Country Heights Holdings Berhad 2007 Annual Report

ANNUAL REPORT 2007

Co

untry Heights H

old

ings Berhad

119416-K

Annual R

epo

rt 2007

Country Heights Holdings Berhad 119416-K

8th Floor, Block A, MINES Waterfront Business Park3, Jalan Tasik, MINES Resort City, 43300 Seri KembanganSelangor Darul EhsanTel: 03-8943 8811 Fax: 03-8941 1470

www.countryheights.com.my

Touching Lives

Improving Life

COUNTRY HEIGHTS HOLDINGS BERHAD8th Floor, Block A, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8943 8811Fax: 603-8941 1470Homepage: www.countryheights.com.my

Property DevelopmentDATO’ ONG CHONG SEK, Chief Executive Officer

COUNTRY HEIGHTS PROPERTY DEVELOPMENT BERHAD

COUNTRY HEIGHTS eMARKETING SERVICES SDN BHD

PECANWOOD RESORT & RESIDENTIAL ESTATEGround Floor, Block A, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8948 5555Fax: 603-8945 1477Email: [email protected]: http://properties.countryheights.com.my

Property InvestmentMS LEE SOW LIN, Chief Executive Officer

MINES WATERFRONT BUSINESS PARKRetail 6, Ground Floor, Block D, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8943 8811 Fax: 603-8943 1837Email: [email protected]: http://mwbp.mines.com.myContact Person: Mr. Vincent Chew, Head of Sales & Marketing

MALAYSIA INTERNATIONAL EXHIBITION & CONVENTION CENTRE (MIECC)Ground Floor, MIECC, Jalan Dulang, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8945 2055Fax: 603-8945 2155Email: [email protected]: http://miecc.mines.com.myContact Person: Mr. Jason Toh, Senior Manager

Hospitality, Leisure & HealthMR. STUART JAMES VENNER PACK, Chief Executive Officer

PALACE OF THE GOLDEN HORSESJalan Kuda Emas, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8946 4888Fax: 603-8943 2666Email: [email protected]: www.palaceofthegoldenhorses.com.myContact Person: Ms Sally Wong, General Manager

PALACE BEACH & SPAJalan Dulang, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel: 603-8943 6688Fax: 603-8943 5555Email: [email protected]: www.palacebeachandspa.com.myToll-Free Reservations:Malaysia : 1 800 88 6018Singapore: 800 601 1106Contact Person: Ms Sally Wong, General Manager

BORNEO HIGHLANDS RESORTGround & 1st Floor, Lot 11607-11608, Block 16, RH Plaza, Lorong Lapangan Terbang 1, 93250 Kuching, SarawakTel : 082-577 930 / 578 930Fax: 082-576 680Email: [email protected]: www.borneohighlands.com.myContact Person: Mr. Loh Leh Ching, Chief Executive Officer

PALACE VACATION CLUBc/o MINES Marketing Sdn Bhd10th Floor, Block C, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8941 1888Fax: 603-8945 3320Email: [email protected] Homepage: www.palacevacationclub.com Contact Person: Mr. Ricky Yip, General Manager

COUNTRY HEIGHTS HEALTH TOURISM SDN BHDLower Ground Floor, East Wing, Palace of the Golden Horses, Jalan Kuda Emas, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8941 5833Fax: 603-8941 6163Email: [email protected] Homepage: www.ghhs.com.myContact Person: Ms Candy Yap, Executive Director

Corporate Directory

02 CorporateInformation

03 ProfileofBoardofDirectors

09 ProfileofSeniorManagement

10 Chairman’sStatement

14 MessagefromtheFounder

16 PropertyDevelopment

26 PropertyInvestment

30 Hospitality,Leisure&Health

41 CorporateSocialResponsibility

44 CorporateStructure

46 FinancialHighlights

48 CorporateGovernanceStatement

54 AuditCommitteeReport

57 StatementonInternalControl

59 FinancialStatements

163 AnalysisofShareholdings

166 AnalysisofBondholdings

167 ListofLandedPropertiesheldbytheGroup

176 NoticeofAnnualGeneralMeeting

181 StatementAccompanyingNoticeof AnnualGeneralMeeting

ProxyForm

Contents

BOARD OF DIRECTORS

GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)Chairman, Independent Non-Executive Director

TanSriLeeKimTiong@LeeKimYewDeputy Chairman, Non-Independent Non-Executive Director

MarkVictorRozarioGroup Managing Director, Non-Independent Executive Director

AcademicianTanSriDatukDr.OngSoonHockIndependent Non-Executive Director

NikHassanBinNikMohdAminIndependent Non-Executive Director

ChewChongEuIndependent Non-Executive Director

ChewChengKeatNon-Independent Non-Executive Director

COMPANY SECRETARY

HengLeePing

REGISTERED OFFICE

8thFloor,BlockA,MINESWaterfrontBusinessPark3,JalanTasik,MINESResortCity,43300SeriKembanganSelangorDarulEhsanTel:603-89438811Fax:603-89411470

AUDITORS

Ernst&YoungCharteredAccountantsLevel23A,MenaraMilenium,JalanDamanlelaPusatBandarDamansara,50490KualaLumpur

PRINCIPAL BANKERS

CIMBBankBerhadMalayanBankingBerhadRHBBankBerhad

SHARE REGISTRARS

ShareworksSdnBhdNo.10-1,JalanSriHartamas8SriHartamas50480KualaLumpurTel:03-62011120Fax:03-62013121

SOLICITORS

Chee,Fabli&AdrianHanCTChoo&CoJeffLeong,Poon&WongLeePerara&TanSooThienMing&Nashrah

STOCK EXCHANGE LISTING

BursaMalaysiaSecuritiesBerhad(MainBoard)

CorporateInformation

COUNTRYHEIGHTSHOLDINGSBERHAD(119416-K)

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ProfileofBoardofDirectors

ANNUALREPORT2007

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Y. Bhg. General Tan Sri (Dr) Mohamed Hashim Bin Mohd Ali (Rtd)

Chairman, Independent Non-Executive Director

Malaysian, 73 years of age

GeneralTanSri(Dr)MohamedHashimwasappointedChairmanofCHHBon20August1993.HeisalsotheChairmanoftheNominationCommitteeandamemberoftheRemunerationandAuditCommitteesoftheBoard.

HeattendedtheHarvardBusinessSchoolAdvancedManagementProgramwhereheacquiredaDiploma inAdvancedBusinessManagement,andwasconferredanHonoraryDoctoratebytheUniversityofSalford,UnitedKingdominJanuary1999.

GeneralTanSri(Dr)MohamedHashimjoinedtheMalaysianArmedForcesin1953andwascommissionedintotheRoyalMalayRegimentin1956afterattendingaseriesofmilitaryofficercadetcoursesbothinMalaysiaandoverseas.HeservedintheMalaysianArmedForcesforapproximately40yearsuntilhisretirementastheChiefoftheDefenceForces.DuringhistermintheMalaysianArmedForces,heinitiatedthere-organisationandmodernisationoftheArmy.

ApartfromservingCHHB,GeneralTanSri(Dr)MohamedHashimalsositsontheBoardofAjinomoto(Malaysia)Berhad,DelloydVenturesBerhad,Hong Leong Financial Group Berhad, Borneo Highlands Hornbill Golf&JungleClubBerhad,MinesResortBerhadandExcellenceGolfResortBerhad.

Heisdeemedinterestedincertainrelatedpartytransactionsofarevenueortradingnaturewhicharenecessaryfortheday-to-dayoperationsoftheGroupasdisclosedonpage150oftheAnnualReport.

Heattendedallthe3BoardMeetingsofCHHBheldduringthefinancialyearended31December2007.



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Y. Bhg. Tan Sri Lee Kim Tiong@ Lee Kim Yew

Deputy Chairman, Non-Independent Non-Executive Director


TanSriLee,thefounderoftheCompany,wasfirstappointedtotheBoardon1October1986.HeisalsoamemberoftheRemunerationCommitteeof theBoard.TanSriLee relinquishedhispositionasGroupManagingDirectoron22April2008andwasre-designatedasDeputyChairmanoftheCompany.

TanSriLeehasmorethan30yearsofexperienceinvariouscapacitiesinthebuildingandpropertydevelopmentindustry.HisvastexperienceandentrepreneurialskillsaddsynergytothebusinessactivitiesofCHHBGroupofCompanies.

Tan Sri Lee is credited with transforming the world’s largest open casttinmine into a resort citywith breathtaking landmarks such as Palaceof the Golden Horses, Palace Beach and Spa, Mines Shopping Fair,MinesWaterfront Business Park, Malaysia International Exhibition andConventionCentre,MinesWonderlandandMinesResort&GolfClubthathasearnedTheMinesResortCitytheNationalCreativity&InnovationAwardbytheMalaysianDesignTechnologyCentrein2004.

Tan Sri Lee also pioneered the concept of country living at CountryHeights Kajang which earned the Group the Best Residential PropertyDevelopmentAward by FIABCI in 1992.The prestigious Palace of theGolden Horses received “The Best New City Hotel” award inAsia byTravelTradeGazetteMagazine,andisrecognisedasoneoftheworld’shottestnewhotelsbyCondeNastTravellerMagazine.Recently,thehotelreceivedanotherprestigiousinternationalawardbyTravelWeeklyChina,recognisingPalaceof theGoldenHorsesas theBestMICEFacilityandServiceHotel2007-Outbound.Forhiscontribution,hehasbeenaccordedthe‘PropertyManoftheYear’and‘DirectoroftheYear’awards,andrecognisedformakingthe‘MostOutstandingContributionintheTourismSector’in1996/1997.

Presently,TanSriLeesitsontheBoardofGoldenHorsePalaceBerhad(formerly known as Mines City Hotel Berhad), Mines Resort Berhad,ExcellenceGolfResortBerhadandPlentifulGold-ClassBerhad.

Heisdeemedinterestedincertainrelatedpartytransactionsofarevenueor tradingnaturewhich are necessary for theday-to-dayoperations oftheGroupasdisclosedonpage150oftheAnnualReport.Heisamajorshareholder of CHHB by virtue of his direct interest and substantialshareholdingsinGoldenTouchVentureSdnBhdasdisclosedinpage163ofthisAnnualReport.


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Mr.RozariowasappointedtotheBoardon22April2008.HegraduatedwithaBachelorinEconomicsfromtheLondonSchoolofEconomics.

Mr. Rozario is a Chartered Accountant by profession with extensiveexperience in general management, accounting and corporate finance.HeisaFellowoftheInstituteofCharteredAccountantsinEnglandandWales,andamemberoftheMalaysianInstituteofAccountants.

Mr.RozariocommencedhisprofessionalcareerwithKPMGPeatMarwick,London,andspent5yearsinaBankingandFinanceauditdepartment.In1991,he joined the internal audit divisionof theParis headquarters ofSchlumbergerLimited,aglobaloilfieldservicegroup,andlaterassumedthepositionofFinancialControlleroftheEastAsiaDivision.Thereafter,hewasattachedtoSunwayGroupformorethan10yearsinvariousseniorpositions. His last position was as Group Finance Director of SunwayHoldingsIncorporationBerhad.HeleftSunwayGroupinApril2008andjoinedCHHBasGroupManagingDirector.

He sits on the Board of Golden Horse Palace Berhad (formerly knownas Mines City Hotel Berhad), Country Heights Property DevelopmentBerhad,CountryHeightsLifestyleBerhadandBorneoHighlandsHornbillGolf&JungleClubBerhad.

Y. Bhg. AcademicianTan Sri Datuk Dr. Ong Soon Hock

Independent Non-Executive DirectorMalaysian, 73 years of age

AcademicianTan SriDatukDr.Ong joined theBoardofCHHBon20August1993.HeistheChairmanoftheRemunerationCommitteeandamemberoftheNominationandAuditCommitteesoftheBoard.

AcademicianTanSriDatukDr.Onghasmaderemarkableachievementsin both the academic and scientific fields.A graduate of University ofMalayawithaMasterinChemistry,andPhDinOrganicChemistryfromUniversityofLondonKing’sCollege,AcademicianTanSriDatukDr.Ongis internationallyrecognisedinthefieldof lipidchemistrywithover45yearsofresearchanddevelopmentexperience.Hehas14patentsinthetechnologyofpalmoil tohiscredit, andhaspublishedmore than380articles.

HeisthePresidentoftheInternationalFederationofInventorsAssociation,Founder President of the Malaysian Senior Scientists Association, theMalaysia Oil Scientists and Technologists Association as well as theMalaysian Invention and Design Society. He also serves as anAdvisorto the Confederation of Scientific and Technological Associations inMalaysia,aDirectorofMalaysian-AmericanCommissiononEducationalExchange,anAdjunctProfessoratSunwayUniversityCollege,amemberof International EditorialBoardof Journal of FoodLipids, amemberofInternational Advisory Council, University Tunku Abdul Rahman andUniversityTechnology Petronas and a Director of Plentiful Gold-ClassBerhad.HewasalsorecentlyappointedbyUniversitiSainsMalaysiaasEmeritusProfessor.

Inrecognitionofhisimmensecontributionstopalmoilindustry,hewasbestowedwithseveralawardssuchastheFederationofAsianChemicalSocietiesFirstAwardforDistinguishedContributiontoEconomicAdvancewithrespecttopalmoilin1991,theFirstAsianAchievementAwardforResearch and Development by Asean Institute in 1992, the MalaysianScientificAssociationGoldenJubileeAwardinOilPalmResearchin2005,theDistinguishedScienceAlumniAward2006fromNationalUniversityofSingapore,andtheSeniorCitizensGoldenYearsAwardin2007.


Mr. Mark Victor RozarioGroup Managing Director,

Non-Independent Executive Director Malaysian, 44 years of age



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EncikNikHassanbecameamemberoftheBoardofCHHBon29April2008.HeistheChairmanoftheAuditCommitteeandamemberoftheRemunerationandNominationCommitteesoftheBoard.

HegraduatedwithadegreeinEconomicsfromtheUniversityofMalayain1971andhasmorethan35yearsofexperienceinbankingandfinance,coveringcommercialbanking,stockbroking,factoringandmerchantbanking.

HejoinedBankBumiputraSdnBhdasSub-Accountantin1971.DuringhiscareerwithBankBumiputraMalaysiaBerhad,heheldvariouskeypositionswithinthegroup.Hewasappointed,inter-alia,theChiefExecutiveOfficerandExecutiveDirectorofBBMBSecuritiesSdnBhd,ChiefExecutiveofBBMBFactoring Berhad, Executive Director and Chief Executive of BumiputraMerchantBankersBerhad,aswellasDirectorofvarioussubsidiariesofthebankincludingSouthEastAsianBankLtd,Mauritius.HislastpositionwiththegroupwasastheExecutiveVicePresidentofCorporateBankingTreasuryandInternationalBankingDivision.

EncikNikHassanisalsoontheBoardofDanamodalNasionalBerhadandGoldenHorsePalaceBerhad(formerlyknownasMinesCityHotelBerhad).

Mr. Chew was appointed to the Board on 29April 2008. He is also amemberoftheAuditCommitteeoftheBoard.

Mr. Chew, a member of the Malaysian Institute of Accountants, isa Chartered Accountant with Ernst & Young with over ten years ofexperienceininsolvencyandfinancialrescueinMalaysiaandAustralia.He also has experience in advising financially troubled companies aswellas Australiancompanies looking to invest inAsiaandviceversa.In addition, Mr. Chew was Head of Corporate Finance for SchrodersMalaysiaandPerdanaMerchantBankersBerhad,wherehesuccessfullycarried out several merger and acquisition transactions, and assistedcompaniesinvariousindustriestorestructureforthepurposeofanInitialPublicOffering.

In2000,heledHanifah,Teo&AssociatesintoajointventurewithBDOBindertoformBDOCapitalConsultantsSdnBhd(“BDO”).WhileasChiefExecutiveOfficerofBDO,hewasalsoappointedascorporateadviserforvariousdebtrestructuringexercisesofpubliclistedandprivatecompaniesandwas involved in the turnaroundof various companies.WhilstwithBDO,hewasalsoinvolvedinnumerouscorporateadvisoryassignmentinThailandandVietnam,incollaborationwithBDOInternationalmemberfirmsinthosecountries.

In2005,togetherwithamajorityofhiscolleaguesinBDO,heestablishedCovenantEquityConsultingSdnBhdtoprovidequalitycorporatefinanceand advisory services with personal touch, and was appointedAdvisorforPKFMalaysia,amemberfirmofapremier internationalaccountingnetwork,in2008.

Mr.Chewhasnodirectorshipinotherpubliccompanies.

Encik Nik Hassan Bin Nik Mohd AminIndependent Non-Executive DirectorMalaysian, 58 years of age

Mr. Chew Chong EuIndependent Non-Executive DirectorMalaysian, 46 years of age


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Mr. Chew Cheng KeatNon-Independent Non-Executive Director


Mr.Chewwasappointedto theBoardon29April2008.Hegraduatedwith a Bachelor of Economics from Macquarie University, New SouthWales,Australia.HeisalsoaFellowoftheCertifiedPublicAccountantsAustraliaandtheInstituteofCertifiedPublicAccountantsofSingapore.

Mr. Chew began his career with an international accounting firm andwasengagedinawidevarietyoffinancialandmanagementconsultingassignments before joining Jafco Investment (Asia Pacific) Ltd (“JafcoAsia”)in1992.Hehasbeeninvolvedintheventurecapitalandprivateequityindustryformorethan14years.InFebruary2000,hebecamethefirstnon-JapanesetobeappointedasExecutiveDirectorofJafcoAsia.Mr.ChewwasakeymemberofthemanagementteamlargelyresponsibleforJafcoAsia’ssuccesswith particular contributions in various areas that includes evaluation,businessdevelopment,fundraisingandportfolioadministration.Mr.Chewhasreviewedandassessedmorethan250companiesacrossAsia.Duringthistime,hehelddirectorshipsinnumerousprivateandpubliccompaniesin the region, andwasanadvisor to severalmajor regional investmentfunds.HewasappointedManagingDirectorofJafcoAsiain2004.

Mr. Chew joined Mines Resort Berhad as Chief Executive Officer inNovember 2007. He is an Independent Director of Singapore listedAsiasonsCapitalLtd,aprivateequityfirm,andisalsotheChairmanoftheInvestmentCommitteeoftheSingaporeUnitTrustsLimited.

Save as disclosed, Mr. Chew has no directorship in other publiccompanies.

Notes:1. Save as disclosed above, none of the Directors have:- a. any family relationship with any directors and/or major shareholders of the Company; and b. any conflict of interest with the Company2. None of the Directors have been convicted for offences within the past 10 years other than traffic offences, if any.



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ProfileofSeniorManagement

Dato’ Ong pursued his tertiary education at Kolej Tunku Abdul Rahman,specialisinginBuildingTechnology,andisanAssociateMemberoftheCharteredInstituteofBuilders,UnitedKingdom.

Dato’Ong’sinvolvementinthepropertyindustryspansaperiodofover25years.HestartedhiscarreerwithJonesLangWoottonasarealestateagentin1981.Since joinedCHHBin1987,hehasheldvariouskeyseniorpositionssuchasMarketingDirector,ExecutiveDirectorandChiefOperatingOfficer.

InhisroleasChiefExecutiveOfficerofPropertyDevelopmentDivision,healsodirectlyheadsthemarketingteamandisprimarilyresponsibleforthedevelopmentandimplementationofthemarketingplansandstrategies.

Dato’ Ong Chong SekChief Executive Officer,

Property Development Division

Ms. Lee Sow LinChief Executive Officer

Property Investment Division

Mr. Stuart James Venner PackChief Executive Officer

Hospitality, Leisure & Health Division

Ms. Lee graduated with a Bachelor of Economics from Monash University,Melbourne,Australia.Shebroughtwithherawealthofexperienceinthefieldof corporate banking. She was previously attached to Hong Leong Group for15years,holdingvariousseniorpositionswhichincludeHeadofthePropertyLoansDivisionwithHongLeongFinance,SeniorManagerofCorporateBankingDivisionofHongLeongBankandlaterasHeadofCommercialBankingDivisionofHongLeongBank.

Ms.LeewasearlierattachedtotheprivatearmofTanSriLeeKimTiong@LeeKimYew,in1999,managingTanSriLee’sprivatecompanies’gearingandfundingrequirementsandalsooverseeinghiscompanies’corporatefinancematters.ShejoinedCHHBasanExecutiveDirectorinearly2004.

Inhercurrent roleasChiefExecutiveOfficerofProperty InvestmentDivision,she oversees the rental and leasing business of the Group which includes 2investmentproperties,namelyMinesWaterfrontBusinessParkPhase1(existing5officeblocks),andMalaysiaInternationalExhibitionandConventionCentre,andalsotheupandcomingPhase2ofMinesWaterfrontBusinessPark.

ABritishnational,Mr.PackholdsaMasterofBusinessAdministrationfromBrunelUniversity,UnitedKingdom.

HehasmorethanthirtyyearsofexperiencewithmorethantwentyyearsofthosespentinhealthcareinboththeprivateandpublicsectorsinSouthEastAsia,aswellasinternationalexperienceinUSA,UK,SingaporeandMalaysia.

HewasattachedtoGleneaglesIntanMedicalCentreKualaLumpurandassumedthepositionofChiefExecutiveOfficeroverthelasteightyearspriortojoiningCHHBGroup.

InhisroleasChiefExecutiveOfficerofHospitality,Leisure&HealthDivision,heoverseesthetwohotels,PalaceoftheGoldenHorsesandPalaceBeach&Spa,thetimesharevacationclub,thehealthscreeningcentresandtheresortclubatBorneoHighlands.

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Chairman’sStatement

“We expect the Group’s Property Development to continue to deliver strong results from our niche in the high-end luxury country lifestyle market.”

Y.Bhg.GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)

Chairman

OnbehalfoftheBoardofDirectorsofCountryHeightsHoldingsBerhad(“CHHB”),Iampleasedto present the Annual Report and FinancialStatementsof theGroupand theCompany forthefinancialyearended31December2007.

FINANCIAL PERFORMANCE

For the financial year ended 31 December2007,theGroupregisteredanetprofitaftertaxofRM99.8million.TheGroupalsorecordedahigherrevenueofRM258.5millioncomparedtolastyearofRM213.2million.Higherrevenuefor the current year was mainly contributedby Property Development, Hotel Operationsand Medical Tourism segment. PropertyDevelopmentcontributed35%totheGroup’srevenue in year 2007, mainly from projectsinCountryHeightsDamansara,KolejHeightsUtaraandBorneoHighlandsResort.

Property Development Division remains themajor contributor to theGroup’s profit for theyear2007apartfromgainondisposalofMinesShoppingFairofRM82.9millionbeforetakingintoaccountthereversalofdeferredtaxliabilityamountingtoRM35.3million.

Revenue from Hotel Operations increased by21% from RM45.3 million to RM54.6 millionascomparedtolastyear.RevenuefromMedicalTourism also increased by 10% from RM25.5milliontoRM28.1million.

Duringthefinancialyear,theGroupsubstantiallyreduced its borrowing from RM837 million toRM404 million as compared to last year, andimproved its gearing from 1.5 times to 0.6times.This resulted from the early redemptionofRedeemableConvertibleSecuredLoanStock2004/2011 (“RCSLS Series A”) amounting toRM420 million four years ahead of schedule.As theGroup isnowatacomfortablegearinglevel, the focusonmoving forwardwillbeonexpandingourcorebusinesses.


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DIVIDENDS

After considering theCompany’sfinancial andcashflowpositions,theBoardofDirectorsdoesnotrecommendanypaymentofdividendfortheyearended31December2007.

CORPORATE DEVELOPMENT

Investmentinanassociate–DragonSpringInvestment(Labuan)Limited

On10April2007,CountryHeightsChinaLtd(“CHCLtd”), a wholly-owned subsidiary ofCountryHeightsHoldingsBerhad,enteredintoa Share Subscription Agreement with DragonSpring Investment (Labuan) Limited (“HoldingCompany”)andEarthlodgeInvestmentsLimited& Associates (“Shareholders”) wherein theHoldingCompanyhasofferedandCHCLtdhasagreedtosubscribefor900,000ordinarysharesofUS$1.00each in thecapitalof theHoldingCompanyatanissuepriceofUS$1.00pershare.TheHoldingCompanyandDragonSpringWaterServices Limited (“HK Company”), a whollyowned subsidiaryareboth investmentholdingcompanies and by a Concession Agreementdated 26 October 2006 signed between theHK Company and the City Government ofTianchang City, People’s Republic of China,the HK Company was granted a thirty (30)

year concession to undertake the business tobuild,operateandownthewatersupplysystemlocatedinTianchangCity,People’sRepublicofChinauponthetermsandconditionscontainedintheConcessionAgreement.Uponcompletionofthesubscription,theShareholdersshallhold1,300,000sharesatUS$1.00eachandCHCLtdshallhave900,000shares.ThepartiesintendtoinviteadditionalpartiestoapplyandsubscribeforthesharesintheHoldingCompanyand,assuch,CHCLtdshallultimatelyholdnotlessthan20%of the total shareholdings in theHoldingCompany.

Purchase of 23 parcels of freehold landlocatedinMukimofRasaandMukimofBatangKali

On 12 June 2007, the Group announced thatPRSHomesSdnBhd,awholly-ownedsubsidiaryofCHHB,hadenteredintoaSaleandPurchaseAgreement with Silver Concept Sdn Bhd forthe acquisition of 23 parcels of freehold landlocatedinMukimofRasaandMukimofBatangKalihavingatotalareaofapproximately2,073acres free from all encumbrances and withvacant possession for a total consideration ofRM56 million.The proposed acquisition is inlinewiththecoreactivitiesoftheGroupwhicharepropertydevelopmentandinvestment.ItalsoprovidesanopportunityfortheGrouptoexpanditsexistingpropertydevelopmentportfolio.

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DisposalofInvestmentProperty–MinesShoppingFair

On 16 August 2007, the Group announcedthatMinesShoppingFairSdnBhd(“MSFSB”),awhollyownedsubsidiaryofEastVisionLeisureGroup Sdn Bhd, which, in turn, is a whollyownedsubsidiaryofCHHB,hasenteredintoSaleand Purchase Agreement (“SPA”) with MutualStreams Sdn Bhd (“MSSB”) to dispose of thepieceofleaseholdlandandbuildingsknownasMinesShoppingFairforacashconsiderationofRM432million.Inaddition,MSFSBhasagreedtograntMSSBacalloptionandMSSBhasagreedtograntMSFSBaputoptioninrespectofaleaseoverVeniceWalkLandandBuilding(asdefinedin theSPA)upon the termssetout in theSPA.The exercise price payable under the put andcall option in respect of the lease overVeniceWalkLandandBuildingisRM3million.

Early Redemption of the RedeemableConvertibleSecuredLoanStock2004/2011(“RCSLSSeriesA”)

On 19 December 2007, the Group redeemeditsRCSLSSeriesAofRM420million,fouryearsahead of schedule, following the disposal ofits investmentproperty,MinesShoppingFairatRM432million.

INDUSTRY TRENDS AND


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FUTURE PROSPECTS

Prospectsfor2008

Lookingforward,theprospectsforresidentialproperties are expected to remain positive.TherecentwaiverofRealPropertyGainsTax,allowing of withdrawals from EPF to financehousemortgageinstalments,relaxationofFICruling,establishmentoftheone-stop-centretoexpeditebuildinganddevelopmentplanningapprovalsprocesstoboostthepropertymarketcoupled with the forecast Gross DomesticProduct (“GDP”) growth of 6.5%, lead us tobelievethattheuptakeforresidentialunitswillremain strong, notwithstanding the potentialcostsincreaseonrawmaterialsforconstructionwhichwillincreasethesellingpricesoftheseresidential units. As such, we expect ourCountry Heights Damansara, Kolej HeightsUtaraandBorneoHighlandsResortprojectstoseeareasonabletakeuprate.Goingforward,we shall continue to closely monitor markettrends as well as rising costs of constructionbeforeembarkingonanynewdevelopments.Whilst being cautious, we will continue tomove forward with our new project, namelyMinesGolfCity,on thenewlyacquired landwithalandareaofapproximately2,073acresatMukimofRasa/BatangKali.

InBudget2007,theGovernmentintroducedareductionincorporatetaxbytwopercentagepointsintwostages,to27%in2007and26%in 2008. Furthermore, in Budget 2008, theGovernment further reduced the corporatetax ratebyanother1%to25%in2009.Thishelped to reduce the cost of doing businessandaccordedcompanieswithgreatercapacitytoexpandcapitalspending.

Thestronggrowthintheservicesectorof9.7%wassupportedbyrobustdomesticdemandandtourism activities which benefited fromVisitMalaysiaYear2007promotion.Inthisregard,our hotel segment recorded 21% growth inrevenue.

The outlook for the Malaysian economy in2008remainsfavorablewithGDPprojectedtoexpandby5–6%in2008.Privateinvestmentactivities will remain robust, benefiting frommeasures implemented by Government to

further improve the business environmentwhich include the reduction incorporate taxrate,aswellas intensifyingofprojectsunderthe9MPandtheeconomiccorridors.Barringunforeseencircumstances, theGroupexpects thenextfinancialyear’s results tobesatisfactory.

ACKNOWLEDGEMENT

I wish to take this opportunity to express mysincere gratitude and appreciation to Dato’AzharBinHashim,Mr.ChooChinThye,Ms.NgNyiHong, EncikAbuYazidBinMuharamandMr.ChooCheeBengwhohaveresignedfromtheBoard, andwelcomeMr.MarkVictorRozario,thenewGroupManagingDirectorandEncikNikHassanBinNikMohdAmin,Mr.ChewChongEuandMr.ChewChengKeatasthenewNon-ExecutiveDirectors to theBoard. Iwouldalsoliketorecordmydeepestappreciationtoalltheemployees for their dedication and my utmostgratitude toallofourcustomers, shareholders,financiers,businessassociatesandgovernmentauthoritiesfortheirongoingsupportandtrust.

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MessagefromtheFounder

Inyear2007,theperformanceoftheGroupimproveddespiteuncertainty in the global economic environment. Overallrevenuegrewby21%withaturnaroundfromlossofRM36million in last year to a profit of RM99.8 million, mainlycontributedbythePropertyDevelopment,HotelOperationsandRentalOperationssegmentsandthegainonthedisposaloftheMinesShoppingFair.

Duringtheyear,theGroupdisposedofoneofitscommercialassets,theMinesShoppingFair,foraconsiderationofRM432million.ThisisoneofourplanstoreducetheGroup’sdebtstoanappropriate level.Otherpropertiesbeing targeted forsale are Malaysia International Exhibition and ConventionCentreandMinesWaterfrontBusinessPark.ThedisposaloftheseassetsandfurtherreductionofitsdebtslevelisaimedatplacingtheGrouponastrongfinancialfootingtogrowitscorebusinesses.

TheGroupwillcontinuetofocusonpropertydevelopmentandrideonthebenefitarisingfromthescrappingoftherealproperty gain tax and easier foreign investment rules. Webelievethatthesuccessofdevelopmentprojectsarealwaysdriven by originality and innovative concepts. To createmoreprojectswithinnovativeconcepts, theGroupentered

intoSaleandPurchaseAgreementwithSilverConceptSdnBhdon12June2007,toacquire23parcelsoffreeholdlandlocatedinMukimofRasaandMukimofBatangKaliwithatotallandareaofapproximately2,073acres.

ThisprojectinMukimofRasaandBatangKaliwillbenamedMinesGolfCity,whichwillbebasedontheconceptofanupscale“green&green”townshipwithaforesttheme,andispoised tobecomeMalaysia’s largest63-hole golf coursedevelopmentdesignedbyAnnikaSorenstam.Everyhomewillfacethegolfcourse,andeveryopenspacewillbecoveredwithgreeneryandtrees,makingitalittleforestinthenorthofMetropolitanKualaLumpur.Includedinthedevelopmentplansarealuxurious5starhotelcumclubhouse,amedicalcentre, a country retail mall, and possibly, a world classentertainmentcentre.

Kolej Heights Utara, our project in Kubang Pasu, Kedahwill be launching 2½-storey shop offices in 2008. Whilethe innovative and debonair super-link sport living homes,featuring wide spaces and private gardens, with seamlessblending of indoor and outdoor spaces, scheduled to belaunchedbythirdquarterof2008.

Y.Bhg.TanSriLeeKimTiong@LeeKimYewDeputy Chairman

“WeareconfidentthatourcorebusinessesinPropertyDevelopmentwillbeabletomakethemaximumbenefitsoutofthedomesticandglobalopportunities”


14

InNovember2007,weproudlylaunchedSwanLake Forest at Borneo Highlands in Kuching,Sarawak.Thisphasecomprisesof46bungalowlotswithsizesrangingfrom10,500s.f.to68,600s.f.Theundulatinglandsareuniqueinthatsomeplots enable bungalows to be perched on theslope,sittingontopofthehill.Ownerscanenjoythe beauty of the mountains, the golf courseandtheswanlakewithrefreshingmountainairscentedwiththefragranceofMotherNature,aswell as the relaxed and peaceful environmentsurroundingtheland.

Ourhoteloperationsmarkeda fewmilestonesin2007.KimMaChineseRestaurantinPalaceof the Golden Horses was awarded the BestChinese Restaurant by Ministry of TourismMalaysiainJune2007.InDecember2007,thehotelreceivedanotherprestigiousinternationalawardrecognisingPalaceoftheGoldenHorsesas the Best MICE Facility and Service Hotel2007- Outbound by Travel Weekly China.In October 2007, the Golden Horses HealthSanctuary started operations in the newlyrenovatedTraditionalChineseMedicineCentrededicated to preventive medicine. The newhealthsanctuaryfurtherreinforcestheconceptofWellnessatthehotelbyofferinganexceptionalline of complementary traditional ChineseservicessuchasTuina,Acupuncture,GuaSha,Cupping,QiGongexerciseandmore.

Not forgetting our corporate socialresponsibilities to the nation, CountryHeights Health Tourism (CHHT) has initiateda sponsorship programme allowing 500 lessfortunate Malaysians to undergo mammogramscreening at our centres. CHHT has alsocontributed an amount of RM25,000 to theNationalHeartInstituteFoundation(IJN)throughthePassionsRoyalCharityBallheldatPalaceoftheGoldenHorses.

TheGrouphas focusedoncontinuous growthandiswell-positionedforfurtherexpansionanddevelopmentwiththeplannedimplementationoftheMinesGolfCityprojectinMukimofRasaandBatangKali.

I have relinquished my executive role in theGrouptothenewGroupManagingDirector,Mr.MarkVictorRozario,whojoinedtheGroupon22April2008.Undertherestructuringexercise,theGroup’sbusinesseswillbere-categorizedintothreedivisions,namelyPropertyDevelopment,Property Investment and Hospitality, Leisure&Health.These threedivisionswillhave theirrespective CEOs who report to the GroupManaging Director. I am confident the newteam will succeed in rejuvenating the Groupandtakeittonewheightsineachofthesethreedivisions.

ANNUALREPORT2007

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PropertyDevelopment


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Withpropertydevelopmentasitscorebusiness,CountryHeightsHoldingsBerhadhasbornemanysuccessstoriessinceitsincorporationin1984.Today,theGrouphasachievedamuch-covetedinternationalstatureandreputationinthepropertyindustry.

ANNUALREPORT2007

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Bungalow Lot in Country Heights Damansara

COUNTRY HEIGHTS DAMANSARAA Little Forest In Kuala Lumpur

CountryHeightsDamansaraBungalowLots

Since its launch, this exclusiveresidential landmark of Kuala Lumpurhassuccessfullysoldmorethan82%ofitsbungalowlots.This200acresoflowdensitydevelopment,delicatelycraftedfromhillyforestland,retainsthebeautyofitslandscapewithoutcompromisingon the modernity of its architecturaldesign.

Five years since its launch, this 200acres hilly residential enclave withlow density development has alreadysold279lotsoutof342lots.Thereare43 bungalows units currently underconstruction, and 13 bangalows unitsthathavebeenalreadycompletedandoccupied.Theyearwitnessedincreased

numbersofcompletionandstarts.Weforecast a continuation of increasingnumbers of completion and starts ofowner’sbungalows.

The division has completed anddelivered vacant possession withGross Development Value (“GDV“)of approximately RM480 million.Theperformanceofpropertyvalue (sellingprice/sq.ft.)isencouraging,withvaluesgrowingby200%sinceitslaunch.

There will be 60 lots of vacantbungalows land to be launched instages. The GDV for these 60 lots ofbungalows development will exceedRM380million.

Further launches in the pipeline,among others, are another 15 unitsof new bungalows of which 5 unitsare currently under construction. Thebungalow prices range from RM6milliontoRM8million.

The construction of an access roadfromLDPPenchalaToll isexpectedtocommencebyJune2008.Theopeningof the direct access from the toll willfacilitate and enhance the propertyvalue.

6.39AcresDevelopment(LuxuryApartment)

The cluster village takes conventionalstrata development genre to anexciting bold new direction featuringarchitecture approaches resulting inpioneeringlifestyleconcepts.

Located on 6.39 acres of a freeholdland enclave in the heart of a KualaLumpurhilltopforestwithdirectaccesstoDamansara-PuchongHighway(LDP),the development is merely 15-minutedrive from KLCC. The cluster villagedevelopmentconsistofablendofstratatownhouses and condominiums tosuit families and young professionals.

PropertyDevelopment


18

PropertyDevelopment

MINES GOLF CITY

In the last 2 years, the government has launched fiveeconomiccorridors(NCER,ECER,SCORE,IDR&SDC)aimed at speeding up socio-economic development,boostingtourism,andattractinginvestmentinproperty.Now,ifthereistobeanothereconomiccorridor,itwillbeourdevelopmentatRasaEstate,MukimBatangKali-‘’MinesGolfCity’’.

MinesGolfCityisstrategicallylocatedatnorthofKualaLumpur. It takes about 35 minutes drive from KualaLumpurtotheMinesGolfCity.ThemainaccesstoMinesGolfCitydevelopment isapproximately5km from theBukitBeruntungExit118of theNorth-SouthHighway.Thetotaldevelopmentareaisapproximately2,073acresoffreeholdland.Itwillcompriseofa63-holesignaturegolf course, learning centre, equestrian, auto-car plot,prestige hotels, club house, golf academy, bungalowlots,shoppingmall,healthsanctuary,residentialandcommercialdevelopmentproject.ItwillbeMalaysia’slargestgolfcoursedevelopmentwith63-holedesignedbyworld-famousgolfer,AnnikaSorenstam,andisexpectedtobedevelopedoveraperiodof12to15years.TheexpectedtotalGDVforthedevelopmentwillexceedRM1billion.

Phase1developmentforthefirst18-holegolfcoursewillcommencein2009.

The prestige development is set onelevatedterraindesignedtosatisfythehugeluxuryhomeandspaciousliving.

The development is scheduled to belaunchedinyear2009.Itconsistsof380unitsofclusteredlow-riseandhigh-riseluxury apartments. The developmentcomes in three designs with built-upareasranging1,000to3,000sq.ft.Theexpected GDV for the developmentwillexceedRM230million.

13.40AcresDevelopment(ClusterBungalows)

The13.4acreslowdensitydevelopmentlocated strategically on top of thewaterfall will be developed forcluster bungalows development. Thedevelopmentconsistsofapproximately100 units of cluster bungalows withexclusive designs.The expected GDVfor the development is approximatelyRM340 million. The development isscheduledtobelaunchedin2010.

ANNUALREPORT2007

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PropertyDevelopment

Cyber Heights Villa, which covers28 hectares of strategically locatedprime freehold land in the nucleus ofMultimediaSuperCorridor,isapremierdevelopmentprojectinCyberjaya.Withclose proximity to Putrajaya, the newFederal Government administrativecapital,andKualaLumpurInternationalAirport (KLIA), it enjoys goodinfrastructureandaccessibilityfromanexcellenttransportationnetwork.

Withaconceptcombiningluxuryandsports living, surrounded by pristinegreenery, the overall developmentconsists of 1,278 units of villas witha low density of less than 20 unitsper acre. So far, 510 units have beencompleted with Certificate of Fitnessissued.

Riding on its previous momentum,CyberResidency is the latestphaseof

thedevelopment.Itcomprises98unitsof3to4storeyvillashousedin7blocksspreadingoveranareaof4.74acresoffreeholdland.

There are 3 design concepts, withbuilt-up areas ranging from 1,471 sqft to 1,859 sq ft and aminimumof 3+1roomstochoosefrom.Toprovideexclusivity and privacy, all units havebeen designed as corner units. Theintroductionofexternalstonecladdingfaçadenotonlyenhance theaestheticappearance but also project a resortlifestyle.

Additional security systems, suchas control of alarm and access, ismonitoredatthemainentrance.Othersalientfeaturesincludegaspipingandhigh ceilings with a clearance of 11feet.

In the meantime, 3 show units ofvillas with different design themes,rangingfromtropicalresorttomoderncontemporary have been completedandisreadyforoccupation.

The clubhouse boasts various indoorand outdoor recreational and sportfacilities,namelyswimmingandwadingpools,gymnasium,tenniscourts,maleand female saunas. The conveniencemart and restaurant serving authenticIranian cuisine have also opened itsdoorstopublic.

CYBER HEIGHTS VILLASports Living In An Intelligent City, Cyberjaya


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KolejHeightsUtaraisanotherpremiumdevelopmentbyCHHBundertakenbyits wholly owned subsidiary, CollegeHeightsUtaraSdn.Bhd.

It is an exclusive gated residentialresortstyledevelopmentspreadoveratotal of 489 acres estate and freeholdland in the northern state of KedahDarulAman in the district of KubangPasu. It is an escape from life’s urbanfabrications, where modern comfortsand nature are well designed to co-exist. Kolej Heights Utara emphasizestheconceptofcombiningtheessentialspirit of kampong architecture andurbansophisticationenclavecraftedina luxuriousspaceofpristinegreenery.Among the opulent landscape andnaturalrubbertrees,nestlesaseamlessfusionof4precinctsofchoicebungalowlotsmeasuring from5,274 sq ft up to12,440 sq ft, 466 super-link sportslivinghomes,aswellas2½storeyshopoffices,a3storeycommercialcomplex,individualcommerciallotsandastate-of-the-artsportslivingclubhouse.

Thrivingon the successfulmomentumofthepreviousyears,thecompanywilllaunch its second phase, 2½ storeyshop offices with generous interiorspace, by the third quarter of 2008.The innovative and debonair super-linksportslivinghomes,featuringwidespaces and private garden, seamlessblend of indoor and outdoor spaceswillalsobelaunchedthen.Localfolksandinvestorsfromaroundthecountryhave a choice of super-link sportsliving homes equipped with a hostof accolades for visionary residentialconcepts.Theconceptofluxuryliving,designed with exclusive and perfectlymanicuredgardens,openandfriendlyfor community spirit, cultivated and

nurtured within a gated and securedenvironment is also scheduled to belaunchedbythethirdquarterof2008.

ResidentsandlocalfolksalikearespoiltforchoiceatKolejHeightsUtara’sRM8million Sports Living Clubhouse withitsstate-of-the-artsportsfacilities,suchasindoorbadmintoncourts,basketballcourts, table tennis, a well equippedgymnasium, a lusciously designedswimming pool and children’s pool.The clubhouse’s renowned restaurant,which seats 250 guests, serving thenorthernregion’sbeststeamboatmeals,alongwithalocalandwesternmenuaswellasafamilykaraokeoffering,addsontothecharmofurbancomfortwithkampong styled living.The clubhousewas launched by DYMM Sultan ofKedah in June 2007, and has sincecateredmanyauspicious functions foritspartrons.

A mere 10 minutes drive from SultanAbdul Halim’s airport, Kolej HeightsUtara is an exclusive and primeresidentialchoice,fittingourmottoof“Eversearchingforbetterliving.”

PropertyDevelopment

KOLEJ HEIGHTS UTARA (KUBANG PASU, KEDAH)A Paradise for Country Style Living

Pool side view in Kolej Heights Utara

ANNUALREPORT2007

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Borneo Heights Sdn Bhd is the soledeveloper of Borneo HighlandsResort (“BHR”) since 1994. As of31December2007,approximately13millionsqftareaoftheresorthadbeendeveloped. This year, the companycontinues to focus on developing thebasicinfrastructureoftheresorttoofferhigh-end nature lovers with variousland characteristics and panoramicviewoptionstobuildtheirbungalows.

