Financial Performance and Position Highlights

04
IMPROVING EFFICIENCIES,
UPHOLDING INTEGRITY
Our drive for high-performance is a
04
cumulation of our WINNING mindset in all
that we do. Our values-driven leadership
continues to be the impetus for us to
go beyond to meet the ever-evolving
expectations of the industry and our
stakeholders.
FINANCIAL
STATEMENTS
Directors’ Report 82
Statement by Directors 86
Statutory Declaration 86
Independent Auditors’ Report 87
Statement of Comprehensive Income 92
Statement of Financial Position 93
Statement of Changes in Equity 95
Statement of Cash Flows 98
Notes to the Financial Statements 100
DAMANSARA REALTY BERHAD
ANNUAL REPORT 2019
Directors’ Report
The Directors are pleased to submit this report together with the audited financial statements of the Group and of the Company for the financial
year ended 31 December 2019.
Principal Activities
The principal activities of the Company are investment holding and project management.
The principal activities of the subsidiaries are described in Note 18 to the financial statements.
There has been no significant change in the nature of the principal activities during the financial year.
Results
Group Company
RM’000 RM’000
Profit for the year 22,794 1,538
Profit attributable to:

Owners of the parent 23,078 1,538
Non-controlling interests (284) -
22,794 1,538
There was no material transfer to or from reserves or provisions during the financial year other than as disclosed in the financial statements.
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially
affected by any item, transaction or event of a material and unusual nature except as disclosed in the notes to the financial statements.
Reserves and Provision

There there was no material transfer or from reserves or provisions during the financial year except as disclosed in the financial statements.
Dividends
No dividends have been paid or declared since the end of the previous year. The directors do not recommend dividend to be paid in respect of the
current financial year.
Bonus Issues of Warrants

The Warrants are listed on the Main Market of Bursa Malaysia Securities Berhad with effect from 8 November 2017. Each Warrant carried the right
to subscribe for 1 bonus issue of warrants for 2 shares of RM0.58 each in the Company at any time from 4 October 2017 up to the expiry date on
4 December 2020, at an exercise price of RM0.58 for each new share. Any warrant not exercised by the expiry of the exercise period will lapse and
cease to be valid for all purposes.
No warrants were issued and exercised during the financial year.
Share and Debentures

The Group and the Company did not issue any shares or debentures during the year.
Share Options
No option have been granted by the Company to any parties during the financial year to take up unissued shares of the Company.
No shares have been issued during the financial year by virtue of the excersice of any option to take up unissued shares of the Company. As of the
end of the financial year, there were no unissued shares of the Company under options.
82
FINANCIAL Directors’ Report Statement by Directors Statutory Declaration
STATEMENTS
Directors’ Report (cont’d)
Directors
The names of the directors of the Company in office since the date of the last report and at the date of this report are:
Dato’ Ahmad Zahri bin Jamil (Chairman)

Dato’ Mohd Aisom bin Omar
Haji Abdullah bin Md Yusof
Shahrizam bin A Shukor
Vinie Chong Pui Ling
Ts. Brian Iskandar bin Zulkarim (Resigned on 18 March 2020)
Azhari bin Abdul Hamid (Ceased on 6 May 2020)
Directors’ Interest
According to the register of directors’ shareholding under section 59 of the Companies Act, 2016, the interests of directors in office at the end of
the year in the ordinary shares of the Company and its related corporations during the financial year are as follows:
Number of ordinary shares
Name of director 01.01.2019 Acquired Sold 31.12.2019
Direct Interest in the Company:
Dato’ Ahmad Zahri bin Jamil 20,000 - - 20,000

None of the other directors in the office at the end of the financial year have interest in shares of the Company or its related corporations during
the year.
Directors’ Remunerations
The details of the directors’ remuneration paid or payable to the directors of the Group and of the Company during the financial year are disclosed
in Note 11 to the financial statements.
Indemnifying Directors, Officers or Auditors

The directors and officers of the Group and of the Company are covered by Directors and Officers liability insurance for any liability incurred in the
discharge of their duties, provided that they have not acted fraudulently or dishonestly or derived any personal profit or advantage. The insurance
is maintained on the group basis by the Company and the premium incurred during the financial year amounted to RM52,000.
No indemnities have been given or insurance premium paid for auditor of the Company.
Directors’ Benefits
During and at the end of the financial year, no arrangements subsisted to which the Company is a party, 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 of the Company has received or become entitled to receive a benefit 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.
83
ANNUAL REPORT 2019
Other Statutory Information

Before the financial statements of the Group and of the Company were prepared, the directors took reasonable steps:
(a) to ascertain that proper action had been taken in relation to the writing-off of bad debts and the making of allowance for doubtful debts and
satisfied themselves that there were no known bad debts and that adequate allowance had been made for impairment losses on receivables;
and

(b) to ensure that any current assets which were unlikely to be realised at their book values in the ordinary course of business including the value
of current assets as shown in the accounting records of the Group and of the Company have been written down to an amount which the
current assets might be expected so to realise.
As of the date of this report, the directors are not aware of any circumstances:
(a) that would require the writing-off of bad debts or the amount of the allowance for doubtful debts inadequate to any substantial extent in the
financial statements of the Group and of the Company; or

(b) which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; or

(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; or

(d) not otherwise dealt with in this report or financial statements which would render any amount stated in the financial statements of the Group
and of the Company misleading.
As of 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 liabilities 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.
No contingent or other liability has become enforceable, or is likely to become enforceable within the period of twelve months after the end of
the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group and of the Company to meet its
obligations as and when they fall due.
In the opinion of the directors:

(a) the results of the operations of the Group and of the Company during the year were not substantially affected by any item, transaction or event
of a material and unusual nature; and

(b) except as disclosed in Note 37 to the financial statements, there has not arisen in the interval between the end of the financial year and the
date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of
the Group and of the Company for the financial year in which this report is made.
Holding Company
The Company is a subsidiary of Seaview Holdings Sdn. Bhd., a company incorporated in Malaysia.
84
FINANCIAL Directors’ Report Statement by Directors Statutory Declaration
STATEMENTS
Auditors’ Remunerations
Total amounts paid to or receivable by the auditors as remunerations for their services as auditors are as follows:
Group Company
2019 2019
RM’000 RM’000
Statutory audit 384 67

Auditors

The auditors, Messrs. Jamal, Amin & Partners, Chartered Accountants, have indicated their willingness to accept reappointment in accordance with
Section 267(4) of the Companies Act, 2016.

Signed on behalf of the Board of Directors in accordance with a resolution of the directors dated 13 May 2020.
Dato’ Ahmad Zahri bin Jamil Haji Abdullah bin Md Yusof
Kuala Lumpur
13 May 2020
85
ANNUAL REPORT 2019
Statement by Directors
Pursuant to Section 251 (2) of the Companies Act, 2016
We, Dato’ Ahmad Zahri bin Jamil and Haji Abdullah bin Md Yusof, being two of the directors of Damansara Realty Berhad, do hereby state that, in
the opinion of the directors, the accompanying financial statements set out on pages 92 to 162 are drawn up in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia so as to give a true
and fair view of the financial position of the Group and of the Company as at 31 December 2019 and of their financial performance and cash flows
for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 13 May 2020.
Dato’ Ahmad Zahri bin Jamil Haji Abdullah bin Md Yusof

Kuala Lumpur
Statutory Declaration
Pursuant to Section 251 (1) of the Companies Act, 2016
I, Zain Azrai bin Zainuddin, being the officer primarily responsible for the financial management of Damansara Realty Berhad, do solemnly and
sincerely declare that the accompanying financial statements set out on pages 92 to 162 are in my opinion correct, and I make this solemn
declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the

abovenamed, Zain Azrai bin Zainuddin
at Kuala Lumpur in the Federal Territory
on 13 May 2020. Zain Azrai bin Zainuddin
(MIA: 15691)
Before me,
86
FINANCIAL Statement by Statutory Declaration Independent
STATEMENTS Directors Auditors’ Report
Independent Auditors’ Report

to the Members of Damansara Realty Berhad
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Damansara Realty Berhad, which comprise the statements of financial position as at
31 December 2019 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 notes to the financial statements, including a summary of significant
accounting policies, as set out on pages 92 to 162.
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
December 2019, and of their financial performance and their cash flows for the year then ended in accordance with Malaysian Financial Reporting
Standards, International 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 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 current year. 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.
87
ANNUAL REPORT 2019

to the Members of Damansara Realty Berhad (cont’d)
Key Audit Matters How our Audit Addressed the KAM
1. Revenue Recognition
(Note 4 to the financial statements)
The Group has four major operating segments which comprise of Our audit procedures included, among others:
the following:
• Reviewed the method and basis used by the Group to recognise
(i) Holding Company; revenue.
(ii) Integrated Facility Management (IFM);
(iii) Property and Land Development (PLD); and • E valuated the application of methods and reasonableness of the
(iv) Project Management Consultancy (PMC). basis used by management to recognise the revenue;
The core principle of MFRS 15 is whereby an entity recognises • P erformed test on the completeness of the data used by
revenue to depict the transfer of promised good or services to management; and
customers in an amount that reflects the consideration to which • ssessed the reasonableness of the percentage of completion
A
entity expects to be entitled in exchange for those goods or for the work performed by agreeing to supporting documents i.e,
services. An entity recognises revenue in accordance with that sales and purchase agreements, agreements and progress reports
core principle by applying the following steps:- with acknowledgement of acceptance by the customers et cetera.
(i) Identify the contract(s) with a customer;
(ii) Identify the performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations
in the contract; and
(v) Recognise revenue when (or as) the entity satisfies a
performance obligation.
2. Valuation of Assets
a. Trade and other receivables Our audit procedures included, among others:
• We tested the accuracy of trade receivables ageing;
The Group’s exposure to credit risk arises principally from its
receivables from customers. • We assessed the recoverability of receivables by checking past
payment trend and assessing the receipts during the year and
The MFRS 9 financial instrument Financial Instruments became subsequent to year end collections. We also considered receivables
effective on 1 January 2018 for the Group. MFRS 9 requires where there is evidence that the credit quality of the debtor is
the Group to change accounting policies to account for financial considered a risk;
instruments. New judgments have been applied to classify
financial assets and to measure impairment loss using the • We evaluated the reasonableness of key judgments and estimates
expected credit loss model. The adoption of MFRS 9 and according to MFRS 9, including selection and application of
recoverability of trade receivables is a key audit matter as methods, assumptions and data in making the estimates; and
the recoverability and the level of impairment loss of trade • e assessed the completeness, accuracy and appropriateness of
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receivables involved the Group’s judgement based upon the disclosures in the financial statements as required by MFRS 9.
debtors’ credit risk evaluation, historical payment trends,
subsequent to year end collections. These factors could have
a material impact on the level of impairment loss determined
by the Group.
88
FINANCIAL Independent Statements of Statements of
STATEMENTS Auditors’ Report Comprehensive Income Financial Position

Key Audit Matters (cont’d)
Key Audit Matters How our Audit Addressed the KAM
2. Valuation of Assets (cont’d)
b. Net realisable value of completed property units Our audit procedures included, among others:
• ssessed the development progress of the project by reviewing
A
As at 31 December 2019, the carrying amount of the project schedules;
completed property units of the Group, which are stated
at the lower of cost and net realisable value, amounted to • e tested management’s assessment of net realisable value by
W
RM88 million and represented 21% of the Group’s total comparing it to recent transacted prices of similar or comparable
current assets. Management applies significant judgement in completed property units and taking into consideration the
determining the net realisable value of the completed property estimated selling costs and current market sentiments; and
units based on recent sales transactions of similar properties • We also physically sighted to the individual significant completed
or comparable properties in similar or nearby locations net of property units, focusing on long-aged property units, to ascertain
estimated cost necessary to complete the sale. if any writedown was warranted due to physical obsolescence and
deterioration of the units.
3. Right of Use
Right of use asset is defined as an asset that represent a lessee’s Our audit procedures included, among others:
right to use an underlying asset for the lease term.
• Obtained and verified leasing listings received from managements
Underlying asset is an asset that is the subject of a lease, for which of the Group to leases contracts;
the right to use that asset has been provided by a lessor to a
lessee. • E valuated the application of the method used by the Group’s
managements and the reasonableness of the basis used
Lease is contract, or part of a contract, that conveys the right to use by managements to compute right of use, lease liabilities,
an asset (the underlying asset) for a period of time in exchange for amortisation expenses and interest expenses;
consideration.
• eassess the Group’s leases assessments by reperformance of the
R
The Group has substantial number of leases which falls under the lease assessments in accordance to MFRS 16; and
governing standard of MFRS 16 which has come into effect from
1 January 2019. • Review components auditors’ workings on the leasing assessments.
The new MFRS 16 introduces a single accounting model and

requires a lessee to recognise assets and liabilities for the rights
and obligations arising from all leases and hence eliminates the
distinction between finance leases and operating leases.
The new standard supersedes the previous governing standard

(MFRS 117 Leases) where under the old standard, lessees and
lessors are required to classify their leases as either finance leases
or operating leases and account for those two types of leases
differently. MFRS 117 requires a lessee to recognise assets and
liabilities arising from finance leases but not from operating leases.
The measurement of right to use the assets and lease liabilities

requires the application of significant judgement and increased
complexity which includes the identification and recognition of off
balance sheet items into on balance sheet items.
89
ANNUAL REPORT 2019

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 Director’s Report but does not include
the financial statements 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 of the Group and of the Company, 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 these other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of the 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 Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the
Companies Act, 2016 in Malaysia. The directors are also responsible for such internal control as the 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.
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 the directors either intend to liquidate the Group or the Company or 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 standard on auditing in Malaysia and International
Standard on Auditing will always detect a material misstatement when it exist. 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 of 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.
• onclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained,
C
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 disclosure 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 company to cease to continue as a going concern.
90

Auditors’ Responsibilities for the Audit of the Financial Statements (cont’d)
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: (cont’d)
• E valuate 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.
• btain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
O
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 fo 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 circumtances, 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.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 2016 in Malaysia, we also report the following:
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which
we have acted as auditors have been properly kept in accordance with the provisions of the Act.
(b) We have considered the accounts and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated
in Note 18 to the financial statements, being accounts that have been included in the consolidated accounts.
(c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial statements of the Company are
in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received
satisfactory information and explanations required by us for those purposes.
(d) Our audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment required to be made under
Section 266(3) of the Act.
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.
Jamal, Amin & Partners Ahmad Hilmy bin Johari

AF: 1067 No. 2977/03/22( J)
Chartered Accountants Chartered Accountants
Kuala Lumpur, Malaysia
13 May 2020
91
ANNUAL REPORT 2019
Statements of Comprehensive Income

For the Financial Year Ended 31 December 2019
Group Company

Note 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Revenue 4 293,459 304,125 10,339 13,288
Cost of sales (223,872) (222,668) - -
Gross profit 69,587 81,457 10,339 13,288

Other items of income:
Interest income 5 394 290 13 26
Dividend income from subsidiaries 6 - - - 680
Other income 7 10,208 7,951 7,711 20,262
Other items of expense:
Depreciation (3,015) (2,164) (571) (115)
Finance costs 8 (2,683) (1,252) (122) (55)
Employee benefits expense 9 (33,222) (33,753) (11,240) (10,426)
Other expenses (27,177) (26,413) (4,528) (5,848)
Share of profit of associate company 11,500 - - -
Profit before tax 10 25,592 26,116 1,602 17,812

Income tax expense 12 (2,798) (6,575) (64) (133)
Profit for the year 22,794 19,541 1,538 17,679
Other comprehensive income/(loss), net of tax

Foreign currency translation
differences for foreign operations 2,233 (41) - -
Total comprehensive income for the year 25,027 19,500 1,538 17,679
Profit attributable to:

Owners of the parent 23,078 19,120 1,538 17,679
Non-controlling interests (284) 421 - -
22,794 19,541 1,538 17,679
Total comprehensive profit attributable to:

Owners of the parent 25,311 19,079 1,538 17,679
Non-controlling interests (284) 421 - -
25,027 19,500 1,538 17,679
Group
2019 2018
Basic profit per share attributable to owners of the parent (sen per share)
For the year (Note 13) 7.25 6.01
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
92
Statements of Financial Position

As at 31 December 2019
Group Company

Note 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Assets

Non-current assets
Property, plant and equipment 14 19,934 22,717 401 472
Rights-of-use assets 15 82,507 - 1,680 -
Inventories 16 62,446 60,755 - -
Investment properties 17 70,462 89,141 1,419 1,455
Investment in subsidiaries 18 - - 29,336 27,116
Investment in associates 19 11,500 - - -
Deferred tax assets 20 594 3,324 - -
Other investments 21 217 51 217 51
Goodwill on consolidation 22 888 888 - -
248,548 176,876 33,053 29,094
Current assets

Inventories 16 26,446 23,096 - -
Trade and other receivables 23 105,147 105,162 88,230 90,811
Other current assets 24 12,612 707 290 148
Cash and cash equivalents 25 30,714 27,120 3,022 222

174,919 156,085 91,542 91,181

Total assets 423,467 332,961 124,595 120,275

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ANNUAL REPORT 2019
Statements of Financial Position

As at 31 December 2019 (cont’d)
Group Company

Note 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Equity and liabilities
Current liabilities
Loans and borrowings 26 7,937 9,555 2,036 3,198
Lease liabilities 30,456 - 827 -
Trade and other payables 27 127,974 139,473 52,792 50,559
166,367 149,028 55,655 53,757
Net current assets 8,552 7,057 35,887 37,424
Non-current liabilities
Loans and borrowings 26 5,626 7,364 22 42
Lease liabilities 56,489 - 903 -
Deferred tax liabilities 20 1,635 1,740 65 64
63,750 9,104 990 106
Total liabilities 230,117 158,132 56,645 53,863
Net assets 193,350 174,829 67,950 66,412
Equity attributable to owners of the parent

Share capital 28 159,341 159,341 159,341 159,341
Merger deficit 28 (18,568) (18,568) - -
Retained earnings 10,880 (10,370) (91,391) (92,929)
Exchange reserve 28 (4,117) (1,884) - -
Revaluation reserve 28 41,603 41,603 - -
Capital reserve 28 (156) 56 - -
188,983 170,178 67,950 66,412

Non-controlling interests 4,367 4,651 - -
Total equity 193,350 174,829 67,950 66,412
Total equity and liabilities 423,467 332,961 124,595 120,275

94

|------------------------------------------------------Attributable to owners of the parent------------------------------------------------------|
|------------------------------------------------Non-distributable------------------------------------------------|

Accumulated Non-
Share Capital Merger Revaluation Exchange (losses)/ controlling Equity
capital reserve deficit reserve reserve profit Total interests Total
(Note 28) (Note 28) (Note 28) (Note 28) (Note 28)
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2019
At 1 January 2019,
as previously reported 159,341 56 (18,568) 41,603 (1,884) (10,370) 170,178 4,651 174,829
Adjustment on initial application

of MFRS 16, net of tax - - - - - (4,061) (4,061) - (4,061)
At 1 January 2019, restated 159,341 56 (18,568) 41,603 (1,884) (14,431) 166,117 4,651 170,768
Disposal of subsidiaries - (212) - - - - (212) - (212)
Total comprehensive (loss)/income - - - - (2,233) 25,311 23,078 (284) 22,794
At 31 December 2019 159,341 (156) (18,568) 41,603 (4,117) 10,880 188,983 4,367 193,350
FINANCIAL
STATEMENTS
Statements of
Financial Position
in Equity
Statement of Changes
Flows
Statement of Changes in Equity - Group
Statement of Cash
95

|---------------------------------------------------------- Attributable to owners of the parent ---------------------------------------------------------------|
96
|----------------------------------------------------------- Non-distributable -------------------------------------------------------|

