompaniesAct,1965,areasfollows:

Shareholdings in which directors have interests Number of ordinary shares/options* As at As at 1.2.2012 Acquired Sold 31.1.2013 Direct interest in ECM Libra Financial Group Berhad (“ECMLFG”)

Dato’SeriKalimullahbinMasheerulHassan 32,969,696 - - 32,969,696 29,000,000* - - 29,000,000*Dato’AbHalimbinMohyiddin 200,000* - - 200,000*MrLimKianOnn 80,287,710 38,559,100 - 118,846,810 29,000,000* - - 29,000,000*DatukKamarudinbinMdAli 200,000* - - 200,000*Dato’OthmanbinAbdullah 200,000* - - 200,000*EnMahadzirbinAzizan 200,000* - - 200,000*

Indirect interest in ECMLFG

MrLimKianOnn - 4,440,900 - 4,440,900

*TheoptionsoverordinarysharesweregrantedpursuanttotheCompany’sEmployees’ShareOptionScheme(“ESOS”).




Directors’ benefits

Sincetheendofthepreviousfinancialyear,noneofthedirectorsoftheCompanyhasreceivedorbecomeentitledtoreceiveabenefit(otherthanabenefitincludedintheaggregateamountofemolumentsreceivedordueandreceivablebythedirectorsorthefixedsalaryofafull-timeemployeeoftheCompanyorofarelatedcompanyasdisclosedinNote30ofthefinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterestexceptforMrLimKianOnnwhomaybedeemedtoderiveabenefitbyvirtueofthosetransactions,contractsandagreementsfortheacquisitionand/ordisposalofstocksandsharesand/ortheprovisionofservicesincludingbutnotlimitedtomanagementandconsultancyservices,tenanciesand/ortheprovisionoftreasuryfunctionsandtheconductofnormalstockbrokingbusinessbetweentheCompanyanditsrelatedcorporationsorcorporationsinwhichMrLimKianOnnisdeemedtohaveinterests.

TherewerenoarrangementsduringandattheendofthefinancialyearwhichhadtheobjectofenablingthedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesin,ordebenturesoftheCompanyoranyotherbodycorporateotherthantheshareoptionsgrantedpursuanttotheESOS.

Employees’ share option scheme (“ESOS”)

TheCompany’sESOSisgovernedbytheby-lawsapprovedbytheshareholdersatanExtraordinaryGeneralMeetingheldon1December2005.TheESOSwasimplementedon1December2005andwillbeinforceforaperiodoften(10)years.

ThemainfeaturesoftheESOSare,interalia,asfollows:

(i) TheeligibilityofanemployeeordirectoroftheGrouptoparticipate intheESOSshallbeatthediscretionoftheOptionsCommittee.TheOptions Committee may from time to time at its discretion select and identify suitable eligible employees to be offered options.The maximum allowable allotmentsforthedirectorshadbeenapprovedbytheshareholdersoftheCompanyinageneralmeeting.

(ii) The aggregate number of shares to be issued under the ESOS shall not exceed 15% of the total issued and paid-up ordinary share capital of the Companyforthetimebeing.

(iii) TheESOSshallbeinforceforaperiodof10yearsfrom1December2005.

(iv) Theoptionpriceshallnotbeatadiscountofmorethantenpercent(10%)(orsuchdiscountastherelevantauthoritiesshallpermit)fromthe5-day weighted average market price of the shares of the Company preceding the date of offer and shall in no event be less than the par value of the sharesoftheCompanyofRM1.00.

(v) Anoptionholdermay, inaparticularyear,exerciseuptosuchmaximumnumberofshares in theoptioncertificateasdeterminedbytheOptions Committeeorasspecifiedintheoptioncertificate.

Asat31January2013,therewasnoissuanceofnewsharesarisingfromtheexerciseofoptionspursuanttotheESOS.


Other statutory information

(I) As at the end of the financial year

(a) Before the statements of comprehensive income and statements of financial position of the Group and the Company were made out, the directorstookreasonablesteps:

(i) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsandfinancingandthemakingofallowancefor doubtful debts and financing and had satisfied themselves that there were no known bad debts and financing and that no allowance fordoubtfuldebtsandfinancingwasnecessary;and

(ii) to ensure that any current assets, other than debts and financing, which were unlikely to realise their book values as shown in the accountingrecordsintheordinarycourseofbusinesshadbeenwrittendowntotheirestimatedrealisablevalues. (b) Intheopinionofthedirectors,theresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenotsubstantially affectedbyanyitem,transactionoreventofamaterialandunusualnatureotherthanthechangesinaccountingpolicies(asdisclosedinNotes 2(a)and2(b)ofthefinancialstatements),thedisposalofECMLibraInvestmentBankBerhadanditssubsidiaries(asdisclosedinNote33ofthe financialstatements)andthecapitalrestructuringexercise(asdisclosedinNote42ofthefinancialstatements).

(II) From the end of the financial year to the date of this report

(a) Thedirectorsarenotawareofanycircumstances:

(i) which would render it necessary to write off any bad debts and financing or the amount of the allowance for doubtful debts and financinginadequatetoanymaterialextent; (ii) whichwouldrenderthevaluesattributedtocurrentassetsinthefinancialstatementsmisleading;and

(iii) whichhadarisenwhichwouldrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandtheCompany misleadingorinappropriate.

(b) Intheopinionofthedirectors:

(i) theresultsoftheoperationsoftheGroupandtheCompanyforthefinancialyearended31January2013arenotlikelytobesubstantially affected by any item, transaction or event of a material and unusual nature which had arisen in the interval between the end of the financialyearandthedateofthisreport;and

(ii) nocontingentorother liabilityhasbecomeenforceable,or is likelytobecomeenforceable,withintheperiodoftwelvemonthsafterthe endof the financialyearwhichwillormayaffect theabilityof theGroupandtheCompanytomeet theirobligationsasandwhenthey falldue.




Other statutory information (continued)

(III) As at the date of this report

(a) TherearenochargesontheassetsoftheGroupandtheCompanywhichhadarisensincetheendofthefinancialyeartosecuretheliabilities ofanyotherperson.

(b) Therearenocontingentliabilitieswhichhadarisensincetheendofthefinancialyear.

(c) The directors are not aware of any circumstances not otherwise dealt with in the report or financial statements which would render any amountstatedinthefinancialstatementsmisleading.

Significant and subsequent events

SignificantandsubsequenteventsoftheGroupisasdisclosedinNote42ofthefinancialstatements.

Auditors

Theauditors,Ernst&Young,haveexpressedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectors.

Dato’SeriKalimullahbinMasheerulHassan LimKianOnn

20March2013


statement by directors(PursuanttoSection169(15)oftheCompaniesAct,1965)

We,Dato’SeriKalimullahbinMasheerulHassanandLimKianOnn,beingtwoofthedirectorsofECMLibraFinancialGroupBerhad,doherebystatethat,intheopinionofthedirectors,theaccompanyingfinancialstatementssetoutonpages35to143aredrawnupinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31January2013andoftheirresultsandtheircashflowsfortheyearthenended.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectors.

Dato’SeriKalimullahbinMasheerulHassan LimKianOnn

20March2013

statutory declaration(PursuanttoSection169(16)oftheCompaniesAct,1965)

I, Chan Soon Lee, being the officer primarily responsible for the financial management of ECM Libra Financial Group Berhad, do solemnly and sincerelydeclarethattheaccompanyingfinancialstatementssetoutonpages35to143areinmyopinioncorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

Subscribedandsolemnlydeclaredby theabovenamedChanSoonLeeat KualaLumpurintheFederalTerritory on20March2013 ChanSoonLee

Beforeme,

ZulkiflaMohdDahlimCommissionerforOaths

20March2013


auditors’ report

Independent auditors’ report to the members of ECM Libra Financial Group Berhad(IncorporatedinMalaysia)

Report on the financial statements

WehaveauditedthefinancialstatementsofECMLibraFinancialGroupBerhad,whichcomprisethestatementsoffinancialpositionasat31January2013oftheGroupandoftheCompany,statementsofcomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,assetoutonpages35to143.

Directors’ responsibility for the financial statements

ThedirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia,andforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependonourjudgment,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31January2013andoftheirfinancialperformancesandcashflowsfortheyearthenendedinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.


Report on other legal and regulatory requirements

InaccordancewiththerequirementsoftheCompaniesAct,1965inMalaysia,wealsoreportthefollowing:

(a) Inouropinion, theaccountingandother recordsandtheregisters requiredbytheAct tobekeptby theCompanyand itssubsidiarieshavebeen properlykeptinaccordancewiththeprovisionsoftheAct.

(b) Wearesatisfiedthat the financial statementsof thesubsidiaries thathavebeenconsolidatedwith the financial statementsof theCompanyare in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

(c) Theauditors’reportsonthefinancialstatementsofthesubsidiarieswerenotsubjecttoanyqualificationandinrespectofthecompaniesincorporated inMalaysia,didnotincludeanycommentrequiredtobemadeunderSection174(3)oftheAct.

Other reporting responsibilities

ThesupplementaryinformationsetoutinNote43onpage143isdisclosedtomeettherequirementofBursaMalaysiaSecuritiesBerhadandisnotpartofthefinancialstatements.ThedirectorsareresponsibleforthepreparationofthesupplementaryinformationinaccordancewithGuidanceonSpecialMatterNo. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad ListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

Other matters

AsstatedinNote2(b)tothefinancialstatements,ECMLibraFinancialGroupBerhadadoptedMalaysianFinancialReportingStandardson1February2012with a transition date of 1 February 2011. These standards were applied retrospectively by directors to the comparative information in these financialstatements, including the statements of financial position as at 31 January 2012 and 1 February 2011, and the statements of comprehensive income,statementsofchangesinequityandstatementsofcashflowsfortheyearended31January2012andrelateddisclosures.Wewerenotengagedtoreportonthecomparativeinformationanditisunaudited.OurresponsibilitiesaspartofourauditofthefinancialstatementsoftheGroupandoftheCompanyfortheyearended31January2013have,inthesecircumstances,includedobtainingsufficientappropriateauditevidencethattheopeningbalancesasat1February2012donotcontainmisstatementsthatmateriallyaffectthefinancialpositionasof31January2013andfinancialperformanceandcashflowsfortheyearthenended.

ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct,1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

Ernst&Young ChanHooiLam AF:0039 No.2844/02/14(J) CharteredAccountants CharteredAccountant KualaLumpur,Malaysia

20March2013

auditors’ report continued


statements of financial position asat31January2013

Group 31 January 31 January 1 February Note 2013 2012 2011 RM’000 RM’000 RM’000

ASSETSCashandshort-termfunds 3 73,468 252,020 245,155

Depositswithfinancialinstitutions 4 - 20,631 21,489

Securitiesheld-for-trading 5 24,921 360,985 353,818

Securitiesavailable-for-sale 6 697,656 675,033 519,479

Securitiesheld-to-maturity 7 47,750 200,000 70,000

Derivativefinancialassets 8(a) 1,203 6,688 9,552

Loans,advancesandfinancing 9 4,102 556,570 658,351

Tradereceivables 10 7,849 363,500 485,318

Otherassets 11 3,857 29,443 21,760

StatutorydepositwithBankNegaraMalaysia 12 - 27,165 8,834

Investmentinassociatedcompanies 14 35,579 19,976 19,757

Deferredtaxassets 16 705 735 11,687

Property,plantandequipment 17 26,371 44,916 42,451

Intangibleassets 18 - 284,500 284,500

Total assets 923,461 2,842,162 2,752,151

Theaccompanyingnotesformanintegralpartofthefinancialstatements.


Group 31 January 31 January 1 February Note 2013 2012 2011 RM’000 RM’000 RM’000

LIABILITIES AND EQUITY

Liabilities

Depositsfromcustomers 19 - 1,081,483 1,046,806

Depositsandplacementsofbanksandotherfinancialinstitutions 20 - 341,371 201,008

Derivativefinancialliabilities 8(b) - 57 -

Tradepayables 21 7,207 324,413 428,095

Otherliabilities 22 5,999 61,299 73,865

Provisionfortaxation 58 4,455 2,160

Deferredtaxliabilities 16 257 8,041 958

Total liabilities 13,521 1,821,119 1,752,892

Equity attributable to equity holders of the Company

Sharecapital 23 828,819 830,902 830,902

Reserves 24 81,121 191,720 176,243

Less:Treasuryshares,atcost 25 - (1,579) (7,886)

Shareholders’ equity 909,940 1,021,043 999,259

Total equity and liabilities 923,461 2,842,162 2,752,151

Commitment and contingencies (investment banking operations) 37 - 559,055 317,193

statements of financial position continuedasat31January2013




Company 31 January 31 January 1 February Note 2013 2012 2011 RM’000 RM’000 RM’000

ASSETS

Cashandshort-termfunds 3 54,317 10,043 6,483

Securitiesavailable-for-sale 6 697,656 - -

Securitiesheld-to-maturity 7 47,750 - -

Otherassets 11 2,071 19,076 39,662

Investmentinsubsidiarycompanies 13 147,848 888,360 888,764

Investmentinassociatedcompany 14 7,200 - -

Amountowingbysubsidiarycompanies 15 30,263 892 659

Deferredtaxassets 16 705 - -

Property,plantandequipment 17 27,687 27,187 21,181

Total assets 1,015,497 945,558 956,749


Liabilities

Otherliabilities 22 4,227 2,247 365

Amountowingtosubsidiarycompanies 15 86,227 79,346 79,850

Deferredtaxliabilities 16 - 571 914

Total liabilities 90,454 82,164 81,129

Equity attributable to equity holders of the Company

Sharecapital 23 828,819 830,902 830,902

Reserves 24 96,224 34,071 52,604

Less:Treasuryshares,atcost 25 - (1,579) (7,886)

Shareholders’ equity 925,043 863,394 875,620

Total equity and liabilities 1,015,497 945,558 956,749

statements of financial position continuedasat31January2013


statements of comprehensive incomefortheyearended31January2013


Group Company Note 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Continuing operations

Revenue 2(r) 16,579 13,980 1,282 18,073

Interestincome 26 1,625 1,079 976 406

Non-interestincome 27 14,954 12,901 306 17,667

Othernon-operatingincome 28 1,628 1,541 1,832 1,447

Netincome 18,207 15,521 3,114 19,520

Operatingexpenses 29 (15,590) (13,755) (4,628) (3,214)

Operatingprofit/(loss) 2,617 1,766 (1,514) 16,306

Shareofprofitofanassociatedcompany 8,403 219 - -

Allowanceforlossesonloans,advancesandfinancing 31 (140) - - -

Profit/(loss)beforetax 10,880 1,985 (1,514) 16,306

Incometaxexpense 32 (657) (797) 95 (754)

Profit/(loss)fromcontinuingoperations 10,223 1,188 (1,419) 15,552

Discontinued operations

Profitfromdiscontinuedoperations,netoftax 33 16,298 28,759 - -

(Loss)/gainondisposalofsubsidiary 33 (68,652) - 85,189 -

(Loss)/profitfromdiscontinuedoperations (52,354) 28,759 85,189 -

(Loss)/profit for the year (42,131) 29,947 83,770 15,552


statements of comprehensive income continuedfortheyearended31January2013


Othercomprehensiveincome:

Net(loss)/gainonavailable-for-salefinancialassets (29,598) 26,217 (2,491) -

Currencytranslationdifferences 41 2 - -

Incometaxrelatingtocomponentsofother comprehensiveincome 16 7,399 (6,604) 623 -

Othercomprehensive(loss)/incomefortheyear,netoftax (22,158) 19,615 (1,868) -

Comprising:

-Continuingoperations

Netlossonavailable-for-salefinancialassets (1,669) (199) (1,868) -

Currencytranslationdifferences 41 2 - -

(1,628) (197) (1,868) -

-Discontinuedoperations 33 (20,530) 19,812 - -

(22,158) 19,615 (1,868) -

Totalcomprehensive(loss)/incomefortheyear (64,289) 49,562 81,902 15,552

(Loss)/profitattributabletoownersoftheCompany

-Continuingoperations 10,223 1,188 (1,419) 15,552

-Discontinuedoperations (52,354) 28,759 85,189 -

(42,131) 29,947 83,770 15,552

Totalcomprehensive(loss)/incomeattributabletoownersof theCompany

-Continuingoperations 8,595 991 (3,287) 15,552


(64,289) 49,562 81,902 15,552

Earningspershare(“EPS”)attributabletoownersoftheCompany:

Basic/dilutedearnings/(loss)pershare Note Sen Sen

Fromcontinuingoperations 34 1.23 0.14

Fromdiscontinuedoperations 34 (6.32) 3.50



statements of changes in equityfortheyearended31January2013

<---------------------------------------------------------- Non-distributable ---------------------------------------------------- -> Distributable Continuingoperations Discontinuedoperations Foreign Available- Available- Capital currency for-sale Equity for-sale Share Treasury Mergerredemptiontranslationrevaluationcompensation Generalrevaluation Statutory Regulatory Retained Note capital shares reserve reserve reserve reserve reserve reserve reserve reserve reserve profits Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group

As at 1 February 2012

- as previously reported 830,902 (1,579) 26,561 - (3,293) (199) 3,122 159 20,530 80,787 - 59,307 1,016,297

- effect of change in accounting policy (Note 2(b)(i)) - - - - - - - - - - - 4,746 4,746

830,902 (1,579) 26,561 - (3,293) (199) 3,122 159 20,530 80,787 - 64,053 1,021,043

Total comprehensive income/(loss):

- Continuing operations - - - - 41 (1,669) - - - - - 10,223 8,595

- Discontinued operations - - - - - - - - (20,530) - - (52,354) (72,884)

- - - - 41 (1,669) - - (20,530) - - (42,131) (64,289)

Transactions with owners:

Continuingoperations

ESOS lapsed during the year - - - - - - (361) - - - - - (361)

Cash dividend paid 35 - - - - - - - - - - - (19,892) (19,892)

Cancellation of treasury shares 25 (2,083) 1,579 - 2,083 - - - - - - - (1,579) -

Discontinuedoperations

Transfer to regulatory reserve - - - - - - - - - - 4,746 (4,746) -

Write-off of merger reserve 33(b) - - (26,561) - - - - - - - - - (26,561)

Disposal of ECM Libra

Investment Bank Berhad 33(b) - - - - - - - - - (80,787) (4,746) 85,533 -

(2,083) 1,579 (26,561) 2,083 - - (361) - - (80,787) - 59,316 (46,814)

Asat31January2013 828,819 - - 2,083 (3,252) (1,868) 2,761 159 - - - 81,238 909,940



<---------------------------------------------------------- Non-distributable ---------------------------------------------------- -> Distributable Continuingoperations Discontinuedoperations Foreign Available- Available- Capital currency for-sale Equity for-sale Share Treasury Mergerredemptiontranslationrevaluationcompensation Generalrevaluation Statutory Regulatory Retained Note capital shares reserve reserve reserve reserve reserve reserve reserve reserve reserve profits Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group (continued)


- as previously reported 830,902 (7,886) 26,561 - (3,295) - 3,526 159 718 65,720 - 76,501 992,906

- effect of change in accounting policy (Note 2(b)(i)) - - - - - - - - - - - 6,353 6,353

830,902 (7,886) 26,561 - (3,295) - 3,526 159 718 65,720 - 82,854 999,259

Total comprehensive income:

- Continuing operations - - - - 2 (199) - - - - - 1,188 991

- Discontinued operations - - - - - - - - 19,812 - - 28,759 48,571

- - - - 2 (199) - - 19,812 - - 29,947 49,562

Transactions with owners:

Continuingoperations

Arising from the Company’s

ESOS vested during the year - - - - - - 186 - - - - - 186

ESOS lapsed during the year - - - - - - (590) - - - - - (590)

Share buy-back by the Company 25 - (12,170) - - - - - - - - - - (12,170)

Cash dividend paid 35 - - - - - - - - - - - (15,204) (15,204)

Share dividend - 18,477 - - - - - - - - - (18,477) -

Discontinuedoperations

Transfer to statutory reserve - - - - - - - - - 15,067 - (15,067) -

- 6,307 - - - - (404) - - 15,067 - (48,748) (27,778)

As at 31 January 2012 830,902 (1,579) 26,561 - (3,293) (199) 3,122 159 20,530 80,787 - 64,053 1,021,043

statements of changes in equity continuedfortheyearended31January2013





<-------------- Non-distributable --------------> Distributable Available- Capital for-sale Equity Share Treasury redemption revaluation compensation Retained Note capital shares reserve reserve reserve profits Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Company

Asat1February2012 830,902 (1,579) - - 3,122 30,949 863,394

Totalcomprehensiveincome

-Continuingoperations - - - (1,868) - (1,419) (3,287)

-Discontinuedoperations - - - - - 85,189 85,189

- - - (1,868) - 83,770 81,902

Transactionswithowners:

ESOSlapsedduringtheyear - - - - (361) - (361)

Cashdividendpaid 35 - - - - - (19,892) (19,892)

Cancellationoftreasuryshares 25 (2,083) 1,579 2,083 - - (1,579) -

(2,083) 1,579 2,083 - (361) (21,471) (20,253)

As at 31 January 2013 828,819 - 2,083 (1,868) 2,761 93,248 925,043



<-------------- Non-distributable --------------> Distributable Available- Capital for-sale Equity Share Treasury redemption revaluation compensation Retained Note capital shares reserve reserve reserve profits Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Company (continued)

Asat1February2011 830,902 (7,886) - - 3,526 49,078 875,620

Totalcomprehensiveincome

-Continuingoperations - - - - - 15,552 15,552

Transactionswithowners:

ArisingfromtheCompany’s

ESOSvestedduringtheyear 29 - - - - 186 - 186

ESOSlapsedduringtheyear - - - - (590) - (590)

Sharebuy-backbytheCompany 25 - (12,170) - - - - (12,170)

Cashdividendpaid 35 - - - - - (15,204) (15,204)

Sharedividend - 18,477 - - - (18,477) -

- 6,307 - - (404) (33,681) (27,778)

Asat31January2012 830,902 (1,579) - - 3,122 30,949 863,394



statements of cash flowsfortheyearended31January2013


CASH FLOWS FROM OPERATING ACTIVITIES

Profit/(loss)beforetaxationfrom:



(34,001) 51,615 83,675 16,306

Adjustmentsfor:

Continuing operations

Depreciationofproperty,plantandequipment 17 1,033 835 812 739

Unrealised(gain)/lossonforeignexchangetransactions 28 (1) 1 - (2)

Gainondisposalofsubsidiary 33(b) - - (85,189) -

Shareofprofitofanassociatedcompany (8,403) (219) - -

Property,plantandequipmentwritten-off 29 3 - 3 -

Netgainondisposalofsecuritiesavailable-for-sale 27 (350) (484) (181) -

Netunrealisedloss/(gain)onrevaluationof:

-securitiesheld-for-trading 27 400 - - -

-derivatives 27 (1,204) - - -

Dividendincome 27 - (20) - (17,667)

CostarisingfromESOS 29 (149) (4) 26 -

Allowanceforlossesonloans,advancesandfinancing 31 140 - - -

Gainondisposalofproperty,plantandequipment 28 - (91) - (91)

Interestincome 26 (1,625) (1,079) (976) (406)

Balancecarriedforward (44,157) 50,554 (1,830) (1,121)



statements of cash flows continued fortheyearended31January2013

Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIES (continued)

Balancebroughtforward (44,157) 50,554 (1,830) (1,121)

Discontinued operations (Notes 33(b) and (c))

Writebackofimpairmentoninvestments (1,528) (1,651) - -

Depreciationofproperty,plantandequipment 4,827 4,858 - -

Unrealisedgainonforeignexchangetransactions (2,650) (3,752) - -

Lossondisposalofsubsidiary 68,652 - - -

Property,plantandequipmentwritten-off 1,056 20 - -

Netgainondisposalof:

-securitiesheld-for-trading (10,037) (12,061) - -

-securitiesavailable-for-sale (17,091) (9,788) - -

-derivatives (3,396) (1,938) - -

Netunrealisedloss/(gain)onrevaluationof:

