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The annual report of MK Land Holdings Berhad for the year ended 30th June 2008 presented

director’s report, director’s statements, statutory declaration, auditors’ report, and financial
statement.

S 169(5) :
The Directors present their Report together with the audited financial statements of the Group
and of the Company for the year ended 30th June 2008.
In accordance with a resolution of the Board of Directors ,dated 23th October 2008
Y. Bhg. Tan Sri Datuk Hj. Mustapha Kamal Bin Hj. Abu Bakar
• Re-designated as Chairman and Chief Executive Officer
Y. Bhg. Datuk Kasi A/L K.L. Palaniappan
• Re-designated as Non-Independent Non-Executive Director
Y. Bhg. Dato’ Mohamad Nor Bin Mohamad
• Independent Non-Executive Director
Mr. Hong Hee Leong
• Independent Non-Executive Director
Pn. Hajjah Felina Binti Tan Sri Datuk Hj. Mustapha Kamal
• Non-Independent Non-Executive Director
Pn. Hajjah Fazwinna Binti Tan Sri Datuk Hj. Mustapha Kamal
(Alternate to Pn. Hajjah Felina Binti Tan Sri Datuk Hj. Mustapha Kamal)
The report was signed by them.

S169(6)(a) DIRECTOR:
The names of the directors of the Company in office since the date of the last report and at the
date of this report are:
Tan Sri Datuk Hj. Mustapha Kamal bin Hj. Abu Bakar
Datuk Kasi a/l K. L. Palaniappan
Dato’ Mohamad Nor bin Mohamad
Hong Hee Leong
Felina binti Tan Sri Datuk Hj. Mustapha Kamal
Fazwinna binti Tan Sri Datuk Hj. Mustapha Kamal
(alternate to Felina binti Tan Sri Datuk Hj. Mustapha Kamal)
Ahmad Khalif bin Tan Sri Datuk Hj. Mustapha Kamal (Resigned on 8.8.2008)
(alternate to Tan Sri Datuk Hj. Mustapha Kamal bin Hj. Abu Bakar)
S169(6)(b) PRINCIPAL ACTIVITIES:
The principal activities of the Company are those of investment holding and the provision of
management services.

The principal activities of the subsidiaries are described in Note 16 to the financial statements.

There have been no significant changes in the nature of these principal activities during the
financial
year.

S169(6)(c) RESULTS:
Group Company
RM’000 RM’000
(Loss)/profit for the year (60,878) 11,477

S 169(6)(d) RESERVES AND PROVISIONS:


There were no material transfers to or from reserves or provisions during the financial year
other than as disclosed in the statements of changes in equity.

S 169(6)(f)(i) DIRECTOR’S BENEFITS:


Neither at the end of the financial year, nor at any time during that year, did there subsist any
arrangement to which the Company was a party, whereby the directors might acquire benefits
by means of the acquisition of shares in or debentures of the Company or any other body
corporate.

S 169(6)(f)(ii)
There is no statement explaining the effect of the above arrangements and giving the names of
the persons who at any time in that year were directors of the conpany and held,or whose
nominees held,shares or debentures acquired under such arrangements.
S 169(8)
Since the end of the previous financial year, no director has received or become entitled to
receive a benefit (other than benefits included in the aggregate amount of emoluments
received or due and receivable by the directors as shown in Note 7 to the financial statements
or the fixed salary of a full–time employee of the Company) by reason of a contract made by
the Company or a related corporation with any director or with a firm of which he is a
member, or with a company in which he has a substantial financial interest.

S169(6)(g) DIRECTOR’S INTEREST IN SHARES:


Tan Sri Datuk Hj. Mustapha Kamal bin Hj. Abu Bakar and Datuk Kasi a/l K. L. Palaniappan
by virtue of their interests in the shares of the Company are also deemed interested in shares
of all the Company’s subsidiaries to the extent the Company has an interest.

None of the other directors in office at the end of the financial year had any interest in the
shares or warrants of the Company or its related corporations during the financial year.

