CREST BUILDER HOLDINGS BERHAD -...

A N N U A L R E P O R T 2 0 0 7CREST BUILDER HOLDINGS BERHAD (573382-P)

Penthouse, The Crest, 3 Two Square, No. 2, Jalan 19/1, 46300 Petaling Jaya, Selangor Darul Ehsan, Malaysia.Tel : 603 7841 6000 Fax : 603 7841 6088 Email : [email protected]

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C O N T E N T S

2 CorporateProfile

4 Noticeof6thAnnualGeneralMeeting

7 StatementAccompanyingNoticeof6thAnnualGeneralMeeting

9 CorporateInformation

10 CorporateStructure

11 FinancialHighlights

12 Director'sProfile

14 Chairman'sStatement

17 ReportoftheAuditCommittee

20 StatementonCorporateGovernance

27 StatementonInternalControl

29 StatementonDirectors'Responsibility

30 FinancialStatements

102 ListofGroupProperties

104 AnalysisofShareholdings

Enclosed ProxyForm

� CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

�CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Corporate Profile

CBHB was incorporated in Malaysia under Companies Act, 1965 on 9 March 2002 as a public limited company. CBHB is principally an investment holding company and successfully undertaken a Corporate and Debt Restructuring Scheme which involved the listing status of MGR Corporation Berhad, (Special Administrators appointed) being transferred to CBHB upon completion of the restructuring exercise. CBHB was listed on the Main Board of Bursa Malaysia on 12 June 2003.

CBHB Group was established in 1985 and under the leadership of its founder Mr. Yong Soon Chow has since carved a name in the construction industry. With industry experience spanning two decades, the CBHB Group is a well-established player in the construction industry. It has a proven track record in infrastructure development, especially in the construction of roads and bridges, hospitals, schools and universities as well as commercial and residential buildings.

Since listing, CBHB has undergone extensive expansion programme and the subsidiaries in the Group’s stable of companies include Crest Builder Sdn Bhd, 3 Two Square Sdn Bhd, Crest Builder International Sdn Bhd, CB Land Sdn Bhd, Crestland Development Sdn Bhd, CBTech (M) Sdn Bhd, Nepfield Sdn Bhd, Crestland Project Management Sdn Bhd and Vertical Success Sdn Bhd.

Today, CBHB has diversified from its core construction business into other businesses. Construction aside, CBHB also offers design-and-build (D&B) services to its clients where it advises on buildings, technicalities as well as design. The Group’s mechanical and electrical division offers a series of wide range of mechanical and services. The Group has also diversified into property development, of which our maiden development projects is at the heart of Petaling Jaya. 3 Two Square, as it is known as, is a commercial development comprising retail shops and office, as well as a corporate office tower.

� CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Notice of 6th Annual General Meeting

NOTICEisherebygiventhatthe6thannualgeneralmeetingwillbeheld

Venue SimeDarbyConventionCentre 1A,JalanBukitKiara1 60000KualaLumpur

Day,dateandtime Tuesday,17June�008at9:�0a.m.

AGENDA

Ordinary business

1. Laying of audited accounts

To receiveandadopt thedulyauditedaccountsconsistingof theconsolidatedprofitand lossaccount,thebalancesheet,thereportsoftheDirectorsandauditorsforthefinancialyearended�1December�007,incompliancewithSection169(1)andSection17�(1)oftheCompaniesAct,1965(“Act")respectively.

2. Declaration of dividend

THATthepaymentofafirstandfinaldividendof7%or7senless�6%incometaxperordinaryshareinrespectofthefinancialyearended�1.1�.�007beherebyapproved.

3. Election of director

THATre-electionoftheManagingDirector,YongSoonChow,whoretiresinaccordancewithArticle79oftheCompany’sArticlesofAssociation,beherebyapproved


THATre-electionoftheSeniorIndependentNon-ExecutiveDirector,KeongChoonKeatwhoretiresinaccordancewithArticle79oftheCompany’sArticlesofAssociation,beherebyapproved


THATre-electionoftheIndependentNon-ExecutiveDirector,MohdKhasanBinAhmad,whoretiresinaccordancewithArticle79oftheCompany’sArticlesofAssociation,beherebyapproved


THATre-electionoftheExecutiveDirector,YongShangMingwhoretiresinaccordancewithArticle86oftheCompany’sArticlesofAssociation,beherebyapproved

7. Appointment of auditors

THATtheappointmentofMessrsGEPAssociates(AF10�0),CharteredAccountants,astheauditorsinaccordancewithArticle57oftheCompany’sArticlesofAssociationandpursuanttoSection17�(�)theActfortheensuingfinancialyearending�1December�008beconfirmedandthatthedirectorsbeauthorisedtofixtheremunerationoftheauditorspursuanttoSection17�(16)(a)oftheAct,beherebyapproved.

Resolution 1

Resolution 2

Resolution 3

Resolution 4

Resolution 5

Resolution 6

Resolution 7

5CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Notice of 6th Annual General Meeting (Cont'd)

Special business

8. Approval for payment of directors’ fees

THATthepaymentofRM�50,000asdirectors’feefortheyearended�1December�007(�006:RM�50,000) inaccordancewithArticle88oftheCompany’sArticlesofAssociationbeherebyapproved.

9. Authority for issue of shares pursuant to Section 132D of the Act.

THATpursuanttoSection1��DoftheActandsubjecttotheapprovalofallrelevantauthoritiesbeingobtained,theDirectorsbeempoweredtoissuesharesintheCompanyatanytimeanduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmay,intheirabsolutediscretiondeemfit,providedthattheaggregatenumberofsharesissuedpursuanttothisresolutiondoesnotexceed10%oftheissuedandpaidupcapitaloftheCompanyforthetimebeingandthatsuchauthorityshallcontinueinforceuntiltheconclusionofthenextannualgeneralmeetingbeherebyapproved.

10. Proposed renewal of shareholders’ mandate for existing recurrent related party transactions

of a revenue or trading nature and mandate for additional recurrent related party transactions of revenue or trading nature

THATtheshareholders’mandategrantedbytheshareholdersoftheCompanyon�6June�007

pursuanttoparagraph10.09oftheListingRequirementsoftheBursaMalaysiaSecuritiesBerhad,authorizing the Company and its subsidiaries (the“CBHB Group”), to enter into the RecurrentRelatedPartyTransactionsofarevenueortradingnaturewhicharenecessaryfortheCBHBGroup’sday-to-dayoperationsassetoutinparagraph�.�oftheCirculartoShareholdersdated�6May�008(“Circular”)withtherelatedpartiesmentionedtherein,beandisherebyrenewedandTHAT approvalbeandisherebygiventotheCompanytoenterintoadditionalRecurrentRelatedPartyTransactionsofarevenueortradingnaturewiththerelatedpartiesmentionedtherein,providedthat:-

(i) thetransactionsareintheordinarycourseofbusinessandonnormalcommercialterms

whicharenotmorefavourabletotherelatedpartiesthanthosegenerallyavailabletothepublicandarenottothedetrimentoftheminorityshareholdersoftheCompany;and

(ii) thedisclosureofthebreakdownaggregatevalueofthetransactionsconductedduringa

financialyearwillbedisclosedintheannualreportforthesaidfinancialyearbasedonthefollowinginformation:

i. thetypeoftheRecurrentRelatedPartyTransactionsmade;

ii. thenamesoftherelatedpartiesinvolvedineachtypeoftheRecurrentRelatedPartyTransactionsmadeandtheirrelationshipwiththeCompany.

ANDTHATtheauthorityconferredbysuchrenewedandgrantedmandateshallcontinuetobeinforceuntil:-

(i) theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompanyfollowingtheforthcomingAGMatwhichtheProposalisapproved,atwhichtimeitwilllapse,unlessbyaresolutionpassedattheAGM,themandateisagainrenewed;and

(ii) revokedorvariedbyresolutionpassedbytheshareholdersingeneralmeeting,whicheveristheearlier;

ANDTHATtheDirectorsoftheCompanybeandareherebyauthorisedtocompleteanddoallsuchactsandthingsastheymayconsiderexpedientornecessarytogiveeffecttotheProposal.

Resolution 8

Resolution 9

Resolution 10

6 CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Notice of 6th Annual General Meeting (Cont'd)

NOTICE OF DIVIDEND ENTITLEMENT

FurtherNOTICEisherebygiventhatafirstandfinaldividendof7%or7senless�6%incometaxperordinaryshareinrespectofthefinancialyearended�1December�007,ifapprovedbyshareholders,willbepaidon6August�008todepositorsregisteredintheRecordofDepositorsatthecloseofbusinesson15July�008.

Adepositorshallqualifyforentitlementonlyinrespectof:

(a) share transferred into the depositor’s securities account before�:00 noon on 15 July�008 in respect of ordinarytransfers;and

(b) sharesboughtontheBursaMalaysiaSecuritiesBerhadonacumentitlementbasisaccordingtotheRulesoftheBursaMalaysiaSecuritiesBerhad.

ByorderoftheBoard

CompanySecretariesHeng Chiang PoohFCIS(MAICSA70099��)Chiam Han TweeFCIS(MAICSA7009910)

Dated:�6May�008

Notes :-

1. AmemberoftheCompanyentitledtoattendandvoteatthemeetingisentitledtoappointnotmorethantwoproxiestoattendandvoteoninhisstead.AproxymaybutneednotbeamemberoftheCompany.AmembermayappointanypersontobehisproxywithoutlimitationandtheprovisionsofSection1�9(1)(a)andSection1�9(1)(b)oftheCompaniesAct,1965shallnotapply.

�. Shareholders’attentionisherebydrawntotheListingRequirementsoftheBursaMalaysiaSecuritiesBerhad,whichallowsamemberoftheCompanywhoisanauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act,1991,toappointatleastone(1)proxyinrespectofeachsecuritiesaccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidsecurities.

�. Whereamemberappointstwo(�)proxies,theappointmentshallbeinvalidunlesshespecifiestheproportionofhisshareholdingstoberepresentedbyeachproxy.

�. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorofhisattorneydulyauthorisedinwritingor,iftheappointerisacorporation,eitherunderitsCommonSealorunderthehandofaofficerorattorneydulyauthorised.

5. TheinstrumentappointingaproxymustbedepositedatNo.1�-�,Jalan�A/�7A,Section�,WangsaMaju,5��00KualaLumpurnotlessthan�8hoursbeforethetimesetforholdingforthemeetingoranyadjournmentthereof.

�CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T 200�

Statement Accompanying Notice of 6th Annual General Meeting

1. ORDINARY BUSINESS - RESOLUTION 2

The directors now recommend a first and final dividend of �% or � sen (RM0.0�) less 26% income tax per each ordinary share held in respect of the financial year ended 31 December 200�, giving rise to total net dividend for the financial year of 5.18 sen per ordinary share held.

2. ORDINARY BUSINESS - RESOLUTION 3, 4, 5 and 6

The particulars of the retiring Directors who are standing for re-election are set out in the relevant pages of the Annual Report as follows :-

Name of Directors Directors’ Profile Directors’ Shareholdings

1. Yong Soon Chow Page 12 Page 108

2. Keong Choon Keat Page 12 Page 108

3. Mohd Khasan Bin Ahmad Page 13 Page 108

4. Yong Shang Ming Page 12 Page 108

Details of Directors’ attendance at Board Meetings are set out in the Statement of Corporate Governance on Page 20 of the Annual Report.

3. SPECIAL BUSINESS - RESOLUTION 8

This authorisation by the general meeting would enable the payment of directors’ remuneration in accordance with Article 88 of the Company’s Articles of Association as follows :-

Article 88 Directors’ remuneration The Directors shall be paid by way of remuneration for their services such fixed sum (if any) as shall from time to time be

determined by the company in general meeting, and such remuneration shall be divided among the Directors in such proportion and manner as the Directors may determine. Provided always that:-

(a) fees payable to Directors who hold no executive office in the company shall be paid by a fixed sum and not by a commission on or percentage of profits or turnover;

(b) salaries payable to Directors who do hold an executive office in the Company may not include a commission on or percentage of turnover;

(c) fees payable to Directors shall not be increased except pursuant to a resolution passed at a general meeting, where notice of the proposed increase has been given in the notice convening the meeting;

(d) any fee paid to an Alternate Director shall be such as agreed between himself and the Director nominating him and shall be paid out of the remuneration of the latter.


Statement Accompanying Notice of 6th Annual General Meeting (Cont'd)

4. SPECIAL BUSINESS – RESOLUTION 9

ThisauthorisationwillempowertheDirectorstoissuesharesintheCompanyuptoanamountnotexceedingintotal10%oftheissuedsharecapital.Thisauthority,unlessrevokedorvariedatageneralmeeting,willbevaliduntiltheconclusionofthenextannualgeneralmeeting.

5. SPECIAL BUSINESS – RESOLUTION 10 TheProposedShareholders’Mandate,ifapprovedbytheshareholdersoftheCompany,andtherenewalthereofon

anannualbasis,willeliminatetheneedbytheCompanytoannounceand/orconveneseparategeneralmeetingsfromtimetotimetoseekshareholders’approvalfortheGrouptoenterintotheRecurrentRelatedPartyTransactionswithFarimaSdnBhd.Thiswouldreducesubstantialadministrativetime,inconvenienceandexpensesassociatedwiththeconveningofsuchmeetings,withouthowevercompromisingthecorporateobjectivesoftheGrouporadverselyaffectingthebusinessopportunitiesavailabletotheGroup.


REGISTERED OFFICE

No.1�-�,Jalan�A/�7ASection�,WangsaMaju5��00KualaLumpurTel:0�-�1�981�8Fax:0�-�1��1�8

PRINCIPAL PLACE OF BUSINESS

Penthouse,TheCrest�TwoSquareNo.�,Jalan19/1�6�00PetalingJayaSelangorDarulEhsanTel:0�-78�16000Fax:0�-78�16088E-mail:[email protected]

SHARE REGISTRAR

ShareWorks Sdn BhdNo.10-1,JalanSriHartamas8SriHartamas50�80KualaLumpurTel:0�-6�0111�0Fax:0�-6�01�1�1

AUDITORS

GEP Associates(A Member Firm of AGN International)CharteredAccountants(AF 1030)WismaGEPNo.�5,JalanPJU1/��ADataranPrima�7�01PetalingJayaSelangorDarulEhsanTel:0�-780��90Fax:0�-780��60�

PRINCIPAL BANKERS

CIMBBankBerhadEONBankBerhadHongLeongBankBerhadMalayanBankingBerhadOCBCBank(Malaysia)Berhad

STOCK EXCHANGE LISTING

BursaMalaysiaSecuritiesBerhad-MainBoardSector:Construction

BOARD OF DIRECTORS

Tengku Dato’ Sulaiman Shah bin Tengku Abdul Jalil Shah- Non-Executive Chairman

Yong Soon Chow- Managing Director

Koh Hua Lan- Executive Director

Lee Sooi Teng- Executive Director

Yong Shang Ming- Executive Director

Keong Choon Keat- Senior Independent Non-Executive Director

Mohd Khasan bin Ahmad- Independent Non-Executive Director

Kam Yong Kan- Independent Non-Executive Director

AUDIT COMMITTEE

Mohd Khasan bin Ahmad,ChairmanKeong Choon KeatKam Yong Kan

REMUNERATION COMMITTEE

Yong Soon Chow,ChairmanKeong Choon Keat Mohd Khasan bin Ahmad

NOMINATION COMMITTEE

Kam Yong Kan,ChairmanKeong Choon Keat Mohd Khasan bin Ahmad

OPTION COMMITTEE

Keong Choon Keat,ChairmanMohd Khasan bin AhmadYong Soon Chow

COMPANY SECRETARIES

Heng Chiang PoohFCIS (MAICSA 7009923)Chiam Han TweeFCIS (MAICSA 7009910)

Corporate Information

10 CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T 2007

Corporate Structure

Investment Holding

Crest Builder Sdn Bhd 110330-K

Construction 100%

CBTech (M) Sdn Bhd 508386-M

Mechanical & Electrical Engineering Services100%

3 Two Square Sdn Bhd 617273-X

Property Development 100%

CB Land Sdn Bhd 658719-D


Nepfield Sdn Bhd 592256-M


Vertical Success Sdn Bhd 691623-V


Crestland Project Management Sdn Bhd 659478-V

Project Management 100%

Crest Builder International Sdn Bhd 644441-T

Investment Holding 100%

Crestland Development Sdn Bhd 316852-A

Property Investment 100%


Financial Highlights

Financial Year End 2003RM

2004RM

2005RM

2006RM’000

2007RM’000

Revenue 205,316,155 266,290,835 253,006,459 318,266,499 365,766,124

Profit Before Taxation 25,892,037 25,293,365 20,194,397 31,460,369 52,810,181

Profit After Taxation 17,471,634 16,238,228 11,738,289 20,034,336 40,193,267

Profit attributable to shareholders[after deduction/(addition) of pre-acquisition profit/(loss)]

15,458,838 16,264,116 11,740,593 20,034,336 40,193,267

TotalNumberofShares 11�,6�7,�00 11�,7�9,500 11�,7�9,500 1��,750,�50 1��,911,�50

BasicEarningsperShare(sen) 18.59 1�.�0 10.�� 16.�9 ��.�6

Diluted Earnings per Share(after full conversion of ICULS, RCULS and Warrants)

16.75 1�.9� 9.69 – �1.6�

GrossDividend(%) �.0 �.0 �.0 5.0 7.0

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0

10,000

20,000

30,000

40,000

50,000(RM’000) (RM’000)

YEAR YEAR2003 2004 2005 2006 2007 2003 2004 2005 2006 2007

REVENUE PROFIT AFTER TAX

1� CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Director's Profile

Tengku Dato’ Sulaiman Shah Bin Tengku Abdul Jalil Shah [Non-Executive Chairman],aged5�,wasappointedtotheBoardon�6February�00�asExecutiveChairmanandhewas re-designated as the Non-Executive Chairman witheffectfrom1March�005.TengkuDato’SulaimanShahhasover�0yearsofexperience intheconstruction,printingadvertisingandseafreightindustries.Hewasappointedthe“OrangBesarIstana”intheyear1996withthebestowedtitleof“TengkuSetiaSelangor”.Inthefollowingyear,hewasalsoconferred“Dato’DiRajaSelangor”.Intheyear�007,hewasorderedDato’–SultanSharafuddinIdrisShah(D.S.I.S).HeisprimarilyresponsiblefortheorderlyconductandworkingoftheBoardandthepublicrelationandcommunicationaffairsoftheGroup.Heattendedfour(�)outofthefive(5)Boardmeetingsheldduring thefinancialyearended�1December�007.

Yong Soon Chow * [Managing Director], aged 56, wasappointedtotheBoardon�6February�00�.MrYongistheco-founderofCrestBuilderSdnBhdandisthedrivingforcebehindtheGroup.MrYongstartedhiscareerasanengineerwithJabatanKerjaRayafrom1977to1981.Inyear198�,heformedCrestBuilderSdnBhdandhassuccessfullyturned it into a profitable concern. Over the years, hehas accumulated invaluable experience and in depthknowledgeofcivilengineeringandconstructionindustryingeneralfromonthejobtraining.Heisresponsibleforthe overall business operations and the implementationofpoliciesandstrategiesoftheGroup.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

Koh Hua Lan [Executive Director],aged56,wasappointedtotheBoardon�6February�00�.MadamKohisaco-founderofCrestBuilderSdnBhdandshehasmorethan�0yearsofexperience infinancialandadministrationmanagement.Sheisprincipallyresponsiblefortheadministration,humanresourceandmanagementsupportservicesoftheGroup.Sheattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

Lee Sooi Teng [Executive Director],aged��wasappointedto the Board on �6 February �00�. He graduated fromTunkuAbdulRahmanCollegewithaDiplomainBuildingTechnologyin1989.HestartedhisservicewithCrestBuilderSdnBhdin1989asSiteSupervisor.HeleftCrestBuilderSdnBhdin1995topursuehisstudiesandobtainedaMasterDegree in Construction Management from Herriot-WattUniversity,UnitedKingdomin1996.HereturnedtoCrestBuilder Sdn Bhd in 1996 and assumed the position asGeneralManagerofProjectin1997.Hismainresponsibilityis overseeing all construction project undertaken by theGroupandtheliaisonwithclients,consultants,contractorsandrelevantauthoritiesonrelatedmatters.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

Yong Shang Ming * [Executive Director],aged�5wasappointedtotheBoardon�1January�008.HegraduatedfromCityUniversity,LondonwithaHonoursDegreeinCivilEngineeringHejoinedtheGroupinJune�00�astheSpecialAssistanttotheGroupManagingDirector.Heisinvolvedin the project procurement and implementation as wellas the business development ventures of the Group. Heisalsoinvolvedintheprojectplanning,developmentandmarketingoperationsoftheGroup’spropertydevelopmentprojects.Heattendednoneofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

Keong Choon Keat * [Senior Independent Non-Executive Director], aged 6�, was appointed to the Board on �5February�00�andisamemberoftheAuditCommittee.HeisamemberoftheMalaysianInstituteofAccountantsandaFellowMemberoftheInstituteofCharteredAccountantsinEnglandandWales.HewasattachedtoBristolMyers&CompanyLtd.inEnglandasanAccountantin1968.HethenleftandjoinedMalaysianTobaccoCompanyBerhadasanAccountantin1969.From197�to1999hewasattachedtoUMWHoldingsBhdwhereheheldvariousmanagementpositionsinthegroupbeforebeingpromotedtothepositionofanExecutiveDirectorin1988.Uponretirementin1999,hejoinedaconsultancyfirmprovidingoutplacementandcareermanagementconsultancyservicesinMalaysia.HealsoservesontheBoardofJTInternationalBerhad,ChinTeckPlantationsBerhad,NegeriSembilanOilPalmsBerhad,MalaysianAirlinesSystemBerhad,PacificmasBerhadandPacificInsuranceBerhad.Heattendedfour(�)outofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

1�CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Mohd Khasan Bin Ahmad * [Independent Non-Executive Director], aged �7, was appointed to the Board on �5February�00�andistheChairmanoftheAuditCommittee.He graduated from UniversitiTeknologi MARA with adegreeinAccountancy.HeisamemberoftheMalaysianInstituteofAccountants.HeservedinBankNegaraMalaysiaforaperiodofabout7years,thelast�yearsofwhichhewas seconded to the then Capital Issues Committee asitsPrincipalAssistantSecretary. Subsequently,hejoinedthe Securities Commission for a period of about 6 yearsand his last capacity was as an Assistant Manager in itsIssuesandInvestmentDivision.Duringthetenureofhisaboveappointments,hewasinvolvedinvariouscorporateexercisesrangingfrominitialpublicofferings,mergersandacquisitions,reversetake-overs,issuanceofbondsandothercapitalraisingexercises.Hethenjoinedtheprivatesectorin 1997 and held various senior management positions.He is also the Director ofTaWin Holdings Berhad, FarmBestBerhad,MOLAccessportalBerhad,WellcallHoldingsBerhadandRalcoCorporationBerhadHeattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

Director's Profile (Cont'd)

Kam Yong Kan [Independent Non-Executive Director],aged �9, was appointed to the Board on �6 February�00�andalsoamemberoftheAuditCommittee.Heisafellow member of the Association of Chartered CertifiedAccountants, United Kingdom, a Registered Accountantwith the Malaysian Institute of Accountants and anAssociatememberoftheMalaysianInstituteofTaxation.Hehasover18yearsexperienceinaudit,finance,corporatefinance, tax and treasury functions in property relatedindustries.Hewasattachedtoalistedpropertygroupfrom1991to�000andheldthepositionofaFinanceDirectorduringthelast�yearsofhistenureinthepropertygroup.Hethenformedhisconsultancyfirmandprovidescorporateadvisoryservicestoawiderangeofcorporateclients.Heattendedallofthefive(5)Boardmeetingsheldduringthefinancialyearended�1December�007.

FURTHER INFORMATION

AlltheDirectorsareMalaysian.

ExceptforcertainrecurrentrelatedpartytransactionofrevenuenatureortradingnaturewhicharenecessaryforthedaytodayoperationoftheGroupandforwhichTengkuDatoSulaimanShahBinTengkuAbdulJalilShahisdeemedtobeinterestedasdisclosedinpage�6.

YongSoonChowandKohHuaLanarehusbandandwife.YongShangMingisthesontoYongSoonChowandKohHuaLanandsiblingtoYongTiokChin.YongTiokChin(amajorshareholder)isthedaughtertoYongSoonChowandKohHuaLanandsiblingtoYongShangMing.Savedasdisclosedherein,therearenofamilyrelationshipsbetweentheDirectorsand/ormajorshareholdersoftheCompany,oranypersonalinterestorconflictofinterestinanybusinessarrangementinvolvingtheGroup.

ThesecuritiesholdingsoftheDirectorsaredisclosedonpage108.ByvirtueoftheirinterestinsharesoftheCompanyandunderSection6AoftheCompaniesAct1965,YongSoonChowandKohHuaLanaredeemedtobeinterestedinthesharesofallthesubsidiariestotheextendtheCompanyhasaninterest.

NoneoftheDirectorshasbeenconvictedofanyoffencewithinthepasttenyearsotherthantrafficoffencesifany.

Note :* Indicates Directors who retire according to the Articles of Association of the Company and are eligible to offer themselves

for re-election.


Chairman's Statement

Financial Performance

Fortheyearunderreview,TheGroup’sturnoverwasRM�65.8million,anincreaseof1�.9%fromRM�18.�millionrecordedinthepreviousfinancialyear.TheGroupregisteredapre-taxprofitofRM5�.8millionasagainstRM�1.5millioninthepreviousfinancialyear.ProfitaftertaxationattributabletotheshareholderswasRM�0.�million,whichishigherthanthepreviousyear’sprofitofRM�0.0million.

Theincreaseintheprofitswasmainlycontributedbytheproperty development division due to the completionof project. During the financial year, a gain arising fromchanges in the fair value of investment propertiesamountingtoRM�8.5millionwasrecognisedintheincomestatement.Thefairvalueisarrivedbyreferencetomarketevidence of transaction prices for similar properties andis performed by registered independent valuers havingappropriate recognised professional qualification andrecent experience in the location and category of thepropertiesbeingvalued.

On�7March�008,theMalaysianInstituteofAccountantsissued the FRSIC Consensus 5/�008 Accounting ForPremiumPaidForTransferOfListingStatus InAReverseTakeover Scenario.The Consensus requires payment forlistingstatustobeexpensedofftotheincomestatement.HenceincompliancewiththesaidConsensus,theGrouphadwrittenoffanamountofRM��.5million,thecarryingamountrepresentingthepremiumpaidfor listingstatusthatwaspreviouslyincludedasintangibleasset.

Consequently,theearningspersharestoodat��.�6senascomparedto16.�9senpreviously.

Dividends

The Board continues to maintain a reasonable balancebetweendividendpayoutsandthesettingasideoffundsforthefuturebusinessgrowthoftheGroup.

TheBoardhasrecommendedafirstandfinalgrossdividendof7.0senpershare,lessincometaxof�6%atthisAnnualGeneralMeeting.

Malaysian Economy and Development

Theglobaleconomyisexpectedtogrowataslowerpacein�008.TheimpactoftheUSsub-primemortgagecrisisandthewiderimpactofanyslowdownintheUSeconomyon global expansion remain to be seen. Domestically,Malaysianeconomyisexpectedtosustainagrowthrateofapproximately6%backedby theunderlyingstrengthinpublicandprivateinvestment.