-securitiesheld-for-trading 1,260 (307) - -

-derivatives 6,250 1,691 - -

Dividendincome (2,721) (1,981) - -

CostarisingfromESOS (212) (400) - -

Allowanceforlossesonloans,advancesandfinancing 3,728 671 - -

Allowancefor/(writebackof )badanddoubtfuldebts 17 (6,493) - -

Gainondisposalofproperty,plantandequipment - (2,399) - -

Interestincome (68,935) (82,071) - -

Interestexpense 41,577 46,975 - -

Operatinglossbeforeworkingcapitalchanges (23,360) (18,072) (1,830) (1,121)





CASH FLOWS FROM OPERATING ACTIVITIES (continued)

Balancebroughtforward (23,360) (18,072) (1,830) (1,121)

Decrease/(increase)inoperatingassets:

Securitiesheld-for-trading 344,441 5,201 - -

Derivativefinancialinstruments 3,766 3,168 - -

Loan,advancesandfinancing 11,093 101,110 - -

Tradereceivables (99,441) 128,311 - -

Otherassets (59,948) (25,798) 17,294 (459)

(Decrease)/increaseinoperatingliabilities:

Depositsfromcustomers (167,044) 34,677 - -

Depositsandplacementsofbanksandotherfinancialinstitutions (266,371) 140,363 - -

Tradepayables (19,781) (94,878) - -

Otherliabilities 37,526 (10,593) 1,980 1,881

Amountowingby/tosubsidiarycompanies - - (22,490) (737)

Cash(usedin)/generatedfromoperations (239,119) 263,489 (5,046) (436)

Taxrefunded 3,932 615 - 440

Taxpaid (10,883) (4,464) (574) (205)

Netcash(usedin)/generatedfromoperatingactivities (246,070) 259,640 (5,620) (201)





CASH FLOWS FROM INVESTING ACTIVITIES

Dividendsreceived 2,721 1,533 - 34,786

Purchaseofproperty,plantandequipment 17 (8,601) (14,598) (1,315) (4,294)

Purchaseoftreasuryshares 25 - (12,170) - (12,170)

Disposalofsubsidiary 33(e) (204,939) - 542,072 -

Advancestoassociatedcompany (7,200) - (7,200) -

Netdisposal/(acquisition)of:

-securitiesavailable-for-sale 130,101 (119,620) (464,753) -

-securitiesheld-to-maturity 160,000 (127,800) - -

-property,plantandequipment - 8,910 - 249

Interestincomereceived 77,082 78,238 982 392

Netcashgeneratedfrom/(usedin)investingactivities 149,164 (185,507) 69,786 18,963

CASH FLOWS FROM FINANCING ACTIVITIES

Placementofmoniesheldintrust (17,782) (6,266) - -

Dividendspaid 35 (19,892) (15,204) (19,892) (15,204)

Interestpaid (43,361) (47,870) - -

Netcashusedinfinancingactivities (81,035) (69,340) (19,892) (15,204)

Net (decrease)/increase in cash and cash equivalents (177,941) 4,793 44,274 3,558

Effects of foreign exchange differences 2,692 3,752 - 2

Cash and cash equivalents at beginning of year 248,717 240,172 10,043 6,483

Cash and cash equivalents at end of year 73,468 248,717 54,317 10,043

Cash and cash equivalents comprise:

Cashandshort-termfunds 3 73,468 252,020 54,317 10,043

Depositswithlicensedfinancialinstitutions 4 - 20,631 - -

Moniesheldintrustfordealers’representatives - (23,934) - -

73,468 248,717 54,317 10,043



notes to the financial statements

1. CORPORATE INFORMATION

TheCompanyisapubliclimitedcompanyincorporatedinMalaysiaandlistedontheMainMarketofBursaMalaysiaSecuritiesBerhad(“BursaMalaysia”).TheprincipalplaceofbusinessoftheCompanyislocatedat2ndFloor,EastWing,BangunanECMLibra,8JalanDamansaraEndah,DamansaraHeights,50490KualaLumpur.

The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiarycompaniesaresetoutinNote13.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringtheyear.TheinvestmentbankingsubsidiariesweredisposedoffduringthefinancialyearasdisclosedinNotes13and33.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorsinaccordancewitharesolutionofthedirectorson20March2013.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards(“MFRS”),InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.ThesearetheGroupandtheCompany’sfirstannualfinancialstatementspreparedinaccordancewithMFRSandMFRS1First-Time Adoption of Malaysian Financial Reporting Standards (“MFRS1”)hasbeenapplied.Inpreviousfinancialyears,thefinancialstatementsoftheGroupandoftheCompanywerepreparedinaccordancewithFinancialReportingStandards(“FRS”)inMalaysia.

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedonahistoricalcostbasis,exceptforsecuritiesheld-for-trading,securities available-for-sale, derivative financial assets and liabilities that have been stated at their fair values. The financial statements arepresentedinRinggitMalaysia(“RM”)andallvaluesareroundedtothenearestthousand(RM’000),unlessotherwiseindicated.Asatthereportingdate,thefinancialstatementshavebeenpreparedpursuanttotheBNM/GP8presentationasthesignificantportionofresultsandpositionsofthe Group were contributed from subsidiaries disposed as disclosed in Note 33.These financial statements are prepared in accordance withdisclosurerequirementsunderMFRS5Non-Current Assets Held-for-Sale and Discontinued Operations(“MFRS5”)asthedisposalwascompletedon14December2012.

(b) Transition to MFRS and application of MFRS 1

As disclosed in Note 2(a), these are the first financial statements of the Group and of the Company prepared in accordance with MFRS.TheaccountingpoliciessetoutinNotes(d)to(x)havebeenappliedinpreparingthefinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31January2013,thecomparativeinformationpresentedinthesefinancialstatementsforthefinancialyearended31January2012andinthepreparationoftheopeningstatementsoffinancialpositionat1February2011(whichisalsotheGroupandtheCompany’sdateoftransition).

TheGrouphasalsoadoptedFinancialReportingStandardsImplementationCommittee(“FRSIC”)Consensus18Monies Held in Trust by Participating Organisation at Bursa Malaysia Securities Berhad (“FRSIC18”)duringthefinancialyear.

In preparing their opening statement of financial position as at 1 February 2011, the Group and the Company have restated the amountspreviouslyreportedinfinancialstatementspreparedinaccordancewithFRS.AnexplanationofhowthetransitionfromFRStoMFRSandadoptionofFRSIC18haveaffectedtheGroup’sandtheCompany’sfinancialposition,financialperformanceandcashflowsissetoutasfollows:


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Transition to MFRS and application of MFRS 1 (continued)

Reconciliation of financial position as at 31 January 2012

Note 2(b)(i) Note 2(b)(ii) Under the Effect of Effect of Under the FRS transition adopting MFRS Group Framework to MFRS FRSIC 18 Framework As at 31 January 2012 RM’000 RM’000 RM’000 RM’000

ASSETS

Cashandshort-termfunds 410,566 (158,546) 252,020

Depositswithfinancialinstitutions 20,631 20,631

Securitiesheld-for-trading 360,985 360,985

Securitiesavailable-for-sale 675,033 675,033

Securitiesheld-to-maturity 200,000 200,000

Derivativefinancialassets 6,688 6,688

Loans,advancesandfinancing 550,242 6,328 556,570

Tradereceivables 363,500 363,500

Otherassets 29,443 29,443

StatutorydepositwithBankNegaraMalaysia 27,165 27,165

Investmentinassociatedcompany 19,976 19,976

Deferredtaxassets 735 735

Property,plantandequipment 44,916 44,916

Intangibleassets 284,500 284,500

TOTAL ASSETS 2,994,380 2,842,162

notes to the financial statementscontinued





Reconciliation of financial position as at 31 January 2012 (continued)

Note 2(b)(i) Note 2(b)(ii) Under the Effect of Effect of Under the FRS transition adopting MFRS Group Framework to MFRS FRSIC 18 Framework As at 31 January 2012 (continued) RM’000 RM’000 RM’000 RM’000

LIABILITIES

Depositsfromcustomers 1,081,483 1,081,483

Depositsandplacementsofbanksandotherfinancialinstitutions 341,371 341,371

Derivativefinancialliabilities 57 57

Tradepayables 482,959 (158,546) 324,413

Otherliabilities 61,299 61,299

Provisionfortaxation 2,873 1,582 4,455

Deferredtaxliabilities 8,041 8,041

TOTAL LIABILITIES 1,978,083 1,821,119


EQUITY

Sharecapital 830,902 830,902

Reserves 186,974 4,746 191,720

Less:Treasuryshares,atcost (1,579) (1,579)

TOTAL EQUITY 1,016,297 1,021,043

TOTAL LIABILITIES AND EQUITY 2,994,380 2,842,162

Netassetspershare(RM) 1.23 1.23





Reconciliation of financial position as at 1 Febuary 2011

Note 2(b)(i) Note 2(b)(ii) Under the Effect of Effect of Under the FRS transition adopting MFRS Group Framework to MFRS FRSIC 18 Framework As at 1 February 2011 RM’000 RM’000 RM’000 RM’000

ASSETS

Cashandshort-termfunds 394,897 (149,742) 245,155

Depositswithfinancialinstitutions 21,489 21,489

Securitiesheld-for-trading 353,818 353,818

Securitiesavailable-for-sale 519,479 519,479

Securitiesheld-to-maturity 70,000 70,000

Derivativefinancialassets 9,552 9,552

Loans,advancesandfinancing 649,880 8,471 658,351

Tradereceivables 485,318 485,318

Otherassets 21,760 21,760

StatutorydepositwithBankNegaraMalaysia 8,834 8,834

Investmentinassociatedcompany 19,757 19,757

Deferredtaxassets 11,687 11,687

Property,plantandequipment 42,451 42,451

Intangibleassets 284,500 284,500

TOTAL ASSETS 2,893,422 2,752,151





Reconciliation of financial position as at 1 February 2011 (continued)

Note 2(b)(i) Note 2(b)(ii) Under the Effect of Effect of Under the FRS transition adopting MFRS Group Framework to MFRS FRSIC 18 Framework As at 1 February 2011 (continued) RM’000 RM’000 RM’000 RM’000


LIABILITIES

Depositsfromcustomers 1,046,806 1,046,806

Depositsandplacementsofbanksandotherfinancialinstitutions 201,008 201,008

Tradepayables 577,837 (149,742) 428,095

Otherliabilities 73,865 73,865

Provisionfortaxation 42 2,118 2,160

Deferredtaxliabilities 958 958

TOTAL LIABILITIES 1,900,516 1,752,892

EQUITY

Sharecapital 830,902 830,902

Reserves 169,890 6,353 176,243

Less:Treasuryshares,atcost (7,886) (7,886)

TOTAL EQUITY 992,906 999,259

TOTAL LIABILITIES AND EQUITY 2,893,422 2,752,151

Netassetspershare(RM) 1.21 1.22





(i) MFRS 139 Financial Instruments: Recognition and Measurement (“MFRS 139”) - Accounting policy on collective assessment allowance for loans, advances and financing (“loans”)

Prior to the transition to MFRS 139, the Group maintained its collective assessment allowance at 1.5% of total outstanding loans, net of individualassessmentallowance,inlinewithBankNegaraMalaysia(“BNM”)’stransitionalprovisionsunderitsGuidelinesonClassificationand Impairment Provisions for Loans/Financing. Upon the transition to MFRS 139 on 1 February 2012, these transitional provisions, which wereallowedunderthepreviousFRSframework,wereremovedandtheGroupappliedtherequirementsofMFRS139inthedetermination ofcollectiveassessmentallowance.

UnderMFRS139,collectiveassessment isperformedon loanswhicharenot individuallysignificantbasedonthe incurred lossapproach. Loanswhichare individuallyassessedandwherethere isnoobjectiveevidenceof impairmentarealso includedinthegroupof loansfor collectiveassessment.Theseloansarepooledintogroupswithsimilarcreditriskcharacteristicsandthefuturecashflowsforeachgroupis estimatedonthebasisofthehistoricallossexperienceforsuchassetsanddiscountedtopresentvalue.Collectiveassessmentallowanceis madeonanyshortfallinthesediscountedcashflowsagainstthecarryingvalueofthegroupofloans.

This change in accounting policy has been accounted for retrospectively and has resulted in a decrease in the collective assessment allowance charged in the income statement and a writeback of collective assessment allowance to the opening retained profits and opening collective assessment allowance in the statement of financial position. BNM required ECM Libra Investment Bank Berhad, a subsidiaryoftheGrouptoclassifythewritebackofcollectiveassessmentallowanceintoregulatoryreserveuntilthevalidationiscompleted. AsummaryofthefinancialimpactofthechangeinaccountingpolicyonthefinancialstatementsoftheGroupareasfollows:

Group 31 January 1 February 2012 2011 Statement of Financial Position RM’000 RM’000

Loans, advances and financing

- collective assessment allowance

Aspreviouslystated 8,704 10,176

Effectofchangeinaccountingpolicy (6,328) (8,471)

Asrestated 2,376 1,705

Retained profits


Effectofchangeinaccountingpolicy 4,746 6,353

Asrestated 64,053 82,854





(ii) FRSIC 18 Monies Held in Trust by Participating Organisations of Bursa Malaysia Securities Berhad (“FRSIC 18”)

FRSIC18wasdevelopedbytheFRSICandissuedbytheMalaysianInstituteofAccountants(“MIA”or“Institute”)on18September2012.

FRSIC 18 provides that the trust monies do not constitute part of the participating organisation’s assets because it does not have any control over the trust monies to obtain the future economic benefits embodied in trust monies. Although a participating organisation isrequiredtomaintainthetrustmoniespursuanttoCapitalMarketsandServicesAct,2007(“CMSA2007”)andBursaMalaysiaRules,itdoesnot have any contractual or statutory obligation to its clients on the trust monies that would result in an outflow of resources embodying economicbenefitsfromit.However,aliabilitywillberecognisedintheeventofalossoftrustmonieswhichwouldresultinthepaymentof anycompensationbytheparticipatingorganisationtoitsclient.

Hence,therecognitionofthetrustmoniesaspartoftheparticipatingorganisation’sassetswithcorrespondingliabilitiesisinappropriatefrom thecontextofMFRS.

TheGrouphasappliedtherequirementofFRSIC18accordingly.Thischangehasbeenaccountedforretrospectivelyandhasresultedina decreaseintheopeningcashandbalanceswithbanksandotherliabilitiesrespectivelyinthestatementoffinancialposition.Asummaryof thefinancialimpactofthechangeinaccountingpolicyonthefinancialstatementsoftheGroupisasfollows:

Group 31 January 1 February 2012 2011 Statement of Financial Position RM’000 RM’000

Cash and balances with banks


EffectofchangeduetoFRSIC18 (158,546) (149,742)

Asrestated 252,020 245,155

Trade payables


EffectofchangeduetoFRSIC18 (158,546) (149,742)

Asrestated 324,413 428,095




(c) Standards issued but not yet effective

Asatthedateofauthorisationofthesefinancialstatements,thefollowingstandards,AmendmentsandIssuesCommittee(“IC”)InterpretationshavebeenissuedbytheMalaysianAccountingStandardsBoard(“MASB”)butarenotyeteffectiveandhavenotbeenadoptedbytheGroupandbytheCompany:

Effective for financial periods beginning on or after 1 January 2013

MFRS3BusinessCombination

MFRS10ConsolidatedFinancialStatements

MFRS11JointArrangements

MFRS12DisclosureofInterestsinOtherEntities

MFRS13FairValueMeasurement

MFRS119EmployeeBenefits(revised)

MFRS127ConsolidatedandSeparateFinancialStatements(revised)

MFRS128InvestmentsinAssociates(revised)

AmendmentstoMFRS7FinancialInstruments:Disclosures-OffsettingFinancialAssetsandFinancialLiabilities

AmendmentstoMFRS1First-timeAdoptionofMalaysianFinancialReportingStandards-GovernmentLoans

AmendmentstoMFRS1First-timeAdoptionofMalaysianFinancialReportingStandards(AnnualImprovements2009-2011Cycle)

AmendmentstoMFRS101PresentationofFinancialStatements(AnnualImprovements2009-2011Cycle)

AmendmentstoMFRS116Property,PlantandEquipment(AnnualImprovements2009-2011Cycle)

AmendmentstoMFRS132FinancialInstruments:Presentation(AnnualImprovements2009-2011Cycle)

AmendmentstoMFRS134InterimFinancialReporting(AnnualImprovements2009-2011Cycle)

AmendmentstoMFRS10ConsolidatedFinancialStatements:TransitionGuidance

AmendmentstoMFRS11JointArrangements:TransitionGuidance

AmendmentstoMFRS12DisclosureofInterestsinOtherEntities:TransitionGuidance

ICInterpretation2Members’SharesinCo-operativeEntitiesandSimilarInstruments(AnnualImprovements2009-2011Cycle)




(c) Standards issued but not yet effective (continued)


AmendmentstoMFRS132FinancialInstruments:Presentation-OffsettingFinancialAssetsandFinancialLiabilities


MFRS9FinancialInstruments

AmendmentstoMFRS7FinancialInstruments:Disclosures-MandatoryDateofMFRS9andTransitionDisclosures

TheGroupandtheCompanyplantoadopttheabovepronouncementswhentheybecomeeffectiveintherespectivefinancialperiods.Thesepronouncements are expected to have no significant impact to the financial statements of the Group and of the Company upon their initialapplicationexceptasdescribedbelow:

(i) MFRS 9 Financial Instruments (“MFRS 9”)

MFRS 9, as issued, reflects the first phase of the IASB’s work on the replacement of MFRS 139 Financial Instruments: Recognition and Measurement(“MFRS139”)andappliestoclassificationandmeasurementoffinancialassetsandfinancialliabilitiesasdefinedinMFRS139 andreplacestheguidanceinMFRS139.

Insubsequentphases,theIASBwilladdresshedgeaccountingandimpairmentoffinancialassets.TheadoptionofthefirstphaseofMFRS9 mayhaveaneffectontheclassificationandmeasurementoftheGroup’sandoftheCompany’sfinancialassetsandfinancialliabilities.The GroupandtheCompanywillquantifytheeffectinconjunctionwiththeotherphaseswhenthefinalstandardwhichincludesallphasesis issued.

(ii) MFRS 10 Consolidated Financial Statements (“MFRS 10”)

MFRS10establishesasinglecontrolmodelthatappliestoallentitiesincludingspecialpurposeentities.ThechangesintroducedbyMFRS 10 will require management to exercise significant judgment to determine which entities are controlled and therefore are required to be consolidatedbyaparent,comparedwiththerequirementsthatwereinMFRS127ConsolidatedandSeparateFinancialStatementsandIC Interpretation112SpecialPurposeEntities.Basedonthepreliminaryanalysisperformed,MFRS10 isnotexpectedtohaveany impacton theinvestmentscurrentlyheldbytheGroupandtheCompany.

(iii) MFRS 12 Disclosure of Interests in Other Entities (“MFRS 12”)

MFRS 12 includes all disclosures that were previously in MFRS 127 related to consolidated financial statements as well as all of the disclosuresthatwerepreviouslyincludedinMFRS11JointArrangementsandMFRS128InvestmentsinAssociates.Thesedisclosuresrelated toanentity’sinterestsinsubsidiaries,jointarrangements,associatesandstructuredentities.Anumberofnewdislcosuresarealsorequired butwillhavenoimpactontheGroup’sandtheCompany’sfinancialpositionorperformance.

(iv) MFRS 13 Fair Value Measurement (“MFRS 13”)

MFRS13establishesasinglesourceofguidanceunderMFRSforall fairvaluemeasurements.MFRS13doesnotchangewhenanentity is requiredtousefairvaluebutratherprovidesguidanceonhowtomeasurefairvalueunderMFRSwhenfairvalueisrequiredorpermitted. TheGroupandtheCompanyarecurrentlyassessingthe impactthatthisstandardwillhaveonthefinancialpositionandperformanceof theGroupandoftheCompanybutbasedonpreliminaryanalysis,nomaterialimpactisexpected.




(d) Subsidiaries and basis of consolidation

(i) Subsidiaries

Subsidiariesareentitiesoverwhich theGrouphas theability togovern the financialandoperatingpoliciessoas toobtainbenefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessingwhethertheGrouphassuchpoweroveranotherentity.

IntheCompany’sseparatefinancialstatements, investmentsinsubsidiariesarestatedatcostlessimpairmentlosses, ifany.Ondisposalof suchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

(ii) Basis of consolidation

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyanditssubsidiariesasatthereportingdate.The financial statements of the subsidiaries are prepared for the same reporting date as the Company. Consistent accounting policies are appliedtoliketransactionsandeventsinsimilarcircumstances.

Allintra-groupbalances,incomeandexpensesandunrealisedgainsandlossesresultingfromintra-grouptransactionsareeliminatedinfull.

Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidateduntilthedatethatsuchcontrolceases.

(iii) Purchase method of consolidation

Acquisitions of subsidiaries are generally accounted for using the acquisition method. The acquisition method of accounting involves allocating the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities assumed at the date of acquisition. The cost of an acquisition is measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilitiesincurredorassumed,andequityinstrumentsissued.Acquisition-relatedcostsarerecognisedasexpensesintheperiodsinwhich thecostsareincurredandtheservicesarereceived.

Anyexcessof thecostof theacquisitionover theGroup’s interest in thenet fairvalueof the identifiableassets, liabilitiesandcontingent liabilities represents goodwill. Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilitiesoverthecostofacquisitionisrecognisedimmediatelyasagainfromabargainpurchaseinprofitorlossonthedateofacquisition.

(iv) Merger principles of accounting

Businesscombinationsinvolvingentitiesundercommoncontrolareaccountedforusingmergerprinciplesofaccounting.Whenthemerger principlesofaccountingareadopted,thedifferencebetweenthecostofinvestmentintheCompany’srecordsandthesharecapitalofthe “acquiredentity”istreatedasamergerreserveoramergerdeficit.Theresultsofthecompaniesmergedareincludedasifthemergerhad beeneffectedfromdayonethroughoutthefinancialperiodspresented.

ThemergerprinciplesofaccountingwereadoptedbytheGroupinrespectoftheacquisitionofAvenueCapitalResourcesBerhad(“ACRB”) anditssubsidiariespursuanttotheACRBreorganisationexerciseinthepreviousfinancialyears.




(e) Associates

AssociatesareentitiesinwhichtheGrouphassignificantinfluenceandthatisneitherasubsidiarynoraninterestinajointventure.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnotincontrolorjointcontroloverthosepolicies.

Investmentsinassociatesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting.Undertheequitymethod,theinvestmentinanassociateiscarriedintheconsolidatedstatementoffinancialpositionatcostadjustedforpost-acquisitionchangesintheGroup’sshareofnetassetsoftheassociate.TheGroup’sshareofthenetprofitor lossoftheassociateisrecognisedintheconsolidatedprofitorloss.Wheretherehasbeenachangerecogniseddirectlyintheequityoftheassociate,theGrouprecognisesitsshareofsuchchanges.Inapplyingtheequitymethod,unrealisedgainsandlossesontransactionsbetweentheGroupandtheassociateareeliminatedtotheextentoftheGroup’sinterestintheassociate.Afterapplicationoftheequitymethod,theGroupdetermineswhetheritisnecessarytorecogniseanyadditionalimpairmentlosswithrespecttotheGroup’snetinvestmentintheassociate.TheassociateisequityaccountedforfromthedatetheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociate.

WhentheGroup’sshareoflossesinanassociateequalsorexceedsitsinterestintheassociate,includinganylong-termintereststhat,insubstance,formpartoftheGroup’snetinvestmentintheassociate,theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociate.

ThemostrecentavailableauditedfinancialstatementsoftheassociatesareusedbytheGroupinapplyingtheequitymethod.WherethedatesoftheauditedfinancialstatementsusedarenotcoterminouswiththoseoftheGroup,theshareofresultsisarrivedatfromthelastauditedfinancialstatementsavailableandmanagementfinancialstatementstotheendoftheaccountingperiod.Uniformaccountingpoliciesareadoptedforliketransactionsandeventsinsimilarcircumstances.