Aseriesofstrategieswereimplementedthroughout the year with the aimof generating repeat business fromexisting golf members and to attractnewbuyersfromthehigh-endmarket.Thecompany’smainfocusforfirsthalfof the year was to sell the remainingbungalow lots at Borneo, Golf andHornbill Forest. In entering the 2nd

half of the year, the main focus wasonSwanLakeForest,wherea specialpriceofRM70persq.ft.wasofferedtotheexistingbungalowlotownersonly.Overall,thecompanyearnedarevenueofRM18millionforthefinancialyear.

In November 2007, the companyproudly launched the Swan LakeForest.Thisparticularphasecomprises46 bungalow lots with sizes rangingfrom10,500 sq ft to68,600 sq ft andpriced from RM95 to RM200 per sq.ft., depending on the orientation andnaturalterrainofthelots.Theundulatinglands are unique in that some landsenablebungalowstobeperchedontheslope,sittingontopofthehillorbuiltonaratherflatlandscape.Itmakesthedreamofbuildingaluxuryhouseataneco-friendlyresortcometrueforthose

whoappreciatethefinerthingsinlife.Owners can enjoy the beauty of themountains, the golf course, the swanlake,therefreshingmountainairfilledwith the fragrances of Mother Natureespeciallyatnight,andtherelaxedandpeacefulenvironment surrounding theland.Buyershaveanoption todesignand construct their own bungalow orentrustthejobtothecompany’spanelof architects, based on the buyer’sindividualneeds.

On the other hand, the majorinfrastructure developments were theupgrading of the access road at KM6tillKM7.5 fromthe foothill toBHRandHT/LTelectricalreticulationwork.The progress of works achieved were55%and90%completionrespectively.Meanwhile, the basic infrastructure

Bungalow in the Borneo Highlands Resort

PropertyDevelopment

BORNEO HEIGHTS SDN BHD


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PropertyDevelopment

thatwastheroadanddrainage,aswellasthewaterandelectricalreticulationatthepristineGolfForestandHornbillForest has been 100% completed.Moreover, theupgradingofroadworksfrom plateau to the road junction ofGolfForesttoaccommodatehelicopterlandingshasalsobeencompleted.

Apart from the above, the numerousprojects implemented in 2007 areprogressing well and are expected tobecompletedbythefirsthalfof2008.TheseprojectsincludetheconstructionoftheinternalaccessroadtoSilverHairCourtandtherenovation&upgradingoftheresort.

Major developments for next yearinclude the upgrading of the accessroad from the foothill to BHR at KM

6 to KM 7.5, infrastructure worksat Swan Lake Forest, street lightingfor the internal access road and theconstruction of staff quarters. Currentongoing developments have beencarefullyplannedwithoutjeopardisingthe image and the interests of theresidentsattheresort.

ANNUALREPORT2007

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The evolution of a golf estate is abeautiful process. Although notimmediately obvious, it is a work ofart. It requires long-term commitmentandadedication toperfection.Aboveall, its success requires a team ofartistswhoshareadreamandwhoarewilling to invest their ambition intomakingthatdreamcometrue.

If the artists succeed, everybodyinvolved reaps huge rewards, andyou have to look no further than theSouthern Banks of the HartbeespoortDam, set against the backdrop of themajestic Magaliesberg Mountains, tofind a hidden gem…Country HeightsPecanwoodGolf&CountryClub.

Like a beautiful butterfly, this onceforgottenpropertyhasemergedinallitssplendourintooneofthemostsoughtafter addresses. Ten years have pastsince thisblankcanvashasbecomeaworld class golf facility that harboursall the elements of living that SouthAfricans require from the place theycallhome.

ThearchitectsofPecanwoodenvisageda place where “there is more to life”.To create the masterpiece that theysawintheirmind’seye,thedeveloperscalledinthehelpofoneofgolf’sgreatartists, Jack Nicklaus. This is howPecanwood became the proud hometo South Africa’s first Jack Nicklaussignaturegolfcourse.TheGoldenBear’sreachintheworldofgolfstretchesfarandwide.A living legendwhoownsthe records that Tiger Woods nowchases, Nicklaus’ legacy will live on,notonlyinthepagesofrecordbooks,but also through the courses he hassculptedworldwide.

It was then, on a chilly winter’smorning, with the South Africansun brightening up a grey sky, thatthis dream started materializing. Theground breaking ceremony was heldon24July1998onbaresoil,soontobetransformedintothefoundationsofourmajestic,stateoftheartClubhouse.

This Pecanwood course is carefullycrafted to be challenging enough totestyourskillstothefull.Thefairwaysare generous and inviting, the greensimmaculate all year round, and, forthose wanting to improve their game,our teaching professionals will gladlyassist.

Theclubhouseisoneofthelargestandmostsophisticatedfacilitiesofitskind.Enjoyagastronomicdiningexperiencewhilst overlooking the lushes fairwaysor watching a typical South Africansunsetforpictureperfectmemories.

Tenyearsofhardworkanddedicationby a team of diverse, highly qualifiedindividuals,togetherwiththestatusasSouth Africa’s first Nicklaus signaturecourse, has established Pecanwoodas a benchmark which all othergolf developments are measured.A trendsetter of innovative ideas,Pecanwoodhasbecomeabrandtobereckonedwith.

The superior splendour of a typicalNicklauscoursehasearnedPecanwoodmany accolades. Within the first fiveyearswewererankedwithinthetop5golfcoursesinSouthAfrica.

2000: Rated No 5 by Golf Digest

2001: Rated No 8 by Compleat Golfer


2003: Rated No 10 by Compleat

Golfer

2003: 5 Star Golf Experience Award

by Compleat Golfer




by Compleat Golfer



by Compleat Golfer

PropertyDevelopment

Country Heights Pecanwood Golf & Country Club

“.. magic in a nutshell”


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Currently Pecanwood has improved to 13th place as rated by Golf Digest, and 7th place, as ranked by Compleat Golfer. Our immaculately crafted course has since inception, been ranked as one of the top 10 best manicured courses in South Africa.

Another aspect that played a crucialrole in cementing Pecanwood’sreputationas aworld-class estatewasthe Nelson Mandela Invitational in2000. This tournament raises fundsfor the Nelson Mandela Children’sFund,andsawasmallbutelitegroupof players competing. Well knownprofessionals that roamed the lushfairwaysweretheGoldenBearlegendhimself,JackNicklausaswellasRetiefGoosen, Ernie Els,GaryPlayer,DavidFrost, and Mark McNaulty, just tonameafew.

Over the years our valued membershave created the heart beat ofPecanwood.Throughtimetheycrafteda culture within the establishment,radiating a warmth and inviting senseof belonging. Many traditions havebeen established, such as our annualgolf competitions that include theprestigious Club Championships(Men’s & Ladies) as well as the JackNicklausGolfDay,where thewinneris presented with The Golden BearTrophy, and the Founder MembersDinnerbeingthehighlights.

Our professional and dynamicteam heading up GolfOperations also maintain a jam-packed golfing calendar withweekly member competitions,mixed open days, ladies opencompetitions as well as our veryown innovative US PGA, USMasters, US Open and the Open

Championship, co-incidingwith theoriginaltournamentdates.

Incatering for theneedsand tastesofthe fortunate member or homeowner,Peacanwood has also become asought-afterdestinationforprivateandcorporate events. We can confidentlysay that the dedicated team havemastered the art in the hosting ofcorporate golf days, private functions,weddings andconferences.Onceyouhave reviewed the various activitiesandoptionsavailable,andmadeyourselection, we will gladly customise apackagetosuityourrequirements.

Life at Pecanwood offers everythingthe discerning investor is looking for.Situated a leisurely 40 minutes drivefromthebustleofSandtonandPretoria,it is convenient enough to be madeyourprimaryhome.

Golf course in Country Heights Pecanwood Golf & Country Club, South Africa

PropertyDevelopment

Just when you thought life couldn’t get any better… you discovered Pecanwood…

… enjoy the comfort, experience the magic!

ANNUALREPORT2007

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PropertyInvestmentDivisionofCHHBentailstherentalandleasing business of the Group. It involves two properties,namely, the MINESWaterfront Business Park (MWBP) andMalaysia International Exhibition & Convention Centre(MIECC).

MWBP is the only office address with an expansive viewofa150-acrelakewitha18-holesignaturegolfcourseandcountry homes in the distance, surrounded by lush andplentifullandscaping.

MIECCwasonceMalaysia’spremierexhibitionvenue,withmajorevents,bothregionalandinternational,underitsbelt.Asaresultoftoomanyemergingnewvenues,theManagementof MIECC has evolved a two pronged strategy to increaserevenue.


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PropertyInvestment

ANNUALREPORT2007

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MINES WATERFRONT BUSINESS PARK

PropertyInvestment

MINES Waterfront Business Park issituated amidst the panoramic viewof the Mines Resort City. It is anaesthetically beautiful and integratedbusiness park, a landmark touristdestinationinMalaysia,andanaward-wining resortcity.Thebuildingstandsserenely along the shores of a 150-acre lake with beautifully landscapedsurroundings and a breathtaking dusktodawnlakesideview.

MinesWaterfrontBusinessPark,nestledinanoasisinthecenteroftheGreaterKuala Lumpur, is Malaysia’s first truebusinessparkwith integrated facilitiesin a resort environment consisting ofPalaceof theGoldenHorses(aluxuryhotel that offers a harmonious blendofMoorisharchitectureandMalaysianculture),PalaceBeach&Spa (a5-starresorthotelwithanAsianarchitecture),MinesShoppingFair(theonlyshoppingmall that you can sail into), MinesWonderland, Malaysia InternationalExhibition & Convention Center andMines Resort & Golf Club (a worldclass18-holegolfcourse).

Strategically located and wellconnected to major highwayscoupled with added convenience tovibrant business amenities includingconvenientbankingfacilities,shoppingmalls, hotels and entertainmentcentres, Mines Waterfront BusinessParkhascontinuouslyrecordedhigheroccupancyyear-on-year and is almostfully occupied. Mines WaterfrontBusiness Park not only achievedhigh occupancy rates, our tenantmix consists of more established andreputable corporate entities suchas EMI, Astro Shaw, Hitachi Cable,Mynic, Sumitomo, Thomson Media,The Sanderson, Educational Trend,Custommedia, Sazean, John Deere,Gamexus Consulting, Gamat Emasand Faratech, among others. Someof our new tenants that have joinedus this year include MediaBanc SdnBhd (Media Monitoring Company),CyberSecurity Malaysia (NationalCompany), Diamond-Hard MiningSdn Bhd (gold mining production),Magnetic Lodestone, Mobile Income,My 4-Season, JL Cemerlang, PerfectSiliconandLeePartnership.

Mines Waterfront Business Park alsoboasts a Balinese-style food court– M-Bistro that offers our tenantsgastronomical delights that appealto all. M-Bistro is managed by anexperiencedorganizationthatprovidesavarietyofdeliciouslocalandwesterndishes as well as catering services forevents,launchingsandmeetingstothetenantshere.

With the high occupancy in phase 1,we are planning to launch 2 blocksofourcorporateofficestocatertothegrowth of discerning tenants by theyear2008.


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The year 2007 sees a new directionand re-organizing of the MalaysiaInternational Exhibition & ConventionCentre(MIECC).

For thepastdecade,MIECChasbeenthe premier exhibition venue andhas played host to many prestigiousinternational and local events.MIECCisnowlookingintosmartpartnershipsthroughjointventuresorappointmentofaprofessionalmanagementcompanythat will help to develop and expandinternational exhibitions and eventsin theAsia Pacific region. In order tostaycompetitiveas thecurrentmarketsituation demands, MIECC has towiden thescopeof theMICE industryby leasingsomeof its space forofficeuse.Thegroundfloor and level2hasbeensetasideasofficerentalspaceforpotentialtenants.

The business for hall rental remainchallenging as price wars and newlybuilt convention centres are amongthefactors,creatingfiercecompetitionthat affecting the revenue of MIECC.Nevertheless, setbacks are bound toarise and to improve the businessstrategies, the team at MIECC isworking hard to adjust to this marketinconsistency and exploring ways togeneraterevenueand/orsustainincomeforthecompany.

Amongtheeventshostedin2007wastheMMCACharityDinner,NestleSalesConferencecumDinner,DragonMeetLion, Neway Worldwide Conference& Dinner, Buddhist Cultural & ArtsFair 2007, IKRAM Training, DharmaTalk,MPSB1stAnniversary&ProductLaunching2007andmore.

The 9th World of Chinese Books Fair(WCB) 2007, held from 16th – 25thNovember2007,wasverysuccessfulasithadachievedthehighestparticipationofexhibitorswithover700boothsfromMalaysia, Singapore, China, TaiwanandHongKong.Thepublicitystuntforthe fair thisyearwas theappointmentof local talented artiste/composer Mr.RynnLimYuZhongastheambassadorforWCB2007.AfeeofRM2.00wasalsochargeduponentrytothefairwhereallcollections received were donated to13 selected schools in Malaysia.Thiseventreceivedoverwhelmingresponsewith370,000visitorsthathighlighttheincreasing popularity of this largestChinesebooksfair.

PropertyInvestment

MALAYSIA INTERNATIONAL EXHIBITION & CONVENTION CENTRE (MIECC)

World of Chinese Books Fair 2007

ANNUALREPORT2007

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Hospitality,Leisure&Health

Apart from property development,CHHBhasalsodiversifiedintothefieldofleisureandhospitality.Today,CHHBisadiversifiedGroupwhichhasgonefrom strength to strength, exploitingthe different dimensions of man ashe relates to gracious living, nature,health, recreation, entertainment,sports,businessandtechnology.CHHBhasalsopositioned itselfasa lifestylecreator.

ANNUALREPORT2007

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PalaceoftheGoldenHorses,alsotaggedastheAsia’sMostExtraordinaryHotel,isaworld-classaward-winning luxuryhotelwithdedicatedconferencecentreand state-of-the-art facilities. Locatedwithinthe1,000acresofMINESResortCity, it is 25 minutes away from thecitycentreaswellastheKualaLumpurInternationalAirportinSepang.

With a distinctive Moorish-Malaysianarchitectureandequestriantheme,thehotel is also Malaysia’s first themedhotel with a lavish ornamentationinspired by Malaysian folklore. Sinceopening its door to the public inOctober1997, ithasgained immenserecognitionintheindustryasaleadingMeetings,Incentives,ConferencesandExhibitions (MICE) centre in the AsiaPacificregion.

All 405 rooms and 80 suites areluxuriouslyblendedwithallthemodernday conveniences of the InformationAge. For extra privacy and personalattention,theDignitariesFloorfeaturesa lounge with butler, concierge andsecretarialservices.PalaceoftheGoldenHorsesisperhapsbestnotedforitsdedicatedconferencecentre, the Sultan Salahuddin AbdulAzizShahConferenceCentre, locatedin its very own private wing. It offers

unrivalled conference space with atotalof20meetingroomsincluding2ballrooms,theRoyalBallroomandUnityRoom,anda318-seatAuditoriumthatisexcellentforcorporatepresentationsand theatrical productions. The latestadditiontoitsbanquetfacilityistheLeMarquee,anoutdoor,canopiedvenuewithagardenandlakesettingthatcanaccommodateupto2,000persons.

In June 2007, the hotel’s ChineseRestaurant Kim Ma was awardedas the Best Chinese Restaurant byMinistry of Tourism Malaysia. InDecember 2007, the hotel receivedanotherprestigiousinternationalaward,recognizing Palace of the GoldenHorses as the Best MICE Facilityand Service Hotel 2007 – OutboundawardedbyTravelWeeklyChina.

This award winning luxury hotelhas been the venue for many highprofile events held throughout 2007,namely DiethlemTravel Management,TM Group Leaders Convention andESPN India Group, the Proton WorldChampionshipBadminton2007.

Thehoteloffersoutstandingvarietyofdiningandentertainmentoptionswith5restaurants,2loungesanda24-hourRoom Service. The splendid diningexperience include a 24-hour dining

CarouselRestaurantthatservesawidearrayoflocalandAsianfavorites,KimMa Chinese Restaurant, Cavallini’s,an Italian restaurantwith an exquisiterange of Italian and Mediterraneancuisine,theeverpopularcontemporaryJapanese cuisine in Kin No Uma andapoolsideofferingaselectionof tastysnacks and thirst quenchers. The 2lounges, Grand Salon Lobby LoungeandPoloClub&GamesRooms,servean extensive range of drinks as wellas scrumptious snacks with great liveentertainment.

The latest addition to the specialitiesoutlets is Sagar Restaurant – servingauthentic Northern Indian cuisine.Most of all, the hotel offers a uniquevenue for a breathtaking wine anddine affair featuring the RomanticCruise,whichoffersaromanticcandlelight dinner while cruising the 150acres surrounded by the picturesquelandscape.

In line with the healthy living andwellnesslifestyle,PalaceoftheGoldenHorses also offers comprehensivehealth screening services at GoldenHorsesHealthSanctuarylocatedinsidethehotel,ascenic2.1kmjogger’strack,beautifullylandscapedswimmingpool,anexecutivefitnesscentreforthehealthconscious, and a luxurious Balinesethemed Jojobali Spa for rejuvenationandrelaxation.

Palace of the Golden Horses, locatedwithin the Mines Resort City that isknown as the Venice of the East, ispoised to be one of the world’s mostwidelyknownluxuryhotel,inextricablylinked with outstanding opulence,which will position Malaysia as oneof thefinestdestinations in theglobalhospitalityandtourismindustry.

PALACE OF THE GOLDEN HORSES



32

PalaceBeachandSpaiswellpositionedasaresorthotelthatisperfectforbothbusinessandleisure.Itsuniquefeatureastheonly“beachinthecity”isamainsellingpoint thatmakesPalaceBeachandSpathepreferredchoiceoverotherhotelsinthesurroundingKualaLumpurarea.With this attraction, the hotel ispopular for garden weddings, beachbarbecues, familydays, teambuildingevents and other leisure or corporateactivities.

Situated right next to the MalaysiaInternationalExhibitionandConventionCentre (MIECC), and located just 30minutes from Kuala Lumpur CityCentre, Palace Beach and Spa is thechoice accommodation hotel for theexhibitionsandconferencesheldthere,such asThe World of Chinese BooksFairandAmitabhaGroup.

The hotel recorded good arrivalsfrom several leisure markets such asSingapore,HongKong,TaiwanandtheMiddleEast.Duringthe2007Formula1at theSepangCircuit, thehotelwasthechoicelocationfortheSuperAguriandSkyperteams.

By joining forces with its sister hotel,Palace of the Golden Horses, PalaceBeachandSpamarkedafewmilestonesin2007.Onewasthejointcateringfor5,000personsattheMIECC,thefirstofsuchcateringspavingthewayformoreof such events in the future. PalaceBeachandSpaalsoparticipatedintheBridal Fair held at the Palace of theGoldenHorsesinAugust2007.Finally,in December 2007, we embarked ontheWishUponAStarChristmasCharityandsuccessfullycollectedRM30,000todonate to theNationalAutismSocietyofMalaysia.

In October 2007, the Golden HorsesHealth Sanctuary started operationsin the newly renovated TraditionalChineseMedicineCentrededicatedtopreventive medicine. Traditional DietTherapy and herbal soup was earlierintroducedatChengHoCourtChineseRestaurant to promote a healthy dietwhichisnowapermanentfeatureinthedailymenu.Thenewhealthsanctuaryalso further reinforces the concept ofwellness at the hotel by offering anexceptional line of complementarytraditional Chinese services such asTuina,Acupuncture,GuaSha,Cupping,QiGongexercisesandmore.

2007 also saw the commencement oftherehabilitationofthefirst60roomsatthehotel.Withtherehabilitationoftherooms,themanagementlooksforwardto strengthen the tieswith the currentregularclienteleaswellasmakingnewniches into the corporate and leisuremarket.

PALACE BEACH AND SPA


ANNUALREPORT2007

33

HORNBILL GOLF AND JUNGLE CLUB


Borneo Highlands Resort is one ofthe most unique eco-friendly resortdevelopment in the region. Just anhour’sdrive(60km)fromKuchingcity,the capital of Sarawak, this exclusiveresortnestlesmajesticallyamongstthe1.5 million-year-old virgin rainforest–theoldestandsecondlargesttropicalrainforestintheworld.

Sitting on the Penrissen Range, 1,000meters above sea level, BorneoHighlands Resort is surrounded byrichvegetationand the lush rainforestwith refreshing year-round springtemperatureof18–20degreesCelsius.It is an absolute botanical paradiseblessed with astonishing varieties offlora and fauna, with fresh air, coolmountain breeze and spectacularhighlandviews.

The resort’s 18-hole golf course ismagnified by the steep gradients ofrugged mountain terrain for morephysicalandmentalgolfchallengesasthe course is breathtakingly beautifulandtough.


34

TheJungleSpaisaretreat-within-a-retreat,aplacewhereone can unwind and rejuvenate with the invigoratingforces of nature. A variety of treatments and therapiesare availablewhich canbe enjoyed indoors, in thewellappointed spa facilities, or outdoors, amidst unspoiltnature. These include traditional Bidayuh massage, footreflexology,aromatherapy,organicfacialandbodyscrub.

TheClubhouseisanextensionfromthegolfcourse,whereeveryfinedetailisinspiredbytheimagesofgolfgames,with30roomsandsuitesondistinctivefloorsmarkedbythegolfteeboxcoloursofRed,White,BlueandGold.


ANNUALREPORT2007

35

PALACE VACATION CLUB Worldwide resorts, great family vacation

Owning a Palace Vacation Clubmembership gives the proud ownerprivilege in not only having accessto an extensive list of quality resortlistingsbutalsoaccesstootherlifestyleservice offerings surrounding MinesResortCity,suchasfacilitiesatitstwoestablished hotel outlets, recreationalfacilitiesandspecialdiscountsonF&Boutletsamongothers.

The uniqueness of Palace VacationClub membership allows transferoptions, allocation of up to tworooms, split week system and guestassignment.These features have beeninfused into the membership plan,making itagreatchoiceandaviableinvestment forMalaysians looking forgreatfamilyvacationdestinations.

The membership also providememberswiththeoptiontoexchangethe holiday entitlement for otherproductsrangingfromhealthservicestoentertainment.Itissetuptoofferavariety of options for its members toexchange their holiday entitlement.Amongtheexchangesthatareofferedare Health Screening at CountryHeights Health Screening Centres,tickets for shows such as Disney onIce–PrincessClassic,Disneyon Ice–Beauty&TheBeast,FindingNemo,Mickey Magic Show, Sesame StreetMusical,RoyalLondonCircustickets,Hollywood on Ice tickets and MinesWonderlandFun&Dinnerpackage.

With a strong customer servicesupport team, Palace Vacation Clubhas maintained its motto of alwaysimproving and innovating. This hastranslatedtoanincreaseinmembers,bookingsfrom8,500in2006to12,600asof31Dec2007.Successfulbookingratiowasmaintainedatahigh89%.

The synergistic arrangements withvariousfinancialinstitutionstoprovideeasy payment options with eitherlow or 0% interest to its potentialmembershaveopenedupwindowsofopportunities for Malaysians to adaptits method of lifestyle vacation with



36

great ease and without any financialstrain. This synergy makes PalaceVacationCluba lifestylemembershipprogram that allows its members tohaveluxurywithinreachfortheentirefamily.

The combination of a friendly,dedicated team and dreamdestinations is Palace VacationClub’s recipe for its success and thesecret of its appeal to the Malaysianmarket.Thisisfurtherenhancedbyitsinnovativeapproachanditscapabilityin providing a variation of lifestyleservice offerings, making it the onlytimeshare membership program thatcan offer the combination of accessto vacation destinations all aroundthe world, health screening services,entertainment and leisure all underoneroof.

PalaceVacation Club has establisheditself in the market as a prestigioustimesharingmembershipprogramthat

offersimmensebenefitsandprivilegesinaformofexcitingvacationsatmorethan2,200beautifulresortdestinationsin 85 countries worldwide. This ismade possible through its affiliationwith Interval International. On topof that,members alsohave access toour internal resorts affiliation totalingover 100 resorts worldwide coveringMalaysia, Thailand, The Republicof Philippines, Indonesia, India,Australia, China and Europe. Dueto the overwhelming demand frommembers, two more new propertiesinLondon,U.K.and theGoldCoast,Australia, were acquired to add toPalace Vacation Club’s extensiveresortslisting.PalaceVacationClubends2007withgreat enthusiasm for the year ahead.Theteamofmanagementandmemberslook forward to another fulfillingyear, with infusions of more familyentertainment and more excitingvacationdestinations.


ANNUALREPORT2007

37

“Ourvisionistoassistpeopleinachievingthebestofhealth.Thekeytogoodhealthispreventionandearlydetection.Wearededicatedtoimprovingpeople’sliveswhilemaintainingacommitmentofbecomingthemostsuccessful,knowledgeableandcompetitiveorganizationinthehealthcaresectorlocallyandglobally.”

COUNTRY HEIGHTS HEALTH TOURISM



38

Country Heights Health Tourism SdnBhd(CHHT)isaprofessionalpreventivehealthcare provider operating in thehotellicensedbytheMinistryofHealthMalaysia.

Having achieved and completed fourhalf-yearly surveillance audits by UKLloyd’s Register Quality Assurance,2007 has marked the second yearof continuous certification ofISO 9001:2000 Quality ManagementScreeningcenters locatedatPalaceofthe Golden Horses and Plaza Mon’tKiara.This achievement has reassuredthedeliveryofservicestoourmembersandguests.

An increase of 31% in check-upperformancewas recorded in2007 inwhich some percentage are attributedby the introduction of international

health tourism programme in whichinternational guests from Hong Kongand Indonesia being the two maincontributors.

2007 has also seen a significantimprovement inourCheck-upServiceIndexperformancewithanincreaseof18% in the category of Excellence ascomparedto2006.

Not forgetting our corporateresponsibilities towards the nation,CHHT has fully sponsored 500 lessfortunate Malaysians to undergo theMammogramProgrammeinsupportoftheBreastCancerAwarenessCampaignlaunched by the Ministry of Women,Family and Community Development(LPPKN).

COUNTRY HEIGHTS HEALTH TOURISM


ANNUALREPORT2007

39

Further to this, CHHT has alsocontributedanamountofRM25,000totheNationalHeartInstituteFoundation(IJN)throughthePassionsRoyalCharityBall held at Palace of the GoldenHorses.

As part of our effort in providingknowledgeandeducationonpreventivehealthcare,CHHThasjointlyorganizedthe“2007TraditionalChineseMedicineAcademicForum”with theFederationof Chinese Physicians AcupuncturistsAssociations Of Malaysia (FCPAAM),withprominentTCMChinesePhysicianfrom China such as Professor Dr. LiuLi-Hong being invited to talk aboutthe contribution and development ofTCM worldwide. The response wasoverwhelmingwithsome350ChinesePhysicians from Malaysia gatheredto explore ways for better healthcarethrough using the ancient, 5,000year-old traditional Chinese medicinemethodsforhealthandillnesses.

Ending theyearonahigh,CHHThasreached another milestone with theestablishmentofGoldenHorsesHealth

Sanctuary –TCMWellness Center, anexclusiveone-stopTraditionalChinese& Complementary Wellness CenterlocatedatPalaceBeach&Spa,withinMinesResortCity inNovember2007,with the objective of promoting andproviding quality Traditional andComplementary Medicine servicesto thepeople inMalaysiaand foreignguests in the most luxurious ofenvironment.



40

CorporateSocialResponsibility

TheBoardofCHHBrecognizesandacknowledgestheimportanceofacorporateculturethatemphasizesgoodcorporatesocialresponsibilityandgoodcorporatecitizenship.TheGroupnotonlyincreasesthestakeholders’valuethroughitscorebusinesses,butalsoupholdstheinterestsofthecommunityandtheenvironment.

THE WORKPLACE

Ourtopmostpriorityistoprovideahealthyandsafeworkingenvironmentforouremployeesandotherrelevantpartiesdirectlyinvolvedinourprojects.

TheGroupisactivelyensuringthatthesafety,healthandwelfareofallemployeesare not being compromised. The Group provides hospitalization and surgicalinsurance coverage, group term life insurance coverage and group personalaccident insuranceontopof thestatutorySOCSOcontributiontoemployees tomitigatemedicalandaccidentalcontingenciesofemployees.

Aspartofourhumancapitaldevelopment, theGrouparrangedvarious trainingprogrammestoequipitsemployeeswiththerequiredskillsandknowledgetostayahead.

Furthermore,on-goingin-housesportactivitiesareheldtofosteragoodworkingrelationshipandtobuild-upstrongteamspiritamongtheemployees.TheGrouprecognizestheimportanceofnon-workrelatedactivitiesamongstcolleagues.SportLivingClub,Kajang,wasestablishedforthissolepurpose.TheClubhasorganizedseveralactivitiesthroughouttheyearandwillcontinuetodosointhefuture.

THE ENVIRONMENT

TheGrouprecognizestheneedandimportanceofenvironmentalconservation.Duringthefinancialyear,thefounderofCHHB,TanSriLeeKimTiong@LeeKimYewandSerdangresidentsformedthe“ProtectionofSerdangLakesandRiversCommittee”inanefforttoensurethelakesandriversremaincleanandbeautifulfor our future generations.Thus far, the Group contributed RM100,000 to thefund.

ANNUALREPORT2007

41

THE MARKET PLACE

TheGroupiscommittedtocontinuouslyenhancevalueforitsshareholders.Itisouraimtoprovidehighqualityproductsandservicestoourcustomers.

Operating activities within the Group are conducted with a high standard ofpractice which is in line with the best practices guidelines set in the Code ofCorporateGovernance.

THE COMMUNITY

As a caring and responsible corporate citizen, the Group has continued toprovidefinancialassistancetolocalschools,placesofworship,variousnon-profitorganizationsandindividuals.Duringthefinancialyear,theGroupansweredthecall forassistancefromvariousnon-profitorganizationsandalsoparticipatedinmanycharitableactivities.

Education

1. Contributionof7,000piecesofPu-er teacakes toSRJK(C)KuenCheng(1),SRJK(C)KuenCheng(2),SRJK(C)JinjangUtara,SRJK(C)JinjangSelatan,SRJK(C)LaiMeng,SRJK(C)TaiThongandSRJK(C)JalanDavidsonfortheircharitysalestoraisefundsfordevelopmentsoftheschools.

2. Charitabledonation toSRJK (C)TamanConnaught forexpansionofcanteenandupgradingofschoolfacilities.

3. SponsorshipfortheInternationalAccountingConferenceunderUniversityofMalayaFacultyofBusinessandAccountancy.

4. GaladinnersponsorshipforMultimediaUniversity.

5. Participation in the 1st Asian Entrepreneur Business Exchange Seminar forPersatuanUsahawanMudaMalaysia.



42

General Welfare

1. DonationtoNationalAutismSocietyofMalaysiathroughthelaunchof‘WishUponaStarCharityChampaign’atPalaceoftheGoldenHorsesandPalaceBeach&Spa.

2. SpecialDeepavaliCharityHi-TeaatthePalaceoftheGoldenHorsesforthechildrenofRumahKeluargaKami,Kajang.

3. SponsoredBuddhamagazinesforKwanInnTengFoundation.

4. Charitable donation toYayasan Pencegahan Jenayah Malaysia,YayasanTuanku Syed Sirajuddin andYayasan SultanahBahiyah.

5. CharitabledonationtoTabungBencanaAlamNegeriMelakaforfloodvictims.

6. TrusteescontributiontoPerdanaLeadershipFoundation.

7. CharitabledonationtoMalaysianZoologicalSociety.

8. ContributiontocharitydinneratthePalaceoftheGoldenHorsesforPassionsCharityBall2007inaidofInstitutJantungNegaraFoundation.

Apartfromtheabove,theGroupalsosupportedothervarioushumanitarianandsocialcausesin2007.

Thisdedicationtocorporatesocialresponsibilitywillcontinueasweseekfurtherbusinessgrowthintheyearsahead.


ANNUALREPORT2007

43

PropertyDevelopment

PropertyInvestment


Others

CorporateStructure


44

100% CountryHeightsPropertyDevelopmentBerhad 70% BorneoHeightsSdnBhd 100% CollegeHeightsUtaraSdnBhd 100% CountryHeightsDevelopmentSdnBhd 100% CountryHeightseMarketingServicesSdnBhd (formerlyknownasIDECHomeFurnisingCentreSdnBhd)

100% CountryHeightsEnterpriseSdnBhd 100% CountryHeightsIndustriesSdnBhd 100% CountryHeightsPangsaRakyatSdnBhd 100% CountryHeightsPecanwoodBoatClub(Pty)Ltd 100% CountryHeightsPecanwoodGolf&CountryClub (Pty)Ltd 100% CountryHeightsPropertiesSdnBhd 100% CountryHeightsResorts&LeisureSdnBhd 100% CountryHeightsSdnBhd 100% CountryHeightsW.T.C.SdnBhd 100% HasilCermatSdnBhd

100% KristalPeramal(M)SdnBhd 100% MagnitudeKnight(M)SdnBhd 100% MasterStrikeSdnBhd 100% MegaPalmSdnBhd 100% NasmayaJuaraSdnBhd 100% ProfoundConceptSdnBhd 100% PRSHomesSdnBhd 100% SteadyProspectSdnBhd 100% TindakMurniSdnBhd 100% WalumEnterpriseSdnBhd 100% WorldRacquetCentreSdnBhd 100% TimbangMakmurSdnBhd 100% SpeedbuildSdnBhd 100% VersatileChampionSdnBhd 48% SimplexDesignSdnBhd 100% CountryHeightsChinaLtd 21% DragonSpringInvestment(Labuan)Limited

100% EastVisionLeisureGroupSdnBhd 100% EndlessGainSdnBhd 100% IDEC(M)SdnBhd 70% MinesExhibitionManagementSdnBhd 100% MinesInternationalExhibitionCentreSdnBhd 100% MinesShoppingFairSdnBhd

100% MinesWaterfrontBusinessParkSdnBhd 100% TenPlusOneSdnBhd 100% MinesPremiumSdnBhd

81% GoldenHorsePalaceBerhad (formerlyknownasMinesCityHotelBerhad)

70% BorneoHighlandsHornbillGolf& JungleClubBerhad 70% CountryHeightsHealthTourismSdnBhd 100% CountryHeightsLifestyleBerhad 100% KinNoUmaSdnBhd

100% MinesBeachResortSdnBhd 100% MinesePurseSdnBhd 70% CountryHeightsEducationSdnBhd 100% IMECEducationServicesSdnBhd 100% CountryHeightsSeaResortSdnBhd 100% SignatureCatering&ConferenceServicesSdnBhd 100% SignatureHotelsPteLtd

100% CountryHeightsGoldenLifestyleSdnBhd 100% CountryHeightsPromotionsSdnBhd 100% CountryHeightsResourcesManagement (M)SdnBhd 60% CountryHeightsQualityLifeServicesSdnBhd 100% EtikaCergas(M)SdnBhd 100% LokasiIstimewaSdnBhd 100% FreshInnovativesSdnBhd 60% MalaysiaTrade&DistributionCentre (Rotterdam)SdnBhd

100% MinesHoldingsSdnBhd 100% MinesEngineering&TechnicalServicesSdnBhd 100% BestGoldenInc 100% CountryHeightsPromotionsLtd 100% LinesPteLtd 100% CountryHeightsGardenResort(Sibu)SdnBhd 100% CountryHeightsGlobalLtd 100% OutputCombinationSdnBhd

ANNUALREPORT2007

45

Five-YearGroupFinancialHighlights

31-Dec-07 31-Dec-06 31-Dec-05 31-Dec-04 31-Dec-03 RM’000 RM’000 RM’000 RM’000 RM’000 (Restated)

FINANCIAL RESULTS(Continuing&DiscontinuedOperation)

Revenue 258,535 213,165 223,320 485,829 342,681

Profit/(Loss)BeforeTax 78,615 (33,965) 6,829 19,670 24,312

Profit/(Loss)AfterTax 99,808 (36,030) 3,141 5,110 11,671

NetProfit/(Loss)Attributable

toShareholders 100,481 (32,689) 6,661 10,873 12,440

KEY BALANCE SHEET DATA

TotalAssets 1,553,061 1,885,755 1,919,996 2,404,000 2,498,907

TotalLiabilities 839,890 1,273,217 1,188,330 1,671,757 1,841,200

ShareCapital 275,707 275,707 275,699 275,699 275,699

Reserves 393,679 292,373 408,168 405,931 372,554

Shareholders’Funds 669,386 568,080 683,867 681,630 648,253

FINANCIAL RATIOS

BasicEarnings/(Loss)PerShare(sen) 36.45 (11.85) 2.42 3.94 4.51

NetAssetsPerShare(RM) 2.43 2.06 2.48 2.47 2.35

ReturnonTotalAssets(%) 6.47 (1.73) 0.35 0.45 0.50

ReturnonEquity(%) 15.01 (5.75) 0.97 1.60 1.92

Gearing(NetDebt/Equity) 0.60 1.47 1.18 1.71 1.85


46

(RM

´000

)

REVENUE

500,000

400,000

300,000

200,000

100,000

0

342,681

485,829

223,320213,165258,535

Year2007 2006 2005 2004 2003

(RM

´000

)

PROFIT/(LOSS)BEFORETAX

90,000

60,000

30,000

0

(30,000)

(60,000)

19,6706,829

(33,965)

78,615

Year2007 2006 2005 2004 2003

(RM

´000

)

SHAREHOLDERS’FUNDS

750,000

600,000

450,000

300,000

150,000

0

681,630683,867

568,080

669,386

Year2007 2006 2005 2004 2003

(Sen

)

BASICEARNINGS/(LOSS)PERSHARE

48.00

36.00

24.00

12.00

0

(12.00)

3.942.42(11.85)

36.45

Year2007 2006 2005 2004 2003

(RM

)

NETASSETSPERSHARE

2.50

2.00

1.50

1.00

0.50

0

2.472.48

2.06

2.43

Year2007 2006 2005 2004 2003

Five-YearGroupFinancialHighlights

648,253

2.35

24,312

4.51

ANNUALREPORT2007

47

CorporateGovernanceStatement

TheBoardofDirectorsiscommittedtoensuringthatgoodcorporategovernanceispracticedandmaintainedthroughouttheGrouptoenhanceshareholders’valueandthefinancialperformanceoftheGroup.

TheBoardispleasedtopresentbelowadescriptionofhowtheGrouphasappliedthePrinciplesofCorporateGovernanceandtheextenttocompliancewiththeBestPracticesassetoutinPart1andPart2oftheMalaysianCodeonCorporateGovernance(“Code”)pursuanttoparagraph15.26oftheListingRequirementsofBursaMalaysiaSecuritiesBerhad(“BursaMalaysia”).ThesePrinciplesandBestPracticeshavebeenappliedconsistentlythroughoutthefinancialyearended31December2007exceptwhereotherwisestatedherein.

BOARD OF DIRECTORS

The Board

TheBoardrecognizesitsmainresponsibilitiesfortheoverallperformanceoftheGroupandfocusesontheGroup’sshortandlongtermgoals,monitoringperformanceanddevisingstrategiesonmanagementandbusinessdevelopmentissuesaswellasupholdinggoodcorporategovernancewithanobjectivetobuildandenhanceshareholders’value.

Board Balance

TherehavebeenseveralchangesintheBoardlately.TheBoardcurrentlyhas7members,comprising6Non-ExecutiveDirectorsand1ExecutiveDirector.Ofthe6Non-ExecutiveDirectors,4areIndependent,thusfulfillingtherequirementthatatleastone-thirdoftheBoardcompriseofIndependentDirectors.

ThecurrentsizeandcompositionoftheBoardreflectsamixofsuitablyqualifiedandexperiencedprofessionalsinthefieldsofaccountancy,bankingandfinance,scientificresearch&development,corporatefinanceandmergers&acquisitions.ThenewcompositionoftheBoardcontinuestoprovidetheGroupwithawealthofknowledgeandexperiencewhichisimportantforthecontinuedsuccessoftheGroup.AbriefprofileofeachDirectorispresentedonpages4to8ofthisAnnualReport.

TheroleoftheChairmanandtheGroupManagingDirectoraredistinctandseparatetoensureabalanceofpowerandauthority.TheChairmanisresponsiblefortheorderlyconductandworkingoftheBoard,andensuresanindependentandbalancedassessmentofproposalsfromthemanagement,whilsttheGroupManagingDirectortakesontheprimaryresponsibilityofmanagingtheGroup’sbusinessandresourcesaswellasimplementingthepoliciesanddecisionsoftheBoard.

Board Meetings

During thefinancialyear, theBoardofDirectorsheld three (3)meetingsanddetailsofDirectors’attendancesaresetoutbelow:

Name of Director No. of Meetings Attended

GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd) 3/3TanSriLeeKimTiong@LeeKimYew 3/3AcademicianTanSriDatukDrOngSoonHock 3/3Dato’AzharBinHashim(resigned wef 29.04.2008) 2/3Dato’OngChongSek (resigned wef 29.04.2008) 3/3LeeSowLin (resigned wef 29.04.2008) 2/3NgNyiHong(resigned wef 29.04.2008) 3/3AbuYazidBinMuharam(resigned wef 29.04.2008) 3/3ChooChinThye (resigned wef 29.04.2008) 3/3ChooCheeBeng (resigned wef 03.03.2008) 3/3MarkVictorRozario(appointed wef 22.04.2008) N/ANikHassanBinNikMohdAmin (appointed wef 29.04.2008) N/AChewChongEu(appointed wef 29.04.2008) N/AChewChengKeat (appointed wef 29.04.2008) N/A

COUNTRYHEIGHTSHOLDINGSBERHAD(119416-K)COUNTRYHEIGHTSHOLDINGSBERHAD(119416-K)

48


Directors’ Training

SaveforthenewlyappointedDirectors,allotherDirectorshaveattendedtheMandatoryAccreditationProgramme.

The Directors are also encouraged to attend seminars/courses from time to time to equip themselves with the necessaryknowledgetodischargetheirresponsibilitiesanddutiesmoreeffectively.

The trainingprogrammesandseminarsorconferencesattendedby theDirectorsduring thefinancialyear includedareasof investmentplanning,changes in lawsandregulations,updatesonfinancial reportingstandards,strategyexecutionandprofitability.

Re-election of Directors

InaccordancewiththeCompany’sArticlesofAssociation,allDirectors(includingtheManagingDirector)shallretirefromofficeatleastonceineverythree(3)yearsbutshallbeeligibleforre-election.

Directorswhoareappointedby theBoardduring thefinancialyearare subject to re-electionat thenextannualgeneralmeetingfollowingtheirappointment.

Supply of Information

TheDirectorshavefullandunrestrictedaccesstocompleteinformationonthetimelybasispertainingtotheGroup’sbusinessandaffairstoenablethemtodischargetheirduties.BoardMeetingswhicharescheduledtobeheldarealsopresentedwithrelevantreportstofacilitateitsdecision-makingprocess.

The Directors have access to the advice and services of the Company Secretary and Senior Management and may seekindependentprofessionaladvice,attheCompany’sexpense,ifrequired,infurtheranceoftheirduties.

Board Committees

The Board delegates certain functions to several committees, namely the Audit Committee, Nomination Committeeand Remuneration Committee to support and assist in discharging its fiduciary duties and responsibilities. Each of thesecommitteesisentrustedwithspecifictasksandhastheauthoritytoexamineparticularissuesandreporttotheBoardwiththeirrecommendations.TheultimateresponsibilityforthefinaldecisiononmostmattersremainswiththeentireBoard.

1. Audit Committee ThereportoftheAuditCommitteeissetoutonpages54to56ofthisAnnualReport.

2. Nomination Committee

TheNominationCommitteeestablishedbytheBoardcomprisesofthefollowingmembers:-

• GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)(Chairman,IndependentNon-ExecutiveDirector);• AcademicianTanSriDatukDr.OngSoonHock(IndependentNon-ExecutiveDirector);and• NikHassanBinNikMohdAmin(IndependentNon-ExecutiveDirector)

ANNUALREPORT2007

49


TheCommitteewithitsappropriatetermsofreferenceisprimarilyresponsibleforidentifyingandmakingrecommendationsfor any new appointment of Board members and the retirement and re-appointment of existing Executive and Non-ExecutiveDirectors.TheCommitteealsoreviewstheBoardstructure,sizeandcompositionincludingtheassessmentoftheeffectivenessoftheBoard,itsCommitteesandcontributionofeachindividualDirector.