Withgrowthintheconstructionsectorprojectedtohit6.�%in �008, the Government’s expansionary fiscal spendingintheconstructionsectorastheimplementationofNinthMalaysiaPlanprojectsgathermomentumbodeswellfortheconstructionindustry.TheGroupwillmaintainitsrelianceofprudentandcohesiveexpansionstrategyandendeavourto increase our order book to generate higher revenue.The�008Budgetand9MPannouncedbytheGovernmenthaveoutlinedvariouspro-activemeasuresthatcanhelptostrengthenthelocaleconomy.

In�007,thegovernmenttookstepstoencourageandinstilarobustpropertymarketbyintroducingamongstothers,thewaiverofRealPropertyGainTaxand50%discountonStampDuty forproperty transactionsbelowRM�50,000.Thiswouldaugurwell intranslatingintohighersalesforourupcominglaunchesprojectsinShahAlam.

The recent initiatives by the Government to speedup approval process will come as a boost to propertydevelopers.Withastrengthenedlegislativeenvironment,developersandindustryplayersshouldbeabletoconductbusinesswithgreaterconfidence.

On behalf of the Board of Directors, it

is my pleasure to present the Annual

Report and Financial Statement of the

Company for the financial year ended

31 December 2007.


Chairman's Statement (Cont'd)

Prospects

The Group will continue to focus on the search for newconstructionprojectsandparticipate insuitable tendersthat will be called. Continuous effort is taken to identifystrategicmeasuresforimprovingtheGroup’sconstructionmarginstoensurebettercontributiontothebottomline.

TheGrouphasbecomemorestringentonclienteleselectionandprojectsweembarkon.Wearefocussedonprocuringprojects of high quality background and esteemeddeveloperswithhighcredentialsasourbusinesspartners.We base our quality standards on stringent standardssuchastheSingaporeBuilding&ConstructionAuthority’sCONQUAS�1standard.TheGroupwillcontinuetofocusoncreatingabrandnamefortheGroupanddrawvaluefromourbusinessestobuildshareholder’svalue.

The property division has continued to contribute anencouraging result which posted a higher profit to theGroup.Theprincipalfactorsforthehigherprofitwerethecompletionofourpioneerpropertydevelopmentproject3 Two Square, which is a commercial project located atSection1�,PetalingJaya,SelangorDarulEhsan.Asatthedate of this statement, we have recorded sales of over95%ontheshopsandshopoffices.Ournewlycompletedbuilding‘TheCrest’aremainlytenantedout,andourcarpark operations have also started to contribute to ourbottomline.ThisformsanewsourceofrecurringincometotheGroup.

Thepropertydivision’ssecondprojectisknownasAlam Hijau.The development project is situated on part of apieceoflandofapproximately1�.88�hectaresintheMukimofDamansara,DistrictofPetalingintheStateofSelangorDarulEhsan.Phase1and�ofthisprojecthasbeenfullytakenup.Theremainingphasesarestillinplanningstagehavingyettoobtaindevelopmentapprovalfromrelevantauthorities.

TheGroup’sotherpropertyprojectsaresituatedatKelanaJayaandMontKiara.

In the medium term, apart from vying for tracts of landtocater fordevelopmentsegment, theGroupalsoplanstoundertakedevelopment intheKlangValleyona jointventure basis with landowners. In the longer term, theGroup hopes to establish a platform that offers broaderscope for earning enhancement, ranging from propertydevelopmenttopropertymanagementandinvestments.

Corporate Social Responsibilities

TheCBHBGrouphasalwaysbeenmindfulofitsCorporateSocial Responsibilities (“CSR”) towards the community,environment,itsemployeesandshareholders.

With our respect and pride in strong integrity, we valuethesynergyofouremployeeswhichnotonlyultimatelyenhances the company's performance but also create apositiveand dynamic working environment.We providetraining to our staff to improve their skills and developtheirpotentials.Weencouragetwo-waycommunicationsto employees at all level. Senior Management is heavilyinvolvedinthedaytodayoperations.Inductionseminarsareorganisedannuallytoalignthethinkinganddirectionof the Group for new staffs and employees to learn andadapttoourworkingculture.

Being in the construction and property developmentbusinesses,wearefullyawareoftheimpactouractivitieshave on the community and environment in whichwe operate.We constantly evaluate and develop workprocesses and management systems conforming to ISO9001:�000standards.TheGrouphas internalizedculturewhich emphasizes on quality occupational health andsafetyinourbusinessactivities.In�007,weobtainedtheDOSH 100% Accident Free Award. In addition, rigorousindependent audits are being conducted regularly toensure high standards of quality, safety and health aremaintained.

Moving forward, the Group aims to continue to explorenewavenuesthatareinlinewithourCSRdirectionwhichwillbenefitthesocietyandstakeholders.


Acknowledgement

OnbehalfoftheDirectorsandManagementofCrestBuilderHoldingsBerhad,Iwouldliketoextendoutappreciationtoallourshareholders,valuablecustomers,financiersandbusiness associates for their confidence and continuedsupportfortheGroup.

Myappreciation is furtherextendedtoallourdedicatedmanagement and staff who have worked untiringly inmaking�007anawesomerecordbreakingyear.

TheBoardandIwishtorecordoursincereappreciationtoExecutiveDirector,MrLooShenChangwhoresignedfromtheBoardon�1January�008.

IwouldalsoliketotakeopportunitytowelcomeonboardournewExecutiveDirectorMr.YongShangMing.

Lastly,mysincerethankstomyfellowDirectors for theirinvaluableadviceandguidancetotheBoard.

ChairmanTengku Dato’ Sulaiman Shah bin Tengku Abdul Jalil Shah

Chairman's Statement (Cont'd)


Report of the Audit Committee

COMPOSITION AND MEMBERS

ThecurrentAuditCommitteecomprisesthree(�)membersoftheBoardwhoareallIndependentNon-ExecutiveDirectors.AlltheIndependentNon-ExecutiveDirectors,MohdKhasanBinAhmad,KeongChoonKeatandKamYongKanaremembersoftheMalaysianInstituteofAccountants.BelowarethemembersoftheAuditCommitteeduringthefinancialyear:-

Directors Status

1. MohdKhasanBinAhmad-Chairman IndependentNon-ExecutiveDirector�. KeongChoonKeat SeniorIndependentNon-ExecutiveDirector�. KamYongKan IndependentNon-ExecutiveDirector�. LeeSooiTeng–resignedw.e.f.�1January�008 ExecutiveDirector

TERMS OF REFERENCE

TheAuditCommitteeisgovernedbythefollowingtermsofreference:-

1. Composition

(i) TheCommitteeshallbeappointedbytheBoardfromamongsttheirnumber(excludingAlternateDirectorsandshallconsistofnotfewerthanthree(�)non-executivemembersofwhomamajorityshallbeindependantdirectors.Atleastone(1)memberoftheAuditCommittee:-

(a) mustbeamemberoftheMalaysianInstituteofAccountants;or

(b) ifheisnotamemberoftheMalaysianInstituteofAccountants,hemusthaveatleast�years’workingexperienceand:

(aa) hemusthavepassedtheexaminationsspecifiedinPart1ofthe1stScheduleoftheAccountantsAct1967;or

(bb) hemustbeamemberofoneof theassociationsofaccountantsspecified inPart11of the1st

ScheduleoftheAccountantsAct1967.

TheChairmanshallbeanindependentnon-executiveDirectorelectedbythemembersoftheCommittee.

(ii) IntheeventofanyvacancyintheCommitteeresultinginthenon-complianceofparagraph(i)above,theBoardmustfillthevacancywithin�months.

(iii) ThetermofofficeandperformanceoftheCommitteeandeachofitsmembersshallbereviewedbytheBoardatleastonceevery�yearstodeterminewhethertheCommitteeanditsmembershavecarriedouttheirdutiesinaccordancewiththeirtermsofreference.

2. Authority

TheCommitteeisgrantedtheauthoritytoinvestigateanyactivityoftheCompanyanditssubsidiarieswithinitstermsofreference,andallemployeesaredirectedtoco-operateasrequestedbymembersoftheCommittee.TheCommitteeisempoweredtoobtainindependentprofessionalorotheradviceandretainpersonshavingspecialcompetenceasnecessarytoassisttheCommitteeinfulfillingitsresponsibility.Thecommitteeshallhavetheresourceswhicharerequiredtoperformitsduties.

3. Responsibility

TheCommitteeistoserveasafocalpointforcommunicationbetweennon-CommitteeDirectors,theexternalauditors,internalauditorsandtheManagementonmattersinconnectionwithfinancialaccounting,reportingandcontrols.TheCommitteeistoassisttheBoardinfulfillingitsfiduciaryresponsibilitiesastoaccountingpoliciesandreportingpracticesoftheCompanyandallsubsidiariesandthesufficiencyofauditingrelativethereto.ItistobetheBoard’sprincipalagentinassuringtheindependenceoftheCompany’sexternalauditors,theintegrityofthemanagementandtheadequacyofdisclosurestoshareholders.

IftheCommitteeisoftheviewthatamatterreportedtotheBoardhasnotbeensatisfactorilyresolvedresultingina breach of the Bursa Malaysia Securities Berhad’s (“Bursa Securities”) Listing Requirements, the Committee shallpromptlyreportsuchmattertotheExchange.


Report of the Audit Committee (Cont'd)

4. Functions

ThefunctionsoftheCommitteeareasfollows:-

(i) reviewwiththeexternalauditors,theirauditplan;

(ii) reviewwiththeexternalauditors,theirevaluationofthesystemofinternalcontrols;

(iii) reviewwiththeexternalauditors,theirauditreport;

(iv) reviewtheassistancegivenbytheCompany’sofficerstotheexternalauditors;

(v) reviewtheadequacyandcompetencyofthescope,functionsandresourcesoftheinternalauditfunctionsandthatithasthenecessaryauthoritytocarryoutitswork;

(vi) review the internal audit programme, processes, the results of the internal audit programme, processes orinvestigationundertakenandwhetherornotappropriateactionistakenontherecommendationsoftheinternalauditfunction;

(vii) reviewthequarterlyresultsandyearendfinancialstatements,priortotheapprovalbytheBoard,focusingparticularlyon:

(a) changesinorimplementationofmajoraccountingpolicychanges;(b) significantandunusualevents;(c) compliancewithaccountingstandardsandotherlegalrequirements;and(d) compliancewithBursaMalaysiaSecuritiesBerhad

(viii) reviewanyrelatedpartytransactionandconflictofinterestsituationthatmayarisewithintheCompanyorGroupincludinganytransaction,procedureorcourseofconductthatraisesquestionsofmanagementintegrity;and

(ix) consider the nomination, appointment and re-appointment of external auditors; their audit fees; and anyquestionsonresignationorremoval.

(x) reviewtheallocationofoptionsduringtheyearundertheCompany’sEmployeesShareOptionScheme(“ESOS”)toensurethatitisinaccordancewiththecriteriadeterminedbytheOptionCommitteeandincompliancewiththeESOSby-laws.

5. Meetings

(i) TheCommitteeistomeetatleastfourtimesayearandasmanytimesastheCommitteedeemsnecessary.

(ii) InordertoformaquorumforanymeetingoftheCommittee,themajorityofthememberspresentmustbeIndependentDirectors.

(iii) ThemeetingsandproceedingsoftheCommitteearegovernedbytheprovisionsoftheArticlesofAssociationoftheCompanyregulatingthemeetingsandproceedingsoftheBoardsofarasthesameareapplicable.

(iv) Thedirector/personresponsibleforthefinancialmanagementoftheparentcompanyandtheheadofinternalauditshallnormallyattendmeetingsoftheCommittee.Thepresenceofarepresentativeoftheexternalauditorswillberequestedifrequired.OtherdirectorsorseniormanagementmayattendanyparticularAuditCommitteemeetingonlyattheAuditCommittee'sinvitation.

(v) Uponrequestbytheexternalauditors,theChairmanoftheCommitteeshallconveneameetingoftheCommitteetoconsideranymatterstheexternalauditorsbelieveshouldbebroughttotheattentionoftheDirectorsormembersoftheCompany.

(vi) Atleasttwiceayear,theCommitteeshallmeetwiththeexternalauditorswithoutthepresenceofanyexecutivedirector.


Report of the Audit Committee (Cont'd)

6. Secretary and minutes

ThesecretaryoftheCommitteeshallbetheCompanySecretary.MinutesofeachmeetingaretobepreparedandsenttotheCommitteemembers,andtheCompany’sDirectorswhoarenotmembersoftheCommittee.

MEETINGS

TheAuditCommitteeconvened5meetingsinrespectforfinancialyearended�1December�007.Theattendanceforthemeetingswereasfollows:- No. of Meetings No. of Meetings Members Attended Held During Tenure

1. MohdKhasanBinAhmad-Chairman 5 5�. KeongChoonKeat � 5�. KamYongKan 5 5�. LeeSooiTeng–resignedfromthecommitteew.e.f.�1January�008 5 5

SUMMARY OF ACTIVITIES

Forthefinancialyearunderreview,theAuditCommitteecarriedout itsdutiesassetout inthetermsofreference.TheCommitteeconvenedfive(5)meetingstoreviewthefollowing:-

• TheannualfinancialstatementspriortosubmissiontotheBoardofDirectorsforconsiderationandapproval;• TheunauditedQuarterlyFinancialResultsforfourquartersinyear�007forreleasetotheBursaMalaysiaSecurities

Berhad;• TheRecurrentRelatedPartyTransactionsandRelatedPartyTransactionsoftheCompany;• TheRiskManagementFrameworkandreviewofinternalcontrol;• TheStatementofCorporateGovernanceandInternalControlStatementfordisclosureinAnnualReportyear�006;• Reviewoftheinternalauditreportforfinancialyear�006&�007;andimplementationofrecommendations;• TheinternalandexternalauditplanningmemorandumsandprogrammesoftheInternalandExternalAuditorsfor

thefollowingyearaswellastherecommendationoftheirrespectivefeestotheBoard;• ConsiderandrecommendtotheBoardofDirectorsthereappointmentofexternalandinternalauditors;• Therecommendationsbytheexternalauditorsinrespectofcontrolweaknessesnotedduringthecourseoftheir

audit;• TheallocationofoptimusundertheCompany'sESOSschemetoensureitscompliancewithBylaws.

Themeetingswereappropriatelystructuredthroughtheuseofagendasandmeetingpapers,whichweredistributedtomemberswithsufficientnotification.

INTERNAL AUDIT FUNCTION

TheCompanyhasanout-sourcingarrangementwithanindependentprofessionalfirmtoprovideinternalauditserviceswhichassiststheAuditCommitteeinthedischargeofitsfunctions.TheInternalAuditoristoprovideindependentandobjectivereportsontheorganization’smanagementrecords,accountingpoliciesandcontrolstotheAuditCommittee.Suchaudits/reviewsalsoensureinstitutedcontrolsareappropriateandareeffectivelyappliedtoachieveacceptablerisksexposures.

Duringthefinancialyear,theInternalAuditorconductedindependentreviewsandevaluatedriskexposuresrelatingtotheGroup’sgovernance,operationsandinformationsystemasfollows:-

• Reliabilityandintegrityoffinancialandoperationalinformation.• Effectivenessandefficiencyofoperations.• Safeguardingofassets.• Compliancewithpoliciesandprocedures,laws,regulationsandcontractsi.e.reasonablyensuringconformityand

adherencetothesematters.

TheInternalAuditoralsoestablishedfollow-upaudits/reviewstomonitorandtoensurethatinternalaudit’srecommendationshave been effectively implemented. Reports, including where relevant, action plans agreed with the operational levelmanagement,arecirculatedtoSeniorManagementandaretabledattheAuditCommitteeMeeting.

Duringthefinancialyear,theinternalauditactivitieshavebeencarriedoutaccordingtotheinternalauditplanwhichhasbeenapprovedbytheAuditCommittee.

�0 CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Statement on Corporate Governance

TheBoardofDirectorsremainscommittedtoachievingandmaintainingthehigheststandardsofcorporategovernancethroughouttheGroup.TheBoardviewscorporategovernanceassynonymouswithfourkeyconcepts;namelytransparency,accountability,integrityaswellascorporateperformance.

TheBoardisfullycommittedtothemaintenanceofhighstandardsofcorporategovernancebysupportingandimplementingtheprescriptionsoftheprinciplesandbestpracticessetoutinParts1and�respectivelyoftheMalaysianCodeonCorporateGovernance(the“Code”).Additionally,theBoardcontinuallyreviewstheGroup’scorporategovernanceprocessesandmakesadjustmentsasmaybeappropriate.Thekeyintentistoadoptthesubstancebehindgoodgovernanceandnotmerelytheform,withtheaimofensuringboardeffectivenessinenhancingshareholdervalue.

TheBoardispleasedtoprovidethefollowingstatement,whichoutlinesthemaincorporategovernancepracticesthatwereinplacethroughoutthefinancialyearunlessotherwisestated.

PRINCIPLE STATEMENT

ThefollowingstatementsetsouthowtheCompanyhasappliedtheprinciplesinPart1oftheCode.

A. DIRECTORS

The Board

TheGrouprecognizestheimportantroleplayedbytheBoardofDirectorsinthestewardshipofitsdirectionandoperationsandultimatelytheenhancementoflongtermshareholdervalue.Tofulfillthisrole,theBoardisresponsiblefortheoverallcorporategovernanceoftheGroup,includingitsstrategicdirection,establishinggoalsformanagementandmonitoringtheachievementofthesegoals.

TheBoardhasaformalscheduleofmattersreservedtoitselffordecision,whichincludestheoverallGroupstrategyanddirection,acquisitionanddivestmentpolicy,approvalofmajorcapitalexpenditureprojectsandsignificantfinancialmatters.ThescheduleensuresthatthegovernanceoftheGroupisinitshands.

Meetings

TheBoardordinarilymeetsatleastfour(�)timesayearatquarterlyintervalswithadditionalmeetingsconvenedwhenurgentandimportantdecisionsneedtobetakenbetweenthescheduledmeetings.Duringthefinancialyear,theBoardmetonfive(5)occasions,whereitdeliberateduponandconsideredavarietyofmattersincludingtheGroup’sfinancialresults,majorinvestmentsandstrategicdecisions,thebusinessdirectionoftheGroupandcorporategovernancematters.

DetailsoftheattendanceoftheDirectorsattheBoardMeetingsareasfollows:-

Directors Number of meetings attended

(i) TengkuDato’SulaimanShahBinTengkuAbdulJalilShah �/5(ii) YongSoonChow 5/5(iii) KohHuaLan 5/5(iv) LeeSooiTeng 5/5(v) LooShenChang(resignedw.e.f�1Jan�008) 5/5(vi) KeongChoonKeat �/5(vii) MohdKhasanBinAhmad 5/5(viii) KamYongKan 5/5(ix) YongShangMing(appointedw.e.f�1Jan�008) –

WhereapotentialofconflictariseintheGroup’sinvestment,projectsoranytransactionsinvolvingDirector’sinterest,suchDirectorisrequiredtodeclarehisinterestandabstainfromfurtherdiscussionandthedecisionmakingprocess.

�1CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007

Statement on Corporate Governance (Cont'd)

Board Balance

AsatthedateofthisstatementtheBoardhaseight(8)members,comprisingfour(�)Non-ExecutiveDirectorsandfour(�)ExecutiveDirectors.Three(�)oftheeight(8)DirectorsareIndependentNon-ExecutiveDirectors,whichcomplieswithparagraph15.0�oftheListingRequirementsthatrequiresatleasttwoDirectorsorone-thirdoftheboardoftheCompany,whicheveristhehigher,tobeindependentDirectors.AbriefprofileofeachDirectorispresentedonpages1�to1�ofthisAnnualReport.

ThereisacleardivisionofresponsibilitybetweentheChairmanandtheManagingDirectoroftheGroupinordertoprovideforbalanceofpowerandauthority.

TheChairmanisresponsibleforensuringtheBoardeffectivenessandconductwhilsttheManagingDirectorhasanoverallresponsibility over the operating units, organizational effectiveness and implementation of the Board’s policies anddecisions.

AlthoughalltheExecutiveDirectorshaveanequalresponsibilityfortheGroup’soperations,thepresenceoftheIndependentNon-ExecutiveDirectorsontheBoardfulfillsapivotalroleinensuringcorporateaccountability,astheyprovideunbiasedandindependentviews,advices,opinionsandjudgmentstotakeintoaccountoftheinterests,notonlyoftheGroupbutalsotheinterestoftheshareholders,employees,customers,suppliersandthemanycommunitiesinwhichtheGroupconductsbusiness.TheIndependentNon-ExecutiveDirectorsareactivelyinvolvedinthevariousBoardCommittees.Theyprovidebroaderviews,independentassessmentsandopinionsonmanagementproposalssponsoredbytheExecutiveDirectors.

ThecompositionoftheBoardprovidesaneffectiveblendofentrepreneurship,businessandprofessionalexpertiseingeneralmanagement,finance,corporateaffairs,legalandtechnicalareasoftheindustriesinwhichtheGroupisinvolvedin.Akeystrengthofthisstructurehasbeenthespeedofdecisionmaking.

Board Committees

Whereappropriate,mattershavebeendelegatedtoBoardCommittees,allofwhichhavewrittenconstitutionsandtermsofreferencetoassisttheBoardindischargingitsdutiesandresponsibilities.TheBoardwillthenreceivethereportsoftheirproceedingsanddeliberationsinitsscheduledBoardmeetings.

(i) Audit Committee

TheAuditCommitteewhosecompositionmeetstherevisedListingRequirementsofBursaMalaysiaSecuritiesBerhad,i.e.AllmembersareNon-ExecutiveDirectorsandamemberthatisaqualifiedaccountant.TheprimaryobjectiveoftheAuditCommitteeistoassisttheBoardofDirectorsinfulfillingitsresponsibilitiesrelatingtoaccountingandreportingpracticesoftheGroup.TheAuditCommitteeReportissetoutonpages17to19.TheAuditCommitteeisabletoobtainexternalprofessionaladviceandtoinviteoutsiderswithrelevantexperiencetoattenditsmeetingwhennecessary.

(ii) Nomination Committee TheNominationCommitteehasbeenchargedwithidentifyingandrecommendingnewnomineestotheBoardaswell

ascommitteesoftheBoardofCrestBuilderHoldingsBerhad.However,theBoardmakesalldecisionsonappointmentsafterconsideringtherecommendationsoftheCommittee.

TheCommitteewillreviewtherequiredmixofskills,experienceandotherqualitiesincludingcorecompetencieswhichNon-ExecutiveDirectorsshouldbringtotheBoard.

ThemembersoftheNominationCommittee,allofwhomareIndependentNon-ExecutiveDirectorsareasfollows:-

(i) KamYongKan(Chairman)(ii) KeongChoonKeat(iii) MohdKhasanbinAhmad

During the financial year, one (1) meeting was held and was attended by all members of the NominationCommittee.

�� CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007


(iii) Remuneration Committee

TheRemunerationCommitteeisresponsiblefordevelopingtheGroup’sremunerationpolicyanddeterminingtheremunerationpackagesoftheExecutiveDirectorsoftheGroup.TheRemunerationCommitteeproposes,subjecttotheapprovaloftheBoard,theremunerationandtermsandconditionsofserviceandtheremunerationtobepaidtoeachDirectorforhisservicesasamemberoftheBoardaswellasCommitteeoftheBoard.

ThemembersoftheRemunerationCommitteeareasfollows:

(i) YongSoonChow(Chairman)(ii) KeongChoonKeat(iii) MohdKhasanbinAhmad

During the financial year, one (1) meeting was held and was attended by all members of the RemunerationCommittee.

(iv) Option Committee TheOptionCommitteewasestablishedon15March�007.TheOptionCommitteewasestablishedtoadministerthe

Group’sEmployeeShareOptionScheme(“ESOS”)inaccordancewiththeBy-LawsoftheESOSandsuchmannerasitshalldeemfitand,withsuchpowersanddutiesasareconferreduponitbytheBoardofDirectors.

ThemembersoftheOptionCommitteeareasfollows:-

(i) KeongChoonKeat(Chairman)(ii) MohdKhasanbinAhmad(iii) YongSoonChow

Duringthefinancialyear,one(1)meetingwasheldandwasattendedbyallmembersoftheOptionCommittee.

Supply of Information

AllscheduledmeetingsheldduringthefinancialyearwereprecededwithaformalagendaissuedbytheCompanySecretaryinconsultationwiththeChairmanandtheManagingDirector. Theagendaforeachmeetingwasaccompaniedbytheminutesofprecedingmeetingsof theBoardandBoardCommittees, reportsonGroupfinancialperformance, industrytrends,businessplansandproposals,quarterlyresultannouncementsandotherrelevantinformation.TheBoardpapersarecomprehensiveandencompassallmaterialaspectsofthemattersbeingconsidered,enablingtheBoardtolookatbothquantitativeandqualitativefactorssothatinformeddecisionsaremade.AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary.Directorsareinformedandawarethattheymaytakeindependentprofessionaladvice,ifnecessaryandappropriateinfurtheranceoftheirduties,attheexpenseoftheGroup.

��CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T �007


Appointments and Re-elections to the Board

TheNominationCommitteeisresponsibleformakingrecommendationsforanyappointmentstotheBoard.Inmakingtheserecommendations,theNominationCommitteeconsiderstherequiredmixofskillsandexperiencewhichtheDirectorsshouldbringtotheBoard.

AspartoftheprocessofappointingnewDirectors,theBoardensuresthatnewDirectorsareprovidedwithanorientationandeducationprogramme.SaveandexceptforYongShangMing,whowasappointedtotheBoardon�1January�008,allDirectorshaveattendedtheMandatoryAccreditationProgramme(MAP).TheMAPforYongShangMingisscheduledon�7&�8May�008.

TheboardacknowledgestheamendmentstotheListingRequirementsofBursaMalaysia(“CEPAmendments”)whichstatedthatfromyear�005onwards,theBoardofDirectorsoflistedcompanieswillassumetheonusofdeterminingoroverseeingthetrainingneedsoftheirDirectors.Duringtheyear,theDirectorshaveattendedvarioustrainingprogrammes,seminarsandbriefingstokeepabreastoftherelevantnewlawsandregulationschangesinbusinessenvironmentanddevelopmentsincorporategovernanceandriskmanagement.TheDirectorswillcontinuetoundergootherrelevanttrainingprogrammestoequipthemselveswiththeknowledgetodischargetheirdutiesmoreeffectively.InaccordancewiththeCompany’sArticlesofAssociation,allDirectorswhoareappointedbytheBoardaresubjecttore-electionbyrotationbyshareholdersatthefirstopportunityaftertheirappointment.TheArticlesalsoprovidethatatleast1/�oftheremainingDirectorsbesubjecttore-electionbyrotationateachAnnualGeneralMeeting,providedthatallDirectorsincludingtheManagingDirectorshallretirefromofficeatleastonceeverythreeyearsbutshallbeeligibleforre-election.

