(DRB-HICOM) AR 2018 - Part 4 PDF

Contents
Directors’ Report 162
Statements of Comprehensive Income 169
Consolidated Statement of Financial Position 171
Company Statement of Financial Position 173
Consolidated Statement of Changes in Equity 174
Company Statement of Changes in Equity 178
Statements of Cash Flows 179
Notes to the Financial Statements 186
Statement by Directors 367
Statutory Declaration 367
Independent Auditors’ Report 368

DRB-HICOM Annual Report
BERHAD 2018
Directors’
Report
The Directors of DRB-HICOM Berhad hereby submit their report together with the audited financial
statements of the Group and of the Company for the financial year ended 31 March 2018.
PRINCIPAL ACTIVITIES
The Company is an investment holding company with investments in the automotive (including
defence and composite manufacturing), services (including integrated logistics, banking and postal
businesses) and property, asset and construction segments. There was no significant change in these
activities during the financial year.
Information relating to the subsidiary companies, joint ventures and associated companies are
described in Note 3 to the financial statements.
FINANCIAL RESULTS
Group Company
RM’000 RM’000
Net profit/(loss) for the financial year 295,306 (1,199,529)

Attributable to:
Owners of the Company 498,441 (1,278,982)
Holders of Perpetual Sukuk 79,453 79,453
Non-controlling interest (282,588) -
295,306 (1,199,529)
DIVIDENDS
Dividends paid and proposed by the Company since 31 March 2017 was as follows:
RM’000
In respect of the financial year ended 31 March 2017:
Single tier first and final dividend of 1.0 sen per share, paid on 3 October 2017 19,332
The Directors recommend the payment of a single tier first and final dividend of 3.0 sen per share
amounting to RM57,997,112 in respect of the financial year ended 31 March 2018, subject to the
approval of shareholders at the forthcoming Annual General Meeting of the Company.
RESERVES AND PROVISIONS
All material transfers to or from reserves and provisions during the financial year are disclosed in the
financial statements.
162
BERHAD 2018
DIRECTORS’ REPORT (Continued)
SIGNIFICANT EVENTS
The details of significant events are as disclosed in Note 58 to the financial statements.
DIRECTORS OF THE COMPANY
The Directors of the Company who have held office during the period since the beginning of the
financial year to the date of this report are:
Dato’ Mohammad Zainal bin Shaari (Chairman) (Appointed on 13 April 2018)

Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar (Group Managing Director)
Datuk Ooi Teik Huat
Dato’ Ibrahim bin Taib
Dato’ Siti Fatimah binti Daud
Datuk Idris bin Abdullah @ Das Murthy
Tee Beng Thong (Appointed on 1 December 2017)
Sharifah Sofia binti Syed Mokhtar Shah (Appointed on 13 April 2018)
Brig. Gen. (K) Tan Sri Dato’ Sri (Dr.) Haji Mohd (Resigned on 1 April 2018)
Khamil bin Jamil
DIRECTORS’ INTERESTS
According to the Register of Directors’ Shareholdings, particulars of interests of Directors of the Company
who held office at the end of the financial year, in shares of the Company and in its related corporations
were as follows:
Number of ordinary shares

As at As at
1 April 2017 Acquired Disposed 31 March 2018
Holding Company
Etika Strategi Sdn. Bhd.
Direct interest
Brig. Gen. (K) Tan Sri Dato’
Sri (Dr.) Haji Mohd Khamil
bin Jamil 30,000 - - 30,000
Other than as disclosed above, according to the Register of Directors’ Shareholdings, none of the
other Directors of the Company in office at the end of the financial year held any interest in shares in
the Company or its related corporations during the financial year.
163
BERHAD 2018
DIRECTORS’ BENEFITS
During and at the end of the financial year, no arrangement subsisted to which the Company is a
party, being arrangements with the object or objects of enabling Directors of the Company to acquire
benefits by means of the acquisition of shares in, or debentures of, the Company or any other body
corporate.
Since the end of the previous financial year, no Director has received or become entitled to receive a
benefit (other than emoluments disclosed in Note 7 to the financial statements) by reason of a contract
made by the Company or a related corporation with the Director or with a firm of which the Director is
a member, or with a company in which the Director has a substantial financial interest.
DIRECTORS’ INDEMNITY
Directors’ liability insurance is in place to protect the Directors of the Company against potential costs
and liabilities arising from claims brought against the Directors.
DIRECTORS OF THE SUBSIDIARY COMPANIES
The following is a list of Directors of the subsidiary companies who have held office during the period
since the beginning of the financial year to the date of this report:
Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar Tan Sri Dato’ Dr Mohd Munir bin Abdul Majid
Dato’ Abdul Harith bin Abdullah Tan Sri Dato’ Seri Mohd Zahidi bin Haji
Zainuddin
Dato’ Haji Mohd Redza Shah bin Abdul Wahid Tengku Dato’ Seri Hasmuddin bin Tengku
Othman
Dato’ Md Radzaif bin Mohamed Gen. Tan Sri Dato’ Sri Roslan bin Saad
Dato’ Haji Mohd Zain bin Haji Hassan Dato’ Abdul Hamid bin Sh Mohamed
Dato’ Bahar bin Ahmad Dato’ Azmi bin Abdullah
Dato’ Haji Amril bin Samsudin Dato’ Dr. Adnan bin Alias
Dato’ Azlan bin Shahrim Dato’ Haji Kamil Khalid Ariff
Amalanathan Thomas Dato’ Haji Mohd Izani bin Ghani
Aminah binti Othman Dato’ Hilmi bin Mohd Noor
Hamizan bin Osman Dato’ Ibrahim Mahaludin bin Puteh
Mohammed Shukor bin Ismail Dato’ Lim Tiong Boon
PeerMohamed bin Ibramsha Dato’ Mohamad bin Saif @ Saib
Rohime bin Shafie Dato’ Siti Fatimah binti Daud
Shaharul Farez bin Hassan Dato’ Sri Che Khalib bin Mohamad Noh
Abd Aziz bin Miskon Dato’ Sri Solah bin Mat Hassan
Abdul Rashid bin Musa Dato’ Tung Kok Sing
Ain bin Saim Dato’ Wong Lum Kong
Azman Hanafi bin Abdullah Datuk Idris bin Abdullah @ Das Murthy
Chai Lai Sim Datuk Kamarudin bin Md Ali
David Chan Mun Wai Datuk Lee Chin Yong
Dr. Azura binti Othman Datuk Puteh Rukiah binti Abd Majid
Elias bin Effendy David Castell Arenillas
164
BERHAD 2018
DIRECTORS OF THE SUBSIDIARY COMPANIES (Continued)
since the beginning of the financial year to the date of this report: (Continued)
Fakihah binti Azahari Martin Erdmann Schuler

Ghazali bin Haji Darman Matsuo Hirokazu
Hasnul bin Haniff Naoki Kawaguchi
Ho Chun Foh Shoichi Araya
Kamil Ahmad Merican Nor Azizan bin Tarja @ Tarjo
Koon Chee Wah Shuhaida binti Nun
Lim How Ghee Rin Nan Lun
Mohd Faruk Abdul Karim Rin Nan Yoong
Ng Kong Chin Tang Hon Shan
Wong Yoke Kow (Alternate Director to Dato’ Toshihide Saito (Alternate Director to Shoichi
Wong Lum Kong) Araya)
Tay Inn Meng Jonathan Garwood *
Christopher Michael Adams * Michael Boore *
Dr. Hans Eggenberger * Mohd Aslam Khan bin Farikullah *
Gerhard Meier * Yohan bin Mokhtar *
Richard Hill *
Dato’ Mohd Fuad bin Abd Latiff (Appointed on 1 July 2017)
Azlan bin Ash’ari (Appointed on 21 August 2017)
Datuk Ruhaizah binti Mohamed Rashid (Appointed on 1 September 2017)
Feng Qingfeng (Appointed on 5 September 2017)
Li Donghui (Appointed on 27 September 2017)
Winfried Vahland (Appointed on 27 September 2017)
Yu Ning (Appointed on 27 September 2017)
Hiroshi Hasegawa (Appointed on 1 November 2017)
Tan Sri Dato’ Sri Zamzamzairani bin Mohd Isa (Appointed on 1 December 2017)
Shamsuddin bin Mohamed Yusof (Appointed on 10 December 2017)
Li Chunrong (Appointed on 21 December 2017)
Pang Li Jun (Appointed on 21 December 2017)
Khairul Anuar bin Hasan (Appointed on 5 January 2018)
Al-Ishsal bin Ishak (Appointed on 2 February 2018)
Dato’ Haji Che Pee bin Samsudin (Appointed on 29 March 2018)
Dato’ Ibrahim bin Taib (Appointed on 29 March 2018)
Soo Thean Hin (Appointed on 11 April 2018)
Dato’ Mohammad Zainal bin Shaari (Appointed on 13 April 2018)
Sharifah Sofia binti Syed Mokhtar Shah (Appointed on 13 April 2018)
Heidi Johanna Clay (Appointed on 9 May 2018)
Xu Yuan, Steven (Appointed on 10 May 2018)
Eigo Konya (Appointed on 11 June 2018)
Ahmad Suhaimi bin Endut (Alternate Director to (Ceased on 11 March 2018)
Dato’ Sri Dr. Mohmad Isa bin Hussain)
* The companies of which these Directors have held office ceased to be the subsidiary companies of
the Group during the financial year.
165
BERHAD 2018
DIRECTORS OF THE SUBSIDIARY COMPANIES (Continued)
since the beginning of the financial year to the date of this report: (Continued)
Dato’ Syed Mohamad bin Syed Murtaza (Resigned on 6 April 2017)

Mohd Rani Hisham bin Samsudin (Resigned on 25 April 2017)
Choo Chun Kui (Resigned on 8 May 2017)
Muhammad Noor bin Abd Aziz @ Hashim (Resigned on 19 August 2017)
Dato’ Zainudin bin Che Din (Resigned on 29 September 2017)
Dato’ Ahmad Fuaad bin Mohd Kenali (Resigned on 30 September 2017)
Mazatul ‘Aini Shahar binti Abdul Malek Shahar (Resigned on 26 October 2017)
Dato’ Eshah binti Meor Suleiman (Resigned on 1 November 2017)
Amran bin Mohd Tomin (Resigned on 8 November 2017)
Muhammad Aris bin Anuar (Resigned on 8 November 2017)
Lim Hwa Yu (Resigned on 1 December 2017)
Dato’ Chan Choy Lin (Resigned on 10 December 2017)
Chong Hock Lye (Resigned on 15 December 2017)
Yoshiya Inamori (Resigned on 21 December 2017)
Dato’ Mohd Shukrie bin Mohd Salleh (Resigned on 31 December 2017)
Dato’ Khalid bin Abdol Rahman (Resigned on 5 January 2018)
Adi Asri bin Baharom (Resigned on 24 January 2018)
Azwan bin Sulaiman (Resigned on 6 February 2018)
Loo Hon Kok (Resigned on 6 February 2018)
Dato’ Sri Dr. Mohmad Isa bin Hussain (Resigned on 11 March 2018)
Syed Alwi bin Mohamed Sultan (Resigned on 30 March 2018)
Datuk Mohamed Razeek bin Md Hussain Maricar (Resigned on 30 March 2018)
Norahmadi bin Sulong (Resigned on 30 March 2018)
Brig. Gen. (K) Tan Sri Dato’ Sri (Dr.) Haji Mohd (Resigned on 1 April 2018)
Khamil bin Jamil
Ainol Azmil bin Abu Bakar (Resigned on 11 April 2018)
Varsha Chandrukar (Resigned on 9 May 2018)
Mohd Khalid bin Yusof (Resigned on 10 May 2018)
Takeshi Mishina (Resigned on 11 June 2018)
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS
Before the statements of comprehensive income and statements of financial position were made out,
the Directors took reasonable steps:
(a) to ascertain that action had been taken in relation to the writing off of bad debts and the
making of allowance for doubtful debts and had satisfied themselves that all known bad debts
had been written off and that adequate allowance had been made for doubtful debts; and
(b) to ensure that any current assets which were unlikely to realise their values as shown in the
accounting records of the Group and of the Company in the ordinary course of business had
been written down to an amount which they might be expected so to realise.
166
BERHAD 2018
STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS (Continued)
At the date of this report, the Directors are not aware of any circumstances:
(a) which would render the amounts written off for bad debts or the amounts of the allowance for
doubtful debts made in the financial statements of the Group and of the Company inadequate
to any substantial extent;
(b) which would render the values attributed to current assets in the financial statements of the
Group and of the Company misleading; and
(c) which have arisen which would render adherence to the existing method of valuation of assets
or liabilities of the Group and of the Company misleading or inappropriate.
No contingent or other liability has become enforceable or is likely to become enforceable within the
period of 12 months after the end of the financial year which, in the opinion of the Directors, will or may
substantially affect the ability of the Group or of the Company to meet their obligations as and when
they fall due.
At the date of this report, there does not exist:
(a) any charge on the assets of the Group and of the Company which has arisen since the end of
the financial year which secures the liability of any other person; or
(b) any contingent liability of the Group and of the Company which has arisen since the end of the
financial year.
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in
this report or the financial statements of the Group and of the Company which would render any
amount stated in the financial statements misleading.
In the opinion of the Directors, other than as disclosed in the financial statements:
(a) the results of the Group’s and of the Company’s operations during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature; and
(b) there has not arisen in the interval between the end of the financial year and the date of this
report any item, transaction or event of a material and unusual nature likely to substantially
affect the results of the operations of the Group or of the Company for the financial year in
which this report is made.
HOLDING COMPANY
The Directors regard Etika Strategi Sdn. Bhd., a company incorporated in Malaysia, as the holding
company.
167
BERHAD 2018
AUDITORS
The auditors’ remuneration are disclosed in Note 6 to the financial statements.
The auditors, Ernst & Young have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 10 July 2018.
DATO’ MOHAMMAD ZAINAL BIN SHAARI

Chairman
DATO’ SRI SYED FAISAL ALBAR BIN SYED A.R. ALBAR

Group Managing Director
168
BERHAD 2018
Statements of
Comprehensive Income
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Revenue 4 12,789,677 12,058,334 1,069,412 897,315

Cost of sales 5 (11,193,896) (10,556,030) - -
Gross profit 1,595,781 1,502,304 1,069,412 897,315
Other income
- grant income 1,100,000 - - -
- gain on disposals of subsidiary
companies (net) 53(ii) - 398,257 449,898 -
- others 639,738 439,248 80,589 15,437
Selling and distribution costs (312,911) (343,907) - -
Administrative expenses (1,633,524) (1,410,457) (42,254) (32,154)
Other expenses
- effect of PROTON restructuring 53(i)(b) (595,513) - (32,990) -
- loss on re-measurement of the
previously held equity interest
in an associated company at its
acquisition-date fair value 6 - (130,221) - -
- others (261,925) (561,499) (2,566,172) (363,074)
Finance costs 9 (360,267) (370,905) (139,259) (158,708)
Share of results of joint ventures
(net of tax) 19(d) 402 9,575 - -
Share of results of associated
companies (net of tax) 20(g) 243,349 239,907 - -
Profit/(loss) before taxation 6 415,130 (227,698) (1,180,776) 358,816
Taxation 10 (119,824) (36,894) (18,753) (2,297)
Net profit/(loss) for the financial year 295,306 (264,592) (1,199,529) 356,519
Other comprehensive income/(loss)

Items that will not be reclassified
subsequently to profit or loss:
Fair value adjustment on property,
plant and equipment 2,320 - - -
Net (loss)/gain on valuation of
post-employment benefit
obligations (172) 4,376 - -
Items that will be reclassified
subsequently to profit or loss:
Net gain/(loss) on fair value
changes of investment
securities: available-for-sale 6,537 (4,346) - -
Currency translation differences of
foreign subsidiary companies (9,527) (3,644) - -
Sub-total carried forward (842) (3,614) - -
169
BERHAD 2018
STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH

2018 (Continued)
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000

(Continued)
Sub-total brought forward (842) (3,614) - -
Reclassification adjustments:
Transfer of realised gain on fair
value changes of investment
securities: available-for-sale to
profit or loss upon disposal (23,071) (7,214) - -
Transfer of reserve of foreign
subsidiary companies to profit or
loss upon disposal 86,592 (37,387) - -
for the financial year (net of tax) 62,679 (48,215) - -
Total comprehensive income/(loss)

for the financial year 357,985 (312,807) (1,199,529) 356,519
Net profit/(loss) for the financial

year attributable to:
Owners of the Company 498,441 (456,643) (1,278,982) 276,864
Holders of Perpetual Sukuk 79,453 79,655 79,453 79,655
Holders of Redeemable
Convertible Cumulative
Preference Shares - 40,685 - -
Non-controlling interest 18(g) (282,588) 71,711 - -
295,306 (264,592) (1 ,1 99,529) 356,519
Total comprehensive income/(loss)

for the financial year attributable
to:
Owners of the Company 563,092 (502,369) (1 ,278,982) 276,864
Holders of Perpetual Sukuk 79,453 79,655 79,453 79,655
Holders of Redeemable
Convertible Cumulative
Preference Shares - 40,685 - -
Non-controlling interest (284,560) 69,222 - -
357,985 (312,807) (1 ,1 99,529) 356,519
Basic and diluted earnings/(loss)

per share (sen) 12 25.78 (23.62)
The notes set out on pages 186 to 366 form an integral part of the financial statements.
170
BERHAD 2018
Consolidated Statement of
Financial Position AS AT 31 MARCH 2018
2018 2017
(Restated)
Note RM’000 RM’000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 13 5,939,520 6,463,431
Concession assets 14 209,102 217,152
Prepaid lease properties 15 53,208 50,813
Investment properties 16 248,193 246,889
Land held for property development 17(a) 274,171 1,182,226
Joint ventures 19 298,075 413,826
Associated companies 20 885,404 756,543
Intangible assets 21 1,613,166 1,898,543
Deferred tax assets 22 152,308 147,192
Investment securities: financial assets at fair value
through profit or loss 23(a)
- Banking 161,274 197,208
Investment securities: available-for-sale 23(b)
- Banking 5,553,163 5,040,929
- Non-banking 45,498 46,153
Investment securities: held-to-maturity 23(c)
- Banking 143,730 142,168
Trade and other receivables 29 935,852 264,144
Other assets 24 544 516
Banking related assets
- Financing of customers 25 10,216,425 10,772,103
- Statutory deposit with Bank Negara Malaysia 26 674,500 698,636
27,404,133 28,538,472
CURRENT ASSETS
Assets and disposal groups held for sale 27 518,307 4,500
Inventories 28 1,640,454 2,285,452
Property development costs 17(b) 797,798 140,186
Trade and other receivables 29 3,150,571 3,859,027
Tax recoverable 121,405 198,533
Investment securities: financial assets at fair value
through profit or loss 23(a)
- Non-banking 292 175
Investment securities: available-for-sale 23(b)
- Banking 766,249 1,090,487
- Cash and short-term funds 32 1,587,681 1,049,925
- Financing of customers 25 4,301,547 3,939,713
Short term deposits 30 1,127,871 1,332,531
Cash and bank balances 31 1,706,157 1,544,331
Derivative assets 33 72,968 61,494
15,791,300 15,506,354
TOTAL ASSETS 43,195,433 44,044,826
171
BERHAD 2018
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018 (Continued)
2018 2017
(Restated)
EQUITY AND LIABILITIES
EQUITY
Share capital 34 1,740,302 1,740,302
Reserves 4,993,405 4,331,485
Equity attributable to Owners of the Company 6,733,707 6,071,787
Perpetual Sukuk 35 1,052,026 1,051,839
Redeemable Convertible Cumulative Preference
Shares 36 669,266 1,289,550
Non-controlling interest 18(g) 1,830,873 1,841,137
TOTAL EQUITY 10,285,872 10,254,313
NON-CURRENT LIABILITIES
Deferred income 37 109,596 151,621
Long term borrowings 38 3,465,291 4,105,407
Shares 36 545,107 -
Provision for liabilities and charges 39 116,727 90,556
Provision for concession assets 40 179,938 138,809
Post-employment benefit obligations 41 8,199 37,741
Deferred tax liabilities 22 254,309 210,270
Banking related liabilities
- Deposits from customers 42 617,221 418,615
- Recourse obligation on financing sold to Cagamas 43 485,851 -
5,782,239 5,153,019
CURRENT LIABILITIES
Liabilities relating to disposal groups held for sale 27 135,683 -
Deferred income 37 45,439 48,410
Trade and other payables 44 5,402,012 6,420,740
Provision for liabilities and charges 39 321,215 274,993
Provision for concession assets 40 1,740 6,146
Post-employment benefit obligations 41 593 495
Bank borrowings 45
- Bank overdrafts 9,062 6,511
- Others 2,315,346 2,186,391
Tax payable 10,839 78,815
- Deposits from customers 42 18,778,061 18,979,279
- Deposits and placements of banks and other
financial institutions 46 8,854 561,654
- Bills and acceptances payable 47 9,618 9,196
Derivative liabilities 33 88,860 64,864
27,127,322 28,637,494
TOTAL LIABILITIES 32,909,561 33,790,513
TOTAL EQUITY AND LIABILITIES 43,195,433 44,044,826
172
BERHAD 2018
Company Statement of
Financial Position AS AT 31 MARCH 2018
2018 2017
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 13 74 120
Investment properties 16 130,607 130,654
Subsidiary companies 18 6,639,371 8,393,610
Joint ventures 19 4,686 4,686
Associated companies 20 61,060 61,170
Trade and other receivables 29 159,057 -
6,994,855 8,590,240
CURRENT ASSETS
Trade and other receivables 29 570,511 1,223,107
Short term deposits 30 574,915 223,771
Cash and bank balances 31 1,842 33,707
1,147,268 1,480,585
TOTAL ASSETS 8,142,123 10,070,825
EQUITY AND LIABILITIES

EQUITY
Share capital 34 1,740,302 1,740,302
Reserves 2,623,674 3,921,988
Equity attributable to Owners of the Company 4,363,976 5,662,290
Perpetual Sukuk 35 1,052,026 1,051,839
TOTAL EQUITY 5,416,002 6,714,129
NON-CURRENT LIABILITIES
Deferred tax liabilities 22 14,845 647
Trade and other payables 44 287,479 -
1,381,203 1,539,035
CURRENT LIABILITIES
Trade and other payables 44 631,785 1,569,910
Bank borrowings - Others 45 711,928 245,631
Tax payable 1,205 2,120
1,344,918 1,817,661
TOTAL LIABILITIES 2,726,121 3,356,696
TOTAL EQUITY AND LIABILITIES 8,142,123 10,070,825
173
BERHAD
DRB-HICOM
Consolidated Statement of
Changes in Equity
Redeemable
Non-distributable
Convertible
Cumulative
Equity Preference Non-
Share Merger Currency Available- Other attributable to Perpetual Shares controlling
Capital Reserve Translation for-sale Reserves Retained Owners of the Sukuk (“RCCPS”) Interest
(Note 34) (Note 48 ) Differences Reserve (Note 49 ) Earnings Company (Note 35) (Note 36 ) (Note 18(g)) Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2018
174
At 1 April 2017 1,740,302 1,212,275 (84,331) (1,358) 500,131 2,707,010 6,074,029 1,051,839 1,289,550 1,723,097 10,138,515
Prio r year’s adjustments 52(i)(d) - - - - - (2,242) (2,242) - - 118,040 115,798
As restated 1,740,302 1,212,275 (84,331) (1,358) 500,131 2,704,768 6,071,787 1,051,839 1,289,550 1,841,137 10,254,313
Net profit/(loss) for the
financial year - - - - - 498,441 498,441 79,453 - (282,588) 295,306
Other comprehensive
income/(loss) for the
financial year, net of tax - - 74,296 (11,639) 1,994 - 64,651 - - (1,972) 62,679
Total comprehensive
income/(loss) for the
financial year - - 74,296 (11,639) 1,994 498,441 563,092 79,453 - (284,560) 357,985
Transactions with Owners
Net issuance of RCCPS - - - - - - - - 250,000 - 250,000
RCCPS Purchase - - - - - (9,315) (9,315) - (340,685) - (350,000)
Distribution to holders of
Perp etual Sukuk - - - - - - - (79,266) - - (79,266)
Reclassification of RCCPS
to financial liability 36 - - - - - - - - (529,599) - (529,599)
Disp osal of a subsidiary
comp any 53(i)(b) - - - - 32,916 (32,916) - - - - -
Sub-total carried forward 1,740,302 1,212,275 (10,035) (12,997) 535,041 3,160,978 6,625,564 1,052,026 669,266 1,556,577 9,903,433
2018
Annual Report
BERHAD
DRB-HICOM
DRB-HICOM BERHAD
(203430-W)
(Incorporated in Malaysia)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018 (Continued)
Redeemable
Non-distributable
Convertible
Cumulative
Capital Reserve Translation for-sale Reserves Retained Owners of the Sukuk (“RCCPS”) Interest
(Note 34) (Note 48) Differences Reserve (Note 49) Earnings Company (Note 35) (Note 36) (Note 18(g)) Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2018 (Continued)
Sub-total brought forward 1,740,302 1,212,275 (10,035) (12,997) 535,041 3,160,978 6,625,564 1,052,026 669,266 1,556,577 9,903,433
(Continued)
175
Effect of change in
shareholding in subsidiary
companies - - 2,744 - 103 124,628 127,475 - - 332,825 460,300
Reclassification of
reserves arising from
dilution of interest in a
subsidiary company - - - - (81,180) 81,180 - - - - -
Effect on deconsolidation
of a subsidiary company
under members’ voluntary
winding up - (65) - - - 65 - - - - -
Transfer of revaluation
gain on disposal of
investment properties - - - - (774) 774 - - - - -
Transfer of subsidiary
companies’ reserves - - - - (397,006) 397,006 - - - - -
Dividend paid/payable to
non-controlling interest - - - - - - - - - (58,529) (58,529)
First and final dividend in
respect of financial year
ended 31 March 2017 11 - - - - - (19,332) (19,332) - - - (19,332)
At 31 March 2018 1,740,302 1,212,210 (7,291) (12,997) 56,184 3,745,299 6,733,707 1,052,026 669,266 1,830,873 10,285,872
14
2018
Annual Report
BERHAD
DRB-HICOM
Redeemable
Non-distributable
Convertible
Cumulative
Capital Share Reserve Translation for-sale Reserves Retained Owners of the Sukuk (“RCCPS”) Interest
(Note 34) Premium (Note 48) Differences Reserve (Note 49 ) Earnings Company (Note 35 ) (Note 36 ) (Note 18(g)) Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2017
At 1 April 2016 1,719,601 20,701 1,000,039 (43,631) 6,749 367,638 3,471,991 6,543,088 1,051,859 - 908,342 8,503,289
176
Prio r year’s adjustments - - - - - - (863) (863) - - 17 (846)
As restated 1,719,601 20,701 1,000,039 (43,631) 6,749 367,638 3,471,128 6,542,225 1,051,859 - 908,359 8,502,443
Transfer of share
premium on 31 January
2017 20,701 (20,701) - - - - - - - - - -
Net (loss)/profit for the
financial year - - - - - - (456,643) (456,643) 79,655 40,685 71,711 (264,592)
Other comprehensive
(loss)/income for the
financial year, net of tax - - - (42,291) (8,107) 4,672 - (45,726) - - (2,489) (48,215)
Total comprehensive
financial year - - - (42,291) (8,107) 4,672 (456,643) (502,369) 79,655 40,685 69,222 (312,807)
Transactions with
Owners
Net issuance of RCCPS - - - - - - - - - 1,248,865 - 1,248,865
Distribution to holders of
Perpetual Sukuk - - - - - - - - (79,675) - - (79,675)
Disposals of subsidiary
companies 53(ii) - - (1,965) - - - 1,965 - - - (27,185) (27,185)
Sub-total carried forward 1,740,302 - 998,074 (85,922) (1,358) 372,310 3,016,450 6,039,856 1,051,839 1,289,550 950,396 9,331,641
2018
Annual Report
BERHAD
DRB-HICOM
DRB-HICOM BERHAD
(203430-W)
Non-distributable Redeemable
Convertible
Cumulative
Capital Share Reserve Translation for-sale Reserves Retained Owners of the Sukuk (“RCCPS”) Interest
(Note 34) Premium (Note 48) Differences Reserve (Note 49 ) Earnings Company (Note 35 ) (Note 36 ) (Note 18(g)) Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2017 (Continued)
Sub-total brought
forward 1,740,302 - 998,074 (85,922) (1,358) 372,310 3,016,450 6,039,856 1,051,839 1,289,550 950,396 9,331,641
Effect on
177
deconsolidation of
subsidiary companies
under creditors’
voluntary winding up - - 214,201 - - 660 (215,456) (595) - - (13,849) (14,444)
Effect of changes in
shareholding/assets in
subsidiary companies - - - 1,591 - 81,072 (11,472) 71,191 - - 419,808 490,999
Effect of change of an
associated company to
a subsidiary company - - - - - (368) 368 - - - 507,426 507,426
Transfer of subsidiary
companies’ reserves - - - - - 46,457 (46,457) - - - - -
Dividend paid to non-
controlling interest - - - - - - - - - - (22,644) (22,644)
First and final dividend in
respect of financial
year ended 31 March
2016 11 - - - - - - (38,665) (38,665) - - - (38,665)
At 31 March 2017 1,740,302 - 1,212,275 (84,331) (1,358) 500,131 2,704,768 6,071,787 1,051,839 1,289,550 1,841,137 10,254,313
The notes set out on pages 186 to 366 form an integral part of the financial statements
16
2018
Annual Report
BERHAD
DRB-HICOM
Company Statement of
Changes in Equity
Non-distributable Distributable Equity

Merger Retained attributable to Perpetual
Share Capital Share Reserve Earnings Owners of the Sukuk
(Note 34) Premium (Note 48) (Note 51) Company (Note 35) Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2018
At 1 April 2017 1,740,302 - 2,318,321 1,603,667 5,662,290 1,051,839 6,714,129
Net (loss)/profit for the financial year representing total comprehensive
178
(loss)/income for the financial year - - - (1,278,982) (1,278,982) 79,453 (1,199,529)
Distribution to holders of Perpetual Sukuk - - - - - (79,266) (79,266)
First and final dividend in respect of financial year ended 31 March
2017 11 - - - (19,332) (19,332) - (19,332)
At 31 March 2018 1,740,302 - 2,318,321 305,353 4,363,976 1,052,026 5,416,002
2017
At 1 April 2016 1,719,601 20,701 2,318,321 1,365,468 5,424,091 1,051,859 6,475,950
Transfer of share premium on 31 January 2017 20,701 (20,701) - - - - -
Net profit for the financial year representing total comprehensive
income for the financial year - - - 276,864 276,864 79,655 356,519
Distribution to holders of Perpetual Sukuk - - - - - (79,675) (79,675)
First and final dividend in respect of financial year ended 31 March
2016 11 - - - (38,665) (38,665) - (38,665)
At 31 March 2017 1,740,302 - 2,318,321 1,603,667 5,662,290 1,051,839 6,714,129
2018
Annual Report
BERHAD 2018
Statements of Cash Flows

Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM OPERATING

ACTIVITIES
Net profit/(loss) for the financial year 295,306 (264,592) (1,199,529) 356,519
Adjustments for non-cash items:
Allowance for doubtful debts (net of
write backs) 2,782 55 - 18
Amortisation of:
- concession assets 11,905 11,819 - -
- intangible assets 193,881 235,184 - -
- prepaid lease properties 1,768 1,393 - -
Depreciation of property, plant and
equipment 706,881 668,337 42 251
Finance costs 360,267 370,905 139,259 158,708
Financing written off 6,684 1,689 - -
Impairment loss of:
- investment in subsidiary
companies - - 2,564,697 360,154
- investment in an associated
company 577 - 110 2,900
- property development costs 40,440 - - -
- property, plant and equipment 25,470 8,049 - -
Inventories written off/down (net of
write backs) 61,584 17,730 - -
Loss on re-measurement of the
previously held equity interest in an
associated company at its
acquisition-date fair value - 130,221 - -
Loss/(gain) on disposals of
subsidiary companies 97,637 (398,257) (449,898) -
Marked to market loss/(gain) on
derivatives (net) 12,522 (54,025) - -
Provision for concession assets 41,129 34,967 - -
Provision for liabilities and charges (net) 165,516 61,218 - -
Taxation 119,824 36,894 18,753 2,297
Write off of:
- property, plant and equipment 4,982 3,729 - -
Sub-total carried forward 2,278,071 992,257 1,073,434 880,847
179
BERHAD 2018
STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2018
(Continued)
Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000
ACTIVITIES (Continued)
Sub-total brought forward 2,278,071 992,257 1,073,434 880,847

Amortisation of deferred income (111,286) (79,125) - -
Dividend income:
- subsidiary companies - - (585,446) (695,159)
- joint venture - - (1,078) (797)
- associated companies - - (112,370) (110,296)
- other investment (202) (1,328) - -
(Gain)/loss on fair value adjustments of:
- investment properties (16,990) (15,647) 47 (6,416)
- investment securities: financial
assets at fair value through profit
or loss (11,086) (4,812) - -
Interest income on:
- short term deposits (71,243) (57,375) (14,328) (8,207)
(Reversal of impairment of)/impairment
of:
- investment securities: available-for-
sale (2,406) 16,899 - -
- prepaid lease properties (26) - - -
Net gain on disposals of:
- assets held for sale - (4,213) - -
- investment properties (712) (68) - (500)
- investment securities: available-for-
sale (35,069) (17,983) - -
- investment securities: financial
assets at fair value through profit
or loss - (907) - -
- property, plant and equipment (16,742) (52,339) (16) -
Share of results of joint ventures (net of
tax) (402) (9,575) - -
Share of results of associated
companies (net of tax) (243,349) (239,907) - -
Unrealised foreign exchange
differences (net) (148,884) 81,915 - -
(Write back)/allowance for financing of
customers (47,815) 75,778 - -
Cash inflow/(outflow) before working

capital changes 1,571,859 683,570 356,740 (17,498)
180
BERHAD 2018
(Continued)
Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000

ACTIVITIES (Continued)
Amounts due from customers on

contracts 243,802 786,893 - -
Amounts due to customers on
contracts 3,174 120,342 - -
Inter-company balances (89,637) 4,937 (415,062) 34,569
Inventories 463,760 (553,065) - -
Property development costs 102,722 (94,022) - -
Trade and other receivables (235,859) 64,782 484 (450)
Trade and other payables (497,477) (542,461) (47,029) (8,294)
Financing of customers 234,975 (479,812) - -
Statutory deposit with Bank Negara
Malaysia 24,136 4,625 - -
Deposits from customers (2,612) 304,239 - -
Deposits and placements of banks
and other financial institutions (552,800) 119,402 - -
Bills and acceptances payable 422 (20,154) - -
Net cash inflow/(outflow) from
operations 1,266,465 399,276 (104,867) 8,327
Interest received 66,659 57,102 13,186 8,930
Dividends received from:
- subsidiary companies - - 185,446 695,159
- joint ventures 19,418 39,281 1,078 797
- associated companies 115,141 134,557 112,370 110,296
- other investment 202 1,328 - -
Finance costs paid (336,889) (355,518) (138,034) (150,844)
Taxation (paid)/refunds, net (56,522) 49,133 (4,809) (339)
Provision for liabilities and charges
paid (96,956) (153,201) - -
Deferred income received 143,836 95,873 - -
Post-employment benefit obligations
paid (561) (14,880) - -
Provision for concession assets paid (4,406) (20,987) - -
Net cash inflow from operating
activities 1,116,387 231,964 64,370 672,326
181
BERHAD 2018
(Continued)
Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisitions of investment securities

by a banking subsidiary company (7,870,260) (8,931,887) - -
Acquisition/subscription of additional
shares in a subsidiary company - (46) (1) -
Additional/new investment in a joint
venture/an associated company - (32,252) - -
Capital repayment by an associated
company - 7,200 - 7,200
Maturity of investment securities - 84,206 - -
Movement in fixed deposits placement
with maturity profile more than 3
months (14,071) 25,154 (17) 10,570
Net cash inflow from acquisitions of
subsidiary companies - 607,037 - -
Net cash inflow from disposals of
subsidiary companies 428,870 496,623 449,898 -
Net cash outflow from deconsolidation
of subsidiary companies - (53) - -
Proceeds from disposals of investment
securities by a banking subsidiary
company 6,813,079 7,944,507 - -
Proceeds from disposals of property,
plant and equipment/investment
properties/assets held for sale 54,008 91,728 20 11,300
Purchases of property, plant and
equipment/concession
assets/prepaid lease
properties/investment
properties/intangible assets (829,863) (818,735) - (41)
Redemptions of investment securities
by a banking subsidiary company 910,720 578,718 - -
Redemption of preference shares by a
joint venture 5,000 5,000 - -
Share subscription in a subsidiary
company by a non-controlling
shareholder 170,300 - - -
Redeemable Convertible Cumulative
Preference Shares (“RCCPS”)
Purchase in a subsidiary company - - (350,000) -
Net cash (outflow)/inflow from
investing activities (332,217) 57,200 99,900 29,029
182
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
(Continued)
Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM FINANCING
ACTIVITIES
Bank balances in Escrow account
arising from RCCPS 2,998 (3,019) - -
Dividends paid to non-controlling
interest (52,662) (22,644) - -
Dividends paid to shareholders (19,332) (38,665) (19,332) (38,665)
Distribution paid to holders of
Perpetual Sukuk (79,266) (79,675) (79,266) (79,675)
Movement in fixed deposits held as
security/sinking fund 211,416 187,893 - -
Net proceeds from issuance of RCCPS 250,000 1,248,865 - -
Proceeds from bank borrowings 3,990,448 5,229,103 400,000 330,000
Proceeds from recourse obligation on
financing sold to Cagamas by a
banking subsidiary company 500,185 - - -
Repayment of borrowings/hire
purchase and finance leases (4,464,308) (5,732,849) (395,080) (658,037)
Repayment of principal for recourse
obligation on financing sold to
Cagamas (14,334) - - -
RCCPS Purchase (350,000) - - -
Loans from subsidiary companies (net
of repayment) - - 248,670 (238,373)
Net cash (outflow)/inflow from
financing activities (24,855) 789,009 154,992 (684,750)
NET INCREASE IN CASH AND

CASH EQUIVALENTS 759,315 1,078,173 319,262 16,605
Effects of foreign currency translation (9,980) (270) - -
CASH AND CASH EQUIVALENTS
AT BEGINNING OF THE
FINANCIAL YEAR 3,022,965 1,945,062 256,936 240,331
CASH AND CASH EQUIVALENTS

AT END OF THE FINANCIAL YEAR 3,772,300 3,022,965 576,198 256,936
(a) Cash and cash equivalents at

end of the financial year
comprise the following:
Short term deposits 1,127,871 1,332,531 574,915 223,771
Cash and bank balances 1,706,157 1,544,331 1,842 33,707
Cash and short-term funds of a
banking subsidiary company 1,587,681 1,049,925 - -
Bank overdrafts (9,062) (6,511) - -
Sub-total carried forward 4,412,647 3,920,276 576,757 257,478
22183
BERHAD 2018
(Continued)
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
(a) Cash and cash equivalents at
end of the financial year
comprise the following:
(Continued)
Sub-total brought forward 4,412,647 3,920,276 576,757 257,478
Less: Fixed deposits held as
security/sinking fund 30(b) (619,249) (830,665) - -
Less: Fixed deposits with
maturity profile more than
3 months 30(a) (25,313) (11,242) (559) (542)
Less: Bank balance in respect of
Automotive Development
Fund (20,486) (19,817) - -
Less: Bank balances in Escrow
account arising from
RCCPS (21) (3,019) - -
Less: Collections held by a
postal subsidiary
company on behalf of
third parties (48,555) (32,568) - -
Add: Cash and cash equivalents
attributable to the
disposal groups held for
sale 73,277 - - -
3,772,300 3,022,965 576,198 256,936
(b) Reconciliation of liabilities arising from financing activities:
The table below details changes in the Group’s and Company’s liabilities arising from financing
activities, including both cash and non-cash changes. Liabilities arising from financing activities
are those for which cash flows were, or future cash flows will be, classified in the Group’s and
Company’s statement of cash flows as cash flows from financing activities.
Recourse
obligation on
Current and financing
Non-current sold to
borrowings Cagamas Total
RM’000 RM’000 RM’000
Group
2018
At beginning of the financial year 6,298,309 - 6,298,309
Net changes from financing cash flows:
Changes in bank overdraft 2,551 - 2,551
Proceeds from bank borrowings 3,990,448 - 3,990,448
Proceeds from recourse obligation on financing
sold to Cagamas - 500,185 500,185
Repayment of bank borrowings (4,464,308) - (4,464,308)
Sub-total carried forward (471,309) 500,185 28,876
184
BERHAD 2018
(Continued)
(b) Reconciliation of liabilities arising from financing activities: (Continued)
Recourse
obligation on
Current and financing
Non-current sold to
borrowings Cagamas Total
RM’000 RM’000 RM’000
Group
2018
Net changes from financing cash flows: (Continued)
Sub-total brought forward (471,309) 500,185 28,876
Repayment of principal for recourse obligation
on financing sold to Cagamas - (14,334) (14,334)
Total net changes from financing cash flows (471,309) 485,851 14,542
Other changes:
Currency translation differences (65,152) - (65,152)
Capitalised transaction costs (12,029) - (12,029)
New hire purchase and finance leases 35,095 - 35,095
Unwinding discounts 4,732 - 4,732
Changes in deferred liability 53 - 53
Total other changes (37,301) - (37,301)
At end of the financial year 5,789,699 485,851 6,275,550
Current and Amount due