Redeemable Non-
Share Capital Merger Convertible Revaluation Exchange Accumulated controlling Equity
capital reserve deficit Notes (“RCN”) reserve reserve (losses)/ Total interests Total
(Note 28) (Note 28) (Note 28) (Note 29) (Note 28) (Note 28) profit
ANNUAL REPORT 2019
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2018
At 1 January 2018 155,341 85 (18,568) 316 41,603 (1,925) (29,449) 147,403 8,316 155,719
Conversion of RCN 4,000 - - - - - - 4,000 - 4,000

Termination of RCN - (29) - (316) - - - (345) - (345)
Disposal of subsidiary - - - - - - - - (3,966) (3,966)
Total comprehensive
(loss)/income - - - - - 41 19,079 19,120 421 19,541
For the Financial Year Ended 31 December 2019 (cont’d)
Dividends to
non-controlling
interests - - - - - - - - (120) (120)
At 31 December 2018 159,341 56 (18,568) - 41,603 (1,884) (10,370) 170,178 4,651 174,829
Statement of Changes in Equity - Group
FINANCIAL Statement of Statement of Cash Notes to the
STATEMENTS Changes in Equity Flows Financial Statements
Statement of Changes in Equity -

Company
Non-distributable
Redeemable
Convertible
Share Notes Accumulated Equity
capital (“RCN”) losses Total
RM’000 RM’000 RM’000 RM’000
2019
At 1 January 2019 159,341 - (92,929) 66,412
Total comprehensive income - - 1,538 1,538
At 31 December 2019 159,341 - (91,391) 67,950
2018
At 1 January 2018 155,341 316 (110,608) 45,049
Conversion of RCN 4,000 (316) - 3,684
Total comprehensive income - - 17,679 17,679
At 31 December 2018 159,341 - (92,929) 66,412
97
ANNUAL REPORT 2019
Statement of Cash Flows

For the Year Ended 31 December 2019
Group Company

Note 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Cash flow from operating activities
Profit before tax 25,592 26,116 1,602 17,812
Adjustments for:
Interest income (338) (290) (13) (26)
Interest expense 2,683 1,252 122 55
Reversal of impairment of other receivables (27) (13) (1,190) (891)
Depreciation of property, plant and equipment 6,816 5,559 72 79
Depreciation of investment properties 36 36 36 36
Impairment loss on property, plant and equipment - 266 - -
Gain on disposal of property, plant and equipment - (98) - -
Gain on disposal of subsidiaries - (1,944) - (9,322)
Operating profit/(loss) before working capital changes 34,762 30,884 629 7,743

Changes in working capital:-
Decrease property development cost - 98 - -
(Increase)/Decrease in inventories (216) (4,523) - -
(Increase)/Decrease in trade and other receivables (10,734) (14,089) (2,113) 1,670
Increase/(Decrease) trade and other payables (12,124) 8,649 1,267 (1,453)
Increase amount due from subsidiary companies - - (60) (13,312)
Increase amount due to subsidiary companies - - 3,102 3,801
Cash generated from/(used in) operations 11,688 21,019 2,825 (1,551)
Taxes paid (3,109) (2,055) - -

Taxes refunded 1,297 66 - -
Interest paid (930) (1,252) (37) (55)
Interest received 338 290 13 26
Net cash generated from/(used in) operating activities 9,284 18,068 2,801 (1,580)
98
FINANCIAL Statement of Statement of Cash Notes to the
STATEMENTS Changes in Equity Flows Financial Statements
Statement of Cash Flows

For the Year Ended 31 December 2019 (cont’d)
Group Company

Note 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Cash flow from investing activities

Purchase of property, plant and equipment (959) (4,358) (1) (27)
Net cash outflows from disposal of subsidiaries - (2,822) - -
Proceed from disposal of property, plant and equipment - 100 - -
Net cash (used in)/generated from investing activities (959) (7,080) (1) (27)
Cash flow from financing activities

Proceeds from issuance of RCN - 5,000 - 5,000
Payment for redemption RCN - (4,025) - (4,025)
Drawdown of loan - 212 - 59
Drawdown of lease - 785 - -
Repayment of loan (3,139) (2,889) - -
Repayment of lease (1,820) (3,621) - -
Net cash (used in)/generated from financing activities (4,959) (4,538) - 1,034
Net increase/(decrease) of cash and cash equivalents 3,366 6,450 2,800 (573)
Cash and cash equivalents at beginning of year 21,733 15,283 222 795
Cash and cash equivalents at end of year 25 25,099 21,733 3,022 222

99
ANNUAL REPORT 2019
Notes to the Financial Statements

1. Corporate Information
Damansara Realty Berhad (“the Company”), a public limited liability company incorporated and domiciled in Malaysia is listed on the Main
Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business is located at Lot 10.3, Level 10, Wisma Chase
Perdana, Off Jalan Semantan, Damansara Heights, 50490, Kuala Lumpur.

The consolidated financial statements of the Company as at and for the financial year ended 31 December 2019 comprise the Company and
its subsidiaries (together referred to as the “Group” and individually referred to as “Group entities”) and the Group’s interests in associates
and joint venture. The finanacial statements of the Company as at and for the financial year ended 31 December 2019 also include joint
operations.

The principal activities of the Company are investment holding and project management. The principal activities of the subsidiaries are
described in Note 18.

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

These financial statements were authorised for issue by the Board on 13 May 2020.
2. Summary of Significant Accounting Policies

2.1 Basis of Preparation

The financial statements have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRSs”), International
Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act, 2016 in Malaysia.

The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below.
The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand (RM’000) except
when otherwise indicated.
2.2 Statement of Compliance

Application of New MFRSs, IC Interpretations and Amendments to MFRSs

During the financial year, the Group and the Company have applied the following new MFRSs, IC Interpretations and amendments to
MFRSs issued by the Malaysian Accounting Standard Board (“MASB”) which are effective from the beginning of the current financial
year:-
MFRS 16, Leases

Amendments to MFRS 9 – Prepayment features with negative compensation
Amendments to MFRS 119 – Plan amendment, curtailment or settlement
Amendments to MFRS 128 – Long-term interests in associates and joint ventures
Amendments to MFRSs classified as “Annual Improvements to MFRS Standards 2015 - 2017 Cycle:
(i) Amendments to MFRS 3, Business combinations and MFRS 11, Joint arrangements – Previously held interest in a joint operation
(ii) Amendments to MFRS 112, Income taxes – Income tax consequences of payments on financial instruments classified as equity
(iii) Amendments to MFRS 123, Borrowing costs – Borrowing costs eligible for capitalisation
IC Interpretation 23, Uncertainty over income tax treatments
100
FINANCIAL Notes to the Financial
STATEMENTS Statements

2. Summary of Significant Accounting Policies (cont’d)
2.2 Statement of Compliance (cont’d)

Application of New MFRSs, IC Interpretations and Amendments to MFRSs (cont’d)
(a)
MFRS 16, Leases

MFRS 16 will supersede the existing MFRS 117 Leases, IC Interpretation 4 Determining whether an arrangement contains a lease, IC
Interpretation 115 Operating leases – Incentives and IC Interpretation 127 Evaluating the substance of transactions involving the legal
form of a lease and its sets out the principles for the recognition, measurement, presentation and disclosures of leases.

Under the existing MFRS 117, lessees and lessors are required to classify their leases as either finance leases or operating leases
and account for those two types of leases differently. It requires a lessee to recognise assets and liabilities arising from finance
leases but not from operating leases.

The new MFRS 16 introduces a single accounting model and requires a lessee to recognise assets and liabilities for the rights
and obligations arising from all leases and hence eliminates the distinction between finance leases and operating leases. As a
consequence, a lessee recognises right-of-use assets and lease liabilities arising from operating leases. The right-of-use asset is
depreciated in accordance with the principle in MFRS 116 Property, plant and equipment and these liability is accreted over time
with interest expense recognised in the profit or loss.
(b) Amendments to MFRS 9 – Prepayment Features with Negative Compensation
The amendments allow entities to measure prepayable financial assets with negative compensation at amortised cost or at fair
value through other comprehensive income if certain conditions are met.

(c) Amendments to MFRSs Classified as “Annual Improvements to MFRS Standards 2015 - 2017 Cycle”
The Annual Improvements to MFRS Standards 2015 – 2017 Cycle include amendments to the following MFRSs:-
(i) The amendments to MFRS 3 Business combinations clarify that when an entity obtains control of a business that is a joint
operation, it remeasures previously held interests in that business. The amendments to MFRS 11 Joint arrangements clarify
that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held
interests in that business.

(ii) The amendments to MFRS 112 Income taxes clarify that an entity recognises the income tax consequences of dividends are
linked more directly to past transactions than to distributions to owners, except if the tax arises from a transaction which is
a business combination or is recognised in other comprehensive income or directly in equity.
(iii) The amendments to MFRS 123 Borrowing costs clarify that when a qualifying asset is ready for its intended use or sale, an
entity treats any outstanding borrowing made specifically to obtain that qualifying asset as part of general borrowings.
(d) IC Interpretation 23, Uncertainty Over Income Tax Treatments

MFRS 112 Income taxes, includes requirements on recognition and measurement of tax assets and tax liabilities, but does not
specify how to reflect uncertainty. As a result, entities apply diverse reporting method when the application of tax law is uncertain.
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ANNUAL REPORT 2019

2.2 Statement of Compliance (cont’d)

Application of New MFRSs, IC Interpretations and Amendments to MFRSs (cont’d)
(d) IC Interpretation 23, Uncertainty Over Income Tax Treatments (cont’d)
When there is uncertainty over income tax treatments, the Interpretation addresses:-
(i) whether an entity considers uncertain tax treatment separately;

(ii) the assumptions an entity makes about the examination of tax treatments by taxation authority;
(iii) how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and
(iv) how an entity considers changes in facts and circumstances.

The initial application of the new MFRSs, IC Interpretations and amendments to MFRSs is not expected to have any significant
impact on the Group’s and the Company’s financial statements.
New MFRSs, IC Interpretations and Amendments to MFRSs that are in Issue but not yet Effective
The Company have not early adopted the following new MFRSs, IC Interpretations and amendments to MFRSs that have been issued by
the MASB but are not yet affective:-
The following are accounting standards, interpretations and amendments of the MFRSs that have been issued by the Malaysian
Accounting Standards Board (“MASB”) but have not been adopted by the Group and the Company;

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2020
• Amendments to MFRS 3, Business Combinations - Definition of a Business

• Amendments to MFRS 101, Presentation of Financial Statements and MFRS 108, Accounting Policies, Changes in Accounting Estimates
and Errors - Definition of Material
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2021
• MFRS 17, Insurance Contracts
MFRSs, Interpretations and amendments effective for annual periods beginning on or after a date yet to be confirmed
• Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures - Sale
or Contribution of Assets between an Investor and its Associate or Joint Venture
The Group and the Company plan to apply the abovementioned accounting standards, interpretations and amendments from the annual
period beginning on 1 January 2020 for those accounting standards, interpretations and amendments, that are effective for annual
periods beginning on or after 1 January 2020.

The Group and the Company do not plan to apply MFRS 17, Insurance Contracts that is effective for annual periods beginning on or after
1 January 2021 as it is not applicable to the Group and the Company.
The initial application of the accounting standards, interpretations or amendments are not expected to have any material financial
impacts to the current period and prior period financial statements of the Group and the Company.
102

2. Summary of Significant Accounting policies (cont’d)
2.3 Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date.
The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same
reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances.
The Group controls an investee if and only if the Group has all the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the following in assessing
whether or not the Company’s voting rights in an investee are sufficient to give it power over the investee:
(i) The size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
(ii) Potential voting rights held by the Company, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the
relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.
Subsidiaries are consolidated when the Company obtains control over the subsidiary and ceases when the Company loses control of the
subsidiary. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are
eliminated in full.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are
accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to
reflect the changes in their relative interests in the subsidiaries. The resulting difference is recognised directly in equity and attributed to
owners of the Company.
When the Group loses control of a subsidiary, a gain or loss calculated as the difference between (i) the aggregate of the fair value of
the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets and liabilities of
the subsidiary and any non-controlling interest, is recognised in profit or loss. The subsidiary’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 at the date control is lost is regarded as
the cost on initial recognition of the investment.
2.4 Business Combinations
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date.
The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same
reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated
in full.

103
ANNUAL REPORT 2019

2.4 Business Combinations (cont’d)
Business combinations involving entities under common control are accounted for by applying the merger accounting method. The
assets and liabilities of the combining entities are reflected at their carrying amounts reported in the consolidated financial statements of
the controlling holding company. Any differences between the consideration paid and the share capital of the acquired entity is reflected
within the equity merger (deficit)/reserve. The statement of comprehensive income reflects the results of the combining entities for the
full year, irrespective of when the combination takes place. Comparative are presented as if the entities had always been combined since
the date the entities had come under common control.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be
consolidated until the date that such control ceases.
2.5 Foreign Currency
(a) Functional and Presentation Currency
The individual financial statements of each entity in the Group 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
Ringgit Malaysia (RM), which is also the Company’s functional currency.
(b) Foreign Currency Transactions

Transactions in foreign currencies are measured in the respective functional currencies of the Company and its subsidiaries and are
recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.
Non-monetary items denominated in foreign currencies that are measured at historical costs 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 rates at the date when the 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 operation.
Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit and loss for
the period except for the differences arising on the translation of non-monetary items in respect of which gains and losses are
recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised directly in equity.
(c) Foreign Operations
The assets and liabilities of foreign operations are translated into RM at the rate of exchange ruling at the reporting date and
income and expenses are translated at exchange rates at the dates of the transactions. The exchange differences arising on
the translation are taken directly to other comprehensive income. On disposal of a foreign operation, the cumulative amount
recognised in other comprehensive income and accumulated in equity under foreign currency translation reserve relating to that
particular foreign operation is recognised in the profit and loss.
104

2.6 Property, Plant and Equipment
All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment is
recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably.
Subsequent to recognition, plant and equipment and furniture and fixtures are measured at cost less accumulated depreciation and
accumulated impairment losses. When significant parts of property, plant and equipment are required to be replaced in intervals,
the Group recognises such parts as individual assets with specific useful lives and depreciation, respectively. Likewise, when a major
inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.
Freehold land has an unlimited useful life and therefore is not depreciated. Depreciation is computed on a straight-line basis over the
estimated useful lives of the assets as follows:
Buildings 10 to 50 years
Plant and machinery 5 to 10 years
Site infrastructure and renovations 10 to 14 years
Office equipment, furniture and fittings 4 to 20 years
Motor vehicles 5 years
Medical equipment 10 years
Renovation 5 to 10 years
Plant and parking equipment 5 to 7 years
Machinery and tools 5 to 10 years

Capital work in progress included in plant and equipment are not depreciated as these assets are not yet available for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate
that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year end, and adjusted prospectively, if appropriate.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use
or disposal. Any gain or loss on derecognition of the asset is included in the profit or loss in the year the asset is derecognised.
2.7 Investment Properties
Investment properties are initially recorded at cost, including transaction costs. Subsequent to recognition, investment properties are
measured at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is computed on a straight-line basis over the estimated useful lives of the investment properties at 50 years. The carrying
values of investment properties are reviewed for impairment when events or changes in circumstances indicate that the carrying value
may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year end, and adjusted prospectively, if appropriate.
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ANNUAL REPORT 2019

2.7 Investment Properties (cont’d)
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently
withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an
investment property is recognised in profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a 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 2.6 up to the date of change in use.
2.8 Goodwill
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less accumulated impairment losses.

For the purpose of impairment testing, goodwill acquired is allocated, from the acquisition date, to each of the Group’s cash-generating
units that are expected to benefit from the synergies of the combination.
The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever there is an indication
that the cash-generating unit may be impaired, by comparing the carrying amount of the cash-generating unit, including the allocated
goodwill, with the recoverable amount of the cash-generating unit. Where the recoverable amount of the cash-generating unit is less
than the carrying amount, an impairment loss is recognised in the profit or loss. Impairment losses recognised for goodwill are not
reversed in subsequent periods.
Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating unit is disposed of, the
goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss
on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative fair values of the operations
disposed of and the portion of the cash-generating unit retained. Goodwill and fair value adjustments arose on acquisitions of foreign
operation before 1 January 2006 are deemed to be assets and liabilities of the company and are recorded in RM at the rates prevailing
at the date of acquisition.
2.9 Impairment of Non-Financial Assets
The carrying amounts of non-financial assets (other than inventories, contract assets, lease receivables, deferred tax assets, assets arising
from employee benefits, investment property that is measured at fair value and non-current assets or disposal groups held for sale) are
reviewed for impairment at the end of each reporting period to determine whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated to determine the amount of impairment loss. For goodwill recognised in
a business combination and that has an indefinite useful life and intangible assets that are not yet available for use, the recoverable
amount is estimated annually or more frequently when indicators of impairment are identified.
An impairment loss is recognised if the carrying amount of an asset or a cash generating unit (“CGU”) exceeds its recoverable amount. A
CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other
assets or group of assets. Impairment losses recognised in respect of CGUs (or groups of CGUs) are allocated first to reduce the carrying
amount of any goodwill arising from a business combination allocated to the units (or groups of units) and then to reduce the carrying
amount of the other assets in the units (or groups of units) on a pro rata basis.
The recoverable amount of an asset or CGU is the higher of its fair value less costs of disposal and its value in use. 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.
106

2.9 Impairment of Non-Financial Assets (cont’d)
An impairment loss is recognised in profit or loss in the period in which it arises, unless the asset is carried at a revalued amount in
which case the impairment loss is recognised in other comprehensive income to the extent that the impairment loss does not exceed
the amount in the revaluation reserve for that same asset.
Impairment loss on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill is reversed if,
and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. The carrying amount of an asset other than goodwill is increased to its revised recoverable amount, provided that this amount
does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss.
2.10
Subsidiaries

A subsidiary is an entity over which the Group has all the following:
(i) Power over the investee (i.e existing rights that give it the current ability to direct the relevant activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
In the Company’s separate financial statements, investments in subsidiaries are accounted for at cost less impairment losses. On disposal
of such investments, the difference between net disposal proceeds and their carrying amounts is included in profit or loss.
2.11 Investments in Associates and Joint Ventures
An associate is an entity in which the Group has significant influence. Significant influence is the power to participate in the financial and
operating policy decisions of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the
joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about
the relevant activities require the unanimous consent of the parties sharing control.
On acquisition of an investment in associate or joint venture, 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 investee 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 investee 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
associate’s or joint venture’s profit or loss for the period in which the investment is acquired.
An associate or a joint venture is equity accounted for from the date on which the investee becomes an associate or a joint venture.
Under the equity method, on initial recognition the investment in an associate or a joint venture is recognised at cost, and the carrying
amount is increased or decreased to recognise the Group’s share of the profit or loss and other comprehensive income of the associate or
joint venture after the date of acquisition. When the Group’s share of losses in an associate or a joint venture equal or exceeds its interest in
the associate or joint venture, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made
payments on behalf of the associate or joint venture.
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ANNUAL REPORT 2019

2.11 Investments in Associates and Joint Ventures (cont’d)
Profits and losses resulting from upstream and downstream transactions between the Group and its associate or joint venture are
recognised in the Group’s financial statements only to the extent of unrelated investors’ interests in the associate or joint venture.
Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The financial statements of the associates and joint ventures are prepared as of the same reporting date as the Company. Where
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
2.12
Financial Assets

The Group recognises all financial assets in its statement of financial position when, and only when, the Group becomes a party to the
contractual provisions of the instruments.
All regular way purchases or sales of financial assets are recognised and derecognised using trade date accounting. A regular way
purchase or sale is a purchase or sale of a financial asset that requires delivery of asset within the time frame established generally by
regulation or convention in the marketplace concerned. Trade date accounting refers to:-
(i)
the recognition of an asset to be received and the liability to pay for it on the trade date i.e. the date the Group commits itself to
purchase or sell an asset; and
(ii) derecognition of an asset that is sold, the recognition of any gain or loss on disposal and the recognition of a receivable from the
buyer for payment in the trade date.