S169(6)(i) BAD AND DOUBTFUL DEBTS:


Before the Income Statement and Balance Sheet of the Group and of the Company were made
out, the
Directors took reasonable steps:-
(a)To ascertain that proper action had been taken in relation to the writing off of bad debts
and the making of allowance for doubtful debts, and satisfied themselves that all known bad
debts had been written off and that adequate allowance had been made for doubtful debts.

S169(6)(J)
At the date of this Report, the Directors are not aware of any circumstances:-
Which would render the amount written off for bad debts or the amount of the allowance for
doubtful debts in the financial statements of the Group and of the Company inadequate to any
substantial extent.
S 169(6)(k) CURRENT ASSETS:
Before the Income Statement and Balance Sheet of the Group and of the Company were made
out, the Directors took reasonable steps:-
To ensure that any current assets which were unlikely to realize their values as shown in the
accounting records in the ordinary course of business had been written down to an amount
which they might be expected so to realize.

S 169(6)(l)(i)
At the date of this Report, the Directors are not aware of any circumstances:-
Which would render the values attributed to current assets in the financial statements of the
Group and of the Company misleading.

S 169(6)(l)(ii) VALUATION METHOD:


At the date of this Report, the Directors are not aware of any circumstances:-
Which have arisen which render adherence to the existing method of valuation of assets or
liabilities of the Group and of the Company misleading or inappropriate.

S 169(6)(m)(i) CONTIGENT AND OTHER LIABILITIES:


As at the date of this Report:-
(i) there are no charges on the assets of the Group and of the Company which have arisen
since the end
of the year to secure the liability of any other person.

S 169(6)(m)(ii)
As at the date of this Report:-
There are no contingent liabilities in the Group and in the Company which have arisen since
the end of the year other than those arising in the ordinary course of business.
S(169)(6)(n)
No contingent or other liability has become enforceable or is likely to become enforceable
within the period of twelve months after the end of the year which, in the opinion of the
Directors, will or may substantially affect the ability of the Group and of the Company to
meet their obligations as and when they fall due.

S 169(15) STATEMENT BY DIRECTORS:


We, Tan Sri Datuk Hj. Mustapha Kamal bin Hj. Abu Bakar and Datuk Kasi a/l K. L.
Palaniappan, being two of the directors of M K Land Holdings Berhad, do hereby state that, in
the opinion of the directors, the accompanying financial statements set out on pages 47 to 105
are drawn up in
accordance with applicable Financial Reporting Standards in Malaysia and the provisions of
the Companies Act, 1965 so as to give a true and fair view of the financial position of the
Group and of the Company as at 30 June 2008 and of the results and the cash flows of the
Group and of the
Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 23
October 2008.

S 169(16) STATUTORY DECLARATION:


I, Lau Shu Chuan, being the officer primarily responsible for the financial management of M
K Land Holdings Berhad, do solemnly and sincerely declare that the accompanying financial
statements set out on pages 47 to 105 are in my opinion correct, and I make this solemn
declaration conscientiously believing the same to be true and by virtue of the provisions of the
Statutory Declarations Act, 1960.

S 174(2)(a)
In our opinion, the financial statements have been properly drawn up in accordance with
Financial Reporting Standards and the Companies Act 1965 in Malaysia so as to give a true
and fair view of the financial position of the Group and of the Company as at 30 June 2008
and of their financial performance and cash flows of the Group and of the Company for the
year then ended.

S 174(2)(b)
The accounting and other records and the registers required by the Act to be kept by the
Company and by the subsidiary companies of which we have acted as auditors have been
properly kept in accordance with the provisions of the Act.
S 174(2)(c)
Satisfied that the accounts of the subsidiaries that have been consolidated with the financial
statements of the Company are in form and content appropriate and proper for the purposes of
the preparation of the consolidated financial statements and we have received satisfactory
information and explanations required by us for those purposes.

The auditors’ reports on the accounts of the subsidiaries were not subject to any qualification
and did not include any comment required to be made under Section 174(3) of the Act.