TheCommitteemetonfive(5)occasionsduringthefinancialyearandtheattendanceoftheCommitteemembersisasfollows:-

Members No. of Meetings Attended

GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd) 5/5

AcademicianTanSriDatukDr.OngSoonHock 5/5

Dato’AzharBinHashim(resigned wef 29.04.2008) 5/5

NikHassanBinNikMohdAmin(appointed wef 29.04.2008) N/A

3. Remuneration Committee

TheDirectorswhoservedasmembersoftheRemunerationCommitteeareasfollows:

• AcademicianTanSriDatukDr.OngSoonHock(Chairman,IndependentNon-ExecutiveDirector);• GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)(IndependentNon-ExecutiveDirector);• TanSriLeeKimTiong@LeeKimYew(Non-IndependentNon-ExecutiveDirector);and• NikHassanBinNikMohdAmin(IndependentNon-ExecutiveDirector)

TheRemunerationCommitteeisresponsibleformakingrecommendationstotheBoardontheremunerationframeworkforallExecutiveDirectorswiththeunderlyingobjectiveofattractingandretainingDirectorsneededtoruntheGroupsuccessfully.TheRemunerationCommitteealsoreviewstheframeworkforretainingandrewardingseniormanagementinconsiderationoftheCompany’sperformanceandmarketconditions.

The Committee held two (2) meetings during the financial year and the attendance of the Committee members is asfollows:-

Members No. of Meetings Attended

AcademicianTanSriDatukDrOngSoonHock 2/2

GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd) 2/2

TanSriLeeKimTiong@LeeKimYew 0/2

Dato’AzharBinHashim (resigned wef 29.04.2008) 2/2

NikHassanBinNikMohdAmin (appointed wef 29.04.2008) N/A

DIRECTORS’ REMUNERATION

Thecomponentpartsoftheremunerationarestructuredsoastolinkrewardstocorporateandindividualperformance.Surveydataontheremunerationpracticesofcomparablecompaniesaretakenintoconsiderationindeterminingtheremunerationpackage.


50

ThebreakdownoftheDirectors’remunerationduringthefinancialyearisasfollows:-

Name of Director Fees Salary and Benefit- Total other -in-kind remuneration RM RM RM RM

Non-ExecutiveGeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd) 23,000 - - 23,000Dato’AzharBinHashim(resigned wef 29.04.2008) 19,000 - - 19,000AcademicianTanSriDatukDr.OngSoonHock 19,000 - - 19,000ChooChinThye(resigned wef 29.04.2008) 10,000 - - 10,000AbuYazidBinMuharam(resigned wef 29.04.2008) 10,000 60,000 - 70,000NgNyiHong(resigned wef 29.04.2008) 12,000 54,600 1,325 67,925

ExecutiveTanSriLeeKimTiong@LeeKimYew - 366,024 41,050 407,074Dato’OngChongSek(resigned wef 29.04.2008) - 595,194 24,600 619,794LeeSowLin(resigned wef 29.04.2008) - 312,360 29,400 341,760ChooCheeBeng(resigned wef 03.03.2008) - 225,623 6,600 232,223

Total 93,000 1,613,801 102,975 1,809,776

ThenumberofDirectorswhosetotalremunerationfallintotherespectivebandsareasfollows:-

Number of DirectorsRange of Remuneration (RM) Executive Non-Executive

UptoRM50,000 - 4RM50,001toRM100,000 - 2RM200,001toRM300,000 1 -RM300,001toRM400,000 1 -RM400,001toRM500,000 1 -RM600,001toRM700,000 1 -

Total 4 6

SHAREHOLDERS

Dialogue between the Company and Investors

TheCompanyrecognisestheimportanceofcommunicationandproperdisseminationofinformationtoitsshareholders.Theannualreports,announcementsthroughBursaMalaysia,quarterlyfinancialresults,financialstatementsandcircularsprovidevaluableinsightonthelatestdevelopmentsoftheGroup.

Shareholdersandmembersof thepubliccanaccess theCompany’swebsiteatwww.countryheights.com.myfor the latestinformationontheGroup.

Annual General Meeting

TheAnnualGeneralMeetingistheprincipalforumfordialoguewithshareholders.ShareholdersareencouragedtoparticipateintheQuestion&AnswersessioninwhichshareholdersmayraisequestionsregardingtheproposedresolutionsatthemeetingaswellasonmattersrelatingtotheGroup’sbusinessesandaffairs.TheChairmanandtheBoardmembersareinattendancetorespondtoshareholders’queries.


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ACCOUNTABILITY AND AUDIT

Financial Reporting

Inpresentingtheannualfinancialstatementsandquarterlyannouncementsofunauditedconsolidatedresultstoshareholders,the Directors have taken reasonable steps to ensure a balanced and understandable assessment of the Group’s financialpositionandprospects.TheBoardisassistedbytheAuditCommitteeinoverseeingtheGroup’sfinancialreportingprocessesandthequalityofitsfinancialreporting.

Internal Control

TheStatementonInternalControlassetoutonpage57ofthisAnnualReportprovidesanoverviewofthestateofinternalcontrolswithintheGroup.Relationship with Auditors

TheBoardvia theestablishmentofanAuditCommitteemaintainsa formaland transparent relationshipwith theGroup’sauditors.TheexternalauditorswereinvitedtoparticipateandbrieftheAuditCommitteeonspecificissuesatAuditCommitteemeetings.TheroleofboththeexternalandinternalauditorsarefurtherdescribedintheAuditCommitteeReport.

Directors’ Responsibility Statement

TheBoardofDirectorsisresponsibleforensuringthatthefinancialstatementsoftheGroupandoftheCompanyhavebeendrawnup inaccordancewithapplicableapprovedaccounting standards and theprovisionof theCompaniesAct,1965,Malaysia,andforgivingatrueandfairviewof thestateofaffairsof theGroupandof theCompanyasof theendof thefinancialyearandoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyear.

TheBoardofDirectorsissatisfiedthatinpreparingthefinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31December2007,theGrouphasadoptedtheappropriateaccountingpoliciesandappliedthemconsistently,andthatallapplicableapprovedaccountingstandardshavebeenfollowed.

COMPLIANCE STATEMENT

TheGrouphascompliedsubstantiallywiththeprinciplesandbestpracticesoutlineintheCodeexceptforthefollowing:-

GiventhecurrentcompositionoftheBoardwhichreflectsastrongindependentelementandtheseparationoftherolesoftheChairmanandGroupManagingDirector,theBoarddoesnotconsideritnecessaryatthisjuncturetonominateaSeniorIndependentNon-ExecutiveDirector.

TheBoarddoesnothaveaformalscheduleofmattersspecificallyreservedfordecision-making.However,ithasbeenthepracticefortheBoardtodeliberateandapproveonsignificantmattersthatconcerntheoverallstrategyoftheGroupsuchas major investment or divestment decisions, financial and operation performance, major capital expenditure and majoracquisitionsanddisposals.

ADDITIONAL COMPLIANCE INFORMATION

ThefollowinginformationisprovidedincompliancewithParagraph9.25oftheListingRequirementsofBursaMalaysia:

Material Contracts

MaterialcontractsoftheCompanyanditssubsidiariesinvolvingDirectorsandsubstantialshareholderseithersubsistingattheendofthefinancialyearorenteredintosincetheendofthepreviousfinancialyeararedisclosedinNote40totheFinancialStatements.

Contracts Relating To Loans

TherewerenocontractsrelatingtoaloansbytheCompanyinrespectoftheabovesaiditem.


52

Recurrent Related Party Transactions

Theexistingshareholders’mandatefortheCompanyand/oritssubsidiariestoenterintorecurrentrelatedpartytransactionofrevenueortradingnaturewhichisnecessaryforitsday-to-dayoperationsshallexpireattheconclusionoftheforthcomingAnnualGeneralMeetingandissubjecttorenewalbytheshareholdersatthesaidAnnualGeneralMeeting.

SignificantrelatedpartytransactionsoftheGrouparedisclosedinNote40totheFinancialStatements.

Options, Warrants or Convertible Securities

TheCompanydidnotissueanyoptions,warrantsorconvertiblesecuritiesduringthefinancialyear.

American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme

Duringthefinancialyear,theCompanydidnotsponsoranyADRorGDRprogramme.

Imposition of Sanctions / Penalties

There is apenaltyofRM2,744,000 imposedby the InlandRevenueBoard in respectofoutstanding taxes relating to thefinancialyearended31December2007.

Non-Audit Fees

Thenon-auditfeespaidandpayabletoexternalauditorsbytheCompanyanditssubsidiariesforthefinancialyearended31December2007amountedtoRM134,000.

Variation between Audited and Unaudited Results for the Financial Year Ended 31 December 2007

Therewasnovarianceof10%ormorebetweentheauditedresultsforthefinancialyearended31December2007andtheunauditedresultspreviouslyannouncedbytheCompany.

Profit Guarantees

TherewasnoprofitguaranteegivenbytheCompanyduringthefinancialyear.

Share Buy-Back

Theexistingauthority for theCompany topurchaseup to10%of its issuedandpaid-upsharecapital shallexpireat theconclusionof the forthcomingAnnualGeneralMeetingand is subject to renewalby the shareholdersat the saidAnnualGeneralMeeting.

Duringthefinancialyear,therewerenosharebuybacksbytheCompany.

Revaluation of Landed Properties

TherevaluationpolicyoftheGroupinrelationtoitslandedpropertiesissetoutonNote2oftheFinancialStatements.

Utilisation of Proceeds

Thestatusofutilisationoftheproceedsfromthedisposaloftheinvestmentproperty,MinesShoppingFairasof31December2007wasasfollows:-

Description Proposed Utilisation Actual Utilisation RM’000 RM’000

RedemptionoftheRedeemableConvertibleSecuredLoanStocks2004/2011(“RCSLSSeriesA”) 420,000 420,000Expensesrelatedtothedisposal 9,600 5,608Workingcapital 600 600SettlementofinterestonRCSLSSeriesA 1,800 1,800

Total 432,000 428,008

ThebalanceoftheproceedsamountedtoRM3.992millionisyettobeutilised.


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AuditCommitteeReport

TheBoardAuditCommitteeofCHHBispleasedtopresent theAuditCommitteeReport for theyearended31December2007.

Membership and Meetings

TheAuditCommitteeconsistsofthefollowingmembers:-

• NikHassanBinNikMohdAmin(Chairman,IndependentNon-ExecutiveDirector);• GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)(IndependentNon-ExecutiveDirector);• AcademicianTanSriDatukDrOngSoonHock(IndependentNon-ExecutiveDirector);and• ChewChongEu(IndependentNon-ExecutiveDirector);

Therewerefive(5)meetingsheldinthefinancialyearended31December2007.TheattendanceoftheCommitteemembersisasfollows:-

Members No. of Meetings AttendedGeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd) 5/5AcademicianTanSriDatukDrOngSoonHock 5/5Dato’AzharBinHashim(resigned wef 29.04.2008) 4/5NgNyiHong(resigned wef 29.04.2008) 4/5NikHassanBinNikMohdAmin(appointed wef 29.04.2008) N/AChewChongEu (appointed wef 29.04.2008) N/A

TERMS OF REFERENCE

Composition

TheAuditCommitteeshallbeappointedbytheBoardfromamongsttheDirectorsoftheCompanyandshallconsistofnotlessthan3membersofwhomthemajorityshallbeIndependentDirectors.AtleastonememberoftheAuditCommittee:-

i) mustbeamemberoftheMalaysianInstituteofAccountants;

ii) if the person is not a member of the Malaysian Institute ofAccountants, he must have at least three years’ workingexperienceand:-• hemusthavepassedtheexaminationsspecifiedinPart1ofthe1stScheduleoftheAccountantsAct1967;or• hemustbeamemberofoneoftheassociationsofaccountantsspecifiedinPartIIofthe1stScheduleoftheAccountants

Act1967;or• fulfillssuchotherrequirementsasprescribedbyBursaMalaysia.

NoalternateDirectorshallbeappointedasamemberoftheAuditCommittee.ThemembersoftheAuditCommitteeshallelectaChairmanfromamongtheirnumberwhoshallbeanIndependentDirector.

Quorum

Thequorumshallnotbelessthan2,themajorityofwhomshallbeIndependentDirectors.


54

Attendance & Frequency of Meetings

TheAuditCommitteeshallmeetastheChairmandeemsnecessarybutnolessthan4timesayear.TheChairmanshallbeempoweredtoinviteanyperson(s)tomeetingsoftheAuditCommittee,whendeemedappropriate.

OtherDirectors,employees,theExternalandInternalAuditorsmayattendmeetingsupontheinvitationoftheAuditCommittee.Atleasttwiceayear,theAuditCommitteeshallmeetwiththeExternalAuditorswithoutthepresenceofanyexecutiveofficeroftheGroup.

Authority

TheCommitteeisauthorisedbytheBoardtoinvestigatewithinitstermsofreference.Itisauthorisedtoseekanyinformationitrequiresfromanyemployeeandallemployeesaredirectedtoco-operatewiththeCommitteeonanyrequestmade.

TheCommitteeisauthorisedbytheBoardtoseekindependentprofessionaladviceinthedischargeofitsdutiesiftheCommitteeconsidersitnecessary.

Functions of the Audit Committee

ThedutiesoftheCommitteeshallbe:

a) TomakeappropriaterecommendationstotheBoardonmatterspertainingtothenomination,appointmentanddismissalofexternalauditorsandthefeethereof;

b) Toreviewanddiscusswiththeexternalauditorsandinternalauditorsbeforethecommencementofaudit,thenatureandscopeoftheaudit;

c) Toreviewthequarterlyandyear-endfinancialstatementsoftheGroupandtheCompanypriortosubmissiontotheBoardofDirectors,focusingparticularlyon:

i) publicannouncementofresultsanddividendpayments; ii) anysignificantchangesinaccountingpoliciesandpractices; iii) significantadjustmentsandunusualeventsresultingfromtheaudit; iv) thegoingconcernassumption;and v) compliancewithstockexchange,accountingstandardsandlegalrequirements.d) Todiscussproblemsandreservationsarisingfromtheinterimandfinalaudits,andanyothermatterstheexternalauditors

maywishtodiscuss(intheabsenceofManagementwherenecessary);e) Toreviewanyexternalauditors’lettertomanagement(ifany)andmanagement’sresponse;f) Toreviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunctionandthatithasthe

necessaryauthoritytocarryoutitswork;g) Toreviewtheinternalauditplanningmemorandumandresultsoftheinternalauditprocess,andwherenecessary,ensure

thatappropriateactionistakenontherecommendationsoftheinternalauditfunction;h) Toreviewanyappraisalorassessmentoftheperformanceofmembersoftheinternalauditfunction;i) Toapproveanyappointmentordismissalofinternalauditors;j) Toinformitselfofresignationofinternalauditorsandprovidetheinternalauditorsanopportunitytosubmitreasonsfor

resigning;k) ToconsideranyrelatedpartytransactionsandconflictofinterestsituationthatmayarisewithintheCompanyorGroup

thatmayraisequestionsovermanagement’sintegrity;andl) Toconsiderthefindingsofinternalauditinvestigationsandmanagement’sresponse.


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Summary of Activities of the Audit Committee

Duringthefinancialyear,theAuditCommitteecarriedoutitsdutiesassetoutinthetermsofreferenceanddiscussedthefollowingissues:-

1) Reviewedtheauditplanoftheexternalauditors,intermsofthenatureoftheauditprocedures,significantaccountingandauditingissues,impactofneworproposedchangesintheaccountingstandardsandregulatoryrequirements;

2) Reviewedquarterlyfinancialresultsannouncementsandtheyear-endauditedfinancialstatementspriortotheBoardofDirectors’approval,focusingparticularlyon:-- OverallperformanceoftheGroup- Anychangesinaccountingpoliciesandpractices- Compliancewithapplicableaccountingstandardsandregulatoryrequirements

3) Reviewedwiththeexternalauditors’anysignificantfindingsinrelationtotheaudit;

4) Reviewed the audit fees and the performance of the external auditors before recommending to the Board on the re-appointment;

5) Reviewedtheinternalauditplanandinternalauditreportsandconsideredthemajorfindingsofinternalauditreviewandmanagement’sresponse;and

6) ReviewedtherelatedpartytransactionsenteredintobytheCompanyandtheGroup.

Summary of Activities of the Internal Audit Function

TheCompanyhasoutsourceditsinternalauditfunctiontoanexternalconsultantsinceNovember2005.TheinternalauditreviewoftheCompany’soperationsencompassesanindependentassessmentoftheCompany’scompliancewithitsinternalcontrolsandmakesrecommendationsforimprovements.

TheoutsourcedinternalauditfunctionprovidesindependentandobjectiveadviceontheeffectivenessoftheGroup’sinternalcontroltotheAuditCommitteeandthereaftertothemanagement.Duringthefinancialyear,theoutsourcedinternalauditfunctionconductedindependentreviewsandevaluatedriskexposuresrelatingtothemajorcomponents’operationsandinformationsystemsasfollows:-

- Effectivenessandefficiencyofoperations;- Reliabilityoffinancialandoperationalinformation;and- Extentofcompliancewiththeestablishedpolicies,procedureslawsandregulations.

At theconclusionof thevariousauditscarriedout, theweaknessesand the recommendedcorrectiveactions tobe takentogetherwiththemanagement’sresponsewerehighlightedtotheAuditCommittee.Subsequentlyfollowupreviewswereconductedtoensurethatcorrectiveactionswereimplementedbythemanagementaccordingly.


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StatementOnInternalControl

Introduction

TheBoardofCHHBacknowledgestheimportantofmaintainingasoundsystemofinternalcontrolstosafeguardshareholders’investmentsandtheGroup’sassets.GuidedbytheStatementonInternalControl:GuidanceforDirectorsofPublicListedCompanies,theBoardispleasedtopresenttheStatementonInternalControloftheGrouppursuanttoparagraph15.27(b)oftheListingRequirementsofBursaMalaysia.

Board Responsibility

TheBoardaffirmsitsoverallresponsibilityfortheGroup’ssystemofinternalcontrolandriskmanagement,andforreviewingtheadequacyandintegrityofthesesystems.

However,inviewoftheinherentlimitationsinanysystemofinternalcontrol,suchsystemsaredesignedonlytomanagetherisksratherthantoeliminaterisksthatmayimpedetheachievementoftheGroup’sobjectives.Thesystembyitsnaturecanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatements,fraudsandlosses.

TheBoardconfirmsthatthereisanon-goingprocessforidentifying,evaluatingandmanagingsignificantrisksfacedbytheGroupandtheprocesshasbeeninplaceforthefinancialyearanduptothedateofthisAnnualReport.

Risk Management

TheBoardwiththeassistanceoftheAuditCommitteecontinuouslyreviewexistingrisksandidentifynewrisksthattheGroupfacesandthemanagementactionplanstomanagetherisksonanongoingbasis.

TheriskmanagementprocessinvolvestheseniormanagementaswellastheExecutiveDirectorsthroughdirectparticipationinperiodicmanagementmeetings.ThesemeetingsareheldtoassessandmonitortheGroup’sriskaswellasdeliberateandconsidertheGroup’sfinancialperformance,businessdevelopment,managementandcorporateissue.

Internal Control Function

TheGroup’sinternalauditfunctionisoutsourcedtoaprofessionalinternalauditserviceproviderfirm.TheoutsourcedinternalauditfunctionindependentlyreviewstheriskidentificationproceduresandcontrolprocessesimplementedbythemanagementandreportstotheAuditCommitteeonaquarterlybasisormoreoftenifrequired.AreasofimprovementandrecommendationsforimprovementarealsopresentedtotheAuditCommitteefortheirconsideration.

TheareasofreviewweresetoutinathreeyearinternalauditplanwhichhasbeenapprovedbytheAuditCommittee.Sincetheappointmentof theoutsourced internalaudit function,periodic internalauditvisitshavebeencarriedout tomonitorcompliancewith theGroup’sproceduresandtoreviewtheadequacyandeffectivenessof theGroup’ssystemsof internalcontrol.

Key Elements of Control Structure

ThekeyelementsoftheGroup’ssystemofinternalcontrolareasfollow:-

• Anorganizationstructurethatformallydefineslinesofresponsibilityanddelegationofauthority;

• Regularinternalauditvisitsheldtoreviewtheeffectivenessofthebusinessprocessesandsystemofinternalcontrolandtoensureaccurateandtimelyfinancialmanagementreporting;

• Regularreviewandassessmentof theGroup’sstrategicdirectionafter takingintoconsiderationchangesin themarketconditionandkeybusinessrisk;

• Quarterlyreviewof theactualperformancecomparedwithbudgetwithdetailedexplanationsofanymajorvariances;and

• Key functions such asfinance, tax, treasury, corporate affairs, strategicplanning and legalmatters are controlled andmanagedcentrally.

The Group’s system of internal control does not apply to associate companies over which the Group does not have fullmanagementcontrol.

TheBoardisoftheviewthatthesystemofinternalcontrolswasgenerallysatisfactoryandhasnotresultedinanymateriallosses,contingenciesoruncertaintiesthatwouldrequiredisclosureintheAnnualReport.

ANNUALREPORT2007

57

60 Directors’Report

63 StatementbyDirectors

63 StatutoryDeclaration

64 ReportoftheAuditors

65 IncomeStatements

66 BalanceSheets

68 ConsolidatedStatementofChangesinEquity

70 CompanyStatementofChangesinEquity

71 ConsolidatedCashFlowStatement

73 CompanyCashFlowStatememt

74 NotestotheFinancialStatements

FinancialStatements

COUNTRY HEIGHTS HOLDINGS BERHAD(119416-K)

60

Directors’Report

ThedirectorshavepleasureinpresentingtheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31December2007.

PRINCIPAL ACTIVITIES

TheprincipalactivitiesoftheCompanyareinvestmentholdingandtheprovisionofmanagementservices.

The principal activities of the subsidiaries and associates are shown in Notes 18 and 19 to the financial statementsrespectively.

TherehavebeennosignificantchangesinthenatureoftheprincipalactivitiesofthesubsidiariesandassociatesduringthefinancialyearexceptforthedisposalofashoppingmallasdisclosedinNote12tothefinancialstatementswhichresultedinthediscontinuanceofthelettingofshoppingmalllotsandpromotionspaceoperations.

RESULTS Group Company RM’000 RM’000

(Loss)/profitaftertaxfromcontinuingoperations (25,108) 10,924Profitfortheyearfromdiscontinuedoperation 124,916 -

Profitfortheyear 99,808 10,924Attributableto:EquityholdersoftheCompany 100,481 10,924Minorityinterests (673) - 99,808 10,924

Therewerenomaterial transfers toor fromreservesorprovisionsduring thefinancialyearother thanasdisclosedin thefinancialstatements.

Intheopinionofthedirectors,theresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature,otherthantheeffectsarisingfromthedisposalofashoppingmallasdisclosedinNote12tothefinancialstatements.

DIVIDENDS

NodividendhasbeenpaidordeclaredbytheCompanysincetheendofthepreviousfinancialyear.Thedirectorsdonotrecommendthepaymentofanydividendinrespectofthecurrentfinancialyear.

DIRECTORSThenamesofthedirectorsoftheCompanyinofficesincethedateofthelastreportandatthedateofthisreportare:

Gen.TanSri(Dr)MohamedHashimbinMohdAli(Rtd)TanSriLeeKimTiong@LeeKimYewAcademicianTanSriDatukDr.OngSoonHockMarkVictorRozario (appointedw.e.f.22April2008)NikHassanbinNikMohdAmin (appointedw.e.f.29April2008)ChewChongEu (appointedw.e.f.29April2008)ChewChengKeat (appointedw.e.f.29April2008)ChooCheeBeng (resignedw.e.f.3March2008)Dato’AzharbinHashim (resignedw.e.f.29April2008)Dato’OngChongSek (resignedw.e.f.29April2008)LeeSowLin(f) (resignedw.e.f.29April2008)NgNyiHong(f) (resignedw.e.f.29April2008)AbuYazidbinMuharam (resignedw.e.f.29April2008)ChooChinThye (resignedw.e.f.29April2008)

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DIRECTORS’ BENEFITS

Neitherat theendof thefinancialyear,noratanytimeduringthatyear,did theresubsistanyarrangement towhichtheCompanywasaparty,wherebythedirectorsmightacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.

Since theendof thepreviousfinancialyear,nodirectorhas receivedorbecomeentitled to receiveabenefit (other thanbenefitsincludedintheaggregateamountofemolumentsreceivedordueandreceivablebythedirectorsasshowninNote8tothefinancialstatementsorthefixedsalaryofafull-timeemployeeoftheCompany)byreasonofacontractmadebytheCompanyorarelatedcorporationwithanydirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterest,exceptasdisclosedinNote40tothefinancialstatements.

DIRECTORS’ INTERESTS

AccordingtotheRegisterofDirectors’Shareholdings,theinterestsofdirectorsinofficeattheendofthefinancialyearinsharesandbondsintheCompanyanditsrelatedcorporationsduringthefinancialyearwereasfollows:

Number of Ordinary Shares of RM1.00 Each 1.1.2007 Acquired Sold 31.12.2007The Company

DirectInterest:TanSriLeeKimTiong@LeeKimYew 83,982,430 773,100 - 84,755,530Gen.TanSri(Dr)MohamedHashim binMohdAli(Rtd) 1,480,842 - - 1,480,842Dato’AzharbinHashim 800 - - 800AcademicianTanSriDatukDr.OngSoonHock 16,000 - - 16,000Dato’OngChongSek 1,390,200 88,600 (91,600) 1,387,200LeeSowLin - 10,000 - 10,000IndirectInterest:TanSriLeeKimTiong@LeeKimYew 39,807,000 1,944,600 - 41,751,600 RM150 million 3% to 8% Redeemable Secured Bonds 1996/2009 1.1.2007 Acquired Sold 31.12.2007The Company DirectInterest:TanSriLeeKimTiong@LeeKimYew 150,000,000 - - 150,000,000

ByvirtueoftheirinterestsinsharesintheCompany,theabovedirectorsaredeemedinterestedinsharesofalltheCompany’ssubsidiariestotheextenttheCompanyhasaninterest.

NoneoftheotherdirectorsinofficeattheendofthefinancialyearhadanyinterestinsharesorbondsintheCompanyoritsrelatedcorporationsduringthefinancialyear.

Directors’Report(Cont’d)


62

OTHER STATUTORY INFORMATION

(a) BeforetheincomestatementsandbalancesheetsoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablesteps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making ofprovision for doubtful debts and satisfied themselves that all knownbaddebts hadbeenwrittenoff and thatadequateprovisionhadbeenmadefordoubtfuldebts;and

(ii) toensurethatanycurrentassetswhichwereunlikelytorealisetheirvaluesasshownintheaccountingrecordsin theordinarycourseofbusinesshadbeenwrittendown toanamountwhich theymightbeexpectedso torealise.

(b) Atthedateofthisreport,thedirectorsarenotawareofanycircumstanceswhichwouldrender:

(i) theamountwrittenoffforbaddebtsortheamountoftheprovisionfordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent;and

(ii) thevaluesattributedtocurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading.

(c) At thedateof this report, thedirectorsarenotawareofanycircumstanceswhichhavearisenwhichwould renderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

(d) Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesnototherwisedealtwithinthisreportorfinancialstatementsoftheGroupandoftheCompanywhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.

(e) Atthedateofthisreport,theredoesnotexist:

(i) anychargeontheassetsoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson;or

(ii) anycontingentliabilityoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyear.

(f) Intheopinionofthedirectors:

(i) nocontingentorother liabilityhasbecomeenforceableor is likely tobecomeenforceablewithin theperiodoftwelvemonthsaftertheendofthefinancialyearwhichwillormayaffecttheabilityoftheGrouporoftheCompanytomeettheirobligationswhentheyfalldue;and

(ii) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGrouporoftheCompanyforthefinancialyearinwhichthisreportismade.

SIGNIFICANT EVENTS

DetailsofsignificanteventsaredisclosedinNote44tothefinancialstatements.

AUDITORS

Theauditors,Ernst&Young,haveexpressedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectorsdated29April2008.

Gen.TanSri(Dr)MohamedHashimbinMohdAli(Rtd) TanSriLeeKimTiong@LeeKimYew

Directors’Report(Cont’d)

ANNUALREPORT2007

63

I, Chua Hee Boon, being the Group Financial Controller primarily responsible for the financial management of CountryHeightsHoldingsBerhad,dosolemnlyandsincerelydeclarethattheaccompanyingfinancialstatementssetoutonpages65to162areinmyopinioncorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedChuaHeeBoonatKualaLumpurintheFederalTerritoryon29April2008

ChuaHeeBoon

Beforeme,

KaramSinghA/LSudagarSingh,PMC(W353)CommissionerforOathsKualaLumpur

StatementByDirectorsPursuanttoSection169(15)oftheCompaniesAct,1965

We,Gen.TanSri(Dr)MohamedHashimbinMohdAli(Rtd)andTanSriLeeKimTiong@LeeKimYew,beingtwoofthedirectorsofCountryHeightsHoldingsBerhad,doherebystatethat,intheopinionofthedirectors,theaccompanyingfinancialstatementssetoutonpages65 to162aredrawnup inaccordancewith theprovisionsof theCompaniesAct,1965andapplicableFinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2007andoftheresultsandthecashflowsoftheGroupandoftheCompanyfortheyearthenended.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectorsdated29April2008.

Gen.TanSri(Dr)MohamedHashimbinMohdAli(Rtd) TanSriLeeKimTiong@LeeKimYew

StatutoryDeclarationPursuanttoSection169(16)oftheCompaniesAct,1965


64

Wehaveauditedthefinancialstatementssetoutonpages65to162.ThesefinancialstatementsaretheresponsibilityoftheCompany’sdirectors.

It isour responsibility to forman independentopinion,basedonouraudit,on thefinancialstatementsand toreportouropiniontoyou,asabody,inaccordancewithSection174oftheCompaniesAct,1965andfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

WeconductedourauditinaccordancewithapplicableApprovedStandardsonAuditinginMalaysia.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethatourauditprovidesareasonablebasisforouropinion.

Inouropinion:

(a) thefinancialstatementshavebeenproperlydrawnupinaccordancewiththeprovisionsoftheCompaniesAct,1965andapplicableFinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewof:

(i) thefinancialpositionoftheGroupandoftheCompanyasat31December2007andoftheresultsandthecashflowsoftheGroupandoftheCompanyfortheyearthenended;and

(ii) themattersrequiredbySection169oftheCompaniesAct,1965tobedealtwithinthefinancialstatements;and

(b) theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyandbyitssubsidiariesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

Wehaveconsideredthefinancialstatementsandtheauditors’reportsthereonofthesubsidiariesofwhichwehavenotactedasauditors,asindicatedinNote18tothefinancialstatements,beingfinancialstatementsthathavebeenincludedintheconsolidatedfinancialstatements.

WearesatisfiedthatthefinancialstatementsofthesubsidiariesthathavebeenconsolidatedwiththefinancialstatementsoftheCompanyareinformandcontentappropriateandproperforthepurposesofthepreparationoftheconsolidatedfinancialstatementsandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

The auditors’ reports on thefinancial statementsof the subsidiarieswerenot subject to anyqualificationmaterial to theconsolidated financial statements and did not include any comment required to be made under Section 174(3) of theCompaniesAct,1965.

Ernst&Young LeeSengHuatAF:0039 2518/12/09(J)CharteredAccountants PartnerKualaLumpur,Malaysia 29April2008

ReportOfTheAuditorstothemembersofCountryHeightsHoldingsBerhad(IncorporatedinMalaysia)

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IncomeStatementsfortheyearended31December2007

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated RestatedContinuing Operations Revenue 3 219,780 174,111 17,802 8,306Costofsales 4 (101,332) (82,253) - -

Grossprofit 118,448 91,858 17,802 8,306Otherincome 21,492 15,581 3,883 937Sellingandmarketingexpenses (7,953) (6,706) (214) (515)Administrativeexpenses (22,556) (23,836) (3,244) (3,466)Otherexpenses (76,331) (82,826) (5,435) (320)

Operatingprofit/(loss) 33,100 (5,929) 12,792 4,942Financecosts 5 (45,590) (35,327) (163) (1,761)Shareofresultsofassociates (158) (119) - -

(Loss)/profitbeforetax 6 (12,648) (41,375) 12,629 3,181

Incometaxexpense 9 (12,460) (2,038) (1,705) (984)(Loss)/profitfortheyearfrom continuingoperations (25,108) (43,413) 10,924 2,197Discontinued OperationProfit for the year from discontinued operation 12 124,916 7,383 - -Profit/(loss) for the year 99,808 (36,030) 10,924 2,197Attributableto:EquityholdersoftheCompany 100,481 (32,689) 10,924 2,197Minorityinterests (673) (3,341) - - 99,808 (36,030) 10,924 2,197Earnings per share attributable to equity holders of the Company (sen):Basic,forlossfromcontinuing operations 10(a) (8.86) (14.53)Basic,forprofitfromdiscontinued operation 10(a) 45.31 2.68

Basic,forprofit/(loss)fortheyear 10 36.45 (11.85)Diluted 10(b) N/A N/ANetdividendsperordinaryshare inrespectoftheyear(sen) 11 - - - -

Theaccompanyingnotesformanintegralpartofthefinancialstatements.


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BalanceSheetsasat31December2007

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated

ASSETS Non-current assetsHotelpropertiesandexhibitioncentre &showroom 13 348,675 351,667 - -Otherproperty,plantandequipment 14 112,676 118,868 58 60

Property,plantandequipment 461,351 470,535 58 60Investmentproperties 15 91,367 431,793 - -Prepaidlandleasepayments 16 356,943 360,352 - -Landheldforpropertydevelopment 17(a) 176,638 195,545 - -Investmentinsubsidiaries 18 - - 224,832 231,300Investmentinassociates 19 3,295 610 247 247Otherinvestments 20 3,496 7,299 3,181 7,093Long-termtradereceivables 23 17,349 11,097 - -Fundheldintrust 24 3,998 - - -Deferredtaxassets 33 13,486 25,600 - -Goodwillonconsolidation 21 - - - - 1,127,923 1,502,831 228,318 238,700Current assets Propertydevelopmentcosts 17(b) 104,619 86,738 - -Inventories 22 159,141 163,717 - -Tradeandotherreceivables 23 108,480 89,979 549,091 536,390Taxrecoverable 2,915 1,566 2,231 687Cashandbankbalances 25 49,110 40,924 535 75 424,265 382,924 551,857 537,152Non-currentassetclassifiedasheld forsale 26 873 - - - 425,138 382,924 551,857 537,152

TOTAL ASSETS 1,553,061 1,885,755 780,175 775,852

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Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated EQUITY AND LIABILITIES Equity attributable to equity holders of the Company Sharecapital 35 275,707 275,707 275,707 275,707Sharepremium 57,251 57,251 57,251 57,251Otherreserves 36 159,008 159,343 19,048 19,048Retainedearnings 37 177,420 75,779 30,772 19,848 669,386 568,080 382,778 371,854

Minority interest 43,785 44,458 - -

Total equity 713,171 612,538 382,778 371,854Non-current liabilitiesBorrowings 27 376,292 806,197 150,000 150,000Longtermliabilities 32 5,073 5,099 - -Deferredincome 32 27,734 24,749 - -Deferredtaxliabilities 33 92,702 132,059 - -

Non-currentliabilities 501,801 968,104 150,000 150,000Current liabilities Borrowings 27 27,952 30,884 - -Tradeandotherpayables 34 262,521 211,886 247,397 253,998Taxpayables 47,616 62,343 - - 338,089 305,113 247,397 253,998

Total liabilities 839,890 1,273,217 397,397 403,998

TOTAL EQUITY AND LIABILITIES 1,553,061 1,885,755 780,175 775,852

BalanceSheetsasat31December2007(Cont’d)



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<--Attributable to Equity Holders of the Company--> <-Non-Distributable-> Distributable Share Share Other Retained Minority Total Capital Premium Reserves Earnings Total Interests Equity Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000At 1 January 2006 275,699 57,232 289,064 61,872 683,867 47,799 731,666Effectsofadopting FRS140 - - (75,855) 70,784 (5,071) - (5,071) 275,699 57,232 213,209 132,656 678,796 47,799 726,595Depreciationtransfer onrevaluedhotel propertiesand exhibitioncentre& showroomand prepaidlandlease payments 36(a)(i) - - (1,838) 1,838 - - -Transfertodeferredtax 33 - - (45,762) (26,026) (71,788) - (71,788)Foreignexchange differences, representing netexpense recognisedinequity 36(b) - - (6,266) - (6,266) - (6,266)Nettransfersandlosses recogniseddirectly inequity - - (53,866) (24,188) (78,054) - (78,054)

Netlossfortheyear - - - (32,689) (32,689) (3,341) (36,030)Totalrecognised incomeandexpense fortheyear - - (53,866) (56,877) (110,743) (3,341) (114,084)Ordinarysharesissued duringtheyear pursuanttoWarrants 1996/2006 35 8 19 - - 27 - 27

At 31 December 2006 275,707 57,251 159,343 75,779 568,080 44,458 612,538

ConsolidatedStatementOfChangesInEquityfortheyearended31December2007

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<--Attributable to Equity Holders of the Company--> <-Non-Distributable-> Distributable Share Share Other Retained Minority Total Capital Premium Reserves Earnings Total Interests Equity Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000At 1 January 2007 275,707 57,251 159,343 75,779 568,080 44,458 612,538Depreciationtransfer onrevaluedhotel propertiesand exhibitioncentre& showroomand prepaidlandlease payments 36(a)(i) - - (1,863) 1,863 - - -Transferfromdeferred tax 33 - - 2,179 (703) 1,476 - 1,476Foreignexchange differences, representing netexpense recognisedinequity 36(b) - - (651) - (651) - (651)Nettransfersandprofit recogniseddirectly inequity - - (335) 1,160 825 - 825

Netprofitfortheyear - - - 100,481 100,481 (673) 99,808Totalrecognised incomeandexpense fortheyear - - (335) 101,641 101,306 (673) 100,633At 31 December 2007 275,707 57,251 159,008 177,420 669,386 43,785 713,171

ConsolidatedStatementOfChangesInEquityfortheyearended31December2007(Cont’d)



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<--Non-Distributable--> Distributable Share Share Other Retained Capital Premium Reserves Earnings Total Note RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2006 275,699 57,232 19,048 17,651 369,630Ordinarysharesissuedduringtheyear pursuanttoWarrants1996/2006 35 8 19 - - 27Profitfortheyear,representingtotal recognisedincomeandexpense fortheyear - - - 2,197 2,197

At 31 December 2006 275,707 57,251 19,048 19,848 371,854

At 1 January 2007 275,707 57,251 19,048 19,848 371,854Profitfortheyear,representingtotal recognisedincomeandexpense fortheyear - - - 10,924 10,924

At 31 December 2007 275,707 57,251 19,048 30,772 382,778

CompanyStatementOfChangesInEquityfortheyearended31December2007


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2007 2006 Note RM’000 RM’000 Restated

CASH FLOWS FROM OPERATING ACTIVITIES(Loss)/profitbeforetaxationfrom: Continuingoperations (12,648) (41,375) Discontinuedoperation 12 91,263 7,410 78,615 (33,965)Adjustmentsfor: Depreciationofotherproperty,plantandequipment 14 14,449 19,725 Depreciationofhotelpropertiesandexhibitioncentre&showroom 13 4,198 4,135 Amortisationofprepaidlandleasepayment 16 4,488 4,048 Otherproperty,plantandequipmentwrittenoff 5 4,583 Interestexpense - Continuingoperations 5 45,590 35,327 - Discontinuedoperation 12 15,288 15,692 Allowancefordoubtfuldebts-others 6,733 6,545 Allowancefordoubtfuldebtswrittenback (3,497) (1,385) Baddebtswrittenoff 5,407 3,349 Inventorieswrittenoff 95 500 Investmentpropertieswrittenoff 15 105 - Fairvalueadjustmenttoinvestmentproperties 15 (694) - Lossondisposalofinvestmentinassociate 15 - Gainondisposalofotherproperty,plantandequipment (469) (1,715) Gainondisposalofinvestmentproperties (84,201) (769) Dividendincome 3 (56) (753) Interestincome (2,354) (1,582) Shareofresultsofassociates 158 119 Netforeignexchange(gain)/loss (295) 46 Reversalofdeferredincome (273) (5,157) (Gain)/lossondisposalofotherinvestments (2,055) 5,200 Impairmentlossesinvalueofotherinvestments 124 231 Reversalofimpairmentlossesinvalueofotherinvestments (341) (6,390) Amortisationofdeferredincome (659) (687)

Operatingprofitbeforeworkingcapitalchanges 80,376 47,097

Inventories 274 990 Propertydevelopmentcosts 755 859 Receivables (63,716) (9,259) Deferredincome 3,087 5,514 Payables 45,722 (29,925)

Cashgeneratedfromoperations 66,498 15,276

Interestpaid (38,143) (39,056) Taxpaid (1,566) (644)

Netcashgeneratedfrom/(usedin)operatingactivities 26,789 (24,424)

ConsolidatedCashFlowStatementfortheyearended31December2007


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ConsolidatedCashFlowStatementfortheyearended31December2007(Cont’d)

2007 2006 Note RM’000 RM’000 Restated

CASH FLOWS FROM INVESTING ACTIVITIES Purchaseofotherproperty,plantandequipment (6,767) (12,596)Expenditureonhotelpropertiesandexhibitioncentre&showroom 13 (1,206) (221)Expenditureoninvestmentproperties 15 (944) (1,838)Proceedsfromdisposalofotherproperty,plantandequipment 1,998 3,049Additionalinvestmentinotherinvestments (9,587) (7,092)Proceedsfromdisposalofotherinvestments 15,662 7,239Investmentinassociates 19 (3,110) -Proceedsfromdisposalofsubsidiaries 18(a) 3,740 -Proceedsfromdisposalofinvestmentproperties 421,421 2,685Proceedsfromdisposalofassociates 19 252 -Interestreceived 2,196 1,323Proceedsfromissuanceofordinaryshares - 27Netdividendreceived 46 193

Netcashgeneratedfrom/(usedin)investingactivities 423,701 (7,231)CASH FLOWS FROM FINANCING ACTIVITIES Bondinterestexpensepaid (9,000) (8,975)Hirepurchaseandleasecreditors (515) (322)Drawdownofgolfmembershiploans 294 227Drawdownoftermloans - 3,309Repaymentoftermloans (288) (31,120)Repaymentofworkingcapitalloan (2,740) (5,260)RepaymentofBankGuaranteedCommercialPaper/ MediumTermNotes 31 (4,357) -DrawdownofBankGuaranteedCommercialPaper/ MediumTermNotes 31 3,000 129,098RepaymentofRCSLSSeriesA 30 (420,000) -Repaymentofrevolvingcredits (6,900) (59,378)

Netcash(usedin)/generatedfromfinancingactivities (440,506) 27,579Effectsofexchangeratechanges (23) (1,238)NET MOVEMENT IN CASH AND CASH EQUIVALENTS 9,961 (5,314)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 35,154 40,468

CASH AND CASH EQUIVALENTS AT END OF YEAR 25 45,115 35,154


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CompanyCashFlowStatementfortheyearended31December2007

2007 2006 Note RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES

Profitbeforetaxation 12,629 3,181Adjustmentsfor: Dividendincome 3 (15,596) (6,193) Interestincome (14) (13) Interestexpense 5 163 1,761 Depreciationofotherproperty,plantandequipment 14 18 17 Impairmentlossesinvalueofotherinvestments 124 231 Impairmentlossesininvestmentofsubsidiaries 4,269 - Reversalofimpairmentlossesinvalueofotherinvestments (231) (6,154) (Gain)/lossondisposalofotherinvestments (2,055) 5,200 Allowancefordoubtfuldebts: Subsidiaries 261 - Otherreceivables 235 - Allowancefordoubtfuldebtswrittenback Subsidiaries (1,398) - Otherreceivables (1,602) - Gainondisposalofotherproperty,plantandequipment (2) - Lossondisposalofinvestmentinsubsidiaries 1,451 -

Operatinglossbeforeworkingcapitalchanges (1,748) (1,970)Changesinworkingcapital: Receivables 5,359 4,021 Payables 8,656 (2,454) Relatedcompaniesbalances (21,677) 1,770

Cash(usedin)/generatedfromoperations (9,410) 1,367 Taxespaid - - Interestpaid - (392)

Netcash(usedin)/generatedfromoperatingactivities (9,410) 975CASH FLOWS FROM INVESTING ACTIVITIESPurchaseofotherproperty,plantandequipment 14 (17) (27)Additionalinvestmentinasubsidiary - (1,100)Proceedsfromdisposalofotherproperty,plantandequipment 3 -Proceedsfromdisposalofinvestmentinsubsidiaries 18(a) 3,749 -Additionalinvestmentinotherinvestments (9,587) (7,293)Proceedsfromdisposalofotherinvestments 15,662 7,239Interestreceived 14 13Netdividendreceived 46 139

Netcashgeneratedfrom/(usedin)investingactivities 9,870 (1,029)CASH FLOWS FROM FINANCING ACTIVITY

Proceedsfromissuanceofordinaryshares,representing cashflowsfromfinancingactivity - 27NET MOVEMENT IN CASH AND CASH EQUIVALENTS 460 (27)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 75 102

CASH AND CASH EQUIVALENTS AT END OF YEAR 25 535 75



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1. CORPORATE INFORMATION

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysia,andislistedontheMainBoardofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeoftheCompanyislocatedat8thFloor,BlockA,TheMinesWaterfrontBusinessPark,No.3, JalanTasik,TheMinesResortCity,43300SeriKembangan,SelangorDarulEhsan.