Classsification

From 1 January 2018, the Group classifies its financial assets into the following measurement categories depending on the business
models used for managing the financial assets and the contractual cash flow characteristics of the financial assets:
(i) at amortised cost;

(ii) fair value through other comprehensive income; and
(iii) fair value through profit or loss.
Financial assets are reclassified when and only when the Group and the Company changes its business model for managing the financial
assets and the reclassification of all affected financial assets is applied prospectively from the reclassification date i.e. on the first day of
the first reporting period following the change in business model.
Measurement

At initial recognition, trade receivables without a significant financing component are measured at their transaction price when they are
originated.
Other financial assets are initially measured at fair value plus, in the case of financial assets not at fair value through profit or loss, directly
attributable transaction costs. Transaction costs of financial assets at fair value through profit or loss are expensed to profit or loss when
incurred.
108

2.12 Financial Assets (cont’d)
Measurement (cont’d)
(a)
Debt Instruments

Subsequent measurement of debt instruments depends on the Group’s business models for managing the financial assets and
the contractual cash flows characteristics of the financial assets. The Group’s debt instruments are categorised into the following
measurement categories:
(i)
Amortised Cost

A financial asset is measured at amortised cost if both of the following conditions are met and it is not designated as at fair
value through profit or loss at initial recognition:
• the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest (“SPPI”) on the principal amount outstanding.
These financial assets are measured at amortised cost using the effective interest method less any impairment losses. Interest
income, gains or losses on derecognition, foreign exchange gains or losses and impairment are recognised in profit or loss.
Impairment losses are presented as a separate line item in the statement of profit or loss and other comprehensive income.
(ii) Fair Value Through Other Comprehensive Income (“FVOCI”)
A financial asset is measured at FVOCI if both of the following conditions are met and it is not designated as FVTPL at initial
recognition:
• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest (“SPPI”) on the principal amount outstanding.
Changes in fair value of these financial assets are recognised in other comprehensive income. When the financial asset is
derecognised, the cumulative gains or losses previously recognised in other comprehensive income is reclassified from
equity to profit or loss. Interest income calculated using the effective interest method, foreign exchange gains or losses and
impairment are recognised in profit or loss. Impairment losses are presented as a separate line item in the statement of profit
or loss and other comprehensive income.
(iii) Fair Value Through Profit or Loss (“FVTPL”)

A financial asset is measured at FVTPL if it does not meet the criteria for amortised cost or FVOCI. This includes all derivative
financial assets.
At initial recognition, irrevocably designate a financial asset as measured at FVTPL that otherwise meets the criteria for
amortised cost or FVOCI if doing so eliminates or significantly reduces an accounting mismatch that would otherwise
arise.
Changes in fair value of financial assets at FVTPL and interest or dividend income are recognised in profit or loss.
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2.12 Financial Assets (cont’d)
Measurement (cont’d)
(b) Equity Instruments
The Group and the Company subsequently measures all equity investments at fair value.
For equity investments at FVTPL, changes in fair value are recognised in profit or loss. Where the Group has elected to present
the changes in fair value in other comprehensive income, the amounts presented are not subsequently transferred to profit or
loss when the equity investments are derecognised. The cumulative gains or losses is transferred to retained profits instead. The
election is made on an instrument-by-instrument basis and it is irrevocable. The amount presented in other comprehensive income
includes the related foreign exchange gains or losses.
Dividend income from equity investments at FVTPL and FVOCI is recognised in profit or loss as other income when the Group’s
right to receive payment has been established.
Changes in the fair value of equity investments at FVTPL are recognised in other income or expenses, as applicable, in the profit
or loss. Impairment losses or reversal of impairment losses on equity instruments measured at FVOCI are recognised in other
comprehensive income and are not reported separately from other changes in fair value.
Derecognition of Financial Assets
The Group and the Company derecognises a financial asset when, and only when, the contractual rights to the cash flows from the
financial asset expires or it transfers the financial asset without retaining control or transfers substantially all the risks and rewards of
ownership of the financial asset to another party.
On derecognition of a financial asset in its entirety, the difference between the carrying amount measured at the date of derecognition and
the sum of the consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.
2.13 Impairment of Financial Assets
From 1 January 2018, upon the adoption of MFRS 9, the Group and the Company recognises loss allowance for expected credit losses
(“ECLs”) on:
(i) financial assets measured at amortised cost;

(ii) debt instruments measured at fair value through other comprehensive income (“FVOCI”);
(iii) contract assets;
(iv) lease receivables; and
(v) financial guarantee contracts.

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and the cash flows that the
Group and the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash
flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months i.e. a 12-month
ECL. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default i.e. a lifetime ECL.

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2.13 Impairment of Financial Assets (cont’d)
For trade receivables and contract assets, the Group and the Company applies a simplified approach in calculating ECLs. Therefore, the
Group and the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group and the Company has established a provision matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic environment.
For debt instruments at FVOCI, the Group and the Company applies the low credit risk simplification. At every reporting date, the Group
and the Company evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable
information that is available without undue cost or effort. In making that evaluation, the Group and the Company reassesses the internal
credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when
contractual payments are more than 30 days past due. When there has been a significant increase in credit risk since origination, the
allowance will be based on the lifetime ECL.
The Group and the Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain
cases, the Group and the Company may also consider a financial asset to be in default when internal or external information indicates
that the Group and the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit
enhancements held by the Group and the Company. A financial asset is written off when there is no reasonable expectation of recovering
the contractual cash flow in its entirety or a portion thereof.
An impairment loss in respect of financial assets measured at amortised cost is recognised in profit or loss and the carrying amount of
the asset is reduced through the use of an allowance account.
An impairment loss in respect of debt instruments measured at FVOCI is recognised in profit or loss and the allowance account is
recognised in other comprehensive income.
2.14 Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits, and short term, highly liquid investments that are
readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. These also include bank
overdrafts that form an integral part of the Group and the Company’s cash management.
2.15 Contract Assets and Contract Liabilities

Contract asset is the right to consideration for goods or services transferred to the customers. In the case of property development and
construction contracts, contract asset is the excess of cumulative revenue earned over the billings to-date. Contract assets are reviewed
for impairment in accordance with the Group’s accounting policy on impairment as disclosed in Note 2.13.
Contract liability is the obligation to transfer goods or services to customers for which the Group has received the consideration or
has billed the customer. In the case of construction contracts, contract liability is the excess of the billings to-date over the cumulative
revenue earned. Contract liabilities include downpayments received from customers and other deferred income where the Group has
billed or has collected the payment before the goods are delivered or services are provided to the customers.
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2.16
Inventories

(a) Land Held for Property Development

Land held for property development consists of land where no active development activity has been carried out or where
development activity is not expected to be completed within the normal operating cycle. Such land is classified within non-current
asset and is stated at cost less any accumulated impairment losses.
Land held for property development is reclassified to property development costs at the point when development activity has
commenced and where it can be demonstrated that the development activity will be completed within the normal operating cycle.
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.
When the financial outcome of a development activity can be reliably estimated, property development revenue and expenses are
recognised in profit or loss by using the stage of completion method. The stage of completion is determined by the proportion
that property development costs incurred for work performed to date bears to the estimated total property development costs.
Where the financial outcome of a development activity cannot be reliably estimated, property development revenue is recognised
only to the extent of property development costs incurred that is probable will be recoverable, and property development costs on
properties sold are recognised as an expense in the period in which they are incurred.
Any expected loss on a development project, including costs to be incurred over the defects liability period, is recognised as an
expense immediately.

(b) Property Development Costs
Property development costs not recognised as an expense are recognised as an asset, which is measured at the lower of cost and
net realisable value.
The excess of revenue recognised in the profit or loss over billings to purchasers is classified as accrued billings within trade
receivables and the excess of billings to purchasers over revenue recognised in profit or loss is classified as progress billings within
trade payables.
(c) Finished Goods, Raw Materials and Consumable Stores

Inventories are stated at the lower of cost and net realisable value. The cost of raw materials comprises costs of purchase. The
cost of unsold completed inventory properties comprises cost associated with the acquisition of land, direct costs and appropriate
proportions of common costs.
Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the
estimated costs necessary to make the sale.

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2.17
Contract Costs

Contract costs are recognised as an asset when the following criteria are met:

(a) In relation to incremental costs of obtaining a contract, the Group recognises the costs as an asset if the Group expects to recover
those costs.
(b) In relation to costs to fulfil a contract, the Group recognises the contract costs as an asset if:
(i) they relate directly to a contract or to an anticipated contract that the Group can specifically identify;
(ii) when the costs generate or enhance resources of the Group that will be used in satisfying performance obligations in the
future; and
(iii) the costs are expected to be recovered.

These assets are initially measured at cost and are subsequently amortised on a systematic basis that is consistent with the transfer
to the customers of the goods or services to which the assets relate. An impairment loss is recognised in profit or loss to the extent
that the carrying amount of the asset exceeds the remaining amount of consideration expected to be received less the remaining
costs expected to be incurred. A reversal of impairment loss is recognised in profit or loss when the impairment conditions no
longer exist or have improved. The increased carrying amount does not exceed the amount that would have been determined (net
of amortisation) if no impairment loss had been recognised previously.
2.18 Non-Current Assets Held for Sale
Non-current assets are classified as held for sale 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.
On initial classification as held for sale, non-current assets (other than investment properties, deferred tax assets, employee benefits
assets, financial assets and inventories) are measured at the lower of carrying amount and fair value less costs to sell. Any differences
are included in the profit or loss.

2.19 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 economic resources will be required to settle the obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow
of economic resources will be required to settle the obligation, the provision is reversed. 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
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
2.20 Financial Liabilities
The Group recognises all financial liabilities in its statement of financial position when, and only when, the Group becomes a party to the
contractual provisions of the instruments.
Financial liabilities are initially measured at fair value minus, in the case of financial liabilities not at fair value through profit or loss,
directly attributable transaction costs. Transaction costs of financial assets at fair value through profit or loss are expensed to profit or
loss when incurred.
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ANNUAL REPORT 2019

2.20 Financial Liabilities (cont’d)
Financial liabilities are classified as either financial liabilities at fair value through profit or loss or financial liabilities measured at
amortised cost.

(a) Fair Value Through Profit or Loss (“FVTPL”)
Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL upon
initial recognition or derivatives that are liabilities.
A financial liability is classified as held for trading if:-

(i) it has been incurred principally for the purpose of repurchasing it in the near term; or
(ii) on initial recognition, it is part of a portfolio of identified financial instruments that the Group manages together and has a
recent actual pattern of short-term profit-taking; or
(iii) it is a derivative that is not designated and effective as a hedging instrument.
After initial recognition, financial liabilities at FVTPL are measured at fair value with any gains or losses arising from changes in
fair value recognised in profit or loss. If a financial liability is designated as at FVTPL, the change in fair value that is attributable to
changes in the credit risk of that liability is presented in other comprehensive income and the remaining change in fair value of the
liability is presented in profit or loss. The net gains or losses recognised in profit or loss do not include any exchange differences
or interest paid on the financial liability. Exchange differences and interest expense on financial liabilities at FVTPL are recognised
separately in profit or loss as part of other income or other expenses.
(b) Amortised Cost
All financial liabilities, other than those categorised as FVTPL are subsequently measured at amortised cost using the effective
interest method.
A gain or loss on financial liabilities at amortised cost is recognised in profit or loss when the liabilities are derecognised and
through the amortisation process.
2.21 Financial Guarantee Contracts
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 in accordance with the original or modified terms of a debt instrument.
Financial guarantee contracts are recognised initially as a liability at fair value, net of transaction costs. Subsequent to initial recognition,
financial guarantee contracts are measured at the higher of (i) the amount determined in accordance with the expected credit loss
model; and (ii) the amount initially recognised less, where appropriate, the cumulative amount of income recognised in accordance with
the principles of MFRS 15 Revenue from Contracts with Customers.
2.22
Borrowing Costs

Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the acquisition, construction
or production of that asset. Capitalisation of borrowing costs commences when the activities to prepare the asset for its intended use
or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are capitalised until the assets are
substantially completed for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing costs consist of interest and other
costs that the Group and the Company incurred in connection with the borrowing of funds.
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2.23 Employee Benefits

(a) Short Term Benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated
services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual leave are
recognised when services are rendered by employees that increase their entitlement to future compensated absences and short
term non-accumulating compensated absences such as sick leave are recognised when the absences occur.
(b) Defined Contribution Plans
The Group participates in the national pension schemes as defined by the laws of the countries in which it has operations. The
Malaysian companies in the Group make contributions to the Employee Provident Fund in Malaysia, a defined contribution pension
scheme. Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related
service is performed.

Such contributions are recognised as an expense in the profit or loss as incurred. As required by law, companies in Malaysia make
such contributions to the Employees Provident Fund (“EPF”).
Some of the Group’s foreign subsidiaries also make contributions to their respective countries’ statutory pension schemes.
2.24
Leases

The Group has applied MFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is
recognised as an adjustment to retained earnings at 1 January 2019. Accordingly, the comparative information presented for 2018 has
not been restated - i.e. it is presented as previously reported under MFRS 117, Leases and related interpretations.
Current Financial Year

(i) Definition of a Lease
A contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset - this may be
specified explicitly or implicitly.
• the contract involves the use of an identified asset - this may be specified explicity or implicity, and should be physically
distinct or represent substantially all of the capacity of a phusically distinct asset. If the supplier has a substantive substitution
right, then the asset is not identified;
• the customer has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period
of use; and
• the customer has the right to direct the use of the asset. The customer has his right when it has the decision-making rights
that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how
and for what pupose the asset is used. In rare cases where the decision about how and for what purposes the asset is used
is predetermined, the customer has the right to direct the use of the asset if either the customer has the right to operate the
asset; or the customer designed the asset in a way that predetermines how and for what purpose it will be used;
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ANNUAL REPORT 2019

2.24 Leases (cont’d)
Current Financial Year (cont’d)

(i) Definition of a Lease (cont’d)
At the inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease and non-lease component on the basis of their relative stand-alone prices. However, for leases of properties
in which the Group is a lessee, it has elected not to separate non-lease components and will instead account for the lease and
non-lease components as a single lease component.
(ii)
Recognition and Initial Measurement

(a) As a Lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct cost incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying assets or the site on which it is located, less any lease incentives received.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the respective Group
entities’ incremental borrowing rate. Generally, the Group entities use their incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following :
• fixed payments, including in-substance fixed payments less any incentives receivable;
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
• amounts expected to be payable under a residual value guarantee;
• the exercise price under a purchase option that the Group is reasonably certain to exercise; and
• penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.
The Group excludes variable lease payments that are linked to future performance or usage of the underlying asset from the
lease liability. Instead, these payments are recognised in profit or loss in the period in which the performance or use occurs.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of
12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as
an expense on a straight-line basis over the lease term.
(b) As a Lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and
rewards incidental to ownership of the underlying assets. If this is the case, then the lease is a finance lease; if not, then it is
an operating lease.
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Current Financial Year (cont’d)
(ii) Recognition and Initial Measurement (cont’d)
(b) As a Lessor
If an arrangement contains lease and non-lease components, the Group applies MFRS 15 to allocate the consideration in the
contract based on the stand-alone selling prices.
The Group recognises assets held under a finance lease in its statement of financial position and presents them as a receivable
at an amount equal to the net investment in the lease. The Group uses the interest rate implicit in the lease to measure the
net investment in the lease.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. It
assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with
reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described
above, then it classifies the sublease as an operating lease.
(iii)
Subsequence Measurement

(a) As a Lessee
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use assets or the end of the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use assets
is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate, if there is a revision of in-substance fixed lease payments,
or if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if
the Group changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset,
or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
(b)
As a Lessor

The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term
as part of “revenue”.