Non-current to subsidiary
borrowings companies Total
RM’000 RM’000 RM’000
Company
2018
At beginning of the financial year 1,784,019 1,439,758 3,223,777
Net changes from financing cash flows:
Proceeds from bank borrowings 400,000 - 400,000
Repayment of bank borrowings (395,080) - (395,080)
Repayment of loans to subsidiary companies - (174,613) (174,613)
Advance/loans from subsidiary companies - 92,656 92,656
Finance costs paid - (45,345) (45,345)
Total net changes from financing cash flows 4,920 (127,302) (122,382)
Other changes:
Capital reduction - (478,690) (478,690)
Finance costs - 38,404 38,404
Unwinding discounts 1,868 - 1,868
Total other changes 1,868 (440,286) (438,418)
At end of the financial year 1,790,807 872,170 2,662,977
185
BERHAD 2018
Notes to the
Financial Statements 31 MARCH 2018
1 CORPORATE INFORMATION
The Company is an investment holding company with investments in the automotive (including
defence and composite manufacturing), services (including integrated logistics, banking and
postal businesses) and property, asset and construction segments. There was no significant
change in these activities during the financial year.
The principal activities of the subsidiary companies, joint ventures and associated companies
are described in Note 3.
The Directors regard Etika Strategi Sdn. Bhd., a company incorporated in Malaysia, as the
holding company.
The Company is a public limited liability company, incorporated and domiciled in Malaysia,
and listed on the Bursa Malaysia Securities Berhad.
The address of the registered office and principal place of business of the Company is Level
5, Wisma DRB-HICOM, No. 2, Jalan Usahawan U1/8, Seksyen U1, 40150 Shah Alam,
Selangor Darul Ehsan, Malaysia.
These financial statements are presented in Ringgit Malaysia (“RM”), which is the Group’s and
Company’s functional currency. All the financial information is presented in RM and has been
rounded to the nearest thousand, unless otherwise stated.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies, unless otherwise stated below, have been used consistently
in dealing with items which are considered material in relation to the financial statements:
2.1 Basis of preparation
The financial statements comply with the provisions of the Companies Act 2016 and
Financial Reporting Standards (“FRSs”) in Malaysia.
The financial statements of the Group and of the Company are prepared under the
historical cost convention except for those that are disclosed in this summary of
significant accounting policies.
The preparation of financial statements in conformity with the provisions of the

Companies Act 2016 and FRSs in Malaysia, requires the use of certain critical
accounting estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reported
year. Actual results could differ from those estimates. There are no areas involving a
higher degree of judgement or complexity, or areas where estimates and assumptions
are significant to the financial statements other than as disclosed in Note 57.
The comparatives for 31 March 2017 have been restated with adjustments arising
from the completion of the purchase price allocation exercise as disclosed in Note
52(i)(d). Certain other comparatives have been reclassified to be consistent with
current year’s presentation.
186
BERHAD 2018
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2018
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2.2 Changes in accounting policies and effects arising from adoption of

new/revised and amendments to FRSs
The new/revised accounting standards and amendments to published standards

issued by Malaysian Accounting Standards Board (“MASB”) that are applicable to the
Group and the Company and effective for the current financial year are as follows:
Amendments to FRS 107 Disclosure Initiative

Amendments to FRS 112 Recognition of Deferred Tax Assets for Unrealised
Losses
Annual Improvements to FRSs 2014 - 2016 Cycle
The adoption of the above standards and amendments did not result in material
impact to the financial statements of the Group and of the Company except for the
following:
Amendments to FRS 107 Disclosure Initiative

The amendments require an entity to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from financing activities, including
both changes arising from cash flows and non-cash changes. On initial application of
these amendments, entities are not required to provide comparative information for
preceding periods. Apart from additional disclosures set out in the consolidated and
separate statement of cash flows, the application of these amendments has no other
impact on the Group and the Company.
2.3 Malaysian Financial Reporting Standards (“MFRS”)
The Group and the Company will be preparing its financial statements using the
MFRS Framework for the year ending 31 March 2019. Accordingly, the Group and the
Company will be required to restate the comparative financial statements to amounts
reflecting the application of MFRS Framework. The adjustments required on transition,
if any, will be made, retrospectively, against opening retained profits.
The Group and the Company are in the midst of completing the assessment of the
financial effects of the differences between Financial Reporting Standards and
accounting standards under the MFRS Framework. Accordingly, the financial
performance and financial position as disclosed in these financial statements for the
year ended 31 March 2018 could be different if prepared under the MFRS Framework.
The Group and the Company consider that they will be achieving their scheduled
milestones and expect to be in a position to fully comply with the requirements of the
MFRS Framework for the financial year ending 31 March 2019.
187
BERHAD 2018
2.4 Basis of consolidation
The consolidated financial statements include the financial statements of the

Company and its subsidiary companies made up to the end of the financial year.
Consistent accounting policies are applied to like transactions and events in similar
circumstances.
Subsidiary companies are those companies in which the Group has the following
policies:
(i) Control exists when the Group has existing rights that give it the current ability
to direct the activities that significantly affect investee’s returns, the Group is
exposed, or has rights, to variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity.
(ii) Potential voting rights are considered when assessing control only when such
rights are substantive.
(iii) The Group considers it has de facto power over an investee when, despite not
having the majority of voting rights, it has the current ability to direct the
activities of the investee that significantly affect the investee’s return.
The Group's subsidiary companies are listed in Note 3.
All the subsidiary companies are consolidated using the purchase method of
accounting where the results of subsidiary companies acquired or disposed off during
the financial year are included from the date on which control is transferred to the
Group and are no longer consolidated from the date on which the control ceases. At
the date of acquisition, the fair values of the subsidiary companies’ identifiable assets
acquired and liabilities and contingent liabilities assumed are determined and these
values are reflected in the consolidated financial statements. The cost of an
acquisition is measured at fair value of assets given, equity instruments issued and
liabilities incurred or assumed at the date of exchange. Acquisition-related costs are
expensed.
The total assets and liabilities of subsidiary companies are included in the
consolidated statement of financial position and the interests of non-controlling
shareholders in the net assets are stated separately. Losses within a subsidiary
company are attributed to the non-controlling interest even if that results in a deficit
balance. All significant inter-company transactions, balances and unrealised gains on
transactions are eliminated on consolidation and unrealised losses on transactions
are also eliminated after considering impairment indicators, only to the extent that cost
can be recovered.
Changes in the Group’s ownership interests in subsidiary companies that do not result
in the Group losing control over the subsidiary companies are accounted for as equity
transactions. The carrying amounts of the Group’s interests and the non-controlling
interest are adjusted to reflect the changes in their relative interests in the subsidiary
companies. The resulting difference is recognised directly in equity and attributed to
Owners of the Company.
188
BERHAD 2018
2.4 Basis of consolidation (Continued)
When the Group loses control of a subsidiary company, it derecognises the related
assets (including goodwill), liabilities, non-controlling interest and other components of
equity, while any resultant gain or loss is recognised in profit or loss. The gain or loss
on disposal of a subsidiary company is the difference between net disposal proceeds
and the Group’s share of its net assets including the cumulative amount of any
currency exchange differences that relate to the subsidiary company and is
recognised in profit or loss. The subsidiary company’s cumulative gain or loss which
has been recognised in other comprehensive income and accumulated in equity are
reclassified to profit or loss or where applicable, transferred directly to retained
earnings. The fair value of any investment retained in the former subsidiary company
at the date that control is lost is regarded as the cost on initial recognition of the
investment.
2.5 Non-controlling interest
Non-controlling interest represents the portion of profit or loss and net assets in
subsidiary companies not held by the Group and are presented separately in
consolidated statement of comprehensive income of the Group and within equity in
the consolidated statement of financial position separately from parent shareholders’
equity. Non-controlling interest is initially measured at the non-controlling interest’s
share of fair values of the identifiable assets and liabilities of the acquiree at the date
of acquisition.
The Group applies a policy of treating acquisition/disposal of shares from/to non-

controlling interest as transactions with owners. Gains and losses resulting from
disposal of shares in subsidiary companies to non-controlling interest are recognised
in equity. For purchases from non-controlling interest, the difference between any
consideration paid and the relevant share of the carrying value of net assets of the
subsidiary acquired is recognised as equity.
2.6 J oint ventures and associated companies
A joint venture is an enterprise which is neither a subsidiary company nor an

associated company of the Group but over which there is a contractually agreed
sharing of control by the Group with one or more parties over the strategic operating,
investing and financial policy decisions. The decisions require the unanimous consent
of the parties sharing control.
An associated company is a company in which the Group is in a position to exercise

significant influence in its Management but which is not control and is neither a
subsidiary company nor a joint venture. Significant influence is the power to
participate in the financial and operating policy decisions of the associated company
but not control over those policies.
The considerations made in determining joint control or significant influence are

similar to those necessary to determine control over subsidiary companies. The
Group’s share of results of joint ventures and associated companies are included in
the consolidated statement of comprehensive income using the equity method of
accounting.
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2.6 J oint ventures and associated companies (Continued)
On acquisition of an investment in joint venture and associated company, any excess

of the cost of investment over the Group’s share of the net fair value of the identifiable
assets and liabilities of the joint venture and the associated company is recognised as
goodwill and included in the carrying amount of the investment. Any excess of the
Group’s share of the net fair value of the identifiable assets and liabilities of the joint
venture and the associated company over the cost of investment is excluded from the
carrying amount of the investment and is instead included as income in the
determination of the Group’s share of the joint venture’s and the associated
company’s profit or loss for the period in which the investment is acquired.
In the consolidated statement of financial position, the Group’s interest in joint

ventures and associated companies is stated at cost plus the Group’s share of post-
acquisition retained profits and reserves less impairment. Any change in other
comprehensive income (“OCI”) of those investees is presented as part of the Group’s
OCI. In addition, when there has been a change recognised directly in the equity of
the joint venture or associated company, the Group recognises its share of any
changes, when applicable, in the statement of changes in equity.
The share of the results of the joint venture and the associated company will not be
taken into the Group’s statement of comprehensive income when the carrying value of
the investment in joint venture and associated company reaches zero unless the
Group has incurred obligations or guaranteed obligations in respect of the joint
venture and the associated company.
Profits and losses resulting from transactions between the Group and its joint venture
and associated company are recognised in the Group’s financial statements only to
the extent of unrelated investors’ interests in the joint venture and associated
company. Unrealised losses are eliminated unless the transaction provides evidence
of an impairment of the asset transferred.
The financial statements of the joint ventures and the associated companies used in
the preparation of the consolidated financial statements are prepared for the same
reporting date as the Group. When the reporting dates of the joint ventures and the
associated companies are different from the Group, the joint venture and the
associated company are required to prepare additional financial statements as of the
same date as that of the Group for consolidation purpose. Where necessary,
adjustments are made to the financial statements of joint ventures and associated
companies to ensure consistency of accounting policies with those of the Group.
The Group’s joint ventures and associated companies are listed in Note 3.
2.7 Investments in subsidiary companies, joint ventures and associated companies
In the Company’s separate financial statements, investments in subsidiary

companies, joint ventures and associated companies are stated at cost. Where an
indication of impairment exists, the carrying amount of the investment is assessed and
written down immediately to its recoverable amount.
On disposal of investments, the difference between the net disposal proceeds and its
carrying amount is charged or credited to profit or loss.
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2.8 Financial assets
Financial assets are recognised in the statements of financial position when, and only
when, the Group and the Company become a party to the contractual provisions of
the financial instruments.
When financial assets are recognised initially, they are measured at fair value, plus in
the case of financial assets not at fair value through profit or loss, directly attributable
transaction costs.
The Group and the Company determine the classification of their financial assets at
the initial recognition, and the categories include financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments and available-for-
sale financial assets.
(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 or are designated as such upon initial
recognition. Financial assets held for trading are derivatives (including
separated embedded derivatives unless they are designated as effective
hedging instruments as defined by FRS 139) or financial assets acquired
principally for the purpose of selling in the near term.
Subsequent to initial recognition, financial assets at fair value through profit or

loss are measured at fair value. Any gains or losses arising 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 do not include exchange differences,
interest and dividend income. Exchange differences, interest and dividend
income on financial assets at fair value through profit or loss are recognised
separately in profit or loss as part of other losses or other income.
Financial assets at fair value through profit or loss could be presented as

current or non-current. Financial assets that are held primarily for trading
purposes are presented as current whereas financial assets that are not held
primarily for trading purposes are presented as current or non-current based
on the settlement date.
(ii) Loans and receivables
Financial assets with fixed or determinable payments that are not quoted in
an active market are classified as loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at

amortised cost using the effective interest method, less impairment. Gains
and losses are recognised in profit or loss when the loans and receivables are
derecognised or impaired, and through the amortisation process.
Loans and receivables are classified as non-current assets, except for those
having maturity within 12 months after the reporting date which are classified
as current.
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2.8 Financial assets (Continued)
(iii) Held-to-maturity investments
Financial assets with fixed or determinable payments and fixed maturity are
classified as held-to-maturity when the Group has the positive intention and
ability to hold the investment to maturity.
Subsequent to initial recognition, held-to-maturity investments are measured

at amortised cost using the effective interest method, less impairment. Gains
and losses are recognised in profit or loss when the held-to-maturity
investments are derecognised or impaired, and through the amortisation
process.
Held-to-maturity investments are classified as non-current assets, except for

those having maturity within 12 months after the reporting date which are
classified as current.
(iv) Available-for-sale financial assets
Available-for-sale financial assets include equity instruments and debt

securities that are designated as available-for-sale or are not classified in any
of the three preceding categories.
After initial recognition, available-for-sale financial assets are subsequently

measured at fair value. Any gains or losses from changes in fair value of the
financial asset are recognised in other comprehensive income, except that
impairment losses, foreign exchange gains and losses on monetary
instruments and interest calculated using the effective interest method are
recognised in profit or loss. The cumulative gain or loss previously recognised
in other comprehensive income is reclassified from equity to profit or loss as a
reclassification adjustment when the financial asset is derecognised. Interest
income calculated using the effective interest method is recognised in profit or
loss. Dividends on an available-for-sale equity instrument are recognised in
profit or loss when the Group’s and the Company's right to receive payment is
established.
Investments in equity instruments which fair value cannot be reliably

measured are measured at cost less impairment loss.
Available-for-sale financial assets are classified as non-current assets unless

they are expected to be realised within 12 months after the reporting date.
A financial asset is derecognised where the contractual right to receive cash flows
from the asset has expired. On derecognition of a financial asset in its entirety, the
difference between the carrying amount and the sum of the consideration received
and any cumulative gain or loss that had been recognised in other comprehensive
income is recognised in profit or loss.
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 recognised or derecognised on the trade date i.e., the date that
the Group and the Company commit to purchase or sell the asset.
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2.9 Impairment of financial assets
The Group and the Company assess at each reporting date whether there is any
objective evidence that a financial asset is impaired.
(i) Trade and other receivables and other financial assets carried at
amortised cost
To determine whether there is objective evidence that an impairment loss on

financial assets has been incurred, the Group and the Company consider
factors such as the probability of insolvency or significant financial difficulties
of the debtor and default or significant delay in payments. For certain
categories of financial assets, such as trade receivables, assets that are
assessed not to be impaired individually are subsequently assessed for
impairment on a collective basis based on similar risk characteristics.
Objective evidence of impairment for a portfolio of receivables could include

the Group’s and the Company's past experience of collecting payments, an
increase in the number of delayed payments in the portfolio past the average
credit period and observable changes in national or local economic conditions
that correlate with default on receivables.
If any such evidence exists, the amount of impairment loss is measured as

the difference between the asset’s carrying amount and the present value of
estimated future cash flows discounted at the financial asset’s original
effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of the financial asset is reduced by the impairment loss
directly for all financial assets with the exception of trade receivables, where
the carrying amount is reduced through the use of an allowance account.
When a trade receivable becomes uncollectible, it is written off against the
allowance account.
If in a subsequent period, the amount of the impairment loss decreases and

the decrease can be related objectively to an event occurring after the
impairment was recognised, the previously recognised impairment loss is
reversed to the extent that the carrying amount of the asset does not exceed
its amortised cost at the reversal date. The amount of reversal is recognised in
profit or loss.
(ii) Unquoted equity securities at cost
If there is objective evidence (such as significant adverse changes in the

business environment where the issuer operates, probability of insolvency or
significant financial difficulties of the issuer) that an impairment loss on
financial assets carried at cost has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted at the current market
rate of return for a similar financial asset. Such impairment losses are not
reversed in subsequent periods.
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2.9 Impairment of financial assets (Continued)
(iii) Available-for-sale financial assets
Significant or prolonged decline in fair value below cost, significant financial

difficulties of the issuer or obligor, and the disappearance of an active trading
market are considerations to determine whether there is objective evidence
that investment securities classified as available-for-sale financial assets are
impaired.
If an available-for-sale financial asset is impaired, an amount comprising the

difference between its cost (net of any principal payment and amortisation)
and its current fair value, less any impairment loss previously recognised in
profit or loss, is transferred from equity to profit or loss.
Impairment losses on available-for-sale 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 available-for-sale debt investments, impairment losses are subsequently

reversed in profit or loss if an increase in the fair value of the investment can
be objectively related to an event occurring after the recognition of the
impairment loss in profit or loss.
(iv) Impairment of financing
The banking subsidiary company assesses at each reporting date whether

there is any objective evidence that a financing is impaired. Financing of
banking subsidiary company is classified as impaired when they fulfil either of
the following criteria:
(a) principal or profit or both are past due for 3 months or more;
(b) where financing in arrears for less than 3 months, the financing exhibit
indications of credit deterioration and weaknesses, whether or not
impairment loss has been provided for; or
(c) rescheduling and/or restructuring of credit, and where an impaired

financing has been rescheduled or restructured, the financing will
continue to be classified as impaired until repayments based on the
revised and/or restructured terms have been observed continuously
for a period of 6 months.
Impairment Process - Individual Assessment
The banking subsidiary company assesses if objective evidence of impairment

exists for financing and receivables, which are deemed to be individually
significant.
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2.9 Impairment of financial assets (Continued)
(iv) Impairment of financing (Continued)
Impairment Process - Individual Assessment (Continued)
If there is objective evidence that an impairment loss has been incurred, the
amount of the loss is measured as the difference between the financing’s
carrying amount and the present value of estimated future cash flows
discounted at the financing’s original effective profit rate. The carrying amount
of the financing is reduced through the use of an allowance account and the
amount of the loss is recognised in the profit or loss.
Impairment Process - Collective Assessment
Financings which are not individually significant and financings that have been
individually assessed with no evidence of impairment loss are grouped
together for collective impairment assessment. These financings are grouped
within similar credit risk characteristics for collective assessment, whereby
data from the financing portfolio (such as, credit quality, levels of arrears,
credit utilisation, financing to collateral ratios, etc.), concentration of risks, and
economic data are taken into consideration.
Future cash flows in a group of financing that are collectively evaluated for
impairment are estimated based on the historical loss experience of the
banking subsidiary company. Historical loss experience is adjusted on the
basis of current observable data to reflect the effects of current conditions that
did not affect the period on which the historical loss experience is based, and
to remove the effects of conditions in the historical period that do not currently
exist.
2.10 Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount presented in the
statements of financial position when there is a legally enforceable right to offset the
recognised amount and there is an intention to settle on a net basis, or realise the
receivables and settle the payables simultaneously.
2.11 Investment properties
Investment properties comprise land and buildings that are held for long term rental
yield and/or for capital appreciation and that are not occupied by the companies in the
Group. Assets under construction/development for future use as investment property
are also classified in this category. Investment properties are initially measured at
cost, including transaction cost. Subsequent to initial recognition, investment
properties are stated at fair value, representing open-market values determined
annually by independent qualified valuer. Fair value is based on active market prices,
adjusted, if necessary, for any difference in the nature, location or condition of the
specific asset. Gains or losses arising from changes in the fair values of investment
properties are included in profit or loss in the year in which they arise.
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2.11 Investment properties (Continued)
A property interest under an operating lease is classified and accounted for as

investment property on a property-by-property basis when the Group and the
Company hold it to earn rentals or for capital appreciation or both. Any such property
interest under an operating lease classified as an investment property is carried at fair
value.
On disposal of an investment property, or when it is permanently withdrawn from use

and no future economic benefits are expected from its disposal, it shall be
derecognised (eliminated from the statement of financial position). The difference
between the net disposal proceeds and the carrying amount is recognised in profit or
loss in the period of the retirement or disposal.
Transfers are made to or from investment property only when there is a change in
use. For a transfer from investment property to owner-occupied property, the deemed
cost for subsequent accounting is the fair value at the date of change in use. For a
transfer from owner-occupied property to investment property, the property is
accounted for in accordance with the accounting policy for property, plant and
equipment set out in Note 2.14 up to the date of change in use.
2.12 Assets and disposal groups held for sale
Assets and disposal groups are classified as held for sale and stated at the lower of
carrying amount and fair value less costs to sell if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use.
This condition is regarded as met only when the sale is highly probable and the asset
is available for immediate sale in its present condition subject only to terms that are
usual and customary.
A non-current asset is not depreciated or amortised while it is classified as held for

sale or while it is part of a disposal group classified as held for sale. Interest and other
expenses attributable to the liabilities of a disposal group classified as held for sale
are continued to be recognised.
Assets and liabilities classified as held for sale are presented separately as current
items in the statement of financial position.
2.13 Other assets
Other assets represent transferable corporate memberships in golf and country clubs.
The golf membership acquired is measured initially at cost. Following initial
recognition, it is measured at cost less any accumulated impairment losses. Gain or
loss arising from disposal of the golf membership is measured as the difference
between the net disposal proceeds and the carrying amount and is recognised in profit
or loss. The policy for the recognition and measurement of impairment losses is in
accordance with Note 2.22.
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2.14 Property, plant and equipment and depreciation
Freehold land is not depreciated as it has an infinite life. Depreciation on capital work-
in-progress commences when the assets are ready for their intended use. All other
property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a

separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Group and the Company and the cost of the
item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to profit or loss during
the financial year in which they are incurred.
An item of property, plant and equipment is derecognised upon disposal or when no

future economic benefits are expected from its use or disposal. Gains and losses on
disposals are determined by comparing net disposal proceeds with carrying amounts
and are recognised in profit or loss.
Where an indication of impairment exists, the carrying amount of the property, plant
and equipment is assessed and written down immediately to its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. At each reporting date, the Group and the Company assess whether
there is any indication of impairment. The policy for the recognition and measurement
of impairment losses is in accordance with Note 2.22.
The estimated useful lives in years are as follows:
Leasehold land 16 - 910 years

Buildings, golf course and improvements 2 - 59 years
Plant and machinery 2 - 30 years
Motor vehicles 3 - 10 years
Vessels 9 years
Office equipment, furniture and fittings 2 - 10 years
Residual values and useful lives of assets are reviewed, and adjusted prospectively if
appropriate, at each reporting date.
2.15 Concession assets
Concession assets arise from the right to charge users of the public services and are
amortised over the period of 22 years under the Service Concession Agreement.
Subsequent costs and expenditures related to infrastructure and equipment arising

from the commitments to the concession contracts or that increase future revenue is
recognised as additions to the concession assets and are stated at cost. All other
repairs and maintenance expenses that are routine in nature, are charged to profit or
loss during the financial year in which they are incurred.
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2.16 Prepaid lease properties
Leasehold land that normally has a finite economic life and title is not expected to
pass to the lessee by the end of the lease term is treated as an operating lease, if the
risks and rewards of the ownership are not substantially transferred to the Group. The
payment made on entering into or acquiring a leasehold land is accounted as prepaid
lease properties. Prepaid lease properties are amortised over the lease term. Prepaid
lease properties are stated at cost less accumulated amortisation and impairment
losses. Short term leases are below 50 years and long term leases are 50 years and
above at the date of initial recognition.
2.17 Goodwill
Goodwill represents the excess of the cost of acquisition of subsidiary companies,

joint ventures and associated companies over the fair value of the Group’s share of
the identifiable net assets at the time of acquisition. Goodwill on acquisitions of
subsidiary companies is included in the consolidated statement of financial position as
intangible assets. If the cost of acquisition is less than the fair value of the net assets
of the subsidiary company acquired, the difference is recognised directly in profit or
loss.
Goodwill arising on the acquisition of subsidiary companies is tested annually for

impairment and carried at cost less accumulated impairment losses. Impairment
losses on goodwill are not reversed. Gains and losses on the disposal of an entity
include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing.

The allocation is made to those cash-generating units or groups of cash-generating
units that are expected to benefit from the synergies of the business combination in
which the goodwill arose. The Group allocates goodwill to each business segment in
which it operates.
Goodwill on acquisitions of joint ventures and associated companies is included in

investment in joint ventures and associated companies respectively. Such goodwill is
tested for impairment as part of the overall carrying amount.
2.18 Intangible assets other than goodwill
Intangible assets acquired separately are measured initially at cost. Following initial
recognition, intangible assets are measured at cost less any accumulated
amortisation and accumulated impairment losses.
(i) Computer software
Costs that are directly associated with identifiable and unique software
products which have probable benefits exceeding the cost beyond 1 year are
recognised as intangible assets. Expenditure which enhances or extends the
performance of computer software programmes beyond their original
specifications is recognised as a capital movement and added to the original
cost of the software.
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2.18 Intangible assets other than goodwill (Continued)
(i) Computer software (Continued)
Costs associated with maintaining computer software programmes are

recognised as an expense when incurred. Costs include employee costs
incurred as a result of developing software and an appropriate portion of
relevant overheads.
Computer software costs recognised as intangible assets are carried at cost

and are amortised on a straight line basis over their estimated useful lives of 3
- 10 years.
(ii) Research and development cost
Expenditure in connection with research activities (research expenditure) is

recognised as an expense when incurred. Costs incurred on development
projects (relating to the design and testing of new or improved products) are
recognised as intangible assets when the following criteria for recognition are
fulfilled:
(a) It is technically feasible to complete the intangible assets so that it will

be available for use or sale;
(b) Management’s intention to complete the intangible asset for use or

sale;
(c) There is an ability to use or sell the intangible asset;
(d) It can be demonstrated that the intangible asset will generate probable
future economic benefits;
(e) Adequate technical, financial and other resources to complete the

development and to use or sell the intangible asset are available; and
(f) The expenditure attributable to the intangible asset during its

development can be reliably measured.
Development costs previously recognised as an expense are not recognised

as an asset in subsequent periods. Development expenses capitalised
include costs incurred in the development from the date it first meets the
recognition criteria and up to the completion of the development project and
commencement of commercial production. Capitalised development cost is
stated at cost less accumulated amortisation and accumulated impairment
losses, if any. Amortisation of development cost is based on straight line
basis over its useful life, which ranges between 5 - 7 years for vehicles and
10 years for mechanical parts. During the period of development, the asset is
tested for impairment annually.
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2.18 Intangible assets other than goodwill (Continued)
(iii) Acquired intangible assets
These intangible assets comprise brand name, customer relationship and

dealership network arising from the acquisitions of subsidiary companies.
(a) Brand name
Brand name, which is separately identifiable with infinite useful life, is

tested annually for impairment and stated at cost less accumulated
impairment losses. Impairment losses on brand name are not
reversed.
(b) Customer relationship
Customer relationship, which is separately identifiable, is stated at

cost and amortised on a straight line basis over a period of 30 years.
(c) Dealership network
Dealership network, which is separately identifiable, is stated at cost

and amortised on a straight line basis over a period of 7 years.
Where an indication of impairment exists, the carrying amount of the intangible assets
is assessed and written down immediately to its recoverable amount. The policy for
the recognition and measurement of impairment losses is in accordance with Note
2.22.
Preliminary and pre-operating expenses are written off to profit or loss in the financial
year in which they are incurred.
2.19 Property development activities
(i) Land held for property development
Land held for property development consists of land on which no significant

development work has been undertaken or where development activities are
not expected to be completed within the normal operating cycle. Such land is
classified as non-current asset and is stated at cost less accumulated
impairment losses. The policy for the recognition and measurement of
impairment losses is in accordance with Note 2.22.
Cost associated with the acquisition of land includes the purchase price of the
land, professional fees, stamp duties, conversion fees and other relevant
levies. Where an indication of impairment exists, the carrying amount of the
asset is assessed and written down immediately to its recoverable amount.
Land held for property development is transferred to property development

costs (within current assets) when development work is to be undertaken and
is expected to be completed within the normal operating cycle.
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2.19 Property development activities (Continued)
(i) Land held for property development (Continued)
On disposal of land held for property development, the difference between the
net disposal proceeds and its carrying amount is charged or credited to profit
or loss.
(ii) Property development costs
Property development costs comprise all costs that are directly attributable to
development activities or that can be allocated on a reasonable basis to such
activities.
Where the outcome of a development can be reliably estimated, property

development revenue and expenditure are recognised using the percentage
of completion method. The percentage of completion is measured by
reference to the development costs incurred to date in proportion to the
estimated total costs for the property development.
Where the outcome of a development activity cannot be reliably estimated,

property development revenue is recognised only to the extent of costs
incurred that is probable will be recoverable. Property development costs on
development units sold are recognised as an expense when incurred.
Irrespective of whether the outcome of a property development activity can be

estimated reliably, when it is probable that total property development costs
will exceed total property development revenue, the expected loss is
recognised as an expense immediately.
Property development costs not recognised as an expense is recognised as

an asset and are stated at the lower of cost and net realisable value. Where
revenue recognised in profit or loss exceeds billings to purchasers, the
balance is shown as accrued billings under receivables (within current
assets). Where billings to purchasers exceed revenue recognised, the
balance is shown as progress billings under payables (within current
liabilities).
2.20 Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost is defined as all costs of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and conditions. Costs of purchase
comprise the purchase price, import duties and other taxes (so far as not recoverable
from the taxation authorities), transport and handling costs and other directly
attributable costs.
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2.20 Inventories (Continued)
(i) Raw materials, work-in-progress, finished goods and consumables
Raw materials and consumables are stated at cost. Work-in-progress and

finished goods represent raw materials, direct labours, direct charges and
allocated process costs, where necessary. Cost is principally determined on a
first-in first-out or weighted average basis depending on the nature of
inventories.
(ii) Inventories of unsold properties
The cost of unsold properties comprises cost associated with the acquisition
of land, direct costs and an appropriate allocation of allocated costs
attributable to property development activities.
Net realisable value is the estimated selling price in the ordinary course of business
less the costs of completion and selling expenses.
2.21 Cash and cash equivalents
For the purposes of the statements of cash flows, cash and cash equivalents consist
of cash in hand, bank balances, demand deposits, bank overdrafts and short term
highly liquid investments with a maturity of three months or less from the date of
placement that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
2.22 Impairment of non-financial assets
The Group and the Company assess, at each reporting date, whether there is an
indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Group and the Company estimate the
asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s
or cash-generating unit’s (“CGU”) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or
groups of assets. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.
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2.22 Impairment of non-financial assets (Continued)
For assets excluding goodwill, an assessment is made at each reporting date to

determine whether there is an indication that previously recognised impairment losses
no longer exist or have decreased. If such indication exists, the Group and the
Company estimate the asset’s or CGU’s recoverable amount. Impairment losses
recognised in respect of a CGU or groups of CGUs are allocated first to reduce the
carrying amount of any goodwill allocated to those units or groups of units and then, to
reduce the carrying amount of the other assets in the unit or groups of units on a pro-
rata basis. Impairment losses are recognised in profit or loss. A previously recognised
impairment loss is reversed only if there has been a change in the assumptions used
to determine the asset’s recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset
in prior years. Such reversal is recognised in profit or loss unless the asset is carried
at a revalued amount, in which case, the reversal is treated as a revaluation increase.
2.23 Income taxes
Income tax on the profit or loss for the financial year comprises current and deferred
tax.
(i) Current tax
Current tax is the expected amount of income taxes payable in respect of the
taxable profit for the financial year and is measured using the tax rates that
have been enacted at the reporting date. 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 other comprehensive income or directly in
equity.
(ii) Deferred tax
Deferred tax is provided for in full, using the liability method on temporary
differences at the reporting date between the tax bases of assets and
liabilities for tax purposes and their carrying amounts in the financial
statements.
Deferred tax is not recognised if the temporary difference arises from the
initial recognition of goodwill, an asset or liability in a transaction which is not
a business combination and at the time of the transaction, affects neither
accounting profit nor taxable profit.
The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that 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 is probable that taxable profit will
be available against which the deductible temporary differences, unused tax
losses and unused tax credits can be utilised.
203
BERHAD 2018
2.23 Income taxes (Continued)
(ii) Deferred tax (Continued)
Deferred tax is measured at the tax rates that are expected to apply in the
period when the asset is realised or the liability is settled, based on tax rates
that have been enacted or substantially enacted at the reporting date.
Deferred tax is recognised in profit or loss, except when it arises from a
transaction which is recognised directly in equity, in which case the deferred
tax is also charged or credited directly in equity, or when it arises from a
business combination that is an acquisition, in which case the deferred tax is
included in the resulting goodwill.
Deferred tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current tax
liabilities and the deferred taxes relate to the same taxable entity and the
same taxation authority.
2.24 Share capital
(i) Classification
An equity instrument is any contract that evidences a residual interest in the

assets of the Group and of the Company after deducting all of its liabilities.
Ordinary shares are classified as equity.
(ii) Share issue costs
Incremental external costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds.
(iii) Dividends to shareholders of the Company
Dividends on ordinary shares are recognised as liabilities when declared

before the reporting date. Dividends proposed after the reporting date, but
before the financial statements are authorised for issue, is not recognised as
a liability at the reporting date. Upon the dividend becoming payable, it will be
accounted for as a liability.
2.25 Borrowings
(i) Classification
Borrowings are measured at fair value net of transaction costs initially and
subsequently, at amortised cost using the effective interest method. Any
difference between the proceeds (net of transaction costs) and the
redemption value is recognised in profit or loss over the repayment period of
the borrowings.
204
BERHAD 2018
2.25 Borrowings (Continued)
(ii) Capitalisation of borrowing costs
Borrowing costs incurred to finance the construction of property, plant and

equipment are capitalised as part of the cost of the asset during the period of
time that is required to complete and prepare the asset for its intended use.
Borrowing costs incurred to finance property development activities and
construction contracts are accounted for in a similar manner. All other
borrowing costs are recognised in profit or loss in the period they are incurred.
2.26 Financial liabilities
Financial liabilities are classified according to the substance of the contractual

arrangements entered into and the definitions of a financial liability.
Financial liabilities are recognised in the statement of financial position when, and only
when, the Group and the Company become a party to the contractual provisions of the
financial instrument. Financial liabilities are classified as either financial liabilities at fair
value through profit or loss or other financial liabilities.
(i) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities
held for trading and financial liabilities designated upon initial recognition as at
fair value through profit or loss.
Financial liabilities held for trading include derivatives entered into by the
Group and the Company that do not meet the hedge accounting criteria.
Derivative liabilities are initially measured at fair value and subsequently
stated at fair value, with any resulting gains or losses recognised in profit or
loss. Net gains or losses on derivatives include exchange differences.
(ii) Other financial liabilities
The Group’s and the Company's other financial liabilities include trade and
other payables, loans and borrowings, deposits from customers, deposits and
placements of banks and financial institutions, bills and acceptances payable
and other liabilities.
Trade and other payables are recognised initially at fair value plus directly
attributable transaction costs and subsequently measured at amortised cost
using the effective interest method.
Loans and borrowings are recognised at fair value net of transaction costs
initially and subsequently, at amortised cost using the effective interest
method. Borrowings are classified as current liabilities unless the Group has
an unconditional right to defer settlement of the liability for at least 12 months
after the reporting date.
Deposits from customers, deposits and placements of banks and financial

institutions are stated at placement values.
205
BERHAD 2018
2.26 Financial liabilities (Continued)
(ii) Other financial liabilities (Continued)
Bills and acceptances payable represent the banking subsidiary company’s

own bills and acceptances rediscounted and outstanding in the market.
Bank and other borrowings and recourse obligations on loans sold to