TheprincipalactivitiesoftheCompanyareinvestmentholdingandtheprovisionofmanagementservices.TheprincipalactivitiesofthesubsidiariesandassociatesareshowninNotes18and19tothefinancialstatementsrespectively.Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesofthesubsidiariesandassociatesduringthefinancialyearexcept for thedisposalofa shoppingmallasdisclosed inNote12 to thefinancial statementswhichresultedinthediscontinuanceofthelettingofshoppingmalllotsandpromotionspaceoperations.

Thefinancialstatementswereauthorised for issueby theBoardofDirectors inaccordancewitha resolutionof thedirectorson29April2008.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation The financial statements comply with the provisions of the Companies Act, 1965 and applicable Financial

ReportingStandards(“FRS”)inMalaysia.Atthebeginningofthecurrentfinancialyear,theGroupandCompanyhadadoptedrevisedFRSwhichareeffectiveforperiodsbeginning1October2006asdisclosedinNote2.3.

ThefinancialstatementsoftheGroupandoftheCompanyhavealsobeenpreparedonahistoricalbasisunlessotherwiseindicated.

ThefinancialstatementsarepresentedinRinggitMalaysia(RM)andallvaluesareroundedtothenearestthousand(RM’000)exceptwhenotherwiseindicated.

2.2 Summary of Significant Accounting Policies

(a) Subsidiaries and Basis of Consolidation

(i) Subsidiaries SubsidiariesareentitiesoverwhichtheGrouphastheabilitytocontrolthefinancialandoperating

policiessoastoobtainbenefitsfromtheiractivities.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

In the Company’s separate financial statements, investments in subsidiaries are stated at cost lessimpairmentlosses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

(ii) Basis of Consolidation

The consolidated financial statements comprise the financial statements of the Company and itssubsidiariesasatthebalancesheetdate.ThefinancialstatementsofthesubsidiariesarepreparedforthesamereportingdateastheCompany.

NotesToTheFinancialStatementsfortheyearended31December2007

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NotesToTheFinancialStatementsfortheyearended31December2007(Cont’d)

2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

2.2 Summary of Significant Accounting Policies (Cont’d)

(a) Subsidiaries and Basis of Consolidation (Cont’d)

(ii) Basis of Consolidation (Cont’d)

Subsidiariesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol, and continue tobe consolidateduntil thedate that such control ceases. In preparing theconsolidatedfinancialstatements,intragroupbalances,transactionsandunrealisedgainsorlossesareeliminatedinfull.Uniformaccountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances.

Acquisitionsofsubsidiariesareaccountedforusingthepurchasemethod.Thepurchasemethodofaccountinginvolvesallocatingthecostoftheacquisitiontothefairvalueoftheassetsacquiredandliabilitiesandcontingentliabilitiesassumedatthedateofacquisition.Thecostofanacquisitionismeasuredastheaggregateofthefairvalues,atthedateofexchange,oftheassetsgiven,liabilitiesincurred or assumed, and equity instruments issued, plus any costs directly attributable to theacquisition.

AnyexcessofthecostoftheacquisitionovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesrepresentsgoodwill.AnyexcessoftheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofacquisitionisrecognisedimmediatelyinprofitorloss.

MinorityinterestsrepresenttheportionofprofitorlossandnetassetsinsubsidiariesnotheldbytheGroup.Itismeasuredattheminorities’shareofthefairvalueofthesubsidiaries’identifiableassetsandliabilitiesattheacquisitiondateandtheminorities’shareofchangesinthesubsidiaries’equitysincethen.

(b) Associates AssociatesareentitiesinwhichtheGrouphassignificantinfluenceandthatisneitherasubsidiarynoran

interest inajointventure.Significantinfluenceis thepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnotincontrolorjointcontroloverthosepolicies.

Investmentsinassociatesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting.Undertheequitymethod,theinvestmentinassociateiscarriedintheconsolidatedbalancesheetatcostadjustedforpost-acquisitionchangesintheGroup’sshareofnetassetsoftheassociate.TheGroup’sshareofthenetprofitorlossoftheassociateisrecognisedintheconsolidatedprofitorloss.Wheretherehasbeenachangerecogniseddirectlyintheequityoftheassociate,theGrouprecognisesitsshareofsuchchanges.Inapplyingtheequitymethod,unrealisedgainsandlossesontransactionsbetweentheGroupandtheassociateareeliminatedtotheextentoftheGroup’sinterestintheassociate.Afterapplicationoftheequitymethod,theGroupdetermineswhetheritisnecessarytorecogniseanyadditionalimpairmentlosswithrespecttotheGroup’snetinvestmentintheassociate.TheassociateisequityaccountedforfromthedatetheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociate.

Goodwillrelatingtoanassociateisincludedinthecarryingamountoftheinvestmentandisnotamortised.Anyexcessof theGroup’sshareof thenet fairvalueof theassociate’s identifiableassets, liabilitiesandcontingentliabilitiesoverthecostoftheinvestmentisexcludedfromthecarryingamountoftheinvestmentandisinsteadincludedasincomeinthedeterminationoftheGroup’sshareoftheassociate’sprofitorlossintheperiodinwhichtheinvestmentisacquired.


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(b) Associates (Cont’d)

WhentheGroup’sshareoflossesinanassociateequalsorexceedsitsinterestintheassociate,includingany long-term interests that, insubstance, formpartof theGroup’snet investment in theassociates, theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociate.

ThemostrecentavailableauditedfinancialstatementsoftheassociatesareusedbytheGroupinapplyingthe equity method. Where the dates of the audited financial statements used are not coterminous withthoseof theGroup, the shareof results isarrivedat from the lastauditedfinancial statementsavailableandmanagementfinancialstatementstotheendoftheaccountingperiod.Uniformaccountingpolicesareadoptedforliketransactionsandeventsinsimilarcircumstances.

IntheCompany’sseparatefinancialstatements,investmentsinassociatesarestatedatcostlessimpairmentlosses.

Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountisincludedinprofitorloss.

(c) Intangible Assets

(i) Goodwill

GoodwillacquiredinabusinesscombinationisinitiallymeasuredatcostbeingtheexcessofthecostofbusinesscombinationovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesand contingent liabilities. Following the initial recognition, goodwill is measured at cost less anyaccumulatedimpairmentlosses.Goodwillisnotamortisedbutinstead,itisreviewedforimpairment,annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.Gainsandlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

(d) Property, Plant and Equipment, and Depreciation Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Subsequentcostsareincludedinthe

asset’scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialperiodinwhichtheyareincurred.

Subsequenttorecognition,property,plantandequipmentexceptforhotelpropertiesandexhibitioncentre&showroomarestatedatcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.

Hotelpropertiesandexhibitioncentre&showroomconsistofhotelsandanexhibitioncentre&showroombuildings.Thelandonwhichthesepropertiesaresituatedisleaseholdandareclassifiedasprepaidlandleasepayments.

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(d) Property, Plant and Equipment, and Depreciation (Cont’d)

Hotelpropertiesandexhibitioncentre&showroomarestatedattheirrevaluedamount,whichisthefairvalueatthedateoftherevaluationlessanyaccumulatedimpairmentlosses.Fairvalueisdeterminedfrommarket-basedevidencebyappraisalthatisundertakenbyprofessionallyqualifiedvaluers.Revaluationsareperformedwithsufficientregularitytoensurethatthefairvalueofarevaluedassetdoesnotdiffermateriallyfromthatwhichwouldbedeterminedusingfairvaluesatthebalancesheetdate.Anyrevaluationsurplusiscreditedtotherevaluationreserveincludedwithinequity,excepttotheextentthatitreversesarevaluationdecreaseforthesameassetpreviouslyrecognisedinprofitorloss,inwhichcasetheincreaseisrecognisedinprofitorlosstotheextentofthedecreasepreviouslyrecognised.Arevaluationdeficitisfirstoffsetagainstunutilisedpreviouslyrecognisedrevaluationsurplusinrespectofthesameassetandthebalanceisthereafterrecognisedinprofitorloss.Upondisposalorretirementofanasset,anyrevaluationreserverelatingtotheparticularassetistransferreddirectlytoretainedearnings.

Depreciationofhotelpropertiesandexhibitioncentre& showroom isprovided forover theirestimatedusefullives.

Certain freehold landandbuildingof theGroupwere revaluedbasedon independentvaluationsonanopenmarketvaluebasisin1994andhavenotsincebeenrevalued.Thedirectorshavenotadoptedapolicyof regular revaluationsof suchassetsandno latervaluationhasbeen recorded.Aspermittedunder thetransitionalprovisionsofInternationalAccountingStandard16(Revised),Property,PlantandEquipment,asapprovedbytheMalaysianAccountingStandardsBoard,theseassetshavecontinuedtobestatedonthebasisoftheir1994valuationslessaccumulateddepreciationandaccumulatedimpairment.

Freeholdlandandfreeholdgolfcoursesincludedingolfclubs&coursesandboatclubshaveunlimiteduseful life andare thereforenotdepreciated.Capitalwork-in-progress are alsonotdepreciatedas theseassetsarenotavailableforuse.

Depreciationofotherproperty,plantandequipmentisprovidedforonastraight-linebasistowriteoffthecostofeachassettoitsresidualvalueovertheestimatedusefullife,atthefollowingannualrates:

Freeholdbuildings 2% Leaseholdland Overtheleaseholdperiod Leaseholdbuildings,otherthanhotelpropertiesand exhibitioncentre&showroom 2%-10% Leaseholdgolfcoursesincludedingolfclubs&courses andboatclubs Overtheleaseholdperiod Freeholdclubhouseincludedingolfclubs&courses andboatclubs 2% Leaseholdclubhouseincludedingolfclubs&courses andboatclubs Overtheleaseholdperiod Irrigationsystemandequipmentincludedingolfcourses andboatclubs 10% Officefurnitureandfittings 10%-20% Plant,machineryandequipment 10%-33.3% Motorvehicles 10%-20%


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(d) Property, Plant and Equipment, and Depreciation (Cont’d)

Theresidualvalues,usefullifeanddepreciationmethodarereviewedateachfinancialyear-endtoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpattern of consumption of the future economic benefits embodied in the items of property, plant andequipment.

Anannualtransferfromtheassetrevaluationreservetoretainedearningsismadeforthedifferencebetweendepreciationbasedon the revaluedcarryingamountof the assets anddepreciationbasedon theassetsoriginalcost.Additionally,accumulateddepreciationasat therevaluationdate iseliminatedagainst thegross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.Upondisposal,anyrevaluationreserverelatingtotheparticularassetbeingsoldistransferredtoretainedearnings.

An item of property, plant and equipment is derecognised upon disposal or when no future economicbenefitsareexpectedfromitsuseordisposal.Thedifferencebetweenthenetdisposalproceeds,ifanyandthenetcarryingamountisrecognisedinprofitorlossandtheunutilisedportionoftherevaluationsurplusonthatitemistakendirectlytoretainedearnings.

(e) Investment Properties

Investmentpropertiesarepropertieswhichareheldeithertoearnrentalincomeorforcapitalappreciationorforboth.Suchpropertiesaremeasuredinitiallyatcost,includingtransactioncosts.Subsequenttoinitialrecognition, investmentpropertiesarestatedat fairvalue.Fairvalue isarrivedatbyreferencetomarketevidenceof transactionprices for similarproperties and isperformedby registered independentvaluershaving an appropriate recognised professional qualification and recent experience in the location andcategoryofthepropertiesbeingvalued.

Gainsorlossesarisingfromchangesinthefairvaluesofinvestmentpropertiesarerecognisedinprofitorlossintheyearinwhichtheyarise.

Apropertyinterestunderanoperatingleaseisclassifiedandaccountedforasaninvestmentpropertyonaproperty-by-propertybasiswhentheGroupholdsittoearnrentalsorforcapitalappreciationorboth.Anysuchpropertyinterestunderanoperatingleaseclassifiedasaninvestmentpropertyiscarriedatfairvalue.

Investmentpropertiesarederecognisedwheneither theyhavebeendisposedoforwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitisexpectedfromitsdisposal.Anygainsorlossesontheretirementordisposalofaninvestmentpropertyarerecognisedinprofitorlossintheyearinwhichtheyarise.

(f) Land Held for Property Development and Property Development Costs

(i) Land Held for Property Development Landheldforpropertydevelopmentconsistsoflandwherenodevelopmentactivitieshavebeencarried

outorwheredevelopmentactivitiesarenotexpectedtobecompletedwithinthenormaloperatingcycle. Such land is classifiedwithinnon-current assets and is statedat cost less anyaccumulatedimpairmentlosses.

Landheldforpropertydevelopmentisreclassifiedaspropertydevelopmentcostsatthepointwhendevelopmentactivitieshavecommencedandwhere it canbedemonstrated that thedevelopmentactivitiescanbecompletedwithinthenormaloperatingcycle.

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(f) Land Held for Property Development and Property Development Costs (Cont’d)

(ii) Property Development Costs

Propertydevelopmentcostscompriseallcoststhataredirectlyattributabletodevelopmentactivitiesorthatcanbeallocatedonareasonablebasistosuchactivities.

Whenthefinancialoutcomeofadevelopmentactivitycanbereliablyestimated,propertydevelopmentrevenueandexpensesarerecognisedintheincomestatementbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatpropertydevelopmentcostsincurredforworkperformedtodatebeartotheestimatedtotalpropertydevelopmentcosts.

Where the financial outcome of a development activity cannot be reliably estimated, propertydevelopmentrevenueisrecognisedonlytotheextentofpropertydevelopmentcostsincurredthatisprobablewillberecoverable,andpropertydevelopmentcostsonpropertiessoldarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

Anyexpectedlossonadevelopmentproject,includingcoststobeincurredoverthedefectsliabilityperiod,isrecognisedasanexpenseimmediately.

Propertydevelopmentcostsnotrecognisedasanexpensearerecognisedasanassetwhichismeasuredatthelowerofcostandnetrealisablevalue.

Theexcessof revenue recognised in the incomestatementoverbillings topurchasers isclassifiedas accruedbillingswithin trade receivables and the excess of billings to purchasers over revenuerecognisedintheincomestatementisclassifiedasprogressbillingswithintradepayables.

(g) Impairment of Non-Financial Assets Thecarryingamountsofassets,otherthaninvestmentproperty,propertydevelopmentcosts,inventoriesand

deferredtaxassetsandnoncurrentassetsheldforsale,arereviewedateachbalancesheetdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimatedtodeterminetheamountofimpairmentloss.

For goodwill, intangible assets that have an indefinite useful life and intangible assets that are not yetavailableforuse,therecoverableamountisestimatedateachbalancesheetdateormorefrequentlywhenindicatorsofimpairmentareidentified.

Forthepurposeofimpairmenttestingoftheseassets,recoverableamountisdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,recoverableamountisdeterminedforthecash-generatingunit(“CGU”)towhichtheassetbelongsto.Goodwillacquiredinabusinesscombinationis,fromtheacquisitiondate,allocatedtoeachof theGroup’sCGUs,orgroupsofCGUs,thatareexpectedtobenefitfromthesynergiesof thecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupsofunits.


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(g) Impairment of Non-Financial Assets (Cont’d)

Anasset’srecoverableamountisthehigherofanasset’sorCGU’sfairvaluelesscoststosellanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountrate that reflectscurrentmarketassessmentsof the timevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theassetisconsideredimpairedandiswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Animpairmentlossisrecognisedinprofitorlossintheperiodinwhichitarises,unlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisaccountedforasarevaluationdecreasetotheextentthattheimpairmentlossdoesnotexceedtheamountheldintheassetrevaluationreserveforthesameasset.

Impairmentlossongoodwillisnotreversedinasubsequentperiod.Animpairmentlossforanassetotherthangoodwillisreversedif,andonlyif, therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetother than goodwill is increased to its revised recoverable amount, provided that this amount does notexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedinprofitorloss,unlesstheassetiscarriedatrevaluedamount,inwhichcase,suchreversalistreatedasarevaluationincrease.

(h) Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.

Costisdeterminedusingthefirstin,firstoutmethod.Thecostofrawmaterialscomprisescostsofpurchase.The cost of unsold properties comprises cost associated with the acquisition of land, direct costs andappropriateproportionsofcommoncosts.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.

(i) Financial Instruments

Financial instruments are recognised in the balance sheet when the Group has become a party to thecontractualprovisionsoftheinstrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement. Interest, dividends and gains and losses relating to a financial instrument classified as aliability,arereportedasexpenseorincome.Distributionstoholdersoffinancialinstrumentsclassifiedasequity are recognised directly in equity. Financial instruments are offset when the Group has a legallyenforceableright tooffsetandintends tosettleeitheronanetbasisor torealise theassetandsettle theliabilitysimultaneously.

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(i) Financial Instruments (Cont’d)

(i) Cash and Cash Equivalents

Forthepurposeofthecashflowstatements,cashandcashequivalentsincludecashonhandandatbankanddepositsatcallwhichhaveaninsignificantriskofchangesinvalue,netofoutstandingbankoverdrafts.

(ii) Other Non-Current Investments Non-currentinvestmentsotherthaninvestmentsinsubsidiaries,associatesandinvestmentproperties

arestatedatcostlessimpairmentlosses.Ondisposalofaninvestment, thedifferencebetweennetdisposalproceedsanditscarryingamountisrecognisedintheprofitorloss.

(iii) Marketable Securities Marketablesecuritiesarecarriedatthelowerofcostandmarketvalue,determinedonanaggregate

basis.Costisdeterminedontheweightedaveragebasiswhilemarketvalueisdeterminedbasedonquoted market values. Increases or decreases in the carrying amount of marketable securities arerecognisedinprofitorloss.Ondisposalofmarketablesecurities,thedifferencebetweennetdisposalproceedsandthecarryingamountisrecognisedinprofitorloss.

(iv) Trade Receivables Tradereceivablesarecarriedatanticipatedrealisablevalues.Baddebtsarewrittenoffwhenproper

action and reasonable steps had been taken by the directors to identify and ascertain its non-recoverability.Anestimateismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsasatthebalancesheetdate.

(v) Trade Payables

Tradepayablesarestatedatthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

(vi) Interest Bearing Loans and Borrowings Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedless

directlyattributabletransactioncosts.Afterinitialrecognition,interestbearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

(vii) Equity Instruments Ordinarysharesareclassifiedasequity.Dividendsonordinarysharesarerecognisedinequityinthe

periodinwhichtheyaredeclared.

(viii) Derivative Financial Instruments

Derivativefinancialinstrumentsarenotrecognisedinthefinancialstatements.


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(j) Leases

(i) Classification

A lease is recognised as a finance lease if it transfers substantially to the Group all the risks andrewardsincidentaltoownership.Leasesoflandandbuildingsareclassifiedasoperatingorfinanceleasesinthesamewayasleasesofotherassetsandthelandandbuildingselementsofaleaseoflandandbuildingsareconsideredseparatelyforthepurposesofleaseclassification.Allleasesthatdonottransfersubstantiallyall therisksandrewardsareclassifiedasoperating leases,with the followingexceptions:

- Property held under operating leases that would otherwise meet the definition of an investmentpropertyisclassifiedasaninvestmentpropertyonaproperty-by-propertybasisand,ifclassifiedasinvestmentproperty,isaccountedforasifheldunderafinancelease(Note2.2(e));and

-Landheldforownuseunderanoperatinglease,thefairvalueofwhichcannotbemeasuredseparatelyfromthefairvalueofabuildingsituatedthereonattheinceptionofthelease,isaccountedforasbeingheldunderafinancelease,unlessthebuildingisalsoclearlyheldunderanoperatinglease.

(ii) Finance Leases - the Group as Lessee

Assetsacquiredbywayofhirepurchaseorfinanceleasesarestatedatanamountequaltothelowerof their fair values and the present value of the minimum lease payments at the inception of theleases,lessaccumulateddepreciationandimpairmentlosses.Thecorrespondingliabilityisincludedinthebalancesheetasborrowings.Incalculatingthepresentvalueoftheminimumleasepayments,thediscountfactorusedistheinterestrateimplicitinthelease,whenitispracticabletodetermine;otherwise,theGroup’sincrementalborrowingrateisused.Anyinitialdirectcostarealsoaddedtothecarryingamountofsuchassets.

Lease payments are apportioned between the finance costs and the reduction of the outstandingliability.Financecosts,whichrepresentthedifferencebetweenthetotalleasingcommitmentsandthefairvalueoftheassetsacquired,arerecognisedintheprofitorlossoverthetermoftherelevantleasesoastoproduceaconstantperiodicrateofchargeontheremainingbalanceoftheobligationsforeachaccountingperiod.

Thedepreciationpolicyforleasedassetsisinaccordancewiththatfordepreciableproperty,plantandequipmentasdescribedinNote2.2(d).

(iii) Operating Leases - the Group as Lessee Operatingleasepaymentsarerecognisedasanexpensein theincomestatementonastraight-line

basisoverthetermoftherelevantlease.Theaggregatebenefitofincentivesprovidedbythelessorisrecognisedasareductionofrentalexpenseovertheleasetermonastraight-linebasis.

Inthecaseofaleaseoflandandbuildings,theminimumleasepaymentsortheup-frontpaymentsmadeareallocated,whenevernecessary,betweenthelandandthebuildingselementsinproportionto the relative fair values for leasehold interests in the landelement andbuildings elementof theleaseattheinceptionofthelease.Theup-frontpaymentrepresentsprepaidleasepaymentsandareamortisedonastraight-linebasisovertheleaseterm.

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(j) Leases (Cont’d)

(iv) Operating Lease - the Group as Lessor Assetsleasedoutunderoperatingleasesarepresentedonthebalancesheetsaccordingtothenatureof

theassets.Rentalincomefromoperatingleasesisrecognisedonastraight-linebasisoverthetermoftherelevantlease(Note2(p)(vii)).Initialdirectcostsincurredinnegotiatingandarranginganoperatingleaseareaddedtothecarryingamountoftheleasedassetandrecognisedonastraight-linebasisovertheleaseterm.

(k) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,

whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,areaddedtothecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.Investmentincomeearnedonthetemporaryinvestmentofspecificborrowingspendingtheirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostseligibleforcapitalisation.

Allotherborrowingcostsarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.

(l) Income Tax

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountofincometaxespayableinrespectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferredtaxisprovidedfor,usingtheliabilitymethod.Inprinciple,deferredtaxliabilitiesarerecognisedforall taxable temporarydifferencesanddeferred taxassetsare recognised foralldeductible temporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwill or from the initial recognition of an asset or liability in a transaction which is not a businesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.Deferredtaxisrecognisedasincomeoranexpenseandincludedintheprofitorlossfortheperiod,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsorecogniseddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillortheamountofanyexcessoftheacquirer’sinterestinthenetfairvalueoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofthecombination.

(m) Provisions

Provisionsare recognisedwhen theGrouphas apresentobligationas a result of apast event and it isprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andareliableestimateof theamountcanbemade.Provisionsarereviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.Wherediscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasfinancecost.


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(n) Employee Benefits

(i) Short Term Benefits Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheyear

inwhichtheassociatedservicesarerenderedbyemployees.Shorttermaccumulatingcompensatedabsencessuchaspaidannual leavearerecognisedwhenservicesare renderedbyemployees thatincreasetheirentitlementtofuturecompensatedabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

(ii) Defined Contribution Plans

Defined contribution plans are post-employment benefit plans under which the Group pays fixedcontributionsintoseparateentitiesorfundsandwillhavenolegalorconstructiveobligationtopayfurthercontributionsifanyofthefundsdonotholdsufficientassetstopayallemployeebenefitsrelatingtoemployeeservicesinthecurrentandprecedingfinancialyears.Suchcontributionsarerecognisedasanexpenseintheprofitorlossasincurred.Asrequiredbylaw,companiesinMalaysiamakesuchcontributionstotheEmployeesProvidentFund(“EPF”).SomeoftheGroup’sforeignsubsidiariesalsomakecontributionstotheirrespectivecountries’statutorypensionschemes.

(o) Foreign Currencies

(i) Functional and Presentation Currency

The individual financial statements of each entity in the Group are measured using the currencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).TheconsolidatedfinancialstatementsarepresentedinRinggitMalaysia(RM),whichisalsotheCompany’sfunctionalcurrency.

(ii) Foreign Currency Transactions Inpreparingthefinancialstatementsoftheindividualentities,transactionsincurrenciesotherthan

theentity’sfunctionalcurrency(foreigncurrencies)arerecordedinthefunctionalcurrenciesusingtheexchangeratesprevailingatthedatesofthetransactions.Ateachbalancesheetdate,monetaryitemsdenominated in foreigncurrenciesare translatedat the ratesprevailingon thebalancesheetdate.Non-monetary itemscarriedat fairvalue thataredenominated in foreigncurrenciesare translatedattheratesprevailingonthedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyarenottranslated.

Exchangedifferencesarisingonthesettlementofmonetaryitems,andonthetranslationofmonetaryitems,areincludedinprofitorlossfortheperiodexceptforexchangedifferencesarisingonmonetaryitemsthatformpartoftheGroup’snetinvestmentinforeignoperation.ExchangedifferencesarisingonmonetaryitemsthatformpartoftheGroup’snetinvestmentinforeignoperation,wherethatmonetaryitemisdenominatedineitherthefunctionalcurrencyofthereportingentityortheforeignoperation,areinitiallytakendirectlytotheforeigncurrencytranslationreservewithinequityuntilthedisposaloftheforeignoperations,atwhichtimetheyarerecognisedinprofitorloss.ExchangedifferencesarisingonmonetaryitemsthatformpartoftheGroup’snetinvestmentinforeignoperation,wherethatmonetaryitemisdenominatedinacurrencyotherthanthefunctionalcurrencyofeitherthereportingentityortheforeignoperation,arerecognisedinprofitorlossfortheperiod.ExchangedifferencesarisingonmonetaryitemsthatformpartoftheCompany’snetinvestmentinforeignoperation,regardlessofthecurrencyofthemonetaryitem,arerecognisedinprofitorlossintheCompany’sfinancialstatementsortheindividualfinancialstatementsoftheforeignoperation,asappropriate.

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(o) Foreign Currencies (Cont’d)

(ii) Foreign Currency Transactions (Cont’d)

Exchangedifferencesarisingonthetranslationofnon-monetaryitemscarriedatfairvalueareincludedinprofitorlossfortheperiodexceptforthedifferencesarisingonthetranslationofnon-monetaryitems in respectofwhichgainsand lossesare recogniseddirectly inequity. Exchangedifferencesarisingfromsuchnon-monetaryitemsarealsorecogniseddirectlyinequity.

(iii) Foreign Operations

Theresultsandfinancialpositionofforeignoperationsthathaveafunctionalcurrencydifferentfromthe presentation currency (RM) of the consolidated financial statements are translated into RM asfollows:

- Assetsandliabilitiesforeachbalancesheetpresentedaretranslatedattheclosingrateprevailingatthebalancesheetdate;

- Incomeandexpensesforeachincomestatementaretranslatedataverageexchangeratesfortheyear,whichapproximatestheexchangeratesatthedatesofthetransactions;and

- Goodwillandfairvalueadjustmentsarisingontheacquisitionofforeignoperationsonorafter1January2006aretreatedasassetsandliabilitiesoftheforeignoperationsandarerecordedin the functional currency of the foreign operations and translated at the closing rate at thebalance sheet date. Goodwill and fair value adjustments which arose on the acquisition offoreignsubsidiariesbefore1January2006aredeemedtobeassetsandliabilitiesoftheparentcompanyandarerecordedinRMattheratesprevailingatthedateofacquisition.

(p) Revenue Recognition RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheGroupand

therevenuecanbereliablymeasured.

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivableandrepresentsamountsreceivableforservicesprovidedinthenormalcourseofbusiness.

Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

(i) Sale of Properties

RevenuefromsalesofpropertiesisaccountedforbythestageofcompletionmethodasdescribedinNote2.2(f)(ii).

(ii) Revenue from Hotel Operations

Revenuefromrentalofhotelrooms,saleoffoodandbeverageandotherrelatedincomearerecognisedonanaccrualbasis.


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(p) Revenue Recognition (Cont’d)

(iii) Management Fees

Managementfeesarerecognisedwhenservicesarerendered.

(iv) Golf and Health Membership

Revenueisrecogniseduponsigningofthemembershipagreement.

(v) Subscription Fees

Subscription fees are recognised as revenue when due and payable pursuant to membershipagreements.

(vi) Timeshare Fees

Revenuefromtimesharemembershipfeesisrecognisedbasedonthenatureoftheservicesprovidedinrelationtothetimesharefees.Ifthefeepermitsonlymembership,andallotherservicesorproductsarepaidforseparately,orifthereisaseparateannualsubscription,thefeeisrecognisedasrevenuewhennosignificantuncertaintyastoitscollectabilityexists.Ifthefeeentitlesthemembertoservicesorpublications tobeprovidedduring themembershipperiod,or topurchasegoodsor servicesatpriceslowerthanthosechargedtononmembers,itisrecognisedonabasisthatreflectsthetiming,natureandvalueofthebenefitsprovided.

Annualmaintenancefeesarerecognisedonanaccrualbasisbasedonfeeschargeabletomembersupon execution and renewal of the membership agreements, unless recoverability is in doubt, inwhichcase,itisrecognisedonreceiptbasis.

(vii) Rental Income

Rentalincomeisrecognisedonastraight-linebasisoverthetermoftheleaseandincludesservicechargesongeneralmaintenanceservicesrenderedtothetenants.

(viii) Revenue from Services

Revenue fromservices rendered is recognisednetof service taxesanddiscountsasandwhen theservicesareperformed.

(ix) Interest Income

Interestisrecognisedonatimeproportionbasisthatreflectstheeffectiveyieldontheasset.

(x) Revenue from Promotions

Revenuefrompromotionsisrecognisedonanaccrualbasis.

(xi) Dividend Income

Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

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(q) Deferred Income

TheportionofthemembershipfeesfromtimesharemembershipsalesdescribedinNote2.2(p)(vi)tothefinancialstatementswhichisdeferredanddisclosedasdeferredincomeisrecognisedoverthemembershipperiod.

(r) Non-current Assets Held for Sale and Discontinued Operation

Non-current assets are classified as held for sale if their carrying amount will be recovered principallythroughasaletransactionratherthanthroughcontinuinguse.Thisconditionisregardedasmetonlywhenthesaleishighlyprobableandtheassetisavailableforimmediatesaleinitspresentconditionsubjectonlytotermsthatareusualandcustomary.

Immediatelybeforeclassificationasheldforsale,themeasurementofthenon-currentassetsisbroughtup-to-dateinaccordancewithapplicableFRSs.Then,oninitialclassificationasheldforsale,non-currentassets(other thaninventories, investmentproperties,deferredtaxassets,employeebenefitsassetsandfinancialassets)aremeasuredinaccordancewithFRS5thatisatthelowerofcarryingamountandfairvaluelesscoststosell.Anydifferencesareincludedinprofitorloss.

Acomponentof theGroupisclassifiedasadiscontinuedoperationwhenthecriteria tobeclassifiedasheldforsalehavebeenmetorithasbeendisposedofandsuchacomponentrepresentsaseparatemajorlineofbusinessorgeographicalareaofoperations,ispartofasingleco-ordinatedmajorlineofbusinessorgeographicalareaofoperationsorisasubsidiaryacquiredexclusivelywithaviewtoresale.

2.3 Adoption of New and Revised FRSs

TheGroupandtheCompanyhaveadoptedthefollowingnewandrevisedFRSandamendmentstoFRSwhichareeffectiveforfinancialperiodbeginning1January2007:

FRS117 Leases FRS124 RelatedPartyDisclosures TheadoptionoftheabovenewandrevisedFRSandamendmenttoFRSdonothaveanysignificantimpacttothe

existingaccountingpoliciesoftheGroupandoftheCompany,exceptforthefollowing:

(a) FRS: 117 Leases

(i) Leasehold Land Held For Own Use Priorto1January2007,leaseholdlandheldforownusewasclassifiedasproperty,plantandequipment

andwasstatedatcostandrevaluedamountlessaccumulateddepreciationandimpairmentlosses,ifany.TheadoptionoftherevisedFRS117hasresultedinachangeintheaccountingpolicyrelatingtotheclassificationofleasesoflandandbuildings.Leasesoflandandbuildingsareclassifiedasoperatingorfinanceleasesinthesamewayasleasesofotherassetsandthelandandbuildingselementsofaleaseoflandandbuildingsareconsideredseparatelyforthepurposesofleaseclassification.Leaseholdlandheldforownuseisnowclassifiedasoperatingleaseandwherenecessary,theminimumleasepaymentsortheup-frontpaymentsmadeareallocatedbetweenthelandandthebuildingselementsinproportiontotherelativefairvaluesforleaseholdinterestsinthelandelementandbuildingselementoftheleasebasedonthecarryingvalueatthebeginningofthefinancialyear.Theup-frontpaymentrepresentsprepaidleasepaymentsandareamortisedonastraight-linebasisovertheleaseterm.


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2.3 Adoption of New and Revised FRSs (Cont’d)

(a) FRS: 117 Leases (Cont’d)

(i) Leasehold Land Held For Own Use (Cont’d)

TheGrouphasappliedthechangeinaccountingpolicyinrespectofleaseholdlandinaccordancewiththetransitionalprovisionsofFRS117.At1January2007,theunamortisedamountofleaseholdlandisretainedasthesurrogatecarryingamountofprepaidleasepaymentsasallowedbythetransitionalprovisions.ThereclassificationofleaseholdlandasprepaidleasepaymentshasbeenaccountedforretrospectivelyandasdisclosedinNote2.3(b),andthecomparativesfigureshavebeenrestated.Theeffectsontheconsolidatedbalancesheetasat31December2007aresetoutinNote2.3(b)(i).TherewerenoeffectsontheconsolidatedincomestatementandCompany’sfinancialstatementsfortheyearended31December2007.

(ii) Initial Direct Costs Priorto1January2006,theGroup,asalessorinoperatingleasearrangements,hadrecognisedinitial

directcostsincurredinnegotiatingandarrangingleasesasanexpenseintheprofitorlossintheperiodinwhichtheywere incurred.TherevisedFRS117requiressuchcosts tobeaddedto thecarryingamountoftheleasedassetandrecognisedasanexpenseovertheleasetermonthesamebasisastheleaseincome.AccordingtotherevisedFRS117,thischangeinaccountingpolicyshouldbeappliedretrospectively.Ingeneral,theGroupdoesnotincursignificantinitialdirectcostsonnegotiatingandarrangingleasesandasaresult,thischangeinaccountingpolicydidnotmateriallyaffectthefinancialstatementsoftheGroupandtheCompany.

(b) Summary of Effects of Adopting New and Revised FRSs on the Current Year’s Financial Statements

Thefollowingtablesprovideestimatesoftheextenttowhicheachofthelineitemsinthebalancesheetsfortheyearended31December2007ishigherorlowerthanitwouldhavebeenhadthepreviouspoliciesbeenappliedinthecurrentyear:

(i) Effects on balance sheets as at 31 December 2007 2007 Increase/ (Decrease) FRS117 Description of change Note 2.3(a) Group RM’000 Hotelpropertiesandexhibitioncentre&showroom (329,863) Otherproperty,plantandequipment (12,983) Landheldforpropertydevelopment (14,097) Prepaidlandleasepayments 356,943

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2.3 Adoption of New and Revised FRSs (Cont’d)

(c) Restatement of Comparatives ThefollowingcomparativeamountshavebeenrestatedasaresultofadoptingthenewandrevisedFRS:

Increase/(Decrease) FRS117 Previously Note Other Description of change stated 2.3(a) adjustments* Restated RM’000 RM’000 RM’000 RM’000 At 31 December 2006 Group Hotelpropertiesandexhibition centre&showroom 685,457 (333,790) - 351,667 Otherproperty,plantandequipment 160,440 (12,129) (29,443) 118,868 Landheldforpropertydevelopment 209,978 (14,433) - 195,545 Prepaidlandleasepayments - 360,352 - 360,352

* Reclassificationtoconformwithcurrentyears’presentationasdisclosedinNote43tothefinancialstatements.

2.4 Standards and Interpretations Issued but Not Yet Effective Atthedateofauthorisationofthesefinancialstatements,thefollowingnewandrevisedFRS,amendmentstoFRS

andInterpretationswereissuedbutnotyeteffectiveandhavenotbeenappliedbytheGroupandtheCompany: Effective for financial periods beginning on or after

(i) FRS139-FinancialInstruments:RecognitionandMeasurement Deferred

(ii) AmendmentstoFRS121-TheEffectsofChangesinForeignExchangeRates -NetInvestmentinaForeignOperation 1July2007

(iii) ICInterpretation1-ChangesinExistingDecommissioning,Restorationand SimilarLiabilities 1July2007

(iv) ICInterpretation2-Members’SharesinCo-operativeEntitiesandSimilarInstruments 1July2007

(v) ICInterpretation5-RightstoInterestarisingfromDecommissioning, RestorationandEnvironmentalRehabilitationFunds 1July2007

(vi) ICInterpretation6-LiabilitiesarisingfromParticipatinginaSpecificMarket -WasteElectricalandElectronicEquipment 1July2007


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2.4 Standards and Interpretations Issued but Not Yet Effective (Cont’d)

Effective for financial periods beginning on or after (vii) ICInterpretation7-ApplyingtheRestatementApproachunderFRS1292004 -FinancialReportinginHyperinflationaryEconomies 1July2007

(viii) ICInterpretation8-ScopeofFRS2 1July2007

(ix) FRS107-CashFlowStatements 1July2007

(x) FRS111-ConstructionContracts 1July2007

(xi) FRS112-IncomeTaxes 1July2007

(xii) FRS118-Revenue 1July2007

(xiii) FRS120-AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance 1July2007

(xiv) FRS134-InterimFinancialReporting 1July2007

(xv) FRS137-Provisions,ContingentLiabilitiesandContingentAssets 1July2007

TheGroupareexemptedfromdisclosingthepossibleimpact,ifany,tothefinancialstatementsupontheinitialapplicationofFRS139.

TheadoptionoftheabovenewFRS,amendmentstoFRSandInterpretationswillhavenoimpactonthefinancialstatementsoftheGroupandCompany.

2.5 Significant Accounting Estimates and Judgements

(a) Critical Judgements Made in Applying Accounting Policies

ThefollowingarethejudgementsmadebymanagementintheprocessofapplyingtheGroup’saccountingpoliciesthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatements.

(i) Classification Between Investment Properties and Property, Plant and Equipment

TheGrouphasdevelopedcertaincriteriabasedonFRS140inmakingjudgementwhetherapropertyqualifiesasaninvestmentproperty.Investmentpropertyisapropertyheldtoearnrentalsorforcapitalappreciationorboth.

Somepropertiescompriseaportionthatisheldtoearnrentalsorforcapitalappreciationandanotherportion that is held for use in the production or supply of goods or services or for administrativepurposes.Iftheseportionscouldbesoldseparately(orleasedoutseparatelyunderafinancelease),theGroupwouldaccountfortheportionsseparately.Iftheportionscouldnotbesoldseparately,thepropertyisaninvestmentpropertyonlyifaninsignificantportionisheldforuseintheproductionorsupplyofgoodsorservicesor foradministrativepurposes. Judgement ismadeonan individualproperty basis to determine whether ancillary services are so significant that a property does notqualifyasinvestmentproperty.

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2.5 Significant Accounting Estimates and Judgements (Cont’d)

(a) Critical Judgements Made in Applying Accounting Policies (Cont’d)

(ii) Operating Lease Commitments – The Group As Lessor

TheGrouphasenteredintocommercialpropertyleasesonitsinvestmentpropertyportfolio.TheGrouphasdetermined that it retainsall thesignificant risksandrewardsofownershipof thesepropertieswhichareleasedoutonoperatingleases.

(iii) Revenue Recognition

The Group commenced the Palace Health Sanctuary Programme (“PHS”) since 2006. PHS is amembershipprogrammeinvolvingtheprovisionofvacationsandpreventivehealthcaretoitsmembers.Themembershipsarevalidforadurationof20years.

Themembershipfeescompriseparticipationandrejoiningfees.Participationfeesrepresentupfrontpayment (or installment plans) upon execution of membership agreements whereas rejoining feesaredueandpayableonayearlybasis (except for thefirstyear free rejoining fees)pursuant to themembershipagreements.

Inmakingitsjudgement,directorsconsideredthedetailedcriteriafortherecognitionofparticipationfeesasrevenueinFRS118Revenueand,inparticular,whetheritisprobabletheeconomicbenefitsassociatedwiththetransactionswillflowtotheGroup.Followingtheassessmentofthetermsandconditionspursuanttothemembershipagreements,thelimitationonthemembers’abilitiesforrefundoftheparticipationfeesandtherequirementsforthepaymentoftherejoiningfeesforcontinuationofthemembership,thedirectorsaresatisfiedthatthesignificantrisksandrewardshavebeentransferredandthatrecognitionoftheparticipationfeesasrevenueinthecurrentfinancialyearisappropriateuponexecutionofthemembershipagreements.

(b) Key Sources of Estimation Uncertainty Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalance

sheetdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

(i) Revenue Recognition on Timeshare Fee

TheGrouprecognisestherevenueontimesharefeesbyusingthestageofcompletionmethod.Thestageofcompletionmethodisdeterminedbytheproportionthatmembershipcostsincurredtodatebeartotheestimatedtotalmembershipcostsovertheperiodofthemembership.

Significantjudgementisrequiredindeterminingthestageofcompletion,theextentofthemembershipcostsincurred,theestimatedtotalmembershipcosts,aswellastherecoverabilityofthemembershipfees. Inmaking the judgement, theGroupevaluatesbasedonpastexperienceand theanalysisofmembership cost incurred on yearly basis. Further details of timeshare fee are disclosed in Note2.2(p)(vi)tothefinancialstatements.


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(b) Key Sources of Estimation Uncertainty (Cont’d)

(ii) Fair Value of Investment Properties and of Property, Plant and Equipment Carried At Valuation

Thebestevidenceoffairvalueiscurrentpricesinanactivemarketforsimilarleaseandothercontractsorvaluationcarriedoutbyindependentfirmsofvaluersannually.

In the absence of current prices in an active market, the Group considers discounted cash flowprojectionsbasedonreliableestimatesoffuturecashflows,supportedbythetermsofanyexistingleaseandothercontractsand (whenpossible)byexternalevidencesuchascurrentmarket rentalsforsimilarpropertiesinthesamelocationandcondition,andusingdiscountratesthatreflectcurrentmarketassessmentoftheuncertaintyintheamountandtimingofthecashflows.FurtherdetailsaredisclosedinNotes14and15tothefinancialstatements.