The Group recognises finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the
Group’s net investment in the lease. The Group aims to allocate finance income over the lease term on a systematic and rational
basis. The Group applies the lease payments relating to the period against the gross investment in the lease to reduce both the
principal and the unearned finance income. The net investment in the lease is subject to impairment requirements in MFRS 9,
Financial Instruments.
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ANNUAL REPORT 2019

Previous Financial Year
As a Lessee

(i) Finance Lease
Leases in terms of which the Group or the Company assumed substantially all the risks and rewards of ownership were classified
as finance leases. Upon initial recognition, the leased asset was measured at an amount equal to the lower of its fair value and the
present value of the minimum lease payments. Subsequence to initial recognition, the asset was accounted for in accordance with
the accounting policy applicable to that asset.
Minimum lease payments made under finance leases were appointed between the finance expense and the reduction of the
outstanding liability. The finance expense was allocated to each period during the lease term so as to produce a constant periodic
rate of interest on the remaining balance of the liability. Contingent lease payments were accounted for by revising the minimum
lease payments over the remaining term of the lease when the lease adjustment was confirmed.
Leasehold land which in substance was a finance lease was classified as property, plant and equipment, or as investment property
if held to earn rental income or for capital appreciation or for both.
(ii) Operating Lease
Leases, where the Group or the Company did not assume substantially all the risks and rewards of ownership were classified
as operating lease and, expect for property interest held under operating lease, the leased assets were not recognised on the
statement of financial position. Property interest held under an operating lease, which was held to earn rental income or for capital
appreciation or both, was classified as investment property and measure using fair value model.
Payments made under operating leases were recognised in profit or loss on a straight-line basis over the term of the lease. Lease
incentives received were recognised in profit or loss as an integral part of the total lease expense, over the term of the lease.
Contingent rentals were charged to profit or loss in the reporting period in which they were incurred.
Leasehold land which in substance was an operating lease was classified as prepaid lease payments.
2.25 Revenue and Other Income
The Group recognises revenue from a contract with customer when it satisfies a performance obligation by transferring control of a
promised good or service to the customer. Performance obligations may be satisfied over time or at a point in time. Revenue is measured
based on the consideration specified in the contract which the Group expects to be entitled in exchange for transferring the good or
service, excluding the amounts collected on behalf of third parties.
(a) Revenue
(i) Property Development
Contracts with customers may include multiple promises to customers and therefore accounted for as separate performance
obligations. In this case, the transaction price will be allocated to each performance obligation based on the stand-alone
selling prices. When these are not directly observable, they are estimated based on expected cost plus margin.
The revenue from property development is measured at the fixed transaction price agreed under the sales and purchase
agreement.
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2.25 Revenue and Other Income (cont’d)
(a) Revenue (cont’d)
(i) Property Development (cont’d)
Revenue from property development is recognised as and when the control of the asset is transferred to the customer and
it is probable that the Group will collect the consideration to which it will be entitled in exchange for the asset that will be
transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the
asset may transfer over time or at a point in time. Control of the asset is transferred over time if the Group’s performance do
not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance
completed to date.
If control of the asset transfers over time, revenue is recognised over the period of the contract by reference to the progress
towards complete satisfaction of that performance obligation. Otherwise, revenue is recognised at a point in time when the
customer obtains control of the asset.
The Group recognises revenue over time using the output method, which is based on the level of completion of the physical
proportion of contract work to date, certified by professional consultants.
The promised properties are specifically identified by its plot, lot and parcel number and its attributes (such as its size and
location) as in the attached layout plan in the sale and purchase agreements. The purchasers could enforce its rights to the
promised properties if the Group seeks to sell the unit to another purchaser. The contractual restriction on the Group’s ability
to direct the promised property for another use is substantive and the promised properties sold to the purchasers do not
have an alternative use to the Group. The Group has the right to payment for performance completed to date, is entitled to
continue to transfer to the customer the development units promised, and has the rights to complete the construction of the
properties and enforce its rights to full payment.
The Group recognises sales at a point in time for the sale of completed properties, when the control of the properties has
been transferred to the purchasers, being when the properties have been completed and delivered to the customers and it
is probable that the Group will collect the consideration to which it will be entitled to in exchange for the assets sold.
(ii)
Construction Contracts

The Group constructs residential properties under long-term contracts with customers who are property developers. The
constructions are on the land owned by the customers. Revenue from construction of residential properties is recognised
over time on a cost–to–cost method, i.e. based on the proportion of contract costs incurred for work performed to date
relative to the estimated total contract costs. The directors consider that this input method is an appropriate measure of the
progress towards complete satisfaction of these performance obligations under MFRS 15.
The Group becomes entitled to invoice customers for construction of residential properties based on achieving a series of
performance-related milestones. When a particular milestone is reached the customer is sent a relevant statement of work
signed by a third party assessor and an invoice for the related milestone payment. The Group will previously have recognised
a contract asset for any work performed. Any amount previously recognised as a contract asset is reclassified to trade
receivables at the point at which it is invoiced to the customer. If the milestone payment exceeds the revenue recognised to
date under the cost–to–cost method then the Group recognises a contract liability for the difference. There is not considered
to be a significant financing component in construction contracts with customers as the period between the recognition of
revenue under the cost–to–cost method and the milestone payment is always less than one year.
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ANNUAL REPORT 2019

2.25 Revenue and Other Income (cont’d)
(a) Revenue (cont’d)
(iii) Project Management Services

Project management services are recognised for services rendered based on the stage of completion during pre and post
contract for each project.
(iv)
Parking Services Rendered

Revenue from parking services are upon the delivery of the service to the customers.
(v) Cleaning Services

Services are recognised upon completion of monthly services based on price stated in the predetermined agreement between
company and the customer.

(vi) Provision of Site and Facilities Management
Income from services are recognised based on services rendered during the financial year.
(b) Other Income
(i) Rental Income
Rental income is accounted for on a straight-line basis over the lease terms. The aggregate costs of incentives provided to
lessees are recognised as a reduction of rental income over the lease term on a straight-line basis.
(ii) Interest Income
Interest income is recognised using the effective interest method.
(iii) Dividend Income
Dividend income is recognised when the Group’s right to receive payment is established.
2.26
Income Taxes
(a) Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The
tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by 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.
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2.26 Income Taxes (cont’d)
(b) Deferred Tax
Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:
(i) where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
and
(ii) in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of
the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse
in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax
losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and
the carry forward of unused tax credits and unused tax losses can be utilised except:
(i) where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; and
(ii) in respect of deductible temporary differences associated with investments in subsidiaries and associates, deferred tax assets
are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary differences can be utilised.
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 has become probable that future
taxable profit will allow the deferred tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or
the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised
in correlation to the underlying transaction either in other comprehensive income or directly in equity and deferred tax arising
from a business combination is adjusted against goodwill on acquisition.
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.
2.27 Segment Reporting
For management purposes, the Group is organised into operating segments based on their products and services which are independently
managed by the respective segment managers responsible for the performance of the respective segments under their charge. The
segment managers report directly to the management of the Company who regularly review the segment results in order to allocate
resources to the segments and to assess the segment performance. Additional disclosures on each of these segments are shown in Note
35, including the factors used to identify the reportable segments and the measurement basis of segment information.
121
ANNUAL REPORT 2019

2.28 Share Capital and Share Issuance Expenses
An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company after deducting all of
its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs. Ordinary shares are
classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared.

2.29
Contingencies

A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group.
Contingent liabilities and assets are not recognised in the statements of financial position of the Group.
2.30 Fair Value Measurement
Fair value is 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 fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
(i) In the principal market for the asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset 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.
The Group uses valuation techniques that are appropriate in circumstances and for which sufficient data are available to measure fair
value, maximizing the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
(i) Level 1 – Quoted (unadjusted) market prices in active markets for identical assets of liabilities.
(ii) Level 2 – Valuation techniques for the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.
(iii) Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the assets or liabilities and the level of the fair value hierarchy as explained above.
122

3. Significant Accounting Judgements and Estimates
The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However,
uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount
of the asset or liability affected in the future.
3.1 Judgements Made in Applying Accounting Policies
There are no critical judgements made by management in the process of applying the Group’s accounting policies that may have
significant effect on the amounts recognised in the financial statements.
3.2 Key Sources of Estimation Uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Impairment of receivables
The Group and the Company assess 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 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.
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. The carrying amount of the Group’s and Company’s receivables at
the reporting date is disclosed in Note 23.
(b) Impairment of goodwill

Goodwill is tested for impairment annually and at other times when such indicators exist. This requires an estimation of the value
in use of the cash-generating units to which goodwill is allocated.
When value in use calculations are undertaken, management must estimate the expected future cash flows from the asset or cash-
generating unit and choose a suitable discount rate in order to calculate the present value of those cash flows. Further details of
the carrying value, the key assumptions applied in the impairment assessment of goodwill and sensitivity analysis to changes in
the assumptions are given in Note 22.
(c) Deferred Tax Assets
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available
against which the losses 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.
Assumptions about generation of future taxable profits depend on management’s estimates of future cash flows. These depends
on estimates of future production and sales volume, operating costs, capital expenditure, dividends and other capital management
transactions. Judgement is also required about application of income tax legislation. These judgements and assumptions are
subject to risks and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may
impact the amount of deferred tax assets recognised in the statements of financial position and the amount of unrecognised tax
losses and unrecognised temporary differences.
123
ANNUAL REPORT 2019

4.
Revenue

Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Provision of site and facilities management 172,607 246,413 - -

Project management services 81,990 46,468 - -
Sale of properties 31,257 11,192 - -
Management fees receivable from subsidiaries - - 10,339 13,288
Others 7,605 52 - -
293,459 304,125 10,339 13,288

5.
Interest Income
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Interest income on:

- late payment 81 214 - 1
- deposits with licensed banks 313 76 13 25
394 290 13 26

6.
Dividend Income from Subsidiaries
Company

2019 2018
RM’000
RM’000
Dividend income from subsidiaries

- 680

124

7.
Other Income

Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Net gain on sales of subsidiaries 6,911 1,944 - 9,322

Rental income from investment properties 228 248 228 228
Discount received - 22 - 22
Interest on late payment 342 24 - -
Tender documents 110 11 - -
Reversal of impairment of other receivables (Note 23 (b)) 27 13 1,190 891
Interest receivable from subsidiaries - - 2,968 2,966
Others 2,590 5,689 3,325 6,833
10,208 7,951 7,711 20,262
8. Finance Costs
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Interest expense on:

- Term loans 133 142 - -
- Finance leases 114 498 2 3
- Overdrafts 486 560 - -
- Advance from holding company 34 52 34 52
- Lease liabilities 1,916 - 86 -
Total finance costs 2,683 1,252 122 55

9. Employee Benefits Expense
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Wages, salaries and bonus 77,794 80,448 9,425 8,972

Social security contributions 146 147 54 53
Contributions to defined contribution plan 3,577 2,837 1,170 935
Training 478 659 31 61
Other benefits 1,192 1,447 560 405
Employee benefits expense (Note 10) 83,187 85,538 11,240 10,426

Less: Employees’ benefits expenses included in cost of sales (49,965) (51,785) - -
33,222 33,753 11,240 10,426

Included in employee benefits expense of the Group and the Company are executive director’s remuneration amounting to RM4,807,000
(2018: RM2,452,000) and RM2,198,000 (2018: RM2,050,000) respectively.
125
ANNUAL REPORT 2019

10.
Profit Before Tax

The following items have been included in arriving at profit before tax:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Auditors’ remuneration:
- Statutory audit fees 384 433 67 65
Employee benefits expense (Note 9) 83,187 85,538 11,240 10,426
Directors’ remuneration:
- Executive director (Note 11) 4,807 2,452 2,198 2,050
- Non-executive directors’ remuneration (Note 11) 471 584 471 584
Depreciation of property, plant and equipment (Note 14) 6,816 5,559 72 79
Rental expense:
- office, warehouse and house rental 881 1,585 - 627
- computer and equipment 508 339 - 133
Depreciation of investment properties (Note 17) 36 36 36 36
Impairment loss on financial assets:
- trade receivables (Note 23(a)) 1,152 - - -
- other receivables (Note 23(b)) 398 - 371 -
Unrealised foreign exchange loss/(income) 2 (3) - -
Realised foreign exchange loss 2 41 - -
Unrealised foreign exchange (gain)/loss (2,234) 1 - -
11.
Directors’ Remunerations
The details of remuneration receivable by directors of the Company during the financial year are as follows:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Executive:
Salaries, bonus and other emoluments 4,114 1,914 1,797 1,535
Fees 132 343 132 343
Defined contribution plan 561 195 269 172
Total executive directors’ remuneration (excluding

benefits-in-kind) (Note 10) 4,807 2,452 2,198 2,050
Non-Executive:
Fees 411 524 411 524
Other emoluments 60 60 60 60
Total non-executive directors’ remuneration

(including benefits-in-kind) (Note 10) 471 584 471 584
Total directors’ remuneration 5,278 3,036 2,669 2,634

126

11. Directors’ Remunerations (cont’d)
The number of directors of the Company whose total remuneration during the financial year fell within the following bands is analysed below:
Number of directors

2019 2018

Executive director:
Below RM500,000 - 2
RM500,001 - RM1,000,000 1 -
RM1,000,001 - RM1,500,000 1 -
RM1,500,001 - RM2,000,000 - 1
Non-Executive directors:
Below RM50,000 - 2
RM50,001 - RM100,000 4 5
RM100,001 - RM200,000 1 1
12. Income Tax Expense

Major Components of Income Tax Expense
The major components of income tax expense for the years ended 31 December 2019 and 2018 are:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Statement of comprehensive income:

Current income tax:
- Malaysian income tax 3,797 6,735 74 133
- Foreign income tax 969 714 - -
- Over provision in respect of previous years (1,953) (874) (10) -
- Deferred tax (15) - - -
Income tax expense recognised in profit or loss 2,798 6,575 64 133
127
ANNUAL REPORT 2019

12. Income Tax Expense (cont’d)
Reconciliation Between Tax Expense and Accounting Profit
A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at the effective
income tax rate of the Company is as follows:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Profit before tax 25,592 26,116 1,602 17,812
Tax at Malaysian statutory tax rate of 24% (2018: 24%) 6,142 6,268 384 4,275
Adjustments:
Non-deductible expenses 4,392 8,714 866 1,016
Income not subject to taxation (1,430) (3,803) (1,040) (3,731)
Utilisation of business loss (877) (3,730) (94) (1,427)
Utilisation of previously unrecognised
tax losses, capital allowances and
other temporary differences (3,476) - (42) -
Over provision of income tax in respect of previous years (1,953) (874) (10) -
Income tax expense recognised in profit or loss 2,798 6,575 64 133

13. Earnings Per Share

Basic earnings per share amounts are calculated by dividing profit for the year, net of tax, attributable to owners of the parent by the weighted
average number of ordinary shares outstanding during the financial year.
The Company does not have dilutive potential ordinary shares for years ended 31 December 2019 and 2018.

The following reflects the profit and share data used in the computation of basic earnings per share for the years ended 31 December:
Group

2019 2018
RM’000 RM’000
Profit net of tax attributable to owners of the parent used

in the computation of basic earnings per share 23,078 19,120

No. of shares No. of shares

’000 ’000
Weighted average number of ordinary shares for basic earnings per share computation 318,371 318,371

Basic profit per share attributable to owners of the parent (sen per share) 7.25 6.01

128
14. Property, Plant and Equipment
Site
Freehold infrastructure Furniture Computer Capital
land and and Plant and and and office Motor work-in
buildings renovations machinery fittings equipment vehicles progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2019
Group

Cost
At 1 January 2019 1,837 4,766 71,388 2,571 11,004 4,183 1,114 96,863
Additions - 185 4,152 154 120 - - 4,611
Translation differences - - (717) (84) (77) (60) - (938)
At 31 December 2019 1,837 4,951 74,823 2,641 11,047 4,123 1,114 100,536

Accumulated depreciation
At 1 January 2019
Accumulated depreciation 235 4,366 54,654 1,722 8,770 3,767 - 73,514

Accumulated impairment loss - - 632 - - - - 632
Depreciation charge for the year 56 183 5,803 25 389 360 - 6,816
Impairment loss - - 316 - - - - 316
Translation differences - - (583) (23) (50) (20) - (676)
At 31 December 2019

Net carrying amount 1,546 402 14,001 917 1,938 16 1,114 19,934
FINANCIAL

STATEMENTS
Statements
Notes to the Financial
129
14. Property, Plant and Equipment (cont’d)
130
Site
Freehold infrastructure Furniture Computer Capital
land and and Plant and and and office Motor work-in
buildings renovations machinery fittings equipment vehicles progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
ANNUAL REPORT 2019
2018
Group

Cost
At 1 January 2018 1,837 4,512 68,262 2,722 10,794 4,332 3,061 95,520
Additions - 254 3,097 286 721 - - 4,358
Disposal - - - (82) - - - (82)
Disposal of subsidiaries - - (107) (462) (554) (69) - (1,192)
Transfer to / (from) assets - - 1,947 178 (178) - (1,947) -
Translation differences - - (1,811) (71) 221 (80) - (1,741)
At 31 December 2018 1,837 4,766 71,388 2,571 11,004 4,183 1,114 96,863

At 1 January 2018
Depreciation charge for the year 56 164 4,540 22 405 372 - 5,559
Impairment loss - - 316 - - - - 316
Disposals - - - (50) - - - (50)
Disposal of subsidiaries - - (69) (170) (479) (69) - (787)
Transfer to / (from) assets - - - 167 (167) - - -
Translation differences - - (1,639) - 273 (20) - (1,386)
At 31 December 2018

Net carrying amount 1,602 400 16,102 849 2,234 416 1,114 22,717

14. Property, Plant and Equipment (cont’d)
Office
equipment Furniture
and and Motor
computers fittings Renovations vehicles Total
RM’000 RM’000 RM’000 RM’000 RM’000
2019
Company
Cost
At 1 January 2019 202 389 1,309 144 2,044
Additions - 1 - - 1
At 31 December 2019 202 390 1,309 144 2,045
At 1 January 2019 65 81 1,309 117 1,572
Depreciation charge for the year 23 22 - 27 72
At 31 December 2019 88 103 1,309 144 1,644
Net carrying amount 114 287 - - 401
2018
Company
Cost
At 1 January 2018 186 384 1,309 144 2,023
Additions 16 5 - - 21
At 31 December 2018 202 389 1,309 144 2,044
At 1 January 2018 44 61 1,301 87 1,493
Depreciation charge for the year 21 20 8 30 79
At 31 December 2018 65 81 1,309 117 1,572
Net carrying amount 137 308 - 27 472
131
ANNUAL REPORT 2019

15. Right-of-use Assets

Plant and
Building Equipment Total
RM’000 RM’000 RM’000

Group

At 1 January 2019 110,253 790 111,043
Addition 19,984 586 20,570
Depeciation (48,674) (432) (49,106)
At 31 December 2019 81,563 944 82,507

Company
At 1 January 2019 29 212 241

Addition 1,788 113 1,901
Depeciation (362) (100) (462)
At 31 December 2019 1,455 225 1,680

The Group assesses at lease commencement by applying significant judgement whether it is reasonably certain to exercise the extention
options. Group entities consider all facts and circumstances including their past practice and any cost that will be incurred to charge the assetif
an option to extend is not taken, to help then determine the lease term.
The Group also applied judgement and assumptions in determining the incremental borrowing rate of the respective leases. Group entities
first determine the closest available borrowing rate before using significant judgement to determine the adjustments required to reflect the
term, security, value or economic environment of the respective leases.
16. Inventories
Group

2019 2018
RM’000 RM’000
Non-current
Land held for property development (Note (a)) 62,446 60,755
Current
Property development costs (Note (b)) 17,534 15,378
Finished goods, raw materials and consumable stores (Note (c)) 8,912 7,718
26,446 23,096
Total inventories 88,892 83,851

132

16. Inventories (cont’d)
(a) Land Held for Property Development

Freehold Development Development
land rights costs Total
RM’000 RM’000 RM’000 RM’000
Group

At 1 January 2019 37,386 - 23,369 60,755
Additions - - 1,691 1,691
At 31 December 2019 37,386 - 25,060 62,446
At 1 January 2018 37,386 - 22,323 59,709

Additions - - 1,046 1,046
At 31 December 2018 37,386 - 23,369 60,755

(b) Property development costs
Group
At 31 December 2019
Cumulative property development costs
At 1 January 2019 2,104 1,712 51,906 55,722
Costs incurred during the year - - 4,312 4,312
At 31 December 2019 2,104 1,712 56,218 60,034
Cumulative costs recognised in profit or loss

At 1 January 2019 (1,226) (1,712) (37,406) (40,344)
Recognised during the year (2,156) (2,156)
At 31 December 2019 (1,226) (1,712) (39,562) (42,500)

Property development costs a t 31 December 2019 878 - 16,656 17,534

133
ANNUAL REPORT 2019

16. Inventories (cont’d)
(b) Property Development Costs (cont’d)

Freehold Development Development
land rights costs Total
RM’000 RM’000 RM’000 RM’000
Group (cont’d)
At 31 December 2018
Cumulative property development costs
At 1 January 2018 2,104 1,712 46,668 50,484
Costs incurred during the year - - 6,129 6,129
Reversal from completed projects - - (891) (891)
At 31 December 2018 2,104 1,712 51,906 55,722

Cumulative costs recognised in profit or loss
At 1 January 2018 (603) (1,528) (31,831) (33,962)
Recognised during the year (375) - (4,573) (4,948)
Reclassification of development cost - - 3,000 3,000
Transfer to inventory (248) (184) (4,002) (4,434)
At 31 December 2018 (1,226) (1,712) (37,406) (40,344)

Property development costs at 31 December 2018 878 - 14,500 15,378

(c)
Finished Goods, Raw Materials and Consumable Stores

Group

2019 2018
RM’000
RM’000
Cost
Cleaning machinery and equipment 52 60
Chemicals 75 82
Developed properties held for sale 6,463 5,906
Uniforms 46 58
Materials and consumables 1,791 1,001
Parking materials 485 611
8,912 7,718

During the year, the amount of inventories recognised as an expense in cost of sales of the Group was RM40,593,305
(2018: RM50,279,082).
134

17.
Investment Properties

Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Cost
At 1 January 89,478 89,478 1,792 1,792
Transfer to inventories (18,643) - - -
At 31 December 70,835 89,478 1,792 1,792

At 1 January 337 301 337 301
Depreciation charge for the year (Note 10) 36 36 36 36
At 31 December 373 337 373 337

Net carrying amount 70,462 89,141 1,419 1,455

Fair value 89,686 90,186 2,000 2,500

Fair value of investment properties has been determined based on valuations performed by accredited independent valuers. The valuation is
based on the comparison method of valuation.
Title to investment properties of the Company is presently registered in the name of the developer.
Fair value hierarchy disclosure for investment properties have been provided in Note 32(c).
18. Investment in Subsidiaries
Company

2019 2018
RM’000 RM’000
Unquoted shares, at cost In Malaysia 65,779 69,396

Disposal - (3,617)
65,779 65,779
Impairment losses (36,443) (38,663)
29,336 27,116

135
ANNUAL REPORT 2019

18. Investment in Subsidiaries (cont’d)
Proportion (%) of
ownership interest

Name Principal activities 2019 2018
i) Held by the Company and Incorporated in Malaysia:
Damansara Realty Management services to its holding 100 100

Management Services and related companies and general
Sdn. Bhd. insurance business

Damansara Realty (Pahang) Property holding and development 80 80
Sdn. Bhd.