B. DIRECTORS’ REMUNERATION

TheobjectiveoftheGroup’sRemunerationPolicy istoattractandretaintheDirectorsrequiredtoleadandcontroltheGroupeffectively.Generally,theremunerationofeachDirectorreflectsthelevelofresponsibilityandcommitmentthatgoeswiththeBoardCommitteemembership.InthecaseofExecutiveDirectors,thecomponentpartsoftheremunerationarestructuredsoastolinkrewardstoindividualandtheGroupperformance.

TheRemunerationCommitteeshallrecommendtotheBoardtheframeworkoftheExecutiveDirectors’remunerationandtheremunerationpackageforeachExecutiveDirectoroftheGroup.TheRemunerationCommitteealsoreviewsandrecommendsfortheBoard’sapprovalallotherDirector’sfees.Inaddition,theCompanyreimbursesreasonableexpensesincurredbytheseDirectorsinthecourseoftheirdutiesasDirectors.IndependentNon-ExecutiveDirectorsarepaidattendancefeesforeachBoardorBoardCommitteemeetingstheyattend.

Disclosure

TheBoardhasconsidereddisclosureofdetailsof theremunerationofeachDirector. TheBoard isoftheviewthatthetransparencyandaccountabilityaspectsofcorporategovernanceasapplicabletoDirectors’Remunerationareappropriatelyservedbythe“banddisclosure”asrequiredbytheListingRequirements.

Theremuneration/feesreceivedbytheDirectorsfromtheGroupforthefinancialyearended�1December�007asfollows:-

Salary Band Executive Director Non-Executive Director (Number of Directors) (Number of Directors)

Lessthan50,000 – ��00,001to�50,000 1 –�50,001to�00,000 � –550,000to600,000 1 –

AggregateremunerationofDirectorsiscategorizedintoappropriatecomponents:-

Salaries and/or Directors’ Fees Other Emoluments Total (RM) (RM) (RM)

ExecutiveDirectors 80,000 1,��,�7� 1,�0�,�7�Non-ExecutiveDirectors 170,000 – 170,000Total �50,000 1,��,�7� 1,�7�,�7�



C. SHAREHOLDERS

Dialogue between the Company and Investors

TheGroupvaluescommunicationwithitsshareholdersandinvestorsanddoesthisthroughtheAnnualReport,AnnualGeneralMeetingandCorporateAnnouncements.Allenquiriesmadearenormallydealtwithaspromptlyaspracticable.

TheCompanyalsoholdsbriefingswithresearchanalysts,fundmanagersandinvestorstoexplaintheGroup’sstrategies,performanceandmajordevelopmentsandtheBoardplanstoconductregulardialogueswithinstitutionalinvestors,fundmanagersandanalystswiththeaimoffosteringmutualunderstandingoftheGroup’sobjectives.

The Annual General Meeting

TheCompanyhasusedtheAnnualGeneralMeetingasaforumofcommunicationwithitsshareholders.TheBoardencouragesparticipationfromshareholdersbyhavingaquestionandanswersessionduringtheAnnualGeneralMeetingwherebytheDirectorsareavailabletodiscussaspectsoftheGroup’sperformanceanditsbusinessactivities.Eachitemofspecialbusinessincludedinthenoticeofthemeetingisaccompaniedbyafullexplanationoftheeffectsofaproposedresolution.SeparateresolutionsareproposedforsubstantiallyseparateissuesatthemeetingandtheChairmandeclaresthenumberofproxiesreceived,bothforandagainsteachseparateresolution,whereappropriate.

D. ACCOUNTABILITY AND AUDIT

(a) Financial Reporting

The Board aims to provide and present a balanced and meaningful assessment of the Group’s financialperformanceandprospectsattheendofthefinancialyear,primarilythroughtheannualfinancialstatements,quarterlyannouncementofresultstoshareholdersaswellastheChairman’sstatementintheAnnualReport.

TheDirectorsconsiderthatinpreparingthefinancialstatements,theGrouphasusedappropriateaccountingpolicies,consistentlyappliedandsupportedbyreasonableandprudentjudgmentsandestimates.AllaccountingstandardswhichtheBoardconsiderstobeapplicablehavebeencompliedwith.

TheBoard isassistedbytheAuditCommitteetooverseetheGroup’sfinancial reportingprocessesandthequalityofitsfinancialreporting.

(b) Internal Control

TheBoardofDirectorsacknowledgesresponsibilityformaintainingasoundsystemofinternalcontrolandforreviewingitsadequacyandintegrity.Thesystemofinternalcontrolisdesignedtosafeguardtheshareholders’investmentsandtheGroup’sassets,byitsnaturecanonlymanageratherthaneliminateriskoffailuretoachievebusinessobjectivesandinherentlycanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.

TheBoardofDirectors regardriskmanagementasan integralpartof thebusinessoperations. Duringtheyear,managersintheGrouphaveattendedaseriesofbriefingsonriskmanagementwhichwerefacilitatedbyexternalconsultantstoraisethelevelofknowledgeofriskmanagementamongstmanagerstoenhancetheirunderstandingoftheriskswhichpotentiallyaffecttheachievementoftheirrespectiveoperatingunit’sbusinessobjectives.

InformationontheGroup’sinternalcontrolispresentedintheStatementonInternalControllaidoutonpage�7ofthisAnnualReport.



D. ACCOUNTABILITY AND AUDIT (CONT'D) (c) Relationship with Auditors

ThroughtheAuditCommittee,theGrouphasestablishedatransparentandappropriaterelationshipwiththeGroup’sauditors,bothexternalandinternal,inseekingprofessionaladviceandensuringcompliancewiththeaccountingstandardsinMalaysia.InrelationtotheFinancialStatement,theroleoftheAuditCommitteeinrelationtotheexternalauditorsarecontainedintheAuditCommitteeReportsetoutonpages17to19ofthisAnnualReport.

STATEMENT OF COMPLIANCE WITH THE BEST PRACTICE OF CODE

TheCompanyiscommittedtoachievinghighstandardofcorporategovernancethroughouttheGroupandtothehighestlevelofintegrityandethicalstandardsinallofitsbusinessdealings.TheBoardconsidersthatithascompliedthroughoutthefinancialyearwiththeBestPracticesassetoutintheCode,unlessotherwisestated.

StatementmadeinaccordancewiththeresolutionoftheBoardofDirectorsdated�6April�008.

ADDITIONAL COMPLIANCE INFORMATION

InconformancewithBursaSecuritiesListingRequirements,thefollowinginformationisprovided:-

1. Utilisation of Proceeds

TheCompanydidnotimplementanyfund-raisingproposal,whetherinvolvingtheissueofsecuritiesorotherwiseduringthefinancialyear.

2. Share Buy-Back

TheCompanydidnothaveSharesBuy-Backforthefinancialyear.

3. Exercise of Options, Warrants or Convertible Securities

Duringthefinancialyearended�1December�007,161,000optionswereexercisedinrelationtotheEmployeesShareOption.

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

TheCompanydidnotsponsoranyADRorGDRProgrammeduringfinancialyear.

5. Imposition of Sanctions/Penalties

Therewerenosanctions/penaltiesimposedontheCompanyand/oritssubsidiaries,Directorsormanagementarisingfromanysignificantbreachofrules/guidelines/legislationsbytherelevantregulatoryauthorities.

6. Non-Audit Fees

Non-auditfeesamountingtoRM�,800werepaidtotheexternalauditorsforthefinancialyearended�1December�007.

7. Profit Estimate, Forecast or Projection

TheCompanydidnotreleaseanyprofitestimate,forecastorprojectionduringthefinancialyear.



ADDITIONAL COMPLIANCE INFORMATION (CONT'D)

8. Profit Guarantee

TherewasnoprofitguaranteegivenbytheCompanyduringthefinancialyear.

9. Material Contracts (Recurrent Related Party Transactions)

Saveasdisclosedhereunder,therewerenomaterialcontractsenteredintobytheCompanyanditssubsidiarieswhichinvolvedDirectors’andMajorShareholders’interestsduringthefinancialyear.

Recurrent Related Party Transactions

Related Party Contracting Party Nature of Transacted Value Transaction for Financial Year Ended 31.12.2007 (RM)

FarimaSdnBhd CrestBuilderSdnBhd AwardofContract 80,7�5,008 (personconnectedtoTDSS) (Constructionand completionof buildingwork) GrandlandCorporationSdnBhd CrestBuilderSdnBhd Officerental �6,000 (personconnectedtoYSC&KHL) GrandlandCorporationSdnBhd CBTECH(M)SdnBhd OfficeRental 1�,000 (personconnectedtoYSC&KHL) GrandlandCorporationSdnBhd �TwoSquareSdnBhd Officerental 108,000 (personconnectedtoYSC&KHL)

10. Revaluation Policy

TherevaluationPolicyonlandedpropertiesoftheCompanyanditssubsidiariesisdisclosedinNote�-�totheFinancialStatements.

11. Variation in Results

Thereisavariancebetweentheunauditedresults,whichwasannouncedon�6February�008,andtheauditedresultsoftheGroupforthefinancialyearended�1December�007assummarisedbelow:-

Unaudited Audited Variance RM'000 RM'000 RM'000 Group'snetprofitfortheyear 7�,6�1 �0,19� (��,��8)

Explanation of Major AdjustmentOn�7March�008,theMalaysianInstituteofAccountantsissuedtheFRSICConsensus5/�008AccountingForPremiumPaidForTransferOfListingStatusInAReverseTakeoverScenario(AcquisitionOfTheListingStatusOfACompanyThatWasNotItselfAGoingConcern).TheConsensusrequirespaymentforlistingstatustobeexpensedofftotheincomestatement.

HenceincompliancewiththesaidConsensus,theGrouphadwrittenoffanamountofRM��,�50,999.1�, thecarryingamountrepresentingthepremiumpaidforlistingstatusthatwaspreviouslyincludedasintangibleasset.


Statement on Internal Control

The Board’s Responsibilities

In relation to internal control, pursuant to the requirements under the Malaysian Code of Corporate Governance forcompanieslistedonBursaMalaysiaSecuritiesBerhad[“BursaMalaysia”],theBoardofDirectors(“theBoard”)acknowledgestheirresponsibilityundertheBursaMalaysiaListingRequirementsto:

• Identifyprincipalrisksandensureimplementationofappropriatecontrolmeasurestomanagetherisk.

• Reviewtheadequacyandintegrityoftheinternalcontrolsystemandmanagementinformationsystemsandsystemsforcompliancewithapplicablelaws,regulations,rules,directivesandguidelines.

Itshouldbenotedthataninternalcontrolsystemisdesignedtomanagerisksratherthaneliminatethem,andcanprovideonlyreasonablebutnotabsoluteassuranceagainstanymaterialmisstatementorloss.

TheBoardconfirmsthatthereisanongoingriskmanagementprocessestablishedtoidentify,evaluate,andmanagesignificantriskstoeffectivelymitigatetherisksthatmayimpedetheachievementofCrestBuilderGroupofCompanies(“theGroup”)businessandcorporateobjectives.TheBoardreviewstheprocessonaregularbasistoensurepropermanagementofriskandmeasuresaretakentomitigateanyweaknessesinthecontrolenvironment.

The Group’s System of Internal control

InstrivingtooperateasystemofinternalcontrolthatwilldrivetheGrouptowardsitsgoals,theBoardreliesuponbalancedmonitoringandreviewingofthesystembytheManagementCommitteeandAuditCommitteerespectively.

Management CommitteeTheManagementCommitteeoverseestheday-to-dayoperationsandconductoftheGroup’sbusinesses.Scheduledmeetingsareheldatoperationalandmanagementlevelstoidentify,discussandresolvebusinessandoperationalissues.TheseincludescheduledmanagementmeetingsatGroupandindividualsubsidiarylevels,projectmanagersmeetingsandsitemeetings.MinutesofthesemeetingsandmanagementreportsareescalatedtotherelevantExecutiveDirectorsonatimelybasis.PeriodicmeetingsareheldaspartofanongoingprocesstoreviewandassesstheadequacyandeffectivenessoftheGroup’sriskmanagementandcontrolsandtoensurethatanyshortcomingsidentifiedareaddressedonatimelybasis.

Audit CommitteeTheAuditCommitteereceivedreportsfromtheinternalandexternalauditorsonaregularbasis.TheGrouphasanout-sourcingarrangementwithanindependentprofessionalfirminrelationtoitsinternalauditfunction.Theinternalauditfunctionadoptsarisk-basedapproachwhichfocusesontheprincipalrisksaffectingthekeybusinessprocessesoftheGroup.Periodicscheduledinternalauditvisitshavebeencarriedoutinaccordancewiththeapprovedinternalauditplan.

TheinternalauditfunctionisresponsibleforundertakingregularandsystematicreviewoftheinternalcontrolstoprovidetheAuditCommitteeandtheBoardwithsufficientassurancethatthesystemsofinternalcontrolareeffectiveinaddressingtherisksidentified.Onahalfyearlybasis,internalauditorssubmitauditreportsandplanstatusforreviewandapprovalby the Audit Committee. Included in the reports are recommended corrective measures on risks identified, if any, forimplementationbytheManagement.

TheexternalauditorsprovideassuranceintheformoftheirannualstatutoryauditofthefinancialstatementsoftheGroup.AnyareasforimprovementidentifiedduringthecourseofstatutoryauditbytheexternalauditorsarebroughttotheattentionoftheAuditCommitteethroughmanagementletters,orarearticulatedatAuditCommitteemeetings.


Statement on Internal Control (Cont'd)

Enterprise Risk Management FrameworkTheenterpriseriskmanagementframeworkprevalentintheGroupwassetupin�00�withtheassistanceofaprofessionalfirmofconsultants.Theformalisationoftheenterpriseriskmanagementframeworkinvolveddevelopingtheriskprofilewhereprincipalbusinessrisks,whichcouldaffecttheachievementofthestrategicbusinessobjectiveoftheGroup,aresystematicallyidentified,evaluatedandmitigated.

ARiskManagementCommitteewasformalizedin�006.ItcarriesoutitsresponsibilitiestoidentifyandcommunicatetotheBoardofDirectorsthecriticalrisks(presentandpotential)thattheGroupfaces,anychangesintheriskprofileandthemanagementactionplanstomanagetheserisks.

Other Features of the Group’s System of Internal ControlOtherfeaturesoftheGroup’ssystemofinternalcontrolincludethefollowing:• QualityPolicyandQualityObjectiveswhichclearlyoutlinedtheGroup’sdirection• Clearorganisationstructurewithdelineatedreportinglines• ClearlydefinedobjectivesandtermofreferenceofthevariousCommitteesestablishedbytheBoard.• FrequentvisitstothejobsitesbyExecutiveDirectorsandSeniorManagement• ProcessandproceduresinaccordancewiththerequirementsofMSISO9001:�000certification• StaffHandbookavailableforreferenceTheBoardrecognisesthattheGroupoperatesinadynamicbusinessenvironmentandthattheGroup’sinternalcontrolsystem must be responsive to changes in the business environment and continuously evolves to support its businessobjectives.Thereviewofallcontrolprocedureswerecontinuouslycarriedoutthroughouttheperiodunderreviewtoensureaneffectiveandefficientsystemofinternalcontrol.TheBoardremainscommittedtowardscontinuousimprovementsandenhancementsofitssystemofinternalcontrolandwill,whennecessary,putinplaceactionplanstoensurethatthereisincreasedcertaintyoftheachievementofbusinessobjectives,thusenhancingshareholders’value.

ThisStatementismadeinaccordancewiththeresolutionoftheBoardofDirectorsdated�6April�008.


Statement on Directors' ResponsibilityPursuant to paragraph 15.27(a) of the listing requirements of Bursa Malaysia Securities Berhad

AsrequiredundertheCompaniesAct,1965(“Act”),theDirectorsofCrest Builder Holdings Berhadhavemadeastatementexpressinganopiniononthefinancialstatements.TheBoardisoftheopinionthatthefinancialstatementshavebeendrawnupinaccordancewithapplicableapprovedaccountingstandardsinMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyforthefinancialyearended�1December�007.

Intheprocessofpreparingthesefinancialstatements,theDirectorshavereviewedtheaccountingpoliciesandpracticestoensurethattheywereconsistentlyappliedthroughouttheyear.Incaseswherejudgementandestimatesweremade,theywerebasedonreasonablenessandprudence.

Additionally,theDirectorshavereliedonthesystemofinternalcontrolstoensurethattheinformationgeneratedforthepreparationofthefinancialstatementsfromtheunderlyingaccountingrecordsisaccurateandreliable.

ThisstatementismadeinaccordancewitharesolutionoftheBoardofDirectorsdated�6April�008.

F I N A N C I A L S T A T E M E N T S

31 Directors' Report

38 Statement By Directors / Statutory Declaration

39 Auditors' Report

40 Consolidated Balance Sheet

41 Consolidated Income Statement

42 Consolidated Statement of Changes in Equity

43 Consolidated Cash Flow Statement

45 Balance Sheet

46 Income Statement

47 Statement of Changes in Equity

48 Cash Flow Statement

49 Notes to the Financial Statements


Directors' Report

TheDirectorshavepleasureinpresentingtheirreportandtheauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended�1December�007.

PRINCIPAL ACTIVITIES TheCompanyisprincipallyengagedasaninvestmentholdingcompany. TheprincipalactivitiesoftheSubsidiaryCompaniesaresetoutinNote6tothefinancialstatements. Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear. RESULTS

GROUP COMPANY RM RM Profitattributabletoshareholders/Profitaftertaxation �0,19�,�67 ��6,��7Retainedearningsbroughtforward 5�,5�6,10� 15,560,7�1 Profitavailableforappropriation 9�,7�9,�70 15,887,168Dividends (�,516,89�) (�,516,89�)

Retainedearningscarriedforward 88,�1�,�78 11,�70,�76

DIVIDENDS Sincetheendofthepreviousfinancialyear,afirstandfinaldividendof5sengrossperordinarysharelessincometaxat�7%amountingtoRM�,516,89�inrespectoffinancialyearended�1December�006waspaidon8August�007. TheDirectorsnowrecommendafirstandfinaldividendof7sengrossperordinarysharelessincometaxat�6%inrespectofthefinancialyearended�1December�007which,subjecttotheapprovalofthemembersattheforthcomingAnnualGeneralMeetingoftheCompany,willbepaidtoshareholderswhosenamesappearintheRecordofDepositorsonadatetobedeterminedbytheDirectors.Basedontheoutstandingissuedandpaid-upsharecapitaloftheCompanyasat�1December�007of1��,911,�50ordinaryshares, thefinaldividendamounts toRM6,�18,61� (5-18sennetperordinaryshare).Suchdividend,ifapprovedbytheshareholderswillbeaccountedforintheshareholders'equityasanappropriationofretainedearningsinthefinancialyearending�1December�008.

RESERVES AND PROVISIONS Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthanthosedisclosedinthefinancialstatements. ISSUE OF SHARES Duringthefinancialyear,theissuedandpaid-upsharecapitaloftheCompanywasincreasedfrom1��,750,�50to1��,911,�50bywayoftheissuanceof161,000newordinarysharesofRM1-00eachpursuanttotheCompany'sEmployeeShareOptionScheme("ESOS"). ThenewordinarysharesissuedduringthefinancialyearrankparipassuinallrespectswiththeexistingordinarysharesoftheCompany.


Directors' Report (Cont'd)

ICULS On�5February�00�,theCompanyissued18,500,000of�year�%-7%ICULS�00�/�006atanominalvalueofRM1-00eachforthepurposeofacquiringthelistingstatusofMGRCorporationBerhad. Upto1�May�00�,atotalof8,500,000ICULShadbeenconvertedinto8,500,000newordinarysharesofRM1-00eachfullypaidupataconversionpriceofRM1-00pershare.NoICULSwasconvertedsubsequentlyuptoitsdateofmaturity. Atthedateofmaturityof��February�006,theremainingoutstanding10,000,000ICULShavebeenautomaticallyconvertedinto10,000,000newordinarysharesofRM1-00eachfullypaidataconversionofRM1-00pershare. DetailsoftheICULSaresetoutinNote�7tothefinancialstatements.

WARRANTS 2003 / 2013 On�5February�00�,theCompanyissuedarenounceablerightsissueof��,000,000warrantstoentitledshareholdersatanissuepriceofRM0-�0perwarrant,onthebasisof1-008warrantsforeveryfour(�)existingsharesheldontheentitlementdate. Nowarrantswereconvertedduringthefinancialyear. Asat�1December�007,thetotalnumberofwarrantswhichremainunconvertedamountedto��,999,050units. DetailsofthewarrantsaresetoutinNote�8tothefinancialstatements.

EMPLOYEE SHARE OPTION SCHEME On1�March�007,approvalwasgrantedbytheshareholdersattheExtraordinaryGeneralMeetingheldfortheestablishmentofCrestBuilderHoldingsBerhadEmployeeShareOptionScheme("ESOS").TheESOSisgovernedbytheby-lawsapprovedbytheshareholdersattheExtraordinaryGeneralMeeting.TheESOSwasimplementedandcameintoeffecton19April�007andistobeinforceforaperiodoffive(5)years,expiringon18April�01�. TheESOSCommitteeappointedbytheBoardofDirectorstoadministertheESOS,mayfromtimetotimeofferoptionstoeligibleemployeesoftheGrouptosubscribefornewordinarysharesofRM1-00eachintheCompany. ThesalientfeaturesoftheESOSareasfollows:- (a) Themaximumnumberofsharestobeofferedshallnotexceed15%oftheissuedandfullypaid-upsharecapitalof

theCompanyatanypointoftimeduringtheexistenceoftheESOS.

(b) EligiblepersonsfortheESOSarefulltimeconfirmedemployeesoftheGroupwhohavebeenemployedforaperiodofatleastsix(6)months,andDirectorsoftheGroupwhohavebeenappointedforaperiodofatleastthree(�)monthsandtheentitlementhavebeenapprovedbytheshareholdersattheCompanyingeneralmeeting.

(c) Subjecttoparagraph(d)below,nooptionshallbegrantedforlessthan100shares.

(d) IntheeventofanyalterationinthecapitalstructureoftheCompanyexceptforcertainexemptions,adjustmentswillbemadetotheoptionpriceand/orthenumberofsharesinrespectofoptionsgrantedbutnotexercised,suchthatthegranteewillbeentitledtothesameproportionoftheissuedandpaid-upsharecapitaloftheCompanypriortotheeventgivingrisetosuchalteration.


EMPLOYEE SHARE OPTION SCHEME (CONT'D)

(e) Thepriceatwhichthegranteeisentitledtosubscribeforeachnewordinaryshareshallbethehigherofthefollowing:-

(i) atadiscountofnotmorethan10%fromtheweightedaveragemarketpriceoftheordinarysharesforthefive(5)marketdaysasshowninthedailyofficiallistissuedbytheBursaMalaysiaSecuritiesBerhadimmediatelyprecedingthedateofoffer;or

(ii) theparvalueoftheordinaryshares.

(f ) Theoptiongrantedmaybeexercisedatanytimewithinaperiodoffive(5)yearsfrom19April�007.

InformationinrespectofthenumberofshareoptionsgrantedundertheESOSisasfollows:-

Number of share options 2007 2006 At1January – –Granted 6,780,000 –Exercised (161,000) –Lapsedduetoresignation (�89,500) –

At�1December 6,1�9,500 –

ThemovementofoptionsoverunissuedordinarysharesofRM1-00eachoftheCompanygrantedundertheESOSduringthefinancialyearareasfollows:-

Number of share options Date of offer Option price 1 / 1 / 2007 Granted Exercised Lapsed 31 / 12 / 2007 19/�/�007 RM1-00 – 6,780,000 161,000 �89,500 6,1�9,500

OtherthantheDirectorswhoseinterestaredisclosedseparatelyintheDirectors'Interest,thelistofeligibleemployeeswhoweregrantedoptionsunderESOSareasdisclosedinNote�7tothefinancialstatements.

DIRECTORS TheDirectorsinofficesincethedateofthelastreportare:- TENGKUDATO'SULAIMANSHAHBINTENGKUABDULJALILSHAH YONGSOONCHOW KOHHUALAN(f ) LEESOOITENG LOOSHENCHANG(Resignedw.e.f.�1January�008) YONGSHANGMING(Appointedw.e.f.�1January�008) KEONGCHOONKEAT MOHDKHASANBINAHMAD KAMYONGKAN InaccordancewithArticle79oftheCompany'sArticleofAssociation,YONGSOONCHOW,KEONGCHOONKEATandMOHDKHASANBINAHMADretirefromtheboardbyrotationattheforthcomingannualgeneralmeetingand,beingeligible,offerthemselvesforre-electionrespectively. YONGSHANGMINGbeingappointedtotheBoardafterthelastannualgeneralmeetingretiresinaccordancewithArticle86oftheCompany'sArticlesofAssociationattheforthcomingannualgeneralmeetingand,beingeligible,offershimselfforre-election.



DIRECTORS' INTERESTS ThefollowingDirectorswhoheldofficeattheendofthefinancialyearhad,accordingtotheregisterrequiredtobekeptunderSection1��oftheCompaniesAct,1965,interestinordinarysharesanddebentures,andoptionsoversharesoftheCompanyanditsrelatedcorporations,asstatedbelow:-

Number of ordinary shares of RM1-00 each At At 1 / 1 / 2007 Bought Sold 31 / 12 / 2007 COMPANY

DIRECT INTEREST YONGSOONCHOW ��,�18,000 – – ��,�18,000KOHHUALAN(f ) �,9�5,500 – – �,9�5,500LEESOOITENG �00,000 – – �00,000KEONGCHOONKEAT �0,000 – – �0,000KAMYONGKAN �0,000 – – �0,000

Number of ordinary shares of RM1-00 each At At 1 / 1 / 2007 Bought Sold 31 / 12 / 2007COMPANY INDIRECT INTEREST TENGKUDATO'SULAIMANSHAH BINTENGKUABDULJALILSHAH^ 6,807,9�9 – – 6,807,9�9YONGSOONCHOW** 11,610,808 – – 11,610,808LEESOOITENG* 1�,000 – – 1�,000KEONGCHOONKEAT* �0,000 – – �0,000

Number of warrants At At 1 / 1 / 2007 Bought Sold 31 / 12 / 2007

COMPANY DIRECT INTEREST YONGSOONCHOW 7,999,916 – – 7,999,916KOHHUALAN(f ) 1,�00,000 – – 1,�00,000 INDIRECT INTEREST TENGKUDATO'SULAIMANSHAH BINTENGKUABDULJALILSHAH^ �,000,000 – – �,000,000YONGSOONCHOW* 1,�00,000 – – 1,�00,000 ^ HeldbyacompanyinwhichtheDirectorhasinterest* Heldbyspouse** Heldbyspouseanddependent




DIRECTORS' INTERESTS (CONT'D)

Option over ordinary shares of RM1-00 each At At 1 / 1 / 2007 Granted Exercised 31 / 12 / 2007 COMPANY'S ESOS TENGKUDATO'SULAIMANSHAH BINTENGKUABDULJALILSHAH – �00,000 – �00,000YONGSOONCHOW – 1,000,000 – 1,000,000KOHHUALAN(f ) – 500,000 – 500,000LEESOOITENG – 500,000 – 500,000LOOSHENCHANG – 500,000 – 500,000KEONGCHOONKEAT – 100,000 – 100,000MOHDKHASANBINAHMAD – 100,000 – 100,000KAMYONGKAN – 100,000 – 100,000 ByvirtueoftheirinterestsinthesharesoftheCompanyandpursuanttoSection6AoftheCompaniesAct,1965,YONGSOONCHOWwasalsodeemedinterestedinthesharesofalltheSubsidiaryCompaniestotheextenttheCompanyhasaninterest. Otherthanasdisclosedabove,noneoftheotherDirectorsinofficeattheendofthefinancialyearhasanyinterestinthesharesanddebenturesoftheCompanyanditsrelatedcorporationsduringthefinancialyear. DIRECTORS' BENEFITS Sincetheendofthepreviousfinancialyear,noDirectoroftheCompanyhasreceivedorbecomeentitledtoreceiveanybenefits(otherthanabenefitincludedintheaggregateamountofemolumentsreceivedordueandreceivablebytheDirectorsshowninthefinancialstatements,orthefixedsalaryofafull-timeemployeeoftheCompany)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththeDirectororwithafirmofwhichtheDirectorisamember,orwithacompanyinwhichtheDirectorhasasubstantialfinancialinterestexceptasdisclosedinNote��tothefinancialstatements. ExceptforthebenefitsundertheCompany'sESOS,neitherduringnorattheendofthefinancialyear,didtheresubsistanyarrangementtowhichtheCompanywasaparty,wherebytheDirectorsmayacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.