In the Company’s separate financial statements, investments in associates are stated at cost less impairment losses. On disposal of suchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedintheprofitorloss.

(f) Intangible assets

(i) Goodwill

Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business combination over the Group’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.Followingtheinitialrecognition,goodwill ismeasuredatcostlessanyaccumulatedimpairmentlosses.Goodwillisnotamortisedbutinstead,itisreviewedforimpairment,annually ormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.Gainsandlossesonthedisposal ofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

(ii) Merchant bank licence

This represents contribution to BNM for a merchant bank licence to transform ECM Libra Investment Bank Berhad, the universal broker subsidiaryintoaninvestmentbank.Themerchantbanklicencehasindefiniteusefullifeandisstatedatcostlessaccumulatedimpairment losses.

Merchantbank licence isnotamortisedbut tested for impairmentannuallyormore frequently if theeventsorchanges incircumstances indicatethatthecarryingvaluemaybeimpaired.Anyimpairmentlossisrecognisedinprofitorloss.




(g) Property, plant and equipment

Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandtheCompanyandthecostoftheitemcanbemeasuredreliably.

Subsequenttorecognition,property,plantandequipmentaremeasuredatcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognises such parts asindividualassetswithspecificusefullivesanddepreciation,respectively.Likewise,whenamajorinspectionisperformed,itscostisrecognisedinthecarryingamountoftheplantandequipmentasareplacementiftherecognitioncriteriaaresatisfied.Allotherrepairandmaintenancecostsarerecognisedinprofitorlossasincurred.

Work-in-progresscomprisestherenovationworkofbuildingswhichhavenotbeencompletedandthereforeitisnotdepreciated.

Freeholdlandhasanunlimitedusefullifeandthereforeisnotdepreciated.

Depreciationofotherproperty,plantandequipmentisprovidedforonastraight-linebasistowriteoffthecostofeachassettoitsresidualvalueovertheestimatedusefullife,atthefollowingannualrates:

%

Building 2

Furnitureandfittingsandofficeequipment 10-20

Computers 20-25

Motorvehicles 20

Thecarryingvaluesofproperty,plantandequipmentarereviewedforimpairmentwheneventsorchangesincircumstancesindicatethatthecarryingvaluemaynotberecoverable.

Theresidualvalue,usefullifeanddepreciationmethodarereviewedateachfinancialyearend,andadjustedprospectively,ifappropriate.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use ordisposal.Thedifferencebetweenthenetdisposalproceeds,ifany,andthenetcarryingamountisrecognisedintheprofitorloss.

(h) Impairment of non-financial assets, investments in subsidiaries and associates

TheGroupassessesateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,orwhenanannualimpairmentassessmentforanassetisrequired,theGroupmakesanestimateoftheasset’srecoverableamount.

Anasset’srecoverableamountisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.Forthepurposeofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits(“CGU”)).




(h) Impairment of non-financial assets, investments in subsidiaries and associates (continued)

Inassessingvalueinuse,theestimatedfuturecashflowsexpectedtobegeneratedbytheassetarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theassetiswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Impairmentlossesarerecognisedinprofitorloss.

Anassessmentismadeateachreportingdateastowhetherthereisanyindicationthatpreviouslyrecognisedimpairmentlossesmaynolongerexistormayhavedecreased.Otherthangoodwill,apreviouslyrecognised impairment loss is reversedonly if therehasbeenachange intheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Ifthatisthecase,thecarryingamountoftheassetisincreasedtoitsrecoverableamount.Thatincreasecannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedpreviously.Suchreversalisrecognisedinprofitorloss.Impairmentlossongoodwillisnotreversedinasubsequentperiod.

(i) Financial assets

Financialassetsarerecognisedinthestatementsoffinancialpositionwhen,andonlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstrument.

Whenfinancialassetsarerecognisedinitially,theyaremeasuredatfairvalue,plus,inthecaseoffinancialassetsnotatfairvaluethroughprofitorloss,directlyattributabletransactioncosts.

TheGroupandtheCompanydeterminetheclassificationoftheirfinancialassetsatinitialrecognition,andthecategoriesincludefinancialassetsatfairvaluethroughprofitorloss,loansandreceivables,held-to-maturityinvestmentsandavailable-for-salefinancialassets.

(i) Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss if they are held-for-trading (“HFT”) or are designated assuchuponinitialrecognition.FinancialassetsHFTarederivatives(includingseparatedembeddedderivatives)orfinancialassetsacquired principallyforthepurposeofsellinginthenearterm.

Subsequentto initial recognition, financialassetsat fairvaluethroughprofitor lossaremeasuredat fairvalue.Anygainsor lossesarising from changes in fair value are recognised in profit or loss. Net gains or net losses on financial assets at fair value through profit or loss donot includeexchangedifferencesonmonetary items, interestanddividend income.Exchangedifferencesonmonetary items, interest anddividendincomeonfinancialassetsatfairvaluethroughprofitorlossarerecognisedseparatelyinprofitorlossaspartofotherlosses orotherincome.

Financialassetsatfairvaluethroughprofitorlosscouldbepresentedascurrentornon-current.Financialassetsthatareheldprimarilyfor tradingpurposesarepresentedascurrentwhereasfinancialassetsthatarenotheldprimarilyfortradingpurposesarepresentedascurrent ornon-currentbasedonthesettlementdate.




(i) Financial assets (continued)

(ii) Loans and receivables

Financialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedasloansandreceivables.

Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Gains and lossesarerecognisedinprofitorlosswhentheloansandreceivablesarederecognisedorimpaired,andthroughtheamortisationprocess.

Loansandreceivablesareclassifiedascurrentassets,exceptforthosehavingmaturitydateslaterthan12monthsafterthereportingdate whichareclassifiedasnon-current.

(iii) Held-to-maturity (“HTM”) investments

Financialassetswith fixedordeterminablepaymentsandfixedmaturityareclassifiedasHTMwhentheGroupandtheCompanyhasthe positiveintentionandabilitytoholdtheinvestmenttomaturity.

Subsequent to initial recognition,HTM investmentsaremeasuredatamortisedcostusingtheeffective interestmethod.Gainsand losses arerecognisedinprofitorlosswhentheHTMinvestmentsarederecognisedorimpaired,andthroughtheamortisationprocess.

HTMinvestmentsareclassifiedasnon-currentassets,exceptforthosehavingmaturitywithin12monthsafterthereportingdatewhichare classifiedascurrent.

(iv) Available-for-sale (“AFS”) financial assets

AFSarefinancialassetsthataredesignatedasavailable-for-saleorarenotclassifiedinanyofthethreeprecedingcategories.

Afterinitialrecognition,AFSfinancialassetsaremeasuredatfairvalue.Anygainsorlossesfromchangesinfairvalueofthefinancialasset arerecognisedinothercomprehensiveincome,exceptthatimpairmentlosses,foreignexchangegainsandlossesonmonetaryinstruments andinterestcalculatedusingtheeffectiveinterestmethodarerecognisedinprofitorloss.Thecumulativegainorlosspreviouslyrecognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised.Interestincomecalculatedusingtheeffectiveinterestmethodisrecognisedinprofitorloss.DividendsonanAFSinstrument arerecognisedinprofitorlosswhentheGroup’sandtheCompany’srighttoreceivepaymentisestablished.

Investmentsinequityinstrumentswhosefairvaluecannotbereliablymeasuredaremeasuredatcostlessimpairmentloss.

AFSfinancialassetsareclassifiedasnon-currentassetsunlesstheyareexpectedtoberealisedwithin12monthsafterthereportingdate.

A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financialasset in itsentirety, thedifferencebetweenthecarryingamountandthesumof theconsideration receivedandanycumulative gainorlossthathadbeenrecognisedinothercomprehensiveincomeisrecognisedinprofitorloss.

Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned. All regular way purchases and sales of financial assets are recognisedorderecognisedonthetradedatei.e.,thedatethattheGroupandtheCompanycommittopurchaseorselltheasset.




(j) Reclassification of financial assets

TheGroupandtheCompanymaychoosetoreclassifynon-derivativeassetsoutfromtheHFTcategory,inrarecircumstances,wherethefinancialassetsarenolongerheldforthepurposeofsellingorrepurchasingintheshortterm.Inaddition,theGroupandtheCompanymayalsochoosetoreclassifyfinancialassetsthatwouldmeetthedefinitionofloansandreceivablesoutoftheHFTorAFScategoriesiftheGroupandtheCompanyhavetheintentionandabilitytoholdthefinancialassetfortheforeseeablefutureoruntilmaturity.

Reclassificationsaremadeatfairvalueasatthereclassificationdate,wherebythefairvaluebecomesthenewcostoramortisedcost,asapplicable.Anyfairvaluegainsorlossespreviouslyrecognisedinprofitorlossarenotreversed.

Asatreportingdate,theGroupandtheCompanyhavenotmadeanysuchreclassificationoffinancialassets.

(k) Determination of fair value

Allfinancialinstrumentsarerecognisedinitiallyatfairvalue.Atinitialrecognition,thefairvalueofafinancialinstrumentisthetransactionprice,i.e.thefairvalueoftheconsiderationgivenorreceived.Subsequenttoinitialrecognition,thefairvalueofthefinancialinstrumentsmeasuredatfairvaluearemeasuredinaccordancewiththevaluationmethodologiesassetoutinNote41.

Investmentsinunquotedequityinstrumentswhosefairvaluecannotbereliablymeasuredaremeasuredatcost,andassessedforimpairmentateachreportingdate.

MFRS7FinancialInstruments:Disclosuresrequirestheclassificationoffinancialinstrumentsheldatfairvalueaccordingtoahierarchythatreflectsthesignificanceofinputsusedinmakingthemeasurements,inparticular,whethertheinputsusedareobservableorunobservable.Thefollowinghierarchyisusedfordetermininganddisclosingthefairvalueoffinancialinstruments:

Level1-quotedmarketprices:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities;.

Level2-valuationtechniquesusingobservableinputs:inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,whetherdirectly(i.e.prices)orindirectly(i.e.derivedfromprices),areused;

Level3-valuationtechniqueswithsignificantunobservableinputs:inputsusedarenotbasedonobservablemarketdata.

For financial instruments measured at fair value, where available, quoted and observable market prices in an active market or dealer pricequotationsareusedtomeasurefairvalue.TheseincludelistedequitysecuritiesandbrokerquotesfromBloombergandReuters.

Wheresuchquotedandobservablemarketpricesarenotavailable, fairvaluesaredeterminedusingappropriatevaluationtechniques,whichincludetheuseofmathematicalmodels,suchasdiscountedcashflowmodelsandoptionpricingmodels,comparisontosimilarinstrumentsforwhichmarketobservablepricesexistandothervaluation techniques.Valuation techniquesused incorporateassumptions regardingdiscountrates,interestrateyieldcurves,estimatesoffuturecashflowsandotherfactors.

Changes in these assumptions could materially affect the fair values derived. The Group and the Company generally use widely recognisedvaluationtechniqueswithmarketobservableinputsforthedeterminationoffairvalueduetothelowcomplexityofthefinancialinstrumentsheld.




(l) Offsetting of financial instruments

Financialassetsandliabilitiesareoffsetandthenetamountreportedinthestatementsoffinancialpositionwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,ortorealisetheassetandtosettletheliabilitysimultaneously.Thisisnotgenerallythecasewithmasternettingagreementsandtherefore,therelatedassetsandliabilitiesarepresentedonagrossbasisinthestatementsoffinancialposition.

(m) Impairment of financial assets

TheGroupandtheCompanyassessateachreportingdatewhetherthereisanyobjectiveevidencethatafinancialassetisimpaired.

(i) Trade and other receivables and other financial assets carried at amortised cost

Tradereceivablesarecarriedatanticipatedrealisablevalues.Impairedaccountsarewrittenoffaftertakingintoconsiderationtherealisable valuesofcollaterals,ifany,wheninthejudgmentofthemanagement,thereisnoprospectofrecovery.

Individual impairment assessment allowances for receivables are made for accounts which are considered doubtful or which have been classifiedasimpaired,netofinterest-in-suspenseandaftertakingintoconsiderationanycollateralheldbytheGroup.Collectiveimpairment assessmentallowanceismadeifnecessarybasedonhistoricallossexperiencebasedonacertainpercentageoftradereceivables(excluding outstandingpurchasecontractswhicharenotdueforpayment),netofindividualimpairmentassessmentallowances.Whenanaccountis classifiedas impaired, interest issuspendedand is recognisedonacashbasis fortradereceivables. Interest-in-suspenseformspartof the individualimpairmentassessmentallowances.

Otherreceivablesandother financialassetsarecarriedatanticipatedrealisablevalues. Impairedaccountsarewrittenoffafter taking into consideration the realisable values of collaterals, if any, when in the opinion of the management, there is no prospect of recovery. An estimateismadeforimpairmentallowancebasedonreviewofalloutstandingamountsasatreportingdate.

InaccordancewiththeRulesofBursaMalaysia,clients’accountsareclassifiedasnon-performingunderthefollowingcircumstances:

Types of account Criteria for classification as non-performing

Contralosses Whentheaccountremainsoutstandingfor16calendardaysormorefromthedateofcontratransaction.

Overduepurchasecontracts WhentheaccountremainsoutstandingfromT+3marketdaysonwards.

Marginaccounts Whenthevalueofcollateralhasfallenbelow130%oftheoutstandingbalance.

(ii) Unquoted equity securities carried at cost

If there is objective evidence (such as significant adverse changes in the business environment where the issuer operates, probability of insolvencyorsignificantfinancialdifficultiesoftheissuer)thatanimpairmentlossonfinancialassetscarriedatcosthasbeenincurred,the amountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows discountedatthecurrentmarketrateofreturnforasimilarfinancialasset.Suchimpairmentlossesarenotreversedinsubsequentperiods.




(m) Impairment of financial assets (continued)

(iii) AFS financial assets

Significantorprolongeddeclineinfairvaluebelowcost,significantfinancialdifficultiesoftheissuerorobligor,andthedisappearanceofan active trading market are considerations to determine whether there is objective evidence that investment securities classified as AFS financialassetsareimpaired.

IfanAFSfinancialassetisimpaired,anamountcomprisingthedifferencebetweenitscost(netofanyprincipalpaymentandamortisation) anditscurrentfairvalue,lessanyimpairmentlosspreviouslyrecognisedinprofitorloss,istransferredfromequitytoprofitorloss.

Impairment losses on AFS equity investments are not reversed in profit or loss in the subsequent periods. Increase in fair value, if any, subsequent to impairment loss is recognised in other comprehensive income. For AFS debt investments, impairment losses are subsequentlyreversedinprofitorlossifanincreaseinthefairvalueoftheinvestmentcanbeobjectivelyrelatedtoaneventoccurringafter therecognitionoftheimpairmentlossinprofitorloss.

(n) Cash and cash equivalents

Cashandcashequivalentscomprisecashatbankandonhandanddepositplacementsmaturinglessthanonemonthheldforthepurposeofmeetingshort-termcommitments,andreadilyconvertibletoknownamountofcash,whicharesubjecttoaninsignificantriskofchangesinvalue,andexcludingmoniesheldintrustforclientsanddealers’representatives.

(o) Provisions

Provisionsare recognisedwhentheGroupand theCompanyhaveapresentobligation (legalorconstructive)asa resultofapastevent, it isprobable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be estimatedreliably.

Provisionsarereviewedateachreportingdateandadjustedtoreflect thecurrentbestestimate. If it isno longerprobablethatanoutflowofeconomicresourceswillberequiredtosettletheobligation,theprovisionisreversed.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasafinancecost.

(p) Financial liabilities

Financialliabilitiesareclassifiedaccordingtothesubstanceofthecontractualarrangementsenteredintoandthedefinitionsofafinancialliability.

Financialliabilitiesarerecognisedinthestatementsoffinancialpositionwhen,andonlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancial instrument.Financial liabilitiesaremeasuredatamortisedcost.TheGroupandtheCompanydonothaveanynon-derivativefinancialliabilitiesdesignatedatfairvaluethroughprofitorloss.Financialliabilitiesmeasuredatamortisedcostincludedepositsfromcustomers,depositsfrombanks,debtsecuritiesissuedandotherborrowedfunds.

A financial liability is derecognised when the obligation under the liability is extinguished.When an existing financial liability is replaced byanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandtherecognitionofanewliability,andthedifferenceintherespectivecarryingamountsisrecognisedinprofitorloss.




(q) Employee benefits

(i) Short-term employee benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees. Short-term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short-term non-accumulating compensated absencessuchassickleavearerecognisedwhentheabsencesoccur.

(ii) Defined contribution plans

TheGroupandtheCompanyparticipateinthenationalpensionschemesasdefinedbythelawsofthecountriesinwhichithasoperations. The companies in the Group make contributions to the Employee Provident Fund in Malaysia, a defined contribution pension scheme. Contributionstodefinedcontributionpensionschemesarerecognisedasanexpenseintheperiodinwhichtherelatedserviceisperformed.

(iii) Employee share option plans

EmployeesoftheGroupreceiveremunerationintheformofshareoptionsoftheholdingcompanyasconsiderationforservicesrendered. Thecostoftheseequity-settledtransactionswithemployeesismeasuredbyreferencetothefairvalueoftheoptionsatthedateonwhich theoptionsaregranted.Thiscost is recognised inprofitor loss,withacorresponding increase intheemployeeshareoptionreserveover thevestingperiod.Thecumulativeexpenserecognisedateachreportingdateuntilthevestingdatereflectstheextenttowhichthevesting periodhasexpiredandtheGroup’sbestestimateofthenumberofoptionsthatwillultimatelyvest.Thechargeorcredittoprofitorlossfor aperiodrepresentsthemovementincumulativeexpenserecognisedatthebeginningandendofthatperiod.

Noexpenseisrecognisedforoptionsthatdonotultimatelyvest,exceptforoptionswherevestingisconditionaluponamarketornon-vesting condition,whicharetreatedasvestedirrespectiveofwhetherornotthemarketornon-vestingconditionissatisfied,providedthatallother performanceand/orserviceconditionsaresatisfied.Theemployeeshareoptionreserve istransferredtoretainedearningsuponexpiryof theshareoptions.Whentheoptionsareexercised,theemployeeshareoptionreserveistransferredtocapitalreserve.

(r) Revenue and income recognition

RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheGroupandtheCompanyandtherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

(i) Grossbrokeragefeeisrecognisedupontheexecutionoftradeonbehalfofclients,computedbasedonapre-determinedpercentageofthe contractvalue.

(ii) Margin income comprise margin interest income and rollover fees. Margin interest income is recognised on an effective interest method except where such margin account is considered impaired in accordance with Schedule 7A of the Rules of Bursa Malaysia, in which case recognition of such interest is suspended. Subsequent to suspension, interest is recognised upon receipt until all arrears have been paid. Rollover fees are recognised on an accrual basis. Rollover fees from impaired margin accounts will be suspended until the accounts are reclassifiedasperforming.

(iii) Gainsorlossesondisposalofinvestmentsarerecogniseduponconfirmationoftransactionsbythestockbrokers.

(iv) Unittrustandfundmanagementfeesarerecognisedonanaccrualbasis.




(r) Revenue and income recognition (continued)

(v) Underwriting,advisory,arrangementandplacementfeesarerecognisedasandwhenservicesareperformed.

(vi) OtherrevenueearnedbytheGrouparerecognisedonthefollowingbases:

Dividendincome -whentherighttoreceivepaymentisestablished.

Managementfeeandrentalincome -accrualbasisbyreferencetotheagreementsentered.

Otherinterestincome -on an accrual basis using the effective interest method unless collectibility is in doubt, in whichcasetheyarerecognisedonreceiptbasis.

(s) Foreign currencies

(i) Functional and presentation currency

The individual financialstatementsofeachentity intheGrouparemeasuredusingthecurrencyoftheprimaryeconomicenvironment in which the entity operates (“the functional currency”).The financial statements are presented in Ringgit Malaysia (RM), which is also the Company’sfunctionalcurrency.Allvaluesareroundedtothenearestthousand(RM’000)exceptwhenotherwiseindicated.

(ii) Foreign currency transactions

Transactions in foreign currencies are measured in the respective functional currencies of the Company and its subsidiaries and are recordedoninitialrecognitioninthefunctionalcurrenciesatexchangeratesapproximatingthoserulingatthetransactiondates.Monetary assetsand liabilitiesdenominated in foreigncurrenciesare translatedat therateofexchangerulingat the reportingdate.Non-monetary itemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedusingtheexchangeratesasatthedatesofthe initialtransactions.Non-monetaryitemsdenominatedinforeigncurrenciesmeasuredatfairvaluearetranslatedusingtheexchangerates atthedatewhenthefairvaluewasdetermined.

Exchangedifferencesarisingonthesettlementofmonetaryitemsorontranslatingmonetaryitemsatthereportingdatearerecognisedin profitorlossexceptforexchangedifferencesarisingonmonetaryitemsthatformpartoftheGroup’snetinvestmentinforeignoperations, which are recognised initially in other comprehensive income and accumulated under foreign currency translation reserve in equity.The foreigncurrencytranslationreserveisreclassifiedfromequitytoprofitorlossoftheGroupondisposaloftheforeignoperation.

Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the period exceptforthedifferencesarisingonthetranslationofnon-monetary itemsinrespectofwhichgainsandlossesarerecogniseddirectly in equity.Exchangedifferencesarisingfromsuchnon-monetaryitemsarealsorecogniseddirectlyinequity.

(iii) Foreign operations

The results and financial position of foreign operations that have a functional currency different from the presentation currency of the consolidatedfinancialstatementsaretranslatedintoRMasfollows:

- Assetsandliabilitiespresentedaretranslatedattheclosingrateprevailingatthereportingdate;

- Incomeandexpensesaretranslatedataverageexchangeratesfortheyear,whichapproximatestheexchangeratesatthedatesofthe transactions;and

- Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreservewithinequity.




(t) Income tax

(i) Current tax

Currenttaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxrates andtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenactedbythereportingdate.

Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss, either in othercomprehensiveincomeordirectlyinequity.

(ii) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilitiesandtheircarryingamountsforfinancialreportingpurposes.

Deferredtaxliabilitiesarerecognisedforalltemporarydifferences,except:

- where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a businesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

- inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandinterestsinjointventures,where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverseintheforeseeablefuture.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardofunusedtaxcreditsandunusedtaxlosses,tothe extentthatit isprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardof unusedtaxcreditsandunusedtaxlossescanbeutilisedexcept:

- wherethedeferredtaxassetrelatingtothedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityina transactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofit orloss;and

- in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable futureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethat sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferredtaxassetstobeutilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liabilityissettled,basedontaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedatthereportingdate.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising from a businesscombinationisadjustedagainstgoodwillonacquisition.

Deferredtaxassetsanddeferredtaxliabilitiesareoffset, ifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttax liabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.




(u) Share capital and share issuance expenses

An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all of itsliabilities.Ordinarysharesareequityinstruments.

Ordinarysharesarerecordedattheproceedsreceived,netofdirectlyattributableincrementaltransactioncosts.Ordinarysharesareclassifiedasequity.Dividendsonordinarysharesarerecognisedinequityintheperiodinwhichtheyaredeclared.

(v) Treasury shares

Treasurysharesaresharesrepurchasedandaccountedforusingthetreasurystockmethod.Thetreasurysharesaremeasuredandcarriedatthecostofpurchasewhichcomprisetheamountoftheconsiderationpaidanddirectattributablecosts.

The carrying amount of the treasury shares is offset against equity. The excess of the carrying amount over the share premium account isconsideredasareductionofanyotherreserves.

Thetreasurysharescaneitherbedistributedassharedividendsorreissuedbyresaleintheopenmarket.Wheretreasurysharesaredistributedassharesdividends,thecostofthetreasurysharesisaccountedforasareductionofthesharepremiumand/ordistributablereservesinaccordancewithSection67A(3D)of theCompaniesAct,1965.Wheretreasurysharesareresold intheopenmarket,nogainor loss is recognisedandthedifferencesbetweenthesalesconsiderationsandthecarryingamountofthetreasurysharesisrecordedasamovementinequity.