FRS 101/66 BALANCE SHEET:


In Balance Sheet Accounts,there is property,plant and equipment,Intangible
Assets,Investments,Inventories,Trade debtors or other receivables,cash and cash
equivalents.trade creditors and other payables.tax liabilities and tax assets,
provisions,minority interest, issued capital and reserves and net profit or losses for the
period.But there is no non-current interest-bearing liabilities.

FRS 101/75 INCOME STATEMENT:


The face of income statement include line items which present the following
accounts:Revenue,The result of operating activities,Finance costs,Share of profits and losses
of associates ventures,tax, profit and losses from ordinary activities, Net profit or losses for
the period.

FRS 101/85
The amount of dividend per share declared or proposed for the period is disclosed either on
the face of Income Statement or in the notes to the statement.

FRS 107/10 CASH FLOW STATEMENTS:


Cash flow statement reports during the period for the MK Land Holdings Berhad is classified
by Operating activities,Investing activities and Financing activities.

S 166A,FRS 101/94
Publish accounts contain statement to the effect that they are in compliance with the
Financial Reporting Standards,statement of the measurement basis and accounting policies
applied and the supporting information for items presented on the face of each financial
statement is presented.
FRS 101/97(a), FRS 101/97(b)
The accounting policies section of the notes to financial statement describe the the
measurement or bases used in preparing financial statement and the each specific accounting
policy that is necessary for a proper understanding on Financial Statement.

FRS 108/59
Change in accounting policy has a material effect on the current period and it should be
disclosed with the reason for change and the amount adjustment recognized in the net profit or
loss in the current period.

9th sch2(1)(h)
The fixed assets are classified separately under headings appropriate to the company’s
bussiness.

9th sch(1)(i)((i)
The followings are disclosed under separate headings:Land and
Buildings,Freehold,Leasehold,Plant and Machinery,Other categories of assets,suitably
identified and the Accumulated depreciation.

9th sch2(1)(i)(ii), FRS 116/78


The financial statement disclose for each classes of property,plant and equipment:The
measurement bases used for determining the gross carrying amount,The deprecition method
used,The useful lives,The gross carrying amount,accumulated depreciation and accumulated
impairment losses at the beginning and end of the period and also the a reconciliation of the
carrying amount at the beginning and end of the period showing the additions,disposals and
the acquisition through bussiness combinations.
9th sch2(i)(ii), FRS 116/82
When items of property,plant and equipment are stated at revalued amount the following are
disclosed:The enterprise’s policy on revaluation and the basis used to revalue the assets.But
the effective date of revaluation and whether an external valuer was involved is not disclosed.

9th sch2(1)(i)(iv), FRS 116/79


Financial Statement should disclose the existence and amounts of restrictions on tittle and
property,plant and equipment pledged as security for liabilities and the accounting policy for
the estimated cost of restoring the site of items of property,plant and equipment

9th sch2(i)(vii), FRS 104/15(a)


For each category of fixed assets ,the depreciation method used should be disclosed.

9th sch2(i)(vii), FRS 104/15(b)


The deprecition rates or useful lives is not be disclosed.

9th sch(f)(i), FRS104/15(c)


The depreciation allocated for the period is to be disclosed.

9th sch3(4)(a), FRS 104/15(d)


Tha gros amount of depreciable assets and the related accumulated depreciation has been
disclosed for the each category of fixed assets of MK Land Holdings Berhad Company.
CONCLUSION
In view of the seeming insurmountable challenges being faced by the MK Land Group, the
Board’s blessing to resume the management of MK Land and took over the position of Chief
Executive Officer (CEO) at the end of the financial year. Y. Bhg. Datuk P. Kasi was re-
designated from Managing Director and Chief Executive Officer to Non-Independent Non-
Executive Director and will continue to provide his invaluable support to the MK Land Group
in his capacity as only a member of the Board.

For the financial year under review, MK Land registered for the first time since its inception,
a net loss of RM60.9 million compared to the net profit of RM10.8 million in the previous
financial year.

Reflecting on the financial year under review and looking at the current collapse in the global
financial and commodities markets, it is difficult to have an optimistic view of the year ahead.