Cagamas Berhad are recognised initially at fair value, net of transaction cost
incurred, and subsequently measured at amortised cost using the effective
profit method.
For other financial liabilities, gains and losses are recognised in profit or loss
when the liabilities are derecognised, and through the amortisation process.
A financial liability is derecognised when the obligation under the liability is

extinguished. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition
of the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in profit or loss.
2.27 Financial guarantee contract
A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails
to make payment when due.
Financial guarantee contracts are recognised initially as a liability at fair value, net of
transaction costs. Subsequent to initial recognition, financial guarantee contracts are
recognised as income in profit or loss over the period of the guarantee. If the debtor
fails to make payment relating to financial guarantee contract when it is due and the
Company, as the issuer, is required to reimburse the holder for the associated loss,
the liability is measured at the higher of the best estimate of the expenditure required
to settle the present obligation at the reporting date and the amount initially recognised
less cumulative amortisation.
2.28 Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and the amount
can be estimated reliably.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the
current best estimate. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, where appropriate, the risks
specific to the liability. When the discounting is used, the increase in the provision due
to passage of time is recognised as a finance cost.
206
BERHAD 2018
2.28 Provisions (Continued)
(i) Warranty and sales returns
A provision is made for the estimated liability on all products under warranty
and provision for sales returns is made for estimated returns of goods as at
the reporting date. These provisions are arrived at based on the historical
data of service and sales returns.
(ii) Restructuring, mutual separation schemes and voluntary separation

scheme costs
Restructuring, mutual separation scheme and voluntary separation scheme

provisions mainly comprise employee termination costs and other related
costs and are recognised in the financial year in which the Group becomes
legally or constructively committed to such payment.
(iii) Concession assets
A provision is recognised based on the contractual obligations that it must

fulfil as a condition of its license to maintain the infrastructure to a specified
standard and to restore the infrastructure when the infrastructure has
deteriorated below specific condition as stated under the Service Concession
Agreement.
(iv) Claims from suppliers
In the normal course of business, the Group may receive claims based on
contractual terms or deemed constructive obligations arising from non-
contractual actions. The claims are recognised based on legal advice on such
contractual terms, past constructive actions or business relationship
continuity, where deemed necessary.
2.29 Grants
Grants are recognised at their fair values where there is reasonable assurance that
the grant will be received and all conditions attached will be met.
(i) Grants relating to assets are included in the liabilities as deferred income and
are amortised to profit or loss over the expected useful life of the relevant
asset by equal annual instalment or by deducting the grants in arriving at the
carrying amount of the asset.
(ii) Grants relating to income are recognised immediately through profit or loss on
a systematic basis over the periods that the related costs, for which they are
intended to compensate, are expensed or to be deducted in reporting related
expenses.
(iii) Income grants are grants other than the above grants and recognised in the
statements of comprehensive income where there is a reasonable assurance
that the grant will be received and the Group will comply with all attached
conditions.
207
BERHAD 2018
2.30 Employee benefits
(i) Short term employee benefits
Wages, salaries, paid annual leave and sick leave, bonuses, and non-
monetary benefits are accrued in the period in which the associated services
are rendered by employees of the Group.
(ii) Defined contribution plan
A defined contribution plan is a pension plan under which the Group pays
fixed contributions into a separate entity (a fund) and will have no legal or
constructive obligations to pay further contributions if the fund does not hold
sufficient assets to pay all employees benefits relating to employee service in
the current and prior periods.
The Group’s contributions to the defined contribution plan are charged to profit
or loss in the period to which they relate. Once the contributions have been
paid, the Group has no further payment obligations.
(iii) Termination benefits
Termination benefits are payable to an entitled employee whenever the

employment has to be terminated before the normal retirement date or when
the employee accepts mutual/voluntary separation in exchange for these
benefits. The Group recognises termination benefits when it is demonstrably
committed to either terminate the employment of current employees according
to a detailed formal plan without possibility of withdrawal or to provide
termination benefits as a result of an offer made to encourage voluntary
redundancy.
(iv) Post-employment benefits - Defined benefit plan
Certain companies in the Group operate defined benefit plans for their eligible
employees.
The defined benefit obligation is calculated using the project unit credit
method, determined by independent actuaries are charged to the statement of
comprehensive income so as to spread the cost of pensions over the average
remaining service lives of the related employees participating in the defined
benefit plan. Assumptions were made in relation to the expected rate of salary
increases, annual discount rate, expected return on plan assets and inflation
rate.
The liability in respect of a defined benefit plan is the present value of the
defined benefit obligations at the consolidated statement of financial position
less the fair value of plan assets, together with adjustments for actuarial
gains/losses and past service. The Group determines the present value of the
defined benefit obligations with sufficient regularity such that the amounts
recognised in the financial statements do not differ materially from the
amounts that would be determined at the reporting date.
208
BERHAD 2018
2.30 Employee benefits (Continued)
(iv) Post-employment benefits - Defined benefit plan (Continued)
When the calculation results in a potential asset for the Group, the recognised
asset is limited to the present value of economic benefits available in the form
of any future refunds from the plan or reductions in future contributions to the
plan. To calculate the present value of economic benefits, consideration is
given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit obligations, which comprise

actuarial gains and losses, the return on plan assets (excluding interest) and
the effect of the changes in asset ceiling (excluding interest), are recognised
immediately in other comprehensive income. Remeasurements are not
reclassified to profit or loss in subsequent periods. The Group determines the
net interest income or expense on the net defined obligations for the period by
applying the discount rate used to measure the defined benefit obligations at
the beginning of the annual period, taking into account any changes in the net
defined benefit obligations during the period as a result of contributions and
benefit payments.
Net interest income or expense and other expenses relating to defined benefit
plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the
resulting change in benefit that relates to past service or the gain or loss on
curtailment is recognised immediately in profit or loss. The Group recognises
gains and losses on the settlement of a defined benefit plan when the
settlement occurs.
2.31 Construction contracts
When the outcome of a construction contract can be estimated reliably, contract

revenue and contract costs are recognised over the period of the contract as revenue
and expenses respectively. The Group uses the percentage of completion method to
determine the appropriate amount of revenue and costs to be recognised in a given
period; the percentage of completion is measured by reference to the proportion of
contract costs incurred for work performed to date to the estimated total costs.
When it is probable that the total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately.
When the outcome of a construction contract cannot be estimated reliably, contract

revenue is recognised only to the extent of contract costs incurred that is probable will
be recoverable and contract costs are recognised as expenses when incurred.
Contract revenue comprises the initial amount of revenue agreed in the contract and
variations in contract work, claims and incentive payments to the extent that it is
probable that they will result in revenue and they are capable of being reliably
measured.
209
BERHAD 2018
2.31 Construction contracts (Continued)
The aggregate of the costs incurred and the profit/loss recognised on each contract is
compared against the progress billings periodically. Where costs incurred and
recognised profit (less recognised losses) exceeds progress billings, the balance is
shown as amounts due from customers on construction contracts under current
assets. Where progress billings exceed costs incurred plus recognised profit (less
recognised losses), the balance is shown as amounts due to customers on
construction contracts under current liabilities.
2.32 Assets under lease arrangements
(i) Finance leases
Leases of property, plant and equipment, assets under concession contracts

and intangible assets where the Group assumes substantially all the benefits
and risks of ownership are classified as finance leases. Assets acquired under
finance lease arrangements are capitalised at the commencement of the lease
at the inception date fair value of the leased property or, if lower, at the
present value of the minimum lease payments. The capital element of the
leasing commitments is shown under borrowings. The lease rentals are
treated as consisting of capital and interest element. The capital element is
applied to reduce the outstanding obligations and the interest element is
charged to profit or loss so as to give a constant periodic rate of interest on
the outstanding liability at the end of each accounting period. Assets acquired
under finance lease are depreciated or amortised over the useful lives of
equivalent owned assets or its lease term, if shorter.
(ii) Operating leases
Leases of assets where a significant portion of the risks and rewards of

ownership are retained by the lessor are classified as operating leases.
Lease rental payments on operating leases are charged to profit or loss in the
financial year they become payable, on a straight line basis over the lease
term.
When an operating lease is terminated before the lease period has expired,
any payment required to be made to the lessor by way of penalty is
recognised as an expense in the period in which termination takes place.
210
BERHAD 2018
2.33 Revenue and other income recognition
Revenue and other income are recognised to the extent that it is probable that the
economic benefits will flow to the Group and the Company and the revenue and other
income can be reliably measured. Revenue and other income are measured at the fair
value of consideration received or receivables, excluding taxes. Other than revenue
and other income recognition policies mentioned elsewhere in the summary of
significant accounting policies, set out below are other significant revenue and other
income recognition policies used by the Group and the Company:
(i) Sale of goods
Sales are recognised upon delivery of goods, net of sales tax, returns,
discounts and allowances and upon transfer of significant risks and rewards of
ownership of the goods to the customers.
(ii) Rendering of services
(a) Solid waste management
Revenue from management services, solid waste disposal and tipping

fees is recognised upon performance of services less discounts.
(b) Vehicle inspection income
Income from inspection of vehicles is recognised upon the rendering

of inspection services.
(c) Ground handling services
Revenue from ground handling, in-flight catering and cargo handling is

recognised upon performance of services less discounts.
(d) Vehicle leasing income
Operating lease income is recognised on a straight line basis over the

period of lease agreement.
(e) Fee income from an aircraft leasing company
Fee income is recognised upon rendering of services and customers’

acceptances.
211
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2.33 Revenue and other income recognition (Continued)
(ii) Rendering of services (Continued)
(f) Financing income and fee recognition from a banking subsidiary

company
Profit income from financing is recorded using the effective profit rate,
which is the rate that exactly discounts the estimated future cash
payments or receipts through the expected life of the financing or a
shorter period, where appropriate, to the net carrying amount of the
financing. The calculation takes into account all contractual terms of
the financing (for example, repayment options) and includes any fees
or incremental costs that are directly attributable to the instrument and
are an integral part of the effective profit rate, but not future credit
losses.
For impaired financing where the value of the financing has been
written down as a result of an impairment loss, financing income
continues to be recognised using the effective profit rate, to the extent
that it is probable that the profit can be recovered.
Financing arrangement, management and participation fees,

underwriting commissions, guarantee fees, and brokerage fees are
recognised as income based on accrual on time apportionment
method. Fees from advisory and corporate finance activities are
recognised net of service taxes and discounts on completion of each
stage of the assignment.
(g) Provision of postal and integrated logistics services
• Postal and related services
Income from mail, courier services, remittances and agency

services and other services (sale and purchase of gold) are
recognised upon performance of services.
• Shipping agency fees
Income is recognised on completion of shipping operation.
• Transportation related income
Income from transportation of goods is recognised upon delivery

of goods at the receiving point.
• Warehousing and distribution income
Income from the provisions of handling and related activities is

recognised upon the performance of services.
51
212
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2.33 Revenue and other income recognition (Continued)
(ii) Rendering of services (Continued)
(g) Provision of postal and integrated logistics services (Continued)
• Haulage income
Income from haulage and related activities is recognised upon

performance of services, net of discounts.
(h) Fees
Tuition fees for both academic programmes and short courses are
recognised over the duration of courses. Registration and enrolment
fees are recognised upon commencement of the courses.
(iii) Construction contracts
Revenue from construction contracts are accounted for by the stage of

completion method as described in Note 2.31.
(iv) Sale of land and development properties
Revenue recognition for sale of land and development properties are

described in Note 2.19.
(v) Others
(a) Dividend income
Dividends are recognised when the right to receive payment is

established.
(b) Interest income
Interest income is recognised using effective interest method.
(c) Rental income
Rental income is accrued on a straight line basis over the operating

lease term.
52
213
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2.34 Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which
the entity operates (the “functional currency”). The consolidated financial
statements are presented in RM, which is the Company’s functional and
presentation currency.
(ii) Foreign currency transactions
Transactions in foreign currencies during the financial year are converted into
functional currency at the rates of exchange ruling on the transaction dates.
Monetary assets and liabilities in foreign currency are translated into RM at
rates of exchange approximating those ruling on the reporting date. Non-
monetary items denominated in foreign currencies that are measured at
historical cost are translated using the exchange rates as at the dates of the
initial transactions. Non-monetary items denominated in foreign currencies
measured at fair value are translated using the exchange date when fair value
was determined.
Exchange differences arising on the settlement of monetary items or on

translating monetary items at the reporting date are recognised in profit or loss
except for exchange differences arising on monetary items that form part of
the Group’s net investment in foreign operations, which are recognised initially
in other comprehensive income and accumulated under foreign currency
translation reserve in equity. The foreign currency translation reserve is
reclassified from equity to profit or loss of the Group on disposal of the foreign
operations.
(iii) Foreign subsidiary companies
The assets and liabilities of foreign subsidiary companies that have a

functional currency other than RM (including any goodwill arising on the
acquisition of a foreign operation and any fair value adjustments to the
carrying amounts of assets and liabilities arising on the acquisition) are
translated into RM at the rate of exchange ruling at the reporting date. Income
and expenses are translated at exchange rates at the date of transactions.
Exchange differences arise on translation are taken directly to other
comprehensive income.
On disposal of foreign subsidiary companies, such translation differences are

recognised in profit or loss as part of the gain or loss on disposal.
53
214
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2.35 Segment reporting
Segment reporting is presented for enhanced assessment of the Group’s risks and
returns. Business segments provide products or services that are subject to risk and
returns that are different from those of other business segments.
Segment revenue, expense, assets and liabilities are those amounts resulting from
the operating activities of a segment that are directly attributable to the segment and
the relevant portion that can be allocated on a reasonable basis to the segment.
Segment revenue, expense, assets and liabilities are determined before intragroup
balances and intragroup transactions are eliminated as part of the consolidation
process, except to the extent that such intragroup balances and transactions are
between group enterprises within a single segment.
2.36 Contingent liabilities and contingent assets
The Group does not recognise a contingent liability but discloses its existence in the
financial statements. A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by uncertain future events beyond the
control of the Group or a present obligation that is not recognised because it is not
probable that an outflow of resources will be required to settle the obligation. A
contingent liability also arises in the extremely rare circumstance where there is a
liability that cannot be recognised because it cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence
will be confirmed by uncertain future events beyond the control of the Group.
The Group does not recognise contingent assets but discloses its existence where
inflows of economic benefits are probable, but not virtually certain.
In the acquisition of subsidiary companies by the Group under a business

combination, the contingent liabilities assumed are measured initially at their fair value
at the acquisition date.
2.37 Fair value measurements
Except for lease transactions, the fair value of an asset or a liability is determined as
the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The
measurement assumes that the transaction to sell the asset or transfer the liability
takes place either in the principal market or in the absence of a principal market, in the
most advantageous market. The principal or the most advantageous market must be
accessible by the Group.
For non-financial asset, the fair value measurement takes into account a market
participant’s ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its
highest and best use.
54
215
BERHAD 2018
2.37 Fair value measurements (Continued)
The Group measures fair values using the following fair value hierarchy that reflects
the significance of the inputs used in making the measurements:
(i) Level 1: Quoted market price (unadjusted) in an active market for an

identical instrument.
(ii) Level 2: Valuation techniques based on observable inputs, either directly

(i.e. as prices) or indirectly (i.e. derived from prices). This
category includes instruments valued using: quoted market prices
in active markets for similar instruments; quoted prices for
identical or similar instruments in markets that are considered
less than active; or other than valuation techniques where all
significant inputs are directly or indirectly observable from market
data.
(iii) Level 3: Valuation techniques using significant unobservable inputs. This

category includes all instruments where the valuation technique
includes inputs not based on observable data and the
unobservable inputs have a significant effect on the instrument’s
valuation. This category includes instruments that are valued
based on quoted prices for similar instruments where significant
unobservable adjustments or assumptions are required to reflect
differences between the instruments.
The Group and the Company recognise transfers between levels of the fair value
hierarchy as of the date of the event or change in circumstances that caused the
transfers.
216
BERHAD 2018
3 COMPANIES IN THE GROUP
The principal activities of the companies in the Group and the effective interest of the Group as
at 31 March 2018 therein are shown below:
Effective Equity Financial

Name of Company Interest Principal Activities Year End
2018 2017
% %
SUBSIDIARY COMPANIES
Subsidiary companies of
DRB-HICOM Berhad:
HICOM Holdings Berhad 100.00 100.00 Investment holding 31 March
Gadek (Malaysia) Berhad 100.00 100.00 Investment holding 31 March
@$ PROTON Holdings Berhad 50.10 100.00 Investment holding 31 March

(“PROTON”)
DRB-HICOM Northern 100.00 100.00 Investment holding 31 March

Gateway Sdn. Bhd.
DRB-HICOM Auto 100.00 100.00 Vehicle importation, 31 March

Solutions Sdn. Bhd. logistics, vehicle pre-
delivery inspection, value
added services and the
sale of vehicles
DRB-HICOM Defence 100.00 100.00 Manufacturing, assembly, 31 March

Technologies Sdn. Bhd. supply, maintenance,
marketing, refurbishment or
retrofitting of military and
commercial vehicles,
equipment and spare parts
d DRB-HICOM SPV (Labuan) 100.00 100.00 Special purpose vehicle for 31 March
Limited funding
HICOM University College 100.00 100.00 Higher educational and 31 March

Sdn. Bhd. vocational training
programme
PUSPAKOM Sdn. Bhd. 100.00 100.00 Inspection of commercial 31 March

(“PUSPAKOM”) vehicles for roadworthiness
and the inspection of other
vehicles
217
BERHAD 2018
3 COMPANIES IN THE GROUP (Continued)

2018 2017
% %
(Continued)
DRB-HICOM Berhad:
(Continued)
Motosikal Dan Enjin 81.00 81.00 Manufacturing, assembly and 31 March

Nasional Sdn. Bhd. distribution of motorcycles,
(“MODENAS”) related spare parts and
accessories and servicing
motorcycles
Bank Muamalat Malaysia 70.00 70.00 Islamic banking business and 31 March
Berhad related financial services
@
* Pos Malaysia Berhad 53.50 53.50 Provision of postal and 31 March
related services
Media City Ventures Sdn. 51.00 51.00 Investment holding 31 March

Bhd.
$ DRB-HICOM Geely Sdn. 50.10 - Investment holding 31 March

Bhd.
* HICOM Trucks Sdn. Bhd. 100.00 100.00 Dormant 31 March
* HICOM Power Sdn. Bhd. 100.00 100.00 Dormant 31 March

(under members’ voluntary
liquidation)
$
* DRB-HICOM Export - 75.50 Dormant 31 March
Corporation Sdn. Bhd.
$
* Intrakota Komposit Sdn. - 70.00 Dormant 31 March
Bhd.
218
BERHAD 2018

2018 2017
% %
(Continued)
HICOM Holdings
Berhad:
* Automotive Corporation 100.00 100.00 Investment holding 31 March

Holdings Sdn. Bhd.
* USF-HICOM Holdings Sdn. 100.00 100.00 Investment holding 31 March

Bhd.
@ Edaran Otomobil Nasional 100.00 100.00 Investment holding and 31 March

Berhad (“EON”) distributor and retailer of
Jeep and other motor
vehicles and its related
spare parts including
servicing of motor vehicles
Glenmarie Development 100.00 100.00 Building and leasing 31 March

(Pahang) Sdn. Bhd. property
Glenmarie Puchong Sdn. 100.00 100.00 Property development 31 March

Bhd.
@ HICOM Automotive 100.00 100.00 Manufacturing and 31 March

Manufacturers (Malaysia) assembly of motor vehicles
Sdn. Bhd. and other road transport
vehicles
HICOM Berhad 100.00 100.00 Management of projects, 31 March

rental of properties and
investment holding
HICOM Diecastings Sdn. 100.00 100.00 Manufacturing and supply of 31 March

Bhd. diecast parts for
motorcycles, automobiles
and other applications
HICOM Polymers Industry 100.00 100.00 Trading of mobile 31 March

Sdn. Bhd. receptacles
219
BERHAD 2018

2018 2017
% %
(Continued)
HICOM Holdings Berhad:
(Continued)
PHN Industry Sdn. Bhd. 100.00 100.00 Manufacturing stamped 31 March

metal parts, sub-assembly
of automotive components
for the motor industry and
design and manufacturing
of dies
Proton City Development 100.00 100.00 Property development 31 March

Alam Flora Sdn. Bhd. 97.37 97.37 Provision of integrated solid 31 March
waste collection and public
cleansing management
services
Scott & English (Malaysia) 70.00 70.00 Investment holding 31 March

Sdn. Bhd.
HICOM-Teck See 51.00 51.00 Manufacturing and sale of 31 March

Manufacturing Malaysia thermo plastic and thermo
Sdn. Bhd. setting products
* Comtrac Sdn. Bhd. 100.00 100.00 Dormant 31 March
* HICOM Engineering Sdn. 100.00 100.00 Dormant 31 March

Bhd.
* HICOM Petro-Pipes Sdn. 100.00 100.00 Dormant 31 March

Bhd.
$
* Bukit Kledek Development - 100.00 Dormant 31 March
Sdn. Bhd.
$
* HICOM Technical and - 100.00 Dormant 31 March
Engineering Services Sdn.
Bhd.
$
* NSE Development Sdn. - 100.00 Dormant 31 March
Bhd.
220
BERHAD 2018

2018 2017
% %
(Continued)
Gadek (Malaysia) Berhad:
Mega Consolidated Sdn. 100.00 100.00 Dormant 31 March

Bhd.
* Uni.Asia Capital Sdn. Bhd. 51.00 51.00 Dormant 31 March
$
* Ladang Gadek - 100.00 Dormant 31 March
Development Sdn. Bhd.
$
* Ladang Kupang - 100.00 Dormant 31 March
PROTON:
$ Proton Marketing Sdn. Bhd. 50.10 100.00 Investment holding 31 March
$ Perusahaan Otomobil 50.10 100.00 Manufacturing, assembly 31 March

Nasional Sdn. Bhd. and sale of motor vehicles
and related products
$ Lotus Advance - 100.00 Investment holding 31 March

Technologies Sdn. Bhd.
Lotus Advance
Technologies Sdn. Bhd.:
$c Lotus Group International - 100.00 Investment holding 31 March

Limited
$
*e Symphony Lotus Limited - 100.00 Investment holding 31 March
$ Proton Engineering - 100.00 Dormant 31 March

Research Technology
Sdn. Bhd.
221
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)

2018 2017
% %
(Continued)
Subsidiary company of
Lotus Group
International Limited:
$c Group Lotus Plc - 100.00 Investment holding 31 March
Group Lotus Plc:
$k Lotus Holdings Inc. - 100.00 Investment holding 31 March
$c Lotus Cars Limited - 100.00 Manufacturing of motor 31 March

vehicles and engineering
consultancy services
$c Lotus Body Engineering - 100.00 Dormant 31 March

Limited
$c Lotus Motorsport Limited - 100.00 Dormant 31 March
Lotus Cars Limited:
$
*h • Lotus Engineering Co., Ltd. - 100.00 Engineering consultancy 31 December
(Shanghai) services
$c Lotus Engineering Limited - 100.00 Engineering consultancy 31 March

services
$c Lotus Youngman UK - 100.00 Dormant 31 March

Automotive Company
Limited
Lotus Holdings Inc.:
$k Lotus Cars USA Inc. - 100.00 Sale and servicing of motor 31 March
vehicles
$k Lotus Engineering Inc. - 100.00 Engineering consultancy 31 March

services
61
222
BERHAD 2018

2018 2017
% %
(Continued)
Lotus Body Engineering
Limited:
$c Lotus Lightweight - 100.00 Investment holding 31 March

Structures Holdings
Limited
Lotus Engineering
Limited:
$ Lotus Engineering - 100.00 Dormant 31 March

Malaysia Sdn. Bhd.
Lotus Lightweight
Structures Holdings
Limited:
$c Lotus Lightweight - 100.00 Manufacturing of automotive 31 March
Structures Limited components
Symphony Lotus
Limited:
$h
• Beijing Lotus Cars Sales - 100.00 Importation and distribution 31 December
Co., Ltd. of motor vehicles and related
spare parts
Proton Marketing Sdn.
Bhd.:
$c Proton Cars (UK) Limited 50.10 100.00 Distribution of motor vehicles 31 March
$a Proton Cars Australia Pty. 50.10 100.00 Importation and distribution 31 March
Limited of motor vehicles and related
spare parts
$ Proton Edar Sdn. Bhd. 50.10 100.00 Sale of motor vehicles, 31 March
related spare parts and
accessories
223
BERHAD 2018

2018 2017
% %
(Continued)
Proton Marketing Sdn.
Bhd.:
(Continued)
$j Proton Motors (Thailand) 50.10 100.00 Importation and distribution 31 March
Company Limited of motor vehicles and
related spare parts
$ Proton Parts Centre Sdn. 50.10 100.00 Trading of motor vehicle 31 March
Bhd. components, spare parts
and accessories
$ HICOM-Potenza Sports - 100.00 Dormant 31 March

Cars Sdn. Bhd.
$
*g Proton Motor Pars Co. - 100.00 Dormant 31 March
(Private Joint Stock)
Proton Edar Sdn. Bhd.:
$ Lotus Cars Malaysia Sdn. 50.10 100.00 Sale of motor vehicles, 31 March
Bhd. related spare parts and
accessories
$f PT Proton Edar Indonesia 50.10 100.00 Sale of motor vehicles, 31 March

accessories
$i Proton Singapore Pte. 50.10 100.00 Dormant 31 March

Limited
Perusahaan Otomobil
Nasional Sdn. Bhd.:
$ Automotive Conversion 50.10 100.00 Conversion and modification 31 March

Engineering Sdn. Bhd. of motor vehicles and
distribution of car
accessories
224
BERHAD 2018

2018 2017
% %
(Continued)
Perusahaan Otomobil
Nasional Sdn. Bhd.:
(Continued)
$ Proton Tanjung Malim Sdn. 50.10 100.00 Assembly of motor vehicles 31 March
Bhd. and related products
$ Miyazu (Malaysia) Sdn. 33.07 66.00 Development, manufacturing 31 March

Bhd. and sale of products and
services relating to dies,
moulds, jigs and stamping
activities
$b Proton Automobiles 50.10 100.00 Dormant 31 March

(China) Limited
$f PT Proton Cikarang - 100.00 Dormant 31 March

Indonesia
DRB-HICOM Northern
Gateway Sdn. Bhd.:
Northern Gateway 100.00 100.00 Design, construction, 31 March

Infrastructure Sdn. Bhd. development and provision
of asset management
services
DRB-HICOM Defence
Technologies Sdn.
Bhd.:
$
* DEFTECH Aviation Sdn. 100.00 96.87 Aircraft composites repair, 31 March
Bhd. engineering and
(formerly known as CTRM maintenance services
Aviation Sdn. Bhd.)
225
BERHAD 2018

2018 2017
% %
(Continued)
DRB-HICOM Defence
Technologies Sdn.
Bhd.:
(Continued)
$
* DEFTECH Systems 100.00 96.87 Design, research and 31 March
Integration Sdn. Bhd. development of aircraft
(formerly known as CTRM avionic and the production
Systems Integration Sdn. and marketing of mission
Bhd.) systems equipment and
services
Defence Services Sdn. 100.00 100.00 Specialised in defence 31 March

Bhd. engineering works including
refurbishment, upgrading of
armoured vehicles and
supply of spare parts
$
* DEFTECH Unmanned 100.00 96.87 Design, research and 31 March
Systems Sdn. Bhd. development, production
(formerly known as and marketing of unmanned
Unmanned Systems aircraft systems
Technology Sdn. Bhd.)
@
* Composites Technology 96.87 96.87 Investment holding and 31 March
Research Malaysia Sdn. development and production
Bhd. of aircraft composites
components
Composites Technology
Research Malaysia Sdn.
Bhd.:
* CTRM Aero Composites 96.87 96.87 Manufacturing of aerospace 31 March

Sdn. Bhd. and non-aerospace
composite components
* CTRM Testing Laboratory 96.87 96.87 Composites laboratory 31 March

Sdn. Bhd. testing services
* Aerotech Design Malaysia 96.87 96.87 Dormant 31 March

Sdn. Bhd.
226
BERHAD 2018

2018 2017
% %
(Continued)
Composites Technology
Research Malaysia Sdn.
Bhd.:
* CTRM Composites 96.87 96.87 Dormant 31 March

Engineering Sdn. Bhd.
$
* CTRM Excelnet - 84.08 Dormant 31 March
Engineering Sdn. Bhd.
PUSPAKOM:
Puspakom Teknik Sdn. 100.00 100.00 Management of billboards 31 March

Bhd. and agent for insurance
products
Flora Areana Sdn. Bhd. 100.00 100.00 Dormant 31 March
MODENAS:
Edaran Modenas Sdn. Bhd. 81.00 81.00 Distribution of motorcycles, 31 March

accessories and servicing of
motorcycles
Bank Muamalat
Malaysia Berhad:
Muamalat Invest Sdn. Bhd. 70.00 70.00 Provision of Islamic fund 31 March
management services
Muamalat Venture Sdn. 70.00 70.00 Islamic venture capital 31 March

Bhd.
Muamalat Nominees 70.00 70.00 Dormant 31 March

(Asing) Sdn. Bhd.
Muamalat Nominees 70.00 70.00 Dormant 31 March

(Tempatan) Sdn. Bhd.
227
BERHAD 2018
DRB-HICOM BERHAD
DRB-HICOM BERHAD
(203430-W)
(203430-W)
(Incorporated in
Malaysia)
NOTES TO
NOTES TO THE
THE FINANCIAL
FINANCIAL STATEMENTS
STATEMENTS -- 31
31 MARCH
MARCH 2018
2018
33 COMPANIES IN
COMPANIES IN THE
THE GROUP
GROUP (Continued)
(Continued)
Effective Equity
Financial
Name of
Name of Company
Company Interest
Interest Principal Activities
Principal Activities Year End
Year End
2018
2018 2017
2017
%% %%
(Continued)
(Continued)
Subsidiary companies
of
Pos Malaysia
Pos Malaysia Berhad:
Berhad:
** Pos Malaysia
Pos Malaysia &
& Services
Services 53.50
53.50 53.50
53.50 Investment holding
Investment holding 31 March
31 March
Holdings Berhad
Holdings Berhad
** PSH Capital
PSH Capital Partners
Partners Sdn.
Sdn. 53.50
53.50 53.50
31 March
Bhd.
Bhd.
** PSH Venture
PSH Venture Capital
Capital Sdn.
Sdn. 53.50
53.50 53.50
31 March
Bhd.
Bhd.
** Datapos (M)
Datapos (M) Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
53.50 Printing and
Printing and insertion
insertion of
of 31 March
31 March
documents for
documents for mailing
mailing
** Pos Digicert
Pos Digicert Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
53.50 Licensed digital
Licensed digital certification
certification 31 March
31 March
authority
authority
** Pos Ar-Rahnu
Pos Ar-Rahnu Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
53.50 Ar-Rahnu (Islamic
Ar-Rahnu (Islamic pawn
pawn 31 March
31 March
broking)
broking)
** Pos Aviation
Pos Aviation Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
53.50 Provision of
Provision of ground
ground 31 March
31 March
handling, in-flight
handling, in-flight catering,
catering,
cargo handling,
cargo handling, warehousing
warehousing
space and
space and supply
supply chain
chain
management including
management including
custom forwarding
custom forwarding agent
agent
services
services
** Effivation Sdn.
Effivation Sdn. Bhd.
Bhd. 53.50
53.50 53.50
53.50 Property investment
Property investment 31 March
31 March
** PMB Properties
PMB Properties Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
31 March
** PSH Properties
PSH Properties Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
31 March
** Poslaju (M)
Poslaju (M) Sdn.
Sdn. Bhd.
Bhd. 53.50
53.50 53.50
53.50 Dormant
Dormant 31 March
31 March
$$ Pos Takaful
Pos Takaful Agency
Agency Sdn.
Sdn. 53.50
53.50 Dormant
Dormant 31 March
31 March
** 53.50
53.50
Bhd.
Bhd.
(under members’
voluntary
liquidation)
liquidation)
228
67
67
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)

2018 2017
% %
(Continued)
(Continued)
$
* PSH Allied Berhad 53.50 53.50 Dormant 31 March
liquidation)
Pos Malaysia &
Services Holdings
Berhad:
*b PSH Investment Holding 53.50 53.50 Dormant 31 March

(BVI) Ltd.
PSH Capital Partners
Sdn. Bhd.:
* Prestige Future Sdn. Bhd. 53.50 53.50 Dormant 31 March
PSH Venture Capital
Sdn. Bhd.:
* PSH Express Sdn. Bhd. 53.50 53.50 Air courier services and 31 March
fulfilment business
PSH Properties Sdn.
Bhd.:
* Real Riviera Sdn. Bhd. 53.50 53.50 Property investment 31 March
Pos Aviation Sdn. Bhd.:
* Pos Asia Cargo Express 53.50 53.50 Provision of air cargo 31 March
Sdn. Bhd. transport
* Pos Aviation Engineering 53.50 53.50 Provision of aircraft 31 March

Services Sdn. Bhd. maintenance and
engineering services
68
229
BERHAD 2018

2018 2017
% %
(Continued)
Pos Aviation Sdn. Bhd.:
(Continued)
* Pos Logistics Berhad 53.50 53.50 Provision of total logistics 31 March

services and inventory
solutions
Pos Asia Cargo
Express Sdn. Bhd.:
*d Gading Sari Aviation 53.50 53.50 Provision of aircraft leasing 31 March

Services Ltd. services
Pos Logistics Berhad:
* Aman Freight (Malaysia) 53.50 53.50 Freight and forwarding and 31 March
Sdn. Bhd. other related services
* Cougar Logistics 53.50 53.50 Freight and forwarding, 31 March

(Malaysia) Sdn. Bhd. warehousing and other
related services
* Diperdana Kontena Sdn. 53.50 53.50 Leasing of vehicles and 31 March

Bhd. mechanical equipment
* KP Asia Auto Logistics 53.50 53.50 Warehousing and inventory 31 March

Sdn. Bhd. solutions, forwarding,
shipping and transport agent
* KP Distribution Services 53.50 53.50 Distribution services 31 March

Sdn. Bhd.
* Malaysian Shipping 53.50 53.50 Shipping agency services, 31 March

Agencies Sdn. Bhd. freight and forwarding and
other related services
* Pengangkutan Aspacs 53.50 53.50 Agent for freight, forwarding 31 March

Sdn. Bhd. and other related services
* PNSL Berhad 53.50 53.50 Shipping agency and 31 March

chartering services
230
BERHAD 2018

2018 2017
% %
(Continued)
of Pos Logistics
Berhad:
(Continued)
* Westport Distripark (M) 53.50 53.50 Business of a distribution 31 March

Sdn. Bhd. park
* Diperdana Utara Sdn. 53.50 53.50 Dormant 31 March

Bhd.
* Kaypi Southern Terminal 53.50 53.50 Dormant 31 March

Sdn. Bhd.
* North Terminal Sdn. Bhd. 53.50 53.50 Dormant 31 March
*j # K.P.B. Sadao I.C.D. 53.50 53.50 Dormant 31 March

Company Limited
$
* Asia Pacific Freight 53.50 53.50 Dormant 31 March
System Sdn. Bhd.
(under members’
voluntary liquidation)
$
* Diperdana Selatan Sdn. 53.50 53.50 Dormant 31 March
Bhd.
(under members’
$
* Diperdana Terminal 53.50 53.50 Dormant 31 March
Services Sdn. Bhd.
(under creditors’
$
* Kaypi Logistics Depot 53.50 53.50 Dormant 31 March
Sdn. Bhd.
(under members’
of Aman Freight
(Malaysia) Sdn. Bhd.:
* Aman Freight Services 53.50 53.50 Dormant 31 March

Sdn. Bhd.
231
BERHAD 2018

2018 2017
% %
(Continued)
Aman Freight
(Continued)
$
* Maya Perkasa (M) Sdn. 53.50 53.50 Dormant 31 March
Bhd.
liquidation)
Malaysian Shipping
Agencies Sdn. Bhd.:
* Konsortium Logistik 53.50 53.50 Forwarding and related 31 March

(Sabah) Sdn. Bhd. services
* Konsortium Logistik 53.50 53.50 Dormant 31 March

(Sarawak) Sdn. Bhd.
PNSL Berhad:
* PNSL Risk Management 53.50 53.50 Insurance agency service 31 March

Sdn. Bhd.
* Parcel Tankers Malaysia 27.29 27.29 Sea chartering services 31 March

Sdn. Bhd.
Media City Ventures
Sdn. Bhd.:
Media City Holdings Sdn. 51.00 51.00 Investment holding 31 March

Bhd.
Media City Holdings
Sdn. Bhd.:
Media City Development 51.00 51.00 Construction, operation and 31 March

Sdn. Bhd. maintenance of
infrastructure and broadcast
system
232
BERHAD 2018

2018 2017
% %
(Continued)
Intrakota Komposit
Sdn. Bhd.:
$
* Gemilang Komposit Auto - 70.00 Dormant 31 March
Sdn. Bhd.
$
* Intrakota Consolidated - 47.34 Dormant 31 March
Berhad
$
* Mega Komposit Auto Sdn. - 70.00 Dormant 31 March
Bhd.
$
* S.J. Kenderaan Sdn. Bhd. - 70.00 Dormant 31 March
$
* S.J. Binateknik Sdn. Bhd. - 42.00 Dormant 31 March
$
* Syarikat Pengangkutan - 69.99 Dormant 31 March
Malaysia Sendirian
Berhad
USF-HICOM Holdings
Sdn. Bhd.:
* DRB-HICOM Commercial 100.00 100.00 Sale of motor vehicles and 31 March

Vehicles Sdn. Bhd. related spare parts and
accessories
DRB-HICOM
Commercial Vehicles
Sdn. Bhd.:
* HICOM Premier Malaysia 100.00 100.00 Dormant 31 March

Sdn. Bhd.
(under creditors’ voluntary
liquidation)
233
BERHAD 2018

2018 2017
% %
(Continued)
HICOM Premier
Malaysia Sdn. Bhd.:
$
* Euro Truck & Bus - 100.00 Dormant 31 March
(Malaysia) Sdn. Bhd.
Automotive
Corporation Holdings
Sdn. Bhd.:
* Automotive Corporation 100.00 100.00 Dealers of motor vehicles, 31 March

(Malaysia) Sdn. Bhd. related spare parts,
accessories and related
services
Scott & English
HICOM United Leasing 70.00 70.00 Dormant 31 March

Sdn. Bhd.
liquidation)
Comtrac Sdn. Bhd.:
* Comtrac Builders Sdn. 100.00 100.00 Dormant 31 March

Bhd.
* Isti-Emas Sdn. Bhd. 100.00 100.00 Dormant 31 March
* Comtrac Glenview Sdn. 51.00 51.00 Dormant 31 March

Bhd.
* Comtrac Development 100.00 100.00 Dormant 31 March

Sdn. Bhd.
liquidation)
$
* Comtrac Premises Sdn. - 100.00 Dormant 31 March
Bhd.
234
BERHAD 2018

2018 2017
% %
(Continued)
Comtrac Sdn. Bhd.:
(Continued)
$
* Comtrac-Sabkar - 51.00 Dormant 31 March
$
* Comtrac Trading Sdn. Bhd. - 100.00 Dormant 31 March
Comtrac Glenview Sdn.
Bhd.:
* Glenview Management 51.00 51.00 Dormant 31 March

liquidation)
EON:
DRB-HICOM EZ-Drive 100.00 100.00 Provision of car rental, 31 March

Sdn. Bhd. leasing of passenger and
commercial vehicles
EON Auto Mart Sdn. Bhd. 100.00 100.00 Sale of motor vehicles and 31 March
servicing of vehicles
Euromobil Sdn. Bhd. 100.00 100.00 Sale of motor vehicles and 31 March
HICOM Auto Sdn. Bhd. 100.00 100.00 Sale of motor vehicles and 31 March
EON Technologies Sdn. 100.00 100.00 Dormant 31 March

Bhd.
liquidation)
$ EONMobil Sdn. Bhd. - 100.00 Dormant 31 March
$ EON Trading Sdn. Bhd. - 100.00 Dormant 31 March
235
BERHAD 2018

2018 2017
% %
(Continued)
DRB-HICOM EZ-Drive
Sdn. Bhd.:
DRB-HICOM Leasing Sdn. 100.00 100.00 Provision of leasing of 31 March

Bhd. passenger and commercial
vehicles
HICOM Berhad:
Dekad Kaliber Sdn. Bhd. 100.00 100.00 Provision of engineering and 31 March
construction services
$ EON Properties Sdn. Bhd. 100.00 100.00 Investment and 31 March

management of properties
Glenmarie Cove 100.00 100.00 Property development 31 March

Glenmarie Properties Sdn. 100.00 100.00 Investment holding and 31 March

Bhd. provision of management
services
HB Property Development 100.00 100.00 Property investment 31 March

Sdn. Bhd.
* HICOM Builders Sdn. Bhd. 100.00 100.00 Dormant 31 March
Glenmarie Properties
Sdn. Bhd.:
Benua Kurnia Sdn. Bhd. 100.00 100.00 Property development 31 March
HICOM Indungan Sdn. 100.00 100.00 Property development 31 March

Bhd.
236
BERHAD 2018

2018 2017
% %
(Continued)
Glenmarie Properties
Sdn. Bhd.:
(Continued)
Neraca Prisma Sdn. Bhd. 100.00 100.00 Property development 31 March
* HICOM Vertex Sdn. Bhd. 100.00 100.00 Property holding 31 March
$ Proton Hartanah Sdn. Bhd. 100.00 100.00 Investment holding 31 March
Puncak Permai Sdn. Bhd. 58.00 58.00 Investment holding 31 March
* Kenyir Splendour Berhad 100.00 100.00 Dormant 31 March
* HICOM Megah Sdn. Bhd. 100.00 100.00 Dormant 31 March

liquidation)
* Glenmarie Asset 100.00 100.00 Dormant 31 March

Management Sdn. Bhd.
liquidation)
Jubli Premis Sdn. Bhd. 100.00 100.00 Dormant 31 March

liquidation)
HICOM Indungan Sdn.
Bhd.:
* Rebak Island Marina 100.00 100.00 Operation of a marina resort 31 March

Berhad and property development
HICOM Tan & Tan Sdn. 50.00 50.00 Dormant 31 March

Bhd.
Proton Hartanah Sdn.
Bhd.:
$ Proton Properties Sdn. 100.00 100.00 Property development and 31 March

Bhd. related activities
237
BERHAD 2018

2018 2017
% %
(Continued)
Puncak Permai Sdn.
Bhd.:
Horsedale Development 70.60 70.60 Property development, 31 March

Berhad management of hotel and
golf resort
Horsedale Development
Berhad:
Kesturi Hektar Sdn. Bhd. 70.60 70.60 Dormant 31 March
HICOM Builders Sdn.
Bhd.:
$
* Imatex Management - 100.00 Dormant 31 March
Services Sdn. Bhd.
HICOM Polymers
Industry Sdn. Bhd.:
HICOM HBPO Sdn. Bhd. 60.00 60.00 Assembly, manufacturing 31 March

and sale of front end
modules and related
components
PHN Industry Sdn.
Bhd.:
DRB-HICOM Mechatronics 100.00 100.00 Manufacturing, assembling 31 March