CancellationoftreasurysharesisdealtwithinaccordancewithSection67AoftheCompaniesAct,1965.Theissuedandpaid-upsharecapitaloftheCompanyisreducedbythesharescancelledandthesameamountofwhichistransferredtotheCapitalRedemptionReserve.

(w) Significant accounting judgments and estimates

ThepreparationoftheGroup’sandtheCompany’sfinancialstatementsrequiresmanagementtomakejudgments,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andthedisclosureofcontingent liabilitiesatthereportingdate.However,uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountoftheassetorliabilityaffectedinthefuture.

IntheprocessofapplyingtheGroup’sandtheCompany’saccountingpolicies,managementhasmadethefollowingjudgments,apartfromthoseinvolvingestimations,whichhavethemostsignificanteffectontheamountsrecognisedinthefinancialstatements:

(i) Impairment of goodwill and other intangible assets

TheGroupdetermineswhethergoodwillandotherintangibleassetsareimpairedatleastonanannualbasis.Thisrequiresanestimationof the value-in-use of the CGU to which goodwill and other intangible assets are allocated. Estimating a value-in-use amount requires managementtomakeanestimateoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinorderto calculatethepresentvalueofthosecashflows.




(w) Significant accounting judgments and estimates (continued)

(ii) Classification of investments

TheGroupclassifiesandaccountsforitssecuritiesportfolioasfollows:

- SecuritiesHFT,tobestatedatfairvaluewithgainorlossrecognisedinprofitorloss.

- SecuritiesAFS,tobestatedatfairvalueorcost(wherefairvaluecannotbedeterminedwithreasonablecertainty) lessanyimpairment loss.Fairvaluegainsorlossesarerecognisedinequityandimpairmentlossesarerecognisedinprofitorloss.

- SecuritiesHTM,tobestatedatamortisedcost,lessanyimpairmentlosses.Amortisationandimpairmentlossesarerecognisedinprofitor loss.

(iii) Deferred tax assets

Deferredtaxassetsarerecognisedforallunusedtaxlossesandunabsorbedcapitalallowancestotheextentthatitisprobablethattaxable profitwillbeavailableintherespectiveentitywithintheGroupagainstwhichthelossesandcapitalallowancescanbeutilised.Significant management judgment, which will be reviewed periodically, is required to determine the amount of deferred tax assets that can be recognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.

(iv) Provision for ESOS-related costs

TheGroupandtheCompanymadecertainprovisionsforESOS-relatedcostswhicharecalculatedusingabinomialmodel.Thefairvalueof equity-settled share options granted is estimated as at the date of grant using the binomial model, taking into account the terms and conditionsuponwhichtheoptionsweregranted.Thefollowingtableliststheassumptioninputstothemodelused:

<--------------------------------------------- As at ---------------------------------------------> 6 January 24 August 22 August 7 April 25 January 2012 2009 2009 2009 2009

Shareprice(RM) 0.785 0.663 0.525 0.670 0.815

Exerciseprice(RM) 1.00 1.00 1.00 1.00 1.00

Expectedvolatility(%) 37.26 37.89 38.82 40.00 32.08

Riskfreeinterestrate(%) 3.20 3.76 3.75 3.67 3.50

Dividendpayout(RM) 0.00 0.00 0.00 0.00 0.02

Averagedividendyield(%) 0.00 0.00 0.00 0.00 1.50

Historicaldividendyield(%) 2.00 2.00 1.00 1.00 1.00

Expectedfuturedividendyield(%) 0.00 0.00 0.00 0.00 2.00

Actualvolatilityinthefuturemaydifferfromtheexpectedvolatility,nonethelesstheexpectedvolatilityreflectstheGroup’sbestestimateof futurevolatilityovertheremainingoptionperiod.




(x) Segment reporting

For management purposes, the Group is organised into operating segments based on their products and services which are independentlymanagedby the respective segmentmanagers responsible for theperformanceof the respectivesegmentsunder theircharge.Thesegmentmanagers report directly to the management of the Company who regularly review the segment results in order to allocate resources to thesegmentsandtoassessthesegmentperformance.AdditionaldisclosuresoneachofthesesegmentsareshowninNote40,includingthefactorsusedtoidentifythereportablesegmentsandthemeasurementbasisofsegmentinformation.

3. CASH AND SHORT-TERM FUNDS Group 31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

Cashandbalanceswithbanksandotherfinancialinstitutions 12,762 69,108 72,709

Moneyatcallanddepositsplacementsmaturingwithinonemonth 60,706 182,912 172,446

73,468 252,020 245,155

Company 31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

Cashandbalanceswithbanksandotherfinancialinstitutions 3,787 195 1,181

Moneyatcallanddepositsplacementsmaturingwithinonemonth 50,530 9,848 5,302

54,317 10,043 6,483

4. DEPOSITS WITH FINANCIAL INSTITUTIONS Group 31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

Licensedbanks - 20,631 1,489

Licensedinvestmentbanks - - 20,000

- 20,631 21,489



5. SECURITIES HFT

Group 31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

At fair value

MalaysianGovernmentSecurities - 60,708 -

Bankers’acceptances - 194,977 304,060

BankNegaraMalaysiaNotes - 93,225 49,758

Quotedshares 24,921 2,001 -

UnquotedPrivateDebtSecurities - 10,074 -

24,921 360,985 353,818

6. SECURITIES AFS Group 31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

At fair value, or at cost for certain unquoted securities

MalaysianGovernmentSecurities - 254,019 70,973

MalaysianGovernmentInvestmentIssuance - 89,122 -

Cagamasbonds - 40,278 60,014

BankNegaraMalaysiaNotes - - 149,498

Quotedshares 69,600 147,398 46,247

Unquotedsecurities

-Privatedebtsecurities 48,070 130,027 195,251

-Shares - 2,200 2,200

Unittrustfunds 579,986 15,042 -

697,656 678,086 524,183

Less:Impairmentlossonsecurities - (3,053) (4,704)

697,656 675,033 519,479



6. SECURITIES AFS (continued)


At fair value

Quotedshares 69,600 - -

Unquotedsecurities

-Privatedebtsecurities 48,070 - -

Unittrustfunds 579,986 - -

697,656 - -

IncludedinsecuritiesAFSoftheGroupandoftheCompanyare120,000,000K&NKenangaHoldingsBerhad(“KNKH”)ordinarysharesofRM1.00eachand47,750,000redeemablenon-convertibleunsecuredloanstocks(“RULS”)issuedbyKNKHtobedistributedtoshareholdersaspartoftheCompany’scapitalrepaymentexercise.Thus, fairvaluechangesandincomeor lossarisingtherefromincludingdividendsandcouponaredirectlyattributabletoshareholders.At31January2013,fairvaluelossonKNKHsharesandcouponfromRULSofRM600,000andRM320,000respectivelyareincludedinotherreceivables(Note11).

ThebalanceofsecuritiesthatwerereclassifiedoutfromHFTtoAFSinapreviousyear:


At fair value

Carryingvalueasatbeginningoffinancialyear 3,045 3,926 49,282

Disposalofsecurities (3,045) - (47,215)

Lossonrevaluation

-recognisedinAFSrevaluationreserves - (881) (1,082)

Deferredtaxunder-recognised - - 2,941

Carryingvalueasatendoffinancialyear - 3,045 3,926



7. SECURITIES HTM


At amortised cost

RULS 47,750 - -

Negotiableinstrumentsofdeposit - 200,000 70,000

47,750 200,000 70,000


At amortised cost

RULS 47,750 - -

At31January2013,currentmarketvalueofsecuritiesHTMisequivalenttotheircarryingamount.

8. (a) DERIVATIVE FINANCIAL ASSETS


Equity related contracts - Options

-Notionalamount 26,123 78,732 55,244

-Fairvalue 1,203 58 1,693

Embedded derivatives

-Notionalamount - 124,075 147,075

-Fairvalue - 6,630 7,859

Totalfairvalueofderivativeassets 1,203 6,688 9,552



8. (b) DERIVATIVE FINANCIAL LIABILITIES


Foreign exchange related contracts

-Notionalamount - 2,140 -

-Fairvalue/totalfairvalueofderivativeliabilities - 57 -

9. LOANS, ADVANCES AND FINANCING Group 31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

Sharemarginfinancing - 360,591 319,135

Termloans 4,242 189,649 276,004

Revolvingcredit - 8,706 5,882

Bridgingloans - - 59,035

Grossloans,advancesandfinancing 4,242 558,946 660,056

Less:Collectiveassessmentallowance

-Continuingoperations (140) - -

-Discontinuedoperations - (2,376) (1,705)

Totalnetloans,advancesandfinancing 4,102 556,570 658,351

Analysis of gross loans, advances and financing

(i) By economic purpose

Purchaseofsecurities - 404,530 473,531

Workingcapital - 79,367 111,469

Others 4,242 75,049 75,056




9. LOANS, ADVANCES AND FINANCING (continued)

Group 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

(ii) By interest rate sensitivity

Fixedrate

-Sharemarginfinancing,termloans,revolvingcreditandbridgingloans 4,242 558,946 660,056


(iii) By type of customer

Domesticbusinessenterprises 4,242 417,999 377,112

Individuals - 122,275 240,128

Domesticnon-bankfinancialinstitutions - 18,672 42,816


(iv) Movements in allowance for losses on loans, advances and financing

Group 31 January 31 January 2013 2012 RM’000 RM’000

Collective assessment allowance

Balanceatbeginningoffinancialyear

-aspreviouslyreported 8,704 10,176

-effectofchangeinaccountingpolicy(Note2(b)(i)) (6,328) (8,471)

2,376 1,705

Allowancemadeduringtheyear

-Continuingoperations(Note31) 140 -

-Discontinuedoperations(Note33) 3,728 671

Disposalofsubsidiaries(Note33) (6,104) -

Balanceatendoffinancialyear 140 2,376

As%ofgrossloans,advancesandfinancinglessindividualassessmentallowance 3.3% 0.4%



9. LOANS, ADVANCES AND FINANCING (continued)

(iv) Movements in impaired loans, advances and financing (continued)

Individual assessment allowance

Asat31January2013/2012,thereisnoindividualassessmentallowancemadeasthereisnoimpairedloanduringandattheendofthecurrent andpreviousyears.

10. TRADE RECEIVABLES Group 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Amountowingbyclients - 165,279 217,143

Amountowingbybrokers - 196,574 265,989

- 361,853 483,132

Less: Impairmentallowanceforbadanddoubtfulreceivables

Individualassessmentallowance - (1,044) (1,010)

- 360,809 482,122

Amountowingbytrustees 7,849 2,691 3,196

7,849 363,500 485,318

Thetradesettlementfortheamountsowingbyclientsandbrokersis3marketdaysaccordingtotheFixedDeliveryandSettlementSystem(“FDSS”)tradingrulesofBursaMalaysia.

Movementsintheallowanceforimpairedaccountsareasfollows:


(a) Collectiveassessmentallowance:

Balanceatbeginningoffinancialyear - -

Allowancewrittenbackduringtheyear - -

Balanceatendoffinancialyear - -



10. TRADE RECEIVABLES (continued)

Movementsintheallowanceforimpairedaccountsareasfollows(continued):


(b) Individualassessmentallowance:

Balanceatbeginningoffinancialyear 1,044 1,010

Allowancemadeduringtheyear(includinginterest-in-suspense) - 34

Disposalofsubsidiaries(Note33) (1,044) -

Balanceatendoffinancialyear - 1,044

TheclassificationofimpairedaccountsinaccordancewithRule1104.1,Schedule7AoftheRulesofBursaMalaysiaisasfollows:


RM’000 RM’000 RM’000

Impairedaccounts,classifiedasdoubtful - 287 133

Impairedaccounts,classifiedasbad - 4,371 3,282

Totalimpairedaccounts - 4,658 3,415



11. OTHER ASSETS


RM’000 RM’000 RM’000

Interestreceivable 331 7,653 3,813

Deposits 416 6,410 5,066

Taxrecoverable 1,654 1,448 5,636

Otherreceivableandprepayments 1,456 16,208 9,696

3,857 31,719 24,211

Less:Individualassessmentallowance - (2,276) (2,451)

3,857 29,443 21,760

Company 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Interestreceivable 329 14 -

Deposits 8 8 8

Taxrecoverable 1,102 1,086 1,768

Otherreceivableandprepayments 632 17,968 37,886

2,071 19,076 39,662

Included in other receivables and prepayments of the Group and of the Company is unrealised revaluation loss on KNKH shares net of accrual ofcoupononRULSissuedbyKNKHofRM280,000whichisdirectlyattributabletoshareholders.TheKNKHsharesandtheRULSwerepartofthesale consideration for the disposal of subsidiaries referred in Note 33, and which were held in trust by the Company as part of the Company’s capital repaymentexercisereferredtoinNote42.



12. STATUTORY DEPOSIT WITH BANK NEGARA MALAYSIA

Group

Thenon-interestbearingstatutorydepositwasmaintainedbytheinvestmentbankingsubsidiarywithBNMincompliancewithSection37(1)(c)of the Central Bank of Malaysia Act, 1958 (revised 1994), the amount was determined as a set percentage of total eligible liabilities. Following the completionofdisposalofECMLibraInvestmentBankBerhad,theGroupisnolongerrequiredtomaintainastatutorydepositwithBNM.

13. INVESTMENT IN SUBSIDIARY COMPANIES Company 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Unquotedsharesinsubsidiaries,atcost 887,921 887,921 887,921

Less:

Subsidiariesdisposedoffduringtheyear(Note33) (513,595) - -

Impairmentloss (226,530) - -

(740,125) - -

Add/(less)shareoptionsmovements:

Balanceatbeginningoffinancialyear 439 843 1,163

Vestedduringtheyear - 186 128

Lapsedduringtheyear (387) (590) (448)

Balanceatendoffinancialyear 52 439 843

147,848 888,360 888,764

Thesubsidiarycompanies,allincorporatedinMalaysiaexceptasotherwiseindicated,areasfollows:

Effective Percentage of Ownership Name of Company 2013 2012 Principal Activities

% %

ECMLibraInvestmentBankBerhad - 100 Investmentbanking

anditssubsidiaries(disposedoff

duringtheyear,seeNote33):

- ECMLNominees(Tempatan)Sdn.Bhd. - 100 Provisionofnomineeservicesforlocalclients



13. INVESTMENT IN SUBSIDIARY COMPANIES (continued)

Effective Percentage of Ownership Name of Company 2013 2012 Principal Activities

% %

- ECMLNominees(Asing)Sdn.Bhd. - 100 Provisionofnomineeservicesforforeignclients

- AvenueKestrelSdn.Bhd. - 100 Dormant

LibraInvestBerhadanditssubsidiary: 100 100 Provisionofunittrustandasset

managementservices

-AvenueAssetManagementServices(Labuan)Ltd. 100 100 Provisionofportfoliomanagementservices

AvenueServicesSdn.Bhd. 100 100 Inmember’svoluntaryliquidation

ECMLibraHoldingsLimitedanditssubsidiaries: 100 100 Investmentholdingandprovision

ofadvisoryservices

- ECMLibraInvestmentBankLimitedand 100 100 ProvisionofLabuaninvestmentbankingand

itssubsidiary: relatedfinancialservices

-ECMLibraInvestmentsLimited 100 100 Investmentholdingandprovision

(IncorporatedinBritishVirginIslands) offinancialservices

ECMLibraCapitalSdn.Bhd. 100 100 Provisionofinvestmentresearchservices

ECMLibraPartnersSdn.Bhd. 100 100 Provisionofcreditservices

ECMLibraCapitalMarketsSdn.Bhd. 100 100 Dormant

AvenueCapitalResourcesBerhadanditssubsidiary: 100 100 Investmentholdingandprovisionof

managementservices

-UltimateAcresSdn.Bhd. - 100 Thecompanywasdissolvedduringtheyear

ACRBCapitalSdn.Bhd. 100 100 Inmember’svoluntaryliquidation

ECMLibraSecuritiesSdn.Bhd.anditssubsidiaries: 100 100 Dormant

-ECMLibraSecuritiesNominees(Tempatan)Sdn.Bhd. 100 100 Dormant

-ECMLibraSecuritiesNominees(Asing)Sdn.Bhd. 100 100 Dormant

-ECMLibraSecuritiesNomineesSdn.Bhd. - 100 Thecompanywasdissolvedduringtheyear

-ECMLibraSecuritiesPortfolioManagementSdn.Bhd. - 100 Thecompanywasdissolvedduringtheyear



14. INVESTMENT IN AN ASSOCIATED COMPANY


RM’000 RM’000 RM’000

Unquotedshares,outsideMalaysia -* - -

Advances 7,200 - -

7,200 - -

Quotedshares,outsideMalaysia 43,544 43,544 43,544

Shareinpost-acquisitionresults 9,002 599 380

52,546 44,143 43,924

Less:Impairmentloss (24,167) (24,167) (24,167)

28,379 19,976 19,757

Totalinvestmentinassociatedcompanies 35,579 19,976 19,757

Quotedshares,outsideMalaysia

Atmarketvalue 19,987 14,669 13,047

Atfairvalue 29,421 20,163 19,743


RM’000 RM’000 RM’000

Unquotedshares,outsideMalaysia -* - -

Advances 7,200 - -

7,200 - -

*DenotesRM9.

The carrying value of the Group’s quoted investment in associated companies exceeded the market value by approximately RM8,392,000 (2012:RM5,307,000 and 2011: RM6,710,000). Based on the directors’ valuation, the carrying value of the Group’s investment in associated companies issupportedbyitsrecoverableamount.



14. INVESTMENT IN AN ASSOCIATED COMPANY (continued)

Detailsoftheassociatedcompaniesareasfollows: Effective Percentage of

Ownership Name of Companies Principal Activities Year end 2013 2012 % %

PositiveCarryLimited(incorporatedinBritishVirginIslands) Investmentholding 31December 30 -

ISRCapitalLimited Investmentholding 31December 24 24 (formerlyknownasAsiasonsWFGFinancialLtd.)

(IncorporatedinSingapore)

Thefollowingamountsrepresenttheassets,liabilities,revenueandexpensesofISRCapitalLimited(formerlyknownasAsiasonsWFGFinancialLtd.),theassociatedcompanyoftheGroupasat31December2012andforthefinancialyear: Group

31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Property,plantandequipment 265 502 336

Financialassetsatfairvaluethroughprofitorloss - 16,079 -

SecuritiesAFS 19,328 9,958 11,925

Currentassets 106,580 61,735 71,454

Currentliabilities (5,339) (4,526) (2,572)

Longtermliabilities (108) (1,010) (129)

Netassets 120,726 82,738 81,014

Revenue 42,010 4,551 6,100

Expenses (6,026) (3,114) (4,631)

Profitbeforetaxation 35,984 1,437 1,469

Incometaxexpense 1,116 (828) (302)

Profitfromcontinuingoperations 37,100 609 1,167

Lossfromdiscontinuedoperations,netoftax (2,329) - -

Profitfortheyear 34,771 609 1,167



15. AMOUNT OWING BY/(TO) SUBSIDIARY COMPANIES


RM’000 RM’000 RM’000

Amountowingbysubsidiarycompanies 30,263 892 659

Amountowingtosubsidiarycompanies (86,227) (79,346) (79,850)

Theamountsowingby/(to)subsidiarycompaniesmainlyrepresentpaymentsmadeonbehalfandunsecuredadvances,whichareinterestfreeand repayableondemand.

16. DEFERRED TAX ASSETS/(LIABILITIES) Group 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Atbeginningofthefinancialyear (7,306) 10,729 27,739

Recognisedinprofitorloss(Note32)

-Relatingtooriginationandreversaloftemporarydifferences

-Continuingoperations 307 (63) 14

-Discontinuedoperations (2,538) (10,218) (21,473)

-Over/(under)provisionoftaxinprioryears

-Continuingoperations 4 185 -

-Discontinuedoperations 159 (1,335) 601

(2,068) (11,431) (20,858)

Recognisedinequity 7,399 (6,604) 3,848

Discontinuedoperations 3,168 - -

Othermovement (745) - -

Atendofthefinancialyear 448 (7,306) 10,729

Presentedafterappropriateoffsettingasfollows:

Deferredtaxassets 705 735 11,687

Deferredtaxliabilities (257) (8,041) (958)

448 (7,306) 10,729


16. DEFERRED TAX ASSETS/(LIABILITIES) (continued)


RM’000 RM’000 RM’000

Atbeginningofthefinancialyear (571) (914) 69

Recognisedinprofitorloss(Note32)

-Relatingtooriginationandreversaloftemporarydifferences 650 342 (982)

-Over/(under)provisionoftaxinprioryears 3 1 (1)

653 343 (983)

Recognisedinequity 623 - -

Atendofthefinancialyear 705 (571) (914)

Presentedafterappropriateoffsettingasfollows:

Deferredtaxassets 705 - -

Deferredtaxliabilities - (571) (914)

705 (571) (914)

AllmovementsindeferredtaxliabilitiesandassetshavebeenrecognisedinprofitorlossexceptforthoserelatingtoAFSrevaluationreserve,where themovementisrecognisedinothercomprehensiveincome.Thecomponentsofdeferredtaxliabilitiesandassetsasattheendofthefinancialyear areasfollows:

Unused AFS Other tax revaluation temporary Group losses reserve Provisions difference Total RM’000 RM’000 RM’000 RM’000 RM’000

31 January 2013

Atbeginningofthefinancialyear - (6,682) 8,915 (9,539) (7,306)

Recognisedinprofitorloss - - (196) 507 311

Recognisedinequity - 623 - - 623

Discontinuedoperations - 6,682 (8,639) 8,777 6,820

Atendofthefinancialyear - 623 80 (255) 448





Unused AFS Other tax revaluation temporary Group losses reserve Provisions difference Total RM’000 RM’000 RM’000 RM’000 RM’000

31 January 2012

Atbeginningofthefinancialyear 5,279 (78) 8,911 (3,383) 10,729

Recognisedinprofitorloss (5,279) - 4 (6,156) (11,431)

Recognisedinequity - (6,604) - - (6,604)

Atendofthefinancialyear - (6,682) 8,915 (9,539) (7,306)

1 February 2011

Atbeginningofthefinancialyear 29,185 (3,926) 3,898 (1,418) 27,739

Recognisedinprofitorloss (23,906) - 5,013 (1,965) (20,858)

Recognisedinequity - 3,848 - - 3,848

Atendofthefinancialyear 5,279 (78) 8,911 (3,383) 10,729

Company

31 January 2013

Atbeginningofthefinancialyear - - 81 (652) (571)

Recognisedinprofitorloss - - (1) 654 653

Recognisedinequity - 623 - - 623

Atendofthefinancialyear - 623 80 2 705

31 January 2012

Atbeginningofthefinancialyear 17 - 78 (1,009) (914)

Recognisedinprofitorloss (17) - 3 357 343

Atendofthefinancialyear - - 81 (652) (571)




Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitems: Group 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Unusedtaxlosses 33,240 33,240 33,245

Unutilisedcapitalallowances 188 619 508

33,428 33,859 33,753

There is no evidence to support that sufficient taxable profit will be available against which the deductible temporary differences of certain subsidiariescanbeutilised.

TheunutilisedtaxlossesandunabsorbedcapitalallowancesoftheGroupareavailableindefinitelyforoffsettingagainstfuturetaxableprofitsofthe respective entities within the Group, subject to no substantial change in shareholdings of those entities under the Income Tax Act, 1967 and guidelinesissuedbythetaxauthority.