(iii) Property Development

TheGrouprecognisespropertydevelopmentrevenueandexpensesintheincomestatementbyusingthe stageof completionmethod. The stageof completion is determinedby theproportionof thatpropertydevelopmentcostsincurredforworkperformedtodatebeartotheestimatedtotalpropertydevelopmentcosts.

Significantjudgementisrequiredindeterminingthestageofcompletion,theextentofthepropertydevelopmentcostsincurred,theestimatedtotalpropertydevelopmentrevenueandcosts,aswellastherecoverabilityofthedevelopmentprojects.Inmakingthejudgement,theGroupevaluatesbasedonpastexperienceandbyrelyingontheworkofspecialists.FurtherdetailsofpropertydevelopmentcostsaredisclosedinNote17tothefinancialstatements.

(iv) Deferred Tax Assets

Deferred taxassetsare recognised forallunused tax lossesandunabsorbedcapital allowances totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossesandcapitalallowancescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.FurtherdetailsofdeferredtaxassetsaredisclosedinNote33tothefinancialstatements.

(v) Income Tax

Significantestimation is involved indetermining theprovision for income taxes.Therearecertaintransactions and computations for which the ultimate tax determination is uncertain during theordinarycourseofbusiness.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.DetailsofincometaxexpensearedisclosedinNote9tothefinancialstatements.

(vi) Revised Estimated Useful Lives of Property, Plant and Equipment

TheGroupreviewstheestimatedusefullivesofcertainproperty,plantandequipmentattheendofeachannualreportingperiod.Duringthecurrentfinancialyear,thedirectorsareoftheopinionthatthereisnorequirementtorevisetheestimatedusefullivesofproperty,plantandequipmentexceptforCountryHeightsLifestyleBerhad,asubsidiaryoftheCompanywhichreviseitsestimatedusefullifesofbuildingsto50years.

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(b) Key Sources of Estimation Uncertainty (Cont’d)(vii) Impairment of Property, Plant and Equipment and Prepaid Land Lease Payments

Thedirectorshavereviewedthecarryingamountsofproperty,plantandequipmentandprepaidlandleasepaymentsandhaveestimatedtheirrecoverableamountstodeterminewhetheranyimpairmentlossisrequired.

In estimating the recoverable amounts of hotel properties and certain other property, plant andequipmentandprepaidlandleasepayments,thedirectorshavemadereferencetovaluationson29February2008byMr.ChockalingamP.Mohan,aregistervaluerofTDAzizSdnBhd,anindependentfirm of professional valuers using the comparison method, involving comparisons to other similarproperties.Thedirectorshavealsomadereferencetovalues-in-useofthosepropertiesindeterminingtherecoverableamount.

The recoverable amount of the exhibition centre & showroom used in the impairment review isdeterminedbasedonavaluationreportdated29February2008byMr.ChockalingamP.Mohan,aregistervaluerofTDAzizSdnBhd,anindependentfirmofprofessionalvaluers,usingthecomparisonmethodand thedepreciated replacementcostmethod.Thedirectorshavealsomade reference tovalues-in-useofthoseproperties,whichinvolvesjudgmentandestimationofthecashgeneratingunit(“CGU”)towhichtheassetsbelongandtheuseofappropriatediscountratesonpre-taxbasis.

Therecoverableamountofcertainproperty,plantandequipmentandprepaidlandleasepaymentsarebasedonvalue-in-useinvolvingjudgmentandestimationofthecashgeneratingunit(“CGU”)towhichtheassetsbelongandtheuseofappropriatediscountratesonapre-taxbasis.

The directors are of the opinion that there is no impairment to the carrying amounts of items inproperty,plantandequipmentandprepaidlandleasepayments.

3. REVENUE Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 Restated Continuing operations Propertydevelopment 90,491 50,518 - - Hoteloperations 54,625 45,338 - - Exhibitionoperations 2,545 5,883 - - Leisure,healthprogramsandtimeshare operations 63,423 66,413 - - Rentaloperations 5,401 4,552 - - Grossdividendincome - quotedshares 56 193 56 193 - unquotedshares - 560 15,540 6,000 Managementfeesfromsubsidiaries - - 2,206 2,113 Others 3,239 654 - - 219,780 174,111 17,802 8,306


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4. COST OF SALES

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Continuing operations Propertydevelopment 28,976 13,155 - - Costofinventoriessold 10,522 8,313 - - Costofservicerendered 61,834 60,785 - - 101,332 82,253 - -

5. FINANCE COSTS Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Continuing operations Interestexpenseon: RM150million3%to8% RedeemableSecuredBonds 1996/2009 29 12,000 12,000 12,000 12,000 Reimbursedfromasubsidiary - - (12,000) (12,000) 12,000 12,000 - - Termloans,revolvingcredits,working capitalloanandbankoverdrafts 4,950 8,700 - - Hirepurchaseandlease 370 162 - - 420,000,000Redeemable ConvertibleSecuredLoanStock 2004/2011(“RCSLSSeriesA”) 30 9,015 9,508 - - 68,821,674RedeemableSecured LoanStock2004/2011 (“RSLSSeriesB”) 30 10,436 - - - BankGuaranteedMediumTerm NotesandCommercialPaper 31 6,805 4,144 - - Intercompany - - - 1,369 Others 2,781 2,145 163 392 46,357 36,659 163 1,761 Less:Interestexpensecapitalisedin qualifyingassets - Propertydevelopmentcost 17(b) (767) (1,332) - - 45,590 35,327 163 1,761

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6. (LOSS)/PROFIT BEFORE TAX The following amounts have been included in arriving at (loss)/profit before tax from continuing and discontinued

operations:

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Restated Employeebenefitsexpense 7 46,690 42,262 2,019 2,237 Non-executiveCompanydirectors’ remuneration 8 107 96 93 81 Auditors’remuneration: Statutoryaudits - Ernst&Young 397 397 50 50 - Others 141 141 - - Otherservices 93 10 - - Allowancefordoubtfuldebts: - Subsidiaries - - 261 - - Others 6,733 6,545 235 - Allowancefordoubtfuldebts writtenback - Subsidiaries - - (1,398) - - Others (3,497) (1,385) (1,602) - Amortisationofdeferredincome (659) (687) - - Amortisationofprepaidlandlease payments 4,488 4,048 - - Baddebtswrittenoff 5,407 3,349 - - Depreciationofotherproperty,plant andequipment 14 14,449 19,725 18 17 Depreciationofhotelpropertiesand exhibitioncentre&showroom 13 4,198 4,135 - - Fairvalueadjustmenttoinvestment properties 15 (694) - - - Lossondisposalof investmentinsubsidiaries - - 1,451 - Lossondisposalof investmentinassociate 15 - - - (Gain)/lossondisposalofother investments (2,055) 5,200 (2,055) 5,200 Gainondisposalofotherproperty, plantandequipment (a) (469) (1,715) (2) - Gainondisposalofinvestment properties (a) (84,201) (769) - - Baddebtsrecovered (4) - - -


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6. (LOSS)/PROFIT BEFORE TAX (CONT’D)

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Restated Interestincome: - Shorttermdeposits (1,878) (1,582) (14) (13) - Others (476) - - - Netforeignexchange(gain)/loss (295) 46 - - Impairmentlossesinvalueof - otherinvestments 124 231 124 231 - investmentinsubsidiaries - - 4,269 - Inventorieswrittenoff 95 500 - - Investmentpropertieswrittenoff 15 105 - - - Leaserentalexpense 1,473 288 69 - Otherproperty,plantandequipment writtenoff 5 4,583 - - Rentalexpense 1,087 1,803 - - Rentalincome (1,642) (228) - - Rentalofequipment 125 598 - - Reversalofdeferredincome (273) (5,157) - - Reversalofimpairmentlossesin valueofotherinvestments (341) (6,390) (231) (6,154) Taxpenalty 2,744 2,492 - -

(a) Includedingainsondisposalofotherproperty,plantandequipmentandinvestmentpropertiesoftheGroupareRM82,552,000andRM358,000respectivelyarisingfromthedisposalofMinesShoppingFairasdisclosedinNote12tothefinancialstatements.

7. EMPLOYEE BENEFITS EXPENSE

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Restated Wagesandsalaries 35,208 35,524 1,561 1,672 Socialsecuritycosts 463 315 8 8 Contributiontodefined contributionplans 3,722 3,580 175 178 Otherstaffrelatedexpenses 7,297 2,843 275 379 46,690 42,262 2,019 2,237

Included inemployeebenefitsexpenseof theGroupandof theCompanyare remuneration (excludingbenefits-in-kind)ofexecutivedirectorsoftheGroupandoftheCompanyamountingtoRM2,160,000(2006:RM2,136,000)andRM911,000(2006:RM682,000)respectivelyasfurtherdisclosedinNote8tofinancialstatements.

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8. DIRECTORS’ REMUNERATION Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Restated Directors of the Company Executive: (a) Salaries and other emoluments TanSriLeeKimTiong@ LeeKimYew 321 321 321 321 Dato’OngChongSek 94 106 10 10 AbuYazidbinMuharam (redesignatedasNonExecutive DirectoreffectiveApril2006) 60 88 - - NgNyiHong(f) (redesignatedasNonExecutive DirectoreffectiveMarch2007) 48 204 - 12 ChooCheeBeng 179 167 10 10 LeeSowLin(f) 274 274 10 10 976 1,160 351 363

(b) Bonus - Currentyear’sprovisions TanSriLeeKimTiong@ LeeKimYew - - - - Dato’OngChongSek 428 269 428 269 AbuYazidbinMuharam (redesignatedasNonExecutive DirectoreffectiveApril2006) - - - - NgNyiHong(f) (redesignatedasNonExecutive DirectoreffectiveMarch2007) - - - - ChooCheeBeng 21 - 21 - LeeSowLin(f) - - - - 449 269 449 269 (c) Contribution to defined contribution plans TanSriLeeKimTiong@ LeeKimYew 45 45 45 45 Dato’OngChongSek 73 13 61 1 AbuYazidbinMuharam (redesignatedasNonExecutive DirectoreffectiveApril2006) - 7 - - NgNyiHong(f) (redesignatedasNonExecutive DirectoreffectiveMarch2007) 7 28 - 2 ChooCheeBeng 25 20 4 1 LeeSowLin(f) 38 38 1 1 188 151 111 50


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8. DIRECTORS’ REMUNERATION (CONT’D)

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Restated (d) Benefits-in-kind TanSriLeeKimTiong@ LeeKimYew 41 52 41 52 Dato’OngChongSek 25 19 - - AbuYazidbinMuharam (redesignatedasNonExecutive DirectoreffectiveApril2006) - 1 - - NgNyiHong(f) (redesignatedasNonExecutive DirectoreffectiveMarch2007) 1 5 - - ChooCheeBeng 7 7 - - LeeSowLin(f) 29 17 - - 103 101 41 52

Total 1,716 1,681 952 734 Non-executive: (a) Fees Gen.TanSri(Dr) MohamedHashimbin MohdAli(Rtd) 23 23 23 23 Dato’AzharbinHashim 19 19 19 19 AcademicianTanSriDatuk Dr.OngSoonHock 19 19 19 19 ChooChinThye 10 10 10 10 AbuYazidbinMuharam (redesignatedasNonExecutive DirectoreffectiveApril2006) 10 10 10 10 NgNyiHong(f) (redesignatedasNonExecutive DirectoreffectiveMarch2007) 12 - 12 - 93 81 93 81

Grand total 1,809 1,762 1,045 815 Directors of subsidiaries Executive: Salariesandotheremoluments 288 347 - - Bonus 33 31 - - Contributiontodefinedcontributionplans 62 62 - - Otheremoluments 164 116 - - Benefits-in-kind 8 10 - - 555 566 - -

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8. DIRECTORS’ REMUNERATION (CONT’D)

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Restated Non-executive: Fees 14 15 - - 569 581 - - Analysis excluding benefits-in-kind: Totalexecutivedirectors’ remunerationexcludingbenefits-in-kind 2,160 2,136 911 682 Totalnon-executivedirectors’ remuneration 6 107 96 93 81 Totaldirectors’remuneration excludingbenefits-in-kind 40(b) 2,267 2,232 1,004 763

9. INCOME TAX EXPENSE Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Continuing operations Incometax: Malaysianincometax 4,345 2,057 1,659 262 Foreigntax 148 181 - - (Over)/underprovidedinprioryears (716) 344 46 722 Taxsavingfromgrouprelief (841) (1,000) - - 2,936 1,582 1,705 984 Deferredtax: 33 Relatingtooriginationandreversal oftemporarydifferences 10,992 1,710 - - RelatingtochangesinMalaysian statutorytaxrates (605) (530) - - Reversaloftemporarydifferences inrespectofdepreciationon revaluationsurplus (992) (1,023) - - Underprovidedinprioryears 129 299 - - 9,524 456 - - Totalincometaxexpensefrom continuingoperations 12,460 2,038 1,705 984


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9. INCOME TAX EXPENSE (CONT’D) Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Discontinued operation Incometax: Malaysianincometax 1,707 - - - Overprovidedinprioryears (40) - - - 1,667 - - - Deferredtax: 33 Relatingtooriginationandreversal oftemporarydifferences (33,926) (6) - - RelatingtochangesinMalaysian statutorytaxrates (1,358) (3) - - (Over)/underprovidedinprioryears (36) 36 - - (35,320) 27 - - Totalincometaxexpensefrom discontinuedoperations 12 (33,653) 27 - - Totalincometaxexpense (21,193) 2,065 1,705 984

Domesticcurrent income tax iscalculatedat theMalaysianstatutory tax rateof27%(2006:28%)of theestimatedassessableprofitfortheyear.Thedomesticstatutorytaxratewillbereducedto26%fromthecurrentyear’srateof27%,effectiveyearofassessment2008andto25%effectiveyearofassessment2009.Thecomputationofdeferredtaxasat31December2007hasreflectedthesechanges.

Taxationforotherjurisdictionsiscalculatedattheratesprevailingintherespectivejurisdictions.Inthepreviousfinancialyear,theincometaxrateapplicabletothesubsidiariesinSouthAfricawasreducedfrom30%to29%.However,thereisnochangetothetaxrateinthecurrentfinancialyear.

Taxationforsmallandmediumscalesubsidiarieswithpaid-upcapitalofRM2,500,000andbelowarecalculatedattherateof20%onchargeableincomeofuptoRM500,000(2006:RM500,000).ForchargeableincomeinexcessofRM500,000,thestatutorytaxrateof27%(2006:28%)isapplicable.

The group tax charge for the year has been reduced by RM841,000 (2006: RM1,000,000) because of the lossessurrenderedbycertainlossmakingsubsidiariestocertainprofitmakingsubsidiaries.Nopaymentforthissurrenderwasmadeamongthesubsidiariesinvolved.

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9. INCOME TAX EXPENSE (CONT’D)

Areconciliationofincometaxexpenseapplicableto(loss)/profitbeforetaxatthestatutoryincometaxratetoincometaxexpenseattheeffectiveincometaxrateoftheGroupandoftheCompanyareasfollows:

2007 2006 Group RM’000 RM’000 (Loss)/profitbeforetaxfrom: Continuingoperations (12,648) (41,375) Discontinuedoperation 91,263 7,410 78,615 (33,965) TaxationatMalaysianstatutorytaxrateof27%(2006:28%) 21,226 (9,510) Effectofdifferenttaxrateforsmallandmediumscalesubsidiaries of20%forthefirstchargeableincomeofRM500,000 (29) - Effectofdifferenttaxratesinothercountries 3 (5) EffectofreductioninMalaysianincometaxrate (1,963) (533) Effectsofshareofresultsofassociates 43 33 Incomenotsubjecttotax (72,117) (13,033) Expensesnotdeductiblefortaxpurposes 22,977 17,848 Utilisationofpreviouslyunrecognisedtaxlossesandunabsorbedcapitalallowances (1,483) (2,026) Deferredtaxassetsrecognisedonunutilisedbusinesslossesand capitalallowancesbroughtforward (1,612) 4 Deferredtaxassetsnotrecognisedinrespectofcurrentyear’stax lossesandunabsorbedcapitalallowances 14,294 10,631 (Over)/underprovisionoftaxexpenseinprioryears (756) 344 Underprovisionofdeferredtaxinprioryears 93 335 Reversalofdeferredtaxliabilitiesinrespectofdepreciationtransfer onrevaluedhotelpropertiesandexhibitioncentre&showroom (992) (1,023) Reversalofdeferredtaxrecognisedforrevaluedfreeholdlandandbuilding (36) - Taxsavingfromgroupreliefinsubsidiaries (841) (1,000)

Taxexpensefortheyear (21,193) 2,065 Company Profitbeforetax 12,629 3,181 TaxationatMalaysianstatutorytaxrateof27%(2006:28%) 3,410 891 Effectofincomenotsubjecttotax (1,974) (1,120) Effectofexpensesnotdeductiblefortaxpurposes 1,499 486 Deferredtaxassetsrecognisedinrespectofcurrentyear’stax lossesandunabsorbedcapitalallowances (1,276) - Deferredtaxassetsnotrecognisedinrespectofcurrentyear’stax lossesandunabsorbedcapitalallowances - 5 Underprovisionofincometaxexpenseinprioryears 46 722 Taxexpensefortheyear 1,705 984


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10. EARNINGS PER SHARE

(a) Basic

BasicearningspershareiscalculatedbydividingprofitfortheyearattributabletoordinaryequityholdersoftheCompanybytheweightedaveragenumberofordinarysharesinissueduringthefinancialyear.

Group 2007 2006 RM’000 RM’000 Lossfromcontinuingoperationsattributabletoordinaryequity holdersoftheCompany (24,435) (40,072) Profitfromdiscontinuedoperationattributabletoordinaryequity holdersoftheCompany 124,916 7,383

Profit/(loss)attributabletoordinaryequityholdersoftheCompany 100,481 (32,689) Weightedaveragenumberofordinarysharesinissue forbasicearningpershare(‘000) 275,707 275,707

Group 2007 2006 sen sen Basicearningpersharefor: Lossfromcontinuingoperations (8.86) (14.53) Profitfromdiscontinuedoperation 45.31 2.68 Profit/(loss)fortheyear 36.45 (11.85)

(b) Diluted

Thereisnodilutioninearningspershare.

11. DIVIDENDS

NodividendhasbeenpaidordeclaredbytheCompanysincetheendofthepreviousfinancialyear.Thedirectorsdonotrecommendthepaymentofanydividendinrespectofthecurrentfinancialyear.

12. DISCONTINUED OPERATION

On16August2007,MinesShoppingFairSdnBhd(“MSFSB”),awholly-ownedsubsidiaryofEastVisionLeisureGroupSdnBhd(“EVL”),whichinturnisawholly-ownedsubsidiaryoftheCompany,enteredintoasaleandpurchaseagreement(“MSFAgreement”)withMutualStreamsSdnBhd(“MSSB”)todisposeofMinesShoppingFair(“MSF”)comprisinglandanda shoppingmallerected thereon foracashconsiderationofRM432,000,000.Thedisposal resulted ingainondisposaltotheGroupofRM82,910,000andthereversalofdeferredtaxliabilitiestotheGroupofRM35,320,000duringthefinancialyear.

MSSB is currently in the process of registering the transfer of the land title. The disposal of MSF, resulted in thediscontinuedof the lettingofshoppingmall lotsandpromotionspaceoperations,whichwas includedin therentaloperationssegment.

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12. DISCONTINUED OPERATION (CONT’D)

Ananalysisoftheresultofdiscontinuedoperationisasfollows: Group 2007 2006 Note RM’000 RM’000 Revenue 38,755 39,054 Costofsales (9,348) (8,776) Grossprofit 29,407 30,278 Otherincome,includinggainondisposalofMinesShoppingFair 85,067 265 Expenses (7,923) (7,441) Financecost,representinginterestonRCSLSSeriesA 30 (15,288) (15,692)

Profitbeforetaxofdiscontinuedoperation 91,263 7,410 Incometaxexpense,includingreversalofdeferredtax liabilitiesondisposalofMinesShoppingFair 9 33,653 (27)

Profitfortheyearfromdiscontinuedoperation 124,916 7,383 Thefollowingamountshavebeenincludedinarrivingatprofitbeforetaxofdiscontinuedoperation: Group 2007 2006 Note RM’000 RM’000 Employeebenefitsexpenses 5,418 4,504 Allowancefordoubtfuldebts 376 798 Allowancefordoubtfuldebtswrittenback (22) (313) Depreciationofotherproperty,plantandequipment 312 395 InterestexpenseonRCSLSSeriesA 30 15,288 15,692 Gainondisposalofotherproperty,plantandequipment (425) - Gainondisposalofinvestmentproperties (82,552) - Businessdisruptionfees (a) 1,873 -

(a) Duringthefinancialyear,MinesShoppingFairSdnBhd(‘’MSFSB’’)enteredintoarrangementswithMutualStreamSdnBhd(“MSSB”)toactasoriginatorinrespectoftheissuanceofanasset-backedsecuritiesbyMSSBrelatedtoMinesShoppingFairforabusinessdisruptionfeesofRM2,000,000lessprofessionalfeeofRM127,000inrelationtothedisposalofMinesShoppingFair.

Thecashflowsattributabletothediscontinuedoperationareasfollows: Group 2007 2006 RM’000 RM’000 Operatingcashflows (418,483) (4,782) Investingcashflows 420,290 (1,890) Financingcashflows - 2,500 Totalcashflows 1,807 (4,172)


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13. HOTEL PROPERTIES AND EXHIBITION CENTRE & SHOWROOM Exhibition Hotel Centre & Properties Showroom Total Group RM’000 RM’000 RM’000 At 31 December 2007 Valuation At1January2007 306,669 134,840 441,509 Additions 1,206 - 1,206 At31December2007 307,875 134,840 442,715 Accumulated depreciation and impairment losses At1January2007 Accumulateddepreciation 3,283 852 4,135 Accumulatedimpairmentlosses 24,162 61,545 85,707 27,445 62,397 89,842 Depreciationchargefortheyear 3,346 852 4,198 At31December2007 30,791 63,249 94,040

Net carrying amount 277,084 71,591 348,675 At 31 December 2006 (Restated) Valuation At1January2006 306,448 134,840 441,288 Additions 221 - 221 At31December2006 306,669 134,840 441,509 Accumulated depreciation and impairment losses At1January2006 Accumulateddepreciation - - - Accumulatedimpairmentlosses 24,162 61,545 85,707 24,162 61,545 85,707 Depreciationchargefortheyear 3,283 852 4,135 At31December2006 27,445 62,397 89,842 Net carrying amount 279,224 72,443 351,667

HotelpropertiescomprisePalaceoftheGoldenHorsesandPalaceBeach&SpaheldbyGoldenHorsePalaceBerhad(“GHP”)(previouslyknownasMinesCityHotelBerhad)andMinesBeachResortSdnBhd(“MBR”)respectively.

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13. HOTEL PROPERTIES AND EXHIBITION CENTRE & SHOWROOM (CONT’D)

PalaceoftheGoldenHorseswasrevaluedon20May2004byJamesWongKwongOnn,aRegisteredValueroftheindependentprofessionalvaluercompany,VPCAlliance(KL)SdnBhd,usingtheinvestmentmethod.

No adjustment has been made to the carrying amount of Palace of the Golden Horses since 20 May 2004 as thedirectors,basedonanothervaluationcarriedoutdated29February2008byMr.ChockalingamP.Mohan,aregistervaluerofTDAzizSdnBhd,anindependentfirmofprofessionalvaluers,usingthecomparisonmethodofvaluation,wereofopinionthatthesaidcarryingamountdidnotdiffermateriallyfromthemarketvalueasofthatdate.

PalaceBeach&Spaisstatedatdirectors’assessmentofvaluationwhichisdeterminedbyreferencetoaprofessionalvaluationcarriedoutbyMr.ChockalingamP.Mohan,aregisteredvalueroftheindependentprofessionalvaluercompany,TDAzizSdnBhdon29February2008usingthecomparisonmethodandbydirectors’referencetothevalue-in-useofPalaceBeach&Spa.

MalaysiaInternationalExhibition&ConventionCentre&ShowroomheldbyMinesInternationalExhibitionCentreSdnBhdisstatedatdirectors’assessmentofvaluationwhichisdeterminedbyreferencetoaprofessionalvaluationcarriedoutbyChockalingamP.Mohan,aregisteredvalueroftheindependentprofessionalvaluercompany,TDAzizSdnBhdon29February2008usingthecomparisonmethodanddepreciatedreplacementcostmethod.

At 31 December 2007, had the revalued hotel properties and exhibition centre & showroom of the Group beencarriedunder thecostmodel, thecarryingamountwouldhavebeenRM249,855,000 (2006:RM251,624,000) andRM71,591,000(2006:RM72,443,000)respectively.

ThePalaceoftheGoldenHorsesandMalaysiaInternationalExhibition&ConventionCentre&ShowroomarepledgedassecuritiesforborrowingsasdisclosedinNotes29and30tothefinancialstatements.

14. OTHER PROPERTY, PLANT AND EQUIPMENT Office Plant, Golf Clubs Freehold Furniture Machinery & Courses Capital Land and Leasehold and and and Boat Motor Work-in- Buildings Buildings Fittings Equipment Clubs Vehicles Progress Total Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group At 31 December 2007 Cost/Transitional Cost* At1January2007 2,022 13,045 36,165 119,198 68,356 7,581 30,248 276,615 Additions - - 1,526 1,404 77 738 3,760 7,505 Transferfrom/(to) investmentproperties 15 2,136 809 - 112 - - (270) 2,787 Disposals/write-off - - (2,161) (1,944) (188) (875) (12) (5,180) Disposalofsubsidiaries 18(a) - - (3,507) - - (1,186) - (4,693) Exchangedifferences - - (40) - (543) (5) - (588)

At31December2007 4,158 13,854 31,983 118,770 67,702 6,253 33,726 276,446 Representing: Atcost - 13,854 31,983 118,770 67,702 6,253 33,726 272,288 Attransitionalcost* 4,158 - - - - - - 4,158


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14. OTHER PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Office Plant, Golf Clubs Freehold Furniture Machinery & Courses Capital Land and Leasehold and and and Boat Motor Work-in- Buildings Buildings Fittings Equipment Clubs Vehicles Progress Total Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Accumulated Depreciation and Impairment Losses At1January2007 Accumulateddepreciation 387 2,194 31,297 100,125 10,392 5,035 - 149,430 Accumulatedimpairment losses - - - - - - 8,317 8,317 387 2,194 31,297 100,125 10,392 5,035 8,317 157,747 Depreciationchargefor theyear - 351 2,031 9,744 1,551 772 - 14,449 Disposals/write-off - - (1,571) (1,074) (183) (818) - (3,646) Disposalofsubsidiaries 18(a) - - (3,504) - - (1,185) - (4,689) Exchangedifferences - - (33) - (56) (2) - (91)

At31December2007 387 2,545 28,220 108,795 11,704 3,802 8,317 163,770 Net Carrying Amount Atcost - 11,309 3,763 9,975 55,998 2,451 25,409 108,905 Attransitionalcost* 3,771 - - - - - - 3,771 3,771 11,309 3,763 9,975 55,998 2,451 25,409 112,676

* Revaluedbasedonindependentvaluationsontheopenmarketvaluebasisin1994asallowedbythetransitionalprovisionsofInternationalAccountingStandard16(Revised),Property,PlantandEquipment;theseassetshavecontinuedtobestatedatsurrogatecost,basedonthe1994valuations.

Office Plant, Golf Clubs Freehold Furniture Machinery & Courses Capital Land and Leasehold and and and Boat Motor Work-in- Buildings Buildings Fittings Equipment Clubs Vehicles Progress Total Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group At 31 December 2006 (Restated) Cost/Transitional Cost* At1January2006 2,022 9,535 35,273 122,781 72,346 7,697 25,790 275,444 Additions - 4,347 1,431 1,913 260 670 4,469 13,090 Disposals/write-off - (837) (290) (5,496) (597) (751) (11) (7,982) Exchangedifferences - - (249) - (3,653) (35) - (3,937)

At31December2006 2,022 13,045 36,165 119,198 68,356 7,581 30,248 276,615 Representing: Atcost - 13,045 36,165 119,198 68,356 7,581 30,248 274,593 Attransitionalcost* 2,022 - - - - - - 2,022

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14. OTHER PROPERTY, PLANT AND EQUIPMENT (CONT’D) Office Plant, Golf Clubs Freehold Furniture Machinery & Courses Capital Land and Leasehold and and and Boat Motor Work-in- Buildings Buildings Fittings Equipment Clubs Vehicles Progress Total Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Accumulated Depreciation and Impairment Losses At1January2006 Accumulateddepreciation 355 1,868 28,580 87,294 9,144 5,162 - 132,403 Accumulatedimpairment losses - - - - - - 8,317 8,317 355 1,868 28,580 87,294 9,144 5,162 8,317 140,720 Depreciationchargefortheyear 32 694 3,045 13,728 1,632 594 - 19,725 Disposals/write-off - (368) (120) (897) - (710) - (2,095) Exchangedifferences - - (208) - (384) (11) - (603)

Atcost 387 2,194 31,297 100,125 10,392 5,035 8,317 157,747 Net Carrying Amount Atcost - 10,851 4,868 19,073 57,964 2,546 21,931 117,233 Attransitionalcost* 1,635 - - - - - - 1,635 1,635 10,851 4,868 19,073 57,964 2,546 21,931 118,868

* Revaluedbasedonindependentvaluationsontheopenmarketvaluebasisin1994asallowedbythetransitionalprovisionsofInternationalAccountingStandard16(Revised),Property,PlantandEquipment;theseassetshavecontinuedtobestatedatsurrogatecost,basedonthe1994valuations.

Office Furniture and Office Motor Fittings Equipment Vehicles Renovation Total RM’000 RM’000 RM’000 RM’000 RM’000 Company At 31 December 2007 Cost At1January2007 32 49 7 16 104 Additions - 14 - 3 17 Disposal - (4) - - (4) At31December2007 32 59 7 19 117

Accumulated Depreciation At1January2007 9 27 3 5 44 Depreciationchargefortheyear 3 12 1 2 18 Disposal - (3) - - (3) At31December2007 12 36 4 7 59 Net Carrying Amount 20 23 3 12 58


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14. OTHER PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Office Furniture and Office Motor Fittings Equipment Vehicles Renovation Total RM’000 RM’000 RM’000 RM’000 RM’000 Company At 31 December 2006 Cost At1January2006 16 38 7 16 77 Additions 16 11 - - 27

At31December2006 32 49 7 16 104

Accumulated Depreciation At1January2006 6 16 2 3 27 Depreciationchargefortheyear 3 11 1 2 17 At31December2006 9 27 3 5 44 Net Carrying Amount 23 22 4 11 60

(a) Certain freehold landandbuildingsof theGroupwere revaluedbasedon independentvaluationscarriedoutbyEn.SulaimanMustafa,aregisteredvaluer in JonesLangWootton,onanopenmarketvaluebasis in1994.AsallowedbythetransitionalprovisionsofInternationalAccountingStandard16(Revised),Property,PlantandEquipment,theseassetshavecontinuedtobestatedatsurrogatecost,basedonthe1994valuations.

(b) During the financial year, the Group acquired other property, plant and equipment at aggregate costs ofRM7,505,000(2006:RM13,090,000)ofwhichRM738,000(2006:RM552,000)wereacquiredbymeansofhirepurchaseandfinance leasearrangements.Netcarryingamountofotherproperty,plantandequipmentof theGroupheldunderhirepurchaseandfinanceleasearrangementsasatbalancesheetdateisRM2,232,000(2006:RM1,520,000).

(c) Thenetcarryingamountofotherproperty,plantandequipmentofRM41,552,000(2006:RM43,865,000)arepledgedassecurityforborrowingsasdisclosedinNotes27,29and30tothefinancialstatements.

(d) Asubsidiary,CountryHeightsLifestyleBerhad,isintheprocessofobtainingthestratatitlesforcertainapartmentunits includedinleaseholdbuildingsfromtherespectivedevelopers.Netbookvalueof thoseapartmentunitsamountedtoRM921,000(2006:RM955,000).

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15. INVESTMENT PROPERTIES

Group 2007 2006 Note RM’000 RM’000 Restated

At1January 431,793 416,642 EffectofadoptingFRS140(*) - 15,270 Additionsfromsubsequentexpenditure 944 1,838 Disposals (337,220) (1,957) Writtenoff 6 (105) - Transfertoprepaidlandleasepayment 16 (1,079) - Transfertoproperty,plantandequipment 14 (2,787) - Reclassifiedasnon-currentassetheldforsale 26 (873) - Fairvalueadjustment 6 694 - At31December 91,367 431,793

*Revaluedbasedonindependentvaluationsontheopenmarketvaluebasisin1994asallowedbythetransitionalprovisionsofInternationalAccountingStandard16(Revised),Property,PlantandEquipment;theseassetshavecontinuedtobestatedatsurrogatecost,basedonthe1994valuations.

Fair value for investmentproperties are arrivedatby reference tomarket evidenceof transactionprices for similarproperties,performedbyregistered independentvaluershavinganappropriate recognisedprofessionalqualificationandrecentexperienceinthelocationandcategoryofthepropertiesbeingvalued.Intheabsenceofcurrentpricesinanactivemarket,fairvalueforcertaininvestmentpropertieswerestatedbasedonvalue-in-use.

Thefollowinginvestmentpropertiesareheldunderleaseterms:

Group 2007 2006 RM’000 RM’000 Restated Leaseholdland 54,374 230,255 Buildings 21,331 183,771 75,705 414,026

TheinvestmentpropertieswithcarryingamountofRM88,743,000(2006:RM431,612,000)arepledgedassecurityforborrowingsasdisclosedinNotes29and30tothefinancialstatements.


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16. PREPAID LAND LEASE PAYMENTS Group 2007 2006 Note RM’000 RM’000 Restated

At1January 360,352 364,400 Transferfrominvestmentproperties 15 1,079 - Amortisationfortheyear (4,488) (4,048) At31December 356,943 360,352 Analysedas: Longtermleaseholdland 356,943 360,352 Shorttermleaseholdland - - 356,943 360,352

Includedinprepaidlandleasepaymentsarecertainparcelsofland,withanaggregatecarryingvalueofRM14,097,000(2006:RM14,433,000),forwhichtheGroupisintheprocessofobtainingregistrationoflandtitlesfromtherelevantauthorities.

PrepaidlandleasepaymentswithcarryingamountofRM340,153,000(2006:RM343,187,000)arepledgedassecurityforborrowingsasdisclosedinNote27,29and30tothefinancialstatements.

17. LAND HELD FOR PROPERTY DEVELOPMENT AND PROPERTY DEVELOPMENT COSTS

(a) Land Held for Property Development Freehold Leasehold Land Land Total Group Note RM’000 RM’000 RM’000 At 31 December 2007 Cost/Carrying amount At1January2007 130,675 64,870 195,545 Additions 3,227 9,253 12,480 Transfertopropertydevelopmentcost 17(b) (17,043) (14,344) (31,387) At31December2007 116,859 59,779 176,638

At 31 December 2006 (Restated)

Cost/Carrying amount At1January2006 139,511 62,122 201,633 Additions 4,628 1,855 6,483 Transferfrom/(to)propertydevelopmentcost 17(b) (13,464) 893 (12,571) At31December2006 130,675 64,870 195,545

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17. LAND HELD FOR PROPERTY DEVELOPMENT AND PROPERTY DEVELOPMENT COSTS (CONT’D)

(a) Land Held for Property Development (Cont’d)

Includedinlandheldforpropertydevelopmentarecertainparcelsofland,withanaggregatecarryingvalueofRM50,659,000(2006:RM50,413,000),forwhichtheGroupisintheprocessofobtainingregistrationoflandtitlesfromtherelevantauthorities.

LandheldforpropertydevelopmentwithacarryingamountofRM73,921,000(2006:RM87,983,000)arepledgedassecurityforborrowingsasdisclosedinNotes27and31tothefinancialstatements.

(b) Property Development Costs Group 2007 2006 Note RM’000 RM’000 Propertydevelopmentcostsat1January: Freeholdland 109,250 106,075 Leaseholdland 163 163 Developmentcosts 218,088 206,782 327,501 313,020 Costsincurredduringtheyear: Freeholdland - - Leaseholdland - - Developmentcosts 20,763 12,510 20,763 12,510 Costrecognisedinincomestatement: At1January (240,763) (229,613) Recognisedduringtheyear (28,825) (11,150) (269,588) (240,763) Transfers: Fromlandheldforpropertydevelopment 17(a) 31,387 12,571 Toinventories (5,444) (10,600) 25,943 1,971 Propertydevelopmentcostsat31December 104,619 86,738

IncludedinpropertydevelopmentcostsincurredduringthefinancialyearisinterestcapitalisedofRM767,000

(2006:RM1,332,000).

ThepropertydevelopmentcostswithacarryingamountofRM49,357,000(2006:RM37,521,000)arepledgedassecurityforborrowingsasdisclosedinNote31tothefinancialstatements.


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18. INVESTMENT IN SUBSIDIARIES Company 2007 2006 RM’000 RM’000 Unquotedshares: - atcost 233,201 235,400 Less:Accumulatedimpairmentlosses (8,369) (4,100) 224,832 231,300

In thepreviousfinancial year, the entire issuedandpaidup share capital ofMines ShoppingFair SdnBhd,MinesWaterfrontBusinessParkSdnBhdandMinesInternationalExhibitionCentreSdnBhdwerechargedassecurityinfavourofKhazanahNasionalBerhadandAmInvestmentBankBerhad(“AmInvestment”)(previouslyknownasAmMerchantBank Berhad), AmFinance Berhad, AmBank Berhad, RHB Bank Berhad (“RHB”) and CIMB Bank Berhad (“CIMB”)(“Lenders”) inrelationtotheissuanceofRCSLSSeriesAandRSLSSeriesBasdisclosedinNote30tothefinancialstatements.

RCSLS Series A has been fully redeemed during the financial year as disclosed in the Note 30 to the financialstatements.

Detailsofsubsidiariesareasfollows: Proportion of Ownership Country of Interest (%) Names of Subsidiaries Incorporation Principal Activities 2007 2006

CountryHeightsSdnBhd Malaysia 100 100 Property CollegeHeightsUtaraSdnBhd Malaysia development 100 100

BorneoHeightsSdnBhd Malaysia Propertydevelopment 70 70 andpropertyinvestment CountryHeightsParadeSdnBhd Malaysia - 100 Property TindakMurniSdnBhd Malaysia development 100 100

CountryHeightsIndustriesSdnBhd Malaysia Property 100 100 developmentand propertyinvestment CountryHeightsW.T.C.SdnBhd Malaysia 100 100

CountryHeightsPropertiesSdnBhd Malaysia Projectmanagement 100 100 andinvestmentholding

EtikaCergas(M)SdnBhd Malaysia 100 100

SpeedbuildSdnBhd Malaysia 100 100

SteadyProspectSdnBhd Malaysia Investmentholding 100 100

EastVisionLeisureGroupSdnBhd Malaysia 100 100

MinesHoldingsSdnBhd Malaysia 100 100

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18. INVESTMENT IN SUBSIDIARIES (CONT’D)

Detailsofsubsidiariesareasfollows:(Cont’d) Proportion of Ownership Country of Interest (%) Names of Subsidiaries Incorporation Principal Activities 2007 2006

+CountryHeightsChinaLtd Labuan Investmentholding 100 100

+CountryHeightsGlobalLtd Labuan Dormant 100 100

WalumEnterpriseSdnBhd Malaysia Ownershipof 100 100 landheldforproperty HasilCermatSdnBhd Malaysia development 100 100

CountryHeightsDevelopment Malaysia Property 100 100 SdnBhd investment

CountryHeightsMarketingSdnBhd Malaysia Provisionofmarketing - 100 services

CountryHeightseMarketingServices Malaysia Provisionofmarketing 100 - SdnBhd services (previouslyknownasIDECHome FurnishingCentreSdnBhd) VersatileChampionSdnBhd Malaysia Propertytrading 100 100

NasmayaJuaraSdnBhd Malaysia Buildingand 100 100 infrastructurecontractor

+GoldenHorsePalaceBerhad Malaysia Ownershipand 81 81 (previouslyknownasMinesCity operationofahoteland HotelBerhad) provisionofhealthprograms

MinesePurseSdnBhd Malaysia Resortandhotel 100 100 managementand investmentholding

CountryHeightsResorts& Malaysia Resortmanagement 100 100 LeisureSdnBhd andinvestmentholding

LokasiIstimewaSdnBhd Malaysia Dormant 100 100

MagnitudeKnight(M)SdnBhd Malaysia Investmentholding 100 100

IMECEducationServicesSdnBhd Malaysia 100 100

CountryHeightsResources MalaysiaDormant

100 100 Management(M)SdnBhd

CountryHeightsProperty Malaysia 100 100 DevelopmentBerhad


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CountryHeightsGardenResort Malaysia Dormant 100 100 (Sibu)SdnBhd CountryHeightsSeaResortSdnBhd Malaysia Dormant 100 100 KristalPeramah(M)SdnBhd Malaysia Provisionofproject 100 100 developerservices

CountryHeightsEducationSdnBhd Malaysia Provisionofeducational 70 70 relatedservices

MalaysiaTrade&Distribution Malaysia Dormant 60 60 Centre(Rotterdam)SdnBhd

CountryHeightsQualityLife Malaysia Dormant 60 60 ServicesSdnBhd

CountryHeightsPromotionsSdnBhd Malaysia Dormant 100 100 Subsidiary of Borneo Heights Sdn Bhd

BorneoHighlandsHornbillGolf& Malaysia Ownership&operationofa 100 100 JungleClubBerhad golfcourseandclubhotel

Subsidiary of Country Heights Industries Sdn Bhd MasterStrikeSdnBhd Malaysia Propertyinvestment 100 100 Subsidiaries of Country Heights Properties Sdn Bhd +BestGoldenInc BritishVirgin Dormant 100 100 Islands CountryHeightsEnterpriseSdnBhd Malaysia Investmentholding 100 100 andpropertydevelopment MegaPalmSdnBhd Malaysia Propertydevelopment 100 100 CountryHeightsPangsa Malaysia Propertyinvestment 100 100 RakyatSdnBhd Subsidiary of Country Heights Enterprise Sdn Bhd

CountryHeightsGoldenLifestyleSdnBhd Malaysia Dormant 100 100

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Subsidiary of Speedbuild Sdn Bhd +LinesPteLtd United Dormant 100 100 Kingdom Subsidiaries of Steady Prospect Sdn Bhd

FreshInnovativesSdnBhd Malaysia Propertyinvestment 100 100 ProfoundConceptSdnBhd Malaysia Propertydevelopment 100 100

EndlessGainSdnBhd Malaysia Lettingofshops 100 100

Subsidiaries of Mines Holdings Sdn Bhd

TimbangMakmurSdnBhd Malaysia Dormant 100 100

CountryHeightsHealthTourism Malaysia Provisionofhealthscreening 70 70 SdnBhd servicesandhealthprograms MinesBeachResortSdnBhd Malaysia Ownership&operator 100 100 ofahotel

MinesEngineering&Technical Malaysia Dormant 100 100 ServicesSdnBhd KinNoUmaSdnBhd Malaysia 100 100

+CountryHeightsPromotions BritishVirgin 100 100 Limited Islands

Dormant

TenPlusOneSdnBhd Malaysia 100 100 IDEC(M)SdnBhd Malaysia 100 100

CountryHeightseMarketingServices Malaysia - 100 SdnBhd (previouslyknownasIDECHome FurnishingCentreSdnBhd) Subsidiaries of East Vision Leisure Group Sdn Bhd MinesShoppingFairSdnBhd Malaysia Lettingofshoppingmall 100 100 lotsandpromotionspace*


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MinesWaterfrontBusinessParkSdnBhd Malaysia Lettingofofficeblocks 100 100 MinesInternationalExhibition Malaysia Investmentholding,manager 100 100 CentreSdnBhd ofexhibitioncentreand conventionsandprovision ofcateringservices Subsidiaries of Mines International Exhibition Centre Sdn Bhd

MinesExhibition Malaysia Provisionofmanagement 70 70 ManagementSdnBhd services OutputCombinationSdnBhd Malaysia Dormant 100 100 Subsidiary of Country Heights Marketing Sdn Bhd PRSHomesSdnBhd Malaysia Dormant - 100 Subsidiaries of Mines ePurse Sdn Bhd SignatureCatering&Conference Malaysia Dormant 100 100 ServicesSdnBhd +SignatureHotelsPteLtd Singapore Dormant 100 100

Subsidiaries of Country Heights Resorts & Leisure Sdn Bhd

CountryHeightsLifestyleBerhad Malaysia Provisionofleisure 100 100 relatedservices

WorldRacquetCentreSdnBhd Malaysia Provisionofmarketingservices 100 100

MinesPremiumSdnBhd Malaysia Solutionsproviderand 100 100 promotionactivities

Subsidiary of College Heights Utara Sdn Bhd PRSHomesSdnBhd Malaysia Propertydevelopment 100 -

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Subsidiaries of Magnitude Knight (M) Sdn Bhd

+CountryHeightsPecanwoodGolf& SouthAfrica Ownershipandoperators 100 100 CountryClub(Pty)Ltd ofgolfestateclub

+CountryHeightsPecanwoodBoat SouthAfrica Ownershipand 100 100 Club(Pty)Ltd operatorofboatclub

+AuditedbyfirmsofauditorsotherthanErnst&Young *Ceasedprincipalactivitiesduringthefinancialyear

(a) Disposal of subsidiaries AsdisclosedinNote44(e)and(g)tothefinancialstatements,thefollowingsubsidiariesweredisposedduringthe

financialyear:-

(i) Disposalofsharesinasubsidiary,CountryHeightsMarketingSdnBhd(“CHMSB”)

On28May2007,theCompanyenteredintoasaleandpurchaseofsharesagreement(“CHMSBDisposalAgreement”)withCountryHeightsInternationalSdnBhd,arelatedparty,todisposeof2,600,000ordinaryshares of RM1 each representing the Company’s entire equity interest in a subsidiary, Country HeightsMarketingSdnBhd(“CHMSB”),foracashconsiderationofRM960,000.ThecashconsiderationwasarrivedatbasedontheauditednetassetsofCHMSBasatthedateofdisposal.ThecostofinvestmentinCHMSBwasRM2,600,000.Arisingfromthedisposal,therewasnogainorlosstotheGroupwhilstlosstotheCompanyamountedtoRM1,640,000.TheprincipalbusinessactivityofCHMSBistheprovisionofmarketingservices,previouslyreportedaspartofthepropertydevelopmentsegment.