Metro Parking (M) Sdn. Bhd. Parking Operator and consultancy services 100 100

Kesang Properties Sdn. Bhd. Development of building projects for own 100 100
operation, ie for renting of space in these buildings

Tebing Aur Sdn. Bhd. Construction and project management 100 100

HC Duraclean Sdn. Bhd. Franchising of professional care and cleaning 85 75
product and all other business related wholesale
and retail of professional care and cleaning
product and machinery to purchase in bulk, sell
and deal in any kind of professional care and
cleaning products
TMR Urusharta (M) Sdn. Bhd. Business of real estate services, general services, 100 95
facility management, project consultant and
project management

Damansara Galaxy Sdn. Bhd. Management services (inactive) 100 100

Damansara Prospects Sdn. Bhd. Leasing, hire purchase and loan financing (inactive) 100 100
Damansara Technology Sdn. Bhd. Business and technology solution provider 100 100

JOLS Construction Sdn. Bhd. Construction, refurbishment, inspection and 100 100
sanitisation service (inactive)
Damansara Realty Management Timber operations and its related activities (inactive) 100 100
(Timber Operations) Sdn. Bhd.
Damansara Realty Properties Sdn. Bhd. Property development and construction works - 100
(under liquidation)

Kesang Kastory Enterprise Sdn. Bhd. Importation and distribution of food stuffs (inactive) 95 95
136

Proportion (%) of
ownership interest

i) Held by the Company and Incorporated in Malaysia (cont’d):
Kesang Trading Sdn. Bhd. Property development and trading of office 100 100
equipment (inactive)

Damansara Realty Constructions Manufacturing, wholeselling and trading of - 100
Sdn. Bhd. pharmaceutical products (under liquidation)

Damansara Realty Land Sdn. Bhd. Sand extraction and trading (under liquidation) - 100
DHealthcare Centre Sdn. Bhd. Healthcare service provider (inactive) 51 51
Damansara Pulse Sdn. Bhd. To carry on the business of general merchants, 100 100
(formerly known as traders, suppliers, factors, brokers, commission
Damansara Urban Sdn. Bhd.) and general agents etc (general traders) (inactive)
Damansara Realty Negeri Sembilan General contracting (inactive) 100 100

Sdn. Bhd. (formerly known as
Kesang Construction & Engineering
Sdn. Bhd.)
ii) Held through subsidiaries and incorporated in Malaysia:
Damansara Realty ( Johor) Sdn. Bhd. Property development 100 100

Damansara Realty (Terengganu) Sdn. Bhd. Property development 100 100
Kesang Equipment Hire Sdn. Bhd. Buying, selling and renting of machinery - 100
(under liquidation)
Kesang Quarry Sdn. Bhd. Quarrying operation (inactive) 70 70

Pedas Quarry Sdn. Bhd. Quarrying operation (inactive) 55 55
TMR LC Services Sdn. Bhd. Building management, maintanance services 70 70

and hospitality maintanance services and hospitality
Metro Parking (Sabah) Sdn. Bhd. Operation of parking facilities for motor 100 100
vehicles (parking lots)
Smart Parking Management Trading of parking and car park equipment 100 100
Systems Sdn. Bhd.
137
ANNUAL REPORT 2019

Proportion (%) of
ownership interest

ii) Held through subsidiaries and incorporated in Malaysia (cont’d):
M.N. Koll (M) Sdn. Bhd. Building management and maintenance services 100 100
TMR ACMV Services Sdn. Bhd. Trading and servicing of air conditioning services 100 100
TMR Koll Sdn. Bhd. To provide engineering consultancy services 100 100
Harta Facilities Management Providing facilities management and 100 100

Sdn. Bhd. consultancy services
Damansara PMC Services Sdn. Bhd. Consultation, property development and investment 100 100
** DAC Properties Sdn. Bhd. Development of building projects for own operation 30 30
DAC Land Sdn. Bhd. Investment properties and property development 100 100
Proportion (%) of
ownership interest
Country of
Name incorporation Principal activities 2019 2018
iii) Held through subsidiaries and incorporated in overseas:
** Metro Parking (S) Pte. Ltd. Singapore Transport related services, car park 70 70
management and operation services
** Metro Parking (B) Sdn. Bhd. Brunei Managing car park facilities in Brunei 100 100
** Metro Parking Management Philippines Parking operator and other related 100 100
(Philippines) Inc. parking services
** Metro Parking Hong Kong Parking operator, consultancy services and - 55

(HK) Limited transport related services (strike-off)
** Metro Parking Services (India) India Parking operator, consultancy services and - 100
Private Limited transport related services (strike-off)
** Audited by a firm other than Jamal, Amin & Partners
138

19. Investment in Associate
Group

2019 2018
RM’000 RM’000
Investment in shares 166 166

Share of post-acquisition reserves 11,500 -
Less: Impairment loss (166) (166)
11,500 -

Details of the Associate are as Follows:
Effective
ownership interest

DAC Properties Sdn. Bhd. Those relating to property development 30% 30%
and property investment.
Group
Summarised Financial Information
2019 2018
RM’000 RM’000

As at 31 December
Non-current assets 128,596 125,495
Current assets 189,143 157,092
Non-current liabilities (80,000) -
Current liabilities (117,474)
(152,454)
Net assets 120,265 130,133

Year ended 31 December
Total comprehensive income 39,573 9,731

Included in the total comprehensive income is revenue amounting RM264,702,910 (2018: RM101,802,567).
139
ANNUAL REPORT 2019

20. Deferred Tax
Deferred tax as at 31 December relates to the following:
As at 1 Recognised As at 31 Recognised As at 31
January in profit December in profit December
2018 or loss 2018 or loss 2019
RM’000 RM’000 RM’000 RM’000 RM’000
Group

Deferred tax liabilities:
Property, plant and equipment 533 1,207 1,740 (105) 1,635
Deferred tax assets:

Others (530) (2,794) (3,324) 2,730 (594)
3 (1,587) (1,584) 2,625 1,041

Group

2019 2018
RM’000 RM’000
Presented after appropriate offsetting as follows:

Deferred tax liabilities 1,635 1,740
Deferred tax assets (594) (3,324)
1,041 (1,584)

Deferred tax assets have not been recognised in respect of the following items:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Unused tax losses 91,225 89,688 6,258 7,991
Unabsorbed capital allowances 685 217 - -
91,910 89,905 6,258 7,991
140

20. Deferred Tax (cont’d)
Unrecognised tax losses

At the reporting date, the Group has unused tax losses and unabsorbed capital allowances that are available for offset against future taxable
profits of the companies in which the losses arose, for which no deferred tax asset is recognised due to uncertainty of recoverability. The
availability of unused tax losses and unabsorbed capital allowances for offsetting against future taxable profits of the respective subsidiaries
are subject to no substantial changes in shareholdings of those subsidiaries under the Income Tax Act, 1967 and guidelines issued by the tax
authority.
21. Other Investments
Group/Company

2019 2018
RM’000 RM’000
Non-current
Available-for-sale financial assets:
- equity instruments (quoted in Malaysia) 217 51
Market value of quoted investments

280 377

22. Goodwill on Consolidation
2019 2018
RM’000
RM’000
Group

Cost
At 1 January and 31 December 1,430 3,050
Disposal - (1,620)
At 31 December 1,430 1,430
Accumulated impairment
At 1 January and 31 December 542 1,640
Disposal - (1,098)
At 31 December 542 542
Net carrying amount 888 888
Impairment testing of goodwill
Goodwill arising from business combinations has been allocated to property services segment for impairment testing.
141
ANNUAL REPORT 2019

22. Goodwill on Consolidation (cont’d)
The carrying amounts of goodwill allocated to each CGU are as follows:
2019 2018
RM’000
RM’000
Goodwill
Property services segment 888 888

The recoverable amounts of the CGUs have been determined based on value in use calculations using cash flow projections from financial
budgets approved by management covering a five-year period. The pre-tax discount rate applied to the cash flow projections and the forecasted
growth rates used to extrapolate cash flows beyond the five-year period are as follows:
Growth rates Pre-tax discount rates

2019 2018 2019 2018

Property services segment 11.0% 11.0% 9.0% 9.0%

23. Trade and Other Receivables
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Current
Trade receivables
Third parties 48,478 44,569 - -
Less: Impairment (2,252) (1,449) - -
Trade receivables, net 46,226 43,120 - -

Other receivables
Income tax recoverable - 2,352 - -
Amounts due from subsidiaries - - 186,338 189,451
Deposits 15,064 7,456 188 187
Others 44,940 52,946 12,561 12,849
60,004 62,754 199,087 202,487
Less: Allowance for impairment

- Amounts due from subsidiaries - - (110,486) (111,676)
- Others (1,083) (712) (371) -
(1,083) (712) (110,857) (111,676)
Other receivables, net 58,921 62,042 88,230 90,811
Total trade and other receivables 105,147 105,162 88,230 90,811

142

23. Trade and Other Receivables (cont’d)
(a) Trade Receivables
Trade receivables are non-interest bearing and generally ranges from 14 to 90 days (2018: 14 to 90 days) terms. They are recognised at
their original invoice amounts which represent their fair values on initial recognition.
Ageing analysis of trade receivables

The ageing analysis of the Group’s trade receivables are as follows:

Group

2019 2018
RM’000
RM’000
Neither past due nor impaired 15,713 13,813

1 to 30 days past due not impaired 10,532 10,343
More than 121 days past due not impaired 3,001 1,136
30,513 29,307

Impaired 2,252 1,449
48,478 44,569
Receivables that are neither past due nor impaired
32% (2018: 31%) of trade receivables of the Group or RM15,713,000 (2018: RM13,813,000) that is neither past due nor impaired.
None of the Group’s and Company’s trade receivables that are neither past due nor impaired has been renegotiated during the financial
year.
Receivables that are past due but not impaired
The Group has trade receivables amounting to RM30,513,000 (2018: RM29,307,000) respectively that are past due at the reporting date
but not impaired.
Although these receivables have exceeded the credit terms granted to them, the directors are reasonably confident that all debts can be
recovered within the next 12 months.

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ANNUAL REPORT 2019

23. Trade and Other Receivables (cont’d)
(a) Trade Receivables (cont’d)
Receivables that are Impaired
The Group’s and Company’s trade receivables that are impaired at the reporting date and the movement of the allowance accounts used
to record the impairment are as follows:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Individually impaired
Trade receivables
- nominal amounts 2,252 1,449 - -
Allowance for impairment (2,252) (1,449) - -
- - - -

Movement in allowance accounts:

At 1 January 1,449 1,555 - -
Current year allowances (Note 10) 1,152 - - -
Written-off allowances (349) (106) - -
At 31 December 2,252 1,449 - -

Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that are in significant financial
difficulties and have defaulted on payments. These receivables are not secured by any collateral or credit enhancements.
(b)
Other Receivables

Amounts due from subsidiaries are unsecured, bears interest of 4% per annum and is repayable on demand.
Other receivables that are impaired
At the reporting date, debts due from subsidiaries that are in net liabilities position amounted to RM180,551,000 (2018: RM189,451,000)
of which provision for impairment of RM104,891,000 (2018: RM111,676,000) had been made.
Movement in allowance accounts:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
At 1 January 712 1,811 111,676 112,567

Charge for the year (Note 10) 398 - 371 -
Reversal of impairment (Note 7) (27) (13) (1,190) (891)
Written off of allowance - (1,086) - -
At 31 December 1,083 712 110,857 111,676
144

24. Other Current Assets
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Prepayments 14,240 2,335 290 148

Amount due from customers for contract 10,985 10,985 10,248 10,248
25,225 13,320 10,538 10,396
Less: Impairment
- Prepayments (1,928) (1,928) - -
- Amounts due from customers on contract (10,685) (10,685) (10,248) (10,248)
(12,613) (12,613) (10,248) (10,248)
Total other current assets 12,612 707 290 148
Gross amount due from customers for contract

Construction contract costs incurred to date 36,272 36,272 21,329 21,329
Attributable profits 7,710 7,710 6,640 6,640
43,982 43,982 27,969 27,969

Less: Progress billings (44,787) (44,787) (27,969) (27,969)
(805) (805) - -
Presented as:
Gross amount due from customers for contract work (805) (805) - -
25. Cash and Cash Equivalents
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Cash at banks and on hand 23,770 23,152 17 222

Short term deposits with licensed banks 6,944 3,968 3,005 -
Total cash and bank balances 30,714 27,120 3,022 222

Less: Bank overdrafts (Note 26) (2,753) (2,525) - -
Less: Deposits pledged with banks (2,862) (2,862) - -
Cash and cash equivalents 25,099 21,733 3,022 222

Included in deposits with licensed banks of the Group are deposits amounting to RM2,862,000 (2018: RM2,862,000) which are pledged as
security for bank facilities and bank guarantees.
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ANNUAL REPORT 2019

25. Cash and Cash Equivalents (cont’d)
Short-term deposits are made for varying periods of between one day and one year depending on the immediate cash requirements of the
Group and the Company, and earn interests at the respective short-term deposit fixed rates. The weighted average effective interest rates at
the reporting date for the Group and the Company are as below:
Group Company

2019 2018 2019 2018
% % % %

Licensed banks 2.51 2.59 2.89 2.92
26. Loans and Borrowings
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Current
Secured:
Term loan at BLR+2.0% p.a. 370 178 - -
Obligations under finance leases (Note 31(b)) 987 1,862 14 13
Bank overdrafts (Note 25) 2,753 2,525 - -
4,110 4,565 14 13
Unsecured:
Advances from a non-controlling shareholder
of a subsidiary 1,805 1,805 - -
Advance from ultimate holding company 2,022 3,185 2,022 3,185
3,827 4,990 2,022 3,185
7,937 9,555 2,036 3,198
Non-current
Secured:
Term loan at BLR+2.0% p.a. (Note 32(a)) 3,800 4,854 - -
Obligations under finance leases (Note 31(b)) 1,826 2,510 22 42
5,626 7,364 22 42
Total loans and borrowings (Note 34) 13,563 16,919 2,058 3,240
146

26. Loans and Borrowings (cont’d)
The remaining maturities of the loans and borrowings are as follows:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
On demand or within one year 7,937 9,555 2,036 3,198

More than 1 year and less than 2 years 3,526 4,940 22 21
More than 2 years and less than 5 years 1,176 1,248 - 21
5 years or more 924 1,176 - -
13,563 16,919 2,058 3,240
Advances from a non-controlling shareholder of a subsidiary
The advances from a non-controlling shareholder of a subsidiary, Uniphoenix Corporation Bhd. (in liquidation) are unsecured, non-interest
bearing and are repayable on demand.
Advance from holding company
The advance from the holding company is unsecured, bears interest of 2.5% per annum and is repayable on demand.
Obligations under finance leases
These obligations are secured by a charge over the leased assets (Note 14). The weighted average discount rate implicit in the lease is 5.5%
(2018: 5.5%) per annum.
27. Trade and Other Payables
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Current
Trade payables
Third parties 32,750 26,091 114 97
Other payables
Amounts due to subsidiaries - - 46,121 39,696
Other payables 19,680 35,166 3,178 4,732
Accruals 14,428 15,547 385 308
Others 61,116 62,669 2,994 5,726
95,224 113,382 52,678 50,462
Total trade and other payables (Note 34) 127,974 139,473 52,792 50,559
Add: Loans and borrowings (Note 26) 13,563 16,919 2,058 3,240
Total financial liabilities carried at amortised cost 141,537 156,392 54,850 53,799

147
ANNUAL REPORT 2019

27. Trade and Other Payables (cont’d)
(a) Trade Payables
These amounts are non-interest bearing. Trade payables are normally settled on 30 to 90 days (2018: 30 to 90 days) terms. Non-current
trade payables are repayable after 12 months on installment basis.
(b) Amounts Due to Subsidiaries
These amounts are unsecured, repayable on demand and non-interest bearing except for an amount of RM3,495,000 (2018:
RM3,495,000) which bears interest at the effective average rate of 4.0% (2018: 4.0%) per annum.
28. Share Capital, Revaluation Reserve, Capital Reserve, Merger Deficit and Exchange Reserve
Number of l------------------------------------------- Amount --------------------------------------------l

ordinary shares
Share capital Share capital Revaluation Capital Merger Exchange

(Issued and (Issued and reserve reserve deficit reserve
fully paid) fully paid)
‘000 RM’000 RM’000 RM’000 RM’000 RM’000
Group

Issued and fully paid
2019
At beginning 318,371 159,341 41,603 56 (18,568) (1,884)
Disposal of subsidiaries - - - (212) - -
Total comprehensive loss - - - - - (2,233)
At end of 2019 318,371 159,341 41,603 (156) (18,568) (4,117)
2018
At beginning 310,371 155,341 41,603 85 (18,568) (1,925)
Conversion of redeemable
convertible notes (“RCN”) 8,000 4,000 - (29) - -
Total comprehensive profit - - - - - 41
At end of 2018 318,371 159,341 41,603 56 (18,568) (1,884)
148