OTHER STATUTORY INFORMATION (a) BeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:-

i) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofallowance for doubtful debts, and had satisfied themselves that there were no known bad debts and thatadequateallowancehadbeenmadefordoubtfuldebts;and

ii) toensurethatanycurrentassets,whichwereunlikelytorealisetheirbookvalues intheordinarycourseofbusinesshavebeenwrittendowntotheirestimatedrealisablevalue.


OTHER STATUTORY INFORMATION (CONT'D) (b) Atthedateofthisreport,theDirectorsarenotawareofanycircumstanceswhichwouldrender:-

i) itnecessarytowriteoffanybaddebtsortheallowancefordoubtfuldebtsinthefinancialstatementsofthe

GroupandoftheCompanyinadequatetoanysubstantialextent;or

ii) the values attributed to the current assets in the financial statements of the Group and of the Companymisleading.

(c) At the date of this report, the Directors are not aware of any circumstances which have arisen which renderadherencetotheexistingmethodsofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

(d) Atthedateofthisreport,theDirectorsarenotawareofanycircumstances,nototherwisedealtwithinthisreportorthefinancialstatementsoftheGroupandoftheCompanywhichwouldrenderanyamountstatedintherespectivefinancialstatementsmisleading.

(e) Asatthedateofthisreport,theredoesnotexist:- i) anychargeontheassetsoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyear

whichsecurestheliabilitiesofanyotherperson;or

ii) anycontingentliabilityinrespectoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyearexceptasdisclosedinNote�0tothefinancialstatements.

(f ) IntheopinionoftheDirectors:- i) nocontingentliabilityorotherliabilityhasbecomeenforceable,orislikelytobecomeenforceablewithinthe

periodoftwelvemonthsaftertheendofthefinancialyear,whichwillormayaffecttheabilityoftheGroupandoftheCompanytomeettheirobligationswhentheyfalldue;

ii) theresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancialyearhavenotbeenaffectedbyanyitem,transactionoreventofamaterialandunusualnatureotherthanthosedisclosedinthefinancialstatements;and

iii) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.

SIGNIFICANT EVENTS

SignificanteventsduringthefinancialyeararedisclosedinNote��tothefinancialstatements.

SIGNIFICANT SUBSEQUENT EVENTS

SignificanteventssubsequenttothebalancesheetdatearedisclosedinNote��tothefinancialstatements.



AUDITORS

TheAuditors,GEPAssociates,haveindicatedtheirwillingnesstocontinueinoffice.

SignedinaccordancewitharesolutionoftheDirectorsdated�6April�008.

CHAIRMAN MANAGINGDIRECTOR TENGKU DATO' SULAIMAN SHAH BIN YONG SOON CHOW TENGKU ABDUL JALIL SHAH PetalingJayaDated: �6April�008



Statement by Directors

Statutory Declaration

We,TENGKUDATO'SULAIMANSHAHBINTENGKUABDULJALILSHAHandYONGSOONCHOW,beingtwooftheDirectorsofCRESTBUILDERHOLDINGSBERHAD,doherebystatethatintheopinionoftheDirectors,thefinancialstatementssetoutonpages�0to101aredrawnupinaccordancewithapplicableMASBApprovedAccountingStandardsinMalaysiaforEntitiesOtherThanPrivateEntitiessoastogiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyasat�1December�007andoftheresultsoftheiroperations,changesinequityandthecashflowsoftheGroupandoftheCompanyfortheyearendedonthatdate. SignedinaccordancewitharesolutionoftheDirectorsdated�6April�008.

CHAIRMAN MANAGINGDIRECTOR TENGKU DATO' SULAIMAN SHAH BIN YONG SOON CHOW TENGKU ABDUL JALIL SHAH PetalingJayaDated:�6April�008

I,GOHSINHUAT,beingtheofficerprimarilyresponsiblefortheaccountingrecordsandfinancialmanagementofCRESTBUILDERHOLDINGSBERHAD,dosolemnlyandsincerelydeclarethatthefinancialstatementssetoutonpages�0to101aretothebestofmyknowledgeandbelief,correctandImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

Subscribedandsolemnlydeclaredby ) GOHSINHUAT ) atPetalingJaya ) on�6April�008 ) GOH SIN HUAT

Beforeme

COMMISSIONER FOR OATHS

39CREST BUILDER HOLDINGS BERHAD ANNUAL REPOR T 2007

Auditors' Reportto the Members of Crest Builder Holdings Berhad

We have audited the financial statements set out on pages 40 to 101. The financial statements are the responsibility of the Company's Directors. It is our responsibility to form an independent opinion, based on our audit, on those financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility towards any other person for the content of this report. We conducted our audit in accordance with approved Standards on Auditing in Malaysia. These standards require that we plan and perform the audit to obtain all the information and explanations, which we considered necessary to provide us with sufficient evidence to give reasonable assurance that the financial statements are free of material misstatements. Our audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. Our audit also includes an assessment of the accounting principles used and significant estimates made by the Directors as well as evaluating the overall adequacy of the presentation of information in the financial statements. We believe our audit provides a reasonable basis for our opinion. In our opinion :- a) the financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 and the

applicable MASB Approved Accounting Standards in Malaysia for Entities Other Than Private Entities so as to give a true and fair view of :- i) the matters required by Section 169 of the Act to be dealt with in the financial statements of the Group and of

the Company; and

ii) the state of affairs of the Group and of the Company as at 31 December 2007 and of the results of their operations, changes in equity and cash flows of the Group and of the Company for the year ended on that date;

and

b) the accounting and other records and the registers required by the Act to be kept by the Company and by the subsidiary companies of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

We are satisfied that the financial statements of the subsidiary companies that have been consolidated with the Company's financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations as required by us for those purposes. The auditors' reports on the financial statements of the subsidiary companies that have been consolidated were not subject to any qualification and did not include any comment made under Section 174(3) of the Act.

GEP ASSOCIATES ESTHER TAN CHOON HWA No : AF 1030 No : 1023 / 03 / 10 (J) Chartered Accountants Partner Petaling Jaya Dated : 26 April 2008


Consolidated Balance Sheetas at 31 December 2007

2007 2006 Note RM RM PROPERTY,PLANTANDEQUIPMENT � 1�,755,�0� �1,991,60�INVESTMENTPROPERTIES 5 88,011,005 5,115,000OTHERINVESTMENTS 8 8,55�,000 �,55�,000INTANGIBLEASSETS 9 ��,60�,�6� 67,055,�6�LANDHELDFORPROPERTYDEVELOPMENT 10 �1,1�5,7�� ,�71,001

166,060,�05 15�,186,967CURRENTASSETS Propertydevelopmentcosts 11 15,5�0,07� ��,0�0,0��Inventories 1� 6,87�,�05 –Tradereceivables 1� 1�1,0�8,�� 78,69�,�8�Amountsduefromcontractcustomers 1� 1��,56�,566 1��,�0�,997Otherreceivables,depositsandprepayments 15 15,�55,978 �,060,100Taxrecoverable 5,�1�,�5� �,8�9,��1Cashandbankbalances 17 ��,��7,850 8,��1,6�6

��0,9�0,�59 �5�,187,�89

CURRENTLIABILITIES Tradepayables 18 8�,608,8�6 97,9��,86�Amountsduetocontractcustomers 1� 10,9��,��6 �,716,�07Progressbillings 1�,�91,��9 11,�77,6�7Otherpayables,depositsandaccruals 19 ��,��,780 5,881,975Hirepurchasecreditors �1 1,911,�55 1,897,506Bankoverdraft �� ,87�,�61 �,680,7�9Otherbankborrowings �� 9,��,7�� 7,861,16�Provisionfortaxation 6,0�9,860 �,175,6��

180,�5�,701 156,��5,7��

NETCURRENTASSETS 1�0,666,658 95,761,7�5

�06,7�7,06� ��7,9�8,71�

CAPITALANDRESERVES

EquityattributabletoequityholdersoftheCompany Sharecapital �� 1��,911,�50 1��,750,�50Reserves �5 9�,��1,555 56,561,6�5

Shareholders'equity �16,�5�,005 180,�1�,095Minorityinterests �6 – –

Totalequity �16,�5�,005 180,�1�,095 LONGTERMANDDEFERREDLIABILITIES Hirepurchasecreditors �1 1,689,�85 1,��9,�85Loans �9 88,187,999 65,��7,7�1Deferredtaxliabilities �0 �96,57� 759,511

�06,7�7,06� ��7,9�8,71�

TheaccompanyingNotesformanintegralpartoftheFinancialStatements.


Consolidated Income Statementfor the year ended 31 December 2007

2007 2006 Note RM RM Revenue �1 �65,766,1�� 18,�66,�99 Costofsales �1 (�96,9��,08�) (�70,1�0,179)

Grossprofit 68,8��,0�0 �8,1�6,��0

Otheroperatingincome �1,��5,9�6 �,755,�75

110,069,986 50,881,695 Administrativeexpenses (�9,�05,�97) (1�,7��,18�)

Profitfromoperations �� 60,86�,�89 �6,159,511 Financecosts �5 (8,05�,�08) (�,699,1��)

Profitbeforetaxation 5�,810,181 �1,�60,�69 Incometaxexpense �6 (1�,616,91�) (11,��6,0��)

Profitaftertaxation �0,19�,�67 �0,0��,��6

Attributableto:- EquityholdersoftheCompany �0,19�,�67 �0,0��,��6Minorityinterests – –

�0,19�,�67 �0,0��,��6

EarningspershareattributabletoequityholdersoftheCompany:- Basicearningspershare(sen) �7 ��-�6 16-�9

Dilutedearningspershare(sen) �7 �1-6� N/A

Dividendpershare(sen) �8 7-00 5-00



Consolidated Statement of Changes in Equityfor the year ended 31 December 2007

Attributable to Equity Holders of the Company Non - distributable Distributable Share Share Capital option Other Retained Minority Total capital reserve reserve reserve earnings Total interests equity Note RM RM RM RM RM RM RM RM

At1January�006 11�,7�9,500 �,0�5,5�� – 1��,579 ��,�8�,77� 15�,19�,�95 – 15�,19�,�95Profitfortheyear – – – –�0,0��,��6 �0,0��,��6 – �0,0��,��6

11�,7�9,500 �,0�5,5�� – 1��,579 5�,�18,11017�,��7,7�1 –17�,��7,7�1 Conversionof:- -IrredeemableConvertible UnsecuredLoanStocks �7 10,000,000 – – – –10,000,000 –10,000,000-Warrants�00�/�01� �8 950 – – – – 950 – 950Equitycomponentof convertibleloanstocks �5 – – – (1��,579) – (1��,579) – (1��,579)Dividends �8 – – – – (1,78�,007) (1,78�,007) – (1,78�,007)

At�1December�006 1��,750,�50 �,0�5,5�� – –5�,5�6,10� 180,�1�,095 –180,�1�,095

Attributable to Equity Holders of the Company Non - distributable Distributable Share Share Capital option Other Retained Minority Total capital reserve reserve reserve earnings Total interests equity Note RM RM RM RM RM RM RM RM

At1January�007 1��,750,�50 �,0�5,5�� – –5�,5�6,10�180,�1�,095 – 180,�1�,095Profitfortheyear – – – –�0,19�,�67 �0,19�,�67 – �0,19�,�67

1��,750,�50 �,0�5,5�� – –9�,7�9,�70��0,505,�6� – ��0,505,�6� Shareoptionsgranted underESOS �5 – – �0�,5�5 – – �0�,5�5 – �0�,5�5Issueofshares:- -OptionsissuedunderESOS 161,000 ��,8�� (��,8��) – – 161,000 – 161,000Dividends �8 – – – – (�,516,89�) (�,516,89�) – (�,516,89�)

At�1December�007 1��,911,�50 �,0�8,�75 180,70� –88,�1�,�78�16,�5�,005 – �16,�5�,005



Consolidated Cash Flow Statementfor the year ended 31 December 2007

2007 2006 RM RM CASHFLOWSFROMOPERATINGACTIVITIES Profitbeforetaxation 5�,810,181 �1,�60,�69 Adjustmentsfor:- Allowancefordoubtfuldebts – �87,8�1Depositsforfeited (�,500) (�,000)Depreciation �,7�0,�8� �,957,001ESOSemployeeexpenses �0�,5�5 –Fairvalueadjustmentsoninvestmentproperties (�8,506,961) (��1,75�)Gainondisposalofinvestmentproperties (�6�,800) (9�,�7�)Gainondisposalofproperty,plantandequipment (�81,9�8) (�87,700)Intangibleassetwrittenoff ��,�50,999 –Interestexpenses 9,78�,�86 6,�67,��Interestincome (8�6,886) (�6�,9�9)Investmentwrittenoff – ��6,500Property,plantandequipmentwrittenoff �6,�89 ��,�7�Short-termaccumulatingcompensatedabsences 59,�8� 1�6,61�Waiverofdebts – (195,��5)

Operatingprofitbeforeworkingcapitalchanges 60,001,�59 ��,615,719 Increaseinpropertydevelopmentcosts (�,817,767) (1,5�1,16�)Decreaseininventories �7,��,�7� –Increaseintradereceivables (5�,796,150) (18,��7,�57)Decrease/(Increase)inamountsduefromcontractcustomers 1,6�1,��0 (�6,677,50�)Increaseinotherreceivables,depositsandprepayments (1�,�95,878) (1,018,67�)(Decrease)/Increaseintradepayables (1�,876,0�8) �1,61�,�06Increase/(Decrease)inamountsduetocontractcustomers 6,�17,1�9 (�6�,669)Increase/(Decrease)inprogressbillings 1,01�,70� (8,71�,0�6)Increaseinotherpayables,depositsandaccruals �6,�0�,8�5 1,015,�90

(�0,165,�7�) (1�,901,895)

Cashgeneratedfromoperations �9,8�5,785 �8,71�,8�� Incometaxpaid (1�,80�,780) (11,�7�,7�7)Incometaxrefunded ��,�� –

Netcashgeneratedfromoperatingactivitiescarriedforward �7,�66,��8 17,��1,097


Consolidated Cash Flow Statementfor the year ended 31 December 2007 (Cont'd)

2007 2006 Note RM RM Netcashgeneratedfromoperatingactivitiesbroughtforward �7,�66,��8 17,��1,097

CASHFLOWSFROMINVESTINGACTIVITIES

Interestreceived 8�6,886 �6�,9�9Increaseindevelopmentexpenditure (1,�95,5�9) (�,�76,607)Proceedsfromdisposalofinvestmentproperties 1,�67,800 1,108,��0Proceedsfromdisposalofproperty,plantandequipment 889,�00 �08,�00Purchaseofinvestment (�,000,000) –Purchaseofinvestmentproperties (10,776,995) –Purchaseofproperty,plantandequipment (9,0�8,070) (11,89�,5��)

Netcashusedininvestingactivities (��,�16,5�8) (1�,588,671)

5,��9,800 �,75�,��6

CASHFLOWSFROMFINANCINGACTIVITIES

Dividendpaid (�,516,89�) (1,78�,007)Fixeddepositswithlicensedbanks �18,�86 �,�07,888Proceedsfromissuanceofordinaryshares 161,000 950Interestpaid (7,9�1,��) (5,�81,�55)Loanraised �9,901,000 �8,�91,806Repaymentoftermloans (15,778,1��) (�5,880,155)Repaymentofhirepurchasecreditors (�,�60,951) (�,07�,�70)

Netcashgeneratedfrom/(usedin)financingactivities 9,78�,078 (�,�15,��)

Netincreaseincashandcashequivalents 15,0��,878 5�7,18�Cashandcashequivalentsbroughtforward �,156,�11 1,619,0�8

Cashandcashequivalentscarriedforward 17 17,189,089 �,156,�11



2007 2006 Note RM RM PROPERTY,PLANTANDEQUIPMENT � 8,197 9,6��INVESTMENTINSUBSIDIARYCOMPANIES 6 9�,765,�70 9�,765,�70OTHERINVESTMENT 8 8,500,000 �,500,000INTANGIBLEASSETS 9 – ��,�50,999

10�,�7�,�67 1��,7�5,91� CURRENTASSETS Otherreceivableandprepayments 15 9�0,988 55�,851AmountsduefromSubsidiaryCompanies 16 1��,�98,679 55,7�9,5�0Taxrecoverable 878,8�9 1,151,��7Cashandbankbalances 17 ��1,051 5�,896

1��,��9,557 57,508,5��

CURRENTLIABILITIES Otherpayablesandaccruals 19 �,95�,��1 1,657,71�AmountsduetoSubsidiaryCompanies �0 ��0,000 ��0,000

�,19�,��1 1,897,71�

NETCURRENTASSETS 1�1,��7,��6 55,610,8�1

��,510,80� 188,��6,7��

CAPITALANDRESERVES

Sharecapital �� 1��,911,�50 1��,750,�50Reserves �5 15,599,�5� 19,586,�8�

Shareholders'equity 1�9,510,80� 1��,��6,7�� LONGTERMANDDEFERREDLIABILITIES Loan �9 85,000,000 �5,000,000

��,510,80� 188,��6,7��


Balance Sheetas at 31 December 2007


Income Statementfor the year ended 31 December 2007

2007 2006 Note RM RM Revenue �1 5�,7�0,8�6 15,708,�69 Costofsales – –

Grossprofit 5�,7�0,8�6 15,708,�69 Otheroperatingincome – –

5�,7�0,8�6 15,708,�69 Administrativeexpenses (��,�75,1��) (578,61�)

Profitfromoperations �� 19,�65,68� 15,1�9,756 Financecosts �5 (6,��0,171) (�,�69,167)

Profitbeforetaxation 1�,1�5,51� 11,660,589 Incometaxexpense �6 (1�,799,085) (�,�97,��)

Profitaftertaxation ��6,��7 8,�6�,��6



Statement of Changes in Equityfor the year ended 31 December 2007

Non - distributable Distributable Share Share Capital option Other Retained capital reserve reserve reserve earnings Total Note RM RM RM RM RM RM At1January�006 11�,7�9,500 �,0�5,5�� – 1��,579 9,079,50� 1�6,989,1��Profitfortheyear – – – – 8,�6�,��6 8,�6�,��6

11�,7�9,500 �,0�5,5�� – 1��,579 17,��,7�8 1�5,�5�,�69 Conversionof:- -IrredeemableConvertible UnsecuredLoanStocks �7 10,000,000 – – – – 10,000,000-Warrants�00�/�01� �8 950 – – – – 950Equitycomponentof convertibleloanstocks �5 – – – (1��,579) – (1��,579)Dividends �8 – – – – (1,78�,007) (1,78�,007)

At�1December�006 1��,750,�50 �,0�5,5�� – – 15,560,7�1 1��,��6,7��

Non - distributable Distributable Share Share Capital option Other Retained capital reserve reserve reserve earnings Total Note RM RM RM RM RM RM At1January�007 1��,750,�50 �,0�5,5�� – – 15,560,7�1 1��,��6,7��Profitfortheyear – – – – ��6,��7 ��6,��7

1��,750,�50 �,0�5,5�� – – 15,887,168 1��,66�,160 ShareoptionsgrantedunderESOS – – �0�,5�5 – – �0�,5�5Issuesofshares:- -OptionsissuedunderESOS 161,000 ��,8�� (��,8��) – – 161,000Dividends �8 – – – – (�,516,89�) (�,516,89�)

At�1December�007 1��,911,�50 �,0�8,�75 180,70� – 11,�70,�76 1�9,510,80�



Cash Flow Statementfor the year ended 31 December 2007

2007 2006 RM RM CASHFLOWSFROMOPERATINGACTIVITIES Profitbeforetaxation 1�,1�5,51� 11,660,589 Adjustmentsfor:- Depreciation 1,��6 1,��7Dividendincome (�8,000,000) (1�,000,000)ESOSemployeeexpenses �0�,5�5 –Intangibleassetwrittenoff ��,�50,999 –Interestexpenses 6,��0,171 �,�69,167Interestincome (5,7�0,8�6) (�,708,�69)

Operatinglossbeforeworkingcapitalchanges (719,16�) (577,166) (Increase)/Decreaseinotherreceivableandprepayments (�77,1�7) ��5,000Increase/(Decrease)inotherpayablesandaccruals 1,�9�,508 (78,1�1)

917,�71 1�6,869

Cashgeneratedfrom/(usedin)operations 198,�08 (��0,�97) Incometaxrefund ��,�� –

Netcashgeneratedfrom/(usedin)operatingactivities 6�1,5�1 (��0,�97) CASHFLOWSFROMINVESTINGACTIVITIES Dividendreceived �5,0�0,000 9,�60,000Interestreceived 5,7�0,8�6 �,708,�69Purchaseofinvestment (�,000,000) –

Netcashgeneratedfrominvestingactivities �6,780,8�6 1�,068,�69

�7,�1�,�57 11,6�8,07�

CASHFLOWSFROMFINANCINGACTIVITIES Dividendpaid (�,516,89�) (1,78�,007)Loanraised �0,000,000 –Proceedsfromissuanceofshares 161,000 950IncreaseinamountsduefromSubsidiaryCompanies (66,6�9,1�9) (11,8�8,915)IncreaseinamountsduetoSubsidiaryCompanies – �0,000Interestpaid (6,��0,171) (�,05�,500)

Netcashusedinfinancingactivities (�7,��5,�0�) (17,65�,�7�)

Netincrease/(decrease)incashandcashequivalents 167,155 (6,01�,�00)Cashandcashequivalentsbroughtforward 5�,896 6,068,�96

Cashandcashequivalentscarriedforward 17 ��1,051 5�,896



Notes to the Financial Statements31 December 2007

1. CORPORATE INFORMATION

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on theMainBoardoftheBursaMalaysiaSecuritiesBerhad("BMSB")since1�June�00�. It isnotasubsidiaryofanothercompany.

TheregisteredofficeandprincipalplaceofbusinessoftheCompanyarelocatedat1�-�,Jalan�A/�7A,Section�,WangsaMaju,5��00KualaLumpurandPenthouse,TheCrest,�TwoSquare,No.�,Jalan19/1,�6�00PetalingJaya,SelangorDarulEhsanrespectively.

TheprincipalactivityoftheCompanyisinvestmentholding.

TheprincipalactivitiesoftheSubsidiaryCompaniesaredescribedinNote6tothefinancialstatements.

ThefinancialstatementsareexpressedinRinggitMalaysia.

Thefinancialstatementsof theGroupandoftheCompanyforthefinancialyearended�1December�007wereauthorisedforissueinaccordancewitharesolutionoftheBoardofDirectorson�6April�008.

2. BASIS OF PREPARATION

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedunderthehistoricalcostconvention

exceptotherwiseindicatedinthissummaryofsignificantaccountingpolicies.

ThefinancialstatementscomplywiththeprovisionsoftheCompaniesAct,1965andapplicableMASBApprovedAccountingStandardsinMalaysiaforEntitiesOtherThanPrivateEntities. ThepreparationoffinancialstatementsinconformitywiththeapplicableMASBApprovedAccountingStandardsinMalaysiaforEntitiesOtherThanPrivateEntitiesandtheprovisionsoftheCompaniesAct,1965requirestheDirectorstomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereportedperiod.Actualresultscoulddifferfromthoseestimates.

�.1 Changesinaccountingpolicies

On1January�007,theGroupandtheCompanyadoptedthefollowingFinancialReportingStandards("FRSs")mandatoryforfinancialperiodsbeginningonorafter1October�006and1January�007respectively:-

FRS6 ExplorationforandEvaluationofMineralResources FRS117 Leases

FRS1�� RelatedPartyDisclosures


Notes to the Financial Statements31 December 2007 (Cont'd)

2. BASIS OF PREPARATION (CONT'D)

2.1 Changes in accounting policies (Cont'd)

The adoption of the revised and new FRS 6 and 124 does not result in significant changes in accounting policies of the Group and the Company. The principal change in accounting policies and their effect resulting from the adoption of FRS 117 are discussed as follows :-

i) FRS 117 Leases

a) Leasehold land held for own use

Prior to 1 January 2007, leasehold land held for own use was classified as property, plant and equipment and was stated at cost less accumulated depreciation and impairment losses. The adoption of the revised FRS 117 has resulted in a change in the accounting policy relating to the classification of leases of land and buildings. Leases of land and buildings are classified as operating or finance leases in the same way as leases of other assets and the land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease classification. Leasehold land held for own use is now classified as operating lease and where necessary, the minimum lease payments or the up-front payments made are allocated between the land and buildings element of the lease at the inception of the lease. The up-front payment represents prepaid lease payments and are amortised on a straight-line basis over the lease term.

The change did not materially affect the financial statements of the Group and of the Company.

b) Initial direct costs

Prior to 1 January 2007, the Group, as a lessor in operating lease arrangements, had recognised initial direct costs incurred in negotiating and arranging leases as an expense in the income statement in the period in which they were incurred. The revised FRS 117 requires such costs to be added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease income. According to the revised FRS 117, this change in accounting policy should be applied retrospectively. In general, the Group does not incur significant initial direct costs on negotiating and arranging leases and as a result, this change in accounting policy did not materially affect the financial statements of the Group and of the Company.

The Company has not adopted the deferred FRS 139 Financial Instruments : Recognition and Measurement and the following new and revised FRSs, amendments and Interpretations that are mandatory for financial periods beginning on or after 1 July 2007 :-

a) FRS 107 Cash Flow Statements

b) FRS 111 Construction Contracts

c) FRS 112 Income Taxes

d) FRS 118 Revenue

e) FRS 120 Accounting for Government Grants and Disclosure of Government Assistance

f ) FRS 134 Interim Financial Reporting

g) FRS 137 Provisions, Contingent Liabilities and Contingent Assets

h) Amendment to FRS 121 The Effects of Changes in Foreign Exchange Rates - Net Investment in a Foreign Operation




�.1 Changesinaccountingpolicies(Cont'd)

i) ICInterpretation1 ChangesinExistingDecommissioning,RestorationandSimilarLiabilities j) ICInterpretation� Members'SharesinCo-operativeEntitiesandSimilarInstruments

k) ICInterpretation5 Rights to Interests arising from Decommissioning, Restoration and EnvironmentalRehabilitationFunds

l) ICInterpretation6 LiabilitiesarisingfromParticipatinginaSpecificMarket-WasteElectrical andElectronicEquipment

m) ICInterpretation7 Applying the Restatement Approach under FRS 1�9�00� Financial ReportinginHyperinflationaryEconomies

n) ICInterpretation8 ScopeofFRS�

TheabovenewandrevisedFRSs,amendmentandInterpretationswillnothaveanyimpacttothefinancial

statements.