17. PROPERTY, PLANT AND EQUIPMENT Furniture and Freehold fittings and Work-In- land and office Motor Group Progress building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1February2012 586 23,817 20,284 25,292 4,732 74,711

Additions 612 4,029 1,640 2,021 299 8,601

Transfer (1,001) 933 68 - - -

Write-offs:

-Continuingoperations(Note29) - - - (7) - (7)

-Discontinuedoperations (11) (184) (6,663) (130) (6,988)

Disposals - - - - (748) (748)

Discontinuedoperations - (3,213) (19,902) (17,685) (2,248) (43,048)

At 31 January 2013 197 25,555 1,906 2,958 1,905 32,521



17. PROPERTY, PLANT AND EQUIPMENT (continued)

Furniture and Freehold fittings and Work-In- land and office Motor Group Progress building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Accumulated depreciation

At1February2012 - 2,094 6,633 18,626 2,442 29,795

Chargeduringtheyear:

-Continuingoperations(Note29) - 575 78 167 213 1,033

-Discontinuedoperations(Note33(c)) 1,307 734 2,383 403 4,827

Write-offs:

-Continuingoperations(Note29) - - - (4) - (4)

-Discontinuedoperations (1) (99) (5,702) (130) (5,932)

Disposals - - - - (449) (449)

Discontinuedoperations - (1,614) (6,842) (13,283) (1,381) (23,120)

At 31 January 2013 - 2,361 504 2,187 1,098 6,150

Net carrying amount

At 31 January 2013 197 23,194 1,402 771 807 26,371

Cost

At1February2011 4,359 21,977 18,148 28,158 3,896 76,538

Additions 586 2,904 6,914 2,557 1,637 14,598

Transfer (4,359) 6,968 (2,609) - - -

Write-offs - - (2,121) (4,895) - (7,016)

Disposals - (8,032) (48) (528) (801) (9,409)

At31January2012 586 23,817 20,284 25,292 4,732 74,711




Furniture and Freehold fittings and Work-In- land and office Motor Group Progress building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000


At1February2011 - 3,427 6,995 21,308 2,357 34,087

Chargeduringtheyear:

-Continuingoperations(Note29) - 335 83 96 321 835

-Discontinuedoperations(Note33(c)) - 103 1,714 2,635 406 4,858

Write-offs - - (2,111) (4,885) - (6,996)

Disposals - (1,771) (48) (528) (642) (2,989)

At31January2012 - 2,094 6,633 18,626 2,442 29,795

Net carrying amount

At31January2012 586 21,723 13,651 6,666 2,290 44,916

Cost

At1February2010 339 21,977 23,636 23,766 4,380 74,098

Additions 4,020 - 8,711 5,790 - 18,521

Write-offs - - (14,091) (1,077) (4) (15,172)

Disposals - - (108) (321) (480) (909)

At31January2011 4,359 21,977 18,148 28,158 3,896 76,538


At1February2010 - 3,023 17,802 20,663 1,919 43,407

Chargeduringtheyear(Note29) - 404 1,553 2,037 643 4,637

Write-offs - - (12,252) (1,071) (4) (13,327)

Disposals - - (108) (321) (201) (630)

At31January2011 - 3,427 6,995 21,308 2,357 34,087

Net carrying amount

At1February2011 4,359 18,550 11,153 6,850 1,539 42,451




Furniture and Freehold fittings and Work-In- land and office Motor Company Progress building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1February2012 586 27,389 3 28 1,591 29,597

Additions 612 275 129 - 299 1,315

Disposal - - - (7) - (7)

Transfer (1,001) 933 68 - - -

At 31 January 2013 197 28,597 200 21 1,890 30,905


At1February2012 - 1,526 1 9 874 2,410

Chargeduringtheyear(Note29) - 588 8 6 210 812

Disposal - - - (4) - (4)

At 31 January 2013 - 2,114 9 11 1,084 3,218

Net carrying amount

At 31 January 2013 197 26,483 191 10 806 27,687

Cost

At1February2011 4,359 17,517 2 20 1,592 23,490

Additions 586 2,904 1 8 795 4,294

Disposal - - - - (796) (796)

Transferfromsubsidiary - 2,609 - - - 2,609

Transfer (4,359) 4,359 - - - -

At31January2012 586 27,389 3 28 1,591 29,597




Furniture and Freehold fittings and Work-In- land and office Motor Company Progress building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000


At1February2011 - 1,110 - 5 1,194 2,309

Chargeduringtheyear(Note29) - 416 1 4 318 739

Disposal - - - - (638) (638)

At31January2012 - 1,526 1 9 874 2,410

Net carrying amount

At31January2012 586 25,863 2 19 717 27,187

Cost

At1February2010 339 17,517 2 17 1,592 19,467

Additions 4,020 - 2 3 - 4,025

Write-offs - - (2) - - (2)

At31January2011 4,359 17,517 2 20 1,592 23,490


At1February2010 - 759 - 2 875 1,636

Chargeduringtheyear - 351 - 3 319 673

At31January2011 - 1,110 - 5 1,194 2,309

Net carrying amount

At1February2011 4,359 16,407 2 15 398 21,181



18. INTANGIBLE ASSETS

Merchant bank Group Goodwill licence Total RM’000 RM’000 RM’000

31 January 2013

Cost/Net carrying amount

At1February2012 232,000 52,500 284,500

Disposalofsubsidiaries(Note33) (232,000) (52,500) (284,500)

At 31 January 2013 - - -

31 January 2012

Cost/Net carrying amount

At1February2011/31January2012 232,000 52,500 284,500

The merchant bank licence represents contribution by the investment bank subsidiary to BNM to carry on merchant banking business and is consideredtohaveindefiniteusefullife,whichwasnotamortisedandwasassessedforimpairmentannually.

Upon disposal of the investment bank subsidiary, the merchant bank license has been written off. Goodwill associated with the acquisition of operatingsubsidiariesoftheGroupwasalsowrittenoffduringthefinancialyear.

19. DEPOSITS FROM CUSTOMERS


RM’000 RM’000 RM’000

By type of deposits:

Short-termdeposits - 1,064,920 1,043,290

Negotiableinstrumentsofdeposit - 16,563 3,516

- 1,081,483 1,046,806



19. DEPOSITS FROM CUSTOMERS (continued)


RM’000 RM’000 RM’000

By type of customers:

Governmentandstatutorybodies - 116,300 70,000

Domesticbusinessenterprises - 177,508 173,913

Domesticotherentities - 600 -

Individuals - 26,991 22,133

Non-bankfinancialinstitutions - 760,084 780,760

- 1,081,483 1,046,806

20. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Licensedbanks - 266,409 201,008

Licensedinvestmentbanks - 74,962 -

- 341,371 201,008



21. TRADE PAYABLES


RM’000 RM’000 RM’000

Amountowingtoclients - 102,743 178,563

Amountowingtobrokers - 221,589 248,295

Amountowingtotrustees 7,207 81 1,237

7,207 324,413 428,095

Thetradesettlementfortheamountsowingtoclientsandbrokersis3marketdaysaccordingtotheFDSStradingrulesofBursaMalaysia.

22. OTHER LIABILITIES Group 31 January 31 January 1 February 2013 2012 2011

RM’000 RM’000 RM’000

Interestpayables - 2,585 4,552

Accrualsanddepositsreceived 1,684 8,968 14,196

Remisiers’anddealers’trustaccounts - 20,710 19,531

Otherpayables 4,315 29,036 35,586

5,999 61,299 73,865


RM’000 RM’000 RM’000

Accrualsanddepositsreceived 403 383 365

Otherpayables 3,824 1,864 -

4,227 2,247 365



23. SHARE CAPITAL

Amount of ordinary shares of RM1 each Amount 31 January 31 January 31 January 31 January Group and Company 2013 2012 2013 2012 units ’000 units ’000 RM’000 RM’000

Authorised:

Atbeginning/endofyear 1,500,000 1,500,000 1,500,000 1,500,000

Issuedandfullypaid-up:

Atbeginningofyear 830,902 830,902 830,902 830,902

TreasurysharescancelledpursuanttoSection67A(Note25) (2,083) - (2,083) -

Atendofyear 828,819 830,902 828,819 830,902

TheCompany’sESOSisgovernedbytheby-lawsapprovedbytheshareholdersatanExtraordinaryGeneralMeetingheldon1December2005.The ESOSwasimplementedon1December2005andwillbeinforceforaperiodoften(10)years.

ThemainfeaturesoftheESOSare,interalia,asfollows:

(i) The eligibility of an employee or director of the Group to participate in the ESOS shall be at the discretion of the Options Committee. The OptionsCommitteemayfromtimetotimeatitsdiscretionselectandidentifysuitableeligibleemployeestobeofferedoptions.Themaximum allowableallotmentsforthedirectorshadbeenapprovedbytheshareholdersoftheCompanyinageneralmeeting.

(ii) TheaggregatenumberofsharestobeissuedundertheESOSshallnotexceed15%ofthetotalissuedandpaid-upordinarysharecapitalofthe Companyforthetimebeing.

(iii) TheESOSshallbeinforceforaperiodof10yearsfrom1December2005.

(iv) Theoptionpriceshallnotbeatadiscountofmorethantenpercent(10%)(orsuchdiscountastherelevantauthoritiesshallpermit)fromthe 5-dayweightedaveragemarketpriceofthesharesoftheCompanyprecedingthedateofofferandshallinnoeventbelessthantheparvalue ofthesharesoftheCompanyofRM1.00.

(v) An option holder may, in a particular year, exercise up to such maximum number of shares in the option certificate as determined by the OptionsCommitteeorasspecifiedintheoptioncertificate.

Asat31January2013,therehasnotbeenissuanceofnewsharesarisingfromtheexerciseofoptionspursuanttotheESOS.


23. SHARE CAPITAL (continued)

AsummaryofthemovementsinthenumberofESOSgrantedtoemployeesanddirectorsoftheGroupareasfollows:

Number of share options 2013 2012 units '000 units ’000

At1February2012/2011 72,668 72,960

Granted - 4,000

Lapsed (12,968) (4,292)

At31January 59,700 72,668

Exercisableasat31January 59,700 70,668

Exerciseprice RM1.00 RM1.00

The aggregate number of options granted to the directors at the beginning of the financial year and which remained outstanding at the end of thefinancialyearwere58,800,000. Inaccordancewiththeby-lawsoftheESOS,theaggregatemaximumallocationofoptionstothedirectorsand seniormanagement is50%.Theactualpercentageofoptionsgrantedtothedirectorsandseniormanagementduringthecommencementof the schemewas47%whilstduringthefinancialyearwas50%.

Therewerenooptionsgrantedtoorexercisedbythenon-executivedirectorsduringthefinancialyear.

24. RESERVES Group 31 January 31 January 1 February Note 2013 2012 2011

RM’000 RM’000 RM’000

Non-distributable:

Mergerreserve (a) - 26,561 26,561

Foreigncurrencytranslationreserve (3,252) (3,293) (3,295)

Equitycompensationreserve (b) 2,761 3,122 3,526

AFSrevaluationreserve (c) (1,868) 20,331 718

Statutoryreserve (d) - 80,787 65,720

Generalreserve 159 159 159

Capitalredemptionreserve 2,083 - -



24. RESERVES (continued)

Group 31 January 31 January 1 February Note 2013 2012 2011

RM’000 RM’000 RM’000

Distributable:

Retainedprofits (e) 81,238 64,053 82,854

81,121 191,720 176,243

Company 31 January 31 January 1 February Note 2013 2012 2011

RM’000 RM’000 RM’000

Non-distributable:

Equitycompensationreserve (b) 2,761 3,122 3,526

AFSrevaluationreserve (c) (1,868) - -

Capitalredemptionreserve 2,083 - -

Distributable:

Retainedprofits (e) 93,248 30,949 49,078

96,224 34,071 52,604

(a) MergerreservearoseupontakingoverofthelistingstatusofasubsidiarycompanywheretheresultsandthefinancialpositionoftheGroup hadbeencombinedunderthemergerprinciplesofaccounting,asdescribedintheaccountingpolicies.

The entire merger reserve was reversed during the financial year upon disposal of ECM Libra Investment Bank Berhad (“ECMLIB”) and its subsidiaries.Theamountwasnettedoffagainstthegoodwillinderivingthegainorlossondisposal(seeNote33(b)).

(b) EquitycompensationreservearosefromthegrantingofshareoptionstodirectorsoftheCompanyandmanagementpersonneloftheGroup.

(c) AFSrevaluationreserverepresentsunrealisedgainsorlossesarisingfromchangesinfairvaluesofsecuritiesclassifiedasAFS.

(d) The statutory reserve was maintained by the investment banking subsidiary, ECMLIB, in compliance with Section 36 of the Banking and FinancialInstitutionsAct,1989andwasnotdistributableascashdividends.UpondisposalofECMLIB(seeNote33),theGroupderecognises allassetsandliabilitiesofthesubsidiary,andthebalanceinstatutoryreservewasreclassifiedtoretainedprofits.



24. RESERVES (continued)

(e) In the past, Malaysian companies adopt the full imputation system. In accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividendswillbeexemptedfromtaxinthehandsoftheshareholders(“singletiersystem”).However,thereisatransitionalperiodofsixyears, expiringon31December2013,toallowcompaniestopayfrankeddividendstotheirshareholdersunderlimitedcircumstances.Companies alsohaveanirrevocableoptiontodisregardtheSection108balanceandopttopaydividendsunderthesingletiersystem.Thechangeinthe taxlegislationalsoprovidesfortheSection108balancetobelocked-inasat31December2007inaccordancewithSection39oftheFinance Act2007.

Asat31January2013,theSection108balanceoftheCompanyisnil.TheCompanymaydistributedividendsoutofitsentireretainedprofits underthesingletiersystem.

25. TREASURY SHARES

Theshareholdersof theCompanyapproved,at theExtraordinaryGeneralMeetingheldon31January2008, theCompanytobuy-back itsownshares of up to 10% of the total issued and paid-up share capital of the Company at any point in time, in accordance with Section 67A of theCompaniesAct,1965.

ThedirectorsoftheCompanywerecommittedtoenhancingthevalueoftheCompanytoitsshareholdersandbelievedthatthesharebuy-backcouldbeappliedinthebestinterestsoftheCompanyanditsshareholders.

Duringtheyear,theCompanycancelledall2,082,862treasurysharesbroughtforwardfromthepreviousfinancialyearwithacarryingamountofRM1,578,943oranaveragepriceofRM0.7581pershare.TheamountofthesharecapitalcancelledwastransferredtocapitalredemptionreserveinaccordancewiththerequirementofSection67AoftheCompaniesAct,1965.

Asat31January2013,theCompanydoesnotholdanytreasuryshares.

26. INTEREST INCOME Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Loansandadvances 175 - - -

Short-termfundsanddepositswithfinancialinstitutions 1,129 1,078 656 406

HTMsecurities 321 - 320 -

Others - 1 - -

1,625 1,079 976 406



27. NON-INTEREST INCOME


Fee income

-Feesonloansandadvances 125 - 125 -

-Portfoliomanagementfees 11,772 10,429 - -

-Otherfeeincome 1,903 1,968 - -

13,800 12,397 125 -

Investment and trading income

NetgainarisingfromsecuritiesHFT

-Unrealisedlossonrevaluation (400) - - -

(400) - - -

NetgainarisingfromsecuritiesAFS

-Netgainondisposal 350 484 181 -

-Grossdividendincome - 20 - -

350 504 181 -

Netgainarisingfromderivatives

-Unrealisedgainonrevaluation 1,204 - - -

1,204 - - -

Grossdividendincome

-Subsidiaries - - - 17,667

Total non-interest income 14,954 12,901 306 17,667



28. OTHER NON-OPERATING INCOME


Rentalincome 1,593 1,358 1,831 1,358

Gainondisposalofproperty,plantandequipment - 91 - 91

Gain/(loss)onforeignexchangetransactions(net) 1 (1) - (2)

Others 34 93 1 -

1,628 1,541 1,832 1,447

29. OPERATING EXPENSES Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Personnel expenses

Salaries,allowanceandbonus 7,443 6,618 316 -

Contributionstodefinedcontributionplan 808 645 43 -

CostarisingfromESOS (149) (4) 26 -

Otherpersonnelcosts 798 651 22 -

8,900 7,910 407 -

Establishment costs

Depreciationofproperty,plantandequipment(Note17) 1,033 835 812 739

Property,plantandequipmentwrittenoff 3 - 3 -

Rentalofpremises 297 291 - 1

Rentalofnetworkandequipment 212 130 6 -

Otherestablishmentcosts 34 19 - -

1,579 1,275 821 740



29. OPERATING EXPENSES (continued)


Marketing and communication expenses

Advertisingexpenses 3 138 2 -

Entertainment 107 130 - -

Othermarketingexpenses 501 444 - -

611 712 2 -

Administrative and general expenses

Auditfees

-statutoryaudit 104 83 54 30

Legalandprofessionalfees 1,160 1,045 947 758

Printingandstationery 42 42 2 -

Insurance,postagesandcourier 83 49 54 31

Electricityandwatercharges 40 28 - -

Telecommunicationexpenses 114 121 - -

Travellingandaccommodation 92 14 65 -

Others 2,865 2,476 2,276 1,655

4,500 3,858 3,398 2,474

Total operating expenses 15,590 13,755 4,628 3,214

Includedintheoperatingexpensesaredirectors’remunerationofRM859,000(2012:RM497,000)andRM779,000(2012:RM375,000)oftheGroupand oftheCompanyrespectively.



30. DIRECTORS' REMUNERATION


Non-executivedirectors:

Fees 622 620 300 300

Otherremuneration 4,732 3,609 4,586 3,435

5,354 4,229 4,886* 3,735*

*Includedinthedirectors’remunerationoftheCompanyisanamountofRM4,107,000(2012:RM3,360,000)paidbyasubsidiary.

Thedirectors’remunerationfromcontinuingoperationsanddiscontinuedoperationsareasfollows: Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Continuingoperations 859 497 779 375

Discontinuedoperations 4,495 3,732 - -

5,354 4,229 779 375

ThetotalremunerationofthedirectorsoftheCompanyforthefinancialyearfallwithinthefollowingbands:

Number of directors 2013 2012 Non-executivedirectors:

BelowRM50,001 - 1

RM50,001toRM100,000 1 -

RM100,001toRM150,000 1 1

RM150,001toRM200,000 3 2

RM200,001-RM1,000,000 - 1

RM1,000,001-RM2,500,000 2 2



31. ALLOWANCE FOR LOSSES ON LOANS, ADVANCES AND FINANCING

Group 2013 2012 RM’000 RM’000

Collectiveassessmentallowance

-Allowancemadeduringthefinancialyear 140 -

32. INCOME TAX EXPENSE Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Incometax:

-Currentyear’sprovision 5,558 2,790 450 1,097

-Underprovisionoftaxinprioryears 504 7,447 108 -

6,062 10,237 558 1,097

Deferredtaxation(Note16):

-Relatingtooriginationandreversaloftemporarydifferences 2,231 10,281 (650) (342)

-(Over)/underprovisionofdeferredtaxinprioryears (163) 1,150 (3) (1)

2,068 11,431 (653) (343)

8,130 21,668 (95) 754

Incometaxexpenseon:

-Continuingoperations 657 797 (95) 754

-Discontinuedoperations(Note33(c)) 7,473 20,871 - -

Totalincometaxexpense 8,130 21,668 (95) 754

IncometaxiscalculatedattheMalaysianstatutorytaxrateof25%(2012:25%)oftheestimatedassessableprofitfortheyear.



32. INCOME TAX EXPENSE (continued)

A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at theeffectiveincometaxrateoftheGroupandoftheCompanyisasfollows:


Profitbeforetaxationfrom:



(34,001) 51,615 83,675 16,306

TaxatMalaysianStatutoryrateof25%(2012:25%)

-Continuingoperations 2,720 496 (379) 4,077


Taxeffectsof:

Non-allowableexpenses

-Continuingoperations 936 810 57,462 445

-Discontinuedoperations 19,095 578 - -

Non-taxableincome

-Continuingoperations (3,102) (560) (78,580) (3,767)

-Discontinuedoperations (640) (661) - -

(Over)/underprovisioninprioryears

-taxexpenses

-Continuingoperations 107 235 108 -

-Discontinuedoperations 397 7,212 - -

-deferredtax

-Continuingoperations (4) (185) (3) (1)

-Discontinuedoperations (159) 1,335 - -

8,130 21,668 (95) 754



33. DISCONTINUED OPERATIONS/DISPOSAL OF SUBSIDIARIES

TheCompanyhadon15June2012,enteredintoaconditionalsharepurchaseagreement(“SPA”)withKenangaInvestmentBankBerhadandK&NKenanga Holdings Berhad (“KNKH”) for the proposed disposal by the Company of the entire equity interest in ECM Libra Investment Bank Berhad(“ECMLIB”)anditssubsidiariesforatotaldisposalconsiderationofRM875,114,000.

AspartoftheSPA,theCompanyshallpurchaseorprocureanymemberof itsGrouptopurchaseaportfolioofsecuritiesfromECMLIBonmutuallyacceptabletermsforcashbywayofasaletobeeffectedontheclosingdateofdisposal.

Thesubsidiarywasnotadiscontinuedoperationsorclassifiedasheldforsaleasat31January2012andthecomparativeconsolidatedprofitorlossandothercomprehensiveincomehavebeenre-presentedtoshowthediscontinuedoperationsseparatelyfromcontinuingoperations.