28. Share Capital, Revaluation Reserve, Capital Reserve, Merger Deficit and Exchange Reserve (cont’d)
Number of ordinary shares l---------------Amount---------------l

2019 2018 2019 2018
’000 ’000 RM’000 RM’000
Company

Issued and fully paid-up
At 1 January
Ordinary shares 318,371 310,371 159,341 155,341
Ordinary shares 318,371 310,371 159,341 155,341

Issuance of new shares under
- conversion of redeemable notes - 8,000 - 4,000
At 31 December 318,371 318,371 159,341 159,341
The Companies Act, 2016 (2016 Act) which came into effect from 31 January 2017 has repealed the Companies Act, 1965. The 2016 Act has
abolished the concept of par or nominal value of shares and hence, the share premium, capital redemption reserve and authorised capital
will be abolished. In accordance with Section 618 (2) of the 2016 Act, the amount standing to the credit of the share premium account has
become part of the Company’s share capital. There is no impact on the number of ordinary shares in issue of 309,371,000 or the entitlement
of the holders of the Company’s ordinary shares.
(a) Merger Deficit
This represents the difference between the consideration paid and the share capital of the acquired companies.
(b) Capital Reserve
This represents reserve arising from bonus issue by a subsidiary.
29. Redeemable Convertible Notes (“RCN”)
On 8 November 2017, the shareholders of the Company at the Extraordinary General Meeting approved the issuance of RCN with an aggregate
principal amount of up to RM150 million under a Redeemable Convertible Notes programme convertible into a maximum of 300 million
ordinary shares of minimum conversion price at RM0.50 each in the Company, representing approximately 39.26% of the enlarge issued share
capital. The RCN has a tenure of 3 years up to December 2020 (“Maturity Date”).
The proceeds from the issuance are utilised for financing of property development activities and working capital requirements as follows:
Proposed Utilised in Utilised in

utilisation 2017 2018 Balance
Purpose RM’000 RM’000 RM’000 RM’000
Financing of property development activities 77,000 - - 77,000

Working capital requirements 61,000 (2,161) (4,635) 54,204
Estimated expenses in relation to the Proposed Notes Issued 12,000 (839) (365) 10,796
150,000 (3,000) (5,000) 142,000

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ANNUAL REPORT 2019

29. Redeemable Convertible Notes (“RCN”) (cont’d)
The salient terms of the RCN are as follows:-
(a) The RCN bear interest from the respective dates on which they are issued and registered at the rate of 0.1% per annum, payable semi-
annually in arrears on 30 June and 31 December in each year with the last payment of interest being made on the Maturity Date;
(b) The price at which each Conversion Share shall be issued upon conversion of the Notes be:
(i) In respect of Tranche 1 Notes, 80% of the average closing price per Share on any three (3) consecutive business days as selected
by the Noteholder(s) during the forty-five (45) business days immediately preceding the relevant conversion date on which shares
were traded on the Main Market of Bursa Securities;
(ii) In respect of Tranche 2 Notes, 82% of the average closing price per Share on any three (3) consecutive business days as selected by
the Noteholder(s) during the forty-five (45) business days immediately preceding the relevant conversion date on which Shares
(iii) In respect of Tranche 3 Notes, 85% of the average closing price per Share on any three (3) consecutive business days as selected by
(iv) In respect of Tranche 4 Notes, 90% of the average closing price per Share on any three (3) consecutive business days as selected by
were traded on the Main Market of Bursa Securities.
(c) All RCN are convertible at the option of the Company (except Tranche 1), subject to the terms of the Redemption Option at any time
after the issue date of the Notes and up to the day falling seven (7) days prior to the Maturity Date;
(d) If the Conversion Price (as elected by the Noteholder(s)) is less than or equal to 65% of the average of the daily traded volume weighted
average price (VWAP) of the Company for the 45 market days prior to the relevant closing date in respect of each first sub-tranche of
the respective tranches of the Notes. The redemption option offers the Company a contractual right to seek redemption (as opposed to
acceding to the Subscriber’s right to convert of the Notes) in the event the market price is below a certain threshold as agreed between
the parties;
(e) The Subscriber no longer has a right of conversion and is only paid a redemption amount with a 8% per annum interest for the Notes in
the event the Company decides to redeem the Notes. The 65% threshold and 8% per annum interest are figures negotiated and accepted
by the Company and Subscriber from a commercial perspective in such an eventuality after the parties taking into consideration the
Subscriber’s cost of funding and expected yields;
(f)
Any RCN not converted at maturity date may be redeemed by the Company at 100% of their principal amount.

150

29. Redeemable Convertible Notes (“RCN”) (cont’d)
The liability component and equity component of the RCN are allocated at initial recognition as follows:-
Group/Company

2019 2018
RM’000 RM’000
At 1 January - 2,184
Issue during the financial year – liability component - 5,000
Conversion to ordinary shares during the financial year - (4,000)
Equity component on borrowing - (127)
Reversal of equity component on borrowing - 443
Repayment - (3,500)
At 31 December - -

On 7 November 2018, RCN was mutually terminated and RM3.5 million RCN was redeemed.
30. Related Party Transactions
(a) Sale and Purchase of Goods and Services
In addition to the related party information disclosed elsewhere in the financial statements, the following significant transactions
between the Group and related parties took place at terms agreed between the parties during the financial year:
Related Companies within Seaview Holdings Sdn. Bhd.:
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Interest on advances 34 52 34 52
Related companies within Damansara Realty Berhad:

Management fees payable to holding company - - 10,339 13,288
Interest income from subsidiary companies - - 2,968 2,966
Dividend income from subsidiary companies - - - 680
Intercompany sales 6,257 3,785 - -

151
ANNUAL REPORT 2019

30. Related Party Transactions (cont’d)
(b)
Compensation of Key Management Personnel
Group Company

2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Salaries and other emoluments 2,927 4,080 1,928 2,878

Defined contribution plan 410 537 292 384
3,337 4,617 2,220 3,262

31. Commitments
(a) Operating Lease Commitments – As Lessee
The Group has entered into commercial leases on office buildings. These leases have an average tenure of three years with no renewal
option or contingent rent provision included in the contract. There are no restrictions placed upon the Group by entering into these
leases.
Future minimum rentals payable under non-cancellable operating leases at the reporting date are as follows:
Group

2019 2018
RM’000 RM’000
Not later than 1 year 64,903 64,903

Later than 1 year but not later than 5 years 67,481 67,481
Later than 5 years - -
132,384 132,384

(b) Finance Lease Commitments

The Group has finance leases for certain motor vehicles and plant and machinery (Note 14). These leases do not have terms of renewal,
but have purchase options at nominal values at the end of the lease term.

152

31. Commitments (cont’d)
(b) Finance Lease Commitments (cont’d)
Future minimum lease payments under finance leases together with the present value of the net minimum lease payments are as
follows:
Group

2019 2018
RM’000 RM’000
Minimum lease payments:

Not later than 1 year 1,046 1,862
Later than 1 year but not later than 2 years 1,006 1,928
Later than 2 years but not later than 5 years 534 881
Later than 5 years 336 -
Total minimum lease payments 2,922 4,671

Less: Amounts representing finance charges (109) (299)
Present value of minimum lease payments 2,813 4,372

Present value of payments:

Not later than 1 year 989 1,862
Later than 1 year but not later than 2 years 983 2,196
Later than 2 years but not later than 5 years 514 314
Later than 5 years 327 -
Present value of minimum lease payments 2,813 4,372

Less: Amount due within 12 months (Note 26) (987) (1,862)
Amount due after 12 months (Note 26) 1,826 2,510
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ANNUAL REPORT 2019

32. Fair Value of Financial Instruments
(a) Fair Value of Financial Instruments by Classes That are not Carried at Fair Value and Whose Carrying Amounts are not
Reasonable Approximation of Fair Value
Group

Carrying
Amount Fair value
RM’000 RM’000
At 31 December 2019
Financial liabilities:
Non-current
Loans and borrowings (non-current) (Note 26)
- Term loan 3,800 -

At 31 December 2018
Non-current
Loans and borrowings (non-current) (Note 26)
- Term loan 4,854 -

(b) Determination of Fair Value
Financial instruments 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
Trade and other receivables (current) 23
Loans and borrowings (current) 26
Trade and other payables (current) 27

The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values due to their short-term
nature.
The carrying amounts of the current portion of loans and borrowings are reasonable approximations of fair values due to the insignificant
impact of discounting.
The fair values of non-current loans and borrowings are estimated by discounting expected future cash flows at market incremental
lending rate for similar types of lending, borrowing or leasing arrangements at the reporting date.
154

32. Fair Value of Financial Instruments (cont’d)
(c) Fair Value Measurement
The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities.
Quantitative Disclosures Fair Value Measurement Hierarchy for Asset as at 31 December 2019

Carrying
amount Fair value
Fair value disclosures Date of valuation RM’000 RM’000
Investment properties (Note 17) 31 December 2016 70,462 82,515

Fair value disclosure of investment properties are categorised in Level 2 within the fair value hierarchy where the valuation involved
significant directly or indirectly observable inputs.
33. 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 and interest rate risk.
The Board of Directors reviews and agrees policies and procedures for the management of these risks. The audit committee 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.
The following sections provide details regarding the Group’s and 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 risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The
Group’s and the Company’s exposure to credit risk arises primarily from trade and other receivables. For other financial assets (including
cash and bank balances), the Group and the Company minimise credit risk by dealing exclusively with high credit rating counterparties.
The Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The
Group trades only with recognised and creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit
terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result
that the Group’s exposure to bad debts is not significant.
Exposure to credit risk
At the reporting date, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each
class of financial assets recognised in the statement of financial position.
Information regarding credit enhancements for trade and other receivables is disclosed in Note 23.

155
ANNUAL REPORT 2019

33. Financial Risk Management Objectives and Policies (cont’d)
(a) Credit Risk (cont’d)
Credit Risk Concentration Profile
The Group determines concentrations of credit risk by monitoring the business segment of its trade receivables on an ongoing basis. The
credit risk concentration profile of the Group’s trade receivables at the reporting date are as follows:
Group
2019 2018

RM’000 % in total RM’000 % in total
By business segments:

Property development 18,940 41 5,975 14
Integrated facility management 25,985 56 36,398 84
Project management consultancy 1,301 3 747 2
46,226 100 43,120 100

Financial Assets that are Neither Past Due nor Impaired
Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note 23. Deposits with banks
and other financial institutions that are neither past due nor impaired are placed with or entered into with reputable financial institutions.
Financial Assets that are Either Past Due or Impaired
Information regarding financial assets that are either past due or impaired is disclosed in Note 23.
(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.
156

(b) Liquidity risk (cont’d)
Analysis of Financial Instruments by Remaining Contractual Maturities
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 One to Over five
one year five years years Total
RM’000 RM’000 RM’000 RM’000
Group
At 31 December 2019
Trade and other payables 127,974 - - 127,974
Loans and borrowings 7,937 4,702 924 13,563
Total undiscounted financial liabilities 135,911 4,702 924 141,537
At 31 December 2018
Loans and borrowings 9,555 6,188 1,176 16,919
Total undiscounted financial liabilities 149,028 6,188 1,176 156,392

Company
At 31 December 2019
Loans and borrowings 2,036 22 - 2,058
Total undiscounted financial liabilities 54,828 22 - 54,850

At 31 December 2018
Loans and borrowings 3,198 42 - 3,240
Total undiscounted financial liabilities 53,757 42 - 53,799

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ANNUAL REPORT 2019

(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 the reporting date, the
Group and Company do not have floating rate borrowings.
(d) Foreign Currency Risk
Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates.
The Group has transactional currency exposures arising from sales or purchases that are denominated in a currency other than the
respective functional currencies of the Group entities, primarily RM, Singapore Dollar and Philippines Peso. The management believes
that the foreign exchange risk is minimal.
It is not the Group’s policy to hedge its transactional foreign currency risk exposure.
34. 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 shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. No changes were made in
the objectives, policies or processes during the years ended 31 December 2019 and 31 December 2018.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to keep the
gearing ratio below 70%. The Group includes within net debt, loans and borrowings, trade and other payables, less cash and bank balances.
Capital includes equity attributable to the owners of the parent.
Group Company

Note 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000
Loans and borrowings 26 13,563 16,919 2,058 3,240

Trade and other payables 27 127,974 139,473 52,792 50,559
Cash and cash equivalents 25 (30,714) (27,120) (3,022) (222)
Net debt 110,823 129,272 51,828 53,577

Equity attributable to the owners of the parent,
representing total capital 188,983 170,178 67,950 66,412
Capital and net debt 299,806 299,450 119,778 119,989
Gearing ratio 37% 43% 43% 45%

158

35. Segment Information
For management purposes, the Group is organised into business units based on their products and services, and has four reportable operating
segments as follows:
(i) Property and Land Development (“PLD”) - the development of residential and commercial properties.
(ii) Integrated Facility Management (“IFM”) - provision of property services comprising of general services, parking operation, trading of
parking equipments and the provision of related consultancy services.
(iii) Project Management Consultancy (“PMC”) - facility management, project management and consultant, construction management,
energy management services, hospital planning, maintenance services and manpower services.
Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments.
Management 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 operating profit or loss which, in certain respects as explained in the
table below, is measured differently from operating profit or loss in the consolidated financial statements. Group financing (including finance
costs) and income taxes are managed on a group basis and are not allocated to operating segments.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
(a) Inter-segment revenues are eliminated on consolidation.
(b) Additions to non-current assets consist of:
2019 2018
Note RM’000
RM’000
Property, plant and equipment 14 4,611 4,358
4,611 4,358

159
34. Segment Information (cont’d)
160
Integrated facility Property and land Project management Adjustments and Per consolidated
Holding Company management development consultancy Others eliminations financial statements
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue:
ANNUAL REPORT 2019
External customers - - 260,620 285,483 30,948 11,192 1,891 7,450 - - - - 293,459 304,125
Inter-segment 10,339 6,970 3,473 3,796 - - 2,439 - 347 - (16,598) (10,766) - -
Total revenue 10,339 6,970 264,093 289,279 30,948 11,192 4,330 7,450 347 - (16,598) (10,766) 293,459 304,125
Results:
Interest income 13 26 372 195 9 43 - 26 - - - - 394 290
Dividend income - 680 - - - - - - - - - (680) - -
Depreciation and
amortisation 571 115 2,384 1,871 58 58 1 118 1 1 - - 3,015 2,164
Interest expense 122 55 2,557 1,188 4 7 - - - 2 - - 2,683 1,252

Share of loss of associate
company - - - - 11,500 - - - - - - - 11,500 -
Tax expense 64 133 1,469 6,420 1,143 (18) 122 141 - 101 - (202) 2,798 6,575
Segment profit/(loss) 1,538 17,679 8,569 12,981 13,113 (2,502) 371 600 695 25 (1,492) (9,242) 22,794 19,541
Assets:
Additions/(disposal) to
non-current assets 30 28 10,604 4,327 - - - 3 - - - - 10,634 4,358
Segment assets 124,596 120,275 199,918 142,938 261,655 237,697 5,545 754 55,264 39,971 (223,511) (208,674) 423,467 332,961
Segment liabilities 56,646 53,863 165,128 115,811 198,986 188,140 17,282 12,905 116,372 101,421 (324,297) (314,008) 230,117 158,132

36. Material Litigations
(a) Om Cahaya Mineral Asia Berhad (“OmC” or the “Plaintiff”) v Damansara Realty (Pahang) Sdn. Bhd. (“DRP” or the “Defendant”)
On Appeal against KLHC’s Trial Decision (“Appeal 1”) - Liability Appeal
Following the KLHC Trial Decision on 19 Oct 2018, DRP had filed an appeal in the Court of Appeal (“COA”) on 5 November 2018. The
parties had also updated the COA on the status of Record of Appeal during the case management on 10 December 2018.
However, during numerous case managements held between 10 December 2018 to 20 November 2019, the parties had updated the
COA on status of the Grounds of Judgment (“GOJ”) that is still pending in the KLHC. DRP had also written to the KLHC several reminder
on their request of the GOJ sent on 13 November 2018, 22 November 2018, 11 January 2019, 30 January 2019, 21 February 2019,
12 March 2019, 9 April 2019, 7 May 2019, 8 July 2019, 9 July 2019 and 28 August 2019.
During the case management on 20 November 2019, the COA in noting the same had fixed a case management on 30 January 2020 for
the parties to update the COA on the status of the GOJ.
During the case management on 30 January 2020, which was heard together with the case management for appeal against KLHC’s Trial
Decision (“Appeal 2 / Assessment Appeal”) as stated below, the COA noted on the receipt of the GOJ from the KLHC and the fact that the
appeal herein (“Liability Appeal”) and the Assessment Appeal are related and to be heard together. As such, the COA directed the parties
to file their Common Core Bundle, chronology of facts, written submission, and executive summary by 16 June 2020, and further fixed
the Hearing for both appeals on 30 June 2020.
On Appeal against KLHC’s Trial Decision (“Appeal 2”) - Assessment Appeal
During the case management on 4 December 2019, DRP informed the COA that the KLHC has released their GOJ, as notified on 3
December 2019. During the case management on 9 January 2020, the Appellant had also updated the COA on the filing of Supplementary
Record of Appeal as directed by the COA.
Further, during the case managements on 9 January 2020, 14 January 2020, 28 January 2020, and 30 January 2020, the Appellant had
requested for the appeal herein (“Assessment Appeal”) and the Liability Appeal (as stated above) to be heard on the same date as both
appeals came from the decisions out of the same case in KLHC, which have the same facts, parties, solicitors, GOJ and documents as
provided in the Record of Appeal. The COA, in noting the same, directed the parties to file their Common Core Bundle, chronology of
facts, written submission, and executive summary by 16 June 2020, and further fixed the Hearing for both appeals on 30 June 2020.
(b)
Express Rail Link Sdn Bhd (“ERL” or the “Plaintiff”) v Semasa Parking Sdn Bhd (“SPSB” or the “Defendant”) & Metro Parking (M) Sdn Bhd
(“MPM” or the “Third Party”)
During the case management on 30 December 2019, the Third Party has informed the Court of MPM’s application for leave to amend
MPM’s Statement of Defence (“Amendment Application”) and the status of its service to all parties. The Court then gave the filing
directives of Affidavits in Reply and Written Submission to all parties and fixed the Hearing date of the Amendment Application on 24
February 2020.
The Case Management which is fixed on 21 February 2020 and the Full Trial dates which are fixed 22 April 2020 to 24 April 2020 are
maintained.
(c) Southern Flame Sdn Bhd (“SF/Plaintiff”) v Metro Parking (M) Sdn Bhd (“MPM/Defendant”)
On 8 March 2017, SF had initiated legal suit against MPM at the Kuala Lumpur High Court for the taking of MPM’s accounts on the
monthly car park collection at the South Wing, Johor Bahru Sentral, Johor Bahru from May 2011 onwards and thereafter for the payment
sum allegedly due and payable of taking such accounts.
On 14 March 2019, the High Court had entered judgment in favour of SF for taking of all accounts for the period commencing from
1 May 2011 until 31 May 2012 and thereafter the payment by MPM to SF of the sums found due and payable on the taking of such
accounts. The High Court also orders for the sums payable to be assessed by the Court, which Hearing of the same is fixed on 31 March
2020 (“Assessment of Damages”), and costs of RM30,000 to be paid by MPM to SF after the Hearing of the Assessment of Damages
(“the High Court’s Decision”).
161
ANNUAL REPORT 2019

36. Material Litigations (cont’d)
(c) Southern Flame Sdn Bhd (“SF/Plaintiff”) v Metro Parking (M) Sdn Bhd (“MPM/Defendant”) (cont’d)
On 18 March 2019, MPM appealed against the High Court’s Decision at the Court of Appeal (“COA”). On 18 February 2020 and upon
hearing the appeal by MPM, the COA had allowed MPM’s appeal in part as follows: -
(i) MPM to account for the sums payable from 1 May 2011 to 31 November 2011;
(ii) payment to be accounted from 1 December 2011 to 31 May 2012 is set aside; and
(iii) costs of RM10,000 to be paid by SF to MPM.
Following from the COA’s Decision above, the High Court maintains the Hearing of Assessment of Damages on 31 March 2020. While
preparing for the Hearing, the parties are in the midst of negotiating for an amicable settlement which is expected to be concluded prior
to the said Hearing.
37. Subsequent Event
The world is encountering a pandemic of COVID-19 globally since the beginning of Year 2020. With the spread of the virus into all of Malaysian
States and Federal Territories, the Malaysian government announced on 16 March 2020 to implement a “Movement Control Order (“MCO”)
to curb the rising cases in the country.
Based on preliminary assessment, the potential financial effects from COVID-19 pandemic to the Group’s and the Company’s financial
performance for the next financial period 2020 is not significant. The Group and Company will continue to monitor the situation, reassess the
financial position, take appropriate and timely actions to minimise the impact.