�.� Significantaccountingestimatesandjudgements

i) Keysourcesofestimationuncertainty

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedasfollows:-

a) Impairmentofgoodwill

The Group determines whether goodwill is impaired at least on an annual basis.This requiresestimationofthevalue-in-useofthecash-generatingunits("CGU")towhichgoodwillisallocated.Estimatingavalue-in-useamountrequiresmanagementtomakeanestimateoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.ThecarryingamountofgoodwilloftheGroupasat�1December�007wasRM��,60�,�6�(�006:RM67,055,�6�).FurtherdetailsareasdisclosedinNote9tothefinancialstatements.

b) Construction

TheGrouprecognisesconstructionrevenueandexpensesintheincomestatementbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatconstructioncostsincurredforworkperformedto-datebeartotheestimatedtotalconstructioncosts.

Significant judgement is required in determining the stage of completion, the extent of theconstruction costs incurred, the estimated total construction revenue and costs, as well as therecoverabilityoftheconstructionprojects.Inmakingthejudgement,theGroupevaluatesbasedonpastexperienceandbyrelyingontheworkofspecialists.




�.� Significantaccountingestimatesandjudgements(Cont'd)

i) Keysourcesofestimationuncertainty(Cont'd)

c) Propertydevelopment

TheGrouprecognisespropertydevelopmentrevenueandexpensesintheincomestatementbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatpropertydevelopmentcostsincurredforworkperformedto-datebeartotheestimatedtotalpropertydevelopmentcosts.

Significantjudgementisrequiredindeterminingthestageofcompletion,theextentofthepropertydevelopmentcostsincurred,theestimatedtotalpropertydevelopmentrevenueandcosts,aswellasrecoverabilityofthedevelopmentprojects.Inmakingthejudgement,theGroupevaluatesbasedonpastexperienceandbyrelyingontheworkofspecialists.

d) Share-basedpaymentstoemployeesarisingfromESOS

Thecostofprovidingshare-basedpaymentstoemployeesischargedtotheincomestatementoverthevestingperiodoftherelatedshareoptions.Thecostsisbasedonthefairvalueoftheoptionsandthenumberofoptionsexpectedtovest.ThefairvalueofeachoptionisdeterminedusingtheBlack-Scholesoptionpricingmodel.

e) Taxation

Judgementisrequiredindeterminingthecapitalallowancesanddeductibilityofcertainexpenseswhenestimatingtheprovisionfortaxation.Theremaybetransactionsduringtheordinarycourseofbusinessforwhichtheultimatetaxwilldeterminewhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpactthetaxationanddeferredtaxationintheperiodsinwhichtheoutcomeisknown.

3. SIGNIFICANT ACCOUNTING POLICIES �.1 Basisonconsolidation TheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandallitsSubsidiary

Companiesmadeuptotheendofthefinancialyear.ThefinancialstatementsoftheSubsidiaryCompaniesarepreparedforthesamereportingdateastheCompany.

Subsidiary Companies are consolidated from the date of acquisition, being the date on which the Groupobtainscontrol,andcontinuetobeconsolidateduntilthedatethatsuchcontrolceases.Uniformaccountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandothereventsinsimilarcircumstances.

Intragroup transactions, balances and resulting unrealised profits and losses from intragroup transactionsareeliminatedinfullonconsolidationandtheconsolidatedfinancialstatementsreflectexternaltransactionsonly.

Acquisition of Subsidiary Companies are accounted for by applying the purchase method.The purchase

methodofaccountinginvolvesallocatingoftheacquisitiontothefairvalueoftheidentifiableassets,liabilitiesandcontingent liabilitiesassumedat thedateofacquisition.Thecostofanacquisition ismeasuredas theaggregateofthefairvalues,atthedateofexchange,oftheassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissued,plusanycostsdirectlyattributabletotheacquisition.



3. SIGNIFICANT ACCOUNTING POLICIES (CONT'D) �.1 Basisonconsolidation(Cont'd) AnyexcessofthecostofacquisitionovertheGroup'sinterestinthenetfairvalueoftheidentifiableassets,

liabilitiesandcontingentliabilitiesrepresentsgoodwill.

AnyexcessoftheGroup'sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesrecognisedoverthecostofacquisitionisrecognisedimmediatelyinprofitorloss.

MinorityinterestrepresentstheportionoftheprofitandlossandnetassetsinSubsidiaryCompaniesnotheldbytheGroup.Minorityinterestismeasuredattheminorities'shareoftheSubsidiaryCompanies'identifiableassetsandliabilitiesatthedateofacquisitionandtheshareofchangesintheSubsidiaryCompanies'equitysincethen.Separatedisclosureismadeforminorityinterest.

�.� Property,plantandequipment

Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Subsequentcostsareincludedintheasset'scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialyearinwhichtheyareincurred.

Subsequenttorecognition,property,plantandequipmentarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses.

Freeholdlandisnotamortisedasithasaninfinitelife.

Building-in-progressisstatedatcostunlessintheopinionoftheDirectorsthereisapermanentdiminutioninvalue,inwhichcase,provisionwillbemade.Depreciationofbuilding-in-progresscommenceswhentheassetsarereadyfortheirintendeduse.

Depreciationofotherproperty,plantandequipmentiscalculatedinordertowriteofftheircosttoitsresidualvalueonastraightlinebasisovertheirexpectedusefullivesofproperty,plantandequipmentconcerned.Theprincipalannualratesusedare:-

Buildings �% Equipment,furnitureandfittings 10-�0% Lightequipment �0% Plantandmachinery �0% Motorvehicles �0%

Theresidualvalues,usefullifeanddepreciationmethodarereviewedateachfinancialyear-endtoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsare expected from its use or disposal. Gains or losses on disposals are determined by comparing the salesproceedswithcarryingamountsandincludedintheincomestatement.Ondisposalofrevaluedassets,amountsinrevaluationreserverelatingtothoseassetsaretransferredtoretainedearnings.



3. SIGNIFICANT ACCOUNTING POLICIES (CONT'D) �.� Investmentproperties

Investmentproperties,principallycomprising landandbuildingsareheld for longtermrentalyieldsor for

capitalappreciationorboth,andarenotoccupiedbytheGroup.Investmentpropertiesmeasuredinitiallyatcost, including transaction costs. Subsequent to initial recognition, investment properties are stated at fairvalue.Fairvalueisarrivedatbyreferencetomarketevidenceoftransactionpricesforsimilarpropertiesandisperformedbyregisteredindependentvaluershavinganappropriaterecognisedprofessionalqualificationandrecentexperienceinthelocationandcategoryofthepropertiesbeingvalued. Gainsorlossesarisingfromchangesinthefairvaluesofinvestmentpropertiesarerecognisedinprofitorlossintheyearinwhichtheyarise.

Apropertyinterestthatisheldunderanoperatingleaseisclassifiedandaccountedforasaninvestmentpropertyonaproperty-by-propertybasiswhentheGroupholdsittoearnrentalsorforcapitalappreciationorboth.Anysuchpropertyinterestunderanoperatingleaseclassifiedasaninvestmentpropertyiscarriedatfairvalue.

Investment properties are derecognised when either they have been disposed of or when the investmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Anygainsorlossesontheretirementordisposalofaninvestmentpropertyarerecognisedinprofitorlossintheyearinwhichtheyarise.

�.� SubsidiaryCompanies

SubsidiaryCompaniesare thosecompanies inwhichtheGrouphas theability toexercisecontrolover thefinancialandoperatingpoliciesofanenterprisesoastoobtainbenefitfromtheiractivities.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

InvestmentinSubsidiaryCompaniesarestatedatcostexceptwherethereisanindicationofimpairment,inwhichcasethecarryingvalueoftheinvestmentisassessedandwrittendownimmediatelytoitsrecoverableamount.

�.5 AssociatedCompanies

AssociatedCompaniesarethosecompaniesinwhichtheCompanyhassignificantinfluenceandthatisneitherasubsidiarycompanynoraninterestinajointventure.

SignificantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheAssociatedCompaniesbutnotcontroloverthosepolicies.

InvestmentsinAssociatedCompaniesareaccountedforinthefinancialstatementsusingtheequitymethodofaccounting.Undertheequitymethod,theinvestmentinAssociatedCompaniesarecarriedatcostadjustedforpost-acquisitionchangesintheGroup'sshareofnetassetsoftheAssociatedCompanies.TheGroup'sshareofthenetprofitandlossoftheAssociatedCompaniesarerecognisedintheconsolidatedincomestatement.WheretherehadbeenachangerecogniseddirectlyintheequityoftheAssociatedCompanies,theGrouprecogniseditsshareofsuchchangesdirectlytoequity.

UnrealisedgainsandlossesontransactionsbetweentheGroupanditsAssociatedCompaniesareeliminatedtotheextentoftheGroup'sinterestintheAssociatedCompanies.



3. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

�.5 AssociatedCompanies(Cont'd)

TheGroup'sshareofresultsandreservesofanAssociatedCompanyacquiredisincludedintheconsolidatedfinancial statements from the date of acquisition until the Group ceases to have significant influence overthe Associated Company. For this purpose, audited or management financial statements for the period to�1Decemberareused.Uniformaccountingpoliciesareadopted for like transactionsandevents insimilarcircumstances.

WhentheGroup'sshareoflossesinanAssociatedCompanyequalsorexceedsitsinterestintheAssociatedCompany,includinganylongtermintereststhat,insubstance,formpartoftheGroup'snetinvestmentintheAssociatedCompany,theGroupdiscontinuesrecognisingitsshareoffuturelosses,unlesstheGrouphasincurredobligationsormadepaymentsonbehalfoftheAssociatedCompany.

GoodwillrelatingtoanAssociatedCompanyisincludedinthecarryingamountoftheinvestmentandisnotamortised.AnyexcessoftheGroup'sshareofthenetfairvalueoftheAssociatedCompany'sidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostoftheinvestmentisexcludedfromthecarryingamountoftheinvestmentandisinsteadincludedasincomeinthedeterminationoftheGroup'sshareoftheAssociatedCompany'sprofitorlossintheperiodinwhichtheinvestmentisacquired.

�.6 Otherinvestment

Long-terminvestmentisstatedatcostlessimpairmentlosses.

Ondisposalofaninvestment,thedifferencebetweendisposalproceedsanditscarryingvalueisrecognisedintheincomestatement.

�.7 Intangibleassets a) Goodwill

Goodwillacquiredinabusinesscombinationisinitiallymeasuredatcost,beingtheexcessofthecostofthebusinesscombinationovertheGroup'sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.Subsequenttotheinitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.Goodwill isnotamortised,butinstead, it isreviewedfor impairmentannually,ormorefrequently ifeventsorchanges incircumstances indicatethatthecarryingamountmaybeimpaired.Gainsandlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

b) Otherintangibleassets

Intangible assets are measured on initial recognition at cost. Subsequent to the initial recognition,intangibleassetsarecarriedatcostlessanyaccumulatedlosses.

Intangible assets with indefinite lives are not amortised but tested for impairment annually, or morefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingamountmaybeimpairedeitherindividuallyoratthecash-generatingunitlevel.Theusefullifeofanintangibleassetwithanindefiniteuseful life isalsoreviewedannually todeterminewhether theuseful lifeassessmentcontinuestobesupportable.




�.8 Landheldforpropertydevelopment

Landheldforpropertydevelopmentconsistsoflandwherenodevelopmentactivitieshavebeencarriedoutorwheredevelopmentactivitiesarenotexpectedtobecompletedwithinthenormaloperatingcycle.Suchlandisclassifiedwithinnon-currentassetandisstatedatcostlessanyaccumulatedimpairmentlosses.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote�.�1.

Landheldforpropertydevelopmentisreclassifiedaspropertydevelopmentcostsatthepointwhendevelopmentactivitieshavecommencedandwhereitcanbedemonstratedthatthedevelopmentactivitiescanbecompletedwithinthenormaloperatingcycle.

�.9 Propertydevelopmentcosts

Propertydevelopmentcostscomprisethecostoflandtogetherwithrelateddevelopmentexpenditurethatare directly attributable to development activities or that can be allocated on a reasonable basis to suchactivities.

Whenthefinancialoutcomeofadevelopmentactivitycanbereliablyestimated,propertydevelopmentrevenueandexpensesarerecognisedintheincomestatementbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatpropertydevelopmentcostsincurredforworkperformedto-datebeartotheestimatedtotalpropertydevelopmentcosts. Whenthefinancialoutcomeofadevelopmentactivitycannotbereliablyestimated,propertydevelopmentrevenue is recognised only to the extent of property development cost incurred that is probable will berecoverable,andpropertydevelopmentcostsonpropertiessoldarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

Anyexpectedlossonadevelopmentproject,includingcoststobeincurredoverthedefectsliabilityperiod,isrecognisedasanexpenseimmediately.

Propertydevelopmentcostsnotrecognisedasanexpensearerecognisedasanasset,whichismeasuredatthelowerofcostandnetrealisablevalue.

Theexcessofrevenuerecognisedintheincomestatementoverbillingstopurchasersisclassifiedasaccruedbillingsandtheexcessofbillingstopurchasersoverrevenuerecognisedintheincomestatementisclassifiedasprogressbillings.

�.10 Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.

Costofcompletedpropertiesisdeterminedonaspecificidentificationbasisandcomprisesproportionatecostoflandandrelateddevelopmentandconstructioncosts.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandsellingexpenses.

�.11 Receivables

Receivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenoffintheyearinwhichtheyareidentified.Anestimateismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsasatthebalancesheetdate.




�.1� Constructioncontracts

Aconstructioncontractisacontractspecificallynegotiatedfortheconstructionofanassetoracombinationofassetsthatarecloselyinterrelatedorinterdependentintermsofdesign,technologyandfunctionsortheirultimatepurposeoruse.

Whentheoutcomeofaconstructioncontractcanbeestimatedreliably,contractrevenueandcontractcostsarerecognisedasrevenueandexpensesrespectivelybyusingthestageofcompletionmethod.Thestageofcompletionismeasuredbyreferencetotheproportionofcontractcostsincurredforworkperformedto-dateto theestimatedtotalcosts for thecontract.Variation incontractworks,claimand incentivepaymentsareincludedtotheextenttheyhavebeenagreedwiththecustomers.Constructioncostincludesdirectmaterial,labour,subcontractorcostandattributableoverhead.

Whentheoutcomeofaconstructioncontractcannotbeestimatedreliably,contractrevenueisrecognisedonlytotheextentofcontractcostsincurredthatisprobablewillberecoverable.Contractcostsarerecognisedasexpensesintheperiodinwhichtheyareincurred.

Irrespectivewhethertheoutcomeofaconstructioncontractcanbeestimatedreliably,whenit isprobablethat total contract costs will exceed total contract revenue, the expected loss is recognised as an expenseimmediately.

Theaggregateofthecostsincurredandtheprofitorlossrecognisedoneachcontractiscomparedagainsttheprogressbillingsuptotheyearend.Wherecostsincurredandrecognisedprofits(lessrecognisedlosses)exceedprogressbillings,thebalanceisshownasamountsduefromcontractcustomers.Whereprogressbillingsexceedcostsincurredplusrecognisedprofits(lessrecognisedlosses),thebalanceisshownasamountsduetocontractcustomers.

�.1� Payables

Payablesarecarriedatcostwhichisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

�.1� Leases

AleasewheretheGroupassumessubstantiallyallthebenefitsandrisksofownershipisclassifiedasfinancelease.Leasesoflandandbuildingsareclassifiedasoperatingleasesinthesamewayasleasesofotherassetsandthelandandbuildingelementsofaleaseoflandandbuildingsareconsideredseparatelyforthepurposesofleaseclassification.Allleasesthatdonottransfersubstantiallyalltherisksandrewardsareclassifiedasoperatingleases,withthefollowingexceptions:-

a) Propertyheldunderoperatingleasesthatwouldotherwisemeetthedefinitionofaninvestmentpropertyisclassifiedasaninvestmentpropertyonaproperty-by-propertybasis,andifclassifiedasinvestmentproperty,isaccountedforasifheldunderafinanceleaseasdisclosedinNote�.�;and




�.1� Leases(Cont'd)

b) Landheldforownuseunderanoperatinglease,thefairvalueofwhichcannotbemeasuredseparatelyfromthefairvalueofabuildingsituatedthereonattheinceptionofthelease,isaccountedforasbeingheldunderafinancelease,unlessthebuildingisalsoclearlyheldunderanoperatinglease.

i) Financeleases-theGroupasLessee

Assetsacquiredbywayofhirepurchaseorfinanceleasesarestatedatanamountequaltotheloweroftheirfairvaluesandthepresentvalueoftheminimumleasepaymentsattheinceptionoftheleases,lessaccumulateddepreciationandimpairmentlosses.Thecorrespondingliabilityisincludedinthebalancesheetasborrowings.Incalculatingthepresentvalueoftheminimumleasepayments,thediscountfactorusedistheinterestrateimplicitinthelease,whenitispracticabletodetermine;otherwise,theGroup'sincrementalborrowingrateisused.Anyinitialdirectcostsarealsoaddedtothecarryingamountofsuchassets.

Leasepaymentsareapportionedbetweenthefinancecostsandthereductionoftheoutstandingliability.Financecosts,whichrepresentsthedifferencebetweenthetotalleasingcommitmentsandthefairvalueoftheassetsacquired,arerecognisedintheincomestatementoverthetermoftherelevantleasesoastoproduceaconstantperiodicrateofchargeontheremainingbalanceoftheobligationsforeachaccountingperiod.

Thedepreciationpolicyforleasedassetsisinaccordancewiththatfordepreciableproperty,plantand

equipmentasdisclosedinNote�.�.

ii) Operatingleases-theGroupaslessee

Operating leasepaymentsarerecognisedasanexpenseonastraight-linebasisoverthetermoftherelevantlease.Theaggregatebenefitofincentivesprovidedbythelessorisrecognisedasareductionofrentalexpenseovertheleasetermonastraight-linebasis.

Incaseofaleaseoflandandbuildings,theminimumleasepaymentsortheup-frontpaymentsmadeareallocated,whenevernecessary,betweenthelandandthebuildingselementsinproportiontotherelativefairvaluesforleaseholdinterestsinthelandelementandbuildingselementoftheleaseattheinceptionofthelease.Theup-frontpaymentrepresentsprepaidleasepaymentsandareamortisedonastraight-linebasisovertheleaseterm.

iii) Operatingleases-theGroupaslessor

Assetsleasedoutunderoperatingleasesarepresentedonthebalancesheetsaccordingtothenatureoftheassets.Rentalincomefromoperatingleasesisrecognisedonastraight-linebasisoverthetermoftherelevantlease.Initialdirectcostsincurredinnegotiatingandarranginganoperatingleaseareaddedtothecarryingamountoftheleasedassetandrecognisedonastraight-linebasisovertheleaseterm.

�.15 Borrowings

Borrowings are initially recognised based on the proceeds received, net of transaction costs incurred. Insubsequentperiods,anydifferencesbetweenproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedintheincomestatementovertheperiodoftheborrowings.



3. SIGNIFICANT ACCOUNTING POLICIES (CONT'D) �.16 Convertibleloanstocks

Convertible loanstocksareregardedascompoundinstruments,consistingofa liabilitycomponentandan

equitycomponent.Atthedateofissue,thefairvalueoftheliabilitycomponentisestimatedusingtheprevailingmarketinterestrateforasimilarnon-convertibleloanstock.Thedifferencebetweentheproceedsofissueoftheconvertibleloanstocksandthefairvalueassignedtotheliabilitycomponent,representingtheconversionoptionis includedinshareholders'equity.Theliabilitycomponentissubsequentlystatedatamortisedcostusingtheeffectiveinterestratemethoduntilextinguishedonconversionorredemptionwhilstthevalueoftheequitycomponentisnotadjustedinsubsequentperiods.Attributabletransactioncostsareapportionedanddeducteddirectlyfromtheliabilityandequitycomponentbasedontheircarryingamountsatthedateofissue.

Undertheeffectiveinterestratemethod,theinterestexpenseontheliabilitycomponentiscalculatedbyapplyingtheprevailingmarketinterestrateforasimilarnon-convertibleloanstockstotheinstrument.Thedifferencebetweenthisamountandtheinterestpaidisaddedtothecarryingvalueoftheconvertibleloanstocks.

�.17 Sharecapital i) Classification

Ordinarysharesareclassifiedasequity.

TheportionofIrredeemableConvertibleUnsecuredLoanStocks("ICULS")andRedeemableConvertible

Unsecured Loan Stocks ("RCULS") representing the value of the conversion option at the time ofissueis includedinequity.Thevalueoftheconversionoptionisnotchangedinsubsequentperiods.UponconversionoftheICULSandRCULStoequityshares,theamountcreditedtosharecapitalistheaggregateoftheamountsclassifiedwithinliabilityandequityatthetimeofconversion.Nogainorlossisrecognised.

Distributiontoholdersofafinancialinstrumentclassifiedasanequityinstrumentischargeddirectlytoequity.

ii) Shareissuecosts

Externalcostsdirectlyattributabletotheissueofnewsharesareshownasadeductioninequity.

iii) Dividends

Dividendsonordinarysharesareaccountedforintheshareholders'equityasanappropriationofretainedearningsintheyearinwhichtheyaredeclared.

FinaldividendsproposedbytheBoardofDirectorsarenotrecordedasaliabilityinthefinancialstatementsuntiltheyareapprovedbytheshareholdersattheAnnualGeneralMeeting.

�.18 Foreigncurrencytranslation

TransactionsinforeigncurrenciesaretranslatedintoRinggitMalaysiaatexchangeratescloselyapproximatingtothoserulingatthedateoftransactions.Gainsandlossesonexchangearedealtwithintheincomestatement.

Assets and liabilities in foreign exchange are translated into Ringgit Malaysia at rates of exchange closely

approximatingtothoserulingatthebalancesheetdate.



3. SIGNIFICANT ACCOUNTING POLICIES (CONT'D) �.19 Revenuerecognition

Revenueisrecognisedwhenitisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflow

totheenterpriseandtheamountofrevenuecanbemeasuredreliably. i) Constructioncontracts

Profit on construction contracts is recognised on the percentage of completion method where the

outcomeofthecontractscanbereliablyestimated.Whentheoutcomeofaconstructioncontractcannotbeestimatedreliably,contractrevenueisrecognisedtotheextentofcontractcostsincurredthatitisprobablewillberecoverable.

When it is probable that total contract costs will exceed total contract revenue, the expected loss isrecognisedasanexpenseimmediatelyasaprovisionforforeseeableloss.

ii) Propertydevelopment

Revenuefromsaleofdevelopmentpropertiesisaccountedforbythestageofcompletionmethodinrespectofallbuildingunitsthathavebeensold.Thestageofcompletionisdeterminedbyreferencetothecostsincurredto-datetothetotalestimatedcostswheretheoutcomeoftheprojectscanbereliablyestimated.Allestimatedlossesarefullyprovidedfor.

iii) Rentalandinterestincome

Rentalincomeandinterestincomearerecognisedintheincomestatementonanaccrualbasisunlesscollectionisdoubtful.

iv) Dividendincome

Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

�.�0 Employeebenefits i) Short-termbenefits

Wages,salaries,paidannualleaveandsickleave,bonusesandnonmonetarybenefitsarerecognisedas

anexpenseintheyearinwhichtheassociatedservicesarerenderedbyemployeesoftheGroup.Short-termaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerendered by employees that increase their entitlement to future compensated absences. Short-termnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

ii) Definedcontributionplan

Asrequiredbylaw,companiesinMalaysiamakecontributionstotheEmployeesProvidentFund("EPF").Suchcontributionsarerecognisedasanexpenseintheincomestatementasincurred.




�.�0 Employeebenefits(Cont'd) iii) Share-basedcompensation

TheCrestBuilderHoldingsBerhadEmployeeShareOptionScheme("ESOS"),anequitysettled,share-based

compensationplan,allowstheGroup'semployeetoacquireordinarysharesoftheCompany.Thetotalfairvalueofshareoptionsgrantedtoemployeesisrecognisedasanemployeecostwithacorrespondingincreaseintheshareoptionreservewithinequityoverthevestingperiodandtakingintoaccounttheprobabilitythattheoptionswillvest.Thefairvalueofshareoptionsismeasuredatgrantdate,takingintoaccount,ifany,themarketvestingconditionsuponwhichtheoptionsweregranteddueexcludingtheimpactofanynon-marketvestingconditions.Non-marketvestingconditionsareincludedinassumptionsaboutthenumberofoptionsthatareexpectedtobecomeexercisableonvestingdate.

Ateachbalancesheetdate,theGrouprevisesitsestimatesofthenumberofoptionsthatareexpectedtobecomeexercisableonvestingdate.Itrecognisedtheimpactoftherevisionoforiginalestimates,ifany,intheincomestatement,andacorrespondingadjustmenttoequityovertheremainingvestingperiod.Theequityamountisrecognisedintheshareoptionreserveuntiltheoptionisexercised,uponwhichitwillbetransferredtosharepremium,oruntiltheoptionexpires,uponwhichitwillbetransferreddirectlytoretainedearnings.

Theproceedsreceivednetofanydirectlyattributabletransactioncostsarecreditedtoequitywhentheoptionsareexercised.

�.�1 Impairmentofassets

The carrying values of assets other than investment properties, construction contract assets, propertydevelopmentcosts,arereviewedforimpairmentateachbalancesheetdatetodeterminewhetherthereisanindicationthattheassetsmightbeimpaired.Ifanyofsuchindicationexists,theasset'srecoverableamountisestimatedtodeterminetheamountofimpairmentloss.

Forgoodwillandintangibleassetsthathaveanindefiniteusefullife,therecoverableamountisestimatedateachbalancesheetdateormorefrequentlywhenindicatorsofimpairmentareidentified.

Forthepurposeofimpairmenttestingoftheseassets,recoverableamountisdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,recoverableamountisdeterminedforthecash-generatingunit("CGU")towhichtheassetbelongsto.Goodwillacquiredinabusinesscombinationis,fromthedateoftheacquisition,allocatedtoeachoftheGroup'sCGUs,orgroupsofCGUs,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveifwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupofunits.

Therecoverableamountofanassetisthehigherofanasset'sorCGU'sfairvaluelesscoststosellanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theassetisconsideredimpairedandiswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Animpairmentlossischargedtotheincomestatementimmediately,unlesstheassetiscarriedatrevalued

amount.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecreasetotheextentofpreviouslyrecognisedrevaluationsurplusforthesameasset.




�.�1 Impairmentofassets(Cont'd)

Impairmentlossongoodwillisnotreversedinasubsequentperiod.Animpairmentlossofanassetotherthangoodwillisreversedif,andonlyif,therehasbeenachangeinestimatesusedtodeterminetheasset'srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamounttotheextentofthecarryingamountoftheassetthatwouldhavebeendetermined(netofamortisationanddepreciation)hadnoimpairmentlossbeenrecognised.Thereversalisrecognisedintheincomestatementimmediately,unlesstheassetiscarriedatrevaluedamount.Areversalofanimpairmentlossonarevaluedassetiscrediteddirectlytorevaluationsurplus.However,totheextentthatanimpairmentlossonthesamerevaluedassetwaspreviouslyrecognisedasanexpenseintheincomestatement,areversalofthatimpairmentlossisrecognisedasincomeintheincomestatement.