(ii) Disposalofsharesinasubsidiary,CountryHeightsParadeSdnBhd(“CHPSB”)

On24October2007,theCompanyenteredintoasharepurchaseagreementforthedisposalof2,600,000ordinarysharesofRM1eachrepresentingtheCompany’sentireequityinterestinCountryHeightsParadeSdnBhd(“CHPSB”),awholly-ownedsubsidiaryoftheCompany,foracashconsiderationofRM2,789,000.ThecashconsiderationwasarrivedatbasedonthenetassetsofCHPSBasat19October2007ofRM2,789,000.ThecostofinvestmentinCHPSBwasRM2,600,000.Arisingfromthedisposal,therewasnogainorlosstotheGroupwhilstgaintotheCompanyamountedtoRM189,000.TheprincipalbusinessactivityofCHPSBispropertydevelopment,previouslyreportedaspartofthepropertydevelopmentsegment.


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(a) Disposal of subsidiaries (Cont’d)

Therevenue,resultsandcashflowsofthetwosubsidiarieswereasfollows: Financial Financial period ended period ended 28.5.2007 24.10.2007 Total RM’000 RM’000 RM’000 Revenue - - - Costofsales - - -

Grossprofit - - - Otheroperatingincome - 59 59 Administrativeexpenses - (1,724) (1,724) Otherexpenses - (162) (162)

Operatingloss - (1,827) (1,827) Financecost - - -

Lossbeforetax - (1,827) (1,827) Incometaxexpense - 512 512

Lossfortheyear - (1,315) (1,315) Cashflowsfromoperatingactivities (2,688) 12,263 9,575 Cashflowsfrominvestingactivities 3,395 - 3,395 Cashflowsfromfinancingactivities (707) (12,300) (13,007) Totalcashflows - (37) (37)

Thenetassetsofthetwosubsidiarieswereasfollows: As at As at 28.5.2007 24.10.2007 Total Note RM’000 RM’000 RM’000 Otherproperty,plantandequipment 14 - 4 4 Inventories - 4,165 4,165 Tradereceivablesandotherreceivables 1,149 23,038 24,187 Taxrecoverable 19 - 19 Cashandbankbalances 9 - 9 Tradepayablesandotherpayables (217) (6,890) (7,107) Taxpayable - (17,528) (17,528)

Netassetsdisposed 960 2,789 3,749 Totaldisposalproceeds (960) (2,789) (3,749)

GainondisposaltotheGroup - - - Cashinflowarisingondisposal: Cashconsideration,representingcash inflowtotheCompany 3,749 Cashandcashequivalentsofsubsidiariesdisposed (9)

NetcashinflowoftheGroup 3,740

Therewasnotaxchargeorcreditarisingfromthesaiddisposal.

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(b) Investments in subsidiaries

(i) Duringthefinancialyear, theCompanyacquired3,000,000ordinarysharesofRM1.00eachinCountryHeights eMarketing Services Sdn Bhd (previously known as IDEC Home Furnishing Centre Sdn Bhd)fromMinesHoldings SdnBhd, awholly-owned subsidiaryof theCompany for a cash considerationofRM3,000,000.

(ii) Inthepreviousyear,theCompanyacquiredadditionalordinarysharesinthefollowingsubsidiarypursuanttothecapitalisationofamountsduefromthissubsidiary:

Number of Ordinary shares acquired Amount 2007 2006 2007 2006 ‘000 ‘000 RM’000 RM’000 CountryHeightsPromotionsSdnBhd - 10 - 10

19. INVESTMENT IN ASSOCIATES

Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 InMalaysia: Unquotedsharesatcost 3,357 277 247 247 Shareofpost-acquisitionreserves (62) 333 - - 3,295 610 247 247 Less:Accumulatedimpairmentlosses - - - - 3,295 610 247 247

TheGroup’sinterestsinassociateisanalysedasfollows:

Group 2007 2006 RM’000 RM’000 Shareofnetassets 3,078 393 Goodwillonacquisition 217 217

3,295 610

TheshareofresultsofassociatesisbasedonunauditedmanagementaccountsforSimplexDesignSdnBhdandauditedfinancialstatementsforDragonSpringInvestment(Labuan)Limited.


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19. INVESTMENT IN ASSOCIATES (CONT’D)

Detailsoftheassociatesareasfollows:

Proportion of Ownership Interest/Proportion of Voting Power Country of Principal 2007 2006 Names of Associates Note Incorporation Activities % % +MexsDesign&Contracts (i) Malaysia Interiordecoration - 30 SdnBhd contractors +SimplexDesignSdnBhd Malaysia Interiordesigning, 47.5 47.5 renovation,construction andotherrelatedservices +DragonSpringInvestment (ii) Labuan Investmentholding 20.93 - (Labuan)Limited +AuditedbyfirmsofauditorsotherthanErnst&Young

(i) On26February2007,MinesInternationalExhibitionCentreSdnBhd,awholly-ownedsubsidiaryofEastVisionLeisureGroupSdnBhd,whichinturnisawholly-ownedsubsidiaryoftheCompany,disposedofitsentireequityinterestinanassociate,MexsDesign&ContractsSdnBhd(“MDCSB”)foratotalconsiderationofRM252,000.Asaresultofthedisposal,theGroupreportedalossofRM15,000.MDCSB’sprincipalactivityisthatofinteriordecorationcontractor.

(ii) Duringthefinancialyear,theGroupacquired900,000ordinaryshareofUSD1eachrepresenting20.93%equityinterestinDragonSpringInvestment(Labuan)LimitedattheendofthefinancialyearforacashconsiderationofUSD900,000whichisequivalenttoRM3,110,000asdisclosedinNote44(d)tothefinancialstatements.

ThefinancialstatementsoftheaboveassociatesarecoterminouswiththoseoftheGroup,exceptforSimplexDesignSdnBhdwhichhasafinancialyearendof30June.Forthepurposeofapplyingtheequitymethodofaccounting,thefinancial statementsof SimplexDesignSdnBhd for theyearended30 June2007havebeenusedandappropriateadjustmentshavebeenmadefortheeffectsofsignificanttransactionsbetween31December2007andthatdate.

Thesummarisedfinancialinformationoftheassociatesareasfollows:

Group 2007 2006 RM’000 RM’000 Assets and liabilities Currentassets 6,332 1,834 Non-currentassets 32,555 374 Totalassets 38,887 2,208

Currentliabilities 9,921 1,052 Non-currentliabilities 14,952 - Totalliabilities 24,873 1,052

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19. INVESTMENT IN ASSOCIATES (CONT’D)

Thesummarisedfinancialinformationoftheassociatesareasfollows:(Cont’d) Group 2007 2006 RM’000 RM’000 Results Revenue 6,611 5,911 Lossfortheyear (1,069) (470)

20. OTHER INVESTMENTS Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 At cost QuotedsharesinMalaysia 2,825 6,845 2,586 6,606 UnquotedsharesinMalaysia 2,000 2,000 - - Memberships 798 798 718 718 5,623 9,643 3,304 7,324

Less:Accumulatedimpairmentlosses QuotedsharesinMalaysia (127) (344) (123) (231) UnquotedsharesinMalaysia (2,000) (2,000) - - (2,127) (2,344) (123) (231) 3,496 7,299 3,181 7,093

MarketvalueofquotedsharesinMalaysia 2,901 6,499 2,666 6,375

21. GOODWILL ON CONSOLIDATION Group 2007 2006 RM’000 RM’000 Cost At1January 35,097 35,124 EffectofadoptingFRS3 - (27) At31December 35,097 35,097 Accumulated Amortisation At1January - 27 EffectofadoptingFRS3 - (27) At31December - - Accumulated Impairment Losses At1January/31December 35,097 35,097 Net Carrying Amount At1January/31December - -


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22. INVENTORIES Group 2007 2006 RM’000 RM’000 At cost Propertiesheldforsale 125,621 127,993 Consumablematerials 1,262 1,622 126,883 129,615

At net realisable value Propertiesheldforsale 32,057 34,007 Buildingmaterials 201 95 32,258 34,102

Total inventories 159,141 163,717

Includedininventoriesarecertainparcelsofland,withaggregatecarryingvaluesofRM42,130,000(2006:RM35,571,000),forwhichtheGroupisintheprocessofobtainingregistrationoflandtitlesfromtherelevantauthorities.

InventorieswithacarryingamountofRM28,064,000(2006:RM31,673,000)arepledgedassecuritiesforborrowingsasdisclosedinNotes27and29tothefinancialstatements.

Certaininfrastructureanddevelopmentworkiscarriedoutbyasubsidiarydisposedofduringtheyear,CountryHeightsParadeSdnBhd(“CHPSB”)pursuanttoajointventureagreementdated10June1994betweentheWalumEnterpriseSdnBhd(“WESB”)andCHPSB(“JointVenture”).TheinfrastructureanddevelopmentassetiscapitalisedinthefinancialstatementsofCHPSB.WESBisinthemidstofnegotiatingtheterminationofjointventurearrangementsandtoacquiretheinfrastructureanddevelopmentasset.Asatthedateofthisreport,theterminationagreementhasnotbeenfinalised.

23. TRADE AND OTHER RECEIVABLES Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Current Trade receivables (b) Thirdparties 100,545 93,988 - - Associates - 19 - - Duefromcompaniesinwhich certaindirectorshaveinterest (c) 2,800 1,227 - - 103,345 95,234 - - Less:Allowancefordoubtfuldebts Thirdparties (24,134) (25,434) - - Tradereceivables,net 79,211 69,800 - -

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23. TRADE AND OTHER RECEIVABLES (CONT’D) Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Restated Other receivables Duefromsubsidiaries (d) - - 590,550 574,993 Deposits (e) 10,079 4,183 12 12 Prepayments 7,550 1,445 - - Sundryreceivables (f) 14,339 19,946 1,322 6,806 Duefromcompaniesinwhichcertain directorshaveinterest (c) 3,967 2,804 443 319 35,935 28,378 592,327 582,130 Less:Allowancefordoubtfuldebts Duefromsubsidiaries - - (42,570) (43,707) Sundryreceivables (6,666) (8,199) (666) (2,033)

Otherreceivables,net 29,269 20,179 549,091 536,390 108,480 89,979 549,091 536,390 Non-current Trade receivables Thirdparties (g) 17,349 11,097 - -

(a) Creditrisk The Group’s normal trade credit terms range from 14 days to 90 days. Other credit terms are assessed and

approvedonacase-by-casebasis.

TheGrouphasnosignificantconcentrationofcreditriskthatmayarisefromexposurestoasingletradedebtorortogroupsoftradedebtors.

TheGroupandtheCompanyhavesignificantconcentrationofcreditriskthatmayarisefromexposurestosundryreceivablesasatyearendcomprising10%(2006:33%)andNil(2006:58%)respectively.

OtherinformationoncreditriskisdisclosedinNote41(e)tothefinancialstatements.

(b) Tradereceivables,current

Tradereceivablesarenon-interestbearing,except thoserelatingtotheinstallmentschemementionedinNote23(g)tothefinancialstatementswhichareduewithinoneyear.

(c) IncludedintradereceivablesoftheGroup,isanamountofRM220,000receivablefromadirector,Dato’OngChongSekarisingfromthedisposalofavacantbungalowlotbyMegaPalmSdnBhd,awholly-ownedsubsidiaryoftheCompanytothedirectorataconsiderationofRM901,000.Thedisposalproceedshavebeenpartiallysettledbycontraagainstthedirector’sremunerationamountingtoRM404,000andthebalanceofRM220,000ispayablebythedirector.

Theamountsduefromcompaniesinwhichcertaindirectorshaveinterestareunsecured,non-interestbearingandarerepayableondemand.


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23. TRADE AND OTHER RECEIVABLES (CONT’D)

(d) Theamountsduefromsubsidiariesarenon-tradeinnature,unsecured,non-interestbearing,andarerepayableondemandexceptforanamountofRM150,000,000(2006:RM150,000,000)duefromasubsidiary,GoldenHorsePalaceBerhad(previouslyknownasMinesCityHotelBerhad),relatingtoRM150million3%to8%RedeemableSecuredBonds1996/2009(“Bonds”)whichbearsinterestatarateof8%(2006:8%)andisrepayableinaccordancewiththeBondsrepaymenttermsasdisclosedinNote29tothefinancialstatements.

(e) Included indeposits is anon-refundabledeposit paidby a subsidiary, PRSHomes SdnBhdofRM5,600,000pursuanttotheacquisitionofland,furtherdisclosedinNote44(f)tothefinancialstatements.

(f) IncludedinsundryreceivablesoftheGroupandoftheCompanyinthepreviousfinancialyearwasabalanceofdeferredconsiderationofRM3,900,000,arisingfromthedisposalofaformersubsidiary,KnowledgeFarmSdnBhd.Thedeferredconsiderationwasfullysettledduringthecurrentfinancialyear.

(g) Longtermtradereceivablesrepresentamountsthatareexpectedtobecollectedaftertwelvemonthsfrombalancesheetdate,arisingfrominstallmentplansof12months to60monthsgrantedinrespectof timeshareprogrammembershipsandhealthprogrammembershipsissuedbysubsidiaries,CountryHeightsLifestyleBerhad,CountryHeights Health Tourism Sdn Bhd and Golden Horse Palace Berhad (previously known as Mines City HotelBerhad).

24. FUND HELD IN TRUST

Fundsheld in trustarosewhencertainsubsidiariesdisposedofpropertieswhichwerecharged to the trusteeof thebondholdersassecurityfortheRM150,000,0003%to8%RedeemableSecuredBonds1996/2009(“Bonds”)issuedbytheCompany,asdisclosedinNote29tothefinancialstatements.

Uponthedisposalofpledgedproperties,thesalesproceeds(“redemptionsum”)receivedfrompurchasersareretainedby the trusteeof thebondholderuntil theBondshavebeen redeemed, thepropertiesdischargedand thedisposedproperties’titlesarereleasedtothepurchasers.

25. CASH AND CASH EQUIVALENTS Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Depositswithlicensedbanks andotherfinancialinstitutions (a) 32,572 30,352 - - Cashonhandandatbanks (b) 16,538 10,572 535 75 Cashandbankbalances 49,110 40,924 535 75

(a) IncludedinthedepositswithlicensedbanksoftheGroupare:

(i) A sum of RM3,369,000 (2006: RM2,948,000) pledged for bank guarantee facilities granted to certainsubsidiaries;

(ii) AsumofRM9,450,000(2006:RM11,185,480)whichisrestrictedforuseinrefurbishmentofcertainassetsoftheGrouppursuanttotheborrowingarrangemententeredintobyEastVisionLeisureGroupSdnBhdasdisclosedinNote30tothefinancialstatements;

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25. CASH AND CASH EQUIVALENTS (CONT’D)

(a) IncludedinthedepositswithlicensedbanksoftheGroupare:(Cont’d)

(iii) Anamountheldunderatrustaccountpursuanttoatrustdeedinrelationtoatimesharemembershipschemeofasubsidiary,CountryHeightsLifestyleBerhadofRM491,000(2006:RMNil);and

(iv) Anamountheldonbehalfofmembersinrelationtoa“SilverHairProgramme”ofasubsidiary,CountryHeightsQualityLifeServicesSdnBhdofRM125,000(2006:RM121,000).

(b) IncludedincashatbanksoftheGroupare:

(i) SinkingfundsofRM336,000(2006:RM236,000)maintainedbycertainsubsidiariesforthepurposeofrepairandmaintenanceofproperties.

(ii) AmountsofRM20,000(2006:RM27,000)heldpursuanttoSection7AoftheHousingDevelopment(ControlandLicensing)Act1966andarethereforerestrictedfromuseinotheroperations.

(iii) Anamountheldunderatrustaccountpursuanttoatrustdeedinrelationtoatimesharemembershipschemeofasubsidiary,CountryHeightsLifestyleBerhadofRM101,000(2006:RM151,000).

(iv) An amount of RM8,317,000 (2006: RM3,998,000) is pledged as security for the purpose of the BankGuaranteed Commercial Papers and Bank Guaranteed Medium Term Note issued as disclosed in theNote31tothefinancialstatements. IncludedinthepledgedamountisRM5,738,000(2006:RM84,000)whichrepresenttheamountdepositedintheredemptionaccountestablishedundertheTrustDeedforthesolepurposeof redemptionof theBankGuaranteedCommercialPapersandBankGuaranteedMediumTermNoteissuedasdisclosedinNote31tothefinancialstatementsandpaymentoffinancecostofBankGuaranteedMediumTermNote.

(v) AnamountofRM155,000(2006:RM302,000)ismaintainedinthedesignatedaccountforthepurposeofoperationsofEastVisionLeisureGroupSdnBhd.

Forthepurposeofthecashflowstatements,cashandcashequivalentscomprisethefollowingasatthebalancesheetdate:

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000

Cashandbankbalances 49,110 40,924 535 75 Bankoverdrafts 27(a) (3,995) (5,770) - - Totalcashandcashequivalents 45,115 35,154 535 75

Theweightedaverageeffectiveinterestratesatthebalancesheetdatefordepositsareasfollows:

Group Company 2007 2006 2007 2006 % % % % Licensedbanksandotherfinancialinstitutions 3.1 3.0 - -


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25. CASH AND CASH EQUIVALENTS (CONT’D)

Theaveragematuritiesofdepositsasattheendofthefinancialyearareasfollows:

Group Company 2007 2006 2007 2006 Days Days Days Days Licensedbanks 365 365 - -

26. NON-CURRENT ASSET CLASSIFIED AS HELD FOR SALE Group 2007 2006 Note RM’000 RM’000 Buildingreclassifiedfrominvestmentproperties 15 873 -

ThebuildingreferstotheVeniceWalkBuilding,furtherdisclosedinNote44(a)tothefinancialstatements.

27. BORROWINGS

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Short Term Borrowings Secured: Bankoverdrafts (a) 944 1,620 - - Termloans (b) 287 290 - - Workingcapitalloan (c) - 2,740 - - Revolvingcredits (d) 3,600 2,900 - - 4,831 7,550 - -

Unsecured: Bankoverdrafts (a) 3,051 4,150 - - Revolvingcredits (d) 19,600 18,800 - - Hirepurchaseandfinance leasepayables 28 470 384 - - 23,121 23,334 - - 27,952 30,884 - -

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27. BORROWINGS (CONT’D) Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Long Term Borrowings Secured: Termloans (b) 3,003 3,288 - - Revolvingcredits (d) 6,090 9,690 - - RM150million3%to8%Redeemable SecuredBonds1996/2009(“Bonds”) 29 150,000 150,000 150,000 150,000 RedeemableConvertibleSecuredLoan Stock2004/2011(“RCSLSSeriesA”) 30 - 420,000 - - RedeemableSecuredLoanStock 2004/2011(“RSLSSeriesB”) 30 68,822 68,822 - - BankGuaranteedCommercialPaper 31 59,414 60,770 - - BankGuaranteedMedium TermNotes 31 70,000 70,000 - - 357,329 782,570 150,000 150,000 Unsecured: Revolvingcredits (d) 17,600 22,400 - - Hirepurchaseandfinance leasepayables 28 1,363 1,227 - - 18,963 23,627 - - 376,292 806,197 150,000 150,000 Total Borrowings Bankoverdrafts (a) 3,995 5,770 - - Termloans (b) 3,290 3,578 - - Workingcapitalloan (c) - 2,740 - - Revolvingcredits (d) 46,890 53,790 - - Hirepurchaseandfinance leasepayables 28 1,833 1,611 - - Bonds 29 150,000 150,000 150,000 150,000 RCSLSSeriesA 30 - 420,000 - - RSLSSeriesB 30 68,822 68,822 - - BankGuaranteedCommercialPaper 31 59,414 60,770 - - BankGuaranteedMediumTermNotes 31 70,000 70,000 - - 404,244 837,081 150,000 150,000 Maturityofborrowings (excludinghirepurchase andfinancelease): Withinoneyear 27,482 30,500 - - Morethan1yearandlessthan2years 186,432 136,452 150,000 - Morethan2yearsandlessthan5years 48,157 226,629 - 150,000 5yearsormore 140,340 441,889 - - 402,411 835,470 150,000 150,000


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27. BORROWINGS (CONT’D)

Theweightedaverageeffective interest ratesat thebalancesheetdate forborrowings,excludinghirepurchaseandfinanceleasepayables,areasfollows:

Group Company 2007 2006 2007 2006 Note % % % %

Bankoverdrafts (a) 8.9 8.5 - - Termloans (b) 6.8 6.8 - - Workingcapitalloan (c) - 7.8 - - Revolvingcredits (d) 7.2 7.0 - - Bonds 29 8.0 8.0 8.0 8.0 RCSLSSeriesA 30 - 6.0 - - RSLSSeriesB 30 5.0 5.0 - - BankGuaranteedCommercialPaper 31 4.1 5.4 - - BankGuaranteedMediumTermNotes 31 6.1 5.4 - -

(a) Bankoverdrafts: Group 2007 2006 Note RM’000 RM’000 Shortterm Secured: RM3,000,000facility (i) 606 1,356 SouthAfricaRand750,000facility (ii) 338 264 944 1,620 Unsecured: RM15,000,000facility (iii) 3,051 4,150 Totalbankoverdrafts 3,995 5,770

Salientfeaturesofthebankoverdraftsgrantedtosubsidiariesareasfollow:

(i) OverdraftfacilityofRM3,000,000(2006:RM5,000,000)grantedtoCountryHeightsW.T.C.SdnBhd

- Alien-holder’scaveatoverotherproperty,plantandequipmentwithacarryingvalueofRM6,674,000(2006:RM6,757,000)heldbyCountryHeightsW.T.C.SdnBhd;

- Alien-holder’scaveatoverprepaidlandleasepaymentswithacarryingvalueofRM4,032,000(2006:RM4,082,000)heldbyCountryHeightsW.T.C.SdnBhd;

- DepositoftitleheldunderH.S.(D)22918,P.T.No.14913,MukimofKajang,SelangorDarulEhsan;and

- AcorporateguaranteeofRM5,000,000providedbytheCompany.

Theoverdraftfacilitybearsinterestat1.75%(2006:1.75%)abovethebank’sbaselendingrate.

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27. BORROWINGS (CONT’D) (a) Bankoverdrafts:(Cont’d)

(ii) SouthAfricaRand750,000facilitygrantedtoCountryHeightsPecanwoodGolf&CountryClub(Pty)Ltd(“PGCC”)

- First continuous covering mortgage bond over the land and building erected on Erf 876, 877Extension12andErf1083Extension10(previouslyportions127and128ofportion123ofthefarmHarbeespoort,No.482RegistrationDivisionJ.Q.,ProvinceofNorthWest,SouthAfrica,knownastheCountryHeightsPecanwoodGolfandCountryClub),withacarryingvalueofRM15,671,000(2006:RM16,136,000)heldbyPGCCincludedinotherproperty,plantandequipmentasdisclosedinNote14tothefinancialstatements.

Theoverdraftfacilitybearsinterestat14.5%(2006:10.5%)perannum.

(iii) UnsecuredfacilityofRM15,000,000grantedtoCountryHeightsSdnBhd

- NegativepledgeovertheassetsofCountryHeightsSdnBhd,exceptforcertainbungalowlotsadjacenttotheexistingdevelopmentundertakenbytheGroupinKajang;and

- CorporateguaranteeandindemnityofuptoRM15,000,000providedbytheCompany.

Theoverdraftfacilitybearsinterestat2.5%(2006:2.5%)perannumabovebank’sbaselendingrate.

(b) Termloans: Group 2007 2006 Note RM’000 RM’000 Shortterm Secured: RM647,000facility (i) 130 141 RM3,340,000facility (ii) 157 149 287 290 Longterm Secured: RM647,000facility (i) - 128 RM3,340,000facility (ii) 3,003 3,160 3,003 3,288

Totaltermloan 3,290 3,578


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27. BORROWINGS (CONT’D) (b) Termloans:(Cont’d)

Salientfeaturesofthetermloansgrantedtosubsidiariesareasfollows:-

(i) TermloanfacilityofRM647,000grantedtoCountryHeightsLifestyleBerhad

- 1st registeredmortgageoverparcelnos.223,224,219and220,EquatorialHillsResort,CameronHighlandsincludedintheotherproperty,plantandequipmentasdisclosedinNote14tothefinancialstatementswithanaggregatenetbookvalueofRM461,000(2006:RM478,000);and

- AcorporateguaranteeofRM650,000providedbytheCompany.

PrincipalandinterestarerepayablebyfiftynineequalmonthlyinstallmentsofRM13,000eachandonefinalinstallmentofRM10,500commencingfrom29November,2003until29October,2008.

Thetermloanfacilitybearsinterestat1.25%(2006:1.5%)abovethebank’sbaselendingrate.

(ii) TermloanfacilityofRM3,340,000grantedtoasubsidiary,CountryHeightsHealthTourismSdnBhd

- AfirstlegalchargeovercertainunitssituatedatLevel3ofBlockCofthebuildingknownasPlazaMont’Kiaraincludedinotherproperty,plantandequipmentasdisclosedinNote14tothefinancialstatementswithanaggregatenetbookvalueofRM4,009,000(2006:RM4,093,000);and


PrincipalandinterestarerepayablebysixtyequalmonthlyinstallmentsofRM27,291eachfromyearonetoyearfivecommencingfrom26October2006andsubsequently120equalmonthlyinstallmentofRM29,251eachfromyearsixonwardsuntil26October2011.

Thetermloanfacilitybearsinterestat5.5%(2006:5.5%)perannumforthefirstfiveyearsandthereafterat0.5%(2006:0.5%)perannumabovethebank’sbaselendingrate.

(c) Shorttermsecuredworkingcapitalloanfacilitygrantedtoasubsidiary Theworkingcapital loan facilitywasgranted toasubsidiary,TindakMurniSdnBhdbyMalaysianAssurance

AllianceBerhad(“MAA”)forthepurposeofpaymentonbehalfforitsrelatedcompany,MegaPalmSdnBhd,ontheoutstandingCountryHeightsInnovationinPropertyInvestment(“CHIPI”)schemepremiumtoMAA.

Theworkingcapitalloanfacilitywassecuredasfollows:

- A deed of debenture over certain unsold units of completed luxury apartments of Cyber Heights VillaincludedintheinventoryasdisclosedinNote22tothefinancialstatementswithanaggregatenetbookvalueofRMNil(2006:RM20,222,000);

- Safekeepingofthelandtitlesoftheaforementionedlandstogetherwiththechargedocumentsexecutedandthelenderisatthelibertytochargethelandsintheeventofdefault;and

- Assignmentofsalesproceedsfromthesalesofthesaidpropertytobeappliedtowardsredemptionoftheunits.

Theworkingcapitalfacilityboreinterestat9%(2006:9%)perannumandtheeffectiveinterestratewas7.75%(2006:7.75%)ifincompliancewithalltermsofagreements.

Theworkingcapitalloanwasfullysettledduringtheyearandtheabovechargeshavebeenlifted.

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(d) Revolvingcredits: Group 2007 2006 Note RM’000 RM’000 Shortterm Secured: RM32,000,000(restructured)facility (i) 3,600 2,900 3,600 2,900 Unsecured: RM15,000,000facility (ii) 14,800 14,800 RM30,000,000(restructured)facility (iii) 4,800 4,000 19,600 18,800 23,200 21,700 Longterm Secured: RM32,000,000(restructured)facility (i) 6,090 9,690 Unsecured: RM30,000,000(restructured)facility (iii) 17,600 22,400 23,690 32,090 Totalrevolvingcredits 46,890 53,790

Revolvingcreditfacilitiesaresecuredasfollows:

(i) Revolvingcredit(restructured)facilityofRM32,000,000grantedtoasubsidiary,CountryHeightsIndustriesSdnBhd(“CHISB”)

- AcorporateguaranteeofRM32,000,000providedbytheCompany;

- Athirdpartyfirstlegalchargeover100(2006:101)piecesoflandandbuildingheldbyCHISBwithcarryingvaluesasfollows:

Group 2007 2006 RM’000 RM’000 Landheldforpropertydevelopment 4,911 4,911 Inventories 5,129 5,286

10,040 10,197


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(d) Revolvingcredits:(Cont’d)

(i) Revolvingcredit(restructured)facilityofRM32,000,000grantedtoasubsidiary,CountryHeightsIndustriesSdnBhd(“CHISB”)(Cont’d)

- Afirstlegalchargeover2(2006:3)industriallotsattheCollegeValleyIndustrialPark,Pajam,heldby a subsidiary, Country Heights Industries Sdn Bhd, with a carrying value of RM469,000 (2006:RM652,000);

- Adebentureovercertainbungalowlotsbelongingtoasubsidiary,WalumEnterpriseSdnBhdwithacarryingvalueofRM1,054,000(2006:RM1,054,000);

- Athirdpartyfirstfixedlegalchargeovercertainbungalowlotsheldbyasubsidiarycompany,WalumEnterpriseSdnBhdwithacarryingvalueofRM779,000(2006:RM779,000);and

- A second fixed legal charge over certain bungalow lots held by a subsidiary company, WalumEnterpriseSdnBhdwithacarryingvalueofRM4,528,000(2006:RM4,528,000).

Theloanisrepayableby24equalmonthlyinstallmentsofRM200,000eachwiththefirstinstallmentpayableon30August2005,andthereafter23monthlyinstallmentsofRM300,000eachwiththefirstinstallmenttocommenceon30August2007andafinalinstallmentpaymentofRM4,756,000tobepaidinonelumpsumon30July2009.

Therevolvingcreditfacilitybearsinterestat2.5%(2006:2.5%)perannumaboveCostofFund.

(ii) TheunsecuredrevolvingcreditfacilityofRM15,000,000grantedtoasubsidiary,CountryHeightsSdnBhdhasthefollowingguaranteesandpledges:

- NegativepledgeovertheassetsofCountryHeightsSdnBhd,exceptforcertainbungalowlotsadjacenttotheexistingdevelopmentundertakenbytheGroupinKajang;and



Theshorttermrevolvingcreditisrepayableondemand.

(iii) Theunsecuredrevolvingcredit(restructured)facilityofRM30,000,000grantedtoCountryHeightsSdnBhdhasthefollowingguaranteesandpledges:

- AcorporateguaranteeandindemnityofRM30,000,000providedbytheCompany.


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28. HIRE PURCHASE AND FINANCE LEASE PAYABLES Group 2007 2006 Note RM’000 RM’000 Minimum lease payments: Notlaterthan1year 610 470 Laterthan1yearbutnotlaterthan2years 574 502 Laterthan2yearsbutnotlaterthan5years 802 830 Laterthan5years 38 3 2,024 1,805 Less:Futurefinancecharges (191) (194)

Presentvalueoffinanceleaseliabilities 1,833 1,611 Present value of finance lease liabilities: Notlaterthan1year 470 384 Laterthan1yearbutnotlaterthan2years 519 433 Laterthan2yearsbutnotlaterthan5years 703 791 Laterthan5years 141 3 1,833 1,611 Analysed as: Duewithin12months 27 470 384 Dueafter12months 27 1,363 1,227 1,833 1,611 Thehirepurchaseandleaseliabilitiesboreinterestatthebalancesheetdateatratesbetween2.6%to10%(2006:2.6%

to10%)perannum.

29. RM150 MILLION 3% TO 8% REDEEMABLE SECURED BONDS 1996/2009 (“BONDS”) REDESIGNATED FROM RM200 MILLION 3% TO 8% REDEEMABLE SECURED BONDS 1996/2005

AtaBondholders’meetingheldon29December2004,theholdersoftheBondshadapprovedtheextensionoftheredemptionoftheoutstandingRM150millionoftheBondspreviouslyissuedbytheCompanyasRM200million3%to8%RedeemableSecuredBonds1996/2005to31December2009.

ThesalienttermsandfeaturesoftheBondsrevisedpursuanttotheextensionareasfollows:

(i) Theinterestratewillcontinuetobe8%perannum,calculatedontheoutstandingbalanceandispayablesemi-annually.Fortheperiodfrom9November2004to6November2008,only6%ofthe8%interestperannumshallbemadesemi-annuallyintwoequalinstalmentson6Mayand6Novembereachyear.The2%interestperannumshortfallsince1January2002onwardsshallcontinuetobeaccruedandpaidinthefinalyearin2equalinstalmentsi.e.on6May2009and6November2009providedalwaysthatiftheBondsarefullyredeemedbefore6November2009anyunpaidinterestshallbepaidinfullbytheCompanyonthedateofsuchredemption.


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29. RM150 MILLION 3% TO 8% REDEEMABLE SECURED BONDS 1996/2009 (“BONDS”) REDESIGNATED FROM RM200 MILLION 3% TO 8% REDEEMABLE SECURED BONDS 1996/2005 (CONT’D)

ThesalienttermsandfeaturesoftheBondsrevisedpursuanttotheextensionareasfollows:(Cont’d)

(ii) ThematuritydatefortheredemptionoftheBondsisextendedto31December2009.

(iii) TheBondswillcontinuetobesecuredbytheexistingsecuritiesasfollows:

- Afixedchargeoveraleaseholdlandandhotelbuildingheldbyasubsidiary,GoldenHorsePalaceBerhad(previouslyknownasMinesCityHotelBerhad)knownasthePalaceoftheGoldenHorses,classifiedunderhotelpropertiesandexhibitioncentre&showroomandprepaidlandleasepaymentswithaggregatecarryingvalueofRM404,656,000(2006:RM408,315,000);

- Certain other property, plant and equipment with an aggregate carrying value of RM5,702,000 (2006:RM10,039,000),heldbyasubsidiary,GoldenHorsePalaceBerhad(previouslyknownasMinesCityHotelBerhad);

- Certainfreeholdlandandbuildingsincludedinotherproperty,plantandequipmentwithaggregatecarryingvalueofRM3,771,000(2006:RM1,635,000)heldbyasubsidiary,CountryHeightsDevelopmentSdnBhd;

- CertaininvestmentpropertieswithaggregatecarryingvalueofRM13,235,000(2006:RM17,586,000)held

byasubsidiary,CountryHeightsDevelopmentSdnBhd;

- Certain bungalow lots included in inventories with aggregate carrying value of RM668,000 (2006:RM668,000)heldbyasubsidiary,WalumEnterpriseSdnBhd;

- CertainvillasincludedininventorieswithacarryingvalueofRM15,437,000(2006:RM18,706,000)heldbyasubsidiary,CountryHeightsW.T.C.SdnBhd;and

- FundHeldinTrustasdisclosedinNote24tothefinancialstatements.

TheBondsarenotratedandnottransferableortradableonRENTAS.

Asat31December2007,TanSriLeeKimTiong@LeeKimYewistheonlybeneficialholderoftheBonds.

30. 420,000,000 REDEEMABLE CONVERTIBLE SECURED LOAN STOCK 2004/2011 (“RCSLS SERIES A”) AND 68,821,674 REDEEMABLE SECURED LOAN STOCK 2004/2011 (“RSLS SERIES B”)

TheCompanyandasubsidiary,EastVisionLeisureGroupSdnBhd(“EVL”)enteredintoaMasterAgreementandaSupplementalMasterAgreementon16December2003and21May2004respectively,withKhazanahNasionalBerhad(‘’KNB’’)toregulatetheirrelationshipsandundertakingsinrespectoftheinvestmentinEVL.

PursuanttotheMasterAgreementandSupplementalMasterAgreement,EVLwillbetheinvestmentvehicletofacilitatetheInvestmentinEVL,whichincludetheacquisitionofcertainsubsidiarieswithintheGroup.

On20December2004,EVLcompletedtheacquisitionsoftheentireissuedandpaidupsharecapitalofMinesShoppingFairSdnBhd(“MSFSB”),MinesWaterfrontBusinessParkSdnBhd(“MWBPSB”)andMinesInternationalExhibitionCentreSdnBhd(“MIECSB”)(“TargetCompanies”)basedontheadjustednettangibleassetsasat31October2003,aftertakingintoconsiderationfairvaluesofthoseTargetCompanies’respectiveassets,namely,MinesShoppingFair(“MSF”),MinesWaterfrontBusinessPark(“MWBP”)andMalaysiaInternationalExhibition&ConventionCentre(“MIEC”)(“IdentifiedAssets”).

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30. 420,000,000 REDEEMABLE CONVERTIBLE SECURED LOAN STOCK 2004/2011 (“RCSLS SERIES A”) AND 68,821,674 REDEEMABLE SECURED LOAN STOCK 2004/2011 (“RSLS SERIES B”) (CONT’D)

On 20 December 2004, EVL issued the following to KNB and AmInvestment Bank Berhad (previously known asAmMerchantBankBerhad)(“AmInvestment”),AmFinanceBerhad,AmBankBerhad,RHBBankBerhad(“RHB”)andCIMBBankBerhad(“CIMB”)(“Lenders”)asconsiderationforacashinjectionbyKNBinEVLamountingtoRM125,000,000andaninvestmentbytheLendersofRM295,000,000inEVL(collectivelyreferredtoasthe“Investment”)pursuanttoaSettlementAgreementdated14May2004andaSupplementalSettlementAgreementdated17May2004(collectivelyreferredtoasthe“SettlementAgreements”):

(i) RM420,000,000nominalvalue7-year6%RedeemableConvertibleSecuredLoanStockswithanominalvalueofRM1each(“RCSLSSeriesA”)toKNB;

(ii) RM68,821,674nominalvalue7-year5%RedeemableSecuredLoanStockswithanominalvalueofRM1each(“RSLSSeriesB”)totheLenders;and

(iii) OnegoldensharetoKNB(“GoldenShare”)pursuanttotheMasterAgreementdated16December2003andtheSupplementalMasterAgreementdated21May2004.

(A) RCSLS Series A

TheCompanyhasfullyredeemedtheRCSLSSeriesAofRM420,000,000on19December2007fouryearspriortotheRCSLSSeriesAredemptiondateon20December2011,fromproceedsondisposalofMinesShoppingFairasdisclosedinNote44(a)tothefinancialstatements.

ThesalienttermsandfeaturesoftheRCSLSSeriesAwereasfollows:

(i) TenorandRateofInterest RCSLSSeriesAhadatenorof7yearsandboresimpleinterestatarateof6%perannumpayableannually

andinarrears.

(ii) Security TheRCSLSSeriesAweresecuredasfollows:

(a) firstlegalchargesovertheIdentifiedAssets,TheMinesShoppingFair,TheMinesWaterfrontBusinessParkandMalaysiaInternationalExhibition&ConventionCentre,asdisclosedinNotes13,15and16tothefinancialstatements;

(b) first legal charges over all the issued and paid up share capital of the Target Companies, MinesShoppingFairSdnBhd,MinesWaterfrontBusinessParkSdnBhdandMinesInternationalExhibitionCentreSdnBhd(“SecurityShares”)asdisclosedinNote18tothefinancialstatementsandshallincludeall dividends, distributions, allotments, interest, rights, offers, entitlements, accretions and benefitswhatsoeverwhichmayatanytimeaccrue,ariseorbeoffered(whetherbywayofbonus,conversionrights,redemption,preference,optionorotherwise);


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(A) RCSLS Series A (Cont’d)

(ii) Security(Cont’d)

(c) allcashflowfromtheIdentifiedAssetswillbeplacedinanddisbursedfromdesignatedaccountstobemaintainedbyEVLandtheTargetCompaniesandsubsidiariesoftheTargetCompanies(“DesignatedAccounts”)asdisclosedinNote25(a)(ii) tothefinancialstatements.50%ofthesurplusannualnetcashflowfromtheIdentifiedAssetsissetasideinasinkingfundestablishedbyEVL,whichwillbeapplied/utilisedtowardstheredemptionoftheRCSLSSeriesA.

BalancesintheDesignatedAccountandSinkingFundaresecuredoverfirstpartyfirstlegalchargestoandinfavourofthetrusteeforthebenefitsoftheRCSLSSeriesAholders;and

(d) a written irrevocable undertaking from the Company to the RCSLS Series A holder to secure thepaymentofinterestonRCSLSSeriesA(“CHHB’sIrrevocableLetterofUndertaking”).

FollowingtheredemptionofRCSLSSeriesA,theabovesecuritieshavebeendischarged.

(iii) RedemptionSum

TheredemptionsumforalloftheIdentifiedAssetsor,asthecasemaybe,theSecuritySharesshallcompriseRM420,000,000togetherwithallunpaidaccruedinterestthereonandallothersumspayableinrespectoftheRCSLSSeriesA,reducedbyanyprepaymentsorpartialpaymentsmade(the“RCSLSSeriesARedemptionSum”).

(iv) Redemption TheRCSLSSeriesAshallberedeemedinwholeonitsmaturitydate.

At theoptionofEVL,EVLmayatanytimeprior to thematuritydateof theRCSLSSeriesA,redeemtheRCSLSSeriesA inwholeor inpartprovided thatanysuchpartial redemptionshallnotbe for less thanRM10,000,000nominalvalueoftheRCSLSSeriesA.

IntheeventthatEVLfails toredeemtheRCSLSSeriesAuponorpriortomaturityandtheRCSLSSeriesAholdersareunabletoprocureapurchaserforalloftheIdentifiedAssets/SecurityShares,foratleasttheRCSLSSeriesARedemptionSum,theRCSLSSeriesAholdersmayunanimouslyagreetoextendthetenureoftheRCSLSSeriesAforsuchadditionalperiodasmaybeunanimouslyagreedtobytheRCSLSSeriesAholders.InwhicheventKNBshallrequiretheCompanytotransferallitssharesinEVLtoKNBandtheotherRCSLSSeriesAholders.

(v) ApportionmentofSaleProceeds

(a) Subjectto(vi),thenetgains(afterdeductionofcostsandexpensesandrealpropertygaintax(ifany)),onthedisposaloftheIdentifiedAssetsor,asthecasemaybe,theSecurityShares,inexcessoftheRCSLSSeriesA2004/2011RedemptionSumandbelowRM655,000,000will,subjecttothepaymentofallinterestandothersumspayableinrespectofRCSLSSeriesA2004/2011andafteraccountingfortheredemptionofRSLSSeriesB2004/2011andtheaccretionofinterestattherateof5%,belongtoEVL.

(b) AnygainondisposaloftheIdentifiedAssetsaboveRM655,000,000shallbesharedequallybetweentheCompany,KNBandtheotherRCSLSSeriesAholders.