(a) Loss after tax from discontinued operations RM’000

Lossaftertaxfromdiscontinuedoperationsarisingfrom:

Resultsofdiscontinuedoperations 16,298

Lossondisposalofsubsidiarycompanies(Note33(b)) (68,652)

(52,354)

(b) The effects of the disposal on the Company’s and the Group’s financial statements

The disposal of ECMLIB Group gave rise to a gain of RM85,189,000 at the Company level and a loss of RM68,652,000 at the Group level, respectively.Detailsofthedisposalareasfollows:

RM’000

Cashproceeds 659,614

120,000,000ordinarysharesofRM1.00eachinKNKH 120,000

95,500,000KNKH’sRULSofnominalvalueofRM1.00each 95,500

875,114

RevaluationofKNKHsharesat14December2012 (49,800)

825,314

Less:Costofinvestmentinsubsidiary(Note13) (513,595)

311,719

ReductionincashproceedsforpurchaseofsecuritiesfromECMLIB (117,542)

CarryingamountofsecuritiespurchasedfromECMLIB 117,542

Less:Writedownofsubsidiariestonettangibleassets (226,530)

GainondisposalatCompanylevel 85,189



33. DISCONTINUED OPERATIONS/DISPOSAL OF SUBSIDIARIES (continued)

(b) The effects of the disposal on the Company’s and the Group’s financial statements (continued) RM’000

Gainondisposalbeforewritedownofsubsidiariestonettangibleassets 311,719

Realisationofstatutoryreserve (80,787)

Realisationofregulatoryreserve (4,746)

Postacquisitionreservesrecogniseduptothedateofdisposal (89,399)

136,787

Goodwill,netofmergerreservesofRM26,561,000,writtenoff (205,439)

LossondisposalatGrouplevel (68,652)

(c) Statement of comprehensive income for discontinued operations:

ThefinancialresultsofECMLIBGroupwhichwereincludedintheconsolidatedstatementsofcomprehensiveincomeupto14December2012, thecompletiondateofthedisposal,areasfollows: Group 1.2.2012 to 1.2.2011 to 14.12.2012 31.1.2012 RM’000 RM’000

Revenue 148,830 166,565

Interestincome 68,935 82,071

Interestexpense (41,577) (46,975)

Netinterestincome 27,358 35,096

Non-interestincome 79,895 84,494

Othernon-operatingincome 1,380 3,994

Netincome 108,633 123,584

Operatingexpenses (82,645) (81,427)

Operatingprofit 25,988 42,157




(c) Statement of comprehensive income for discontinued operations (continued): Group 1.2.2012 to 1.2.2011 to 14.12.2012 31.1.2012 RM’000 RM’000

Allowanceforlossesonloans,advancesandfinancing (3,728) (671)

(Allowancefor)/writebackofimpairmentallowanceforbadanddoubtfuldebts (17) 6,493

Writebackofimpairmentloss 1,528 1,651

Profitbeforetax(Note32) 23,771 49,630

Incometaxexpense(Note32) (7,473) (20,871)

Profitfromdiscontinuedoperations 16,298 28,759

Othercomprehensive(loss)/income:

Net(loss)/gainonavailable-for-salefinancialassets (27,372) 26,416

Incometaxrelatingtocomponentsofothercomprehensiveincome(Note32) 6,842 (6,604)

Othercomprehensive(loss)/incomefortheyear,netoftax (20,530) 19,812

Totalcomprehensive(loss)/incomefortheyear (4,232) 48,571

Totalcomprehensive(loss)/incomeattributabletoownersoftheCompany (4,232) 48,571

Other operating expenses

Includedintheincomestatementsofdiscontinuedoperationsarethefollowingitemscredited/(charged): Group 1.2.2012 to 1.2.2011 to 14.12.2012 31.1.2012 RM’000 RM’000

CostarisingfromESOS 212 400

Depreciation(Note17) (4,827) (4,858)

Directors’remuneration (4,577) (3,732)

Dividendincome 2,721 1,981

Gainondisposalofproperty,plantandequipment - 2,399

Interestincome 68,911 82,071

Interestexpense (41,674) (46,975)




(c) Statement of comprehensive income for discontinued operations (continued):

Other operating expenses (continued)

Includedintheincomestatementsofdiscontinuedoperationsarethefollowingitemscredited/(charged)(continued): Group 1.2.2012 to 1.2.2011 to 14.12.2012 31.1.2012 RM’000 RM’000

Merchantbanklicensewrittenoff (52,500) -

Netgainondisposalof:

-securitiesHFT 10,037 12,061

-securitiesAFS 17,091 9,788

-derivatives 3,396 1,938

Netunrealised(loss)/gainonrevaluationof:

-securitiesHFT (1,260) 307

-derivatives (6,250) (1,691)

Allowanceforlossesonloans,advancesandfinancing(Note9(iv)) (3,728) (671)

(Allowancefor)/writebackofbadanddoubtfuldebts (17) 6,493

Writebackofimpairmentoninvestments 1,528 1,651

Property,plantandequipmentwrittenoff (1,056) (20)

Unrealisedgainonforeignexchangetransactions 2,650 3,752

(d) Statement of cash flows for discontinued operations Group 2013 2012 RM’000 RM’000

Cash flows (used in)/generated from disposed subsidiary

Netcash(usedin)/generatedfromoperatingactivities (1,197,447) 250,194

Netcashgeneratedfrom/(usedin)investingactivities 976,432 (167,546)

Netcashusedinfinancingactivities (11,550) (85,027)

Effectoncashflows (232,565) (2,379)




(e) The disposal had the following effects on the financial position of the Group: As at 14 December 2012 RM’000

ASSETS

Cashandshort-termfunds 746,516

Depositsandplacementswithfinancialinstitutions 495

SecuritiesAFS 72,282

SecuritiesHTM 40,000

Derivativefinancialinstruments(asset) 48

Loans,advancesandfinancing 537,507

Tradereceivables 455,075

Otherassets 81,463

StatutorydepositwithBankNegaraMalaysia 24,720

Property,plantandequipment(Note17) 20,227

TOTAL ASSETS OF ECMLIB 1,978,333

LIABILITIES

Depositsfromcustomers 914,440

Depositsandplacementsofbanksandotherfinancialinstitutions 75,000

Tradepayables 297,425

Derivativefinancialinstruments(liabilities) 36

Otherliabilities 52,237

Deferredtaxliabilities 3,168

TOTAL LIABILITIES OF ECMLIB 1,342,306




(e) The disposal had the following effects on the financial position of the Group (continued): As at 14 December 2012 RM’000

NET ASSETS OF ECMLIB 636,027

Merchantbanklicense 52,500

688,527

Considerationreceived 825,314

Goodwill,netofmergerreserveswrittenoff (205,439)

Loss on disposal at Group level (68,652)

Cash portion of consideration 659,614

Less:costofpurchaseofsecuritiesfromECMLIB (117,542)

Netcashproceedsfromdisposal 542,072

CashandcashequivalentsofECMLIB 746,516

DepositsandplacementsofECMLIBwithfinancialinstitutions 495

Net cash outflow from disposal (204,939)

34. EARNINGS PER ORDINARY SHARE

ThebasicanddilutedearningsperordinaryshareiscalculatedbydividingtheGroup’sprofitaftertaxationfromcontinuingoperationsofRM10,223,000(2012:RM1,188,000)and lossaftertaxationfromdiscontinuedoperationsofRM52,354,000(2012:profitofRM28,759,000)bytheweightedaveragenumberofordinarysharesinissueduringtheyearof828,819,091(2012:822,706,000).

Forboththefinancialyearsended31January2013and31January2012,outstandingESOShavebeenexcludedfromthecomputationoffullydilutedearningsperRM1.00ordinarysharesastheirconversiontoordinaryshareswouldbeanti-dilutive.



35. DIVIDENDS

Group 2013 2012 RM’000 RM’000

Final dividend for 2012:

-Singletierdividendof2.4sen,on828,819,091ordinaryshares

(excludingtreasurysharesof2,082,862ordinaryshares)paidon14August2012 19,892 -

Final dividend for 2011:

-Singletierdividendof1.89sen,on804,452,937ordinaryshares

(excludingtreasurysharesof26,449,016ordinaryshares)paidon7June2011 - 15,204

19,892 15,204

Thedirectorsdonotproposeanyfinaldividendforthecurrentfinancialyearended31January2013.

36. CAPITAL ADEQUACY AND CAPITAL MANAGEMENT

(a) AsdisclosedinNote33above,theCompanydisposedoffECMLIBGroupduringthefinancialyear.UpondisposalofECMLIBGroup,theCompany is no longer a financial holding company and therefore, the Group does not fall within the purview of Bank Negara Malaysia (“BNM”). The followingisthecapitaladequacyratioofECMLIB,hereafterreferredtoas“theBank”forthepreviousfinancialyearended31January2012.

Thecapitalbaseandrisk-weightedassets(“RWA”)thatrelatetothepreviousfinancialyearassetoutbelowweredisclosedinaccordancewith theRisk-WeightedCapitalAdequacyFramework(BaselII)issuedbyBNM.

2012 %

Before deducting proposed dividend

Corecapitalratio 50.45

Risk-weightedcapitalratio 51.11

After deducting proposed dividend

Corecapitalratio 50.45

Risk-weightedcapitalratio 51.11



36. CAPITAL ADEQUACY AND CAPITAL MANAGEMENT (continued)

Capital management process

The Bank had in place an Internal Capital Adequacy Assessment Process (“ICAAP”) which was largely conceptualised from the BNM’s Concept Paper on ICAAP (Basel II - Pillar 2). The computation of the internal risk-weighted capital ratio requirement was derived from using a simple aggregation approach and stress testing methodologies that was in line with the nature and complexity of the Bank’s business operations.TheapplicationofICAAPwasbasedonstresstestmethodologiesunderpinnedbythefollowingstructuredapproach:

(i) assessthecapitalbufferrequirementsoverashort-termperiodunderastressedevent;

(ii) addressmajorrisksnotaddressedunderPillar1;

(iii) assessthecapitalbufferrequirementsbasedonthebusinessactivitiesgeneratedundertheBank’sBusinessPlans,usuallyoveraperiodof1 to3years.

(b) ThecomponentsofTierIandTierIICapitaloftheBankareasfollows:

2012 RM’000

Tier I Capital

Paid-upsharecapital 513,000

Retainedprofit 69,055

Statutoryreserve 80,787

Otherreserves 212

663,054

Less:Deferredtaxassets* -

Total Tier I Capital (a) 663,054

Tier II Capital

Collectiveassessmentallowanceforloans,advancesandfinancing 2,376

Total Tier II Capital (b) 2,376

Total capital (a) + (b) 665,430

Less:Investmentinsubsidiaries -

Capital base 665,430

Total RWA 1,314,270

*ExcludesdeferredtaxonAFSreserve.



36. CAPITAL ADEQUACY AND CAPITAL MANAGEMENT (continued)

(c) ThebreakdownofRWAbyeachmajorriskcategoryisasfollows:

2012 RM’000

Creditrisk 511,769

Marketrisk 528,595

Operationalrisk 273,906

1,314,270

37. COMMITMENTS


RM’000 RM’000 RM’000

Capital commitments

Approvedandcontractedfor:

Purchaseofproperty,plantandequipment 1,946 2,573 7,559

Non-cancellation operating lease commitments

Futureminimumrentalspayable:

Notlaterthan1year - 2,599 1,901

Laterthan1yearandnotlaterthan5years - 2,363 2,316

- 4,962 4,217



37. COMMITMENTS (continued)

Commitments and Contingencies

Group

Credit Risk- Nominal equivalent weighted amount amount amount

RM’000 RM’000 RM’000

As at 31 January 2013

Commitmentstoextendcreditswithmaturityoflessthan1year:

-marginfacilities - - -

-othertermloansfacilities - - -

Foreignexchangerelatedcontracts - - -

- - -



-marginfacilities 492,574 98,515 68,415

-othertermloansfacilities 60,667 13,183 32,462

Foreignexchangerelatedcontracts 5,814 91 35

559,055 111,789 100,912



-marginfacilities 269,365 53,873 46,872

-othertermloansfacilities 47,828 9,566 9,566

317,193 63,439 56,438

*ThecreditequivalentamountwasarrivedatusingthecreditconversionfactorsasspecifiedbyBNM.



38. SIGNIFICANT RELATED PARTY TRANSACTIONS

(a) Related parties and relationships

Therelatedpartiesof,andtheirrelationship(otherthanthosedisclosedinNote13andNote14tothefinancialstatements)withtheGroupand theCompanyareasfollows:

Relationship Related parties

Keymanagementpersonnel AlldirectorsoftheCompanyandmembersofmanagementcommitteewhomakecriticaldecisionsin relationtothestrategicdirectionoftheGroupandoftheCompany.

Relatedpartiesofkey Closefamilymembersanddependantsofkeymanagementpersonnelandentitiesthatarecontrolledor managementpersonnel significantlyinfluencedby,orforwhichsignificantvotingpowerinsuchentityresidewith,directly,or (deemedasrelatedtotheGroup) indirectlybykeymanagementpersonneloritsclosefamilymembers.

(b) Significant related party transactions and balances

Inadditiontothetransactionsdetailedelsewhereinthefinancialstatements,setoutbelowaretheGroup’sandtheCompany’sothersignificant relatedpartytransactionsandbalances:


Income

Interestincomefrom:

-asubstantialshareholder 5,466 2,793 - -

-subsidiaries - - 345 406

Commitmentfeeincomefromasubstantialshareholder - 211 - -

Dividendincomefromsubsidiaries - - - 17,667

Brokeragefeeincomefromarelatedparty 28 61 - -

Rentalincomefromasubsidiary - - 238 1,358

Managementfeefromdirectors 25 31 - -




38. SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)

(b) Significant related party transactions and balances (continued)


Expenditure

Interestondepositsandplacementstorelatedparties 300 311 - -

Interestondepositsandplacementstokeymanagementpersonnel - 20 - -

Rentalexpenseschargedbyarelatedparty 1,870 2,236 - -

Projectmanagementfeechargedbyarelatedparty 267 266 - -

Amount due from

Fixeddepositsplacedwithasubsidiary - - - 9,848

Dividendreceivablefromsubsidiaries - - - 17,667

Interestreceivablefromasubsidiary - - - 14

Amount due to

Depositsfromotherrelatedparties - 8,311 - -

Interestpayabletootherrelatedparties - 3 - -

ThedirectorsoftheCompanyareoftheopinionthattheabovetransactionshadbeenenteredintointhenormalcourseofbusinessandhadbeen

establishedundertermsthatarenolessfavourablethanthosearrangedwithindependentthirdparties.



38. SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)

(c) Compensation of key management personnel

Theremunerationofdirectorsandothermembersofkeymanagementfortheyearwasasfollows:


Feesandmeetingallowances 1,048 804 406 375

Short-termemployeebenefits 12,177 6,391 4,144 3,000

Definedcontributionplan 1,136 801 499 360

Share-basedpayment - 186 - -

14,361 8,182 5,049 3,735

Includedinthetotalcompensationofdirectorsandkeymanagementpersonnelare:


Directors’remuneration(Note30) 5,528 4,229 4,886 3,735

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Overview

TheGroupismainlyexposedtoavarietyoffinancialrisks,mainlycreditrisk,marketrisk,liquidityriskandoperationalriskthroughtheactivitiesofitssubsidiary,ECMLibraInvestmentBankBerhad(“ECMLIB”or“theBank”).Inaddition,thefiduciaryriskthroughtheactivitiesofitssubsidiary,LibraInvestBerhad(“LIB”)largelystemsfromtheperformancehurdlessuchasthebenchmarksbywhichthefundmanagersareexpectedtomatchorout-performwithinthemandatesthatdetailtheparametersimposedonthem.

The Group’s financial risks are managed by the Board of Directors, through the Board Audit and Risk Management Committee (“BARMC”) whichoversees the establishment of enterprise-wide risk management policies and processes.The BARMC reviews the integrity of internal controls andensuresthatGroupRiskManagementdepartment(“GRM”)performsitsdutiesindependentlyoftherisktakingactivities.GRMprovidesthecentralresourcefordevelopingtoolsandmethodologiesfortheidentification,quantificationandmanagementoftheportfolioriskstakenbytheGroupasawhole.



39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

Overview (continued)

ThefiduciaryriskthroughtheGroup’sassetmanagementcompanyLIB,largelystemsfromgovernanceriskandoperationalrisk.TheGroup’sappointedBARMCmaintainsoversightoftheseriskswiththesupportoftheGroupCompliancedepartmentandGRM.

TheGroup’soverallriskmanagementpoliciesisbeingseparatelysetoutbelowasitreflectsthesubstantialcomponentoftheGroup’sfinancialriskmanagementobjectivesandpolicies.

GRM and Group Compliance functions were organised on a Group basis with the respective departments established at the Bank level up to 14December2012.SubsequenttothedisposalofECMLIBonthesaiddate,theCompliancefunctionhassincebeenestablishedatLIBlevelwhilsttheGroupChiefExecutiveOfficeroverseesriskmanagementonaGroupbasis.

Credit risk

Creditriskisthepotentiallossofrevenueasaresultoffailurebytheborrowersorcounterpartiestomeettheircontractualfinancialobligations.AstheGroup’sprimarybusinesswasininvestmentbanking,itsexposuretocreditriskwasprimarilyfromitslendingandfinancingtoretailconsumers,SmallandMediumEnterprises(“SMEs”),andcreditriskistheriskoflossarisingfromtheactualorperceiveddecliningcreditqualityandactualdefaultofanobligor,counterpartyorcorporatecustomersaswellasunderwritingcommitments.TradingandinvestingthesurplusfundsoftheBank,suchastradingandholdingofdebtsecurities,settlementoftransactions,alsoexposedtheBanktocreditriskandcounterpartyrisk.

Riskgovernance

TheBank’sBoardhasappointedtheBoardCreditCommittee(“BCC”)tooverseeallaspectsofcreditriskmanagementintheBankwiththesupportoftheCreditApprovalExecutiveCommittee(“CAEC”).TheBCCcomprisesboardmemberswhohavethevetopowertorejectcreditsormodifythetermsofcreditsthathavebeenapprovedbytheCAEC.ItreviewsandapprovescreditriskmanagementpoliciesasrecommendedbyCAEC.

TheCAECistaskedtoformulatecreditriskmanagementpolicies, reviewandapprovecreditapplications inaccordancewiththeBank’sprescribedapprovallimitsaslaiddownbytheBCC.TheCAECisrepresentedbymembersofseniormanagementoftheBankincludingtheHeadofCreditControldepartment(“CCD”).

Riskmanagementapproach

(a) Lending to retail consumers

ThecreditgrantingtoretailconsumersandSMEsisindividuallyunderwritten,whichamongstothers,includestheassessmentofthehistoricalrepayment track record, the current repayment capacity of the customer and types of facilities including the collaterals offered. The creditapprovingauthorityhastheresponsibilitytoensurethatcreditriskisproperlyassessedandallcrucialcreditinformationofthecustomer,facilitytypeandcollateralsofferedisincludedintheloanapplication.

(b) Lending to corporate and institutional customers

Creditgrantingtocorporateandinstitutionalcustomersis individuallyunderwritten.Creditofficers identifyandassessthecreditrisksof largecorporateorinstitutionalcustomers,orcustomergroups,takingintoconsiderationtheirfinancialandbusinessprofiles,industryandeconomicfactors,orothercreditsupportsuchasequityoptions.

(c) Credit risk from trading and investment activities

ThemanagementofthecreditriskarisingfromtheGroup’stradingor investingitssurplusfundsisprimarilyviathesettingofspecifictradinglimitsincludinginstrumenttypeandcounterpartylimitswhicharespecificallyapprovedbytheGroup’sBoard.Inaddition,theGrouphasinplacevariousmanagementactiontriggersandrelatedguidelinesundertheCreditRiskManagementFrameworktoavoidundueconcentrationofcreditrisk.




Credit risk (continued)

Riskmanagementapproach(continued)

(d) Counterparty credit risk on derivative financial instruments

CreditriskarisesfromthepossibilitythatacounterpartymaybeunabletomeetthetermsofacontractinwhichtheGrouphasagaininacontract.

Therehavebeennochangessincetheendofthepreviousfinancialyearinrespectofthefollowing:

(i) thetypesofderivativefinancialcontractsentered intoandtherationaleforentering intosuchcontracts,aswellastheexpectedbenefits accruingfromthesecontracts;

(ii) theriskmanagementpoliciesinplaceformitigatingandcontrollingtherisksassociatedwiththesefinancialderivativecontracts;and

(iii) therelatedaccountingpolicies.

Asat31January2013,theamountofcreditriskintheGroup,measuredintermsofthecosttoreplacetheprofitablecontractswasRM26,123,000(2012:RM202,807,000).Thisamountwillincreaseordecreaseoverthelifeofthecontracts,mainlyasafunctionofmaturitydatesandmarketratesorprices.Derivativefinancialinstrumentsattheircontractualandfairvalueamountsareasfollows:

Group Group Group 31 January 2013 31 January 2012 1 February 2011 Notional Notional Notional amount Fair value amount Fair value amount Fair value RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Equityrelatedcontracts,options purchasedandembeddedderivatives 26,123 1,203 202,807 6,688 202,319 9,552

(e) Independent credit assessment

Independent credit assessments are performed on large credits to complement risk identification as well as to evaluate the quality of credit appraisalsandthecompetencyofcreditpersonnel. InternalriskmanagementreportsarepresentedtotheBARMC,containinginformationon economictrendsacrossmajorportfolios,qualityofcreditportfolios,resultsofindependentcreditreview,resultsoftheriskprofilingconducted, significantcreditexposurestoconnectedpartiesandcreditconcentrationbyeconomicsectorsandbylargesinglecustomers.

(i) Creditriskexposuresandcreditriskconcentration

ThefollowingtablepresentstheGroup’sexposuretocreditriskoffinancialassetsbeforetheeffectofcreditriskmitigation,brokendownby therelevantcategoryandclassoffinancialassetagainsttherelevantindustryandmaturity.Foron-balancesheetexposures,themaximum exposuretocreditriskequalstheircarryingamounts.Forcreditcommitments,themaximumexposuretocreditriskisthefullamountofthe undrawncreditgrantedtocustomers.

Aconcentrationofcreditriskexistswhenanumberofcounterpartiesareengagedinsimilaractivitiesandhavesimilareconomiccharacteristics thatwouldcausetheirabilitytomeetcontractualobligationstobesimilarlyaffectedbychangesineconomicandotherconditions.

TheGroup’screditriskfromfinancialinstrumentswerealllocatedinMalaysia.





Riskmanagementapproach (continued)

(e) Independent credit assessment (continued)

(i) Creditriskexposuresandcreditriskconcentration(continued)

Byclassoffinancialinstrument

Transport Agriculture, Government storage and manufacturing, Construction Other Purchase and Central Financial business wholesale & & real consumer of Banks services services retail trade estate Utilities loans securities Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group


On-Balance Sheet financial assets

Cashandshort-termfunds - 73,468 - - - - - - 73,468

SecuritiesHFT - - - 24,921 - - - - 24,921

SecuritiesAFS - 697,656 - - - - - - 697,656

SecuritiesHTM - 47,750 - - - - - - 47,750

Derivativefinancialassets - - - 1,203 - - - - 1,203

Grossloans,advances andfinancing - - - 4,242 - - - - 4,242

Tradereceivables - 7,849 - - - - - - 7,849

Total - 826,723 - 30,366 - - - - 857,089










Group



Cashandshort-termfunds 52 251,968 - - - - - - 252,020

Depositswith financialinstitutions - 20,631 - - - - - - 20,631

SecuritiesHFT 153,933 200,674 729 5,537 112 - - - 360,985

SecuritiesAFS 370,886 92,710 3,550 9,268 188,577 10,042 - - 675,033

SecuritiesHTM - 200,000 - - - - - - 200,000

Derivativefinancialassets - 52 - - 6,630 - 6 - 6,688

Grossloans,advances andfinancing - 18,672 47,307 295,643 75,049 - - 122,275 558,946

StatutorydepositswithBNM 27,165 - - - - - - - 27,165

Tradereceivables - 199,265 - - - - - 164,235 363,500

552,036 983,972 51,586 310,448 270,368 10,042 6 286,510 2,464,968

Commitments and contingencies

Commitments (creditequivalentamount) - 10,070 1,750 1,133 - - 21 98,815 111,789

Total 552,036 994,042 53,336 311,581 270,368 10,042 27 385,325 2,576,757










Group



Cashandshort-termfunds 64,954 180,201 - - - - - - 245,155

Depositswithfinancialinstitutions - 21,489 - - - - - - 21,489

SecuritiesHFT 49,758 304,060 - - - - - - 353,818

SecuritiesAFS 250,872 102,773 13,104 10,560 115,479 26,691 - - 519,479

SecuritiesHTM - 70,000 - - - - - - 70,000

Derivativefinancialassets - - - 1,651 7,901 - - - 9,552

Grossloans,advancesandfinancing - 42,815 106,313 195,745 75,055 - - 240,128 660,056

StatutorydepositswithBNM 8,834 - - - - - - - 8,834

Tradereceivables - 269,185 - - - - - 216,133 485,318

374,418 990,523 119,417 207,956 198,435 26,691 - 456,261 2,373,701

Commitments and contingencies

Commitments(creditequivalentamount) - 4,000 803 810 - - - 57,826 63,439

Total 374,418 994,523 120,220 208,766 198,435 26,691 - 514,087 2,437,140








Allloansandfinancingaresecuredbycollateralsincash,sharesorproperties.

(ii) Creditqualityofgrossloansandadvances

Grossloans,advancesandfinancingareanalysedasfollows:


Neitherpastduenorimpaired 4,242 558,946 660,056

(A) Neitherpastduenorimpaired

Grossloans,advancesandfinancingwhichareneitherpastduenorimpairedareanalysedasfollows:


Retailloans/financing - 122,275 240,128

Corporateloans/financing 4,242 436,671 419,928

4,242 558,946 660,056

(B) Pastduebutnotimpaired

Pastduebutnotimpairedloansareloanswherethecustomerhasfailedtomakeaprincipalorinterestpaymentwhencontractuallydue,and includesloans,advancesandfinancingwhicharedueoneormoredaysafterthecontractualduedatebutlessthanthree(3)months.

Asat31January2013,therearenobalanceswhicharepastduebutnotimpaired(2012:Nil).