�.�� Borrowingcosts

Interestincurredonborrowingsdirectlyassociatedwithdevelopmentpropertiesiscapitalisedandincludedaspartofdevelopmentexpenditure.

Interestcostsonborrowingstofinancetheconstructionofproperty,plantandequipmentarecapitalisedaspartofthecostoftheproperty,plantandequipmentduringtheperiodoftimethatisrequiredtocompleteandpreparetheproperty,plantandequipmentforitsintendeduse.

Allotherinterestexpenseandothercostsincurredinconnectionwithborrowingsareexpensedasincurred.

�.�� Incometax

Incometaxontheprofitorlosscomprisescurrentanddeferredtax.Currenttaxistheexpectedamountofincometaxespayableinrespectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferredtax isprovidedfor,usingtheliabilitymethod,ontemporarydifferencesatthebalancesheetdatebetween the tax bases of assets and liabilities and their carrying amounts in the financial statements. Inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.

Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillortheamountofanyexcessoftheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofthecombination.

�.�� Cashandcashequivalents

Cashandcashequivalentscomprisebankbalances,cashonhandandshort-termhighlyliquidassetsthatare

readilyconvertibletocashwithinsignificantriskofchangesinvaluelessbankborrowingsthatarenotsubjecttofixedtermofrepayment.




�.�5 Financialinstruments

Financialinstrumentscarriedonthebalancesheetincludecashandcashequivalents,investments,receivables,payablesandborrowings. i) Financialinstrumentsrecognisedonthebalancesheet

FinancialinstrumentsarerecognisedonthebalancesheetwhentheGrouphasbecomeapartytothe

contractualprovisionsoftheinstruments.

Financial instruments are classified as liabilities or equity in accordance with the substance of thecontractualarrangement.Interests,dividends,gainsandlossesrelatingtofinancialinstrumentsclassifiedasliabilities,arereportedasexpenseorincome.Distributionstoholdersoffinancialinstrumentsclassifiedasequityarechargeddirectlytoequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttooffsetandintendstosettleeitheronanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

Theparticularrecognitionmethodadoptedforfinancialinstrumentsrecognisedonthebalancesheetisdisclosedintheindividualpolicystatementsassociatedwitheachitem.

TheGrouphasnotusedanyderivativesfinancialinstrument.

ii) Fairvaluesestimationfordisclosurepurposes

In assessing the fair value of financial instruments, the Group uses a variety of methods and makesassumptionsthatarebasedonmarketconditionsexistingateachbalancesheetdate.ThefairvalueoftradedICULSarebasedonquotedmarketpricesatthebalancesheetdate.

Thecarryingamountsforfinancialassetsandliabilitieswithamaturityoflessthanone(1)yearareassumedtoapproximatetheirfairvalues.

�.�6 Segmentreporting

SegmentreportingispresentedforenhancedassessmentoftheGroup'srisksandreturns.Businesssegmentsprovideproductsorservicesthataresubjecttoriskandreturnsthataredifferentfromthoseofotherbusinesssegments.

Segment revenue, expense, assets and liabilities are those amounts resulting from the operating activitiesofasegmentthataredirectlyattributabletothesegmentandtherelevantportionthatcanbeallocatedona reasonablebasis tothesegment.Segmentrevenue,expense,assetsand liabilitiesaredeterminedbeforeintragroupbalancesandintragrouptransactionsareeliminatedaspartoftheconsolidationprocess,excepttotheextentthatsuchintragroupbalancesandtransactionsarebetweengroupenterpriseswithinasinglesegment.



4. PROPERTY, PLANT AND EQUIPMENT

GROUP At Current At Net book value 1 / 1 / 2007 Transfers Additions Disposals depreciation 31 / 12 / 2007 RM RM RM RM RM RM Freeholdland �,��6,760 – – �87,107 – �,0�9,65� Buildings 1,177,0�9 – – 1�0,��5 �8,551 1,0�8,1�� Building-in-progress �7,887,��0 (��,9��,0��) 15,056,6�� – – – Equipment,furniture andfittings 1,15�,78� – 656,810 – �8�,60� 1,��6,991 Lightequipment 1,��8,168 – 1,��7,700 – 591,098 �,00�,770 Plantandmachinery �,7�5,10� – 1,86�,600 – 1,955,508 �,65�,19� Motorvehicles �,��,��1 – 1,067,�� 6,�89 780,7�� ,59�,551 �1,991,60� (��,9��,0��) 19,89�,066 ��,8�1 �,7�0,�8� 1�,755,�0� At Current At Net book value 1 / 1 / 2006 Transfers Additions Disposals depreciation 31 / 12 / 2006 RM RM RM RM RM RM Freeholdland �,��6,760 – – – – �,��6,760 Buildings 1,�05,8�0 – – – �8,791 1,177,0�9 Building-in-progress �5,67�,�95 (8,589,9��) 10,80�,958 – – �7,887,��0 Equipment,furniture andfittings 1,�5�,�6� – 107,�09 �,�50 �01,��9 1,15�,78� Lightequipment 997,�08 – 7�5,580 – �7�,6�0 1,��8,168 Plantandmachinery 7,�17,��1 – 1,005,000 �0,500 �,�56,819 �,7�5,10� Motorvehicles 1,7��,899 – 1,��,786 �1,0�� 695,�� ,��,��1 �1,617,776 (8,589,9��) 1�,965,5�� ,77� �,957,001 �1,991,60�



4. PROPERTY, PLANT AND EQUIPMENT (CONT'D)

Accumulated Net book 2007 Cost depreciation value RM RM RM

Freeholdland �,0�9,65� – �,0�9,65� Buildings 1,�95,978 �67,8�5 1,0�8,1�� Building-in-progress – – – Equipment,furnitureandfittings �,�86,5�1 �,859,5�0 1,��6,991 Lightequipment �,609,�9� �,60�,6�� ,00�,770 Plantandmachinery ��,701,�� 19,0�8,0�8 �,65�,19� Motorvehicles 7,0�9,117 �,�56,566 �,59�,551 ��,991,895 �9,��6,59� 1�,755,�0�

Accumulated Net book 2006 Cost depreciation value RM RM RM Freeholdland �,��6,760 – �,��6,760 Buildings 1,��9,5�1 �6�,�9� 1,177,0�9 Buildings-in-progress �7,887,��0 – �7,887,��0 Equipment,furnitureandfittings �,6�9,7�� ,�7�,9�9 1,15�,78� Lightequipment �,�61,69� �,01�,5�6 1,��8,168 Plantandmachinery ��,017,6�� 17,�7�,5�0 �,7�5,10� Motorvehicles 7,�8�,001 �,9�9,670 �,��,��1 68,95�,750 �6,96�,1�7 �1,991,60� COMPANY At Current At Net book value 1 / 1 / 2007 Additions Disposals depreciation 31 / 12 / 2007 RM RM RM RM RM Equipment,furnitureandfittings 9,6�� – – 1,��6 8,197

At Current At Net book value 1 / 1 / 2006 Additions Disposals depreciation 31 / 12 / 2006 RM RM RM RM RM Equipment,furnitureandfittings 11,090 – – 1,��7 9,6��



4. PROPERTY, PLANT AND EQUIPMENT (CONT'D)

Accumulated Net book 2007 Cost depreciation value RM RM RM

Equipment,furnitureandfittings 1�,�65 6,�68 8,197 Accumulated Net book 2006 Cost depreciation value RM RM RM Equipment,furnitureandfittings 1�,�65 �,8�� 9,6�� Thenetbookvalueofassetsacquiredunderhirepurchasearrangementsofwhichinstalmentsarestilloutstanding

atthebalancesheetdateare:-

GROUP 2007 2006 RM RM Equipment,furnitureandfittings 9�,800 1�6,�00 Plantandmachinery �,�15,��8 �,977,1�0 Motorvehicles �,�5�,�97 �,1�8,�70

5,86�,5�5 5,��1,800

The net book value of freehold land amounting to RM�57,697 (�006 : RM�57,697) of the Group are pledged for

borrowingsasreferredtoinNote�9tothefinancialstatements.

Duringthefinancialyear,theGroupacquiredproperty,plantandequipmentwithanaggregatecostofRM19,760,7��(�006 : RM1�,965,5��) of which RM�,777,8�� (�006 : RM�,07�,000) were acquired by means of hire purchasearrangements.

Includedinbuilding-in-progressisinterestexpensecapitalisedduringthefinancialyearamountingtoRM�55,15�

(�006:RM�9�,011).

Includedinbuilding-in-progressisanamountofNIL(�006:RM8,180,101)ascribabletoleaseholdlandwithanunexpiredleaseperiodofmorethanfifty(50)years.TheleaseholdlandispledgedforborrowingsasreferredtoinNote�9tothefinancialstatements.



5. INVESTMENT PROPERTIES

GROUP 2007 2006 RM RM

At1January 5,115,000 5,798,�1� Transferfrompropertyplantandequipment ��,9��,0�� – Additionsduringtheyear �,��8,000 – Disposalsduringtheyear (1,00�,000) (1,01�,968) Fairvalueadjustmentsoninvestmentproperties �8,506,961 ��1,75�

At�1December 88,011,005 5,115,000

Thecarryingamountofinvestmentpropertiesconsistsof:- GROUP 2007 2006 RM RM Freeholdland 1,�66,667 1,7��,�� Leaseholdland �,800,�� 7�,�� Buildings 8�,9��,005 �,908,��

88,011,005 5,115,000

LeaseholdlandoftheGroupisheldonalongleasewithanunexpeiredperiodofmorethanfifty(50)years. Netbookvalueofassetspledgedassecurityforborrowings:- GROUP 2007 2006 RM RM Leaseholdland �,�9�,667 166,667 Building 79,�57,��8 ��,��

6. INVESTMENT IN SUBSIDIARY COMPANIES

GROUP 2007 2006 RM RM Unquotedshares,atcost 9�,765,�70 9�,765,�70



6. INVESTMENT IN SUBSIDIARY COMPANIES (CONT'D)

The Subsidiary Companies which are incorporated in Malaysia are as follows :-

Effective Name of Company Equity Interest Principal Activity 2007 2006 % %

Crest Builder Sdn Bhd 100 100 Construction Crestland Development Sdn Bhd 100 100 Property investment CBTech (M) Sdn Bhd 100 100 Mechanical and electrical engineering services

3 Two Square Sdn Bhd 100 100 Property investment and Nepfield Sdn Bhd 100 100 Property investment

Crest Builder International Sdn Bhd 100 100 Investment holding CB Land Sdn Bhd 100 100 Property investment and property development

Crestland Project Management Sdn Bhd 100 100 Project management Vertical Success Sdn Bhd 100 100 Property investment and property development

7. INTERESTS IN ASSOCIATED COMPANY


At cost Unquoted shares – 406,383 Share of accumulated losses – (59,883)

– 346,500 Less : Written off during the year – (346,500)

– –



7. INTERESTS IN ASSOCIATED COMPANY (CONT'D)


Representedby:- Shareofnettangibleassets – – Premiumonacquisition – –

– –

TheAssociatedCompanyisincorporatedintheKingdomofBahrain. Effective Name of Company Equity Interest Principal Activity 2007 2006 % % CrestBuilderBahrainW.L.L. NIL NIL Buildingcontractor Duringthepreviousfinancialyear,theAssociatedCompanyhadpermanentlyceasedoperation.Hence,theamount

ofinvestmentinAssociatedCompanyisfullywrittenoffaccordingly.

8. OTHER INVESTMENTS

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Atcost UnquotedbondsofcorporationinMalaysia 8,500,000 �,500,000 8,500,000 �,500,000 Transferableclubmembership 90,000 90,000 – –

8,590,000 �,590,000 8,500,000 �,500,000

Less:Accumulatedimpairmentlosses (�6,000) (�6,000) – –

8,55�,000 �,55�,000 8,500,000 �,500,000



9. INTANGIBLE ASSETS

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM At1January 67,055,�6� 67,055,�6� ��,�50,999 ��,�50,999 Less: Writtenoffduringtheyear (��,�50,999) – (��,�50,999) –

At�1December ��,60�,�6� 67,055,�6� – ��,�50,999

On�7March�008,theMalaysianInstituteofAccountantsissuedtheFRSICConsensus5/�008AccountingForPremium

PaidForTransferOfListingStatusInAReverseTakeoverScenario(AcquisitionOfTheListingStatusOfACompanyThatWasNotItselfAGoingConcern).TheConsensusrequirespaymentforlistingstatustobeexpensedofftotheincomestatement.

HenceincompliancewiththeConsensus,theGroupandtheCompanyhadwrittenoffanamountofRM��,�50,999(�006:NIL)representingthepremiumpaidforlistingstatusthatwaspreviouslyincludedasintangibleasset. 9.1 Impairmenttestsforgoodwill

GoodwillhasbeenallocatedtotheGroup'sCGUsidentifiedaccordingtothebusinesssegmentasfollows:-

Investment Property Construction holding development Total RM RM RM RM At�1December�007 ��,550,09� ��,988 �1,�8� ��,60�,�6�

At�1December�006 61,500,69� 1,�9�,�55 �,160,�15 67,055,�6�

9.� Keyassumptionsusedinvalue-in-usecalculations

Therecoverableamountofacashgeneratingunit("CGU")isdeterminedbasedonvalue-in-usecalculations

usingcashflowprojectionsbasedonfinancialforecastsapprovedbymanagementforthenextone(1)year.Cashflowsbeyondthenextone(1)yearareextrapolatedusingthegrowthratesasstatedbelow.Thekeyassumptionsusedforvalue-inusecalculationsare:-

2007 2006 Discount Growth Discount Growth rate rate rate rate % % % % Construction 1�-00 10-00 1�-00 10-00 Propertydevelopment 1�-00 10-00 1�-00 10-00



9. INTANGIBLE ASSETS (CONT'D)

9.� Keyassumptionsusedinvalue-in-usecalculations(Cont'd)

Thefollowingdescribeseachkeyassumptiononwhichthemanagementhasbaseditscashflowprojectionstoundertakeimpairmenttestingofgoodwill:- i) Discountrate

ThediscountratesusedarebasedontheweightedaveragecostofcapitaloftheGroup.

ii) Growthrate

ThegrowthratesusedareconsistentwiththelongtermaveragegrowthratefortheGroup.

9.� Sensitivitytochangesinassumption

With regard to the assessment of value-in-use of the construction and property development unit, the

managementbelievesthatnoreasonablepossiblechangeinanyoftheabovekeyassumptionswouldcausethecarryingvaluesoftheunitstomateriallyexceedtheirrecoverableamount.

10. LAND HELD FOR PROPERTY DEVELOPMENT


Atcost Freeholdland At1January �9,�71,�7� �9,�71,�75 Additionsduringtheyear – (�) Transferstoproperty,plantandequipment (11,��7,�7�) –

At�1December 18,0��,000 �9,�71,�7�

Developmentexpenditure At1January �,199,6�8 1,8��,019 Costsincurredduringtheyear 756,�19 �,�76,609 Transferstoproperty,plantandequipment (1,86�,�1�) –

At�1December �,091,7�� ,199,6�8

Landheldforpropertydevelopmentasat�1December �1,1�5,7�� ,�71,001

Includedindevelopmentexpenditureincurredduringthefinancialyearisinterestexpensecapitalisedamountingto

RM�60,815(�006:RM1,0�9,999).

FreeholdlandamountingtoRM11,1�7,609(�006:RM��,�5�,98�)ispledgedforborrowingsasreferredtoinNote�9tothefinancialstatements.



11. PROPERTY DEVELOPMENT COSTS

Propertydevelopmentcostscomprisethefollowing:-


Propertydevelopmentcostsat1January:- Leaseholdland ��,�19,899 17,791,515 Developmentexpenditure �7,089,111 1�,00�,�9�

59,�09,010 �9,79�,907

Costsincurredduringtheyear:- Freeholdland – – Leaseholdland 6,��7,786 – Developmentexpenditure �1,�05,101 �0,9�5,170

�7,�5�,887 �0,9�5,170

Coststransferredfromlandheldforpropertydevelopment:- Freeholdland 11,��7,�7� – Leaseholdland – – Developmentexpenditure 1,86�,�1� –

1�,091,586 –

Coststransferredfromproperty,plantandequipment:- Leaseholdland – �,��8,�8� Developmentexpenditure – �,161,5�9

– 8,589,9��

Costsrecognisedinincomestatement:- At1January (�5,�68,978) (�,�05,761) Recognisedduringtheyear (�7,11�,8�9) (�1,06�,�17)

At�1December (7�,�8�,807) (�5,�68,978)

Transferofunsoldpropertiestoinventories:- Currentyear (�1,9�9,60�) –

Propertydevelopmentcostsat�1December 15,5�0,07� ��,0�0,0��

Included in development expenditure incurred during the year is interest expense capitalised amounting to

RM1,8�7,967(�006:RM760,585).

ThefreeholdandleaseholdlandarepledgedforborrowingsasreferredtoinNote�9tothefinancialstatements.



12. INVENTORIES


Atcost Completedproperties 6,87�,�05 –

13. TRADE RECEIVABLES


Tradereceivables ��,799,��1 �,9�0,1�0 Progressbillingsreceivable 50,�09,��5 �5,��7,118 Less:Allowancefordoubtfuldebts (1,997,�75) (1,997,�75)

9�,011,081 �7,�69,78� Retentionsums �9,0�7,�5� �1,��,500

1�1,0�8,�� 78,69�,�8�

TheGroup'snormaltradecredittermrangesfrom1�to60days.Othercredittermsareassessedandapprovedona

case-by-casebasis.

TheGrouphasnosignificantconcentrationofcreditriskthatmayarisefromexposuretoasingledebtorortoagroupofdebtors.

14. AMOUNTS DUE FROM / (TO) CONTRACT CUSTOMERS


Constructioncostincurred 1,079,571,895 89�,0�6,819 Profitattributabletoworkperformedto-date 175,555,�97 155,607,5�7

1,�55,1�7,�9� 1,0�9,65�,�66 Less:Progressbillingsreceivedandreceivable (1,1��,�98,16�) (9�0,166,576)

111,6�9,��0 119,�87,790

Amountsduefromcontractcustomers 1��,56�,566 1��,�0�,997 Amountsduetocontractcustomers (10,9��,��6) (�,716,�07)

111,6�9,��0 119,�87,790

Advancesreceivedoncontracts,includedwithin progressbillingsreceivedandreceivable 5�,801,750 ��,5��,095



14. AMOUNTS DUE FROM / (TO) CONTRACT CUSTOMERS (CONT'D)

The costs incurred to-date on construction contracts include the following charges made during the financial year:-


Hireofplantandmachinery �,71�,�0� �,8�6,�95 Depreciationofproperty,plantandequipment �,�97,650 �,668,11� Leaserental 6��,�17 �0�,7�6 Rentalofpremises �81,7�6 �65,65�

15. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Otherreceivables 1�,6�1,5�� 781,5�0 9,5�6 9,5�6 Deposits 1,751,970 1,8�8,018 – – Prepayments 1,�50,�06 918,�8� 9�1,�5� 5��,�15

15,8��,799 �,5�7,9�1 9�0,988 55�,851 Less: Allowancefordoubtfuldebts (�87,8�1) (�87,8�1) – –

15,�55,978 �,060,100 9�0,988 55�,851

16. AMOUNTS DUE FROM SUBSIDIARY COMPANIES

Theamountsdueareunsecured,withoutanyfixedtermofrepaymentand interest freeexceptforanamountof

RM77,65�,�95(�006:RM�7,��9,9�7)whichbearsinterestat7-60%(�006:7-�5%)perannum.

17. CASH AND CASH EQUIVALENTS

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM

Short-terminvestments 5�,�55 51,75� – – Fixeddepositswithlicensedbanks 6,8�7,5�0 6,8�6,9�� – – Short-termdeposits 15,000,000 – – – Cashonhandandatbanks �,�56,865 1,��,968 ��1,051 5�,896

Cashandbankbalances ��,��7,850 8,��1,6�6 ��1,051 5�,896 Less: Bankoverdraft (�,87�,�61) (�,680,7�9) – – Fixeddepositspledged (�,�86,�00) (�,50�,686) – –

Cashandcashequivalents 17,189,089 �,156,�11 ��1,051 5�,896



17. CASH AND CASH EQUIVALENTS (CONT'D)

FixeddepositspledgedcompriseRM1,858,6�� (�006 :RM1,8�9,199) to licensedbanks forshort-termborrowingsfacilitiesandRM1,��7,777(�006:RM1,675,�87)beingbankguaranteesforperformancebondsissuedinfavourofthirdpartiesinrespectofprojectsundertakenbyaSubsidiaryCompany. Short-terminvestmentscompriseof investments in IncomeFund.Theweightedaverageeffective interestrateofinvestmentsinIncomeFundis�-�0%(�006:�-1�%).

Theaverageeffectiveinterestratesofdepositsatthebalancesheetdatewereasfollows:-

GROUP 2007 2006 % %

Short-termdepositswithlicensedbanks �-�0 – Fixeddepositswithlicensedbanks �-18 �-0�

Theaveragematuritiesofdepositsasattheendofthefinancialyearwereasfollows:- GROUP 2007 2006 Days Days

Short-termdepositswithlicensedbanks 1� – Fixeddepositswithlicensedbanks 10� 1�1

18. TRADE PAYABLES


Tradepayables 57,819,1�0 76,005,�85 Retentionsums �5,789,686 �1,9�9,578 8�,608,8�6 97,9��,86� ThenormaltradecredittermsgrantedtotheGrouprangesfrom�0to60days.

19. OTHER PAYABLES, DEPOSITS AND ACCRUALS

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Otherpayables 6,560,196 �,687,1�� 1,��7,�95 1,��7,�95 Deposits �,�01,6�8 76,�00 – – Accruals ��,�80,956 �,118,5�1 1,7��,9�6 ��0,�18 ��,��,780 5,881,975 �,95�,��1 1,657,71�



20. AMOUNTS DUE TO SUBSIDIARY COMPANIES

Theamountsdueareunsecured,interest-freeandwithoutanyfixedtermofrepayment.

21. HIRE PURCHASE CREDITORS

Theamountsowingtohirepurchasecreditorsarerepayableasfollows:-


Minimumhirepurchasepayments:- -notlaterthanoneyear �,068,8�8 �,06�,�15 -laterthanoneyearandnotlaterthanfiveyears 1,8�5,1�9 1,55�,005 -laterthanfiveyears – – �,89�,997 �,617,��0 Futurefinancechargesonhirepurchase (�9�,057) (�90,��9) Presentvalueofhirepurchasepayments �,600,9�0 �,��6,891 Presentvalueofhirepurchasepayments:- -notlaterthanoneyear 1,911,�55 1,897,506 -laterthanoneyearandnotlaterthanfiveyears 1,689,�85 1,��9,�85 -laterthanfiveyears – – �,600,9�0 �,��6,891 Less:Amountrepayablewithinoneyear (1,911,�55) (1,897,506) Amountrepayableafteroneyear 1,689,�85 1,��9,�85 Hirepurchasefacilitiesincurweightedaverageeffectiveinterestrateof�-71%(�006:�-91%)perannum.

Thematuritystructureofthehirepurchasecreditorsareasfollows:-


Amountrepayable:- Withinoneyear 1,911,�55 1,897,506 Afteroneyearbutwithintwoyears 1,�01,�� 1,07�,170 Aftertwoyearsbutwithinthreeyears �88,�5� �56,�15 Afterthreeyearsbutwithinfouryears – – Afterfouryearsbutwithinfiveyears – – Afterfiveyears – – �,600,9�0 �,��6,891



22. BANK OVERDRAFT

Bankoverdraftfacilitiesincuraneffectiveinterestrateof7-50%(�006:7-75%)perannum.

ThesecuritiesofthebankoverdraftfacilitiesareasdisclosedinNote�9tothefinancialstatements.

23. OTHER BANK BORROWINGS


Bankers'acceptance 19,�98,000 19,�97,000 Bridgingloan(Note�9) – �,500,000 Termloans(Note�9) 9,8�5,7�� 5,86�,16� �9,��,7�� 7,861,16� Thesecuritiesofthebankers'acceptance,bridgingloanandtermloanfacilitiesareasdisclosedinNote�9tothe

financialstatements.

Bankers'acceptanceincursaneffectiveinterestrateof�-58%(�006:�-�0%)perannum.

24. SHARE CAPITAL

GROUP AND COMPANY 2007 2006 Number of Nominal Number of Nominal shares value shares value RM RM

Authorised:- OrdinarysharesofRM1-00each 500,000,000 500,000,000 500,000,000 500,000,000

Issuedandfullypaid:- OrdinarysharesofRM1-00each

At1January 1��,750,�50 1��,750,�50 11�,7�9,500 11�,7�9,500 Issuedduringtheyear OptionsunderESOS 161,000 161,000 – – Conversionof:- -ICULS – – 10,000,000 10,000,000 -Warrants�00�/�01� – – 950 950 At�1December 1��,911,�50 1��,911,�50 1��,750,�50 1��,750,�50



24. SHARE CAPITAL (CONT'D) InformationinrespectofthenumberofshareoptionsgrantedundertheESOSisasfollows:- Number of share options 2007 2006

At1January – – Granted 6,780,000 – Exercised (161,000) – Lapsedduetoresignation (�89,500) – At�1December 6,1�9,500 –

ThemovementofoptionsoverunissuedordinarysharesofRM1-00eachoftheCompanygrantedundertheESOSduringthefinancialyearareasfollows:-

Number of share options Date of offer Option price 1 / 1 / 2007 Granted Exercised Lapsed 31 / 12 / 2007 19/�/�007 RM1-00 – 6,780,000 161,000 �89,500 6,1�9,500

25. RESERVES


NON-DISTRIBUTABLE:- Capitalreserve:- At1January �,0�5,5�� ,0�5,5�� ,0�5,5�� ,0�5,5�� IssueofsharesunderESOS ��,8�� – ��,8�� –

At�1December �,0�8,�75 �,0�5,5�� ,0�8,�75 �,0�5,5��

Shareoptionreserve:- ShareoptionsgrantedunderESOS �0�,5�5 – �0�,5�5 – IssueofsharesunderESOS (��,8��) – (��,8��) –

180,70� – 180,70� –



25. RESERVES (CONT'D)


Otherreserve:-

At1January – 1��,579 – 1��,579 Reservearisingfromequity componentofconvertibleloanstocks – (1��,579) – (1��,579)

At�1December – – – –

DISTRIBUTABLE:- Retainedearnings 88,�1�,�78 5�,5�6,10� 11,�70,�76 15,560,7�1

9�,��1,555 56,561,6�5 15,599,�5� 19,586,�8�

SubjecttotheagreementbytheInlandRevenueBoard,theCompanyhassufficienttaxcreditunderSection108oftheIncomeTaxAct,1967andtaxexemptaccountasat�1December�007,tofrank/distributeinfullitsunappropriatedprofitsbywayofdividendswithoutincurringadditionaltaxliability.