Sdn. Bhd. and trading of automotive
electrical & electronics
components
Oriental Summit Industries 100.00 100.00 Contract manufacturing of 31 March

Sdn. Bhd. motorcycle and automobile
parts and components
238
BERHAD 2018

2018 2017
% %
(Continued)
Oriental Summit
Industries Sdn. Bhd.:
Automotive Components 100.00 100.00 Dormant 31 March

Engineering Centre Sdn.
Bhd.
Alam Flora Sdn. Bhd.:
DRB-HICOM 97.37 97.37 Provision of integrated solid 31 March

Environmental Services waste collection, recycling
Sdn. Bhd. and integrated facility
management services
HICOM-Teck See
Manufacturing
Malaysia Sdn. Bhd.:
*j HICOM Automotive 50.99 50.99 Manufacturing of plastic 31 March

Plastics (Thailand) injected parts for automotive
Limited industry
JOINT VENTURES
Joint ventures of
DRB-HICOM Berhad:
* Isuzu Service Center Sdn. 73.69 73.69 Provision of after sales 31 March
Bhd. services, sale of spare parts
and automobile workshop
Isuzu Malaysia Sdn. Bhd. 48.42 48.42 Importation, assembly and 31 March
distribution of motor
vehicles, components and
parts
$ Exedy (Malaysia) Sdn. 45.00 45.00 Manufacturing of car manual 31 December

Bhd. clutches, springs and related
parts
239
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)

2018 2017
% %
JOINT VENTURES
(Continued)
Joint ventures of
HICOM Holdings
Berhad:
HICOM-YAMAHA 45.00 45.00 Manufacturing and assembly 31 March

Manufacturing Malaysia of motorcycle engines and
Sdn. Bhd. parts
$
*h • Goldstar LOTUS 50.00 50.00 Dormant 31 December
Automobile Co., Ltd.
HICOM-HONDA 48.00 48.00 Dormant 31 March

Manufacturing
Malaysia Sdn. Bhd.
Joint venture of Group

Lotus Plc:
$
*c Lotus Finance Limited - 49.90 Dormant 31 December
Joint venture of Proton

Edar Sdn. Bhd.:
$
* Proton Commerce Sdn. 25.05 50.00 Providing hire purchase or 31 March
Bhd. leasing facilities in respect of
the purchase or use of
PROTON and other vehicles
Joint venture of EON:
* Mitsubishi Motors Malaysia 48.00 48.00 Importation, assembly, 31 March

Sdn. Bhd. distribution and trading of
motor vehicles, components,
spare parts and accessories
Joint venture of
Horsedale Development
Berhad:
HICOM-Gamuda 35.30 35.30 Housing and property 31 March

Development Sdn. Bhd. development and rental of
properties
79
240
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)

2018 2017
% %
ASSOCIATED COMPANIES
Associated companies of
DRB-HICOM Berhad:
* Honda Malaysia Sdn. Bhd. 34.00 34.00 Investment holding, assembly, 31 March
manufacturing and sale of
motor vehicles, accessories
and components, trading of
imported motor vehicles and
related spare parts
Marak Unggul Sdn. Bhd. 29.99 29.99 Dormant 31 December
Suzuki Malaysia Automobile 40.00 40.00 Dormant 31 March

Sdn. Bhd.
(Under members’ voluntary
liquidation)
HICOM Holdings Berhad:
ISUZU HICOM Malaysia 49.00 49.00 Manufacturing, assembly and 31 March

Sdn. Bhd. sale of commercial vehicles
* Suzuki Motorcycle 29.00 29.00 Investment holding and 31 March

Malaysia Sdn. Bhd. manufacturing, assembly and
distribution of motorcycles and
parts
$
* Marutech Elastomer 25.00 25.00 Manufacturing of automotive 31 March
Industries Sdn. Bhd. parts
Associated company of
Proton Automobiles
(China) Limited:
$
*h• Goldstar Proton Automobiles 24.55 49.00 Dormant 31 December
Co., Limited
Proton Cars (UK)
Limited:
$
*c Proton Finance Limited 25.04 49.99 Dormant 31 December
80
241
BERHAD 2018

2018 2017
% %
ASSOCIATED COMPANIES
(Continued)
* CEN Sdn. Bhd. 22.74 22.74 Investment holding 31 December
* Elpos Print Sdn. Bhd. 21.40 21.40 General printing business 31 December
and is one of the suppliers of
the Group providing printing
services
* Pospay Exchange Sdn. Bhd. 26.75 26.75 Dormant 31 December
EON:
* SRT-EON Security Services 40.00 40.00 Provision of security services 30 June

Sdn. Bhd.
Oriental Summit
Industries Sdn. Bhd.:
Faurecia HICOM Emissions 35.00 35.00 Manufacturing, assembling, 31 December

Control Technologies (M) delivering and selling of cold
Sdn. Bhd. end and hot end emissions
control systems components
242
BERHAD 2018
@ All shares in these companies have been charged for bank borrowings as disclosed in Notes
38 and 45.
* These companies in the Group are audited by other firms of auditors other than Ernst &
Young, Malaysia and member firms of Ernst & Young Global.
$ The changes in the effective equity interest/reclassification of these companies in the Group
are as disclosed in Notes 52 and 53.
# Inclusive of the effective beneficial interest of 27.28% (2017: 27.28%) held in trust.
• Due to the local statutory regulation’s requirement, the financial year end of those subsidiary
companies incorporated in People’s Republic of China is different from the Group’s
financial year end.
Entities classified as disposal groups held for sale as disclosed in Note 27.
a The country of incorporation is Australia.
b The country of incorporation is British Virgin Islands.
c The country of incorporation is England.
d The place of incorporation is Federal Territory of Labuan.
e The country of incorporation is Hong Kong.
f The country of incorporation is Indonesia.
g The country of incorporation is Iran.
h The country of incorporation is People’s Republic of China.
i The country of incorporation is Singapore.
j The country of incorporation is Thailand.
k The country of incorporation is United States of America.
All the other companies are incorporated in Malaysia.
As mutually agreed by respective shareholders, the financial year end of certain joint ventures and
associated companies do not coincide with the Group.
243
BERHAD 2018
4 REVENUE
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
Sale of goods 6,458,714 6,998,058 - -

Rendering of services 3,764,472 2,769,293 - -
Construction contracts 1,284,761 972,746 - -
Banking 1,204,798 1,204,160 - -
Sale of land and
development properties 76,932 114,077 - -
Dividend income from
subsidiary companies,
a joint venture and an
associated company - - 698,894 806,252
Distribution from a
subsidiary company - - 353,000 -
Interest income from
subsidiary companies - - 3,503 76,970
Rental income from
subsidiary companies
and an associated
company - - 14,015 14,093
12,789,677 12,058,334 1,069,412 897,315
5 COST OF SALES
Group
2018 2017
RM’000 RM’000
Cost of inventories 6,491,365 6,789,849

Cost of services rendered 3,103,427 2,248,693
Cost of construction contracts 1,002,830 809,961
Cost of banking 529,300 646,235
Cost of sale of land and development properties 66,974 61,292
11,193,896 10,556,030
244
BERHAD
DRB-HICOM
NOTES TO THE FINANCIAL STATEMENTS – 31 MARCH 2018
6 PROFIT/(LOSS) BEFORE TAXATION
Profit/(loss) before taxation is arrived at after charging/(crediting) the following:
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Amortisation of:
- concession assets 14 11,905 11,819 - -
- intangible assets 21 185,202 235,186 - -
- prepaid lease properties 15 1,768 1,393 - -
245
Auditors’ remuneration 4,760 6,546 350 300
Depreciation of property, plant and equipment 13 699,605 668,337 42 251
Directors’ emoluments 7 5,845 6,599 776 915
Finance costs: 9
- accretion of discounts related to RCCPS 15,508 - - -
- bank borrowings 328,476 348,309 97,808 108,117
- subsidiary companies - - 38,404 46,815
- other finance charges 7,642 11,503 1,179 1,110
- unwinding of discount 8,641 11,093 1,868 2,666
Financing written off 6,684 1,689 - -
Impairment loss of:
- intangible assets 21 262 55,593 - -
- property, plant and equipment 13 19,812 8,049 - -
2018
Annual Report
BERHAD
DRB-HICOM
6 PROFIT/(LOSS) BEFORE TAXATION (Continued)
Profit/(loss) before taxation is arrived at after charging/(crediting) the following: (Continued)
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Impairment loss of: (Continued)

- investment in subsidiary companies 18(e) - - 2,564,697 360,154
- property development costs 17(b) 40,440 - - -
Inventories written off/down (net of write backs) 61,584 17,730 - -
246
Loss on re-measurement of the previously held equity interest in an
associated company at its acquisition-date fair value - 130,221 - -
Marked to market loss/(gain) on derivatives (net) 33(b) 12,522 (54,025) - -
Provision for concession assets 41,129 34,967 - -
Provision for liabilities and charges (net) 39 61,831 61,218 - -
Realised foreign exchange differences (net) 42,236 31,483 1,318 -
Rental of motor vehicles 33,086 28,641 - -
Rental of plant and machinery and equipment 56,648 43,772 - -
Rental of premises 132,785 122,591 - -
Research and development expenditure 15,802 27,501 - -
Staff costs 8 2,628,900 2,215,979 - -
2018
Annual Report
BERHAD
DRB-HICOM BERHAD
DRB-HICOM
(203430-W)
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Write off of:

- intangible assets 21 7,306 71,348 - -
- property, plant and equipment 13 4,982 3,729 - -
Amortisation of deferred income 37 (111,286) (79,125) - -
247
Dividend income: 4
- a joint venture - - (1,078) (797)
- an associated company - - (112,370) (110,296)
- other investments (202) (1,328) - -
(Gain)/loss on fair value adjustments of:
- investment properties 16 (16,990) (15,647) 47 (6,416)
- investment securities: financial assets at fair value through profit or loss (11,086) (4,812) - -
Gain on disposals of:
- assets held for sale - (4,213) - -
- investment properties (712) (68) - (500)
- investment securities: available-for-sale (35,069) (17,983) - -
86
2018
Annual Report
BERHAD
DRB-HICOM
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Gain on disposals of: (Continued)

- investment securities: financial assets at fair value through profit or loss - (907) - -
- property, plant and equipment (16,742) (52,339) (16) -
- subsidiary companies 53(ii)/53(i)(b) - (398,257) (449,898) -
248
Interest income on:
- short term deposits (71,243) (57,375) (14,328) (8,207)
(Reversal of impairment of)/impairment loss of:
- investment securities: available-for-sale (2,406) 16,899 - -
- prepaid lease properties 15 (26) - - -
Rental income (29,554) (30,854) (14,015) (14,093)
Unrealised foreign exchange differences (net) (148,884) 81,915 - -
(Write back of)/allowance for doubtful debts (net) (3,697) 55 - 18
(Write back of)/allowance for financing of customers 25(b) (47,815) 75,778 - -
2018
Annual Report
BERHAD 2018
7 DIRECTORS’ EMOLUMENTS
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
Non-executive Directors:
- fees 850 905 623 745
- allowances and other
benefits 1,379 1,858 153 170
Executive Directors:
- salaries, bonuses, fees,
allowances and other
benefits 3,237 3,429 - -
- defined contribution
plan 379 407 - -
5,845 6,599 776 915
The estimated value of benefits-in-kind received by Directors amounted to RM123,900 (2017:

RM320,176).
8 STAFF COSTS
Group
2018 2017
Salaries, wages, bonuses, allowances and other

benefits 2,323,283 1,953,792
Defined contribution plan 305,313 248,641
Defined benefit plan 41(d) 304 13,546
2,628,900 2,215,979
249
BERHAD 2018
9 FINANCE COSTS
Group Company
2018 2017 2018 2017
Note RM’000 RM’000 RM’000 RM’000
Interest expense
on borrowings 333,936 356,757 136,212 154,932
Hire purchase
and finance
lease charges 2,407 2,492 - -
Total interest
expense 336,343 359,249 136,212 154,932
Less: Interest
expense
capitalised in
- property, plant
and
equipment 13(c) (7,867) (9,568) - -
- intangible
assets 21(b) - (964) - -
- property
development
costs 17(d) - (408) - -
(7,867) (10,940) - -
Recognised in
profit or loss 328,476 348,309 136,212 154,932
Accretion of
discounts
related to
RCCPS 15,508 - - -
Unwinding of
discount 8,641 11,093 1,868 2,666
Other finance
charges 7,642 11,503 1,179 1,110
360,267 370,905 139,259 158,708
250
BERHAD 2018
10 TAXATION
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Statement of
Comprehensive
Income:
Current taxation
- Malaysian tax 48,356 66,648 5,945 4,981
- Foreign tax 101 1,229 - -
- Under/(over)
provision in
respect prior
financial year 18,018 (4,737) (1,390) (2,053)
66,475 63,140 4,555 2,928
Deferred taxation 22
- Current year 64,468 (35,918) 11,985 (631)
- (Over)/under
provision in
respect prior
financial year (11,119) 9,672 2,213 -
53,349 (26,246) 14,198 (631)
Total taxation charge 119,824 36,894 18,753 2,297
Deferred taxation
related to other
comprehensive
income 22 (5,109) (3,660) - -
Income tax is calculated at the statutory tax rate of 24% (2017: 24%) on the estimated
assessable profit for the year.
251
BERHAD 2018
10 TAXATION (Continued)
The explanation of the relationship between taxation charge and profit/(loss) before taxation is
as follows:
Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000
Numerical reconciliation of
effective taxation charge
Profit/(loss) before taxation 415,130 (227,698) (1,180,776) 358,816
Tax calculated at the

Malaysian tax rate of 24%
(2017: 24%) 99,631 (54,648) (283,386) 86,116
Tax effects of:

- different tax rates 1,054 2,453 - -
- expenses not deductible
for tax purposes 232,518 144,641 661,746 111,734
- income not subject to tax (441,993) (227,664) (360,430) (193,500)
- temporary differences not
recognised 106,638 5,617 - -
- tax allowances not
recognised 48,621 91,749 - -
- tax losses not recognised 170,942 167,691 - -
- utilisation of previously
unrecognised tax
allowances (13,871) (7,121) - -
- share of results of joint
ventures (4,277) (9,152) - -
- share of results of
associated companies (86,338) (81,607) - -
Under/(over) provision of
current taxation in respect
of prior financial year 18,018 (4,737) (1,390) (2,053)
(Over)/under provision of
deferred taxation in
respect of prior financial
year (11,119) 9,672 2,213 -
Taxation charge 119,824 36,894 18,753 2,297
252
BERHAD 2018
10 TAXATION (Continued)
Unabsorbed tax losses, unutilised capital allowances, unutilised reinvestment allowances,

unutilised investment tax allowances and other deductible temporary differences of the Group
which are available for set-off against future taxable profit for which the tax effects have not
been recognised in the financial statements are shown below:
Group
2018 2017
RM’000 RM’000
Unabsorbed tax losses 2,708,119 1,995,862

Unutilised capital allowances 2,035,737 1,896,594
Unutilised reinvestment allowances 2,288,591 2,278,014
Unutilised investment tax allowances 29,804 34,731
Other deductible temporary differences 630,650 186,323
11 DIVIDENDS
Dividends paid and proposed are as follows:
Group and Company

2018 2017
RM’000 RM’000
In respect of the financial year ended 31 March 2017:
Single tier first and final dividend of 1.0 sen per share,
paid on 3 October 2017 (2016: Single tier first and final
dividend of 2.0 sen per share, paid on 1 November 2016) 19,332 38,665
The Directors recommend the payment of a single tier first and final dividend of 3.0 sen per
share amounting to RM57,997,112 in respect of the financial year ended 31 March 2018,
subject to the approval of shareholders at the forthcoming Annual General Meeting of the
Company.
12 EARNINGS/(LOSS) PER SHARE
The basic and diluted earnings/(loss) per share is calculated by dividing the Group’s net
profit/(loss) attributable to Owners of the Company by the number of shares in issue during
the financial year.
Group
2018 2017
(Restated)
Net profit/(loss) attributable to Owners of the Company
(RM’000) 498,441 (456,643)
Number of ordinary shares in issue (’000) 1,933,237 1,933,237
Basic and diluted earnings/(loss) per share (sen) 25.78 (23.62)
253
BERHAD
DRB-HICOM
13 PROPERTY, PLANT AND EQUIPMENT
Office
Buildings, equipment,
golf course furniture Capital
Freehold Leasehold and Plant and Motor and work-in-
land land improvements machinery vehicles Vessels fittings progress Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
GROUP
2018
At 1 April 2017 1,147,987 411,525 2,301,708 1,349,465 335,387 - 442,575 474,784 6,463,431
companies 53(i)(b) (25,788) (5,989) (92,754) (12,876) (1) - (53,871) (38,901) (230,180)
254
Additions 2 - 28,882 73,625 93,943 137,548 49,303 348,017 731,320
Disposals (3,938) - (14,188) (1,098) (5,540) - (344) (21) (25,129)
Written off 6 - - (400) (1,830) (368) - (45) (2,339) (4,982)
6&
Depreciation 53(i)(b) - (15,736) (196,038) (286,045) (106,257) (2,068) (100,737) - (706,881)
6&
Impairment losses 53(i)(b) (50) - (11,981) (3,360) (1,628) - (2,317) (6,134) (25,470)
Currency translation
differences (763) - 3,443 (48) (70) - 1,301 872 4,735
Reclassification 1,027 5,691 203,751 210,961 5,475 - 26,708 (453,613) -
Transfer to prepaid lease
properties 15 - (10,095) - - - - - - (10,095)
Transfer from/(to)
investment properties 16 7,264 480 (6,394) - - - - - 1,350
Sub-total carried forward 1,125,741 385,876 2,216,029 1,328,794 320,941 135,480 362,573 322,665 6,198,099
2018
Annual Report
BERHAD
DRB-HICOM
13 PROPERTY, PLANT AND EQUIPMENT (Continued)
Office
land land improvements machinery vehicles Vessels fittings progress Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
GROUP
2018(Continued)
Sub-total brought
forward 1,125,741 385,876 2,216,029 1,328,794 320,941 135,480 362,573 322,665 6,198,099
Adjustment (a) - 125 2,195 - - - - - 2,320
Transfer from/(to)
255
intangible assets 21 - - - 1,682 - - - (8,950) (7,268)
Transfer from inventories 4,739 - - 896 22,013 - - 961 28,609
Transfer to assets held
for sale 27 (7,487) (8,932) (34,515) - - - - - (50,934)
for sale under disposal
group 27 (63,395) - (159,246) (2,146) (219) - (4,289) (2,011) (231,306)
At 31 March 2018 1,059,598 377,069 2,024,463 1,329,226 342,735 135,480 358,284 312,665 5,939,520
Cost 1,060,928 624,157 3,992,144 6,987,898 874,632 137,548 2,128,694 344,178 16,150,179
Accumulated depreciation - (246,835) (1,845,489) (5,342,087) (526,345) (2,068) (1,767,924) - (9,730,748)
Accumulated impairment
losses (1,330) (253) (122,192) (316,585) (5,552) - (2,486) (31,513) (479,911)
Net book value 1,059,598 377,069 2,024,463 1,329,226 342,735 135,480 358,284 312,665 5,939,520
(a) The adjustment relates to gain on fair value adjustment arising upon the transfer of property, plant and equipment to investment properties in a
subsidiary company.
2018
Annual Report
BERHAD
DRB-HICOM
Office
land land improvements machinery vehicles fittings progress Total
Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
GROUP
2017 (Restated)
At 1 April 2016 1,121,039 116,572 2,103,072 1,372,610 275,988 270,364 448,405 5,708,050
Acquisitions of subsidiary
companies 52(iv) 4,208 283,285 212,851 63,240 49,682 109,118 42,807 765,191
256
companies 53(ii) - - (55) - - (157) - (212)
Additions - 1,650 38,433 59,701 57,699 215,939 195,082 568,504
Disposals (3,886) (530) (7,453) (14,392) (13,957) (4,556) (323) (45,097)
Written off 6 - - (1,989) (345) (580) (490) (325) (3,729)
Depreciation 6 - (8,861) (128,510) (313,079) (69,990) (147,897) - (668,337)
(Impairment losses)/reversal
of impairment 6 - (22) (3,333) (862) (14) (97) (3,721) (8,049)
differences 3,764 961 7,213 (4,034) 88 2,381 (757) 9,616
Reclassification - 4,070 76,489 181,216 - - (261,775) -
Transfer from investment
properties 16 - 10,800 1,670 - - - - 12,470
Sub-total carried forward 1,125,125 407,925 2,298,388 1,344,055 298,916 444,605 419,393 6,338,407
2018
Annual Report
BERHAD
DRB-HICOM
Office
land land improvements machinery vehicles fittings progress Total
GROUP
2017 (Restated)
(Continued)
Sub-total brought forward 1,125,125 407,925 2,298,388 1,344,055 298,916 444,605 419,393 6,338,407
Transfer (to)/from intangible
assets 21 - - - - - (2,030) 55,391 53,361
257
Transfer from inventories - - - 5,410 36,471 - - 41,881
Transfer from assets held for
sale 580 3,600 3,320 - - - - 7,500
Transfer from land held for
property development 17(a) 6,500 - - - - - - 6,500
Transfer from property
development costs 17(b) 15,782 - - - - - - 15,782
At 31 March 2017 1,147,987 411,525 2,301,708 1,349,465 335,387 442,575 474,784 6,463,431
Cost 1,164,862 657,711 4,327,748 7,017,019 808,859 2,254,227 500,162 16,730,588

Accumulated depreciation - (245,570) (1,825,588) (5,340,837) (468,850) (1,809,090) - (9,689,935)
losses (16,875) (616) (200,452) (326,717) (4,622) (2,562) (25,378) (577,222)
Net book value 1,147,987 411,525 2,301,708 1,349,465 335,387 442,575 474,784 6,463,431
2018
Annual Report
BERHAD 2018
Office
equipment,
furniture
Plant and Motor and
machinery vehicles fittings Total
Note RM’000 RM’000 RM’000 RM’000
COMPANY
2018
At 1 April 2017 - 9 111 120
Disposal - (4) - (4)
Depreciation 6 - - (42) (42)
At 31 March 2018 - 5 69 74
Cost 12,154 269 435 12,858

Accumulated depreciation (12,154) (264) (366) (12,784)
Net book value - 5 69 74
2017
At 1 April 2016 200 9 162 371
Depreciation 6 (200) - (51) (251)
At 31 March 2017 - 9 111 120
Cost 12,154 525 435 13,114

Accumulated depreciation (12,154) (516) (324) (12,994)
Net book value - 9 111 120
(b) Certain property, plant and equipment of the Group with a net book value of
RM1,371,938,000 (2017: RM2,100,167,000) have been charged as security for bank
borrowings (Notes 38 and 45).
(c) During the financial year, the borrowing costs capitalised for the purpose of
construction of plants and buildings amounted to RM7,867,000 (2017: RM9,568,000)
at the interest rates range from 6.28% to 6.57% (2017: 5.74% to 6.46%) per annum.
(d) The title deeds for certain landed properties of a subsidiary company with net carrying
value amounting to RM1,427,000 (2017: RM1,440,000) have yet to be issued in the
name of the subsidiary company as at 31 March 2018 by the relevant authorities.
(e) The leasehold land of the Group includes leasehold land of a postal subsidiary
company with a lease period of 60 years commencing from 1 January 1992. The cost
capitalised of RM208,435,000 (2017: RM208,435,000) is in respect of the lease for the
first 30 years as stipulated in the agreement signed between the postal subsidiary
company and the Government. The cost in respect of the remaining 30 year lease
period is subject to the agreement with the authorities, no later than 31 December
2021, and thereafter will be recognised accordingly.
258
BERHAD 2018
(f) The details of motor vehicles and plant and machinery acquired under hire purchase
and finance lease agreements included under property, plant and equipment of the
Group are as follows:
Group
2018 2017
RM’000 RM’000
Additions during the financial year:

- Motor vehicles 35,095 2,611
- Plant and machinery - 1,093
35,095 3,704
Net book value at financial year end:

- Motor vehicles 63,525 31,503
- Plant and machinery 21,893 26,577
85,418 58,080
14 CONCESSION ASSETS
Group
2018 2017
At beginning of the financial year 217,152 227,051

Additions 3,855 -
Effect of changes in estimates 40 - 1,920
Amortisation 6 (11,905) (11,819)
At end of the financial year 209,102 217,152
Cost 284,074 280,219

Accumulated amortisation (74,972) (63,067)
Net book value 209,102 217,152
(a) Certain concession assets of the Group with a net book value of RM192,469,000
(2017: RM204,690,000) have been charged as security for bank borrowings (Notes 38
and 45).
(b) The details of concession assets of the Group acquired under hire purchase and
finance lease agreements are as follows:
Group
2018 2017
RM’000 RM’000
Net book value at financial year end 18,528 19,215
259
BERHAD 2018
15 PREPAID LEASE PROPERTIES
Short term Long term

leasehold leasehold
land land Total
Note RM’000 RM’000 RM’000
Group
2018
At 1 April 2017 7,752 43,061 50,813
Amortisation 6 (948) (820) (1,768)
Reversal of impairment loss 6 26 - 26
Transfer from property, plant and
equipment 13 9,547 548 10,095
Transfer to assets held for sale 27 - (2,918) (2,918)
Transfer to assets held for sale
under disposal groups 27 - (3,040) (3,040)
At 31 March 2018 16,377 36,831 53,208
Cost 44,412 38,447 82,859

Accumulated amortisation (27,942) (1,616) (29,558)
Accumulated impairment (93) - (93)
Net book value 16,377 36,831 53,208
2017
At 1 April 2016 8,334 43,690 52,024
Additions - 182 182
Amortisation 6 (582) (811) (1,393)
At 31 March 2017 7,752 43,061 50,813
Cost 9,588 46,523 56,111

Accumulated amortisation (1,836) (3,462) (5,298)
Net book value 7,752 43,061 50,813
Certain prepaid lease properties of the Group with a net book value of RM2,578,000 (2017:
RM2,644,000) have been charged as security for bank borrowings (Notes 38 and 45).
260
BERHAD 2018
16 INVESTMENT PROPERTIES
Group Company
2018 2017 2018 2017
Note RM’000 RM’000 RM’000 RM’000
At fair value
At beginning of the
financial year 246,889 617,955 130,654 136,355
Acquisitions of
subsidiary companies 52(iv) - 31,100 - -
companies 53(ii) - (427,812) - -
Additions 589 4,428 - 41
Adjustment - - - (1,358)
Disposals (2,625) (627) - (10,800)
Changes in fair value 6 16,990 15,647 (47) 6,416
Transfer to property,
plant and equipment 13 (1,350) (12,470) - -
for sale 27 - (4,500) - -
for sale under
disposal groups 27 (12,300) - - -
differences - 21,952 - -
development cost 17(b) - 1,216 - -
At end of the financial
year 248,193 246,889 130,607 130,654
The disclosures on income and

expenses of investment
properties are as below:
Rental income 12,447 23,262 14,015 14,093
Direct operating expenses
from investment
properties that generated
rental income during the
financial year 1,285 8,121 1,740 1,806
Direct operating expenses

from investment
properties that did not
generate rental income
during the financial year 372 615 - -
261
BERHAD 2018
16 INVESTMENT PROPERTIES (Continued)
(a) Certain investment properties of the Group and of the Company with carrying value of
RM65,359,000 (2017: RM60,252,000) and RM111,107,000 (2017: RM111,154,000)
respectively have been charged as security for bank borrowings (Notes 38 and 45).
(b) The fair value measurement of the investment properties is disclosed in Note 59.
17 PROPERTY DEVELOPMENT ACTIVITIES
(a) Land held for property development
Group
2018 2017
At cost
At beginning of the financial year
Land 724,415 712,840
Development costs 457,811 272,301
1,182,226 985,141
Add: Costs incurred during the financial year
- Land 2,873 -
- Development costs - 52,095
2,873 52,095
Less: Adjustment of development cost during
the financial year (79,104) -
Less: Over provision of development cost during
the financial year (7,923) -
Transfer to assets held for sale 27 (2,266) -
Transfer to assets held for sale under disposal
groups 27
- Land (28,668) -
- Development costs (7,613) -
(36,281) -
Transfer (to)/from property development costs 17(b)
- Land (547,558) 17,708
- Development costs (237,796) 133,782
(785,354) 151,490
Transfer to property, plant and equipment 13
- Land - (6,133)
- Development costs - (367)
- (6,500)
At end of the financial year 274,171 1,182,226
262
BERHAD 2018
17 PROPERTY DEVELOPMENT ACTIVITIES (Continued)
(a) Land held for property development (Continued)
Group
2018 2017
At end of the financial year

Land 148,796 724,415
274,171 1,182,226
(b) Property development costs
At beginning of the financial year

Land 53,035 89,984
Accumulated costs charged to profit or loss (319,559) (267,557)
140,186 284,145
Less: Completed developments in previous years
- Land (3,713) (1,120)
- Development costs (58,783) (43,318)
- Accumulated costs charged to profit or
loss 62,496 44,438
- -
Add: Costs incurred during the financial year
- Development costs 43,700 138,067
Transfer to assets held for sale under disposal
groups 27
- Land (5,323) -
- Development costs (45,076) -
- Accumulated costs charged to profit or
loss 2,228 -
(48,171) -
Transfer from/(to) land held for property
development 17(a)
- Land 547,558 (17,708)
- Development costs 237,796 (133,782)
785,354 (151,490)
Sub-total carried forward 921,069 270,722
263
BERHAD 2018
17 PROPERTY DEVELOPMENT ACTIVITIES (Continued)
(b) Property development costs (Continued)
Group
2018 2017
At cost
Sub-total brought forward 921,069 270,722
Transfer to inventories
- Land (1,288) (2,448)
- Development costs (19,275) (14,650)
(20,563) (17,098)
Transfer to investment properties 16
- Land - (432)
- (1,216)
Transfer to property, plant and equipment 13
- Land - (15,241)
- (15,782)
Less: Impairment loss of development costs
during the financial year 6 (40,440) -
Less: Costs recognised as expense in profit
or loss during the financial year (62,268) (96,440)
At end of the financial year

Land 590,269 53,035
Accumulated costs charged to profit or loss (317,103) (319,559)
797,798 140,186
(c) Certain land held for property development and property development costs of the
Group with carrying value of RM479,159,000 (2017: RM496,325,000) have been
charged as security for bank borrowings (Notes 38 and 45).
(d) In the previous financial year, the borrowing costs capitalised in property development
costed amounting to RM408,000 at the interest rates range from 5.00% to 8.37% per
annum.
264
BERHAD 2018
18 SUBSIDIARY COMPANIES
Company
2018 2017
Unquoted shares, at cost 9,195,052 8,778,271

Quoted shares, at cost 605,170 605,170
Shares (d) 350,000 -
Less: Accumulated impairment losses (e) (3,510,851) (989,831)
Total 6,639,371 8,393,610
(a) The details of the subsidiary companies are listed in Note 3.
(b) As part of conditions precedent to the acquisition of 70% equity in Bank Muamalat
Malaysia Berhad (“BMMB”), Bank Negara Malaysia requires the Company to reduce
its investment in BMMB to 40%. The Company is considering various options to
address this matter.
(c) Certain shares of subsidiary companies with carrying value of RM1,371,102,000

(2017: RM2,819,324,000) have been charged as security for bank borrowings (Notes
38 and 45).
(d) As disclosed in Note 36, the Company completed the RCCPS Purchase of
RM350,000,000 on 6 October 2017.
(e) Impairment testing for cost of investment in automotive, investment holding and
education subsidiary companies were performed as these subsidiary companies
reported history of continued losses.
The recoverable amount of the investment holding subsidiary company was

determined based on fair value less cost of disposal. The objective is to estimate the
price that would be received in an orderly transaction between market participants at
the reporting date under current market condition. The impairment test was performed
by comparing the carrying amount of the cost of investment in the investment holding
subsidiary company with its fair value less costs of disposal.
The recoverable amount of the automotive and education subsidiary companies were
determined based on value in use calculations using cash flow projections prepared
based on financial budgets approved by Management covering a 5-year period. The
pre-tax discount rate applied to the cash flow projections is 9.50% - 10.50% (2017:
9.50%) per annum. The forecasted growth rate used to extrapolate cash flows beyond
the 5-year period is 2.00% (2017: 2.00%). The budgeted gross margins were
determined based on past performance and their expectations of market
development. The discount rate used is pre-tax and reflect specific risks relating to the
relevant segments.
Based on management’s impairment review, impairment loss of RM2,564,697,000

(2017: RM360,154,000) was recognised for cost of investment in subsidiary
companies during the financial year.
265
BERHAD 2018
18 SUBSIDIARY COMPANIES (Continued)
(f) The Group’s subsidiary companies that have material non-controlling interest (“NCI”),
based on effective equity interest are as follows:
Effective equity interest held by NCI

2018 2017
PROTON Holdings Berhad 49.90% -
Pos Malaysia Berhad 46.50% 46.50%
Bank Muamalat Malaysia Berhad 30.00% 30.00%
Horsedale Development Berhad 29.40% 29.40%
266
BERHAD
DRB-HICOM
(g) The Group’s subsidiary companies that have material NCI, based on effective equity interest are as follows:
PROTON Bank Muamalat Horsedale

Holdings Pos Malaysia Malaysia Development
Berhad Berhad Berhad Berhad Others Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2018
Carrying value of NCI (71,966) 926,530 707,093 79,101 190,115 1,830,873
financial year attributable
to NCI (408,947) 39,665 57,098 2,513 27,083 (282,588)
267
2017 (Restated)
Carrying value of NCI - 925,207 656,079 91,288 168,563 1,841,137
Net profit for the financial
year attributable to NCI - 9,503 41,214 1,552 19,442 71,711
2018
Annual Report
BERHAD
DRB-HICOM
(h) The summarised financial information (before inter-company eliminations) of these subsidiary companies that have material NCI, not adjusted for
the ownership interest held by the Group, are as follows:
PROTON Bank Muamalat Horsedale

Holdings Pos Malaysia Malaysia Development
Berhad Berhad Berhad Berhad
RM’000 RM’000 RM’000 RM’000
As at 31 March 2018
Non-current assets 3,916,066 1,882,522 16,958,209 247,561
Current assets 1,785,887 1,492,093 6,985,482 149,948
268
Non-current liabilities (203,811) (216,637) (1,864,523) (85,023)
Current liabilities (2,210,142) (1,210,592) (19,779,252) (48,399)
Net assets 3,288,000 1,947,386 2,299,916 264,087
Financial year ended 31 March 2018

Revenue 3,646,345 2,472,578 1,216,183 53,107
Net (loss)/profit for the financial year (202,216) 93,314 181,625 7,285
Cash inflow from operating activities 871,868 77,311 275,268 10,383

Cash (outflow)/inflow from investing activities (198,705) (416,209) (176,243) 3,570
Cash (outflow)/inflow from financing activities (603,412) 48,273 438,731 (50,278)
Net increase/(decrease) in cash and cash equivalents 69,751 (290,625) 537,756 (36,325)
Dividends paid/payable to NCI - 38,947 - 14,636

2018
Annual Report
BERHAD
DRB-HICOM
NOTES TO THE FINANCIAL STATEMENTS - 31 MARCH 2 018
(h) The summarised financial information (before inter-company eliminations) of these subsidiary companies that have material NCI, not adjusted for
the ownership interest held by the Group, are as follows: (Continued)
Bank Muamalat Horsedale

Pos Malaysia Malaysia Development
Berhad Berhad Berhad
RM’000 RM’000 RM’000
As at 31 March 2017 (Restated)
Non-current assets 1,627,965 17,140,492 296,518
Current assets 1,656,385 6,385,850 160,747
Non-current liabilities (113,578) (1,191,608) (85,804)
269
Current liabilities (1,234,258) (20,173,819) (64,658)
Net assets 1,936,514 2,160,915 306,803
Financial year ended 31 March 2017 (Restated) *

Revenue 1,271,271 1,221,765 57,283
Net profit for the financial year 43,210 140,565 5,249
Cash inflow from operating activities 177,515 82,959 21,531

Cash inflow/(outflow) from investing activities 8,788 (438,496) 4,572
Cash (outflow)/inflow from financing activities (39,229) 336,361 (50,967)
Net increase/(decrease) in cash and cash equivalents 147,074 (19,176) (24,864)
Dividends paid to NCI - - 14,636
* The financial result and cash flows of Pos Malaysia Berhad is for the period from October 2016 to March 2017.
2018
Annual Report
BERHAD 2018
19 JOINT VENTURES
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
Share of net assets 298,075 413,826 - -

Unquoted shares, at cost - - 4,686 4,686
(a) The details of the joint ventures, all of which are unquoted, are listed in Note 3.
(b) None of the Group’s joint ventures are material individually or in aggregate to the
financial position, financial performance and cash flows of the Group.
(c) The summarised financial information of the joint ventures, not adjusted for the
proportion of ownership interest held by the Group, are as follows:
2018 2017
RM’000 RM’000
Non-current assets 1,367,757 1,746,867

Current assets 1,764,012 1,923,822
Non-current liabilities (1,490,314) (1,690,541)
Current liabilities (984,561) (1,095,008)
Net assets 656,894 885,140
Revenue 2,379,006 2,695,738

Expenses (2,360,120) (2,654,423)
Profit before taxation 18,886 41,315
Taxation (9,104) (19,110)
Net profit representing total comprehensive income 9,782 22,205
(d) The summarised financial information based on Group’s interest in joint ventures for
the years are as follows:
Group
2018 2017
RM’000 RM’000
Non-current assets 660,550 853,458

Current assets 862,803 939,722
Non-current liabilities (744,986) (845,116)
Current liabilities (480,292) (534,238)
Net assets 298,075 413,826
270
BERHAD 2018
19 JOINT VENTURES (Continued)
(d) The summarised financial information based on Group’s interest in joint ventures for
the years are as follows: (Continued)
Group
2018 2017
RM’000 RM’000
Net profit representing total comprehensive

income 402 9,575
Cash dividends received by the Group 19,418 39,281
(e) Capital commitments for property, plant and equipment
- contracted 318 172

- not contracted 940 6,719
1,258 6,891
(f) There is no material contingency relating to joint ventures.
20 ASSOCIATED COMPANIES
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
Share of net assets 885,404 756,543 - -

Unquoted shares, at cost - - 64,603 64,603
Less: Accumulated
impairment losses - - (3,543) (3,433)
885,404 756,543 61,060 61,170
(a) The details of the associated companies are listed in Note 3.
(b) The Group’s material associated companies, based on effective equity interest are as
follows:
Effective equity interest held by the Group

2018 2017
Honda Malaysia Sdn. Bhd. 34.00% 34.00%
271
BERHAD 2018
20 ASSOCIATED COMPANIES (Continued)
(c) Capital commitments for property, plant and equipment
Group
2018 2017
RM’000 RM’000
- contracted 8,871 19,107

- not contracted 3,778 29,601
12,649 48,708
(d) There is no material contingency relating to associated companies.
(e) The accumulated share of losses that have not been recognised by the Group
amounted to RM13,450,000 (2017: RM11,866,000). The Group has no obligation in
respect of these losses.
(f) The summarised financial information of the associated companies, not adjusted for
the proportion of ownership interest held by the Group, are as follows:
Honda
Malaysia
Sdn. Bhd. Others Total
RM’000 RM’000 RM’000
As at 31 March 2018
Non-current assets 1,019,176 121,567 1,140,743
Current assets 2,543,791 560,579 3,104,370
Non-current liabilities (212,743) (13,562) (226,305)
Current liabilities (1,397,763) (241,076) (1,638,839)
Net assets 1,952,461 427,508 2,379,969
Financial year ended 31 March

2018
Revenue 9,392,058 923,890 10,315,948
Expenses (8,455,286) (899,040) (9,354,326)
Profit before taxation 936,772 24,850 961,622
Taxation (252,331) (1,511) (253,842)
Net profit representing total
comprehensive income 684,441 23,339 707,780
272
BERHAD
DRB-HICOM
(f) The summarised financial information of the associated companies, not adjusted for the proportion of ownership interest held by the Group, are
as follows: (Continued)
Honda
Malaysia Pos Malaysia
Sdn. Bhd. Berhad* Others Total
RM’000 RM’000 RM’000 RM’000
As at 31 March 2017
Non-current assets 1,003,796 - 122,425 1,126,221
Current assets 2,136,240 - 508,769 2,645,009
Non-current liabilities (226,424) - (10,360) (236,784)
273
Current liabilities (1,315,092) - (209,888) (1,524,980)
Net assets 1,598,520 - 410,946 2,009,466