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(A) RCSLS Series A (Cont’d)

(vi) ConversionofRCSLSSeriesAIntoShares

Following the redemption of RCSLS Series A, conversion rights over RCSLS Series A is no longerapplicable.

(B) RSLS Series B

ThesalienttermsandfeaturesoftheRSLSSeriesBareasfollows:

(i) RedemptiontenorandRateofInterest TheRSLSSeriesBshallhaveatenorof7years.

IntheeventofthefullredemptionofRCSLSSeriesAwithoutanyoralloftheIdentifiedAssetsbeingsold,theRSLSSeriesBshallnotbecancelledorconvertedintoordinarysharesofRM1inEVLbutshallberedeemedonorbeforethematuritydatethereoffromoutoftheproceedsofsaleoftheremainingIdentifiedAssets.

IntheeventofadisposaloftheIdentifiedAssets/SecurityShares,theredemptionofRSLSSeriesBissubjecttothefullredemptionofRCSLSSeriesAandafterpaymentinfulloftheRSLSSeriesB,theholdersofRSLSSeriesBshallbeentitledtobepaidinterestonRSLSSeriesB.However,thisinterestispayableonlyinthecircumstancesmentionedintheforegoingparagraph.

TheRSLSSeriesBshallhavea tenorof7years.Subject to theprovisionsof the trustdeedandrelevantagreements,theRSLSSeriesBshallbeentitledtobepaidabackendinterestattherateof5%perannum(simpleinterest).However,thisinterestispayableonlyintheeventtheRCSLSSeriesAisfullyredeemedandallinterest(includinganydefaultinterest)thereonfullypaidand:-

(a) thereisanexcessfromtheproceedsofsalesoftheIdentifiedAssetsor,asthecasemaybe,theSecurityShares,afterthefullredemptionofRCSLSSeriesAandafterpayinginfulltheredemptionsumoftheRSLSSeriesB;or

(b) RCSLSSeriesA is fully redeemedwithout anyor all of the IdentifiedAssets/Security SharesbeingdisposedoffandthedisposalpriceoftheIdentifiedAssets/SecuritySharesremainingunsoldafterthefullredemptionofRCSLSSeriesA,exceedstheRSLSSeriesBredemptionsum;or

(c) thereareanyoftheIdentifiedAssets/SecuritySharesremainingunsoldaftertheredemptioninfullofRCSLSSeriesAandthepaymentinfulloftheRSLSSeriesBredemptionsum.

AsdisclosedinNote34(d)tothefinancialstatements,thebackendRSLSSeriesBinterestonRSLSSeriesBupto31December2007hasbeenaccrued.

(ii) Security TheRSLSSeriesBshallbesecuredbywayof:

(a) second legal chargeon twoof the IdentifiedAssets knownasMalaysia International Exhibition&ConventionCentreandMinesWaterfrontBusinessPark;and

(b) secondlegalchargesontheSecurityShares.


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(B) RSLS Series B (Cont’d)

(iii) ConversionofRSLSSeriesB

IntheeventEVLfailstoredeemtheRCSLSSeriesAinfullonorbeforeitsmaturityandtheRCSLSSeriesAholders,beingunabletoprocurethesaleoftheIdentifiedAssets/SecuritySharesforatleasttheRCSLSSeriesAredemptionsum:

(a) KNBprocuresthetransferbytheCompanytotheRCSLSSeriesAholdersofallthesharesinEVL;andor

(b) KNBandoranyoftheotherRCSLSSeriesAholdersconvertsitsRCSLSSeriesAintoordinarysharesinEVL;andor

(c) theRSCLSSeriesAholdersunanimouslyagreetoextendthetenureoftheRCSLSSeriesA.

EVLshallthereafterwithin14businessdays,bynoticeinwritingtotheRSLSSeriesBholders,convertalltheRSLSSeriesBofeachRSLSSeriesBholdersintooneordinaryshareofRM1inEVL.

IntheeventthatalltheIdentifiedAssets/SecuritySharesaresoldatavalueoflessthantheRCSLSSeriesAredemptionsum,allofeachRSLSSeriesBshallbeconvertedintooneordinaryshareofRM1inEVLandshallbedeemedfullysettled.

In the event the disposal price of all the Identified Assets /Security Shares exceeds the RCSLS Series Aredemptionsum,theamountinexcesswillbeutilisedtopayofftheequivalentamountoftheRSLSSeriesBproportionatelyandtheremainingbalanceofeachRSLSSeriesBshallbeconvertedintoone(1)ordinaryshareofRM1inEVLandshallbedeemedfullysettled.

EachRSLSSeriesBholdershall,uponbeingrequestedto,sellitsshareinEVLarisingfromtheconversionoftheRSLSSeriesBtoKNB,or,iftheRCSLSSeriesAhasbeenfullyredeemedorconvertedintoordinarysharesofEVLtoCHHB,foranominalconsiderationofRM1.

Golden Share

On20December2004,EastVisionLeisureGroupSdnBhd(“EVL”)issuedOnegoldenshareintheformofredeemablepreferenceshare(“GoldenShare”)toKhazanahNasionalBerhad(“KNB”)pursuanttotheMasterAgreementdated16December2003andSupplementalMasterAgreementdated21May2004,bothofwhichwereenteredintobytheEVL,KNBandtheCompany.

FollowingtheredemptionofRCSLSSeriesA,theGoldenShareissuedbyEVLhasbeencancelledon11January2008.

PursuanttotherightsconferredontheGoldenShare,theaffirmativevoteofKNBingeneralmeetingsisrequiredforcertainmattersinrelationtoEVLincluding:

(a) cessation toconductorcarryon itsbusiness substantiallyasnowconductedand/oracquireany subsidiaries,associatedcompaniesand/oranyotherbusiness,company,partnershiporsoleproprietorship;

(b) making any distribution of profits amongst the shareholders by way of dividend, capitalisation of reserves orotherwise;and

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Golden Share (Cont’d)

PursuanttotherightsconferredontheGoldenShare,theaffirmativevoteofKNBingeneralmeetingsisrequiredforcertainmattersinrelationtoEVLincluding:(Cont’d)

(c) issuingortransferringanyshares,preferenceorotherwiseoranyloanstocksoranyothersecurities.

TheGoldenShareshall:

(a) notbetransferablewithoutpriorwrittenconsentofEVL;

(b) beredeemablebyEVLatparupontheRCSLSSeriesAbeingfullyredeemed;and

(c) notbeentitledtoanydividendofEVL.

31. BANK GUARANTEED COMMERCIAL PAPER & BANK GUARANTEED MEDIUM TERM NOTES

TheBankGuaranteedCommercialPaper(“CP”)andBankGuaranteedMediumTermNotes(“MTN”)areconstitutedbyaTrustDeeddated2May2006madebyasubsidiaryoftheCompany,MegaPalmSdnBhdandtheTrusteeforthenotesholdersoftheCPandMTN.Allnotesshallberedeemedinfullatfaceamountonthematuritydate.TheCPisofatenureofnotmorethan12monthsuptoasublimitofRM80,000,000innominalvalue.CPredeemedshallbecancelledbutshallbeavailableforre-issuesubjecttotermsstipulatedintheProgrammeandUnderwritingAgreementdated2May2006.MTNisofatenureofmorethan1yearbutnotexceeding7yearsuptoasublimitofRM70,000,000innominalvalue.MTNredeemedshallbecancelledandnotavailableforreissuance.

TheCPandMTNaresecuredbythefollowing:

(a) Unconditionaland irrevocablebankguarantee issuedbyMalayanBankingBerhad (“Guarantor”) toguaranteerepaymentoftheborrowings;

(b) FirstfixedchargeoverthemastertitleknownasGeran37112,Lot826,MukimBatubeingtheCountryHeightsDamansaraprojectlandundertheNationalLandCodewhichshallexcludetheunitssoldinthesaidland;

(c) CorporateguaranteefromtheCompany;

(d) First legalchargeandassignmentoverallDesignatedAccounts for theProject (i.e.ProceedsAccount,ProjectAccountandRedemptionAccount)andtheproceedstherein;

(e) Assignment of insurance proceeds and/or endorsement of the security agent as loss payee over all insuranceproceedsattributabletotheIssuerinrelationtotheProject;

(f) Assignmentof all the Issuer’s rights title andbenefit inand to thecreditbalanceandallmonies in theHDAaccounts;

(g) LandheldforpropertydevelopmentandpropertydevelopmentcostwithacarryingamountofRM69,010,000(2006:RM83,072,000)andRM49,357,000(2006:RM37,521,000)respectively;and


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31. BANK GUARANTEED COMMERCIAL PAPER & BANK GUARANTEED MEDIUM TERM NOTES (CONT’D)

TheCPandMTNaresecuredbythefollowing:(Cont’d)

(h) AnyothersecuritytobeadvisedbytheGuarantorand/oritslegalcounselandagreedbytheIssuer.

ThetermsofCPandMTNarrangementscontainvariouscovenants,includingthefollowing:(i) theIssuermustmaintainaDebtofEquityRatioofnotmorethan2.5timesatalltimes;and(ii) theIssuermustmaintainaDebtServiceCoverRatioofnotlessthan1.2timesatalltimes.Theinterestratesatthebalancesheetdatefortheborrowingsrangesasfollows:

2007 2006 % % BankGuaranteedCommercialPaper 3.90-4.10 4.20-5.10 BankGuaranteedMediumTermNotes 5.20-7.10 5.20-7.10

TheproceedsfromtheissueoftheMTNandCPareaccountedforinbalancesheetsoftheGroupasfollows:

Group 2007 2006 RM’000 RM’000

BankGuaranteedMediumTermNotesNominalvalue 70,000 70,000

BankGuaranteedCommercialPaperNominalvalue 60,000 62,000 Less:Unamortiseddiscount** (586) (1,230) 59,414 60,770

** Discountisrecognisedasinterestexpenseintheconsolidatedincomestatementoverthetenureoffinancing.

Asattheendofthefinancialyear,anaggregatefinancecostonCPofRM2,705,000(2006:RM1,672,000)hadbeenrecognisedtotheconsolidatedincomestatement,leavingaCPbalanceofRM59,414,000(2006:RM60,770,000)intheconsolidatedbalancesheet.ThefinancecostischargedonBankGuaranteedCommercialPaperbasedonapplicablemarketrates.

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32. LONG TERM LIABILITIES AND DEFERRED INCOME

Group 2007 2006 Note RM’000 RM’000 Unsecured: Golfmembershiploans (a) 5,073 5,099 Deferredincome (b) 27,734 24,749

32,807 29,848

(a) These loansaregranted toasubsidiarybymembersofagolfcluboperatedby that subsidiary.The loansare

unsecured,interestfreeandrepayableattheearlierof25yearsfromregistrationasmemberoruponmembers’resignationfromthegolfandcountryclub.

(b) Thisrepresentsthedeferredincomeportionofmembershipfeesofatimeshareschemeoperatedbyasubsidiary,recognisedoverthemembershipperiodofthescheme.

33. DEFERRED TAX Group 2007 2006 Note RM’000 RM’000 At1January 106,459 13,732 EffectofadoptingFRS140 - 20,342 Recognisedintheincomestatement 9 (25,796) 483 Transfer(to)/fromrevaluationreserve (2,179) 45,762 Transferfromretainedearnings 703 26,026 Exchangedifferences 29 114 At31December 79,216 106,459 Presentedafterappropriateoffsettingasfollows: Deferredtaxassets (13,486) (25,600) Deferredtaxliabilities 92,702 132,059 79,216 106,459


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33. DEFERRED TAX (CONT’D)

Thecomponentsandmovementsofdeferredtaxliabilitiesandassetsduringthefinancialyearpriortooffsettingareasfollows:

Deferred Tax Liabilities of the Group: Accelerated Land held Capital Investment Revaluation for Allowances Properties Surplus Development Total RM’000 RM’000 RM’000 RM’000 RM’000 At1January2007 2,636 35,660 90,262 4,155 132,713 Recognisedinincomestatement (201) (35,098) (987) (448) (36,734) Reclassificationofassets - - - (150) (150) Transfertorevaluationreserve - - (2,179) - (2,179) Transfertoretainedearnings - - (790) - (790)

At31December2007 2,435 562 86,306 3,557 92,860 At1January2006 10,818 10,305 19,563 4,287 44,973 EffectofadoptingFRS140 - 20,342 - - 20,342 Recognisedinincomestatement (8,182) 5,013 (1,089) (132) (4,390) Transferfromrevaluationreserve - - 45,762 - 45,762 Transferfromretainedearnings - - 26,026 - 26,026 At31December2006 2,636 35,660 90,262 4,155 132,713 Deferred Tax Assets of the Group: Unabsorbed Unabsorbed Property Capital Business Development Allowances Losses Cost Others Total RM’000 RM’000 RM’000 RM’000 RM’000 At1January2007 (10,518) (1,022) (14,561) (153) (26,254) Recognisedinincomestatement 10,395 17 566 (40) 10,938 Transferfromretainedearnings - - 1,493 - 1,493 Reclassificationofassets 9 295 - (154) 150 Exchangedifference - 21 - 8 29 At31December2007 (114) (689) (12,502) (339) (13,644) At1January2006 (15,410) (690) (14,982) (159) (31,241) Recognisedinincomestatement 4,892 (448) 461 (32) 4,873 Exchangedifference - 116 (40) 38 114 At31December2006 (10,518) (1,022) (14,561) (153) (26,254)

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33. DEFERRED TAX (CONT’D) Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitemsasitisnotprobablethattaxableprofitwill

beavailableintherespectivesubsidiaries:

Group 2007 2006 RM’000 RM’000 Unusedtaxlosses 101,489 103,042 Unabsorbedcapitalallowances 99,194 57,326 Unabsorbedinvestmenttaxallowances 33,879 33,879 Otherdeductibletemporarydifferences (5,897) (7,061)

228,665 187,186 Company 2007 2006 RM’000 RM’000 Unusedtaxlosses - 4,667 Unabsorbedcapitalallowances - 63 - 4,730

TheunusedtaxlossesandunabsorbedcapitalallowancesoftheGroupareavailableindefinitelyforoffsettingagainstfuturetaxableprofitsoftherespectivesubsidiaries,subjecttonosubstantialchangesinshareholdingsoftherespectivesubsidiariesundertheIncomeTaxAct,1967andguidelinesissuedbythetaxauthorities.

34. TRADE AND OTHER PAYABLES Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Tradepayables Thirdparties (a) 41,919 42,374 - - Duetocompaniesinwhichcertain directorshaveinterest 713 1,444 - - Retentions 2,970 4,296 - - Tradeaccruals 30,890 22,655 - - 76,492 70,769 - -


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34. TRADE AND OTHER PAYABLES (CONT’D) Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Other payables Duetosubsidiaries (b) - - 182,202 197,622 Accruals 31,471 31,939 9,926 11,237 Sundrypayables (c) 77,666 37,601 8,755 1,720 InterestonRM150million3%to 8%RedeemableSecuredBonds 1996/2009(“Bonds”) 29 19,364 16,364 19,364 16,364 Interestaccruedon68,821,674 RedeemableSecuredLoanStock 2004/2011(“RSLSSeriesB”) (d) 10,436 - - - Depositsreceived 5,860 12,745 - - Provisionfortaxpenalty 8,786 11,914 - - Provisionforliquidated ascertaineddamages 1,194 1,012 - - Duetodirectors 266 168 217 - Duetocompaniesinwhichcertain directorshaveinterest (e) 30,986 29,374 26,933 27,055 186,029 141,117 247,397 253,998 262,521 211,886 247,397 253,998

(a) ThenormalcredittermsgrantedtotheGrouprangefrom30to45days.

(b) Theamountsduetosubsidiariesareunsecured,non-interestbearingandarerepayableondemand.

(c) IncludedinsundrypayablesoftheGroupandoftheCompanyisdividendpayableonCumulativeRedeemablePreferenceShares(CRPSI)issuedbyasubsidiaryinprioryearsowingtoPuanSriTanBeeHong,aclosefamilymemberofadirectoroftheCompany,TanSriLeeKimTiong@LeeKimYewofRM553,000(2006:RM553,000)andRM553,000(2006:RM553,000)respectively.

Theseamountsareunsecured,non-interestbearingandarerepayableondemand.

(d) Duringtheyear,EastVisionLeisureGroupSdnBhd(“EVL”)completedarrangementsforthedisposalofoneoftheIdentifiedAssets,MinesShoppingFair(“MSF”),andfullyredeemedthe420,000,000RedeemableConvertibleSecuredLoanStock2004/2011(“RCSLSSeriesA”)on19December2007asdisclosedinNote30tothefinancialstatements. Following the disposal of MSF and the redemption of RCSLS Series A, interest on RSLS Series Bis payable to the extent of sales proceeds arising from the disposal of the remaining Identified Assets, MinesWaterfrontBusinessPark(“MWBP”)andMalaysiaInternationalExhibition&ConventionCentre(“MIEC”),andiscalculateduptothedateofredemptionofRSLSSeriesBamountingRM10,436,000.

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34. TRADE AND OTHER PAYABLES (CONT’D)

(e) IncludedinamountsduetocompaniesinwhichcertaindirectorshaveinterestoftheGroupandoftheCompanyare:

(i) Cash payment portion of purchase consideration amounting to RM11,214,000 (2006: RM11,214,000)constitutingataxretentionsumpayablebytheCompanydirectlytotheInlandRevenueBoardpursuanttothetermsofacquisitionofvariouspropertyandleisurerelatedinterestsandassetsfromcompaniesinwhichadirectoroftheCompany,TanSriLeeKimTiong@LeeKimYewhascontrollinginterest;and

(ii) AnamountduetoacompanyownedbyLeeKimChoonandLeeHoo,closefamilymembersofadirectorof theCompany,TanSriLeeKimTiong@LeeKimYew forRM15,443,000 (2006:RM15,443,000)andRM15,443,000(2006:RM15,443,000)respectively.ThecompanywasaformersubsidiaryoftheCompany,disposedofin2004.

Theseamountsareunsecured,non-interestbearingandrepayableondemand.

35. SHARE CAPITAL

Number of Ordinary Shares of RM1.00 Each Amount 2007 2006 2007 2006 ‘000 ‘000 RM’000 RM’000 Authorised ordinary share capital: At1January 5,000,000 5,000,000 5,000,000 5,000,000 ReclassifiedfromCumulative RedeemablePreferenceShares 50,000 - 50,000 -

5,050,000 5,000,000 5,050,000 5,000,000

Number of Cumulative Redeemable Preference Shares of RM0.10 each Amount 2007 2006 2007 2006 ‘000 ‘000 RM’000 RM’000 Authorised Cumulative Redeemable Preference Share Capital: At1January 500,000 500,000 50,000 50,000 Reclassifiedtoordinarysharecapital (500,000) - (50,000) - - 500,000 - 50,000


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35. SHARE CAPITAL (CONT’D) Number of Ordinary Shares of RM1.00 Each Amount 2007 2006 2007 2006 ‘000 ‘000 RM’000 RM’000 Issued and fully paid: At1January 275,707 275,699 275,707 275,699 Ordinarysharesissuedduringtheyear pursuanttoWarrants1996/2006 - 8 - 8 At31December 275,707 275,707 275,707 275,707

DuringtheAnnualGeneralMeetingwhichwasheldon21June2007,theshareholdershavepassedaspecialresolutiontoreclassifytheauthorisedsharecapitalofRM5,050,000,000dividedinto5,000,000,000ordinaryshareofRM1.00eachand500,000,000CumulativeRedeemablePreferenceSharesofRM0.10each toRM5,050,000,000authorisedsharecapitaldividedinto5,050,000,000ordinarysharesofRM1.00each.

Inthepreviousfinancialyear,8,003warrantsoversharesintheCompanyhadbeenexercisedatRM3.31each(“Warants1996/2006”),whichresultedinanincreaseinsharecapitalandsharepremiumofRM8,000andRM19,000respectively.Thewarrantshadexpiredinthepreviousfinancialyear.

36. OTHER RESERVES Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Non-distributable:

Revaluationreserve (a) Hotelproperties (a)(i) 145,204 144,888 - - Investmentproperties (a)(ii) - - - - Foreignexchangereserves (b) (5,244) (4,593) - - Capitalredemptionreserves (c) 19,048 19,048 19,048 19,048 159,008 159,343 19,048 19,048

Themovements,natureandpurposeofeachcategoryofreservewereasfollows:

(a) Revaluation reserve Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000

(i) Revaluation reserve - hotel properties At1January 144,888 192,488 - - Transferfrom/(to)deferredtaxliabilities 2,179 (45,762) - - Depreciationtransferonrevalued hotelpropertiesandexhibition centre&showroomand prepaidlandleasepayments (1,863) (1,838) - - At31December 145,204 144,888 - -

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36. OTHER RESERVES (CONT’D)

(a) Revaluation reserve (Cont’d) Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000

(ii) Revaluation reserve - investment properties At1January - 75,855 - - EffectofadoptingFRS140 - (75,855) - - At31December - - - -

Therevaluationreserveincludesthecumulativenetchange,netofdeferredtaxeffects,arisingfromtherevaluationofhotelpropertiesabovetheircost.

Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 (b) Foreign exchange reserve At1January (4,593) 1,673 - - Arisingintheyear (651) (6,266) - - Transfertoretainedearnings - - - - At31December (5,244) (4,593) - -

Theforeignexchangereservecomprisesallforeignexchangedifferencesarisingfromthetranslationofthefinancialstatementsofforeignsubsidiarieswhichqualifyasforeignentitiesatbalancesheetdate.

Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 (c) Capital redemption reserves At1January/31December 19,048 19,048 19,048 19,048

Thecapitalredemptionreservearosefromtheredemptionofthe190,478,000CumulativeRedeemablePreferenceSharesofRM0.10eachissuedbytheCompany(“CRPSI”).

PursuanttotheAssetBasedSettlementExercise,theCRPSIwasredeemedon23June2005insteadofitsoriginalduedateon25October2005.AtotalofRM19,047,800constitutingthenominalvalueoftheCRPSIredeemedwastransferredfromtheCompany’sretainedprofitstothecapitalredemptionreserve.Thisamountwouldotherwisehavebeenavailablefordistributionasdividend.

ThecapitalredemptionreservemaybeappliedinpayingupunissuedsharesoftheCompanyasfullypaidbonusshares.


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37. RETAINED EARNINGS Priortotheyearofassessment2008,Malaysiancompaniesadoptedthefullimputationsystem.Inaccordancewiththe

FinanceAct2007whichwasgazettedon28December2007,companiesshallnotbeentitledtodeducttaxondividendpaid,creditedordistributed to its shareholders,and suchdividendswillbeexempted from tax in thehandsof theshareholders(“singletiersystem”).However,thereisatransitionalperiodofsixyears,expiringon31December2013,toallowcompaniestopayfrankeddividendstotheirshareholdersunderlimitedcircumstances.Companiesalsohaveanirrevocableoptiontodisregardthe108balanceandopttopaydividendsunderthesingletiersystem.Thechangeinthetaxlegislationalsoprovidesforthe108balancetobelocked-inasat31December2007inaccordancewithSection39oftheFinanceAct2007.

TheCompanydidnotelectfortheirrevocableoptiontodisregardthe108balance.Accordingly,duringthetransitionalperiod,theCompanymayutilisethecredit inthe108balanceasat31December2007todistributecashdividendpaymentstoordinaryshareholdingsasdefinedundertheFinanceAct2007.

Asat31December2007,theCompanyhastaxexemptprofitsavailablefordistributionofapproximatelyRM136,427,000(2006:RM132,867,000),subjecttotheagreementoftheInlandRevenueBoard.

Asat31December2007, theCompanyhassufficientcredit in the108balanceand thebalance in the tax-exemptincomeaccounttopayfrankeddividendsoutofitsentireretainedearnings.

38. COMMITMENTS

Capital Commitments Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 Approvedandcontractedfor 85,540 34,923 - - Approvedbutnotcontractedfor 54,975 17,757 - 14,839 140,515 52,680 - 14,839

39. CONTINGENT LIABILITIES Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 Secured: Corporateguaranteesandlettersofundertaking giventofinancialinstitutionsinrespectof borrowingfacilitiesgrantedtosubsidiaries, theamountofwhichisutilisedbythe subsidiaries - - 126,585 149,524 - - 126,585 149,524

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39. CONTINGENT LIABILITIES (CONT’D)

Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000

Unsecured: Corporateguaranteesandlettersofundertaking giventofinancialinstitutionsinrespectof borrowingfacilitiesgrantedtosubsidiaries, theamountofwhichisutilisedbythe subsidiaries - 291 40,251 45,350 TheGrouphasbeenimposedapenaltyfor latepaymentofassessmentbythelocal authorities.TheGrouphasappealedforan exemptionofthesaidpenaltyandhas reachedanamicablesettlementwiththe localauthorities.Currentlytheexemptionis pendingapprovalfromthestategovernment. Thedirectorsareconfidentthattheappeal willbesuccessful. - 458 - - Lawsuitagainstasubsidiary,CountryHeights IndustriesSdnBhdbycreditorinrelation toabalanceforbuildingworksdonefor aproject,CollegeHeightsGardenResort, Pajamforthesubsidiary. 249 - - - Guaranteestofinancialinstitutionsinrespect ofborrowingfacilitiesgrantedtocustomers 6,377 8,912 - -

Bankguaranteesgiventosuppliersforthe purposeofhotelutilities 726 721 - - 7,352 10,382 40,251 45,350 7,352 10,382 166,836 194,874


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40. SIGNIFICANT RELATED PARTY TRANSACTIONS

(a) Inadditiontothetransactionsdisclosedinthefinancialstatements,theGroupandtheCompanyhadthefollowingtransactionswithrelatedpartiesduringthefinancialyear:

(i) TransactionswithcompaniesinwhichadirectoroftheCompany,TanSriLeeKimTiong@LeeKimYew,hascontrollinginterests:

Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 Insuranceexpenses 1,622 1,702 - - Securitycharges 992 1,004 - - Purchaseofsouvenirs 6 22 - - Rentalexpenses 207 159 - - Rentalincome (692) (326) - -

(ii) TransactionswithdirectorsoftheCompany: Group 2007 2006 RM’000 RM’000 BondinterestpaidandpayabletoTanSriLeeKimTiong@LeeKimYew 12,000 12,000 RentalexpensepaidtoGen.TanSri(Dr)MohamedHashim binMohdAli(Rtd) 48 48

(iii) Transactionswithcompaniesinwhichdirectorsofcertainsubsidiariesorpartiesconnectedtothosedirectorshavecontrollinginterest:

Group 2007 2006 RM’000 RM’000 Rentalincomereceivedfrom: (a) (602) (573)

(a) RelatedtoMrLeeTeckSeng,anephewofadirectoroftheCompany,TanSriLeeKimTiong@LeeKimYew.

2007 2006 Company RM’000 RM’000 (i) Subsidiaries Food&beveragesandroomcharges 537 165 Revolvingcreditinterest - 1,369 Dividendreceivablefromsubsidiaries,netoftax (12,300) (5,440) Managementfeesreceivablefromsubsidiaries (2,206) (2,113)

Thedirectors are of theopinion that all the transactions abovehavebeen entered into in thenormal courseofbusinessandhavebeenestablishedontermsandconditionsthataremutuallyagreeduponwiththeaboveparties.

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40. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONT’D)

(b) Compensationofkeymanagementpersonnel

Theremunerationofdirectorsandothermembersofkeymanagementduringtheyearwasasfollows:

Group Company 2007 2006 2007 2006 Note RM’000 RM’000 RM’000 RM’000 Salariesandotheremoluments 1,520 1,763 351 363 Bonuses 533 330 449 269 Pensioncosts-defined contributionplans 288 247 111 50 Otheremoluments 164 116 - - Directorfees 8 107 96 93 81 2,612 2,552 1,004 763

Includedinthetotalkeymanagementpersonnelare: Group Company 2007 2006 2007 2006 RM’000 RM’000 RM’000 RM’000 Directors’remuneration(Note8) 2,267 2,232 1,004 763

41. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and Policies TheGroup’sfinancialriskmanagementpolicyseekstoensurethatadequatefinancialresourcesareavailablefor

thedevelopmentoftheGroup’sbusinesswhilstmanagingitsinterestraterisk,foreignexchangerisk,liquidityriskandcreditrisks.TheGroupoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’spolicyisnottoengageinspeculativetransactions.

(b) Interest Rate Risk TheGroup’sprimary interest risk relates to interest-bearingborrowingswhichareprincipallydenominated in

MalaysianRinggit.TheGrouphasnosubstantiallong-terminterestbearingassetsasat31December2007.Theinvestmentsinfinancialassetsaremainlyshortterminnatureandhavebeenmostlyplacedinfixeddeposits.

TheGroupmanages its interest rateexposurebymaintainingamixoffixedandfloatingrateborrowings.TheGroupreviewsitsdebtportfolio,takingintoaccounttheinvestmentholdingperiodandnatureofitsassets.Thisstrategyallowsittocapitaliseoncheaperfundinginalowinterestrateenvironmentandachieveacertainlevelofprotectionagainstratehikes.

Theinformationonmaturitydatesandeffectiveinterestratesoffinancialassetsandliabilitiesaredisclosedintheirrespectivenotes.


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41. FINANCIAL INSTRUMENTS (CONT’D)

(c) Foreign Exchange Risk The Group operates internationally and is exposed to various currencies, mainly United States Dollar, South

AfricanRand,SterlingPound,SingaporeDollarandNewZealandDollar.Foreigncurrencydenominatedassetsandliabilitiestogetherwithexpectedcashflowsfromprobablepurchasesandsalesgiverisetoforeignexchangeexposures.

Thereisminimalforeignexchangeexposureasthetransactionalcurrenciesarethefunctionalcurrenciesoftheoperatingentities.

(d) Liquidity Risk

TheGroupmanagesitsdebtmaturityprofile,operatingcashflowsandtheavailabilityoffundingsoastoensurethatrefinancing,repaymentandfundingneedsaremet.Aspartofitsoverallliquiditymanagement,theGroupmaintainssufficientlevelsofcashorcashconvertibleinvestmentstomeetitsworkingcapitalrequirements.Inaddition,theGroupstrivestomaintainavailablebankingfacilitiesatareasonableleveltoitsoveralldebtposition.Asfaraspossible,theGroupraisescommittedfundingfrombothcapitalmarketsandfinancialinstitutionsandbalancesitsportfoliowithsomeshorttermfundingsoastoachieveoverallcosteffectiveness.

(e) Credit Risk

Creditrisksortheriskofcounterpartiesdefaulting,arecontrolledbytheapplicationofcreditapprovals,limitsandmonitoringprocedures.CreditrisksareminimisedandmonitoredbylimitingtheGroup’sassociationstobusinesspartnerswithhighcreditworthiness.TradereceivablesaremonitoredonanongoingbasisviaGroupmanagementreportingprocedures.

(f) Fair Values ThecarryingamountsoffinancialassetsandliabilitiesoftheGroupandoftheCompanyatthebalancesheetdate

approximatedtheirfairvaluesexceptforthefollowings: Group Company Carrying Carrying Amount Fair Value Amount Fair Value Note RM’000 RM’000 RM’000 RM’000

Financial Assets At 31 December 2007: Non-currentunquotedshares 20 2,000 * - - Non-currentmemberships 20 798 * 718 * Longtermreceivables 23 17,349 15,344 - - At 31 December 2006: Non-currentunquotedshares 20 2,000 * - - Non-currentmemberships 20 798 * 718 * Longtermreceivables 23 11,097 10,811 - -

ANNUALREPORT2007

153



(f) Fair Values (Cont’d)

ThecarryingamountsoffinancialassetsandliabilitiesoftheGroupandoftheCompanyatthebalancesheetdateapproximatedtheirfairvaluesexceptforthefollowings:(Cont’d)

Group Company Carrying Carrying Amount Fair Value Amount Fair Value Note RM’000 RM’000 RM’000 RM’000 Financial Liabilities At 31 December 2007: Termloans 27 3,290 3,149 - - Revolvingcredit 27 46,890 46,683 - - BankGuaranteed CommercialPaper 27 59,414 @ - - BankGuaranteedMedium TermNotes 27 70,000 73,119 - - Bonds 29 150,000 150,000 150,000 150,000 RSLSSeriesB 30 68,822 63,059 - - Golfmembershiploans 32 5,073 # - - At 31 December 2006: Termloans 27 3,578 3,217 - - Revolvingcredit 27 53,790 53,452 - - BankGuaranteed CommercialPaper 27 60,770 @ - - BankGuaranteedMedium TermNotes 27 70,000 @ - - Bonds 29 150,000 150,000 150,000 150,000 RCSLSSeriesA 30 420,000 394,511 - - RSLSSeriesB 30 68,822 61,861 - - Golfmembershiploans 32 5,099 # - -

* It isnotpracticable toestimate the fairvaluesof theGroup’sand theCompany’snon-currentunquotedsharesandmembershipsbecauseofthelackofquotedmarketpricesandtheinabilitytoestimatetheirfairvaluewithoutincurringexcessivecosts.

# Itisnotpracticabletoestimatethefairvalueofgolfmembershiploanswhichderivedfromaforeignsubsidiaryduetovolatilityoftheforeignexchangecurrencyrates,uncertaintiesinitsrepaymenttermswhichcouldberepayablein25yearsoruponresignationofitsmembersandwithoutincurringexcessivecosts.

@ ThefairvaluesoftheMediumTermNoteandCommercialPaperinissueareequivalenttotheircarryingamountastheireffectiveinterestratesareconsideredtobemarketratesinviewoftheirrecentissue.

Thefollowingmethodsandassumptionsareusedtoestimatethefairvaluesofthefollowingclassesoffinancialinstruments:

(i) CashandCashEquivalents,TradeandOtherReceivables/PayablesandShortTermBorrowings

Thecarryingamountsapproximatefairvaluesduetotherelativelyshort termmaturityof thesefinancialinstruments.


154



(f) Fair Values (Cont’d)

Thefollowingmethodsandassumptionsareusedtoestimatethefairvaluesofthefollowingclassesoffinancialinstruments:(Cont’d)

(ii) MarketableSecurities

Thefairvalueofquotedsharesisdeterminedbyreferencetostockexchangequotedmarketbidpricesatthecloseofthebusinessonthebalancesheetdate.

(iii) Interest-BearingReceivables/Borrowings The fairvalueof interest-bearing receivables/borrowings isestimatedbydiscounting theexpected future

cashflowsusingcurrentinterestratesforliabilitieswithsimilartypesoflendingandborrowingarrangementsandriskprofiles.

42. SEGMENT INFORMATION

(a) Business Segments TheGroupisorganisedandoperatesinternationallyintosixmajorbusinesssegments:

(i) Propertydevelopment (ii) Medicaltourism (iii) Hoteloperations (iv) Exhibitionoperations (v) Leisureoperations (vi) Rentaloperations (vii) Others Thedirectorsareoftheopinionthatallinter-segmenttransactionshavebeenenteredintointhenormalcourseof

businessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromthoseobtainableintransactionswithunrelatedparties.

ANNUALREPORT2007

155


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ANNUALREPORT2007

157


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ANNUALREPORT2007

159


42. SEGMENT INFORMATION (CONT’D)

(b) Geographical Segments AlthoughtheGroup’ssixmajorbusinesssegmentsaremanagedinternationally,itsoperationsareintwoprincipal

geographicalarea.InMalaysia,theGroup’sareasofoperationareprincipallypropertydevelopment,investment,construction,hoteloperations,exhibition,operations,leisureoperationsandrentaloperations.TheGroupalsooperatesinSouthAfrica,principallyingolfestateownershipandoperationofaboatclub.

Total Revenue From External Segment Capital Customers Assets Expenditure RM’000 RM’000 RM’000 2007 Malaysia Continuingoperations 206,212 1,522,913 9,557 Discontinuedoperation 38,755 - - SouthAfrica 13,568 30,094 98 Others - 54 - 258,535 1,553,061 9,655 2006 (Restated) Malaysia Continuingoperations 167,699 1,853,303 14,842 Discontinuedoperation 39,054 - - SouthAfrica 6,412 32,398 307 Others - 54 - 213,165 1,885,755 15,149


160


43. COMPARATIVES Thefollowingcomparativeamountsasat31December2006havebeenreclassifiedtoconformwithcurrentyear’s

presentation:

As previously As Group Note stated Adjustment restated RM’000 RM’000 RM’000 Hotelpropertiesandexhibitioncentre&showroom 13 685,457 (333,790) 351,667 Otherproperty,plantandequipment 14 160,440 (41,572)* 118,868 Investmentproperties 15 402,350 29,443 431,793 Prepaidlandleasepayments 16 - 360,352 360,352 Landheldforpropertydevelopment 17(a) 209,978 (14,433) 195,545 Longtermreceivables 23 10,120 977 11,097 Tradeandotherreceivables 23 90,956 (977) 89,979 Longtermliabilities 32 29,848 (24,749) 5,099 Deferredincome 32 - 24,749 24,749 Revenue 213,165 (39,054) 174,111 Costofsales (83,197) 944 (82,253) Otherincome 15,846 (265) 15,581 Sellingandmarketingexpenses (2,115) (4,591) (6,706) Administrativeexpenses (18,767) (5,069) (23,836) Otherexpenses (107,759) 24,933 (82,826) Financecost (51,019) 15,692 (35,327) Incometaxexpense (2,065) 27 (2,038) Lossfortheyear (36,030) (7,383) (43,413) Profitfortheyearfromdiscontinuedoperation - 7,383 7,383 Company Administrativeexpenses (1,498) (1,968) (3,466) Otherexpenses (2,288) 1,968 (320)

* IncludesrestatementofRM12,129,000toprepaidlandleasepaymentsasaresultofadoptingFRS117:LeasesasdisclosedinNote2.3(c)tothefinancialstatements.

44. SIGNIFICANT EVENTS

(a) Disposal of an investment property, Mines Shopping Fair

On16August2007,MinesShoppingFairSdnBhd(“MSFSB”),awholly-ownedsubsidiaryofEastVisionLeisureGroupSdnBhd(“EVL”),whichin turn isawholly-ownedsubsidiaryof theCompany,enteredintoasaleandpurchaseagreement(“MSFAgreement”)withMutualStreamsSdnBhd(“MSSB”)todisposeofMinesShoppingFair(“MSF”)comprisinglandandashoppingmallerectedthereonforacashconsiderationofRM432,000,000.ThedisposalresultedingainondisposaltotheGroupofRM82,910,000andthereversalofdeferredtaxliabilitiestotheGroupofRM35,320,000duringthefinancialyear.MSSBiscurrentlyintheprocessofregisteringthetransferofthelandtitle.

Thedisposal ofMSF resulted in thediscontinuanceof the lettingof shoppingmall lots andpromotion spaceoperations,previouslyreportedintherentaloperationssegment.

ANNUALREPORT2007

161


44. SIGNIFICANT EVENTS (CONT’D)

(a) Disposal of an investment property, Mines Shopping Fair (Cont’d)

PursuanttotheMSFAgreement,aputandcalloptionwasissuedoveranancillarylandandbuildingofMSFwhichhasnotbeendisposedofknownasVeniceWalkLandandVeniceWalkBuilding.DisposalofVeniceWalkLandandBuildingissubjecttotheGroupobtainingcertainapprovalsfromtheauthoritiesoverVeniceWalkLandandBuilding.Theputandcalloptionshallbeexercisablewithinaperiodof30daysfromreceiptoftheapprovalsfromtheauthorities.Uponexerciseoftheputorcalloptions,MSSBshallpayMSFSBRM3,000,000fortheVeniceWalkLand&Building.

VeniceWalkBuildingisclassifiedasNon-CurrentAssetHeldForSaleinthefinancialstatements.VeniceWalkLandisnotcapitalisedinthefinancialstatementsoftheGroup.

(b) Early redemption of Redeemable Convertible Secured Loan Stock 2004/2011 (“RCSLS Series A”) On19December2007,theGroupredeemedtheRCSLSSeriesAofRM420,000,0004yearspriortoitsredemption

datefromthedisposalproceedsofMinesShoppingFairofRM432,000,000asdisclosedin(a)aboveandNote30tothefinancialstatements.

(c) Disposal of shares in an associate, Mexs Design & Contracts Sdn Bhd On26February2007,MinesInternationalExhibitionCentreSdnBhd,awholly-ownedsubsidiaryofEastVision

LeisureGroupSdnBhd,whichinturnisawholly-ownedsubsidiaryoftheCompany,disposedofitsentireequityinterestinanassociate,MexsDesign&ContractsSdnBhd(“MDCSB”)foratotalconsiderationofRM252,000.Asaresultofthedisposal,theGroupreportedalossofRM15,000.MDCSB’sprincipalactivityisthatofinteriordecorationcontractor.

(d) Investment in an associate, Dragon Spring Investment (Labuan) Limited

On10April2007,CountryHeightsChinaLtd(“CHCL”),awholly-ownedsubsidiaryof theCompany,enteredintoasharesubscriptionagreement(“ShareSubscriptionAgreement”)withDragonSpringInvestment(Labuan)Limited(“DSILL”)andEarthlodgeInvestmentsLimited&Associates(“EIL”)whereinDSILLhadofferedandCHCLhadagreedtosubscribefor900,000ordinarysharesofUS$1.00eachinDSILLatanissuepriceofUS$1.00pershare.

PursuanttotheShareSubscriptionAgreement,CHCLwouldholdnotlessthan20%ofthetotalshareholdinginDSILL.Asattheyearend,CHCLheld20.93%equityinterestinDSILL.

DSILL’swhollyownedsubsidiary,DragonSpringWaterServicesLimited(“DSWSL”),enteredintoaconcessionagreement on 26 October 2006 with the City Government of TianChang City, People’s Republic of China(“ConcessionAgreement”),pursuanttowhichDSWSLwasgranteda30-yearconcessiontoundertakethebusinesstobuild,operateandownawatersupplysystemlocatedinTianChangCity,People’sRepublicofChinauponthetermsandconditionscontainedintheConcessionAgreement.

(e) Disposal of shares in a subsidiary, Country Heights Marketing Sdn Bhd (“CHMSB”)

On 28 May 2007, the Company entered into a sale and purchase of shares agreement (“CHMSB DisposalAgreement”)withCountryHeightsInternationalSdnBhd,arelatedparty,todisposeof2,600,000ordinarysharesofRM1eachrepresentingtheCompany’sentireequityinterestinasubsidiary,CountryHeightsMarketingSdnBhd(“CHMSB”),foracashconsiderationofRM960,000.ThecashconsiderationwasarrivedatbasedontheauditednetassetsofCHMSBasatthedateofdisposal.ThecostofinvestmentinCHMSBwasRM2,600,000.Arisingfromthedisposal,therewasnogainorlosstotheGroupwhilstlosstotheCompanyamountedtoRM1,640,000.TheprincipalbusinessactivityofCHMSBis theprovisionofmarketingservices,previouslyreportedaspartof thepropertydevelopmentsegment.


162


44. SIGNIFICANT EVENTS (CONT’D)

(f) Purchase of 23 parcels of freehold land located in Mukim of Rasa and Mukim of Batang Kali

On12 June2007,PRSHomesSdnBhd,awholly-owned subsidiaryof theCompanyentered intoa saleandpurchaseagreementwithSilverConceptSdnBhdfortheacquisitionof23parcelsoffreeholdlandofapproximately2,073acreslocatedinMukimofRasaandMukimofBatangKaliforatotalconsiderationofRM56,000,000,tobedevelopedbytheGroup.Duringtheyear,theCompanypaidanon-refundabledepositofRM5,600,000tothevendor.Thebalanceofthepurchaseconsiderationisdueforsettlementon7May2008.

(g) Disposal of shares in a subsidiary, Country Heights Parade Sdn Bhd

On 24 October 2007, the Company entered into a share purchase agreement for the disposal of 2,600,000ordinarysharesofRM1eachrepresentingtheCompany’sentireequityinterestinCountryHeightsParadeSdnBhd(“CHPSB”),awholly-ownedsubsidiaryoftheCompany,foracashconsiderationofRM2,789,000.ThecashconsiderationwasarrivedatbasedonthenetassetsofCHPSBasat19October2007ofRM2,789,000.ThecostofinvestmentinCHPSBwasRM2,600,000.Arisingfromthedisposal,therewasnogainorlosstotheGroupwhilstgaintotheCompanyamountedtoRM189,000.TheprincipalbusinessactivityofCHPSBispropertydevelopment,previouslyreportedaspartofthepropertydevelopmentsegment.