26. MINORITY INTERESTS

This consists of share capital and the proportion of reserve attributable to minority shareholder of SubsidiaryCompany.

27. IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS

On�5February�00�,theCompanyissued18,500,000nominalvalueof�year�%-7%ICULS�00�/�006atanominalvalueofRM1-00eachtoMGRCorporationBerhad(SpecialAdministratorsAppointed),MGRCorporationBerhad'screditorsand/orMGRCorporationBerhad'screditors'agent.

TheprincipaltermsoftheICULSareasfollows:- i) Paymentofinterest

TheCompanyagreeswiththeTrusteestopayaninterestof:-

a) firstyear-threepercent(�%);

b) secondyear-fivepercent(5%);and

c) thirdyear-sevenpercent(7%)perannum

basedonthenominalvalueoftheoriginal loanstocks,payable inarrearsannuallyonthefirstandsecond

anniversaryofthedateofissuanceoftheoriginalloanstocksandonthematuritydate.



27. IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS (CONT'D) ii) Conversionright

Eachloanstockholdershallhavetherighttoconvertallorpartofhisloanstocksintofullypaidnewordinary

sharesoftheCompanyattheconversionpriceonamarketdayduringtheconversionperiod.

AllloanstocksconvertedundertheTrustDeedshallceasetocarryinterestfromandincludingtheconversiondate.

Thenewordinarysharesissuedandallotteduponconversionoftheloanstocksshallrankparipassuinallrespectswiththeexistingsharesinissueattheconversiondate,exceptthattheywillnotbeentitledtoanydividends,rights,allotmentsand/orotherdistributions,ontheentitlementdateofwhich ispriortosuchconversiondate.

iii) Conversionprice

TheICULSwillbeconvertedonthebasisofone(1)ICULSforone(1)newordinaryshareofRM1-00eachintheCompany.

TheICULSarenotsecured.

TheproceedsreceivedfromtheICULShavebeensplitbetweentheliabilitycomponentandtheequitycomponent,representingthefairvalueoftheconversionoption.TheICULSareaccountedforinthebalancesheetoftheGroupandoftheCompanyasfollows:-

GROUP AND COMPANY 2007 2006 RM RM NominalvalueofICULS – 10,000,000 Equitycomponentnetofdeferredtax – (1��,580) Deferredtaxliability – (5�,��6)

Liabilitycomponent – 9,81�,08� AdjustmentforeffectofconversionofICULS:- ReductioninnominalvalueofICULS – (10,000,000) Reductioninequitycomponentnetofdeferredtax – 1��,580 Reductionindeferredtaxliability – 5�,��6

– –

Interestexpenserecognisedinincomestatement:- At1January – 1,�8�,5�� Recognisedduringtheyear – 116,666

At�1December – 1,500,�10

Interestpaid:- At1January – (800,�10) Paidduringtheyear – (700,000)

At�1December – (1,500,�10)

Liabilitycomponentasat�1December – –



27. IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS (CONT'D) InterestexpenseontheICULSiscalculatedontheeffectiveyieldbasisbyapplyingtheinterestrateofNIL(�006: 7-00%)fortheequivalentnon-convertibleloanstockstotheliabilitycomponentoftheICULS.

Atthedateofmaturityof��February�006,10,000,000ICULShavebeenautomaticallyconvertedinto10,000,000

newordinarysharesofRM1-00eachfullypaidataconversionofRM1-00pershare.

28. WARRANTS 2003 / 2013

TheWarrantsIssueinvolvesarenounceablerightsissueof��,000,000warrantstotheentitledshareholdersatanissuepriceofRM0-�0perwarrant,onthebasisof1-008warrantsforeveryfour(�)existingsharesheldontheentitlementdate.

TheprincipleobjectiveoftheWarrantsIssueistogeneratecashproceedsofRM7,�00,000,ofwhichRM7,000,000was

utilisedascashpaymenttoMGRCorporationBerhad'screditors.

TheWarrantsareconvertibleintofullypaid-upordinarysharesofRM1-00eachintheCompanyatanytimeonorbefore�9May�01�attherateofRM1-00cashperwarrantsubjecttothetermsandconditionssetoutintheDeedPoll.Warrantsnotexercisedduringtheperiodwillthereafterlapseandceasetobevalidforanypurpose.

Asat�1December�007,��,999,050(�006:��,999,050)warrantsremainunconverted.

29. LOANS

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Secured Bridgingloan – 8,811,885 – – Termloans 1�,0��,7�� 0,000,000 – – Unsecured Collaterisedloanobligation 85,000,000 �5,000,000 85,000,000 �5,000,000

98,0��,7�� 7�,811,885 85,000,000 �5,000,000 Less: Amountrepayablewithinoneyear (Note��) (9,8�5,7��) (8,�6�,16�) – –

Amountrepayableafteroneyear 88,187,999 65,��7,7�1 85,000,000 �5,000,000



29. LOANS (CONT'D)

�9.1 Thebankoverdraft,bankersacceptance,bridgingloanandtermloansaresecuredby:-

i) afirstlegalchargeovera��,�8�.57metersquare(5.5acre)ofleaseholdcommerciallandlocatedinSection19,PetalingJayaheldunderPajakanNegeriNo.�9�8,Lot��,Seksyen�6,BandarPetalingJaya,DaerahPetaling,SelangorDarulEhsan;

ii) afirstlegalchargeoverfreeholdlandknownasLot1�8��and1�8�5,Seksyen��,ShahAlam,SelangorheldunderGeran�0��7and�0��8,Lot1�8��and1�8�5,MukimDamansara,DistrictofPetalingJaya,StateofSelangorDarulEhsan;

iii) afirstandsecondlegalchargeagainsta�storeyshophousesituatedatNo.��,Jalan�0/�8,TamanDatuSenu,Sentul,KualaLumpurheldunderH.S.(D)No.��166,P.T.No.16�11,MukimofSetapak,DistrictofWilayahPersekutuan;

iv) afirstandsecondlegalchargeagainstfive(5)acresofvacantlandknownasE.M.R.8�58,LotNo.5��0,MukimofKapar,DistrictofKlang,SelangorDarulEhsan;

v) anassetpurchaseagreementandassetsaleagreementoveraSubsidiaryCompany'sassets;

vi) adeedofassignmentofallrights,interestandbenefitundertherelevantsaleandpurchaseagreementofallmoniesowingorpayableunderthefacilities;

vii) adeedofPowerofAttorney;

viii) anassignmentofsalesproceedsofthe��7office/retailunitsinfavourofthebankforallmoniesowingorpayableunderthefacilities;

ix) anassignmentofrentalproceedsandsalesproceeds(ifany)ofthecorporateofficeandcarparkbaysinfavourofthebankforallmoniesowingorpayableunderthefacilities;and

x) corporateguaranteesbytheCompanyanditsSubsidiaryCompany,CrestBuilderSdnBhd.

�9.� TheUnsecuredTermLoanFacilityagreementprovidesthattheCompanyshallsubscribefortheSubordinatedBondsissuedbyKerismaBerhad,acompanyspeciallyincorporatedforthepurposeofimplementingandcarryingoutaprimarycollateralisedloanobligationstransaction. TenurefortheUnsecuredTermLoanisforaperiodnotexceedingfive(5)yearsfromthedateofadvanceofthefacility.Suchtermloanisrepayableonalumpsumbasisonthelastdayofthetenureofthetermloan.



29. LOANS (CONT'D) Theaverageeffectiveinterestratesofloansatthebalancesheetdatewereasfollows:-

GROUP COMPANY 2007 2006 2007 2006 % % % % Bridgingloan – 7-00 – – Termloans 7-00 7-00 – – Collaterisedloanobligation 7-60 7-15 7-60 7-15

Thematuritystructureoftheloansareasfollows:- GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM

Amountrepayable:- Withinoneyear 9,8�5,7�� 8,�6�,16� – – Afteroneyearbutwithintwoyears �8,187,999 1�,��9,967 �5,000,000 – Aftertwoyearsbutwithinthreeyears – �8,878,069 – �5,000,000 Afterthreeyearsbutwithinfouryears – �,1�9,685 – – Afterfouryearsbutwithinfiveyears �0,000,000 – �0,000,000 – Afterfiveyears – – – –

98,0��,7�� 7�,811,885 85,000,000 �5,000,000

30. DEFERRED TAX LIABILITIES


At1January 759,511 1,778,90� – 5�,��6 Recognisedinincomestatement (�6�,9�7) (1,019,�9�) – (5�,��6)

At�1December �96,57� 759,511 – –

Presentedafterappropriateoffsettingasfollows:- Deferredtaxassets – – – – Deferredtaxliabilities �96,57� 759,511 – –



30. DEFERRED TAX LIABILITIES (CONT'D)

The components and movement of deferred tax liabilities during the financial year prior to offsetting are as follows:-

DeferredtaxliabilitiesoftheGroup:-

Accelerated Revaluation of Capital Plant and Convertible Allowances Machinery Loan Stocks Interest Total RM RM RM RM RM At1January�007 759,511 – – – 759,511 Reversedtoequity – – – – – Recognisedinthe incomestatement (�6�,9�7) – – – (�6�,9�7)

At�1December�007 �96,57� – – – �96,57�

At1January�006 1,0��,8�7 �86,691 5�,��6 �07,0�9 1,778,90� Reversedtoequity – – – (�07,0�9) (�07,0�9) Recognisedinthe incomestatement (�7�,��6) (�86,691) (5�,��6) – (61�,�6�)

At�1December�006 759,511 – – – 759,511

DeferredtaxliabilitiesoftheCompany:- Convertible Loan Stocks 2007 2006 RM RM At1January – 5�,��6 Deferredtaxincome – (5�,��6)

At�1December – –

Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitems:-

GROUP 2007 2006 RM RM Unutilisedtaxlosses 5,985 10,100

Theunutilisedtaxlossesandunabsorbedcapitalallowancesdonotexpireundercurrenttaxlegislation.Deferredtax

assetshavenotbeenrecognisedinrespectoftheseitemsbecauseitisnotprobablethatfuturetaxableprofitwillbeavailableagainstwhichtheGroupcanutilisethebenefits.



31. REVENUE AND COST OF SALES


Revenueiscategorisedasfollows:-

Dividendincome – – �8,000,000 1�,000,000 Interestincome 58,�80 100,75� 5,7�0,8�6 �,708,�69 Contractrevenue ��6,��,0�6 �66,897,�8� – – Salesofdevelopmentproperties 118,889,00� 51,175,�6� – – Carparkcollection 70,8�� – – – Rentalincomefrominvestmentproperties ��5,77� 9�,000 – –

�65,766,1�� 18,�66,�99 5�,7�0,8�6 15,708,�69

Costofsalesrepresentscostofconstructioncontractsandcostofdevelopmentpropertiessold.


Costofsalesiscategorisedasfollows:- Costofconstructioncontracts ��,559,506 ��9,076,96� Costofdevelopmentpropertiessold 7�,�8�,578 �1,06�,�17

�96,9��,08� �70,1�0,179



32. PROFIT FROM OPERATIONS

Profitfromoperationsisarrivedataftercharging:-


Allowancefordoubtfuldebts – �87,8�1 – – Auditors'remuneration -currentyear'sprovision -statutory 115,600 91,600 �0,000 �0,000 -nonstatutory �,800 �,000 �,800 �,000 -under/(over)provisioninprioryear 11,�00 (�,800) – – Depreciation �,7�0,�8� �,957,001 1,��6 1,��7 Directoperatingexpensesof investmentproperties -Revenuegeneratingduringtheyear �7,89� 10,�� – – -Nonrevenuegeneratingduringtheyear 16,69� 10,70� – – Directors'fee(Note��) �50,000 �50,000 �50,000 �50,000 Directors'otheremoluments(Note��) 1,��,�7� 1,1�5,�1� – 9,�00 Fairvalueadjustmentson investmentproperties – �66,8�6 – – Hireofplantandmachineries 15,�0� – – – Intangibleassetwrittenoff ��,�50,999 – ��,�50,999 – Investmentwrittenoff – ��6,500 – – Property,plantandequipmentwrittenoff �6,�89 ��,�7� – – Rentalexpenses �6�,890 156,000 – –

andcrediting:- Dividendincome – – �8,000,000 1�,000,000 Fairvalueadjustmentson investmentproperties �8,506,961 698,590 – – Gainondisposalofinvestmentproperties �6�,800 9�,�7� – – Gainondisposalofproperty, plantandequipment �81,9�8 �87,700 – – Interestincome 8�6,886 �6�,9�9 5,7�0,8�6 �,708,�69 Latepaymentinterest 1�7,6�� – – – Rentalincomefrom investmentproperties 157,560 1�6,960 – – Waiverofdebts – 195,��5 – –



33. DIRECTORS' REMUNERATION


ExecutiveDirectors -Allowances – 1,500 – 1,500 -Emoluments 1,��,�7� 1,116,01� – – -Fees 80,000 1�0,000 80,000 1�0,000

1,�0�,�7� 1,��7,51� 80,000 1�1,500

NonExecutiveDirectors

-Allowances – 7,800 – 7,800 -Fees 170,000 1�0,000 170,000 1�0,000

170,000 1�7,800 170,000 1�7,800

GRANDTOTAL 1,�7�,�7� 1,�75,�1� �50,000 �59,�00

ThenumberofDirectorsoftheGroupwhoseremunerationareanalysedintobandsofRM50,000isasfollows:-

Number of Directors 2007 2006 ExecutiveDirectors LessthanRM50,000 – – RM50,001-RM150,000 – – RM150,001-RM�00,000 – – RM�00,001-RM�50,000 1 � RM�50,001-RM�00,000 � – RM�00,001-RM�50,000 – 1 RM�50,001-RM�00,000 – – RM�00,001-RM�50,000 – – RM�50,001-RM500,000 – – RM500,001-RM550,000 – – RM550,001-RM600,000 1 1

� �

NonExecutiveDirectors LessthanRM50,000 � �

GRANDTOTAL 8 8



34. STAFF COSTS

Includedinthestaffcostsarethefollowing:-

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM EPFandSOCSO 898,�0� 8�5,1�6 – – ESOSemployeeexpenses �0�,5�5 – �0�,5�5 – Medicalexpenses ��1,7�� 7,7�� – – Messingandrefreshment �6,�� 91,�81 – – Salaries,overtime,bonusandallowances 6,5�7,��7 6,1�0,��6 – – Short-termaccumulating compensatedabsences 59,�8� 1�6,61� – – Stafftraining 8,�70 5,9�0 – – Staffwelfare 61,011 ��,�95 – –

Totalstaffcosts 8,0�6,�0� 7,�90,��5 �0�,5�5 –

35. FINANCE COSTS

Includedinfinancecostsarethefollowingchargesfortheyear:-


Bankoverdraftinterest �58,��5 ��0,�� – – Bankers'acceptanceinterest 1,006,809 786,505 – – Hirepurchaseinterest 169,515 �0�,1�8 – – Loanstockinterest – 116,666 – 116,666 Termloaninterest 6,519,6�9 �,�5�,501 6,��0,171 �,�5�,501



36. INCOME TAX EXPENSE

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Currentyear'sprovision 1�,069,�11 11,8�5,51� 1�,798,55� �,�00,89� (Over)/Underprovisionof taxationinprioryears (189,�60) 567,575 5�� (�,550)

1�,879,851 1�,�9�,089 1�,799,085 �,�97,�� Deferredtax:- Relatingtoorigination/ (reversal)oftemporarydifference 66,�05 (151,�8�) – – Deferredtaxincome relatingtorevaluationof plantandmachinery – (�86,691) – – Overprovisionof deferredtaxinprioryear (��9,��) (5�8,981) – –

(�6�,9�7) (967,056) – –

1�,616,91� 11,��6,0�� 1�,799,085 �,�97,��

Areconciliationofincometaxexpenseapplicabletoprofitbeforetaxationatthestatutoryincometaxratetoincome

taxexpenseattheeffectiveincometaxrateoftheGroupandoftheCompanyisasfollows:-

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Profitbeforetaxation 5�,810,181 �1,�60,�69 1�,1�5,51� 11,660,589

TaxationatMalaysianstatutorytaxrate -at�8% 1�,77�,5�9 10,701,607 �,5��,888 �,�6�,965 -uptoRM500,000at�0% ��7,18� �19,��7 – – Effectofdifferenttaxrate (�,888) (97�) – – Incomenotsubjecttotax (10,�97,��8) (1�0,156) – – Expensesnotdeductiblefortaxpurposes 9,51�,�0� 890,910 9,�5�,66� 1�5,9�8 Deferredtaxincome relatingtorevaluationof plantandmachinery – (�86,691) – – Deferredtaxassetsnot recognisedduringtheyear 1,0�8 �,�0� – – (Over)/Underprovisionof taxationinprioryears (189,�60) 567,575 5�� (�,550) Overprovisionof deferredtaxinprioryear (��9,��) (5�8,981) – –

1�,616,91� 11,��6,0�� 1�,799,085 �,�97,��



36. INCOME TAX EXPENSE (CONT'D)

GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM Taxsavingsrecognisedduring theyeararisingfrom:- -Utilisationofcurrentyear's capitalallowances 959,78� 871,�56 – – -Utilisationofunutilisedtax lossesbroughtforward frompreviousyear �,8�� – – –

SubjecttotheagreementbytheInlandRevenueBoard,theunutilisedtaxlossesavailableforutilisationagainstfuture

taxableprofitsareapproximatedtobeasfollows:-


Unutilisedtaxlosses ��,�00 ��,�00 – –

37. EARNINGS PER SHARE

�7.1 Basicearningspershare

ThebasicearningspershareiscalculatedbydividingtheGroup'sprofitfortheyearattributabletoordinaryequityholdersoftheCompanybytheweightedaveragenumberofordinarysharesinissueduringthefinancialyear.

GROUP 2007 2006 ProfitattributabletoordinaryequityholdersoftheCompany(RM) �0,19�,�67 �0,0��,��6

Weightedaveragenumberofordinarysharesinissue 1��,81�,6�5 1��,��,1�8

Basisearningspershare(sen) ��-�6 16-�9



37. EARNINGS PER SHARE (CONT'D)

�7.� Dilutedearningspershare

Forthepurposeofcalculatingdilutedearningspershare,theprofitfortheyearattributabletoordinaryequityholdersoftheCompanyandtheweightedaveragenumberofsharesinissueduringthefinancialyearhavebeenadjustedfortheeffectsofdilutivepotentialordinarysharesfromtheconversionofICULSandWarrants.TheamountofprofitfortheyearattributabletoordinaryequityholdersoftheCompanyisadjustedbytheaftertaxeffectofinterestexpenserecognisedduringthefinancialyearwhichwouldhavebeensavedonconversionoftheoutstandingICULSandWarrantsintoordinaryshares.TheadjustedweightedaveragenumberofsharesistheweightednumberofordinarysharesinissueduringthefinancialyearplustheweightedaveragenumberofordinaryshareswhichwouldbeissuedontheconversionoftheoutstandingICULSandWarrantsintoordinaryshares.TheICULSandWarrantsaredeemedtohavebeenconvertedintoordinarysharesatthedateofissue.

ThefullydilutedearningspershareiscalculatedbydividingtheadjustedprofitfortheyearattributabletoordinaryequityholdersoftheCompanybytheweightedaveragenumberofordinarysharesissuedandissuableassumingfullconversionofICULSandWarrantsasfollows:-

GROUP 2007 2006

ProfitattributabletoordinaryequityholdersoftheCompany(RM) �0,19�,�67 �0,0��,��6

Weightedaveragenumberofordinarysharesinissue 1��,81�,6�5 1��,��,1�8 Adjustmentforassumedconversionofwarrants �,7�5,�79 # AdjustmentforESOS 5�5,19� –

Adjustedweightedaveragenumberof ordinarysharesinissueandissuable 1�7,09�,118 1��,��,1�8

Dilutedearningspershare(sen) �1-6� N/A

#Nottakenintoaccountinthecomputationofdilutedearningspersharebecausetheeffectisanti-dilutive



38. DIVIDENDS

GROUP AND COMPANY 2007 2006 RM RM Finaldividendof�senlessincometaxat�8% perordinaryshareinrespectoffinancialyear ended�1December�005 – 1,78�,007 Firstandfinaldividendof5senlessincometaxat�7% perordinaryshareinrespectoffinancialyear ended�1December�006 �,516,89� –

�,516,89� 1,78�,007

TheDirectorsnowrecommendafirstandfinaldividendof7sengrossperordinarysharelessincometaxat�6%in

respectofthefinancialyearended�1December�007which,subjecttotheapprovalofthemembersattheforthcomingAnnualGeneralMeetingoftheCompany,willbepaidtoshareholderswhosenamesappearintheRecordofDepositorsonadatetobedeterminedbytheDirectors.Basedontheoutstandingissuedandpaid-upsharecapitaloftheCompanyasat�1December�007of1��,911,�50ordinaryshares,thefinaldividendamountstoRM6,�18,61�(5-18sennetperordinaryshare).Suchdividend,ifapprovedbytheshareholderswillbeaccountedforintheshareholders'equityasanappropriationofretainedearningsinthefinancialyearending�1December�008.

39. FINANCIAL INSTRUMENTS

�9.1 Financialriskmanagementobjectivesandpolicies

TheGroup'sfinancialriskmanagementpolicyseekstoensurethatadequatefinancialresourcesareavailablefor

thedevelopmentoftheGroup'sbusinesseswhilstmanagingitsinterestrate,credit,market,foreigncurrencyandliquidityrisks.TheGroupoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoard.

i) Interestraterisk

TheGroup'sprimaryinterestrateriskrelatesmainlytoborrowingsanddeposits.TheGroupmanagesitsinterestrateexposurebymaintainingaprudentmixoffixedandfloatingrateborrowings.TheGroupactivelyreviewsitsdebtportfolio,takingintoaccounttheinvestmentholdingperiodandnatureofassets.TheGroup'sinvestmentinfinancialassetsaremainlyshort-terminnatureandhavebeenplacedinfixeddepositswhichyieldbetterreturnsthancashatbank.

Theinformationonmaturitydatesandeffectiveinterestratesonfinancialassetsandliabilitiesaredisclosedintheirrespectivenotes.Asat�1December�007,theGrouphasnotenteredintoanyhedginginstrumentsarrangementstominimiseitsexposuretointerestratevolatility.

ii) Creditrisk

Creditriskiscontrolledbytheapplicationofcreditapprovals,limitsandmonitoringprocedures.CreditrisksareminimisedandmonitoredbystrictlylimitingtheGroup'sassociationtobusinesspartnerswithhighcreditworthiness.TradereceivablesaremonitoredonanongoingbasisbytheGroup'smanagementreportingprocedures.



39. FINANCIAL INSTRUMENTS (CONT'D) �9.1 Financialriskmanagementobjectivesandpolicies(Cont'd)

iii) Marketrisk

TheGrouphasinplacepoliciestomanageitsexposuretofluctuationinthepricesofthekeyrawmaterials

usedintheoperationsthroughclosemonitoringandbuyingaheadinanticipatingofsignificantpriceincrease,wherepossible.

iv) Foreigncurrencyrisk

TheGrouphastransactionalcurrencyexposure,whicharisefromforeigncurrencytransactionsenteredintobytheGroupincurrenciesotherthantheirfunctionalcurrencies.

TheGroupmanagesitstransactionalexposurebymatching,asfaraspossible,itsreceiptsandpaymentsineachindividualcurrencies.TheGroupdoesnotuseanyforeigncurrencyinstrumentstohedgeforeigncurrencyexposure.

v) Liquidityrisk

TheGroupactivelymanagesitsdebtmaturityprofile,operatingcashflowsandtheavailabilityoffundingsoastoensurethatallrefinancing,repaymentandfundingneedsaremet.Aspartofitsoverallprudentliquidity management, the Group maintains sufficient levels of cash or cash convertible investmentstomeetitsworkingcapitalrequirements.Inaddition,theGroupstrivestomaintainavailablebankingfacilitiesofareasonableleveltoitsoveralldebtposition.Asfaraspossible,theGroupraisescommittedfundingfromfinancialinstitutionsandprudentlybalancesitsportfoliowithsomeshorttermfundingsoastoachieveoverallcosteffectiveness.

�9.� Fairvalues

TheaggregatenetfairvaluesoffinancialliabilitieswhicharenotcarriedatfairvalueonthebalancesheetoftheGroupandoftheCompanyasattheendofthefinancialyeararerepresentedasfollows:-

2007 2006 Carrying Fair Carrying Fair amount value amount value RM RM RM RM GROUP Financialliabilities Bridgingloanandtermloans 1�,0��,7�� 1�,0��,7�� 8,811,885 �8,��,75�

Itisnotpracticaltoestimatethefairvaluesoftheamountsduefrom/toSubsidiaryCompaniesdueprincipally

toalackoffixedrepaymenttermenteredbythepartiesinvolvedwithoutincurringexcessivecosts.However,theGroupdoesnotanticipatethecarryingamountsrecordedat thebalancesheetdatetobesignificantlydifferentfromthevaluesthatwouldeventuallybereceivedorsettled.

ItisnotpracticaltoestimatethefairvalueoftheGroup'snon-currentunquotedinvestmentsbecauseofthelackofquotedmarketpricesandtheinabilitytoestimatefairvaluewithoutincurringexcessivecosts.



39. FINANCIAL INSTRUMENTS (CONT'D) �9.� Fairvalues(Cont'd) Thefollowingmethodsandassumptionsareusedtoestimatethefairvaluesofthefollowingclassesoffinancial

instruments:- i) Cashandcashequivalents,receivables,payablesandshort-termborrowings

Thecarryingamountsapproximatefairvaluesduetotherelativelyshort-termmaturityofthesefinancial

instruments.

ii) Hirepurchaseloans

Thecarryingvaluesofhirepurchaseloansapproximatetheirfairvalues.

iii) Quotedloanstocks

ThefairvalueofquotedICULSaredeterminedbyreferencetostockexchangequotedmarketbidpricesatthecloseofthebusinessonthebalancesheetdate.

iv) Borrowings

Thecarryingvaluesoflongtermborrowingsapproximatetheirfairvalues.

40. CONTINGENT LIABILITIES


Guaranteesgiventofinancialinstitutionin respectoffacilitiesgrantedto SubsidiaryCompanies – – ��8,�69,000 ��,�69,000

Guaranteesissuedinfavour ofthirdparties 51,9��,861 �9,9�9,�89 – –

41. CAPITAL COMMITMENT


Approvedandcontractedfor -Landheldforpropertydevelopment 6,��7,517 6,��7,517 – –



42. RELATED PARTY TRANSACTIONS ��.1 Inadditiontothetransactionsdetailedelsewhereinthefinancialstatements,theGroupandtheCompanyhad

thefollowingtransactionswithrelatedpartiesduringthefinancialyear:-

Relatedparty Relationship FarimaSdnBhd CompanyconnectedtoaDirector oftheCompany

GrandlandCorporationSdnBhd CompanyconnectedtocertainDirectors oftheCompany


Contractincomereceived/ receivablefrom:- -FarimaSdnBhd 8�,7�5,008 61,��8,�65 – –

Rentalincomereceivedfrom:- -FarimaSdnBhd �6,000 �6,000 – –

Rentalpaidto:- -GrandlandCorporationSdnBhd 156,000 156,000 – –

TheoutstandingyearendbalancesforrelatedpartytransactionswiththerelatedpartiesinwhichaDirectoroftheCompanyhassignificantfinancialinterestareasfollows:-


Progressbillingsreceivable 1�,8��,089 1�,169,�� Retentionsums 9,�9�,978 6,800,�91

��,��7,067 �0,969,5�5

The Directors are of the opinion that the transactions above have been entered into in the normal courseofbusinessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromthoseobtainableintransactionswithunrelatedparties.