Revenue 8,415,910 810,992 1,086,345 10,313,247
Expenses (7,531,369) (756,313) (1,083,785) (9,371,467)
Profit before taxation 884,541 54,679 2,560 941,780
Taxation (224,188) (16,099) (814) (241,101)
Net profit representing total comprehensive income 660,353 38,580 1,746 700,679
* The financial result of Pos Malaysia Berhad is for the period from April 2016 to September 2016.
2018
Annual Report
BERHAD
DRB-HICOM
(g) The summarised financial information based on Group’s interest in associated companies for the years are as follows:
Honda
Malaysia Pos Malaysia
Sdn. Bhd. Berhad Others Total
RM’000 RM’000 RM’000 RM’000
As at 31 March 2018
Group’s share of net assets represents carrying value of
Group’s interest in associated companies 663,838 - 221,566 885,404
274
Group’s share of net profit representing total comprehensive
income 232,710 - 10,639 243,349
Cash dividends received by the Group 112,370 - 2,771 115,141
As at 31 March 2017
Group’s share of net assets represents carrying value of
Group’s interest in associated companies 543,498 - 213,045 756,543
Group’s share of net profit representing total comprehensive

income 224,520 12,427 2,960 239,907
Cash dividends received by the Group 110,296 20,241 4,020 134,557

2018
Annual Report
BERHAD
DRB-HICOM
21 INTANGIBLE ASSETS
Capitalised
Product development
Customer Computer development cost of work- Dealership Brand
Goodwill relationship software expenditure in-progress network name Total
Group
2018
At 1 April 2017 621,504 225,835 124,350 665,141 208,171 11,832 41,710 1,898,543
Disposals of
subsidiary
companies 53(i)(b) - - (6) (282,112) (22,820) - (41,710) (346,648)
Additions - - 8,046 1,254 360,002 - - 369,302
275
Transfer from
property, plant and
equipment 13 - - 4,523 2,745 - - - 7,268
6&
Amortisation 53(i)(b) - (9,361) (40,497) (138,107) - (5,916) - (193,881)
6&
Impairment loss 53(i)(b) - - (262) (121,348) - - - (121,610)
Written off 6 - - - (15) (7,291) - - (7,306)
differences - - 1 7,142 412 - - 7,555
Reclassification - - 7,258 (25,693) 18,435 - - -
Transfer to assets
held for sale under
disposal groups 27 - - (57) - - - - (57)
At 31 March 2018 621,504 216,474 103,356 109,007 556,909 5,916 - 1,613,166
2018
Annual Report
BERHAD
DRB-HICOM
21 INTANGIBLE ASSETS (Continued)
Capitalised
Product development
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
2018
(Continued)
Cost 696,033 237,304 458,052 1,320,006 565,663 41,412 - 3,318,470

Accumulated amortisation - (20,830) (354,363) (1,012,624) - (35,496) - (1,423,313)
276
losses (74,529) - (333) (198,375) (8,754) - - (281,991)
Net book value 621,504 216,474 103,356 109,007 556,909 5,916 - 1,613,166
2018
Annual Report
BERHAD
DRB-HICOM
Capitalised
Product development
Group
2017(Restated)
At 1 April 2016 402,156 4,127 140,381 660,166 414,034 17,748 41,710 1,680,322
Acquisitions of
subsidiary
companies 52(iv) 219,348 227,868 - - - - - 447,216
277
Disposals of
subsidiary
companies 53(ii) - - (41) - - - - (41)
Additions - - 9,231 15,897 166,575 - - 191,703
Transfer from/(to)
property, plant and
equipment 13 - - 2,377 365 (56,103) - - (53,361)
Amortisation 6 - (6,160) (36,246) (186,864) - (5,916) - (235,186)
Impairment loss 6 - - (303) (55,290) - - - (55,593)
Written off 6 - - - - (71,348) - - (71,348)
differences - - - (3,837) (1,332) - - (5,169)
Reclassification - - 8,951 234,704 (243,655) - - -
At 31 March 2017 621,504 225,835 124,350 665,141 208,171 11,832 41,710 1,898,543
2018
Annual Report
BERHAD
DRB-HICOM
Capitalised
Product development
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
2017(Restated)
(Continued)
Cost 696,033 237,304 436,927 2,244,506 216,923 41,412 41,710 3,914,815

Accumulated amortisation - (11,469) (312,506) (1,244,209) - (29,580) - (1,597,764)
278
losses (74,529) - (71) (335,156) (8,752) - - (418,508)
Net book value 621,504 225,835 124,350 665,141 208,171 11,832 41,710 1,898,543
2018
Annual Report
BERHAD 2018
(a) Impairment testing for goodwill, brand name and capitalised development cost of
work-in-progress is done annually. Their carrying values were allocated to 8 (2017: 8)
of the Group’s cash-generating units (“CGU”), for impairment testing as follows:
2018 2017
(Restated)
RM’000 RM’000
Integrated logistics services 264,734 264,734

Automotive 552,961 246,476
Postal services 217,795 217,795
Construction and leasing 105,639 105,639
Airport ground handling services 16,648 16,648
Banking 13,999 13,456
Defence services 4,665 4,665
Leasing of motor vehicles 1,972 1,972
1,178,413 871,385
The recoverable amounts of certain CGUs were determined based on value in use
calculations using cash flow projections prepared based on financial budgets
approved by Management covering a 5-year period. The pre-tax discount rate applied
to the cash flow projections range from 10.00% to 14.75% (2017: 9.00% to 17.80%)
per annum. The forecasted growth rates used to extrapolate cash flows beyond the 5-
year period range from 0% to 4% (2017: 0% to 4%). The budgeted gross margins
were determined based on past performance and their expectations of market
development. The discount rates used are pre-tax and reflect specific risks relating to
the relevant segments.
The recoverable amounts of certain other CGUs were determined based on valuations
performed by an independent valuer. The objective is to estimate the price that would
be received in an orderly transaction between market participants at the reporting date
under current market condition. The impairment test was performed by comparing the
CGU’s carrying amount with its fair value less costs of disposal.
Based on management’s impairment review, impairment loss of RM121,610,000

(2017: RM55,593,000) was recognised for intangible assets during the year.
(b) In the previous financial year, the borrowing costs capitalised for the purpose of
development of intangible assets amounted to RM964,000 at the interest rate of
5.00% per annum.
279
118
BERHAD 2018
22 DEFERRED TAXATION
Group
2018 2017
(Restated)
At beginning of the financial year (63,078) 25,384

Acquisitions of subsidiary companies 52(iv) - (118,100)
53(i)(b)
Disposals of subsidiary companies &(ii) 9,317 (268)
(Charged)/credited to profit or loss 10
- Intangible assets 2,063 3,149
- Investment properties 6,690 (11,716)
- Investment securities (2) -
- Property, plant and equipment 68 (10,147)
- Property development expenditure (290) 7,424
- Provisions (73,044) 53,651
- Receivables 4,473 (5,696)
- Tax losses 6,693 (10,419)
(53,349) 26,246
Credited/(charged) to other comprehensive
income 10
- Fair value changes of investment
securities: available-for-sale 5,109 3,667
- Actuarial gains and losses on defined
benefits plan - (7)
5,109 3,660
At end of the financial year (102,001) (63,078)
Subject to income tax

Deferred tax assets (before offsetting)
Investment securities 9,266 10,753
Investment properties 1,825 393
Property, plant and equipment 103,979 97,411
Property development expenditure 13,036 13,410
Provisions 350,059 348,989
Receivables 2,160 2,730
Tax losses 22,999 16,306
503,324 489,992
Offsetting (351,016) (342,800)
Deferred tax assets (after offsetting) 152,308 147,192
280
119
BERHAD 2018
22 DEFERRED TAXATION (Continued)
Group
2018 2017
(Restated)

Deferred tax liabilities (before offsetting)
Intangible assets (215,468) (226,848)
Investment properties (12,805) (18,063)
Investment securities (587) (7,181)
Property, plant and equipment (302,351) (295,851)
Property development expenditure - (84)
Provisions (74,114) -
Receivables - (5,043)
(605,325) (553,070)
Offsetting 351,016 342,800
Deferred tax liabilities (after offsetting) (254,309) (210,270)
Presented after appropriate offsetting as follows:

Deferred tax assets 152,308 147,192
Deferred tax liabilities (254,309) (210,270)
(102,001) (63,078)
Company
2018 2017
RM’000 RM’000
At beginning of the financial year (647) (1,278)

(Charged)/credited to profit or loss 10
- Investment properties (1,498) (686)
- Property, plant and equipment (2,217) 1,317
- Receivables (10,483) -
(14,198) 631
At end of the financial year (14,845) (647)

Deferred tax assets (before offsetting)
Property, plant and equipment - 2,217
Offsetting - (2,217)
Deferred tax assets (after offsetting) - -
281
120
BERHAD 2018
22 DEFERRED TAXATION (Continued)
Company
2018 2017
RM’000 RM’000
Deferred tax liabilities (before offsetting)

Investment properties (4,362) (2,864)
Receivables (10,483) -
(14,845) (2,864)
Offsetting - 2,217
Deferred tax liabilities (after offsetting) (14,845) (647)
23 INVESTMENT SECURITIES
(a) Investment securities: financial assets at fair value through profit or loss
Non-
Banking banking
Held by a
banking Held by a
subsidiary subsidiary
company company Total
RM’000 RM’000 RM’000
Group
2018
Private equity funds 161,274 292 161,566
Non-current 161,274 - 161,274

Current - 292 292
161,274 292 161,566
2017
Private equity funds 197,208 175 197,383
Non-current 197,208 - 197,208

Current - 175 175
197,208 175 197,383
282
121
BERHAD 2018
23 INVESTMENT SECURITIES (Continued)
(b) Investment securities: available-for-sale, at fair value
Non-
Banking banking
Held by a Held by
banking other
company companies Total
RM’000 RM’000 RM’000
Group
2018
Government securities and treasury
bills
Malaysian government investment
3,864,730 - 3,864,730
certificates
Quoted securities
Equity securities, in Malaysia 118,669 - 118,669
Unquoted securities
Islamic private debt securities, in
2,250,825 - 2,250,825
Malaysia
Cagamas bonds 60,530 - 60,530
Equity securities, in Malaysia 5,381 45,498 50,879
Foreign Islamic private debt securities
19,277 - 19,277
and sukuk
Total 6,319,412 45,498 6,364,910
Non-current 5,553,163 45,498 5,598,661

Current 766,249 - 766,249
6,319,412 45,498 6,364,910
283
122
BERHAD 2018
(b) Investment securities: available-for-sale, at fair value (Continued)
Non-
Banking banking
Held by a Held by
banking other
company companies Total
RM’000 RM’000 RM’000
Group
2017
Government securities and treasury
bills
Malaysian government investment
certificates 3,531,945 - 3,531,945
Quoted securities
Equity securities, in Malaysia 159,858 155 160,013
Unquoted securities
Islamic private debt securities, in
Malaysia 2,386,622 - 2,386,622
Cagamas bonds 25,385 - 25,385
Equity securities, in Malaysia 5,381 45,998 51,379
Foreign Islamic private debt securities
and sukuk 22,225 - 22,225
Total 6,131,416 46,153 6,177,569
Non-current 5,040,929 46,153 5,087,082

Current 1,090,487 - 1,090,487
6,131,416 46,153 6,177,569
284
123
BERHAD 2018
(c) Investment securities: held-to-maturity, at amortised cost - Banking
Group
2018 2017
RM’000 RM’000
Non-current
Unquoted Islamic private debt securities, in
Malaysia 143,730 142,168
24 OTHER ASSETS
Group
2018 2017
RM’000 RM’000
Golf memberships, at cost less accumulated impairment 544 516
25 BANKING RELATED ASSETS - FINANCING OF CUSTOMERS
Group
2018 2017
RM’000 RM’000
Cash line 619,299 670,262
Term financing
- Home financing 14,635,065 14,985,909
- Hire purchase receivables 710,970 886,833
- Syndicated financing 1,855,676 1,669,415
- Leasing receivables 1,277 4,997
- Other term financing 9,990,706 10,622,280
Revolving credits 1,209,441 1,207,755
Claims on customers under acceptance credits 857,412 695,741
Staff financing 198,678 191,970
Sukuk 116,586 110,349
Trust receipts 129,492 50,675
Ar-Rahnu 109,245 103,328
Sub-total carried forward 30,433,847 31,199,514
285
BERHAD 2018
25 BANKING RELATED ASSETS - FINANCING OF CUSTOMERS (Continue d)
Group
2018 2017
RM’000 RM’000
Sub-total brought forward 30,433,847 31,199,514

Less: Unearned income (15,722,021) (16,174,674)
14,711,826 15,024,840
Less: Allowance for impaired financing:
- Collective assessment (176,922) (236,159)
- Individual assessment (16,932) (76,865)
Total net financing 14,517,972 14,711,816
Non-current 10,216,425 10,772,103

Current 4,301,547 3,939,713
14,517,972 14,711,816
(a) The table below shows the credit quality for financing of customers exposed to credit
risk, based on the banking subsidiary company's internal credit ratings:
Group
2018 2017
RM’000 RM’000
Neither past due nor impaired

- Good 13,534,685 14,046,988
- Satisfactory 610,036 336,584
1 to 60 days past due not impaired 188,124 200,899
281,689 289,348
Impaired 285,416 351,920
14,711,826 15,024,840
Financing of customers that are neither past due nor impaired
Financing of customers which are neither past due nor impaired are identified into 2
grades. Good grade refers to financing of customers which are neither past due nor
impaired in the last 6 months and have never undergone any rescheduling or
restructuring exercise previously. Satisfactory grade refers to financing of customers
which may have been past due but not impaired or impaired during the last 6 months
or have undergone a rescheduling or restructuring exercise previously.
286
BERHAD 2018
25 BANKING RELATED ASSETS - FINANCING OF CUSTOMERS (Continued)
(a) (Continued)
Financing of customers that are past due but not impaired
Past due but not impaired financing of customers refers to where the customer has
failed to make principal or profit payment or both after the contractual due date for
more than one day but less than 3 months.
Financing of customers that are impaired
Classification of impaired financing and provisioning is made on the financing assets

upon determination of the existence of objective evidence of impairment and
categorisation into individual assessment and collective assessment in accordance
with Note 2.9(iv).
(b) The movements of the allowance for financing during the financial year are as follows:
Collectiv e Indiv idual

assessment assessment Total
Group
2018
At 1 April 2017 236,159 76,865 313,024
Charged 6 293,271 12,849 306,120
Write backs 6 (328,924) (25,011) (353,935)
Written off (23,584) (47,771) (71,355)
At 31 March 2018 176,922 16,932 193,854
2017
At 1 April 2016 208,439 81,078 289,517
Charged 6 351,926 30,753 382,679
Write backs 6 (292,349) (14,552) (306,901)
Written off (31,857) (20,414) (52,271)
At 31 March 2017 236,159 76,865 313,024
287
BERHAD 2018
25 BANKING RELATED ASSETS - FINANCING OF CUSTOMERS (Continue d)
(c) Collateral and other credit enhancements
The amount and type of collateral required depends on assessment of credit risk of
the counterparty. Guidelines are implemented regarding the acceptability of types and
collateral and valuation parameters. The collateral obtained by the banking subsidiary
company are charges over properties and vehicles under financing, pledges over
investment securities and charges over the business assets.
The financial effect of collateral (i.e. quantification of the extent to which collateral and
other credit enhancements mitigate credit risk) held for financing of customer for the
banking subsidiary company is at 90.10% as at 31 March 2018 (2017: 84.70%).
As at 31 March 2018, the fair value of collateral that the banking subsidiary company
holds relating to financing of customers individually determined to be impaired
amounted to RM60,010,000 (2017: RM56,077,000). The collateral consists of cash,
securities, letters of guarantee, and properties.
(d) Repossessed collateral
It is the banking subsidiary company's policy that states disposal of repossessed

collateral to be carried out in an orderly manner. The proceeds are used to reduce or
repay the outstanding balance of financing. Collateral repossessed are subject to
disposal as soon as it is practical to do so. The banking subsidiary company does not
occupy repossessed properties for its own business use.
26 BANKING RELATED ASSETS - STATUTORY DEPOSIT WITH BANK NEGARA MALAYSIA
The statutory deposit is maintained with Bank Negara Malaysia in compliance with Section
26(2)(c) and Section 26(3) of the Central Bank of Malaysia Act 2009, the amount of which is
determined at set percentages of total eligible liabilities.
27 ASSETS AND DISPOSAL GROUPS HELD FOR SALE
On 8 March 2018, the Group had entered into various agreements for the proposed disposals
of certain property assets and investments (“Proposed Disposals”) to Prisma Dimensi Sdn.
Bhd. and Kelana Ventures Sdn. Bhd. As at 31 March 2018, the proposed disposals have not
been completed pending fulfilment of certain conditions precedent and the property assets
and investments associated with the Proposed Disposals are classified as held for sale on the
consolidated statement of financial position as follows:
Group
2018 2017
Property, plant and equipment 13 50,934 -

Prepaid lease properties 15 2,918 -
Land held for property development 17(a) 2,266 -
Assets related to disposal groups held for sale (a)(i) 462,189 -
Sub-total carried forward 518,307 -
288
BERHAD 2018
27 ASSETS AND DISPOSAL GROUPS HELD FOR SALE (Continued)
Group
2018 2017
Sub-total brought forward 518,307 -

Investment properties 16 - 4,500
Liabilities related to disposal groups held for sale (a)(ii) (135,683) -
382,624 4,500
(a) The details of carrying amounts of assets and liabilities related to disposal groups
held for sale are shown as follows:
Note
(i) Assets
Property, plant and equipment 13 231,306
Prepaid lease properties 15 3,040
Investment properties 16 12,300
Land held for property development 17(a) 36,281
Property development costs 17(b) 48,171
Joint ventures 40,332
Intangible assets 21 57
Inventories 4,799
Trade and other receivables 12,237
Tax recoverable 389
Short term deposits 22,849
Cash and bank balances 50,428
462,189
(ii) Liabilities
Deferred income 37 (77,413)
Trade and other payables (58,270)
(135,683)
(b) The details of disposal groups are listed in Note 3.
(c) During the financial year, certain property, plant and equipment of the Group with
carrying value of RM19,591,000 have been charged as security for bank borrowings
(Notes 38 and 45).
289
BERHAD 2018
28 INVENTORIES
Group
2018 2017
RM’000 RM’000
Raw materials 390,192 477,426

Work-in-progress 280,484 458,575
Finished goods 702,656 1,075,941
Parts and accessories 216,242 235,245
Completed units of unsold properties/land 50,880 38,265
1,640,454 2,285,452
Certain inventories of the Group have been charged as security for bank borrowings (Notes 38
and 45).
29 TRADE AND OTHER RECEIVABLES
Group Compa ny
2018 2017 2018 2017
Note RM’000 RM’000 RM’000 RM’000
Trade receivables 2,593,688 2,300,544 - -

Less: Allowance for
doubtful debts (116,535) (149,611) - -
2,477,153 2,150,933 - -
Other receivables 810,896 1,191,342 1,750 957

Less: Allowance for
doubtful debts (148,865) (318,474) - -
662,031 872,868 1,750 957
Amounts due from

subsidiary
companies - - 726,525 1,220,736
Amounts due from
joint ventures 55,316 76,950 1 -
Amounts due from
associated
companies 41,946 40,874 711 699
Amounts due from
related parties 116,477 247 - -
Amounts due from
customers on
contracts 50 380,826 624,628 - -
Sub-total carried
forward 594,565 742,699 727,237 1,221,435
290
BERHAD 2018
29 TRADE AND OTHER RECEIVABLES (Continued)
Group Compa ny
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
Sub-total brought
forward 594,565 742,699 727,237 1,221,435
Accrued billings 14,487 53,223 - -
Deposits 109,658 104,187 80 156
Prepayments 228,529 199,261 501 559
947,239 1,099,370 727,818 1,222,150
Total 4,086,423 4,123,171 729,568 1,223,107
Non-current 935,852 264,144 159,057 -

Current 3,150,571 3,859,027 570,511 1,223,107
4,086,423 4,123,171 729,568 1,223,107
(a) The currency exposure profile of trade and other receivables is as follows:
Group Compa ny
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
- Ringgit Malaysia 3,886,619 3,596,620 729,568 1,223,107

- US Dollar 105,856 315,078 - -
- Pound Sterling 84,032 184,291 - -
- Euro 6,426 17,082 - -
- Indonesian Rupiah 1,112 2,803 - -
- Thai Baht 2,012 1,306 - -
- Japanese Yen - 3,265 - -
- Other currencies 366 2,726 - -
4,086,423 4,123,171 729,568 1,223,107
(b) Included in the trade receivables are financial receivables from the construction of two
infrastructure projects amounting to RM891,551,000 (2017: RM230,264,000) to be
repaid over a period of 8 to 25 years after completion of the construction. Trade
receivables are non-interest bearing. The Group’s normal trade credit terms range
from 14 days to 180 days (2017: 14 days to 180 days). They are recognised at their
original invoice amounts which represent their fair values on initial recognition. Other
credit terms are assessed and approved on a case by case basis.
(c) Included in the amounts due from subsidiary companies are balances of
RM160,296,000 (2017: RM1,030,913,000) which are interest bearing and unsecured.
The interest rates range from 3.58% to 6.35% (2017: 3.45% to 7.50%) per annum.
291
BERHAD 2018
29 TRADE AND OTHER RECEIVABLES (Continue d)
(d) All other amounts due from joint ventures, associated companies and related parties
are non-interest bearing, unsecured and repayable on demand.
(e) The ageing analysis of the Group’s trade receivables is as follows:
Group
2018 2017
RM’000 RM’000
Neither past due nor impaired 1,868,573 1,622,939

More than 121 days past due not impaired 48,058 69,177
608,580 527,994
Impaired 116,535 149,611
2,593,688 2,300,544
Receivables that are neither past due nor impaired
Trade receivables that are neither past due nor impaired are creditworthy debtors with
good payment records with the Group. None of the Group’s trade receivables that are
neither past due nor impaired have been renegotiated during the financial year.
Receivables that are past due but not impaired
The Group has trade receivables amounting to RM608,580,000 (2017:

RM527,994,000) that are past due at the reporting date but not impaired. At the
reporting date, majority of the trade receivables of the Group are active customers
with healthy business relationship, in which the Management is of the view that the
amounts are recoverable based on past payments history.
Receivables that are impaired
The Group’s trade receivables that are impaired at the reporting date and the
movements of the allowance for doubtful debts of trade receivables during the
financial year are as follows:
Group
2018 2017
RM’000 RM’000

Disposals of subsidiary companies (6,697) (9,028)
Charged 12,370 21,185
Sub-total carried forward 155,284 192,500
292
BERHAD 2018
29 TRADE AND OTHER RECEIVABLES (Continue d)
(e) (Continued)
Receivables that are impaired (Continued)
The Group’s trade receivables that are impaired at the reporting date and the
movements of the allowance for doubtful debts of trade receivables during the
Group
2018 2017
RM’000 RM’000
Sub-total brought forward 155,284 192,500

Write backs (19,001) (53,498)
Written off (16,112) (12,003)
Currency translation differences (3,636) (2,831)
Acquisitions of subsidiary companies - 25,443
Trade receivables that are individually determined to be impaired at the reporting date
relate to debtors that have defaulted payments.
(f) The movements of the allowance for doubtful debts of other receivables during the
Group
2018 2017
RM’000 RM’000

Charged 9,413 32,7 01
Written off (177,744) (7 ,244)
Currency translation differences (1,278) 919
Acquisitions of subsidiary companies - 1,019
Disposals of subsidiary companies - (366)
At end of the financial year 148,865 318,47 4
(g) Certain receivables of the Group have been charged as security for bank borrowings
(Notes 38 and 45).
293
BERHAD 2018
30 SHORT TERM DEPOSITS
(a) Deposits with licensed banks and financial institutions of the Group and of the
Company with maturity profile above 3 months amounting to RM25,313,000 (2017:
RM11,242,000) and RM559,000 (2017: RM542,000) respectively are excluded from
cash and cash equivalents.
(b) Certain deposits with licensed banks of the Group amounting to RM619,249,000
(2017: RM830,665,000) have been charged as security for bank borrowings (Notes 38
and 45).
(c) The weighted average effective annual interest rates of short term deposits at the end
of the financial year is as follows:
Group Company
2018 2017 2018 2017
% % % %
Deposits with licensed
banks 3.28 2.98 3.36 3.21
(d) The deposits of the Group and of the Company have an average maturity period of 57
days (2017: 41 days) and 33 days (2017: 18 days) respectively.
(e) The currency exposure profile of short term deposits is as follows:
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
- Ringgit Malaysia 1,126,056 1,280,225 574,915 223,771

- Thai Baht 949 25 - -
- Singapore Dollar 866 - - -
- Indonesian
Rupiah - 29,523 - -
- US Dollar - 22,183 - -
- Australian Dollar - 575 - -
1,127,871 1,332,531 574,915 223,771
31 CASH AND BANK BALANCES
(a) Bank balances are deposits held at call with banks and are non-interest bearing.
(b) Included in cash and bank balances of the Group are bank accounts maintained
pursuant to the Housing Developers (Control & Licensing) Act 1966, amounting to
RM66,897,000 (2017: RM81,671,000).
(c) Included in cash and bank balances of the Group are cash restricted for payment of
project expenses held by subsidiary companies amounting to RM122,243,000
(2017: RM157,284,000).
294
BERHAD 2018
31 CASH AND BANK BALANCES (Continued)
(d) The currency exposure profile of cash and bank balances is as follows:
Group Compa ny
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000

- US Dollar 48,064 278,846 - -
- Thai Baht 15,023 9,711 - -
- Euro 7,390 2,078 - -
- Pound Sterling 3,928 12,776 14 -
- Australian Dollar 871 2,397 - -
- Singapore Dollar 122 131 - -
- Indonesian
Rupiah 88 8,984 - -
- Japanese Yen - 635
1,706,157 1,544,331 1,842 33,707
32 BANKING RELATED ASSETS - CASH AND SHORT-TERM FUNDS
Group
2018 2017
RM’000 RM’000
Money at call and interbank placements maturing within

one month 1,260,898 900,914
Cash and balances with banks and other financial
institutions 319,025 126,828
Licensed Islamic banks 7,758 22,183
1,587,681 1,049,925
(a) The currency exposure profile of cash and short-term funds is as follows:
Group
2018 2017
RM’000 RM’000
- Ringgit Malaysia 1,097,041 559,386

- US Dollar 437,928 455,532
- Japanese Yen 38,780 20,602
- Euro 514 4,637
- Pound Sterling 5,452 3,116
- Other currencies 7,966 6,652
1,587,681 1,049,925
295
BERHAD 2018
32 BANKING RELATED ASSETS - CASH AND SHORT-TERM FUNDS (Continued)
(b) The weighted average effective profit rates of money at call and interbank placements
maturing within 1 month is 2.60% (2017: 2.50%) per annum.
(c) The weighted average effective profit rates and weighted average maturity of cash and
balances with banks and other financial institution is 2.13% (2017: 1%) per annum and
84 days (2017: 62 days) respectively.
33 DERIVATIVE FINANCIAL INSTRUMENTS
Contract/ Fair value

Notional
Value Assets Liabilities
RM’000 RM’000 RM’000
Group
2018
Financial instruments at fair value through
profit or loss
Currency forward foreign exchange contracts 1,098,432 1,973 75,301
Currency swaps foreign exchange contracts 841,470 70,995 1,498
Islamic profit rate swap 1,200,000 - 4,942
Capped cross currency interest rate swap 434,600 - 7,119
3,574,502 72,968 88,860
2017
Financial instruments at fair value through
profit or loss
Currency forward foreign exchange contracts 1,762,164 57,227 2,284
Currency swaps foreign exchange contracts 1,545,210 3,502 54,090
Islamic profit rate swap 2,000,000 - 8,490
Capped cross currency interest rate swap 579,467 765 -
5,886,841 61,494 64,864
(a) There is no significant change for the financial derivatives in respect of the following
since the last financial year ended 31 March 2017:
(i) the credit risk, market risk and liquidity risk associated with these financial
derivatives;
(ii) the cash requirements of the financial derivatives; and
(iii) the policy in place for mitigating or controlling the risks associated with these
financial derivatives.
296
BERHAD 2018
33 DERIVATIVE FINANCIAL INSTRUMENTS (Continued)
(b) Disclosure of gain/loss arising from fair value changes of financial derivatives
During the current financial year, the Group recognised a total net loss of
RM12,522,000 (2017: net gain of RM54,025,000) in profit or loss arising from the fair
value changes on the currency forward foreign exchange contracts, currency swaps
foreign exchange contracts, Islamic profit rate swap and capped cross currency
interest rate swap which are marked to market as at 31 March 2018.
34 SHARE CAPITAL
Group and Company

2018 2017
Number
Number of Monetary of Monetary
Shares Value Shares Value
’000 RM’000 ’000 RM’000
Issued and fully paid:
Ordinary shares:
At beginning of the
financial year 1,933,237 1,740,302 1,933,237 1,719,601
Transfer of share
premium on 31
January 2017 - - - 20,701
year 1,933,237 1,740,302 1,933,237 1,740,302
297
BERHAD 2018
35 PERPETUAL SUKUK
The Perpetual Sukuk is related to the Company’s Sukuk Musharakah Programme of up to

RM2,000,000,000 in nominal value, which was approved by the Securities Commission
Malaysia on 27 November 2014. The Perpetual Sukuk is under the Islamic principle of
Musharakah.
As at 31 March 2018, the total Perpetual Sukuk issued by the Company is RM1,040,000,000
(2017: RM1,040,000,000).
Total
Series Date of issue First call date RM’000
1 30 December 2014 5th anniversary of issue date 415,000
7th anniversary of issue date 300,000
2 27 February 2015 5 anniversary of issue date
th
100,000
3 15 April 2015 5 anniversary of issue date
th
100,000
4 15 May 2015 5 anniversary of issue date
th
50,000
5 12 August 2015 5 anniversary of issue date
th
75,000
1,040,000
The Perpetual Sukuk holders are conferred a right to receive distribution on a semi-annual
basis from their issuance date at 7.45% to 8.00% (2017: 7.45% to 8.00%) per annum,
subject to a step-up rate after the 1st call date and on the 3rd anniversary of the 1st call date
of their respective tranches.
The Perpetual Sukuk has no fixed maturity and is redeemable in whole or in part, at the
Company’s option on their respective 1st call date together with any accrued, unpaid or
deferred distributions. While any distributions are unpaid or deferred, the Company will not
declare, pay dividends or make similar periodic payments in respect of, or redeem, buy-back
or otherwise acquire any securities of lower or equal rank. Based on its terms, the Perpetual
Sukuk has been classified as an equity instrument.
The Perpetual Sukuk was issued for the Company’s working capital purposes as well as to
finance investments such as purchase of shares, lands, buildings and property and
development and construction costs.
36 REDEEMABLE CONVERTIBLE CUMULATIVE PREFERENCE SHARES
On 6 June 2016, PROTON Holdings Berhad (“PROTON”), a wholly-owned subsidiary

company of the Group, entered into a conditional subscription agreement with GOVCO
Holdings Berhad (“GOVCO”), a 99.99% company owned by Minister of Finance Incorporated,
for the issuance of up to 1,250,000,000 redeemable convertible cumulative preference shares
(“RCCPS”) of RM0.01 each in PROTON at an issue price of RM1.00 per RCCPS to GOVCO
(“Initial Subscription Agreement”). The issuance of RCCPS is to enable PROTON to settle the
long outstanding balances payable to the various vendors. The Initial Subscription Agreement
was completed on 7 June 2016 (“Initial Subscription RCCPS”).
298
BERHAD 2018
36 REDEEMABLE CONVERTIBLE CUMULATIVE PREFERENCE SHARES (Continued)
On 5 September 2016, PROTON entered into another conditional subscription agreement

with GOVCO for the issuance of up to 250,000,000 RCCPS at an issue price of RM1.00 per
RCCPS to GOVCO. At the Extraordinary General Meeting on 29 September 2016, the
shareholders of DRB-HICOM Berhad approved the issuance of up to 250,000,000 RCCPS by
PROTON. On 22 June 2017, GOVCO completed the subscription of the 250,000,000 RCCPS
(“Subsequent Subscription RCCPS”).
The key salient terms of the Initial Subscription RCCPS and Subsequent Subscription RCCPS
are as follows:
Tenure Up to 15 years after the date of issuance of the Initial

Subscription on 7 June 2016.
Dividend rate 4.0% per annum on a cumulative basis, subject to availability

of profit.
Grace period 5 years from the date of issuance of the Initial Subscription
RCCPS.
Conversion rights PROTON has the option to convert partially or wholly any
outstanding RCCPS into new ordinary shares of PROTON at
any time after the Grace Period.
Conversion ratio 1 RCCPS : 1.152 new ordinary shares of PROTON.
On 5 October 2017, the Company signed the definitive agreement with GOVCO for the
purchase of the first principal tranche of RM300,000,000 RCCPS issued by PROTON due on
6 June 2023 and the RCCPS dividend entitlement for the period ended 6 June 2017
amounting to RM50,000,000 from GOVCO (collectively known as “RCCPS Purchase”). The
RCCPS Purchase was completed on 6 October 2017. On the same day, the Company also
executed an Asset Exchange Agreement with GOVCO for the creation of an asset pool
comprising landed properties, designated shares or cash (“Asset Pool”), whereby GOVCO has
the option to:
(i) require the Company to transfer the Asset Pool to GOVCO in consideration for GOVCO
transferring the PROTON ordinary shares to be received from the conversion of
GOVCO’s unredeemed principal amount of the RCCPS at the tenure expiry date of 6
June 2031, or
(ii) terminate the Asset Exchange Agreement and keep the new PROTON ordinary shares to
be received.
Effectively, the Company had issued a put option to GOVCO in relation to new PROTON
ordinary shares to be received from the conversion of the unredeemed principal of the
RCCPS of RM1,200,000,000. The put option will give rise to a financial liability at the Group
under FRS 132 Financial Instruments: Presentation.
As at 5 October 2017, the unredeemed principal amount of the RCCPS is RM1,200,000,000.