162
OTHER List of Properties Shareholdings Shareholdings
INFORMATION Held by the Group Statistics Statistics-Warrant
List of Properties Held by the Group

As at 31 December 2019
Net Book
Age of Value Date of
Title / Particulars of Location Tenure Area Description Building RM’000 Valuation
Lot Nos. 17423, 17424, Freehold 504.29 9 parcels of agricultural land

17427, 17431, 17434, 17439 Acres with development potential
Mukim Sungai Karang
Kuantan, Pahang
Lot Nos. 5995, 5997 & 5998

Mukim Beserah
Kuantan, Pahang
Lot Nos. 2389 to 2402 Freehold 0.56 14 parcels of vacant subdivided

Mukim of Beserah Acres commercial terraced shop/office
Kuantan Pahang plot 31 December
N/A 37,386
Lot Nos. 4139 to 4160 and Freehold 2.63 49 parcels of subdivided 2019
4162 to 4188 Acres residential terrace/
Mukim of Beserah semi-detached plot
Kuantan, Pahang
Lot Nos. 2189 and 2190 Freehold 0.27 2 parcels of vacant subdivided
Mukim of Beserah Acres residential semi-detached plot
Kuantan, Pahang
Lot No. 2388 Freehold 1.013 A parcel of commercial land

Mukim of Beserah Acres designated for petrol station use
Kuantan, Pahang
Levels 14, Menara Safuan Freehold 5,122 Office building 28 years 1,419 5 December
No. 80, Jalan Ampang sq. ft. 2019
Kuala Lumpur
No. 7, Jalan Hujung Permatang Freehold 1,600 Double storey shophouse N/A 147 7 December
Satu 26/25A, Section 26 sq. ft. 2019
40000 Shah Alam
Selangor
No. 47, Blok J, Jalan Aliff 4 Freehold 4,814 Shop office N/A 1,639 2 December
Taman Damansara Aliff sq. ft. 2019
81200 Johor Bahru, Johor
No. 33, Blok H, Jalan Aliff 4 Freehold 4,814 Shop office N/A 1558 2 December
Taman Damansara Aliff sq. ft. 2019
81200 Johor Bahru, Johor
163
ANNUAL REPORT 2019
List of Properties Held by the Group

As at 31 December 2019 (cont’d)
Net Book
Age of Value Date of
Title / Particulars of Location Tenure Area Description Building RM’000 Valuation
PTD 170455 - PTD 170522 Freehold 128,508 68 parcels of vacant subdivided

Mukim Tebrau, Johor Bahru, commercial terraced shop/office
Johor plot
PTD 170326 - PTD 170373 Freehold 87,819 48 parcels of vacant subdivided

Mukim Tebrau, Johor Bahru commercial terraced shop/office
Johor plot
PTD 153151 Freehold 67,213 A parcel of commercial land

Mukim Tebrau, Johor Bahru
Johor
PTD 162934, Freehold 23,180 A parcel of commercial land

3 November
Mukim Tebrau, Johor Bahru N/A 69,043
2016
Johor
PTD 153149 Freehold 8,078 A parcel of “Building” land

Mukim Tebrau, Johor Bahru designated for kindergarden
Johor use
PTD 153256 Freehold 10,692 A parcel of “Building” land

Mukim Tebrau, Johor Bahru designated for kindergarden
Johor use
PTD 138523 Freehold 43,560 A parcel of commercial land

Mukim Tebrau, Johor Bahru designated for petrol station
Johor use
The above properties are valued at cost. These properties will be revalued at recoverable amount if there is any significant impairment.
164
Shareholdings Statistics
As at 14 May 2020
TOTAL NUMBER OF ISSUED SHARES OF THE COMPANY 318,371,260 ordinary shares, with voting right of one vote per
ordinary share
ANALYSIS BY SIZE OF HOLDINGS
Size of Holdings No. of Holders % No. of Shares %

1 - 99 1,401 4.276 52,818 0.016
100 – 1,000 20,565 62.768 11,472,840 3.603
1,001 – 10,000 9,585 29.255 27,665,030 8.689
10,001 – 100,000 1,083 3.305 32,395,271 10.175
100,001 – 15,918,562 (*) 127 0.387 58,884,389 18.495
15,918,563 and above (**) 2 0.006 187,900,912 59.019
TOTAL 32,763 100.000 318,371,260 100.00
Remark : * - Less than 5% of issued shares

** - 5% and above of issued shares
LIST OF TOP 30 HOLDERS
(Without aggregating securities from different securities accounts belonging to the same registered holder)
No Name Holdings %
1. Seaview Holdings Sdn. Bhd. 157,816,580 49.569
2. Sindora Berhad 30,084,332 9.449
3. Kulim (Malaysia) Berhad 13,879,926 4.359
4. UOB Kay Hian Nominees (Asing) Sdn. Bhd. 4,799,800 1.507
Exempt an for UOB Kay Hian Pte Ltd (A/C Clients)
5. Datuk Tay Hock Tiam 3,410,000 1.071
6. Datin Leung Kit Man 1,509,068 0.473
7. Kenanga Nominees (Tempatan) Sdn. Bhd. 1,050,000 0.329
Pledged Securities Account for Khaled bin Mohamad Aroff
8. Harun bin Kassim 1,000,000 0.314
9. Kenanga Nominees (Tempatan) Sdn. Bhd. 949,200 0.298
Pledged Securities Account for Muhamad Hapiz bin Othman
10. Wong Ten Yong 919,900 0.288
11. Tan Beng Nee 914,000 0.287
12. Kenanga Nominees (Asing) Sdn. Bhd. 908,100 0.285
Exempt an for Phillip Securities Pte Ltd (Client Account)
13. Esther Chong Wen Yi 900,000 0.282
14. Kek Hing Kok 820,000 0.257
15. Inter-Pacific Equity Nominees (Tempatan) Sdn. Bhd. 770,000 0.241
Pledged Securities Account for Soh Jin Gee
165
ANNUAL REPORT 2019
As at 14 May 2020 (cont’d)
No Name Holdings %
16. Affin Hwang Investment Bank Berhad 680,000 0.213
IVT (SKM)
17. M&A Nominee (Tempatan) Sdn. Bhd. 638,900 0.200
Pledged Securities Account for Derrick Wee Hoe Eng ( JB)
18. Public Nominees (Tempatan) Sdn. Bhd. 600,100 0.188
Pledged Securities Account for Tan Tian Sang @ Tan Tian Song (E-PPG)
19. Ng Say Piyu 510,000 0.160
20. Rashid bin Sihes 505,800 0.158
Pledged Securities Account for Tam Seng @ Tam Seng Sen (E-PTS)
22. Datuk Tay Hock Tiam 498,025 0.156
23. Ong Seng Chye 490,500 0.154
24. PMB Investment Berhad 450,000 0.141
25. Selina Ng Li Yin 416,000 0.130
26. Ah Hen Hing 383,100 0.120
27. Yep Meng Fei 377,300 0.118
Pledged Securities Account for Chew Thian Hock (E-JPR)
29. Soon Ah Seng 372,800 0.117
30. Ho Jia Luen 370,000 0.116
Total no. of holders : 30

Total holdings : 226,897,731
Total percentage (%) : 71.268
166
SUBSTANTIAL SHAREHOLDERS
Name Direct Indirect

No. of % No. of %
shares held held shares held Held
Seaview Holdings Sdn. Bhd. 157,816,580 49.57 - -
Dato’ Daing A Malek bin Daing A Rahaman - - 157,816,580 #
49.57
Sindora Berhad 30,084,332 9.45 - -
Kulim (Malaysia) Berhad 13,879,926 4.36 30,084,332 1
9.45
Johor Corporation - - 43,964,258 2
13.81
Notes:-
1
Deemed interested by virtue of its shareholdings in Sindora Berhad pursuant to Section 7 of the Act.
2
Deemed interested by virtue of its shareholdings in Kulim (Malaysia) Berhad pursuant to Section 7 of the Act.
#
Dato’ Daing A Malek bin Daing A Rahaman deemed interested by virtue of his shareholdings in Seaview Holdings Sdn. Bhd. pursuant to Section 8 of
the Act.
ANALYSIS OF SHAREHOLDERS
Size of Holdings No. of Holders % No. of Shares %

Malaysian - Bumiputra 16,703 50.981 235,267,296 73.893
- Others 15,767 48.124 73,168,344 22.980
Foreigner 293 0.894 9,935,620 3.119
TOTAL 32,763 100.00 318,371,260 100.00
DIRECTORS’ SHAREHOLDINGS
No Name Holdings %
1. YB Dato’ Ahmad Zahri bin Jamil 20,000 0.006
2. Haji Abdullah bin Md Yusof - -
3. YBhg Dato’ Mohd Aisom bin Omar - -
4. Shahrizam bin A Shukor - -
5. Vinie Chong Pui Ling - -
Summary
Total no. of holder : 1

Total holdings : 20,000
167
ANNUAL REPORT 2019
Shareholdings Statistics-Warrant
As at 14 May 2020
ANALYSIS BY SIZE OF HOLDINGS-WARRANT
Size of Holdings No. of Holders % No. of Warrants %

1 - 99 1,524 4.726 42,303 0.027
100 – 1,000 26,021 80.705 9,809,864 6.341
1,001 – 10,000 4,250 13.181 11,175,586 7.224
10,001 – 100,000 389 1.206 11,436,650 7.393
100,001 – 7,734,276 (*) 56 0.173 28,270,697 18.276
7,734,277 and above (**) 2 0.006 93,950,456 60.736
TOTAL 32,242 100.000 154,685,556 100.00
Remark : * - less than 5% of issued warrants

** - 5% and above of issued warrants
LIST OF TOP 30 HOLDERS-WARRANT
(Without aggregating securities from different securities accounts belonging to the same registered holder)
No Name Holdings %
1. Seaview Holdings Sdn. Bhd. 78,908,290 51.012
2. Sindora Berhad 15,042,166 9.724
3. Kulim (Malaysia) Berhad 6,939,963 4.486
4. Maybank Securities Nominees (Tempatan) Sdn. Bhd. 2,890,000 1.868
Pledged Securities Account for Looi Lee Yee (Margin)
5. Datuk Tay Hock Tiam 1,600,000 1.034
6. UOB Kay Hian Nominees (Asing) Sdn. Bhd. 1,533,060 0.991
Exempt an for UOB Kay Hian Pte Ltd (A/C Clients)
7. Eng Zer Jun 1,024,600 0.662
8. Datin Leung Kit Man 739,534 0.478
9. Tiew Soon Kuan 700,000 0.452
Pledged Securities Account for Tan Seng Yong
11. Meor Yaccob bin Hassan 650,000 0.420
12. Asmizan bin Huzaini 642,300 0.415
13. Sam Fong @ Chan Sam Fong 600,000 0.387
Rakuten Trade Sdn Bhd for Muhammad Ali bin Yahya
15. Maybank Nominees (Tempatan) Sdn. Bhd. 500,000 0.323
Mohamad Alfalah bin Zakaria
168
OTHER Shareholdings Shareholdings Notice of 58th Annual
INFORMATION Statistics Statistics-Warrant General Meeting
No Name Holdings %
Pledged Securities Account for Muhamad Hapiz bin Othman
17. Mohd Radzi bin Hanafi 456,700 0.295
18. Wong Jia Yin 427,000 0.276
19. Tan Seng Yong 402,000 0.259
20. Tan Beng Nee 387,500 0.250
21. Puteh Hanis binti Adlan 356,300 0.230
Rakuten Trade Sdn Bhd for Hong Boon Chong
23. Inter-Pacific Equity Nominees (Tempatan) Sdn. Bhd. 292,000 0.188
Pledged Securities Account for Soh Jin Gee
24. Ng Kang Kun 291,200 0.188
25. Rashid bin Sihes 283,900 0.183
26. Ng Say Piyu 255,000 0.164
27. Datuk Tay Hock Tiam 249,012 0.160
28. Ong Seng Chye 245,250 0.158
29. Selina Ng Li Yin 208,000 0.134
30. Pun Kwee Hiong 200,000 0.129

Total holdings : 117,753,475
SUBSTANTIAL SHAREHOLDERS-WARRANT
Name Direct Indirect

No. of % No. of %
warrants held held warrants held Held
Seaview Holdings Sdn. Bhd. 78,908,290 51.01 - -
Dato’ Daing A Malek bin Daing A Rahaman - - 78,908,290 #
51.01
Sindora Berhad 15,042,166 9.72 - -
Kulim (Malaysia) Berhad 6,939,963 4.49 15,042,166 1
9.72
Johor Corporation - - 21,982,129 2
14.21
Notes:-
1
Deemed interested by virtue of its shareholdings in Sindora Berhad pursuant to Section 7 of the Act.
2
Deemed interested by virtue of its shareholdings in Kulim (Malaysia) Berhad pursuant to Section 7 of the Act.
#
Dato’ Daing A Malek bin Daing A Rahaman deemed interested by virtue of his shareholdings in Seaview Holdings Sdn. Bhd. pursuant to Section 8 of
the Act.
169
ANNUAL REPORT 2019
ANALYSIS OF SHAREHOLDERS-WARRANT
Size of Holdings No. of Holders % No. of Warrants %

Malaysian - Bumiputra 16,630 51.579 121,202,723 78.352
- Others 15,332 47.553 30,094,575 19.453
Foreigner 280 0.868 3,388,258 2.189
TOTAL 32,242 100.00 154,685,556 100.00
DIRECTORS’ SHAREHOLDINGS-WARRANT
No Name Holdings %
1. YB Dato’ Ahmad Zahri bin Jamil 10,000 0.006
2. Haji Abdullah bin Md Yusof - -
3. YBhg Dato’ Mohd Aisom bin Omar - -
4. Shahrizam bin A Shukor - -
5. Vinie Chong Pui Ling - -
Summary

Total holdings : 10,000
170
Annual
Notice of
58th
General Meeting
NOTICE IS HEREBY GIVEN THAT the 58th Annual General Meeting (AGM) of Damansara Realty Berhad [196001000367(4030-D)] (DBhd or the
Company) will be held at Grand Ballroom, Level 1, Forest City Phoenix International Golf Hotel, Jalan Persiaran 5, Forest City Golf Resort, 81550
Gelang Patah, Johor, Malaysia on Wednesday, 26 August 2020 at 11.30 a.m. to transact the following business:
AGENDA
1. To receive the Audited Financial Statements for the financial year ended 31 December 2019 together with the (Explanatory Note 1)
Directors and Auditors Report thereon.
2. To consider and if thought fit, to pass the following Ordinary Resolutions in accordance with the Company’s
Constitution:
(a) “ THAT YB Dato’ Ahmad Zahri bin Jamil, the Director retiring by rotation in accordance with the Article Resolution 1
68.3 of the Company’s Constitution, be and is hereby re-elected as a Director of the Company”.
“ THAT YBhg. Dato’ Mohd Aisom bin Omar, the Director retiring by rotation in accordance with the Article Resolution 2
(b)
68.3 of the Company’s Constitution, be and is hereby re-elected as a Director of the Company”.
3. To approve the payment of Directors’ Fees to Non-Executive Directors (NEDs) amounting to RM480,000 for the Resolution 3
period from 27 August 2020 until the next AGM of the Company in 2021.
4. To approve the payment of Directors’ Remunerations (excluding Directors’ Fees) to the Non-Executive Directors Resolution 4
up to an amount of RM150,000.00 with effect from 27 August 2020 until the next AGM of the Company in (Explanatory Note 2)
2021.
5. To re-appoint Messrs. Jamal, Amin & Partners as the Company’s Auditors for the financial year ending Resolution 5
31 December 2020 until the conclusion of the next AGM and to authorise the Directors to determine their
remuneration.
AS SPECIAL BUSINESS
To consider and, if thought fit, pass the following resolutions:
6. ORDINARY RESOLUTION
AUTHORITY TO ALLOT SHARES IN GENERAL PURSUANT TO SECTIONS 75 AND 76 OF THE COMPANIES Resolution 6
ACT, 2016 (the Act) (Explanatory Note 3)
“THAT pursuant to Sections 75 and 76 of the Companies Act, 2016 and subject to the approvals of the relevant
governmental/regulatory authorities, the Directors be and are hereby empowered to issue shares in the capital
of the Company from time to time and upon such terms and conditions and for such proposes as the Directors,
may at their absolute discretion deem fit, provided that the aggregate number of shares issued pursuant to this
resolution does not exceed 20% of the issued share capital of the Company for the time being, and that the
Directors be and are hereby also empowered to obtain the approval from the Bursa Malaysia Securities Berhad
for the listing and quotation of the additional shares so issued and that such authority shall continue to be in
force until the conclusion of the next AGM of the Company.”
171
ANNUAL REPORT 2019
Notice of 58th Annual General Meeting