42. RELATED PARTY TRANSACTIONS (CONT'D)

��.� Compensationofkeymanagementpersonnel

The remuneration of Directors and other members of key management during the financial year was as follows:-


Short-termemployeebenefits 1,585,57� 1,��,51� 80,000 1�1,500

Includedinthetotalkeymanagementpersonnelare:- GROUP COMPANY 2007 2006 2007 2006 RM RM RM RM

Directors'remuneration 1,�0�,�7� 1,��7,51� 80,000 1�1,500

43. SIGNIFICANT EVENTS DURING THE YEAR

��.1 On 8 January �007, the Company had entered into facility agreement with RHB Investment Bank Berhad

(formerlyknownasRHBSakuraMerchantBankersBerhad)andPrimaUnoBerhadforanunsecuredfixedtermloanfacilityunderPrimaryCollateralisedLoanObligationprogrammeuptothemaximumprincipalamountofRM�0,000,000.

��.� On1�March�007,theCompanyhadobtainedtheapprovalfromitsshareholdersfortheestablishmentofanemployeeshareoptionschemefortheeligibleemployeesandDirectorsoftheCompanyanditsSubsidiaryCompanies.

44. SIGNIFICANT SUBSEQUENT EVENTS

Upto�March�008,theissuedandpaid-upsharecapitaloftheCompanywasincreasedfrom1��,911,�50to1��,089,�50

bywayoftheissuanceof178,000newordinarysharesofRM1-00eachpursuanttotheCompany'sEmployeeShareOptionScheme.



45. SEGMENTAL REPORTING �5.1 BusinessSegments:-

TheGroupisorganisedintothreemajorbusinesssegments:-

i) Construction - generalconstruction,mechanicalandelectricalengineeringservices; ii) Investmentholding - investmentinshares,propertiesandotherinvestmentrelatedactivities;and iii) Propertydevelopment - developmentofresidentialandcommercialproperties

TheDirectorsareoftheopinionthatallinter-segmenttransactionshavebeenenteredintointhenormalcourse

ofbusinessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromthoseobtainableintransactionswithunrelatedparties.Inter-segmentpricingisdeterminedbasedontermsmutuallyagreedbetweentherespectivecompanies.

Investment Property As at 31 December 2007 Construction holding development Eliminations Consolidated RM RM RM RM RM Revenue Externalsales ��6,��,0�6 18�,079 119,16�,009 – �65,766,1�� Inter-segmentsales �7,908,5�� 5�,68�,��7 – (91,590,891) –

Totalrevenue �8�,��0,580 5�,86�,��6 119,16�,009 (91,590,891) �65,766,1��

Results Segmentresults 11,570,958 (��,�50,�61) 8�,�50,0�5 – 60,�70,6�� Unallocated corporateexpenses �9�,857

60,86�,�89 Financecosts (8,05�,�08) Incometaxexpense (1�,616,91�)

Profitaftertaxation �0,19�,�67

Assets Segmentassets �5�,�8�,5�6 �6,151,�� 18�,1��,7�� – �81,767,510 Unallocated corporateassets �,��,�15 878,8�9 – – 5,�1�,�5�

Consolidatedtotalassets �86,980,76�

Liabilities Segmentliabilities 97,��,5�� ,97�,�9� �8,981,��6 – 1�9,176,�81 Unallocated corporateliabilities �7,0�5,98� 85,0�9,70� 19,�75,79� – 1�1,�51,�78

Consolidatedtotalliabilities �70,6�7,759

Otherinformation Capitalexpenditure �,17�,8�9 – ��,6��,�� – �8,808,17� Depreciation �,657,�05 1,��6 81,6�1 – �,7�0,�8� Non-cashexpenses otherthandepreciation andamortisation 98,895 �0�,5�5 – – �0�,��0 Non-cashincome 576,7�8 17�,500 �8,509,985 – �9,�60,��



45. SEGMENTAL REPORTING (CONT'D)

Investment Property As at 31 December 2006 Construction holding development Eliminations Consolidated RM RM RM RM RM Revenue Externalsales �66,897,�8� 19�,75� 51,175,�6� – �18,�66,�99 Inter-segmentsales �7,908,5�� 15,607,617 – (5�,516,161) –

Totalrevenue �0�,805,9�7 15,801,�69 51,175,�6� (5�,516,161) �18,�66,�99

Results Segmentresults 7,080,66� �8�,971 �8,9��,960 – �6,�00,59� Unallocated corporateexpenses (1�1,08�)

�6,159,511 Financecosts (�,699,1��) Incometaxexpense (11,��6,0��)

Profitaftertaxation �0,0��,��6

Assets Segmentassets ��5,�81,89� 7�,8�1,1�9 100,��1,98� – �00,5�5,0�5 Unallocated corporateassets �,6�8,87� 1,151,��7 59,�1� – �,8�9,��1

Consolidatedtotalassets �0�,�7�,�56

Liabilities Segmentliabilities 106,�91,91� 1,68�,1�� 11,7��,6�6 – 119,810,68� Unallocated corporateliabilities �6,579,955 �5,00�,16� ��,669,560 – 10�,�51,679

Consolidatedtotalliabilities ��,06�,�61

Otherinformation Capitalexpenditure �,155,�16 – 16,899,90� – �0,055,��0 Depreciation �,899,1�� 1,��7 56,�� – �,957,001 Amortisation – – – – – Non-cashexpenses otherthandepreciation andamortisation 875,679 ��6,500 �,�50 – 1,��5,��9 Non-cashincome �81,07� 896,0�5 – – 1,�77,097

b) GeographicalSegments

NogeographicalsegmentispresentedastheGroupoperatesprincipallyinMalaysia.



46. COMPARATIVE FIGURES

ThecomparativefigureswereextendedtocomplywiththeadditionaldisclosurerequirementsofthenewFinancialReportingStandardsthatareapplicableforthefinancialyearended�1December�007.

47. CBHB - ESOS

OtherthantheDirectorswhoseinterestaredisclosedseparetelyintheDirectors'Report,eligibleemployeeswhoweregrantedoptionsunderESOSareasfollows:-

Option over ordinary shares of RM1-00 each At At 1 / 1 / 2007 Granted Exercised Lapsed 31 / 12 / 2007 AhmadFahmyMustaffa – �0,000 – – �0,000 Balamurugan A/LSamikanmu – 75,000 – 75,000 – ChanChoyYie – �0,000 9,000 �1,000 – ChanFeiChing – 50,000 – – 50,000 ChanSongKee – �0,000 – – �0,000 ChanTzeFen – �0,000 – �0,000 – ChanYenXin – �0,000 – – �0,000 ChandraMohan A/LMuthusamy – �0,000 – �0,000 – ChangChiaChien – �0,000 – – �0,000 ChewKokWah – 5,000 – – 5,000 ChinYookHiong – 100,000 – 100,000 – ChongFoongKuen – �0,000 – – �0,000 ChooJunTin – �0,000 – – �0,000 ChotQiaoYi – �0,000 9,000 – �1,000 ChuaChooTieng – 75,000 ��,500 – 5�,500 ChauSiangYee – �0,000 – – �0,000 DiongHungChing – �0,000 9,000 �1,000 – DjasmyChongYowVooi – 50,000 10,000 �0,000 – Dominic A/LSavarimuthu – �0,000 – – �0,000 GanLaiHoon – �0,000 – – �0,000 GohSinHuat – 75,000 – – 75,000 HajiAbdulRahman BinAhmad – 75,000 – – 75,000 HeatherLimWanSuen – 75,000 – – 75,000 HoWanChan – 100,000 – – 100,000 HoeWeeChing – �0,000 – – �0,000 OngHeanHoon – 100,000 – – 100,000 IsmailBinTalib – 5,000 – – 5,000



47. CBHB - ESOS (CONT'D)

Option over ordinary shares of RM1-00 each At At 1 / 1 / 2007 Granted Exercised Lapsed 31 / 12 / 2007

KangPohChuan – �0,000 – – �0,000 KhooKhengKiat – 150,000 – – 150,000 KogilaA/PSubramaniam – �0,000 – – �0,000 KohWaiKong – 75,000 – – 75,000 KonKhenKong – �0,000 – – �0,000 KshithiDevan A/LCKNair – 75,000 – – 75,000 LavanyaA/PArumugam – �0,000 – – �0,000 LeeChanKeong – 75,000 – 75,000 – LeeJuneVee – �0,000 �,000 – �7,000 LeeKiamWah – 50,000 – – 50,000 LeeKitSeng – �0,000 – – �0,000 LeeKoMiin – �0,000 9,000 – �1,000 LeeKokMing – 100,000 – – 100,000 LeongCheeFoong – 75,000 – – 75,000 LeowWengChuan – �0,000 – – �0,000 LimAhBer – �0,000 9,000 – �1,000 LimAhFook – 75,000 – – 75,000 LimSheeHau – 75,000 – – 75,000 LimSweePeng – 50,000 – – 50,000 LohFoongYin – 5,000 – – 5,000 LohYoonKiew – 5,000 – – 5,000 LowKeeHock – �0,000 – – �0,000 LyeTuckYew – �0,000 – – �0,000 MohdZaidi BinMohameddin – �0,000 – – �0,000 MuhammadLutfi BinAbdullah – �0,000 – – �0,000 NgiKuangHuei – �0,000 – – �0,000 NoorHidhayati BintiDarwin – 5,000 – – 5,000 NoraMdNor – 5,000 – – 5,000 PaulineNgSiewKheng – �0,000 �,000 – �7,000 Ravichandran A/LRamasamy – 5,000 – – 5,000 RogayahBintiMohdZin – �0,000 – – �0,000 Saharuddin BinHj.Abdullah – �0,000 – – �0,000 SitiNorMahayu BintiMYunus – 5,000 – 5,000 – SoKooiMui – �0,000 – – �0,000 SooKokEng – �0,000 – – �0,000


47. CBHB - ESOS (CONT'D)

Option over ordinary shares of RM1-00 each At At 1 / 1 / 2007 Granted Exercised Lapsed 31 / 12 / 2007

TanKherShin – �0,000 6,000 – 1�,000 TanKimYong – 50,000 – – 50,000 TanSinNei – �0,000 – – �0,000 TanTekLong – 75,000 – – 75,000 TanThaiGuan – �0,000 – – �0,000 TanThianLeong – �0,000 – – �0,000 TanWaiHoo – �0,000 – – �0,000 TeoJedWei – �0,000 – – �0,000 TeoSinHorng – 75,000 ��,500 5�,500 – TehHockHua – 75,000 – – 75,000 WanFooJing – �0,000 – – �0,000 WanHaniza BintiWanIbrahim – �0,000 – – �0,000 WangLuanBoo – 100,000 – – 100,000 WongBakTai – �0,000 9,000 – �1,000 WongLaiMui – �0,000 – – �0,000 WooWoeiHaur – �0,000 – �0,000 – YapChinChon – 100,000 �0,000 – 70,000 YeoJoonHui – 75,000 – – 75,000 YongShangMing – 50,000 – – 50,000 YongSwanJong – 75,000 10,000 – 65,000 YongTiokChin – 75,000 – – 75,000 YongTiokKeng – 50,000 – – 50,000 YongChingKhee – �0,000 – �0,000 – Za'Azlin BinAbdulMaulud – 75,000 – – 75,000



List of Group Properties

Net Book Date of Approx. Area / Year of Value @ Approx. age Valuation / Location Tenure Built-up Description Expiry 31.12.07 of building Acquisition (RM) (years)

EMR8�58,LotNo.5��0 Freehold 5.�acres Agriculturalland/ – �57,697 – �00�MukimKapar,DaerahKlang companydepotNegeriSelangor (store) No.�8&�0,JalanSS��/1� Freehold 1�,9�9sqft �unitsof�-storey – �,6�0,099 11 �00�TamanMegah shopoffice/office�7�01PetalingJayaSelangorDaulEhsan

UnitsG-17,G-18andG-19 Freehold 1,551sqft �unitsof – �90,000 10 �007VegaSquare,Bentong retailoutletsheldunderCTNo.�719P.T.No.�770MukimandDaerahBentongNegeriPahangDarulMakmurUnitsW�-1,W5-1andW1�-1 Freehold 5,868sqft �unitsof – 705,000 7 �007StoreyNo.�,WestTower condominiumCountryTowersCondominiumheldunderGeran76��8Lot776�6(OldtitleH.S.(D)�08�55PTD1101�6),MukimPlentongDaerahJohorBahruNegeriJohorP.N19970(OldtitleH.S.(D)��166) Leasehold �,�00sqft �-storey �075 500,000 �1 �007P.T.No.16�11,MukimSetapak shopoffice/officeDaerahWilayahPersekutuanNegeriWilayahPersekutuan

Q.T.(R)�006,L.O.No.PJ6�/59 Leasehold 5,5�0sqft Bungalow �058 9�0,000 7 �00�TownofPetalingJayaDistrictofKualaLumpurStateofSelangor

No.10-06,1�A-06,1�A-06, Freehold 8,�0�sqft 7unitsof – �,1�5,000 1 �00719-06,�0-06,��-06,��-06, condominiumScottSentral,�8,JalanScott,Brickfields,KL

H.S.(D)�6981,LotNo.1107� Freehold 9,61�sqft �storey – 1,900,000 7 �007MukimSg.Buloh,DaerahPetaling shopoffice/officeNegeriSelangor


List of Group Properties (Cont'd)

Net Book Date of Approx. Area / Year of Value @ Approx. age Valuation / Location Tenure Built-up Description Expiry 31.12.07 of building Acquisition (RM) (years)

TheCrest,�TwoSquare, Leasehold 1�0,000sqft 16storeyoffice �105 89,780,000 1 �007No.�,Jalan19/1,PetalingJaya, block&1�1��6�00SelangorDarulEhsan parkingbays

GM1059,LotNo.186� Freehold �.��acres CultivationLand – 6,�00,000 – �00�MukimBatuDaerahKualaLumpurGeran�0��7(LotNo.1�8��)& Freehold �6.8acres Residential/ – ��,�5�,98� – �005Geran�0��8(LorNo.1�8�5) CommercialMukimDamansara,DaerahPetalingSelangorDarulEhsan


Analysis of Shareholdingsas at 12 May 2008

AuthorisedShareCapital : RM500,000,000.00dividedinto500,000,000ordinarysharesofRM1.00each IssuedandPaid-upCapital : RM1��,089,�50.00 ClassofShares : OrdinarySharesofRM1.00each Votingrights : Onevoteperordinaryshare

ANALYSIS BY SIZE OF SHAREHOLDINGS AS AT 12 MAY 2008 Size of Holdings No. of Shareholders % No. of Shares % Lessthan100 �,�80 �0.0� 118,181 0.10100to1,000 �,016 �8.07 1,��7,070 0.991,001to10,000 1,900 ��.98 8,�70,667 6.8�10,001to100,000 5�� 6.7� 17,05�,9�8 1�.7�100,001tolessthan5%ofissuedshares 91 1.15 �6,96�,�96 �7.855%andaboveofissuedshares � 0.0� 50,�56,108 �0.50

Total 7,922 100.00 124,089,450 100.00

SUBSTANTIAL SHAREHOLDERS AS AT 12 MAY 2008(In accordance with the Register maintained pursuant to Section 69L of the Companies Act, 1965) Direct Interest Indirect Interest Name No. of Shares % No. of Shares % YongSoonChow ��,597,800 ��.��% 11,610,808 9.�6%YongTiokChin 7,665,�08 6.18% – –TengkuDato'SulaimanShahbinTengku – – 6,807,9�9 5.�9% AbdulJalilShah

THIRTY LARGEST SHAREHOLDERS AS AT 12 MAY 2008(without aggregating securities from different securities accounts belonging to the same person)

No. Name of Shareholders No. of Shares % 1 YongSoonChow ��,597,800 ��.�� YongTiokChin 7,658,�08 6.17 � JFApexNominees(Tempatan)SdnBhd 5,000,000 �.0� PledgedSecuritiesAccountforPertiwiPositifSdnBhd � AlliancegroupNominees(Tempatan)SdnBhd �,7�1,100 �.8� PHEIMAssetManagementSdnBhdforEmployeesProvidentFund 5 KohHuaLan �,9�5,500 �.18 6 CimsecNominees(Tempatan)SdnBhd �,869,900 �.�1 PledgedSecuritiesAccountforTakrifJayaSdnBhd 7 PertiwiPositifSdnBhd 1,807,9�9 1.�6 8 MalaysiaNominees(Tempatan)SdnBhd 1,�86,500 1.�0 GreatEasternLifeAssurance(Malaysia)Berhad 9 LembagaTabungHaji 1,�51,800 1.17


Analysis of Shareholdingsas at 12 May 2008 (Cont'd)

THIRTY LARGEST SHAREHOLDERS AS AT 12 MAY 2008(without aggregating securities from different securities accounts belonging to the same person)

No. Name of Shareholders No. of Shares % 10 MalaysiaNominees(Tempatan)SdnBhd 1,��,500 1.08 GreatEasternLifeAssurance(Malaysia)Berhad 11 HSBCNominees(Asing)SdnBhd ExemptAnForMorganStanley&Co.Incorporated 1,115,000 0.90 1� CapaiHasilSdnBhd 1,089,5�6 0.88 1� MalaysiaNominees(Tempatan)SdnBhd 900,�00 0.7� GreatEasternLifeAssurance(Malaysia)Berhad 1� KonKinLip 900,000 0.7� 15 LimShiuHo 8�7,000 0.67 16 KongTiam 670,000 0.5� 17 HSBCNominees(Asing)SdnBhd 580,000 0.�7 ExemptAnForFortisBanqueLuxembourg 18 AMMBNominees(Tempatan)SdnBhd 57�,000 0.�6 AmTrusteeBerhadForApexDanaAl-Sofi-I 19 SJSecNominees(Asing)SdnBhd PledgedSecuritiesA/CForLimBengTiong 5�8,900 0.�� 0 MaybanSecuritiesNominees(Tempatan)SdnBhd 511,�00 0.�1 PledgedSecuritiesAccountforHasmerShambinAbuHassan �1 MalaysiaNominees(Tempatan)SdnBhd �9�,�00 0.�0 OverseasAssuranceCorporation(Malaysia)Berhad �� HSBCNominees(Asing)SdnBhd �88,800 0.�9 TNTCForNgeeAnnPolytechnic �� NgMingKai �8�,000 0.�9 �� HoChuChai �67,100 0.�8 �5 LaiWooiGiap �60,000 0.�7 �6 LiewSiewChin ��1,�00 0.�� 7 MalaysianAssuranceAllianceBerhad �17,500 0.�� ASBeneficialOwner(GrowthFund) �8 ChaiYoonFook �06,000 0.�� 9 CimsecNominees(Tempatan)SdnBhd �01,000 0.�� CIMBForKooKowKiang@KoKeckTing �0 AIBBNominees(Asing)SdnBhd �9�,000 0.�� PledgedSecuritiesAccountForLimBengTiong

85,045,483 68.54



ANALYSIS BY SIZE OF WARRANTHOLDINGS (WARRANTS 2003/1013) AS AT 12 MAY 2008 No. of No. of Size of Holdings Warrant Holders % Warrant Holders % Lessthan100 68 8.5� �,6�9 0.01100to1,000 �75 ��.�6 ��,6�5 0.9�1,001to10,000 �80 �5.09 1,591,�50 6.6�10,001to100,000 1�9 18.67 �,661,700 19.��100,001tolessthan5%ofissuedwarrants �� .88 5,118,900 �1.��5%andaboveofissuedwarrants � 0.�8 1�,�99,916 51.67

Total 798 100.00 23,999,050 100.00

THIRTY LARGEST WARRANTHOLDERS AS AT 12 MAY 2008(without aggregating securities from different securities accounts belonging to the same person)

No. Name of Shareholders No. of Warrants % 1 YongSoonChow 7,999,916 ��.�� PertiwiPositifSdnBhd �,000,000 1�.50 � KohHuaLan 1,�00,000 5.8� � NgMingKai 999,�00 �.16 5 TakrifJayaSdnBhd 890,000 �.71 6 TohEngYee �00,000 1.�5 7 MakNgiaNgia@MakYokeLum �56,�00 1.07 8 KeeHooiSeng ��9,900 1.0� 9 MakNgiaNgia@MakYokeLum ��,000 1.01 10 LimPekChou �0�,600 0.85

11 CapaiHasilSdnBhd 189,900 0.79 1� TongSeeWong 1�5,000 0.60 1� AmSecNominees(Tempatan)SdnBhd 1�0,000 0.58 PledgedSecuritiesAccountForKwongKengWai 1� RHBNominees(Tempatan)SdnBhd 1�0,000 0.5� RHBInvestmentManagementSdnBhdForLeeYuenChak 15 ChongNyenThien 1�9,000 0.5� 16 LiewSiewChin 1��,000 0.51

17 YapKow@YapSangKooi 1�1,000 0.50



THIRTY LARGEST WARRANTHOLDERS AS AT 12 MAY 2008(without aggregating securities from different securities accounts belonging to the same person)

No. Name of Shareholders No. of Warrants % 18 OoiOonSeong 1�0,000 0.50 19 CheokKenChai 118,000 0.�9 �0 MaybanSecuritiesNominees(Tempatan)SdnBhd 117,000 0.�9 PledgedSecuritiesAccountForSeowYokeHock �1 ChewChinSwee 116,900 0.�9 �� HowBeikTin 110,�00 0.�6 �� MaybanNominees(Tempatan)SdnBhd 108,000 0.�5 PledgedSecuritiesAccountForMunMeeFong �� RHBCapitalNominees(Tempatan)SdnBhd 106,000 0.�� PledgedSecuritiesAccountForLimLianKhai �5 MaybanNominees(Asing)SdnBhd 101,�00 0.�� PledgedSecuritiesAccountForLiewMoiWah �6 LooiWaiChong 100,500 0.�� 7 LeongChonLoong 100,000 0.�� 8 YuChokTow 100,000 0.�� 9 KangKinNgai 100,000 0.�� 0 SimChoonSeng 100,000 0.��

17,918,816 74.66



STATEMENT OF DIRECTORS' INTERESTS IN SHARES AND WARRANTS IN THE COMPANY AS AT 12 MAY 2008

DIRECTORS' SHAREHOLDINGS (In accordance with the Register maintained pursuant to Section 134 of the Companies Act, 1965) Direct Interest Indirect Interest Name No. of Shares % No. of Shares % TengkuDato'SulaimanShahbinTengku – – 6,807,9�9 �9% AbdulJalilShah YongSoonChow ��,597,800 ��.��% 11,610,808 �6%KohHuaLan �,9�5,500 �.18% – –LeeSooiTeng �00,000 0.16% 1�,000 0.01%LooShenChang(resignedw.e.f.�1January�008) – – – –YongShangMing – – – –KeongChoonKeat �0,000 0.0�% �0,000 0.0�%MohdKhasanbinAhmad – – – –KamYongKan �0,000 0.0�% – – DIRECTORS' WARRANTHOLDINGS (In accordance with the Register maintained pursuant to Section 134 of the Companies Act, 1965) Direct Interest Indirect Interest Name No. of Warrants % No. of Warrants % TengkuDato'SulaimanShahbinTengku – – �,000,000 1�.50% AbdulJalilShah YongSoonChow 7,999,916 ��.��% 1,�00,000 5.8�%KohHuaLan 1,�00,000 5.8�% – –LooShenChang(resignedw.e.f.�1January�008) – – – –YongShangMing – – – –KeongChoonKeat – – – –MohdKhasanbinAhmad – – – –KamYongKan – – – –

PROXY FORM

No.ofOrdinarySharesHeld

I/We...............................................................................................................................................................................................................................................................................................................

NRICNo............................................................................................................................................................................... /PassportNo..............................................................................................

of...................................................................................................................................................................................................................................................................................................................

beingamember/membersoftheabovenamedCompanyherebyappoint

........................................................................................................................................................................................................................................................................................ [holdingshares]

of.....................................................................................................................................................................................................................................................................................................................


And/orfailinghim/her

........................................................................................................................................................................................................................................................................................ [holdingshares]

of.....................................................................................................................................................................................................................................................................................................................


as*my/ourproxytovotefor*me/usandon*my/ourbehalfatthe6thAnnualGeneralMeetingoftheCompany,tobeheldatSimeDarbyConventionCentre,1A,JalanBukitKiara1,60000KualaLumpuronTuesday,17thJune,�008at9:�0a.m.oratanyadjournmentthereof.

Ordinary business For Against

1. Receiveandadoptthedulyauditedaccountsforthefinancialyearended�1December�007.

�. Todeclareafinaldividendof7%less�6%taxforthefinancialyearended�1December�007.

�. Tore-electtheManagingDirector • YongSoonChow

�. Tore-electtheSeniorIndependentNon-ExecutiveDirector • KeongChoonKeat

5. Tore-electtheIndependentNon-ExecutiveDirector • MohdKhasanBinAhmad

6. Tore-electtheExecutiveDirector • YongShangMing

7. To appoint Messrs GEP Associates (AF10�0), Chartered Accountants, as auditors for the ensuingfinancial year ending �1 December �008 and authorise the fixing of their remuneration bydirectors.

Special business For Against

8. Toapprovepaymentofdirectors’remunerationsfortheyearended�1December�007inaccordancewithArticle88oftheCompany’sArticlesofAssociation.

9. ToempowertheDirectorstoissuesharespursuanttoSection1��DoftheCompaniesAct,1965andincompliancewiththeListingRequirementsofBursaSecurities

10. Toapprovetherecurrentrelatedpartytransactionsofarevenueortradingnatureandwhicharenecessaryfortheday-to-dayoperationsuptothenextannualgeneralmeeting

Pleaseindicatewithacross[x]intheboxprovided,howyouwishtocastyourvotes.Ifnospecificinstructionastovotingisgiven,theproxymayvoteorabstainathisdiscretion.

Signatureofmember

Dated:

Notes:-

1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than two proxies to attend and vote in his stead. A proxy may but need not be a member of the Company. A member may appoint any person to be his proxy without limitation and the provisions of Section 149(1)(a) and Section 149(1)(b) of the Companies Act, 1965 shall not apply.

2. Shareholders’ attention is hereby drawn to the Listing Requirements of the Bursa Malaysia Securities Berhad, which allows a member of the Company who is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, to appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.

3. Where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportion of his shareholdings to be represented by each proxy.

4. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or, if the appointer is a corporation, either under its Common Seal or under the hand of an officer or attorney duly authorised.

5. The instrument appointing a proxy must be deposited at No.14-2, Jalan 4A/27A, Section 2, Wangsa Maju, 53300 Kuala Lumpur not less than 48 hours before the time set for holding the meeting or any adjournment thereof.

Commonsealaffixedinthepresenceof

Director Director/Secretary

$

..............................................................................

....................................................................................... .......................................................................................

THE COMPANy SECRETARycrest builDer holDings berhAD (573382-p)NO. 14-2, JALAN 4A/27A,SECTION 2, WANGSA MAJU,53300 KUALA LUMPUR.

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