The initial carrying amount of the RCCPS liability will be RM529,599,000 being the net present
value of the redemption value of the RCCPS of RM1,200,000,000 discounted at the
Company’s borrowing rate of 6% per annum. Accordingly, the Group has reclassified
RM529,599,000 from RCCPS equity to RCCPS liability. Accretion of discounts related to
RCCPS of RM15,508,000 was recognised to profit or loss during the financial year.
299
BERHAD 2018
37 DEFERRED INCOME
This represents the following items:
(i) Club membership licence fees received in advance by a subsidiary company, net of
amounts recognised as income in the financial statements;
(ii) Grants received in advance; and
(iii) Deferred revenue mainly comprises fair value of free services given to customers
upon sale of vehicles and prepaid rental received.
Advance
license Deferred
fees Grants revenue Total
Note RM’000 RM’000 RM’000 RM’000
Group
2018
At 1 April 2017 71,439 32,806 95,786 200,031
Received 380 4,255 139,201 143,836
Amortisation 6 (1,277) (5,111) (104,898) (111,286)
differences - - (133) (133)
Transfer to liabilities
related to disposal
groups held for sale 27 (70,542) - (6,871) (77,413)
At 31 March 2018 - 31,950 123,085 155,035
Non-current - 23,212 86,384 109,596

Current - 8,738 36,701 45,439
- 31,950 123,085 155,035
2017
At 1 April 2016 72,848 39,912 71,500 184,260
companies 53(ii) - - (1,137) (1,137)
Received 225 23,399 72,249 95,873
Amortisation 6 (1,634) (30,505) (46,986) (79,125)
differences - - 160 160
At 31 March 2017 71,439 32,806 95,786 200,031
Non-current 70,137 20,114 61,370 151,621

Current 1,302 12,692 34,416 48,410
71,439 32,806 95,786 200,031
300
BERHAD 2018
38 LONG TERM BORROWINGS
Group Company
2018 2017 2018 2017
Note RM’000 RM’000 RM’000 RM’000
Secured
• Hire purchase and
finance lease
liabilities 55,296 35,237 - -
- Portion repayable
within 12 months
included under
bank borrowings 45 (16,191) (13,033) - -
39,105 22,204 - -
• Long term loans 866,827 1,421,672 117,532 195,887

- Portion repayable
within 12 months
included under
bank borrowings 45 (243,719) (548,238) (78,355) (78,355)
623,108 873,434 39,177 117,532
• Long term loans

under Islamic
financing 2,843,165 2,733,099 1,520,775 1,435,632
- Portion repayable
within 12 months
included under
bank borrowings 45 (807,795) (299,975) (481,073) (14,776)
2,035,370 2,433,124 1,039,702 1,420,856
Unsecured
• Long term loans - 1,726 - -
- Portion repayable
within 12 months
included under
bank borrowings 45 - (1,726) - -
- - - -
• Long term loans

under Islamic
financing 769,468 781,412 - -
- Portion repayable
within 12 months
included under
bank borrowings 45 (1,760) (4,767) - -
767,708 776,645 - -
3,465,291 4,105,407 1,078,879 1,538,388
301
BERHAD 2018
38 LONG TERM BORROWINGS (Continued)
(a) The hire purchase and finance lease liabilities are secured against the respective
assets acquired as disclosed in Notes 13(f) and 14(b).
(b) Long term loans (secured and unsecured)
Group
The long term loans of the Group mainly comprise the following:
(i) During the financial year, a subsidiary company issued Medium Term Notes
(“MTN”) of RM340,000,000. The MTN financing is to finance the construction
cost of the Immigration, Custom, Quarantine and Security Complex at Bukit
Kayu Hitam and are issued over maturity dates of 36 months to 192 months.
The first repayment commences on 28 August 2020 and is fully repayable on
29 August 2033. The interest on MTNs is charged at a fixed rate of 4.60% to
5.50% in accordance to the MTN maturity period and the effective interest
rate as at the reporting date was 3.11% per annum.
(ii) The USD86,254,000 syndicated term loan (equivalent to RM338,289,000)

(2017: USD115,000,000) which bears interest rate of 5.40% (2017: 5.40%)
per annum, is repayable by 6 (2017: 8) semi-annual instalments,
commencing from January 2017 and was utilised for working capital and
general corporate purposes.
(iii) The term loan of RM120,000,000 (2017: RM200,000,000) which bears

floating interest rate of 2.25% (2017: 2.25%) per annum above effective cost
of funds, is repayable by 3 (2017: 5) instalments on semi-annual basis,
commencing from March 2017 and was utilised for working capital and
general corporate purposes. The effective interest rate as at the reporting
date was 6.45% (2017: 6.42%) per annum.
(iv) The term loan of RM34,027,000 (2017: RM90,370,000) which bears floating
interest rate of 1.75% (2017: 1.75%) per annum above effective cost of
funds, is repayable by 3 (2017: 7) instalments on quarterly basis,
commencing from May 2014 for the acquisition of shares in Composites
Technology Research Malaysia Sdn. Bhd. The effective interest rate as at
the reporting date was 5.87% (2017: 5.77%) per annum. This term loan has
been reclassified to the current borrowings as at 31 March 2018.
The secured long term loans are secured by fixed and floating charges over shares in
certain subsidiary companies, certain property, plant and equipment, concession
assets, prepaid lease properties, investment properties, property development
activities, assets and disposal groups held for sale, inventories, receivables and short
term deposits as disclosed in Notes 3, 13, 14, 15, 16, 17, 27, 28, 29 and 30.
Company
The long term loans of the Company are borrowings with terms as disclosed in Note
38(b)(iii) above.
302
BERHAD 2018
(c) Long term loans under Islamic financing (secured and unsecured)
Group
The long term loans under Islamic financing of the Group mainly comprise the
following:
(i) The Islamic Medium Term Notes (“IMTN”) of RM1,520,000,000 (2017:

RM1,420,000,000) in nominal value which bears the yield-to-maturity rates
range from 4.85% to 6.90% (2017: 4.85% to 5.33%) per annum, is repayable
commencing from April 2018 to March 2022. The IMTN were utilised to
partially finance the acquisition of shares in PROTON Holdings Berhad and
working capital purposes.
(ii) The Senior Sukuk 1 of RM500,000,000 of a banking subsidiary company

(2017: RM505,000,000 which comprise of Senior Sukuk 1 of RM5,000,000
and Senior Sukuk 2 of RM500,000,000) carries a tenure of 5 (2017: 5) years
with a profit rate of 5.50% (2017: 5.50%) per annum. Senior Sukuk 2 has
matured and fully repaid during the financial year.
(iii) The syndicated term loan of RM323,381,000 (2017: RM389,550,000) which

bears the profit rates range from 5.88% to 6.95% (2017: 5.68% to 6.95%)
per annum, is repayable by 12 (2017: 16) instalments on a quarterly basis
commencing from November 2016 to purchase plant and equipment by a
subsidiary company, HICOM Automotive Manufacturers (Malaysia) Sdn.
Bhd.
(iv) The RM250,000,000 Subordinated Sukuk of a banking subsidiary company

carries a tenure of 5 (2017: 5) years with a profit rate of 5.80% (2017:
5.80%) per annum and qualifies as Tier-2 capital for the purpose of Bank
Negara Malaysia capital adequacy requirement.
(v) The term loan of RM173,324,000 (2017: RM236,351,000) which bears the
profit rate of 2.00% (2017: 2.00%) per annum above effective cost of funds,
is repayable by 11 (2017: 15) instalments on quarterly basis for the
acquisition of shares in Pos Logistics Berhad and Pos Asia Cargo Express
Sdn. Bhd. by Pos Aviation Sdn. Bhd. (“PASB”). The effective profit rate as at
the reporting date was 6.57% (2017: 6.21%) per annum.
(vi) The term loans of RM164,297,000 (2017: RM164,567,000) which bears

floating profit rate of 1.25% (2017: 1.25%) per annum above effective cost of
funds, is repayable by 123 (2017: 135) monthly instalments to finance the
development cost of DRB-HICOM University of Automotive Malaysia. The
effective profit rate as at the reporting date ranged from 5.00% to 5.45%
(2017: 5.00% to 5.45%) per annum.
303
BERHAD 2018
(c) Long term loans under Islamic financing (secured and unsecured) (Continued)
Group (Continued)
(vii) During the financial year, Tawarruq financing facility (“TWQ”) of

RM733,000,000 was undertaken by a subsidiary company, which consists of
4 tranches of TWQ to finance the construction and development cost of new
infrastructures and facilities of the existing Angkasapuri Complex into a new
Media City under the Ministry of Communications and Multimedia Malaysia.
The term loans of RM132,073,000 which comprise of Tawarruq 1 (“TWQ 1”)
of RM38,433,000 and Tawarruq 3 (“TWQ 3”) of RM93,640,000 have been
drawdown from the borrowing facility. TWQ 1 bears the profit rate of 2.00%
per annum above effective cost of funds and is repayable by 96 monthly
instalments upon expiry of the Availability Period (“AP”) of 36 months and a
grace period of 6 months 2017. TWQ 3 bears the profit rate of 1.80% per
annum above effective cost of funds and is repayable by 84 monthly
instalments upon expiry of the AP of 12 months and a grace period of 6
months from May 2017. The effective profit rate as at the reporting date
ranged from 7.25% to 7.45% per annum.
(viii) The term loan of USD29,610,000 (equivalents to RM115,894,000) was

undertaken by a subsidiary company for the purchase of vessels during the
financial year. The term loan carries a tenure of 8 years commencing from 5
December 2017 and repayable on a quarterly basis with the effective profit
rate of 4.00% per annum as at the reporting date.
(ix) The term loans of RM94,320,000 (2017: RM98,806,000) which bears the
profit rate of 1.75% (2017: 1.75%) per annum above effective cost of funds,
is repayable in 45 months (2017: 57 months) on a quarterly basis for the
construction of factory building including the purchase of property, plant and
equipment in Malacca. The effective profit rate as at the reporting date was
6.28% (2017: 5.74%) per annum.
(x) The syndicated term loan of RM65,660,000 (2017: RM91,856,000) which

bears the profit rate of 1.50% (2017: 1.50%) per annum above effective cost
of funds, is repayable on a quarterly basis for the purchase of concession
assets. The effective profit rate as at the reporting date was 5.92% (2017:
5.66%) per annum.
(xi) The USD13,750,000 syndicated term loan (equivalent to RM53,930,000)

(2017: USD18,333,000) which bears the profit rate of 5.40% (2017: 5.40%)
per annum, is repayable by 6 (2017: 8) equal semi-annual instalments
commencing from January 2017 and utilised for working capital and general
corporate purposes.
The secured long term loans under Islamic financing are secured by fixed and floating
charges over shares in certain subsidiary companies, certain property, plant and
equipment, concession assets, prepaid lease properties, investment properties,
property development activities, assets and disposal groups held for sale, inventories,
receivables and short term deposits as disclosed in Notes 3, 13, 14, 15, 16, 17, 27, 28,
29 and 30.
304
BERHAD 2018
(c) Long term loans under Islamic financing (secured and unsecured) (Continued)
Company
The long term loans under Islamic financing of the Company are borrowings with
terms as disclosed in Note 38(c)(i) above. In addition, the IMTN is also secured by a
charge over the Revenue Account in respect of the assignments of all proceeds from
any entitlements to the Company, including the repayments, distribution of capital,
dividend payments and/or advances from subsidiary companies and associated
companies.
(d) The weighted average effective annual interest/profit rates at the end of the financial
year are as follows:
Group Compa ny
2018 2017 2018 2017
% % % %
Hire purchase and

finance lease
liabilities 3.43 3.08 - -
Long term loans 5.46 5.73 6.45 6.42
Long term loans
under Islamic
financing 5.55 5.50 5.16 5.05
(e) The currency exposure profile of long term borrowings is as follows:
Group Compa ny
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
- Ringgit Malaysia 3,109,422 3,662,911 1,078,879 1,538,388

- US Dollar 355,869 442,496 - -
3,465,291 4,105,407 1,078,879 1,538,388
305
BERHAD 2018
(f) Hire purchase and finance lease liabilities
Group
2018 2017
RM’000 RM’000
Minimum hire purchase and finance lease

payments:
- not later than 1 year 19,465 14,871
- later than 1 year and not later than 2 years 20,274 10,821
- later than 2 years and not later than 3 years 8,993 7,981
- later than 4 years and not later than 5 years 4,949 478
62,292 38,864
Future finance charges on hire purchase and
finance lease liabilities (6,996) (3,627)
Present value of hire purchase and finance
lease liabilities 55,296 35,237
Representing hire purchase and finance lease

liabilities:
- non-current 39,105 22,204
- current (i ncluded in Note 45) 16,191 13,033
55,296 35,237
(g) The exposure of long term borrowings to interest/profit rate risk is as follows:
Maturity profile
Year 5
Carrying and
amount Year 2 Year 3 Year 4 above
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2018
Fixed rate
Hire purchase and
finance lease
liabilities 39,105 18,340 7,894 8,040 4,831
Long term loans 572,477 121,674 135,697 16,784 298,322
Long term loans
under Islamic
financing 1,966,672 414,059 544,953 976,505 31,155
2,578,254 554,073 688,544 1,001,329 334,308
306
BERHAD 2018
(Continued)
Maturity profile
Year 5
Carrying and
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2018 (Continued)
Floating rate
Long term loans 50,631 47,909 2,722 - -
Long term loans
under Islamic
financing 836,406 269,521 272,644 66,151 228,090
887,037 317,430 275,366 66,151 228,090
3,465,291 871,503 963,910 1,067,480 562,398
2017
Fixed rate
Hire purchase and
finance lease
liabilities 22,204 9,718 7,443 4,573 470
Long term loans 385,471 128,665 128,715 127,836 255
Long term loans
under Islamic
financing 2,395,839 555,367 384,433 440,589 1,015,450
2,803,514 693,750 520,591 572,998 1,016,175
Floating rate
Long term loans 487,963 435,369 48,876 2,722 996
Long term loans
under Islamic
financing 813,930 247,659 246,384 232,148 87,739
1,301,893 683,028 295,260 234,870 88,735
4,105,407 1,376,778 815,851 807,868 1,104,910
307
BERHAD 2018
(Continued)
Maturity profile
Year 5
Carrying and
RM’000 RM’000 RM’000 RM’000 RM’000
Company
2018
Floating rate
Long term loans 39,177 39,177 - - -
Fixed rate
Long term loans
under Islamic
financing 1,039,702 329,944 499,861 209,897 -
1,078,879 369,121 499,861 209,897 -
2017
Floating rate
Long term loans 117,532 78,355 39,177 - -
Fixed rate
Long term loans
under Islamic
financing 1,420,856 481,323 329,883 399,788 209,862
1,538,388 559,678 369,060 399,788 209,862
308
BERHAD 2018
39 PROVISION FOR LIABILITIES AND CHARGES
Provision
for claims
Sales from
Warranty returns suppliers Total
Note RM’000 RM’000 RM’000 RM’000
Group
2018
At 1 April 2017 186,482 205 178,862 365,549
companies 53(i)(b) (32,336) - - (32,336)
6&
Charged
53(i) 48,665 321 118,343 167,329
Unused amounts
reversed 6 (1,461) (352) - (1,813)
Utilised (80,006) - (16,950) (96,956)
Warranties reimbursable
from suppliers 32,163 - - 32,163
differences 592 - - 592
Effect of FRS 139 - - 3,414 3,414
At 31 March 2018 154,099 174 283,669 437,942
Non-current 17,549 - 99,178 116,727

Current 136,550 174 184,491 321,215
154,099 174 283,669 437,942
2017
At 1 April 2016 157,138 143 251,715 408,996
Charged 6 73,555 347 - 73,902
Unused amounts
reversed 6 (4,088) (160) (8,436) (12,684)
Utilised (99,742) (125) (53,334) (153,201)
Warranties reimbursable
from suppliers 45,947 - - 45,947
Transfer from other
payables 15,620 - - 15,620
differences (1,948) - - (1,948)
Effect of FRS 139 - - (11,083) (11,083)
At 31 March 2017 186,482 205 178,862 365,549
Non-current 18,025 - 72,531 90,556

Current 168,457 205 106,331 274,993
186,482 205 178,862 365,549
309
BERHAD 2018
40 PROVISION FOR CONCESSION ASSETS
Group
2018 2017

Effect of changes in estimates 14 - 1,920
Replacements 33,343 29,614
Utilised (4,406) (20,987)
Unwinding of discounts 7,786 5,353
Non-current 179,938 138,809

Current 1,740 6,146
181,678 144,955
Non-current:
- later than 5 years 178,073 137,105
179,938 138,809
As disclosed in Note 2.28(iii), the above represents the contractual obligation by a subsidiary
company in relation to the Service Concession Agreement.
41 POST-EMPLOYMENT BENEFIT OBLIGATIONS
The Group operates unfunded defined benefit plans for eligible employees of certain
subsidiary companies. The Group operated a funded defined benefit plan in respect of a
foreign subsidiary company until the completion of disposal of Lotus Advance Technologies
Sdn. Bhd. group during the financial year. The carrying value of the post-employment benefit
obligations of the Group was based on the valuations by actuaries. The level of benefits
provided depends on members’ length of service and their salary in the final years leading up
to retirement.
(a) The amount shown in the statement of financial position is presented as follows:
Group
2018 2017
RM’000 RM’000
Present value of funded obligations - 663,698

Fair value of plan assets - (633,985)
Shortfall of funded plan - 29,713
Present value of unfunded obligations 8,792 8,523
Benefit liability 8,792 38,236
310
BERHAD 2018
41 POST-EMPLOYMENT BENEFIT OBLIGATIONS (Continued)
(a) The amount shown in the statement of financial position is presented as follows:
(Continued)
Group
2018 2017
RM’000 RM’000
Non-current 8,199 37,741

Current 593 495
8,792 38,236
(b) Changes in present value of defined benefit obligations are as follows:
Group
2018 2017

Disposals of subsidiary companies 53(i)(b) (681,600) -
Current service costs 272 6,017
Reversal of provision for past service costs (227) -
Interest costs 285 21,000
Actuarial loss/(gain) on obligations:
- Effect of experience gains on liabilities 363 (16,024)
- Effect on curtailment (26) -
- Effect of changes in financial
assumptions - 106,113
- Effect of changes in demographic
assumptions - (5,088)
Employees contribution - 3,033
Currency translation differences 18,065 (9,229)
Benefits paid/payable (561) (22,635)
Present value of funded obligations - 663,698

Present value of unfunded obligations 8,792 8,523
311
BERHAD 2018
(c) Changes in fair value of plan assets are as follows:
Group
2018 2017
Disposal of subsidiary companies 53(i)(b) (651,085) -
Currency translation differences 17,100 (8,672)
Interest income - 19,527
Employers contributions - 14,180
Employees contributions - 3,033
Benefits paid - (21,935)
Re-measurement gain - Return on plan
assets excluding interest income - 89,384
Plan expenses - (6,056)
At end of the financial year - 633,985
(d) The expenses recognised in profit or loss are analysed as follows:
Group
2018 2017
Current service costs 272 6,017

Interest costs (net) 285 1,473
Effect on curtailment (26) -
Reversal of provision for past
service costs (227) -
Administrative costs - 6,056
Staff costs 8 304 13,546
(e) The principal actuarial assumptions used in the latest actuarial valuation are as
follows:
Group
2018 2017
Discount rate (%) 4.90 - 7.23 2.80 - 6.00

Expected rate of salary increase (%) 5.00 - 6.00 2.00 - 6.00
Expected return on plan assets (%)
- equities - 2.80
- bonds - 2.80
- others - 2.80
Inflation rate (%) 2.50 - 3.50 2.50 - 3.50
312
BERHAD 2018
(f) The currency exposure profile of post-employment benefit obligations is as follows:
Group
2018 2017
RM’000 RM’000
- Ringgit Malaysia 8,792 8,287

- Pound Sterling - 29,713
- Thai Baht - 236
8,792 38,236
(g) The following table demonstrates the sensitivity of the Group’s defined benefit
obligations to a reasonably possible change in significant assumptions as at 31 March
2018:
Increase Decrease
RM’000 RM’000
Group
2018
Discount rate (0.5% movement) (323) 367
Future salary (0.5% movement) 229 (200)
2017
Discount rate (0.5% movement) (61,546) 70,417
Future salary (0.5% movement) 7,853 (7,290)
(h) The maturity profile of defined benefit obligations is as follows:
Group
2018 2017
Average duration of the defined benefit obligations

(years) 5.85 - 24 6.85 - 19
(i) The expected contributions to defined benefit obligations are as follows:
Group
2018 2017
RM’000 RM’000
Within the next 12 months 637 18,097
Between 2 and 5 years 2,615 72,703
Between 5 and 10 years 6,412 7,808
Beyond 10 years 9,752 9,816
Total expected payments 19,416 108,424
313
BERHAD 2018
(j) In the previous financial year, the categories of plan assets of the foreign subsidiary
company were as follows:
Group
2017
RM’000
Equities 368,086
Bonds 68,206
Cash and cash equivalents 197,693
633,985
42 BANKING RELATED LIABILITIES - DEPOSITS FROM CUSTOMERS
Group
2018 2017
RM’000 RM’000
Savings deposits
Qard 947,906 1,052,795
Tawarruq 267,224 107,869
1,215,130 1,160,664
Demand deposits
Qard 3,391,839 2,994,706
Tawarruq 399,182 70,481
3,791,021 3,065,187
Term deposits
Negotiable Islamic debts certificates 1,156,951 1,550,790
Fixed term accounts tawarruq 10,803,931 11,003,797
Short term accounts 2,275,412 2,438,572
General investment deposits 119,429 140,575
14,355,723 15,133,734
Other deposits 33,408 38,309
Total 19,395,282 19,397,894
Non-current 617,221 418,615

Current 18,778,061 18,979,279
19,395,282 19,397,894
314
BERHAD 2018
42 BANKING RELATED LIABILITIES - DEPOSITS FROM CUSTOMERS (Continued)
(a) The currency exposure profile of deposits from customers is as follows:
Group
2018 2017
RM’000 RM’000
- Ringgit Malaysia 18,950,085 18,624,276

- US Dollar 438,204 769,765
- Pound Sterling 2,798 848
- Euro 1,589 2,579
- Other currencies 2,606 426
19,395,282 19,397,894
(b) The maturity period of the deposits from customers is as follows:
Group
2018 2017
RM’000 RM’000
- not later than 6 months 17,276,787 17,603,386

- later than 6 months and not later than 1 year 1,501,273 1,375,893
- later than 1 year and not later than 5 years 617,222 418,615
19,395,282 19,397,894
(c) The weighted average effective annual profit rates of deposits from customers at the
end of the financial year is 2.40% (2017: 3.00%) per annum.
43 BANKING RELATED LIABILITIES – RECOURSE OBLIGATION ON FINANCING SOLD TO

CAGAMAS
This represents the proceeds received from house financing sold directly to Cagamas Berhad
with recourse to the banking subsidiary company. Under these agreements, the banking
subsidiary company undertakes to administer the financing on behalf of Cagamas Berhad and
to buy-back any financing which are regarded as defective based on prudential criteria set by
Cagamas Berhad. These financial liabilities are stated at amortised cost.
315
BERHAD 2018
44 TRADE AND OTHER PAYABLES
Group Company
2018 2017 2018 2017
(Restated)
Note RM’000 RM’000 RM’000 RM’000
Trade payables 1,871,754 2,618,119 - -

Other payables and
accruals 2,887,921 3,012,549 44,649 85,652
Advances received
on contracts 464,349 625,944 - -
Progress billings 5,080 393 - -
Amounts due to
subsidiary
companies
- Loan account - - 872,170 1,439,758
- Current account - - 2,445 44,500
- - 874,615 1,484,258
Amounts due to joint
ventures 21,353 30,211 - -
Amounts due to
associated
companies 1,968 7,113 - -
Amounts due to
related parties 26,028 6,026 - -
Amounts due to
customers on
contracts 50 123,559 120,385 - -
5,402,012 6,420,740 919,264 1,569,910
Non-current - - 287,479 -
Current 5,402,012 6,420,740 631,785 1,569,910
5,402,012 6,420,740 919,264 1,569,910
316
BERHAD 2018
44 TRADE AND OTHER PAYABLES (Continued)
(a) The currency exposure profile of trade and other payables is as follows:
Group Company
2018 2017 2018 2017
(Restated)
RM’000 RM’000 RM’000 RM’000
- Ringgit Malaysia 4,722,894 4,512,430 919,264 1,569,910

- Euro 322,399 601,883 - -
- US Dollar 261,738 845,363 - -
- Japanese Yen 42,055 232,121 - -
- Pound Sterling 37,551 135,975
- Thai Baht 5,722 46,104 - -
- Indonesian Rupiah 1,659 2,979 - -
- Singapore Dollar 714 7,899 - -
- Australian Dollar 663 6,901 - -
- Chinese Yuan 108 27,075 - -
- Other currencies 6,509 2,010 - -
5,402,012 6,420,740 919,264 1,569,910
(b) The Group’s normal trade payables terms range from 30 days to 180 days (2017: 30
days to 180 days).
(c) Included in the amounts due to subsidiary companies are balances of RM573,786,000
(2017: RM662,834,000) which are interest bearing and unsecured. The interest rates
range from 3.05% to 6.15% (2017: 3.00% to 6.15%) per annum.
(d) All other amounts due to joint ventures, associated companies and related parties are
non-interest bearing, unsecured and repayable on demand.
45 BANK BORROWINGS
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
(i) Bank overdrafts
- secured 3,694 1,042 - -
- unsecured 5,368 5,469 - -
9,062 6,511 - -
317
BERHAD 2018
45 BANK BORROWINGS (Continued)
Group Company
2018 2017 2018 2017
Note RM’000 RM’000 RM’000 RM’000
(ii) Other bank
borrowings
Secured
Bankers
acceptances 34,276 53,281 - -
Revolving credits 209,661 275,772 86,500 86,500
Short term loans 14,963 1,510 - -
Short term loans
under Islamic
financing 158,304 155,502 - -
Hire purchase and
finance lease
liabilities -
portion repayable
within 12 months 38 16,191 13,033 - -
Long term loans -
portion repayable
within 12 months 38 243,719 548,238 78,355 78,355
Long term loans
under Islamic
financing -
portion repayable
within 12 months 38 807,795 299,975 481,073 14,776
Sub-total 1,484,909 1,347,311 645,928 179,631
Unsecured
Bankers
acceptances 554,645 590,553 - -
Revolving credits 244,445 207,500 66,000 66,000
Short term loans
under Islamic
financing 25,000 30,000 - -
Long term loans -
portion repayable
within 12 months 38 - 1,726 - -
Long term loans
under Islamic
financing -
portion repayable
within 12 months 38 1,760 4,767 - -
Deferred liability 4,587 4,534 - -
Sub-total 830,437 839,080 66,000 66,000
318
BERHAD 2018
45 BANK BORROWINGS (Continued)
Group Company
2018 2017 2018 2017
Note RM’000 RM’000 RM’000 RM’000
Total (Others - Secured

and Unsecured) 2,315,346 2,186,391 711,928 245,631
Total bank borrowings 2,324,408 2,192,902 711,928 245,631
(a) The currency exposure profile of bank overdrafts and other bank borrowings is as
follows:
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000

- US Dollar 279,618 297,058 - -
- Pound Sterling 15,252 15,613 - -
2,324,408 2,192,902 711,928 245,631
(b) The secured bank overdrafts and other borrowings are secured by way of fixed and
floating charges over shares in certain subsidiary companies, certain property, plant
and equipment, concession assets, prepaid lease properties, investment properties,
property development activities, assets and disposal groups held for sales,
inventories, receivables and short term deposits as disclosed in Notes 3, 13, 14, 15,
16, 17, 27, 28, 29 and 30.
(c) The deferred liability owing by solid waste subsidiary company to local municipalities
is in relation to the transfer of certain units of movable assets from these
municipalities to the subsidiary company and the amounts are non-interest bearing,
unsecured and payable in accordance with the repayment schedule.
(d) The weighted average effective annual interest/profit rates of the bank overdrafts and
other bank borrowings at the end of the financial year are as follows:
Group Company
2018 2017 2018 2017
% % % %
Bank overdrafts 8.16 8.25 - -
Bankers acceptances 4.55 4.13 - -
Revolving credits 5.36 5.29 5.45 5.36
Short term loans 5.35 3.56 - -
Short term loans under
Islamic financing 4.23 4.23 - -
319
BERHAD 2018
46 BANKING RELATED LIABILITIES - DEPOSITS AND PLACEMENTS OF BANKS AND

OTHER FINANCIAL INSTITUTIONS
Group
2018 2017
RM’000 RM’000
Non-Mudharabah
Bank Negara Malaysia 8,854 9,770
Licensed banks - 551,884
8,854 561,654
The above are denominated in Ringgit Malaysia and the average maturity period is not
exceeding 1 year (2017: not exceeding 1 year).
47 BANKING RELATED LIABILITIES - BILLS AND ACCEPTANCES PAYABLE
Bills and acceptances payable are denominated in Ringgit Malaysia and the average maturity
period is not exceeding 1 month (2017: not exceeding 1 month).
48 MERGER RESERVE
Pursuant to Section 60(4)(a) of the previous Companies Act 1965, the premiums on the
shares issued by the Company as consideration for the acquisitions of certain subsidiary
companies in the financial year ended 31 March 2001 were not recorded as share premium.
The difference between the issue price and the nominal value of shares issued were classified
as merger reserve.
49 OTHER RESERVES
Group
2018 2017
RM’000 RM’000
Non-distributable
Fair value reserve on property, plant and equipment and
prepaid lease properties 22,137 20,651
Asset revaluation reserve on step-up acquisition of
subsidiary companies 21,101 21,101
Share of subsidiary companies’ reserves 9,195 406,201
Share of associated companies’ reserves 2,400 2,400
Reserve on valuation of post-employment benefit
obligations 1,351 (31,402)
Reserves arising from dilution of interest in a subsidiary
company - 81,180
56,184 500,131
320
BERHAD 2018
50 CONSTRUCTION CONTRACTS
Group
2018 2017
Aggregate contract costs incurred 4,946,852 3,985,768

Recognised profits 1,084,080 811,283
Provision for foreseeable losses (20,413) (30,596)
6,010,519 4,766,455
Less: Progress billings (5,753,252) (4,262,212)
257,267 504,243
Analysed as follows:
Amounts due from customers on contracts 29 380,826 624,628
Amounts due to customers on contracts 44 (123,559) (120,385)
257,267 504,243
51 RETAINED EARNINGS
The balance of the entire retained earnings of the Company as at 31 March 2018 may be
distributed under the single tier system.
52 SUMMARY OF EFFECTS OF ACQUISITION, INCORPORATION AND RE-ORGANISATION

OF COMPANIES
2018
(i) Subsidiary companies
(a) On 10 March 2017, DRB-HICOM Defence Technologies Sdn. Bhd.

(“DEFTECH”), a wholly-owned subsidiary company of the Group, entered
into a share sale agreement with its 96.87% owned subsidiary company,
Composites Technology Research Malaysia Sdn. Bhd. (“CTRM”) for the
proposed acquisitions of the entire equity interests in the three wholly-owned
subsidiary companies of CTRM namely, CTRM Systems Integration Sdn.
Bhd., CTRM Aviation Sdn. Bhd. and Unmanned Systems Technology Sdn.
Bhd. for a total cash consideration of RM1.05 million. The transaction was
completed on 30 June 2017. As a result, the above three companies have
become direct subsidiary companies of DEFTECH. On 15 March 2018, the
above companies have been renamed as DEFTECH Systems Integration
Sdn. Bhd., DEFTECH Aviation Sdn. Bhd. and DEFTECH Unmanned
Systems Sdn. Bhd. respectively.
321
BERHAD 2018

OF COMPANIES (Continued)
2018 (Continued)
(i) Subsidiary companies (Continued)
(b) On 29 September 2017, following the completion of the PROTON corporate

exercise set out in Note 53(i)(b), the Group has undertaken the following
transactions via internal re-organisation:
(i) HICOM Berhad, an indirect wholly-owned subsidiary company of the

Group, acquired 100% equity interest in EON Properties Sdn. Bhd.
from Proton Edar Sdn. Bhd., an indirect wholly-owned subsidiary
company of PROTON for a nominal value of RM1.
(ii) Glenmarie Properties Sdn. Bhd., an indirect wholly-owned subsidiary

company of the Group, acquired 100% equity interest in Proton
Hartanah Sdn. Bhd. (“PHSB”) from PROTON for a nominal value of
RM1. PHSB owns 100% equity interest in Proton Properties Sdn. Bhd.
and 40% equity interest in Proton City Development Corporation Sdn.
Bhd.
(c) On 11 January 2018, DRB-HICOM Geely Sdn. Bhd. (“DHG”) was

incorporated and the shareholdings of 50.10% and 49.90% in DHG are held
by DRB-HICOM Berhad and Geely International (Hong Kong) Limited
respectively. DHG is an investment holding company.
(d) During the financial year ended 31 March 2018, the Group has completed
the PPA exercise to determine the fair values of the net assets of Pos
Malaysia Berhad (“Pos Malaysia”) within the stipulated time period, i.e. 12
months from the acquisition dates, in accordance with FRS 3. The details
are as follows:
RM’000
Provisional goodwill 355,844
Final goodwill 217,795
Differences (138,049)
The goodwill of RM217,795,000 comprises the value of expected synergies

arising from the acquisitions, which is not separately recognised. Goodwill is
allocated entirely to the postal services segment.
The adjusted fair values of Pos Malaysia’s identifiable assets, liabilities and
contingent liabilities have been reflected in the Consolidated Statement of
Financial Position as at 31 March 2017.
322
BERHAD 2018

2018 (Continued)
(d) (Continued)
Below are the effects of the final PPA adjustments in accordance with FRS
3:
As
previously
stated Adjustments As restated
RM’000 RM’000 RM’000
As at 31 March 2017
Consolidated Statement
of Financial Position
Non-current assets
Property, plant and 6,352,474 110,957 6,463,431
equipment
Intangible assets 1,812,523 86,020 1,898,543
Non-current liabilities
Deferred tax liabilities 129,375 80,895 210,270
Current liabilities
Trade and other payables 6,420,456 284 6,420,740
of Changes in Equity
Retained earnings 2,707,010 (2,242) 2,704,768
Non-controlling interest 1,723,097 118,040 1,841,137
For the financial year
ended 31 March 2017
of Comprehensive
Income
Administrative expenses (1,404,943) (5,514) (1,410,457)
Taxation (38,218) 1,324 (36,894)
financial year
attributable to:
Owners of the Company (454,401) (2,242) (456,643)
Non-controlling interest 73,659 (1,948) 71,711
323
BERHAD 2018

2018 (Continued)
(d) (Continued)
As
previously
stated Adjustments As restated
RM’000 RM’000 RM’000
For the financial year
ended 31 March 2017
of Comprehensive
Income (Continued)
Total comprehensive
financial year
attributable to:
- Owners of the Company (500,127) (2,242) (502,369)
- Non-controlling interest 71,170 (1,948) 69,222
(ii) Joint venture
On 29 September 2017, following the completion of the PROTON corporate exercise

set out in Note 53(i)(b), HICOM Holdings Berhad, a direct wholly-owned subsidiary
company of the Group, acquired 45% equity interest in Exedy (Malaysia) Sdn. Bhd., a
joint venture of PROTON for a nominal value of RM1 via internal re-organisation.
(iii) Associated companies
On 29 September 2017, following the completion of the PROTON corporate exercise

set out in Note 53(i)(b), HICOM Holdings Berhad, a direct wholly-owned subsidiary
company of the Group, acquired the following investments via internal re-
organisation:
- 37.5% equity interest in PHN Industry Sdn. Bhd., an associated company of

PROTON for a nominal value of RM1.
- 25% equity interest in Marutech Elastomer Industries Sdn. Bhd., an associated

company of PROTON for a nominal value of RM1.
324
BERHAD 2018
52 SUMMARY OF EFFECTS OF ACQUISITION, INCORPORATION AND RE-

ORGANISATION OF COMPANIES (Continued)
2017
(iv) Subsidiary companies
(a) On 15 June 2016, Composites Technology Research Malaysia Sdn. Bhd.

(“CTRM”), an indirect 96.87% owned subsidiary company of the Group,
completed the acquisition of an additional 35% equity interest in Unmanned
Systems Technology Sdn. Bhd. (“UST”) for a cash consideration of
RM35,000. On 9 March 2017, CTRM completed the acquisition of the
remaining 14% equity interest in UST for a cash consideration of RM14,000.
As a result, UST became an effective 96.87% owned subsidiary company of
the Group.
(b) On 13 September 2016, the Group completed a corporate exercise whereby

Pos Malaysia Berhad (“Pos Malaysia”) which was formerly a 32.21% owned
associated company became a 53.50% owned subsidiary company of the
Group.
(c) On 31 January 2017, PHN Industry Sdn. Bhd. (“PHN”), an indirect wholly-
owned subsidiary company of the Group, completed the acquisition of 100%
equity interest in Oriental Summit Industries Sdn. Bhd. (“OSI”) from HICOM
Holdings Berhad, a wholly-owned subsidiary company of the Group for a
cash consideration of RM23,958,000, via an internal re-organisation. As a
result, OSI became a wholly-owned subsidiary company of PHN.
(d) On 17 February 2017, HICOM Berhad, an indirect wholly-owned subsidiary

company of the Group, completed the acquisition of the remaining 51%
equity interest in Dekad Kaliber Sdn. Bhd. (“DKSB”) for a consideration of
RM7,000,000 involving RM3,650,000 as cash consideration and
RM3,350,000 as settlement of outstanding advances owing from DKSB to
Malaysian Resources Corporation Berhad group. As a result, DKSB became
an indirect wholly-owned subsidiary company of the Group.
(e) On 31 March 2017, DRB-HICOM EZ-Drive Sdn. Bhd. (“DHEZ”), a wholly-

owned subsidiary company of EON, completed the acquisition of 100%
equity interest in DRB-HICOM Leasing Sdn. Bhd. (“DLSB”) from Edaran
Otomobil Nasional Berhad (“EON”), an indirect wholly-owned subsidiary
company of the Group, via an internal re-organisation. As a result, DLSB
became a wholly-owned subsidiary company of DHEZ.
Details of cash flow arising from the acquisitions for items (b) and (d) are as follows:
RM’000
Total purchase considerations (943,588)
Less: Non-cash consideration arising from the acquisition for
items (b) and (d) 937,043
Purchase consideration, settled in cash (including the direct
expenses of RM2,895,000 attributable to the acquisition) (6,545)
Cash and cash equivalents arising from acquisitions of subsidiary
companies 613,582
Net cash inflow from acquisitions 607,037
325
BERHAD 2018

2017 (Continued)
(iv) Subsidiary companies (Continued)
The subsidiary companies acquired during the financial year contributed revenue of
approximately RM958,717,000 and profit after taxation of approximately
RM41,325,000 to the Group for the period from the dates of acquisitions to 31 March
2017. Had the acquisitions taken effect at the beginning of the financial year, the
revenue and profit after taxation contributed to the Group would have been
RM1,811,680,000 and RM82,302,000 respectively.
Details of net assets acquired and goodwill arising from the acquisitions for items (b)
and (d) are as follows:
Carrying
value Fair value
RM’000 RM’000
Property, plant and equipment 653,537 765,191
Investment properties 31,100 31,100
Intangible assets - 227,868
Investment securities: financial assets at fair
value through profit or loss 408 408
Investment securities: held-to-maturity 84,136 84,136
Inventories 13,411 13,411
Trade and other receivables 495,831 495,831
Amount due from customers 17,325 17,325
Tax recoverable 8,131 8,131
Short term deposits 346,820 346,820
Cash and bank balances 266,762 266,762
Bank borrowings – current (98,798) (98,798)
Tax payable (1,500) (1,500)
Trade and other payables (690,559) (689,826)
Deferred tax liabilities (35,881) (118,100)
Non-controlling interest (507,426) (627,414)
Share of net assets acquired 583,297 721,345
Goodwill 219,348
Direct expenses attributable to the acquisition 2,895
Total purchase considerations 943,588
326
BERHAD 2018
52 SUMMARY OF EFFECTS OF ACQUISITION, INCORPORATION AND RE-

ORGANISATION OF COMPANIES (Continued)
(v) Joint venture
On 18 October 2016, Isuzu Service Center Sdn. Bhd. (“ISC”) was incorporated with
issued and paid-up share capital of RM100 divided into 100 ordinary shares of RM1
each. The shareholdings of 51% and 49% in ISC are held by Isuzu Malaysia Sdn.
Bhd. and Automotive Corporation (Malaysia) Sdn. Bhd. respectively. As a result, ISC
became an indirect 73.69% joint venture of the Group.
53 SUMMARY OF EFFECTS OF DILUTION AND DISPOSAL OF COMPANIES
2018
(i) Subsidiary companies
(a) On 18 September 2017, Proton Motor Pars Co. (Private Joint Stock), an
indirect wholly-owned subsidiary company of PROTON, was dissolved and
ceased to be an indirect subsidiary company of the Group.
(b) On 29 September 2017, the Group completed the following proposals:
- Share subscription of 547,020,534 ordinary shares, representing

49.9% of the enlarged ordinary share capital in PROTON Holdings
Berhad (“PROTON”) by Zhejiang Geely Holding Group Co., Ltd.
(“ZGH”) for a total subscription price of RM460.3 million via RM170.30
million in cash and the grant of the licence of Boyue model by ZGH to
PROTON at an ascribed value of RM290 million. As a result, the
Group’s equity interest in PROTON reduced to 50.1% and the
remaining 49.9% equity interest is held by ZGH’s nominated
subsidiary company, Geely International (Hong Kong) Limited.
- Disposal of 100% indirect equity interest in Lotus Advance

Technologies Sdn. Bhd. (“Lotus Advance”), a wholly-owned subsidiary
company of PROTON comprising 51% equity interest to ZGH and
49% equity interest to Etika Automotive Sdn. Bhd. As a result, Lotus
Advance ceased to be an indirect wholly-owned subsidiary company
of the Group.
As part of the corporate exercise, the effect of PROTON restructuring is

disclosed in the following.
Group Company
2018 2018
Allowance for doubtful debts 6,479 -

Amortisation of intangible
assets 21 8,679 -
Sub-total carried forward 15,158 -
327
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
53 SUMMARY OF EFFECTS OF DILUTION AND DISPOSAL OF COMPANIES (Continued)
2018 (Continued)
(b) (Continued)
Group Company
2018 2018
Sub-total brought forward 15,158 -

Depreciation of property, plant
and equipment 13 7,276 -
Impairment loss of:
- intangible assets 21 121,348 -
- property, plant and
equipment 13 5,658 -
Loss on disposals of
subsidiary companies 97,637 -
Provision for liabilities and
charges 39 103,685 -
Transaction costs 32,990 32,990
Other costs 211,761 -
595,513 32,990
The effects of the disposal of Lotus Advance up to the dates of disposal on

the results of the Group are shown below:
RM’000
Revenue 263,623
Cost of sales (225,262)
Gross profit 38,361
Other income 11,011
Selling and distribution expenses (14,996)
Administrative expenses (23,709)
Other expenses (36,777)
Finance costs (150)
Share of results of joint venture (net of tax) 14
Loss before taxation (26,246)
Taxation 48
Loss after taxation (26,198)
328
167
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2018 (Continued)
(b) (Continued)
Below are the effects of the disposal of Lotus Advance on the financial
position and the cash flows of the Group:
RM’000
Property, plant and equipment 230,180
Intangible assets 346,648
Joint venture 307
Inventories 107,059
Provision for liabilities and charges (32,336)
Post-employment benefit obligations (30,515)
Tax payable (1,246)
Deferred tax liabilities (9,317)
Share of net assets disposed 464,555
Loss on disposals (97,637)
Other comprehensive income - reclassification adjustments 82,980
Total sales considerations (net) 449,898
Less: Cash and cash equivalents of the subsidiary
companies disposed (21,028)
Net cash inflow from disposals 428,870
Total sales considerations 563,358

Less: 20% contingent consideration (in Escrow account) (113,460)
329
168
BERHAD 2018
2018 (Continued)
(c) On 5 October 2017, Pos Malaysia Berhad, a 53.50% owned subsidiary

company of the Group, announced the proposed winding-up of its direct and
indirect dormant subsidiary companies via members’ voluntary winding up
(“MVL”) and creditors’ voluntary winding up (“CVL”) and the companies
involved in the exercise are as follows:
Companies under MVL

1. Pos Takaful Agency Sdn. Bhd.
2. PSH Allied Berhad
3. Maya Perkasa (M) Sdn. Bhd.
4. Kaypi Logistics Depot Sdn. Bhd.
5. Asia Pacific Freight System Sdn. Bhd.
6. Diperdana Selatan Sdn. Bhd.
Companies under CVL

1. Diperdana Terminal Services Sdn. Bhd.
Upon the completion of the liquidation exercise, the above companies will
cease to be subsidiary companies of the Group.
(d) On 29 November 2017, PT Proton Cikarang Indonesia, an indirect dormant

wholly-owned subsidiary company of PROTON was dissolved and ceased to
be an indirect subsidiary company of the Group.
(e) On 25 January 2018, the following direct and indirect dormant companies of
the Group were wound up and as a results, they ceased to be subsidiary
companies of the Group.
Companies under MVL

1. HICOM Technical and Engineering Services Sdn. Bhd.
2. Syarikat Pengangkutan Malaysia Sendirian Berhad
3. EON Trading Sdn. Bhd.
4. HICOM-Potenza Sports Sdn. Bhd.
Companies under CVL

1. NSE Development Sdn. Bhd.
2. S.J. Binateknik Sdn. Bhd.
3. EONMobil Sdn. Bhd.
4. Euro Truck & Bus (Malaysia) Sdn. Bhd.
5. Comtrac Trading Sdn. Bhd.
6. Imatex Management Services Sdn. Bhd.
330
BERHAD 2018
2018 (Continued)
(f) On 15 March 2018, the following direct and indirect dormant companies of
the Group were wound up and as a results, they ceased to be subsidiary
companies of the Group.
Companies under MVL