(cont’d)
7. ORDINARY RESOLUTION
PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR THE EXISTING RECURRENT RELATED Resolution 7
PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE (Proposed Shareholders’ Mandate) (Explanatory Note 4)
THAT, subject always to the Act and Main Market Listing Requirements, of Bursa Malaysia Securities Berhad,
approval be and is hereby given to the Company and/or its subsidiary companies to renew the mandate for
the existing Recurrent Related Party Transactions of a Revenue or Trading Nature from the shareholders of the
Company for the Company and/or its subsidiary companies to enter into all arrangements and/or transactions
involving the interest of Directors, substantial shareholders or persons connected with Directors and/or
substantial shareholders of the Company and/or its subsidiary companies (Related Parties) as outlined in the
Section 2.2 of the Circular to Shareholders dated 11 June 2020 (Circular to Shareholders), which are necessary
for the day-to-day operations of the Company and/or its subsidiary companies, and are within the ordinary
course of business of the Company and/or its subsidiary companies (Proposed Shareholders’ Mandate), subject
further to the following:
i) the transactions are in the ordinary course of business for the day-to-day operations and normal
commercial terms which are not more favorable to the related parties than those generally available to
the public and not to the detriment of the minority shareholders; and
ii) disclosure will be made in the Annual Report of the aggregate value of transactions conducted pursuant
to the Proposed Shareholders’ Mandate during the financial year including amongst others, the following
information: -
a) the type of the Recurrent Related Party Transactions made: and

b) the names of the related parties involved in each type of the Recurrent Related Party Transaction
entered into and their relationship with the Company;
AND THAT such approval shall continue to be in force until:-
i) the conclusion of the next AGM of the Company following the General Meeting at which the Proposed
Shareholders’ Mandate was passed, at which time it will lapse, unless by a resolution passed at the
meeting, the authority is renewed;
ii) the expiration of the period within which the next AGM after this date is required to be held pursuant to
Section 340 (2) of the Companies Act, 2016 (the Act) (but shall not extend to such extensions as may be
allowed pursuant to Section 340 (4) of the Act); or
iii) revoked or varied by ordinary resolution passed by the shareholders of the Company in a general meeting;
whichever is earlier.
AND FURTHER THAT the Directors of the Company be authorised to complete and do all such acts and things
(including executing all such documents as may be required) as they may consider expedient or necessary or
give effect to the Proposed Shareholders’ Mandate
172

(cont’d)
8. SPECIAL RESOLUTION 1
PROPOSED CHANGE OF THE COMPANY’S NAME FROM “DAMANSARA REALTY BERHAD” TO Resolution 8
“DAMANSARA HOLDINGS BERHAD” (PROPOSED CHANGE OF THE COMPANY’S NAME) (Explanatory Note 5)
“THAT, the name of the Company be hereby changed from “Damansara Realty Berhad” to “Damansara
Holdings Berhad” with effect from the date of the Notice of Registration of New Name issued by the Companies
Commission of Malaysia to the Company.
AND THAT the Constitution of the Company be hereby amended to substitute all references in the Constitution
to “Damansara Realty Berhad”, wherever the same may appear, with “Damansara Holdings Berhad”, subject to
and upon issuance of the Notice of Registration of New Name by the Companies Commission of Malaysia to
the Company.
AND THAT the Directors and/or the Secretary of the Company be and are hereby authorised to take all such
necessary steps and do all acts and things to give effect to the Proposed Change of the Company’s Name with
full power to assent to any conditions, modifications, variations and/or amendments as may be required by the
relevant authorities.”
9. To transact any other business of the Company of which due notice shall have been given in accordance with
the Companies Act, 2016
By Order of the Board

WAN RAZMAH BINTI WAN ABD RAHMAN

(MAICSA 7021383)
(SSM Practising Certificate No. 202008002111)
Secretary
Venue : Kuala Lumpur

Dated : 11 June 2020
173
ANNUAL REPORT 2019

(cont’d)
EXPLANATORY NOTES
1. AUDITED FINANCIAL STATEMENTS FOR FINANCIAL YEAR
The Audited Financial Statements laid at this meeting pursuant to Section 340(1)(a) of the Companies Act, 2016 are meant for discussion only.
It does not require shareholders’ approval, and therefore, will not be put for voting.
2. ORDINARY RESOLUTION 4 – TO APPROVE THE REMUNERATION FOR NON-EXECUTIVE DIRECTORS
Directors’ Remuneration (excluding Directors’ Fees) comprises the allowance and other emoluments payable to the Chairman and other Non-
Executive Directors is as set out below:
Items Chairman NEDs
Monthly Fixed Allowance RM5,000 -
Other Benefits Travelling and other claimable Travelling and other claimable
benefits benefits
Meeting Allowance (per meeting):
• Board Meeting RM1,000 RM1,000
• Board Audit Committee Meeting - RM1,000
• Board Nomination and Remuneration Committee Meeting - RM1,000
• Board Risk Management Committee Meeting - RM1,000
• Tender Board Committee Meeting - RM1,000
• Annual General Meeting RM1,000 RM1,000
• Extraordinary General Meeting RM1,000 RM1,000
3. ORDINARY RESOLUTION 6 – AUTHORITY TO ALLOT SHARES PURSUANT TO SECTIONS 75 AND 76 OF THE COMPANIES ACT, 2016
The proposed Ordinary Resolution 6 is the renewal of the mandate obtained from the members at the last AGM (the previous mandate). The
proposed Ordinary Resolution 6, if passed, would provide flexibility to the Directors to undertake fund raising activities, including but not
limited to further private placement of shares for the purpose of funding the Company’s future investment project(s), working capital and/or
acquisition(s), by the issuance of shares in the Company to such persons/corporations at any time as the Directors may deem fit provided that
the aggregate number of shares issued pursuant to the mandate does not exceed 20% of the total number of issued shares of the Company for
the time being, without having to convene a general meeting. This authority, unless revoked or varied by the Company in a general meeting,
will expire at the conclusion of the next AGM of the Company or at the expiry of the period within which the next AGM is required to be held
after the approval was given, whichever is earlier.
4. ORDINARY RESOLUTION 7 – PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR THE EXISTING RECURRENT RELATED
PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE (Proposed Shareholders’ Mandate)
The Ordinary Resolution 7 proposed, if passed, is to authorise the Company and/or its subsidiary companies to enter into any recurrent
transactions of a revenue or trading nature with Related Parties which are necessary for the day-to-day operations of the Group, subject to
the transaction being in the ordinary course of business, on arms’ length basis and are based on normal commercial terms that are not more
favorable to the related parties than those generally made available to the public.
Please refer to the Part A of Circular to Shareholders dated 11 June 2020 for further information
174

(cont’d)
5.
SPECIAL RESOLUTION 1 - PROPOSED CHANGE OF THE COMPANY’S NAME FROM “DAMANSARA REALTY BERHAD” TO
“DAMANSARA HOLDINGS BERHAD” (PROPOSED CHANGE OF THE COMPANY’S NAME)
The Proposed Change of the Company’s Name, if passed, shall reflect the Group’s core businesses in view that the Group has diversified its
principle activities to include the Property and Land Development, Integrated Facilities Management and Project and Medical Consultancy.
Please refer to the Part B of Circular to Shareholders dated 11 June 2020 for further information.
NOTES:
1. In respect of deposited securities, only members whose names appear on the Record of Depositors on 19 August 2020 (General Meeting
Record of Depositors) shall be eligible to attend the meeting or appoint proxy(ies) to attend and/or vote on his/her behalf.
2. A member entitled to attend and vote at this meeting is entitled to appoint a proxy/(proxies or attorney) or authorised representative to attend
and vote in its stead.
3. A proxy may but need not be a member of the Company and need not be an advocate, an approved company auditor or a person approved
by the Registrar of Companies.
4. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least
one (1) proxy but not more than two (2) proxies in respect of each securities account it holds which is credited with ordinary shares of the
Company. The appointment of two (2) proxies in respect of any particular securities account shall be invalid unless the authorised nominee
specifies the proportion of its shareholding to be represented by each proxy.
5. Where a member of the Company is an Exempt Authorised Nominee (“EAN”) as defined under the Secruties Industry (Central Depositories)
Act 1991 which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is
no limit to the number of proxies which EAN may appoint in respect of each omnibus account it holds.
6. Where a member or the authorised nominee appoints two (2) proxies, or where an exempt authorised nominee appoints two (2) or more
proxies, the proportion of shareholdings to be represented by each proxy must be specified in the instrument appointing the proxies.
7. The appointment of a proxy may be made in hard copy form or by electronic form. In the case of an appointment made in hard copy form, the
instrument appointing a proxy and the Power of Attorney or other authority (if any) under which it is signed, shall be deposited at the Share
Registrar of Damansara Realty Berhad, Tricor Investor & Issuing House Services Sdn Bhd, Unit 32-01, Level 32, Tower A, Vertical Business
Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur or alternatively, the Customer Service Centre at Unit G-3, Ground
Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur. In the case of electronic appointment, the proxy
form must be deposited via TIIH Online at https://tiih.online. All proxy form submitted must be received by the Company not less than 48
hours before the time for holding the Meeting or adjourned Meeting at which the person or persons named in such instrument proposes
to vote, and in default the instrument of proxy shall not be treated as valid. The Annual Report and Proxy Form are available for access and
download at the Company’s website at www.dbhd.com.my.
8. In the case of the corporate member, the instrument appointing a proxy shall be (a) under its Common Seal or (b) under the hand of a duly
authorised its officer or attorney and in the case of (b) be supported by a certified true copy of the Power of Attorney.
9. If this Proxy Form is signed under the hands of an officer duly authorised, it should be accompanied by a statement reading “signed as
authorised officer under Authorisation Document which is still in force, no notice of revocation having been received”. If this Proxy Form is
signed under the attorney duly appointed under a power of attorney, it should be accompanied by a statement reading “signed under Power of
Attorney which is still in force, no notice of revocation having been received”. A copy of the Authorisation Document or the Power of Attorney,
which should be valid in accordance with the laws of the jurisdiction in which it was created and is exercised, should be enclosed in the Proxy
Form.
175
ANNUAL REPORT 2019
Statement Accompanying The Notice of

Annual General Meeting
Resolution pursuant to Directors who are retiring in accordance with the Company’s Constitution:
(i) YB. Dato’ Ahmad Zahri bin Jamil (Article 68.3) Resolution 1
(ii) YBhg. Dato’ Mohd Aisom bin Omar (Article 68.3) Resolution 2
The details of the Directors standing for re-election are on pages 20 and 23.
The Annual Report and Proxy Form are available online for download at www.dbhd.com.my and the Notification to Shareholders who have
maintained their e-mail addresses in the Record of Depositors with Bursa Malaysia Depository Sdn. Bhd. will be sent via electronic mail by the Share
Registrar of DBhd, Tricor Investor & Issuing House Sdn. Bhd.
For Shareholders who have yet to provide their email addresses, following the Malaysian Government’s announcement on 16 March 2020 with
regards to the implementation of the Movement Control Order, there may be a delay in the delivery of the Notification to Shareholders.
176
CDS Account No. of Authorised Nominee
Proxy Form
I/We
(Full Name as per NRIC /Passport No./Certificate of Incorporation in block letters)
NRIC No. (new) /Company No. NRIC No. (old)

of
(Full Address)
being a member(s) of DAMANSARA REALTY BERHAD [196001000367(4030-D)] (the Company) hereby appoint
(Full Name as per NRIC /Passport No.)
With NRIC No. (new)/Passport No. NRIC No. (old)

of
(Full Address)
of failing him/her
(Full Name as per NRIC /Passport No. in block letters)
With NRIC No. (new)/Passport No. NRIC No. (old)

of
(Full Address)
or failing him/her the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the 58th Annual General Meeting of the
Company to be held at Grand Ballroom, Level 1, Forest City Phoenix International Golf Hotel, Jalan Persiaran 5, Forest City Golf Resort, 81550 Gelang
Patah, Johor, Malaysia on Wednesday, 26 August 2020 at 11.30 a.m. or at any adjournment thereof.
With reference to the agenda set forth in the Notice of Meeting, please indicate with an “X” in the space provided below how you wish your votes to be
cast on the ordinary resolution specified. If no specific direction as to the voting is given, the Proxy will vote or abstain at his/her discretion.
NO RESOLUTIONS FOR AGAINST
ORDINARY RESOLUTIONS
1. To re-elect of Dato’ Ahmad Zahri bin Jamil
2. To re-elect of Dato’ Mohd Aisom bin Omar
3. To approve the payment of Directors’ Fees to Non-Executive Directors amounting to RM480,000 for the period from
27 August 2020 until the next AGM of the Company in 2021
4. To approve the payment of Directors’ Remuneration (excluding Directors’ fees) to the Non-Executive Directors up to
an amount of RM150,000 for the period from 27 August 2020 until the next AGM of the Company in 2021
5. To re-appoint Messrs. Jamal, Amin & Partners as the Company’s Auditors
6. Authority to Allot Shares Pursuant to Sections 75 and 76 of the Companies Act, 2016
7. Renewal of Shareholders’ Mandate for the Recurrent Related Party Transactions of Revenue or Trading Nature
SPECIAL RESOLUTION
1. To approve the Proposed Change of the Company’s Name from “Damansara Realty Berhad” to “Damansara Holdings
Berhad”
For appointment of two (2) proxies, percentage of shareholdings to be

represented by the respective proxies must be indicated below.
NO OF SHARES PERCENTAGE
Signature of Shareholder(s) or Common Seal Proxy 1 %
Date: Proxy 2 %
NOTES:
100%
1. In respect of deposited securities, only members whose names appear on the Record of Depositors on 19 August 2020 (General Meeting Record of Depositors) shall be eligible to attend the
meeting or appoint proxy(ies) to attend and/or vote on his/her behalf.
2. A member entitled to attend and vote at this meeting is entitled to appoint a proxy/(proxies or attorney) or authorised representative to attend and vote in its stead.
3. A proxy may but need not be a member of the Company and need not be an advocate, an approved company auditor or a person approved by the Registrar of Companies.
4. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one (1) proxy but not more than two (2) proxies in
respect of each securities account it holds which is credited with ordinary shares of the Company. The appointment of two (2) proxies in respect of any particulars securities account shall be
invalid unless the authorised nominee specifies the proportion of its shareholding to be represented by each proxy.
5. Where a member of the Company is an Exempt Authorised Nominee (EAN) as defined under the Secruties Industry (Central Depositories) Act 1991 which holds ordinary shares in the Company
for multiple beneficial owners in one securities account (omnibus account), there is no limit to the number of proxies which EAN may appoint in respect of each omnibus account it holds.
6. Where a member or the authorised nominee appoints two (2) proxies, or where an exempt authorised nominee appoints two (2) or more proxies, the proportion of shareholdings to be
represented by each proxy must be specified in the instrument appointing the proxies.
7. The appointment of a proxy may be made in hard copy form or by electronic form. In the case of an appointment made in hard copy form, the instrument appointing a proxy and the Power
of Attorney or other authority (if any) under which it is signed, shall be deposited at the Share Registrar of Damansara Realty Berhad, Tricor Investor & Issuing House Services Sdn Bhd, Unit
32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur or alternatively, the Customer Service Centre at Unit G-3, Ground Floor,
Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur. In the case of electronic appointment, the proxy form must be deposited via TIIH Online at https://tiih.
online . Please refer to the Annexure to the Form of Proxy for further information on electronic submission. All proxy form submitted must be received by the Company not less than 48 hours
before the time for holding the Meeting or adjourned Meeting at which the person or persons named in such instrument proposes to vote, and in default the instrument of proxy shall not be
treated as valid. The Annual Report and Proxy Form are available for access and download at the Company’s website at www.dbhd.com.my.
8. In the case of the corporate member, the instrument appointing a proxy shall be (a) under its Common Seal or (b) under the hand of a duly authorised its officer or attorney and in the case of
(b) be supported by a certified true copy of the Power of Attorney.
9. If this Proxy Form is signed under the hands of an officer duly authorised, it should be accompanied by a statement reading “signed as authorised officer under Authorisation Document which is
still in force, no notice of revocation having been received”. If this Proxy Form is signed under the attorney duly appointed under a power of attorney, it should be accompanied by a statement
reading “signed under Power of Attorney which is still in force, no notice of revocation having been received”. A copy of the Authorisation Document or the Power of Attorney, which should be
valid in accordance with the laws of the jurisdiction in which it was created and is exercised, should be enclosed in the Proxy Form.
Fold this flap to seal
STAMP
THE SHARE REGISTRAR OF DAMANSARA REALTY BERHAD

c/o Tricor Investor & Issuing House Services Sdn. Bhd. [197101000970 (11324-H)]
Unit 32-01, Level 32, Tower A
Vertical Business Suite
Avenue 3, Bangsar South
No. 8 Jalan Kerinchi
59200 Kuala Lumpur
Malaysia
Fold here
contact
Lot 10.3, Level 10
Wisma Chase Perdana
Off Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Phone:
+603 2081 2688
Fax:
+603 2081 2690
Email:
corporateinfo@dbhd.com.my
www.dbhd.com.my

Financial Performance and Position Highlights

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Financial Performance and Position Highlights

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04

Profit attributable to:

Reserves and Provision

Bonus Issues of Warrants

Share and Debentures

Directors’ Report (cont’d)

Dato’ Ahmad Zahri bin Jamil (Chairman)

Name of director 01.01.2019 Acquired Sold 31.12.2019

Direct Interest in the Company:

Dato’ Ahmad Zahri bin Jamil 20,000 - - 20,000

Indemnifying Directors, Officers or Auditors

Directors’ Report (cont’d)

Other Statutory Information

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

In the opinion of the directors:

Directors’ Report (cont’d)

Statutory audit 384 67

Dato’ Ahmad Zahri bin Jamil Haji Abdullah bin Md Yusof

Dato’ Ahmad Zahri bin Jamil Haji Abdullah bin Md Yusof

Subscribed and solemnly declared by the

Independent Auditors’ Report

Report on the Audit of the Financial Statements

Basis for Opinion

Independence and Other Ethical Responsibilities

Key Audit Matters

Independent Auditors’ Report

Key Audit Matters How our Audit Addressed the KAM

Independent Auditors’ Report

Key Audit Matters (cont’d)

Key Audit Matters How our Audit Addressed the KAM

2. Valuation of Assets (cont’d)

The new MFRS 16 introduces a single accounting model and

The new standard supersedes the previous governing standard

The measurement of right to use the assets and lease liabilities

Independent Auditors’ Report

Responsibilities of the Directors for the Financial Statements

Auditors’ Responsibilities for the Audit of the Financial Statements

Independent Auditors’ Report

Auditors’ Responsibilities for the Audit of the Financial Statements (cont’d)

Report on Other Legal and Regulatory Requirements

Jamal, Amin & Partners Ahmad Hilmy bin Johari

Statements of Comprehensive Income

Gross profit 69,587 81,457 10,339 13,288

Profit before tax 10 25,592 26,116 1,602 17,812

Profit for the year 22,794 19,541 1,538 17,679

Other comprehensive income/(loss), net of tax

Profit attributable to:

22,794 19,541 1,538 17,679

Total comprehensive profit attributable to:

25,027 19,500 1,538 17,679

Statements of Financial Position

248,548 176,876 33,053 29,094

Statements of Financial Position

166,367 149,028 55,655 53,757

Net current assets 8,552 7,057 35,887 37,424

63,750 9,104 990 106

Total liabilities 230,117 158,132 56,645 53,863

Net assets 193,350 174,829 67,950 66,412

Equity attributable to owners of the parent

188,983 170,178 67,950 66,412

Total equity 193,350 174,829 67,950 66,412

Total equity and liabilities 423,467 332,961 124,595 120,275

Statement of Changes in Equity - Group

The new MFRS 16 introduces a single accounting model and

The new standard supersedes the previous governing standard

The measurement of right to use the assets and lease liabilities