(ii) Creditqualityofgrossloansandadvances(continued)

(C) Impairedloans

Forallloansthatareconsideredindividuallysignificant,theGroupassessesonacase-by-casebasisateachreportingdatewhetherthereis anyobjectiveevidencethataloanisimpaired.ThecriteriathattheGroupusetodeterminethatthereisobjectiveevidenceofimpairment include:

(a) theprincipalorinterestorbothispastdueformorethan90daysor3months;

(b) theamountispastdueortheoutstandingamounthasbeeninexcessoftheapprovedlimitfor90daysor3monthsorless,whereby thefacilityorborrowerexhibitscreditqualityweaknessesarisingfromtheGroup’sinternalcreditriskratingassessmentexercise;

(c) for loanfacilitieswithrepaymentsofprincipalor interestorboththat isscheduledonintervalsof3monthsor longer,theloanis classifiedasimpairedassoonasadefaultoccursunlesstherearestrongmitigatingfactors.However,shouldthefacilityremainspast dueforafurther90daysor3months,theloanandfinancingisimmediatelyclassifiedasimpaired.

Asat31January2013,therearenoimpairedloans.

(D) Rescheduled/restructuredloans,advancesandfinancing

Rescheduled/restructuredloansandfinancingincludeextendedpaymentarrangements,andthemodificationanddeferralofpayments.

At31January2013,therewerenorestructuredloans(2012:RM8,354,971).

(E) ThecreditriskoffinancialassetoftheGroupismitigatedbythecollateralsheldagainstthefinancialasset.

Noloans,advancesandfinancingwassubjecttoindividualassessmentimpairmentreviewasatthecurrentandpreviousfinancialyearend.Thecollateralmitigatescreditriskandwouldreducetheextentofimpairmentallowancefortheassetsubjecttoimpairmentreview.

Fortradereceivables,individualassessmentallowancesoftheGroupasatthedateofthestatementsoffinancialpositionwouldhavebeenhigherbyapproximatelyRMNil(2012:RM3,600,000)withoutthecollateralheld.

(F) Repossessedcollateral

Theseareassetsobtainedbytakingpossessionofcollateralheldassecurityagainstloans,advancesandfinancing.

Repossessedcollateralaresoldassoonaspracticable.Repossessedcollateralarerecognisedinotherassetsonthestatementoffinancial position.TheGroupdonotoccupyrepossessedpropertiesforitsbusinessuse.

(iii) Impairmentofprivatedebtsecurities

The Group determines that there is objective evidence of impairment of private debt securities when a default occurs upon a breach of contractualrepaymentscheduleoraratingdowngrademaybeconsideredasimpaired.However,securitiesthatareratedbyexternalrating agenciesshallbeimmediatelyclassifiedasimpairedwhenithasbeenratedas“D”(RAM,MARCoritsequivalent).







(iv) Creditqualityoffinancialinvestments

Setoutbelowareanalysisofratedfinancialinvestmentsanalysedbyratingsfromexternalcreditratingsagencies:

Financial Assets Placements with <--------- Financial Investments ----------> financial institutions* HFT AFS HTM Total At At At At At amortised fair fair fair amortised cost value value value cost RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group


A+toA- 60,706 - - - - 60,706

Notrated - - 24,921 697,656 47,750 770,327

60,706 - 24,921 697,656 47,750 831,033

Group


AAA+toAA- 158,543 - 205,742 106,058 200,000 670,343

A+toA- 20,000 - - 10,282 - 30,282

Notrated - - 153,933 343,141 - 497,074

Unrated 25,000 - 1,310 215,552 - 241,862

203,543 - 360,985 675,033 200,000 1,439,561







(iv) Creditqualityoffinancialinvestments(continued)

Setoutbelowareanalysisofratedfinancialinvestmentsanalysedbyratingsfromexternalcreditratingsagencies:

Financial Assets Placements with <--------- Financial Investments ----------> financial institutions* HFT AFS HTM Total At At At At At amortised fair fair fair amortised cost value value value cost RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group


AAA+toAA- 4,035 - 304,060 165,475 70,000 543,570

A+toA- 20,000 - - 28,705 - 48,705

Notrated 64,900 - 49,758 220,471 - 335,129

Unrated 105,000 - - 104,828 - 209,828

193,935 - 353,818 519,479 70,000 1,137,232

*Comprisesofmoneyatcallanddepositsplaced.

Theratingsshownformoneymarketinstruments(e.g.negotiableinstrumentsofdeposit)arebasedontheratingsassignedtotherespective financialinstitutionissuingthefinancialinstruments.Theratingsshownfordebtsecuritiesarebasedontheratingsassignedtothespecific debtissuance.

Note:Theratedfinancialinvestmentsshownabovedonotincludegovernmentsecuritiesandtreasurybills,unittrustfundsandequitysecurities.

Market risk

Marketriskistheriskoflossesinonandoff-balancesheetpositionsarisingfrommovementsinmarketprices.MarketriskistheriskthattheGroup’searningsandcapital,oritsabilitytomeetitsbusinessobjectives,willbeadverselyaffectedbymovementsinmarketratesorpricessuchasinterestrates,foreignexchangerates,equitypricesand/orcreditspreads.

Riskgovernance

GRM supports the BARMC in market risk management oversight, reviews the Group’s market risk framework and policies, aligns market riskmanagementwithbusinessstrategiesandplanning,andrecommendsactionstoensurethatthemarketrisksremainwithinestablishedrisktolerance.ThemarketriskoftheGroupisidentifiedintotradedmarketriskandnon-tradedmarketrisk.



Market risk (continued)

Typesofmarketrisk

(a) Traded market risk

Traded market risk, primarily the interest rate risk and credit spread risk, exists in the Group’s trading book positions held for the purpose ofbenefitingfromshort-termpricemovements,whichareconductedprimarilybythetreasuryoperations.

Risk measurement approach

TheGroup’stradedmarketriskframeworkcomprisesmarketriskpoliciesandpractices,delegationofauthority,marketrisklimitsandvaluationmethodologies.TheGroup’stradedmarketriskforitsinterest-sensitivefixedincomeinstrumentsismeasuredbythepresentvalueofaonebasispointchange(“PV01”)andismonitoredindependentlybytheGRMonadailybasisagainstapprovedmarketrisklimits.Inaddition,TreasuryBack-Officedepartmentisalsoresponsibletomonitorandreportonlimitexcessesandthedailymark-to-marketvaluationoffixedincomesecurities.Themarketrisklimitsaredeterminedaftertakingintoaccounttheriskappetiteandtherisk-returnrelationshipandareperiodicallyreviewedbyBARMC.ChangestomarketrisklimitsmustbeapprovedbytheGroup’sBoard.ThetradingbookpositionsandlimitsareregularlyreportedtotheBARMC.

(b) Equity risk

Marketriskonequitiesisthepotentiallossinthevalueoftheinvestmentinsharesandinterest-in-sharesduetothechangesinmarketprice.ThismarketriskisbeingmonitoredusingValue-at-Risk(“VaR”).VaRreferstothemaximumlossnotexceededwithagivenprobabilitydefinedastheconfidenceleveloveragivenperiodoftime.


TheBank’sGRMmonitorsandmanagesmarketriskexposureviastresstesting,inadditiontoreviewingandanalysingitstreasurytradingstrategy,positionsandactivitiesvis-à-vischanges inthefinancialmarket,monitoring limitusage,assessing limitadequacy,andverifyingtransactionprices.

(c) Non-traded market risk

TheBank’scorenon-tradedmarketrisksareinterestraterisk(“IRR”)inthebankingbookandforeignexchangerisk.

Interest rate risk

IRRemanatesfromtherepricingmismatchesoftheGroup’sbankingassetsandliabilitiesandalsofromtheGroup’sinvestmentsoftheirsurplus funds.


BalancesheetmanagementunderthepurviewofAssetsandLiabilitiesCommittee(“ALCO”)includesriskmanagementofthepotentialchangeinearningsandcapitalarisingfromtheeffectofmovementsininterestratesonthestructuredbankingbookoftheBank.Toachievethis,ALCOusesvarioustoolsincludinginterestrategapanalysis.Simulatingaparallelyieldcurveshift,thismeasurementissometimesknownasEarnings-at-Risk(“EAR”)andspecifictolerancelimithasbeensettomonitorthismarketriskexposure.






Typesofmarketrisk (continued)

(c) Non-traded market risk (continued)

Interest rate risk (continued)

The tables below summarise the Group’s exposure to IRR. The assets and liabilities at carrying amount are categorised by the earlier of contractualrepricingormaturitydatesasfollows:

<------------------------------ Non-trading book -----------------------------> Effective Up to 1 > 1 - 3 > 3 - 12 Over Non-interest Trading interest Group month months months 1 - 5 years 5 years sensitive book Total rate As at 31 January 2013 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 %

ASSETS

Cashandshort-termfunds 55,930 4,776 - - - 12,762 - 73,468 3.07

SecuritiesHFT - - - - - 24,921 - 24,921 -

SecuritiesAFS - - - - - 697,656 - 697,656 -

SecuritiesHTM - - - 47,750 - - - 47,750 5.00

Derivativefinancialassets - - - - - 1,203 - 1,203 -

Loans,advancesandfinancing

-Performing - - - - 4,242 (140)* - 4,102 10.00

Tradereceivables - - - - - 7,849 - 7,849 -

Otherassets^ - - - - - 66,512 - 66,512 -

Total assets 55,930 4,776 - 47,750 4,242 810,763 - 923,461

^Otherassetsincludeotherassets,investmentinassociatedcompany,property,plantandequipmentandintangibleassetsasdisclosedinthe consolidatedstatementoffinancialposition.

*Thenegativebalancerepresentscollectiveassessmentallowanceforloans,advancesandfinancing.








<------------------------------ Non-trading book -----------------------------> Effective Up to 1 > 1 - 3 > 3 - 12 Over Non-interest Trading interest Group month months months 1 - 5 years 5 years sensitive book Total rate As at 31 January 2013 (continued) RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 %


LIABILITIES

Tradepayables - - - - - 7,207 - 7,207 -

Otherliabilities# - - - - - 6,314 - 6,314 -

Total liabilities - - - - - 13,521 - 13,521

Shareholders’equities - - - - - 909,940 - 909,940 -

Total equity and liabilities - - - - - 923,461 - 923,461

On-BalanceSheetinterest sensitivitygap 55,930 4,776 - 47,750 4,242 (112,698) - -

Off-BalanceSheetinterest sensitivitygap - - - - - - - -

Total interest sensitivity gap 55,930 4,776 - 47,750 4,242 (112,698) - -

#Otherliabilitiesincludeotherliabilities,provisionfortaxationanddeferredtaxliabilitiesasdisclosedintheconsolidatedstatementoffinancial position.









ASSETS

Cashandshort-termfunds 182,912 - - - - 69,108 - 252,020 3.02

Depositswithfinancialinstitutions - 20,051 580 - - - - 20,631 3.20

SecuritiesHFT - - - - - - 360,985 360,985 -

SecuritiesAFS 3,053 5,006 71,006 97,277 199,664 14,189 284,838 675,033 4.11

SecuritiesHTM 75,000 125,000 - - - - - 200,000 3.19

Derivativefinancialassets - - - - - - 6,688 6,688 -


-Performing 218,878 133,643 159,925 - 46,500 (2,376)* - 556,570 7.86

StatutorydepositwithBNM - - - - - 27,165 - 27,165 -

Tradereceivables 5,284 - - - - 358,216 - 363,500 9.00

Otherassets^ - - - - - 379,570 - 379,570 -

Total assets 485,127 283,700 231,511 97,277 246,164 845,872 652,511 2,842,162


*Thenegativebalancerepresentscollectiveassessmentallowanceforloans,advancesandfinancing.









LIABILITIES

Depositsfromcustomers 849,139 207,974 24,370 - - - - 1,081,483 3.25

Depositsandplacementsof banksandotherfinancial institutions 341,371 - - - - - - 341,371 3.08

Tradepayables - - - - - 324,413 - 324,413 -


Total liabilities 1,190,510 207,974 24,370 - - 398,265 - 1,821,119

Shareholders’equities - - - - - 1,021,043 - 1,021,043

Total equity and liabilities 1,190,510 207,974 24,370 - - 1,419,308 - 2,842,162

On-BalanceSheetinterest sensitivitygap (705,383) 75,726 207,141 97,277 246,164 (573,436) 652,511 -


Total interest sensitivity gap (705,383) 75,726 207,141 97,277 246,164 (573,436) 652,511 -

#Otherliabilitiesincludeotherliabilities,provisionfortaxationandderivativesfinancialliabilitiesasdisclosedintheconsolidatedstatementof financialposition.









ASSETS

Cashandshort-termfunds 172,446 - - - - 72,709 - 245,155 2.70

Depositswithfinancialinstitutions - 20,849 640 - - - - 21,489 2.88

SecuritiesHFT - - - - - - 353,818 353,818 -

SecuritiesAFS 4,703 154,505 38,469 194,067 83,992 (2,504)* 46,247 519,479 4.88

SecuritiesHTM 20,000 50,000 - - - - - 70,000 2.97

Derivativefinancialassets - - - - - - 9,552 9,552 -


-Performing 129,445 209,923 320,688 - - (1,705)** - 658,351 8.21

StatutorydepositwithBNM - - - - - 8,834 - 8,834 -

Tradereceivables 5,718 - - - - 479,600 - 485,318 9.00

Otherassets^ - - - - - 380,155 - 380,155 -

Total assets 332,312 435,277 359,797 194,067 83,992 937,089 409,617 2,752,151


* Thenegativebalanceisinclusiveofnetimpairmentlossonsecurities.

**Thenegativebalancerepresentscollectiveassessmentallowanceforloans,advancesandfinancing.











LIABILITIES

Depositsfromcustomers 767,114 156,676 123,016 - - - - 1,046,806 3.02

Depositsandplacementsof banksandotherfinancial institutions 85,000 106,008 10,000 - - - - 201,008 2.98

Tradepayables - - - - - 428,095 - 428,095 -


Total liabilities 852,114 262,684 133,016 - - 505,078 - 1,752,892

Shareholders’equities - - - - - 999,259 - 999,259

Total equity and liabilities 852,114 262,684 133,016 - - 1,504,337 - 2,752,151

On-BalanceSheetinterest sensitivitygap (519,802) 172,593 226,781 194,067 83,992 (567,248) 409,617 -


Total interest sensitivity gap (519,802) 172,593 226,781 194,067 83,992 (567,248) 409,617 -

#Otherliabilitiesincludeotherliabilitiesandprovisionfortaxationasdisclosedintheconsolidatedstatementoffinancialposition.








TheCompanyisexposedtointerestrateriskthroughtheholdingofshort-termdepositsinfinancialinstitutions.

A25basispointincreaseininterestratesbasedoncurrentlyobservablemarketenvironmentwithallothervariablesheldconstant,wouldhave thefollowingeffectontheCompany’sprofitaftertaxandequity:

31 January 31 January 1 February 2013 2012 2011 RM’000 RM’000 RM’000

Increaseinprofitaftertax 95 18 10

Anequivalentdecreaseininterestratesshownabovewouldresultinanequivalent,butoppositeimpact.

The reported amounts do not take into account actions that would be taken by the Group to mitigate the impact of this IRR. In reality, managementseeks toproactivelychangethe IRRprofile tominimise lossesandmaximisenet revenues.Theprojectionassumes that interest rates of all maturities move by the same amount and, therefore, do not reflect the potential impact on the Net Interest Income (“NII”) and Economic Value of Equities (“EVE”) of some rates changing while others remain unchanged.The projection also assume a constant financial positionandthatallpositionsruntomaturity.

Liquidity and funding risk

LiquidityriskistheriskthattheGroupisunabletomaintainsufficientliquidassetstomeetitsfinancialcommitmentsandobligationswhentheyfall dueorsecuringthefundingrequirementsatexcessivecost.FundingriskistheriskthattheGroupdoesnothavesufficientlystableanddiversesources offundingorthefundingstructureisinefficient.

Riskgovernance

The BARMC supported by the Group’s ALCO is the primary party responsible for liquidity management based on guidelines. Liquidity policies andframeworksarereviewedbytheGRMandapprovedbytheBARMCpriortoimplementation.

Riskmanagementapproach

LiquidityriskmanagementisalignedwiththeNewLiquidityFrameworkissuedbyBNM,andismeasuredandmanagedonaprojectedcashflowbasis. InadditiontoensuringthecompliancewiththeNewLiquidityFramework,theGroupmaintainsaliquiditycompliancebuffertomeetanyunexpected cashoutflows.

Theday-to-dayfundingmanagementisundertakenbythetreasuryoperationsandthisincludesthemaintenanceofaportfolioofhighlyliquidassets thatcanbeeasily liquidatedasprotectionagainstanyunforeseen interruptiontocashflowandthereplenishmentof fundsastheymatureorare borrowedbycustomers.




Liquidity and funding risk (continued)


TheGroup’sliquidityandfundingpositionweresupportedbytheBank’ssignificantcustomerdepositbase,accompaniedbyfundingfromwholesale markets.TheBank’sretaildepositbasecomprisedshort-termandfixeddeposits.TheBank’sreputation,earningsgenerationcapacity, financialand capitalstrengthincludingofferingofcompetitivedepositratesarecoreattributestopreservedepositors’confidenceandensureliquidity.TheBank accessesthewholesalemarketsthroughtheissuanceofcertificateofdepositsandthetakingofmoneymarketdepositstomeetshort-termobligations andtomaintainitspresenceinthelocalmoneymarkets.

The primary tools for monitoring liquidity is the maturity mismatch analysis, assessment on the concentration of funding, the availability of unencumberedassetsandtheuseofmarket-wideinformationtoidentifypossibleliquidityproblems.LiquiditypositionsarereportedtotheBARMC onaquarterlybasisandinRinggitMalaysia.

Contingencyfundingplansareinplacetoidentifyearlywarningsignalsofaliquidityproblem.Thecontingencyfundingplansalsosetoutthecrisis escalationprocessaswellasthevariousstrategiestobeemployedtopreserveliquidityincludinganorderlycommunicationchannelduringaliquidity problem. A liquidity stress test programme is in place to ensure liquidity stress tests are systematically performed to determine the cash flow mismatchesunderthe“BankSpecificLiquidityCrisis”and“GeneralMarketLiquidityCrisis”scenariosandthepossiblesourceoffundingtomeetthe shortfallsduringaliquiditycrisis.

(a) Maturityanalysisoffinancialliabilitiesandoff-balancesheetcommitmentsonanundiscountedbasis

The following tables show the contractual undiscounted cash flows payable for financial liabilities and off-balance sheet commitments by remainingcontractualmaturities.Thefinancialliabilitiesinthetablesbelowwillnotagreetothebalancesreportedinthestatementsoffinancial position as the tables incorporate all contractual cash flows, on an undiscounted basis, relating to both principal and interest payments.The contractualmaturityprofiledoesnotnecessarilyreflectthebehaviouralcashflows.




Liquidity and funding risk (continued)


Up to > 7 days - > 1 - 3 > 3 - 6 > 6 - 12 > 1Group 7 days 1 month months months months year TotalAs at 31 January 2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Tradepayables 7,207 - - - - - 7,207

Financialliabilities 1,210 64 68 314 28 - 1,684

Otherpayables 59 502 689 2,016 371 678 4,315

Total liabilities 8,476 566 757 2,330 399 678 13,206

Total off-balance sheet items - - - - - - -

Total liabilities and off-balance sheet items 8,476 566 757 2,330 399 678 13,206

Group


Depositsfromcustomers 358,802 461,067 209,126 4,665 20,326 - 1,053,986

Depositsfrombanks 105,023 266,820 - - - - 371,843

Total liabilities 463,825 727,887 209,126 4,665 20,326 - 1,425,829

Loancommitments 481,286 161 12,115 80 56,099 3,500 553,241

Total off-balance sheet items 481,286 161 12,115 80 56,099 3,500 553,241

Total liabilities and off-balance sheet items 945,111 728,048 221,241 4,745 76,425 3,500 1,979,070

Group


Depositsfromcustomers 336,819 518,383 223,740 182,841 124,001 - 1,385,784

Depositsfrombanks 15,362 82,236 146,743 - 37,978 - 282,319

Total liabilities 352,181 600,619 370,483 182,841 161,979 - 1,668,103

Loancommitments 269,373 20,000 9,050 18,770 - - 317,193

Total off-balance sheet items 269,373 20,000 9,050 18,770 - - 317,193

Total liabilities and off-balance sheet items 621,554 620,619 379,533 201,611 161,979 - 1,985,296




Operational risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This risk is managed by the Group in accordance with the Group’s operational risk management framework with established operational risk management processes.Tomanageandcontroloperationalrisk,theGroupplacesgreatemphasisontheimportanceofpropermonitoringandreportingofbusiness units’adherencetoestablishedriskpolicies,proceduresandlimitsbyindependentcontrolandsupportunits,oversightprovidedbythemanagement andtheBoardofDirectors,andindependentassessmentoftheadequacyandreliabilityoftheriskmanagementprocessesbytheBARMC.

TheGroup’soperationalriskmanagementprocessesincludeestablishmentofsystemofinternalcontrols,identificationandassessmentofoperational riskinherentinnewandexistingproducts,processesandsystems,regulardisasterrecoveryandbusinesscontinuityplanningandsimulationsandself- assessmentaudit.

40. SEGMENTAL REPORTING

Business segments

TheGroupdeterminesandpresentsoperatingsegmentsbasedontheinformationprovidedtoseniormanagementoftheGroup.

TheGroup’sreportableoperatingsegmentsareidentifiedbasedonbusinessunitswhichareengagedinprovidingdifferentservicesandproducts,as follows:

(a) Stockbroking-stockbroking,sharemarginfinancinganddealinginsecurities.

(b) Investmentbankingandstructuredfinancing-corporatefinanceadvisory,equitycapitalmarketsservices,debtcapitalmarketsandstructured lendingactivities.

(c) Treasuryandcapitalmarketoperations-treasuryactivitiesincludingmoneymarketoperations,foreignexchangeandproprietaryinvestments.

(d) Fundmanagement-unittrustfundsandassetmanagement.

(e) Others-notsignificanttobeindividuallydisclosed.