1. Ladang Gadek Development Sdn. Bhd.
2. Ladang Kupang Development Sdn. Bhd.
3. DRB-HICOM Export Corporation Sdn. Bhd.
4. Gemilang Komposit Auto Sdn. Bhd.
5. Mega Komposit Auto Sdn. Bhd.
6. Comtrac Premises Sdn. Bhd.
7. Comtrac-Sabkar Development Sdn. Bhd.
8. CTRM Excelnet Engineering Sdn. Bhd.
Companies under CVL

1. Bukit Kledek Development Sdn. Bhd.
2. Intrakota Komposit Sdn. Bhd.
3. S.J. Kenderaan Sdn. Bhd.
4. Intrakota Consolidated Berhad
2017
(ii) Subsidiary companies
(a) On 20 July 2016, the Group announced that Lotus Cars Australia Pty.
Limited (“LCA”), an indirect dormant wholly-owned subsidiary company of
PROTON Holdings Berhad (“PROTON”) was voluntarily deregistered and as
a result, LCA ceased to be a subsidiary company of the Group.
(b) On 13 September 2016, following the completion of the corporate exercise

set out in Note 52(iv)(b), the Group’s effective equity interest in KL Airport
Services Sdn. Bhd. (now known as Pos Aviation Sdn. Bhd.) group has
reduced from 100% to 53.50%.
(c) On 15 November 2016, HICOM Megah Sdn. Bhd., an indirect wholly-owned

subsidiary company of the Group, completed the disposal of its entire equity
interest of 90% in Corwin Holding Pte. Ltd. (“Corwin”) for a total cash
consideration of SGD170,900,000. As a result, Corwin ceased to be an
indirect subsidiary company of the Group.
(d) On 20 January 2017, the Group announced the dissolution of Proton Motor
Pars Co. (Private Joint Stock) (“PMP”), an indirect dormant wholly-owned
subsidiary company of PROTON. Upon the completion of dissolution, PMP
will cease to be an indirect wholly-owned subsidiary company of the Group.
331
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2017 (Continued)
(ii) Subsidiary companies (Continued)
(e) On 31 January 2017, Edaran Otomobil Nasional Berhad (“EON”), an indirect

wholly-owned subsidiary company of the Group, completed the disposal of
its entire 100% equity interest in Multi Automotive Service and Assist Sdn.
Bhd. (“MASA”) for a cash consideration of RM1.00. As a result, MASA
ceased to be an indirect wholly-owned subsidiary company of the Group.
(f) On 7 March 2017, HICOM Holdings Berhad, a wholly-owned subsidiary

company of the Group, completed the disposal of its entire 70% equity
interest in Scott & English Electronics Holdings Sdn. Bhd. (“SEEH”) for a
total cash consideration of RM1,540,000. As a result, SEEH ceased to be a
subsidiary company of the Group.
(g) On 30 March 2017, the Company announced the proposed winding-up of its
direct and indirect subsidiary companies via members’ voluntary winding up
(“MVL”) and creditors’ voluntary winding up (“CVL”) and the companies
involved in the exercise are as follows:
Companies under MVL

1. Ladang Gadek Development Sdn. Bhd.
2. Ladang Kupang Development Sdn. Bhd.
3. EON Trading Sdn. Bhd.
4. Comtrac Development Sdn. Bhd.
5. Comtrac Premises Sdn. Bhd.
6. Comtrac-Sabkar Development Sdn. Bhd.
7. Jubli Premis Sdn. Bhd.
8. HICOM Power Sdn. Bhd.
9. Glenmarie Asset Management Sdn. Bhd.
10. HICOM Megah Sdn. Bhd.
11. HICOM United Leasing Sdn. Bhd.
12. Gemilang Komposit Auto Sdn. Bhd.
13. HICOM Technical and Engineering Services Sdn. Bhd.
14. Syarikat Pengangkutan Malaysia Sendirian Berhad
15. DRB-HICOM Export Corporation Sdn. Bhd.
16. Mega Komposit Auto Sdn. Bhd.
17. HICOM-Potenza Sports Cars Sdn. Bhd.
18. CTRM Excelnet Engineering Sdn. Bhd.
Companies under CVL

1. EONMobil Sdn. Bhd.
2. EON Technologies Sdn. Bhd.
3. Comtrac Trading Sdn. Bhd.
4. Bukit Kledek Development Sdn. Bhd.
5. NSE Development Sdn. Bhd.
6. Euro Truck & Bus ( Malaysia) Sdn. Bhd.
7. HICOM Premier Malaysia Sdn. Bhd.
8. Imatex Management Services Sdn. Bhd.
9. Intrakota Komposit Sdn.Bhd.
10. S.J. Kenderaan Sdn. Bhd.
171
332
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2017 (Continued)
(g) (Continued)
Companies under CVL

11. Intrakota Consolidated Berhad
12. S.J. Binateknik Sdn. Bhd.
13. Proton Engineering Research Technology Sdn. Bhd.
14. Glenview Management Corporation Sdn. Bhd.
Upon the completion of the liquidation exercise, the above companies will
cease to be subsidiary companies of the Group. There was a minimal
financial impact arising from the deconsolidation of subsidiary companies as
above to the Group’s assets and liabilities.
The effects of the disposals for items (c), (e) and (f), up to the dates of disposals on
the results of the Group are shown below:
RM’000
Revenue 19,448
Cost of sales (10,786)
Gross profit 8,662
Other income 3,589
Selling and distribution expenses (71)
Administrative expenses (4,094)
Finance costs (4,850)
Profit before taxation 3,236
Taxation 573
Profit after taxation 3,809
Below are the effects of the disposals for items (c), (e) and (f) on the financial position
and the cash flows of the Group:
RM’000
Property, plant and equipment 212
Investment properties 427,812
Intangible assets 41
Deferred tax assets 268
Tax recoverable 124
Short term deposits 1,923
Sub-total carried forward 444,088
333
172
BERHAD 2018
DRB-HICOM BERHAD
(203430-W)
2017 (Continued)
The effects of the disposals for items (c), (e) and (f), up to the dates of disposals on
the results of the Group are shown below: (Continued)
RM’000
Sub-total brought forward 444,088
Deferred income (1,137)
Bank borrowings - current (3,056)
Long term borrowings (255,229)
Non-controlling interest (27,185)
Share of net assets disposed 148,704
Gain on disposals (net) 398,257
Other comprehensive income - reclassification adjustments (37,387)
Less: Cash and cash equivalents of the subsidiary companies
disposed (12,951)
Net cash inflow from disposals 496,623
Total sales considerations 517,993

Less: Direct expenses attributable to the disposals (8,419)
(iii) Associated company
On 17 October 2016, Suzuki Malaysia Automobile Sdn. Bhd. (“SMA”), a 40% owned
associated company of the Group has commenced the dissolution exercise via
members’ voluntary winding up. Upon the completion of dissolution, SMA will cease
to be a 40% owned associated company of the Group.
334
173
BERHAD 2018
54 SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES
In addition to related party disclosures mentioned elsewhere in the financial statements, set
out below are other significant related party transactions which were carried out on mutually
agreed terms and conditions.
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
(a) Sale of goods/services

to:
- Joint ventures 61,653 87,513 - -
- Associated companies 243,152 208,265 - -
- Related parties 72,515 114,717 - -
(b) Purchase of
goods/services
from:
- Joint ventures 249,950 346,715 - -
- Related parties 102,326 120,276 - -
(c) Dividend income:

- Subsidiary companies - - 585,446 695,159
- Associated companies - - 112,370 110,296
(d) Interest income:

(e) Finance costs:

(f) Year end balances -

bank ing:
- Associated companies
Short term deposits 39,229 35,635 - -
- Related parties
Short term deposits 1,052,289 677,038 - -
Revolving credits 334,996 449,092 - -
Trade line 625,022 497,107 - -
Term loan 63,090 64,475 - -
Bank guarantee 949 62,252 - -
Bonds purchased 10,111 20,208 - -
335
BERHAD 2018
54 SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (Continued)
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
(g) Key management

compensation:
- Salaries, bonuses,
allowances and
other benefits 8,052 7,714 - -
- Defined contribution
plan 1,008 944 - -
55 CAPITAL AND OTHER COMMITMENTS
(a) Non-bank ing
(i) Capital commitments
Capital expenditure as at the reporting date is as follows:
Group
2018 2017
RM’000 RM’000
Authorised capital expenditure for property,
plant and equipment, investment properties,
concession assets, land held for property
development and intangible assets not
provided for in the financial statements
- contracted for 667,921 257,442
- not contracted for 3,446,680 1,538,015
4,114,601 1,795,457
(ii) Operating lease commitments - as lessee
Future minimum rentals payable under commitments for non-cancellable

operating leases at the reporting date are as follows:
Group
2018 2017
RM’000 RM’000
Payable within 1 year 42,258 82,343

Payable within 2 to 5 years 19,305 84,204
Payable more than 5 years 26,725 21,191
88,288 187,738
336
BERHAD 2018
55 CAPITAL AND OTHER COMMITMENTS (Continued)
(a) Non-banking (Continued)
(iii) Operating lease commitments - as lessor
Future minimum rentals receivable under commitments for non-cancellable

operating leases at the reporting date are as follows:
Group
2018 2017
RM’000 RM’000
Receivable within 1 year 61,541 60,229

Receivable within 2 to5 years 91,755 203,67 2
Receivable more than 5 years 6,101 48 ,592
159,397 312,493
(b) Banking
In the normal course of business, the banking subsidiary company makes various
commitments and incurs certain contingent liabilities with legal resource to its
customers. No material losses are anticipated as a result of these transactions.
Risk weighted exposures of a banking subsidiary company are as follows:
Total
Credit risk
Principal equivalent weighted
amount amount amount
RM’000 RM’000 RM’000
At 31 March 2018
Contingent liabilities
Direct credit substitutes 237,010 237,010 208,603
Trade-related contingencies 25,603 5,121 528
Transaction related contingencies 342,229 171,114 166,532
Commitments
Credit extension commitment:
- maturity within 1 year 927,991 185,598 170,493
- maturity exceeding 1 year 2,336,704 1,168,352 371,012
Islamic derivative financial

instruments
Profit rate related contracts 1,200,000 10,875 2,175
Foreign exchange related contracts 1,707,391 98,531 30,839
6,776,928 1,876,601 950,182
337
BERHAD 2018
55 CAPITAL AND OTHER COMMITMENTS (Continued)
(b) Banking (Continued)
Risk weighted exposures of a banking subsidiary company are as follows: (Continued)
Total
Credit risk
Principal equivalent weighted
amount amount amount
RM’000 RM’000 RM’000
At 31 March 2017
Contingent liabilities
Direct credit substitutes 213,136 213,136 181,099
Trade-related contingencies 22,970 4,594 4,581
Transaction related contingencies 425,973 212,986 208,304
Commitments
Credit extension commitment:
- maturity within 1 year 798,577 159,715 146,883
- maturity exceeding 1 year 1,019,465 509,732 452,990
Islamic derivative financial

instruments
Profit rate related contracts 2,000,000 104,111 20,822
Foreign exchange related contracts 2,875,367 88,561 69,605
7,355,488 1,292,835 1,084,284
338
BERHAD 2018
56 GROUP SEGMENT REPORTING
For management purpose, the Group is organised into business units based on the industry
and has 3 reportable segments as follows:
Industry segment Description
Automotive Manufacturing, assembly, vehicles importation, pre-delivery

inspection, composite manufacturing, vehicles leasing, distribution
and sale of motor vehicles, military vehicles, motorcycles and special
purpose vehicles including sale of related spares and services.
Services (i) Concession - Vehicle inspection, solid waste management

and airport ground handling business.
(ii) Banking - Islamic banking and related financial services.
(iii) Postal - Mail, courier and retail.
(iv) Integrated logistics and inventory solutions.
(v) Education - Higher education and vocational training
institution.
Property, Asset and Property holding, development and construction works.

Construction
The Management Committee monitors the operating results of its business units separately for
the purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on profit or loss and is measured consistently with
profit or loss in the consolidated financial statements.
(a) Primary reporting format - business segment
Inter-segment revenue comprises revenue to other business segments carried out on

an arm’s length basis.
Segment results represent segment revenue less segment expenses. Unallocated

expenses represent corporate operating and administrative expenses.
Segment assets consist of primarily of property, plant and equipment, concession

assets, prepaid lease properties, investment properties, inventories, receivables,
property development costs, land held for property development, investment
securities, banking related assets, cash and bank balances and derivative assets.
Segment liabilities comprise mainly payables, banking related liabilities, provision for
liabilities and charges, provision for concession assets and derivative liabilities.
Unallocated liabilities consist of accruals on corporate operating and administrative
expenses.
Capital expenditure comprises additions of property, plant and equipment, concession

assets, prepaid lease properties, investment properties, intangible assets, land held
for property development and property development costs.
(b) Secondary reporting format - geographical segment
The Group’s secondary format, by geographical location, is not shown as the activities
of the Group are predominantly in Malaysia and the overseas segment does not
contribute to more than 10% of the consolidated revenue and assets.
339
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DRB-HICOM
DRB-HICOM BERHAD
(203430-W)
56 GROUP SEGMENT REPORTING (Continued)
The information of each of the Group’s business segments for the financial year ended 31 March 2018 is as follows:
Primary reporting format - business segment

Property,
Asset & Investment
Automotive Services Construction Holding Group
RM’000 RM’000 RM’000 RM’000 RM’000
Revenue
Total revenue 7,871,379 4,646,101 876,430 46,638 13,440,548
Inter-segment revenue (401,341) (151,325) (51,567) (46,638) (650,871)
340
External revenue 7,470,038 4,494,776 824,863 - 12,789,677
Segment results (57,521) 474,562 110,072 (35,074) 492,039

Unallocated expenses (31,636)
Interest income 71,243
Share of results of joint ventures (net of tax) (2,190) - 2,592 - 402
Share of results of associated companies (net of tax) 242,417 932 - - 243,349
Profit before taxation 415,130
Taxation (119,824)
Net profit for the financial year 295,306
Attributable to:
Owners of the Company 498,441
Holders of Perpetual Sukuk 79,453
Non-controlling interest (282,588)
179
2018
Annual Report
BERHAD
DRB-HICOM
Primary reporting format - business segment (Continued)

Property,
Asset & Investment
RM’000 RM’000 RM’000 RM’000 RM’000
Other information
Segment assets 8,887,741 27,791,930 3,220,061 192,331 40,092,063

Interest bearing short term deposits 1,127,871
Taxation assets 273,713
341
Joint ventures 298,075
Associated companies 869,870 15,534 - - 885,404
Assets and disposal groups held for sale 42,634 - 473,407 2,266 518,307
Total assets 43,195,433
Segment liabilities 4,504,222 21,502,588 616,465 65,390 26,688,665

Bank borrowings 5,789,699
Taxation liabilities 265,148
Liabilities related to disposal groups held for sale 135,683
Unallocated liabilities 30,366
Total liabilities 32,909,561
Capital expenditure 630,480 470,945 (40,195) 255 1,061,485

Depreciation and amortisation 626,450 250,854 34,146 2,985 914,435
Impairment loss/(reversal of impairment loss) 142,925 (486) 43,226 - 185,665
2018
Annual Report
BERHAD
DRB-HICOM
The information of each of the Group’s business segments for the financial year ended 31 March 2017 is as follows:
Primary reporting format - business segment

Property,
Asset & Investment
RM’000 RM’000 RM’000 RM’000 RM’000
Financial year ended 31 March 2017 (Restated)
Revenue
Total revenue 8,650,536 3,714,283 535,957 50,016 12,950,792
Inter-segment revenue (573,026) (160,771) (108,645) (50,016) (892,458)
External revenue 8,077,510 3,553,512 427,312 - 12,058,334
342
Segment results (955,699) 384,339 506,933 (66,726) (131,153)
Unallocated expenses (32,497)
Interest income 57,375
Share of results of joint ventures (net of tax) 8,134 - 1,441 - 9,575
Share of results of associated companies (net of tax) 223,863 15,032 1,012 - 239,907
Loss before taxation (227,698)
Taxation (36,894)
Net loss for the financial year (264,592)
Attributable to:
Owners of the Company (456,643)
Holders of Perpetual Sukuk 79,655
Holders of Redeemable Convertible Cumulative Preference Shares 40,685
Non-controlling interest 71,711
2018
Annual Report
DRB-HICOM BERHAD
BERHAD
(203430-W)
DRB-HICOM
Primary reporting format - business segment (Continued)

Property,
Asset & Investment
RM’000 RM’000 RM’000 RM’000 RM’000
Financial year ended 31 March 2017 (Restated)
Other information
Segment assets 11,188,022 27,119,244 2,572,749 311,686 41,191,701

Interest bearing short term deposits 1,332,531
Taxation assets 345,725
Joint ventures 371,087 - 42,739 - 413,826
343
Associated companies 741,669 14,874 - - 756,543
Assets held for sale 4,500 - - - 4,500
Total assets 44,044,826
Segment liabilities 4,836,256 21,640,902 614,147 98,291 27,189,596

Bank borrowings 6,298,309
Taxation liabilities 289,085
Unallocated liabilities 13,523
Total liabilities 33,790,513
Capital expenditure 591,227 129,612 234,876 (736) 954,979

Depreciation and amortisation 713,307 181,359 18,787 3,280 916,733
Impairment loss 56,028 18,771 5,742 - 80,541
182
2018
Annual Report
BERHAD 2018
57 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated by the Directors and are based on
historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future events. The resulting
accounting estimates will, by definition, rarely equal to the related actual results. To enhance
the information content of the estimates, certain key variables that are anticipated to have
material impact to the Group’s results and financial position are tested for sensitivity to
changes in the underlying parameters. The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year are outlined below:
(a) Impairment of property, plant and equipment and intangible assets
The Group tests property, plant and equipment and intangible assets for impairment if
there is any indicator of impairment. The recoverable amounts are determined based
on value in use or fair value less cost to sell, whichever is higher. Under the fair value
less cost to sell approach, when estimating the fair value of certain assets, the
objective is to estimate the price that would be received in an orderly transaction
between market participants at the reporting date under current market conditions.
Under the value in use approach, estimating the value in use involves estimating the
future cash inflows and outflows that will be derived from these assets and discounting
them at an appropriate rate. Based on management’s impairment review, impairment
loss of RM25,470,000 (2017: RM8,049,000) and RM121,610,000 (2017:
RM55,593,000) was recognised for property, plant and equipment and intangible
assets respectively during the financial year.
(b) Impairment of loans and receivables
The Group assesses at each reporting date whether there is any objective evidence
that a financial asset is impaired. To determine whether there is objective evidence of
impairment, the Group considers factors such as the probability of insolvency or
significant financial difficulties of the debtor and default or significant delay in
payments.
Where there is objective evidence of impairment, the amount and timing of future cash
flows are estimated based on historical loss experience for assets with similar credit
risk characteristics.
(c) Impairment of banking related assets - financing of customers
Financing that have been assessed individually but for which no impairment is
required as well as all individually insignificant financing need to be assessed
collectively, in groups of assets with similar credit risk characteristics. This is to
determine whether impairment should be made due to incurred loss events for which
there is objective evidence but effects of which are not yet evident. The collective
assessment takes into account of data from the financing portfolio (such as credit
quality, levels of arrears, credit utilisation, financing to collateral ratios) and
judgements on the effect of concentrations of risks (such as the performance of
different individual groups).
344
BERHAD 2018
57 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)
(d) Construction contracts and property development activities
The Group recognises revenue based on percentage of completion method. The

stage of completion is measured by reference to the costs incurred to date to the
estimated total costs. Judgement is required in determining the stage of completion,
the extent of the costs incurred, the estimated total revenue (other than fixed price
contracts) and costs, as well as the recoverability of the receivables. In making the
judgement, the Group relies on past experience and work of specialists.
(e) Deferred tax assets
Deferred tax assets are recognised for all unabsorbed tax losses, unutilised capital
allowances, unutilised reinvestment allowances, unutilised investment tax allowances
and other deductible temporary differences to the extent that it is probable that taxable
profit will be available against which the losses and tax allowances can be utilised.
Significant management judgement is required to determine the amount of deferred
tax assets that can be recognised based on the likely timing and level of future taxable
profits together with future tax planning strategies.
(f) Allowance for inventory write down
Allowance for inventory write down is made based on an analysis of the ageing profile
and expected sales patterns of individual items held in inventory. This requires an
analysis of inventory usage based on expected future sales transactions taking into
account current market prices, useful lives of inventories and expected cost to sell.
Changes in the inventory ageing and expected usage profiles can have an impact on
the allowance recorded.
(g) Fair value of derivatives and other financial instruments
The fair value of financial instruments that are not traded in an active market is
determined by using valuation techniques. The Group uses its judgement to select a
variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting date. The Group has used discounted cash flow
analysis for various available-for-sale financial assets that are not traded in active
markets.
(h) Estimate of fair value of investment properties
The Group and the Company estimate the fair values of its investment properties
using investment and market comparison methods. The fair value of investment
properties is determined by independent professional valuers, having appropriate
recognised professional qualifications and recent experience in the location and
category of property being valued. The independent professional valuers provide the
fair value of the Group’s and of the Company’s investment properties portfolio
annually. The principal assumptions underlying these valuations are further explained
in Note 59(c)(v).
345
BERHAD 2018
(i) Fair value estimation of derivative financial instruments, investment securities:

financial investments at fair value through profit or loss and available-for-sale
For financial instruments measured at fair value, where the fair values cannot be
derived from active markets, these fair values are determined using a variety of
valuation techniques, including the use of mathematical models. Whilst the Group
generally uses widely recognised valuation models with market observable inputs,
judgement is required where market observable data are not available. Such
judgement normally incorporate assumptions that other market participants would use
in their valuations, including assumptions on profit rate yield curves, exchange rates,
volatilities and prepayment and default rates.
(j) Classification of leases - as lessor
The Group, as the lessor, has entered into long term leasing agreements for certain of
its motor vehicles with its customers (as lessees). The Group assessed the following:
(i) The Group does not pass the titles of the motor vehicles to the lessee by the
end of the lease term;
(ii) The lessee has no option to purchase the motor vehicles;
(iii) The lease term is not for a major part of the economic life of the motor vehicles;
(iv) At the inception of the lease, the present value of the minimum lease payments
amounts is not substantially all the fair value of the leased motor vehicles; and
(v) The motor vehicles leased are not specialised in nature.
Management are of the view that the Group retains all the significant risks and
rewards of ownership of these motor vehicles and thus accounted for the leasing
agreements as operating leases.
(k) Provision for claims from suppliers
Provision for claims from suppliers have been computed based on the shortfall of the
actual order volume compared to the required volume for vendors to recover their
tooling cost. The provision recorded is computed based on the estimated payout for
claims which is subject to negotiation on a case-by-case basis with its suppliers. It is
expected that most of the provision for claims from suppliers for models will be
incurred within 1 to 3 years from the reporting date. When there are deviations from
the original estimate, such difference will impact the carrying value of the provision
and will be charged to profit or loss in the period such an estimate has been changed.
The carrying amount of the provision for claims from suppliers are disclosed in Note
39.
346
BERHAD 2018
(l) Provision for product warranties
Certain subsidiary companies make provision for product warranties based on an

assessment of historical experience and industry average for defective productions.
The identification of defect liability requires the use of judgement and estimates. It is
expected that most of these cost will be incurred within 1 year from the reporting date.
When there are deviations from the original estimate, such difference will impact the
carrying value of the provision and will be charged to profit or loss in the period such
an estimate has been changed.
The carrying amounts of provision for product warranties for defective works are
disclosed in Note 39.
(m) Provision for concession assets
Under the Service Concession Agreement, the concession subsidiary company has
contractual obligations to ensure that the levels of investments are sufficient to
maintain the collection services and public cleansing management services to a
specified standard. The subsidiary company has recognised a provision for its
obligation which depends on the estimated future capital expenditure to maintain the
services. These judgements and assumptions are subject to risks and uncertainties,
hence there is a possibility that changes in circumstances will alter expectations, which
may impact the amount of provisions recognised in the financial statements.
The carrying amount of provision recognised is disclosed in Note 40.
(n) Impairment of investment in subsidiary companies
The Company tests investment in subsidiary companies for impairment if there is an

indication of impairment. The recoverable amounts are determined based on fair value
less costs to sell. When estimating the fair value of the subsidiary companies, the
objective is to estimate the price that would be received in an orderly transaction
between market participants at the reporting date under current market conditions.
Based on these calculations, an impairment loss of RM2,564,697,000 (2017:
RM360,154,000) was recognised during the financial year, of which RM2,193,197,000
(2017: RM335,154,000) was related to an automotive subsidiary company.
347
BERHAD 2018
58 SIGNIFICANT EVENTS
(a) On 21 June 2017, the Ministry of Finance approved the award of a Research and
Development (“R&D”) Reimbursement Grant for R&D activities carried out by
Perusahaan Otomobil Nasional Sdn. Bhd. (“PONSB”). On 6 October 2017, PONSB
received the R&D Reimbursement Grant of RM1,100,000,000 and settled its
syndicated term loan and shareholder’s advances.
(b) On 29 September 2017, the Group completed the following proposals:
- Share subscription of 547,020,534 ordinary shares, representing 49.9% of the

enlarged ordinary share capital in PROTON Holdings Berhad (“PROTON”) by
Zhejiang Geely Holding Group Co., Ltd. (“ZGH”) for a total subscription price of
RM460.3 million via RM170,300,000 in cash and the grant of the licence of
Boyue model by ZGH to PROTON at an ascribed value of RM290,000,000. As
a result, the Group’s equity interest in PROTON reduced to 50.1% and the
remaining 49.9% equity interest is held by ZGH’s nominated subsidiary
company, Geely International (Hong Kong) Limited.
- Disposal of 100% indirect equity interest in Lotus Advance Technologies Sdn.

Bhd. (“Lotus Advance”), a wholly-owned subsidiary company of PROTON
comprising 51% equity interest to ZGH and 49% equity interest to Etika
Automotive Sdn. Bhd. As a result, Lotus Advance ceased to be an indirect
wholly-owned subsidiary company of the Group.
Further, the Group had undertaken the following transactions via internal re-
organisation:
(i) Acquisition of the following investments by HICOM Holdings Berhad, a direct

wholly-owned subsidiary company of the Group:
- 45% equity interest in Exedy (Malaysia) Sdn. Bhd., a joint venture of

PROTON for a nominal value of RM1.
- 37.5% equity interest in PHN Industry Sdn. Bhd., an associated company

of PROTON for a nominal value of RM1.
- 25% equity interest in Marutech Elastomer Industries Sdn. Bhd., an

associated company of PROTON for a nominal value of RM1.
(ii) HICOM Berhad, an indirect wholly-owned subsidiary company of the Group,

acquired 100% equity interest in EON Properties Sdn. Bhd. from Proton Edar
Sdn. Bhd., an indirect wholly-owned subsidiary company of PROTON for a
nominal value of RM1.
(iii) Glenmarie Properties Sdn. Bhd., an indirect wholly-owned subsidiary company

of the Group, acquired 100% equity interest in Proton Hartanah Sdn. Bhd.
(“PHSB”) from PROTON for a nominal value of RM1. PHSB owns 100% equity
interest in Proton Properties Sdn. Bhd. and 40% equity interest in Proton City
Development Corporation Sdn. Bhd.
348
BERHAD 2018
58 SIGNIFICANT EVENTS (Continued)
(c) On 5 October 2017, the Company signed the definitive agreement with GOVCO
Holdings Berhad (“GOVCO”), a 99.99% company owned by Minister of Finance
Incorporated, for the purchase of the first principal tranche of RM300,000,000
redeemable convertible cumulative preference shares (“RCCPS”) issued by PROTON
due on 6 June 2023 and the RCCPS dividend entitlement for the period ended 6 June
2017 amounting to RM50,000,000 from GOVCO (collectively known as “RCCPS
Purchase”). The RCCPS Purchase was completed on 6 October 2017.
(d) Also, on 5 October 2017, the Company executed an Asset Exchange Agreement with
GOVCO for the creation of an asset pool comprising landed properties, designated
shares or cash (“Asset Pool”), whereby GOVCO has the option to:
(i) require the Company to transfer the Asset Pool to GOVCO in consideration for
GOVCO transferring the PROTON ordinary shares to be received from the
conversion of GOVCO’s unredeemed principal amount of the RCCPS at the
tenure expiry date of 6 June 2031, or
(ii) terminate the Asset Exchange Agreement and keep the new PROTON ordinary
shares to be received.
Effectively, the Company had issued a put option to GOVCO in relation to new
PROTON ordinary shares to be received from the conversion of the unredeemed
principal of the RCCPS of RM1,200,000,000.
(e) As announced to Bursa Malaysia on 8 March 2018, DRB-HICOM Group had entered
into various agreements for the proposed disposals of certain property assets and
investments to Prisma Dimensi Sdn. Bhd. (“Prisma Dimensi”) and Kelana Ventures
Sdn. Bhd. (“Kelana Ventures”). The total consideration for the Proposed Disposals is
approximately RM1,934,700,000 to be satisfied via approximately 1,243.45 acres of
freehold land in the Mukim of Tebrau, District of Johor Bahru, Johor, held by Prisma
Dimensi and Kelana Ventures and cash consideration of approximately
RM288,700,000. The Proposed Disposals are pending fulfilment of conditions
precedent.
349
BERHAD 2018
59 FAIR VALUE MEASUREMENT
(a) Financial and non-financial instruments measured at fair value
The table below provides the fair value measurement hierarchy of the Group’s and the
Company’s assets and liabilities:
Level 1 Level 2 Level 3 Total

RM’000 RM’000 RM’000 RM’000
Group
2018
Assets measured at fair
value:
Investment securities:
available-for-sale 118,670 6,237,515 8,725 6,364,910
Investment securities: fair
value through profit or loss 292 - 161,274 161,566
Derivative assets - 72,968 - 72,968
Investment properties - - 248,193 248,193
118,962 6,310,483 418,192 6,847,637
Liabilities measured at fair

value:
Derivative liabilities - 88,860 - 88,860
2017
value:
Investment securities:
available-for-sale 160,013 6,012,240 5,316 6,177,569
Investment securities: fair
value through profit or loss 175 - 197,208 197,383
Derivative assets - 61,494 - 61,494
160,188 6,073,734 449,413 6,683,335
Liabilities measured at fair

value:
Derivative liabilities - 64,864 - 64,864
350
BERHAD 2018
59 FAIR VALUE MEASUREMENT (Continued)
(a) Financial and non-financial instruments measured at fair value (Continued)
The table below provides the fair value measurement hierarchy of the Group’s and the
Company’s assets and liabilities: (Continued)
Level 1 Level 2 Level 3 Total

RM’000 RM’000 RM’000 RM’000
Company
2018
value:
2017
value:
There is no transfer from Levels 1, 2 and 3 during the financial year.
For fair value measurements categorised within Levels 2 and 3 of the fair value
hierarchy, the fair values are determined using appropriate valuations technique,
which include the use of mathematical models, such as discounted cash flow models
and option pricing models, comparison to similar instruments for which market
observable prices exist and other valuation techniques. Valuation techniques used
incorporate assumptions regarding discount rates, profit rate yield curves, estimates of
future cash flows and other factors.
351
BERHAD 2018
(a) Financial and non-financial instruments measured at fair value (Continued)
The reconciliation of the financial and non-financial assets that are measured at
Level 3 of the hierarchy of fair value is as follows:
Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
At beginning of the
financial year 449,413 823,574 130,654 136,355
Acquisitions of subsidiary
companies - 31,100 - -
companies - (427,812) - -
Total gain/(loss) through
profit or loss 9,044 (17,879) (47) 6,416
Purchases 2,848 9,357 - 41
Sales (2,625) (627) - (10,800)
Transfer to property,
plant and equipment (1,350) (12,470) - -
for sale (12,300) (4,500) - -
development costs - 1,216 - -
differences (26,838) 47,454 - -
Adjustment - - - (1,358)
year 418,192 449,413 130,607 130,654
352
BERHAD
DRB-HICOM
(b) Financial instruments that are not measured at fair value and which carrying amounts are not reasonable approximation of fair value:
Total Carrying
Level 1 Level 2 Level 3 fair value amount
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2018
Assets
Investment securities: held-to-maturity - 159,357 - 159,357 143,730
Financing of customers - 8,459,327 5,208,288 13,667,615 14,517,972
353
- 8,618,684 5,208,288 13,826,972 14,661,702
Liabilities
Hire purchase and finance lease liabilities - 39,105 - 39,105 39,105
Long term loans (fixed rate) - 572,477 - 572,477 572,477
Long term loans under Islamic financing (fixed rate) - 1,966,672 - 1,966,672 1,966,672
Bank borrowings (non-current) - 2,578,254 - 2,578,254 2,578,254
Bills and acceptances payable - - 9,618 9,618 9,618
Deposits from customers - 4,904,311 14,507,680 19,411,991 19,395,282
Deposits and placements of banks and other
financial institutions - - 8,436 8,436 8,854
- 7,482,565 14,525,734 22,008,299 21,992,008
2018
Annual Report
BERHAD
DRB-HICOM
(Continued)
Total Carrying
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2017
Assets
Investment securities: held-to-maturity - 150,663 - 150,663 142,168
Financing of customers - 8,509,050 5,142,939 13,651,989 14,711,816
354
- 8,659,713 5,142,939 13,802,652 14,853,984
Liabilities
Hire purchase and finance lease liabilities - 22,204 - 22,204 22,204
Long term loans (fixed rate) - 385,471 - 385,471 385,471
Long term loans under Islamic financing (fixed rate) - 2,395,764 - 2,395,764 2,395,839
Bank borrowings (non-current) - 2,803,439 - 2,803,439 2,803,514
Deposits from customers - 2,559,148 16,838,626 19,397,774 19,397,894
Deposits and placements of banks and other
financial institutions - 551,884 9,403 561,287 561,654
Bills and acceptances payable - - 9,196 9,196 9,196
- 5,914,471 16,857,225 22,771,696 22,772,258
2018
Annual Report
BERHAD
DRB-HICOM
(Continued)
Total Carrying
RM’000 RM’000 RM’000 RM’000 RM’000
Company
2018
Liabilities
Bank borrowings (non-current) - long term loans
under Islamic financing (fixed rate) - 1,039,702 - 1,039,702 1,039,702
355
2017
Liabilities
Bank borrowings (non-current) - long term loans
under Islamic financing (fixed rate) - 1,420,781 - 1,420,781 1,420,856
2018
Annual Report
BERHAD 2018
(c) Determination of fair value
(i) Assets and liabilities that are not carried at fair value and whose carrying
amounts are reasonable approximation of fair value
The following are classes of financial instruments that are not carried at fair
value and whose carrying amounts are reasonable approximation of fair
value:
Note
Banking related assets - statutory deposit with Bank Negara
Malaysia 26
Trade and other receivables (current) 29
Bank borrowings (non-current - floating rate) 38
Banking related liabilities - deposits from customers 42
Trade and other payables (current) 44
Bank borrowings (current) 45
The carrying amounts of these financial assets and liabilities are reasonably
approximate fair value, either due to their short-term nature or that they are
floating rate instruments that are re-priced to market interest rates on or near
the reporting date.
(ii) Amounts due from subsidiary companies, loans to/from subsidiary

companies, finance lease obligations and fixed rate bank loans
The fair values of these financial instruments are estimated by discounting

the expected future cash flows at market incremental lending rate for similar
types of lending, borrowing or leasing arrangements at the reporting date.
(iii) Derivatives
Currency forward foreign exchange contracts, currency swaps foreign

exchange contracts, Islamic profit rate swap and capped cross currency
interest rate swap are valued using a valuation technique with market
observable inputs. The most frequently applied valuation techniques include
forward pricing models, using present value calculations. The models
incorporate various inputs including the credit quality of counterparties,
foreign exchange spot and forward rate curves.
(iv) Banking related assets - financing of customers
The fair values of financing of customers are estimated based on the

expected future cash flows of contractual instalment payments, discounted
at applicable and prevailing rates at the reporting date offered for similar
facilities to new customers with similar credit profiles. In respect of non-
performing financing, the fair values are deemed to approximate the carrying
values, which are net of individual assessment allowance for bad and
doubtful financing.
356
BERHAD 2018
(c) Determination of fair value (Continued)
(v) Investment properties
Fair value of investment properties have been generally derived using the
investment method and market comparison approach. The inputs used for
the determination of fair value of investment properties are categorised as
Level 3.
Investment method entails the capitalisation of the net rent from a property at
a suitable rate of return. Net rent is the balance sum after deducting service
charge, property tax and a reasonable percentage for vacancy from the
gross rent. The significant unobservable inputs are market rental rate,
outgoings, vacancy rate, term yield and reversionary yield.
For market comparison method, the principal assumptions underlying these

valuations are those relating to rentals, market yields, maintenance
requirements and capitalisation rates and current prices of similar properties
or property prices in less active markets adjusted accordingly. Independent
professional valuations are obtained for these estimates. The significant
unobservable inputs are location, accessibility, size, shape, tenurial interest
and restriction (if any) and other relevant characteristics. An
increase/decrease in the adjustments for unobservable inputs will
decrease/increase the loss/profit after tax of the Group and of the Company
respectively.
(vi) Investment securities: available-for-sale
Fair value for quoted equity shares in Malaysia is determined based on the
quoted (unadjusted) market prices in active markets for identical
instruments.
Fair value for unquoted private debt securities and Malaysian government
investment certificates are determined based on the Bond Pricing Agency
Malaysia bid prices adjusted by the accretion of discount or amortisation of
premium.
Fair value for unquoted equity shares in Malaysia and defaulted foreign
Islamic corporate sukuk are generally determined using the discounted cash
flow method, which approximates to the fair value. The inputs used for the
determination of fair value are categorised as Level 3. An increase/decrease
in the adjustments for unobservable inputs will decrease/increase the
loss/profit after tax of the Group.
(vii) Investment securities: financial assets at fair value through profit or loss
Fair value of investment in private equity funds have been generally derived
using the net asset value approach. The Group determined that the
reported net asset value represents the fair value as at reporting date. The
inputs used for the determination of fair value are categorised as Level 3. An
increase/decrease in the adjustments for unobservable inputs will
decrease/increase the loss/profit after tax of the Group.
357
BERHAD 2018
60 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group and the Company are exposed to financial risks arising from their operations and
the use of financial instruments. The key financial risks include credit risk, liquidity risk, interest
rate risk, foreign exchange currency risk and market price risk. The Board of Directors reviews
and sets policies and procedures for the management of these risks. The Risk Committee in
accordance with the Group’s Enterprise Risk Management framework provides independent
oversight to the effectiveness of the risk management process.
It is, and has been throughout the current and previous financial year, the Group’s policy that
no derivatives shall be undertaken except for the use as hedging where appropriate and cost-
efficient. The Group and the Company do not apply hedge accounting.
The following sections provide details regarding the Group’s and the Company’s exposure to
the above-mentioned financial risks and the objectives, policies and processes for the
management of these risks.
(a) Credit risk
Credit risk is the potential loss arising from customers or counterparties failing to meet
their financial contractual obligations. The Group seeks to control credit risk by
ensuring its customers or counterparties have sound financial standing and credit
history. The Group has no significant concentration of credit risk due to its diverse
customer base and the maximum exposure to credit risk is represented by the carrying
amount of financial instruments.
(b) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in
meeting financial obligations due to shortage of funds. The Group’s and the
Company’s exposure to liquidity risk arises primarily from mismatches of the maturities
of financial assets and liabilities. The Group’s and the Company’s objective is to
maintain a balance between continuity of funding and flexibility through the use of
stand-by credit facilities.
The table below summarises the maturity profile of the Group’s and the Company’s
liabilities at the reporting date based on contractual undiscounted repayment
obligations.
On
demand or
within 1 1 to 5 Over 5
year years years Total
RM’000 RM’000 RM’000 RM’000
Group
2018
Bills and acceptances
payable 9,618 - - 9,618
Deposits from
customers 18,778,061 657,727 - 19,435,788
Sub-total carried
forward 18,787,679 657,727 - 19,445,406
358
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60 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)
(b) Liquidity risk (Continued)
obligations. (Continued)
On
demand or
RM’000 RM’000 RM’000 RM’000
Group
2018
Sub-total brought
forward 18,787,679 657,727 - 19,445,406
Deposits and
placements of
banks and other
financial institutions 8,854 - - 8,854
Recourse obligation
on financing sold to
Cagamas - 572,243 - 572,243
Banking related
liabilities 18,796,533 1,229,970 - 20,026,503
Bank borrowings 2,486,347 3,255,217 586,224 6,327,788
Derivative liabilities 88,860 - - 88,860
Trade and other
payables 5,402,012 - - 5,402,012
Total undiscounted
financial liabilities 26,773,752 4,485,187 586,224 31,845,163
2017 (Restated)
Bills and acceptances
payable 9,196 - - 9,196
Deposits from
customers 18,979,279 458,439 - 19,437,718
Deposits and
placements of
banks and other
financial institutions 561,654 - - 561,654
Banking related
liabilities 19,550,129 458,439 - 20,008,568
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(b) Liquidity risk (Continued)
obligations. (Continued)
On
demand or
RM’000 RM’000 RM’000 RM’000
Group
2017 (Restated)
(Continued)
Bank borrowings 2,453,374 4,361,904 128,242 6,943,520
Derivative liabilities 64,864 - - 64,864
Trade and other
payables 6,420,740 - - 6,420,740
Total undiscounted
financial liabilities 28,489,107 4,820,343 128,242 33,437,692
Company
2018
Trade and other
payables 659,714 306,632 - 966,346
Bank borrowings 786,728 1,178,063 - 1,964,791
Total undiscounted
financial liabilities 1,446,442 1,484,695 - 2,931,137
2017
Trade and other
payables 1,607,412 - - 1,607,412
Bank borrowings 332,796 1,703,994 - 2,036,790
Total undiscounted
financial liabilities 1,940,208 1,703,994 - 3,644,202
360
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(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and
the Company’s financial instruments will fluctuate because of changes in market
interest rates.
The Group’s and the Company’s exposure to interest rate risk arises primarily from
their loans and borrowings at floating rates. The Group’s policy is to manage interest
cost using a mix of fixed and floating rate debts.
The following table demonstrates the sensitivity of the Group’s and of the Company’s
profit/(loss) after tax to a reasonably possible change in 50 basis points to interest
rate, with all other variables held constant.
Profit/(loss) after tax