ANNUALREPORT2007

163

AnalysisOfShareholdingsasat15May2008

AuthorisedShareCapital : RM5,050,000,000dividedinto5,050,000,000ordinarysharesofRM1.00eachPaid-upShareCapital : 275,707,403ordinarysharesofRM1.00eachClassofShare : OrdinaryShareofRM1.00eachVotingRights : 1VoteperOrdinaryShare

Distribution of Shareholders

Size of Shareholdings No. of No. of Shareholders % Shares Held %

Lessthan100 57 0.7848 821 0.0003100-1,000 2,376 32.7138 2,264,418 0.82131,001-10,000 4,332 59.6448 15,149,041 5.494610,001-100,000 446 6.1407 11,917,900 4.3227100,001tolessthan5%ofissuedshares 48 0.6609 114,325,885 41.46645%andaboveofissuedshares 4 0.0550 132,049,338 47.8947

Total 7,263 100.0000 275,707,403 100.0000

Substantial Shareholders

<------------------------------- No. of Shares ------------------------------->No. Name of Shareholders Direct % Indirect %

1 GoldenTouchVentureSdnBhd 39,425,000(1) 14.30 - -2 ChunghwaPictureTubes(Malaysia)SdnBhd 48,000,000 17.41 - -3 TanSriLeeKimTiong@LeeKimYew 89,485,130(1) 32.46 41,751,600(2) 15.14

Statement of Directors’ Shareholdings

<------------------------------- No. of Shares ------------------------------->No. Name of Directors Direct % Indirect %

1 GeneralTanSri(Dr)MohamedHashim BinMohdAli(Rtd) 1,480,842 0.54 - -2 TanSriLeeKimTiong@LeeKimYew 89,485,130(1) 32.46 41,751,600(2) 15.143 Mr.MarkVictorRozario - - - -4 AcademicianTanSriDatukDr.OngSoonHock 16,000 0.01 - -5 EncikNikHassanBinNikMohdAmin - - - -6 Mr.ChewChongEu - - - -7 Mr.ChewChengKeat - - - -

Note:(1) Partlyheldthroughvariousnomineescompanies(2) InterestedbyvirtueofhissubstantialinterestinGoldenTouchVentureSdnBhdandBeeGardenHoldingsSdnBhd


164

Name of Shareholders No. of Shares Percentage

1. CIMBGroupNominees(Tempatan)SdnBhd 43,874,338 15.9134 Pledged securities account for Lee Kim Tiong @ Lee Kim Yew

2. ChunghwaPictureTubes(Malaysia)SdnBhd 40,000,000 14.5081

3. LeeKimTiong@LeeKimYew 24,500,000 8.8862

4. AMMBNominees(Tempatan)SdnBhd 23,675,000 8.5870 AmBank (M) Berhad for Golden Touch Venture Sdn Bhd

5. KensingtonGroupManagementLimited 13,784,000 4.9995

6. JointWinInvestmentsLimited 13,729,900 4.9799

7. HDMNominees(Tempatan)SdnBhd 12,340,500 4.4759 Pledged securities account for Lee Kim Tiong @ Lee Kim Yew

8. HDMNominees(Tempatan)SdnBhd 10,879,800 3.9461 Pledged securities account for Lim Wee Hang

9. MaybanNominees(Tempatan)SdnBhd 8,750,000 3.1737 Aseambankers Malaysia Berhad for Golden Touch Venture Sdn Bhd

10. ChunghwaPictureTubes(Malaysia)SdnBhd 8,000,000 2.9016

11. AmsecNominees(Asing)SdnBhd 7,856,000 2.8494 Ambank (M) Berhad for Hung Rong Min

12. GoldenTouchVentureSdnBhd 7,000,000 2.5389

13. MaybanNominees(Tempatan)SdnBhd 5,980,862 2.1693 AseambankersMalaysiaBerhadforLeeKimTiong@LeeKimYew

14. AmsecNominees(Tempatan)SdnBhd 2,822,800 1.0238 AmBank(M)BerhadforLokeKimWan

15. CitigroupNominees(Tempatan)SdnBhd 2,721,430 0.9871 Pledged securities account for Lee Kim Tiong @ Lee Kim Yew

16. AmsecNominees(Tempatan)SdnBhd 2,415,400 0.8761 AmBank (M) Berhad for Lim Koon Thye

17. UOBMNominees(Tempatan)SdnBhd 2,326,600 0.8439 Golden Touch Asset Management Sdn Bhd for Bee Garden Holdings Sdn Bhd

18. BerjayaSompoInsuranceBerhad 1,880,600 0.6821

19. PeriyakinMidcapVentureSdnBhd 1,750,800 0.6350

ListOfThirtyLargestSecuritiesAccountsHoldersasat15May2008

ANNUALREPORT2007

165

Name of Shareholders No. of Shares Percentage

20. ECMLNominees(Tempatan)SdnBhd 1,440,200 0.5224 Pledged securities account for Ong Chong Sek

21. HDMNominees(Tempatan)SdnBhd 1,432,631 0.5196 Pledged securities account for Loke Kim Wan

22. CitigroupNominees(Asing)SdnBhd 1,358,120 0.4926 Bear Stearns Securities Corp for FPP Emerging Markets Fund II Limited

23. MohamedHashimBinMohdAli(GenRtdTanSri) 811,200 0.2942

24. MohamedHashimBinMohdAli(GenRtdTanSri) 669,642 0.2429

25. PMNominees(Tempatan)SdnBhd 548,100 0.1988 PCB Asset Management Sdn Bhd for Ng Faai @ Ng Yoke Pei

26. MulphaEngineering&ConstructionSdnBhd 488,000 0.1770

27. AnchorPointSdnBhd 480,000 0.1741

28. MalpacCapitalSdnBhd 468,500 0.1699

29. TanEngHock 335,500 0.1217

30. EBNominees(Tempatan)SendirianBerhad 300,000 0.1088 Pledged securities account for Chong Kim Chan

Total 242,619,923 87.9990

Total Issued Capital 275,707,403

ListOfThirtyLargestSecuritiesAccountsHoldersasat15May2008(Cont’d)


166

AnalysisofBondholdingsasat15May2008

Type : RedeemableSecuredBondsNominalValueOutstanding : RM150,000,000Maturity : 31December2009Coupon : 8%No.ofBondholders : 2

Distribution of Bondholders

Size of Bondholdings No. of No. of Bondholders % Bonds Held %

Lessthan100 - - - -100-1,000 - - - -1,001-10,000 - - - -10,001to100,000 - - - -100,001tolessthan5%ofissuedBonds 1 50.00 6,000,000 4.005%andaboveofissuedBonds 1 50.00 144,000,000 96.00

Total 2 100.00 150,000,000 100.00

List of Bondholders

No. Name of Bondholders No. of Bonds %

1 CIMBNominees(Tempatan)SdnBhd (FortheA/CofTanSriLeeKimTiong@LeeKimYew) 144,000,000 96.00

2 UnitedOverseasBank(Malaysia)Bhd (ForGoldenTouchAssetManagementSdnBhdfortheA/Cof TanSriLeeKimTiong@LeeKimYew) 6,000,000 4.00 Total 150,000,000 100.00

Statement of Directors’ Bondholdings

<------------------------------- No. of Bonds ------------------------------>No. Name of Directors Direct % Indirect %

1 TanSriLeeKimTiong@LeeKimYew 150,000,000# 100.00 - -

Note:# Held through CIMB Nominees (Tempatan) Sdn Bhd and United Overseas Bank (Malaysia) Bhd

ANNUALREPORT2007

167

ListOfLandedPropertiesHeldByTheGroupasat31December2007

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) Date PioneerProject 48 Freehold Residential 21.38 - 5,310 13/7/1987 CountryHeights -bungalowland 43000Kajang SelangorDarulEhsanLot246HSD19983 19JalanCintaAlam 1 Freehold Bungalowland 0.47 - 557 15/6/1993*P.T.No.12892 CountryHeights MukimofKajang 43000Kajang DistrictofUluLangat SelangorDarulEhsanSelangor Lot305HSD20098 38AJalanSenyum 1 Freehold Bungalow 0.45 19 982 15/6/1993*P.T.No.13007 MatahariMukimofKajang CountryHeightsDistrictofUluLangat 43000KajangSelangor SelangorDarulEhsanLot570HSD24699 57JalanCintaAlam 1 Freehold Bungalow 0.46 19 865 15/6/1993*P.T.No.20156 CountryHeights MukimofKajang 43000Kajang DistrictofUluLangat SelangorDarulEhsanSelangorLot594HSD24692 65JalanCintaAlam 1 Freehold Bungalow 0.41 13 509 15/6/1993*P.T.No.20149 CountryHeights MukimofKajang 43000Kajang DistrictofUluLangat SelangorDarulEhsanSelangorHSD20047 CountryHeights 1 Freehold Kindergarten ) 19 515 15/6/1993*P.T.No.12956 43000Kajang )MukimofKajang SelangorDarulEhsan )DistrictofUluLangat )Selangor ) ) )HSD20055 CountryHeights 1 Freehold Proposed ) 1.55 839 15/6/1993*P.T.No.12964 43000Kajang Kindergarten )MukimofKajang SelangorDarulEhsan )DistrictofUluLangat ) Selangor )HSD20283 CountryHeights 1 Freehold Proposed ) 407 15/6/1993*P.T.No.13194 43000Kajang Kindergarten )MukimofKajang SelangorDarulEhsan )DistrictofUluLangat )Selangor ) HSD24917 CountryHeights 1 Freehold Proposed ) 249 15/6/1993*P.T.No.20431 43000Kajang Kindergarten )MukimofKajang SelangorDarulEhsan )DistrictofUluLangat )Selangor )


168

ListOfLandedPropertiesHeldByTheGroupasat31December2007(Cont’d)

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) DateLot37653 CountryHeights 1 Freehold Convenience 6.40 19 11,687 15/6/1993*GRN122934 43000Kajang Centre,BankingP.T.No.34881 SelangorDarulEhsan Hall&ClubhouseMukimofKajangDistrictofUluLangatSelangorHSD52968 LimitedAdditions 2 Freehold Residential 0.60 - 311 21/4/1989P.T.No.40835 CountryHeights -bungalowlandMukimofKajang 43000KajangDistrictofUluLangat SelangorDarulEhsan SelangorPajakanNegeri7212 W.T.C.CountryVillas 26 Leasehold Villas ) No.Lot24732 CountryHeights villas (expiring -P1:completed ) 13 1,060 24/8/1988HSD22919 43000Kajang 12.11.2088) )P.T.No.14194 SelangorDarulEhsan 80 -P2:completed ) 45.52 11 18,203 24/8/1988MukimofKajang villas (unsoldunits )DistrictofUluLangat retainedfor )Selangor rentalpurposes) )PajakanNegeri7211 W.T.C.CountryVillas 1 Leasehold Clubhouse& 12.28 13 10,971 24/8/1988No.Lot24731 CountryHeights (expiring TennisCourtsHSD22918 43000Kajang 12.11.2088)P.T.No.14193 SelangorDarulEhsanMukimofKajangDistrictofUluLangatSelangorHSD59893 MalaysiaInternational 1 Leasehold Exhibition 6.74 10 209,083 1/7/2003*P.T.No.16721 Exhibition& (expiring CentreMukimofPetaling ConventionCentre 20.3.2091)DistrictofPetaling (MIECC)SelangorHSD232191 TheMinesResortCity 1 Leasehold ProposedCondo 1.69 - 1,104 15/6/1993*P.T.No.852 (expiringMukimofPetaling 20.3.2091)DistrictofPetalingSelangorHSD59898 TheMinesResortCity 41 Leasehold Residential 10.23 - 7,184 15/6/1993*P.T.No.16726 (expiring -bungalowlandMukimofPetaling 20.3.2091) DistrictofPetalingSelangorHSD59885 Palaceofthe 1 Leasehold Hotel 13.80 10 404,656 20/5/2004*P.T.No.16713 GoldenHorses (expiringMukimofPetaling TheMinesResortCity 20.3.2091)DistrictofPetalingSelangor

ANNUALREPORT2007

169

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) Date

CollegeValley 102 Freehold Industrialland 26.55 - 10,509 31/3/1995 IndustrialPark Lot27HSD105214 CollegeHeights 1 Freehold Bungalow 0.18 11 ) 1/6/1994P.T.No.13092 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot28HSD104395 CollegeHeights 1 Freehold Bungalow 0.18 11 ) 1/6/1994P.T.No.12273 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot397HSD104778 CollegeHeights 1 Freehold Bungalow 0.23 11 ) 1/6/1994P.T.No.12656 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot890HSD105017 CollegeHeights 1 Freehold Bungalow 0.23 11 ) 1/6/1994P.T.No.12895 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot963HSD105344 CollegeHeights 1 Freehold Bungalow 0.17 11 ) 1/6/1994P.T.No.13222 GardenResort )MukimofSetul ) 39,099DistrictofSeremban ) )Lot965HSD105342 CollegeHeights 1 Freehold Bungalow 0.19 11 ) 1/6/1994P.T.No.13220 GardenResort )MukimofSetul )DistrictofSeremban ) ) Lot969HSD105338 CollegeHeights 1 Freehold Bungalow 0.16 11 ) 1/6/1994P.T.No.13216 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot972HSD105335 CollegeHeights 1 Freehold Bungalow 0.16 11 ) 1/6/1994P.T.No.13213 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot973HSD105241 CollegeHeights 1 Freehold Bungalow 0.17 11 ) 1/6/1994P.T.No.13119 GardenResort )MukimofSetul )DistrictofSeremban ) )Lot1038HSD105294 CollegeHeights 1 Freehold Bungalow 0.19 11 ) 1/6/1994PT13173 GardenResort )MukimofSetul )DistrictofSeremban )



170



CollegeHeights 364 Freehold Residential 81.20 ) 1/6/1994 GardenResort -bungalowland )

CollegeHeights 7 Freehold 2-storeyshop- 0.41 ) 1/6/1994 GardenResort office ) ) 9,671 CollegeHeights 27 Freehold 3-storeyshop- 1.17 ) 1/6/1994 GardenResort office ) Lot23560 CollegeHeights 343 Freehold Lowcost 22.08 12,848 1/6/1994HM132798 GardenResort flat/shopMukimofSetul DistrictofSeremban CollegeHeights 7 Freehold Institutional 80.17 ) 12,324 1/6/1994 GardenResort land ) CollegeHeights 2 Freehold EQ/Clubhouse 14.56 ) GardenResort land CollegeHeights 2 Freehold Residentialfuture 4.13 ) 1/6/1994 GardenResort ) ) CollegeHeights 154 Freehold Commercial 12.87 ) 1/6/1994 GardenResort Development ) ) 5,061 CollegeHeights 4 Freehold Recreational& 5.58 ) 1/6/1994 GardenResort Commercialland ) )Lot8217 CollegeHeights 1 Leasehold AgricultureLand 2.00 ) 6/8/2001PM336 GardenResort (Expiring )MukimofSetul 08.12.2093) )DistrictofSeremban )NegeriSembilan ) ) ) 1,189Lot9225 CollegeHeights 1 Leasehold AgricultureLand 1.91 ) 6/8/2001PM333 GardenResort (Expiring )MukimofSetul 23.08.2095) )DistrictofSeremban )NegeriSembilan ) ) )Lot9226 CollegeHeights 1 Leasehold AgricultureLand 1.47 ) 6/8/2001PM332 GardenResort (Expiring )MukimofSetul 23.08.2095) )DistrictofSeremban ) )

ANNUALREPORT2007

171

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) Date CT8095-8098 CollegeHeights 89 Freehold Residential 13.29 5,563 1/3/1995Lot4129-4132 GardenResort -bungalowMukimofSetul landDistrictofSerembanNegeriSembilan

PN17796 OceanWaveWater 50 Leasehold ThemePark& 3.83 8,320 27/2/1990Lot1284 ThemePark (Expiring service PekanTelukKemang 18.12.2089) apartmentsDistrictofPortDicksonNegeriSembilanHSD79509 Lot162Staffield 1 Freehold Residential 0.20 181 23/8/1995GRN37650 CountryResort -bungalowPTNo.2712 landMukimofSetulDistrictofSerembanNegeriSembilanLotNo.15,Section11,BorneoHeights 39 Leasehold Residential 10.66 ) 20/9/1994GunongPenrissen (Expiring -bungalow )PadawanKuching 4.9.2192) land ) 40,947PangkalanAmpat ) LandDistrictof Future 4,829.70 ) 20/9/1994Sarawak Development ) ) TheHornbill GolfCourse& 162.60 8 32,065 27/6/2000 Golf&JungleClub ClubHotel

Lot4(Lot4756) JenanEstate,Kubang 331 Freehold Bungalowlots 53.45 ) 8/11/1995GeranNo.44342 Pasu,Kedah )Lot7GeranNo.7062 )Lot6534 112 Shopoffice 10.88 ) 45,070 8/11/1995GeranNo.25870 )Lot1818HM1820 )Lot1962HM1819 Proposed 214.54 )Lot503HM614 Mixed )Lot1710HM1833 DevelopmentLot11HM1672 Jenan,Kedah ClubHouse 6.48 2 7,704

Approx. ) 11/2/1999 CyberHeights 116 Freehold Villas 34.37 ) ) Proposed Approx. ) Mixed 26.23 ) 43,220 Development ) )



172

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) DateHSD59892 PalaceBeach 1 Leasehold Hotel 9.25 11 59,275 4/2/2002*P.T.No.16720 &Spa (expiringMukimofPetaling 20.3.2091)DistrictofPetalingSelangor

HSD59887 MinesWaterfront 1 Leasehold Commercial 12.05 11 102,802 28/8/2003P.T.No.16715 BusinessPark (expiring BuildingMukimofPetaling 20.3.2091)DistrictofPetalingSelangorHSD59886 GolfViewApartments 1 Leasehold Recreational 11.86 25,985 25/9/1998P.T.No.16714 (expiringMukimofPetaling 20.3.2091)DistrictofPetalingSelangorHSD59888 Fisherman’sWharf 1 Leasehold Recreational 1.77 ) 25/9/1998P.T.No.16716 (expiring )MukimofPetaling 20.3.2091) )DistrictofPetaling ) 14,097Selangor ) ) )HSD59890 MinesResortCityLake 1 Leasehold Recreational 153.40 ) 25/9/1998P.T.No.16718 (expiring )MukimofPetaling 20.3.2091) )DistrictofPetalingSelangorHSD2500 EquatorialHillResort 4 Freehold Apartments 0.07 11 461 12/11/2001P.T.No2129 CameronHighlandMukimofUluTelomDistrictofCameronHighlandsPahangDarulMakmurHSM9-93 PerdanaBeachResort 4 Freehold Apartments 0.09 9 459 21/5/2002PTNO.249 MukimPadangMatairatMukimofPadang LangkawiMatairatDistrictofLangkawiLangkawi,KedahDarulAmanHSD47623 LeisureBay,Penang 6 Freehold Apartments 0.11 17 819 7/7/2005LotNo.3177TanjungTokong DistrictTimurLaut


ANNUALREPORT2007

173

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) DateGeranNo.37112 CHDamansara 63 Freehold Bungalowlots 19.60 ) Lot826 )MukimofBatu Freehold ClusterBungalow 13.40 )DistrcitofKualaLumpur )118,367 14/11/200052000KualaLumpur Freehold CondoDevelopment 7.05 ) ) Freehold Commerciallots 3.20 ) ) Freehold FutureDevelopment 6.42 ) ) Freehold Clubhouse 2.96 )

Lot8242HM34157 MelakaLand Leasehold FutureMixed 62.10 15,039 14/4/2004Mukimof (expiring DevelopmentDurianTunggal 21.4.2103)DistrictofAlorGajahMelakaErf258 Extension5 1 Freehold Etikahouse 0.13 114 31/12/1997 482JQNorth WestProvince SouthAfricaErf910 Extension11 1 Freehold Corporatelodge 0.13 1,039 31/12/1999 482JQNorth WestProvince SouthAfricaErf470 Extension13 1 Freehold BoatClubhouse 8.37 9 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) ) 182 )Portion124 Extension13 1 Freehold BoatClubMarina 9.87 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) Erf1083 Extension10 1 Freehold Clubhouse 3.93 9 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) )Erf876 Extension12 1 Freehold Golfcourse 18.03 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) )Erf877 Extension12 1 Freehold Golfcourse 176.65 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) 15,617 )



174


Erf1084 Extension10 1 Freehold Recreation 5.86 ) 1/6/2003 482JQNorth facilities ) WestProvince ) SouthAfrica ) )Erf1205 Extension14 1 Freehold POS 0.29 ) 1/26/003 482JQNorth ) WestProvince ) SouthAfrica ) )Erf1269 Extension16 1 Freehold Parking 0.52 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) )Portion73 Extension17 1 Freehold None 10.74 ) 1/6/2003 482JQNorth ) WestProvince ) SouthAfrica ) 747 )Remainingextent Extension17 1 Freehold None 17.66 ) 1/6/2003ofportion77 482JQNorth ) WestProvince ) SouthAfrica )Erf1233 Extension8 1 Freehold None 0.12 555 1/6/2003 482JQNorth WestProvince SouthAfricaErf1261 Extension16 1 Freehold None 0.30 617 1/6/2003 482JQNorth WestProvince SouthAfrica

Erf1273 Extension16 1 Freehold None 0.14 637 1/6/2003 482JQNorth WestProvince SouthAfricaErf1275 Extension16 1 Freehold None 0.14 596 1/6/2003 482JQNorth WestProvince SouthAfricaErf1277 Extension16 1 Freehold None 0.13 551 1/6/2003 482JQNorth WestProvince SouthAfricaErf1258 Extension16 1 Freehold None 0.31 658 1/6/2003 482JQNorth WestProvince SouthAfrica


ANNUALREPORT2007

175

Approximate No. of Land Age of Net Book Revaluation*/ lots/ Area Building Value AcquisitionTitle Location/Address units Tenure Existing Use (Acres) (Years) (RM’000) DateErf1259 Extension16 1 Freehold None 0.27 637 1/6/2003 482JQNorth WestProvince SouthAfricaErf1260 Extension16 1 Freehold None 0.29 617 1/6/2003 482JQNorth WestProvince SouthAfricaErf1300 Extension9 1 Freehold None 0.13 675 1/6/2003 482JQNorth WestProvince SouthAfrica

Erf1302 Extension9 1 Freehold None 0.13 654 1/6/2003 482JQNorth WestProvince SouthAfricaErf1304 Extension9 1 Freehold None 0.13 637 1/6/2003 482JQNorth WestProvince SouthAfrica 6,301.77 1,310,100



176

NoticeOfAnnualGeneralMeeting

NOTICE ISHEREBYGIVENTHAT theTwenty-FourthAnnualGeneralMeetingofCountryHeightsHoldingsBerhadwillbe held at Unity I, Lower Ground Level, Palace of the Golden Horses, Jalan Kuda Emas, Mines Resort City, 43300 SeriKembangan,SelangorDarulEhsanonThursday,26June2008at11.30a.m.totransactthefollowingbusinesses:-

A G E N D A

As Ordinary Business

1. ToreceivetheAuditedFinancialStatementsforthefinancialyearended31December2007andtheReportsof theDirectorsandAuditorsthereon.

2. To approve the payment of Directors’ fees in respect of the financial year ended 31December2007.

3. Tore-electMr.MarkVictorRozariowhoretirespursuanttoArticle106oftheCompany’s

ArticlesofAssociation,andbeingeligible,hasofferedhimselfforre-election.4. Tore-electEnNikHassanBinNikMohdAminwhoretirespursuanttoArticle106ofthe

Company’sArticlesofAssociation,andbeingeligible,hasofferedhimselfforre-election.5. To re-electMr.ChewChongEuwho retirespursuant toArticle106of theCompany’s

ArticlesofAssociation,andbeingeligible,hasofferedhimselfforre-election.6. Tore-electMr.ChewChengKeatwhoretirespursuanttoArticle106oftheCompany’s

ArticlesofAssociation,andbeingeligible,hasofferedhimselfforre-election.7. Toconsiderandifthoughtfit,topassthefollowingresolutiontore-appointGeneralTan

Sri(Dr)MohamedHashimBinMohdAli(Rtd)asaDirectoroftheCompanywhoisretiringpursuanttoSection129oftheCompaniesAct,1965:-

“THATpursuanttoSection129oftheCompaniesAct,1965,GeneralTanSri(Dr)MohamedHashimBinMohdAli (Rtd)whohasattained theageof70yearsbeand ishereby re-appointedasaDirectoroftheCompanyandtoholdofficeuntiltheconclusionofthenextAnnualGeneralMeeting.”

8. Toconsiderandifthoughtfit,topassthefollowingresolutiontore-appointAcademician

TanSriDatukDr.OngSoonHockasaDirectoroftheCompanywhoisretiringpursuanttoSection129oftheCompaniesAct,1965:-

“THATpursuanttoSection129oftheCompaniesAct,1965,AcademicianTanSriDatukDr.OngSoonHockwhohasattainedtheageof70yearsbeandisherebyre-appointedasaDirectoroftheCompanyandtoholdofficeuntiltheconclusionofthenextAnnualGeneralMeeting.”

9. ToappointauditorsandtoauthorisetheDirectorstofixtheirremuneration.

NoticeofNominationpursuanttoSection172(11)oftheCompaniesAct,1965,acopyofwhichisannexedas“AnnexureA”hasbeenreceivedbytheCompanyforthenominationofMessrsDeloitteKassimChanwhohavegiventheirconsenttoact,forappointmentasauditorsandofintentiontoproposethefollowingordinaryresolution:-

“THAT Messrs Deloitte KassimChan be and are hereby appointed as Auditors of theCompanyinplaceoftheretiringAuditors,MessrsErnst&Youngtoholdofficeuntiltheconclusion of the next Annual General Meeting at a remuneration to be agreed uponbetweentheDirectorsandAuditors.”

(Ordinary Resolution 1)








ANNUALREPORT2007

177

As Special Business

To consider and if thought fit, with or without any modification, to pass the followingResolutions:-

10. Authority to Issue Shares Pursuant to Section 132D of the Companies Act, 1965

“THATpursuanttoSection132DoftheCompaniesAct,1965andsubjectalwaystotheapprovaloftherelevantauthorities,theDirectorsbeandareherebyempoweredtoallotandissuesharesfromtheunissuedsharecapitaloftheCompanyfromtimetotimeandupon such terms and conditions and for such purposes as the Directors may deem fitprovidedthattheaggregatenumberofsharesissuedpursuanttothisresolutiondoesnotexceed10%oftheissuedsharecapitaloftheCompanyforthetimebeingandthattheDirectorsbeandarealsoempoweredtoobtaintheapprovalforthelistingofandquotationfortheadditionalsharessoissuedontheBursaMalaysiaSecuritiesBerhadandthatsuchauthorityshallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”

11. Proposed Renewal of General Mandate for Recurrent Related Party Transactions And Proposed New Mandate for Additional Recurrent Related Party Transactions of a Revenue or Trading Nature

“THATsubjectalwaystotheListingRequirementsoftheBursaMalaysiaSecuritiesBerhad,approvalbeandisherebygiventotheCompanyand/oritssubsidiariestoenterintoandtogiveeffecttotherecurrentrelatedpartytransactionsofarevenueortradingnaturewiththeRelatedPartiesasspecifiedinSection3.2oftheCirculartoShareholdersdated4June2008(“Circular”).

ANDTHATamandatebeandisherebygrantedfortheCompanyand/oritssubsidiariestoenterintoadditionalrecurrentrelatedpartytransactionsofarevenueortradingnaturewiththeRelatedPartiesasspecifiedinSection3.2oftheCircularPROVIDEDALWAYSthat:-

i. thetransactionsarenecessaryforthedaytodayoperationsoftheGroup;

ii. thetransactionsareintheordinarycourseofbusinessandareonnormalcommercialterms which are not more favourable to the Related Parties than those generallyavailabletothepublicandthetransactionsareundertakenatarm’slengthbasisandarenotdetrimentaltotheminorityshareholdersoftheCompany;and

iii. disclosureismadeintheAnnualReportofthebreakdownoftheaggregatevalueoftransactionsconductedpursuanttotheshareholders’mandateduringthefinancialyear;

ANDTHATsuchapprovalshallcontinuetobeinforceuntil:

a) theconclusionof thenextAnnualGeneralMeeting (“AGM”)of theCompanyatwhichtimeitwilllapse,unlessbyaresolutionpassedatthesaidAGMwherebytheauthorityisrenewed;or

b) theexpirationoftheperiodwithinwhichthenextAGMoftheCompanyafterthatdateisrequiredtobeheldpursuanttoSection143(1)oftheCompaniesAct,1965(“theAct”)(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheAct);or

NoticeOfAnnualGeneralMeeting(Cont’d)



178

c) revokedorvariedbyresolutionpassedbytheshareholdersingeneralmeeting;

whicheverisearlier,

ANDFURTHERTHAT theDirectors of theCompanybe and are hereby authorised tocompleteanddoallsuchactsandthings(includingexecutingsuchdocumentsasmayberequired)astheymayconsiderexpedientornecessaryinthebestinterestoftheCompanytogiveeffecttothetransactionscontemplatedand/orauthorisedbythisresolution.”

12. Proposed Renewal of Authority for the Purchase of its Own Shares by the Company

“THAT subject always to the Companies Act, 1965 (“the Act”), the provisions of theMemorandumandArticlesofAssociationof theCompany, theListingRequirementsoftheBursaMalaysiaSecuritiesBerhad(“BursaMalaysia”)andtheapprovalsoftherelevantgovernmentaland/orregulatoryauthorities,theCompanybeandisherebyauthorisedtopurchase suchamountofordinary sharesofRM1.00each in theCompany (“ProposedShareBuy-Back”)asmaybedeterminedbytheDirectorsoftheCompanyfromtimetotime through theBursaMalaysiauponsuch termsandconditionsas theDirectorsmaydeemfitandexpedientintheinterestoftheCompanyprovidedthat:

(i) theaggregatenumberofsharespurchasedand/orheldpursuant to this resolutionshallnotexceedtenpercent(10%)ofthetotal issuedandpaid-upordinarysharecapitaloftheCompanyforthetimebeingquotedonBursaMalaysia.

(ii) an amount not exceeding the total audited retained profits of the Companyof RM30,772,000 and/or audited share premium reserves of the Company ofRM57,251,000 as at 31 December 2007, be allocated by the Company for theProposedShareBuy-Back.

(iii) at thediscretionof theDirectorsof theCompany, the sharesof theCompany tobepurchasedareproposedtobecancelledand/orretainedastreasurysharesandmaybedistributedasdividendsor resoldon theBursaMalaysiaor subsequentlycancelled.

ANDTHATtheDirectorsoftheCompanybeandareherebyempoweredtodoallactsandthingstogiveeffecttotheProposedShareBuy-BackANDTHATsuchauthorityshallcommenceimmediatelyuponpassingofthisordinaryresolutionuntil:

(a) the conclusion of the next Annual General Meeting (“AGM”) of the Companyfollowingthegeneralmeetingatwhichthisresolutionwaspassedatwhichtimetheauthorityshalllapseunlessbyordinaryresolutionpassedatageneralmeeting,theauthorityisrenewed,eitherunconditionallyorsubjecttoconditions;

(b) theexpirationoftheperiodwithinwhichthenextAGMafterthatdateisrequiredbylawtobeheld;or

(c) revokedorvariedbyordinaryresolutionoftheshareholdersoftheCompanyatageneralmeeting;

whicheveroccursfirst butnot so as toprejudice the completionofpurchase(s) by theCompany before the aforesaid expiry date and, in any event, in accordance withthe provisions of the guidelines issued by the Bursa Malaysia or any other relevantauthorities.



ANNUALREPORT2007

179

ANDFURTHERTHATauthoritybe and is herebyunconditionally andgenerally givento the Directors of the Company to take all such steps as are necessary or expedient(includingwithoutlimitation,theopeningandmaintainingofcentraldepositoraccount(s)under theSecurities Industry (CentralDepositories)Act,1991,and theentering intoallagreements,arrangementsandguaranteeswithanypartyorparties)toimplement,finaliseand give full effect to the Proposed Share Buy-Back with full powers to assent to anyconditions,modifications,revaluations,variationsand/oramendments(ifany)asmaybeimposedby the relevantauthoritiesandwith fullpower todoall suchactsand thingsthereafter(includingwithoutlimitation,thecancellationorretentionastreasurysharesofalloranypartofthesharesbought-back)inaccordancewiththeAct,theprovisionsoftheMemorandumandArticlesofAssociationoftheCompany,theListingRequirementsofBursaMalaysia,andallotherrelevantgovernmentaland/orregulatoryauthorities.”

13. Totransactanyotherbusinessofwhichduenoticeshallhavebeengiven.

ByOrderoftheBoard

HENG LEE PING (MAICSA 7039896)Secretary

SeriKembangan,SelangorDarulEhsan4June2008



Notes:

1. Amemberentitledtoattendandvoteatthemeetingisentitledtoappointoneormoreproxiestoattendandvoteinhisstead.AproxymaybutneednotbeamemberoftheCompanyandamembermayappointanypersontobehisproxywithoutlimitationandtheprovisionsofSection149(1)(a),(b)and(c)oftheCompaniesAct,1965shallnotapplytotheCompany.

2. Whereamemberappointsmorethanoneproxy,theappointmentsshallbeinvalidunlesshespecifiestheproportionsofhisholdingstoberepresentedbyeachproxy.

3. Ifnonameisinsertedinthespaceforthenameoftheproxy,theChairmanofthemeetingwillactastheproxy.

4. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointororhisattorneydulyauthorisedinwritingor,iftheappointorisacorporation,eitherunderitsCommonSealorunderthehandofanofficerorattorneydulyauthorised.

5. ThedulycompletedandsignedProxyFormmustbedepositedattheRegisteredOfficeoftheCompanyat8thFloor,Block A, The Mines Waterfront Business Park, No. 3, Jalan Tasik, The Mines Resort City, 43300 Seri Kembangan,SelangorDarulEhsan,Malaysianotlessthanforty-eight(48)hoursbeforethetimeappointedforholdingthemeetingoranyadjournmentthereof.ThelodgingoftheProxyFormwillnotprecludethememberfromattendingandvotinginpersonatthemeetingshouldthemembersubsequentlywishtodoso.


180

Explanatory Notes to Special Business:

1. TheproposedOrdinaryResolution9,ifpassed,willempowertheDirectorsoftheCompanytoallotandissuesharesinthecapitaloftheCompanyuptoanaggregateamountnotexceedingtenpercent(10%)oftheissuedcapitaloftheCompanyforsuchpurposesastheDirectorsconsiderwouldbeintheinterestoftheCompany.Thisistoavoidanydelayandcostinconveningageneralmeetingtoobtainshareholdersapprovalforsuchissueofshares.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireatthenextAGM.

2. TheproposedOrdinaryResolution10, ifpassed,willallowtheCompanyand/orof itssubsidiaries toenter into therecurrentrelatedpartytransactionsofarevenueortradingnatureintheordinarycourseofitsbusinessassetoutintheCirculartoShareholdersdated4June2008withtheRelatedPartiesmentionedthereinwhicharenecessaryfortheGroup’sdaytodayoperations.Theshareholders’mandateissubjecttorenewalonanannualbasis.

3. TheproposedOrdinaryResolution11,ifpassed,willempowertheDirectorsoftheCompanytopurchasetheCompany’ssharesofuptotenpercent(10%)oftheissuedandpaid-upsharecapitaloftheCompanyforthetimebeingquotedonBursaMalaysiabyutilizingthefundsallocatedwhichshallnotexceedthetotalretainedprofitsand/orsharepremiumof theCompany.Thisauthority,unless revokedorvariedatageneralmeeting,will expireat thenextAGMof theCompany.


ANNUALREPORT2007

181

StatementAccompanyingNoticeOfAnnualGeneralMeetingDetails of Directors standing for re-election/re-appointment are as follows:

TheDirectorswhoarestandingforre-election/re-appointmentattheTwenty-FourthAnnualGeneralMeetingareasfollows:

GeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)AcademicianTanSriDatukDr.OngSoonHockMr.MarkVictorRozarioEncikNikHassanBinNikMohdAminMr.ChewChongEuMr.ChewChengKeat

ThedetailsofGeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd),AcademicianTanSriDatukDr.OngSoonHock,Mr.MarkVictorRozario, EncikNikHassanBinNikMohdAmin,Mr.ChewChongEuandMr.ChewChengKeataredisclosedonpages4to8oftheAnnualReport,andtheirshareholdingsinformationarelistedonpage163oftheAnnualReport.

Tel: 603-89438811 Fax: 603-89413669

AnnexureA

PROXYFORM

No.ofordinarysharesheld

Notes:1. Amemberentitledtoattendandvoteatthemeetingisentitledtoappointoneormoreproxiestoattendandvoteinhisstead.Aproxy

maybutneednotbeamemberoftheCompanyandamembermayappointanypersontobehisproxywithoutlimitationandtheprovisionsofSection149(1)(a),(b)and(c)oftheCompaniesAct,1965shallnotapplytotheCompany.

2. Whereamemberappointsmorethanoneproxy,theappointmentsshallbeinvalidunlesshespecifiestheproportionsofhisholdingstoberepresentedbyeachproxy.

3. Ifnonameisinsertedinthespaceforthenameoftheproxy,theChairmanofthemeetingwillactastheproxy.4. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorhisattorneydulyauthorisedinwritingor,ifthe

appointerisacorporation,eitherunderitsCommonSealorunderthehandofanofficerorattorneydulyauthorised.5. ThedulycompletedandsignedFormofProxymustbedepositedattheRegisteredOfficeoftheCompanyat8thFloor,BlockA,TheMines

WaterfrontBusinessPark,No.3,JalanTasik,TheMinesResortCity,43300SeriKembangan,SelangorDarulEhsan,Malaysianotlessthanforty-eight(48)hoursbeforethetimeappointedforholdingthemeetingoradjournmentthereof.ThelodgingoftheFormofProxywillnotprecludethememberfromattendingandvotinginpersonatthemeetingshouldthemembersubsequentlywishtodoso.

I/We NRIC/PassportNo.

of

beingamember/membersofCountryHeightsHoldingsBerhadherebyappoint

NRIC/PassportNo. of

orfailinghim,theChairmanoftheMeetingasmy/ourproxytoattendandvoteforme/usonmy/ourbehalfattheTwenty-FourthAnnualGeneralMeetingoftheCompanytobeheldatUnityI,LowerGroundLevel,PalaceoftheGoldenHorses,JalanKudaEmas,MinesResortCity,43300SeriKembangan,SelangorDarulEhsanonThursday,26June2008at11.30a.m.,andanyadjournmentthereof.

AGENDA

1. ToreceivetheAuditedFinancialStatementsforthefinancialyearended31December2007andtheReportsoftheDirectorsandAuditorsthereon.

Ordinary Resolutions For Against

2. ToapprovethepaymentofDirectors’fees (Resolution1)

3. Tore-electthefollowingDirectors:- (i) Mr.MarkVictorRozario (Resolution2) (ii) EnNikHassanBinNikMohdAmin (Resolution3) (iii)Mr.ChewChongEu (Resolution4) (iv)Mr.ChewChengKeat (Resolution5)

4. Tore-appointGeneralTanSri(Dr)MohamedHashimBinMohdAli(Rtd)asDirector (Resolution6)

5. Tore-appointAcademicianTanSriDatukDr.OngSoonHockasDirector (Resolution7)

6. ToappointMessrsDeloitteKassimChanasAuditorsandtoauthorisetheDirectorstofixtheirremuneration. (Resolution8)

7. ToauthorisetheissueofsharespursuanttoSection132DoftheCompaniesAct,1965 (Resolution9)

8. ToapprovetheProposedRenewalofGeneralMandateforRecurrentRelatedPartyTransactionsandProposedNewMandateforAdditionalRecurrentRelatedPartyTransactionsofaRevenueorTradingNature. (Resolution10)

9. To approve the Proposed Renewal of Authority for the Purchase of its Own Shares by theCompany (Resolution11)

(Pleaseindicatewithan“X”inthespacesprovided,howyouwishyourvotetobecast.Ifyoudonotdoso,theproxywillvoteashethinksfit,orathisdiscretionorabstainfromvoting)

Signedthis dayof ,2008.

Signature/CommonSealofShareholder

AFFIXSTAMP

TheCompanySecretary Country Heights Holdings Berhad(119416-K)

8thFloor,BlockA,MINESWaterfrontBusinessPark, No3,JalanTasik,MINESResortCity, 43300SeriKembangan, SelangorDarulEhsan,Malaysia

Fold this flap for sealing

Then fold here

1st fold here

COUNTRY HEIGHTS HOLDINGS BERHAD8th Floor, Block A, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8943 8811Fax: 603-8941 1470Homepage: www.countryheights.com.my

Property DevelopmentDATO’ ONG CHONG SEK, Chief Executive Officer

COUNTRY HEIGHTS PROPERTY DEVELOPMENT BERHAD

COUNTRY HEIGHTS eMARKETING SERVICES SDN BHD

PECANWOOD RESORT & RESIDENTIAL ESTATEGround Floor, Block A, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8948 5555Fax: 603-8945 1477Email: [email protected]: http://properties.countryheights.com.my

Property InvestmentMS LEE SOW LIN, Chief Executive Officer

MINES WATERFRONT BUSINESS PARKRetail 6, Ground Floor, Block D, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8943 8811 Fax: 603-8943 1837Email: [email protected]: http://mwbp.mines.com.myContact Person: Mr. Vincent Chew, Head of Sales & Marketing

MALAYSIA INTERNATIONAL EXHIBITION & CONVENTION CENTRE (MIECC)Ground Floor, MIECC, Jalan Dulang, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8945 2055Fax: 603-8945 2155Email: [email protected]: http://miecc.mines.com.myContact Person: Mr. Jason Toh, Senior Manager

Hospitality, Leisure & HealthMR. STUART JAMES VENNER PACK, Chief Executive Officer

PALACE OF THE GOLDEN HORSESJalan Kuda Emas, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8946 4888Fax: 603-8943 2666Email: [email protected]: www.palaceofthegoldenhorses.com.myContact Person: Ms Sally Wong, General Manager

PALACE BEACH & SPAJalan Dulang, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel: 603-8943 6688Fax: 603-8943 5555Email: [email protected]: www.palacebeachandspa.com.myToll-Free Reservations:Malaysia : 1 800 88 6018Singapore: 800 601 1106Contact Person: Ms Sally Wong, General Manager

BORNEO HIGHLANDS RESORTGround & 1st Floor, Lot 11607-11608, Block 16, RH Plaza, Lorong Lapangan Terbang 1, 93250 Kuching, SarawakTel : 082-577 930 / 578 930Fax: 082-576 680Email: [email protected]: www.borneohighlands.com.myContact Person: Mr. Loh Leh Ching, Chief Executive Officer

PALACE VACATION CLUBc/o MINES Marketing Sdn Bhd10th Floor, Block C, MINES Waterfront Business Park, No.3, Jalan Tasik, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8941 1888Fax: 603-8945 3320Email: [email protected] Homepage: www.palacevacationclub.com Contact Person: Mr. Ricky Yip, General Manager

COUNTRY HEIGHTS HEALTH TOURISM SDN BHDLower Ground Floor, East Wing, Palace of the Golden Horses, Jalan Kuda Emas, MINES Resort City, 43300 Seri Kembangan, Selangor Darul EhsanTel : 603-8941 5833Fax: 603-8941 6163Email: [email protected] Homepage: www.ghhs.com.myContact Person: Ms Candy Yap, Executive Director

Corporate Directory

ANNUAL REPORT 2007

Co

untry Heights H

old

ings Berhad

119416-K

Annual R

epo

rt 2007

Country Heights Holdings Berhad 119416-K

8th Floor, Block A, MINES Waterfront Business Park3, Jalan Tasik, MINES Resort City, 43300 Seri KembanganSelangor Darul EhsanTel: 03-8943 8811 Fax: 03-8941 1470

www.countryheights.com.my

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Country Heights Holdings Berhad 2007 Annual Report

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Transcript of Country Heights Holdings Berhad 2007 Annual Report