40. SEGMENTAL REPORTING (continued)

Business segments (continued)

<--Continuing operations--> <----------------------Discontinued operation--------------------> Investment holding Investment Treasury and capital banking and and capital Inter- market Fund structured market segment Group operations management Stockbroking finance operations Others Total elimination total 12 months ended 31 January 2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Revenuefromexternalcustomers 4,221 12,358 48,045 43,097 52,437 3,290 163,448 - 163,448

Inter-segmentrevenue - - 20 - 43,236 12 43,268 (43,268) -

4,221 12,358 48,065 43,097 95,673 3,302 206,716 (43,268) 163,448

Netinterestincome 1,370 255 2,584 18,009 6,123 644 28,985 - 28,985

Non-interestincome 2,851 12,103 37,115 11,668 27,893 2,058 93,688 - 93,688

Othernon-operatingincome 1,628 - 514 45 (328) 53 1,912 - 1,912

Netincome 5,849 12,358 40,213 29,722 33,688 2,755 124,585 - 124,585

Operatingexpenses (5,766) (9,824) (43,650) (4,459) (30,151) (2,130) (95,980) - (95,980)

Operatingprofit/(loss) 83 2,534 (3,437) 25,263 3,537 625 28,605 - 28,605

(Allowancefor)/writebackoflosses onloans,advancesandfinancing (140) - - (4,080) 352 - (3,868) - (3,868)

(Allowancefor)/writebackofbadand doubtfuldebts - - (104) - 87 - (17) - (17)

Writebackofimpairment oninvestments - - - - 1,528 - 1,528 - 1,528

Profit/(loss) by segments (57) 2,534 (3,541) 21,183 5,504 625 26,248 - 26,248

Shareofprofitofanassociated company 8,403

Lossondisposalofsubsidiaries (68,652)

Loss before tax (34,001)

Segment assets 866,544 21,338 - - - - 887,882 - 887,882

Investmentinassociatedcompanies 35,579

Total assets 923,461



40. SEGMENTAL REPORTING (continued)

Business segments (continued)

<--Continuing operations--> <----------------------Discontinued operation--------------------> Investment holding Investment Treasury and capital banking and and capital Inter- market Fund structured market segment Group operations management Stockbroking finance operations Others Total elimination total 12 months ended 31 January 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Revenuefromexternalcustomers 2,499 11,481 57,330 45,283 59,757 1,937 178,287 - 178,287

Inter-segmentrevenue - - - - 50,077 241 50,318 (50,318) -

2,499 11,481 57,330 45,283 109,834 2,178 228,605 (50,318) 178,287

Netinterestincome 806 273 2,769 20,797 11,146 384 36,175 - 36,175

Non-interestincome 1,693 11,208 48,890 8,497 24,795 1,126 96,209 - 96,209

Othernon-operatingincome 1,541 - 2,712 67 (219) 180 4,281 - 4,281

Netincome 4,040 11,481 54,371 29,361 35,722 1,690 136,665 - 136,665

Operatingexpenses (4,833) (8,922) (50,616) (4,990) (18,041) (5,340) (92,742) - (92,742)

Operatingprofit/(loss) (793) 2,559 3,755 24,371 17,681 (3,650) 43,923 - 43,923

(Allowancefor)/writebackoflosses onloans,advancesandfinancing - - (311) (406) - 46 (671) - (671)

Writebackof/(allowancefor)badand doubtfuldebts - - 110 (73) 6,456 - 6,493 - 6,493

Writebackofimpairment oninvestments 87 (87) - - 1,651 - 1,651 - 1,651

Profit/(loss) by segments (706) 2,472 3,554 23,892 25,788 (3,604) 51,396 - 51,396

Shareofprofitofanassociated company 219

Profit before tax 51,615

Segment assets 51,500 15,141 471,430 446,468 1,510,224 75,836 2,570,599 (32,913) 2,537,686

Investmentinassociatedcompanies 19,976

Intangibleassets 284,500

Total assets 2,842,162



41. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Determination of fair value and the fair value hierarchy

MFRS7FinancialInstruments:Disclosuresrequirestheclassificationoffinancialinstrumentsheldatfairvalueaccordingtoahierarchythatreflectsthe significanceofinputsusedinmakingthemeasurements,inparticular,whethertheinputsusedareobservableorunobservable.Thefollowinghierarchy isusedfordetermininganddisclosingthefairvalueoffinancialinstruments:

Level1- Quotedmarketprices:quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities;

Level2- Valuationtechniquesusingobservableinputs:inputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetor liability,whetherdirectly(i.e.prices)orindirectly(i.e.derivedfromprices),areused;

Level3- Valuationtechniqueswithsignificantunobservableinputs:inputsusedarenotbasedonobservablemarketdata.

Forfinancialinstrumentsmeasuredatfairvalue,whereavailable,quotedandobservablemarketpricesinanactivemarketordealerpricequotations areusedtomeasurefairvalue.TheseincludelistedequitysecuritiesandbrokerquotesfromBloombergandReuters.

Wheresuchquotedandobservablemarketpricesarenotavailable,fairvaluesaredeterminedusingappropriatevaluationtechniques,whichinclude theuseofmathematicalmodels,suchasdiscountedcashflowmodelsandoptionpricingmodels,comparisontosimilarinstrumentsforwhichmarket observablepricesexistandothervaluationtechniques.Valuationtechniquesusedincorporateassumptionsregardingdiscountrates,interestrateyield curves,estimatesoffuturecashflowsandotherfactors.Changesintheseassumptionscouldmateriallyaffectthefairvaluesderived.TheGroupand the Bank generally use widely recognised valuation techniques with market observable inputs for the determination of fair value due to the low complexityofthefinancialinstrumentsheld.

ThefollowingtableshowstheGroup’sfinancialassetsandliabilitieswhicharemeasuredatfairvalueanalysedbylevelwithinthefairvaluehierarchy:



41. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (continued)

Determination of fair value and the fair value hierarchy (continued)

Group Level 1 Level 2 Level 3 Total 2013 RM’000 RM’000 RM’000 RM’000

FinancialassetsHFT

-Non-moneymarketinstruments 24,921 - - 24,921

FinancialassetsAFS

-Non-moneymarketinstruments 69,600 628,056 - 697,656

Totalfinancialassetsmeasuredatfairvalue 94,521 628,056 - 722,577

2012

FinancialassetsHFT

-Governmentsecuritiesand treasurybills - 153,933 - 153,933

-Moneymarketinstruments - 194,977 - 194,977


2,001 358,984 - 360,985

FinancialassetsAFS

-Governmentsecuritiesandtreasurybills - 383,419 - 383,419


147,398 525,435 - 672,833

Totalfinancialassetsmeasuredatfairvalue 149,399 884,419 - 1,033,818





Company Level 1 Level 2 Level 3 Total 2013 RM’000 RM’000 RM’000 RM’000

FinancialassetsAFS


Totalfinancialassetsmeasuredatfairvalue 69,600 628,056 - 697,656

2012

FinancialassetsAFS

-Non-moneymarketinstruments - - - -

Totalfinancialassetsmeasuredatfairvalue - - - -

Group 2013 2012 Carrying Carrying Amount Fair Value Amount Fair Value RM’000 RM’000 RM’000 RM’000

Financial assets

FinancialassetsAFS - - 2,200 2,200

FinancialassetsHTM

-Non-moneymarketinstruments 47,750 47,750 200,000 200,000

Company 2013 2012 Carrying Carrying Amount Fair Value Amount Fair Value RM’000 RM’000 RM’000 RM’000 Financial assets

FinancialassetsAFS - - - -

FinancialassetsHTM

-Non-moneymarketinstruments 47,750 47,750 - -





Itisnotpracticaltoestimatethefairvalueoftheunquotedsharesduetoabsenceofanactivemarket.However,theDirectorsdonotanticipatethe carryingamountrecordedatthereportingdatetobesignificantlydifferentfromthevaluethatwouldeventuallybereceived.

Themethodsandassumptionsusedtoestimatethefairvaluesofthesefinancialinstrumentsnotcarriedatfairvalueareasfollows:

(i) Securities HFT, securities AFS and securities HTM

Theestimatedfairvaluesaregenerallybasedonquotedandobservablemarketprices.Wheresuchquotedorobservablemarketpricesarenot available,thefairvaluesareestimatedusingpricingmodels,discountedcashflowtechniquesornettangibleassetbackingoftheinvesteewhere applicable.Wherethediscountedcashflowtechniqueisused,theexpectedfuturecashflowsarediscountedusingmarketinterestratesforsimilar instruments.

Fairvalueofembeddedderivativesarederivedusingthebinomiallatticeapproachwhereapplicable.

(ii) Cash and cash equivalents, trade, loan and other receivables, trade and other payables, deposits from customers and deposits and placements of banks and other financial institutions

Thecarryingamountsapproximatefairvaluebecauseoftheshortmaturityoftheseinstruments.

42. SIGNIFICANT AND SUBSEQUENT EVENTS

On15June2012,theCompanyannouncedthat:

(i) It had entered into a conditional share purchase agreement with Kenanga Investment Bank Berhad (“KIBB“) and K & N Kenanga Holdings Berhad (“KNKH“) for the disposal of its entire equity interest in ECM Libra Investment Bank Berhad (“ECMLIB”) to KIBB for a total disposal considerationofRM875,114,000(“ProposedDisposal”);and

(ii) PursuanttotheProposedDisposal,ECMLIBsimultaneouslyenteredintoabusinessmergeragreementwithKIBBfortheproposalbusinessmerger ofthebusinessesofECMLIBandKIBB(“ProposedBusinessMerger”).

Inconjunctionwithandarisingfromtheabove,theCompanyalsoannouncedthatitproposedtoundertakeacapitalrestructuringasfollows:

(i) Proposed capital repayment to its shareholders comprising a total of RM442,647,000 in cash, 120,000,000 KNKH shares and RM47,750,000 Redeemable Non-convertible Unsecured Loan Stocks (“RULS”) issued by KNKH via a reduction of the par value of the existing shares of the Companybyanamounttobedetermined,inaccordancewithSection64oftheCompaniesAct,1965(“ProposedCapitalRepayment”);

(ii) ProposedsharesplitinvolvingthesubdivisionofitssharesaftertheProposedCapitalRepayment,tofacilitatetheProposedShareConsolidation (asdefinedbelow)(“ProposedShareSplit”);and

(iii) ProposedconsolidationoftheCompany’ssharesaftertheProposedShareSplitresultingintheCompanyhavingareducedissuedandpaid-up sharecapitaltakingintoaccounttheProposedDisposalandtheProposedCapitalRepayment(“ProposedShareConsolidation”),

(collectivelyreferredtoasthe“Proposals”).



42. SIGNIFICANT AND SUBSEQUENT EVENTS (continued)

AttheExtraordinaryGeneralMeetingoftheCompanyheldon31July2012,theshareholdershadapprovedalltheProposals.

On 14 December 2012, the Proposed Disposal and Proposed Business Merger were completed.The Proposed Capital Repayment shall be based ontheclosingpriceofKNKHsharesofRM0.585perKNKHshareon14December2012(“CapitalRepayment”)resultinginatotalCapitalRepaymentof RM560,597,000.

Theresultantissuedandpaid-upsharecapitaloftheCompanywouldbeRM268,222,091comprising268,222,091sharesofRM1.00each.

SubsequenttoobtainingtheorderoftheHighCourtofMalayaon7February2013,on28February2013,theCompanyfiledthecourtorderforcapital reductionwiththeCompaniesCommissionofMalaysiaforthecapitalreductiontotakeeffectaccordingly.

On 14 March 2013, the Company completed the distribution of the cash and KNKH shares, and allotted the consolidated shares to the entitled shareholders.

TheCapitalRepaymentexerciseisontracktobecompletedupondistributionoftheRULSon4April2013.

43. SUPPLEMENTARY INFORMATION - BREAKDOWN OF RETAINED PROFITS INTO REALISED AND UNREALISED

ThebreakdownoftheretainedprofitsoftheGroupandoftheCompanyasat31January2013 intorealisedandunrealisedprofits ispresented inaccordancewiththedirectiveissuedbyBursaMalaysiaSecuritiesBerhaddated25March2010andpreparedinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLosses in theContextofDisclosurePursuant toBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants.


TotalretainedprofitsoftheGroupanditssubsidiaries

-Realised 87,010 64,835 93,166 30,949

-Unrealised 489 (3,322) 82 -

87,499 61,513 93,248 30,949

Totalshareofretainedprofitsfromassociatedcompanies

-Realised 9,002 600 - -

96,501 62,113 93,248 30,949

Add:Consolidationadjustments (15,263) 1,940 - -

Retainedprofitsasperfinancialstatements 81,238 64,053 93,248 30,949


other information

1. MATERIAL CONTRACTS

Saveasdisclosedbelow,therearenomaterialcontractsincludingcontractsrelatingtoloans(notbeingcontractsenteredintointheordinarycourseofbusiness)whichhadbeenenteredintobytheCompanyanditssubsidiariesinvolvingDirectors’andmajorshareholders’interests,eitherstillsubsistingattheendofthefinancialyearorenteredintosincetheendofthepreviousfinancialyear:

TheCompanyhadon15June2012enteredintoaconditionalsharepurchaseagreementwithKenangaInvestmentBankBerhad(“KIBB”)andK&NKenangaHoldingsBerhad(“KNKH”)forthedisposalbytheCompanyoftheentireissuedandpaid-upsharecapitalofECMLibraInvestmentBankBerhad(“ECMLIB”)comprising513,000,000ordinarysharesofRM1.00eachtoKIBB(“Disposal”)foratotalconsiderationofRM875,114,000(“Consideration”).PursuanttotheDisposal,ECMLIBsimultaneouslyenteredintoabusinessmergeragreementwithKIBBforthetransferofECMLIB’sentirebusinessasagoingconcern(includingsubstantiallyalltheassetsandliabilities)toKIBBbywayofavestingordertobeobtainedfromtheHighCourtinMalaya(“BusinessMerger”)ataconsiderationequivalenttotheConsideration.

TheConsiderationistobesatisfiedinthefollowingmanner:

(i) RM659,614,000payablebyKIBB;(ii) IssuanceofRM95,500,000nominalvalueofRedeemableNon-convertibleUnsecuredLoanStocksbyKNKH;and(iii) Issuanceof120,000,000newordinarysharesofRM1.00eachinKNKHatanissuepriceofRM1.00eachbyKNKH.

Mr.LumSingFaiisaDirectorintheCompanyandECMLIBrepresentingtheinterestofAmcorpGroupBerhad,amajorshareholder.AmcorpGroupBerhadisapersonconnectedwithTanSriDato’AzmanbinHashim.TanSriDato’AzmanbinHashim,anindirectmajorshareholderintheCompany,isdeemedinterestedintheDisposalandBusinessMergerbyvirtueofhisbrother,EncikAbdulAzizbinHashim,beingadirectorandshareholderofKNKH.EncikAbdulAzizbinHashim,togetherwithhisdaughter,hasdirectandindirectinterestsinthesharesofKNKH.

TheDisposalandBusinessMergerwerecompletedon14December2012.

2. NON-AUDIT FEES

Theamountofnon-auditfeespaidandpayablebytheCompanyanditssubsidiariestotheexternalauditorsforthefinancialyearended31January 2013wasRM43,335.

3. SHARE BUY-BACK FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2013

TheCompanydidnotpurchaseanyofitssharesfromtheopenmarketduringthefinancialyearended31January2013andon1October2012,the Companycancelled2,082,862ofitssharesheldastreasuryshares.

4. SANCTIONS/PENALTIES

TherewerenopublicsanctionsormaterialpenaltiesimposedontheCompanyand/oritssubsidiaries,directorsormanagementbyanyregulatoryauthorityduringthefinancialyearended31January2013.


5. DIRECTORS’ INTERESTS AS AT 29 MARCH 2013

Subsequenttothefinancialyearended31January2013,thedirectors’interestsintheshares/optionsoftheCompanyand/oritsrelatedcorporations areasfollows:

Direct interest Deemed interest Number of % Number of % Name of directors shares/options* shares/options*

Dato’SeriKalimullahbinMasheerulHassan 10,669,640 3.98 - - 9,396,000* - - -

Dato’Ab.HalimbinMohyiddin 64,800* - - -

MrLimKianOnn 46,000,519 17.15 1,437,163# 0.54

9,396,000* - - -

DatukKamarudinbinMdAli 64,800* - - -

Dato’OthmanbinAbdullah 64,800* - - -

EnMahadzirbinAzizan 64,800* - - -

Note:

* The options over ordinary shares were granted pursuant to the Company’s Employees’ Share Option Scheme

# Indirect interest through spouse pursuant to Section 134(12)(c) of the Companies Act, 1965

6. ANALYSIS OF SHAREHOLDERS AS AT 29 MARCH 2013

Authorisedsharecapital :RM1,500,000,000.00

Issued&paid-upcapital :RM268,222,091

Classofshares :OrdinarySharesofRM1.00

Votingrights

-onshowofhands :1vote

-onapoll :1voteforeachshareheld

other informationcontinued


6. ANALYSIS OF SHAREHOLDERS AS AT 29 MARCH 2013 (continued)

Distribution schedule of shareholdings:

Size of holdings Number of shareholders % Number of shares %

Lessthan100 5,341 30.67 155,722 0.06

100–1,000 5,676 32.59 2,328,776 0.87

1,001–10,000 5,124 29.42 16,024,566 5.97

10,001–100,000 1,129 6.48 29,481,161 10.99

100,001–lessthan5%ofissuedshares 142 0.82 103,047,432 38.42

5%andaboveofissuedshares 4 0.02 117,184,434 43.69

17,416 100.00 268,222,091 100.00

Thirty Largest Shareholders:

Name of shareholders Number of shares %

1. AmsecNominees(Tempatan)SdnBhd 43,506,036 16.22 -FulcrumAssetManagementSdnBhdforEquityVisionSdnBhd

2. KenangaNominees(Tempatan)SdnBhd 32,962,626 12.29 -PledgedSecuritiesAccountforLimKianOnn

3. CitigroupNominees(Asing)SdnBhd 24,201,598 9.02 -exemptanforCitibankNA,Singapore(JuliusBaer)

4. HikkayaJayaSdnBhd 16,514,174 6.16

5. LimKianOnn 13,037,893 4.86

6. AmsecNominees(Tempatan)SdnBhd 10,669,640 3.98 -PledgedSecuritiesAccount–AmBank(M)BerhadforKalimullahbinMasheerulHassan

7. SumberamaSdnBhd 5,215,031 1.94

8. MalaysiaNominees(Tempatan)SendirianBerhad 5,011,201 1.87 -PledgedSecuritiesAccountforGooiSeongGum

9. Arab-Malaysian(CSL)SdnBhd 4,397,533 1.64

10. CitigroupNominees(Tempatan)SdnBhd 3,734,378 1.39 -exemptanforOCBCSecuritiesPrivateLimited

11. LimSuTong@LimCheeTong 3,636,270 1.36




Thirty Largest Shareholders:

Name of shareholders Number of shares %

12. UOBKayHianNominees(Tempatan)SdnBhd 2,810,291 1.05 -exemptanforUOBKayHianPteLtd

13. CitigroupNominees(Asing)SdnBhd 2,509,434 0.94 -exemptanforUBSAGSingapore

14. CitigroupNominees(Asing)SdnBhd 2,352,950 0.88 -CBNYforDimensionalEmergingMarketsValueFund

15. Multi-PurposeHoldingsBerhad 2,346,771 0.87

16. ECMLNominees(Tempatan)SdnBhd 2,168,252 0.81 -PledgedSecuritiesAccountforCIMBIslamicTrusteeBerhadforLibraValueOpportunityFund

17. CimsecNominees(Tempatan)SdnBhd 2,032,712 0.76 -exemptanforCIMBSecurities(Singapore)PteLtd

18. AmcorpGroupBerhad 2,026,830 0.76

19. ECMLNominees(Tempatan)SdnBhd 1,938,907 0.72 -LibraInvestBerhadforECMLibraFoundation

20. CartabanNominees(Asing)SdnBhd 1,566,131 0.58 -SSBTFundJ728forSPDRS&PEmergingAsiaPacificETF

21. YuKokAnn 1,469,561 0.55

22. QuekSiowLeng 1,437,163 0.54

23. YapSookChin 1,200,000 0.45

24. CitigroupNominees(Asing)SdnBhd 1,186,120 0.44 -exemptanforOCBCSecuritiesPrivateLimited

25. TanKimKee@TanKee 1,181,212 0.44

26. SooNgikGee@SooYehJoo 1,160,595 0.43

27. SharikatKimLoongSendirianBerhad 1,019,516 0.38

28. ECMLNominees(Tempatan)SdnBhd 897,627 0.33 -PledgedSecuritiesAccountforGanKongHiok

29. MegaFirstHousingDevelopmentSdnBhd 857,593 0.32

30. ECMLNominees(Tempatan)SdnBhd 786,406 0.29 -PledgedSecuritiesAccountforNgBoonHock





Substantial Shareholders: Direct interest Deemed interest Name of shareholders Number of shares % Number of shares %

MrLimKianOnn 46,000,519 17.15 1,437,163(1) 0.54

HikkayaJayaSdnBhd 16,514,174 6.16 - -

EquityVisionSdnBhd 43,506,036 16.22 - -

TanSriDato’AzmanbinHashim - - 66,444,573(2) 24.77

AmcorpGroupBerhad 2,026,830 0.76 20,911,707(3) 7.80

AmcorpCapitalMarketsSdnBhd - - 20,911,707(3) 7.80

ClearGoalSdnBhd - - 22,938,537(4) 8.55

Note:

(1) Indirect interest through spouse pursuant to Section 134(12)(c) of the Companies Act, 1965

(2) Deemed interest of 24.77% by virtue of Section 6A of the Companies Act, 1965 held through Amcorp Group Berhad (2,026,830), Hikkaya Jaya Sdn Bhd (16,514,174), Arab-Malaysian (CSL)

Sdn Bhd (4,397,533) and Equity Vision Sdn Bhd (43,506,036)

(3) Deemed interest of 7.80% by virtue of Section 6A of the Companies Act, 1965 held through Hikkaya Jaya Sdn Bhd (16,514,174) and Arab-Malaysian (CSL) Sdn Bhd (4,397,533)

(4) Deemed interest of 8.55% by virtue of Section 6A of the Companies Act, 1965 held through Amcorp Group Berhad (2,026,830), Hikkaya Jaya Sdn Bhd (16,514,174) and Arab-Malaysian

(CSL) Sdn Bhd (4,397,533)

7. PROPERTIES Built up Age of Net book Description/ area property value Date of Location & Description Existing use Tenure (sq. ft.) (years) (RM’000) acquisition

BangunanECMLibra Building Freehold 48,115 17 15,707 08.09.2004 Centre&EastWings 8JalanDamansaraEndah DamansaraHeights 50490KualaLumpur


I/We (NRICNo./Co.No.)

of beingamember/membersofECMLibra

FinancialGroupBerhadherebyappoint (NRICNo.)

of

orfailinghim/her (NRICNo.)

of

orfailinghim/her,theChairmanofthemeetingasmy/ourproxy/proxiestovoteforme/usonmy/ourbehalfattheEighthAnnualGeneralMeeting

(“8thAGM”)oftheCompanytobeheldatGroundFloor,EastWing,BangunanECMLibra,8JalanDamansaraEndah,DamansaraHeights,50490Kuala

LumpuronThursday,23May2013at10.00a.m.andatanyadjournmentthereof.

My/Ourproxy/proxiesis/aretovoteeitheronshowofhandsoronapollasindicatedbelowwithan“X”:

Datedthis_________dayof_________________2013

____________________________________

Signature(s)/CommonSealofMember(s)

Notes

1. OnlyadepositorwhosenameappearsintheRecordofDepositorsoftheCompanyasat17May2013shallberegardedasamemberentitledtoattend,speakandvote,andappointaproxytoattend,speakandvoteonhis/herbehalf,atthe8thAGM.

2. Amemberentitledtoattendandvoteattheabovemeetingisentitledtoappointnotmorethantwo(2)proxiestoattendandvoteinhisstead.WhereamemberoftheCompanyisanexemptauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act1991whichholdsordinarysharesintheCompanyformultiplebeneficialownersinone(1)securitiesaccount(“OmnibusAccount”),thereisnolimittothenumberofproxieswhichtheexemptauthorisednomineemayappointinrespectofeachOmnibusAccountitholds.AproxymaybutneednotbeamemberoftheCompanyandtheprovisionsofSection149(1)(a)and(b)oftheCompaniesAct,1965shallnotapplytotheCompany.

3. Whereamemberappointsmorethanone(1)proxytoattendthemeeting,themembershallspecifytheproportionofhisshareholdingstoberepresentedbyeachproxy.

4. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or if the appointer is acorporation,eitherunderitscommonsealorunderthehandofadulyauthorisedofficerorattorneyofthecorporation.

5. The Form of Proxy must be deposited at the Registered Office of the Company at 2nd Floor, West Wing, Bangunan ECM Libra, 8 Jalan Damansara Endah,DamansaraHeights,50490KualaLumpurnotlessthan48hoursbeforethetimeappointedforholdingthemeetingoradjournedmeeting.

RESOLUTIONS FOR AGAINST

1. Toreceivetheauditedfinancialstatementsandreports

2. ToapprovethepaymentofDirectors’fees

3. Tore-electEnMahadzirbinAzizanasDirector

4. Tore-appointMessrsErnst&YoungasAuditorsoftheCompanyandauthorisetheDirectorstofixtheirremuneration

5. ToapprovetheAuthoritytoDirectorstoIssueShares

6. ToapprovetheProposedAmendmentstotheArticlesofAssociation

Forappointmentoftwoproxies,percentageofshareholdingstoberepresentedbytheproxies:

No. of shares Percentage

Proxy 1

Proxy 2

Total 100%

Number of shares held

ECM Libra Financial Group Berhad (713570-K)(IncorporatedinMalaysia)

FORM OF PROXY

AFFIXSTAMP

CompanySecretaryECM Libra Financial Group Berhad (713570-K)

2ndFloor,WestWing,BangunanECMLibra,8JalanDamansaraEndah,DamansaraHeights,50490KualaLumpur.

Documents

Laporan Tahunan 2013 Annual Report - ECM Libra