Basis Group Company
points
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
Bank borrowings - +50 (8,375) (10,433) (684) (345)

floating rates -50 8,375 10,433 684 345
The assumed movement in basis points for interest rate sensitivity analysis is based
on the currently observable market environment.
(d) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in foreign exchange rates. The Group is
exposed to currency risk as a result of the foreign currency transactions entered into in
currencies other than its functional currency. Foreign exchange exposures in
transactional currencies other than its functional currency of the operating entities are
kept to an acceptable level. Material foreign currencies transaction exposures are
hedged, mainly with forward foreign exchange contracts.
(e) Market price risk
Market price risk is the risk that the fair value of future cash flows of the Group’s
financial instruments will fluctuate because of changes in market prices (other than
interest or exchange rates).
The Group is exposed to equity price risks mainly arising from quoted shares held by
the Group. Quoted shares are mainly listed on Bursa Malaysia Securities Berhad.
These instruments are classified as financial assets designated at fair value through
profit or loss and available-for-sale.
At the end of the reporting date, if the quoted shares on Bursa Malaysia had been 10%
higher or lower, with all other variables held constant, the Group’s profit after tax would
have been approximately RM8,366,000 higher/lower (2017: RM10,228,000
lower/higher), arising as a result of an increase/decrease in the fair values of the
quoted shares.
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61 CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to ensure that it maintains a
strong credit rating and healthy capital ratios in order to support its business and maximise
shareholders’ value. The Group manages its capital structure and makes adjustments to it, in
light of changes in economic conditions.
The Group monitors capital using gearing ratio, which is total interest bearing debts divided by
total equity. Total debts are equivalent to total bank borrowings (including current and non-
current borrowings) as shown in the consolidated statement of financial position. The Group’s
policy is to keep the gearing ratio at an acceptable level.
2018 2017
(Restated)
Group
Short term borrowings excluding deferred liability 45 2,319,821 2,188,368
Total bank borrowings 5,785,112 6,293,775
Total equity 10,285,872 10,254,313
Gross gearing (times) 0.56 0.61
Company
Short term borrowings 45 711,928 245,631
Total bank borrowings 1,790,807 1,784,019
Total equity 5,416,002 6,714,129
Gross gearing (times) 0.33 0.27
362
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DRB-HICOM
62 CATEGORIES OF FINANCIAL INSTRUMENTS
The table below provides an analysis of financial instruments categorised as follows:
(i) Fair value through profit or loss (“FVTPL”);

(ii) Loans and receivables (“L&R”);
(iii) Held-to-maturity (“HTM”);
(iv) Available-for-sale financial assets (“AFS”); and
(v) Other liabilities (“OL”).
Carrying
amount FVTPL L&R HTM AFS
Note RM’000 RM’000 RM’000 RM’000 RM’000
Group
363
Financial assets
2018
Investment securities 23 6,670,206 161,566 - 143,730 6,364,910
Trade and other receivables (excluding amounts
due from customers on contracts, accrued
billings, prepayments and advances to suppliers
included in other receivables) 29 3,162,847 - 3,162,847 - -
- Cash and short-term funds 32 1,587,681 - 1,587,681 - -
- Financing of customers 25 14,517,972 - 14,517,972 - -
- Statutory deposit with Bank Negara Malaysia 26 674,500 - 674,500 - -
Short term deposits 30 1,127,871 - 1,127,871 - -
Cash and bank balances 31 1,706,157 - 1,706,157 - -
Derivative assets 33 72,968 72,968 - - -
2018
Annual Report
BERHAD
DRB-HICOM
62 CATEGORIES OF FINANCIAL INSTRUMENTS (Continued)
Carrying
amount FVTPL L&R HTM AFS
Note RM’000 RM’000 RM’000 RM’000 RM’000
Group
Financial assets
2017
Investment securities 23 6,517,120 197,383 - 142,168 6,177,569
Trade and other receivables (excluding amounts
due from customers on contracts, accrued
billings, prepayments and advances to suppliers
364
included in other receivables) 29 2,870,452 - 2,870,452 - -
- Cash and short-term funds 32 1,049,925 - 1,049,925 - -
- Financing of customers 25 14,711,816 - 14,711,816 - -
- Statutory deposit with Bank Negara Malaysia 26 698,636 - 698,636 - -
Short term deposits 30 1,332,531 - 1,332,531 - -
Cash and bank balances 31 1,544,331 - 1,544,331 - -
Derivative assets 33 61,494 61,494 - - -
2018
Annual Report
BERHAD 2018
Carrying
amount FVTPL OL
Group
Financial liabilities
2018
Trade and other payables
(exclude progress billings
and amounts due to
customers on contracts) 44 5,273,373 - 5,273,373
Bank borrowings (excluding
deferred liability) 38 & 45 5,785,112 - 5,785,112
- Deposits from customers 42 19,395,282 - 19,395,282
- Deposits and placements
of banks and other
financial institutions 46 8,854 - 8,854
- Bills and acceptances
payable 47 9,618 - 9,618
Recourse obligation on
financing sold to Cagamas 43 485,851 - 485,851
Derivative liabilities 33 88,860 88,860 -
2017 (Restated)
Trade and other payables
(exclude progress billings
and amounts due to
customers on contracts) 44 6,299,962 - 6,299,962
Bank borrowings (excluding
deferred liability) 38 & 45 6,293,775 - 6,293,775
- Deposits from customers 42 19,397,894 - 19,397,894
- Deposits and placements
of banks and other
financial institutions 46 561,654 - 561,654
- Bills and acceptances
payable 47 9,196 - 9,196
Derivative liabilities 33 64,864 64,864 -
365
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Carrying
amount L&R OL
Company
Financial assets
2018
Trade and other receivables
(excluding prepayments) 29 729,067 729,067 -
Short term deposits 30 574,915 574,915 -
Cash and bank balances 31 1,842 1,842 -
2017
Trade and other receivables
(excluding prepayments) 29 1,222,548 1,222,548 -
Short term deposits 30 223,771 223,771 -
Cash and bank balances 31 33,707 33,707 -
Financial liabilities
2018
Trade and other payables 44 919,264 - 919,264
Bank borrowings 38 & 45 1,790,807 - 1,790,807
2017
Trade and other payables 44 1,569,910 - 1,569,910
Bank borrowings 38 & 45 1,784,019 - 1,784,019
63 APPROVAL OF FINANCIAL STATEMENTS
The financial statements have been approved for issue in accordance with a resolution of the
Board of Directors on 10 July 2018.
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Statement by Directors
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016
We, Dato’ Mohammad Zainal bin Shaari and Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar, being
two of the Directors of DRB-HICOM Berhad, state that, in the opinion of the Directors, the financial
statements set out on pages 169 to 366 are drawn up so as to give a true and fair view of the
financial position of the Group and of the Company as at 31 March 2018 and of their financial
performance and the cash flows of the Group and of the Company for the financial year ended in
accordance with the provisions of the Companies Act 2016 and Financial Reporting Standards in
Malaysia.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 10 July 2018.
DATO’ MOHAMMAD ZAINAL BIN SHAARI

Chairman
DATO’ SRI SYED FAISAL ALBAR BIN SYED A.R. ALBAR

Group Managing Director
Statutory Declaration
PURSUANT TO SECTION 251(1)(b) OF THE COMPANIES ACT 2016
I, Amalanathan Thomas, the officer primarily responsible for the financial management of DRB-HICOM
Berhad, do solemnly and sincerely declare that the financial statements set out on pages 169 to 366
are, in my opinion, correct and I make this solemn declaration conscienti ously believing the same to
be true, and by virtue of the provisions of the Statutory Declarations Act 1960.
AMALANATHAN THOMAS
(MIA Membership No. 36375)
Subscribed and solemnly declared by the abovenamed Amalanathan Thomas at Shah Alam in
Malaysia on 10 July 2018.
Before me,
Commissioner for Oaths
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Independent
Auditors’ Report
TO THE MEMBERS OF DRB-HICOM BERHAD
Report on the audit of the financial statements
Opinion
We have audited the financial statements of DRB-HICOM Berhad, which comprise the statements of
financial position as at 31 March 2018 of the Group and of the Company, and the statements of
comprehensive income, statements of changes in equity and statements of cash flows of the Group
and of the Company for the year then ended, and a summary of significant accounting policies and
other explanatory notes, as set out on pages 169
8 toto205.
366.
In our opinion, the accompanying financial statements give a true and fair view of the financial
position of the Group and of the Company as at 31 March 2018, and of their financial performance
and their cash flows for the year then ended in accordance with Financial Reporting Standards and
the requirements of the Companies Act 2016 in Malaysia.
Basis for opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing. Our responsibilities under those standards are further described
in the Auditors’ responsibilities for the audit of the financial statements section of our report. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Independence and other ethical responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on
Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and
the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants
(“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws
and the IESBA Code.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the Group and of the Company for the year ended 31 March
2018. These matters were addressed in the context of our audit of the financial statements of the
Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
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Independent auditors’ report to the members of

DRB-HICOM Berhad (Continued)
Key audit matters (Continued)
We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the
financial statements section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial statements. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis of our audit opinion on the
accompanying financial statements.
1. Purchase price allocations (“PPA”) in relation to the acquisition of Pos Malaysia

Berhad group (“Pos Malaysia”)
(Refer to Note 2.14, Note 2.17, Note 2.18, Note 13, Note 21 and Note 52 to the financial
statements)
The Group had on 13 September 2016 completed the acquisition of additional 21.29% equity
interest in Pos Malaysia. Following the acquisition of additional equity interest, Pos Malaysia
became a subsidiary of the Group. In accordance with FRS 3 Business Combinations, the
Group was provided a measurement period of not exceeding one year from the acquisition
date, to obtain the information necessary to identify and measure all of the various
components of the business combination as of the acquisition date.
During the measurement period from 13 September 2016 to 13 September 2017, the Group
retrospectively adjusted the provisional amounts recognised in respect of all identifiable
assets and liabilities at the acquisition date to reflect new information obtained about facts and
circumstances at the acquisition date that, if known, would have affected the measurement of
the amounts recognised. Adjustments to provisional amounts that were made during the
measurement period were recognised as if the accounting for the business combination had
been completed at the acquisition date (i.e 13 September 2016). Accordingly, certain
comparative figures were adjusted, as disclosed in Note 52(i)(d). Due to (i) the significance of
the adjustments made to property, plant, equipment, intangible assets and the resultant effect
on the goodwill, as well as (ii) the subjective nature of the valuation, we consider the
adjustments made to provisional amounts to be an area of audit focus.
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1. Purchase price allocations (“PPA”) in relation to the acquisition of Pos Malaysia

Berhad group (“Pos Malaysia”) (Continued)
In addressing this area of audit focus, we performed amongst others, the following
procedures:
• We considered the objectivity, independence and expertise of the firms of independent

valuers engaged by the Group to estimate the fair value of the property, plant and
equipment;
• We obtained an understanding of the methodology adopted by the independent valuers in
estimating the fair value of the property, plant and equipment and assessed whether such
methodology is consistent with those used in the industry;
• We had discussions with the independent valuers to obtain an understanding of the
property related data used as input to the valuation models;
• We also assessed whether the adjustment factors applied to the market data in arriving at
fair values of the assets were within a range commonly accepted by the industry.
• We involved our internal valuation experts to:
(i) obtain an understanding of the methodology adopted by Directors in estimating the
cash flows to be derived from the intangible assets and assessed whether such
methodology is consistent with those used in the industry.
(ii) evaluate the management’s assumption on the income to be derived from the use of
intangible asset; and
(iii) assess whether the discount rate used to determine the present value of the cash
flows reflects the return that investors would require if they were to choose an
investment that would generate cash flows of amounts, timing and risk profile
equivalent to those that the entity expects to derive.
370
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2. Impairment testing of non-current assets of an automotive subsidiary
(Refer to Note 2.22, Note 13, Note 21 and Note 57 to the financial statements)
As at 31 March 2018, the carrying amounts of the property, plant and equipment, and
intangible assets of an automotive subsidiary amounted to RM1,026,321,000 and
RM672,095,000 respectively.
The continued loss reported by the automotive company indicated that the carrying amount of
the property, plant and equipment and intangible assets may be impaired. Accordingly, the
Group performed an impairment test of these property, plant and equipment and intangible
assets by estimating the recoverable amount using Value-in-Use (“VIU”). Estimating the VIU
involves estimating the future cash inflows and outflows that will be derived from these assets
and discounting them at an appropriate rate.
The estimation of VIU is significant to our audit as it involves complex and subjective
management judgement and is based on assumptions that are affected by expected future
market and economic conditions. The most critical assumptions are management’s view on
revenue growth, gross profit margin, terminal growth rate and discount rate.
In addressing this area of audit focus, we performed amongst others, the following
procedures:
• We obtained an understanding of the relevant internal controls over estimating the VIU;
• We evaluated the management’s assumptions on revenue growth rate, gross profit
margin and terminal growth rate by comparing to the historical trends; and
• We assessed whether the discount rate used to determine the present value of the cash
flows reflects the return that investors would require if they were to choose an investment
that would generate cash flows of amounts, timing and risk profile equivalent to those
that the entity expects to derive.
210
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3. Impairment of Banking related assets – financing of customers
(Refer to Note 2.9, Note 25 and Note 57 to the financial statements)
As at 31 March 2018, the Banking related assets – financing of customers of RM14,517,972,000

accounted for approximately 33.60% of the total assets of the Group. The impairment assessment of
these assets is performed by the management using models developed internally and involves
significant judgements and estimates. Due to the significance of these assets and the uncertainty
inherent in estimates made, we considered this to be an area of audit focus.
Our audit procedures included the following:
• We assessed the internal controls over the approval, recording and monitoring of Banking
related assets – financing of customers, and evaluated the methodologies, inputs and
assumptions used by the Group in calculating collective impairment allowance and individual
impairment allowance.
• For collective impairment assessment, we compared key assumptions used by the Group
(such as loss rates, loss identification periods and the observation period) to the historical
data and to externally available industry, financial and economic data.
• For individual impairment assessment, we assessed the assumptions applied by the Group
in estimating the expected future cash flows from the customers, including the estimated
realisable values of collateral based on available market information.
• We assessed whether the disclosures in the financial statements appropriately reflect the
Group’s exposure to credit risk.
211
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4. Provision for liabilities and charges
As of 31 March 2018, the provisions for warranty and provision for claims from suppliers of the Group
amounted to RM154,099,000 and RM283,669,000 respectively.
A provision by its nature is more uncertain than most other items in the statement of financial
position. The estimates of the outcome and financial effects are determined by the judgement of the
management, supplemented by experience from similar transactions. The evidence considered will
also include any additional evidence provided by events after the reporting period. Accordingly, we
consider this area to be an area of audit focus.
(a) Provision for warranty
In addressing this area of audit focus:
• We obtained an understanding of the relevant internal controls of the Group over the
estimation of provisions for warranty;
• We read the terms of the sales contracts to determine the Group’s obligations for the
provision of warranty for vehicles sold; and
• We assessed whether the assumptions on which the provision for warranty are based are
consistent with historical trends and adjusted to take into consideration any relevant changes
which arose during the current year.
(b) Provision for claims from suppliers
In addressing this area of audit focus:
• We obtained an understanding of the relevant internal controls of the Group over the
estimation of provisions for claims from suppliers;
• We discussed with the management to obtain an understanding of the future vehicle
production plans and the estimated purchases of vehicle parts;
• We compared such plans to available supporting evidences such as historical sales data and
economic outlook;
212
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4. Provision for liabilities and charges (Continued)
(b) Provision for claims from suppliers (Continued)
In addressing this area of audit focus: (Continued)
• We assessed whether the assumptions applied in estimating the provision for claims from
suppliers were consistent with the management’s future vehicle production plans and the
estimated purchases of vehicle parts;
• We reviewed the arithmetical accuracy of management’s computation on the provision for
claims from suppliers.
5. Investment in an automotive subsidiary
As at 31 March 2018, the carrying amount of the Company’s investment in an automotive subsidiary
before impairment was RM2,959,127,000.
The history of continued losses reported by the Company’s automotive subsidiary, indicated that the
carrying amount of the Company’s cost of investment in the automotive subsidiary may be impaired.
Accordingly, the management of the Company performed an impairment test on its investment. The
aforementioned impairment review gave rise to an impairment loss of investment in an automotive
subsidiary of RM2,193,197,000 for the year ended 31 March 2018.
The management estimated the recoverable amount of the investment in an automotive subsidiary
based on VIU. Estimating the VIU involves estimating the future cash inflows and outflows that will
be derived from these assets and discounting them at an appropriate rate.
The estimation of VIU is significant to our audit as it involves complex and subjective management
judgement and is based on assumptions that are affected by expected future market and economic
conditions. The most critical assumptions are management’s view on revenue growth, gross profit
margin, terminal growth rate and discount rate.
213
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5. Investment in an automotive subsidiary (Continued)
In addressing this area of audit focus, we performed amongst others, the following procedures:
• We obtained an understanding of the relevant internal controls over estimating the VIU;
• We evaluated the management’s assumptions on revenue growth rate, gross profit margin and
terminal growth rate by comparing to the historical trends; and
• We assessed whether the discount rate used to determine the present value of the cash flows
reflects the return that investors would require if they were to choose an investment that would
generate cash flows of amounts, timing and risk profile equivalent to those that the entity
expects to derive.
Information other than the financial statements and auditors’ report thereon
The directors of the Company are responsible for the other information. The other information comprises the
information included in the annual report, but does not include the financial statements of the Group and of
the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements of
the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of directors for the financial statements
The directors of the Company are responsible for the preparation of financial statements of the Group and of
the Company that give a true and fair view in accordance with Financial Reporting Standards and the
requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such internal
control as directors determine is necessary to enable the preparation of financial statements of the Group
and of the Company that are free from material misstatement, whether due to fraud or error.
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Responsibilities of directors for the financial statements (Continued)
In preparing the financial statements of the Group and of the Company, the directors are responsible for
assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless directors either
intend to liquidate the Group or the Company to cease operations, or have no realistic alternative but to do
so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and
of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the
Company, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
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Auditors’ responsibilities for the audit of the financial statements (Continued)
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors’ report to the related disclosures in the financial statements of the Group and of the Company or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause
the Group or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of
the Company, including the disclosures, and whether the financial statements of the Group and of the
Company represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial statements of the Group. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial statements of the Group and of the Company for the current year and
are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
216
377
BERHAD 2018
(203430-W)

Report on other legal and regulatory requirements
In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries
of which we have not acted as auditors, are disclosed in Note 3 to the financial statements.
Other matters
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the
Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other
person for the content of this report.
Ernst & Young Sundralingam A/L Navaratnam

AF: 0039 No. 02984/05/2020 J
Chartered Accountants Chartered Accountant
Kuala Lumpur, Malaysia

10 July 2018
217
378
BERHAD 2018
This page has been intentionally left blank.
379
BERHAD 2018
Analysis of
Shareholdings as at 29 June 2018
Class of Securities : Ordinary share
Issued and Fully Paid-Up Share Capital : RM1,933,237,051 comprising 1,933,237,051 ordinary shares
Voting Rights : One (1) vote per ordinary share, on a poll voting
Number of Shareholders : 40,553
DISTRIBUTION OF SHAREHOLDINGS
Number of % of Number of % of
Size of Shareholdings Shareholders Shareholders Shares Held Issued Shares
1 - 99 694 1.71 12,599 0.00*
100 - 1,000 17,512 43.18 12,624,885 0.65
1,001 - 10,000 18,186 44.85 72,522,772 3.75
10,001 - 100,000 3,668 9.04 110,904,006 5.74
100,001 - 96,661,851 490 1.21 349,376,322 18.07

(Less than 5% of issued shares)
96,661,852 and Above 3 0.01 1,387,796,467 71.79

(5% and above of issued shares)
Total 40,553 100.00 1,933,237,051 100.00

Note:
* Less than 0.01%
TOP THIRTY SECURITIES ACCOUNT HOLDERS

(Based on the Record of Depositors without aggregating the securities from different securities accounts belonging to
the same Depositor)
Number of % of
No. Name Shares Held Issued Shares
1. Etika Strategi Sdn. Bhd. 1,081,061,741 55.92
2. Citigroup Nominees (Tempatan) Sdn. Bhd. 166,683,726 8.62

Employees Provident Fund Board
3. Lembaga Tabung Haji 140,051,000 7.24
4. Kumpulan Wang Persaraan (Diperbadankan) 23,934,500 1.24
5. Citigroup Nominees (Asing) Sdn. Bhd. 14,985,400 0.78

Exempt an for Citibank New York (Norges Bank 14)
6. HSBC Nominees (Asing) Sdn. Bhd. 13,044,500 0.67

JPMCB NA for Vanguard Emerging Markets Stock Index Fund
380
BERHAD 2018
Number of % of
7. CIMB Group Nominees (Tempatan) Sdn. Bhd. 11,987,900 0.62

CIMB Bank Berhad (EDP 2)

JPMCB NA for Vanguard Total International Stock Index Fund
9. Tai Tak Estates Sdn. Bhd. 10,952,653 0.57

CBNY for Emerging Market Core Equity Portfolio DFA
Investment Dimensions Group Inc

CBNY for Dimensional Emerging Markets Value Fund
12. Cartaban Nominees (Tempatan) Sdn. Bhd. 7,511,900 0.39

PAMB for Prulink Equity Fund
13. Citaria Sdn. Bhd. 7,324,572 0.38
14. Amsec Nominees (Tempatan) Sdn. Bhd. 6,340,000 0.33

MTrustee Berhad for CIMB Islamic Dali Equity
Growth Fund (UT-CIMB-DALI)

CBNY for DFA Emerging Markets Small Cap Series
16. Cartaban Nominees (Asing) Sdn. Bhd. 5,920,300 0.31

Exempt an for State Street Bank & Trust Company (West CLT OD67)

Employees Provident Fund Board (CIMB PRIN)

PBTB for Takafulink Dana Ekuiti

PAMB for Prulink Dana Unggul

BBH and Co Boston for first Trust Emerging
Markets Small Capalphadex Fund
21. Amsec Nominees (Tempatan) Sdn. Bhd. 4,273,400 0.22

Ambank (M) Berhad (Hedging)
22. Cartaban Nominees (Asing) Sdn. Bhd. 3,701,000 0.19

SSBT Fund PPES for PIMCO Equity Series : PIMCO Rae
Fundamental Emerging Markets Fund

UBS AG
381
BERHAD 2018
Number of % of

Employees Provident Fund Board (AMUNDI)
25. DB (Malaysia) Nominee (Tempatan) Sdn. Bhd. 2,970,100 0.15

Deutsche Trustees Malaysia Berhad for Eastspring
Investmentssmall-Cap Fund
26. CIMB Group Nominees (Asing) Sdn. Bhd. 2,877,500 0.15

Exempt an for DBS Bank Ltd (SFS)

Merrill Lynch International
28. UOB Kay Hian Nominees (Asing) Sdn. Bhd. 2,323,400 0.12
Exempt an for UOB Kay Hian Pte Ltd (A/C Clients)

Kumpulan Wang Persaraan (Diperbadankan) (CIMB Equities)
30. CIMSEC Nominees (Asing) Sdn. Bhd. 2,029,800 0.10

CIMB for TS Law Investments Limited (PB)
SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDINGS

(Based on the Register of Substantial Shareholders)
Direct Interest Indirect Interest
Number of % of Issued Number of % of Issued Total % of

Name Shares Held Shares Shares Held Shares Issued Shares
Etika Strategi Sdn. Bhd. 1,081,061,741 55.92 - - 55.92
Employees Provident Fund Board 176,478,826 9.13 - - 9.13
Lembaga Tabung Haji 141,178,400 7.30 - - 7.30
Tan Sri Dato’ Seri Syed Mokhtar Shah - - 1,081,061,741 55.92 55.92
bin Syed Nor (N1)
Note:
(N1)
Deemed interest by virtue of his interest in Etika Strategi Sdn. Bhd. pursuant to Section 8 of the Companies Act 2016.
382
BERHAD 2018
DIRECTORS’ SHAREHOLDINGS IN THE COMPANY AND ITS RELATED CORPORATIONS

(Based on the Register of Directors’ Shareholdings)
None of the Director of the Company has any interest in shares in the Company or its related corporations.
SENIOR MANAGEMENT’S SHAREHOLDINGS IN THE COMPANY AND ITS RELATED CORPORATIONS

(Based on the Record of Depositors)
Direct Interest Indirect Interest
Number of % of Issued Number of % of Issued

Interest in the Company Shares Held Shares Shares Held Shares
Amalanathan Thomas 37,000 0.00* - -
Note:
* Less than 0.01%
Save as disclosed above, none of the other Senior Management of the Company has any interest in shares in the
Company or its related corporations.
383
BERHAD 2018
Share Performance
Chart DRB-HICOM Share Price
From April 2017 to
March 2018
Volume (Million) Price (RM)
500 3.0
2.8
450
2.6
400 2.4
2.2
350
2.0
300 1.8
1.6
250
1.4
200 1.2
1.0
150
0.8
100 0.6
0.4
50
0.2
Apr’17 May’17 Jun’17 Jul’17 Aug’17 Sep’17 Oct’17 Nov’17 Dec’17 Jan’18 Feb’18 Mar’18
Volume Month High Month Low
DATE VOLUME HIGH LOW

Apr’17 133,286,200 1.45 1.31
May’17 407,692,900 1.86 1.37
Jun’17 163,914,400 1.82 1.57
Jul’17 81,651,900 1.80 1.63

Aug’17 74,962,400 1.71 1.52
Sep’17 38,645,300 1.70 1.58
Oct’17 70,159,000 1.77 1.63

Nov’17 39,862,900 1.82 1.70
Dec’17 80,628,300 1.85 1.70
Jan’18 439,847,900 2.75 1.83

Feb’18 206,597,400 2.72 2.41
Mar’18 121,137,900 2.57 2.28
High and low values are in RM
384
BERHAD 2018
Material Properties of
DRB-HICOM Group as at
31 March 2018
Group
Net book
Approximate value as at
age of Approx. 31 March 2018
No. Location Description/existing use building Tenure area RM’000
1. HS(D) B.P. 5653 and 5654 Automobile plant, 15 years Freehold 5,150,600 471,146
Bil PT 16162 and 10163 administrative building and sq.m
Mukim of Ulu Bernam Timur sports complex facilities. (Land)
District of Batang Padang
Perak Darul Ridzuan
2. Lots No. 39617, 39619 and 46970 Main office, main factory, engine 21-33 years Freehold 816,100 442,651
Mukim of Damansara factory, medium volume factory, sq.m
District of Petaling canteen buildings, sports facilities, (Land)
Selangor Darul Ehsan additional R&D laboratories
building, car park for production
cars and staff and semi-high speed
test track.
3. PTD 176399 to 176523, Land held for residential and - Freehold 2,083,996 412,284
176536 to 177094, 177101, commercial development. sq.m
177108, 177109, 177114, 177115, (Land)
177127, 177137, 177138,
and 177638
Mukim Tebrau
Daerah Johor Bahru
Johor Darul Ta’zim
4. HS(D) 4546, PT 13225 and University college campus and 6 years Leasehold 262,290 216,128
HS(D) 4609, PT 2743 hostel. 99 years sq.m
Daerah Pekan, Mukim Pekan expiring in (Land)
Pahang Darul Makmur years 2109
and 2112
5. Lots No. 63004 (PT 772), 63108 Hotel, golf course and club house. 24-25 years Freehold 1,489,836 180,625
(PT 1828 & 1829) 63109 (PT 465), sq.m
63110 (PT 466), 63111 (PT 467) (Land)
and 63112 (PT 468)
Town of Glenmarie, Mukim
Damansara
District of Petaling
Selangor Darul Ehsan
6. Lot No. 77170 and individual titles Land held for residential and - Freehold 601,404 152,068
from master titles commercial development. sq.m
(Lots No. 77174 and 77175) (Land)
Mukim and District of Klang
Selangor Darul Ehsan
385
BERHAD 2018
Group
Net book
Approximate value as at
age of Approx. 31 March 2018
No. Location Description/existing use building Tenure area RM’000
7. HS(D) 63928, PT 5689 and Industrial land with office and 22 years Freehold 650,360 145,412
HS(D) 63929, PT 5690 building. sq.m
Mukim Gurun (Land)
Daerah Kuala Muda
Kedah Darul Aman
8. Lots 348 (HSD 17814), Land held for future development. - Freehold 809,371 135,351
350 (HSD 17815) and sq.m
351 (HSD 17817) (Land)
Bandar Kota Perdana
Mukim Bukit Kayu Hitam
Daerah Kubang Pasu, Kedah
9. PT 14730, PT 16880, PT 20503, Land held for mixed development. 22 years Freehold 4,858,935 133,467
Lot 16729 to 16731, Lot 16733, and sq.m
Lot 16736 to 16745, Lot 16899, leasehold (Land)
Lot 16901 to 16908,
Lot 16910 to 16930, Lot 16969,
Lot 17117, Lot 17162,
Lot 17322, Lot 17330 to 17335,
Lot 17338 to 17340,
Lot 17342 to 17346, Lot 17349 to
17350, Lot 17369, Lot 17371,
Lot 17375 to 17381, Lot 17384 to
17388, Lot 17989 to 17990, 17992,
Lot 17994 to 17995,
Lot 17998 to 18002, Lot 18005 to
18007, Lot 18012,
Lot 31758 to Lot 31761, Lot 31815 to
31826, Lot 32223 to 32337,
Lot 32354 to 32450, Lot 32461 to
32462, Lot 32469 to 32487,
Lot 32617, Lot 32651 to 32820 and
Lot 33336 to 33337
Mukim Ulu Bernam Timur
Daerah Batang Padang
10. Lot 61812, Office, factory, canteen buildings 20 years Freehold 95,443 113,989
Bandar Glenmarie, District of Petaling, and sports facilities used for the sq.m
Selangor Darul Ehsan Casting Plant. (Land)
386
FORM OF PROXY
ANNUAL GENERAL MEETING
DRB-HICOM BERHAD
(Company No.: 203430-W)
Number of Shares held
CDS Account No. - -
I/We,____________________________________________________________ NRIC/Company No. ____________________________________________

(FULL NAME AS PER NRIC/CERTIFICATE OF INCORPORATION IN BLOCK LETTERS)
(Tel No: ___________________________ ) of ________________________________________________________________________________________

(FULL ADDRESS)
being a member/members of DRB-HICOM Berhad, hereby appoint the following:
Name of Proxy NRIC/Passport No. Proportion of Shareholdings (%)
and/or failing him/her
or failing him/her, the Chairman of the Meeting, as my/our proxy to attend and vote for me/us on my/our behalf at the 28th Annual General
Meeting (“28th AGM”) of the Company to be held at Glenmarie Ballroom, Holiday Inn Kuala Lumpur Glenmarie (Tel: +603-7803 1000), No. 1, Jalan
Usahawan U1/8, Seksyen U1, 40250 Shah Alam, Selangor Darul Ehsan on Thursday, 30 August 2018 at 9.00 a.m. and at any adjournment thereof.
My/our proxy is to vote on the resolutions as indicated by an “X” in the appropriate spaces below. If this form is returned without any indication
as to how the proxy shall vote, the proxy shall vote or abstain as he/she thinks fit.
No Ordinary Resolution For Against
1 Declaration of a single tier first and final dividend
2 Re-election of Dato’ Sri Syed Faisal Albar bin Syed A.R. Albar as Director
3 Re-election of Dato’ Siti Fatimah binti Daud as Director
4 Re-election of Dato’ Mohammad Zainal bin Shaari as Director
5 Re-election of Tee Beng Thong as Director
6 Re-election of Sharifah Sofia binti Syed Mokhtar Shah as Director

7 Approval of Directors’ fees from the conclusion of the 28 th Annual General
Meeting (“AGM”) until the next AGM
8 Approval of Directors’ benefits (excluding Directors’ fees) from the conclusion of

the 28 th AGM until the next AGM
9 Re-appointment of Messrs Ernst & Young as Auditors
10 Retention of Datuk Ooi Teik Huat as Senior Independent Non-Executive Director
Dated this _________ day of _____________, 2018.
…….........................…………………………………………..
Signature(s) of shareholder(s) or
Common Seal of corporate shareholder
NOTES:
(a) A member entitled to attend the meeting may appoint not more than two (2) (f) A proxy appointed to attend and vote at the meeting shall have the same rights
proxies who may but need not be a member of the Company. as the member to speak at the meeting. The lodging of a form of proxy does
not preclude a member from attending and voting in person at the meeting
(b) Where a member of the Company is an authorised nominee, as defined under should the member subsequently decide to do so.
the Securities Industry (Central Depositories) Act 1991, it may appoint not more
than two (2) proxies in respect of each securities account it holds to which (g) The instrument appointing a proxy together with the power of attorney or other
ordinary shares in the Company are credited. authority, if any, under which it is signed or a certified copy thereof, shall
be deposited at the office of the Share Registrar, Symphony Share Registrars
(c) For an exempt authorised nominee which holds ordinary shares in the Company Sdn. Bhd., Level 6, Symphony House, Pusat Dagangan Dana 1, Jalan PJU
for multiple beneficial owners in one (1) securities account (omnibus account), 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan (Tel: +603-7849 0777)
there is no limit to the number of proxies which the exempt authorised nominee not less than forty-eight (48) hours before the time set for holding this meeting
may appoint in respect of each omnibus account it holds. or adjourned meeting, or in the case of a poll, not less than twenty-four (24)
hours before the time appointed for the taking of a poll, and in default the
(d) The instrument appointing a proxy shall be in writing under the hand of the instrument of proxy shall not be treated as valid.
appointor or his attorney duly authorised in writing or, if the appointor is a
corporation, either under its common seal or under the hand of an officer (h) For purpose of determining a member who shall be entitled to the 28th
or attorney duly authorised in writing. AGM, the Company shall be requesting Bursa Malaysia Depository Sdn. Bhd. to
issue a General Meeting Record of Depositors as at 24 August 2018. Only a
(e) Where a member/an authorised nominee/an exempt authorised nominee depositor whose name appears therein shall be entitled to attend the said
appoints proxies, the proportion of shareholdings to be represented by meeting or appoint a proxy(ies) to attend and vote on such depositor’s behalf.
each proxy must be specified in the instrument appointing the proxies. If
the form of proxy is returned without an indication as to how the proxy
shall vote on any particular matter, the proxy may exercise his/her
discretion as to whether to vote on such matter and if so, how.
Then fold here

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
STAMP
Symphony Share Registrars Sdn Bhd (378993-D)

Registrar for DRB-HICOM Berhad
Level 6, Symphony House
Pusat Dagangan Dana 1, Jalan PJU 1A/46
47301 Petaling Jaya, Selangor Darul Ehsan
Malaysia
1st fold here

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DRB-HICOM Berhad (203430-W)
Level 5, Wisma DRB-HICOM
No. 2, Jalan Usahawan U1/8, Seksyen U1,
40150 Shah Alam, Selangor Darul Ehsan,
Malaysia
Tel: +603 2052 8000 Fax: +603 2052 8099
www.drb-hicom.com

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Contents

Directors’ Report 162

Statements of Comprehensive Income 169

Consolidated Statement of Financial Position 171

Company Statement of Financial Position 173

Consolidated Statement of Changes in Equity 174

Company Statement of Changes in Equity 178

Statements of Cash Flows 179

Notes to the Financial Statements 186

Statement by Directors 367

Statutory Declaration 367

Independent Auditors’ Report 368

Net profit/(loss) for the financial year 295,306 (1,199,529)

RESERVES AND PROVISIONS

DIRECTORS’ REPORT (Continued)

DIRECTORS OF THE COMPANY

Dato’ Mohammad Zainal bin Shaari (Chairman) (Appointed on 13 April 2018)

Number of ordinary shares

DIRECTORS’ REPORT (Continued)

DIRECTORS OF THE SUBSIDIARY COMPANIES

DIRECTORS’ REPORT (Continued)

DIRECTORS OF THE SUBSIDIARY COMPANIES (Continued)

Fakihah binti Azahari Martin Erdmann Schuler

DIRECTORS’ REPORT (Continued)

DIRECTORS OF THE SUBSIDIARY COMPANIES (Continued)

Dato’ Syed Mohamad bin Syed Murtaza (Resigned on 6 April 2017)

STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS

DIRECTORS’ REPORT (Continued)

STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS (Continued)

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

DIRECTORS’ REPORT (Continued)

The auditors’ remuneration are disclosed in Note 6 to the financial statements.

DATO’ MOHAMMAD ZAINAL BIN SHAARI

DATO’ SRI SYED FAISAL ALBAR BIN SYED A.R. ALBAR

Revenue 4 12,789,677 12,058,334 1,069,412 897,315

Other comprehensive income/(loss)

Sub-total carried forward (842) (3,614) - -

STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH

Other comprehensive income/(loss)

Total comprehensive income/(loss)

Net profit/(loss) for the financial

Total comprehensive income/(loss)

Basic and diluted earnings/(loss)

TOTAL ASSETS 43,195,433 44,044,826

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018 (Continued)

TOTAL EQUITY AND LIABILITIES 43,195,433 44,044,826

EQUITY AND LIABILITIES

TOTAL EQUITY AND LIABILITIES 8,142,123 10,070,825

Non-distributable Distributable Equity

At 31 March 2018 1,740,302 - 2,318,321 305,353 4,363,976 1,052,026 5,416,002

At 31 March 2017 1,740,302 - 2,318,321 1,603,667 5,662,290 1,051,839 6,714,129

Statements of Cash Flows

CASH FLOWS FROM OPERATING

Sub-total brought forward 2,278,071 992,257 1,073,434 880,847

Cash inflow/(outflow) before working

CASH FLOWS FROM OPERATING

Amounts due from customers on

Acquisitions of investment securities

NET INCREASE IN CASH AND

CASH AND CASH EQUIVALENTS

(a) Cash and cash equivalents at

Sub-total carried forward 4,412,647 3,920,276 576,757 257,478

3,772,300 3,022,965 576,198 256,936